Rydex Precious Metals Fund (RYPMX) N-CSR Certified 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: March 31, 2015

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

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

Item 1. Reports to Stockholders.

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

 

3.31.2015

Rydex Funds Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

RSECF-ANN-2-0315x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
BANKING FUND	11
BASIC MATERIALS FUND	19
BIOTECHNOLOGY FUND	27
CONSUMER PRODUCTS FUND	35
ELECTRONICS FUND	44
ENERGY FUND	52
ENERGY SERVICES FUND	60
FINANCIAL SERVICES FUND	67
HEALTH CARE FUND	77
INTERNET FUND	87
LEISURE FUND	95
PRECIOUS METALS FUND	105
REAL ESTATE FUND	113
RETAILING FUND	122
TECHNOLOGY FUND	131
TELECOMMUNICATIONS FUND	141
TRANSPORTATION FUND	149
UTILITIES FUND	157
NOTES TO FINANCIAL STATEMENTS	165
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	178
OTHER INFORMATION	179
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	181
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	184

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2015

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for 18 of our sector funds (the “Funds”) for the annual period ended March 31, 2015.

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

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

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

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

Sincerely,

Donald C. Cacciapaglia

President

April 30, 2015

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.

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

2 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2015

The U.S. continued to enjoy a self-sustaining economic expansion for the 12-month period ended March 31, 2015, although winter weather was likely to distort first-quarter economic data. In addition, U.S. companies scaled back hiring in the last month of the period, adding to evidence that the domestic economy has lost some momentum since the turn of the year. The March increase in payrolls was the smallest since December 2013 and broke a 12-month run of gains above 200,000.

Despite this short-term dislocation, the economy remains on track. Indeed, many other labor market indicators, such as initial jobless claims and the job openings rate, suggest that the U.S. labor market remains quite strong, supporting the conclusion that March’s payroll report was just a temporary blip, similar to the one witnessed last winter. As soon as temporary seasonal factors have dissipated, economic data is likely to bounce back. The labor market has improved over the past year, as subdued mortgage rates and tight housing inventory continue to point to fairly stable appreciation in the housing market, which is key to the ongoing recovery. Consumers are also being helped by lower fuel prices, which are acting as a tax cut for U.S. consumers, freeing up discretionary spending in other areas and acting as a support for consumption.

In Europe, economic data has been surprisingly good and should continue along that path on the back of the European Central Bank’s program of quantitative easing and depreciation of the euro. Japan’s economy remains weak and, without more structural reform, continued monetary accommodation could lead to stagflation. China’s policymakers appear likely to continue the supply of credit and do whatever else is necessary to maintain growth there at an acceptable pace for the near term.

Given weakness overseas and the effect of a stronger U.S. dollar on international earnings, some stocks could face a more challenging environment in the near term, but our research shows that equity markets tend to perform quite well in the periods leading up to a U.S. Federal Reserve (the “Fed”) rate increase. The yield on the 10-year Treasury note declined in January by more than 50 basis points before rebounding in February, echoing the pattern since 2009—Treasury yields decline and a sell-off ensues, driving rates higher. Then conditions stabilize, and rates test their previous lows. Liquidity from foreign central banks and comparatively attractive U.S. yields continue to push global investors to U.S. Treasuries, which should hold down U.S. interest rates in the near term.

Against this backdrop, the U.S. central bank feels pressure to raise its key rate above zero, but insists the decision will be data-dependent and not occur prematurely. With a secular inflation increase unlikely in the near term, slack in the economy, and disinflation being imported from abroad, the Fed may not hike rates until later in the year. The Fed for now appears to be focused on wage growth, which is key for sustaining the expansion but also an indicator of inflationary pressure. The lack of sustained wage growth has been a topic that has confounded the Fed lately. Given the strengthening employment numbers and the apparent reduction in labor market slack, wages should start to increase more steadily across the board. This is one of the most important data points at the moment for the Fed.

The underlying U.S. economy remains strong and investors should avoid being panicked by seasonal setbacks. Indeed, considering the strength of the economy and the wave of liquidity emanating from various central banks around the world, the general investment environment should remain attractive.

For the 12 months ended March 31, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned 12.73%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -0.92%. The return of the MSCI Emerging Markets Index* was 0.44%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a 5.72% return for the period, while the Barclays U.S. Corporate High Yield Index* returned 2.00%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.03% for the 12-month period.

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

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(continued) March 31, 2015

*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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

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

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

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

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

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

S&P 500^® Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad economy, representing all major industries and is considered a representation of the U.S. stock market.

S&P 500^® Consumer Discretionary Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Consumer Discretionary Index includes companies in the following industries: automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media, and retailing.

S&P 500^® Consumer Staples Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Consumer Staples Index comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages, and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

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

S&P 500^® Financials Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Financials Index contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, and real estate, including REITs.

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

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

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

S&P 500^® Materials Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Materials Index encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products, and related packaging products, and metals, minerals, and mining companies, including producers of steel.

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2015

S&P 500^® Telecommunication Services Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Telecommunications Services Index contains companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth, and/or fiber optic cable network.

S&P 500^® Utilities Index is a sub-index of the S&P 500^® Index, a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues). The Utilities Index encompasses those companies considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.

THE RYDEX FUNDS ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, 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 September 30, 2014 and ending March 31, 2015.

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 ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.33%	0.71%	$1,000.00	$1,007.10	$6.66
Advisor Class	1.84%	0.47%	1,000.00	1,004.70	9.20
A-Class	1.59%	0.56%	1,000.00	1,005.60	7.95
C-Class	2.33%	0.21%	1,000.00	1,002.10	11.63
Basic Materials Fund
Investor Class	1.33%	(3.04%)	1,000.00	969.60	6.53
Advisor Class	1.83%	(3.33%)	1,000.00	966.70	8.97
A-Class	1.58%	(3.18%)	1,000.00	968.20	7.75
C-Class	2.34%	(3.54%)	1,000.00	964.60	11.46
Biotechnology Fund
Investor Class	1.31%	27.18%	1,000.00	1,271.80	7.42
Advisor Class	1.81%	26.86%	1,000.00	1,268.60	10.24
A-Class	1.56%	27.02%	1,000.00	1,270.20	8.83
C-Class	2.31%	26.52%	1,000.00	1,265.20	13.05
Consumer Products Fund
Investor Class	1.32%	8.20%	1,000.00	1,082.00	6.85
Advisor Class	1.83%	7.93%	1,000.00	1,079.30	9.49
A-Class	1.57%	8.04%	1,000.00	1,080.40	8.14
C-Class	2.32%	7.64%	1,000.00	1,076.40	12.01
Electronics Fund
Investor Class	1.33%	11.39%	1,000.00	1,113.90	7.01
Advisor Class	1.83%	11.09%	1,000.00	1,110.90	9.63
A-Class	1.59%	11.27%	1,000.00	1,112.70	8.37
C-Class	2.34%	10.86%	1,000.00	1,108.60	12.30
Energy Fund
Investor Class	1.33%	(21.47%)	1,000.00	785.30	5.92
Advisor Class	1.83%	(21.61%)	1,000.00	783.90	8.14
A-Class	1.58%	(21.46%)	1,000.00	785.40	7.03
C-Class	2.33%	(21.87%)	1,000.00	781.30	10.35
Energy Services Fund
Investor Class	1.34%	(32.66%)	1,000.00	673.40	5.59
Advisor Class	1.83%	(32.89%)	1,000.00	671.10	7.62
A-Class	1.58%	(32.76%)	1,000.00	672.40	6.59
C-Class	2.34%	(33.01%)	1,000.00	669.90	9.74
Financial Services Fund
Investor Class	1.33%	6.96%	1,000.00	1,069.60	6.86
Advisor Class	1.83%	6.70%	1,000.00	1,067.00	9.43
A-Class	1.57%	6.83%	1,000.00	1,068.30	8.10
C-Class	2.33%	6.44%	1,000.00	1,064.40	11.99
Health Care Fund
Investor Class	1.33%	20.04%	1,000.00	1,200.40	7.30
Advisor Class	1.83%	19.74%	1,000.00	1,197.40	10.03
A-Class	1.58%	19.88%	1,000.00	1,198.80	8.66
C-Class	2.33%	19.47%	1,000.00	1,194.70	12.75

 

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Internet Fund
Investor Class	1.33%	2.59%	$1,000.00	$1,025.90	$6.72
Advisor Class	1.83%	2.32%	1,000.00	1,023.20	9.23
A-Class	1.59%	2.46%	1,000.00	1,024.60	8.03
C-Class	2.33%	2.07%	1,000.00	1,020.70	11.74
Leisure Fund
Investor Class	1.32%	8.86%	1,000.00	1,088.60	6.87
Advisor Class	1.81%	8.65%	1,000.00	1,086.50	9.42
A-Class	1.56%	8.73%	1,000.00	1,087.30	8.12
C-Class	2.33%	8.34%	1,000.00	1,083.40	12.10
Precious Metals Fund
Investor Class	1.23%	(19.68%)	1,000.00	803.20	5.53
Advisor Class	1.73%	(19.90%)	1,000.00	801.00	7.77
A-Class	1.48%	(19.85%)	1,000.00	801.50	6.65
C-Class	2.23%	(20.13%)	1,000.00	798.70	10.00
Real Estate Fund
A-Class	1.58%	13.81%	1,000.00	1,138.10	8.42
C-Class	2.33%	13.39%	1,000.00	1,133.90	12.40
H-Class	1.57%	13.81%	1,000.00	1,138.10	8.37
Retailing Fund
Investor Class	1.32%	18.39%	1,000.00	1,183.90	7.19
Advisor Class	1.81%	18.16%	1,000.00	1,181.60	9.84
A-Class	1.56%	18.28%	1,000.00	1,182.80	8.49
C-Class	2.33%	17.77%	1,000.00	1,177.70	12.65
Technology Fund
Investor Class	1.33%	5.44%	1,000.00	1,054.40	6.81
Advisor Class	1.84%	5.17%	1,000.00	1,051.70	9.41
A-Class	1.58%	5.33%	1,000.00	1,053.30	8.09
C-Class	2.33%	4.92%	1,000.00	1,049.20	11.90
Telecommunications Fund
Investor Class	1.34%	0.08%	1,000.00	1,000.80	6.68
Advisor Class	1.85%	(0.16%)	1,000.00	998.40	9.22
A-Class	1.58%	(0.04%)	1,000.00	999.60	7.88
C-Class	2.33%	(0.44%)	1,000.00	995.60	11.59
Transportation Fund
Investor Class	1.33%	11.38%	1,000.00	1,113.80	7.01
Advisor Class	1.83%	11.08%	1,000.00	1,110.80	9.63
A-Class	1.58%	11.24%	1,000.00	1,112.40	8.32
C-Class	2.33%	10.81%	1,000.00	1,108.10	12.25
Utilities Fund
Investor Class	1.33%	7.51%	1,000.00	1,075.10	6.88
Advisor Class	1.83%	7.25%	1,000.00	1,072.50	9.46
A-Class	1.58%	7.34%	1,000.00	1,073.40	8.17
C-Class	2.33%	6.98%	1,000.00	1,069.80	12.02

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.33%	5.00%	$1,000.00	$1,018.30	$6.69
Advisor Class	1.84%	5.00%	1,000.00	1,015.76	9.25
A-Class	1.59%	5.00%	1,000.00	1,017.00	8.00
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Basic Materials Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.34%	5.00%	1,000.00	1,013.26	11.75
Biotechnology Fund
Investor Class	1.31%	5.00%	1,000.00	1,018.40	6.59
Advisor Class	1.81%	5.00%	1,000.00	1,015.91	9.10
A-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
Consumer Products Fund
Investor Class	1.32%	5.00%	1,000.00	1,018.35	6.64
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.57%	5.00%	1,000.00	1,017.10	7.90
C-Class	2.32%	5.00%	1,000.00	1,013.36	11.65
Electronics Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.59%	5.00%	1,000.00	1,017.00	8.00
C-Class	2.34%	5.00%	1,000.00	1,013.26	11.75
Energy Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Energy Services Fund
Investor Class	1.34%	5.00%	1,000.00	1,018.25	6.74
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.34%	5.00%	1,000.00	1,013.26	11.75
Financial Services Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.57%	5.00%	1,000.00	1,017.10	7.90
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Health Care Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70

 

THE RYDEX FUNDS ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Internet Fund
Investor Class	1.33%	5.00%	$1,000.00	$1,018.30	$6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.59%	5.00%	1,000.00	1,017.00	8.00
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Leisure Fund
Investor Class	1.32%	5.00%	1,000.00	1,018.35	6.64
Advisor Class	1.81%	5.00%	1,000.00	1,015.91	9.10
A-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Precious Metals Fund
Investor Class	1.23%	5.00%	1,000.00	1,018.80	6.19
Advisor Class	1.73%	5.00%	1,000.00	1,016.31	8.70
A-Class	1.48%	5.00%	1,000.00	1,017.55	7.44
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
Real Estate Fund
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
H-Class	1.57%	5.00%	1,000.00	1,017.10	7.90
Retailing Fund
Investor Class	1.32%	5.00%	1,000.00	1,018.35	6.64
Advisor Class	1.81%	5.00%	1,000.00	1,015.91	9.10
A-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Technology Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.84%	5.00%	1,000.00	1,015.76	9.25
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Telecommunications Fund
Investor Class	1.34%	5.00%	1,000.00	1,018.25	6.74
Advisor Class	1.85%	5.00%	1,000.00	1,015.71	9.30
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Transportation Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70
Utilities Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Advisor Class	1.83%	5.00%	1,000.00	1,015.81	9.20
A-Class	1.58%	5.00%	1,000.00	1,017.05	7.95
C-Class	2.33%	5.00%	1,000.00	1,013.31	11.70

1	Annualized and excludes expenses in 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 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2014 to March 31, 2015.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

BANKING FUND

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

For the one-year period ended March 31, 2015, Banking Fund Investor Class returned -0.73%, compared with the S&P 500 Financials Index, which returned 9.96%. The broader S&P 500 Index returned 12.73%.

The industry that contributed most to performance was banks, followed by diversified financial services. The thrifts & mortgage finance industry contributed least to Fund return. The commercial banks industry was the only detractor from return.

Among the best-performing holdings in the Fund for the period were Wells Fargo & Co., HDFC Bank Ltd. ADR, and Bank of New York Mellon Corp. The worst-performing holdings for the period were Fifth Third Bancorp, Bancolombia S.A. ADR, and Bank of America Corp.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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)
JPMorgan Chase & Co.	4.0%
Wells Fargo & Co.	4.0%
Citigroup, Inc.	3.9%
Bank of America Corp.	3.9%
U.S. Bancorp	3.1%
PNC Financial Services Group, Inc.	2.4%
Bank of New York Mellon Corp.	2.4%
Capital One Financial Corp.	2.3%
State Street Corp.	1.9%
BB&T Corp.	1.9%
Top Ten Total	29.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-0.73%	4.84%	-3.43%
Advisor Class Shares	-1.19%	4.32%	-3.92%
A-Class Shares	-0.98%	4.57%	-3.70%
A-Class Shares with sales charge†	-5.68%	3.56%	-4.17%
C-Class Shares	-1.71%	3.80%	-4.35%
C-Class Shares with CDSC‡	-2.69%	3.80%	-4.35%
S&P 500 Financials Index	9.96%	10.53%	0.58%
S&P 500 Index	12.73%	14.47%	8.01%

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

12 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
BANKING FUND

	Shares		Value
COMMON STOCKS† - 100.2%
SUPER-REGIONAL BANKS-U.S. - 18.0%
Wells Fargo & Co.		35,627	$	1,938,108
U.S. Bancorp		34,469		1,505,261
PNC Financial Services Group, Inc.		12,816		1,194,964
Capital One Financial Corp.		14,201		1,119,323
SunTrust Banks, Inc.		19,199		788,887
Fifth Third Bancorp		35,731		673,529
KeyCorp		42,113		596,320
Huntington Bancshares, Inc.		47,017		519,538
Comerica, Inc.		10,827		488,623
Total Super-Regional Banks-U.S.				8,824,553
COMMERCIAL BANKS-NON-U.S. - 17.8%
Itau Unibanco Holding S.A. ADR		59,238		655,172
ICICI Bank Ltd. ADR		55,785		577,933
Royal Bank of Canada		9,556		576,800
Banco Bradesco S.A. ADR		62,088		576,177
Toronto-Dominion Bank		12,992		556,707
Banco Santander S.A. ADR		73,648		548,678
HDFC Bank Ltd. ADR		9,109		536,429
Credicorp Ltd.		3,755		528,066
Bank of Montreal		8,302		497,871
Bank of Nova Scotia		9,774		490,948
Bancolombia S.A. ADR		12,085		475,303
Canadian Imperial Bank of Commerce		6,496		470,960
Banco Santander Chile ADR		21,636		469,068
ING Groep N.V. ADR*		32,016		467,754
Banco Bilbao Vizcaya Argentaria S.A. ADR		45,631		457,679
Grupo Financiero Santander Mexico SAB de CV ADR		40,364		440,775
Sumitomo Mitsui Financial Group, Inc. ADR		55,234		427,511
Total Commercial Banks-Non-U.S.				8,753,831
DIVERSIFIED BANKING INSTITUTIONS - 16.7%
JPMorgan Chase & Co.		32,103		1,944,799
Citigroup, Inc.		36,973		1,904,849
Bank of America Corp.		123,107		1,894,617
HSBC Holdings plc ADR		14,146		602,478
Deutsche Bank AG		15,441		536,266
Credit Suisse Group AG ADR		18,892		508,762
Barclays plc ADR		31,220		454,875
UBS Group AG*		19,238		361,097
Total Diversified Banking Institutions				8,207,743
COMMERCIAL BANKS-SOUTHERN U.S. - 11.0%
BB&T Corp.		23,547		918,098
Regions Financial Corp.		64,389		608,476
Popular, Inc.*		13,019		447,723
Synovus Financial Corp.		11,987		335,756
BankUnited, Inc.		9,713		318,004
First Horizon National Corp.		22,158		316,638
Bank of the Ozarks, Inc.		8,382		309,547
First Citizens BancShares, Inc. — Class A		1,120		290,853
IBERIABANK Corp.		4,548		286,660
United Bankshares, Inc.		7,398		278,017
Hancock Holding Co.		9,166		273,697
Home BancShares, Inc.		7,760		262,986
BancorpSouth, Inc.		11,279		261,898
Hilltop Holdings, Inc.*		12,329		239,676
Trustmark Corp.		9,267		225,003
Total Commercial Banks-Southern U.S.				5,373,032
COMMERCIAL BANKS-WESTERN U.S. - 9.4%
First Republic Bank		8,642		493,371
SVB Financial Group*		3,560		452,262
East West Bancorp, Inc.		10,341		418,397
Zions Bancorporation		15,034		405,918
City National Corp.		4,413		393,110
PacWest Bancorp		8,101		379,856
Umpqua Holdings Corp.		19,749		339,288
Bank of Hawaii Corp.		4,749		290,686
Western Alliance Bancorporation*		9,408		278,853
Cathay General Bancorp		9,290		264,301
Glacier Bancorp, Inc.		9,490		238,674
CVB Financial Corp.		14,312		228,133
Columbia Banking System, Inc.		7,743		224,315
Westamerica Bancorporation		4,304		185,976
Total Commercial Banks-Western U.S.				4,593,140
COMMERCIAL BANKS-CENTRAL U.S. - 8.8%
Cullen/Frost Bankers, Inc.		5,243		362,185
BOK Financial Corp.		5,882		360,096
Commerce Bancshares, Inc.		8,287		350,706
Prosperity Bancshares, Inc.		6,393		335,505
FirstMerit Corp.		16,298		310,640
Associated Banc-Corp.		15,609		290,327
PrivateBancorp, Inc. — Class A		8,177		287,585
TCF Financial Corp.		17,904		281,451
UMB Financial Corp.		5,157		272,754
MB Financial, Inc.		8,530		267,074
Wintrust Financial Corp.		5,490		261,763
Texas Capital Bancshares, Inc.*		5,364		260,959
First Financial Bankshares, Inc.1		8,456		233,724
Old National Bancorp		15,777		223,876
First Midwest Bancorp, Inc.		11,650		202,361
Total Commercial Banks-Central U.S.				4,301,006
FIDUCIARY BANKS - 7.3%
Bank of New York Mellon Corp.		28,705		1,155,088
State Street Corp.		12,792		940,596
Northern Trust Corp.		9,860		686,749
Citizens Financial Group, Inc.		25,336		611,358
Boston Private Financial Holdings, Inc.		14,250		173,138
Total Fiduciary Banks				3,566,929

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
BANKING FUND

	Shares		Value
COMMERCIAL BANKS-EASTERN U.S. - 7.0%
M&T Bank Corp.		5,641	$	716,408
CIT Group, Inc.		10,944		493,793
Signature Bank*		3,436		445,237
Webster Financial Corp.		8,716		322,928
Susquehanna Bancshares, Inc.		19,997		274,159
FNB Corp.		20,060		263,588
Fulton Financial Corp.		21,032		259,535
Valley National Bancorp		27,355		258,231
National Penn Bancshares, Inc.		20,003		215,432
Community Bank System, Inc.		5,890		208,447
Total Commercial Banks-Eastern U.S.				3,457,758
SAVINGS & LOANS/THRIFTS-EASTERN U.S. - 3.1%
New York Community Bancorp, Inc.		28,284		473,191
People’s United Financial, Inc.		24,748		376,170
Investors Bancorp, Inc.		30,530		357,812
First Niagara Financial Group, Inc.		34,516		305,121
Total Savings & Loans/Thrifts-Eastern U.S.				1,512,294
MULTI-LINE INSURANCE - 1.1%
Voya Financial, Inc.		12,386		533,960
Total Common Stocks
(Cost $45,373,174)				49,124,246

	Face Amount
REPURCHASE AGREEMENT††,2 - 0.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	174,353		174,353
Total Repurchase Agreement
(Cost $174,353)				174,353
SECURITIES LENDING COLLATERAL††,3 - 0.4%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		117,470		117,470
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		40,410		40,410
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		20,858		20,858
Total Securities Lending Collateral
(Cost $178,738)				178,738
Total Investments - 100.9%
(Cost $45,726,265)			$	49,477,337
Other Assets & Liabilities, net - (0.9)%				(456,235	)
Total Net Assets - 100.0%			$	49,021,102

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $171,368 of securities loaned (cost $45,373,174)	$	49,124,246
Repurchase agreements, at value (cost $353,091)		353,091
Total investments (cost $45,726,265)		49,477,337
Segregated cash with broker		2,612
Receivables:
Dividends		47,797
Fund shares sold		45,839
Foreign taxes reclaim		237
Securities lending income		199
Total assets		49,574,021
Liabilities:
Payable for:
Fund shares redeemed		333,608
Return of securities loaned		181,350
Management fees		18,151
Transfer agent and administrative fees		5,339
Distribution and service fees		3,264
Portfolio accounting fees		2,135
Miscellaneous		9,072
Total liabilities		552,919
Commitments and contingent liabilities (Note 10)		—
Net assets	$	49,021,102
Net assets consist of:
Paid in capital	$	70,535,768
Undistributed net investment income		84,494
Accumulated net realized loss on investments		(25,350,232	)
Net unrealized appreciation on investments		3,751,072
Net assets	$	49,021,102
Investor Class:
Net assets	$	43,989,231
Capital shares outstanding		701,415
Net asset value per share	$	62.71
Advisor Class:
Net assets	$	847,006
Capital shares outstanding		15,045
Net asset value per share	$	56.30
A-Class:
Net assets	$	1,053,542
Capital shares outstanding		18,240
Net asset value per share	$	57.76
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.64
C-Class:
Net assets	$	3,131,323
Capital shares outstanding		58,704
Net asset value per share	$	53.34

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $8,007)	$	366,280
Income from securities lending, net		1,021
Interest		19
Total investment income		367,320
Expenses:
Management fees		148,278
Transfer agent and administrative fees		43,611
Distribution and service fees:
Advisor Class		7,577
A-Class		4,773
C-Class		35,551
Portfolio accounting fees		17,444
Custodian fees		2,033
Trustees’ fees*		1,235
Line of credit fees		150
Tax expense		85
Miscellaneous		22,089
Total expenses		282,826
Net investment income		84,494
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,094,981	)
Net realized loss		(1,094,981	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,758,526	)
Net change in unrealized appreciation (depreciation)		(1,758,526	)
Net realized and unrealized loss		(2,853,507	)
Net decrease in net assets resulting from operations	$	(2,769,013	)

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

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

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	84,494		$	104,560
Net realized gain (loss) on investments		(1,094,981	)		2,054,539
Net change in unrealized appreciation (depreciation) on investments		(1,758,526	)		456,330
Net increase (decrease) in net assets resulting from operations		(2,769,013	)		2,615,429
Distributions to shareholders from:
Net investment income
Investor Class		(62,935	)		(69,539	)
Advisor Class		(2,498	)		(27,301	)
A-Class		(9,050	)		(69,825	)
C-Class		(30,239	)		(40,063	)
Total distributions to shareholders		(104,722	)		(206,728	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		83,258,043			55,738,638
Advisor Class		50,602,118			20,491,522
A-Class		8,604,560			21,112,841
C-Class		17,385,423			22,307,410
Distributions reinvested
Investor Class		61,028			66,494
Advisor Class		2,476			27,265
A-Class		6,880			34,044
C-Class		27,648			37,004
Cost of shares redeemed
Investor Class		(48,577,787	)		(54,691,263	)
Advisor Class		(50,158,024	)		(24,496,009	)
A-Class		(15,238,033	)		(15,248,615	)
C-Class		(18,472,784	)		(22,684,146	)
Net increase from capital share transactions		27,501,548			2,695,185
Net increase in net assets		24,627,813			5,103,886
Net assets:
Beginning of year		24,393,289			19,289,403
End of year	$	49,021,102		$	24,393,289
Undistributed net investment income at end of year	$	84,494		$	104,722
Capital share activity:
Shares sold
Investor Class		1,317,679			942,203
Advisor Class		911,673			383,290
A-Class		147,860			377,509
C-Class		323,866			443,798
Shares issued from reinvestment of distributions
Investor Class		954			1,089
Advisor Class		43			494
A-Class		117			603
C-Class		507			703
Shares redeemed
Investor Class		(793,962	)		(936,087	)
Advisor Class		(906,078	)		(463,143	)
A-Class		(271,097	)		(279,911	)
C-Class		(344,416	)		(453,983	)
Net increase in shares		387,146			16,565

16 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	63.60		$	52.58		$	46.75		$	49.75		$	50.73
Income (loss) from investment operations:
Net investment income (loss)a		.51			.54			.54			.44			.13
Net gain (loss) on investments (realized and unrealized)		(.98	)		11.09			5.44			(3.39	)		(.99	)
Total from investment operations		(.47	)		11.63			5.98			(2.95	)		(.86	)
Less distributions from:
Net investment income		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Total distributions		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Net asset value, end of period	$	62.71		$	63.60		$	52.58		$	46.75		$	49.75
Total Returnb		(0.73	%)		22.17	%		12.84	%		(5.89	%)		(1.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,989		$	11,241		$	8,915		$	29,061		$	8,711
Ratios to average net assets:
Net investment income (loss)		0.82	%		0.92	%		1.16	%		1.02	%		0.27	%
Total expenses		1.34	%		1.37	%		1.35	%		1.34	%		1.39	%
Portfolio turnover rate		583	%		481	%		382	%		544	%		1,130	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	57.40		$	47.71		$	42.63		$	45.63		$	46.79
Income (loss) from investment operations:
Net investment income (loss)a		(.01	)		.23			.17			.12			(.08	)
Net gain (loss) on investments (realized and unrealized)		(.67	)		10.07			5.06			(3.07	)		(.96	)
Total from investment operations		(.68	)		10.30			5.23			(2.95	)		(1.04	)
Less distributions from:
Net investment income		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Total distributions		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Net asset value, end of period	$	56.30		$	57.40		$	47.71		$	42.63		$	45.63
Total Returnb		(1.19	%)		21.64	%		12.32	%		(6.43	%)		(2.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	847		$	540		$	4,235		$	1,105		$	629
Ratios to average net assets:
Net investment income (loss)		(0.02	%)		0.44	%		0.38	%		0.30	%		(0.18	%)
Total expenses		1.85	%		1.87	%		1.86	%		1.83	%		1.89	%
Portfolio turnover rate		583	%		481	%		382	%		544	%		1,130	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	58.75		$	48.74		$	43.45		$	46.38		$	47.41
Income (loss) from investment operations:
Net investment income (loss)a		.26			.39			.36			.30			.04
Net gain (loss) on investments (realized and unrealized)		(.83	)		10.23			5.08			(3.18	)		(.95	)
Total from investment operations		(.57	)		10.62			5.44			(2.88	)		(.91	)
Less distributions from:
Net investment income		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Total distributions		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Net asset value, end of period	$	57.76		$	58.75		$	48.74		$	43.45		$	46.38
Total Returnb		(0.98	%)		21.84	%		12.60	%		(6.19	%)		(1.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,054		$	8,305		$	2,103		$	3,088		$	913
Ratios to average net assets:
Net investment income (loss)		0.45	%		0.71	%		0.88	%		0.73	%		0.09	%
Total expenses		1.60	%		1.62	%		1.59	%		1.61	%		1.64	%
Portfolio turnover rate		583	%		481	%		382	%		544	%		1,130	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	54.69		$	45.74		$	41.09		$	44.20		$	45.51
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		(.05	)		.01			(.01	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		(.79	)		9.61			4.79			(3.05	)		(.90	)
Total from investment operations		(.93	)		9.56			4.80			(3.06	)		(1.19	)
Less distributions from:
Net investment income		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Total distributions		(.42	)		(.61	)		(.15	)		(.05	)		(.12	)
Net asset value, end of period	$	53.34		$	54.69		$	45.74		$	41.09		$	44.20
Total Returnb		(1.71	%)		20.95	%		11.74	%		(6.88	%)		(2.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,131		$	4,307		$	4,036		$	3,841		$	2,844
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		(0.10	%)		0.02	%		(0.03	%)		(0.67	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.35	%		2.38	%
Portfolio turnover rate		583	%		481	%		382	%		544	%		1,130	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

BASIC MATERIALS FUND

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

For the one-year period ended March 31, 2015, Basic Materials Fund Investor Class returned -3.77%, compared with 4.97% for the S&P 500 Materials Index. The broader S&P 500 Index returned 12.73%.

The Fund is composed largely of two industries—chemicals, and metals & mining. The industry that contributed most to performance was chemicals, followed by containers & packaging. The largest detractor from return was the metals & mining industry, followed by the capital markets industry.

The top-performing holdings were Sherwin-Williams Co., Sigma-Aldrich Corp., and Air Products & Chemicals, Inc. The worst-performing holdings included Barrick Gold Corp., Freeport-McMoRan, Inc., and Vale S.A. ADR.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 1, 1998
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.	2.7%
Monsanto Co.	2.6%
LyondellBasell Industries N.V. — Class A	2.3%
Praxair, Inc.	2.1%
Ecolab, Inc.	2.1%
Air Products & Chemicals, Inc.	2.1%
PPG Industries, Inc.	2.0%
Sherwin-Williams Co.	1.9%
Southern Copper Corp.	1.8%
Top Ten Total	22.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 19

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-3.77%	2.76%	5.65%
Advisor Class Shares	-4.30%	2.24%	5.12%
A-Class Shares	-4.05%	2.50%	5.39%
A-Class Shares with sales charge†	-8.61%	1.50%	4.88%
C-Class Shares	-4.76%	1.73%	4.60%
C-Class Shares with CDSC‡	-5.70%	1.73%	4.60%
S&P 500 Materials Index	4.97%	10.82%	7.55%
S&P 500 Index	12.73%	14.47%	8.01%

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

20 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
CHEMICALS-DIVERSIFIED - 15.2%
EI du Pont de Nemours & Co.		23,128	$	1,652,957
Dow Chemical Co.		32,834		1,575,375
LyondellBasell Industries N.V. — Class A		15,476		1,358,793
PPG Industries, Inc.		5,100		1,150,254
Westlake Chemical Corp.		9,340		671,920
Celanese Corp. — Class A		11,082		619,041
FMC Corp.		9,851		563,970
Huntsman Corp.		22,235		492,950
Axiall Corp.		8,180		383,969
Olin Corp.		10,828		346,929
Total Chemicals-Diversified				8,816,158
CHEMICALS-SPECIALTY - 15.0%
Ecolab, Inc.		10,621		1,214,831
Sigma-Aldrich Corp.		6,169		852,864
Eastman Chemical Co.		9,728		673,761
International Flavors & Fragrances, Inc.		5,471		642,295
Ashland, Inc.		4,872		620,254
WR Grace & Co.*		5,845		577,895
NewMarket Corp.		1,175		561,415
Albemarle Corp.		9,649		509,853
Platform Specialty Products Corp.*		17,900		459,314
Methanex Corp.		8,470		453,738
Cytec Industries, Inc.		7,726		417,513
Sensient Technologies Corp.		5,680		391,238
Cabot Corp.		8,070		363,150
Minerals Technologies, Inc.		4,645		339,550
HB Fuller Co.		7,170		307,378
Chemtura Corp.*		10,800		294,732
Total Chemicals-Specialty				8,679,781
GOLD MINING - 9.3%
Barrick Gold Corp.		71,168		780,000
Goldcorp, Inc.		38,856		704,071
Newmont Mining Corp.		31,305		679,632
Agnico Eagle Mines Ltd.		18,903		528,150
Randgold Resources Ltd. ADR		7,484		518,417
AngloGold Ashanti Ltd. ADR*		52,039		486,044
Franco-Nevada Corp.		9,808		476,080
Royal Gold, Inc.		6,643		419,240
Eldorado Gold Corp.		89,632		411,411
Cia de Minas Buenaventura S.A.A. ADR		40,053		405,737
Total Gold Mining				5,408,782
CONTAINERS-PAPER/PLASTIC - 7.9%
Sealed Air Corp.		14,063		640,710
Rock-Tenn Co. — Class A		9,590		618,555
MeadWestvaco Corp.		11,972		597,044
Packaging Corporation of America		7,400		578,606
Graphic Packaging Holding Co.		31,120		452,485
Sonoco Products Co.		9,910		450,509
Berry Plastics Group, Inc.*		12,136		439,202
Bemis Company, Inc.		9,472		438,648
KapStone Paper and Packaging Corp.		11,411		374,737
Total Containers-Paper/Plastic				4,590,496
AGRICULTURAL CHEMICALS - 7.3%
Monsanto Co.		13,373		1,504,997
Mosaic Co.		18,438		849,254
CF Industries Holdings, Inc.		2,764		784,092
Potash Corporation of Saskatchewan, Inc.		18,980		612,105
Agrium, Inc.		4,813		501,852
Total Agricultural Chemicals				4,252,300
STEEL-PRODUCERS - 5.9%
Nucor Corp.		17,087		812,145
Steel Dynamics, Inc.		24,040		483,204
Reliance Steel & Aluminum Co.		7,678		468,972
ArcelorMittal1		44,714		421,206
United States Steel Corp.1		16,994		414,654
Commercial Metals Co.		19,110		309,391
Carpenter Technology Corp.		7,805		303,458
AK Steel Holding Corp.*,1		44,763		200,091
Total Steel-Producers				3,413,121
INDUSTRIAL GASES - 5.2%
Praxair, Inc.		10,112		1,220,923
Air Products & Chemicals, Inc.		7,858		1,188,758
Airgas, Inc.		5,366		569,386
Total Industrial Gases				2,979,067
BUILDING PRODUCTS-CEMENT/AGGREGATES - 4.2%
Vulcan Materials Co.		8,248		695,307
Cemex SAB de CV ADR*		70,686		669,396
Martin Marietta Materials, Inc.		4,559		637,348
Eagle Materials, Inc.		5,221		436,267
Total Building Products-Cement/Aggregates				2,438,318
COATINGS/PAINT - 3.7%
Sherwin-Williams Co.		3,856		1,097,032
Valspar Corp.		6,375		535,691
RPM International, Inc.		11,031		529,378
Total Coatings/Paint				2,162,101
CONTAINERS-METAL/GLASS - 3.5%
Ball Corp.		9,114		643,813
Crown Holdings, Inc.*		10,881		587,792
Silgan Holdings, Inc.		7,000		406,910
Owens-Illinois, Inc.*		17,441		406,724
Total Containers-Metal/Glass				2,045,239
METAL-COPPER - 3.4%
Southern Copper Corp.1		34,860		1,017,215
Freeport-McMoRan, Inc.		50,518		957,316
Total Metal-Copper				1,974,531

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
BASIC MATERIALS FUND

	Shares		Value
DIVERSIFIED MINERALS - 3.0%
BHP Billiton Ltd. ADR1		15,375	$	714,476
BHP Billiton plc ADR1		11,660		516,072
Teck Resources Ltd. — Class B		34,933		479,630
Total Diversified Minerals				1,710,178
METAL-ALUMINUM - 2.9%
Alcoa, Inc.		64,066		827,733
Constellium N.V. — Class A*		18,600		377,952
Kaiser Aluminum Corp.		3,190		245,279
Century Aluminum Co.*		16,700		230,460
Total Metal-Aluminum				1,681,424
PAPER & RELATED PRODUCTS - 2.6%
International Paper Co.		18,301		1,015,523
Domtar Corp.		10,443		482,675
Total Paper & Related Products				1,498,198
METAL-IRON - 1.7%
Vale S.A. ADR1		144,542		816,663
Cliffs Natural Resources, Inc.1		37,345		179,629
Total Metal-Iron				996,292
SILVER MINING - 1.6%
Silver Wheaton Corp.		27,856		529,821
Pan American Silver Corp.		44,306		388,564
Total Silver Mining				918,385
METAL-DIVERSIFIED - 1.0%
Rio Tinto plc ADR		13,825		572,355
OFFICE SUPPLIES & FORMS - 0.8%
Avery Dennison Corp.		8,577		453,809
GARDEN PRODUCTS - 0.7%
Scotts Miracle-Gro Co. — Class A		6,200		416,454
MISCELLANEOUS MANUFACTURING - 0.7%
AptarGroup, Inc.		6,474		411,228
CHEMICALS-PLASTICS - 0.7%
PolyOne Corp.		10,312		385,153
STEEL-SPECIALTY - 0.7%
Allegheny Technologies, Inc.		12,698		381,067
QUARRYING - 0.6%
Compass Minerals International, Inc.		3,978		370,789
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS - 0.6%
Louisiana-Pacific Corp.*		20,053		331,075
BUILDING PRODUCTS - WOOD - 0.5%
Boise Cascade Co.*		7,000		262,220
PLATINUM - 0.5%
Stillwater Mining Co.*		20,029		258,775
OIL FIELD MACHINERY & EQUIPMENT - 0.3%
Flotek Industries, Inc.*		12,953		190,927
Total Common Stocks
(Cost $41,804,915)				57,598,223
	Face Amount
REPURCHASE AGREEMENT††,2 - 0.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	298,279		298,279
Total Repurchase Agreement
(Cost $298,279)				298,279
SECURITIES LENDING COLLATERAL††,3 - 5.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,942,643		1,942,643
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		668,269		668,269
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		344,936		344,936
Total Securities Lending Collateral
(Cost $2,955,848)				2,955,848
Total Investments - 105.1%
(Cost $45,059,042)			$	60,852,350
Other Assets & Liabilities, net - (5.1)%				(2,944,129	)
Total Net Assets - 100.0%			$	57,908,221

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,849,049 of securities loaned (cost $41,804,915)	$	57,598,223
Repurchase agreements, at value (cost $3,254,127)		3,254,127
Total investments (cost $45,059,042)		60,852,350
Segregated cash with broker		43,202
Cash		18,409
Receivables:
Securities sold		1,302,096
Dividends		98,965
Fund shares sold		88,829
Securities lending income		2,234
Total assets		62,406,085
Liabilities:
Payable for:
Return of securities loaned		2,999,050
Fund shares redeemed		1,402,711
Management fees		45,083
Transfer agent and administrative fees		13,260
Distribution and service fees		6,264
Portfolio accounting fees		5,304
Miscellaneous		26,192
Total liabilities		4,497,864
Commitments and contingent liabilities (Note 10)		—
Net assets	$	57,908,221
Net assets consist of:
Paid in capital	$	69,726,908
Undistributed net investment income		213,276
Accumulated net realized loss on investments		(27,825,271	)
Net unrealized appreciation on investments		15,793,308
Net assets	$	57,908,221
Investor Class:
Net assets	$	46,508,703
Capital shares outstanding		926,908
Net asset value per share	$	50.18
Advisor Class:
Net assets	$	2,073,365
Capital shares outstanding		44,890
Net asset value per share	$	46.19
A-Class:
Net assets	$	6,193,560
Capital shares outstanding		130,281
Net asset value per share	$	47.54
Maximum offering price per share (Net asset value divided by 95.25%)	$	49.91
C-Class:
Net assets	$	3,132,593
Capital shares outstanding		72,247
Net asset value per share	$	43.36

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $19,591)	$	967,278
Income from securities lending, net		31,975
Interest		50
Total investment income		999,303
Expenses:
Management fees		449,417
Transfer agent and administrative fees		132,181
Distribution and service fees:
Advisor Class		17,912
A-Class		22,151
C-Class		45,185
Portfolio accounting fees		52,872
Custodian fees		6,156
Trustees’ fees*		3,650
Tax expense		1,493
Line of credit fees		98
Miscellaneous		66,506
Total expenses		797,621
Net investment income		201,682
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		451,596
Net realized gain		451,596
Net change in unrealized appreciation (depreciation) on:
Investments		(3,176,749	)
Net change in unrealized appreciation (depreciation)		(3,176,749	)
Net realized and unrealized loss		(2,725,153	)
Net decrease in net assets resulting from operations	$	(2,523,471	)

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	201,682		$	217,641
Net realized gain on investments		451,596			6,023,395
Net change in unrealized appreciation (depreciation) on investments		(3,176,749	)		(5,738,840	)
Net increase (decrease) in net assets resulting from operations		(2,523,471	)		502,196
Distributions to shareholders from:
Net investment income
Investor Class		(126,318	)		(196,131	)
Advisor Class		(15,206	)		(14,384	)
A-Class		(52,521	)		(54,137	)
C-Class		(38,108	)		(34,529	)
Total distributions to shareholders		(232,153	)		(299,181	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		174,133,848			162,952,932
Advisor Class		93,725,732			8,129,722
A-Class		17,363,620			13,387,890
C-Class		21,170,418			22,384,921
Distributions reinvested
Investor Class		122,696			187,009
Advisor Class		14,751			13,713
A-Class		48,718			50,565
C-Class		33,909			31,129
Cost of shares redeemed
Investor Class		(159,713,668	)		(165,714,358	)
Advisor Class		(93,948,162	)		(9,087,918	)
A-Class		(24,254,035	)		(11,090,005	)
C-Class		(22,896,209	)		(23,983,376	)
Net increase (decrease) from capital share transactions		5,801,618			(2,737,776	)
Net increase (decrease) in net assets		3,045,994			(2,534,761	)
Net assets:
Beginning of year		54,862,227			57,396,988
End of year	$	57,908,221		$	54,862,227
Undistributed net investment income at end of year	$	213,276		$	199,782
Capital share activity:
Shares sold
Investor Class		3,328,992			3,283,583
Advisor Class		1,959,976			179,322
A-Class		343,124			276,591
C-Class		460,459			520,203
Shares issued from reinvestment of distributions
Investor Class		2,376			3,814
Advisor Class		310			302
A-Class		995			1,084
C-Class		757			724
Shares redeemed
Investor Class		(3,045,699	)		(3,367,228	)
Advisor Class		(1,970,445	)		(202,337	)
A-Class		(481,155	)		(243,630	)
C-Class		(501,150	)		(559,837	)
Net increase (decrease) in shares		98,540			(107,409	)

24 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.53		$	49.94		$	49.80		$	56.36		$	44.65
Income (loss) from investment operations:
Net investment income (loss)a		.29			.32			.46			.09			—	b
Net gain (loss) on investments (realized and unrealized)		(2.26	)		2.58			(.15	)		(6.65	)		11.82
Total from investment operations		(1.97	)		2.90			.31			(6.56	)		11.82
Less distributions from:
Net investment income		(.38	)		(.31	)		(.17	)		—			(.11	)
Total distributions		(.38	)		(.31	)		(.17	)		—			(.11	)
Net asset value, end of period	$	50.18		$	52.53		$	49.94		$	49.80		$	56.36
Total Returnc		(3.77	%)		5.84	%		0.65	%		(11.66	%)		26.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46,509		$	33,687		$	36,012		$	36,847		$	73,606
Ratios to average net assets:
Net investment income (loss)		0.56	%		0.66	%		0.95	%		0.17	%		0.00	%
Total expenses		1.34	%		1.38	%		1.36	%		1.36	%		1.39	%
Portfolio turnover rate		358	%		349	%		251	%		217	%		292	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	48.64		$	46.50		$	46.61		$	53.00		$	42.20
Income (loss) from investment operations:
Net investment income (loss)a		—	b		.08			.19			.08			(.20	)
Net gain (loss) on investments (realized and unrealized)		(2.07	)		2.37			(.13	)		(6.47	)		11.11
Total from investment operations		(2.07	)		2.45			.06			(6.39	)		10.91
Less distributions from:
Net investment income		(.38	)		(.31	)		(.17	)		—			(.11	)
Total distributions		(.38	)		(.31	)		(.17	)		—			(.11	)
Net asset value, end of period	$	46.19		$	48.64		$	46.50		$	46.61		$	53.00
Total Returnc		(4.30	%)		5.31	%		0.16	%		(12.08	%)		25.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,073		$	2,678		$	3,616		$	5,287		$	15,986
Ratios to average net assets:
Net investment income (loss)		0.00	%d		0.18	%		0.43	%		0.17	%		(0.44	%)
Total expenses		1.85	%		1.88	%		1.86	%		1.86	%		1.89	%
Portfolio turnover rate		358	%		349	%		251	%		217	%		292	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	49.93		$	47.60		$	47.58		$	53.99		$	42.88
Income (loss) from investment operations:
Net investment income (loss)a		.13			.22			.32			(.01	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(2.14	)		2.42			(.13	)		(6.40	)		11.31
Total from investment operations		(2.01	)		2.64			.19			(6.41	)		11.22
Less distributions from:
Net investment income		(.38	)		(.31	)		(.17	)		—			(.11	)
Total distributions		(.38	)		(.31	)		(.17	)		—			(.11	)
Net asset value, end of period	$	47.54		$	49.93		$	47.60		$	47.58		$	53.99
Total Returnc		(4.05	%)		5.58	%		0.41	%		(11.87	%)		26.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,194		$	13,347		$	11,104		$	9,410		$	18,187
Ratios to average net assets:
Net investment income (loss)		0.27	%		0.47	%		0.69	%		(0.03	%)		(0.19	%)
Total expenses		1.60	%		1.63	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		358	%		349	%		251	%		217	%		292	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	45.91		$	44.12		$	44.45		$	50.80		$	40.67
Income (loss) from investment operations:
Net investment income (loss)a		(.23	)		(.15	)		(.03	)		(.33	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		(1.94	)		2.25			(.13	)		(6.02	)		10.64
Total from investment operations		(2.17	)		2.10			(.16	)		(6.35	)		10.24
Less distributions from:
Net investment income		(.38	)		(.31	)		(.17	)		—			(.11	)
Total distributions		(.38	)		(.31	)		(.17	)		—			(.11	)
Net asset value, end of period	$	43.36		$	45.91		$	44.12		$	44.45		$	50.80
Total Returnc		(4.76	%)		4.80	%		(0.35	%)		(12.50	%)		25.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,133		$	5,150		$	6,666		$	8,317		$	13,353
Ratios to average net assets:
Net investment income (loss)		(0.49	%)		(0.34	%)		(0.07	%)		(0.73	%)		(0.93	%)
Total expenses		2.35	%		2.38	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		358	%		349	%		251	%		217	%		292	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.
d	Less than 0.01%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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 biological engineering, and in the design, manufacture, or sale of related biotechnology products or services (“biotechnology companies”).

For the one-year period ended March 31, 2015, Biotechnology Fund Investor Class returned 42.19%, compared with the S&P 500 Health Care Index, which returned 26.19%. The broader S&P 500 Index returned 12.73%.

The industry that contributed most to return was biotechnology, followed by life sciences tools & services. The pharmaceuticals industry detracted from return.

The best-performing holdings in the Fund were Gilead Sciences, Inc., Celgene Corp., and Puma Biotechnology, Inc. The worst-performing holdings in the Fund included Seattle Genetics, Inc., Aegerion Pharmaceuticals, Inc., and Theravance Biopharma, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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.	6.8%
Amgen, Inc.	6.1%
Biogen, Inc.	5.7%
Celgene Corp.	5.3%
Regeneron Pharmaceuticals, Inc.	3.5%
Alexion Pharmaceuticals, Inc.	3.3%
Vertex Pharmaceuticals, Inc.	2.9%
Illumina, Inc.	2.8%
BioMarin Pharmaceutical, Inc.	2.6%
Pharmacyclics, Inc.	2.5%
Top Ten Total	41.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 27

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	42.19%	28.92%	18.66%
Advisor Class Shares	41.49%	28.27%	18.08%
A-Class Shares	41.83%	28.59%	18.36%
A-Class Shares with sales charge†	35.10%	27.34%	17.79%
C-Class Shares	40.75%	27.64%	17.50%
C-Class Shares with CDSC‡	39.75%	27.64%	17.50%
S&P 500 Health Care Index	26.19%	20.09%	11.41%
S&P 500 Index	12.73%	14.47%	8.01%

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

28 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.4%
MEDICAL-BIOMEDICAL/GENETICS - 70.4%
Gilead Sciences, Inc.*		477,742	$	46,880,822
Amgen, Inc.		263,144		42,063,569
Biogen, Inc.*		93,401		39,437,638
Celgene Corp.*		319,185		36,795,647
Regeneron Pharmaceuticals, Inc.*		54,314		24,521,685
Alexion Pharmaceuticals, Inc.*		132,602		22,979,927
Vertex Pharmaceuticals, Inc.*		168,670		19,898,000
Illumina, Inc.*		105,123		19,515,034
BioMarin Pharmaceutical, Inc.*		142,144		17,713,985
Incyte Corp.*		169,999		15,582,108
Medivation, Inc.*		95,545		12,331,993
Intrexon Corp.*,1		262,400		11,905,088
Alnylam Pharmaceuticals, Inc.*		106,133		11,082,408
United Therapeutics Corp.*		62,426		10,764,427
Isis Pharmaceuticals, Inc.*,1		160,787		10,237,308
Intercept Pharmaceuticals, Inc.*,1		31,335		8,837,097
Puma Biotechnology, Inc.*		36,836		8,697,348
Seattle Genetics, Inc.*,1		222,094		7,851,023
Bio-Rad Laboratories, Inc. — Class A*		58,069		7,849,767
Bluebird Bio, Inc.*		63,700		7,693,049
Charles River Laboratories International, Inc.*		94,485		7,491,716
Myriad Genetics, Inc.*,1		182,580		6,463,332
Synageva BioPharma Corp.*		64,880		6,327,746
Kite Pharma, Inc.*,1		104,300		6,016,024
Celldex Therapeutics, Inc.*,1		212,993		5,936,115
Exact Sciences Corp.*,1		250,055		5,506,211
Novavax, Inc.*		628,585		5,198,398
Medicines Co.*		182,472		5,112,865
PTC Therapeutics, Inc.*		83,175		5,061,199
AMAG Pharmaceuticals, Inc.*,1		92,200		5,039,652
Halozyme Therapeutics, Inc.*		349,655		4,993,073
ARIAD Pharmaceuticals, Inc.*,1		575,489		4,742,029
NewLink Genetics Corp.*,1		84,560		4,626,278
Acorda Therapeutics, Inc.*		138,922		4,623,324
Ligand Pharmaceuticals, Inc. — Class B*,1		59,143		4,560,517
Merrimack Pharmaceuticals, Inc.*,1		377,100		4,479,948
PDL BioPharma, Inc.1		601,170		4,229,231
Repligen Corp.*		130,224		3,953,601
Aegerion Pharmaceuticals, Inc.*,1		127,225		3,329,478
Juno Therapeutics, Inc.*		48,500		2,942,010
Theravance, Inc.1		165,064		2,594,806
ZIOPHARM Oncology, Inc.*,1		122,800		1,322,556
Total Medical-Biomedical/Genetics				487,188,032
MEDICAL-DRUGS - 16.8%
OPKO Health, Inc.*,1		814,640		11,543,449
Quintiles Transnational Holdings, Inc.*		169,264		11,335,610
Alkermes plc*		165,378		10,083,097
Receptos, Inc.*		53,513		8,823,759
ACADIA Pharmaceuticals, Inc.*		209,628		6,831,777
Anacor Pharmaceuticals, Inc.*		107,700		6,230,445
Endo International plc*		66,900		6,000,930
Ironwood Pharmaceuticals, Inc. — Class A*		369,996		5,919,936
Clovis Oncology, Inc.*,1		78,997		5,863,947
TESARO, Inc.*,1		100,403		5,763,132
Insys Therapeutics, Inc.*,1		97,823		5,686,451
Keryx Biopharmaceuticals, Inc.*,1		365,265		4,649,823
Chimerix, Inc.*		118,450		4,464,381
Shire plc ADR		17,900		4,283,291
Salix Pharmaceuticals Ltd.*		22,900		3,957,349
Regulus Therapeutics, Inc.*		202,632		3,432,586
Akorn, Inc.*		64,900		3,083,399
Jazz Pharmaceuticals plc*		14,100		2,436,339
Pacira Pharmaceuticals, Inc.*		22,900		2,034,665
Radius Health, Inc.*		34,000		1,399,440
Cempra, Inc.*		39,800		1,365,538
Array BioPharma, Inc.*		173,600		1,279,432
Total Medical-Drugs				116,468,776
THERAPEUTICS - 6.4%
Pharmacyclics, Inc.*		67,200		17,199,840
Agios Pharmaceuticals, Inc.*		75,104		7,082,307
Neurocrine Biosciences, Inc.*		174,775		6,940,315
Dyax Corp.*		351,565		5,890,472
Portola Pharmaceuticals, Inc.*		137,370		5,214,565
MannKind Corp.*,1		309,600		1,609,920
Total Therapeutics				43,937,419
MEDICAL-GENERIC DRUGS - 1.3%
Mylan N.V.*		115,700		6,866,795
Impax Laboratories, Inc.*		48,100		2,254,447
Total Medical-Generic Drugs				9,121,242
DIAGNOSTIC EQUIPMENT - 1.1%
Cepheid*		136,876		7,788,244
MEDICAL INSTRUMENTS - 1.1%
Bio-Techne Corp.		77,597		7,782,203
DIAGNOSTIC KITS - 1.1%
QIAGEN N.V.*		297,600		7,499,520
DRUG DELIVERY SYSTEMS - 0.8%
Nektar Therapeutics*		380,280		4,183,080
Depomed, Inc.*		66,200		1,483,542
Total Drug Delivery Systems				5,666,622
DIVERSIFIED OPERATIONS - 0.4%
Horizon Pharma plc*		99,800		2,591,806
Total Common Stocks
(Cost $375,167,671)				688,043,864

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
BIOTECHNOLOGY FUND

	Shares		Value
RIGHTS††† - 0.0%
Chelsea Therapeutics International
Expires 12/31/17*,1		263,700	$	21,096
Clinical Data, Inc.
Expires 12/31/20*		24,000		—
Total Rights
(Cost $19,745)				21,096

	Face Amount
REPURCHASE AGREEMENT††,2 - 1.1%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	7,696,522		7,696,522
Total Repurchase Agreement
(Cost $7,696,522)				7,696,522
SECURITIES LENDING COLLATERAL††,3 - 11.9%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		54,157,844		54,157,844
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		18,630,298		18,630,298
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		9,616,267		9,616,267
Total Securities Lending Collateral
(Cost $82,404,409)				82,404,409
Total Investments - 112.4%
(Cost $465,288,347)			$	778,165,891
Other Assets & Liabilities, net - (12.4)%				(86,217,685	)
Total Net Assets - 100.0%			$	691,948,206

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $79,529,180 of securities loaned (cost $375,187,416)	$	688,064,960
Repurchase agreements, at value (cost $90,100,931)		90,100,931
Total investments (cost $465,288,347)		778,165,891
Segregated cash with broker		1,204,397
Receivables:
Securities sold		6,644,482
Fund shares sold		3,596,231
Securities lending income		275,996
Interest		6
Total assets		789,887,003
Liabilities:
Payable for:
Return of securities loaned		83,608,806
Fund shares redeemed		13,307,815
Management fees		498,622
Transfer agent and administrative fees		146,653
Distribution and service fees		80,763
Portfolio accounting fees		44,685
Miscellaneous		251,453
Total liabilities		97,938,797
Commitments and contingent liabilities (Note 10)		—
Net assets	$	691,948,206
Net assets consist of:
Paid in capital	$	391,315,217
Undistributed net investment income		1
Accumulated net realized loss on investments		(12,244,556	)
Net unrealized appreciation on investments		312,877,544
Net assets	$	691,948,206
Investor Class:
Net assets	$	498,068,443
Capital shares outstanding		5,319,592
Net asset value per share	$	93.63
Advisor Class:
Net assets	$	63,195,768
Capital shares outstanding		740,128
Net asset value per share	$	85.38
A-Class:
Net assets	$	89,260,236
Capital shares outstanding		1,018,626
Net asset value per share	$	87.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	92.00
C-Class:
Net assets	$	41,423,759
Capital shares outstanding		512,184
Net asset value per share	$	80.88

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Income from securities lending, net	$	3,343,368
Dividends		1,433,083
Interest		540
Total investment income		4,776,991
Expenses:
Management fees		4,096,238
Transfer agent and administrative fees		1,204,772
Distribution and service fees:
Advisor Class		219,630
A-Class		146,149
C-Class		287,763
Portfolio accounting fees		414,558
Custodian fees		56,160
Trustees’ fees*		31,049
Line of credit fees		5,296
Miscellaneous		601,767
Total expenses		7,063,382
Net investment loss		(2,286,391	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		37,059,172
Net realized gain		37,059,172
Net change in unrealized appreciation (depreciation) on:
Investments		131,104,324
Net change in unrealized appreciation (depreciation)		131,104,324
Net realized and unrealized gain		168,163,496
Net increase in net assets resulting from operations	$	165,877,105

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(2,286,391	)	$	(3,549,985	)
Net realized gain on investments		37,059,172			22,271,740
Net change in unrealized appreciation (depreciation) on investments		131,104,324			84,195,149
Net increase in net assets resulting from operations		165,877,105			102,916,904
Distributions to shareholders from:
Net realized gains
Investor Class		(14,483,457	)		—
Advisor Class		(2,030,607	)		—
A-Class		(2,447,445	)		—
C-Class		(1,355,470	)		—
Total distributions to shareholders		(20,316,979	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		565,896,488			520,369,253
Advisor Class		173,383,484			128,608,371
A-Class		66,728,700			68,697,208
C-Class		34,835,985			39,913,128
Distributions reinvested
Investor Class		13,882,734			—
Advisor Class		2,002,511			—
A-Class		2,278,723			—
C-Class		1,312,852			—
Cost of shares redeemed
Investor Class		(501,097,404	)		(452,747,513	)
Advisor Class		(163,288,238	)		(123,757,687	)
A-Class		(48,804,711	)		(55,968,103	)
C-Class		(30,485,330	)		(32,688,163	)
Net increase from capital share transactions		116,645,794			92,426,494
Net increase in net assets		262,205,920			195,343,398
Net assets:
Beginning of year		429,742,286			234,398,888
End of year	$	691,948,206		$	429,742,286
Undistributed net investment income at end of year	$	1		$	—
Capital share activity:
Shares sold
Investor Class		7,040,074			8,519,648
Advisor Class		2,393,490			2,294,916
A-Class		882,961			1,179,822
C-Class		511,004			749,811
Shares issued from reinvestment of distributions
Investor Class		174,846			—
Advisor Class		27,605			—
A-Class		30,636			—
C-Class		19,095			—
Shares redeemed
Investor Class		(6,471,507	)		(7,452,878	)
Advisor Class		(2,283,995	)		(2,188,643	)
A-Class		(691,018	)		(955,296	)
C-Class		(470,009	)		(612,767	)
Net increase in shares		1,163,182			1,534,613

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	68.47		$	48.97		$	36.90		$	29.16		$	27.34
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.51	)		(.40	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		28.59			20.01			12.47			8.08			2.15
Total from investment operations		28.32			19.50			12.07			7.74			1.82
Less distributions from:
Net realized gains		(3.16	)		—			—			—			—
Total distributions		(3.16	)		—			—			—			—
Net asset value, end of period	$	93.63		$	68.47		$	48.97		$	36.90		$	29.16
Total Returnb		42.19	%		39.82	%		32.71	%		26.54	%		6.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	498,068		$	313,324		$	171,844		$	89,027		$	44,686
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.82	%)		(0.98	%)		(1.09	%)		(1.26	%)
Total expenses		1.33	%		1.36	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		107	%		119	%		197	%		333	%		337	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	62.98		$	45.27		$	34.27		$	27.22		$	25.66
Income (loss) from investment operations:
Net investment income (loss)a		(.61	)		(.74	)		(.56	)		(.48	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		26.17			18.45			11.56			7.53			1.99
Total from investment operations		25.56			17.71			11.00			7.05			1.56
Less distributions from:
Net realized gains		(3.16	)		—			—			—			—
Total distributions		(3.16	)		—			—			—			—
Net asset value, end of period	$	85.38		$	62.98		$	45.27		$	34.27		$	27.22
Total Returnb		41.49	%		39.12	%		32.10	%		25.90	%		6.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	63,196		$	37,978		$	22,486		$	8,313		$	7,410
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(1.32	%)		(1.46	%)		(1.65	%)		(1.77	%)
Total expenses		1.83	%		1.86	%		1.86	%		1.87	%		1.89	%
Portfolio turnover rate		107	%		119	%		197	%		333	%		337	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	64.41		$	46.18		$	34.88		$	27.64		$	25.98
Income (loss) from investment operations:
Net investment income (loss)a		(.44	)		(.62	)		(.48	)		(.37	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		26.82			18.85			11.78			7.61			2.03
Total from investment operations		26.38			18.23			11.30			7.24			1.66
Less distributions from:
Net realized gains		(3.16	)		—			—			—			—
Total distributions		(3.16	)		—			—			—			—
Net asset value, end of period	$	87.63		$	64.41		$	46.18		$	34.88		$	27.64
Total Returnb		41.83	%		39.48	%		32.40	%		26.19	%		6.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	89,260		$	51,270		$	26,391		$	4,741		$	2,211
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(1.07	%)		(1.21	%)		(1.30	%)		(1.51	%)
Total expenses		1.58	%		1.61	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		107	%		119	%		197	%		333	%		337	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	60.10		$	43.41		$	33.04		$	26.38		$	24.96
Income (loss) from investment operations:
Net investment income (loss)a		(.92	)		(.99	)		(.73	)		(.58	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		24.86			17.68			11.10			7.24			1.96
Total from investment operations		23.94			16.69			10.37			6.66			1.42
Less distributions from:
Net realized gains		(3.16	)		—			—			—			—
Total distributions		(3.16	)		—			—			—			—
Net asset value, end of period	$	80.88		$	60.10		$	43.41		$	33.04		$	26.38
Total Returnb		40.75	%		38.45	%		31.39	%		25.25	%		5.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41,424		$	27,170		$	13,677		$	6,969		$	3,393
Ratios to average net assets:
Net investment income (loss)		(1.34	%)		(1.82	%)		(1.96	%)		(2.06	%)		(2.27	%)
Total expenses		2.33	%		2.36	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		107	%		119	%		197	%		333	%		337	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

CONSUMER PRODUCTS FUND

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

For the one-year period ended March 31, 2015, Consumer Products Fund Investor Class returned 13.77%, compared with 16.53% for the S&P 500 Consumer Staples Index. The broader S&P 500 Index returned 12.73%.

The industry that contributed most to return was food products, followed by beverages. The leading detractors from return were the health care equipment & supplies industry, followed by the oil, gas & consumable fuels industry.

Fund performance for the period got the biggest boost from Altria Group, Inc., Kroger Co., and Kraft Foods Group, Inc. The Fund’s leading detractors during the period were Darling Ingredients, Inc., Ambev S.A. ADR, and Avon Products, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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.	5.0%
Coca-Cola Co.	4.6%
PepsiCo, Inc.	4.1%
Philip Morris International, Inc.	3.7%
Altria Group, Inc.	3.3%
Kraft Foods Group, Inc.	2.9%
Colgate-Palmolive Co.	2.7%
Mondelez International, Inc. — Class A	2.7%
Kimberly-Clark Corp.	2.2%
Kroger Co.	2.1%
Top Ten Total	33.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 35

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	13.77%	15.21%	10.04%
Advisor Class Shares	13.19%	14.65%	9.49%
A-Class Shares	13.47%	14.94%	9.77%
A-Class Shares with sales charge†	8.09%	13.82%	9.24%
C-Class Shares	12.62%	14.08%	8.93%
C-Class Shares with CDSC‡	11.62%	14.08%	8.93%
S&P 500 Consumer Staples Index	16.53%	15.00%	10.76%
S&P 500 Index	12.73%	14.47%	8.01%

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

36 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.0%
FOOD-MISCELLANEOUS/DIVERSIFIED - 17.2%
Kraft Foods Group, Inc.		108,390	$	9,442,395
Mondelez International, Inc. — Class A		242,626		8,756,372
General Mills, Inc.		119,537		6,765,794
Kellogg Co.		83,620		5,514,739
ConAgra Foods, Inc.		123,232		4,501,665
Campbell Soup Co.		92,717		4,315,976
McCormick & Company, Inc.		46,739		3,604,044
Hain Celestial Group, Inc.*		44,660		2,860,473
Ingredion, Inc.		33,430		2,601,523
Pinnacle Foods, Inc.		59,900		2,444,519
Lancaster Colony Corp.		19,452		1,851,247
Cal-Maine Foods, Inc.1		40,200		1,570,212
B&G Foods, Inc.		48,970		1,441,187
Total Food-Miscellaneous/Diversified				55,670,146
BEVERAGES-NON-ALCOHOLIC - 13.8%
Coca-Cola Co.		365,856		14,835,460
PepsiCo, Inc.		138,337		13,227,783
Monster Beverage Corp.*		38,753		5,363,221
Dr Pepper Snapple Group, Inc.		55,541		4,358,858
Coca-Cola Enterprises, Inc.		82,194		3,632,975
Fomento Economico Mexicano SAB de CV ADR*		32,793		3,066,146
Total Beverages-Non-alcoholic				44,484,443
TOBACCO - 12.4%
Philip Morris International, Inc.		157,097		11,834,117
Altria Group, Inc.		215,530		10,780,811
Reynolds American, Inc.		96,133		6,624,525
Lorillard, Inc.		81,001		5,293,415
British American Tobacco plc ADR		23,800		2,469,726
Vector Group Ltd.		83,900		1,843,283
Universal Corp.1		25,200		1,188,432
Total Tobacco				40,034,309
COSMETICS & TOILETRIES - 12.3%
Procter & Gamble Co.		198,630		16,275,742
Colgate-Palmolive Co.		127,499		8,840,781
Estee Lauder Companies, Inc. — Class A		75,856		6,308,185
Coty, Inc. — Class A*		138,000		3,349,260
Unilever N.V. — Class Y		66,561		2,779,587
Avon Products, Inc.		280,946		2,244,759
Total Cosmetics & Toiletries				39,798,314
FOOD-RETAIL - 5.5%
Kroger Co.		88,797		6,807,178
Whole Foods Market, Inc.		90,342		4,705,011
Sprouts Farmers Market, Inc.*		74,290		2,617,237
SUPERVALU, Inc.*		169,332		1,969,331
Fresh Market, Inc.*,1		38,020		1,545,133
Total Food-Retail				17,643,890
BREWERY - 4.9%
Anheuser-Busch InBev N.V. ADR		51,612		6,292,019
Molson Coors Brewing Co. — Class B		55,644		4,142,696
Ambev S.A. ADR		593,600		3,419,136
Boston Beer Company, Inc. — Class A*,1		7,835		2,095,079
Total Brewery				15,948,930
CONSUMER PRODUCTS-MISCELLANEOUS - 4.2%
Kimberly-Clark Corp.		65,162		6,979,502
Clorox Co.		38,567		4,257,411
Spectrum Brands Holdings, Inc.		26,800		2,400,208
Total Consumer Products-Miscellaneous				13,637,121
FOOD-MEAT PRODUCTS - 4.1%
Tyson Foods, Inc. — Class A		114,295		4,377,498
Hormel Foods Corp.		76,576		4,353,346
BRF S.A. ADR		142,080		2,810,342
Darling Ingredients, Inc.*		120,669		1,690,573
Total Food-Meat Products				13,231,759
BEVERAGES-WINE/SPIRITS - 4.0%
Constellation Brands, Inc. — Class A*		45,144		5,246,184
Brown-Forman Corp. — Class B		53,920		4,871,672
Diageo plc ADR		26,540		2,934,528
Total Beverages-Wine/Spirits				13,052,384
AGRICULTURAL OPERATIONS - 3.5%
Archer-Daniels-Midland Co.		130,103		6,166,882
Bunge Ltd.		47,696		3,928,243
Andersons, Inc.		30,500		1,261,785
Total Agricultural Operations				11,356,910
FOOD-CONFECTIONERY - 2.8%
Hershey Co.		51,992		5,246,512
JM Smucker Co.		33,531		3,880,543
Total Food-Confectionery				9,127,055
VITAMINS & NUTRITION PRODUCTS - 2.4%
Mead Johnson Nutrition Co. — Class A		49,479		4,974,124
Herbalife Ltd.1		61,614		2,634,615
Total Vitamins & Nutrition Products				7,608,739
FOOD-WHOLESALE/DISTRIBUTION - 2.3%
Sysco Corp.		137,815		5,199,760
United Natural Foods, Inc.*		28,866		2,223,837
Total Food-Wholesale/Distribution				7,423,597
FOOD-DAIRY PRODUCTS - 1.4%
WhiteWave Foods Co. — Class A*		71,900		3,188,046
Dean Foods Co.		87,540		1,447,036
Total Food-Dairy Products				4,635,082
COFFEE - 1.4%
Keurig Green Mountain, Inc.		39,974		4,466,295

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
CONSUMER PRODUCTS FUND

	Shares		Value
POULTRY - 1.3%
Pilgrim’s Pride Corp.1		114,300	$	2,582,037
Sanderson Farms, Inc.1		19,409		1,545,927
Total Poultry				4,127,964
SOAP & CLEANING PREPARATION - 1.1%
Church & Dwight Company, Inc.		43,366		3,704,324
BATTERIES/BATTERY SYSTEMS - 1.0%
Energizer Holdings, Inc.		23,535		3,249,007
FOOD-BAKING - 0.8%
Flowers Foods, Inc.		109,492		2,489,848
MULTILEVEL DIRECT SELLING - 0.7%
Nu Skin Enterprises, Inc. — Class A1		36,130		2,175,388
FOOD-CANNED - 0.7%
TreeHouse Foods, Inc.*		24,901		2,117,083
RETAIL-CONVENIENCE STORE - 0.6%
Casey’s General Stores, Inc.		23,423		2,110,412
FOOD-FLOUR & GRAIN - 0.6%
Post Holdings, Inc.*		39,300		1,840,812
Total Common Stocks
(Cost $237,185,815)				319,933,812
RIGHTS†††- 0.0%
Casa Ley
Expires 01/17/19*		93,765		14,064
PDC
Expires 01/17/17*		93,765		6,564
Total Rights
(Cost $23,055)				20,628

	Face Amount
REPURCHASE AGREEMENT††,2 - 0.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,404,800		1,404,800
Total Repurchase Agreement
(Cost $1,404,800)				1,404,800
SECURITIES LENDING COLLATERAL††,3 - 2.7%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		5,724,449		5,724,449
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		1,969,210		1,969,210
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,016,433		1,016,433
Total Securities Lending Collateral
(Cost $8,710,092)				8,710,092
Total Investments - 102.1%
(Cost $247,323,762)			$	330,069,332
Other Assets & Liabilities, net - (2.1)%				(6,885,086	)
Total Net Assets - 100.0%			$	323,184,246

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $8,624,874 of securities loaned (cost $237,208,870)	$	319,954,440
Repurchase agreements, at value (cost $10,114,892)		10,114,892
Total investments (cost $247,323,762)		330,069,332
Segregated cash with broker		127,304
Receivables:
Fund shares sold		3,769,399
Dividends		852,417
Securities lending income		14,002
Foreign taxes reclaim		3,976
Total assets		334,836,430
Liabilities:
Payable for:
Return of securities loaned		8,837,396
Fund shares redeemed		2,319,682
Management fees		224,959
Transfer agent and administrative fees		66,164
Distribution and service fees		40,613
Portfolio accounting fees		24,986
Miscellaneous		138,384
Total liabilities		11,652,184
Commitments and contingent liabilities (Note 10)		—
Net assets	$	323,184,246
Net assets consist of:
Paid in capital	$	253,407,913
Undistributed net investment income		2,821,703
Accumulated net realized loss on investments		(15,790,940	)
Net unrealized appreciation on investments		82,745,570
Net assets	$	323,184,246
Investor Class:
Net assets	$	222,954,377
Capital shares outstanding		3,807,959
Net asset value per share	$	58.55
Advisor Class:
Net assets	$	49,750,721
Capital shares outstanding		939,790
Net asset value per share	$	52.94
A-Class:
Net assets	$	32,762,389
Capital shares outstanding		599,364
Net asset value per share	$	54.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.39
C-Class:
Net assets	$	17,716,759
Capital shares outstanding		360,242
Net asset value per share	$	49.18

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $19,260)	$	6,677,348
Income from securities lending, net		78,752
Interest		255
Total investment income		6,756,355
Expenses:
Management fees		2,214,869
Transfer agent and administrative fees		651,430
Distribution and service fees:
Advisor Class		204,711
A-Class		68,773
C-Class		157,545
Portfolio accounting fees		252,145
Custodian fees		30,334
Trustees’ fees*		15,413
Tax expense		14,930
Line of credit fees		230
Miscellaneous		328,357
Total expenses		3,938,737
Net investment income		2,817,618
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,102,672
Net realized gain		2,102,672
Net change in unrealized appreciation (depreciation) on:
Investments		28,060,008
Net change in unrealized appreciation (depreciation)		28,060,008
Net realized and unrealized gain		30,162,680
Net increase in net assets resulting from operations	$	32,980,298

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

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,817,618		$	1,430,602
Net realized gain on investments		2,102,672			16,541,099
Net change in unrealized appreciation (depreciation) on investments		28,060,008			2,525,092
Net increase in net assets resulting from operations		32,980,298			20,496,793
Distributions to shareholders from:
Net investment income
Investor Class		(990,101	)		(1,145,002	)
Advisor Class		(228,315	)		(232,317	)
A-Class		(146,232	)		(203,982	)
C-Class		(80,799	)		(138,802	)
Net realized gains
Investor Class		(1,759,312	)		(3,773,580	)
Advisor Class		(405,693	)		(765,646	)
A-Class		(259,839	)		(672,262	)
C-Class		(143,573	)		(457,448	)
Total distributions to shareholders		(4,013,864	)		(7,389,039	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		261,191,921			198,150,046
Advisor Class		186,583,796			38,899,657
A-Class		31,333,989			21,016,640
C-Class		23,898,739			27,537,280
Distributions reinvested
Investor Class		2,302,863			4,792,637
Advisor Class		632,540			995,811
A-Class		319,969			697,114
C-Class		218,591			581,614
Cost of shares redeemed
Investor Class		(162,176,613	)		(291,984,030	)
Advisor Class		(169,292,713	)		(24,065,444	)
A-Class		(27,757,505	)		(19,454,898	)
C-Class		(22,094,028	)		(26,613,638	)
Net increase (decrease) from capital share transactions		125,161,549			(69,447,211	)
Net increase (decrease) in net assets		154,127,983			(56,339,457	)
Net assets:
Beginning of year		169,056,263			225,395,720
End of year	$	323,184,246		$	169,056,263
Undistributed net investment income at end of year	$	2,821,703		$	1,445,447

 

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Year Ended March 31, 2015		Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class	4,679,252		3,954,307
Advisor Class	3,693,937		847,688
A-Class	596,417		446,742
C-Class	506,456		642,147
Shares issued from reinvestment of distributions
Investor Class	40,408		94,753
Advisor Class	12,254		21,601
A-Class	6,008		14,701
C-Class	4,561		13,476
Shares redeemed
Investor Class	(2,874,581	)	(5,892,976	)
Advisor Class	(3,339,602	)	(527,437	)
A-Class	(526,497	)	(418,104	)
C-Class	(469,691	)	(619,832	)
Net increase (decrease) in shares	2,328,922		(1,422,934	)

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.08		$	47.79		$	40.19		$	36.37		$	37.83
Income (loss) from investment operations:
Net investment income (loss)a		.71			.46			.57			.49			.69
Net gain (loss) on investments (realized and unrealized)		6.44			5.81			7.14			4.82			4.40
Total from investment operations		7.15			6.27			7.71			5.31			5.09
Less distributions from:
Net investment income		(.24	)		(.46	)		(.11	)		(.57	)		(.82	)
Net realized gains		(.44	)		(1.52	)		—			(.92	)		(5.73	)
Total distributions		(.68	)		(1.98	)		(.11	)		(1.49	)		(6.55	)
Net asset value, end of period	$	58.55		$	52.08		$	47.79		$	40.19		$	36.37
Total Returnb		13.77	%		13.24	%		19.26	%		15.06	%		14.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	222,954		$	102,231		$	181,945		$	155,432		$	57,876
Ratios to average net assets:
Net investment income (loss)		1.27	%		0.91	%		1.38	%		1.29	%		1.84	%
Total expenses		1.34	%		1.37	%		1.35	%		1.35	%		1.38	%
Portfolio turnover rate		87	%		112	%		230	%		402	%		400	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	47.39		$	43.87		$	37.08		$	33.84		$	35.77
Income (loss) from investment operations:
Net investment income (loss)a		.37			.24			.35			.24			.62
Net gain (loss) on investments (realized and unrealized)		5.86			5.26			6.55			4.49			4.00
Total from investment operations		6.23			5.50			6.90			4.73			4.62
Less distributions from:
Net investment income		(.24	)		(.46	)		(.11	)		(.57	)		(.82	)
Net realized gains		(.44	)		(1.52	)		—			(.92	)		(5.73	)
Total distributions		(.68	)		(1.98	)		(.11	)		(1.49	)		(6.55	)
Net asset value, end of period	$	52.94		$	47.39		$	43.87		$	37.08		$	33.84
Total Returnb		13.19	%		12.66	%		18.66	%		14.49	%		14.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49,751		$	27,162		$	10,148		$	16,975		$	3,475
Ratios to average net assets:
Net investment income (loss)		0.74	%		0.51	%		0.93	%		0.68	%		1.78	%
Total expenses		1.85	%		1.87	%		1.85	%		1.84	%		1.88	%
Portfolio turnover rate		87	%		112	%		230	%		402	%		400	%

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	48.79		$	45.00		$	37.93		$	34.49		$	36.26
Income (loss) from investment operations:
Net investment income (loss)a		.48			.33			.44			.40			.41
Net gain (loss) on investments (realized and unrealized)		6.07			5.44			6.74			4.53			4.37
Total from investment operations		6.55			5.77			7.18			4.93			4.78
Less distributions from:
Net investment income		(.24	)		(.46	)		(.11	)		(.57	)		(.82	)
Net realized gains		(.44	)		(1.52	)		—			(.92	)		(5.73	)
Total distributions		(.68	)		(1.98	)		(.11	)		(1.49	)		(6.55	)
Net asset value, end of period	$	54.66		$	48.79		$	45.00		$	37.93		$	34.49
Total Returnb		13.47	%		12.95	%		18.98	%		14.80	%		14.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,762		$	25,538		$	21,604		$	21,021		$	5,033
Ratios to average net assets:
Net investment income (loss)		0.92	%		0.70	%		1.12	%		1.11	%		1.14	%
Total expenses		1.60	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		87	%		112	%		230	%		402	%		400	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	44.29		$	41.32		$	35.11		$	32.28		$	34.57
Income (loss) from investment operations:
Net investment income (loss)a		.09			(.01	)		.13			.12			.30
Net gain (loss) on investments (realized and unrealized)		5.48			4.96			6.19			4.20			3.96
Total from investment operations		5.57			4.95			6.32			4.32			4.26
Less distributions from:
Net investment income		(.24	)		(.46	)		(.11	)		(.57	)		(.82	)
Net realized gains		(.44	)		(1.52	)		—			(.92	)		(5.73	)
Total distributions		(.68	)		(1.98	)		(.11	)		(1.49	)		(6.55	)
Net asset value, end of period	$	49.18		$	44.29		$	41.32		$	35.11		$	32.28
Total Returnb		12.62	%		12.11	%		18.06	%		13.91	%		13.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,717		$	14,125		$	11,699		$	9,712		$	3,484
Ratios to average net assets:
Net investment income (loss)		0.20	%		(0.02	%)		0.37	%		0.36	%		0.90	%
Total expenses		2.35	%		2.37	%		2.35	%		2.35	%		2.38	%
Portfolio turnover rate		87	%		112	%		230	%		402	%		400	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

ELECTRONICS FUND

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

For the one-year period ended March 31, 2015, Electronics Fund Investor Class returned 19.65%, compared with 18.11% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 12.73%.

Almost all the holdings in the Fund are in the semiconductors industry and the semiconductor equipment industry. Both contributed to the Fund’s positive performance for the period.

For the period, Fund performance got the biggest boost from Skyworks Solutions, Inc., Intel Corp., and Avago Technologies Ltd. Holdings detracting from Fund performance for the period were Himax Technologies, Inc. ADR, Yingli Green Energy Holding Company Ltd. ADR, and GT Advanced Technologies, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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.	8.3%
Texas Instruments, Inc.	5.1%
Micron Technology, Inc.	3.6%
Applied Materials, Inc.	3.4%
Broadcom Corp. — Class A	3.3%
Analog Devices, Inc.	3.1%
Skyworks Solutions, Inc.	2.9%
Avago Technologies Ltd.	2.7%
NXP Semiconductor N.V.	2.7%
Altera Corp.	2.6%
Top Ten Total	37.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

44 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	19.65%	9.82%	4.95%
Advisor Class Shares	19.04%	9.26%	4.43%
A-Class Shares	19.36%	9.54%	4.68%
A-Class Shares with sales charge†	13.69%	8.48%	4.17%
C-Class Shares	18.50%	8.74%	3.93%
C-Class Shares with CDSC‡	17.50%	8.74%	3.93%
S&P 500 Information Technology Index	18.11%	14.55%	9.77%
S&P 500 Index	12.73%	14.47%	8.01%

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

THE RYDEX FUNDS ANNUAL REPORT | 45

SCHEDULE OF INVESTMENTS	March 31, 2015
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.3%
ELECTRONIC COMPONENTS - SEMICONDUCTOR - 53.5%
Intel Corp.		72,421	$	2,264,607
Texas Instruments, Inc.		24,455		1,398,459
Micron Technology, Inc.*		35,991		976,436
Broadcom Corp. — Class A		21,012		909,715
Skyworks Solutions, Inc.		8,025		788,777
Avago Technologies Ltd.		5,803		736,865
Altera Corp.		16,776		719,858
Freescale Semiconductor Ltd.*		15,713		640,462
Xilinx, Inc.		14,361		607,470
NVIDIA Corp.		28,375		593,747
Microchip Technology, Inc.		11,559		565,235
ON Semiconductor Corp.*		33,429		404,825
Cavium, Inc.*		5,100		361,182
Cree, Inc.*,1		10,052		356,745
ARM Holdings plc ADR		7,153		352,643
Microsemi Corp.*		9,671		342,353
Mellanox Technologies Ltd.*		6,526		295,889
Ambarella, Inc.*,1		3,840		290,726
Tower Semiconductor Ltd.*		16,810		285,434
Silicon Laboratories, Inc.*		5,259		266,999
Fairchild Semiconductor International, Inc. — Class A*		14,667		266,646
Monolithic Power Systems, Inc.		4,942		260,196
PMC-Sierra, Inc.*		26,740		248,147
Intersil Corp. — Class A		16,736		239,660
Semtech Corp.*		8,970		239,006
OmniVision Technologies, Inc.*		8,717		229,867
Total Electronic Components - Semiconductor				14,641,949
SEMICONDUCTOR COMPONENTS - INTEGRATED CIRCUIT - 21.3%
Analog Devices, Inc.		13,286		837,018
NXP Semiconductor N.V.*		7,311		733,732
Linear Technology Corp.		12,978		607,370
Taiwan Semiconductor Manufacturing Company Ltd. ADR		25,379		595,899
Maxim Integrated Products, Inc.		16,108		560,719
Marvell Technology Group Ltd.		31,594		464,432
Cypress Semiconductor Corp.		26,547		374,578
Atmel Corp.		39,976		329,002
Integrated Device Technology, Inc.*		15,647		313,253
Siliconware Precision Industries Company Ltd. ADR1		33,610		274,930
Cirrus Logic, Inc.*		7,779		258,730
Himax Technologies, Inc. ADR		40,593		256,954
Power Integrations, Inc.		4,200		218,736
Total Semiconductor Components - Integrated Circuit				5,825,353
SEMICONDUCTOR EQUIPMENT - 12.6%
Applied Materials, Inc.		40,976		924,419
Lam Research Corp.		8,175		574,171
KLA-Tencor Corp.		9,359		545,536
Teradyne, Inc.		19,134		360,676
ASML Holding N.V. — Class G		3,428		346,331
Tessera Technologies, Inc.		6,710		270,279
MKS Instruments, Inc.		7,030		237,684
Veeco Instruments, Inc.*		6,577		200,927
Total Semiconductor Equipment				3,460,023
ENERGY-ALTERNATE SOURCES - 5.8%
SunEdison, Inc.*		19,402		465,648
First Solar, Inc.*		7,549		451,355
JinkoSolar Holding Company Ltd. ADR*,1		13,347		342,217
Trina Solar Ltd. ADR*,1		26,770		323,649
Total Energy-Alternate Sources				1,582,869
POWER CONVERTER/SUPPLY EQUIPMENT - 2.7%
Canadian Solar, Inc.*		11,261		376,004
SunPower Corp. — Class A*,1		11,692		366,077
Total Power Converter/Supply Equipment				742,081
TELECOMMUNICATION SERVICES - 2.3%
Qorvo, Inc.*		7,933		632,260
COMPUTERS-PERIPHERAL EQUIPMENT - 1.1%
Synaptics, Inc.*		3,835		311,805
Total Common Stocks
(Cost $19,808,904)				27,196,340

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
ELECTRONICS FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	245,325	$	245,325
Total Repurchase Agreement
(Cost $245,325)				245,325
SECURITIES LENDING COLLATERAL††,3 - 5.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		923,258		923,258
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		317,601		317,601
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		163,934		163,934
Total Securities Lending Collateral
(Cost $1,404,793)				1,404,793
Total Investments - 105.3%
(Cost $21,459,022)			$	28,846,458
Other Assets & Liabilities, net - (5.3)%				(1,458,770	)
Total Net Assets - 100.0%			$	27,387,688

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — 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 ANNUAL REPORT | 47

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $1,377,165 of securities loaned (cost $19,808,904)	$	27,196,340
Repurchase agreements, at value (cost $1,650,118)		1,650,118
Total investments (cost $21,459,022)		28,846,458
Segregated cash with broker		20,532
Cash		2,080
Receivables:
Fund shares sold		325,848
Securities lending income		7,880
Dividends		7,077
Total assets		29,209,875
Liabilities:
Payable for:
Return of securities loaned		1,425,325
Fund shares redeemed		353,600
Management fees		18,740
Transfer agent and administrative fees		5,512
Distribution and service fees		3,739
Portfolio accounting fees		2,205
Miscellaneous		13,066
Total liabilities		1,822,187
Commitments and contingent liabilities (Note 10)		—
Net assets	$	27,387,688
Net assets consist of:
Paid in capital	$	37,149,248
Undistributed net investment income		42,413
Accumulated net realized loss on investments		(17,191,409	)
Net unrealized appreciation on investments		7,387,436
Net assets	$	27,387,688
Investor Class:
Net assets	$	18,143,531
Capital shares outstanding		217,173
Net asset value per share	$	83.54
Advisor Class:
Net assets	$	6,284,583
Capital shares outstanding		81,976
Net asset value per share	$	76.66
A-Class:
Net assets	$	1,679,567
Capital shares outstanding		21,364
Net asset value per share	$	78.62
Maximum offering price per share (Net asset value divided by 95.25%)	$	82.54
C-Class:
Net assets	$	1,280,007
Capital shares outstanding		17,593
Net asset value per share	$	72.76

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $5,178)	$	383,218
Income from securities lending, net		67,567
Interest		29
Total investment income		450,814
Expenses:
Management fees		221,570
Transfer agent and administrative fees		65,167
Distribution and service fees:
Advisor Class		21,931
A-Class		7,239
C-Class		15,217
Portfolio accounting fees		26,067
Custodian fees		3,050
Trustees’ fees*		1,503
Line of credit fees		293
Miscellaneous		33,950
Total expenses		395,987
Net investment income		54,827
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,156,771	)
Net realized loss		(4,156,771	)
Net change in unrealized appreciation (depreciation) on:
Investments		4,425,744
Net change in unrealized appreciation (depreciation)		4,425,744
Net realized and unrealized gain		268,973
Net increase in net assets resulting from operations	$	323,800

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	54,827		$	(23,668	)
Net realized gain (loss) on investments		(4,156,771	)		690,809
Net change in unrealized appreciation (depreciation) on investments		4,425,744			1,007,719
Net increase in net assets resulting from operations		323,800			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		149,252,908			119,447,698
Advisor Class		34,345,705			29,407,626
A-Class		15,359,168			15,892,309
C-Class		18,220,155			20,348,276
Distributions reinvested
Investor Class		—			1,521
Advisor Class		—			967
A-Class		—			118
C-Class		—			328
Cost of shares redeemed
Investor Class		(140,624,704	)		(113,730,945	)
Advisor Class		(32,080,298	)		(27,385,057	)
A-Class		(18,830,964	)		(11,112,191	)
C-Class		(18,183,162	)		(20,133,392	)
Net increase from capital share transactions		7,458,808			12,737,258
Net increase in net assets		7,782,608			14,409,139
Net assets:
Beginning of year		19,605,080			5,195,941
End of year	$	27,387,688		$	19,605,080
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	42,413		$	(12,414	)
Capital share activity:
Shares sold
Investor Class		1,964,674			1,999,524
Advisor Class		497,436			523,694
A-Class		217,511			274,282
C-Class		277,943			391,550
Shares issued from reinvestment of distributions
Investor Class		—			25
Advisor Class		—			17
A-Class		—			2
C-Class		—			6
Shares redeemed
Investor Class		(1,885,797	)		(1,917,706	)
Advisor Class		(471,009	)		(494,817	)
A-Class		(277,054	)		(199,435	)
C-Class		(277,335	)		(388,980	)
Net increase in shares		46,369			188,162

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	69.82		$	52.11		$	55.09		$	60.57		$	52.33
Income (loss) from investment operations:
Net investment income (loss)a		.29			(.04	)		.22			(.12	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		13.43			17.79			(3.20	)		(5.36	)		8.37
Total from investment operations		13.72			17.75			(2.98	)		(5.48	)		8.24
Less distributions from:
Net investment income		—			(.04	)		—			—			—
Total distributions		—			(.04	)		—			—			—
Net asset value, end of period	$	83.54		$	69.82		$	52.11		$	55.09		$	60.57
Total Returnb		19.65	%		34.07	%		(5.41	%)		(9.05	%)		15.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,144		$	9,655		$	2,942		$	5,453		$	6,976
Ratios to average net assets:
Net investment income (loss)		0.38	%		(0.07	%)		0.45	%		(0.22	%)		(0.23	%)
Total expenses		1.35	%		1.37	%		1.35	%		1.35	%		1.39	%
Portfolio turnover rate		562	%		1,436	%		1,640	%		1,329	%		1,171	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	64.40		$	48.33		$	51.40		$	56.77		$	49.26
Income (loss) from investment operations:
Net investment income (loss)a		.06			(.17	)		(.12	)		(.34	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		12.20			16.28			(2.95	)		(5.03	)		7.92
Total from investment operations		12.26			16.11			(3.07	)		(5.37	)		7.51
Less distributions from:
Net investment income		—			(.04	)		—			—			—
Total distributions		—			(.04	)		—			—			—
Net asset value, end of period	$	76.66		$	64.40		$	48.33		$	51.40		$	56.77
Total Returnb		19.04	%		33.34	%		(5.97	%)		(9.46	%)		15.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,285		$	3,577		$	1,288		$	1,271		$	3,081
Ratios to average net assets:
Net investment income (loss)		0.09	%		(0.29	%)		(0.26	%)		(0.67	%)		(0.79	%)
Total expenses		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		562	%		1,436	%		1,640	%		1,329	%		1,171	%

50 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	65.87		$	49.29		$	52.23		$	57.59		$	49.88
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.33	)		.24			(.19	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		12.92			16.95			(3.18	)		(5.17	)		7.92
Total from investment operations		12.75			16.62			(2.94	)		(5.36	)		7.71
Less distributions from:
Net investment income		—			(.04	)		—			—			—
Total distributions		—			(.04	)		—			—			—
Net asset value, end of period	$	78.62		$	65.87		$	49.29		$	52.23		$	57.59
Total Returnb		19.36	%		33.72	%		(5.63	%)		(9.31	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,680		$	5,329		$	299		$	659		$	1,619
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(0.59	%)		0.51	%		(0.36	%)		(0.43	%)
Total expenses		1.61	%		1.62	%		1.60	%		1.62	%		1.64	%
Portfolio turnover rate		562	%		1,436	%		1,640	%		1,329	%		1,171	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	61.40		$	46.32		$	49.50		$	55.03		$	47.90
Income (loss) from investment operations:
Net investment income (loss)a		(.35	)		(.54	)		(.18	)		(.70	)		(.65	)
Net gain (loss) on investments (realized and unrealized)		11.71			15.66			(3.00	)		(4.83	)		7.78
Total from investment operations		11.36			15.12			(3.18	)		(5.53	)		7.13
Less distributions from:
Net investment income		—			(.04	)		—			—			—
Total distributions		—			(.04	)		—			—			—
Net asset value, end of period	$	72.76		$	61.40		$	46.32		$	49.50		$	55.03
Total Returnb		18.50	%		32.65	%		(6.44	%)		(10.01	%)		14.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,280		$	1,043		$	667		$	263		$	1,246
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		(1.03	%)		(0.41	%)		(1.42	%)		(1.31	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		562	%		1,436	%		1,640	%		1,329	%		1,171	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

ENERGY FUND

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

For the one-year period ended March 31, 2015, Energy Fund Investor Class returned -21.42%, compared with -11.11% for the S&P 500 Energy Index. The broader S&P 500 Index returned 12.73%.

Within the sector, the gas utilities industry was the largest contributor to return, followed by the commercial services & supplies industry. The oil, gas & consumable fuels industry was the largest detractor from return, followed by the energy equipment & services industry.

Kinder Morgan, Inc., Tesoro Corp., and Valero Energy Corp. were among the most significant positive contributors to Fund performance for the period. Holdings detracting most from performance were Transocean Ltd., Seadrill Ltd., and Petroleo Brasileiro S.A. ADR.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 21, 1998
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.	5.3%
Chevron Corp.	4.0%
Schlumberger Ltd.	3.0%
Kinder Morgan, Inc.	2.7%
ConocoPhillips	2.5%
Occidental Petroleum Corp.	2.1%
EOG Resources, Inc.	2.0%
Phillips 66	1.9%
Anadarko Petroleum Corp.	1.8%
Williams Companies, Inc.	1.8%
Top Ten Total	27.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

52 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-21.42%	2.67%	4.61%
Advisor Class Shares	-21.76%	2.16%	4.08%
A-Class Shares	-21.49%	2.42%	4.34%
A-Class Shares with sales charge†	-25.22%	1.42%	3.83%
C-Class Shares	-22.18%	1.64%	3.56%
C-Class Shares with CDSC‡	-22.95%	1.64%	3.56%
S&P 500 Energy Index	-11.11%	8.00%	7.41%
S&P 500 Index	12.73%	14.47%	8.01%

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

THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS	March 31, 2015
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.7%
OIL COMPANY - EXPLORATION & PRODUCTION - 37.4%
ConocoPhillips		18,267	$	1,137,303
Occidental Petroleum Corp.		13,406		978,638
EOG Resources, Inc.		10,187		934,046
Anadarko Petroleum Corp.		10,228		846,981
Devon Energy Corp.		10,845		654,062
Pioneer Natural Resources Co.		3,995		653,222
Apache Corp.		10,345		624,114
Noble Energy, Inc.		11,852		579,563
Hess Corp.		8,382		568,886
Continental Resources, Inc.*		12,582		549,456
Concho Resources, Inc.*		4,301		498,572
Equities Corp.		5,750		476,503
Cabot Oil & Gas Corp. — Class A		15,810		466,869
Cimarex Energy Co.		3,714		427,444
Antero Resources Corp.*		11,650		411,478
Range Resources Corp.		7,850		408,514
Chesapeake Energy Corp.1		28,382		401,889
Southwestern Energy Co.*		17,006		394,369
Newfield Exploration Co.*		9,310		326,688
Encana Corp.		26,874		299,645
Energen Corp.		4,507		297,462
Canadian Natural Resources Ltd.		9,502		291,806
Diamondback Energy, Inc.*		3,790		291,224
Whiting Petroleum Corp.*		8,728		269,695
Cobalt International Energy, Inc.*		28,110		264,515
Memorial Resource Development Corp.*		14,870		263,794
SM Energy Co.		5,099		263,516
Gulfport Energy Corp.*		5,630		258,473
QEP Resources, Inc.		12,062		251,493
Rice Energy, Inc.*		11,230		244,365
California Resources Corp.		31,543		240,042
Laredo Petroleum, Inc.*		18,088		235,868
Talisman Energy, Inc.		30,198		231,921
Denbury Resources, Inc.1		28,548		208,115
Ultra Petroleum Corp.*,1		13,112		204,941
Carrizo Oil & Gas, Inc.*		4,069		202,026
CNOOC Ltd. ADR		1,400		198,548
WPX Energy, Inc.*		18,134		198,205
Oasis Petroleum, Inc.*,1		13,410		190,690
PDC Energy, Inc.*		3,460		186,978
RSP Permian, Inc.*		7,080		178,345
Rosetta Resources, Inc.*		8,680		147,734
Bonanza Creek Energy, Inc.*		5,980		147,467
Sanchez Energy Corp.*,1		9,510		123,725
Stone Energy Corp.*		8,020		117,734
Comstock Resources, Inc.1		14,477		51,683
Total Oil Company - Exploration & Production				17,198,607
OIL COMPANY - INTEGRATED - 16.8%
Exxon Mobil Corp.		28,947		2,460,495
Chevron Corp.		17,528		1,840,089
Marathon Oil Corp.		20,977		547,709
Petroleo Brasileiro S.A. ADR1		79,972		480,632
Royal Dutch Shell plc — Class A ADR		8,017		478,214
BP plc ADR		10,406		406,979
Murphy Oil Corp.		7,929		369,491
Suncor Energy, Inc.		10,431		305,107
Statoil ASA ADR		12,830		225,680
Sasol Ltd. ADR		6,300		214,452
Cenovus Energy, Inc.		12,570		212,182
YPF S.A. ADR		6,780		186,111
Total Oil Company - Integrated				7,727,141
OIL-FIELD SERVICES - 11.7%
Schlumberger Ltd.		16,319		1,361,657
Halliburton Co.		18,866		827,840
Baker Hughes, Inc.		11,036		701,669
Oceaneering International, Inc.		5,957		321,261
Targa Resources Corp.		3,240		310,360
Weatherford International plc*		24,410		300,243
Core Laboratories N.V.1		2,647		276,585
Superior Energy Services, Inc.		11,319		252,866
Exterran Holdings, Inc.		6,354		213,304
Oil States International, Inc.*		4,707		187,197
Bristow Group, Inc.		3,172		172,715
Helix Energy Solutions Group, Inc.*		11,532		172,519
CARBO Ceramics, Inc.1		3,601		109,867
C&J Energy Services Ltd.*		9,565		106,458
Basic Energy Services, Inc.*		11,960		82,883
Total Oil-Field Services				5,397,424
OIL REFINING & MARKETING - 9.6%
Phillips 66		10,919		858,234
Valero Energy Corp.		12,034		765,604
Marathon Petroleum Corp.		6,839		700,245
Cheniere Energy, Inc.*		7,261		562,001
Tesoro Corp.		4,908		448,051
HollyFrontier Corp.		9,035		363,839
Western Refining, Inc.		5,760		284,486
PBF Energy, Inc. — Class A		7,020		238,118
Delek US Holdings, Inc.		5,030		199,943
Total Oil Refining & Marketing				4,420,521
PIPELINES - 8.4%
Kinder Morgan, Inc.		29,696		1,249,014
Williams Companies, Inc.		16,445		831,953
Spectra Energy Corp.		18,260		660,464
ONEOK, Inc.		8,867		427,744
SemGroup Corp. — Class A		3,150		256,221
Enbridge, Inc.		4,770		231,345
TransCanada Corp.		5,270		225,134
Total Pipelines				3,881,875

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
ENERGY FUND

	Shares		Value
OIL & GAS DRILLING - 7.2%
Transocean Ltd.1		31,256	$	458,525
Ensco plc — Class A		18,648		392,913
Nabors Industries Ltd.		27,324		372,973
Helmerich & Payne, Inc.		5,295		360,431
Noble Corporation plc		25,073		358,042
Seadrill Ltd.1		32,405		302,987
Diamond Offshore Drilling, Inc.1		9,161		245,423
Patterson-UTI Energy, Inc.		12,069		226,595
Parsley Energy, Inc. — Class A*		12,520		200,070
Rowan Companies plc — Class A		10,835		191,888
Atwood Oceanics, Inc.		6,250		175,688
Total Oil & Gas Drilling				3,285,535
OIL FIELD MACHINERY & EQUIPMENT - 4.2%
National Oilwell Varco, Inc.		12,053		602,530
Cameron International Corp.*		8,654		390,468
FMC Technologies, Inc.*		10,297		381,092
Dresser-Rand Group, Inc.*		4,040		324,614
Dril-Quip, Inc.*		3,149		215,360
Total Oil Field Machinery & Equipment				1,914,064
TRANSPORT-MARINE - 1.1%
Golar LNG Ltd.1		6,260		208,332
Teekay Corp.		4,240		197,457
Tidewater, Inc.1		5,998		114,802
Total Transport-Marine				520,591
COAL - 1.0%
CONSOL Energy, Inc.		11,976		334,010
Peabody Energy Corp.1		29,266		143,989
Total Coal				477,999
RETAIL-PETROLEUM PRODUCTS - 0.6%
World Fuel Services Corp.		4,680		269,006
STEEL PIPE & TUBE - 0.5%
Tenaris S.A. ADR		8,249		230,972
DIVERSIFIED MINERALS - 0.5%
US Silica Holdings, Inc.1		5,780		205,826
NON-FERROUS METALS - 0.4%
Cameco Corp.		13,004		181,146
ENERGY-ALTERNATE SOURCES - 0.3%
Green Plains, Inc.		4,900		139,895
Total Common Stocks
(Cost $29,431,203)				45,850,602
	Face Amount
REPURCHASE AGREEMENT††,2 - 0.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	233,695		233,695
Total Repurchase Agreement
(Cost $233,695)				233,695
SECURITIES LENDING COLLATERAL††,3 - 4.5%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,354,840		1,354,840
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		466,065		466,065
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		240,565		240,565
Total Securities Lending Collateral
(Cost $2,061,470)				2,061,470
Total Investments - 104.7%
(Cost $31,726,368)			$	48,145,767
Other Assets & Liabilities, net - (4.7)%				(2,145,835	)
Total Net Assets - 100.0%			$	45,999,932

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — 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 ANNUAL REPORT | 55

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,013,020 of securities loaned (cost $29,431,203)	$	45,850,602
Repurchase agreements, at value (cost $2,295,165)		2,295,165
Total investments (cost $31,726,368)		48,145,767
Segregated cash with broker		30,130
Cash		6,193
Receivables:
Fund shares sold		7,068,498
Dividends		24,524
Securities lending income		7,840
Total assets		55,282,952
Liabilities:
Payable for:
Securities purchased		5,890,117
Return of securities loaned		2,091,600
Fund shares redeemed		1,229,755
Management fees		28,631
Distribution and service fees		8,442
Transfer agent and administrative fees		8,421
Portfolio accounting fees		3,368
Miscellaneous		22,686
Total liabilities		9,283,020
Commitments and contingent liabilities (Note 10)		—
Net assets	$	45,999,932
Net assets consist of:
Paid in capital	$	39,403,380
Undistributed net investment income		334,376
Accumulated net realized loss on investments		(10,157,223	)
Net unrealized appreciation on investments		16,419,399
Net assets	$	45,999,932
Investor Class:
Net assets	$	28,123,067
Capital shares outstanding		1,209,890
Net asset value per share	$	23.24
Advisor Class:
Net assets	$	6,452,354
Capital shares outstanding		302,359
Net asset value per share	$	21.34
A-Class:
Net assets	$	4,670,595
Capital shares outstanding		212,875
Net asset value per share	$	21.94
Maximum offering price per share (Net asset value divided by 95.25%)	$	23.03
C-Class:
Net assets	$	6,753,916
Capital shares outstanding		337,980
Net asset value per share	$	19.98

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $18,860)	$	1,270,683
Income from securities lending, net		51,471
Interest		53
Total investment income		1,322,207
Expenses:
Management fees		538,595
Transfer agent and administrative fees		158,410
Distribution and service fees:
Advisor Class		34,422
A-Class		15,536
C-Class		81,628
Portfolio accounting fees		63,363
Custodian fees		7,404
Trustees’ fees*		5,184
Line of credit fees		189
Miscellaneous		84,269
Total expenses		989,000
Net investment income		333,207
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(139,801	)
Net realized loss		(139,801	)
Net change in unrealized appreciation (depreciation) on:
Investments		(9,779,125	)
Net change in unrealized appreciation (depreciation)		(9,779,125	)
Net realized and unrealized loss		(9,918,926	)
Net decrease in net assets resulting from operations	$	(9,585,719	)

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	333,207		$	200,733
Net realized gain (loss) on investments		(139,801	)		14,055,229
Net change in unrealized appreciation (depreciation) on investments		(9,779,125	)		(5,739,014	)
Net increase (decrease) in net assets resulting from operations		(9,585,719	)		8,516,948
Distributions to shareholders from:
Net investment income
Investor Class		(122,605	)		—
Advisor Class		(19,193	)		—
A-Class		(21,643	)		—
C-Class		(37,292	)		—
Total distributions to shareholders		(200,733	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		261,136,749			143,421,747
Advisor Class		75,602,721			9,124,810
A-Class		24,712,863			9,853,780
C-Class		24,858,323			25,870,251
Distributions reinvested
Investor Class		119,147			—
Advisor Class		18,825			—
A-Class		16,607			—
C-Class		35,962			—
Cost of shares redeemed
Investor Class		(263,698,107	)		(163,234,190	)
Advisor Class		(72,212,828	)		(10,093,114	)
A-Class		(25,606,281	)		(9,665,717	)
C-Class		(24,487,521	)		(28,215,805	)
Net increase (decrease) from capital share transactions		496,460			(22,938,238	)
Net decrease in net assets		(9,289,992	)		(14,421,290	)
Net assets:
Beginning of year		55,289,924			69,711,214
End of year	$	45,999,932		$	55,289,924
Undistributed net investment income at end of year	$	334,376		$	200,733
Capital share activity:
Shares sold
Investor Class		8,974,883			5,152,398
Advisor Class		2,974,818			356,398
A-Class		986,870			388,496
C-Class		1,026,731			1,083,634
Shares issued from reinvestment of distributions
Investor Class		4,447			—
Advisor Class		764			—
A-Class		657			—
C-Class		1,548			—
Shares redeemed
Investor Class		(8,966,417	)		(5,837,470	)
Advisor Class		(2,847,072	)		(400,131	)
A-Class		(1,010,592	)		(378,139	)
C-Class		(1,014,166	)		(1,182,490	)
Net increase (decrease) in shares		132,471			(817,304	)

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

ENERGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	29.70		$	26.12		$	24.58		$	28.70		$	20.91
Income (loss) from investment operations:
Net investment income (loss)a		.21			.15			.12			.07			—	b
Net gain (loss) on investments (realized and unrealized)		(6.56	)		3.43			1.89			(4.19	)		7.82
Total from investment operations		(6.35	)		3.58			2.01			(4.12	)		7.82
Less distributions from:
Net investment income		(.11	)		—			(.07	)		—			(.03	)
Return of capital		—			—			(.40	)		—			—
Total distributions		(.11	)		—			(.47	)		—			(.03	)
Net asset value, end of period	$	23.24		$	29.70		$	26.12		$	24.58		$	28.70
Total Returnc		(21.42	%)		13.71	%		8.50	%		(14.39	%)		37.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,123		$	35,546		$	49,160		$	40,947		$	93,648
Ratios to average net assets:
Net investment income (loss)		0.72	%		0.55	%		0.52	%		0.27	%		0.00	%
Total expenses		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		463	%		231	%		248	%		288	%		273	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	27.40		$	24.23		$	22.95		$	26.93		$	19.72
Income (loss) from investment operations:
Net investment income (loss)a		.07			(.02	)		.01			(.08	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(6.02	)		3.19			1.74			(3.90	)		7.35
Total from investment operations		(5.95	)		3.17			1.75			(3.98	)		7.24
Less distributions from:
Net investment income		(.11	)		—			(.07	)		—			(.03	)
Return of capital		—			—			(.40	)		—			—
Total distributions		(.11	)		—			(.47	)		—			(.03	)
Net asset value, end of period	$	21.34		$	27.40		$	24.23		$	22.95		$	26.93
Total Returnc		(21.76	%)		13.08	%		7.92	%		(14.78	%)		36.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,452		$	4,764		$	5,272		$	11,080		$	16,015
Ratios to average net assets:
Net investment income (loss)		0.27	%		(0.09	%)		0.06	%		(0.33	%)		(0.53	%)
Total expenses		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		463	%		231	%		248	%		288	%		273	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	28.07		$	24.76		$	23.38		$	27.40		$	20.01
Income (loss) from investment operations:
Net investment income (loss)a		.12			.08			.08			(.01	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		(6.14	)		3.23			1.77			(4.01	)		7.50
Total from investment operations		(6.02	)		3.31			1.85			(4.02	)		7.42
Less distributions from:
Net investment income		(.11	)		—			(.07	)		—			(.03	)
Return of capital		—			—			(.40	)		—			—
Total distributions		(.11	)		—			(.47	)		—			(.03	)
Net asset value, end of period	$	21.94		$	28.07		$	24.76		$	23.38		$	27.40
Total Returnc		(21.49	%)		13.37	%		8.20	%		(14.67	%)		37.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,671		$	6,624		$	5,586		$	5,622		$	14,752
Ratios to average net assets:
Net investment income (loss)		0.43	%		0.30	%		0.38	%		(0.05	%)		(0.38	%)
Total expenses		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		463	%		231	%		248	%		288	%		273	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	25.80		$	22.93		$	21.85		$	25.78		$	18.97
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		(.12	)		(.09	)		(.19	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		(5.66	)		2.99			1.64			(3.74	)		7.04
Total from investment operations		(5.71	)		2.87			1.55			(3.93	)		6.84
Less distributions from:
Net investment income		(.11	)		—			(.07	)		—			(.03	)
Return of capital		—			—			(.40	)		—			—
Total distributions		(.11	)		—			(.47	)		—			(.03	)
Net asset value, end of period	$	19.98		$	25.80		$	22.93		$	21.85		$	25.78
Total Returnc		(22.18	%)		12.52	%		7.40	%		(15.24	%)		36.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,754		$	8,357		$	9,693		$	13,153		$	19,993
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.52	%)		(0.45	%)		(0.84	%)		(0.99	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		463	%		231	%		248	%		288	%		273	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

ENERGY SERVICES FUND

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

For the one-year period ended March 31, 2015, Energy Services Fund Investor Class returned -36.95%, compared with the S&P 500 Energy Index, which returned -11.11%. The broader S&P 500 Index returned 12.73%.

The diversified support services industry accounted for all of the Fund’s positive return for the period. Detracting from return were the oil & gas equipment & services holdings, followed by the oil & gas drilling industry.

U.S. Silica Holdings, Inc., Dresser-Rank Group, Inc., and Baker Hughes, Inc. were the Fund’s best-performing holdings for the period. The Fund’s worst-performing holdings included Ensco plc — Class A, Seadrill Ltd., and Transocean Ltd.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Schlumberger Ltd.	11.9%
Halliburton Co.	7.2%
Baker Hughes, Inc.	6.1%
National Oilwell Varco, Inc.	5.3%
Transocean Ltd.	3.9%
Cameron International Corp.	3.4%
FMC Technologies, Inc.	3.3%
Helmerich & Payne, Inc.	3.2%
Ensco plc — Class A	2.9%
Dresser-Rand Group, Inc.	2.8%
Top Ten Total	50.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

60 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-36.95%	-1.68%	2.71%
Advisor Class Shares	-37.33%	-2.18%	2.19%
A-Class Shares	-37.11%	-1.92%	2.47%
A-Class Shares with sales charge†	-40.10%	-2.87%	1.97%
C-Class Shares	-37.58%	-2.66%	1.69%
C-Class Shares with CDSC‡	-38.21%	-2.66%	1.69%
S&P 500 Energy Index	-11.11%	8.00%	7.41%
S&P 500 Index	12.73%	14.47%	8.01%

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

THE RYDEX FUNDS ANNUAL REPORT | 61

SCHEDULE OF INVESTMENTS	March 31, 2015
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.4%
OIL-FIELD SERVICES - 48.4%
Schlumberger Ltd.		36,242	$	3,024,031
Halliburton Co.		41,894		1,838,309
Baker Hughes, Inc.		24,515		1,558,664
Oceaneering International, Inc.		13,233		713,656
Superior Energy Services, Inc.		25,142		561,672
Weatherford International plc*		42,640		524,472
RPC, Inc.		39,806		509,915
Core Laboratories N.V.		4,545		474,907
Exterran Holdings, Inc.		14,105		473,505
Oil States International, Inc.*		10,461		416,034
Bristow Group, Inc.		7,046		383,655
Helix Energy Solutions Group, Inc.*		25,614		383,185
SEACOR Holdings, Inc.*		4,734		329,818
Frank’s International N.V.		14,000		261,800
CARBO Ceramics, Inc.1		8,004		244,202
C&J Energy Services Ltd.*		21,238		236,379
Basic Energy Services, Inc.*		26,557		184,040
Gulfmark Offshore, Inc. — Class A		12,578		164,017
Total Oil-Field Services				12,282,261
OIL & GAS DRILLING - 26.0%
Transocean Ltd.1		67,848		995,329
Helmerich & Payne, Inc.		11,751		799,891
Ensco plc — Class A		34,416		725,145
Nabors Industries Ltd.		49,013		669,027
Noble Corporation plc		45,483		649,497
Diamond Offshore Drilling, Inc.1		22,535		603,713
Seadrill Ltd.1		57,042		533,343
Patterson-UTI Energy, Inc.		26,809		503,339
Rowan Companies plc — Class A		24,074		426,351
Atwood Oceanics, Inc.		13,885		390,307
Precision Drilling Corp.		49,890		316,303
Total Oil & Gas Drilling				6,612,245
OIL FIELD MACHINERY & EQUIPMENT - 18.3%
National Oilwell Varco, Inc.		26,769		1,338,181
Cameron International Corp.*		19,222		867,297
FMC Technologies, Inc.*		22,874		846,567
Dresser-Rand Group, Inc.*		8,973		720,981
Dril-Quip, Inc.*		6,989		477,978
Forum Energy Technologies, Inc.*		20,270		397,292
Total Oil Field Machinery & Equipment				4,648,296
TRANSPORT-MARINE - 2.0%
Tidewater, Inc.1		13,319		254,926
Hornbeck Offshore Services, Inc.*		12,710		239,075
Total Transport-Marine				494,001
DIVERSIFIED MINERALS - 1.8%
U.S. Silica Holdings, Inc.1		12,842		457,304
STEEL PIPE & TUBE - 1.5%
Tenaris S.A. ADR		13,471		377,188
OIL COMPANY - EXPLORATION & PRODUCTION - 1.4%
Unit Corp.*		12,758		356,969
Total Common Stocks
(Cost $13,994,257)				25,228,264
	Face Amount
REPURCHASE AGREEMENT††,2 - 0.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	137,735		137,735
Total Repurchase Agreement
(Cost $137,735)				137,735
SECURITIES LENDING COLLATERAL††,3 - 8.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,357,366		1,357,366
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		466,934		466,934
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		241,014		241,014
Total Securities Lending Collateral
(Cost $2,065,314)				2,065,314
Total Investments - 108.0%
(Cost $16,197,306)			$	27,431,313
Other Assets & Liabilities, net - (8.0)%				(2,039,213	)
Total Net Assets - 100.0%			$	25,392,100

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,024,426 of securities loaned (cost $13,994,257)	$	25,228,264
Repurchase agreements, at value (cost $2,203,049)		2,203,049
Total investments (cost $16,197,306)		27,431,313
Segregated cash with broker		30,186
Cash		3,443
Receivables:
Fund shares sold		2,034,521
Dividends		22,136
Securities lending income		10,696
Total assets		29,532,295
Liabilities:
Payable for:
Return of securities loaned		2,095,500
Fund shares redeemed		1,483,589
Securities purchased		514,227
Management fees		18,013
Distribution and service fees		5,496
Transfer agent and administrative fees		5,298
Portfolio accounting fees		2,119
Miscellaneous		15,953
Total liabilities		4,140,195
Commitments and contingent liabilities (Note 10)		—
Net assets	$	25,392,100
Net assets consist of:
Paid in capital	$	48,271,893
Undistributed net investment income		231,483
Accumulated net realized loss on investments		(34,345,283	)
Net unrealized appreciation on investments		11,234,007
Net assets	$	25,392,100
Investor Class:
Net assets	$	16,144,400
Capital shares outstanding		410,166
Net asset value per share	$	39.36
Advisor Class:
Net assets	$	1,813,787
Capital shares outstanding		49,987
Net asset value per share	$	36.29
A-Class:
Net assets	$	3,545,100
Capital shares outstanding		94,981
Net asset value per share	$	37.32
Maximum offering price per share (Net asset value divided by 95.25%)	$	39.18
C-Class:
Net assets	$	3,888,813
Capital shares outstanding		113,442
Net asset value per share	$	34.28

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,579)	$	861,642
Income from securities lending, net		87,618
Interest		33
Total investment income		949,293
Expenses:
Management fees		374,777
Transfer agent and administrative fees		110,228
Distribution and service fees:
Advisor Class		30,842
A-Class		13,437
C-Class		70,278
Portfolio accounting fees		44,091
Custodian fees		5,155
Trustees’ fees*		3,716
Line of credit fees		322
Miscellaneous		59,372
Total expenses		712,218
Net investment income		237,075
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(5,210,662	)
Net realized loss		(5,210,662	)
Net change in unrealized appreciation (depreciation) on:
Investments		(14,210,065	)
Net change in unrealized appreciation (depreciation)		(14,210,065	)
Net realized and unrealized loss		(19,420,727	)
Net decrease in net assets resulting from operations	$	(19,183,652	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	237,075		$	(128,281	)
Net realized gain (loss) on investments		(5,210,662	)		10,172,016
Net change in unrealized appreciation (depreciation) on investments		(14,210,065	)		(4,603,394	)
Net increase (decrease) in net assets resulting from operations		(19,183,652	)		5,440,341
Capital share transactions:
Proceeds from sale of shares
Investor Class		155,300,672			136,799,275
Advisor Class		138,874,968			47,862,323
A-Class		18,229,626			11,403,811
C-Class		22,985,448			25,331,498
Cost of shares redeemed
Investor Class		(160,581,256	)		(132,689,190	)
Advisor Class		(139,441,804	)		(53,070,944	)
A-Class		(20,303,746	)		(10,306,276	)
C-Class		(24,839,035	)		(26,390,621	)
Net decrease from capital share transactions		(9,775,127	)		(1,060,124	)
Net increase (decrease) in net assets		(28,958,779	)		4,380,217
Net assets:
Beginning of year		54,350,879			49,970,662
End of year	$	25,392,100		$	54,350,879
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	231,483		$	(5,592	)
Capital share activity:
Shares sold
Investor Class		2,859,922			2,359,895
Advisor Class		2,915,122			898,924
A-Class		419,738			204,539
C-Class		503,113			497,418
Shares redeemed
Investor Class		(2,982,262	)		(2,306,869	)
Advisor Class		(2,950,353	)		(1,004,649	)
A-Class		(452,109	)		(183,900	)
C-Class		(546,543	)		(519,469	)
Net decrease in shares		(233,372	)		(54,111	)

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	62.43		$	54.43		$	50.87		$	62.66		$	42.83
Income (loss) from investment operations:
Net investment income (loss)a		.48			.02			(.05	)		(.14	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(23.55	)		7.98			3.61			(11.65	)		20.04
Total from investment operations		(23.07	)		8.00			3.56			(11.79	)		19.83
Net asset value, end of period	$	39.36		$	62.43		$	54.43		$	50.87		$	62.66
Total Returnb		(36.95	%)		14.70	%		7.00	%		(18.82	%)		46.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,144		$	33,244		$	26,097		$	34,353		$	151,318
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.03	%		(0.10	%)		(0.25	%)		(0.42	%)
Total expenses		1.36	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		494	%		350	%		275	%		162	%		205	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	57.89		$	50.72		$	47.64		$	58.97		$	40.50
Income (loss) from investment operations:
Net investment income (loss)a		.07			(.27	)		(.25	)		(.34	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		(21.67	)		7.44			3.33			(10.99	)		18.89
Total from investment operations		(21.60	)		7.17			3.08			(11.33	)		18.47
Net asset value, end of period	$	36.29		$	57.89		$	50.72		$	47.64		$	58.97
Total Returnb		(37.33	%)		14.14	%		6.47	%		(19.21	%)		45.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,814		$	4,933		$	9,685		$	8,025		$	17,222
Ratios to average net assets:
Net investment income (loss)		0.13	%		(0.50	%)		(0.54	%)		(0.66	%)		(0.93	%)
Total expenses		1.86	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		494	%		350	%		275	%		162	%		205	%

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	59.34		$	51.86		$	48.59		$	60.01		$	41.12
Income (loss) from investment operations:
Net investment income (loss)a		.25			(.13	)		(.17	)		(.25	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		(22.27	)		7.61			3.44			(11.17	)		19.20
Total from investment operations		(22.02	)		7.48			3.27			(11.42	)		18.89
Net asset value, end of period	$	37.32		$	59.34		$	51.86		$	48.59		$	60.01
Total Returnb		(37.11	%)		14.42	%		6.73	%		(19.03	%)		45.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,545		$	7,557		$	5,535		$	7,115		$	24,849
Ratios to average net assets:
Net investment income (loss)		0.47	%		(0.23	%)		(0.37	%)		(0.47	%)		(0.67	%)
Total expenses		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		494	%		350	%		275	%		162	%		205	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	54.92		$	48.37		$	45.66		$	56.81		$	39.22
Income (loss) from investment operations:
Net investment income (loss)a		(.12	)		(.50	)		(.49	)		(.54	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		(20.52	)		7.05			3.20			(10.61	)		18.19
Total from investment operations		(20.64	)		6.55			2.71			(11.15	)		17.59
Net asset value, end of period	$	34.28		$	54.92		$	48.37		$	45.66		$	56.81
Total Returnb		(37.58	%)		13.54	%		5.94	%		(19.63	%)		44.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,889		$	8,616		$	8,654		$	10,144		$	15,276
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(0.97	%)		(1.11	%)		(1.13	%)		(1.43	%)
Total expenses		2.36	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		494	%		350	%		275	%		162	%		205	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

FINANCIAL SERVICES FUND

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

For the one-year period ended March 31, 2015, Financial Services Fund Investor Class returned 9.17%, while the S&P 500 Financials Index returned 9.96% over the same period. The broader S&P 500 Index returned 12.73%.

The real estate investment trust industry was the largest contributor to return, followed by the insurance industry. The thrifts & mortgage finance industry was the largest detractor from return, followed by the commercial banks industry.

Berkshire Hathaway, Inc. — Class B, Simon Property Group, Inc., and Wells Fargo & Co. were the best-performing holdings in the Fund for the period. The worst-performing holdings for the period were Bank of America Corp., Genworth Financial, Inc. — Class A, and Ocwen Financial Corp.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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	2.5%
Wells Fargo & Co.	2.2%
JPMorgan Chase & Co.	2.0%
Bank of America Corp.	1.7%
Citigroup, Inc.	1.6%
Goldman Sachs Group, Inc.	1.2%
American Express Co.	1.2%
U.S. Bancorp	1.2%
American International Group, Inc.	1.1%
Morgan Stanley	1.1%
Top Ten Total	15.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 67

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	9.17%	9.58%	1.20%
Advisor Class Shares	8.63%	9.04%	0.68%
A-Class Shares	8.89%	9.31%	0.95%
A-Class Shares with sales charge†	3.72%	8.25%	0.46%
C-Class Shares	8.08%	8.51%	0.21%
C-Class Shares with CDSC‡	7.08%	8.51%	0.21%
S&P 500 Financials Index	9.96%	10.53%	0.58%
S&P 500 Index	12.73%	14.47%	8.01%

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

68 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.6%
DIVERSIFIED BANKING INSTITUTIONS - 8.6%
JPMorgan Chase & Co.		18,997	$	1,150,839
Bank of America Corp.		62,801		966,507
Citigroup, Inc.		18,543		955,335
Goldman Sachs Group, Inc.		3,866		726,692
Morgan Stanley		17,994		642,206
HSBC Holdings plc ADR		7,224		307,670
Deutsche Bank AG		7,506		260,683
Total Diversified Banking Institutions				5,009,932
SUPER-REGIONAL BANKS-U.S. - 7.5%
Wells Fargo & Co.		23,606		1,284,166
U.S. Bancorp		15,453		674,833
PNC Financial Services Group, Inc.		5,882		548,438
Capital One Financial Corp.		6,491		511,621
SunTrust Banks, Inc.		8,759		359,907
Fifth Third Bancorp		16,044		302,429
KeyCorp		18,806		266,293
Huntington Bancshares, Inc.		21,013		232,194
Comerica, Inc.		4,954		223,574
Total Super-Regional Banks-U.S.				4,403,455
MULTI-LINE INSURANCE - 6.5%
American International Group, Inc.		12,161		666,301
MetLife, Inc.		11,351		573,793
Allstate Corp.		6,089		433,354
ACE Ltd.		3,542		394,898
Hartford Financial Services Group, Inc.		7,821		327,074
Loews Corp.		7,599		310,267
XL Group plc — Class A		7,997		294,290
Voya Financial, Inc.		5,500		237,105
Cincinnati Financial Corp.		4,417		235,338
Assurant, Inc.		2,650		162,737
Genworth Financial, Inc. — Class A*		20,072		146,726
Total Multi-Line Insurance				3,781,883
INVESTMENT MANAGEMENT/ADVISORY SERVICES - 5.4%
BlackRock, Inc. — Class A		1,560		570,709
Franklin Resources, Inc.		8,368		429,446
Ameriprise Financial, Inc.		2,952		386,240
T. Rowe Price Group, Inc.		4,383		354,935
Invesco Ltd.		7,828		310,693
Affiliated Managers Group, Inc.*		1,283		275,563
Legg Mason, Inc.		3,500		193,200
Eaton Vance Corp.		4,098		170,641
Waddell & Reed Financial, Inc. — Class A		3,196		158,330
Janus Capital Group, Inc.		8,215		141,216
WisdomTree Investments, Inc.		6,169		132,387
Total Investment Management/Advisory Services				3,123,360
REITs-DIVERSIFIED - 5.0%
American Tower Corp. — Class A		5,260		495,230
Crown Castle International Corp.		4,971		410,306
Vornado Realty Trust		3,212		359,744
Weyerhaeuser Co.		9,652		319,964
Digital Realty Trust, Inc.		3,663		241,611
Plum Creek Timber Company, Inc.		5,105		221,812
Duke Realty Corp.		9,819		213,760
Lamar Advertising Co. — Class A		3,100		183,737
Liberty Property Trust		5,130		183,141
EPR Properties		2,500		150,075
Rayonier, Inc.		5,394		145,422
Total REITs-Diversified				2,924,802
COMMERCIAL BANKS-NON-U.S. - 4.7%
Itau Unibanco Holding S.A. ADR		29,691		328,382
ICICI Bank Ltd. ADR		27,956		289,624
Royal Bank of Canada		4,700		283,692
Banco Bradesco S.A. ADR		30,528		283,304
Toronto-Dominion Bank		6,390		273,812
Banco Santander S.A. ADR		35,727		266,166
HDFC Bank Ltd. ADR		4,509		265,535
Credicorp Ltd.		1,870		262,978
Bank of Nova Scotia		4,800		241,104
Bank of Montreal		4,000		239,880
Total Commercial Banks-Non-U.S.				2,734,477
REINSURANCE - 4.6%
Berkshire Hathaway, Inc. — Class B*		10,125		1,461,239
PartnerRe Ltd.		2,470		282,395
Everest Re Group Ltd.		1,565		272,310
Axis Capital Holdings Ltd.		4,820		248,616
RenaissanceRe Holdings Ltd.		2,450		244,339
Reinsurance Group of America, Inc. — Class A		2,190		204,086
Total Reinsurance				2,712,985
REITs-APARTMENTS - 3.8%
Equity Residential		5,337		415,539
AvalonBay Communities, Inc.		2,064		359,652
Essex Property Trust, Inc.		1,301		299,100
UDR, Inc.		6,904		234,943
Camden Property Trust		2,558		199,857
Apartment Investment & Management Co. — Class A		4,940		194,438
Mid-America Apartment Communities, Inc.		2,390		184,675
American Campus Communities, Inc.		4,120		176,624
Home Properties, Inc.		2,300		159,367
Total REITs-Apartments				2,224,195
LIFE/HEALTH INSURANCE - 3.7%
Prudential Financial, Inc.		5,810		466,602
Aflac, Inc.		6,612		423,234
Principal Financial Group, Inc.		5,897		302,929
Lincoln National Corp.		5,240		301,090

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
FINANCIAL SERVICES FUND

	Shares		Value
Manulife Financial Corp.		13,500	$	229,635
Unum Group		6,793		229,128
Torchmark Corp.		3,770		207,048
Total Life/Health Insurance				2,159,666
PROPERTY & CASUALTY INSURANCE - 3.6%
Travelers Companies, Inc.		4,164		450,252
Chubb Corp.		3,630		366,993
Progressive Corp.		11,353		308,802
Arch Capital Group Ltd.*		3,760		231,616
Alleghany Corp.*		470		228,890
WR Berkley Corp.		3,811		192,494
AmTrust Financial Services, Inc.1		3,100		176,654
First American Financial Corp.		4,400		156,992
Total Property & Casualty Insurance				2,112,693
REITs-OFFICE PROPERTY - 3.5%
Boston Properties, Inc.		2,648		371,991
SL Green Realty Corp.		2,243		287,956
American Realty Capital Properties, Inc.		23,391		230,401
Alexandria Real Estate Equities, Inc.		2,170		212,747
Kilroy Realty Corp.		2,600		198,042
BioMed Realty Trust, Inc.		7,510		170,177
Douglas Emmett, Inc.		5,552		165,505
Highwoods Properties, Inc.		3,590		164,350
Brandywine Realty Trust		8,563		136,837
Corporate Office Properties Trust		4,500		132,210
Total REITs-Office Property				2,070,216
REITs-HEALTH CARE - 2.9%
Health Care REIT, Inc.		5,381		416,274
Ventas, Inc.		5,385		393,213
HCP, Inc.		8,301		358,686
Omega Healthcare Investors, Inc.		4,662		189,137
Senior Housing Properties Trust		8,046		178,541
Medical Properties Trust, Inc.		9,300		137,082
Total REITs-Health Care				1,672,933
REITs-REGIONAL MALLS - 2.7%
Simon Property Group, Inc.		3,139		614,114
General Growth Properties, Inc.		13,259		391,803
Macerich Co.		3,252		274,241
Taubman Centers, Inc.		2,290		176,628
Tanger Factory Outlet Centers, Inc.		4,010		141,032
Total REITs-Regional Malls				1,597,818
REITs-SHOPPING CENTERS - 2.7%
Federal Realty Investment Trust		1,788		263,211
Kimco Realty Corp.		9,648		259,049
Brixmor Property Group, Inc.		8,500		225,675
Regency Centers Corp.		3,040		206,842
DDR Corp.		10,857		202,157
Weingarten Realty Investors		4,620		166,228
WP GLIMCHER, Inc.		8,300		138,029
Urban Edge Properties		5,206		123,382
Total REITs-Shopping Centers				1,584,573
FINANCE-INVESTMENT BANKERS/BROKERS - 2.5%
Charles Schwab Corp.		16,031		487,984
TD Ameritrade Holding Corp.		9,359		348,716
E*TRADE Financial Corp.*		8,000		228,440
Raymond James Financial, Inc.		3,912		222,123
LPL Financial Holdings, Inc.		3,500		153,510
Total Finance-Investment Bankers/Brokers				1,440,773
COMMERCIAL BANKS-WESTERN U.S. - 2.2%
First Republic Bank		3,840		219,226
SVB Financial Group*		1,600		203,264
East West Bancorp, Inc.		4,700		190,162
Zions Bancorporation		6,734		181,818
City National Corp.		2,000		178,160
PacWest Bancorp		3,655		171,383
Umpqua Holdings Corp.		8,857		152,163
Total Commercial Banks-Western U.S.				1,296,176
FIDUCIARY BANKS - 2.1%
Bank of New York Mellon Corp.		12,854		517,245
State Street Corp.		5,830		428,680
Northern Trust Corp.		4,392		305,903
Total Fiduciary Banks				1,251,828
FINANCE-OTHER SERVICES - 2.1%
CME Group, Inc. — Class A		4,520		428,089
Intercontinental Exchange, Inc.		1,777		414,521
NASDAQ OMX Group, Inc.		4,454		226,887
CBOE Holdings, Inc.		2,980		171,067
Total Finance-Other Services				1,240,564
REITs-STORAGE - 2.1%
Public Storage		2,418		476,685
Extra Space Storage, Inc.		3,371		227,778
Iron Mountain, Inc.		5,900		215,232
CubeSmart		6,600		159,390
Sovran Self Storage, Inc.		1,600		150,304
Total REITs-Storage				1,229,389
INSURANCE BROKERS - 2.1%
Marsh & McLennan Companies, Inc.		7,502		420,787
Aon plc		3,743		359,777
Willis Group Holdings plc		4,900		236,082
Arthur J Gallagher & Co.		4,538		212,152
Total Insurance Brokers				1,228,798
REITs-HOTELS - 2.1%
Host Hotels & Resorts, Inc.		14,704		296,726
Hospitality Properties Trust		5,400		178,146
LaSalle Hotel Properties		4,230		164,378
RLJ Lodging Trust		5,164		161,685

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
FINANCIAL SERVICES FUND

	Shares		Value
Sunstone Hotel Investors, Inc.		8,722	$	145,396
Strategic Hotels & Resorts, Inc.*		11,600		144,188
DiamondRock Hospitality Co.		9,204		130,053
Total REITs-Hotels				1,220,572
FINANCE-CREDIT CARD - 1.8%
American Express Co.		8,833		690,034
Discover Financial Services		6,752		380,475
Total Finance-Credit Card				1,070,509
FINANCE-CONSUMER LOANS - 1.8%
Synchrony Financial*		12,600		382,410
Navient Corp.		11,070		225,053
Santander Consumer USA Holdings, Inc.		9,500		219,830
SLM Corp.*		16,750		155,440
Ocwen Financial Corp.*,1		9,847		81,238
Total Finance-Consumer Loans				1,063,971
COMMERCIAL SERVICES - FINANCE - 1.7%
McGraw Hill Financial, Inc.		3,920		405,329
Moody’s Corp.		3,489		362,158
SEI Investments Co.		4,904		216,217
Total Commercial Services - Finance				983,704
REITs-MORTGAGE - 1.7%
Annaly Capital Management, Inc.		23,401		243,369
American Capital Agency Corp.		9,981		212,895
Starwood Property Trust, Inc.		7,666		186,284
NorthStar Realty Finance Corp.		9,989		181,001
Two Harbors Investment Corp.		14,517		154,171
Total REITs-Mortgage				977,720
COMMERCIAL BANKS-SOUTHERN U.S. - 1.7%
BB&T Corp.		10,509		409,746
Regions Financial Corp.		28,745		271,640
Synovus Financial Corp.		5,493		153,859
First Horizon National Corp.		9,900		141,471
Total Commercial Banks-Southern U.S.				976,716
REAL ESTATE MANAGEMENT/SERVICES - 1.6%
CBRE Group, Inc. — Class A*		7,718		298,763
Jones Lang LaSalle, Inc.		1,374		234,130
WP Carey, Inc.		3,050		207,400
Realogy Holdings Corp.*		4,470		203,296
Total Real Estate Management/Services				943,589
COMMERCIAL BANKS-EASTERN U.S. - 1.6%
M&T Bank Corp.		2,598		329,946
CIT Group, Inc.		4,971		224,292
Signature Bank*		1,600		207,328
Webster Financial Corp.		4,000		148,200
Total Commercial Banks-Eastern U.S.				909,766
SAVINGS & LOANS/THRIFTS-EASTERN U.S. - 1.5%
New York Community Bancorp, Inc.		12,637		211,417
Hudson City Bancorp, Inc.		17,636		184,825
People’s United Financial, Inc.		11,055		168,036
Investors Bancorp, Inc.		13,670		160,212
First Niagara Financial Group, Inc.		15,370		135,871
Total Savings & Loans/Thrifts-Eastern U.S.				860,361
REITs-SINGLE TENANT - 1.1%
Realty Income Corp.		5,274		272,138
National Retail Properties, Inc.		4,455		182,521
Spirit Realty Capital, Inc.		14,509		175,269
Total REITs-Single Tenant				629,928
FINANCIAL GUARANTEE INSURANCE - 0.9%
Assured Guaranty Ltd.		9,090		239,885
Radian Group, Inc.		8,460		142,043
MGIC Investment Corp.*		14,360		138,287
Total Financial Guarantee Insurance				520,215
REITs-WAREHOUSE/INDUSTRIES - 0.9%
Prologis, Inc.		8,602		374,703
DCT Industrial Trust, Inc.		3,955		137,080
Total REITs-Warehouse/Industries				511,783
COMMERCIAL BANKS-CENTRAL U.S. - 0.7%
Cullen/Frost Bankers, Inc.		2,420		167,174
Prosperity Bancshares, Inc.		2,800		146,944
Texas Capital Bancshares, Inc.*		2,500		121,625
Total Commercial Banks-Central U.S.				435,743
INVESTMENT COMPANIES - 0.6%
Ares Capital Corp.		10,600		182,002
American Capital Ltd.*		10,500		155,295
Total Investment Companies				337,297
FINANCE-AUTO LOANS - 0.4%
Ally Financial, Inc.*		11,800		247,564
DIVERSIFIED OPERATIONS - 0.4%
Leucadia National Corp.		9,617		214,363
FINANCE-MORTGAGE LOAN/BANKER - 0.4%
Home Loan Servicing Solutions Ltd.		12,900		213,366
DECISION SUPPORT SOFTWARE - 0.4%
MSCI, Inc. — Class A		3,361		206,063
Total Common Stocks
(Cost $48,981,939)				58,123,746

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
FINANCIAL SERVICES FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,2 - 0.3%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15	$	124,304	$	124,304
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		42,760		42,760
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		22,072		22,072
Total Securities Lending Collateral
(Cost $189,136)				189,136
Total Investments - 99.9%
(Cost $49,171,075)			$	58,312,882
Other Assets & Liabilities, net - 0.1%				51,267
Total Net Assets - 100.0%			$	58,364,149

*	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 March 31, 2015 — See Note 6.
2	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $187,242 of securities loaned (cost $48,981,939)	$	58,123,746
Repurchase agreements, at value (cost $189,136)		189,136
Total investments (cost $49,171,075)		58,312,882
Cash		2,776
Segregated cash with broker		2,764
Receivables:
Securities sold		1,093,917
Dividends		104,510
Fund shares sold		98,504
Securities lending income		72
Total assets		59,615,425
Liabilities:
Line of credit		557,000
Payable for:
Fund shares redeemed		413,668
Return of securities loaned		191,900
Management fees		42,150
Transfer agent and administrative fees		12,397
Portfolio accounting fees		4,959
Distribution and service fees		3,847
Miscellaneous		25,355
Total liabilities		1,251,276
Commitments and contingent liabilities (Note 10)		—
Net assets	$	58,364,149
Net assets consist of:
Paid in capital	$	53,791,827
Undistributed net investment income		277,758
Accumulated net realized loss on investments		(4,847,243	)
Net unrealized appreciation on investments		9,141,807
Net assets	$	58,364,149
Investor Class:
Net assets	$	49,897,087
Capital shares outstanding		431,753
Net asset value per share	$	115.57
Advisor Class:
Net assets	$	4,478,509
Capital shares outstanding		42,012
Net asset value per share	$	106.60
A-Class:
Net assets	$	2,733,856
Capital shares outstanding		24,932
Net asset value per share	$	109.65
Maximum offering price per share (Net asset value divided by 95.25%)	$	115.12
C-Class:
Net assets	$	1,254,697
Capital shares outstanding		12,512
Net asset value per share	$	100.28

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $2,822)	$	884,332
Income from securities lending, net		1,614
Interest		47
Total investment income		885,993
Expenses:
Management fees		352,283
Transfer agent and administrative fees		103,612
Distribution and service fees:
Advisor Class		30,258
A-Class		8,492
C-Class		14,519
Portfolio accounting fees		41,445
Custodian fees		4,815
Trustees’ fees*		1,997
Line of credit fees		211
Tax expense		85
Miscellaneous		50,518
Total expenses		608,235
Net investment income		277,758
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(151,239	)
Net realized loss		(151,239	)
Net change in unrealized appreciation (depreciation) on:
Investments		2,347,454
Net change in unrealized appreciation (depreciation)		2,347,454
Net realized and unrealized gain		2,196,215
Net increase in net assets resulting from operations	$	2,473,973

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

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	277,758		$	147,974
Net realized gain (loss) on investments		(151,239	)		2,155,894
Net change in unrealized appreciation (depreciation) on investments		2,347,454			512,726
Net increase in net assets resulting from operations		2,473,973			2,816,594
Distributions to shareholders from:
Net investment income
Investor Class		(124,825	)		(79,512	)
Advisor Class		(15,302	)		(17,906	)
A-Class		(5,719	)		(40,320	)
C-Class		(3,673	)		(7,809	)
Total distributions to shareholders		(149,519	)		(145,547	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		142,998,248			87,025,488
Advisor Class		21,042,008			9,891,676
A-Class		16,301,408			16,249,371
C-Class		22,259,319			21,219,453
Distributions reinvested
Investor Class		50,229			78,044
Advisor Class		15,281			17,860
A-Class		4,742			35,520
C-Class		3,317			7,710
Cost of shares redeemed
Investor Class		(112,502,368	)		(87,847,468	)
Advisor Class		(21,680,719	)		(12,957,819	)
A-Class		(21,300,899	)		(10,980,642	)
C-Class		(22,171,252	)		(21,766,316	)
Net increase from capital share transactions		25,019,314			972,877
Net increase in net assets		27,343,768			3,643,924
Net assets:
Beginning of year		31,020,381			27,376,457
End of year	$	58,364,149		$	31,020,381
Undistributed net investment income at end of year	$	277,758		$	149,519
Capital share activity:
Shares sold
Investor Class		1,279,802			880,833
Advisor Class		203,091			107,616
A-Class		151,873			170,038
C-Class		231,403			243,282
Shares issued from reinvestment of distributions
Investor Class		443			774
Advisor Class		146			191
A-Class		44			370
C-Class		34			87
Shares redeemed
Investor Class		(1,015,205	)		(902,467	)
Advisor Class		(207,816	)		(145,268	)
A-Class		(203,251	)		(115,259	)
C-Class		(230,221	)		(250,011	)
Net increase (decrease) in shares		210,343			(9,814	)

74 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	106.10		$	90.67		$	78.47		$	81.18		$	75.23
Income (loss) from investment operations:
Net investment income (loss)a		.92			.78			.76			.61			.15
Net gain (loss) on investments (realized and unrealized)		8.81			15.21			11.99			(3.29	)		6.75
Total from investment operations		9.73			15.99			12.75			(2.68	)		6.90
Less distributions from:
Net investment income		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Total distributions		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Net asset value, end of period	$	115.57		$	106.10		$	90.67		$	78.47		$	81.18
Total Returnb		9.17	%		17.67	%		16.37	%		(3.31	%)		9.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49,897		$	17,688		$	17,007		$	19,973		$	4,885
Ratios to average net assets:
Net investment income (loss)		0.82	%		0.81	%		0.95	%		0.86	%		0.19	%
Total expenses		1.34	%		1.37	%		1.36	%		1.34	%		1.39	%
Portfolio turnover rate		326	%		414	%		590	%		970	%		601	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	98.37		$	84.51		$	73.53		$	76.47		$	71.29
Income (loss) from investment operations:
Net investment income (loss)a		.29			.24			.22			.26			(.14	)
Net gain (loss) on investments (realized and unrealized)		8.20			14.18			11.31			(3.17	)		6.27
Total from investment operations		8.49			14.42			11.53			(2.91	)		6.13
Less distributions from:
Net investment income		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Total distributions		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Net asset value, end of period	$	106.60		$	98.37		$	84.51		$	73.53		$	76.47
Total Returnb		8.63	%		17.10	%		15.80	%		(3.80	%)		8.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,479		$	4,583		$	7,103		$	4,243		$	3,634
Ratios to average net assets:
Net investment income (loss)		0.28	%		0.26	%		0.29	%		0.37	%		(0.20	%)
Total expenses		1.85	%		1.87	%		1.85	%		1.85	%		1.89	%
Portfolio turnover rate		326	%		414	%		590	%		970	%		601	%

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	100.94		$	86.48		$	75.07		$	77.87		$	72.38
Income (loss) from investment operations:
Net investment income (loss)a		.43			.58			.51			.45			(.01	)
Net gain (loss) on investments (realized and unrealized)		8.54			14.44			11.45			(3.22	)		6.45
Total from investment operations		8.97			15.02			11.96			(2.77	)		6.44
Less distributions from:
Net investment income		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Total distributions		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Net asset value, end of period	$	109.65		$	100.94		$	86.48		$	75.07		$	77.87
Total Returnb		8.89	%		17.41	%		16.06	%		(3.57	%)		9.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,734		$	7,698		$	1,826		$	632		$	1,782
Ratios to average net assets:
Net investment income (loss)		0.41	%		0.62	%		0.66	%		0.64	%		(0.01	%)
Total expenses		1.59	%		1.62	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		326	%		414	%		590	%		970	%		601	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	93.02		$	80.30		$	70.26		$	73.42		$	68.79
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.16	)		.03			(.12	)		(.49	)
Net gain (loss) on investments (realized and unrealized)		7.74			13.44			10.56			(3.01	)		6.07
Total from investment operations		7.52			13.28			10.59			(3.13	)		5.58
Less distributions from:
Net investment income		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Total distributions		(.26	)		(.56	)		(.55	)		(.03	)		(.95	)
Net asset value, end of period	$	100.28		$	93.02		$	80.30		$	70.26		$	73.42
Total Returnb		8.08	%		16.58	%		15.21	%		(4.27	%)		8.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,255		$	1,051		$	1,440		$	817		$	1,114
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.18	%)		0.04	%		(0.18	%)		(0.72	%)
Total expenses		2.35	%		2.37	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		326	%		414	%		590	%		970	%		601	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

HEALTH CARE FUND

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

For the one-year period ended March 31, 2015, Health Care Fund Investor Class returned 30.51%, compared with a return of 26.19% for the S&P 500 Health Care Index. The broader S&P 500 Index returned 12.73%.

The biggest contributor to Fund performance was biotechnology, followed by pharmaceuticals. The health care technology segment was the largest detractor from return, followed by the electronic equipment instruments & components segment.

The Fund’s top-performing holdings were Allergan, Inc., Celgene Corp., and Gilead Sciences, Inc. The worst-performing holdings in the Fund included athenahealth, Inc., Theravance, Inc., and MannKind Corp.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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	2.9%
Pfizer, Inc.	2.6%
Merck & Company, Inc.	2.2%
Gilead Sciences, Inc.	2.1%
Medtronic plc	2.0%
Amgen, Inc.	1.9%
UnitedHealth Group, Inc.	1.8%
Bristol-Myers Squibb Co.	1.8%
Biogen, Inc.	1.7%
AbbVie, Inc.	1.7%
Top Ten Total	20.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 77

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	30.51%	19.50%	11.73%
Advisor Class Shares	29.89%	18.96%	11.19%
A-Class Shares	30.21%	19.23%	11.47%
A-Class Shares with sales charge†	24.04%	18.08%	10.93%
C-Class Shares	29.21%	18.39%	10.63%
C-Class Shares with CDSC‡	28.21%	18.39%	10.63%
S&P 500 Health Care Index	26.19%	20.09%	11.41%
S&P 500 Index	12.73%	14.47%	8.01%

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

78 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.1%
MEDICAL-DRUGS - 26.3%
Johnson & Johnson		77,006	$	7,746,803
Pfizer, Inc.		196,537		6,837,521
Merck & Company, Inc.		103,520		5,950,329
Bristol-Myers Squibb Co.		72,546		4,679,217
AbbVie, Inc.		76,164		4,458,641
Eli Lilly & Co.		58,065		4,218,422
Abbott Laboratories		82,375		3,816,434
Valeant Pharmaceuticals International, Inc.*		18,844		3,742,795
Endo International plc*		27,158		2,436,073
Zoetis, Inc.		48,090		2,226,086
Novartis AG ADR		19,851		1,957,507
Shire plc ADR		8,172		1,955,478
Mallinckrodt plc*		14,144		1,791,338
OPKO Health, Inc.*,1		125,880		1,783,720
Jazz Pharmaceuticals plc*		9,800		1,693,342
GlaxoSmithKline plc ADR		36,497		1,684,337
AstraZeneca plc ADR		24,088		1,648,342
Novo Nordisk A/S ADR		30,300		1,617,717
Alkermes plc*		25,672		1,565,222
Salix Pharmaceuticals Ltd.*		8,986		1,552,871
Quintiles Transnational Holdings, Inc.*		20,139		1,348,709
Receptos, Inc.*		6,800		1,121,252
Akorn, Inc.*		22,835		1,084,891
ACADIA Pharmaceuticals, Inc.*		24,685		804,484
Pacira Pharmaceuticals, Inc.*		8,900		790,765
Lannett Company, Inc.*		11,000		744,810
Clovis Oncology, Inc.*		9,355		694,422
Total Medical-Drugs				69,951,528
MEDICAL-BIOMEDICAL/GENETICS - 21.6%
Gilead Sciences, Inc.*		56,315		5,526,190
Amgen, Inc.		31,070		4,966,539
Biogen, Inc.*		10,938		4,618,461
Celgene Corp.*		37,643		4,339,485
Theravance, Inc.1		215,100		3,381,372
Regeneron Pharmaceuticals, Inc.*		6,874		3,103,474
Alexion Pharmaceuticals, Inc.*		15,691		2,719,250
Vertex Pharmaceuticals, Inc.*		20,105		2,371,787
Illumina, Inc.*		12,414		2,304,535
BioMarin Pharmaceutical, Inc.*		16,632		2,072,680
Incyte Corp.*		20,127		1,844,841
Medivation, Inc.*		11,448		1,477,593
Alnylam Pharmaceuticals, Inc.*		12,445		1,299,507
United Therapeutics Corp.*		7,356		1,268,432
Puma Biotechnology, Inc.*		5,200		1,227,772
Isis Pharmaceuticals, Inc.*		18,871		1,201,517
Juno Therapeutics, Inc.*,1		18,900		1,146,474
Intercept Pharmaceuticals, Inc.*,1		4,000		1,128,080
Intrexon Corp.*		22,100		1,002,677
Seattle Genetics, Inc.*,1		26,133		923,802
Bluebird Bio, Inc.*		7,500		905,775
Charles River Laboratories International, Inc.*		11,185		886,859
Myriad Genetics, Inc.*,1		23,700		838,980
Exact Sciences Corp.*,1		37,300		821,346
Synageva BioPharma Corp.*		8,400		819,252
Celldex Therapeutics, Inc.*		25,600		713,472
Kite Pharma, Inc.*,1		12,300		709,464
Medicines Co.*		21,900		613,638
Novavax, Inc.*		74,200		613,634
ARIAD Pharmaceuticals, Inc.*		67,900		559,496
Acorda Therapeutics, Inc.*		16,500		549,120
PDL BioPharma, Inc.		71,141		500,477
Achillion Pharmaceuticals, Inc.*		48,200		475,252
ZIOPHARM Oncology, Inc.*,1		43,700		470,649
Total Medical-Biomedical/Genetics				57,401,882
MEDICAL-HMO - 7.5%
UnitedHealth Group, Inc.		41,455		4,903,711
Anthem, Inc.		19,384		2,993,083
Aetna, Inc.		26,537		2,826,987
Cigna Corp.		21,180		2,741,539
Humana, Inc.		13,442		2,392,945
Centene Corp.*		19,320		1,365,731
Health Net, Inc.*		16,696		1,009,941
WellCare Health Plans, Inc.*		10,100		923,746
Molina Healthcare, Inc.*		13,126		883,249
Total Medical-HMO				20,040,932
MEDICAL PRODUCTS - 7.2%
Baxter International, Inc.		41,397		2,835,695
Stryker Corp.		29,680		2,737,980
Becton Dickinson and Co.		17,234		2,474,630
Zimmer Holdings, Inc.		17,651		2,074,346
Henry Schein, Inc.*		11,390		1,590,272
Varian Medical Systems, Inc.*		15,137		1,424,240
Cooper Companies, Inc.		7,470		1,400,027
Sirona Dental Systems, Inc.*		11,922		1,072,861
Teleflex, Inc.		8,680		1,048,804
West Pharmaceutical Services, Inc.		16,500		993,465
ABIOMED, Inc.*		12,100		866,118
Wright Medical Group, Inc.*		20,300		523,740
Total Medical Products				19,042,178
MEDICAL INSTRUMENTS - 5.6%
Medtronic plc		67,304		5,249,038
Boston Scientific Corp.*		127,764		2,267,811
Intuitive Surgical, Inc.*		3,918		1,978,708
St. Jude Medical, Inc.		29,938		1,957,945
Edwards Lifesciences Corp.*		12,034		1,714,364
DexCom, Inc.*		16,100		1,003,674
Thoratec Corp.*		16,600		695,374
Total Medical Instruments				14,866,914

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
HEALTH CARE FUND

	Shares		Value
MEDICAL-GENERIC DRUGS - 5.2%
Actavis plc*		14,099	$	4,196,237
Mylan N.V.*		41,252		2,448,306
Teva Pharmaceutical Industries Ltd. ADR		37,167		2,315,504
Perrigo Company plc		13,194		2,184,267
Hospira, Inc.*		20,653		1,814,160
Impax Laboratories, Inc.*		18,400		862,408
Total Medical-Generic Drugs				13,820,882
MEDICAL - WHOLESALE DRUG DISTRIBUTION - 3.1%
McKesson Corp.		14,807		3,349,343
Cardinal Health, Inc.		28,032		2,530,449
AmerisourceBergen Corp. — Class A		20,560		2,337,055
Total Medical - Wholesale Drug Distribution				8,216,847
MEDICAL-HOSPITALS - 2.7%
HCA Holdings, Inc.*		35,217		2,649,375
Universal Health Services, Inc. — Class B		13,576		1,598,031
Community Health Systems, Inc.*		22,185		1,159,832
Tenet Healthcare Corp.*		20,800		1,029,808
LifePoint Hospitals, Inc.*		11,341		832,996
Total Medical-Hospitals				7,270,042
THERAPEUTICS - 2.6%
MannKind Corp.*,1		624,500		3,247,400
Pharmacyclics, Inc.*		8,100		2,073,195
Agios Pharmaceuticals, Inc.*		8,800		829,840
Neurocrine Biosciences, Inc.*		20,700		821,997
Total Therapeutics				6,972,432
PHARMACY SERVICES - 2.6%
Express Scripts Holding Co.*		43,096		3,739,439
Catamaran Corp.*		29,990		1,785,605
Omnicare, Inc.		16,579		1,277,578
Total Pharmacy Services				6,802,622
INSTRUMENTS-SCIENTIFIC - 2.3%
Thermo Fisher Scientific, Inc.		24,979		3,355,678
Waters Corp.*		11,897		1,479,035
PerkinElmer, Inc.		22,423		1,146,712
Total Instruments-Scientific				5,981,425
MEDICAL INFORMATION SYSTEM - 1.5%
Cerner Corp.*		32,144		2,354,870
athenahealth, Inc.*		8,180		976,610
Allscripts Healthcare Solutions, Inc.*		58,000		693,680
Total Medical Information System				4,025,160
MEDICAL LABS & TESTING SERVICES - 1.2%
Laboratory Corporation of America Holdings*		13,163		1,659,695
Quest Diagnostics, Inc.		20,644		1,586,491
Total Medical Labs & Testing Services				3,246,186
DENTAL SUPPLIES & EQUIPMENTS - 1.2%
DENTSPLY International, Inc.		24,483		1,245,941
Patterson Companies, Inc.		21,227		1,035,665
Align Technology, Inc.*		17,654		949,520
Total Dental Supplies & Equipments				3,231,126
PHYSICAL PRACTICE MANAGEMENT - 0.9%
Envision Healthcare Holdings, Inc.*		32,900		1,261,715
MEDNAX, Inc.*		17,006		1,233,105
Total Physical Practice Management				2,494,820
DIALYSIS CENTERS - 0.7%
DaVita HealthCare Partners, Inc.*		24,031		1,953,240
ELECTRONIC MEASURING INSTRUMENTS - 0.7%
Agilent Technologies, Inc.		41,483		1,723,619
DISPOSABLE MEDICAL PRODUCTS - 0.6%
CR Bard, Inc.		9,818		1,643,042
RESPIRATORY PRODUCTS - 0.6%
ResMed, Inc.		20,362		1,461,584
X-RAY EQUIPMENT - 0.5%
Hologic, Inc.*		43,310		1,430,313
INSTRUMENTS-CONTROLS - 0.5%
Mettler-Toledo International, Inc.*		4,350		1,429,628
DIAGNOSTIC KITS - 0.5%
IDEXX Laboratories, Inc.*		8,127		1,255,459
RETIREMENT/AGED CARE - 0.5%
Brookdale Senior Living, Inc. — Class A*		32,331		1,220,819
VETERINARY DIAGNOSTICS - 0.4%
VCA, Inc.*		18,305		1,003,480
MEDICAL STERILIZER PRODUCTS - 0.4%
STERIS Corp.		13,700		962,699
HUMAN RESOURCES - 0.4%
Team Health Holdings, Inc.*		16,400		959,564
PHYSICAL THERAPY/REHAB CENTERS - 0.4%
HealthSouth Corp.		21,100		935,996

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
HEALTH CARE FUND

	Shares		Value
DIVERSIFIED OPERATIONS - 0.3%
Horizon Pharma plc*		35,400	$	919,338
DIAGNOSTIC EQUIPMENT - 0.3%
Cepheid*		16,157		919,333
RESEARCH & DEVELOPMENT - 0.3%
PAREXEL International Corp.*		13,300		917,567
MEDICAL-OUTPATIENT/HOME MEDICINE - 0.3%
Amsurg Corp. — Class A*		13,100		805,912
MEDICAL-NURSING HOMES - 0.2%
Kindred Healthcare, Inc.		26,500		630,435
Total Common Stocks
(Cost $185,862,951)				263,537,004

	Face Amount
REPURCHASE AGREEMENT††,2 - 0.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,089,890		1,089,890
Total Repurchase Agreement
(Cost $1,089,890)				1,089,890
SECURITIES LENDING COLLATERAL††,3 - 4.4%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		7,608,349		7,608,349
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		2,617,272		2,617,272
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,350,939		1,350,939
Total Securities Lending Collateral
(Cost $11,576,560)				11,576,560
Total Investments - 103.9%
(Cost $198,529,401)			$	276,203,454
Other Assets & Liabilities, net - (3.9)%				(10,416,720	)
Total Net Assets - 100.0%			$	265,786,734

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — 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 ANNUAL REPORT | 81

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $10,954,785 of securities loaned (cost $185,862,951)	$	263,537,004
Repurchase agreements, at value (cost $12,666,450)		12,666,450
Total investments (cost $198,529,401)		276,203,454
Segregated cash with broker		169,200
Cash		18,971
Receivables:
Fund shares sold		2,035,277
Dividends		218,778
Securities lending income		30,784
Total assets		278,676,464
Liabilities:
Payable for:
Return of securities loaned		11,745,759
Fund shares redeemed		741,493
Management fees		189,416
Transfer agent and administrative fees		55,711
Distribution and service fees		37,217
Portfolio accounting fees		21,850
Miscellaneous		98,284
Total liabilities		12,889,730
Commitments and contingent liabilities (Note 10)		—
Net assets	$	265,786,734
Net assets consist of:
Paid in capital	$	192,785,494
Undistributed net investment income		—
Accumulated net realized loss on investments		(4,672,813	)
Net unrealized appreciation on investments		77,674,053
Net assets	$	265,786,734
Investor Class:
Net assets	$	175,397,190
Capital shares outstanding		4,894,858
Net asset value per share	$	35.83
Advisor Class:
Net assets	$	50,134,590
Capital shares outstanding		1,532,736
Net asset value per share	$	32.71
A-Class:
Net assets	$	28,703,656
Capital shares outstanding		854,356
Net asset value per share	$	33.60
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.28
C-Class:
Net assets	$	11,551,298
Capital shares outstanding		374,755
Net asset value per share	$	30.82

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	1,748,487
Income from securities lending, net		189,515
Interest		195
Total investment income		1,938,197
Expenses:
Management fees		1,486,151
Transfer agent and administrative fees		437,102
Distribution and service fees:
Advisor Class		195,757
A-Class		38,221
C-Class		92,354
Portfolio accounting fees		174,319
Custodian fees		20,349
Trustees’ fees*		9,986
Tax expense		1,187
Line of credit fees		248
Miscellaneous		215,535
Total expenses		2,671,209
Net investment loss		(733,012	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,068,372
Net realized gain		8,068,372
Net change in unrealized appreciation (depreciation) on:
Investments		40,282,429
Net change in unrealized appreciation (depreciation)		40,282,429
Net realized and unrealized gain		48,350,801
Net increase in net assets resulting from operations	$	47,617,789

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(733,012	)	$	(254,146	)
Net realized gain on investments		8,068,372			20,336,238
Net change in unrealized appreciation (depreciation) on investments		40,282,429			7,106,133
Net increase in net assets resulting from operations		47,617,789			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		(1,752,480	)		(3,786,592	)
Advisor Class		(465,325	)		(317,778	)
A-Class		(250,757	)		(326,428	)
C-Class		(125,703	)		(332,239	)
Total distributions to shareholders		(2,594,265	)		(4,876,318	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		349,067,609			324,677,607
Advisor Class		141,454,376			76,308,656
A-Class		42,834,467			20,247,591
C-Class		27,276,806			33,842,495
Distributions reinvested
Investor Class		1,343,589			3,851,003
Advisor Class		464,580			323,914
A-Class		203,075			330,789
C-Class		120,158			328,744
Cost of shares redeemed
Investor Class		(302,007,365	)		(354,047,641	)
Advisor Class		(139,767,422	)		(42,786,393	)
A-Class		(26,627,112	)		(17,317,347	)
C-Class		(25,514,379	)		(32,535,770	)
Net increase from capital share transactions		68,848,382			13,223,648
Net increase in net assets		113,871,906			35,535,555
Net assets:
Beginning of year		151,914,828			116,379,273
End of year	$	265,786,734		$	151,914,828
Undistributed net investment income at end of year	$	—		$	—

 

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Year Ended March 31, 2015		Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class	11,255,406		12,765,655
Advisor Class	4,878,949		3,036,456
A-Class	1,476,215		823,789
C-Class	1,010,754		1,521,467
Shares issued from reinvestment of distributions
Investor Class	41,909		148,573
Advisor Class	15,845		13,587
A-Class	6,749		13,557
C-Class	4,361		14,527
Shares redeemed
Investor Class	(9,940,130	)	(14,053,114	)
Advisor Class	(4,871,552	)	(1,714,436	)
A-Class	(931,513	)	(707,448	)
C-Class	(943,291	)	(1,464,775	)
Net increase in shares	2,003,702		397,838

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	27.76		$	22.35		$	18.83		$	17.14		$	15.80
Income (loss) from investment operations:
Net investment income (loss)a		(.07	)		(.03	)		.09			.01			(.02	)
Net gain (loss) on investments (realized and unrealized)		8.50			7.00			3.48			1.68			1.36
Total from investment operations		8.43			6.97			3.57			1.69			1.34
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—
Net realized gains		(.36	)		(1.53	)		—			—			—
Total distributions		(.36	)		(1.56	)		(.05	)		—			—
Net asset value, end of period	$	35.83		$	27.76		$	22.35		$	18.83		$	17.14
Total Returnb		30.51	%		31.70	%		18.98	%		9.86	%		8.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	175,397		$	98,209		$	104,525		$	39,036		$	19,534
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.12	%)		0.45	%		0.08	%		(0.10	%)
Total expenses		1.34	%		1.37	%		1.35	%		1.36	%		1.38	%
Portfolio turnover rate		176	%		277	%		266	%		582	%		619	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	25.49		$	20.73		$	17.55		$	16.04		$	14.85
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.15	)		(.06	)		(.07	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		7.79			6.47			3.29			1.58			1.24
Total from investment operations		7.58			6.32			3.23			1.51			1.19
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—
Net realized gains		(.36	)		(1.53	)		—			—			—
Total distributions		(.36	)		(1.56	)		(.05	)		—			—
Net asset value, end of period	$	32.71		$	25.49		$	20.73		$	17.55		$	16.04
Total Returnb		29.89	%		31.03	%		18.43	%		9.41	%		8.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	50,135		$	38,480		$	3,605		$	4,275		$	2,229
Ratios to average net assets:
Net investment income (loss)		(0.73	%)		(0.62	%)		(0.31	%)		(0.44	%)		(0.36	%)
Total expenses		1.85	%		1.87	%		1.86	%		1.85	%		1.88	%
Portfolio turnover rate		176	%		277	%		266	%		582	%		619	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	26.11		$	21.15		$	17.87		$	16.30		$	15.05
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		(.09	)		.04			(.02	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		7.99			6.61			3.29			1.59			1.27
Total from investment operations		7.85			6.52			3.33			1.57			1.25
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—
Net realized gains		(.36	)		(1.53	)		—			—			—
Total distributions		(.36	)		(1.56	)		(.05	)		—			—
Net asset value, end of period	$	33.60		$	26.11		$	21.15		$	17.87		$	16.30
Total Returnb		30.21	%		31.36	%		18.65	%		9.63	%		8.31	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,704		$	7,909		$	3,660		$	2,964		$	1,156
Ratios to average net assets:
Net investment income (loss)		(0.47	%)		(0.37	%)		0.20	%		(0.13	%)		(0.14	%)
Total expenses		1.59	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		176	%		277	%		266	%		582	%		619	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	24.16		$	19.81		$	16.86		$	15.50		$	14.39
Income (loss) from investment operations:
Net investment income (loss)a		(.33	)		(.26	)		(.09	)		(.14	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		7.35			6.17			3.09			1.50			1.22
Total from investment operations		7.02			5.91			3.00			1.36			1.11
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—
Net realized gains		(.36	)		(1.53	)		—			—			—
Total distributions		(.36	)		(1.56	)		(.05	)		—			—
Net asset value, end of period	$	30.82		$	24.16		$	19.81		$	16.86		$	15.50
Total Returnb		29.21	%		30.38	%		17.81	%		8.77	%		7.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,551		$	7,318		$	4,589		$	3,468		$	3,870
Ratios to average net assets:
Net investment income (loss)		(1.24	%)		(1.14	%)		(0.53	%)		(0.91	%)		(0.76	%)
Total expenses		2.34	%		2.37	%		2.35	%		2.36	%		2.38	%
Portfolio turnover rate		176	%		277	%		266	%		582	%		619	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INTERNET FUND

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

For the one-year period ended March 31, 2015, Internet Fund Investor Class returned 6.40%, compared with 18.11% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 12.73%.

The internet & catalog retail segment was the largest contributor to return, followed by the communications equipment segment. Contributing least to return was the diversified telecommunication services segment. The only detractor from return was the health care technology segment.

Facebook, Inc. — Class A, Cisco Systems, Inc., and Time Warner, Inc. added the most to Fund performance for the period. Youku Tudou, Inc. ADR, Qihoo 360 Technology Company Ltd. ADR, and Alibaba Group Holding Ltd. ADR detracted most from Fund performance for the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 6, 2000
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	5.1%
Amazon.com, Inc.	4.2%
Cisco Systems, Inc.	3.8%
QUALCOMM, Inc.	3.4%
Google, Inc. — Class A	3.1%
Google, Inc. — Class C	3.1%
Time Warner, Inc.	2.7%
eBay, Inc.	2.7%
Priceline Group, Inc.	2.5%
salesforce.com, Inc.	2.1%
Top Ten Total	32.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 87

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	6.40%	14.54%	10.07%
Advisor Class Shares	5.80%	13.96%	9.52%
A-Class Shares	6.12%	14.26%	9.80%
A-Class Shares with sales charge†	1.08%	13.15%	9.26%
C-Class Shares	5.34%	13.39%	8.98%
C-Class Shares with CDSC‡	4.34%	13.39%	8.98%
S&P 500 Information Technology Index	18.11%	14.55%	9.77%
S&P 500 Index	12.73%	14.47%	8.01%

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

88 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.4%
E-COMMERCE/SERVICES - 14.1%
Priceline Group, Inc.*		320	$	372,527
Netflix, Inc.*		575		239,597
Liberty Ventures*		5,504		231,223
Expedia, Inc.		1,736		163,410
TripAdvisor, Inc.*		1,961		163,096
IAC/InterActiveCorp		1,680		113,350
Zillow Group, Inc. — Class A*		1,108		111,132
Ctrip.com International Ltd. ADR*		1,836		107,626
Groupon, Inc. — Class A*		13,912		100,306
GrubHub, Inc.*		2,020		91,688
SouFun Holdings Ltd. ADR		13,294		79,764
58.com, Inc. ADR*		1,480		78,262
Bitauto Holdings Ltd. ADR*		1,534		78,050
Autohome, Inc. ADR*		1,650		72,551
Orbitz Worldwide, Inc.*		4,610		53,753
Total E-Commerce/Services				2,056,335
E-COMMERCE/PRODUCTS - 10.6%
Amazon.com, Inc.*		1,665		619,547
eBay, Inc.*		6,741		388,821
Alibaba Group Holding Ltd. ADR*		1,810		150,664
JD.com, Inc. ADR*		3,250		95,485
Vipshop Holdings Ltd. ADR*		3,193		94,002
MercadoLibre, Inc.		583		71,429
zulily, Inc. — Class A*		4,714		61,235
Shutterfly, Inc.*		1,342		60,712
Total E-Commerce/Products				1,541,895
WEB PORTALS/ISP - 10.4%
Google, Inc. — Class A*		822		455,963
Google, Inc. — Class C*		832		455,936
Yahoo!, Inc.*		6,918		307,401
Baidu, Inc. ADR*		679		141,504
AOL, Inc.*		2,121		84,013
SINA Corp.*		2,155		69,305
Total Web Portals/ISP				1,514,122
INTERNET CONTENT-ENTERTAINMENT - 8.5%
Facebook, Inc. — Class A*		9,005		740,346
Twitter, Inc.*		5,623		281,600
Pandora Media, Inc.*		5,648		91,554
Shutterstock, Inc.*		1,120		76,910
Youku Tudou, Inc. ADR*		4,492		56,150
Total Internet Content-Entertainment				1,246,560
NETWORKING PRODUCTS - 7.7%
Cisco Systems, Inc.		20,048		551,820
Palo Alto Networks, Inc.*		1,124		164,194
Arista Networks, Inc.*		1,420		100,153
Infinera Corp.*		3,850		75,730
Telefonaktiebolaget LM Ericsson ADR		5,383		67,557
Polycom, Inc.*		4,716		63,194
LogMeIn, Inc.*		1,000		55,990
Ruckus Wireless, Inc.*		3,930		50,579
Total Networking Products				1,129,217
APPLICATIONS SOFTWARE - 6.6%
salesforce.com, Inc.*		4,640		309,998
Intuit, Inc.		2,482		240,655
Red Hat, Inc.*		2,457		186,118
Check Point Software Technologies Ltd.*		990		81,150
Demandware, Inc.*		1,140		69,426
Dealertrack Technologies, Inc.*		1,743		67,140
Total Applications Software				954,487
WIRELESS EQUIPMENT - 5.4%
Motorola Solutions, Inc.		2,706		180,409
Gogo, Inc.*,1		9,347		178,154
ViaSat, Inc.*		1,300		77,493
Aruba Networks, Inc.*		3,153		77,217
Ubiquiti Networks, Inc.		2,476		73,166
Nokia Oyj ADR		9,265		70,229
Sierra Wireless, Inc.*		2,080		68,827
InterDigital, Inc.		1,260		63,932
Total Wireless Equipment				789,427
FINANCE-INVESTMENT BANKERS/BROKERS - 4.4%
Charles Schwab Corp.		9,730		296,180
TD Ameritrade Holding Corp.		5,680		211,637
E*TRADE Financial Corp.*		4,780		136,493
Total Finance-Investment Bankers/Brokers				644,310
TELECOMMUNICATION EQUIPMENT - 4.1%
Harris Corp.		1,790		140,980
Juniper Networks, Inc.		6,197		139,928
CommScope Holding Company, Inc.*		3,720		106,169
ARRIS Group, Inc.*		3,225		93,186
Plantronics, Inc.		1,310		69,365
ADTRAN, Inc.		2,439		45,536
Total Telecommunication Equipment				595,164
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 3.4%
QUALCOMM, Inc.		7,215		500,287
INTERNET CONTENT-INFORMATION/NETWORK - 3.3%
LinkedIn Corp. — Class A*		1,036		258,855
Yelp, Inc. — Class A*		1,894		89,681
YY, Inc. ADR*,1		1,434		78,232
WebMD Health Corp. — Class A*		1,399		61,325
Total Internet Content-Information/Network				488,093
INTERNET SECURITY - 2.8%
Symantec Corp.		8,003		186,990
VeriSign, Inc.*		2,024		135,547

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
INTERNET FUND

	Shares		Value
Qihoo 360 Technology Company Ltd. ADR*		1,719	$	88,013
Total Internet Security				410,550
MULTIMEDIA - 2.7%
Time Warner, Inc.		4,646		392,308
COMPUTER SOFTWARE - 2.4%
Akamai Technologies, Inc.*		2,342		166,388
Rackspace Hosting, Inc.*		2,412		124,435
Cornerstone OnDemand, Inc.*		2,070		59,802
Total Computer Software				350,625
ELECTRONIC COMPONENTS-SEMICONDUCTOR - 1.6%
Broadcom Corp. — Class A		5,412		234,313
COMMERCIAL SERVICES - 1.5%
CoStar Group, Inc.*		604		119,490
Live Nation Entertainment, Inc.*		4,180		105,461
Total Commercial Services				224,951
TELECOMMUNICATION EQUIPMENT FIBER OPTICS - 1.4%
JDS Uniphase Corp.*		6,076		79,718
Finisar Corp.*		3,157		67,370
Ciena Corp.*		3,317		64,051
Total Telecommunication Equipment Fiber Optics				211,139
COMPUTERS-INTEGRATED SYSTEMS - 1.4%
Brocade Communications Systems, Inc.		8,750		103,819
Riverbed Technology, Inc.*		4,945		103,400
Total Computers-Integrated Systems				207,219
WEB HOSTING/DESIGN - 1.2%
Equinix, Inc.		727		169,283
INTERNET INFRASTRUCTURE SOFTWARE - 0.9%
F5 Networks, Inc.*		1,192		137,008
FINANCE-CONSUMER LOANS - 0.9%
LendingClub Corp.*		6,570		129,101
ENTERPRISE SOFTWARE/SERVICES - 0.6%
Veeva Systems, Inc. — Class A*		3,430		87,568
COMPUTER SERVICES INTERNET TELEPHONY - 0.6%
j2 Global, Inc.		1,260		82,757
INTERNET INCUBATORS - 0.5%
HomeAway, Inc.*		2,592		78,201
ENTERTAINMENT SOFTWARE - 0.5%
NetEase, Inc. ADR		739		77,817
PRINTING-COMMERCIAL - 0.5%
Cimpress N.V.*		834		70,373
MEDICAL INFORMATION SYSTEM - 0.5%
Allscripts Healthcare Solutions, Inc.*		5,880		70,325
COMPUTERS - 0.5%
BlackBerry Ltd.*		7,827		69,895
INTERNET CONNECTIVITY SERVICES - 0.4%
Cogent Communications Holdings, Inc.		1,720		60,768
Total Common Stocks
(Cost $8,653,198)				14,524,098
	Face Amount
REPURCHASE AGREEMENT††,2 - 0.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	77,876		77,876
Total Repurchase Agreement
(Cost $77,876)				77,876
SECURITIES LENDING COLLATERAL††,3 - 1.2%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		112,397		112,397
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		38,664		38,664
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		19,957		19,957
Total Securities Lending Collateral
(Cost $171,018)				171,018
Total Investments - 101.1%
(Cost $8,902,092)			$	14,772,992
Other Assets & Liabilities, net - (1.1)%				(156,792	)
Total Net Assets - 100.0%			$	14,616,200

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $169,972 of securities loaned (cost $8,653,198)	$	14,524,098
Repurchase agreements, at value (cost $248,894)		248,894
Total investments (cost $8,902,092)		14,772,992
Segregated cash with broker		2,500
Cash		2,416
Receivables:
Fund shares sold		150,084
Dividends		5,458
Securities lending income		846
Foreign taxes reclaim		743
Total assets		14,935,039
Liabilities:
Payable for:
Return of securities loaned		173,518
Securities purchased		81,065
Fund shares redeemed		38,511
Management fees		10,336
Distribution and service fees		3,544
Transfer agent and administrative fees		3,040
Portfolio accounting fees		1,216
Miscellaneous		7,609
Total liabilities		318,839
Commitments and contingent liabilities (Note 10)		—
Net assets	$	14,616,200
Net assets consist of:
Paid in capital	$	10,675,060
Undistributed net investment income		—
Accumulated net realized loss on investments		(1,929,760	)
Net unrealized appreciation on investments		5,870,900
Net assets	$	14,616,200
Investor Class:
Net assets	$	8,328,216
Capital shares outstanding		106,948
Net asset value per share	$	77.87
Advisor Class:
Net assets	$	1,830,003
Capital shares outstanding		25,545
Net asset value per share	$	71.64
A-Class:
Net assets	$	2,021,684
Capital shares outstanding		27,427
Net asset value per share	$	73.71
Maximum offering price per share (Net asset value divided by 95.25%)	$	77.39
C-Class:
Net assets	$	2,436,297
Capital shares outstanding		36,271
Net asset value per share	$	67.17

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,214)	$	131,064
Income from securities lending, net		15,390
Interest		19
Total investment income		146,473
Expenses:
Management fees		174,201
Transfer agent and administrative fees		51,236
Distribution and service fees:
Advisor Class		13,133
A-Class		8,861
C-Class		29,629
Portfolio accounting fees		20,494
Registration fees		21,679
Custodian fees		2,394
Trustees’ fees*		2,283
Line of credit fees		293
Miscellaneous		4,821
Total expenses		329,024
Net investment loss		(182,551	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,805,670
Net realized gain		3,805,670
Net change in unrealized appreciation (depreciation) on:
Investments		(3,557,558	)
Net change in unrealized appreciation (depreciation)		(3,557,558	)
Net realized and unrealized gain		248,112
Net increase in net assets resulting from operations	$	65,561

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

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

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(182,551	)	$	(368,149	)
Net realized gain (loss) on investments		3,805,670			(1,599,042	)
Net change in unrealized appreciation (depreciation) on investments		(3,557,558	)		6,184,558
Net increase in net assets resulting from operations		65,561			4,217,367
Distributions to shareholders from:
Net realized gains
Investor Class		(212,285	)		(111,377	)
Advisor Class		(44,657	)		(17,627	)
A-Class		(66,053	)		(40,920	)
C-Class		(76,244	)		(15,187	)
Total distributions to shareholders		(399,239	)		(185,111	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		43,138,842			137,136,622
Advisor Class		94,544,871			71,839,042
A-Class		4,055,990			18,920,974
C-Class		11,747,458			18,712,886
Distributions reinvested
Investor Class		205,625			108,663
Advisor Class		44,428			17,580
A-Class		53,517			37,431
C-Class		74,878			14,695
Cost of shares redeemed
Investor Class		(61,299,428	)		(119,310,474	)
Advisor Class		(105,054,927	)		(60,492,721	)
A-Class		(14,360,288	)		(8,526,665	)
C-Class		(14,064,904	)		(15,590,538	)
Net increase (decrease) from capital share transactions		(40,913,938	)		42,867,495
Net increase (decrease) in net assets		(41,247,616	)		46,899,751
Net assets:
Beginning of year		55,863,816			8,964,065
End of year	$	14,616,200		$	55,863,816
Undistributed net investment income at end of year	$	—		$	—
Capital share activity:
Shares sold
Investor Class		568,304			1,953,833
Advisor Class		1,359,702			1,024,297
A-Class		55,579			275,049
C-Class		177,866			314,443
Shares issued from reinvestment of distributions
Investor Class		2,672			1,528
Advisor Class		626			266
A-Class		734			554
C-Class		1,124			236
Shares redeemed
Investor Class		(821,508	)		(1,708,029	)
Advisor Class		(1,504,575	)		(865,440	)
A-Class		(205,087	)		(121,953	)
C-Class		(213,643	)		(266,422	)
Net increase (decrease) in shares		(578,206	)		608,362

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

INTERNET FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	75.05		$	55.46		$	51.90		$	52.28		$	41.74
Income (loss) from investment operations:
Net investment income (loss)a		(.49	)		(.62	)		(.44	)		(.51	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		5.27			20.53			5.26			.13			10.88
Total from investment operations		4.78			19.91			4.82			(.38	)		10.54
Less distributions from:
Net realized gains		(1.96	)		(.32	)		(1.26	)		—			—
Total distributions		(1.96	)		(.32	)		(1.26	)		—			—
Net asset value, end of period	$	77.87		$	75.05		$	55.46		$	51.90		$	52.28
Total Returnb		6.40	%		35.93	%		9.65	%		(0.73	%)		25.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,328		$	26,828		$	6,109		$	6,206		$	20,589
Ratios to average net assets:
Net investment income (loss)		(0.64	%)		(0.87	%)		(0.87	%)		(1.05	%)		(0.69	%)
Total expenses		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		495	%		472	%		442	%		380	%		291	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	69.58		$	51.70		$	48.71		$	49.31		$	39.57
Income (loss) from investment operations:
Net investment income (loss)a		(.78	)		(1.07	)		(.64	)		(.71	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		4.80			19.27			4.89			.11			10.33
Total from investment operations		4.02			18.20			4.25			(.60	)		9.74
Less distributions from:
Net realized gains		(1.96	)		(.32	)		(1.26	)		—			—
Total distributions		(1.96	)		(.32	)		(1.26	)		—			—
Net asset value, end of period	$	71.64		$	69.58		$	51.70		$	48.71		$	49.31
Total Returnb		5.80	%		35.23	%		9.13	%		(1.24	%)		24.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,830		$	11,814		$	552		$	719		$	2,124
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(1.53	%)		(1.36	%)		(1.58	%)		(1.32	%)
Total expenses		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		495	%		472	%		442	%		380	%		291	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	71.32		$	52.85		$	49.63		$	50.13		$	40.12
Income (loss) from investment operations:
Net investment income (loss)a		(.61	)		(.79	)		(.52	)		(.64	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		4.96			19.58			5.00			.14			10.47
Total from investment operations		4.35			18.79			4.48			(.50	)		10.01
Less distributions from:
Net realized gains		(1.96	)		(.32	)		(1.26	)		—			—
Total distributions		(1.96	)		(.32	)		(1.26	)		—			—
Net asset value, end of period	$	73.71		$	71.32		$	52.85		$	49.63		$	50.13
Total Returnb		6.12	%		35.58	%		9.41	%		(1.00	%)		24.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,022		$	12,566		$	1,192		$	828		$	1,101
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(1.12	%)		(1.08	%)		(1.39	%)		(1.01	%)
Total expenses		1.61	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		495	%		472	%		442	%		380	%		291	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	65.64		$	49.03		$	46.50		$	47.30		$	38.17
Income (loss) from investment operations:
Net investment income (loss)a		(1.11	)		(1.16	)		(.85	)		(.94	)		(.83	)
Net gain (loss) on investments (realized and unrealized)		4.60			18.09			4.64			.14			9.96
Total from investment operations		3.49			16.93			3.79			(.80	)		9.13
Less distributions from:
Net realized gains		(1.96	)		(.32	)		(1.26	)		—			—
Total distributions		(1.96	)		(.32	)		(1.26	)		—			—
Net asset value, end of period	$	67.17		$	65.64		$	49.03		$	46.50		$	47.30
Total Returnb		5.34	%		34.56	%		8.55	%		(1.69	%)		23.92	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,436		$	4,655		$	1,111		$	643		$	1,770
Ratios to average net assets:
Net investment income (loss)		(1.68	%)		(1.85	%)		(1.91	%)		(2.17	%)		(1.92	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		495	%		472	%		442	%		380	%		291	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

LEISURE FUND

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

For the one-year period ended March 31, 2015, Leisure Fund Investor Class returned 11.15%, compared with 18.26% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned 12.73%.

The media segment was the largest contributor to return, followed by the hotels, restaurants & leisure segment. The leisure products segment was the largest detractor from return, followed by the automobiles segment.

Among the holdings that contributed the most to the Fund’s performance for the period were Walt Disney Co., Altria Group, Inc., and Electronic Arts, Inc. The Fund’s weakest holdings for the period were Melco Crown Entertainment Ltd. ADR, Wynn Resorts Ltd., and Las Vegas Sands Corp.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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	3.3%
Philip Morris International, Inc.	3.1%
Altria Group, Inc.	2.8%
McDonald’s Corp.	2.8%
Starbucks Corp.	2.4%
Twenty-First Century Fox, Inc. — Class A	2.4%
Time Warner, Inc.	2.4%
Las Vegas Sands Corp.	1.9%
DIRECTV	1.9%
Top Ten Total	26.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 95

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	11.15%	17.82%	7.42%
Advisor Class Shares	10.66%	17.23%	6.89%
A-Class Shares	10.86%	17.50%	7.15%
A-Class Shares with sales charge†	5.59%	16.36%	6.63%
C-Class Shares	10.04%	16.63%	6.34%
C-Class Shares with CDSC‡	9.04%	16.63%	6.34%
S&P 500 Consumer Discretionary Index	18.26%	20.11%	10.25%
S&P 500 Index	12.73%	14.47%	8.01%

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

96 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.4%
RETAIL-RESTAURANTS - 18.0%
McDonald’s Corp.		19,419	$	1,892,186
Starbucks Corp.		17,419		1,649,579
Yum! Brands, Inc.		14,491		1,140,732
Chipotle Mexican Grill, Inc. — Class A*		1,329		864,568
Darden Restaurants, Inc.		8,429		584,467
Restaurant Brands International, Inc.		12,501		480,163
Domino’s Pizza, Inc.		4,614		463,938
Dunkin’ Brands Group, Inc.		8,880		422,333
Panera Bread Co. — Class A*		2,538		406,067
Wendy’s Co.		36,183		394,395
Brinker International, Inc.		6,354		391,152
Jack in the Box, Inc.		3,950		378,884
Cracker Barrel Old Country Store, Inc.		2,470		375,786
Buffalo Wild Wings, Inc.*		1,937		351,062
Bloomin’ Brands, Inc.		13,910		338,430
Texas Roadhouse, Inc. — Class A		8,534		310,894
Cheesecake Factory, Inc.		6,284		309,990
Papa John’s International, Inc.		5,000		309,050
DineEquity, Inc.		2,640		282,506
Sonic Corp.		7,960		252,332
Red Robin Gourmet Burgers, Inc.*		2,600		226,200
Bob Evans Farms, Inc.		4,440		205,394
El Pollo Loco Holdings, Inc.*,1		7,440		190,538
Total Retail-Restaurants				12,220,646
CABLE/SATELLITE TV - 12.0%
Comcast Corp. — Class A		40,205		2,270,377
DIRECTV*		14,989		1,275,564
Time Warner Cable, Inc.		8,138		1,219,723
DISH Network Corp. — Class A*		15,536		1,088,452
Charter Communications, Inc. — Class A*		4,750		917,273
Liberty Global plc*		13,559		675,374
Cablevision Systems Corp. — Class A		23,856		436,565
Liberty Global plc — Class A*		6,139		315,974
Total Cable/Satellite TV				8,199,302
MULTIMEDIA - 11.7%
Walt Disney Co.		24,521		2,572,007
Twenty-First Century Fox, Inc. — Class A		48,249		1,632,746
Time Warner, Inc.		19,132		1,615,506
Thomson Reuters Corp.		27,464		1,113,940
Viacom, Inc. — Class B		14,902		1,017,807
Total Multimedia				7,952,006
TOBACCO - 9.0%
Philip Morris International, Inc.		27,593		2,078,580
Altria Group, Inc.		37,839		1,892,707
Reynolds American, Inc.		16,885		1,163,545
Lorillard, Inc.		14,262		932,022
Total Tobacco				6,066,854
HOTELS & MOTELS - 6.3%
Hilton Worldwide Holdings, Inc.*		35,610		1,054,769
Marriott International, Inc. — Class A		11,163		896,612
Starwood Hotels & Resorts Worldwide, Inc.		8,926		745,321
Wyndham Worldwide Corp.		7,151		646,951
Hyatt Hotels Corp. — Class A*		9,810		580,948
La Quinta Holdings, Inc.*		14,700		348,096
Total Hotels & Motels				4,272,697
CASINO HOTELS - 5.3%
Las Vegas Sands Corp.		23,967		1,319,143
Wynn Resorts Ltd.		5,641		710,089
Melco Crown Entertainment Ltd. ADR		32,373		694,725
MGM Resorts International*		30,790		647,514
Boyd Gaming Corp.*		17,080		242,536
Total Casino Hotels				3,614,007
TELEVISION - 4.5%
CBS Corp. — Class B		17,415		1,055,871
AMC Networks, Inc. — Class A*		6,230		477,467
Tribune Media Co. — Class A*		7,300		443,913
Sinclair Broadcast Group, Inc. — Class A		11,270		353,991
Liberty Media Corp. — Class C*		9,140		349,148
Liberty Media Corp. — Class A*		9,030		348,107
Total Television				3,028,497
CRUISE LINES - 4.0%
Carnival Corp.		25,181		1,204,659
Royal Caribbean Cruises Ltd.		10,252		839,126
Norwegian Cruise Line Holdings Ltd.*		12,980		701,050
Total Cruise Lines				2,744,835
BROADCAST SERVICES/PROGRAM - 4.0%
Discovery Communications, Inc. — Class A*		27,633		849,991
Scripps Networks Interactive, Inc. — Class A		8,344		572,065
Grupo Televisa SAB ADR*		14,670		484,257
Discovery Communications, Inc. — Class C*		14,626		431,101
Starz — Class A*		10,747		369,804
Total Broadcast Services/Program				2,707,218
BREWERY - 3.8%
Anheuser-Busch InBev N.V. ADR		7,633		930,539
Molson Coors Brewing Co. — Class B		9,814		730,652
Ambev S.A. ADR		94,860		546,394
Boston Beer Company, Inc. — Class A*		1,400		374,360
Total Brewery				2,581,945
BEVERAGES-WINE/SPIRITS - 3.3%
Constellation Brands, Inc. — Class A*		8,041		934,445
Brown-Forman Corp. — Class B		9,423		851,368
Diageo plc ADR		4,290		474,345
Total Beverages-Wine/Spirits				2,260,158

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
LEISURE FUND

	Shares		Value
ENTERTAINMENT SOFTWARE - 2.8%
Electronic Arts, Inc.*		14,557	$	856,170
Activision Blizzard, Inc.		34,511		784,262
Take-Two Interactive Software, Inc.*		11,164		284,180
Total Entertainment Software				1,924,612
PUBLISHING-NEWSPAPERS - 1.7%
News Corp. — Class A*		36,004		576,424
Gannett Company, Inc.		15,339		568,770
Total Publishing-Newspapers				1,145,194
RESORTS/THEME PARKS - 1.6%
Six Flags Entertainment Corp.		9,100		440,531
Vail Resorts, Inc.		3,690		381,620
SeaWorld Entertainment, Inc.		13,400		258,352
Total Resorts/Theme Parks				1,080,503
TOYS - 1.6%
Hasbro, Inc.		8,732		552,211
Mattel, Inc.		22,809		521,186
Total Toys				1,073,397
RECREATIONAL VEHICLES - 1.5%
Polaris Industries, Inc.		4,170		588,387
Brunswick Corp.		8,157		419,678
Total Recreational Vehicles				1,008,065
COMMERCIAL SERVICES - 1.4%
Aramark		16,700		528,221
Live Nation Entertainment, Inc.*		17,312		436,782
Total Commercial Services				965,003
THEATERS - 1.2%
Cinemark Holdings, Inc.		10,066		453,675
Regal Entertainment Group — Class A		16,260		371,378
Total Theaters				825,053
MOTION PICTURES & SERVICES - 1.1%
Lions Gate Entertainment Corp.		12,487		423,559
DreamWorks Animation SKG, Inc. — Class A*,1		12,065		291,973
Total Motion Pictures & Services				715,532
MOTORCYCLE/MOTOR SCOOTER - 1.0%
Harley-Davidson, Inc.		11,721		711,934
PROFESSIONAL SPORTS - 0.8%
Madison Square Garden Co. — Class A*		6,210		525,677
CASINO SERVICES - 0.6%
International Game Technology		23,274		405,200
RECREATIONAL CENTERS - 0.5%
Life Time Fitness, Inc.*		4,549		322,797
RETAIL-SPORTING GOODS - 0.5%
Vista Outdoor, Inc.*		7,500		321,150
PUBLISHING-PERIODICALS - 0.5%
Time, Inc.		13,635		305,969
GAMBLING (NON-HOTEL) - 0.4%
Pinnacle Entertainment, Inc.*		8,086		291,824
RACETRACKS - 0.3%
Penn National Gaming, Inc.*		13,700		214,542
Total Common Stocks
(Cost $59,964,877)				67,484,617

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
LEISURE FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	242,050	$	242,050
Total Repurchase Agreement
(Cost $242,050)				242,050
SECURITIES LENDING COLLATERAL††,3 - 0.5%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		215,232		215,232
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		74,040		74,040
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		38,216		38,216
Total Securities Lending Collateral
(Cost $327,488)				327,488
Total Investments - 100.3%
(Cost $60,534,415)			$	68,054,155
Other Assets & Liabilities, net - (0.3)%				(193,603	)
Total Net Assets - 100.0%			$	67,860,552

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — 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 ANNUAL REPORT | 99

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $323,506 of securities loaned (cost $59,964,877)	$	67,484,617
Repurchase agreements, at value (cost $569,538)		569,538
Total investments (cost $60,534,415)		68,054,155
Segregated cash with broker		4,787
Receivables:
Securities sold		971,884
Fund shares sold		463,036
Dividends		179,944
Securities lending income		1,654
Foreign taxes reclaim		415
Total assets		69,675,875
Liabilities:
Payable for:
Fund shares redeemed		1,385,994
Return of securities loaned		332,275
Management fees		49,120
Transfer agent and administrative fees		14,447
Distribution and service fees		7,058
Portfolio accounting fees		5,779
Miscellaneous		20,650
Total liabilities		1,815,323
Commitments and contingent liabilities (Note 10)		—
Net assets	$	67,860,552
Net assets consist of:
Paid in capital	$	61,974,363
Undistributed net investment income		285,529
Accumulated net realized loss on investments		(1,919,080	)
Net unrealized appreciation on investments		7,519,740
Net assets	$	67,860,552
Investor Class:
Net assets	$	48,494,346
Capital shares outstanding		798,255
Net asset value per share	$	60.75
Advisor Class:
Net assets	$	7,073,710
Capital shares outstanding		127,463
Net asset value per share	$	55.50
A-Class:
Net assets	$	10,702,824
Capital shares outstanding		188,152
Net asset value per share	$	56.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	59.72
C-Class:
Net assets	$	1,589,672
Capital shares outstanding		30,154
Net asset value per share	$	52.72

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $5,773)	$	761,308
Income from securities lending, net		31,579
Interest		38
Total investment income		792,925
Expenses:
Management fees		301,172
Transfer agent and administrative fees		88,580
Distribution and service fees:
Advisor Class		12,784
A-Class		8,605
C-Class		12,255
Portfolio accounting fees		35,431
Custodian fees		4,114
Trustees’ fees*		2,101
Line of credit fees		116
Tax expense		85
Miscellaneous		42,153
Total expenses		507,396
Net investment income		285,529
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,468,270
Net realized gain		5,468,270
Net change in unrealized appreciation (depreciation) on:
Investments		(1,903,716	)
Net change in unrealized appreciation (depreciation)		(1,903,716	)
Net realized and unrealized gain		3,564,554
Net increase in net assets resulting from operations	$	3,850,083

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015				Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	285,529			$	94,646
Net realized gain on investments		5,468,270				3,028,207
Net change in unrealized appreciation (depreciation) on investments		(1,903,716	)			2,702,964
Net increase in net assets resulting from operations		3,850,083				5,825,817
Distributions to shareholders from:
Net investment income
Investor Class		(86,741	)			(167,161	)
Advisor Class		(2,421	)			(17,486	)
A-Class		(3,222	)			(8,764	)
C-Class		(2,262	)			(6,684	)
Net realized gains
Investor Class		(819,251	)			—
Advisor Class		(22,866	)			—
A-Class		(30,437	)			—
C-Class		(21,361	)			—
Total distributions to shareholders		(988,561	)			(200,095	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		66,551,897				71,016,096
Advisor Class		92,571,748				18,567,120
A-Class		16,562,062				6,654,372
C-Class		3,107,048				1,632,199
Distributions reinvested
Investor Class		233,102				166,413
Advisor Class		25,054				17,418
A-Class		32,921				8,624
C-Class		22,369				6,192
Cost of shares redeemed
Investor Class		(44,791,384	)	��		(73,669,092	)
Advisor Class		(88,739,965	)			(17,145,281	)
A-Class		(7,989,563	)			(6,623,023	)
C-Class		(3,077,948	)			(1,347,238	)
Net increase (decrease) from capital share transactions		34,507,341				(716,200	)
Net increase in net assets		37,368,863				4,909,522
Net assets:
Beginning of year		30,491,689				25,582,167
End of year	$	67,860,552			$	30,491,689
Undistributed net investment income at end of year	$	285,529			$	94,646

 

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Year Ended March 31, 2015		Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class	1,133,061		1,384,928
Advisor Class	1,731,706		385,324
A-Class	301,170		134,495
C-Class	61,845		36,131
Shares issued from reinvestment of distributions
Investor Class	4,036		3,093
Advisor Class	474		351
A-Class	608		170
C-Class	445		130
Shares redeemed
Investor Class	(771,348	)	(1,445,332	)
Advisor Class	(1,665,419	)	(354,839	)
A-Class	(147,523	)	(134,028	)
C-Class	(61,892	)	(29,738	)
Net increase (decrease) in shares	587,163		(19,315	)

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

LEISURE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	55.81		$	44.93		$	36.94		$	33.50		$	27.48
Income (loss) from investment operations:
Net investment income (loss)a		.52			.20			.36			.17			(.02	)
Net gain (loss) on investments (realized and unrealized)		5.64			10.95			7.66			3.27			6.04
Total from investment operations		6.16			11.15			8.02			3.44			6.02
Less distributions from:
Net investment income		(.12	)		(.27	)		(.03	)		—			—
Net realized gains		(1.10	)		—			—			—			—
Total distributions		(1.22	)		(.27	)		(.03	)		—			—
Net asset value, end of period	$	60.75		$	55.81		$	44.93		$	36.94		$	33.50
Total Returnb		11.15	%		24.83	%		21.74	%		10.27	%		21.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	48,494		$	24,139		$	22,005		$	12,687		$	2,141
Ratios to average net assets:
Net investment income (loss)		0.89	%		0.39	%		0.92	%		0.49	%		(0.07	%)
Total expenses		1.34	%		1.37	%		1.35	%		1.35	%		1.39	%
Portfolio turnover rate		343	%		265	%		517	%		797	%		963	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	51.31		$	41.54		$	34.33		$	31.29		$	25.81
Income (loss) from investment operations:
Net investment income (loss)a		.30			(.11	)		.29			(.01	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		5.11			10.15			6.95			3.05			5.64
Total from investment operations		5.41			10.04			7.24			3.04			5.48
Less distributions from:
Net investment income		(.12	)		(.27	)		(.03	)		—			—
Net realized gains		(1.10	)		—			—			—			—
Total distributions		(1.22	)		(.27	)		(.03	)		—			—
Net asset value, end of period	$	55.50		$	51.31		$	41.54		$	34.33		$	31.29
Total Returnb		10.66	%		24.18	%		21.12	%		9.72	%		21.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,074		$	3,115		$	1,241		$	1,379		$	582
Ratios to average net assets:
Net investment income (loss)		0.55	%		(0.23	%)		0.80	%		(0.03	%)		(0.61	%)
Total expenses		1.83	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		343	%		265	%		517	%		797	%		963	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.46		$	42.35		$	34.91		$	31.75		$	26.13
Income (loss) from investment operations:
Net investment income (loss)a		.38			.04			.29			.07			(.05	)
Net gain (loss) on investments (realized and unrealized)		5.26			10.34			7.18			3.09			5.67
Total from investment operations		5.64			10.38			7.47			3.16			5.62
Less distributions from:
Net investment income		(.12	)		(.27	)		(.03	)		—			—
Net realized gains		(1.10	)		—			—			—			—
Total distributions		(1.22	)		(.27	)		(.03	)		—			—
Net asset value, end of period	$	56.88		$	52.46		$	42.35		$	34.91		$	31.75
Total Returnb		10.86	%		24.53	%		21.42	%		9.95	%		21.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,703		$	1,778		$	1,409		$	448		$	1,157
Ratios to average net assets:
Net investment income (loss)		0.69	%		0.09	%		0.80	%		0.23	%		(0.18	%)
Total expenses		1.58	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		343	%		265	%		517	%		797	%		963	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	49.07		$	39.92		$	33.16		$	30.36		$	25.19
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.27	)		.01			(.15	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		5.06			9.69			6.78			2.95			5.47
Total from investment operations		4.87			9.42			6.79			2.80			5.17
Less distributions from:
Net investment income		(.12	)		(.27	)		(.03	)		—			—
Net realized gains		(1.10	)		—			—			—			—
Total distributions		(1.22	)		(.27	)		(.03	)		—			—
Net asset value, end of period	$	52.72		$	49.07		$	39.92		$	33.16		$	30.36
Total Returnb		10.04	%		23.61	%		20.54	%		9.19	%		20.52	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,590		$	1,460		$	928		$	1,345		$	828
Ratios to average net assets:
Net investment income (loss)		(0.37	%)		(0.59	%)		0.03	%		(0.50	%)		(1.13	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		343	%		265	%		517	%		797	%		963	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

PRECIOUS METALS FUND

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

For the one-year period ended March 31, 2015, Precious Metals Fund Investor Class returned -27.88%, compared with 4.97% for the S&P 500 Materials Index. The broader S&P 500 Index returned 12.73%.

All segments detracted from return for the period. The gold mining segment was the main detractor from return, followed by the silver mining segment. The precious metals & minerals segment contributed least to return.

The leading contributors to return were RTI International Metals, Inc., Dominion Diamond Corp., and Gold Fields Ltd. ADR. The leading detractors were Yamana Gold, Inc., Barrick Gold Corp., and Freeport-McMoRan, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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)
Goldcorp, Inc.	6.9%
Newmont Mining Corp.	6.7%
Barrick Gold Corp.	6.5%
Agnico Eagle Mines Ltd.	5.0%
Silver Wheaton Corp.	5.0%
Franco-Nevada Corp.	4.9%
Randgold Resources Ltd. ADR	4.5%
Freeport-McMoRan, Inc.	4.2%
Market Vectors Junior Gold Miners ETF	4.1%
Royal Gold, Inc.	3.8%
Top Ten Total	51.6%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 105

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-27.88%	-15.25%	-2.72%
Advisor Class Shares	-28.24%	-15.67%	-3.20%
A-Class Shares	-28.13%	-15.48%	-2.96%
A-Class Shares with sales charge†	-31.54%	-16.30%	-3.44%
C-Class Shares	-28.64%	-16.10%	-3.70%
C-Class Shares with CDSC‡	-29.34%	-16.10%	-3.70%
S&P 500 Materials Index	4.97%	10.82%	7.55%
S&P 500 Index	12.73%	14.47%	8.01%

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

106 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.5%
GOLD MINING - 70.3%
Goldcorp, Inc.		187,853	$	3,403,896
Newmont Mining Corp.		151,488		3,288,805
Barrick Gold Corp.		291,742		3,197,492
Agnico Eagle Mines Ltd.		89,350		2,496,439
Franco-Nevada Corp.		49,775		2,416,079
Randgold Resources Ltd. ADR		31,997		2,216,432
Royal Gold, Inc.		29,913		1,887,809
AngloGold Ashanti Ltd. ADR*		185,184		1,729,619
Eldorado Gold Corp.		323,340		1,484,131
Cia de Minas Buenaventura S.A.A. ADR		138,679		1,404,818
Gold Fields Ltd. ADR		339,858		1,362,831
Yamana Gold, Inc.		376,131		1,350,310
Kinross Gold Corp.*		524,639		1,175,191
Sibanye Gold Ltd. ADR		133,235		1,136,495
New Gold, Inc.*		291,859		989,402
NOVAGOLD Resources, Inc.*,1		261,160		773,034
Alamos Gold, Inc.1		120,404		705,567
Harmony Gold Mining Company Ltd. ADR*,1		383,499		667,288
Pretium Resources, Inc.*,1		130,575		658,098
IAMGOLD Corp.*		346,031		647,078
AuRico Gold, Inc.		230,859		639,479
Sandstorm Gold Ltd.*,1		162,095		531,672
Seabridge Gold, Inc.*,1		80,883		444,048
Gold Resource Corp.		20,310		64,789
McEwen Mining, Inc.*		59,510		60,700
B2Gold Corp.*		34,720		52,774
Total Gold Mining				34,784,276
SILVER MINING - 11.5%
Silver Wheaton Corp.		128,696		2,447,798
Pan American Silver Corp.		114,898		1,007,655
Hecla Mining Co.1		274,307		817,435
First Majestic Silver Corp.*		140,573		760,500
Silver Standard Resources, Inc.*,1		127,608		578,064
Endeavour Silver Corp.*		27,570		52,383
Total Silver Mining				5,663,835
METAL-COPPER - 4.7%
Freeport-McMoRan, Inc.		110,516		2,094,278
Southern Copper Corp.		8,040		234,607
Total Metal-Copper				2,328,885
PRECIOUS METALS - 4.6%
Tahoe Resources, Inc.		95,313		1,044,631
Coeur Mining, Inc.*,1		131,302		618,432
Primero Mining Corp.*,1		177,763		609,727
Total Precious Metals				2,272,790
PLATINUM - 2.5%
Stillwater Mining Co.*		95,854		1,238,434
METAL PROCESSORS & FABRICATIONS - 1.8%
RTI International Metals, Inc.*		24,686		886,474
DIAMONDS/PRECIOUS STONES - 0.1%
Dominion Diamond Corp.*		3,390		57,935
Total Common Stocks
(Cost $37,145,474)				47,232,629
EXCHANGE-TRADED FUNDS† - 4.1%
Market Vectors Junior Gold Miners ETF		88,153		2,004,599
Total Exchange-Traded Funds
(Cost $2,058,006)				2,004,599
	Face Amount
REPURCHASE AGREEMENT††,2 - 0.6%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	321,629		321,629
Total Repurchase Agreement
(Cost $321,629)				321,629

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
PRECIOUS METALS FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 5.5%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15	$	1,789,709	$	1,789,709
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		615,660		615,660
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		317,781		317,781
Total Securities Lending Collateral
(Cost $2,723,150)				2,723,150
Total Investments - 105.7%
(Cost $42,248,259)			$	52,282,007
Other Assets & Liabilities, net - (5.7)%				(2,836,237	)
Total Net Assets - 100.0%			$	49,445,770

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,546,558 of securities loaned (cost $39,203,480)	$	49,237,228
Repurchase agreements, at value (cost $3,044,779)		3,044,779
Total investments (cost $42,248,259)		52,282,007
Segregated cash with broker		39,801
Receivables:
Fund shares sold		9,096,132
Dividends		38,292
Securities lending income		5,395
Total assets		61,461,627
Liabilities:
Payable for:
Securities purchased		6,909,333
Return of securities loaned		2,762,950
Fund shares redeemed		2,273,469
Management fees		26,641
Transfer agent and administrative fees		8,881
Distribution and service fees		7,074
Portfolio accounting fees		3,552
Miscellaneous		23,957
Total liabilities		12,015,857
Commitments and contingent liabilities (Note 10)		—
Net assets	$	49,445,770
Net assets consist of:
Paid in capital	$	93,338,410
Accumulated net investment loss		(249,582	)
Accumulated net realized loss on investments		(53,676,804	)
Net unrealized appreciation on investments		10,033,746
Net assets	$	49,445,770
Investor Class:
Net assets	$	30,527,636
Capital shares outstanding		1,215,855
Net asset value per share	$	25.11
Advisor Class:
Net assets	$	8,400,225
Capital shares outstanding		355,373
Net asset value per share	$	23.64
A-Class:
Net assets	$	4,927,551
Capital shares outstanding		202,927
Net asset value per share	$	24.28
Maximum offering price per share (Net asset value divided by 95.25%)	$	25.49
C-Class:
Net assets	$	5,590,358
Capital shares outstanding		257,918
Net asset value per share	$	21.67

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $50,032)	$	630,055
Income from securities lending, net		106,545
Interest		59
Total investment income		736,659
Expenses:
Management fees		432,300
Transfer agent and administrative fees		144,100
Distribution and service fees:
Advisor Class		18,999
A-Class		13,077
C-Class		83,580
Portfolio accounting fees		57,640
Registration fees		47,118
Custodian fees		6,730
Trustees’ fees*		4,937
Line of credit fees		253
Miscellaneous		28,172
Total expenses		836,906
Net investment loss		(100,247	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,218,177	)
Foreign currency		(8	)
Net realized loss		(4,218,185	)
Net change in unrealized appreciation (depreciation) on:
Investments		(12,927,538	)
Foreign currency		2
Net change in unrealized appreciation (depreciation)		(12,927,536	)
Net realized and unrealized loss		(17,145,721	)
Net decrease in net assets resulting from operations	$	(17,245,968	)

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(100,247	)	$	531,727
Net realized loss on investments		(4,218,185	)		(21,811,865	)
Net change in unrealized appreciation (depreciation) on investments		(12,927,536	)		(18,958,806	)
Net decrease in net assets resulting from operations		(17,245,968	)		(40,238,944	)
Distributions to shareholders from:
Net investment income
Investor Class		(942,983	)		(214,700	)
Advisor Class		(77,995	)		(17,921	)
A-Class		(81,766	)		(18,796	)
C-Class		(226,581	)		(51,914	)
Total distributions to shareholders		(1,329,325	)		(303,331	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		228,681,951			338,664,021
Advisor Class		81,461,920			73,664,880
A-Class		34,559,485			8,057,501
C-Class		19,812,912			25,324,298
Distributions reinvested
Investor Class		884,145			205,735
Advisor Class		77,943			17,782
A-Class		67,165			15,489
C-Class		219,239			49,648
Cost of shares redeemed
Investor Class		(228,926,568	)		(336,034,319	)
Advisor Class		(76,224,107	)		(71,421,958	)
A-Class		(33,136,533	)		(6,716,766	)
C-Class		(20,795,740	)		(29,074,122	)
Net increase from capital share transactions		6,681,812			2,752,189
Net decrease in net assets		(11,893,481	)		(37,790,086	)
Net assets:
Beginning of year		61,339,251			99,129,337
End of year	$	49,445,770		$	61,339,251
(Accumulated net investment loss)/Undistributed net investment income at end of year	$	(249,582	)	$	741,411
Capital share activity:
Shares sold
Investor Class		7,016,300			8,791,258
Advisor Class		2,837,152			2,073,315
A-Class		1,168,449			216,466
C-Class		697,217			747,420
Shares issued from reinvestment of distributions
Investor Class		30,498			6,301
Advisor Class		2,851			574
A-Class		2,392			488
C-Class		8,684			1,730
Shares redeemed
Investor Class		(7,028,380	)		(8,982,178	)
Advisor Class		(2,602,821	)		(2,019,696	)
A-Class		(1,118,576	)		(185,372	)
C-Class		(743,130	)		(860,994	)
Net increase (decrease) in shares		270,636			(210,688	)

110 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	35.78		$	51.65		$	65.73		$	86.74		$	61.73
Income (loss) from investment operations:
Net investment income (loss)a		.01			.36			.34			(.02	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(9.88	)		(16.06	)		(12.12	)		(20.70	)		25.32
Total from investment operations		(9.87	)		(15.70	)		(11.78	)		(20.72	)		25.04
Less distributions from:
Net investment income		(.80	)		(.17	)		(.10	)		(.29	)		(.03	)
Net realized gains		—			—			(2.20	)		—			—
Total distributions		(.80	)		(.17	)		(2.30	)		(.29	)		(.03	)
Net asset value, end of period	$	25.11		$	35.78		$	51.65		$	65.73		$	86.74
Total Returnb		(27.88	%)		(30.37	%)		(18.60	%)		(23.91	%)		40.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	30,528		$	42,846		$	71,386		$	79,637		$	141,798
Ratios to average net assets:
Net investment income (loss)		0.04	%		0.96	%		0.55	%		(0.03	%)		(0.37	%)
Total expensesc		1.25	%		1.27	%		1.25	%		1.26	%		1.28	%
Portfolio turnover rate		371	%		348	%		206	%		235	%		322	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	33.92		$	49.20		$	63.02		$	83.59		$	59.79
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		.12			(.02	)		(.44	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		(9.34	)		(15.23	)		(11.50	)		(19.84	)		24.44
Total from investment operations		(9.48	)		(15.11	)		(11.52	)		(20.28	)		23.83
Less distributions from:
Net investment income		(.80	)		(.17	)		(.10	)		(.29	)		(.03	)
Net realized gains		—			—			(2.20	)		—			—
Total distributions		(.80	)		(.17	)		(2.30	)		(.29	)		(.03	)
Net asset value, end of period	$	23.64		$	33.92		$	49.20		$	63.02		$	83.59
Total Returnb		(28.24	%)		(30.71	%)		(18.99	%)		(24.29	%)		39.87	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,400		$	4,009		$	3,148		$	9,610		$	30,418
Ratios to average net assets:
Net investment income (loss)		(0.45	%)		0.34	%		(0.04	%)		(0.59	%)		(0.86	%)
Total expensesc		1.75	%		1.77	%		1.75	%		1.76	%		1.78	%
Portfolio turnover rate		371	%		348	%		206	%		235	%		322	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	34.75		$	50.28		$	64.21		$	84.97		$	60.63
Income (loss) from investment operations:
Net investment income (loss)a		(.10	)		.16			.21			(.22	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		(9.57	)		(15.52	)		(11.84	)		(20.25	)		24.82
Total from investment operations		(9.67	)		(15.36	)		(11.63	)		(20.47	)		24.37
Less distributions from:
Net investment income		(.80	)		(.17	)		(.10	)		(.29	)		(.03	)
Net realized gains		—			—			(2.20	)		—			—
Total distributions		(.80	)		(.17	)		(2.30	)		(.29	)		(.03	)
Net asset value, end of period	$	24.28		$	34.75		$	50.28		$	64.21		$	84.97
Total Returnb		(28.13	%)		(30.52	%)		(18.80	%)		(24.13	%)		40.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,928		$	5,235		$	5,988		$	6,412		$	14,919
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		0.45	%		0.35	%		(0.30	%)		(0.63	%)
Total expensesc		1.50	%		1.52	%		1.50	%		1.51	%		1.53	%
Portfolio turnover rate		371	%		348	%		206	%		235	%		322	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	31.34		$	45.72		$	59.02		$	78.70		$	56.58
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.07	)		(.23	)		(.72	)		(.94	)
Net gain (loss) on investments (realized and unrealized)		(8.58	)		(14.14	)		(10.77	)		(18.67	)		23.09
Total from investment operations		(8.87	)		(14.21	)		(11.00	)		(19.39	)		22.15
Less distributions from:
Net investment income		(.80	)		(.17	)		(.10	)		(.29	)		(.03	)
Net realized gains		—			—			(2.20	)		—			—
Total distributions		(.80	)		(.17	)		(2.30	)		(.29	)		(.03	)
Net asset value, end of period	$	21.67		$	31.34		$	45.72		$	59.02		$	78.70
Total Returnb		(28.64	%)		(31.05	%)		(19.39	%)		(24.68	%)		39.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,590		$	9,250		$	18,608		$	26,533		$	39,650
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(0.22	%)		(0.42	%)		(1.04	%)		(1.37	%)
Total expensesc		2.25	%		2.27	%		2.25	%		2.26	%		2.28	%
Portfolio turnover rate		371	%		348	%		206	%		235	%		322	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

REAL ESTATE FUND

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

For the one-year period ended March 31, 2015, Real Estate Fund H-Class returned 15.55%, compared to a return of 24.17% for the MSCI U.S. REIT Index. The broader S&P 500 Index returned 12.73%.

Retail REITs contributed most to the performance of the Fund, followed by residential REITs. The real estate services segment was the largest detractor from performance, followed by the specialty chemicals segment.

The strongest performing holdings included Simon Property Group, Inc., Equity Residential, and General Growth Properties, Inc. The main detractors were American Realty Capital Properties, Inc., E-House China Holdings Ltd. ADR, and Altisource Portfolio Solutions S.A.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Simon Property Group, Inc.	2.4%
American Tower Corp. — Class A	1.8%
Public Storage	1.7%
Health Care REIT, Inc.	1.5%
Equity Residential	1.5%
Crown Castle International Corp.	1.5%
General Growth Properties, Inc.	1.5%
Ventas, Inc.	1.4%
AvalonBay Communities, Inc.	1.4%
Prologis, Inc.	1.4%
Top Ten Total	16.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 113

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	15.58%	12.06%	5.30%
A-Class Shares with sales charge†	10.08%	10.98%	4.79%
C-Class Shares	14.73%	11.16%	4.48%
C-Class Shares with CDSC‡	13.73%	11.16%	4.48%
H-Class Shares	15.55%	12.03%	5.27%
MSCI U.S. REIT Index	24.17%	15.89%	9.66%
S&P 500 Index	12.73%	14.47%	8.01%

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

114 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
REITs - 90.5%
REITs-DIVERSIFIED - 17.2%
American Tower Corp. — Class A		9,032	$	850,362
Crown Castle International Corp.		8,420		694,987
Vornado Realty Trust		5,801		649,712
Weyerhaeuser Co.		16,785		556,423
Digital Realty Trust, Inc.		6,318		416,735
Plum Creek Timber Company, Inc.		8,680		377,146
Duke Realty Corp.		17,150		373,356
Lamar Advertising Co. — Class A		5,580		330,727
Liberty Property Trust		8,746		312,232
Corrections Corporation of America		7,317		294,582
Outfront Media, Inc.		9,180		274,665
Retail Properties of America, Inc. — Class A		16,636		266,675
EPR Properties		4,289		257,469
GEO Group, Inc.		5,780		252,817
Rayonier, Inc.		9,218		248,517
PS Business Parks, Inc.		2,560		212,582
Cousins Properties, Inc.		19,629		208,067
Lexington Realty Trust		20,941		205,850
DuPont Fabros Technology, Inc.		6,239		203,891
New Residential Investment Corp.		13,050		196,142
Washington Real Estate Investment Trust		6,950		192,029
American Assets Trust, Inc.		4,420		191,298
Potlatch Corp.		4,419		176,937
STAG Industrial, Inc.		7,200		169,344
Gramercy Property Trust, Inc.		5,720		160,560
Total REITs-Diversified				8,073,105
REITs-OFFICE PROPERTY - 12.3%
Boston Properties, Inc.		4,616		648,455
SL Green Realty Corp.		3,856		495,033
American Realty Capital Properties, Inc.		40,790		401,782
Alexandria Real Estate Equities, Inc.		3,761		368,728
Kilroy Realty Corp.		4,706		358,456
BioMed Realty Trust, Inc.		13,068		296,121
Highwoods Properties, Inc.		6,360		291,161
Douglas Emmett, Inc.		9,714		289,574
Paramount Group, Inc.		14,050		271,165
Equity Commonwealth*		9,672		256,792
Columbia Property Trust, Inc.		9,310		251,556
Brandywine Realty Trust		14,621		233,644
Piedmont Office Realty Trust, Inc. — Class A		12,516		232,923
Hudson Pacific Properties, Inc.		6,886		228,546
Corporate Office Properties Trust		7,654		224,875
Empire State Realty Trust, Inc. — Class A		10,530		198,069
Parkway Properties, Inc.		10,954		190,052
New York REIT, Inc.		17,220		180,466
Mack-Cali Realty Corp.		9,171		176,817
Government Properties Income Trust		7,565		172,860
Total REITs-Office Property				5,767,075
REITs-APARTMENTS - 10.4%
Equity Residential		9,110		709,304
AvalonBay Communities, Inc.		3,795		661,278
Essex Property Trust, Inc.		2,310		531,069
UDR, Inc.		11,764		400,329
Camden Property Trust		4,640		362,523
Mid-America Apartment Communities, Inc.		4,354		336,434
Apartment Investment & Management Co. — Class A		8,484		333,930
American Campus Communities, Inc.		7,133		305,792
Home Properties, Inc.		3,999		277,091
American Homes 4 Rent — Class A		15,363		254,258
Post Properties, Inc.		4,315		245,653
Education Realty Trust, Inc.		5,111		180,827
Associated Estates Realty Corp.		6,740		166,343
Starwood Waypoint Residential Trust		5,262		136,023
Total REITs-Apartments				4,900,854
REITs-HEALTH CARE - 9.2%
Health Care REIT, Inc.		9,224		713,568
Ventas, Inc.		9,244		674,997
HCP, Inc.		14,405		622,440
Omega Healthcare Investors, Inc.		8,026		325,615
Senior Housing Properties Trust		14,008		310,838
Healthcare Trust of America, Inc. — Class A		9,166		255,365
Medical Properties Trust, Inc.		16,259		239,658
Healthcare Realty Trust, Inc.		8,253		229,268
National Health Investors, Inc.		3,200		227,232
Sabra Health Care REIT, Inc.		5,970		197,906
Aviv REIT, Inc.		5,120		186,880
LTC Properties, Inc.		3,964		182,344
Physicians Realty Trust		8,710		153,383
Total REITs-Health Care				4,319,494
REITs-SHOPPING CENTERS - 8.0%
Kimco Realty Corp.		16,836		452,046
Federal Realty Investment Trust		3,055		449,727
Brixmor Property Group, Inc.		14,520		385,506
Regency Centers Corp.		5,185		352,787
DDR Corp.		18,934		352,551
Weingarten Realty Investors		7,923		285,070
Equity One, Inc.		9,204		245,655
WP GLIMCHER, Inc.		14,185		235,897
Acadia Realty Trust		6,140		214,163
Kite Realty Group Trust		7,460		210,148
Urban Edge Properties		8,853		209,816
Retail Opportunity Investments Corp.		9,810		179,523
Ramco-Gershenson Properties Trust		8,710		162,006
Total REITs-Shopping Centers				3,734,895
REITs-MORTGAGE - 7.3%
Annaly Capital Management, Inc.		40,688		423,156
American Capital Agency Corp.		17,303		369,073
Starwood Property Trust, Inc.		13,130		319,059

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
REAL ESTATE FUND

	Shares		Value
NorthStar Realty Finance Corp.		17,438	$	315,977
Two Harbors Investment Corp.		25,268		268,346
MFA Financial, Inc.		29,331		230,542
Colony Capital, Inc. — Class A		8,860		229,651
Invesco Mortgage Capital, Inc.		12,034		186,888
Hatteras Financial Corp.		9,917		180,093
PennyMac Mortgage Investment Trust		8,081		172,044
Redwood Trust, Inc.		9,120		162,974
CYS Investments, Inc.		18,153		161,743
Capstead Mortgage Corp.		12,195		143,535
iStar Financial, Inc.*		11,040		143,520
Western Asset Mortgage Capital Corp.1		7,140		107,671
Total REITs-Mortgage				3,414,272
REITs-HOTELS - 7.2%
Host Hotels & Resorts, Inc.		25,614		516,890
Hospitality Properties Trust		9,203		303,607
LaSalle Hotel Properties		7,186		279,248
RLJ Lodging Trust		8,768		274,526
Sunstone Hotel Investors, Inc.		15,119		252,034
Pebblebrook Hotel Trust		5,400		251,478
Strategic Hotels & Resorts, Inc.*		20,218		251,310
Ryman Hospitality Properties, Inc.		3,940		239,985
DiamondRock Hospitality Co.		15,943		225,275
Chesapeake Lodging Trust		5,640		190,801
Hersha Hospitality Trust		23,593		152,647
Summit Hotel Properties, Inc.		10,800		151,956
Chatham Lodging Trust		5,030		147,932
Ashford Hospitality Trust, Inc.		13,710		131,890
Total REITs-Hotels				3,369,579
REITs-REGIONAL MALLS - 6.9%
Simon Property Group, Inc.		5,641		1,103,605
General Growth Properties, Inc.		23,097		682,516
Macerich Co.		5,650		476,465
Taubman Centers, Inc.		3,893		300,267
Tanger Factory Outlet Centers, Inc.		7,206		253,435
CBL & Associates Properties, Inc.		12,711		251,678
Pennsylvania Real Estate Investment Trust		7,569		175,828
Total REITs-Regional Malls				3,243,794
REITs-STORAGE - 4.5%
Public Storage		4,153		818,722
Extra Space Storage, Inc.		5,859		395,893
Iron Mountain, Inc.		10,040		366,259
CubeSmart		11,287		272,581
Sovran Self Storage, Inc.		2,755		258,805
Total REITs-Storage				2,112,260
REITs-WAREHOUSE/INDUSTRIES - 3.5%
Prologis, Inc.		14,918		649,828
DCT Industrial Trust, Inc.		6,990		242,273
First Industrial Realty Trust, Inc.		9,886		211,857
EastGroup Properties, Inc.		3,240		194,854
Chambers Street Properties		23,768		187,292
CyrusOne, Inc.		4,750		147,820
Total REITs-Warehouse/Industries				1,633,924
REITs-SINGLE TENANT - 2.8%
Realty Income Corp.		8,999		464,348
National Retail Properties, Inc.		7,781		318,788
Spirit Realty Capital, Inc.		25,142		303,715
Select Income REIT		8,120		202,919
Total REITs-Single Tenant				1,289,770
REITs-MANUFACTURED HOMES - 1.2%
Equity LifeStyle Properties, Inc.		5,362		294,642
Sun Communities, Inc.		3,901		260,275
Total REITs-Manufactured Homes				554,917
Total REITs				42,413,939
REAL ESTATE - 8.0%
REAL ESTATE MANAGEMENT/SERVICES - 5.1%
CBRE Group, Inc. — Class A*		13,144		508,804
Jones Lang LaSalle, Inc.		2,333		397,543
WP Carey, Inc.		5,422		368,696
Realogy Holdings Corp.*		7,704		350,378
Altisource Residential Corp.		14,800		308,728
E-House China Holdings Ltd. ADR		51,070		277,310
Kennedy-Wilson Holdings, Inc.		8,126		212,414
Total Real Estate Management/Services				2,423,873
REAL ESTATE OPERATIONS/DEVELOPMENT - 2.9%
Howard Hughes Corp.*		2,292		355,306
Brookfield Asset Management, Inc. — Class A		6,120		328,093
Forest City Enterprises, Inc. — Class A*		12,072		308,077
Alexander & Baldwin, Inc.		4,820		208,128
St. Joe Co.*		9,915		184,022
Total Real Estate Operations/Development				1,383,626
Total Real Estate				3,807,499
ENTERTAINMENT - 0.6%
CASINO SERVICES - 0.6%
Gaming and Leisure Properties, Inc.		7,613		280,691
DIVERSIFIED FINANCIAL SERVICES - 0.5%
INVESTMENT MANAGEMENT/ADVISORY SERVICES - 0.5%
Altisource Portfolio Solutions S.A.*,1		17,856		229,807
Total Common Stocks
(Cost $38,309,427)				46,731,936

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
REAL ESTATE FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	127,316	$	127,316
Total Repurchase Agreement
(Cost $127,316)				127,316
SECURITIES LENDING COLLATERAL††,3 - 0.3%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		88,936		88,936
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		30,594		30,594
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		15,792		15,792
Total Securities Lending Collateral
(Cost $135,322)				135,322
Total Investments - 100.2%
(Cost $38,572,065)			$	46,994,574
Other Assets & Liabilities, net - (0.2)%				(103,144	)
Total Net Assets - 100.0%			$	46,891,430

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	REIT — Real Estate Investment Trust

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $132,470 of securities loaned (cost $38,309,427)	$	46,731,936
Repurchase agreements, at value (cost $262,638)		262,638
Total investments (cost $38,572,065)		46,994,574
Segregated cash with broker		1,978
Cash		1,043
Receivables:
Securities sold		668,646
Dividends		209,473
Fund shares sold		177,316
Securities lending income		2,325
Total assets		48,055,355
Liabilities:
Payable for:
Fund shares redeemed		939,079
Return of securities loaned		137,300
Management fees		36,896
Distribution and service fees		12,766
Transfer agent and administrative fees		10,852
Portfolio accounting fees		4,341
Miscellaneous		22,691
Total liabilities		1,163,925
Commitments and contingent liabilities (Note 10)		—
Net assets	$	46,891,430
Net assets consist of:
Paid in capital	$	56,366,707
Undistributed net investment income		344,392
Accumulated net realized loss on investments		(18,242,178	)
Net unrealized appreciation on investments		8,422,509
Net assets	$	46,891,430
A-Class:
Net assets	$	6,329,314
Capital shares outstanding		165,085
Net asset value per share	$	38.34
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.25
C-Class:
Net assets	$	2,937,409
Capital shares outstanding		84,392
Net asset value per share	$	34.81
H-Class:
Net assets	$	37,624,707
Capital shares outstanding		983,618
Net asset value per share	$	38.25

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $1,787)	$	1,252,359
Income from securities lending, net		9,547
Interest		40
Total investment income		1,261,946
Expenses:
Management fees		370,479
Transfer agent and administrative fees		108,964
Distribution and service fees:
A-Class		15,658
C-Class		27,819
H-Class		86,351
Portfolio accounting fees		43,586
Custodian fees		5,073
Trustees’ fees*		2,422
Tax expense		1,794
Line of credit fees		373
Miscellaneous		54,500
Total expenses		717,019
Net investment income		544,927
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,017,396	)
Net realized loss		(1,017,396	)
Net change in unrealized appreciation (depreciation) on:
Investments		4,374,041
Net change in unrealized appreciation (depreciation)		4,374,041
Net realized and unrealized gain		3,356,645
Net increase in net assets resulting from operations	$	3,901,572

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

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

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	544,927		$	260,925
Net realized gain (loss) on investments		(1,017,396	)		2,653,853
Net change in unrealized appreciation (depreciation) on investments		4,374,041			(2,954,093	)
Net increase (decrease) in net assets resulting from operations		3,901,572			(39,315	)
Distributions to shareholders from:
Net investment income
A-Class		(70,427	)		(69,328	)
C-Class		(29,231	)		(67,311	)
H-Class		(291,502	)		(200,042	)
Total distributions to shareholders		(391,160	)		(336,681	)
Capital share transactions:
Proceeds from sale of shares
A-Class		33,310,377			12,878,425
C-Class		30,598,523			28,309,538
H-Class		323,711,905			154,735,643
Distributions reinvested
A-Class		55,690			64,436
C-Class		28,740			64,791
H-Class		288,471			198,562
Cost of shares redeemed
A-Class		(32,058,111	)		(21,614,347	)
C-Class		(30,472,287	)		(28,623,424	)
H-Class		(308,456,378	)		(144,941,887	)
Net increase from capital share transactions		17,006,930			1,071,737
Net increase in net assets		20,517,342			695,741
Net assets:
Beginning of year		26,374,088			25,678,347
End of year	$	46,891,430		$	26,374,088
Undistributed net investment income at end of year	$	344,392		$	179,827
Capital share activity:
Shares sold
A-Class		907,893			388,565
C-Class		928,450			923,737
H-Class		8,887,538			4,583,841
Shares issued from reinvestment of distributions
A-Class		1,534			2,095
C-Class		870			2,296
H-Class		7,964			6,468
Shares redeemed
A-Class		(867,549	)		(630,360	)
C-Class		(926,436	)		(935,775	)
H-Class		(8,503,320	)		(4,297,722	)
Net increase in shares		436,944			43,145

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	33.47		$	34.43		$	30.27		$	29.06		$	24.24
Income (loss) from investment operations:
Net investment income (loss)a		.42			.65			.58			.45			.27
Net gain (loss) on investments (realized and unrealized)		4.77			(.14	)		4.18			1.07			5.17
Total from investment operations		5.19			.51			4.76			1.52			5.44
Less distributions from:
Net investment income		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Total distributions		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Net asset value, end of period	$	38.34		$	33.47		$	34.43		$	30.27		$	29.06
Total Returnb		15.58	%		1.86	%		16.03	%		5.42	%		22.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,329		$	4,124		$	12,495		$	2,364		$	3,991
Ratios to average net assets:
Net investment income (loss)		1.13	%		1.92	%		1.82	%		1.59	%		1.07	%
Total expenses		1.60	%		1.65	%		1.61	%		1.61	%		1.63	%
Portfolio turnover rate		599	%		788	%		699	%		974	%		485	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	30.64		$	31.89		$	28.29		$	27.41		$	23.11
Income (loss) from investment operations:
Net investment income (loss)a		.23			.29			.27			.22			.10
Net gain (loss) on investments (realized and unrealized)		4.26			(.07	)		3.93			.97			4.82
Total from investment operations		4.49			.22			4.20			1.19			4.92
Less distributions from:
Net investment income		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Total distributions		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Net asset value, end of period	$	34.81		$	30.64		$	31.89		$	28.29		$	27.41
Total Returnb		14.73	%		1.09	%		15.12	%		4.57	%		21.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,937		$	2,497		$	2,910		$	1,798		$	2,356
Ratios to average net assets:
Net investment income (loss)		0.70	%		0.93	%		0.92	%		0.83	%		0.42	%
Total expenses		2.35	%		2.38	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		599	%		788	%		699	%		974	%		485	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	33.40		$	34.38		$	30.23		$	29.02		$	24.22
Income (loss) from investment operations:
Net investment income (loss)a		.48			.52			.46			.42			.29
Net gain (loss) on investments (realized and unrealized)		4.69			(.03	)		4.29			1.10			5.13
Total from investment operations		5.17			.49			4.75			1.52			5.42
Less distributions from:
Net investment income		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Total distributions		(.32	)		(1.47	)		(.60	)		(.31	)		(.62	)
Net asset value, end of period	$	38.25		$	33.40		$	34.38		$	30.23		$	29.02
Total Returnb		15.55	%		1.84	%		15.95	%		5.42	%		22.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,625		$	19,753		$	10,273		$	13,511		$	22,045
Ratios to average net assets:
Net investment income (loss)		1.32	%		1.52	%		1.45	%		1.48	%		1.13	%
Total expenses		1.60	%		1.64	%		1.60	%		1.61	%		1.63	%
Portfolio turnover rate		599	%		788	%		699	%		974	%		485	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

RETAILING FUND

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

For the one-year period ended March 31, 2015, Retailing Fund Investor Class returned 19.50%, compared with 18.26% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned 12.73%.

The specialty retail segment contributed most to Fund performance, followed by the multiline retail segment. The internet software & services industry was the leading detractor from return. The distributors segment contributed least.

Fund performance for the period benefited most from Home Depot, Inc., Lowe’s Companies, Inc., and CVS Health Corp. Abercrombie & Fitch Co. — Class A, Lumber Liquidators Holdings, Inc., and Zulilly, Inc. — Class A were the largest detractors from the Fund’s performance for the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 1, 1998
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.	5.0%
Amazon.com, Inc.	4.0%
Home Depot, Inc.	3.7%
CVS Health Corp.	3.3%
Walgreens Boots Alliance, Inc.	2.9%
Lowe’s Companies, Inc.	2.6%
Costco Wholesale Corp.	2.5%
Priceline Group, Inc.	2.4%
Target Corp.	2.2%
TJX Companies, Inc.	2.2%
Top Ten Total	30.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

122 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	19.50%	17.21%	8.65%
Advisor Class Shares	19.18%	16.72%	8.17%
A-Class Shares	19.44%	16.95%	8.41%
A-Class Shares with sales charge†	13.77%	15.82%	7.88%
C-Class Shares	18.51%	16.06%	7.60%
C-Class Shares with CDSC‡	17.51%	16.06%	7.60%
S&P 500 Consumer Discretionary Index	18.26%	20.11%	10.25%
S&P 500 Index	12.73%	14.47%	8.01%

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

THE RYDEX FUNDS ANNUAL REPORT | 123

SCHEDULE OF INVESTMENTS	March 31, 2015
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.6%
RETAIL-DISCOUNT - 14.3%
Wal-Mart Stores, Inc.		47,089	$	3,873,070
Costco Wholesale Corp.		13,087		1,982,615
Target Corp.		21,414		1,757,447
Dollar General Corp.		15,191		1,145,098
Dollar Tree, Inc.*		11,879		963,921
Family Dollar Stores, Inc.		9,020		714,745
HSN, Inc.		6,687		456,254
Big Lots, Inc.		7,918		380,302
Total Retail-Discount				11,273,452
RETAIL-APPAREL/SHOE - 12.9%
L Brands, Inc.		13,477		1,270,747
Ross Stores, Inc.		10,670		1,124,191
The Gap, Inc.		24,443		1,059,115
Foot Locker, Inc.		11,737		739,431
Urban Outfitters, Inc.*		13,129		599,339
Burlington Stores, Inc.*		8,810		523,490
DSW, Inc. — Class A		11,910		439,241
American Eagle Outfitters, Inc.		25,690		438,785
Chico’s FAS, Inc.		22,317		394,788
Men’s Wearhouse, Inc.		7,321		382,156
Ascena Retail Group, Inc.*		26,186		379,959
Buckle, Inc.1		7,406		378,373
Guess?, Inc.		17,520		325,697
ANN, Inc.*		7,873		323,029
Genesco, Inc.*		4,467		318,184
Abercrombie & Fitch Co. — Class A		14,156		311,998
Brown Shoe Company, Inc.		9,140		299,792
Children’s Place, Inc.		4,401		282,500
Express, Inc.*		16,990		280,845
Finish Line, Inc. — Class A		10,846		265,944
Total Retail-Apparel/Shoe				10,137,604
E-COMMERCE/SERVICES - 10.6%
Priceline Group, Inc.*		1,578		1,837,028
Netflix, Inc.*		2,911		1,212,985
Liberty Interactive Corp. — Class A*		30,993		904,686
Ctrip.com International Ltd. ADR*		15,040		881,645
TripAdvisor, Inc.*		9,986		830,536
Expedia, Inc.		8,765		825,049
Liberty Ventures*		14,027		589,274
Groupon, Inc. — Class A*,1		70,742		510,050
Wayfair, Inc. — Class A*,1		12,200		391,864
Orbitz Worldwide, Inc.*		23,400		272,844
Total E-Commerce/Services				8,255,961
E-COMMERCE/PRODUCTS - 7.3%
Amazon.com, Inc.*		8,422		3,133,826
JD.com, Inc. ADR*		30,170		886,395
Vipshop Holdings Ltd. ADR*		26,085		767,942
zulily, Inc. — Class A*		23,976		311,448
Shutterfly, Inc.*		6,788		307,089
Lands’ End, Inc.*		7,360		264,077
Total E-Commerce/Products				5,670,777
RETAIL-DRUG STORE - 7.1%
CVS Health Corp.		24,882		2,568,072
Walgreens Boots Alliance, Inc.		26,536		2,247,068
Rite Aid Corp.*		87,497		760,349
Total Retail-Drug Store				5,575,489
RETAIL-BUILDING PRODUCTS - 6.6%
Home Depot, Inc.		25,495		2,896,486
Lowe’s Companies, Inc.		27,187		2,022,441
Lumber Liquidators Holdings, Inc.*,1		7,270		223,771
Total Retail-Building Products				5,142,698
RETAIL-MAJOR DEPARTMENT STORES - 4.6%
TJX Companies, Inc.		24,172		1,693,248
Nordstrom, Inc.		11,755		944,162
Sears Holdings Corp.*,1		12,661		523,912
JC Penney Company, Inc.*,1		47,497		399,450
Total Retail-Major Department Stores				3,560,772
RETAIL-AUTOMOBILE - 4.2%
CarMax, Inc.*		13,687		944,540
AutoNation, Inc.*		10,124		651,277
Penske Automotive Group, Inc.		10,150		522,624
Lithia Motors, Inc. — Class A		4,020		399,628
Asbury Automotive Group, Inc.*		4,490		373,119
Group 1 Automotive, Inc.		4,207		363,190
Total Retail-Automobile				3,254,378
RETAIL-AUTO PARTS - 3.9%
O’Reilly Automotive, Inc.*		5,233		1,131,584
AutoZone, Inc.*		1,650		1,125,564
Advance Auto Parts, Inc.		5,316		795,752
Total Retail-Auto Parts				3,052,900
RETAIL-REGIONAL DEPARTMENT STORES - 3.7%
Macy’s, Inc.		17,628		1,144,234
Kohl’s Corp.		12,625		987,906
Dillard’s, Inc. — Class A		4,239		578,666
Stage Stores, Inc.		9,000		206,280
Total Retail-Regional Department Stores				2,917,086

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RETAILING FUND

	Shares		Value
DISTRIBUTION/WHOLESALE - 2.6%
Genuine Parts Co.		9,573	$	892,108
LKQ Corp.*		26,643		680,995
Pool Corp.		6,050		422,048
Total Distribution/Wholesale				1,995,151
RETAIL-MISCELLANEOUS/DIVERSIFIED - 2.3%
Sally Beauty Holdings, Inc.*		16,616		571,092
CST Brands, Inc.		10,123		443,691
PriceSmart, Inc.		4,650		395,157
Five Below, Inc.*		10,210		363,170
Total Retail-Miscellaneous/Diversified				1,773,110
RETAIL-JEWELRY - 2.0%
Tiffany & Co.		9,295		818,053
Signet Jewelers Ltd.		5,293		734,615
Total Retail-Jewelry				1,552,668
RETAIL-SPORTING GOODS - 1.8%
Dick’s Sporting Goods, Inc.		11,057		630,139
Cabela’s, Inc.*		8,404		470,456
Hibbett Sports, Inc.*		5,590		274,245
Total Retail-Sporting Goods				1,374,840
RETAIL-OFFICE SUPPLIES - 1.7%
Staples, Inc.		48,157		784,237
Office Depot, Inc.*		58,209		535,523
Total Retail-Office Supplies				1,319,760
RETAIL-BEDDING - 1.7%
Bed Bath & Beyond, Inc.*		11,768		903,488
Mattress Firm Holding Corp.*		5,570		387,895
Total Retail-Bedding				1,291,383
RETAIL-CONSUMER ELECTRONICS - 1.1%
Best Buy Company, Inc.		21,855		825,900
RETAIL-GARDENING PRODUCTS - 1.0%
Tractor Supply Co.		9,352		795,481
RETAIL-VITAMINS/NUTRITIONAL SUPPLEMENTS - 1.0%
GNC Holdings, Inc. — Class A		10,601		520,191
Vitamin Shoppe, Inc.*		6,461		266,129
Total Retail-Vitamins/Nutritional Supplements				786,320
RETAIL-HOME FURNISHINGS - 1.0%
Restoration Hardware Holdings, Inc.*		4,970		492,974
Pier 1 Imports, Inc.		19,718		275,658
Total Retail-Home Furnishings				768,632
RETAIL-PERFUME & COSMETICS - 1.0%
Ulta Salon Cosmetics & Fragrance, Inc.*		5,035		759,530
RETAIL-MAIL ORDER - 0.8%
Williams-Sonoma, Inc.		7,962		634,651
RENTAL AUTO/EQUIPMENT - 0.8%
Aaron’s, Inc.		12,241		346,542
Rent-A-Center, Inc.		10,439		286,446
Total Rental Auto/Equipment				632,988
TRAVEL SERVICES - 0.7%
Qunar Cayman Islands Ltd. ADR*		14,000		577,500
RETAIL-COMPUTER EQUIPMENT - 0.7%
GameStop Corp. — Class A1		14,218		539,715
RETAIL-ARTS & CRAFTS - 0.7%
Michaels Companies, Inc.*		19,800		535,788
OIL REFINING & MARKETING - 0.6%
Murphy USA, Inc.*		6,101		441,529
FOOD-RETAIL - 0.5%
Cia Brasileira de Distribuicao ADR		13,800		411,516
DIVERSIFIED OPERATIONS - 0.5%
Liberty TripAdvisor Holdings, Inc. — Class A*		11,870		377,347
AUTO REPAIR CENTERS - 0.4%
Monro Muffler Brake, Inc.		5,350		348,018
HOME FURNISHINGS - 0.4%
Select Comfort Corp.*		9,582		330,292
RETAIL-BOOKSTORE - 0.4%
Barnes & Noble, Inc.*		12,735		302,456
RETAIL-VIDEO RENTAL - 0.4%
Outerwall, Inc.1		4,220		279,026
RETAIL-APPLIANCES - 0.3%
Conn’s, Inc.*,1		8,840		267,675
Total Common Stocks
(Cost $65,108,296)				77,762,393

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
RETAILING FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	723,263	$	723,263
Total Repurchase Agreement
(Cost $723,263)				723,263
SECURITIES LENDING COLLATERAL††,3 - 2.9%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,471,340		1,471,340
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		506,141		506,141
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		261,251		261,251
Total Securities Lending Collateral
(Cost $2,238,732)				2,238,732
Total Investments - 103.4%
(Cost $68,070,291)			$	80,724,388
Other Assets & Liabilities, net - (3.4)%				(2,613,913	)
Total Net Assets - 100.0%			$	78,110,475

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,216,055 of securities loaned (cost $65,108,296)	$	77,762,393
Repurchase agreements, at value (cost $2,961,995)		2,961,995
Total investments (cost $68,070,291)		80,724,388
Segregated cash with broker		32,721
Receivables:
Fund shares sold		740,321
Dividends		69,939
Securities lending income		6,049
Total assets		81,573,418
Liabilities:
Payable for:
Return of securities loaned		2,271,453
Securities purchased		769,758
Fund shares redeemed		317,616
Management fees		52,626
Transfer agent and administrative fees		15,478
Distribution and service fees		10,304
Portfolio accounting fees		6,191
Miscellaneous		19,517
Total liabilities		3,462,943
Commitments and contingent liabilities (Note 10)		—
Net assets	$	78,110,475
Net assets consist of:
Paid in capital	$	72,110,951
Undistributed net investment income		32,233
Accumulated net realized loss on investments		(6,686,806	)
Net unrealized appreciation on investments		12,654,097
Net assets	$	78,110,475
Investor Class:
Net assets	$	46,282,839
Capital shares outstanding		1,645,568
Net asset value per share	$	28.13
Advisor Class:
Net assets	$	8,870,622
Capital shares outstanding		338,254
Net asset value per share	$	26.22
A-Class:
Net assets	$	19,501,936
Capital shares outstanding		726,355
Net asset value per share	$	26.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.19
C-Class:
Net assets	$	3,455,078
Capital shares outstanding		141,241
Net asset value per share	$	24.46

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $176)	$	492,935
Income from securities lending, net		27,608
Interest		40
Total investment income		520,583
Expenses:
Management fees		251,067
Transfer agent and administrative fees		73,843
Distribution and service fees:
Advisor Class		20,021
A-Class		14,997
C-Class		24,539
Portfolio accounting fees		29,537
Custodian fees		3,428
Trustees’ fees*		1,590
Line of credit fees		300
Miscellaneous		32,869
Total expenses		452,191
Net investment income		68,392
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,805,839
Net realized gain		1,805,839
Net change in unrealized appreciation (depreciation) on:
Investments		5,758,303
Net change in unrealized appreciation (depreciation)		5,758,303
Net realized and unrealized gain		7,564,142
Net increase in net assets resulting from operations	$	7,632,534

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

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

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	68,392		$	(67,490	)
Net realized gain (loss) on investments		1,805,839			(2,783,052	)
Net change in unrealized appreciation (depreciation) on investments		5,758,303			558,351
Net increase (decrease) in net assets resulting from operations		7,632,534			(2,292,191	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		60,134,467			246,351,051
Advisor Class		46,492,511			32,015,902
A-Class		35,188,984			16,192,814
C-Class		23,269,330			25,676,530
Cost of shares redeemed
Investor Class		(83,827,188	)		(192,663,560	)
Advisor Class		(44,004,920	)		(29,499,902	)
A-Class		(19,080,379	)		(15,667,077	)
C-Class		(22,833,190	)		(25,431,108	)
Net increase (decrease) from capital share transactions		(4,660,385	)		56,974,650
Net increase in net assets		2,972,149			54,682,459
Net assets:
Beginning of year		75,138,326			20,455,867
End of year	$	78,110,475		$	75,138,326
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	32,233		$	(36,159	)
Capital share activity:
Shares sold
Investor Class		2,329,184			10,597,354
Advisor Class		1,959,097			1,535,340
A-Class		1,439,831			747,562
C-Class		1,069,690			1,307,238
Shares redeemed
Investor Class		(3,453,617	)		(8,575,213	)
Advisor Class		(1,865,868	)		(1,423,331	)
A-Class		(804,635	)		(736,239	)
C-Class		(1,049,685	)		(1,291,235	)
Net increase (decrease) in shares		(376,003	)		2,161,476

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	23.54		$	19.62		$	17.45		$	14.66		$	12.75
Income (loss) from investment operations:
Net investment income (loss)a		.11			—	b		.09			.01			.05
Net gain (loss) on investments (realized and unrealized)		4.48			3.92			2.08			2.79			1.89
Total from investment operations		4.59			3.92			2.17			2.80			1.94
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)
Total distributions		—			—			—			(.01	)		(.03	)
Net asset value, end of period	$	28.13		$	23.54		$	19.62		$	17.45		$	14.66
Total Returnc		19.50	%		19.98	%		12.44	%		19.14	%		15.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46,283		$	65,195		$	14,671		$	34,802		$	3,776
Ratios to average net assets:
Net investment income (loss)		0.42	%		0.01	%		0.51	%		0.04	%		0.34	%
Total expenses		1.33	%		1.37	%		1.35	%		1.34	%		1.39	%
Portfolio turnover rate		395	%		671	%		472	%		822	%		1,062	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	22.00		$	18.45		$	16.45		$	13.91		$	12.14
Income (loss) from investment operations:
Net investment income (loss)a		.01			(.14	)		(.01	)		(.09	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		4.21			3.69			2.01			2.64			1.87
Total from investment operations		4.22			3.55			2.00			2.55			1.80
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)
Total distributions		—			—			—			(.01	)		(.03	)
Net asset value, end of period	$	26.22		$	22.00		$	18.45		$	16.45		$	13.91
Total Returnc		19.18	%		19.24	%		12.16	%		18.38	%		14.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,871		$	5,391		$	2,454		$	3,979		$	1,583
Ratios to average net assets:
Net investment income (loss)		0.05	%		(0.64	%)		(0.05	%)		(0.66	%)		(0.58	%)
Total expenses		1.83	%		1.87	%		1.85	%		1.84	%		1.89	%
Portfolio turnover rate		395	%		671	%		472	%		822	%		1,062	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	22.48		$	18.79		$	16.77		$	14.14		$	12.31
Income (loss) from investment operations:
Net investment income (loss)a		.06			(.09	)		.03			(.03	)		.18
Net gain (loss) on investments (realized and unrealized)		4.31			3.78			1.99			2.67			1.68
Total from investment operations		4.37			3.69			2.02			2.64			1.86
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)
Total distributions		—			—			—			(.01	)		(.03	)
Net asset value, end of period	$	26.85		$	22.48		$	18.79		$	16.77		$	14.14
Total Returnc		19.44	%		19.64	%		12.05	%		18.71	%		15.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,502		$	2,049		$	1,500		$	5,697		$	517
Ratios to average net assets:
Net investment income (loss)		0.25	%		(0.42	%)		0.20	%		(0.18	%)		1.42	%
Total expenses		1.58	%		1.62	%		1.59	%		1.58	%		1.64	%
Portfolio turnover rate		395	%		671	%		472	%		822	%		1,062	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	20.64		$	17.40		$	15.62		$	13.27		$	11.65
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.23	)		(.06	)		(.13	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		4.01			3.47			1.84			2.49			1.76
Total from investment operations		3.82			3.24			1.78			2.36			1.65
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)
Total distributions		—			—			—			(.01	)		(.03	)
Net asset value, end of period	$	24.46		$	20.64		$	17.40		$	15.62		$	13.27
Total Returnc		18.51	%		18.62	%		11.40	%		17.83	%		14.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,455		$	2,503		$	1,831		$	2,603		$	2,705
Ratios to average net assets:
Net investment income (loss)		(0.88	%)		(1.16	%)		(0.39	%)		(0.96	%)		(0.96	%)
Total expenses		2.34	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		395	%		671	%		472	%		822	%		1,062	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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, and PC hardware and peripherals companies (“technology companies”).

For the one-year period ended March 31, 2015, Technology Fund Investor Class returned 9.53%, compared with 18.11% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 12.73%.

The semiconductors & semiconductor equipment industry was the largest contributor to return, followed by the software industry. The internet software & services segment detracted most from return, followed by the media segment.

Top contributing holdings were Apple, Inc., Facebook, Inc. — Class A, and Skyworks Solutions, Inc. SINA Corp., Qihoo 360 Technology Company Ltd. ADR, and SouFun Holdings Ltd. ADR were the holdings detracting most from performance for the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.9%
Microsoft Corp.	2.6%
Facebook, Inc. — Class A	2.3%
Oracle Corp.	2.0%
International Business Machines Corp.	1.8%
Intel Corp.	1.8%
Cisco Systems, Inc.	1.7%
QUALCOMM, Inc.	1.5%
Google, Inc. — Class C	1.5%
Google, Inc. — Class A	1.5%
Top Ten Total	20.6%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 131

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	9.53%	11.15%	7.06%
Advisor Class Shares	9.00%	10.60%	6.52%
A-Class Shares	9.28%	10.85%	6.72%
A-Class Shares with sales charge†	4.10%	9.78%	6.21%
C-Class Shares	8.52%	10.05%	5.99%
C-Class Shares with CDSC‡	7.52%	10.05%	5.99%
S&P 500 Information Technology Index	18.11%	14.55%	9.77%
S&P 500 Index	12.73%	14.47%	8.01%

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

132 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.7%
ELECTRONIC COMPONENTS-SEMICONDUCTOR - 10.2%
Intel Corp.		20,254	$	633,342
Texas Instruments, Inc.		6,976		398,923
Micron Technology, Inc.*		10,264		278,462
Avago Technologies Ltd.		2,112		268,182
Broadcom Corp. — Class A		5,993		259,467
Skyworks Solutions, Inc.		2,289		224,986
Altera Corp.		4,770		204,681
ARM Holdings plc ADR		4,140		204,102
Freescale Semiconductor Ltd.*		4,470		182,197
Xilinx, Inc.		4,088		172,922
NVIDIA Corp.		8,093		169,346
Microchip Technology, Inc.		3,291		160,930
IPG Photonics Corp.*		1,270		117,729
ON Semiconductor Corp.*		9,534		115,457
Cavium, Inc.*		1,540		109,063
Cree, Inc.*		2,865		101,679
Ambarella, Inc.*,1		1,150		87,067
Total Electronic Components-Semiconductor				3,688,535
APPLICATIONS SOFTWARE - 7.8%
Microsoft Corp.		22,867		929,657
salesforce.com, Inc.*		5,124		342,334
Intuit, Inc.		2,746		266,252
Check Point Software Technologies Ltd.*		2,800		229,516
Red Hat, Inc.*		2,717		205,813
ServiceNow, Inc.*		2,270		178,831
Citrix Systems, Inc.*		2,641		168,681
NetSuite, Inc.*		1,580		146,561
Tableau Software, Inc. — Class A*		1,510		139,705
Nuance Communications, Inc.*		8,060		115,661
PTC, Inc.*		3,003		108,619
Total Applications Software				2,831,630
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 6.1%
QUALCOMM, Inc.		7,998		554,580
NXP Semiconductor N.V.*		2,639		264,850
Taiwan Semiconductor Manufacturing Company Ltd. ADR		10,537		247,409
Analog Devices, Inc.		3,780		238,140
Marvell Technology Group Ltd.		15,020		220,794
Linear Technology Corp.		3,696		172,973
Maxim Integrated Products, Inc.		4,586		159,639
Cypress Semiconductor Corp.		7,570		106,813
Atmel Corp.		11,405		93,863
Integrated Device Technology, Inc.*		4,453		89,149
Cirrus Logic, Inc.*		2,210		73,505
Total Semiconductor Components-Integrated Circuit				2,221,715
COMPUTER SERVICES - 6.0%
International Business Machines Corp.		4,128		662,544
Cognizant Technology Solutions Corp. — Class A*		5,170		322,556
Accenture plc — Class A		3,197		299,527
Infosys Ltd. ADR		6,374		223,600
Computer Sciences Corp.		2,396		156,411
Amdocs Ltd.		2,860		155,584
Teradata Corp.*		3,075		135,731
DST Systems, Inc.		1,030		114,031
MAXIMUS, Inc.		1,420		94,799
Total Computer Services				2,164,783
COMPUTERS - 5.6%
Apple, Inc.		11,302		1,406,308
Hewlett-Packard Co.		12,475		388,721
BlackBerry Ltd.*		22,588		201,711
Total Computers				1,996,740
WEB PORTALS/ISP - 5.6%
Google, Inc. — Class C*		971		532,107
Google, Inc. — Class A*		951		527,520
Yahoo!, Inc.*		7,660		340,372
Baidu, Inc. ADR*		1,326		276,338
SINA Corp.*		6,611		212,610
AOL, Inc.*		2,350		93,084
Total Web Portals/ISP				1,982,031
COMMERCIAL SERVICES-FINANCE - 4.9%
MasterCard, Inc. — Class A		5,974		516,094
Automatic Data Processing, Inc.		3,843		329,115
FleetCor Technologies, Inc.*		1,370		206,760
Western Union Co.		8,561		178,154
Vantiv, Inc. — Class A*		3,690		139,113
Total System Services, Inc.		3,620		138,103
Global Payments, Inc.		1,500		137,520
WEX, Inc.*		1,070		114,875
Total Commercial Services-Finance				1,759,734
ENTERPRISE SOFTWARE/SERVICES - 4.8%
Oracle Corp.		16,535		713,485
SAP SE ADR		3,148		227,191
Workday, Inc. — Class A*		2,460		207,649
CA, Inc.		6,252		203,878
Ultimate Software Group, Inc.*		712		121,008
Informatica Corp.*		2,608		114,374
Qlik Technologies, Inc.*		2,830		88,098
Advent Software, Inc.		1,540		67,929
Total Enterprise Software/Services				1,743,612
INTERNET CONTENT-ENTERTAINMENT - 3.5%
Facebook, Inc. — Class A*		9,980		820,507
Twitter, Inc.*		6,230		311,998

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
TECHNOLOGY FUND

	Shares		Value
Pandora Media, Inc.*		6,264	$	101,539
Total Internet Content-Entertainment				1,234,044
COMPUTERS-MEMORY DEVICES - 3.2%
EMC Corp.		14,455		369,470
Western Digital Corp.		2,530		230,255
Seagate Technology plc		4,023		209,317
NetApp, Inc.		4,790		169,853
SanDisk Corp.		2,647		168,402
Total Computers-Memory Devices				1,147,297
E-COMMERCE/PRODUCTS - 2.6%
eBay, Inc.*		7,474		431,100
Alibaba Group Holding Ltd. ADR*		4,050		337,122
MercadoLibre, Inc.		1,477		180,962
Total E-Commerce/Products				949,184
NETWORKING PRODUCTS - 2.5%
Cisco Systems, Inc.		21,764		599,054
Palo Alto Networks, Inc.*		1,310		191,365
Fortinet, Inc.*		3,647		127,463
Total Networking Products				917,882
SEMICONDUCTOR EQUIPMENT - 2.5%
Applied Materials, Inc.		11,687		263,659
ASML Holding N.V. — Class G		2,048		206,909
Lam Research Corp.		2,324		163,226
KLA-Tencor Corp.		2,668		155,518
Teradyne, Inc.		5,443		102,601
Total Semiconductor Equipment				891,913
DATA PROCESSING/MANAGEMENT - 2.4%
Fidelity National Information Services, Inc.		3,394		230,995
Fiserv, Inc.*		2,866		227,560
Paychex, Inc.		4,383		217,463
Broadridge Financial Solutions, Inc.		2,480		136,425
CommVault Systems, Inc.*		1,400		61,180
Total Data Processing/Management				873,623
ELECTRONIC COMPONENTS-MISCELLANEOUS - 2.4%
Corning, Inc.		12,001		272,182
TE Connectivity Ltd.		3,417		244,726
Flextronics International Ltd.*		11,441		145,015
Jabil Circuit, Inc.		4,840		113,159
Knowles Corp.*,1		3,340		64,362
Total Electronic Components-Miscellaneous				839,444
E-COMMERCE/SERVICES - 2.2%
SouFun Holdings Ltd. ADR		39,830		238,979
Bitauto Holdings Ltd. ADR*		4,600		234,048
Zillow Group, Inc. — Class A*		1,290		129,387
IAC/InterActiveCorp		1,580		106,603
GrubHub, Inc.*		2,240		101,674
Total E-Commerce/Services				810,691
ENTERTAINMENT SOFTWARE - 2.1%
NetEase, Inc. ADR		2,210		232,714
Electronic Arts, Inc.*		3,891		228,849
Activision Blizzard, Inc.		9,253		210,274
Take-Two Interactive Software, Inc.*		2,980		75,856
Total Entertainment Software				747,693
INTERNET SECURITY - 2.0%
Qihoo 360 Technology Company Ltd. ADR*		4,940		252,927
Symantec Corp.		8,868		207,201
VeriSign, Inc.*		2,233		149,544
FireEye, Inc.*		3,170		124,423
Total Internet Security				734,095
INTERNET CONTENT-INFORMATION/NETWORK - 1.8%
LinkedIn Corp. — Class A*		1,215		303,580
YY, Inc. ADR*,1		4,260		232,404
Yelp, Inc. — Class A*		2,090		98,962
Total Internet Content-Information/Network				634,946
TELECOMMUNICATION EQUIPMENT - 1.4%
Juniper Networks, Inc.		6,873		155,193
Harris Corp.		1,690		133,104
CommScope Holding Company, Inc.*		4,110		117,299
ARRIS Group, Inc.*		3,560		102,866
Total Telecommunication Equipment				508,462
WIRELESS EQUIPMENT - 1.4%
Nokia Oyj ADR		27,452		208,087
Motorola Solutions, Inc.		2,990		199,343
Aruba Networks, Inc.*		3,482		85,274
Total Wireless Equipment				492,704
COMPUTERS-INTEGRATED SYSTEMS - 1.2%
NCR Corp.*		3,980		117,449
Brocade Communications Systems, Inc.		9,698		115,067
Jack Henry & Associates, Inc.		1,540		107,631
VeriFone Systems, Inc.*		2,910		101,530
Total Computers-Integrated Systems				441,677
COMPUTER AIDED DESIGN - 1.1%
Autodesk, Inc.*		3,167		185,713
ANSYS, Inc.*		1,440		126,994
Aspen Technology, Inc.*		2,570		98,919
Total Computer Aided Design				411,626
ELECTRONIC MEASURING INSTRUMENTS - 1.0%
Trimble Navigation Ltd.*		5,283		133,132
Keysight Technologies, Inc.*		3,460		128,539
FLIR Systems, Inc.		3,400		106,352
Total Electronic Measuring Instruments				368,023

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
TECHNOLOGY FUND

	Shares		Value
POWER CONVERTER/SUPPLY EQUIPMENT - 0.9%
Canadian Solar, Inc.*		6,930	$	231,393
SunPower Corp. — Class A*		3,330		104,262
Total Power Converter/Supply Equipment				335,655
COMPUTER SOFTWARE - 0.9%
Akamai Technologies, Inc.*		2,595		184,362
Rackspace Hosting, Inc.*		2,673		137,900
Total Computer Software				322,262
SOFTWARE TOOLS - 0.9%
VMware, Inc. — Class A*		3,796		311,310
ELECTRONIC FORMS - 0.9%
Adobe Systems, Inc.*		4,178		308,921
ENERGY-ALTERNATE SOURCES - 0.7%
SunEdison, Inc.*		5,522		132,528
First Solar, Inc.*		2,152		128,668
Total Energy-Alternate Sources				261,196
ELECTRONIC DESIGN AUTOMATIC - 0.7%
Synopsys, Inc.*		3,000		138,960
Cadence Design Systems, Inc.*		6,544		120,671
Total Electronic Design Automatic				259,631
ELECTRONIC PARTS DISTRIBUTION - 0.7%
Avnet, Inc.		2,874		127,893
Arrow Electronics, Inc.*		2,066		126,336
Total Electronic Parts Distribution				254,229
COMPUTER GRAPHICS - 0.7%
CyberArk Software Ltd.*		4,330		240,618
ADVERTISING AGENCIES - 0.7%
Alliance Data Systems Corp.*		809		239,666
CONSULTING SERVICES - 0.6%
Gartner, Inc.*		1,470		123,260
Booz Allen Hamilton Holding Corp.		3,730		107,946
Total Consulting Services				231,206
ELECTRIC PRODUCTS-MISCELLANEOUS - 0.6%
Mobileye N.V.*		5,400		226,962
ELECTRONIC CONNECTORS - 0.6%
Amphenol Corp. — Class A		3,751		221,046
OFFICE AUTOMATION & EQUIPMENTS - 0.5%
Xerox Corp.		15,373		197,543
WEB HOSTING/DESIGN - 0.5%
Equinix, Inc.		846		196,991
COMPUTERS-OTHER - 0.5%
3D Systems Corp.*,1		4,171		114,369
Stratasys Ltd.*,1		1,330		70,197
Total Computers-Other				184,566
COMPUTERS-PERIPHERAL EQUIPMENT - 0.5%
Synaptics, Inc.*		1,158		94,151
Lexmark International, Inc. — Class A		2,040		86,374
Total Computers-Peripheral Equipment				180,525
TELECOMMUNICATION SERVICES - 0.5%
Qorvo, Inc.*		2,257		179,883
FINANCE-CREDIT CARD - 0.4%
Visa, Inc. — Class A		2,484		162,478
INTERNET INFRASTRUCTURE SOFTWARE - 0.4%
F5 Networks, Inc.*		1,398		160,686
TELECOMMUNICATION EQUIPMENTS FIBER OPTICS - 0.4%
JDS Uniphase Corp.*		6,709		88,022
Ciena Corp.*		3,671		70,887
Total Telecommunication Equipments Fiber Optics				158,909
MULTIMEDIA - 0.4%
FactSet Research Systems, Inc.		900		143,280
COMMERCIAL SERVICES - 0.4%
CDK Global, Inc.		3,024		141,402
INTERNET APPLICATION SOFTWARE - 0.4%
Splunk, Inc.*		2,330		137,936
MACHINERY-GENERAL INDUSTRY - 0.3%
Zebra Technologies Corp. — Class A*		1,320		119,744
DISTRIBUTION/WHOLESALE - 0.3%
Ingram Micro, Inc. — Class A*		4,210		105,755
COMMUNICATIONS SOFTWARE - 0.3%
SolarWinds, Inc.*		2,050		105,042
INSTRUMENTS-SCIENTIFIC - 0.3%
FEI Co.		1,280		97,715
INTERNET INCUBATORS - 0.2%
HomeAway, Inc.*		2,870		86,588
TRANSACTIONAL SOFTWARE - 0.2%
Solera Holdings, Inc.		1,610		83,173
Total Common Stocks
(Cost $23,124,938)				36,047,002

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
TECHNOLOGY FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,2 - 1.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15	$	268,727	$	268,727
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		92,443		92,443
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		47,716		47,716
Total Securities Lending Collateral
(Cost $408,886)				408,886
Total Investments - 100.8%
(Cost $23,533,824)			$	36,455,888
Other Assets & Liabilities, net - (0.8)%				(296,854	)
Total Net Assets - 100.0%			$	36,159,034

*	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 March 31, 2015 — See Note 6.
2	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $407,651 of securities loaned (cost $23,124,938)	$	36,047,002
Repurchase agreements, at value (cost $408,886)		408,886
Total investments (cost $23,533,824)		36,455,888
Segregated cash with broker		5,976
Cash		5,942
Receivables:
Securities sold		402,528
Fund shares sold		105,555
Dividends		20,817
Securities lending income		1,608
Total assets		36,998,314
Liabilities:
Line of credit		260,000
Payable for:
Return of securities loaned		414,863
Fund shares redeemed		104,245
Management fees		26,661
Transfer agent and administrative fees		7,841
Distribution and service fees		5,573
Portfolio accounting fees		3,136
Miscellaneous		16,961
Total liabilities		839,280
Commitments and contingent liabilities (Note 10)		—
Net assets	$	36,159,034
Net assets consist of:
Paid in capital	$	30,833,231
Accumulated net investment loss		(178,794	)
Accumulated net realized loss on investments		(7,417,467	)
Net unrealized appreciation on investments		12,922,064
Net assets	$	36,159,034
Investor Class:
Net assets	$	20,458,431
Capital shares outstanding		334,110
Net asset value per share	$	61.23
Advisor Class:
Net assets	$	2,831,064
Capital shares outstanding		50,068
Net asset value per share	$	56.54
A-Class:
Net assets	$	9,959,635
Capital shares outstanding		172,651
Net asset value per share	$	57.69
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.57
C-Class:
Net assets	$	2,909,904
Capital shares outstanding		54,393
Net asset value per share	$	53.50

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $6,073)	$	400,532
Income from securities lending, net		23,663
Interest		46
Total investment income		424,241
Expenses:
Management fees		305,477
Transfer agent and administrative fees		89,846
Distribution and service fees:
Advisor Class		25,712
A-Class		10,624
C-Class		23,398
Portfolio accounting fees		35,938
Custodian fees		4,192
Trustees’ fees*		2,757
Line of credit fees		195
Tax expense		85
Miscellaneous		46,283
Total expenses		544,507
Net investment loss		(120,266	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		848,143
Net realized gain		848,143
Net change in unrealized appreciation (depreciation) on:
Investments		516,435
Net change in unrealized appreciation (depreciation)		516,435
Net realized and unrealized gain		1,364,578
Net increase in net assets resulting from operations	$	1,244,312

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

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

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(120,266	)	$	(99,486	)
Net realized gain on investments		848,143			1,519,835
Net change in unrealized appreciation (depreciation) on investments		516,435			5,854,636
Net increase in net assets resulting from operations		1,244,312			7,274,985
Capital share transactions:
Proceeds from sale of shares
Investor Class		78,754,571			90,386,817
Advisor Class		30,346,789			19,872,814
A-Class		18,659,402			17,950,430
C-Class		21,038,252			25,610,311
Cost of shares redeemed
Investor Class		(92,812,678	)		(70,456,671	)
Advisor Class		(34,217,663	)		(15,430,118	)
A-Class		(14,187,804	)		(15,058,469	)
C-Class		(21,139,205	)		(25,000,548	)
Net increase (decrease) from capital share transactions		(13,558,336	)		27,874,566
Net increase (decrease) in net assets		(12,314,024	)		35,149,551
Net assets:
Beginning of year		48,473,058			13,323,507
End of year	$	36,159,034		$	48,473,058
Accumulated net investment loss at end of year	$	(178,794	)	$	(58,528	)
Capital share activity:
Shares sold
Investor Class		1,362,713			1,785,118	*
Advisor Class		573,554			400,929	*
A-Class		328,301			363,346	*
C-Class		413,675			589,677	*
Shares redeemed
Investor Class		(1,616,398	)		(1,388,328	)*
Advisor Class		(656,798	)		(299,244	)*
A-Class		(266,905	)		(300,472	)*
C-Class		(416,613	)		(576,511	)*
Net increase (decrease) in shares		(278,471	)		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.

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013 c			Year Ended March 31, 2012 c			Year Ended March 31, 2011 c
Per Share Data
Net asset value, beginning of period	$	55.90		$	43.58		$	42.92		$	41.81		$	36.10
Income (loss) from investment operations:
Net investment income (loss)a		(.10	)		(.09	)		.03			(.03	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		5.43			12.41			.63			1.14			5.89
Total from investment operations		5.33			12.32			.66			1.11			5.71
Net asset value, end of period	$	61.23		$	55.90		$	43.58		$	42.92		$	41.81
Total Returnb		9.53	%		28.24	%		1.54	%		2.65	%		15.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,458		$	32,858		$	8,325		$	19,985		$	35,408
Ratios to average net assets:
Net investment income (loss)		(0.17	%)		(0.18	%)		0.10	%		(0.10	%)		(0.48	%)
Total expenses		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		280	%		321	%		324	%		487	%		393	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014 c			Year Ended March 28, 2013 c			Year Ended March 31, 2012 c			Year Ended March 31, 2011 c
Per Share Data
Net asset value, beginning of period	$	51.87		$	40.65		$	40.22		$	39.39		$	34.18
Income (loss) from investment operations:
Net investment income (loss)a		(.37	)		(.27	)		(.12	)		(.33	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		5.04			11.49			.55			1.16			5.54
Total from investment operations		4.67			11.22			.43			.83			5.21
Net asset value, end of period	$	56.54		$	51.87		$	40.65		$	40.22		$	39.39
Total Returnb		9.00	%		27.60	%		1.04	%		2.13	%		15.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,831		$	6,915		$	1,286		$	2,361		$	6,565
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.54	%)		(0.33	%)		(0.87	%)		(0.94	%)
Total expenses		1.85	%		1.87	%		1.85	%		1.85	%		1.88	%
Portfolio turnover rate		280	%		321	%		324	%		487	%		393	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014 c			Year Ended March 28, 2013 c			Year Ended March 31, 2012 c			Year Ended March 31, 2011 c
Per Share Data
Net asset value, beginning of period	$	52.79		$	41.30		$	40.76		$	39.83		$	34.47
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.23	)		(.09	)		(.30	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		5.11			11.72			.63			1.23			5.63
Total from investment operations		4.90			11.49			.54			.93			5.36
Net asset value, end of period	$	57.69		$	52.79		$	41.30		$	40.76		$	39.83
Total Returnb		9.28	%		27.79	%		1.32	%		2.33	%		15.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,960		$	5,873		$	1,998		$	7,367		$	1,725
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.47	%)		(0.27	%)		(0.76	%)		(0.73	%)
Total expenses		1.59	%		1.62	%		1.59	%		1.59	%		1.64	%
Portfolio turnover rate		280	%		321	%		324	%		487	%		393	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014 c			Year Ended March 28, 2013 c			Year Ended March 31, 2012 c			Year Ended March 31, 2011 c
Per Share Data
Net asset value, beginning of period	$	49.30		$	38.84		$	38.65		$	38.07		$	33.15
Income (loss) from investment operations:
Net investment income (loss)a		(.58	)		(.50	)		(.33	)		(.51	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		4.78			10.96			.52			1.09			5.43
Total from investment operations		4.20			10.46			.19			.58			4.92
Net asset value, end of period	$	53.50		$	49.30		$	38.84		$	38.65		$	38.07
Total Returnb		8.52	%		26.90	%		0.54	%		1.50	%		14.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,910		$	2,827		$	1,715		$	2,743		$	2,618
Ratios to average net assets:
Net investment income (loss)		(1.13	%)		(1.13	%)		(0.90	%)		(1.45	%)		(1.53	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		280	%		321	%		324	%		487	%		393	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 9 in Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

TELECOMMUNICATIONS FUND

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

For the one-year period ended March 31, 2015, Telecommunications Fund Investor Class returned 2.93%, compared with 4.09% for the S&P 500 Telecommunications Services Index. The broader S&P 500 Index returned 12.73%.

Communications equipment contributed most to the Fund’s return, followed by diversified telecommunication services. The wireless telecommunication services industry was the only detractor from return.

Cisco Systems, Inc., Palo Alto Networks, Inc., and Level 3 Communications, Inc. were the strongest performers for the period. VimpelCom Ltd. ADR, QUALCOMM, Inc., and Sprint Corp. detracted most from performance during the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 1, 1998
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.	8.6%
AT&T, Inc.	7.9%
Cisco Systems, Inc.	7.1%
QUALCOMM, Inc.	6.4%
Crown Castle International Corp.	3.1%
T-Mobile US, Inc.	3.0%
CenturyLink, Inc.	2.7%
Level 3 Communications, Inc.	2.6%
Sprint Corp.	2.5%
SBA Communications Corp. — Class A	2.4%
Top Ten Total	46.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 141

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	2.93%	4.20%	2.58%
Advisor Class Shares	2.42%	3.71%	2.10%
A-Class Shares	2.75%	3.97%	2.31%
A-Class Shares with sales charge†	-2.13%	2.97%	1.82%
C-Class Shares	1.86%	3.39%	1.66%
C-Class Shares with CDSC‡	0.87%	3.39%	1.66%
S&P 500 Telecommunication Services Index	4.09%	12.75%	7.54%
S&P 500 Index	12.73%	14.47%	8.01%

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

142 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
TELECOMMUNICATIONS FUND

	Shares			Value
COMMON STOCKS† - 98.9%
TELEPHONE-INTEGRATED - 25.3%
Verizon Communications, Inc.		4,280		$	208,136
AT&T, Inc.		5,838			190,611
CenturyLink, Inc.		1,895			65,472
Frontier Communications Corp.		5,433			38,303
Windstream Holdings, Inc.		4,160			30,784
Telefonica Brasil S.A. ADR		1,849			28,271
Telefonica S.A. ADR		1,922			27,581
Telephone & Data Systems, Inc.		949			23,630
Total Telephone-Integrated					612,788
NETWORKING PRODUCTS - 14.8%
Cisco Systems, Inc.		6,246			171,920
Palo Alto Networks, Inc.*		350			51,128
Arista Networks, Inc.*		443			31,245
Telefonaktiebolaget LM Ericsson ADR		2,272			28,514
Infinera Corp.*		1,200			23,604
Polycom, Inc.*		1,467			19,658
Ruckus Wireless, Inc.*		1,225			15,766
NETGEAR, Inc.*		478			15,717
Total Networking Products					357,552
CELLULAR TELECOMMUNICATIONS - 13.8%
T-Mobile US, Inc.*		2,320	��		73,521
Sprint Corp.*		12,938			61,326
Vodafone Group plc ADR		1,251			40,883
America Movil SAB de C.V. — Class L ADR		1,970			40,306
China Mobile Ltd. ADR		552			35,897
SK Telecom Company Ltd. ADR		1,097			29,849
Rogers Communications, Inc. — Class B		790			26,449
Tim Participacoes S.A. ADR		1,497			24,820
Total Cellular Telecommunications					333,051
WIRELESS EQUIPMENT - 10.9%
SBA Communications Corp. — Class A*		489			57,262
Motorola Solutions, Inc.		842			56,135
Nokia Oyj ADR		4,072			30,866
Sierra Wireless, Inc.*		860			28,457
ViaSat, Inc.*		405			24,142
Aruba Networks, Inc.*		983			24,074
Ubiquiti Networks, Inc.		772			22,813
InterDigital, Inc.		393			19,941
Total Wireless Equipment					263,690
TELECOMMUNICATION EQUIPMENT - 7.7%
Harris Corp.		557			43,869
Juniper Networks, Inc.		1,932			43,625
CommScope Holding Company, Inc.*		1,159			33,078
ARRIS Group, Inc.*		1,005			29,039
Plantronics, Inc.		409			21,657
ADTRAN, Inc.		760			14,189
Total Telecommunication Equipment					185,457
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 6.4%
QUALCOMM, Inc.		2,250			156,015
TELECOMMUNICATION SERVICES - 5.6%
Level 3 Communications, Inc.*		1,176			63,315
BCE, Inc.		752			31,855
VimpelCom Ltd. ADR		5,169			27,086
Consolidated Communications Holdings, Inc.		717			14,627
Total Telecommunication Services					136,883
REITs-DIVERSIFIED - 3.1%
Crown Castle International Corp.		918			75,772
COMPUTERS-INTEGRATED SYSTEMS - 2.8%
Riverbed Technology, Inc.*		1,654			34,585
Brocade Communications Systems, Inc.		2,727			32,356
Total Computers-Integrated Systems					66,941
TELECOMMUNICATION EQUIPMENT FIBER OPTICS - 2.7%
JDS Uniphase Corp.*		1,892			24,823
Finisar Corp.*		983			20,977
Ciena Corp.*		1,034			19,967
Total Telecommunication Equipment Fiber Optics					65,767
SATELLITE TELECOMMUNICATIONS - 1.9%
EchoStar Corp. — Class A*		623			32,222
Iridium Communications, Inc.*		1,468			14,254
Total Satellite Telecommunications					46,476
INTERNET INFRASTRUCTURE SOFTWARE - 1.8%
F5 Networks, Inc.*		372			42,758
COMPUTERS - 1.3%
BlackBerry Ltd.*		3,653			32,621
INTERNET CONNECTIVITY SERVICES - 0.8%
Cogent Communications Holdings, Inc.		534			18,866
Total Common Stocks
(Cost $1,469,130)					2,394,637
RIGHTS† - 0.2%
Leap Wireless International, Inc.
Expires 09/17/15†††		1,848			4,657
Telefonica S.A.
Expires 04/12/15		1,626			262
Total Rights
(Cost $4,544)					4,919

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
TELECOMMUNICATIONS FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,1 - 0.2%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	5,514	$	5,514
Total Repurchase Agreement
(Cost $5,514)				5,514
Total Investments - 99.3%
(Cost $1,479,188)			$	2,405,070
Other Assets & Liabilities, net - 0.7%				15,939
Total Net Assets - 100.0%			$	2,421,009

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $1,473,674)	$	2,399,556
Repurchase agreements, at value (cost $5,514)		5,514
Total investments (cost $1,479,188)		2,405,070
Cash		479
Receivables:
Fund shares sold		376,431
Dividends		5,212
Securities lending income		17
Total assets		2,787,209
Liabilities:
Payable for:
Securities purchased		213,923
Fund shares redeemed		146,797
Management fees		2,048
Distribution and service fees		720
Transfer agent and administrative fees		602
Portfolio accounting fees		241
Miscellaneous		1,869
Total liabilities		366,200
Commitments and contingent liabilities (Note 10)		—
Net assets	$	2,421,009
Net assets consist of:
Paid in capital	$	6,391,061
Undistributed net investment income		80,748
Accumulated net realized loss on investments		(4,976,682	)
Net unrealized appreciation on investments		925,882
Net assets	$	2,421,009
Investor Class:
Net assets	$	1,316,405
Capital shares outstanding		28,894
Net asset value per share	$	45.56
Advisor Class:
Net assets	$	151,052
Capital shares outstanding		3,632
Net asset value per share	$	41.59
A-Class:
Net assets	$	454,478
Capital shares outstanding		10,662
Net asset value per share	$	42.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	44.76
C-Class:
Net assets	$	499,074
Capital shares outstanding		12,682
Net asset value per share	$	39.35

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,863)	$	178,334
Income from securities lending, net		2,142
Interest		4
Total investment income		180,480
Expenses:
Management fees		51,014
Transfer agent and administrative fees		15,004
Distribution and service fees:
Advisor Class		10,477
A-Class		2,931
C-Class		4,802
Portfolio accounting fees		6,002
Custodian fees		704
Trustees’ fees*		495
Tax expense		85
Line of credit fees		48
Miscellaneous		8,170
Total expenses		99,732
Net investment income		80,748
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		204,448
Net realized gain		204,448
Net change in unrealized appreciation (depreciation) on:
Investments		(310,801	)
Net change in unrealized appreciation (depreciation)		(310,801	)
Net realized and unrealized loss		(106,353	)
Net decrease in net assets resulting from operations	$	(25,605	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 145

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	80,748		$	98,119
Net realized gain (loss) on investments		204,448			(73,912	)
Net change in unrealized appreciation (depreciation) on investments		(310,801	)		134,687
Net increase (decrease) in net assets resulting from operations		(25,605	)		158,894
Distributions to shareholders from:
Net investment income
Investor Class		(45,635	)		(77,513	)
Advisor Class		(14,600	)		(7,191	)
A-Class		(16,000	)		(8,359	)
C-Class		(21,884	)		(4,990	)
Total distributions to shareholders		(98,119	)		(98,053	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		18,075,159			40,052,105
Advisor Class		12,552,746			2,201,898
A-Class		4,615,685			7,692,352
C-Class		24,640,143			28,694,832
Distributions reinvested
Investor Class		44,841			76,714
Advisor Class		14,600			6,218
A-Class		16,000			8,202
C-Class		19,446			4,877
Cost of shares redeemed
Investor Class		(19,374,802	)		(40,533,973	)
Advisor Class		(12,596,170	)		(2,014,866	)
A-Class		(6,763,959	)		(5,702,771	)
C-Class		(24,414,344	)		(29,271,944	)
Net increase (decrease) from capital share transactions		(3,170,655	)		1,213,644
Net increase (decrease) in net assets		(3,294,379	)		1,274,485
Net assets:
Beginning of year		5,715,388			4,440,903
End of year	$	2,421,009		$	5,715,388
Undistributed net investment income at end of year	$	80,748		$	98,119
Capital share activity:
Shares sold
Investor Class		392,906			934,805	*
Advisor Class		294,638			55,119	*
A-Class		105,986			186,923	*
C-Class		611,975			759,823	*
Shares issued from reinvestment of distributions
Investor Class		971			1,788	*
Advisor Class		346			157	*
A-Class		370			203	*
C-Class		486			129	*
Shares redeemed
Investor Class		(419,860	)		(954,582	)*
Advisor Class		(298,908	)		(51,252	)*
A-Class		(157,255	)		(139,957	)*
C-Class		(606,562	)		(774,952	)*
Net increase (decrease) in shares		(74,907	)		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.

146 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	45.51		$	40.76		$	41.52		$	47.13		$	41.18
Income (loss) from investment operations:
Net investment income (loss)a		.72			1.06			.81			1.23			.30
Net gain (loss) on investments (realized and unrealized)		.63			4.26			(.67	)		(5.52	)		5.89
Total from investment operations		1.35			5.32			.14			(4.29	)		6.19
Less distributions from:
Net investment income		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Total distributions		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Net asset value, end of period	$	45.56		$	45.51		$	40.76		$	41.52		$	47.13
Total Returnb		2.93	%		13.12	%		0.50	%		(8.77	%)		15.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,316		$	2,497		$	2,970		$	7,028		$	48,089
Ratios to average net assets:
Net investment income (loss)		1.55	%		2.47	%		2.06	%		2.86	%		0.73	%
Total expenses		1.36	%		1.38	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		804	%		1,271	%		1,550	%		793	%		1,008	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	41.86		$	37.75		$	38.69		$	44.21		$	38.82
Income (loss) from investment operations:
Net investment income (loss)a		.60			.29			.57			.66			.09
Net gain (loss) on investments (realized and unrealized)		.43			4.39			(.61	)		(4.86	)		5.54
Total from investment operations		1.03			4.68			(.04	)		(4.20	)		5.63
Less distributions from:
Net investment income		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Total distributions		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Net asset value, end of period	$	41.59		$	41.86		$	37.75		$	38.69		$	44.21
Total Returnb		2.42	%		12.53	%		(0.01	%)		(9.15	%)		14.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	151		$	316		$	133		$	200		$	695
Ratios to average net assets:
Net investment income (loss)		1.40	%		0.74	%		1.59	%		1.65	%		0.25	%
Total expenses		1.86	%		1.88	%		1.86	%		1.85	%		1.88	%
Portfolio turnover rate		804	%		1,271	%		1,550	%		793	%		1,008	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	42.74		$	38.44		$	39.27		$	44.72		$	39.21
Income (loss) from investment operations:
Net investment income (loss)a		.58			.72			.72			.54			.42
Net gain (loss) on investments (realized and unrealized)		.61			4.15			(.65	)		(4.67	)		5.33
Total from investment operations		1.19			4.87			.07			(4.13	)		5.75
Less distributions from:
Net investment income		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Total distributions		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Net asset value, end of period	$	42.63		$	42.74		$	38.44		$	39.27		$	44.72
Total Returnb		2.75	%		12.80	%		0.30	%		(8.91	%)		14.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	454		$	2,631		$	553		$	1,566		$	699
Ratios to average net assets:
Net investment income (loss)		1.35	%		1.79	%		1.98	%		1.41	%		1.01	%
Total expenses		1.60	%		1.63	%		1.61	%		1.60	%		1.64	%
Portfolio turnover rate		804	%		1,271	%		1,550	%		793	%		1,008	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	39.89		$	36.00		$	37.04		$	42.57		$	37.49
Income (loss) from investment operations:
Net investment income (loss)a		.06			.54			.48			.15			(.03	)
Net gain (loss) on investments (realized and unrealized)		.70			3.92			(.62	)		(4.36	)		5.35
Total from investment operations		.76			4.46			(.14	)		(4.21	)		5.32
Less distributions from:
Net investment income		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Total distributions		(1.30	)		(.57	)		(.90	)		(1.32	)		(.24	)
Net asset value, end of period	$	39.35		$	39.89		$	36.00		$	37.04		$	42.57
Total Returnb		1.86	%		12.49	%		(0.24	%)		(9.52	%)		14.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	499		$	271		$	784		$	672		$	2,896
Ratios to average net assets:
Net investment income (loss)		0.14	%		1.42	%		1.41	%		0.39	%		(0.07	%)
Total expenses		2.35	%		2.38	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		804	%		1,271	%		1,550	%		793	%		1,008	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split reflective February 7, 2014. See Note 9 in Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

TRANSPORTATION FUND

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

For the one-year period ended March 31, 2015, Transportation Fund Investor Class returned 16.65%, compared with 8.73% for the S&P 500 Industrials Index. The broader S&P 500 Index returned 12.73%.

The airlines segment was the largest contributor to return, followed by the road & rail segment. The marine industry contributed least.

Southwest Airlines Co., American Airlines Group, Inc., and United Continental Holdings, Inc. were the biggest contributors to performance for the period. Hertz Global Holdings, Inc., Kandi Technologies Group, Inc., and Copa Holdings S.A. — Class A detracted most from performance during the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 2, 1998
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.	4.6%
United Parcel Service, Inc. — Class B	4.5%
Ford Motor Co.	3.9%
General Motors Co.	3.7%
FedEx Corp.	3.2%
American Airlines Group, Inc.	3.0%
Delta Air Lines, Inc.	2.9%
Johnson Controls, Inc.	2.8%
CSX Corp.	2.7%
Norfolk Southern Corp.	2.6%
Top Ten Total	33.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 149

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	16.65%	16.96%	8.86%
Advisor Class Shares	16.03%	16.40%	8.33%
A-Class Shares	16.34%	16.70%	8.61%
A-Class Shares with sales charge†	10.80%	15.56%	8.09%
C-Class Shares	15.46%	15.85%	7.79%
C-Class Shares with CDSC‡	14.46%	15.85%	7.79%
S&P 500 Industrials Index	8.73%	14.51%	7.87%
S&P 500 Index	12.73%	14.47%	8.01%

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

150 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.9%
AIRLINES - 18.8%
American Airlines Group, Inc.		40,744	$	2,150,468
Delta Air Lines, Inc.		46,305		2,081,873
Southwest Airlines Co.		42,076		1,863,967
United Continental Holdings, Inc.*		26,210		1,762,622
Alaska Air Group, Inc.		15,327		1,014,341
JetBlue Airways Corp.*		44,344		853,622
Copa Holdings S.A. — Class A		8,262		834,214
Spirit Airlines, Inc.*		10,570		817,695
Ryanair Holdings plc ADR		11,100		741,147
Allegiant Travel Co. — Class A		2,399		461,304
Hawaiian Holdings, Inc.*		18,400		405,260
Virgin America, Inc.*		12,600		383,040
Total Airlines				13,369,553
AUTO/TRUCK PARTS & EQUIPMENT - 17.3%
Johnson Controls, Inc.		39,767		2,005,848
Delphi Automotive plc		18,000		1,435,320
BorgWarner, Inc.		21,227		1,283,809
TRW Automotive Holdings Corp.*		11,640		1,220,454
Lear Corp.		9,311		1,031,845
Autoliv, Inc.		7,583		893,050
Magna International, Inc.		16,380		878,951
Visteon Corp.*		7,541		726,952
Tenneco, Inc.*		11,510		660,904
Dana Holding Corp.		30,740		650,458
American Axle & Manufacturing Holdings, Inc.*		19,030		491,545
Gentherm, Inc.*		9,615		485,654
Dorman Products, Inc.*		9,690		482,078
Total Auto/Truck Parts & Equipment				12,246,868
TRANSPORT-RAIL - 15.3%
Union Pacific Corp.		30,007		3,250,057
CSX Corp.		58,630		1,941,826
Norfolk Southern Corp.		18,226		1,875,820
Kansas City Southern		10,769		1,099,300
Canadian Pacific Railway Ltd.		5,968		1,090,354
Canadian National Railway Co.		13,000		869,310
Genesee & Wyoming, Inc. — Class A*		7,866		758,597
Total Transport-Rail				10,885,264
TRANSPORT-SERVICES - 14.6%
United Parcel Service, Inc. — Class B		32,813		3,180,893
FedEx Corp.		13,767		2,277,750
CH Robinson Worldwide, Inc.		15,182		1,111,626
Expeditors International of Washington, Inc.		21,629		1,042,085
Ryder System, Inc.		8,214		779,426
XPO Logistics, Inc.*		14,500		659,315
Matson, Inc.		11,500		484,840
Hub Group, Inc. — Class A*		10,630		417,653
UTI Worldwide, Inc.*		31,320		385,236
Total Transport-Services				10,338,824
AUTO-CARS/LIGHT TRUCKS - 14.4%
Ford Motor Co.		169,576		2,736,958
General Motors Co.		70,894		2,658,525
Tesla Motors, Inc.*,1		8,687		1,639,845
Toyota Motor Corp. ADR1		6,190		865,919
Tata Motors Ltd. ADR		18,882		850,823
Fiat Chrysler Automobiles N.V.*		47,700		777,987
Honda Motor Company Ltd. ADR		21,390		700,736
Total Auto-Cars/Light Trucks				10,230,793
TRANSPORT-TRUCK - 8.4%
J.B. Hunt Transport Services, Inc.		12,398		1,058,726
Old Dominion Freight Line, Inc.*		11,501		889,027
Swift Transportation Co. — Class A*		24,580		639,572
Landstar System, Inc.		8,948		593,252
Con-way, Inc.		12,482		550,831
Knight Transportation, Inc.		16,930		545,993
Werner Enterprises, Inc.		16,349		513,522
Heartland Express, Inc.		20,900		496,584
Saia, Inc.*		8,200		363,260
ArcBest Corp.		8,903		337,335
Total Transport-Truck				5,988,102
RENTAL AUTO/EQUIPMENT - 2.8%
Hertz Global Holdings, Inc.*		50,288		1,090,244
Avis Budget Group, Inc.*		14,874		877,789
Total Rental Auto/Equipment				1,968,033
RUBBER-TIRES - 2.2%
Goodyear Tire & Rubber Co.		35,996		974,771
Cooper Tire & Rubber Co.		13,470		577,055
Total Rubber-Tires				1,551,826
MOTORCYCLE/MOTOR SCOOTER - 1.8%
Harley-Davidson, Inc.		20,761		1,261,023
COMMERCIAL SERVICES - 1.3%
Macquarie Infrastructure Company LLC		10,800		888,732
ELECTRONIC COMPONENTS-MISCELLANEOUS - 1.1%
Gentex Corp.		44,229		809,391
TRANSPORT-MARINE - 1.0%
Kirby Corp.*		9,449		709,147
BUILDING-MOBILE HOME/MANUFACTURED HOUSE - 0.9%
Thor Industries, Inc.		10,226		646,385
Total Common Stocks
(Cost $42,720,644)				70,893,941

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
TRANSPORTATION FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	610,654	$	610,654
Total Repurchase Agreement
(Cost $610,654)				610,654
SECURITIES LENDING COLLATERAL††,3 - 3.0%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,390,758		1,390,758
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		478,421		478,421
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		246,943		246,943
Total Securities Lending Collateral
(Cost $2,116,122)				2,116,122
Total Investments - 103.8%
(Cost $45,447,420)			$	73,620,717
Other Assets & Liabilities, net - (3.8)%				(2,660,424	)
Total Net Assets - 100.0%			$	70,960,293

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,076,173 of securities loaned (cost $42,720,644)	$	70,893,941
Repurchase agreements, at value (cost $2,726,776)		2,726,776
Total investments (cost $45,447,420)		73,620,717
Segregated cash with broker		30,929
Cash		3,264
Receivables:
Fund shares sold		478,107
Securities lending income		35,696
Dividends		23,240
Total assets		74,191,953
Liabilities:
Payable for:
Return of securities loaned		2,147,050
Fund shares redeemed		946,560
Management fees		58,248
Transfer agent and administrative fees		17,132
Distribution and service fees		13,121
Portfolio accounting fees		6,853
Miscellaneous		42,696
Total liabilities		3,231,660
Commitments and contingent liabilities (Note 10)		—
Net assets	$	70,960,293
Net assets consist of:
Paid in capital	$	63,855,070
Undistributed net investment income		132,339
Accumulated net realized loss on investments		(21,200,413	)
Net unrealized appreciation on investments		28,173,297
Net assets	$	70,960,293
Investor Class:
Net assets	$	42,946,710
Capital shares outstanding		825,017
Net asset value per share	$	52.06
Advisor Class:
Net assets	$	6,249,183
Capital shares outstanding		132,609
Net asset value per share	$	47.12
A-Class:
Net assets	$	15,358,983
Capital shares outstanding		317,256
Net asset value per share	$	48.41
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.82
C-Class:
Net assets	$	6,405,417
Capital shares outstanding		140,368
Net asset value per share	$	45.63

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $12,567)	$	1,125,794
Income from securities lending, net		394,520
Interest		106
Total investment income		1,520,420
Expenses:
Management fees		755,304
Transfer agent and administrative fees		222,148
Distribution and service fees:
Advisor Class		33,336
A-Class		43,131
C-Class		59,488
Portfolio accounting fees		88,858
Custodian fees		10,358
Trustees’ fees*		6,015
Line of credit fees		549
Miscellaneous		115,237
Total expenses		1,334,424
Net investment income		185,996
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		618,158
Net realized gain		618,158
Net change in unrealized appreciation (depreciation) on:
Investments		8,404,635
Net change in unrealized appreciation (depreciation)		8,404,635
Net realized and unrealized gain		9,022,793
Net increase in net assets resulting from operations	$	9,208,789

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 153

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	185,996		$	(121,576	)
Net realized gain on investments		618,158			2,214,194
Net change in unrealized appreciation (depreciation) on investments		8,404,635			12,043,472
Net increase in net assets resulting from operations		9,208,789			14,136,090
Capital share transactions:
Proceeds from sale of shares
Investor Class		225,561,497			442,197,154
Advisor Class		41,190,056			15,406,895
A-Class		41,341,080			35,299,972
C-Class		28,834,797			20,204,027
Cost of shares redeemed
Investor Class		(232,830,435	)		(486,392,760	)
Advisor Class		(37,870,325	)		(18,129,650	)
A-Class		(40,894,730	)		(29,905,841	)
C-Class		(26,857,147	)		(19,951,182	)
Net decrease from capital share transactions		(1,525,207	)		(41,271,385	)
Net increase (decrease) in net assets		7,683,582			(27,135,295	)
Net assets:
Beginning of year		63,276,711			90,412,006
End of year	$	70,960,293		$	63,276,711
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	132,339		$	(53,657	)
Capital share activity:
Shares sold
Investor Class		4,633,899			11,397,922
Advisor Class		922,719			430,435
A-Class		919,079			957,561
C-Class		671,966			587,228
Shares redeemed
Investor Class		(4,795,289	)		(12,864,102	)
Advisor Class		(853,724	)		(519,741	)
A-Class		(912,772	)		(798,761	)
C-Class		(626,094	)		(587,841	)
Net decrease in shares		(40,216	)		(1,397,299	)

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	44.63		$	32.07		$	26.96		$	27.85		$	23.79
Income (loss) from investment operations:
Net investment income (loss)a		.18			(.04	)		(.07	)		(.06	)		—	b
Net gain (loss) on investments (realized and unrealized)		7.25			12.60			5.18			(.83	)		4.06
Total from investment operations		7.43			12.56			5.11			(.89	)		4.06
Net asset value, end of period	$	52.06		$	44.63		$	32.07		$	26.96		$	27.85
Total Returnc		16.65	%		39.16	%		18.95	%		(3.20	%)		17.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	42,947		$	44		$	78,644		$	8,031		$	5,320
Ratios to average net assets:
Net investment income (loss)		0.37	%		(0.09	%)		(0.25	%)		(0.22	%)		0.02	%
Total expenses		1.35	%		1.37	%		1.37	%		1.35	%		1.38	%
Portfolio turnover rate		247	%		593	%		737	%		1,082	%		1,217	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	40.61		$	29.32		$	24.76		$	25.70		$	22.05
Income (loss) from investment operations:
Net investment income (loss)a		(.10	)		(.18	)		(.15	)		(.14	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		6.61			11.47			4.71			(.80	)		3.82
Total from investment operations		6.51			11.29			4.56			(.94	)		3.65
Net asset value, end of period	$	47.12		$	40.61		$	29.32		$	24.76		$	25.70
Total Returnc		16.03	%		38.51	%		18.42	%		(3.66	%)		16.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,249		$	2,583		$	4,483		$	2,355		$	2,902
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		(0.50	%)		(0.57	%)		(0.55	%)		(0.74	%)
Total expenses		1.85	%		1.87	%		1.86	%		1.86	%		1.89	%
Portfolio turnover rate		247	%		593	%		737	%		1,082	%		1,217	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	41.61		$	29.96		$	25.25		$	26.15		$	22.37
Income (loss) from investment operations:
Net investment income (loss)a		.05			(.11	)		(.01	)		(.12	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		6.75			11.76			4.72			(.78	)		3.88
Total from investment operations		6.80			11.65			4.71			(.90	)		3.78
Net asset value, end of period	$	48.41		$	41.61		$	29.96		$	25.25		$	26.15
Total Returnc		16.34	%		38.89	%		18.70	%		(3.48	%)		16.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,359		$	12,938		$	4,558		$	1,600		$	1,239
Ratios to average net assets:
Net investment income (loss)		0.12	%		(0.28	%)		(0.05	%)		(0.51	%)		(0.42	%)
Total expenses		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		247	%		593	%		737	%		1,082	%		1,217	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	39.52		$	28.67		$	24.34		$	25.38		$	21.87
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.37	)		(.26	)		(.29	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		6.38			11.22			4.59			(.75	)		3.75
Total from investment operations		6.11			10.85			4.33			(1.04	)		3.51
Net asset value, end of period	$	45.63		$	39.52		$	28.67		$	24.34		$	25.38
Total Returnc		15.46	%		37.84	%		17.79	%		(4.10	%)		16.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,405		$	3,734		$	2,727		$	2,729		$	2,069
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(1.07	%)		(1.06	%)		(1.24	%)		(1.04	%)
Total expenses		2.35	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		247	%		593	%		737	%		1,082	%		1,217	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

UTILITIES FUND

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

For the one-year period ended March 31, 2015, Utilities Fund Investor Class returned 9.12%, compared with 11.09% for the S&P 500 Utilities Index. The broader S&P 500 Index returned 12.73%.

The electric utilities segment provided the largest contribution to return, followed by the multi-utilities segment. The oil, gas & consumable fuels industry contributed least to return. No industry detracted.

PG&E Corp., Duke Energy Corp., and NiSource, Inc. were the best-performing holdings over the period, while NRG Energy, Inc., Cia de Saneamento Basico do Estado de Sao Paulo ADR, and MDU Resources Group, Inc. were the main detractors.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 3, 2000
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.	3.6%
NextEra Energy, Inc.	3.3%
Dominion Resources, Inc.	3.2%
Southern Co.	3.1%
Exelon Corp.	2.7%
American Electric Power Company, Inc.	2.6%
Sempra Energy	2.6%
PG&E Corp.	2.4%
PPL Corp.	2.4%
Public Service Enterprise Group, Inc.	2.3%
Top Ten Total	28.2%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 157

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	9.12%	11.97%	7.49%
Advisor Class Shares	8.53%	11.42%	6.96%
A-Class Shares	8.78%	11.69%	7.23%
A-Class Shares with sales charge†	3.60%	10.61%	6.70%
C-Class Shares	7.99%	10.85%	6.41%
C-Class Shares with CDSC‡	6.99%	10.85%	6.41%
S&P 500 Utilities Index	11.09%	12.95%	8.48%
S&P 500 Index	12.73%	14.47%	8.01%

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

158 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.6%
ELECTRIC-INTEGRATED - 66.1%
Duke Energy Corp.		41,306	$	3,171,475
NextEra Energy, Inc.		27,936		2,906,742
Dominion Resources, Inc.		39,159		2,775,198
Southern Co.		61,056		2,703,560
Exelon Corp.		69,558		2,337,844
American Electric Power Company, Inc.		39,894		2,244,038
PG&E Corp.		40,009		2,123,278
PPL Corp.		61,459		2,068,710
Public Service Enterprise Group, Inc.		47,299		1,982,774
Edison International		30,423		1,900,525
Xcel Energy, Inc.		52,010		1,810,468
Consolidated Edison, Inc.		29,513		1,800,293
Eversource Energy		34,198		1,727,683
FirstEnergy Corp.		46,857		1,642,806
DTE Energy Co.		20,356		1,642,526
Entergy Corp.		20,781		1,610,320
Wisconsin Energy Corp.		29,004		1,435,698
Ameren Corp.		32,496		1,371,331
CMS Energy Corp.		38,254		1,335,447
SCANA Corp.		22,034		1,211,650
Alliant Energy Corp.		18,046		1,136,898
Pinnacle West Capital Corp.		17,824		1,136,280
Pepco Holdings, Inc.		41,664		1,117,845
OGE Energy Corp.		34,182		1,080,493
Integrys Energy Group, Inc.		14,208		1,023,260
Westar Energy, Inc.		25,327		981,675
TECO Energy, Inc.		47,435		920,239
MDU Resources Group, Inc.		41,153		878,205
Great Plains Energy, Inc.		32,467		866,220
Cleco Corp.		14,347		782,198
Korea Electric Power Corp. ADR*		37,900		776,950
Hawaiian Electric Industries, Inc.		23,951		769,306
IDACORP, Inc.		12,182		765,882
UIL Holdings Corp.		14,610		751,246
Portland General Electric Co.		20,063		744,137
NorthWestern Corp.		12,952		696,688
PNM Resources, Inc.		22,637		661,000
ALLETE, Inc.		12,499		659,447
Black Hills Corp.		12,860		648,658
Avista Corp.		18,619		636,397
El Paso Electric Co.		14,230		549,847
Total Electric-Integrated				57,385,237
GAS-DISTRIBUTION - 19.0%
Sempra Energy		20,327		2,216,049
NiSource, Inc.		37,169		1,641,382
CenterPoint Energy, Inc.		61,815		1,261,644
AGL Resources, Inc.		21,320		1,058,538
Atmos Energy Corp.		18,456		1,020,617
UGI Corp.		31,288		1,019,676
National Fuel Gas Co.		16,101		971,373
Questar Corp.		37,339		890,909
Vectren Corp.		18,687		824,844
National Grid plc ADR		12,190		787,596
Piedmont Natural Gas Company, Inc.		20,005		738,385
WGL Holdings, Inc.		13,034		735,118
New Jersey Resources Corp.		23,008		714,628
Southwest Gas Corp.		12,260		713,164
ONE Gas, Inc.		15,037		650,050
Laclede Group, Inc.		12,632		647,011
South Jersey Industries, Inc.		10,809		586,713
Total Gas-Distribution				16,477,697
INDEPENDENT POWER PRODUCER - 5.9%
Calpine Corp.*		57,843		1,322,869
NRG Energy, Inc.		50,992		1,284,488
Dynegy, Inc.*		28,975		910,684
NRG Yield, Inc. — Class A1		16,950		859,874
Abengoa Yield plc		23,029		777,920
Total Independent Power Producer				5,155,835
WATER - 4.1%
American Water Works Company, Inc.		24,997		1,355,088
Aqua America, Inc.		35,120		925,412
Cia de Saneamento Basico do Estado de Sao Paulo ADR		139,620		756,740
American States Water Co.		13,200		526,548
Total Water				3,563,788
ENERGY-ALTERNATE SOURCES - 1.8%
TerraForm Power, Inc. — Class A		25,769		940,826
Pattern Energy Group, Inc.		21,740		615,677
Total Energy-Alternate Sources				1,556,503
ELECTRIC-GENERATION - 1.5%
AES Corp.		103,805		1,333,894
ELECTRIC-TRANSMISSION - 1.2%
ITC Holdings Corp.		27,975		1,047,104
PIPELINES - 0.0%
Kinder Morgan, Inc.		1		42
Total Common Stocks
(Cost $70,706,523)				86,520,100

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
UTILITIES FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,2 - 0.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	355,487	$	355,487
Total Repurchase Agreement
(Cost $355,487)				355,487
SECURITIES LENDING COLLATERAL††,3 - 0.7%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		402,254		402,254
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		138,376		138,376
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		71,424		71,424
Total Securities Lending Collateral
(Cost $612,054)				612,054
Total Investments - 100.7%
(Cost $71,674,064)			$	87,487,641
Other Assets & Liabilities, net - (0.7)%				(586,161	)
Total Net Assets - 100.0%			$	86,901,480

*	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 March 31, 2015— See Note 6.
2	Repurchase Agreement — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $608,760 of securities loaned (cost $70,706,523)	$	86,520,100
Repurchase agreements, at value (cost $967,541)		967,541
Total investments (cost $71,674,064)		87,487,641
Segregated cash with broker		8,946
Receivables:
Fund shares sold		2,870,159
Dividends		184,173
Securities lending income		758
Total assets		90,551,677
Liabilities:
Overdraft due to custodian bank		418
Payable for:
Securities purchased		2,638,614
Return of securities loaned		621,000
Fund shares redeemed		245,069
Management fees		60,164
Transfer agent and administrative fees		17,695
Distribution and service fees		13,675
Portfolio accounting fees		7,078
Miscellaneous		46,484
Total liabilities		3,650,197
Commitments and contingent liabilities (Note 10)		—
Net assets	$	86,901,480
Net assets consist of:
Paid in capital	$	78,241,428
Undistributed net investment income		—
Accumulated net realized loss on investments		(7,153,525	)
Net unrealized appreciation on investments		15,813,577
Net assets	$	86,901,480
Investor Class:
Net assets	$	55,156,324
Capital shares outstanding		1,491,659
Net asset value per share	$	36.98
Advisor Class:
Net assets	$	13,545,752
Capital shares outstanding		402,987
Net asset value per share	$	33.61
A-Class:
Net assets	$	9,782,242
Capital shares outstanding		281,891
Net asset value per share	$	34.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	36.43
C-Class:
Net assets	$	8,417,162
Capital shares outstanding		274,190
Net asset value per share	$	30.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $20,619)	$	3,404,551
Income from securities lending, net		8,896
Interest		85
Total investment income		3,413,532
Expenses:
Management fees		799,938
Transfer agent and administrative fees		235,275
Distribution and service fees:
Advisor Class		53,324
A-Class		25,020
C-Class		93,662
Portfolio accounting fees		94,110
Custodian fees		10,931
Trustees’ fees*		5,637
Tax expense		3,490
Line of credit fees		1,247
Miscellaneous		118,023
Total expenses		1,440,657
Net investment income		1,972,875
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(770,439	)
Net realized loss		(770,439	)
Net change in unrealized appreciation (depreciation) on:
Investments		2,118,506
Net change in unrealized appreciation (depreciation)		2,118,506
Net realized and unrealized gain		1,348,067
Net increase in net assets resulting from operations	$	3,320,942

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 161

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,972,875		$	1,150,415
Net realized gain (loss) on investments		(770,439	)		3,726,063
Net change in unrealized appreciation (depreciation) on investments		2,118,506			(345,635	)
Net increase in net assets resulting from operations		3,320,942			4,530,843
Distributions to shareholders from:
Net investment income
Investor Class		(272,237	)		(653,403	)
Advisor Class		(76,869	)		(166,669	)
A-Class		(26,090	)		(161,160	)
C-Class		(39,413	)		(302,460	)
Total distributions to shareholders		(414,609	)		(1,283,692	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		270,237,495			273,458,616
Advisor Class		237,983,954			89,095,236
A-Class		49,228,912			23,091,679
C-Class		34,705,230			36,830,999
Distributions reinvested
Investor Class		144,586			639,026
Advisor Class		76,768			162,897
A-Class		22,710			143,241
C-Class		35,206			277,036
Cost of shares redeemed
Investor Class		(313,431,370	)		(224,424,635	)
Advisor Class		(226,632,966	)		(91,124,222	)
A-Class		(51,074,156	)		(19,091,917	)
C-Class		(35,228,923	)		(36,035,250	)
Net increase (decrease) from capital share transactions		(33,932,554	)		53,022,706
Net increase (decrease) in net assets		(31,026,221	)		56,269,857
Net assets:
Beginning of year		117,927,701			61,657,844
End of year	$	86,901,480		$	117,927,701
Undistributed net investment income at end of year	$	—		$	414,609
Capital share activity:
Shares sold
Investor Class		7,335,372			8,321,501
Advisor Class		7,128,509			2,982,830
A-Class		1,412,405			747,486
C-Class		1,145,355			1,344,893
Shares issued from reinvestment of distributions
Investor Class		3,887			20,594
Advisor Class		2,266			5,732
A-Class		650			4,900
C-Class		1,130			10,603
Shares redeemed
Investor Class		(8,665,636	)		(6,835,762	)
Advisor Class		(6,800,787	)		(3,074,956	)
A-Class		(1,487,751	)		(619,975	)
C-Class		(1,166,095	)		(1,312,120	)
Net increase (decrease) in shares		(1,090,695	)		1,595,726

162 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	34.01		$	32.71		$	29.13		$	27.00		$	24.80
Income (loss) from investment operations:
Net investment income (loss)a		.84			.78			.74			.73			.86
Net gain (loss) on investments (realized and unrealized)		2.26			1.98			3.96			1.80			2.96
Total from investment operations		3.10			2.76			4.70			2.53			3.82
Less distributions from:
Net investment income		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Total distributions		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Net asset value, end of period	$	36.98		$	34.01		$	32.71		$	29.13		$	27.00
Total Returnb		9.12	%		8.88	%		16.75	%		9.44	%		15.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,156		$	95,854		$	42,907		$	37,469		$	9,328
Ratios to average net assets:
Net investment income (loss)		2.31	%		2.38	%		2.45	%		2.59	%		3.35	%
Total expenses		1.35	%		1.40	%		1.35	%		1.35	%		1.37	%
Portfolio turnover rate		384	%		508	%		534	%		549	%		800	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	31.09		$	30.19		$	27.10		$	25.26		$	23.40
Income (loss) from investment operations:
Net investment income (loss)a		.60			.69			.48			.56			.62
Net gain (loss) on investments (realized and unrealized)		2.05			1.67			3.73			1.68			2.86
Total from investment operations		2.65			2.36			4.21			2.24			3.48
Less distributions from:
Net investment income		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Total distributions		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Net asset value, end of period	$	33.61		$	31.09		$	30.19		$	27.10		$	25.26
Total Returnb		8.53	%		8.29	%		16.23	%		8.90	%		15.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,546		$	2,269		$	4,812		$	8,036		$	1,240
Ratios to average net assets:
Net investment income (loss)		1.79	%		2.32	%		1.70	%		2.11	%		2.53	%
Total expenses		1.84	%		1.88	%		1.85	%		1.84	%		1.87	%
Portfolio turnover rate		384	%		508	%		534	%		549	%		800	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 163

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	32.02		$	30.95		$	27.69		$	25.75		$	23.77
Income (loss) from investment operations:
Net investment income (loss)a		.66			.63			.65			.67			.54
Net gain (loss) on investments (realized and unrealized)		2.15			1.90			3.73			1.67			3.06
Total from investment operations		2.81			2.53			4.38			2.34			3.60
Less distributions from:
Net investment income		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Total distributions		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Net asset value, end of period	$	34.70		$	32.02		$	30.95		$	27.69		$	25.75
Total Returnb		8.78	%		8.64	%		16.46	%		9.16	%		15.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,782		$	11		$	6,938		$	7,912		$	3,289
Ratios to average net assets:
Net investment income (loss)		1.93	%		2.05	%		2.26	%		2.47	%		2.23	%
Total expenses		1.60	%		1.63	%		1.61	%		1.60	%		1.63	%
Portfolio turnover rate		384	%		508	%		534	%		549	%		800	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	28.55		$	27.96		$	25.31		$	23.76		$	22.21
Income (loss) from investment operations:
Net investment income (loss)a		.36			.34			.42			.42			.39
Net gain (loss) on investments (realized and unrealized)		1.92			1.71			3.35			1.53			2.78
Total from investment operations		2.28			2.05			3.77			1.95			3.17
Less distributions from:
Net investment income		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Total distributions		(.13	)		(1.46	)		(1.12	)		(.40	)		(1.62	)
Net asset value, end of period	$	30.70		$	28.55		$	27.96		$	25.31		$	23.76
Total Returnb		7.99	%		7.83	%		15.58	%		8.28	%		14.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,417		$	8,387		$	7,001		$	6,961		$	4,751
Ratios to average net assets:
Net investment income (loss)		1.18	%		1.22	%		1.62	%		1.70	%		1.72	%
Total expenses		2.35	%		2.38	%		2.36	%		2.35	%		2.38	%
Portfolio turnover rate		384	%		508	%		534	%		549	%		800	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

NOTES TO FINANCIAL STATEMENTS

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 March 31, 2015, the Trust consisted of fifty-two funds.

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

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities 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 each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

A. 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

THE RYDEX FUNDS ANNUAL REPORT | 165

NOTES TO FINANCIAL STATEMENTS (continued)

Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ 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 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.

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.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer of pending merger activity, public offerings or tender offers that might affect the value of the security).

B. 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. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

C. 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.

D. 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.

166 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

E. 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.

F. Under the Funds’ organizational documents, their 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. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at their 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. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services. With regard to Advisor Class shares only, if a Service Provider provides shareholder services, GFD will receive 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 a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

THE RYDEX FUNDS ANNUAL REPORT | 167

NOTES TO FINANCIAL STATEMENTS (continued)

For the year ended March 31, 2015, GFD retained sales charges of $360,571 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.

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.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended March 31, 2015, the following capital loss carryforward amounts were expired or used:

Fund	Amount
Basic Materials Fund	$	1,525,433
Electronics Fund		5,495,145
Energy Fund		3,472,546
Energy Services Fund		1,541,919
Financial Services Fund		1,081,486
Leisure Fund		1,238,160
Real Estate Fund		2,162,377
Retailing Fund		1,675,233
Technology Fund		1,136,122
Transportation Fund		1,487,487
Utilities Fund		1,369,019

The tax character of distributions paid during the year ended March 31, 2015 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Banking Fund	$	104,722	$	—	$	104,722
Basic Materials Fund		232,153		—		232,153
Biotechnology Fund		16,555,696		3,761,283		20,316,979
Consumer Products Fund		4,013,864		—		4,013,864
Electronics Fund		—		—		—
Energy Fund		200,733		—		200,733
Energy Services Fund		—		—		—
Financial Services Fund		149,519		—		149,519
Health Care Fund		498,400		2,095,865		2,594,265
Internet Fund		399,239		—		399,239
Leisure Fund		94,646		893,915		988,561
Precious Metals Fund		1,329,325		—		1,329,325
Real Estate Fund		391,160		—		391,160
Retailing Fund		—		—		—
Technology Fund		—		—		—
Telecommunications Fund		98,119		—		98,119
Transportation Fund		—		—		—
Utilities Fund		414,609		—		414,609

168 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2014 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Banking Fund	$	206,728	$	—	$	206,728
Basic Materials Fund		299,181		—		299,181
Biotechnology Fund		—		—		—
Consumer Products Fund		1,720,103		5,668,936		7,389,039
Electronics Fund		2,979		—		2,979
Energy Fund		—		—		—
Energy Services Fund		—		—		—
Financial Services Fund		145,547		—		145,547
Health Care Fund		113,186		4,763,132		4,876,318
Internet Fund		—		185,111		185,111
Leisure Fund		200,095		—		200,095
Precious Metals Fund		303,331		—		303,331
Real Estate Fund		336,681		—		336,681
Retailing Fund		—		—		—
Technology Fund		—		—		—
Telecommunications Fund		98,053		—		98,053
Transportation Fund		—		—		—
Utilities Fund		1,283,692		—		1,283,692

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

The tax character of distributable earnings/(accumulated losses) at March 31, 2015 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)			Capital Loss Carryforward & Other Losses
Banking Fund	$	84,494	$	—	$	(186,951	)	$	(21,412,209	)
Basic Materials Fund		252,786		—		4,142,106			(16,213,579	)
Biotechnology Fund		9,120,813		—		291,512,176			—
Consumer Products Fund		3,082,889		—		66,693,444			—
Electronics Fund		42,413		—		3,183,353			(12,987,326	)
Energy Fund		334,376		369,647		5,892,529			—
Energy Services Fund		231,483		—		515,158			(23,626,434	)
Financial Services Fund		277,773		141,563		4,152,986			—
Health Care Fund		4,516,377		2,057,091		66,427,772			—
Internet Fund		142,232		88,617		3,710,291			—
Leisure Fund		285,529		96,180		5,504,480			—
Precious Metals Fund		183,913		—		(16,830,803	)		(27,245,750	)
Real Estate Fund		344,392		—		2,342,260			(12,161,929	)
Retailing Fund		32,233		—		9,930,358			(3,963,067	)
Technology Fund		—		—		9,445,665			(4,119,862	)
Telecommunications Fund		80,748		—		175,325			(4,226,125	)
Transportation Fund		132,339		—		23,269,619			(16,296,735	)
Utilities Fund		—		—		8,660,052			—

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. For taxable years beginning on or before December 22, 2010, such capital losses may be carried forward for a maximum of eight years. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely

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NOTES TO FINANCIAL STATEMENTS (continued)

to 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. As of March 31, 2015, capital loss carryforwards for the Funds were as follows:

	Expires in			Expires in			Expires in			Expires in			Unlimited						Total Capital Loss
Fund	2016			2017			2018			2019			Short-Term			Long-Term			Carryforward
Banking Fund	$	(311,892	)	$	(1,809,926	)	$	(16,385,824	)	$	(912,723	)	$	(1,524,659	)	$	(467,185	)	$	(21,412,209	)
Basic Materials Fund		—			(6,151,760	)		(8,009,421	)		—			(2,052,398	)		—			(16,213,579	)
Biotechnology Fund		—			—			—			—			—			—			—
Consumer Products Fund		—			—			—			—			—			—			—
Electronics Fund		(1,900,883	)		(6,118,835	)		—			(3,055,204	)		(1,733,388	)		(179,016	)		(12,987,326	)
Energy Fund		—			—			—			—			—			—			—
Energy Services Fund		—			(16,789,802	)		(5,702,829	)		—			—			—			(22,492,631	)
Financial Services Fund		—			—			—			—			—			—			—
Health Care Fund		—			—			—			—			—			—			—
Internet Fund		—			—			—			—			—			—			—
Leisure Fund		—			—			—			—			—			—			—
Precious Metals Fund		—			—			—			—			(6,090,469	)		(21,155,281	)		(27,245,750	)
Real Estate Fund		—			(2,247,435	)		(4,305,317	)		—			(5,609,177	)		—			(12,161,929	)
Retailing Fund		—			(1,564,877	)		—			—			(2,398,190	)		—			(3,963,067	)
Technology Fund		—			(3,941,068	)		—			—			—			—			(3,941,068	)
Telecommunications Fund		—			(1,745,552	)		—			—			(1,763,826	)		(716,747	)		(4,226,125	)
Transportation Fund		—			—			(9,430,280	)		(6,866,455	)		—			—			(16,296,735	)
Utilities Fund		—			—			—			—			—			—			—

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are typically due to post-October losses, losses deferred due to wash sales, utilization of earnings and profits on shareholder redemptions, and the “mark-to-market of certain passive foreign investment companies (PFICs) for tax purposes. Additional differences may result from tax treatment of net investment losses and expired expired capital loss carryforwards. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise. These reclassifications have no effect on the net assets or NAV per share.

On the Statements of Assets and Liabilities the following adjustments were made for permanent book/tax differences:

Fund	Paid In Capital			Undistributed Net Investment Income			Accumulated Net Realized Gain/(Loss)
Banking Fund	$	—		$	—		$	—
Basic Materials Fund		(2,029	)		43,965			(41,936	)
Biotechnology Fund		22,005,007			2,286,392			(24,291,399	)
Consumer Products Fund		5,367,327			4,085			(5,371,412	)
Electronics Fund		(5,495,145	)		—			5,495,145
Energy Fund		738,104			1,169			(739,273	)
Energy Services Fund		—			—			—
Financial Services Fund		42,471			—			(42,471	)
Health Care Fund		3,146,358			733,012			(3,879,370	)
Internet Fund		1,008,905			182,551			(1,191,456	)
Leisure Fund		3,786,003			—			(3,786,003	)
Precious Metals Fund		—			438,579			(438,579	)
Real Estate Fund		(10,798	)		10,798			—
Retailing Fund		—			—			—
Technology Fund		—			—			—
Telecommunications Fund		—			—			—
Transportation Fund		—			—			—
Utilities Fund		2,849,391			(1,972,875	)		(876,516	)

170 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2015, 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	$	49,664,288	$	911,335	$	(1,098,286	)	$	(186,951	)
Basic Materials Fund		56,710,244		5,648,610		(1,506,504	)		4,142,106
Biotechnology Fund		486,653,716		299,044,252		(7,532,077	)		291,512,175
Consumer Products Fund		263,375,888		71,340,374		(4,646,930	)		66,693,444
Electronics Fund		25,663,105		3,381,563		(198,210	)		3,183,353
Energy Fund		42,253,238		6,977,992		(1,085,463	)		5,892,529
Energy Services Fund		26,916,155		846,495		(331,337	)		515,158
Financial Services Fund		54,159,896		5,018,435		(865,449	)		4,152,986
Health Care Fund		209,775,682		68,919,609		(2,491,837	)		66,427,772
Internet Fund		11,062,701		3,841,858		(131,567	)		3,710,291
Leisure Fund		62,549,675		6,723,810		(1,219,330	)		5,504,480
Precious Metals Fund		69,112,808		—		(16,830,801	)		(16,830,801	)
Real Estate Fund		44,652,314		2,491,570		(149,310	)		2,342,260
Retailing Fund		70,794,030		10,835,352		(904,994	)		9,930,358
Technology Fund		27,010,223		10,153,919		(708,254	)		9,445,665
Telecommunications Fund		2,229,745		189,452		(14,127	)		175,325
Transportation Fund		50,351,098		23,387,723		(118,104	)		23,269,619
Utilities Fund		78,827,589		9,332,845		(672,793	)		8,660,052

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2015, the following losses reflected in the accompanying financial statements were deferred for Federal income tax purposes until April 1, 2015:

Fund	Ordinary			Capital
Energy Services Fund	$	—		$	(1,133,803	)
Technology Fund		(178,794	)		—

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the inputs used to value the Funds’ investments at March 31, 2015:

	Level 1 Investments In Securities		Level 2 Investments In Securities		Level 3 Investments In Securities		Total
Assets
Banking Fund	$	49,124,246	$	353,091	$	—	$	49,477,337
Basic Materials Fund		57,598,223		3,254,127		—		60,852,350
Biotechnology Fund		688,043,864		90,100,931		21,096		778,165,891
Consumer Products Fund		319,933,812		10,114,892		20,628		330,069,332
Electronics Fund		27,196,340		1,650,118		—		28,846,458
Energy Fund		45,850,602		2,295,165		—		48,145,767
Energy Services Fund		25,228,264		2,203,049		—		27,431,313
Financial Services Fund		58,123,746		189,136		—		58,312,882
Health Care Fund		263,537,004		12,666,450		—		276,203,454
Internet Fund		14,524,098		248,894		—		14,772,992
Leisure Fund		67,484,617		569,538		—		68,054,155
Precious Metals Fund		49,237,228		3,044,779		—		52,282,007
Real Estate Fund		46,731,936		262,638		—		46,994,574
Retailing Fund		77,762,393		2,961,995		—		80,724,388
Technology Fund		36,047,002		408,886		—		36,455,888
Telecommunications Fund		2,394,899		5,514		4,657		2,405,070
Transportation Fund		70,893,941		2,726,776		—		73,620,717
Utilities Fund		86,520,100		967,541		—		87,487,641

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 March 31, 2015, Telecommunications Fund had securities with a total value of $4,657, 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.

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 March 31, 2015, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
HSBC Group					U.S. Treasury Strips
0.03%					0.00%
Due 04/01/15	$	15,774,664		$         15,774,677	11/15/22	$	18,558,500	$	16,090,220

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.

172 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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.

At March 31, 2015, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Banking Fund	$	171,368	$	181,350
Basic Materials Fund		2,849,049		2,999,050
Biotechnology Fund		79,529,180		83,608,806
Consumer Products Fund		8,624,874		8,837,396
Electronics Fund		1,377,165		1,425,325
Energy Fund		2,013,020		2,091,600
Energy Services Fund		2,024,426		2,095,500
Financial Services Fund		187,242		191,900
Health Care Fund		10,954,785		11,745,759
Internet Fund		169,972		173,518
Leisure Fund		323,506		332,275
Precious Metals Fund		2,546,558		2,762,950
Real Estate Fund		132,470		137,300
Retailing Fund		2,216,055		2,271,453
Technology Fund		407,651		414,863
Transportation Fund		2,076,173		2,147,050
Utilities Fund		608,760		621,000

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NOTES TO FINANCIAL STATEMENTS (continued)

Cash collateral received was invested in the following joint repurchase agreements at March 31, 2015:

Counterparty and Terms of Agreement		Face Value		Repurchase Price	Collateral		Par Value		Fair Value
HSBC Securities, Inc.					Fannie Mae Strips
0.10%					0.00%
Due 04/01/15	$	79,049,877	$	79,050,097	11/15/17 - 07/15/37	$	88,174,397	$	60,687,161
					Federal Farm Credit Bank
					0.19%
					06/12/17		19,951,092		19,953,750
BNP Paribas Securities Corp.					U.S. Treasury Note
0.10%					2.13%
Due 04/01/15		27,193,159		27,193,235	12/31/21		12,501,039		12,885,473
					U.S. Treasury Bond
					4.38%
					05/15/41		10,788,895		14,854,435
Barclays Capital Corp.					U.S. Treasury Strips
0.10%					0.00%
Due 04/01/15		14,036,097		14,036,136	05/15/20 - 05/15/44		21,715,762		12,902,275
					U.S. Treasury Bond
					4.75%
					02/15/41		985,316		1,416,081

There is also $1,757,962 in segregated cash held as collateral.

7. Securities Transactions

For the year ended March 31, 2015, 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	$	135,946,530	$	108,340,149
Basic Materials Fund		200,119,765		194,143,266
Biotechnology Fund		611,639,225		520,960,890
Consumer Products Fund		346,285,232		223,825,308
Electronics Fund		160,176,965		152,855,827
Energy Fund		279,180,603		278,416,963
Energy Services Fund		216,265,966		225,371,504
Financial Services Fund		160,654,349		135,362,342
Health Care Fund		374,084,671		310,722,642
Internet Fund		110,052,345		151,315,640
Leisure Fund		155,263,174		121,627,373
Precious Metals Fund		216,481,995		211,473,003
Real Estate Fund		275,117,133		257,426,152
Retailing Fund		138,363,362		142,920,592
Technology Fund		103,419,562		117,071,746
Telecommunications Fund		48,004,904		51,178,819
Transportation Fund		218,510,025		219,921,665
Utilities Fund		367,917,354		400,036,847

174 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 year ended March 31, 2015. On March 31, 2015, the Financial Services Fund and Technology Fund borrowed $557,000 and $260,000, respectively, under this agreement. The Funds did not have any other borrowings under this agreement at March 31, 2015.

The average daily balances borrowed for the year ended March 31, 2015, were as follows:

Fund	Average Daily Balance
Banking Fund	$	11,630
Basic Materials Fund		7,706
Biotechnology Fund		417,893
Consumer Products Fund		18,134
Electronics Fund		23,079
Energy Fund		14,944
Energy Services Fund		25,436
Financial Services Fund		18,157
Health Care Fund		19,592
Internet Fund		23,123
Leisure Fund		9,128
Precious Metals Fund		19,996
Real Estate Fund		29,421
Retailing Fund		23,655
Technology Fund		16,097
Telecommunications Fund		3,748
Transportation Fund		40,928
Utilities Fund		98,347

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.

THE RYDEX FUNDS ANNUAL REPORT | 175

NOTES TO FINANCIAL STATEMENTS (continued)

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 of the SLCFC actions: Deutsche Bank Trust Co. Americas v. McGurn, No. 11-1510 (S.D.N.Y.). 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 SLCFC 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. The Court has not yet issued a decision on the appeals.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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.

176 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

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. A third related action against the former Lyondell shareholders, Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, Adversary Proceeding No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), is pending as well.

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.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. The Court has not yet issued decisions on these motions. Discovery has commenced in these lawsuits.

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 ANNUAL REPORT | 177

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders
of Rydex Series Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (eighteen of the series constituting the Rydex Series Funds) (the “Funds”) as of March 31, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds (eighteen of the series constituting the Rydex Series Funds) at March 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia

May 21, 2015

178 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:

Fund	% Qualifying
Banking Fund	100.00%
Basic Materials Fund	100.00%
Consumer Products Fund	65.82%
Energy Fund	100.00%
Financial Services Fund	100.00%
Health Care Fund	100.00%
Internet Fund	11.55%
Leisure Fund	100.00%
Precious Metals Fund	74.97%
Real Estate Fund	1.75%
Telecommunications Fund	100.00%
Utilities Fund	100.00%

Additionally, the following amounts of taxable ordinary income dividends paid during the fiscal year qualified for the lower income tax rate available to individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003:

Fund	% Qualifying
Banking Fund	100.00%
Basic Materials Fund	100.00%
Consumer Products Fund	59.55%
Energy Fund	100.00%
Financial Services Fund	100.00%
Health Care Fund	100.00%
Internet Fund	7.55%
Leisure Fund	100.00%
Precious Metals Fund	97.79%
Real Estate Fund	0.11%
Telecommunications Fund	100.00%
Utilities Fund	100.00%

Additionally, of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively:

Fund	% Qualifying	% STCG Qualifying
Biotechnology Fund	0.00%	100.00%
Consumer Products Fund	0.00%	100.00%
Health Care Fund	0.00%	100.00%
Internet Fund	0.00%	100.00%

THE RYDEX FUNDS ANNUAL REPORT | 179

OTHER INFORMATION (Unaudited)(concluded)

With respect to the taxable year ended March 31, 2015, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gains, subject to the 15% rate gains category:		From long-term capital gains, using proceeds from shareholder redemptions:
Biotechnology Fund	$	3,761,283	$	18,139,533
Consumer Products Fund		—		2,853,980
Energy Fund		—		739,273
Financial Services Fund		—		42,471
Health Care Fund		2,095,865		3,146,358
Internet Fund		—		1,008,905
Leisure Fund		893,915		3,786,003

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.

180 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by 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).	221	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	133	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.	133	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.	133	None.

THE RYDEX FUNDS ANNUAL REPORT | 181

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
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).	133	None.
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).	133	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).	133	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.

182 | THE RYDEX FUNDS 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
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).
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); Managing Director, Guggenheim Investments (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).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	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 ANNUAL REPORT | 183

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.

184 | THE RYDEX FUNDS 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 ANNUAL REPORT | 185

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3.31.2015

Rydex Funds Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

Fixed Income Funds

Government Long Bond 1.2x Strategy Fund

Inverse Government Long Bond Strategy Fund

High Yield Strategy Fund

Inverse High Yield Strategy Fund

Money Market Fund

U.S. Government Money Market Fund

RTB1-ANN-0315x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
NOVA FUND	12
S&P 500® FUND	27
INVERSE S&P 500® STRATEGY FUND	39
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	47
INVERSE NASDAQ-100® STRATEGY FUND	56
MID-CAP 1.5x STRATEGY FUND	65
INVERSE MID-CAP STRATEGY FUND	76
RUSSELL 2000® 1.5x STRATEGY FUND	83
RUSSELL 2000® FUND	110
INVERSE RUSSELL 2000® STRATEGY FUND	136
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	143
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	153
HIGH YIELD STRATEGY FUND	163
INVERSE HIGH YIELD STRATEGY FUND	170
U.S. GOVERNMENT MONEY MARKET FUND	177
NOTES TO FINANCIAL STATEMENTS	182
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	203
OTHER INFORMATION	204
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	207
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	210

THE RYDEX FUNDS ANNUAL REPORT | 1

 March 31, 2015

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our Funds (the “Funds”) for the one-year period ended March 31, 2015.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC (“Guggenheim”), 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 Performance Report and 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

April 30, 2015

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.

Inverse and leveraged Funds are not suitable for all investors. • These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. • The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. • The Funds’ use of derivatives, such as futures, options, and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. • Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. • Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a Fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. • For more on these and other risks, please read the prospectus.

The Fixed Income Funds may not be suitable for all investors. • Fixed income investments are subject to credit, liquidity, interest rate, and, depending on the instrument, counterparty risk. These risks may be increased to the extent fixed income investments are concentrated in any one issuer, industry, region, or country. The market value of fixed income investments generally will fluctuate with, among other things, the financial condition of the obligors on the underlying debt obligations, general economic conditions, the condition of certain financial markets, political events, developments or trends in any particular industry, and changes in prevailing interest rates. In general, any interest rate increases can cause the price of a debt security to decrease and vice versa.

2 | THE RYDEX FUNDS ANNUAL REPORT

 March 31, 2015

The High Yield Strategy Fund and Inverse High Yield Strategy Fund may not be suitable for all investors. • The use of derivatives such as futures, options and swap agreements will expose the fund to additional risks that they would not be subject to if it invested directly in the securities underlying those derivatives. • A highly liquid secondary market may not exist for the credit default swaps the funds invests in, and there can be no assurance that a highly liquid secondary market will develop. • The funds’ market value will change in response to interest rate changes and market conditions among other factors. • You may have a gain or loss when you sell your shares. • In general, bond prices rise when interest rates fall, and vice versa. The funds’ exposure to the high yield bond market may subject the fund to greater volatility because (i) the fund will be affected by the ability of high yield security issuers’ ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. • It is important to note that the funds are not guaranteed by the U.S. government. The funds are subject to active trading risks that may increase volatility and impact its ability to achieve its investment objective. • Investing in the Inverse High Yield Strategy Fund involves certain risks, which include volatility due to the Fund’s possible use of short sales of security and derivatives such as options and futures.

Monthly leveraged funds are not suitable for all investors. • These funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking monthly leveraged investment results, and (c) intend to actively monitor and manage their investments. • The more a fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • The funds’ use of derivatives, such as futures, options, and swap agreements, may expose the funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. • Monthly leveraged funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a monthly basis. Because monthly leveraged funds seek to track the performance of their benchmark on a monthly basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the quarterly, annual or other period performance of its benchmark. Due to the compounding of monthly returns, leveraged funds’ returns over periods other than one calendar month will likely differ in amount and possibly direction from the benchmark return for the same period. For those funds that consistently apply leverage, the value of the funds’ shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. Monthly leveraged funds rebalance their portfolios on a monthly basis on the last day of each calendar month, increasing exposure in response to that month’s gains or reducing exposure in response to that month’s losses. • Throughout the month, the amount of leverage that a monthly leveraged fund provides is allowed to float. Purchasing monthly leveraged funds on any day other than the last day of each calendar month will likely mean that the monthly leveraged fund’s actual leverage is different from its monthly leverage target. Investors should monitor their monthly leveraged funds’ holdings consistent with their strategies, as frequently as daily. • For more on these and other risks, please read the monthly leveraged funds’ prospectus.

The U.S. Government Money Market Fund may not be suitable for all investors. • An investment in the U.S. Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2015

The U.S. continued to enjoy a self-sustaining economic expansion for the 12-month period ended March 31, 2015, although winter weather was likely to distort first-quarter economic data. In addition, U.S. companies scaled back hiring in the last month of the period, adding to evidence that the domestic economy has lost some momentum since the turn of the year. The March increase in payrolls was the smallest since December 2013 and broke a 12-month run of gains above 200,000.

Despite this short-term dislocation, the economy remains on track. Indeed, many other labor market indicators, such as initial jobless claims and the job openings rate, suggest that the U.S. labor market remains quite strong, supporting the conclusion that March’s payroll report was just a temporary blip, similar to the one witnessed last winter. As soon as temporary seasonal factors have dissipated, economic data is likely to bounce back. The labor market has improved over the past year, as subdued mortgage rates and tight housing inventory continue to point to fairly stable appreciation in the housing market, which is key to the ongoing recovery. Consumers are also being helped by lower fuel prices, which are acting as a tax cut for U.S. consumers, freeing up discretionary spending in other areas and acting as a support for consumption.

In Europe, economic data has been surprisingly good and should continue along that path on the back of the European Central Bank’s program of quantitative easing and depreciation of the euro. Japan’s economy remains weak and, without more structural reform, continued monetary accommodation could lead to stagflation. China’s policymakers appear likely to continue the supply of credit and do whatever else is necessary to maintain growth there at an acceptable pace for the near term.

Given weakness overseas and the effect of a stronger U.S. dollar on international earnings, some stocks could face a more challenging environment in the near term, but our research shows that equity markets tend to perform quite well in the periods leading up to a U.S. Federal Reserve (the “Fed”) rate increase. The yield on the 10-year Treasury note declined in January by more than 50 basis points before rebounding in February, echoing the pattern since 2009—Treasury yields decline and a sell-off ensues, driving rates higher. Then conditions stabilize, and rates test their previous lows. Liquidity from foreign central banks and comparatively attractive U.S. yields continue to push global investors to U.S. Treasuries, which should hold down U.S. interest rates in the near term.

Against this backdrop, the U.S. central bank feels pressure to raise its key rate above zero, but insists the decision will be data-dependent and not occur prematurely. With a secular inflation increase unlikely in the near term, slack in the economy, and disinflation being imported from abroad, the Fed may not hike rates until later in the year. The Fed for now appears to be focused on wage growth, which is key for sustaining the expansion but also an indicator of inflationary pressure. The lack of sustained wage growth has been a topic that has confounded the Fed lately. Given the strengthening employment numbers and the apparent reduction in labor market slack, wages should start to increase more steadily across the board. This is one of the most important data points at the moment for the Fed.

The underlying U.S. economy remains strong and investors should avoid being panicked by seasonal setbacks. Indeed, considering the strength of the economy and the wave of liquidity emanating from various central banks around the world, the general investment environment should remain attractive.

For the 12 months ended March 31, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned 12.73%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -0.92%. The return of the MSCI Emerging Markets Index* was 0.44%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a 5.72% return for the period, while the Barclays U.S. Corporate High Yield Index* returned 2.00%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.03% for the 12-month period.

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2015

*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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

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

Barclays Long Treasury Bond Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and non convertible. The Long U.S. Treasury Index is market-capitalization weighted and the securities in the index are updated on the last business day of each month.

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

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

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

NASDAQ-100^® Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. It does not contain securities of financial companies including investment companies.

Russell 2000^® Index measures the performance of the small-cap value segment of the U.S. equity universe.

S&P 500^® Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad economy, representing all major industries and is considered a representation of the U.S. stock market.

S&P MidCap 400^® Index provides investors with a benchmark for mid-sized companies. The index covers approximately 7% of the U.S. equity market, and seeks to remain an accurate measure of mid-sized companies, reflecting the risk and return characteristics of the broader mid-cap universe on an on-going basis.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. 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.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, 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 September 30, 2014 and ending March 31, 2015.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.25%	7.92%	$1,000.00	$1,079.20	$6.48
Advisor Class	1.76%	7.65%	1,000.00	1,076.50	9.11
A-Class	1.50%	7.79%	1,000.00	1,077.90	7.77
C-Class	2.25%	7.39%	1,000.00	1,073.90	11.63
H-Class	1.51%	7.79%	1,000.00	1,077.90	7.82
S&P 500® Fund
A-Class	1.57%	5.06%	1,000.00	1,050.60	8.03
C-Class	2.31%	4.65%	1,000.00	1,046.50	11.79
H-Class	1.56%	5.03%	1,000.00	1,050.30	7.97
Inverse S&P 500® Strategy Fund
Investor Class	1.39%	(6.83%)	1,000.00	931.70	6.69
Advisor Class	1.89%	(6.94%)	1,000.00	930.60	9.10
A-Class	1.64%	(6.98%)	1,000.00	930.20	7.89
C-Class	2.39%	(7.31%)	1,000.00	926.90	11.48
H-Class	1.60%	(7.05%)	1,000.00	929.50	7.70
Monthly Rebalance NASDAQ-100® 2x Strategy Fund4
A-Class	1.35%	3.36%	1,000.00	1,033.60	4.55
C-Class	2.13%	3.10%	1,000.00	1,031.00	7.17
H-Class	1.35%	3.14%	1,000.00	1,031.40	4.55
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.44%	(8.44%)	1,000.00	915.60	6.88
Advisor Class	1.93%	(8.74%)	1,000.00	912.60	9.20
A-Class	1.71%	(8.55%)	1,000.00	914.50	8.16
C-Class	2.44%	(8.91%)	1,000.00	910.90	11.62
H-Class	1.68%	(8.52%)	1,000.00	914.80	8.02
Mid-Cap 1.5x Strategy Fund
A-Class	1.62%	16.77%	1,000.00	1,167.70	8.76
C-Class	2.39%	16.35%	1,000.00	1,163.50	12.89
H-Class	1.66%	16.86%	1,000.00	1,168.60	8.98
Inverse Mid-Cap Strategy Fund
A-Class	1.65%	(12.14%)	1,000.00	878.60	7.73
C-Class	2.39%	(12.44%)	1,000.00	875.60	11.18
H-Class	1.64%	(12.11%)	1,000.00	878.90	7.68
Russell 2000® 1.5x Strategy Fund
A-Class	1.69%	20.80%	1,000.00	1,208.00	9.30
C-Class	2.44%	20.33%	1,000.00	1,203.30	13.40
H-Class	1.69%	20.80%	1,000.00	1,208.00	9.30

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Russell 2000® Fund
A-Class	1.56%	13.41%	$1,000.00	$1,134.10	$8.30
C-Class	2.64%	12.95%	1,000.00	1,129.50	14.02
H-Class	1.56%	13.38%	1,000.00	1,133.80	8.30
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	(14.59%)	1,000.00	854.10	7.90
C-Class	2.44%	(14.95%)	1,000.00	850.50	11.26
H-Class	1.70%	(14.60%)	1,000.00	854.00	7.86
Government Long Bond 1.2x Strategy Fund
Investor Class	0.94%	18.22%	1,000.00	1,182.20	5.11
Advisor Class	1.45%	17.93%	1,000.00	1,179.30	7.88
A-Class	1.19%	18.11%	1,000.00	1,181.10	6.47
C-Class	1.94%	17.65%	1,000.00	1,176.50	10.53
H-Class	1.18%	18.07%	1,000.00	1,180.70	6.42
Inverse Government Long Bond Strategy Fund
Investor Class	3.08%	(14.52%)	1,000.00	854.80	14.24
Advisor Class	3.58%	(14.70%)	1,000.00	853.00	16.54
A-Class	3.34%	(14.61%)	1,000.00	853.90	15.44
C-Class	4.08%	(14.95%)	1,000.00	850.50	18.82
H-Class	3.07%	(14.56%)	1,000.00	854.40	14.19
High Yield Strategy Fund
A-Class	1.49%	4.01%	1,000.00	1,040.10	7.58
C-Class	2.23%	3.67%	1,000.00	1,036.70	11.32
H-Class	1.44%	4.05%	1,000.00	1,040.50	7.33
Inverse High Yield Strategy Fund
A-Class	1.50%	(7.64%)	1,000.00	923.60	7.19
C-Class	2.23%	(7.15%)	1,000.00	928.50	10.72
H-Class	1.50%	(6.84%)	1,000.00	931.60	7.22
U.S. Government Money Market Fund
Money Market Class	0.21%	0.00%	1,000.00	1,000.00	1.05

THE RYDEX FUNDS ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.25%	5.00%	$1,000.00	$1,018.70	$6.29
Advisor Class	1.76%	5.00%	1,000.00	1,016.16	8.85
A-Class	1.50%	5.00%	1,000.00	1,017.45	7.54
C-Class	2.25%	5.00%	1,000.00	1,013.71	11.30
H-Class	1.51%	5.00%	1,000.00	1,017.40	7.59
S&P 500® Fund
A-Class	1.57%	5.00%	1,000.00	1,017.10	7.90
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
H-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
Inverse S&P 500® Strategy Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.00	6.99
Advisor Class	1.89%	5.00%	1,000.00	1,015.51	9.50
A-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.60%	5.00%	1,000.00	1,016.95	8.05
Monthly Rebalance NASDAQ-100® 2x Strategy Fund4
A-Class	1.35%	5.00%	1,000.00	1,018.20	6.79
C-Class	2.13%	5.00%	1,000.00	1,014.26	10.70
H-Class	1.35%	5.00%	1,000.00	1,018.20	6.79
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.44%	5.00%	1,000.00	1,017.75	7.24
Advisor Class	1.93%	5.00%	1,000.00	1,015.31	9.70
A-Class	1.71%	5.00%	1,000.00	1,016.40	8.60
C-Class	2.44%	5.00%	1,000.00	1,012.76	12.24
H-Class	1.68%	5.00%	1,000.00	1,016.55	8.45
Mid-Cap 1.5x Strategy Fund
A-Class	1.62%	5.00%	1,000.00	1,016.85	8.15
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.66%	5.00%	1,000.00	1,016.65	8.35
Inverse Mid-Cap Strategy Fund
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Russell 2000® 1.5x Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
C-Class	2.44%	5.00%	1,000.00	1,012.76	12.24
H-Class	1.69%	5.00%	1,000.00	1,016.50	8.50

10 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Russell 2000® Fund
A-Class	1.56%	5.00%	$1,000.00	$1,017.15	$7.85
C-Class	2.64%	5.00%	1,000.00	1,011.77	13.24
H-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.40	8.60
C-Class	2.44%	5.00%	1,000.00	1,012.76	12.24
H-Class	1.70%	5.00%	1,000.00	1,016.45	8.55
Government Long Bond 1.2x Strategy Fund
Investor Class	0.94%	5.00%	1,000.00	1,020.24	4.73
Advisor Class	1.45%	5.00%	1,000.00	1,017.70	7.29
A-Class	1.19%	5.00%	1,000.00	1,019.00	5.99
C-Class	1.94%	5.00%	1,000.00	1,015.26	9.75
H-Class	1.18%	5.00%	1,000.00	1,019.05	5.94
Inverse Government Long Bond Strategy Fund
Investor Class	3.08%	5.00%	1,000.00	1,009.57	15.43
Advisor Class	3.58%	5.00%	1,000.00	1,007.08	17.91
A-Class	3.34%	5.00%	1,000.00	1,008.28	16.72
C-Class	4.08%	5.00%	1,000.00	1,004.59	20.39
H-Class	3.07%	5.00%	1,000.00	1,009.62	15.38
High Yield Strategy Fund
A-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
H-Class	1.44%	5.00%	1,000.00	1,017.75	7.24
Inverse High Yield Strategy Fund
A-Class	1.50%	5.00%	1,000.00	1,017.45	7.54
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
H-Class	1.50%	5.00%	1,000.00	1,017.45	7.54
U.S. Government Money Market Fund
Money Market Class	0.21%	5.00%	1,000.00	1,023.88	1.06

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 1.40%, 1.90%, 1.65%, 2.40% and 1.60% for the Investor Class, Advisor Class, A-Class, C-Class and H-Class, respectively. 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 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2014 to March 31, 2015.
4	Since commencement of operations: November 28, 2014. Expenses paid based on actual fund return are calculated using 121 days from the commencement of operations. Expenses paid based on hypothetical 5% return are calculated using 182 days.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

NOVA FUND

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

For the one-year period ended March 31, 2015, Nova Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index. Nova Fund Investor Class returned 17.36%, while the S&P 500 Index returned 12.73% over the same period.

Sectors that contributed most to performance of the underlying index were Health Care and Information Technology. The sector that contributed least was Telecommunication Services, followed by Materials. Energy was the only sector that detracted from return.

Apple, Inc., Home Depot, Inc., and Gilead Sciences, Inc., were the holdings that contributed most to performance of the underlying index for the period. Bank of America Corp., International Business Machines Corp., and Exxon Mobil Corp. detracted the most from performance of the underlying index for the period.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	6.3%
Apple, Inc.	3.3%
Exxon Mobil Corp.	1.6%
Microsoft Corp.	1.5%
Johnson & Johnson	1.3%
Berkshire Hathaway, Inc. — Class B	1.2%
Wells Fargo & Co.	1.2%
General Electric Co.	1.1%
JPMorgan Chase & Co.	1.0%
Procter & Gamble Co.	1.0%
Top Ten Total	19.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	17.36%	19.57%	8.07%
Advisor Class Shares	16.79%	18.98%	7.52%
A-Class Shares	17.09%	19.28%	7.79%
A-Class Shares with sales charge†	11.52%	18.12%	7.27%
C-Class Shares	16.19%	18.40%	7.00%
C-Class Shares with CDSC‡	15.19%	18.40%	7.00%
S&P 500 Index	12.73%	14.47%	8.01%
			Since Inception (09/18/14)
H-Class Shares			4.61%
S&P 500 Index			3.92%

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

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2015
NOVA FUND

	Shares		Value
COMMON STOCKS† - 83.3%
CONSUMER, NON-CYCLICAL - 19.5%
Johnson & Johnson		20,013	$	2,013,309
Procter & Gamble Co.		19,437		1,592,667
Pfizer, Inc.		44,112		1,534,656
Merck & Company, Inc.		20,428		1,174,201
Coca-Cola Co.		28,284		1,146,917
Gilead Sciences, Inc.*		10,720		1,051,953
PepsiCo, Inc.		10,670		1,020,265
Amgen, Inc.		5,462		873,101
Philip Morris International, Inc.		11,134		838,725
Actavis plc*		2,812		836,808
UnitedHealth Group, Inc.		6,864		811,943
Medtronic plc		10,257		799,942
Bristol-Myers Squibb Co.		11,963		771,614
Biogen, Inc.*		1,689		713,163
Altria Group, Inc.		14,174		708,983
AbbVie, Inc.		11,472		671,571
Celgene Corp.*		5,762		664,243
MasterCard, Inc. — Class A		7,026		606,976
Eli Lilly & Co.		7,038		511,311
Abbott Laboratories		10,861		503,190
Express Scripts Holding Co.*		5,232		453,981
Mondelez International, Inc. — Class A		11,872		428,459
Colgate-Palmolive Co.		6,137		425,540
McKesson Corp.		1,676		379,112
Kraft Foods Group, Inc.		4,232		368,671
Anthem, Inc.		1,920		296,467
Automatic Data Processing, Inc.		3,421		292,974
Kimberly-Clark Corp.		2,630		281,699
Kroger Co.		3,536		271,070
Aetna, Inc.		2,531		269,627
Baxter International, Inc.		3,905		267,493
Alexion Pharmaceuticals, Inc.*		1,455		252,152
General Mills, Inc.		4,345		245,927
Cigna Corp.		1,860		240,758
Regeneron Pharmaceuticals, Inc.*		531		239,736
Archer-Daniels-Midland Co.		4,565		216,381
Becton Dickinson and Co.		1,503		215,828
Cardinal Health, Inc.		2,376		214,482
Vertex Pharmaceuticals, Inc.*		1,742		205,504
McGraw Hill Financial, Inc.		1,969		203,595
Stryker Corp.		2,154		198,707
Humana, Inc.		1,078		191,906
AmerisourceBergen Corp. — Class A		1,502		170,732
Boston Scientific Corp.*		9,576		169,974
Lorillard, Inc.		2,591		169,322
Perrigo Company plc		1,014		167,868
Zoetis, Inc.		3,604		166,829
Sysco Corp.		4,263		160,843
HCA Holdings, Inc.*		2,119		159,413
Mylan N.V.*		2,685		159,355
Reynolds American, Inc.		2,218		152,842
Mead Johnson Nutrition Co. — Class A		1,456		146,372
Monster Beverage Corp.*		1,053		145,730
Zimmer Holdings, Inc.		1,223		143,727
Constellation Brands, Inc. — Class A*		1,212		140,846
Whole Foods Market, Inc.		2,597		135,252
Estee Lauder Companies, Inc. — Class A		1,605		133,472
Moody’s Corp.		1,280		132,864
Intuitive Surgical, Inc.*		263		132,823
St. Jude Medical, Inc.		2,025		132,435
Kellogg Co.		1,823		120,227
Endo International plc*		1,279		114,726
ConAgra Foods, Inc.		3,067		112,038
Edwards Lifesciences Corp.*		776		110,549
Dr Pepper Snapple Group, Inc.		1,390		109,087
Hospira, Inc.*		1,234		108,395
Hershey Co.		1,065		107,469
Mallinckrodt plc*		839		106,259
Clorox Co.		945		104,319
Brown-Forman Corp. — Class B		1,122		101,373
DaVita HealthCare Partners, Inc.*		1,243		101,031
Keurig Green Mountain, Inc.		873		97,540
Laboratory Corporation of America Holdings*		722		91,037
CR Bard, Inc.		535		89,532
Molson Coors Brewing Co. — Class B		1,151		85,692
JM Smucker Co.		732		84,714
Henry Schein, Inc.*		604		84,330
Tyson Foods, Inc. — Class A		2,103		80,545
Equifax, Inc.		860		79,980
Quest Diagnostics, Inc.		1,039		79,847
Western Union Co.		3,754		78,121
Universal Health Services, Inc. — Class B		655		77,100
McCormick & Company, Inc.		923		71,173
Coca-Cola Enterprises, Inc.		1,562		69,040
Varian Medical Systems, Inc.*		720		67,745
H&R Block, Inc.		1,981		63,531
United Rentals, Inc.*		696		63,447
Campbell Soup Co.		1,279		59,537
Robert Half International, Inc.		974		58,946
Cintas Corp.		702		57,304
Hormel Foods Corp.		970		55,145
DENTSPLY International, Inc.		1,010		51,399
ADT Corp.		1,232		51,153
Total System Services, Inc.		1,186		45,246
Quanta Services, Inc.*		1,522		43,423
Tenet Healthcare Corp.*		710		35,152
Avery Dennison Corp.		651		34,444
Patterson Companies, Inc.		617		30,103
Total Consumer, Non-cyclical				30,707,005
FINANCIAL - 13.8%
Berkshire Hathaway, Inc. — Class B*		13,126		1,894,345
Wells Fargo & Co.		33,746		1,835,782
JPMorgan Chase & Co.		26,834		1,625,605
Bank of America Corp.		75,714		1,165,238

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
NOVA FUND

	Shares		Value
Citigroup, Inc.		21,836	$	1,124,991
Visa, Inc. — Class A		13,962		913,254
U.S. Bancorp		12,821		559,893
Goldman Sachs Group, Inc.		2,916		548,121
American International Group, Inc.		9,879		541,270
American Express Co.		6,308		492,782
Simon Property Group, Inc.		2,237		437,646
MetLife, Inc.		8,043		406,573
Morgan Stanley		11,098		396,088
PNC Financial Services Group, Inc.		3,748		349,464
BlackRock, Inc. — Class A		914		334,378
Bank of New York Mellon Corp.		8,017		322,604
Capital One Financial Corp.		3,970		312,915
American Tower Corp. — Class A		3,041		286,310
ACE Ltd.		2,356		262,670
Prudential Financial, Inc.		3,268		262,453
Charles Schwab Corp.		8,305		252,804
Travelers Companies, Inc.		2,314		250,213
State Street Corp.		2,967		218,164
Marsh & McLennan Companies, Inc.		3,878		217,517
CME Group, Inc. — Class A		2,282		216,128
Allstate Corp.		2,997		213,296
Public Storage		1,045		206,011
Equity Residential		2,618		203,837
BB&T Corp.		5,188		202,280
Aflac, Inc.		3,159		202,208
Crown Castle International Corp.		2,404		198,426
Health Care REIT, Inc.		2,515		194,560
Aon plc		2,017		193,874
Intercontinental Exchange, Inc.		806		188,016
Discover Financial Services		3,220		181,447
Ventas, Inc.		2,381		173,861
Ameriprise Financial, Inc.		1,315		172,055
Chubb Corp.		1,662		168,028
AvalonBay Communities, Inc.		950		165,538
Prologis, Inc.		3,686		160,562
SunTrust Banks, Inc.		3,775		155,115
Boston Properties, Inc.		1,103		154,949
T. Rowe Price Group, Inc.		1,877		151,999
Franklin Resources, Inc.		2,820		144,722
HCP, Inc.		3,317		143,328
Vornado Realty Trust		1,258		140,896
General Growth Properties, Inc.		4,523		133,655
Hartford Financial Services Group, Inc.		3,030		126,715
Weyerhaeuser Co.		3,779		125,274
Invesco Ltd.		3,089		122,602
M&T Bank Corp.		957		121,539
Fifth Third Bancorp		5,864		110,536
Northern Trust Corp.		1,580		110,047
Host Hotels & Resorts, Inc.		5,452		110,021
Essex Property Trust, Inc.		469		107,823
Lincoln National Corp.		1,845		106,014
Progressive Corp.		3,858		104,938
Principal Financial Group, Inc.		1,970		101,199
Regions Financial Corp.		9,665		91,334
SL Green Realty Corp.		710		91,150
Loews Corp.		2,149		87,744
KeyCorp		6,156		87,169
Macerich Co.		1,013		85,426
Affiliated Managers Group, Inc.*		394		84,623
Kimco Realty Corp.		2,970		79,745
CBRE Group, Inc. — Class A*		2,013		77,923
XL Group plc — Class A		1,837		67,602
Huntington Bancshares, Inc.		5,831		64,433
Unum Group		1,810		61,051
E*TRADE Financial Corp.*		2,080		59,394
Navient Corp.		2,889		58,733
Comerica, Inc.		1,284		57,947
Cincinnati Financial Corp.		1,064		56,690
Plum Creek Timber Company, Inc.		1,267		55,051
Torchmark Corp.		915		50,252
Iron Mountain, Inc.		1,346		49,102
Apartment Investment & Management Co. — Class A		1,126		44,319
NASDAQ OMX Group, Inc.		851		43,350
Zions Bancorporation		1,461		39,447
Legg Mason, Inc.		714		39,413
Hudson City Bancorp, Inc.		3,464		36,303
People’s United Financial, Inc.		2,219		33,729
Assurant, Inc.		496		30,459
Genworth Financial, Inc. — Class A*		3,575		26,133
Total Financial				21,881,101
TECHNOLOGY - 11.2%
Apple, Inc.		41,924		5,216,604
Microsoft Corp.		59,046		2,400,515
Intel Corp.		34,087		1,065,901
International Business Machines Corp.		6,616		1,061,868
Oracle Corp.		23,073		995,600
QUALCOMM, Inc.		11,873		823,274
Texas Instruments, Inc.		7,537		431,004
Accenture plc — Class A		4,522		423,667
Hewlett-Packard Co.		13,082		407,635
EMC Corp.		14,309		365,738
salesforce.com, Inc.*		4,356		291,024
Cognizant Technology Solutions Corp. — Class A*		4,388		273,767
Adobe Systems, Inc.*		3,425		253,245
Avago Technologies Ltd.		1,847		234,532
Micron Technology, Inc.*		7,754		210,366
Applied Materials, Inc.		8,843		199,497
Intuit, Inc.		1,992		193,144
Broadcom Corp. — Class A		3,923		169,846
Cerner Corp.*		2,195		160,806
Western Digital Corp.		1,563		142,249
Analog Devices, Inc.		2,243		141,309
Fidelity National Information Services, Inc.		2,052		139,659

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
NOVA FUND

	Shares		Value
Fiserv, Inc.*		1,719	$	136,489
Skyworks Solutions, Inc.		1,374		135,050
Electronic Arts, Inc.*		2,238		131,628
Seagate Technology plc		2,364		122,999
Paychex, Inc.		2,353		116,744
Red Hat, Inc.*		1,320		99,990
SanDisk Corp.		1,533		97,529
Xerox Corp.		7,524		96,683
Autodesk, Inc.*		1,632		95,700
Altera Corp.		2,166		92,943
Akamai Technologies, Inc.*		1,288		91,506
Linear Technology Corp.		1,723		80,636
Lam Research Corp.		1,147		80,560
Xilinx, Inc.		1,882		79,609
NetApp, Inc.		2,244		79,572
NVIDIA Corp.		3,717		77,778
CA, Inc.		2,295		74,840
Citrix Systems, Inc.*		1,150		73,451
Microchip Technology, Inc.		1,450		70,905
KLA-Tencor Corp.		1,171		68,258
Computer Sciences Corp.		1,015		66,259
Teradata Corp.*		1,045		46,126
Pitney Bowes, Inc.		1,451		33,837
Dun & Bradstreet Corp.		259		33,245
Total Technology				17,683,587
COMMUNICATIONS - 9.8%
Verizon Communications, Inc.		29,909		1,454,475
Facebook, Inc. — Class A*		15,110		1,242,268
AT&T, Inc.		37,356		1,219,673
Walt Disney Co.		11,255		1,180,537
Google, Inc. — Class A*		2,056		1,140,463
Google, Inc. — Class C*		2,060		1,128,880
Comcast Corp. — Class A		18,289		1,032,779
Amazon.com, Inc.*		2,742		1,020,298
Cisco Systems, Inc.		36,741		1,011,296
Time Warner, Inc.		5,978		504,782
eBay, Inc.*		7,925		457,114
Twenty-First Century Fox, Inc. — Class A		13,160		445,334
Priceline Group, Inc.*		374		435,392
DIRECTV*		3,619		307,977
Time Warner Cable, Inc.		2,023		303,207
Yahoo!, Inc.*		6,266		278,430
CBS Corp. — Class B		3,293		199,655
Netflix, Inc.*		436		181,677
Viacom, Inc. — Class B		2,629		179,561
CenturyLink, Inc.		4,077		140,860
Omnicom Group, Inc.		1,776		138,493
Alliance Data Systems Corp.*		452		133,905
Symantec Corp.		4,912		114,769
Level 3 Communications, Inc.*		2,064		111,126
Nielsen N.V.		2,272		101,263
Equinix, Inc.		406		94,537
Motorola Solutions, Inc.		1,373		91,538
Expedia, Inc.		712		67,021
TripAdvisor, Inc.*		802		66,702
Interpublic Group of Companies, Inc.		2,968		65,652
Gannett Company, Inc.		1,634		60,589
F5 Networks, Inc.*		519		59,654
Harris Corp.		750		59,070
Juniper Networks, Inc.		2,607		58,866
News Corp. — Class A*		3,595		57,556
Discovery Communications, Inc. — Class C*		1,946		57,358
Frontier Communications Corp.		7,215		50,866
VeriSign, Inc.*		757		50,696
Scripps Networks Interactive, Inc. — Class A		701		48,061
Discovery Communications, Inc. — Class A*		1,071		32,944
Windstream Holdings, Inc.		4,337		32,094
Cablevision Systems Corp. — Class A		1,579		28,896
Total Communications				15,446,314
CONSUMER, CYCLICAL - 8.8%
Home Depot, Inc.		9,486		1,077,704
Wal-Mart Stores, Inc.		11,367		934,935
CVS Health Corp.		8,100		836,001
McDonald’s Corp.		6,918		674,089
Walgreens Boots Alliance, Inc.		6,276		531,452
Lowe’s Companies, Inc.		7,002		520,879
Starbucks Corp.		5,397		511,096
NIKE, Inc. — Class B		5,037		505,362
Costco Wholesale Corp.		3,167		479,785
Ford Motor Co.		28,473		459,554
Target Corp.		4,584		376,209
General Motors Co.		9,736		365,100
TJX Companies, Inc.		4,915		344,297
American Airlines Group, Inc.		5,162		272,450
Delta Air Lines, Inc.		5,933		266,748
Yum! Brands, Inc.		3,118		245,449
Johnson Controls, Inc.		4,731		238,632
Southwest Airlines Co.		4,866		215,564
VF Corp.		2,464		185,563
L Brands, Inc.		1,770		166,893
Delphi Automotive plc		2,089		166,577
Dollar General Corp.		2,184		164,630
PACCAR, Inc.		2,552		161,133
Macy’s, Inc.		2,451		159,094
O’Reilly Automotive, Inc.*		732		158,288
AutoZone, Inc.*		231		157,579
Ross Stores, Inc.		1,490		156,986
Carnival Corp.		3,242		155,098
Chipotle Mexican Grill, Inc. — Class A*		223		145,070
Dollar Tree, Inc.*		1,481		120,176
Marriott International, Inc. — Class A		1,493		119,918
Kohl’s Corp.		1,454		113,776
Whirlpool Corp.		563		113,760
CarMax, Inc.*		1,512		104,343
Starwood Hotels & Resorts Worldwide, Inc.		1,236		103,206
Bed Bath & Beyond, Inc.*		1,336		102,571

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
NOVA FUND

	Shares		Value
Genuine Parts Co.		1,099	$	102,416
WW Grainger, Inc.		433		102,106
BorgWarner, Inc.		1,630		98,582
Royal Caribbean Cruises Ltd.		1,186		97,074
Under Armour, Inc. — Class A*		1,201		96,981
Hanesbrands, Inc.		2,885		96,676
Michael Kors Holdings Ltd.*		1,445		95,009
Harley-Davidson, Inc.		1,523		92,507
Tractor Supply Co.		980		83,359
Mohawk Industries, Inc.*		447		83,030
The Gap, Inc.		1,910		82,760
Coach, Inc.		1,985		82,239
Nordstrom, Inc.		1,013		81,364
Fastenal Co.		1,957		81,088
Best Buy Company, Inc.		2,096		79,208
Wyndham Worldwide Corp.		869		78,618
Newell Rubbermaid, Inc.		1,952		76,265
Staples, Inc.		4,611		75,090
Wynn Resorts Ltd.		584		73,514
Tiffany & Co.		810		71,288
DR Horton, Inc.		2,393		68,152
Lennar Corp. — Class A		1,286		66,628
Harman International Industries, Inc.		494		66,013
PVH Corp.		593		63,190
Darden Restaurants, Inc.		893		61,921
Ralph Lauren Corp. — Class A		434		57,071
Mattel, Inc.		2,435		55,640
Family Dollar Stores, Inc.		692		54,834
PulteGroup, Inc.		2,385		53,019
Goodyear Tire & Rubber Co.		1,941		52,562
Hasbro, Inc.		805		50,908
Leggett & Platt, Inc.		996		45,906
AutoNation, Inc.*		540		34,738
Urban Outfitters, Inc.*		720		32,868
GameStop Corp. — Class A1		782		29,685
Fossil Group, Inc.*		319		26,302
Total Consumer, Cyclical				13,958,578
INDUSTRIAL - 8.6%
General Electric Co.		72,442		1,797,287
3M Co.		4,569		753,657
Boeing Co.		4,715		707,627
United Technologies Corp.		5,948		697,106
Union Pacific Corp.		6,343		687,010
Honeywell International, Inc.		5,634		587,683
United Parcel Service, Inc. — Class B		5,002		484,894
Lockheed Martin Corp.		1,931		391,916
Thermo Fisher Scientific, Inc.		2,856		383,675
Danaher Corp.		4,419		375,173
Caterpillar, Inc.		4,363		349,170
FedEx Corp.		1,896		313,693
General Dynamics Corp.		2,268		307,836
Emerson Electric Co.		4,932		279,251
Illinois Tool Works, Inc.		2,513		244,113
Raytheon Co.		2,213		241,770
CSX Corp.		7,130		236,146
Eaton Corporation plc		3,416		232,083
Northrop Grumman Corp.		1,429		230,012
Norfolk Southern Corp.		2,214		227,865
Deere & Co.		2,443		214,227
Precision Castparts Corp.		1,020		214,200
TE Connectivity Ltd.		2,924		209,417
Corning, Inc.		9,151		207,544
Cummins, Inc.		1,212		168,032
Waste Management, Inc.		3,073		166,649
Amphenol Corp. — Class A		2,233		131,591
Tyco International plc		3,024		130,213
Ingersoll-Rand plc		1,896		129,080
Roper Industries, Inc.		723		124,356
Parker-Hannifin Corp.		1,025		121,750
Rockwell Automation, Inc.		975		113,090
Stanley Black & Decker, Inc.		1,133		108,043
Agilent Technologies, Inc.		2,417		100,426
Rockwell Collins, Inc.		957		92,398
AMETEK, Inc.		1,736		91,209
Textron, Inc.		1,992		88,305
Stericycle, Inc.*		611		85,803
Pentair plc		1,314		82,637
Kansas City Southern		795		81,154
Dover Corp.		1,174		81,147
Vulcan Materials Co.		951		80,169
CH Robinson Worldwide, Inc.		1,054		77,174
Pall Corp.		768		77,100
L-3 Communications Holdings, Inc.		595		74,845
Waters Corp.*		598		74,343
Republic Services, Inc. — Class A		1,804		73,170
Ball Corp.		989		69,863
Sealed Air Corp.		1,513		68,932
Masco Corp.		2,516		67,177
Expeditors International of Washington, Inc.		1,380		66,488
Martin Marietta Materials, Inc.		445		62,211
Snap-on, Inc.		419		61,618
Fluor Corp.		1,064		60,818
MeadWestvaco Corp.		1,205		60,093
Flowserve Corp.		970		54,795
Xylem, Inc.		1,313		45,981
Allegion plc		692		42,330
Jacobs Engineering Group, Inc.*		924		41,728
PerkinElmer, Inc.		814		41,628
Garmin Ltd.		870		41,342
Ryder System, Inc.		381		36,153
FLIR Systems, Inc.		1,007		31,499
Owens-Illinois, Inc.*		1,182		27,564
Joy Global, Inc.		701		27,465
Total Industrial				13,633,724

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
NOVA FUND

	Shares		Value
ENERGY - 6.7%
Exxon Mobil Corp.		30,191	$	2,566,234
Chevron Corp.		13,533		1,420,694
Schlumberger Ltd.		9,179		765,896
ConocoPhillips		8,864		551,873
Kinder Morgan, Inc.		12,265		515,866
Occidental Petroleum Corp.		5,546		404,858
EOG Resources, Inc.		3,947		361,900
Phillips 66		3,912		307,483
Anadarko Petroleum Corp.		3,647		302,008
Halliburton Co.		6,116		268,370
Williams Companies, Inc.		4,845		245,109
Valero Energy Corp.		3,706		235,776
Marathon Petroleum Corp.		1,966		201,299
Baker Hughes, Inc.		3,127		198,815
Pioneer Natural Resources Co.		1,073		175,446
Spectra Energy Corp.		4,830		174,701
Devon Energy Corp.		2,782		167,782
Apache Corp.		2,712		163,615
National Oilwell Varco, Inc.		2,951		147,520
Noble Energy, Inc.		2,784		136,138
Marathon Oil Corp.		4,859		126,868
Hess Corp.		1,749		118,705
Equities Corp.		1,093		90,577
Cabot Oil & Gas Corp. — Class A		2,974		87,822
Tesoro Corp.		899		82,070
Cimarex Energy Co.		630		72,507
ONEOK, Inc.		1,501		72,408
Southwestern Energy Co.*		2,768		64,190
Cameron International Corp.*		1,395		62,942
Range Resources Corp.		1,194		62,136
FMC Technologies, Inc.*		1,666		61,659
Murphy Oil Corp.		1,201		55,967
Helmerich & Payne, Inc.		775		52,755
Chesapeake Energy Corp.		3,725		52,746
CONSOL Energy, Inc.		1,658		46,242
Newfield Exploration Co.*		1,157		40,599
Transocean Ltd.1		2,452		35,971
Ensco plc — Class A		1,686		35,524
First Solar, Inc.*		542		32,406
Noble Corporation plc		1,741		24,861
QEP Resources, Inc.		1,163		24,249
Diamond Offshore Drilling, Inc.		484		12,966
Total Energy				10,627,553
UTILITIES - 2.5%
Duke Energy Corp.		5,093		391,040
NextEra Energy, Inc.		3,192		332,127
Dominion Resources, Inc.		4,233		299,993
Southern Co.		6,549		289,990
Exelon Corp.		6,189		208,012
American Electric Power Company, Inc.		3,525		198,281
PG&E Corp.		3,429		181,977
Sempra Energy		1,667		181,736
PPL Corp.		4,800		161,568
Public Service Enterprise Group, Inc.		3,643		152,715
Edison International		2,346		146,555
Consolidated Edison, Inc.		2,109		128,649
Xcel Energy, Inc.		3,642		126,778
Eversource Energy		2,281		115,236
FirstEnergy Corp.		3,032		106,302
DTE Energy Co.		1,276		102,960
Entergy Corp.		1,299		100,660
NiSource, Inc.		2,276		100,508
Wisconsin Energy Corp.		1,624		80,388
Ameren Corp.		1,746		73,681
CMS Energy Corp.		1,983		69,227
CenterPoint Energy, Inc.		3,094		63,149
NRG Energy, Inc.		2,432		61,262
AES Corp.		4,653		59,791
SCANA Corp.		1,029		56,585
Pinnacle West Capital Corp.		796		50,745
Pepco Holdings, Inc.		1,820		48,831
AGL Resources, Inc.		861		42,749
Integrys Energy Group, Inc.		573		41,267
TECO Energy, Inc.		1,695		32,883
Total Utilities				4,005,645
BASIC MATERIALS - 2.4%
EI du Pont de Nemours & Co.		6,518		465,841
Monsanto Co.		3,478		391,414
Dow Chemical Co.		7,833		375,827
Praxair, Inc.		2,079		251,018
LyondellBasell Industries N.V. — Class A		2,850		250,230
Ecolab, Inc.		1,939		221,783
PPG Industries, Inc.		979		220,804
Air Products & Chemicals, Inc.		1,388		209,977
International Paper Co.		3,043		168,856
Sherwin-Williams Co.		581		165,295
Freeport-McMoRan, Inc.		7,484		141,822
Sigma-Aldrich Corp.		860		118,895
Alcoa, Inc.		8,797		113,657
Nucor Corp.		2,296		109,129
Mosaic Co.		2,238		103,082
CF Industries Holdings, Inc.		345		97,870
Newmont Mining Corp.		3,590		77,939
Eastman Chemical Co.		1,071		74,177
International Flavors & Fragrances, Inc.		581		68,209
FMC Corp.		960		54,960
Airgas, Inc.		487		51,676
Allegheny Technologies, Inc.		783		23,498
Total Basic Materials				3,755,959
DIVERSIFIED - 0.0%
Leucadia National Corp.		2,270		50,598

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
NOVA FUND

	Shares		Value
Total Common Stocks
(Cost $99,857,034)			$	131,750,064
MUTUAL FUNDS† - 6.3%
Guggenheim Strategy Fund I2		402,097		10,012,215
Total Mutual Funds
(Cost $9,995,235)				10,012,215
	Face Amount
REPURCHASE AGREEMENTS††,3 - 3.6%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	4,458,421		4,458,421
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		681,341		681,341
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		546,888		546,888
Total Repurchase Agreements
(Cost $5,686,650)				5,686,650
SECURITIES LENDING COLLATERAL††,4 - 0.0%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		20,372		20,372
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		7,008		7,008

Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		3,617		3,617
Total Securities Lending Collateral
(Cost $30,997)				30,997
Total Investments - 93.2%
(Cost $115,569,916)			$	147,479,926
Other Assets & Liabilities, net - 6.8%				10,791,931
Total Net Assets - 100.0%			$	158,271,857
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $25,743,750)		250	$	51,181
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc April 2015 S&P 500 Index Swap, Terminating 04/30/155 (Notional Value $77,397,405)		37,428	$	270,194
Credit Suisse Capital, LLC April 2015 S&P 500 Index Swap, Terminating 04/28/155 (Notional Value $1,446,763)		700		9,976
Goldman Sachs International April 2015 S&P 500 Index Swap, Terminating 04/28/155 (Notional Value $1,060,149)		513		7,287
(Total Notional Value $79,904,317)			$	287,457

*	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 March 31, 2015 — 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	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 ANNUAL REPORT | 19

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $30,716 of securities loaned (cost $109,852,269)	$	141,762,279
Repurchase agreements, at value (cost $5,717,647)		5,717,647
Total investments (cost $115,569,916)		147,479,926
Segregated cash with broker		8,618,647
Unrealized appreciation on swap agreements		287,457
Cash		1,313
Receivables:
Securities sold		13,926,440
Fund shares sold		7,139,282
Dividends		161,960
Swap settlement		25,646
Securities lending income		163
Interest		5
Total assets		177,640,839
Liabilities:
Payable for:
Fund shares redeemed		18,822,042
Variation margin		201,250
Management fees		103,900
Transfer agent and administrative fees		34,633
Return of securities loaned		31,450
Securities purchased		28,740
Distribution and service fees		13,873
Portfolio accounting fees		13,853
Miscellaneous		119,241
Total liabilities		19,368,982
Commitments and contingent liabilities (Note 15)		—
Net assets	$	158,271,857
Net assets consist of:
Paid in capital	$	133,676,112
Undistributed net investment income		261,033
Accumulated net realized loss on investments		(7,913,936	)
Net unrealized appreciation on investments		32,248,648
Net assets	$	158,271,857
Investor Class:
Net assets	$	136,799,599
Capital shares outstanding		2,768,120
Net asset value per share	$	49.42
Advisor Class:
Net assets	$	3,857,079
Capital shares outstanding		85,565
Net asset value per share	$	45.08
A-Class:
Net assets	$	3,930,328
Capital shares outstanding		84,707
Net asset value per share	$	46.40
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.71
C-Class:
Net assets	$	11,992,519
Capital shares outstanding		282,183
Net asset value per share	$	42.50
H-Class:
Net assets	$	1,692,332
Capital shares outstanding		36,469
Net asset value per share	$	46.40

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

NOVA FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $361)	$	2,323,941
Interest		3,529
Income from securities lending, net		968
Total investment income		2,328,438
Expenses:
Management fees		1,107,899
Transfer agent and administrative fees		369,300
Distribution and service fees:
Advisor Class		69,750
A-Class		7,096
C-Class		109,207
H-Class**		5,403
Portfolio accounting fees		147,719
Custodian fees		17,267
Trustees’ fees*		9,177
Line of credit fees		566
Miscellaneous		224,021
Total expenses		2,067,405
Net investment income		261,033
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	4,837,548
Swap agreements		5,057,830
Futures contracts		5,670,134
Net realized gain		15,565,512
Net change in unrealized appreciation (depreciation) on:
Investments		5,411,522
Swap agreements		(49,146	)
Futures contracts		(221,076	)
Net change in unrealized appreciation (depreciation)		5,141,300
Net realized and unrealized gain		20,706,812
Net increase in net assets resulting from operations	$	20,967,845

*	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.

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	261,033		$	179,996
Net realized gain on investments		15,565,512			11,012,089
Net change in unrealized appreciation (depreciation) on investments		5,141,300			11,266,770
Net increase in net assets resulting from operations		20,967,845			22,458,855
Distributions to shareholders from:
Net investment income
Investor Class		(127,360	)		—
Advisor Class		(24,443	)		—
A-Class		(4,698	)		—
C-Class		(12,406	)		—
H-Class*		(244	)		—
Total distributions to shareholders		(169,151	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		608,271,001			498,203,037
Advisor Class		251,879,413			225,410,140
A-Class		6,568,419			1,020,317
C-Class		5,111,829			2,942,771
H-Class*		88,621,421			—
Distributions reinvested
Investor Class		122,980			—
Advisor Class		24,400			—
A-Class		4,554			—
C-Class		11,924			—
H-Class*		244			—
Cost of shares redeemed
Investor Class		(590,801,336	)		(464,394,553	)
Advisor Class		(259,841,399	)		(232,200,336	)
A-Class		(4,276,469	)		(1,333,344	)
C-Class		(5,079,311	)		(3,860,568	)
H-Class*		(86,211,806	)		—
Net increase from capital share transactions		14,405,864			25,787,464
Net increase in net assets		35,204,558			48,246,319
Net assets:
Beginning of year		123,067,299			74,820,980
End of year	$	158,271,857		$	123,067,299
Undistributed net investment income at end of year	$	261,033		$	169,151

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Year Ended March 31, 2015			Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class		13,070,082			13,162,417
Advisor Class		6,029,241			6,534,602
A-Class		148,884			29,025
C-Class		126,849			92,387
H-Class*		1,938,918			—
Shares issued from reinvestment of distributions
Investor Class		2,527			—
Advisor Class		549			—
A-Class		100			—
C-Class		284			—
H-Class*		5			—
Shares redeemed
Investor Class		(12,754,141	)		(12,359,847	)
Advisor Class		(6,156,017	)		(6,734,244	)
A-Class		(95,445	)		(37,200	)
C-Class		(128,803	)		(118,184	)
H-Class*		(1,902,454	)		—
Net increase in shares		280,579			568,956

* Since commencement of operations: September 18, 2014.

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

NOVA FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	42.15		$	32.05		$	26.82		$	24.59		$	20.28
Income (loss) from investment operations:
Net investment income (loss)a		.14			.14			.05			.08			.02
Net gain (loss) on investments (realized and unrealized)		7.18			9.96			5.21			2.15			4.31
Total from investment operations		7.32			10.10			5.26			2.23			4.33
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			(.02	)
Total distributions		(.05	)		—			(.03	)		—			(.02	)
Net asset value, end of period	$	49.42		$	42.15		$	32.05		$	26.82		$	24.59
Total Returnb		17.36	%		31.51	%		19.62	%		9.07	%		21.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	136,800		$	103,254		$	52,785		$	54,598		$	65,102
Ratios to average net assets:
Net investment income (loss)		0.31	%		0.37	%		0.20	%		0.36	%		0.11	%
Total expensesc		1.27	%		1.28	%		1.26	%		1.26	%		1.29	%
Portfolio turnover rate		403	%		259	%		137	%		116	%		53	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	38.64		$	29.51		$	24.85		$	22.88		$	18.97
Income (loss) from investment operations:
Net investment income (loss)a		(.10	)		(.04	)		(.11	)		(.04	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		6.59			9.17			4.80			2.01			4.00
Total from investment operations		6.49			9.13			4.69			1.97			3.93
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			(.02	)
Total distributions		(.05	)		—			(.03	)		—			(.02	)
Net asset value, end of period	$	45.08		$	38.64		$	29.51		$	24.85		$	22.88
Total Returnb		16.79	%		30.94	%		18.93	%		8.57	%		20.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,857		$	8,183		$	12,141		$	11,112		$	6,318
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.12	%)		(0.43	%)		(0.18	%)		(0.37	%)
Total expensesc		1.78	%		1.78	%		1.75	%		1.75	%		1.79	%
Portfolio turnover rate		403	%		259	%		137	%		116	%		53	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	39.67		$	30.23		$	25.38		$	23.32		$	19.28
Income (loss) from investment operations:
Net investment income (loss)a		.02			.05			(.01	)		.01			(.02	)
Net gain (loss) on investments (realized and unrealized)		6.76			9.39			4.89			2.05			4.08
Total from investment operations		6.78			9.44			4.88			2.06			4.06
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			(.02	)
Total distributions		(.05	)		—			(.03	)		—			(.02	)
Net asset value, end of period	$	46.40		$	39.67		$	30.23		$	25.38		$	23.32
Total Returnb		17.09	%		31.23	%		19.28	%		8.79	%		21.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,930		$	1,237		$	1,189		$	1,472		$	5,843
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.14	%		(0.04	%)		0.06	%		(0.11	%)
Total expensesc		1.52	%		1.53	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		403	%		259	%		137	%		116	%		53	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	36.62		$	28.11		$	23.77		$	22.01		$	18.33
Income (loss) from investment operations:
Net investment income (loss)a		(.28	)		(.20	)		(.19	)		(.13	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		6.21			8.71			4.56			1.89			3.86
Total from investment operations		5.93			8.51			4.37			1.76			3.70
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			(.02	)
Total distributions		(.05	)		—			(.03	)		—			(.02	)
Net asset value, end of period	$	42.50		$	36.62		$	28.11		$	23.77		$	22.01
Total Returnb		16.19	%		30.27	%		18.39	%		8.00	%		20.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,993		$	10,394		$	8,705		$	8,829		$	10,461
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.62	%)		(0.79	%)		(0.62	%)		(0.85	%)
Total expensesc		2.27	%		2.28	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate		403	%		259	%		137	%		116	%		53	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	44.40
Income (loss) from investment operations:
Net investment income (loss)a		.02
Net gain (loss) on investments (realized and unrealized)		2.03
Total from investment operations		2.05
Less distributions from:
Net investment income		(.05	)
Total distributions		(.05	)
Net asset value, end of period	$	46.40
Total Returnb		4.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,692
Ratios to average net assets:
Net investment income (loss)		0.08	%
Total expensesc		1.51	%
Portfolio turnover rate		403	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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”).

The broad-market S&P 500 Index returned 12.73% for the one-year period ended March 31, 2015, while the S&P 500^® Fund H-Class returned 10.90% for the same period. The Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the S&P 500 Index.

Sectors that contributed most to performance of the underlying index were Health Care and Information Technology. The sector that contributed least was Telecommunication Services, followed by Materials. Energy was the only sector that detracted from return.

Apple, Inc., Home Depot, Inc., and Gilead Sciences, Inc., were the holdings that contributed most to performance of the underlying index for the period. Bank of America Corp., International Business Machines Corp., and Exxon Mobil Corp. detracted the most from performance of the underlying index for the period.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.5%
Exxon Mobil Corp.	1.7%
Microsoft Corp.	1.6%
Johnson & Johnson	1.4%
Berkshire Hathaway, Inc. — Class B	1.3%
Wells Fargo & Co.	1.2%
General Electric Co.	1.2%
JPMorgan Chase & Co.	1.1%
Procter & Gamble Co.	1.1%
Pfizer, Inc.	1.0%
Top Ten Total	15.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 27

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (05/31/06)
A-Class Shares	10.90%	12.65%	6.43%
A-Class Shares with sales charge†	5.64%	11.55%	5.84%
C-Class Shares	10.04%	11.76%	5.60%
C-Class Shares with CDSC‡	9.04%	11.76%	5.60%
H-Class Shares	10.90%	12.66%	6.43%
S&P 500 Index	12.73%	14.47%	7.95%

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

28 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 88.5%
CONSUMER, NON-CYCLICAL - 20.6%
Johnson & Johnson		40,805	$	4,104,983
Procter & Gamble Co.		39,631		3,247,364
Pfizer, Inc.		89,943		3,129,117
Merck & Company, Inc.		41,652		2,394,157
Coca-Cola Co.		57,669		2,338,478
Gilead Sciences, Inc.*		21,858		2,144,926
PepsiCo, Inc.		21,754		2,080,117
Amgen, Inc.		11,137		1,780,249
Philip Morris International, Inc.		22,702		1,710,142
Actavis plc*		5,730		1,705,366
UnitedHealth Group, Inc.		13,995		1,655,469
Medtronic plc		20,913		1,631,004
Bristol-Myers Squibb Co.		24,392		1,573,284
Biogen, Inc.*		3,443		1,453,772
Altria Group, Inc.		28,900		1,445,578
AbbVie, Inc.		23,391		1,369,309
Celgene Corp.*		11,749		1,354,425
MasterCard, Inc. — Class A		14,326		1,237,623
Eli Lilly & Co.		14,349		1,042,455
Abbott Laboratories		22,145		1,025,978
Express Scripts Holding Co.*		10,667		925,576
Mondelez International, Inc. — Class A		24,207		873,630
Colgate-Palmolive Co.		12,513		867,651
McKesson Corp.		3,417		772,925
Kraft Foods Group, Inc.		8,629		751,715
Anthem, Inc.		3,915		604,515
Automatic Data Processing, Inc.		6,973		597,168
Kimberly-Clark Corp.		5,363		574,431
Kroger Co.		7,210		552,718
Aetna, Inc.		5,161		549,801
Baxter International, Inc.		7,962		545,397
Alexion Pharmaceuticals, Inc.*		2,967		514,181
General Mills, Inc.		8,860		501,476
Cigna Corp.		3,793		490,966
Regeneron Pharmaceuticals, Inc.*		1,083		488,953
Archer-Daniels-Midland Co.		9,308		441,199
Becton Dickinson and Co.		3,065		440,075
Cardinal Health, Inc.		4,845		437,358
Vertex Pharmaceuticals, Inc.*		3,553		419,147
McGraw Hill Financial, Inc.		4,014		415,048
Stryker Corp.		4,390		404,978
Humana, Inc.		2,196		390,932
AmerisourceBergen Corp. — Class A		3,061		347,944
Boston Scientific Corp.*		19,526		346,587
Lorillard, Inc.		5,284		345,309
Perrigo Company plc		2,066		342,026
Zoetis, Inc.		7,349		340,185
Sysco Corp.		8,693		327,987
HCA Holdings, Inc.*		4,320		324,993
Mylan N.V.*		5,472		324,763
Reynolds American, Inc.		4,522		311,611
Mead Johnson Nutrition Co. — Class A		2,969		298,474
Monster Beverage Corp.*		2,146		296,996
Zimmer Holdings, Inc.		2,493		292,977
Constellation Brands, Inc. — Class A*		2,470		287,039
Whole Foods Market, Inc.		5,294		275,712
Estee Lauder Companies, Inc. — Class A		3,274		272,266
Intuitive Surgical, Inc.*		537		271,201
Moody’s Corp.		2,609		270,814
St. Jude Medical, Inc.		4,128		269,971
Kellogg Co.		3,715		245,004
Endo International plc*		2,605		233,669
ConAgra Foods, Inc.		6,250		228,313
Edwards Lifesciences Corp.*		1,583		225,514
Dr Pepper Snapple Group, Inc.		2,832		222,255
Hospira, Inc.*		2,515		220,918
Hershey Co.		2,171		219,076
Mallinckrodt plc*		1,709		216,445
Clorox Co.		1,925		212,501
Brown-Forman Corp. — Class B		2,287		206,630
DaVita HealthCare Partners, Inc.*		2,534		205,964
Keurig Green Mountain, Inc.		1,779		198,768
Laboratory Corporation of America Holdings*		1,472		185,604
CR Bard, Inc.		1,090		182,412
Molson Coors Brewing Co. — Class B		2,346		174,660
JM Smucker Co.		1,493		172,785
Henry Schein, Inc.*		1,230		171,733
Tyson Foods, Inc. — Class A		4,288		164,230
Equifax, Inc.		1,754		163,122
Quest Diagnostics, Inc.		2,118		162,768
Western Union Co.		7,652		159,238
Universal Health Services, Inc. — Class B		1,336		157,261
McCormick & Company, Inc.		1,882		145,121
Coca-Cola Enterprises, Inc.		3,184		140,733
Varian Medical Systems, Inc.*		1,469		138,218
H&R Block, Inc.		4,039		129,531
United Rentals, Inc.*		1,416		129,083
Campbell Soup Co.		2,608		121,402
Robert Half International, Inc.		1,983		120,011
Cintas Corp.		1,429		116,649
Hormel Foods Corp.		1,976		112,336
DENTSPLY International, Inc.		2,060		104,833
ADT Corp.		2,512		104,298
Total System Services, Inc.		2,417		92,209
Quanta Services, Inc.*		3,103		88,529
Tenet Healthcare Corp.*		1,445		71,542
Avery Dennison Corp.		1,328		70,264
Patterson Companies, Inc.		1,257		61,329
Total Consumer, Non-cyclical				62,605,449
FINANCIAL - 14.7%
Berkshire Hathaway, Inc. — Class B*		26,763		3,862,436
Wells Fargo & Co.		68,807		3,743,101
JPMorgan Chase & Co.		54,714		3,314,574
Bank of America Corp.		154,378		2,375,877

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P 500® FUND

	Shares		Value
Citigroup, Inc.		44,523	$	2,293,825
Visa, Inc. — Class A		28,469		1,862,157
U.S. Bancorp		26,140		1,141,534
Goldman Sachs Group, Inc.		5,945		1,117,481
American International Group, Inc.		20,141		1,103,525
American Express Co.		12,863		1,004,858
Simon Property Group, Inc.		4,562		892,509
MetLife, Inc.		16,398		828,919
Morgan Stanley		22,626		807,522
PNC Financial Services Group, Inc.		7,641		712,448
BlackRock, Inc. — Class A		1,862		681,194
Bank of New York Mellon Corp.		16,347		657,803
Capital One Financial Corp.		8,095		638,048
American Tower Corp. — Class A		6,201		583,825
ACE Ltd.		4,804		535,598
Prudential Financial, Inc.		6,662		535,025
Charles Schwab Corp.		16,931		515,380
Travelers Companies, Inc.		4,716		509,941
State Street Corp.		6,049		444,783
Marsh & McLennan Companies, Inc.		7,907		443,503
CME Group, Inc. — Class A		4,654		440,780
Allstate Corp.		6,111		434,920
Public Storage		2,130		419,908
Equity Residential		5,339		415,695
BB&T Corp.		10,578		412,436
Aflac, Inc.		6,441		412,288
Crown Castle International Corp.		4,899		404,363
Health Care REIT, Inc.		5,128		396,702
Aon plc		4,113		395,342
Intercontinental Exchange, Inc.		1,644		383,496
Discover Financial Services		6,563		369,825
Ventas, Inc.		4,855		354,512
Ameriprise Financial, Inc.		2,678		350,390
Chubb Corp.		3,388		342,527
AvalonBay Communities, Inc.		1,938		337,697
Prologis, Inc.		7,516		327,397
SunTrust Banks, Inc.		7,698		316,311
Boston Properties, Inc.		2,248		315,799
T. Rowe Price Group, Inc.		3,826		309,829
Franklin Resources, Inc.		5,749		295,039
HCP, Inc.		6,762		292,186
Vornado Realty Trust		2,564		287,168
General Growth Properties, Inc.		9,220		272,451
Hartford Financial Services Group, Inc.		6,178		258,364
Weyerhaeuser Co.		7,704		255,388
Invesco Ltd.		6,299		250,007
M&T Bank Corp.		1,950		247,650
Fifth Third Bancorp		11,957		225,389
Northern Trust Corp.		3,221		224,343
Host Hotels & Resorts, Inc.		11,117		224,341
Essex Property Trust, Inc.		956		219,784
Lincoln National Corp.		3,763		216,222
Progressive Corp.		7,865		213,928
Principal Financial Group, Inc.		4,014		206,199
Regions Financial Corp.		19,707		186,231
SL Green Realty Corp.		1,447		185,766
Loews Corp.		4,381		178,876
KeyCorp		12,552		177,736
Macerich Co.		2,066		174,226
Affiliated Managers Group, Inc.*		801		172,039
Kimco Realty Corp.		6,055		162,577
CBRE Group, Inc. — Class A*		4,105		158,905
XL Group plc — Class A		3,746		137,853
Huntington Bancshares, Inc.		11,887		131,351
Unum Group		3,690		124,464
E*TRADE Financial Corp.*		4,238		121,016
Navient Corp.		5,892		119,784
Comerica, Inc.		2,617		118,105
Cincinnati Financial Corp.		2,168		115,511
Plum Creek Timber Company, Inc.		2,584		112,275
Torchmark Corp.		1,865		102,426
Iron Mountain, Inc.		2,744		100,101
Apartment Investment & Management Co. — Class A		2,293		90,252
NASDAQ OMX Group, Inc.		1,734		88,330
Zions Bancorporation		2,978		80,406
Legg Mason, Inc.		1,455		80,316
Hudson City Bancorp, Inc.		7,064		74,030
People’s United Financial, Inc.		4,523		68,750
Assurant, Inc.		1,011		62,086
Genworth Financial, Inc. — Class A*		7,289		53,283
Total Financial				44,611,237
TECHNOLOGY - 11.9%
Apple, Inc.		85,480		10,636,275
Microsoft Corp.		120,394		4,894,618
Intel Corp.		69,503		2,173,358
International Business Machines Corp.		13,490		2,165,145
Oracle Corp.		47,045		2,029,992
QUALCOMM, Inc.		24,208		1,678,583
Texas Instruments, Inc.		15,367		878,762
Accenture plc — Class A		9,218		863,634
Hewlett-Packard Co.		26,673		831,131
EMC Corp.		29,176		745,738
salesforce.com, Inc.*		8,879		593,206
Cognizant Technology Solutions Corp. — Class A*		8,946		558,141
Adobe Systems, Inc.*		6,984		516,397
Avago Technologies Ltd.		3,766		478,207
Micron Technology, Inc.*		15,810		428,925
Applied Materials, Inc.		18,032		406,803
Intuit, Inc.		4,061		393,755
Broadcom Corp. — Class A		7,999		346,317
Cerner Corp.*		4,475		327,839
Western Digital Corp.		3,187		290,049
Analog Devices, Inc.		4,573		288,099
Fidelity National Information Services, Inc.		4,183		284,694

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P 500® FUND

	Shares		Value
Fiserv, Inc.*		3,503	$	278,138
Skyworks Solutions, Inc.		2,800		275,212
Electronic Arts, Inc.*		4,563		268,373
Seagate Technology plc		4,818		250,681
Paychex, Inc.		4,796		237,954
Red Hat, Inc.*		2,692		203,919
SanDisk Corp.		3,126		198,876
Xerox Corp.		15,342		197,145
Autodesk, Inc.*		3,327		195,095
Altera Corp.		4,416		189,491
Akamai Technologies, Inc.*		2,624		186,422
Linear Technology Corp.		3,510		164,268
Lam Research Corp.		2,338		164,209
Xilinx, Inc.		3,836		162,263
NetApp, Inc.		4,575		162,230
NVIDIA Corp.		7,578		158,570
CA, Inc.		4,679		152,582
Citrix Systems, Inc.*		2,346		149,839
Microchip Technology, Inc.		2,956		144,548
KLA-Tencor Corp.		2,387		139,138
Computer Sciences Corp.		2,070		135,130
Teradata Corp.*		2,130		94,018
Pitney Bowes, Inc.		2,959		69,004
Dun & Bradstreet Corp.		528		67,774
Total Technology				36,054,547
COMMUNICATIONS - 10.4%
Verizon Communications, Inc.		60,982		2,965,554
Facebook, Inc. — Class A*		30,807		2,532,797
AT&T, Inc.		76,168		2,486,884
Walt Disney Co.		22,946		2,406,805
Google, Inc. — Class A*		4,191		2,324,747
Google, Inc. — Class C*		4,199		2,301,051
Comcast Corp. — Class A		37,291		2,105,823
Amazon.com, Inc.*		5,588		2,079,295
Cisco Systems, Inc.		74,914		2,062,009
Time Warner, Inc.		12,188		1,029,155
eBay, Inc.*		16,160		932,109
Twenty-First Century Fox, Inc. — Class A		26,834		908,063
Priceline Group, Inc.*		762		887,082
DIRECTV*		7,379		627,953
Time Warner Cable, Inc.		4,122		617,805
Yahoo!, Inc.*		12,776		567,702
CBS Corp. — Class B		6,714		407,069
Netflix, Inc.*		888		370,021
Viacom, Inc. — Class B		5,359		366,020
CenturyLink, Inc.		8,313		287,214
Omnicom Group, Inc.		3,621		282,366
Alliance Data Systems Corp.*		922		273,143
Symantec Corp.		10,014		233,977
Level 3 Communications, Inc.*		4,209		226,613
Nielsen N.V.		4,631		206,404
Equinix, Inc.		829		193,033
Motorola Solutions, Inc.		2,798		186,543
Expedia, Inc.		1,451		136,583
TripAdvisor, Inc.*		1,636		136,066
Interpublic Group of Companies, Inc.		6,051		133,848
Gannett Company, Inc.		3,329		123,439
F5 Networks, Inc.*		1,059		121,721
Harris Corp.		1,528		120,345
Juniper Networks, Inc.		5,316		120,035
News Corp. — Class A*		7,328		117,321
Discovery Communications, Inc. — Class C*		3,966		116,898
Frontier Communications Corp.1		14,712		103,720
VeriSign, Inc.*		1,544		103,402
Scripps Networks Interactive, Inc. — Class A		1,430		98,041
Discovery Communications, Inc. — Class A*		2,181		67,088
Windstream Holdings, Inc.1		8,844		65,446
Cablevision Systems Corp. — Class A		3,219		58,908
Total Communications				31,490,098
CONSUMER, CYCLICAL - 9.4%
Home Depot, Inc.		19,340		2,197,218
Wal-Mart Stores, Inc.		23,178		1,906,391
CVS Health Corp.		16,513		1,704,307
McDonald’s Corp.		14,105		1,374,392
Walgreens Boots Alliance, Inc.		12,797		1,083,650
Lowe’s Companies, Inc.		14,278		1,062,140
Starbucks Corp.		11,004		1,042,079
NIKE, Inc. — Class B		10,270		1,030,389
Costco Wholesale Corp.		6,457		978,203
Ford Motor Co.		58,055		937,007
Target Corp.		9,348		767,190
General Motors Co.		19,851		744,413
TJX Companies, Inc.		10,019		701,832
American Airlines Group, Inc.		10,526		555,562
Delta Air Lines, Inc.		12,096		543,836
Yum! Brands, Inc.		6,356		500,344
Johnson Controls, Inc.		9,646		486,545
Southwest Airlines Co.		9,920		439,456
VF Corp.		5,024		378,356
L Brands, Inc.		3,608		340,198
Delphi Automotive plc		4,260		339,692
Dollar General Corp.		4,453		335,667
PACCAR, Inc.		5,203		328,517
Macy’s, Inc.		4,998		324,421
O’Reilly Automotive, Inc.*		1,492		322,630
Ross Stores, Inc.		3,038		320,084
AutoZone, Inc.*		468		319,251
Carnival Corp.		6,610		316,223
Chipotle Mexican Grill, Inc. — Class A*		455		295,996
Dollar Tree, Inc.*		3,018		244,896
Marriott International, Inc. — Class A		3,044		244,494
Kohl’s Corp.		2,965		232,011
Whirlpool Corp.		1,146		231,561
CarMax, Inc.*		3,082		212,689
Starwood Hotels & Resorts Worldwide, Inc.		2,520		210,420
Bed Bath & Beyond, Inc.*		2,724		209,135

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P 500® FUND

	Shares		Value
Genuine Parts Co.		2,241	$	208,839
WW Grainger, Inc.		881		207,748
BorgWarner, Inc.		3,323		200,975
Royal Caribbean Cruises Ltd.		2,417		197,831
Under Armour, Inc. — Class A*		2,449		197,757
Hanesbrands, Inc.		5,882		197,106
Michael Kors Holdings Ltd.*		2,946		193,700
Harley-Davidson, Inc.		3,104		188,537
Tractor Supply Co.		1,999		170,034
Mohawk Industries, Inc.*		911		169,218
The Gap, Inc.		3,892		168,640
Coach, Inc.		4,048		167,709
Nordstrom, Inc.		2,064		165,780
Fastenal Co.		3,990		165,326
Best Buy Company, Inc.		4,272		161,439
Wyndham Worldwide Corp.		1,769		160,041
Newell Rubbermaid, Inc.		3,978		155,420
Staples, Inc.		9,399		153,063
Wynn Resorts Ltd.		1,189		149,671
Tiffany & Co.		1,651		145,305
DR Horton, Inc.		4,880		138,983
Lennar Corp. — Class A		2,620		135,742
Harman International Industries, Inc.		1,007		134,565
PVH Corp.		1,210		128,938
Darden Restaurants, Inc.		1,820		126,199
Ralph Lauren Corp. — Class A		884		116,246
Mattel, Inc.		4,964		113,427
Family Dollar Stores, Inc.		1,411		111,808
PulteGroup, Inc.		4,863		108,104
Goodyear Tire & Rubber Co.		3,956		107,128
Hasbro, Inc.		1,642		103,840
Leggett & Platt, Inc.		2,030		93,563
AutoNation, Inc.*		1,100		70,763
Urban Outfitters, Inc.*		1,468		67,014
GameStop Corp. — Class A1		1,592		60,432
Fossil Group, Inc.*		651		53,675
Total Consumer, Cyclical				28,455,761
INDUSTRIAL - 9.2%
General Electric Co.		147,706		3,664,586
3M Co.		9,315		1,536,509
Boeing Co.		9,614		1,442,868
United Technologies Corp.		12,127		1,421,283
Union Pacific Corp.		12,933		1,400,773
Honeywell International, Inc.		11,486		1,198,104
United Parcel Service, Inc. — Class B		10,198		988,594
Lockheed Martin Corp.		3,937		799,054
Thermo Fisher Scientific, Inc.		5,823		782,262
Danaher Corp.		9,011		765,034
Caterpillar, Inc.		8,896		711,947
FedEx Corp.		3,867		639,795
General Dynamics Corp.		4,624		627,616
Emerson Electric Co.		10,056		569,370
Illinois Tool Works, Inc.		5,122		497,551
Raytheon Co.		4,510		492,718
CSX Corp.		14,537		481,465
Eaton Corporation plc		6,965		473,202
Northrop Grumman Corp.		2,912		468,716
Norfolk Southern Corp.		4,511		464,272
Deere & Co.		4,982		436,872
Precision Castparts Corp.		2,080		436,800
TE Connectivity Ltd.		5,961		426,927
Corning, Inc.		18,657		423,141
Cummins, Inc.		2,472		342,718
Waste Management, Inc.		6,266		339,806
Amphenol Corp. — Class A		4,552		268,249
Tyco International plc		6,164		265,422
Ingersoll-Rand plc		3,864		263,061
Roper Industries, Inc.		1,473		253,356
Parker-Hannifin Corp.		2,091		248,369
Rockwell Automation, Inc.		1,989		230,704
Stanley Black & Decker, Inc.		2,310		220,282
Agilent Technologies, Inc.		4,928		204,758
Rockwell Collins, Inc.		1,951		188,369
AMETEK, Inc.		3,538		185,887
Textron, Inc.		4,063		180,113
Stericycle, Inc.*		1,247		175,116
Pentair plc		2,677		168,357
Dover Corp.		2,393		165,404
Kansas City Southern		1,620		165,370
Vulcan Materials Co.		1,939		163,457
CH Robinson Worldwide, Inc.		2,147		157,203
Pall Corp.		1,565		157,110
L-3 Communications Holdings, Inc.		1,211		152,332
Waters Corp.*		1,218		151,422
Republic Services, Inc. — Class A		3,679		149,220
Ball Corp.		2,015		142,340
Sealed Air Corp.		3,084		140,507
Masco Corp.		5,130		136,971
Expeditors International of Washington, Inc.		2,814		135,579
Martin Marietta Materials, Inc.		907		126,799
Snap-on, Inc.		853		125,442
Fluor Corp.		2,169		123,980
MeadWestvaco Corp.		2,457		122,531
Flowserve Corp.		1,977		111,681
Xylem, Inc.		2,675		93,679
Allegion plc		1,409		86,189
Jacobs Engineering Group, Inc.*		1,883		85,036
PerkinElmer, Inc.		1,659		84,841
Garmin Ltd.		1,773		84,253
Ryder System, Inc.		778		73,824
FLIR Systems, Inc.		2,052		64,187
Owens-Illinois, Inc.*		2,410		56,201
Joy Global, Inc.		1,429		55,988
Total Industrial				27,795,572

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P 500® FUND

	Shares		Value
ENERGY - 7.1%
Exxon Mobil Corp.		61,559	$	5,232,515
Chevron Corp.		27,592		2,896,608
Schlumberger Ltd.		18,716		1,561,662
ConocoPhillips		18,072		1,125,163
Kinder Morgan, Inc.		25,007		1,051,795
Occidental Petroleum Corp.		11,308		825,484
EOG Resources, Inc.		8,049		738,013
Phillips 66		7,976		626,913
Anadarko Petroleum Corp.		7,434		615,610
Halliburton Co.		12,469		547,140
Williams Companies, Inc.		9,878		499,728
Valero Energy Corp.		7,556		480,713
Marathon Petroleum Corp.		4,007		410,277
Baker Hughes, Inc.		6,377		405,450
Pioneer Natural Resources Co.		2,186		357,433
Spectra Energy Corp.		9,848		356,202
Devon Energy Corp.		5,671		342,018
Apache Corp.		5,530		333,625
National Oilwell Varco, Inc.		6,016		300,740
Noble Energy, Inc.		5,676		277,556
Marathon Oil Corp.		9,905		258,620
Hess Corp.		3,566		242,024
Equities Corp.		2,229		184,717
Cabot Oil & Gas Corp. — Class A		6,063		179,040
Tesoro Corp.		1,833		167,335
Cimarex Energy Co.		1,285		147,891
ONEOK, Inc.		3,058		147,518
Southwestern Energy Co.*		5,642		130,838
Cameron International Corp.*		2,843		128,276
Range Resources Corp.		2,434		126,665
FMC Technologies, Inc.*		3,397		125,723
Murphy Oil Corp.		2,449		114,123
Helmerich & Payne, Inc.		1,580		107,550
Chesapeake Energy Corp.1		7,593		107,517
CONSOL Energy, Inc.		3,379		94,240
Newfield Exploration Co.*		2,360		82,812
Transocean Ltd.1		4,998		73,321
Ensco plc — Class A		3,439		72,460
First Solar, Inc.*		1,104		66,008
Noble Corporation plc		3,551		50,708
QEP Resources, Inc.		2,370		49,415
Diamond Offshore Drilling, Inc.		986		26,415
Total Energy				21,667,861
UTILITIES - 2.7%
Duke Energy Corp.		10,384		797,285
NextEra Energy, Inc.		6,507		677,053
Dominion Resources, Inc.		8,631		611,680
Southern Co.		13,353		591,271
Exelon Corp.		12,618		424,091
American Electric Power Company, Inc.		7,185		404,156
PG&E Corp.		6,991		371,012
Sempra Energy		3,398		370,450
PPL Corp.		9,788		329,464
Public Service Enterprise Group, Inc.		7,428		311,382
Edison International		4,781		298,669
Consolidated Edison, Inc.		4,298		262,178
Xcel Energy, Inc.		7,425		258,464
Eversource Energy		4,649		234,867
FirstEnergy Corp.		6,181		216,706
DTE Energy Co.		2,601		209,875
Entergy Corp.		2,649		205,271
NiSource, Inc.		4,641		204,947
Wisconsin Energy Corp.		3,309		163,796
Ameren Corp.		3,561		150,274
CMS Energy Corp.		4,042		141,106
CenterPoint Energy, Inc.		6,308		128,746
NRG Energy, Inc.		4,956		124,842
AES Corp.		9,486		121,895
SCANA Corp.		2,097		115,314
Pinnacle West Capital Corp.		1,623		103,466
Pepco Holdings, Inc.		3,710		99,539
AGL Resources, Inc.		1,756		87,185
Integrys Energy Group, Inc.		1,167		84,047
TECO Energy, Inc.		3,456		67,046
Total Utilities				8,166,077
BASIC MATERIALS - 2.5%
EI du Pont de Nemours & Co.		13,287		949,622
Monsanto Co.		7,092		798,134
Dow Chemical Co.		15,970		766,241
Praxair, Inc.		4,238		511,697
LyondellBasell Industries N.V. — Class A		5,812		510,294
Ecolab, Inc.		3,952		452,030
PPG Industries, Inc.		1,997		450,403
Air Products & Chemicals, Inc.		2,830		428,122
International Paper Co.		6,205		344,315
Sherwin-Williams Co.		1,184		336,848
Freeport-McMoRan, Inc.		15,260		289,177
Sigma-Aldrich Corp.		1,753		242,352
Alcoa, Inc.		17,937		231,746
Nucor Corp.		4,682		222,535
Mosaic Co.		4,564		210,218
CF Industries Holdings, Inc.		702		199,143
Newmont Mining Corp.		7,321		158,939
Eastman Chemical Co.		2,181		151,056
International Flavors & Fragrances, Inc.		1,185		139,119
FMC Corp.		1,956		111,981
Airgas, Inc.		992		105,261
Allegheny Technologies, Inc.		1,594		47,836
Total Basic Materials				7,657,069

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P 500® FUND

	Shares		Value
DIVERSIFIED - 0.0%
Leucadia National Corp.		4,627	$	103,136
Total Common Stocks
(Cost $170,328,869)				268,606,807
	Face Amount
REPURCHASE AGREEMENTS††,2 - 8.7%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	20,742,090		20,742,090
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		3,169,831		3,169,831
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		2,544,311		2,544,311
Total Repurchase Agreements
(Cost $26,456,232)				26,456,232
SECURITIES LENDING COLLATERAL††,3 - 0.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		198,293		198,293
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		68,213		68,213
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		35,209		35,209
Total Securities Lending Collateral
(Cost $301,715)				301,715
Total Investments - 97.3%
(Cost $197,086,816)			$	295,364,754
Other Assets & Liabilities, net - 2.7%				8,244,756
Total Net Assets - 100.0%			$	303,609,510

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $20,800,950)		202	$	41,574
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International April 2015 S&P 500 Index Swap, Terminating 04/28/154 (Notional Value $1,173,849)		568	$	7,629
Credit Suisse Capital, LLC April 2015 S&P 500 Index Swap, Terminating 04/28/154 (Notional Value $10,722,847)		5,185		(9,046	)
Barclays Bank plc April 2015 S&P 500 Index Swap, Terminating 04/30/154 (Notional Value $3,224,558)		1,559		(13,083	)
(Total Notional Value $15,121,254)			$	(14,500	)

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $296,079 of securities loaned (cost $170,328,869)	$	268,606,807
Repurchase agreements, at value (cost $26,757,947)		26,757,947
Total investments (cost $197,086,816)		295,364,754
Segregated cash with broker		1,621,135
Unrealized appreciation on swap agreements		7,629
Cash		5,012
Receivables:
Fund shares sold		10,550,973
Dividends		369,214
Swap settlement		21,921
Securities lending income		684
Interest		24
Total assets		307,941,346
Liabilities:
Unrealized depreciation on swap agreements		22,129
Payable for:
Securities purchased		1,989,356
Fund shares redeemed		1,160,210
Return of securities loaned		306,125
Management fees		213,922
Variation margin		122,283
Distribution and service fees		84,750
Transfer agent and administrative fees		71,307
Portfolio accounting fees		42,785
Miscellaneous		318,969
Total liabilities		4,331,836
Commitments and contingent liabilities (Note 15)		—
Net assets	$	303,609,510
Net assets consist of:
Paid in capital	$	231,385,116
Undistributed net investment income		84,598
Accumulated net realized loss on investments		(26,165,216	)
Net unrealized appreciation on investments		98,305,012
Net assets	$	303,609,510
A-Class:
Net assets	$	28,022,281
Capital shares outstanding		676,947
Net asset value per share	$	41.40
Maximum offering price per share (Net asset value divided by 95.25%)	$	43.46
C-Class:
Net assets	$	20,977,179
Capital shares outstanding		543,753
Net asset value per share	$	38.58
H-Class:
Net assets	$	254,610,050
Capital shares outstanding		6,150,310
Net asset value per share	$	41.40

STATEMENT OF OPERATIONS

Year Ended March 31, 2015
Investment Income:
Dividends (net of foreign withholding tax of $1,144 )	$	5,560,542
Interest		11,111
Income from securities lending, net		4,089
Total investment income		5,575,742
Expenses:
Management fees		2,452,479
Transfer agent and administrative fees		817,494
Distribution and service fees:
A-Class		70,488
C-Class		190,400
H-Class		699,409
Portfolio accounting fees		490,500
Custodian fees		38,082
Trustees’ fees*		22,708
Line of credit fees		634
Tax expense		18
Miscellaneous		532,237
Total expenses		5,314,449
Net investment income		261,293
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,664,161
Swap agreements		3,929,346
Futures contracts		1,578,529
Net realized gain		7,172,036
Net change in unrealized appreciation (depreciation) on:
Investments		20,228,311
Swap agreements		(624,866	)
Futures contracts		(433,297	)
Net change in unrealized appreciation (depreciation)		19,170,148
Net realized and unrealized gain		26,342,184
Net increase in net assets resulting from operations	$	26,603,477

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

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

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	261,293		$	386,849
Net realized gain on investments		7,172,036			26,564,556
Net change in unrealized appreciation (depreciation) on investments		19,170,148			13,292,846
Net increase in net assets resulting from operations		26,603,477			40,244,251
Distributions to shareholders from:
Net investment income
A-Class		(17,679	)		(27,498	)
C-Class		(8,817	)		(17,900	)
H-Class		(133,918	)		(356,867	)
Net realized gains
A-Class		(487,372	)		—
C-Class		(243,055	)		—
H-Class		(3,691,790	)		—
Total distributions to shareholders		(4,582,631	)		(402,265	)
Capital share transactions:
Proceeds from sale of shares
A-Class		119,690,602			67,031,023
C-Class		50,549,094			69,955,990
H-Class		1,614,367,735			1,826,152,142
Distributions reinvested
A-Class		468,300			20,158
C-Class		244,609			17,263
H-Class		3,424,733			258,190
Cost of shares redeemed
A-Class		(121,906,600	)		(54,708,718	)
C-Class		(47,582,225	)		(66,380,612	)
H-Class		(1,637,788,549	)		(1,869,669,239	)
Net decrease from capital share transactions		(18,532,301	)		(27,323,803	)
Net increase in net assets		3,488,545			12,518,183
Net assets:
Beginning of year		300,120,965			287,602,782
End of year	$	303,609,510		$	300,120,965
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	84,598		$	(16,281	)
Capital share activity:
Shares sold
A-Class		2,973,303			1,949,686
C-Class		1,356,402			2,155,638
H-Class		40,239,115			52,445,747
Shares issued from reinvestment of distributions
A-Class		11,383			563
C-Class		6,365			512
H-Class		83,226			7,212
Shares redeemed
A-Class		(3,049,603	)		(1,589,203	)
C-Class		(1,274,767	)		(2,042,904	)
H-Class		(40,944,917	)		(54,091,461	)
Net decrease in shares		(599,493	)		(1,164,210	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	37.78		$	31.55		$	28.20		$	26.41		$	23.18
Income (loss) from investment operations:
Net investment income (loss)a		.04			.07			.06			.01			(.06	)
Net gain (loss) on investments (realized and unrealized)		4.08			6.20			3.36			1.78			3.29
Total from investment operations		4.12			6.27			3.42			1.79			3.23
Less distributions from:
Net investment income		(.02	)		(.04	)		(.07	)		—			(—	)c
Net realized gains		(.48	)		—			—			—			—
Total distributions		(.50	)		(.04	)		(.07	)		—			(—	)c
Net asset value, end of period	$	41.40		$	37.78		$	31.55		$	28.20		$	26.41
Total Returnb		10.90	%		19.87	%		12.16	%		6.78	%		13.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,022		$	28,028		$	12,014		$	13,413		$	10,288
Ratios to average net assets:
Net investment income (loss)		0.11	%		0.19	%		0.22	%		0.05	%		(0.25	%)
Total expenses		1.59	%		1.57	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		256	%		157	%		76	%		196	%		202	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	35.51		$	29.87		$	26.91		$	25.41		$	22.50
Income (loss) from investment operations:
Net investment income (loss)a		(.23	)		(.19	)		(.14	)		(.20	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		3.80			5.87			3.17			1.70			3.18
Total from investment operations		3.57			5.68			3.03			1.50			2.91
Less distributions from:
Net investment income		(.02	)		(.04	)		(.07	)		—			(—	)c
Net realized gains		(.48	)		—			—			—			—
Total distributions		(.50	)		(.04	)		(.07	)		—			(—	)c
Net asset value, end of period	$	38.58		$	35.51		$	29.87		$	26.91		$	25.41
Total Returnb		10.04	%		19.01	%		11.29	%		5.90	%		12.93	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,977		$	16,182		$	10,231		$	10,110		$	10,032
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.59	%)		(0.52	%)		(0.80	%)		(1.11	%)
Total expenses		2.34	%		2.32	%		2.28	%		2.26	%		2.29	%
Portfolio turnover rate		256	%		157	%		76	%		196	%		202	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	37.78		$	31.55		$	28.20		$	26.39		$	23.17
Income (loss) from investment operations:
Net investment income (loss)a		.05			.05			.07			(.02	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		4.07			6.22			3.35			1.83			3.31
Total from investment operations		4.12			6.27			3.42			1.81			3.22
Less distributions from:
Net investment income		(.02	)		(.04	)		(.07	)		—			(—	)c
Net realized gains		(.48	)		—			—			—			—
Total distributions		(.50	)		(.04	)		(.07	)		—			(—	)c
Net asset value, end of period	$	41.40		$	37.78		$	31.55		$	28.20		$	26.39
Total Returnb		10.90	%		19.87	%		12.16	%		6.86	%		13.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	254,610		$	255,912		$	265,358		$	240,847		$	249,090
Ratios to average net assets:
Net investment income (loss)		0.12	%		0.15	%		0.24	%		(0.07	%)		(0.37	%)
Total expenses		1.58	%		1.56	%		1.50	%		1.50	%		1.54	%
Portfolio turnover rate		256	%		157	%		76	%		196	%		202	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Less than $0.01 per share.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE S&P 500^® STRATEGY FUND

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

For the one-year period ended March 31, 2015, Inverse S&P 500^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index. Inverse S&P 500^® Strategy Fund Investor Class returned -13.26%, while the S&P 500 Index returned 12.73% over the same period.

Sectors that contributed most to performance of the underlying index were Health Care and Information Technology. The sector that contributed least was Telecommunication Services, followed by Materials. Energy was the only sector that detracted from return.

Apple, Inc., Home Depot, Inc., and Gilead Sciences, Inc., were the holdings that contributed most to performance of the underlying index for the period. Bank of America Corp., International Business Machines Corp., and Exxon Mobil Corp. detracted the most from performance of the underlying index for the period.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 39

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	25.1%
Total	25.1%
“Largest Holding” excludes any temporary cash or derivative instruments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-13.26%	-15.75%	-9.40%
Advisor Class Shares	-13.54%	-16.16%	-9.85%
A-Class Shares	-13.49%	-15.97%	-9.66%
A-Class Shares with sales charge†	-17.59%	-16.78%	-10.10%
C-Class Shares	-14.09%	-16.60%	-10.31%
C-Class Shares with CDSC‡	-14.95%	-16.60%	-10.31%
S&P 500 Index	12.73%	14.47%	8.01%
			Since Inception (09/18/14)
H-Class Shares			-5.30%
S&P 500 Index			3.92%

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

40 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 25.1%
Guggenheim Strategy Fund I1		864,990	$	21,538,257
Total Mutual Funds
(Cost $21,531,129)				21,538,257
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 40.8%
Farmer Mac2
0.08% due 04/01/15	$	15,000,000		15,000,000
0.11% due 04/02/15		10,000,000		9,999,969
Total Farmer Mac				24,999,969
Federal Farm Credit2
0.20% due 11/20/15		10,000,000		9,988,671
Total Federal Agency Discount Notes
(Cost $34,987,025)				34,988,640
REPURCHASE AGREEMENTS††,3 - 20.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15		13,775,659		13,775,659
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		2,105,213		2,105,213
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		1,689,780		1,689,780
Total Repurchase Agreements
(Cost $17,570,652)				17,570,652
Total Investments - 86.4%
(Cost $74,088,806)			$	74,097,549
Other Assets & Liabilities, net - 13.6%				11,681,257
Total Net Assets - 100.0%			$	85,778,806

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
June 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $6,281,475)		61	$	123,544
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc April 2015 S&P 500 Index Swap, Terminating 04/30/154 (Notional Value $1,110,217)		537	$	(246	)
Goldman Sachs International April 2015 S&P 500 Index Swap, Terminating 04/28/154 (Notional Value $11,870,656)		5,741		(71,197	)
Credit Suisse Capital, LLC April 2015 S&P 500 Index Swap, Terminating 04/28/154 (Notional Value $66,290,216)		32,057		(369,106	)
(Total Notional Value $79,271,089)			$	(440,549	)

†	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	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Repurchase Agreements — See Note 5.
4	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 ANNUAL REPORT | 41

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $56,518,154)	$	56,526,897
Repurchase agreements, at value (cost $17,570,652)		17,570,652
Total investments (cost $74,088,806)		74,097,549
Segregated cash with broker		12,427,984
Receivables:
Fund shares sold		250,260
Variation margin		81,366
Dividends		21,555
Interest		16
Total assets		86,878,730
Liabilities:
Unrealized depreciation on swap agreements		440,549
Payable for:
Fund shares redeemed		460,559
Management fees		60,012
Swap settlement		31,243
Securities purchased		21,555
Transfer agent and administrative fees		16,670
Distribution and service fees		8,390
Portfolio accounting fees		6,668
Miscellaneous		54,278
Total liabilities		1,099,924
Commitments and contingent liabilities (Note 15)		—
Net assets	$	85,778,806
Net assets consist of:
Paid in capital	$	406,605,606
Undistributed net investment income		—
Accumulated net realized loss on investments		(320,518,538	)
Net unrealized depreciation on investments		(308,262	)
Net assets	$	85,778,806
Investor Class:
Net assets	$	60,744,833
Capital shares outstanding		4,163,556
Net asset value per share	$	14.59
Advisor Class:
Net assets	$	2,069,174
Capital shares outstanding		155,814
Net asset value per share	$	13.28
A-Class:
Net assets	$	4,758,320
Capital shares outstanding		350,145
Net asset value per share	$	13.59
Maximum offering price per share (Net asset value divided by 95.25%)	$	14.27
C-Class:
Net assets	$	5,121,278
Capital shares outstanding		407,880
Net asset value per share	$	12.56
H-Class:
Net assets	$	13,085,201
Capital shares outstanding		962,821
Net asset value per share	$	13.59

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	258,685
Interest		35,611
Total investment income		294,296
Expenses:
Management fees		789,769
Transfer agent and administrative fees		219,380
Distribution and service fees:
Advisor Class		24,264
A-Class		13,557
C-Class		57,065
H-Class**		1,084
Portfolio accounting fees		87,752
Registration fees		76,280
Custodian fees		10,243
Trustees’ fees*		7,474
Line of credit fees		1,065
Miscellaneous		42,283
Total expenses		1,330,216
Net investment loss		(1,035,920	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(90,926	)
Swap agreements		(15,580,972	)
Futures contracts		(797,822	)
Net realized loss		(16,469,720	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		1,680
Investments in affiliated issuers		9,200
Swap agreements		148,570
Futures contracts		186,535
Net change in unrealized appreciation (depreciation)		345,985
Net realized and unrealized loss		(16,123,735	)
Net decrease in net assets resulting from operations	$	(17,159,655	)

*	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.

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,035,920	)	$	(2,280,355	)
Net realized loss on investments		(16,469,720	)		(37,250,140	)
Net change in unrealized appreciation (depreciation) on investments		345,985			(23,921	)
Net decrease in net assets resulting from operations		(17,159,655	)		(39,554,416	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		189,117,714			396,150,082
Advisor Class		77,331,876			43,312,714
A-Class		20,249,187			24,186,917
C-Class		8,073,633			13,040,917
H-Class*		17,542,838			—
Cost of shares redeemed
Investor Class		(194,157,539	)		(388,967,563	)
Advisor Class		(76,596,721	)		(47,807,585	)
A-Class		(19,772,383	)		(23,182,304	)
C-Class		(8,221,994	)		(12,185,135	)
H-Class*		(4,506,875	)		—
Net increase from capital share transactions		9,059,736			4,548,043
Net decrease in net assets		(8,099,919	)		(35,006,373	)
Net assets:
Beginning of year		93,878,725			128,885,098
End of year	$	85,778,806		$	93,878,725
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	—		$	(382,578	)
Capital share activity:
Shares sold
Investor Class		12,003,414			20,629,628
Advisor Class		5,473,674			2,483,798
A-Class		1,363,582			1,354,080
C-Class		595,844			790,782
H-Class*		1,281,317			—
Shares redeemed
Investor Class		(12,547,719	)		(20,970,317	)
Advisor Class		(5,517,118	)		(2,790,831	)
A-Class		(1,361,454	)		(1,306,326	)
C-Class		(610,462	)		(749,635	)
H-Class*		(318,496	)		—
Net increase (decrease) in shares		362,582			(558,821	)

* Since commencement of operations: September 18, 2014.

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	16.82		$	21.03		$	24.61		$	28.50		$	34.38
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.25	)		(.30	)		(.38	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		(2.06	)		(3.96	)		(3.28	)		(3.51	)		(5.47	)
Total from investment operations		(2.23	)		(4.21	)		(3.58	)		(3.89	)		(5.88	)
Net asset value, end of period	$	14.59		$	16.82		$	21.03		$	24.61		$	28.50
Total Returnb		(13.26	%)		(20.02	%)		(14.55	%)		(13.65	%)		(17.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	60,745		$	79,172		$	106,158		$	112,334		$	118,410
Ratios to average net assets:
Net investment income (loss)		(1.07	%)		(1.35	%)		(1.27	%)		(1.31	%)		(1.22	%)
Total expensesc		1.41	%		1.42	%		1.41	%		1.41	%		1.44	%
Portfolio turnover rate		103	%		—			—			—			—

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	15.36		$	19.31		$	22.71		$	26.44		$	32.06
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.32	)		(.39	)		(.48	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(1.86	)		(3.63	)		(3.01	)		(3.25	)		(5.08	)
Total from investment operations		(2.08	)		(3.95	)		(3.40	)		(3.73	)		(5.62	)
Net asset value, end of period	$	13.28		$	15.36		$	19.31		$	22.71		$	26.44
Total Returnb		(13.54	%)		(20.46	%)		(14.97	%)		(14.11	%)		(17.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,069		$	3,061		$	9,775		$	5,978		$	6,434
Ratios to average net assets:
Net investment income (loss)		(1.58	%)		(1.85	%)		(1.77	%)		(1.81	%)		(1.72	%)
Total expensesc		1.91	%		1.93	%		1.90	%		1.91	%		1.93	%
Portfolio turnover rate		103	%		—			—			—			—

44 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	15.71		$	19.69		$	23.10		$	26.82		$	32.43
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.28	)		(.34	)		(.42	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		(1.93	)		(3.70	)		(3.07	)		(3.30	)		(5.13	)
Total from investment operations		(2.12	)		(3.98	)		(3.41	)		(3.72	)		(5.61	)
Net asset value, end of period	$	13.59		$	15.71		$	19.69		$	23.10		$	26.82
Total Returnb		(13.49	%)		(20.21	%)		(14.76	%)		(13.87	%)		(17.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,758		$	5,468		$	5,912		$	7,915		$	5,029
Ratios to average net assets:
Net investment income (loss)		(1.32	%)		(1.58	%)		(1.52	%)		(1.56	%)		(1.47	%)
Total expensesc		1.66	%		1.68	%		1.65	%		1.66	%		1.68	%
Portfolio turnover rate		103	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	14.62		$	18.46		$	21.83		$	25.53		$	31.12
Income (loss) from investment operations:
Net investment income (loss)a		(.28	)		(.38	)		(.48	)		(.59	)		(.67	)
Net gain (loss) on investments (realized and unrealized)		(1.78	)		(3.46	)		(2.89	)		(3.11	)		(4.92	)
Total from investment operations		(2.06	)		(3.84	)		(3.37	)		(3.70	)		(5.59	)
Net asset value, end of period	$	12.56		$	14.62		$	18.46		$	21.83		$	25.53
Total Returnb		(14.09	%)		(20.80	%)		(15.44	%)		(14.49	%)		(17.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,121		$	6,177		$	7,041		$	7,870		$	11,817
Ratios to average net assets:
Net investment income (loss)		(2.07	%)		(2.34	%)		(2.27	%)		(2.31	%)		(2.23	%)
Total expensesc		2.41	%		2.42	%		2.40	%		2.42	%		2.44	%
Portfolio turnover rate		103	%		—			—			—			—

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

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 Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	14.35
Income (loss) from investment operations:
Net investment income (loss)a		(.09	)
Net gain (loss) on investments (realized and unrealized)		(.67	)
Total from investment operations		(.76	)
Net asset value, end of period	$	13.59
Total Returnb		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,085
Ratios to average net assets:
Net investment income (loss)		(1.27	%)
Total expensesc		1.60	%
Portfolio turnover rate		103	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a calendar month basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time different than a full calendar month.

The inception date for the Fund was November 28, 2014. For the abbreviated annual period ended March 31, 2015, the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund H-Class returned 3.14%, while the NASDAQ-100 Index returned 0.26% over the same period.

The Health Care sector contributed most to performance of the underlying index, followed by the Consumer Discretionary and Consumer Staples sectors. Information Technology detracted from performance. No other sectors contributed meaningfully to performance.

Apple Inc., Biogen Inc., and Kraft Foods Group Inc. were the holdings contributing most to performance of the underlying index for the period. Microsoft Corp., Intel Corp., and Baidu Inc. detracted most from performance of the underlying index for the period.

The Fund employs a strategy that seeks to magnify the index’s exposure 200% on a monthly basis, providing enhanced exposure to an underlying benchmark per dollar invested. It is intended for investors who expect the NASDAQ-100^® Index to go up and want accelerated investment gains when it does so. However, there is an increased risk of accelerated losses if the market declines.

The Fund is rebalanced on a monthly basis to maintain its 200% exposure to the NASDAQ-100 Index. Because the Fund is rebalanced on a monthly basis, the beta “floats” or will deviate on a daily basis from a 2x exposure. If the index moves in a positive direction, the Fund’s exposure level—and risk—will be lower than 200%. Conversely, if the index moves in a negative direction, the Fund’s exposure level—and risk—will be higher than 200%. An investor who purchases the Fund on a day other than the rebalance day will have a beta exposure that differs from the 2x exposure. An investment purchased on a day other than the rebalance day will maintain its exposure level until the next Fund rebalance, which takes place on the last trading day of the month.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

THE RYDEX FUNDS ANNUAL REPORT | 47

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2015

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
A-Class	November 28, 2014
C-Class	November 28, 2014
H-Class	November 28, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	10.7%
Guggenheim Strategy Fund I	10.5%
Microsoft Corp.	4.9%
Google, Inc. — Class C	2.8%
Facebook, Inc. — Class A	2.7%
Amazon.com, Inc.	2.6%
Google, Inc. — Class A	2.4%
Intel Corp.	2.2%
Gilead Sciences, Inc.	2.2%
Cisco Systems, Inc.	2.1%
Top Ten Total	43.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

48 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Cumulative Annual Returns*

Periods Ended March 31, 2015

	Since Inception (11/28/14)
C-Class Shares	3.10%
C-Class Shares with CDSC†	2.10%
A-Class Shares	3.36%
A-Class Shares with sales charge‡	-1.54%
H-Class Shares	3.14%
NASDAQ-100 Index	0.26%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.

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

SCHEDULE OF INVESTMENTS	March 31, 2015
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 74.0%
TECHNOLOGY - 28.7%
Apple, Inc.		296,330	$	36,872,342
Microsoft Corp.		417,039		16,954,720
Intel Corp.		240,754		7,528,378
QUALCOMM, Inc.		83,855		5,814,506
Texas Instruments, Inc.		53,231		3,044,015
Cognizant Technology Solutions Corp. — Class A*		30,990		1,933,466
Adobe Systems, Inc.*		25,464		1,882,808
Avago Technologies Ltd.		13,032		1,654,803
Micron Technology, Inc.*		54,765		1,485,774
Applied Materials, Inc.		62,461		1,409,120
Intuit, Inc.		14,067		1,363,936
Cerner Corp.*		17,415		1,275,823
Broadcom Corp. — Class A		27,959		1,210,485
NXP Semiconductor N.V.*		11,730		1,177,223
Western Digital Corp.		11,744		1,068,822
Analog Devices, Inc.		15,842		998,046
Fiserv, Inc.*		12,134		963,439
Electronic Arts, Inc.*		15,761		926,983
Paychex, Inc.		18,461		915,943
Seagate Technology plc		16,691		868,433
Activision Blizzard, Inc.		36,749		835,121
Check Point Software Technologies Ltd.*		9,343		765,846
CA, Inc.		22,510		734,051
SanDisk Corp.		10,828		688,877
Autodesk, Inc.*		11,566		678,230
Altera Corp.		15,296		656,351
Akamai Technologies, Inc.*		9,049		642,886
NVIDIA Corp.		27,631		578,179
Linear Technology Corp.		12,159		569,041
Lam Research Corp.		8,099		568,833
Xilinx, Inc.		13,290		562,167
NetApp, Inc.		15,848		561,970
Citrix Systems, Inc.*		8,125		518,944
KLA-Tencor Corp.		8,269		482,000
Total Technology				98,191,561
COMMUNICATIONS - 23.4%
Google, Inc. — Class C*		17,318		9,490,264
Facebook, Inc. — Class A*		113,684		9,346,530
Amazon.com, Inc.*		23,607		8,784,165
Google, Inc. — Class A*		14,586		8,090,854
Cisco Systems, Inc.		259,499		7,142,710
Comcast Corp. — Class A		108,336		6,117,735
eBay, Inc.*		61,512		3,548,012
Priceline Group, Inc.*		2,640		3,073,356
Baidu, Inc. ADR*		14,084		2,935,106
Twenty-First Century Fox, Inc. — Class A		67,489		2,283,828
DIRECTV*		25,560		2,175,156
Yahoo!, Inc.*		47,587		2,114,528
Liberty Global plc*		31,809		1,584,406
Twenty-First Century Fox, Inc. — Class B		40,593		1,334,698
Netflix, Inc.*		3,075		1,281,322
Viacom, Inc. — Class B		18,054		1,233,088
Comcast Corp. — Class A		20,359		1,141,427
Charter Communications, Inc. — Class A*		5,693		1,099,375
Sirius XM Holdings, Inc.*		283,732		1,083,856
Symantec Corp.		34,689		810,508
DISH Network Corp. — Class A*		11,356		795,601
Vodafone Group plc ADR		21,914		716,150
Liberty Interactive Corp. — Class A*		22,648		661,095
Liberty Global plc — Class A*		12,774		657,478
TripAdvisor, Inc.*		6,615		550,170
VimpelCom Ltd. ADR		89,303		467,948
Liberty Media Corp. — Class C*		11,605		443,311
Discovery Communications, Inc. — Class C*		14,441		425,648
Liberty Ventures*		6,839		287,306
Discovery Communications, Inc. — Class A*		7,556		232,423
Liberty Media Corp. — Class A*		5,313		204,816
Total Communications				80,112,870
CONSUMER, NON-CYCLICAL - 14.0%
Gilead Sciences, Inc.*		75,713		7,429,717
Amgen, Inc.		38,577		6,166,533
Biogen, Inc.*		11,927		5,036,056
Celgene Corp.*		40,698		4,691,665
Express Scripts Holding Co.*		36,952		3,206,325
Mondelez International, Inc. — Class A		83,851		3,026,183
Kraft Foods Group, Inc.		29,890		2,603,867
Regeneron Pharmaceuticals, Inc.*		5,116		2,309,772
Automatic Data Processing, Inc.		24,154		2,068,549
Alexion Pharmaceuticals, Inc.*		10,276		1,780,831
Vertex Pharmaceuticals, Inc.*		12,307		1,451,857
Illumina, Inc.*		7,310		1,357,028
Monster Beverage Corp.*		8,526		1,179,956
Mylan N.V.*		19,065		1,131,508
Whole Foods Market, Inc.		18,339		955,095
Intuitive Surgical, Inc.*		1,861		939,861
Keurig Green Mountain, Inc.		8,219		918,309
Catamaran Corp.*		10,548		628,028
Henry Schein, Inc.*		4,260		594,781
Verisk Analytics, Inc. — Class A*		8,037		573,842
Total Consumer, Non-cyclical				48,049,763
CONSUMER, CYCLICAL - 6.9%
Walgreens Boots Alliance, Inc.		55,409		4,692,034
Starbucks Corp.		38,116		3,609,585
Costco Wholesale Corp.		22,393		3,392,427
American Airlines Group, Inc.		35,414		1,869,151
Tesla Motors, Inc.*		6,393		1,206,807
PACCAR, Inc.		18,022		1,137,909
Marriott International, Inc. — Class A		14,058		1,129,139
O’Reilly Automotive, Inc.*		5,167		1,117,312
Ross Stores, Inc.		10,598		1,116,605
Dollar Tree, Inc.*		10,454		848,290

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Bed Bath & Beyond, Inc.*		9,435	$	724,372
Wynn Resorts Ltd.		5,161		649,667
Fastenal Co.		15,021		622,395
Tractor Supply Co.		6,923		588,870
Staples, Inc.		32,551		530,093
Mattel, Inc.		17,195		392,906
Total Consumer, Cyclical				23,627,562
INDUSTRIAL - 0.8%
SBA Communications Corp. — Class A*		6,565		768,762
Stericycle, Inc.*		4,317		606,236
CH Robinson Worldwide, Inc.		7,445		545,122
Expeditors International of Washington, Inc.		9,748		469,659
Garmin Ltd.		9,751		463,368
Total Industrial				2,853,147
BASIC MATERIALS - 0.2%
Sigma-Aldrich Corp.		6,071		839,316
Total Common Stocks
(Cost $256,565,847)				253,674,219
MUTUAL FUNDS† - 10.5%
Guggenheim Strategy Fund I1		1,452,643		36,170,811
Total Mutual Funds
(Cost $36,098,257)				36,170,811

	Face Amount
REPURCHASE AGREEMENTS††,2 - 3.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	9,417,866		9,417,866
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		1,439,249		1,439,249
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		1,155,235		1,155,235
Total Repurchase Agreements
(Cost $12,012,350)				12,012,350
Total Investments - 88.0%
(Cost $304,676,454)			$	301,857,380
Other Assets & Liabilities, net - 12.0%				41,279,784
Total Net Assets - 100.0%			$	343,137,164
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $63,625,275)		735	$	392,662
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc April 2015 NASDAQ-100 Index Swap, Terminating 04/30/153 (Notional Value $365,813,020)		84,411	$	136,982
Goldman Sachs International April 2015 NASDAQ-100 Index Swap, Terminating 04/28/153 (Notional Value $2,964,995)		684		16,821
(Total Notional Value $368,778,015)			$	153,803

*	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	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	Total Return based on NASDAQ-100 index +/- financing at a variable rate.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $292,664,104)	$	289,845,030
Repurchase agreements, at value (cost $12,012,350)		12,012,350
Total investments (cost $304,676,454)		301,857,380
Segregated cash with broker		38,329,020
Unrealized appreciation on swap agreements		153,803
Cash		8,590
Receivables:
Securities sold		3,947,071
Dividends		203,861
Investment adviser		77,140
Swap settlement		44,046
Fund shares sold		11,000
Interest		11
Total assets		344,631,922
Liabilities:
Payable for:
Variation margin		650,475
Fund shares redeemed		301,460
Management fees		256,886
Distribution and service fees		71,366
Transfer agent and administrative fees		71,357
Securities purchased		45,641
Portfolio accounting fees		26,544
Miscellaneous		71,029
Total liabilities		1,494,758
Commitments and contingent liabilities (Note 15)		—
Net assets	$	343,137,164
Net assets consist of:
Paid in capital	$	362,651,524
Undistributed net investment income		—
Accumulated net realized loss on investments		(17,241,751	)
Net unrealized depreciation on investments		(2,272,609	)
Net assets	$	343,137,164
A-Class:
Net assets	$	465,052
Capital shares outstanding		8,998
Net asset value per share	$	51.68
Maximum offering price per share (Net asset value divided by 95.25%)	$	54.26
C-Class:
Net assets	$	14,073
Capital shares outstanding		273
Net asset value per share	$	51.55
H-Class:
Net assets	$	342,658,039
Capital shares outstanding		6,644,014
Net asset value per share	$	51.57

STATEMENT OF OPERATIONS

Period Ended March 31, 2015**

Investment Income:
Dividends (net foreign withholding tax of $1,952)	$	423,648
Interest		582
Total investment income		424,230
Expenses:
Management fees		509,467
Transfer agent and administrative fees		141,519
Distribution and service fees:
A-Class		64
C-Class		36
H-Class		141,446
Portfolio accounting fees		53,834
Custodian fees		7,214
Trustees’ fees*		517
Miscellaneous		75,746
Total expenses		929,843
Less:
Expenses waived by Adviser		(165,270	)
Net expenses		764,573
Net investment loss		(340,343	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,911,794	)
Swap agreements		(11,312,459	)
Futures contracts		(2,017,498	)
Net realized loss		(17,241,751	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,819,074	)
Swap agreements		153,803
Futures contracts		392,662
Net change in unrealized appreciation (depreciation)		(2,272,609	)
Net realized and unrealized loss		(19,514,360	)
Net decrease in net assets resulting from operations	$	(19,854,703	)

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: November 28, 2014.

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF CHANGES IN NET ASSETS

	Period Ended March 31, 2015a
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(340,343	)
Net realized loss on investments		(17,241,751	)
Net change in unrealized appreciation (depreciation) on investments		(2,272,609	)
Net decrease in net assets resulting from operations		(19,854,703	)
Capital share transactions:
Proceeds from sale of shares
A-Class		485,374
C-Class		14,050
H-Class		541,099,792
Cost of shares redeemed
A-Class		(11,481	)
C-Class		(50	)
H-Class		(178,595,818	)
Net increase from capital share transactions		362,991,867
Net increase in net assets		343,137,164
Net assets:
Beginning of period		—
End of period	$	343,137,164
Undistributed net investment income at end of period	$	—
Capital share activity:
Shares sold
A-Class		9,226
C-Class		274
H-Class		10,481,242
Shares redeemed
A-Class		(228	)
C-Class		(1	)
H-Class		(3,837,228	)
Net increase in shares		6,653,285

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

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended March 31, 2015a
Per Share Data
Net asset value, beginning of period	$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)
Net gain (loss) on investments (realized and unrealized)		1.75
Total from investment operations		1.68
Net asset value, end of period	$	51.68
Total Returnc		3.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	465
Ratios to average net assets:
Net investment income (loss)		(0.39	%)
Total expensesd		1.63	%
Net expensese,f		1.35	%
Portfolio turnover rate		84	%

C-Class	Period Ended March 31, 2015a
Per Share Data
Net asset value, beginning of period	$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)
Net gain (loss) on investments (realized and unrealized)		1.74
Total from investment operations		1.55
Net asset value, end of period	$	51.55
Total Returnc		3.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14
Ratios to average net assets:
Net investment income (loss)		(1.13	%)
Total expensesd		2.43	%
Net expensese,f		2.13	%
Portfolio turnover rate		84	%

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended March 31, 2015a
Per Share Data
Net asset value, beginning of period	$	50.00
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)
Net gain (loss) on investments (realized and unrealized)		1.67
Total from investment operations		1.57
Net asset value, end of period	$	51.57
Total Returnc		3.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	342,658
Ratios to average net assets:
Net investment income (loss)		(0.60	%)
Total expensesd		1.64	%
Net expensese,f		1.35	%
Portfolio turnover rate		84	%

a	Since commencement of operations: November 28, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charge and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net expense information reflects the expense ratios after expense waivers.
f	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the period presented would be:

	03/31/15
A-Class	1.35%
C-Class	2.10%
H-Class	1.35%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, with the NASDAQ-100 Index returning 22.03%, the Inverse NASDAQ-100^® Fund Investor Class returned -20.31%. For the one-year period ended March 31, 2015, Inverse NASDAQ-100^® Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.

The Information Technology sector contributed most to performance of the underlying index, followed by the Health Care sector. The Telecommunications Services sector was the only one that detracted from performance. The Materials sector contributed least, followed by the Industrials sector.

Apple, Inc., Gilead Sciences, Inc., and Facebook, Inc. Class A were the holdings contributing most to performance of the underlying index for the year. Wynn Resorts Ltd., Google, Inc. Class C and QUALCOMM, Inc. detracted most from performance of the underlying index for the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

56 | THE RYDEX FUNDS ANNUAL REPORT

 

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	22.0%
Total	22.0%
“Largest Holding” excludes any temporary cash or derivative instruments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-20.31%	-18.94%	-13.47%
Advisor Class Shares	-20.86%	-19.39%	-13.93%
A-Class Shares	-20.50%	-19.21%	-13.71%
A-Class Shares with sales charge†	-24.29%	-19.99%	-14.13%
C-Class Shares	-21.13%	-19.81%	-14.36%
C-Class Shares with CDSC‡	-21.92%	-19.81%	-14.36%
NASDAQ-100 Index	22.03%	18.59%	12.27%
			Since Inception (09/18/14)
H-Class Shares			-7.49%
NASDAQ-100 Index			5.62%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for Advisor Class shares, C-Class shares and H-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 57

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 22.0%
Guggenheim Strategy Fund I1		77,277	$	1,924,197
Total Mutual Funds
(Cost $1,923,966)				1,924,197
	Face Amount
REPURCHASE AGREEMENTS††,2 - 68.6%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	4,724,985		4,724,985
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		722,079		722,079
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		579,586		579,586
Total Repurchase Agreements
(Cost $6,026,650)				6,026,650
Total Investments - 90.6%
(Cost $7,950,616)			$	7,950,847
Other Assets & Liabilities, net - 9.4%				828,228
Total Net Assets - 100.0%			$	8,779,075

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
June 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $1,990,995)		23	$	4,490
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc April 2015 NASDAQ-100 Index Swap, Terminating 04/30/153 (Notional Value $981,531)		226	$	(612	)
Goldman Sachs International April 2015 NASDAQ-100 Index Swap, Terminating 04/28/153 (Notional Value $892,847)		206		(4,197	)
Credit Suisse Capital, LLC April 2015 NASDAQ-100 Index Swap, Terminating 04/28/153 (Notional Value $4,898,372)		1,130		(22,583	)
(Total Notional Value $6,772,750)			$	(27,392	)

†	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	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	plc — Public Limited Company

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $1,923,966)	$	1,924,197
Repurchase agreements, at value (cost $6,026,650)		6,026,650
Total investments (cost $7,950,616)		7,950,847
Segregated cash with broker		1,145,896
Receivables:
Variation margin		20,355
Fund shares sold		16,523
Dividends		2,294
Interest		5
Total assets		9,135,920
Liabilities:
Unrealized depreciation on swap agreements		27,392
Payable for:
Fund shares redeemed		304,026
Management fees		6,370
Swap settlement		5,502
Securities purchased		2,294
Transfer agent and administrative fees		1,769
Distribution and service fees		1,019
Portfolio accounting fees		708
Miscellaneous		7,765
Total liabilities		356,845
Commitments and contingent liabilities (Note 15)		—
Net assets	$	8,779,075
Net assets consist of:
Paid in capital	$	60,736,716
Accumulated net investment loss		(30,748	)
Accumulated net realized loss on investments		(51,904,222	)
Net unrealized depreciation on investments		(22,671	)
Net assets	$	8,779,075
Investor Class:
Net assets	$	6,820,535
Capital shares outstanding		258,681
Net asset value per share	$	26.37
Advisor Class:
Net assets	$	55,928
Capital shares outstanding		2,260
Net asset value per share	$	24.75
A-Class:
Net assets	$	570,126
Capital shares outstanding		22,410
Net asset value per share	$	25.44
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.71
C-Class:
Net assets	$	997,559
Capital shares outstanding		44,177
Net asset value per share	$	22.58
H-Class:
Net assets	$	334,927
Capital shares outstanding		13,166
Net asset value per share	$	25.44

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	35,303
Interest		1,428
Total investment income		36,731
Expenses:
Management fees		102,138
Transfer agent and administrative fees		28,372
Distribution and service fees:
Advisor Class		2,570
A-Class		5,408
C-Class		9,919
H-Class**		41
Portfolio accounting fees		11,349
Custodian fees		1,324
Trustees’ fees*		826
Miscellaneous		21,275
Total expenses		183,222
Net investment loss		(146,491	)

Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	(11,338	)
Swap agreements		(3,013,781	)
Futures contracts		206,203
Net realized loss		(2,818,916	)
Net change in unrealized appreciation (depreciation) on:
Investments		231
Swap agreements		(47,717	)
Futures contracts		4,490
Net change in unrealized appreciation (depreciation)		(42,996	)
Net realized and unrealized loss		(2,861,912	)
Net decrease in net assets resulting from operations	$	(3,008,403	)

*	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.

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(146,491	)	$	(179,288	)
Net realized loss on investments		(2,818,916	)		(3,424,508	)
Net change in unrealized appreciation (depreciation) on investments		(42,996	)		65,013
Net decrease in net assets resulting from operations		(3,008,403	)		(3,538,783	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		125,263,815			152,933,607
Advisor Class		22,352,580			38,354,968
A-Class		10,300,215			646,006
C-Class		6,446,046			1,338,850
H-Class**		700,911			—
Cost of shares redeemed
Investor Class		(123,319,554	)		(150,997,216	)
Advisor Class		(22,218,407	)		(39,937,666	)
A-Class		(9,553,897	)		(371,971	)
C-Class		(5,751,807	)		(1,253,224	)
H-Class**		(348,024	)		—
Net increase from capital share transactions		3,871,878			713,354
Net increase (decrease) in net assets		863,475			(2,825,429	)
Net assets:
Beginning of year		7,915,600			10,741,029
End of year	$	8,779,075		$	7,915,600
Accumulated net investment loss at end of year	$	(30,748	)	$	—
Capital share activity:
Shares sold
Investor Class		4,196,223			4,127,092	*
Advisor Class		816,404			1,099,075	*
A-Class		374,065			17,551	*
C-Class		266,428			37,993	*
H-Class**		25,422			—
Shares redeemed
Investor Class		(4,144,984	)		(4,095,216	)*
Advisor Class		(817,928	)		(1,147,177	)*
A-Class		(363,273	)		(10,220	)*
C-Class		(241,845	)		(36,051	)*
H-Class**		(12,256	)		—
Net increase (decrease) in shares		98,256			(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.

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	33.09		$	43.91		$	46.95		$	59.62		$	75.34
Income (loss) from investment operations:
Net investment income (loss)a		(.33	)		(.54	)		(.60	)		(.80	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		(6.39	)		(10.28	)		(2.44	)		(11.87	)		(14.82	)
Total from investment operations		(6.72	)		(10.82	)		(3.04	)		(12.67	)		(15.72	)
Net asset value, end of period	$	26.37		$	33.09		$	43.91		$	46.95		$	59.62
Total Returnb		(20.31	%)		(24.62	%)		(6.50	%)		(21.22	%)		(20.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,821		$	6,865		$	7,709		$	8,792		$	32,978
Ratios to average net assets:
Net investment income (loss)		(1.14	%)		(1.44	%)		(1.32	%)		(1.38	%)		(1.30	%)
Total expensesc		1.46	%		1.46	%		1.44	%		1.45	%		1.47	%
Portfolio turnover rate		149	%		—			—			—			—

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	31.26		$	41.85		$	45.01		$	57.15		$	72.70
Income (loss) from investment operations:
Net investment income (loss)a		(.48	)		(.73	)		(.80	)		(1.05	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(6.03	)		(9.86	)		(2.36	)		(11.09	)		(14.35	)
Total from investment operations		(6.51	)		(10.59	)		(3.16	)		(12.14	)		(15.55	)
Net asset value, end of period	$	24.75		$	31.26		$	41.85		$	45.01		$	57.15
Total Returnb		(20.86	%)		(25.30	%)		(7.00	%)		(21.26	%)		(21.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	56		$	118		$	2,171		$	207		$	642
Ratios to average net assets:
Net investment income (loss)		(1.68	%)		(1.93	%)		(1.83	%)		(1.91	%)		(1.80	%)
Total expensesc		1.96	%		1.96	%		1.95	%		1.95	%		1.97	%
Portfolio turnover rate		149	%		—			—			—			—

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	32.00		$	42.61		$	45.77		$	58.30		$	73.88
Income (loss) from investment operations:
Net investment income (loss)a		(.37	)		(.60	)		(.70	)		(.90	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		(6.19	)		(10.01	)		(2.46	)		(11.63	)		(14.53	)
Total from investment operations		(6.56	)		(10.61	)		(3.16	)		(12.53	)		(15.58	)
Net asset value, end of period	$	25.44		$	32.00		$	42.61		$	45.77		$	58.30
Total Returnb		(20.50	%)		(24.88	%)		(6.89	%)		(21.53	%)		(21.11	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	570		$	372		$	183		$	474		$	946
Ratios to average net assets:
Net investment income (loss)		(1.35	%)		(1.69	%)		(1.56	%)		(1.62	%)		(1.54	%)
Total expensesc		1.71	%		1.71	%		1.68	%		1.69	%		1.72	%
Portfolio turnover rate		149	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	28.63		$	38.42		$	41.58		$	53.34		$	68.10
Income (loss) from investment operations:
Net investment income (loss)a		(.53	)		(.80	)		(.95	)		(1.20	)		(1.45	)
Net gain (loss) on investments (realized and unrealized)		(5.52	)		(8.99	)		(2.21	)		(10.56	)		(13.31	)
Total from investment operations		(6.05	)		(9.79	)		(3.16	)		(11.76	)		(14.76	)
Net asset value, end of period	$	22.58		$	28.63		$	38.42		$	41.58		$	53.34
Total Returnb		(21.13	%)		(25.44	%)		(7.58	%)		(22.12	%)		(21.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	998		$	561		$	678		$	752		$	2,435
Ratios to average net assets:
Net investment income (loss)		(2.12	%)		(2.44	%)		(2.32	%)		(2.37	%)		(2.29	%)
Total expensesc		2.46	%		2.46	%		2.44	%		2.45	%		2.47	%
Portfolio turnover rate		149	%		—			—			—			—

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

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 Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	27.50
Income (loss) from investment operations:
Net investment income (loss)a		(.20	)
Net gain (loss) on investments (realized and unrealized)		(1.86	)
Total from investment operations		(2.06	)
Net asset value, end of period	$	25.44
Total Returnb		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	335
Ratios to average net assets:
Net investment income (loss)		(1.35	%)
Total expensesc		1.68	%
Portfolio turnover rate		149	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 14 in Notes to Financial Statements.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since the commencement of operations of the Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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.

For the one-year period ended March 31, 2015, the Mid-Cap 1.5x Strategy Fund H-Class returned 15.56%. Over the same period, its benchmark, the S&P MidCap 400 Index, returned 12.19%. The Fund had a correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.

Financials and Health Care contributed most performance of the underlying index during the period. Energy was the only sector that detracted. Telecommunications Services and Materials contributed least to the performance of the underlying index.

Skyworks Solutions, Inc., Hanesbrands, Inc., and Qorvo, Inc., contributed most performance to the underlying index for the period. Cree, Inc., 3D Systems Corp. and Trimble Navigation Ltd. were the largest detractors from performance of the underlying index for the period.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 65

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	11.0%
Qorvo, Inc.	0.3%
Realty Income Corp.	0.3%
Church & Dwight Company, Inc.	0.3%
Signet Jewelers Ltd.	0.3%
Salix Pharmaceuticals Ltd.	0.3%
Advance Auto Parts, Inc.	0.3%
Federal Realty Investment Trust	0.3%
ResMed, Inc.	0.3%
Jarden Corp.	0.3%
Top Ten Total	13.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	15.50%	20.23%	9.84%
A-Class Shares with sales charge†	10.00%	19.06%	9.31%
C-Class Shares	14.63%	19.35%	9.03%
C-Class Shares with CDSC‡	13.63%	19.35%	9.03%
H-Class Shares	15.56%	20.27%	9.86%
S&P MidCap 400 Index	12.19%	15.72%	10.32%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

66 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 46.2%
FINANCIAL - 10.7%
Realty Income Corp.		1,660	$	85,657
Federal Realty Investment Trust		506		74,488
UDR, Inc.		1,908		64,929
Alleghany Corp.*		118		57,465
Everest Re Group Ltd.		330		57,420
Arthur J Gallagher & Co.		1,215		56,802
Jones Lang LaSalle, Inc.		331		56,402
Duke Realty Corp.		2,542		55,340
Extra Space Storage, Inc.		815		55,069
New York Community Bancorp, Inc.		3,264		54,607
Raymond James Financial, Inc.		937		53,203
Alexandria Real Estate Equities, Inc.		531		52,060
Camden Property Trust		640		50,003
Kilroy Realty Corp.		637		48,520
Signature Bank*		371		48,075
SVB Financial Group*		376		47,768
Reinsurance Group of America, Inc. — Class A		507		47,247
Regency Centers Corp.		694		47,220
Mid-America Apartment Communities, Inc.		555		42,885
East West Bancorp, Inc.		1,059		42,847
Omega Healthcare Investors, Inc.		1,022		41,463
HCC Insurance Holdings, Inc.		712		40,349
National Retail Properties, Inc.		975		39,946
Liberty Property Trust		1,098		39,199
Senior Housing Properties Trust		1,733		38,455
WR Berkley Corp.		742		37,478
Hospitality Properties Trust		1,106		36,487
Eaton Vance Corp.		873		36,351
Taubman Centers, Inc.		467		36,020
CBOE Holdings, Inc.		619		35,534
American Campus Communities, Inc.		827		35,453
Lamar Advertising Co. — Class A		592		35,088
American Financial Group, Inc.		541		34,705
Corrections Corporation of America		861		34,664
BioMed Realty Trust, Inc.		1,485		33,650
RenaissanceRe Holdings Ltd.		337		33,609
PacWest Bancorp		714		33,479
LaSalle Hotel Properties		833		32,370
City National Corp.		355		31,623
Highwoods Properties, Inc.		685		31,359
Waddell & Reed Financial, Inc. — Class A		616		30,517
Weingarten Realty Investors		831		29,899
Home Properties, Inc.		426		29,518
SLM Corp.*		3,123		28,981
Brown & Brown, Inc.		868		28,739
First American Financial Corp.		795		28,366
Synovus Financial Corp.		1,004		28,122
Cullen/Frost Bankers, Inc.		405		27,977
Umpqua Holdings Corp.		1,625		27,918
Stifel Financial Corp.*		489		27,262
Old Republic International Corp.		1,776		26,533
Commerce Bancshares, Inc.		612		25,900
Rayonier, Inc.		934		25,181
Webster Financial Corp.		668		24,749
First Horizon National Corp.		1,727		24,679
Tanger Factory Outlet Centers, Inc.		696		24,478
Federated Investors, Inc. — Class B		703		23,825
Hanover Insurance Group, Inc.		327		23,734
CoreLogic, Inc.*		662		23,349
Prosperity Bancshares, Inc.		444		23,301
FirstMerit Corp.		1,220		23,253
First Niagara Financial Group, Inc.		2,610		23,072
WP GLIMCHER, Inc.		1,365		22,700
Aspen Insurance Holdings Ltd.		459		21,679
StanCorp Financial Group, Inc.		311		21,334
Associated Banc-Corp.		1,097		20,404
Corporate Office Properties Trust		682		20,037
Bank of Hawaii Corp.		322		19,710
Primerica, Inc.		385		19,597
TCF Financial Corp.		1,214		19,084
Janus Capital Group, Inc.		1,091		18,754
Hancock Holding Co.		593		17,707
Fulton Financial Corp.		1,320		16,289
Washington Federal, Inc.		723		15,765
Cathay General Bancorp		547		15,562
Mercury General Corp.		268		15,477
Valley National Bancorp		1,629		15,378
Urban Edge Properties		645		15,287
Equity One, Inc.		571		15,240
BancorpSouth, Inc.		632		14,675
Alexander & Baldwin, Inc.		335		14,465
Kemper Corp.		369		14,376
Trustmark Corp.		498		12,091
Potlatch Corp.		299		11,972
Mack-Cali Realty Corp.		618		11,915
International Bancshares Corp.		426		11,089
Total Financial				2,795,229
INDUSTRIAL - 8.8%
Mettler-Toledo International, Inc.*		207		68,031
Wabtec Corp.		711		67,552
Rock-Tenn Co. — Class A		1,032		66,564
Energizer Holdings, Inc.		458		63,227
J.B. Hunt Transport Services, Inc.		679		57,984
Packaging Corporation of America		726		56,766
Fortune Brands Home & Security, Inc.		1,170		55,552
Acuity Brands, Inc.		320		53,811
Huntington Ingalls Industries, Inc.		356		49,893
B/E Aerospace, Inc.		781		49,687
Trimble Navigation Ltd.*		1,911		48,157
Avnet, Inc.		1,006		44,767
Carlisle Companies, Inc.		481		44,555
Waste Connections, Inc.		914		44,000
IDEX Corp.		577		43,753
Hubbell, Inc. — Class B		397		43,519

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Arrow Electronics, Inc.*		705	$	43,111
Trinity Industries, Inc.		1,148		40,765
Gentex Corp.		2,178		39,857
Old Dominion Freight Line, Inc.*		501		38,727
Lincoln Electric Holdings, Inc.		573		37,468
Genesee & Wyoming, Inc. — Class A*		378		36,454
AO Smith Corp.		554		36,376
AECOM*		1,147		35,350
Donaldson Company, Inc.		936		35,297
Zebra Technologies Corp. — Class A*		376		34,109
Lennox International, Inc.		303		33,842
Sonoco Products Co.		743		33,777
Exelis, Inc.		1,375		33,509
Orbital ATK, Inc.		437		33,487
Jabil Circuit, Inc.		1,425		33,317
Bemis Company, Inc.		719		33,297
Nordson Corp.		422		33,059
Cognex Corp.*		638		31,638
Graco, Inc.		435		31,390
Eagle Materials, Inc.		371		31,001
Kirby Corp.*		411		30,846
Belden, Inc.		314		29,378
AptarGroup, Inc.		460		29,219
AGCO Corp.		593		28,251
Oshkosh Corp.		576		28,103
Teledyne Technologies, Inc.*		260		27,750
ITT Corp.		671		26,780
Regal-Beloit Corp.		330		26,374
Esterline Technologies Corp.*		229		26,202
SPX Corp.		302		25,640
CLARCOR, Inc.		370		24,442
National Instruments Corp.		747		23,934
FEI Co.		308		23,513
Timken Co.		549		23,135
Crane Co.		360		22,468
Clean Harbors, Inc.*		395		22,428
Triumph Group, Inc.		372		22,216
Landstar System, Inc.		330		21,879
Woodward, Inc.		427		21,781
Valmont Industries, Inc.		177		21,750
Terex Corp.		783		20,820
Kennametal, Inc.		584		19,675
GATX Corp.		327		18,959
Con-way, Inc.		425		18,755
Silgan Holdings, Inc.		307		17,846
Louisiana-Pacific Corp.*		1,050		17,336
Tech Data Corp.*		282		16,291
KBR, Inc.		1,068		15,465
KLX, Inc.*		387		14,915
Vishay Intertechnology, Inc.		1,001		13,834
Knowles Corp.*		627		12,082
MSA Safety, Inc.		232		11,572
Werner Enterprises, Inc.		330		10,365
Itron, Inc.*		282		10,296
Harsco Corp.		591		10,201
Greif, Inc. — Class A		250		9,818
Granite Construction, Inc.		266		9,347
TimkenSteel Corp.		277		7,332
Tidewater, Inc.		346		6,622
Total Industrial				2,331,269
CONSUMER, NON-CYCLICAL - 7.7%
Church & Dwight Company, Inc.		963		82,259
Salix Pharmaceuticals Ltd.*		470		81,221
ResMed, Inc.		1,037		74,435
Towers Watson & Co. — Class A		513		67,810
Cooper Companies, Inc.		356		66,721
Centene Corp.*		876		61,924
United Therapeutics Corp.*		344		59,318
Hologic, Inc.*		1,796		59,313
WhiteWave Foods Co. — Class A*		1,286		57,021
CDK Global, Inc.		1,187		55,504
Omnicare, Inc.		716		55,175
Gartner, Inc.*		645		54,083
IDEXX Laboratories, Inc.*		348		53,759
MEDNAX, Inc.*		709		51,410
ManpowerGroup, Inc.		577		49,709
Hain Celestial Group, Inc.*		750		48,038
Global Payments, Inc.		495		45,382
Community Health Systems, Inc.*		861		45,013
SEI Investments Co.		960		42,326
Ingredion, Inc.		527		41,011
Service Corporation International		1,496		38,971
Teleflex, Inc.		306		36,974
Sirona Dental Systems, Inc.*		410		36,896
Graham Holdings Co. — Class B		33		34,638
Health Net, Inc.*		567		34,298
VCA, Inc.*		605		33,166
Flowers Foods, Inc.		1,359		30,904
STERIS Corp.		439		30,849
WEX, Inc.*		286		30,705
WellCare Health Plans, Inc.*		324		29,633
Align Technology, Inc.*		536		28,829
United Natural Foods, Inc.*		369		28,428
RR Donnelley & Sons Co.		1,474		28,286
Charles River Laboratories International, Inc.*		349		27,673
Live Nation Entertainment, Inc.*		1,070		26,996
TreeHouse Foods, Inc.*		316		26,866
Akorn, Inc.*		549		26,083
Avon Products, Inc.		3,206		25,616
Deluxe Corp.		368		25,495
LifePoint Hospitals, Inc.*		326		23,945
Bio-Rad Laboratories, Inc. — Class A*		152		20,547
Hill-Rom Holdings, Inc.		417		20,433
Corporate Executive Board Co.		247		19,726
Sotheby’s		453		19,144
Post Holdings, Inc.*		386		18,080

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Boston Beer Company, Inc. — Class A*		67	$	17,916
SUPERVALU, Inc.*		1,522		17,701
Rollins, Inc.		710		17,558
Thoratec Corp.*		399		16,714
Owens & Minor, Inc.		465		15,736
DeVry Education Group, Inc.		423		14,111
Lancaster Colony Corp.		143		13,609
Aaron’s, Inc.		476		13,476
Apollo Education Group, Inc. — Class A*		712		13,471
Dean Foods Co.		694		11,472
FTI Consulting, Inc.*		305		11,425
Rent-A-Center, Inc.		390		10,702
HMS Holdings Corp.*		652		10,073
Tootsie Roll Industries, Inc.		152		5,146
Total Consumer, Non-cyclical				2,043,723
CONSUMER, CYCLICAL - 6.1%
Signet Jewelers Ltd.		591		82,026
Advance Auto Parts, Inc.		539		80,683
Jarden Corp.*		1,323		69,987
Foot Locker, Inc.		1,048		66,023
Alaska Air Group, Inc.		968		64,062
Polaris Industries, Inc.		450		63,495
LKQ Corp.*		2,242		57,306
Williams-Sonoma, Inc.		632		50,377
Toll Brothers, Inc.*		1,179		46,382
Dick’s Sporting Goods, Inc.		724		41,261
Domino’s Pizza, Inc.		410		41,225
NVR, Inc.*		28		37,202
JetBlue Airways Corp.*		1,926		37,076
Carter’s, Inc.		389		35,970
Brunswick Corp.		685		35,243
Cinemark Holdings, Inc.		768		34,614
Office Depot, Inc.*		3,620		33,304
International Game Technology		1,824		31,756
Copart, Inc.*		839		31,521
Kate Spade & Co.*		940		31,387
World Fuel Services Corp.		532		30,579
Panera Bread Co. — Class A*		188		30,079
Ingram Micro, Inc. — Class A*		1,152		28,938
Brinker International, Inc.		465		28,625
MSC Industrial Direct Company, Inc. — Class A		374		27,003
Tempur Sealy International, Inc.*		449		25,925
Dana Holding Corp.		1,215		25,709
Watsco, Inc.		202		25,391
Buffalo Wild Wings, Inc.*		140		25,374
Tupperware Brands Corp.		367		25,330
CST Brands, Inc.		569		24,939
Wendy’s Co.		2,033		22,160
American Eagle Outfitters, Inc.		1,294		22,102
Scotts Miracle-Gro Co. — Class A		328		22,032
Thor Industries, Inc.		343		21,681
Chico’s FAS, Inc.		1,137		20,114
Cabela’s, Inc.*		352		19,705
Big Lots, Inc.		394		18,924
JC Penney Company, Inc.*		2,249		18,914
Life Time Fitness, Inc.*		265		18,804
Deckers Outdoor Corp.*		255		18,582
HNI Corp.		326		17,985
Cheesecake Factory, Inc.		343		16,920
HSN, Inc.		240		16,375
Ascena Retail Group, Inc.*		972		14,104
ANN, Inc.*		337		13,827
DreamWorks Animation SKG, Inc. — Class A*,1		534		12,923
Herman Miller, Inc.		439		12,187
Abercrombie & Fitch Co. — Class A		511		11,262
KB Home		671		10,481
Guess?, Inc.		471		8,756
MDC Holdings, Inc.		288		8,208
International Speedway Corp. — Class A		206		6,718
Total Consumer, Cyclical				1,621,556
TECHNOLOGY - 4.3%
ANSYS, Inc.*		664		58,557
Synopsys, Inc.*		1,133		52,480
MSCI, Inc. — Class A		829		50,826
Broadridge Financial Solutions, Inc.		891		49,014
Rackspace Hosting, Inc.*		866		44,677
Jack Henry & Associates, Inc.		603		42,144
Cadence Design Systems, Inc.*		2,156		39,757
NCR Corp.*		1,244		36,711
Ultimate Software Group, Inc.*		211		35,861
Informatica Corp.*		807		35,391
Cypress Semiconductor Corp.		2,344		33,074
MAXIMUS, Inc.		486		32,445
PTC, Inc.*		848		30,672
Teradyne, Inc.		1,606		30,273
Tyler Technologies, Inc.*		248		29,891
VeriFone Systems, Inc.*		839		29,273
Cree, Inc.*		823		29,208
Solera Holdings, Inc.		496		25,623
Atmel Corp.		3,070		25,266
SolarWinds, Inc.*		489		25,056
IPG Photonics Corp.*		263		24,380
Riverbed Technology, Inc.*		1,144		23,921
DST Systems, Inc.		211		23,360
Integrated Device Technology, Inc.*		1,094		21,902
3D Systems Corp.*,1		771		21,141
Fair Isaac Corp.		232		20,583
Leidos Holdings, Inc.		459		19,260
Lexmark International, Inc. — Class A		448		18,968
ACI Worldwide, Inc.*		855		18,519
Mentor Graphics Corp.		722		17,350
Diebold, Inc.		477		16,914
Convergys Corp.		730		16,695
Fairchild Semiconductor International, Inc. — Class A*		864		15,708
Allscripts Healthcare Solutions, Inc.*		1,251		14,962

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Science Applications International Corp.		290	$	14,892
Silicon Laboratories, Inc.*		289		14,673
Advent Software, Inc.		332		14,645
Intersil Corp. — Class A		962		13,776
CommVault Systems, Inc.*		311		13,591
Semtech Corp.*		492		13,109
Advanced Micro Devices, Inc.*		4,643		12,443
Rovi Corp.*		678		12,346
Acxiom Corp.*		570		10,539
Total Technology				1,129,876
BASIC MATERIALS - 2.2%
Ashland, Inc.		470		59,836
RPM International, Inc.		986		47,317
Valspar Corp.		551		46,301
Albemarle Corp.		827		43,699
NewMarket Corp.		78		37,268
Steel Dynamics, Inc.		1,781		35,798
Reliance Steel & Aluminum Co.		572		34,938
Royal Gold, Inc.		481		30,356
Cytec Industries, Inc.		526		28,425
United States Steel Corp.		1,074		26,206
PolyOne Corp.		657		24,539
Sensient Technologies Corp.		350		24,108
Compass Minerals International, Inc.		248		23,116
Domtar Corp.		470		21,723
Cabot Corp.		470		21,150
Minerals Technologies, Inc.		256		18,714
Olin Corp.		571		18,295
Carpenter Technology Corp.		388		15,085
Commercial Metals Co.		866		14,021
Worthington Industries, Inc.		371		9,872
Cliffs Natural Resources, Inc.		1,130		5,435
Total Basic Materials				586,202
ENERGY - 2.2%
HollyFrontier Corp.		1,446		58,231
Dresser-Rand Group, Inc.*		565		45,397
SunEdison, Inc.*		1,858		44,592
Oceaneering International, Inc.		735		39,639
Energen Corp.		538		35,508
Nabors Industries Ltd.		2,134		29,129
Gulfport Energy Corp.*		632		29,014
SM Energy Co.		498		25,737
Western Refining, Inc.		521		25,732
Superior Energy Services, Inc.		1,122		25,065
Murphy USA, Inc.*		317		22,941
Patterson-UTI Energy, Inc.		1,080		20,277
Dril-Quip, Inc.*		286		19,560
Denbury Resources, Inc.		2,606		18,998
California Resources Corp.		2,275		17,313
NOW, Inc.*,1		790		17,096
WPX Energy, Inc.*		1,504		16,439
Rowan Companies plc — Class A		919		16,275
Oil States International, Inc.*		379		15,073
Atwood Oceanics, Inc.		443		12,453
Helix Energy Solutions Group, Inc.*		726		10,861
Peabody Energy Corp.		2,027		9,973
Unit Corp.*		342		9,569
Rosetta Resources, Inc.*		543		9,242
Total Energy				574,114
UTILITIES - 2.1%
Alliant Energy Corp.		818		51,534
OGE Energy Corp.		1,471		46,498
UGI Corp.		1,274		41,519
Atmos Energy Corp.		743		41,088
Westar Energy, Inc.		974		37,752
National Fuel Gas Co.		621		37,465
Aqua America, Inc.		1,304		34,360
Questar Corp.		1,294		30,875
MDU Resources Group, Inc.		1,434		30,602
Great Plains Energy, Inc.		1,137		30,335
Vectren Corp.		609		26,881
Cleco Corp.		446		24,316
Hawaiian Electric Industries, Inc.		757		24,315
IDACORP, Inc.		371		23,325
WGL Holdings, Inc.		367		20,699
PNM Resources, Inc.		587		17,140
ONE Gas, Inc.		385		16,644
Black Hills Corp.		329		16,595
Total Utilities				551,943
COMMUNICATIONS - 1.6%
Qorvo, Inc.*		1,095		87,271
FactSet Research Systems, Inc.		286		45,531
Fortinet, Inc.*		1,046		36,558
AMC Networks, Inc. — Class A*		436		33,415
ARRIS Group, Inc.*		974		28,144
AOL, Inc.*		578		22,895
JDS Uniphase Corp.*		1,716		22,514
John Wiley & Sons, Inc. — Class A		342		20,910
Time, Inc.		807		18,109
Telephone & Data Systems, Inc.		724		18,028
Plantronics, Inc.		317		16,785
Ciena Corp.*		798		15,409
Meredith Corp.		269		15,002
InterDigital, Inc.		274		13,903
New York Times Co. — Class A		970		13,347
Polycom, Inc.*		990		13,266
NeuStar, Inc. — Class A*,1		411		10,119
Total Communications				431,206
INFORMATION TECHNOLOGY - 0.2%
Keysight Technologies, Inc.*		1,242		46,140

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
HEALTH CARE - 0.2%
Bio-Techne Corp.		274	$	27,479
Halyard Health, Inc.*		343		16,876
Total Health Care				44,355
CONSUMER DISCRETIONARY - 0.1%
Vista Outdoor, Inc.*		470		20,125
Total Common Stocks
(Cost $6,998,588)				12,175,738
MUTUAL FUNDS† - 11.0%
Guggenheim Strategy Fund I2		116,856		2,909,723
Total Mutual Funds
(Cost $2,906,503)				2,909,723
	Face Amount
REPURCHASE AGREEMENTS††,3 - 28.0%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	5,790,944		5,790,944
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		884,979		884,979
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		710,341		710,341
Total Repurchase Agreements
(Cost $7,386,264)				7,386,264
SECURITIES LENDING COLLATERAL††,4 - 0.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		16,031		16,031
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		5,515		5,515

Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		2,847		2,847
Total Securities Lending Collateral
(Cost $24,393)				24,393
Total Investments - 85.3%
(Cost $17,315,748)			$	22,496,118
Other Assets & Liabilities, net - 14.7%				3,882,697
Total Net Assets - 100.0%			$	26,378,815
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $1,520,200)		10	$	518
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc April 2015 S&P MidCap 400 Index Swap, Terminating 04/30/155 (Notional Value $23,885,312)		15,672	$	245,895
Credit Suisse Capital, LLC April 2015 S&P MidCap 400 Index Swap, Terminating 04/28/155 (Notional Value $1,313,217)		862		19,737
Goldman Sachs International April 2015 S&P MidCap 400 Index Swap, Terminating 04/28/155 (Notional Value $677,082)		444		10,181
(Total Notional Value $25,875,611)			$	275,813

*	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 March 31, 2015 — 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	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 ANNUAL REPORT | 71

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $24,184 of securities loaned (cost $9,905,091)	$	15,085,461
Repurchase agreements, at value (cost $7,410,657)		7,410,657
Total investments (cost $17,315,748)		22,496,118
Segregated cash with broker		2,323,969
Unrealized appreciation on swap agreements		275,813
Cash		83
Receivables:
Fund shares sold		1,396,980
Dividends		13,528
Swap settlement		7,078
Variation margin		1,481
Securities lending income		155
Interest		7
Total assets		26,515,212
Liabilities:
Payable for:
Fund shares redeemed		40,227
Return of securities loaned		24,750
Management fees		18,405
Distribution and service fees		7,910
Transfer agent and administrative fees		5,113
Securities purchased		3,469
Portfolio accounting fees		2,045
Miscellaneous		34,478
Total liabilities		136,397
Commitment and contingent liabilities (Note 15)		—
Net assets	$	26,378,815
Net assets consist of:
Paid in capital	$	20,274,526
Undistributed net investment income		—
Accumulated net realized gain on investments		647,588
Net unrealized appreciation on investments		5,456,701
Net assets	$	26,378,815
A-Class:
Net assets	$	5,330,430
Capital shares outstanding		79,177
Net asset value per share	$	67.32
Maximum offering price per share (Net asset value divided by 95.25%)	$	70.68
C-Class:
Net assets	$	4,615,368
Capital shares outstanding		76,577
Net asset value per share	$	60.27
H-Class:
Net assets	$	16,433,017
Capital shares outstanding		243,635
Net asset value per share	$	67.45

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	550,242
Income from securities lending, net		7,493
Interest		1,765
Total investment income		559,500
Expenses:
Management fees		431,170
Transfer agent and administrative fees		119,770
Distribution and service fees:
A-Class		5,237
C-Class		44,613
H-Class		103,379
Portfolio accounting fees		47,907
Custodian fees		5,546
Trustees’ fees*		3,097
Line of credit fees		780
Miscellaneous		66,932
Total expenses		828,431
Net investment loss		(268,931	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,691,463
Swap agreements		4,069,403
Futures contracts		3,137,237
Net realized gain		12,898,103
Net change in unrealized appreciation (depreciation) on:
Investments		(1,909,732	)
Swap agreements		127,516
Futures contracts		(54,360	)
Net change in unrealized appreciation (depreciation)		(1,836,576	)
Net realized and unrealized gain		11,061,527
Net increase in net assets resulting from operations	$	10,792,596

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(268,931	)	$	(349,121	)
Net realized gain on investments		12,898,103			11,514,098
Net change in unrealized appreciation (depreciation) on investments		(1,836,576	)		(2,648,721	)
Net increase in net assets resulting from operations		10,792,596			8,516,256
Distributions to shareholders from:
Net realized gains
A-Class		(7,007	)		—
C-Class		(16,371	)		—
H-Class		(613,785	)		—
Total distributions to shareholders		(637,163	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		4,910,310			5,147,333
C-Class		1,521,171			2,786,279
H-Class		529,535,828			351,619,280
Distributions reinvested
A-Class		6,996			—
C-Class		15,357			—
H-Class		344,886			—
Cost of shares redeemed
A-Class		(2,478,109	)		(5,193,473	)
C-Class		(2,066,363	)		(4,325,407	)
H-Class		(542,160,150	)		(396,329,575	)
Net decrease from capital share transactions		(10,370,074	)		(46,295,563	)
Net decrease in net assets		(214,641	)		(37,779,307	)
Net assets:
Beginning of year		26,593,456			64,372,763
End of year	$	26,378,815		$	26,593,456
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	—		$	(68,833	)
Capital share activity:
Shares sold
A-Class		76,447			98,241
C-Class		28,166			61,396
H-Class		8,717,857			6,703,452
Shares issued from reinvestment of distributions
A-Class		114			—
C-Class		278			—
H-Class		5,604			—
Shares redeemed
A-Class		(42,389	)		(102,024	)
C-Class		(38,071	)		(99,832	)
H-Class		(8,811,347	)		(7,636,463	)
Net decrease in shares		(63,341	)		(975,230	)

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	58.48		$	45.07		$	36.23		$	37.14		$	26.89
Income (loss) from investment operations:
Net investment income (loss)a		(.41	)		(.35	)		(.16	)		(.23	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		9.45			13.76			9.00			(.68	)		10.51
Total from investment operations		9.04			13.41			8.84			(.91	)		10.25
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	67.32		$	58.48		$	45.07		$	36.23		$	37.14
Total Returnb		15.50	%		29.75	%		24.40	%		(2.45	%)		38.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,330		$	2,632		$	2,199		$	1,997		$	1,877
Ratios to average net assets:
Net investment income (loss)		(0.66	%)		(0.68	%)		(0.43	%)		(0.68	%)		(0.88	%)
Total expensesc		1.64	%		1.67	%		1.66	%		1.66	%		1.70	%
Portfolio turnover rate		598	%		563	%		447	%		141	%		211	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.77		$	40.97		$	33.18		$	34.26		$	24.98
Income (loss) from investment operations:
Net investment income (loss)a		(.76	)		(.64	)		(.41	)		(.43	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		8.46			12.44			8.20			(.65	)		9.71
Total from investment operations		7.70			11.80			7.79			(1.08	)		9.28
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	60.27		$	52.77		$	40.97		$	33.18		$	34.26
Total Returnb		14.63	%		28.80	%		23.48	%		(3.15	%)		37.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,615		$	4,549		$	5,107		$	4,815		$	6,045
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		(1.40	%)		(1.23	%)		(1.42	%)		(1.59	%)
Total expensesc		2.40	%		2.42	%		2.40	%		2.41	%		2.44	%
Portfolio turnover rate		598	%		563	%		447	%		141	%		211	%

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	58.56		$	45.13		$	36.27		$	37.12		$	26.89
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.34	)		(.15	)		(.24	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		9.38			13.77			9.01			(.61	)		10.51
Total from investment operations		9.09			13.43			8.86			(.85	)		10.23
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	67.45		$	58.56		$	45.13		$	36.27		$	37.12
Total Returnb		15.56	%		29.76	%		24.43	%		(2.29	%)		38.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,433		$	19,413		$	57,067		$	16,974		$	42,647
Ratios to average net assets:
Net investment income (loss)		(0.47	%)		(0.66	%)		(0.41	%)		(0.72	%)		(0.91	%)
Total expensesc		1.66	%		1.68	%		1.67	%		1.66	%		1.70	%
Portfolio turnover rate		598	%		563	%		447	%		141	%		211	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400 Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one year ended March 31, 2015, Inverse Mid-Cap Strategy Fund H-Class returned -13.47%. Over the same period, its benchmark, the S&P MidCap 400 Index, returned 12.19%. Inverse Mid-Cap Strategy Fund achieved a daily correlation of 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.

Financials and Health Care contributed most performance of the underlying index during the period. Energy was the only sector that detracted. Telecommunications Services and Materials contributed least to the performance of the underlying index.

Skyworks Solutions, Inc., Hanesbrands, Inc., and Qorvo, Inc., contributed most performance to the underlying index for the period. Cree, Inc., 3D Systems Corp. and Trimble Navigation Ltd. were the largest detractors from performance of the underlying index for the period.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

76 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	22.5%
Total	22.5%
“Largest Holding” excludes any temporary cash or derivative instruments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	-13.47%	-17.83%	-12.56%
A-Class Shares with sales charge†	-17.58%	-18.62%	-12.98%
C-Class Shares	-14.09%	-18.45%	-13.23%
C-Class Shares with CDSC‡	-14.95%	-18.45%	-13.23%
H-Class Shares	-13.47%	-17.84%	-12.58%
S&P MidCap 400 Index	12.19%	15.72%	10.32%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 77

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 22.5%
Guggenheim Strategy Fund I1		28,422	$	707,700
Total Mutual Funds
(Cost $708,770)				707,700
	Face Amount
REPURCHASE AGREEMENTS††,2 - 93.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	2,320,800		2,320,800
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		354,668		354,668
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		284,679		284,679
Total Repurchase Agreements
(Cost $2,960,147)				2,960,147
Total Investments - 116.4%
(Cost $3,668,917)			$	3,667,847
Other Assets & Liabilities, net - (16.4)%				(516,713	)
Total Net Assets - 100.0%			$	3,151,134

	Units		Unrealized Loss
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc April 2015 S&P MidCap 400 Index Swap, Terminating 04/30/153 (Notional Value $633,312)		416	$	(6,721	)
Goldman Sachs International April 2015 S&P MidCap 400 Index Swap, Terminating 04/28/153 (Notional Value $649,917)	��	426		(9,785	)
Credit Suisse Capital, LLC April 2015 S&P MidCap 400 Index Swap, Terminating 04/28/153 (Notional Value $1,864,745)		1,224		(28,026	)
(Total Notional Value $3,147,974)			$	(44,532	)

†	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	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
	plc — Public Limited Company

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $708,770)	$	707,700
Repurchase agreements, at value (cost $2,960,147)		2,960,147
Total investments (cost $3,668,917)		3,667,847
Segregated cash with broker		605,986
Receivables:
Fund shares sold		20,198
Variation margin		1,445
Dividends		844
Interest		3
Total assets		4,296,323
Liabilities:
Unrealized depreciation on swap agreements		44,532
Payable for:
Fund shares redeemed		1,084,754
Swap settlement		8,065
Management fees		2,808
Securities purchased		844
Distribution and service fees		836
Transfer agent and administrative fees		780
Portfolio accounting fees		312
Miscellaneous		2,258
Total liabilities		1,145,189
Commitments and contingent liabilities (Note 15)		—
Net assets	$	3,151,134
Net assets consist of:
Paid in capital	$	16,611,368
Accumulated net investment loss		(13,602	)
Accumulated net realized loss on investments		(13,401,030	)
Net unrealized depreciation on investments		(45,602	)
Net assets	$	3,151,134
A-Class:
Net assets	$	47,180
Capital shares outstanding		1,534
Net asset value per share	$	30.76
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.29
C-Class:
Net assets	$	89,072
Capital shares outstanding		3,163
Net asset value per share	$	28.16
H-Class:
Net assets	$	3,014,882
Capital shares outstanding		98,191
Net asset value per share	$	30.70

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:

Dividends	$	9,691
Interest		529
Total investment income		10,220
Expenses:
Management fees		34,349
Transfer agent and administrative fees		9,541
Distribution and service fees:
A-Class		380
C-Class		1,239
H-Class		8,852
Portfolio accounting fees		3,816
Custodian fees		445
Trustees’ fees*		279
Miscellaneous		5,121
Total expenses		64,022
Net investment loss		(53,802	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(922	)
Swap agreements		(318,367	)
Futures contracts		(64,785	)
Net realized loss		(384,074	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,070	)
Swap agreements		8,735
Net change in unrealized appreciation (depreciation)		7,665
Net realized and unrealized loss		(376,409	)
Net decrease in net assets resulting from operations	$	(430,211	)

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

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

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(53,802	)	$	(65,876	)
Net realized loss on investments		(384,074	)		(1,019,261	)
Net change in unrealized appreciation (depreciation) on investments		7,665			(18,278	)
Net decrease in net assets resulting from operations		(430,211	)		(1,103,415	)
Capital share transactions:
Proceeds from sale of shares
A-Class		718,727			581,605
C-Class		110,445			465,260
H-Class		22,439,039			36,107,700
Cost of shares redeemed
A-Class		(734,756	)		(499,127	)
C-Class		(134,631	)		(494,432	)
H-Class		(22,866,538	)		(32,658,493	)
Net increase (decrease) from capital share transactions		(467,714	)		3,502,513
Net increase (decrease) in net assets		(897,925	)		2,399,098
Net assets:
Beginning of year		4,049,059			1,649,961
End of year	$	3,151,134		$	4,049,059
Accumulated net investment loss at end of year	$	(13,602	)	$	(15,573	)
Capital share activity:
Shares sold
A-Class		20,062			15,265	*
C-Class		3,394			11,703	*
H-Class		668,274			900,020	*
Shares redeemed
A-Class		(21,136	)		(13,229	)*
C-Class		(4,230	)		(12,899	)*
H-Class		(677,878	)		(823,824	)*
Net increase (decrease) in shares		(11,514	)		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.

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	35.55		$	44.64		$	54.64		$	61.14		$	82.10
Income (loss) from investment operations:
Net investment income (loss)a		(.48	)		(.64	)		(.84	)		(1.02	)		(1.17	)
Net gain (loss) on investments (realized and unrealized)		(4.31	)		(8.45	)		(9.16	)		(5.48	)		(19.79	)
Total from investment operations		(4.79	)		(9.09	)		(10.00	)		(6.50	)		(20.96	)
Net asset value, end of period	$	30.76		$	35.55		$	44.64		$	54.64		$	61.14
Total Returnb		(13.47	%)		(20.36	%)		(18.29	%)		(10.65	%)		(25.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	47		$	93		$	26		$	115		$	268
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.65	%)		(1.52	%)		(1.63	%)		(1.54	%)
Total expensesc		1.66	%		1.67	%		1.64	%		1.66	%		1.69	%
Portfolio turnover rate		38	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	32.78		$	41.49		$	51.18		$	57.72		$	78.09
Income (loss) from investment operations:
Net investment income (loss)a		(.67	)		(.90	)		(1.14	)		(1.44	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		(3.95	)		(7.81	)		(8.55	)		(5.10	)		(18.72	)
Total from investment operations		(4.62	)		(8.71	)		(9.69	)		(6.54	)		(20.37	)
Net asset value, end of period	$	28.16		$	32.78		$	41.49		$	51.18		$	57.72
Total Returnb		(14.09	%)		(20.99	%)		(18.93	%)		(11.33	%)		(26.09	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	89		$	131		$	216		$	121		$	337
Ratios to average net assets:
Net investment income (loss)		(2.13	%)		(2.40	%)		(2.29	%)		(2.39	%)		(2.29	%)
Total expensesc		2.41	%		2.42	%		2.40	%		2.42	%		2.44	%
Portfolio turnover rate		38	%		—			—			—			—

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	35.49		$	44.59		$	54.57		$	61.08		$	82.06
Income (loss) from investment operations:
Net investment income (loss)a		(.47	)		(.66	)		(.81	)		(1.05	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(4.32	)		(8.44	)		(9.17	)		(5.46	)		(19.78	)
Total from investment operations		(4.79	)		(9.10	)		(9.98	)		(6.51	)		(20.98	)
Net asset value, end of period	$	30.70		$	35.49		$	44.59		$	54.57		$	61.08
Total Returnb		(13.47	%)		(20.39	%)		(18.31	%)		(10.66	%)		(25.56	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,015		$	3,825		$	1,409		$	1,578		$	1,845
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		(1.65	%)		(1.53	%)		(1.64	%)		(1.53	%)
Total expensesc		1.65	%		1.67	%		1.65	%		1.67	%		1.69	%
Portfolio turnover rate		38	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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.

For the one-year period ended March 31, 2015, Russell 2000^® 1.5x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index. Russell 2000^® 1.5x Strategy Fund H-Class returned 9.48%, while the Russell 2000 Index returned 8.21% over the same time period.

Among sectors, the biggest performance contributors to the underlying index during the period were Health Care and Financials. The Energy sector detracted the most from return, followed by the Materials sector.

Qorvo, Inc., InterMune, Inc., and Puma Biotechnology, Inc. were the largest contributors to performance of the underlying index for the year. CARBO Ceramics, Inc., Civeo Corp., and GT Advanced Technologies, Inc. were the leading detractors from performance of the underlying index for the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 83

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	6.6%
Qorvo, Inc.	0.4%
Isis Pharmaceuticals, Inc.	0.3%
Puma Biotechnology, Inc.	0.2%
Office Depot, Inc.	0.2%
Ultimate Software Group, Inc.	0.2%
JetBlue Airways Corp.	0.2%
Brunswick Corp.	0.2%
Graphic Packaging Holding Co.	0.2%
DexCom, Inc.	0.2%
Top Ten Total	8.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	9.48%	18.22%	8.22%
A-Class Shares with sales charge†	4.29%	17.07%	7.69%
C-Class Shares	8.64%	17.32%	7.39%
C-Class Shares with CDSC‡	7.64%	17.32%	7.39%
H-Class Shares	9.48%	18.20%	8.20%
Russell 2000 Index	8.21%	14.57%	8.82%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

84 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 66.2%
FINANCIAL - 15.7%
LaSalle Hotel Properties		857	$	33,304
Investors Bancorp, Inc.		2,753		32,266
Highwoods Properties, Inc.		693		31,727
RLJ Lodging Trust		1,006		31,498
CubeSmart		1,245		30,067
First American Financial Corp.		822		29,329
Prosperity Bancshares, Inc.		536		28,129
Stifel Financial Corp.*		503		28,041
CNO Financial Group, Inc.		1,571		27,052
EPR Properties		440		26,413
Sunstone Hotel Investors, Inc.		1,582		26,372
Webster Financial Corp.		695		25,750
Sovran Self Storage, Inc.		272		25,552
Pebblebrook Hotel Trust		548		25,520
Strategic Hotels & Resorts, Inc.*		2,052		25,506
MGIC Investment Corp.*		2,602		25,056
Sun Communities, Inc.		370		24,686
Radian Group, Inc.		1,469		24,664
GEO Group, Inc.		558		24,407
FirstMerit Corp.		1,271		24,225
Bank of the Ozarks, Inc.		652		24,078
MarketAxess Holdings, Inc.		290		24,041
Medical Properties Trust, Inc.		1,593		23,481
Umpqua Holdings Corp.		1,281		22,008
DCT Industrial Trust, Inc.		633		21,940
Colony Capital, Inc. — Class A		826		21,410
Primerica, Inc.		420		21,378
DiamondRock Hospitality Co.		1,505		21,266
PRA Group, Inc.*		386		20,968
Healthcare Realty Trust, Inc.		739		20,529
National Health Investors, Inc.		288		20,451
Ryman Hospitality Properties, Inc.		334		20,344
United Bankshares, Inc.		531		19,955
Susquehanna Bancshares, Inc.		1,443		19,784
Janus Capital Group, Inc.		1,150		19,768
PrivateBancorp, Inc. — Class A		551		19,379
First Citizens BancShares, Inc. — Class A		74		19,217
Hancock Holding Co.		633		18,901
Acadia Realty Trust		523		18,243
First Industrial Realty Trust, Inc.		848		18,173
Cousins Properties, Inc.		1,691		17,926
WisdomTree Investments, Inc.		828		17,768
FNB Corp.		1,335		17,542
Cathay General Bancorp		613		17,440
RLI Corp.		330		17,295
Western Alliance Bancorporation*		581		17,221
BancorpSouth, Inc.		739		17,160
Wintrust Financial Corp.		359		17,117
Texas Capital Bancshares, Inc.*		351		17,076
Washington Federal, Inc.		779		16,985
American Equity Investment Life Holding Co.		572		16,662
Hudson Pacific Properties, Inc.		502		16,661
Financial Engines, Inc.1		396		16,564
Valley National Bancorp		1,744		16,463
New Residential Investment Corp.		1,084		16,293
Alexander & Baldwin, Inc.		375		16,193
DuPont Fabros Technology, Inc.		491		16,046
MB Financial, Inc.		511		15,999
Lexington Realty Trust		1,581		15,541
UMB Financial Corp.		290		15,338
IBERIABANK Corp.		242		15,253
Sabra Health Care REIT, Inc.		453		15,017
Invesco Mortgage Capital, Inc.		946		14,691
EastGroup Properties, Inc.		241		14,494
Blackhawk Network Holdings, Inc.*		404		14,451
Kennedy-Wilson Holdings, Inc.		552		14,429
Glacier Bancorp, Inc.		573		14,411
WageWorks, Inc.*		270		14,399
Chambers Street Properties		1,822		14,357
Chesapeake Lodging Trust		422		14,276
Washington Real Estate Investment Trust		512		14,147
Home BancShares, Inc.		417		14,132
Capitol Federal Financial, Inc.		1,101		13,762
Symetra Financial Corp.		580		13,607
First Financial Bankshares, Inc.		492		13,599
Hatteras Financial Corp.		742		13,475
Empire State Realty Trust, Inc. — Class A		705		13,261
AmTrust Financial Services, Inc.		231		13,164
Mack-Cali Realty Corp.		681		13,130
Evercore Partners, Inc. — Class A		254		13,122
New York REIT, Inc.		1,248		13,079
Kemper Corp.		334		13,012
CVB Financial Corp.		815		12,991
Old National Bancorp		905		12,842
Columbia Banking System, Inc.		441		12,776
South State Corp.		186		12,721
Retail Opportunity Investments Corp.		694		12,700
Education Realty Trust, Inc.		358		12,666
BGC Partners, Inc. — Class A		1,340		12,663
EverBank Financial Corp.		701		12,639
Equity One, Inc.		473		12,624
Trustmark Corp.		519		12,601
Selective Insurance Group, Inc.		433		12,579
Potlatch Corp.		312		12,492
PS Business Parks, Inc.		150		12,456
LTC Properties, Inc.		268		12,328
Pennsylvania Real Estate Investment Trust		529		12,289
Pinnacle Financial Partners, Inc.		274		12,182
PennyMac Mortgage Investment Trust		569		12,114
Government Properties Income Trust		525		11,996
Ellie Mae, Inc.*		216		11,947
American Assets Trust, Inc.		276		11,945
Montpelier Re Holdings Ltd.		300		11,531
Redwood Trust, Inc.		638		11,401

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Hilltop Holdings, Inc.*		578	$	11,236
Aircastle Ltd.		497		11,163
Argo Group International Holdings Ltd.		222		11,133
CYS Investments, Inc.		1,246		11,102
Community Bank System, Inc.		313		11,077
Ramco-Gershenson Properties Trust		594		11,048
FelCor Lodging Trust, Inc.		955		10,973
Associated Estates Realty Corp.		443		10,933
International Bancshares Corp.		419		10,907
BofI Holding, Inc.*		116		10,793
Horace Mann Educators Corp.		313		10,705
Credit Acceptance Corp.*		54		10,530
Parkway Properties, Inc.		606		10,514
National Penn Bancshares, Inc.		953		10,264
STAG Industrial, Inc.		435		10,231
First Midwest Bancorp, Inc.		579		10,057
Hersha Hospitality Trust		1,543		9,983
Springleaf Holdings, Inc.*		189		9,785
HFF, Inc. — Class A		252		9,460
PHH Corp.*		389		9,402
Sterling Bancorp		697		9,347
Summit Hotel Properties, Inc.		658		9,258
Enstar Group Ltd.*		65		9,221
Altisource Residential Corp.		439		9,158
Home Loan Servicing Solutions Ltd.		546		9,031
St. Joe Co.*		486		9,020
Physicians Realty Trust		512		9,016
Franklin Street Properties Corp.		692		8,871
BBCN Bancorp, Inc.		612		8,856
Westamerica Bancorporation		203		8,772
ARMOUR Residential REIT, Inc.		2,745		8,702
Capstead Mortgage Corp.		736		8,663
Provident Financial Services, Inc.		464		8,654
Greenhill & Company, Inc.		218		8,644
Astoria Financial Corp.		666		8,625
Chatham Lodging Trust		293		8,617
Northwest Bancshares, Inc.		727		8,615
Independent Bank Corp.		195		8,555
iStar Financial, Inc.*		653		8,489
NBT Bancorp, Inc.		336		8,420
Ambac Financial Group, Inc.*		347		8,397
Investment Technology Group, Inc.*		277		8,396
Park National Corp.		98		8,385
Encore Capital Group, Inc.*		198		8,235
WesBanco, Inc.		252		8,210
Essent Group Ltd.*		342		8,177
Simmons First National Corp. — Class A		175		7,957
Union Bankshares Corp.		357		7,929
First Financial Bancorp		444		7,908
Chemical Financial Corp.		252		7,903
CoreSite Realty Corp.		162		7,886
CyrusOne, Inc.		253		7,873
Eagle Bancorp, Inc.*		203		7,795
Starwood Waypoint Residential Trust		301		7,781
Apollo Commercial Real Estate Finance, Inc.		447		7,679
Nelnet, Inc. — Class A		161		7,619
Terreno Realty Corp.		329		7,501
Boston Private Financial Holdings, Inc.		616		7,484
Alexander’s, Inc.		16		7,305
Renasant Corp.		242		7,272
United Community Banks, Inc.		385		7,269
Infinity Property & Casualty Corp.		88		7,220
Inland Real Estate Corp.		672		7,184
Kite Realty Group Trust		253		7,127
American Capital Mortgage Investment Corp.		394		7,076
Select Income REIT		283		7,072
Virtus Investment Partners, Inc.		54		7,062
LegacyTexas Financial Group, Inc.		307		6,978
Rexford Industrial Realty, Inc.		441		6,972
Greenlight Capital Re Ltd. — Class A*		218		6,932
Banner Corp.		151		6,931
Stewart Information Services Corp.		165		6,706
AMERISAFE, Inc.		143		6,614
Piper Jaffray Cos.*		126		6,610
Excel Trust, Inc.		470		6,589
First Merchants Corp.		277		6,521
First Commonwealth Financial Corp.		724		6,516
Employers Holdings, Inc.		241		6,505
S&T Bancorp, Inc.		229		6,499
Investors Real Estate Trust		861		6,458
New York Mortgage Trust, Inc.		806		6,255
Navigators Group, Inc.*		80		6,227
Third Point Reinsurance Ltd.*		437		6,184
Universal Insurance Holdings, Inc.		240		6,142
Tompkins Financial Corp.		114		6,139
Cohen & Steers, Inc.		149		6,102
Safety Insurance Group, Inc.		99		5,915
Northfield Bancorp, Inc.		390		5,780
Maiden Holdings Ltd.		385		5,710
City Holding Co.		121		5,691
State Bank Financial Corp.		270		5,670
OFG Bancorp		347		5,663
STORE Capital Corp.		242		5,651
Aviv REIT, Inc.		152		5,548
Brookline Bancorp, Inc.		543		5,457
Rouse Properties, Inc.		286		5,423
Wilshire Bancorp, Inc.		540		5,384
First Potomac Realty Trust		452		5,374
Berkshire Hills Bancorp, Inc.		193		5,346
TowneBank		331		5,322
Southside Bancshares, Inc.		185		5,308
Universal Health Realty Income Trust		93		5,231
Lakeland Financial Corp.		128		5,194
Hanmi Financial Corp.		245		5,182
WSFS Financial Corp.		68		5,143
Capital Bank Financial Corp. — Class A*		186		5,135

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
United Financial Bancorp, Inc.		413	$	5,134
Oritani Financial Corp.		352		5,122
Ameris Bancorp		194		5,120
National General Holdings Corp.		273		5,105
Sandy Spring Bancorp, Inc.		193		5,062
United Fire Group, Inc.		159		5,051
TrustCo Bank Corp. NY		729		5,016
First BanCorp*		801		4,966
Cass Information Systems, Inc.		88		4,940
Anworth Mortgage Asset Corp.		968		4,927
Ashford Hospitality Trust, Inc.		512		4,925
Cardinal Financial Corp.		246		4,915
Cedar Realty Trust, Inc.		652		4,883
Western Asset Mortgage Capital Corp.1		321		4,841
Customers Bancorp, Inc.*		197		4,799
Silver Bay Realty Trust Corp.		296		4,783
Monmouth Real Estate Investment Corp.		430		4,777
Urstadt Biddle Properties, Inc. — Class A		207		4,773
Flushing Financial Corp.		233		4,676
Walter Investment Management Corp.*,1		289		4,667
Cowen Group, Inc. — Class A*		887		4,612
FBL Financial Group, Inc. — Class A		74		4,589
Resource Capital Corp.		993		4,508
American Residential Properties, Inc.*		248		4,462
Agree Realty Corp.		134		4,418
World Acceptance Corp.*		60		4,375
National Western Life Insurance Co. — Class A		17		4,323
Washington Trust Bancorp, Inc.		113		4,315
Saul Centers, Inc.		75		4,290
KCG Holdings, Inc. — Class A*		347		4,254
Forestar Group, Inc.*		269		4,242
TriCo Bancshares		174		4,199
RAIT Financial Trust		612		4,198
Arlington Asset Investment Corp. — Class A		172		4,138
AG Mortgage Investment Trust, Inc.		219		4,126
Acacia Research Corp.		385		4,120
Dime Community Bancshares, Inc.		252		4,057
Community Trust Bancorp, Inc.		121		4,012
Heartland Financial USA, Inc.		121		3,948
Heritage Financial Corp.		232		3,944
Apollo Residential Mortgage, Inc.		247		3,940
First Interstate BancSystem, Inc. — Class A		140		3,895
Enova International, Inc.*		197		3,879
Stock Yards Bancorp, Inc.		112		3,856
GAMCO Investors, Inc. — Class A		49		3,847
First NBC Bank Holding Co.*		114		3,760
First Busey Corp.		558		3,733
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		203		3,711
1st Source Corp.		115		3,695
Getty Realty Corp.		197		3,585
Dynex Capital, Inc.		421		3,566
Campus Crest Communities, Inc.		498		3,566
International. FCStone, Inc.*		119		3,538
Diamond Hill Investment Group, Inc.		22		3,520
OM Asset Management plc		186		3,467
Waterstone Financial, Inc.		265		3,403
CoBiz Financial, Inc.		276		3,400
ConnectOne Bancorp, Inc.		174		3,386
Westwood Holdings Group, Inc.		56		3,377
Lakeland Bancorp, Inc.		292		3,358
BancFirst Corp.		55		3,354
QTS Realty Trust, Inc. — Class A		92		3,350
Ashford Hospitality Prime, Inc.		196		3,287
Meadowbrook Insurance Group, Inc.		386		3,281
CenterState Banks, Inc.		273		3,251
Federated National Holding Co.		106		3,244
CareTrust REIT, Inc.		237		3,214
Bryn Mawr Bank Corp.		105		3,193
Yadkin Financial Corp.*		157		3,187
HCI Group, Inc.		69		3,165
First Financial Corp.		88		3,158
Banc of California, Inc.		255		3,139
Enterprise Financial Services Corp.		151		3,120
HomeStreet, Inc.*		170		3,114
Great Southern Bancorp, Inc.		79		3,112
MainSource Financial Group, Inc.		158		3,103
Central Pacific Financial Corp.		132		3,032
Metro Bancorp, Inc.		109		3,005
German American Bancorp, Inc.		101		2,972
Ladenburg Thalmann Financial Services, Inc.*		764		2,949
NMI Holdings, Inc. — Class A*		389		2,914
Gladstone Commercial Corp.		156		2,903
Blue Hills Bancorp, Inc.*		219		2,895
Hudson Valley Holding Corp.		113		2,888
United Insurance Holdings Corp.		128		2,880
Clifton Bancorp, Inc.		204		2,878
State Auto Financial Corp.		117		2,842
Beneficial Bancorp, Inc.*		248		2,800
BNC Bancorp		154		2,787
Whitestone REIT — Class B		173		2,747
Independent Bank Group, Inc.		70		2,724
Southwest Bancorp, Inc.		153		2,722
RE/MAX Holdings, Inc. — Class A		81		2,690
First Bancorp		152		2,669
OneBeacon Insurance Group Ltd. — Class A		175		2,662
Bank Mutual Corp.		359		2,628
Peoples Financial Services Corp.		58		2,602
HomeTrust Bancshares, Inc.*		161		2,571
Mercantile Bank Corp.		130		2,542
Walker & Dunlop, Inc.*		143		2,535
Peoples Bancorp, Inc.		105		2,482
CorEnergy Infrastructure Trust, Inc.		358		2,481
Univest Corporation of Pennsylvania		125		2,474
Preferred Bank/Los Angeles CA		90		2,472
Park Sterling Corp.		343		2,435

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Ares Commercial Real Estate Corp.		220	$	2,431
Financial Institutions, Inc.		106		2,431
First Defiance Financial Corp.		74		2,429
West Bancorporation, Inc.		122		2,427
NewStar Financial, Inc.*		206		2,416
Caesars Acquisition Co. — Class A*		352		2,394
First of Long Island Corp.		93		2,372
Bank of Kentucky Financial Corp.		48		2,354
NewBridge Bancorp		259		2,310
Bridge Bancorp, Inc.		89		2,299
One Liberty Properties, Inc.		94		2,295
Stonegate Bank		76		2,294
Bancorp, Inc.*		254		2,294
Bank of Marin Bancorp		45		2,291
Marcus & Millichap, Inc.*		61		2,286
Arrow Financial Corp.		84		2,281
Independent Bank Corp.		177		2,271
Camden National Corp.		57		2,271
Flagstar Bancorp, Inc.*		156		2,264
Federal Agricultural Mortgage Corp. — Class C		80		2,255
First Community Bancshares, Inc.		126		2,209
Phoenix Companies, Inc.*		44		2,200
Ladder Capital Corp. — Class A		117		2,166
Fidelity Southern Corp.		128		2,161
Pacific Premier Bancorp, Inc.*		133		2,153
Seacoast Banking Corporation of Florida*		150		2,141
United Community Financial Corp.		390		2,129
Suffolk Bancorp		89		2,115
Talmer Bancorp, Inc. — Class A		138		2,113
Great Western Bancorp, Inc.		96		2,113
Citizens, Inc.*		338		2,082
Meridian Bancorp, Inc.*		157		2,068
Armada Hoffler Properties, Inc.		193		2,057
Altisource Asset Management Corp.*		11		2,036
Bridge Capital Holdings*		76		1,984
Consolidated-Tomoka Land Co.		33		1,969
Citizens & Northern Corp.		95		1,917
Guaranty Bancorp		113		1,916
First Connecticut Bancorp, Inc.		124		1,906
BankFinancial Corp.		144		1,892
CNB Financial Corp.		111		1,889
Republic Bancorp, Inc. — Class A		76		1,879
Meta Financial Group, Inc.		47		1,867
Crawford & Co. — Class B		215		1,858
Pacific Continental Corp.		139		1,838
Oppenheimer Holdings, Inc. — Class A		78		1,830
Fidelity & Guaranty Life		86		1,823
Penns Woods Bancorp, Inc.		37		1,810
TriState Capital Holdings, Inc.*		170		1,780
OceanFirst Financial Corp.		103		1,779
Calamos Asset Management, Inc. — Class A		131		1,762
Global Indemnity plc — Class A*		63		1,748
PennyMac Financial Services, Inc. — Class A*		103		1,748
Gain Capital Holdings, Inc.		178		1,739
CU Bancorp*		76		1,729
CatchMark Timber Trust, Inc. — Class A		147		1,723
Moelis & Co. — Class A		56		1,687
Charter Financial Corp.		145		1,668
Baldwin & Lyons, Inc. — Class B		71		1,666
Peapack Gladstone Financial Corp.		77		1,663
Horizon Bancorp		70		1,637
UMH Properties, Inc.		160		1,611
Territorial Bancorp, Inc.		67		1,592
National Bankshares, Inc.		53		1,582
Ames National Corp.		63		1,566
Fox Chase Bancorp, Inc.		93		1,565
Atlas Financial Holdings, Inc.*		88		1,555
Sierra Bancorp		93		1,553
MidWestOne Financial Group, Inc.		53		1,528
National Interstate Corp.		54		1,516
American National Bankshares, Inc.		66		1,490
Heritage Commerce Corp.		161		1,470
Kearny Financial Corp.*		107		1,453
Heritage Oaks Bancorp		172		1,429
Square 1 Financial, Inc. — Class A*		53		1,419
FBR & Co.*		61		1,410
Manning & Napier, Inc. — Class A		105		1,366
Kansas City Life Insurance Co.		29		1,332
State National Companies, Inc.		133		1,323
EMC Insurance Group, Inc.		39		1,318
Capital City Bank Group, Inc.		81		1,316
Altisource Portfolio Solutions S.A.*		102		1,313
First Business Financial Services, Inc.		30		1,297
First Financial Northwest, Inc.		105		1,297
eHealth, Inc.*		137		1,285
Marlin Business Services Corp.		64		1,282
Northrim BanCorp, Inc.		52		1,276
First Bancorp, Inc.		73		1,274
Owens Realty Mortgage, Inc.		83		1,243
Sun Bancorp, Inc.*		65		1,229
Anchor BanCorp Wisconsin, Inc.*		35		1,216
Enterprise Bancorp, Inc.		57		1,211
Regional Management Corp.*		82		1,210
Opus Bank		39		1,204
Stonegate Mortgage Corp.*		110		1,190
Heritage Insurance Holdings, Inc.*		53		1,167
Hallmark Financial Services, Inc.*		109		1,155
Cascade Bancorp*		238		1,142
Merchants Bancshares, Inc.		39		1,138
BBX Capital Corp. — Class A*		61		1,135
Consumer Portfolio Services, Inc.*		162		1,132
Nicholas Financial, Inc.*		79		1,107
Macatawa Bank Corp.		202		1,081
Century Bancorp, Inc. — Class A		27		1,072
Trade Street Residential, Inc.		143		1,024
Old Line Bancshares, Inc.		64		1,011

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Donegal Group, Inc. — Class A		62	$	975
MidSouth Bancorp, Inc.		64		944
JG Wentworth Co. — Class A*		90		935
CommunityOne Bancorp*		89		876
Republic First Bancorp, Inc.*		237		860
Independence Holding Co.		59		802
Pzena Investment Management, Inc. — Class A		87		798
RCS Capital Corp. — Class A		72		766
FXCM, Inc. — Class A		351		748
Ashford, Inc.*		6		713
Palmetto Bancshares, Inc.		34		646
Higher One Holdings, Inc.*		260		629
Silvercrest Asset Management Group, Inc. — Class A		43		613
Triumph Bancorp, Inc.*		41		560
Trupanion, Inc.*		64		512
Hampton Roads Bankshares, Inc.*		261		493
C1 Financial, Inc.*		25		469
ServisFirst Bancshares, Inc.		14		462
GFI Group, Inc.		77		457
Green Bancorp, Inc.*		36		402
Fifth Street Asset Management, Inc.		32		361
CIFC Corp.		46		352
Medley Management, Inc. — Class A		31		341
RenaissanceRe Holdings Ltd.		1		96
Total Financial				3,294,015
CONSUMER, NON-CYCLICAL - 14.4%
Isis Pharmaceuticals, Inc.*		904		57,557
Puma Biotechnology, Inc.*		188		44,388
DexCom, Inc.*		577		35,969
West Pharmaceutical Services, Inc.		543		32,693
WEX, Inc.*		298		31,994
STERIS Corp.		455		31,973
Team Health Holdings, Inc.*		540		31,595
WellCare Health Plans, Inc.*		337		30,822
Cepheid*		536		30,497
PAREXEL International Corp.*		438		30,217
HealthSouth Corp.		678		30,075
United Natural Foods, Inc.*		382		29,429
Receptos, Inc.*		168		27,701
TreeHouse Foods, Inc.*		323		27,462
Deluxe Corp.		386		26,742
Neurocrine Biosciences, Inc.*		647		25,691
Impax Laboratories, Inc.*		539		25,263
Pacira Pharmaceuticals, Inc.*		274		24,345
Acadia Healthcare Company, Inc.*		329		23,556
Euronet Worldwide, Inc.*		392		23,031
Bluebird Bio, Inc.*		189		22,825
Akorn, Inc.*		480		22,805
ABIOMED, Inc.*		307		21,975
OPKO Health, Inc.*,1		1,515		21,467
Celldex Therapeutics, Inc.*		750		20,903
Corporate Executive Board Co.		260		20,764
Amsurg Corp. — Class A*		326		20,056
Sotheby’s		469		19,820
ACADIA Pharmaceuticals, Inc.*		606		19,750
Post Holdings, Inc.*		401		18,783
SUPERVALU, Inc.*		1,559		18,131
Haemonetics Corp.*		401		18,012
Helen of Troy Ltd.*		220		17,928
Darling Ingredients, Inc.*		1,260		17,652
Dyax Corp.*		1,045		17,509
Healthcare Services Group, Inc.		541		17,382
Synageva BioPharma Corp.*		178		17,360
Thoratec Corp.*		411		17,217
Advisory Board Co.*		323		17,209
Boston Beer Company, Inc. — Class A*		64		17,113
Prestige Brands Holdings, Inc.*		399		17,113
NuVasive, Inc.*		359		16,510
Owens & Minor, Inc.		486		16,446
Chemed Corp.		135		16,119
On Assignment, Inc.*		418		16,040
Monro Muffler Brake, Inc.		242		15,742
Molina Healthcare, Inc.*		232		15,611
Grand Canyon Education, Inc.*		359		15,546
Novavax, Inc.*		1,830		15,134
Magellan Health, Inc.*		212		15,014
Exact Sciences Corp.*		680		14,974
Ironwood Pharmaceuticals, Inc. — Class A*		919		14,704
Anacor Pharmaceuticals, Inc.*		253		14,636
Kindred Healthcare, Inc.		600		14,274
Insulet Corp.*		426		14,207
Sanderson Farms, Inc.		178		14,178
Clovis Oncology, Inc.*		190		14,104
Air Methods Corp.*		301		14,024
Medicines Co.*		500		14,010
ABM Industries, Inc.		430		13,700
Lancaster Colony Corp.		143		13,609
Cyberonics, Inc.*		207		13,438
Lannett Company, Inc.*		198		13,407
Fresh Market, Inc.*		329		13,371
Intrexon Corp.*		291		13,203
Neogen Corp.*		282		13,178
Heartland Payment Systems, Inc.		276		12,931
Cardtronics, Inc.*		342		12,859
Globus Medical, Inc. — Class A*		506		12,771
Vector Group Ltd.		579		12,720
Korn/Ferry International		383		12,589
Portola Pharmaceuticals, Inc.*		328		12,451
Cantel Medical Corp.		260		12,350
Ligand Pharmaceuticals, Inc. — Class B*		160		12,338
Masimo Corp.*		372		12,269
J&J Snack Foods Corp.		114		12,164
B&G Foods, Inc.		413		12,155
Bright Horizons Family Solutions, Inc.*		236		12,100
Huron Consulting Group, Inc.*		181		11,973

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Dean Foods Co.		719	$	11,885
Matthews International Corp. — Class A		230		11,847
Integra LifeSciences Holdings Corp.*		191		11,775
FTI Consulting, Inc.*		314		11,762
Snyder’s-Lance, Inc.		367		11,729
Catalent, Inc.*		376		11,712
HeartWare International, Inc.*		131		11,498
PTC Therapeutics, Inc.*		188		11,440
Halozyme Therapeutics, Inc.*		795		11,353
Rent-A-Center, Inc.		407		11,168
Spectranetics Corp.*		320		11,123
ExamWorks Group, Inc.*		267		11,113
Greatbatch, Inc.*		192		11,107
Abaxis, Inc.		173		11,091
EVERTEC, Inc.		505		11,039
AMAG Pharmaceuticals, Inc.*		200		10,932
Fresh Del Monte Produce, Inc.		278		10,817
Nektar Therapeutics*		976		10,736
Acorda Therapeutics, Inc.*		320		10,650
CONMED Corp.		210		10,603
Agios Pharmaceuticals, Inc.*		112		10,562
ARIAD Pharmaceuticals, Inc.*		1,267		10,440
HMS Holdings Corp.*		674		10,413
Brink’s Co.		373		10,306
WD-40 Co.		115		10,182
Depomed, Inc.*		446		9,995
Theravance, Inc.		634		9,966
Wright Medical Group, Inc.*		384		9,907
Keryx Biopharmaceuticals, Inc.*,1		776		9,878
Natus Medical, Inc.*		247		9,749
ICU Medical, Inc.*		103		9,593
Tumi Holdings, Inc.*		390		9,539
Cambrex Corp.*		236		9,353
Cal-Maine Foods, Inc.		238		9,296
Insperity, Inc.		175		9,151
SpartanNash Co.		289		9,121
MannKind Corp.*,1		1,754		9,121
Select Medical Holdings Corp.		606		8,987
Andersons, Inc.		217		8,977
Merrimack Pharmaceuticals, Inc.*		755		8,969
Chimerix, Inc.*		232		8,744
LifeLock, Inc.*		619		8,734
PDL BioPharma, Inc.		1,235		8,688
Analogic Corp.		95		8,636
Tetraphase Pharmaceuticals, Inc.*		235		8,610
Achillion Pharmaceuticals, Inc.*		873		8,608
TESARO, Inc.*		149		8,553
Universal Corp.		179		8,441
Endologix, Inc.*		493		8,416
NewLink Genetics Corp.*		153		8,371
Cardiovascular Systems, Inc.*		213		8,316
Seaboard Corp.*		2		8,264
AMN Healthcare Services, Inc.*		358		8,259
Sangamo BioSciences, Inc.*		522		8,185
NxStage Medical, Inc.*		473		8,183
Ensign Group, Inc.		173		8,107
Arena Pharmaceuticals, Inc.*		1,852		8,093
Auspex Pharmaceuticals, Inc.*		80		8,022
Insmed, Inc.*		381		7,925
Cempra, Inc.*		229		7,857
Prothena Corporation plc*		205		7,819
TrueBlue, Inc.*		318		7,743
Repligen Corp.*		246		7,469
MiMedx Group, Inc.*		716		7,446
Array BioPharma, Inc.*		1,006		7,414
Orexigen Therapeutics, Inc.*		938		7,345
ACCO Brands Corp.*		877		7,288
Tornier N.V.*		273		7,158
Affymetrix, Inc.*		560		7,034
Zeltiq Aesthetics, Inc.*		224		6,906
ZIOPHARM Oncology, Inc.*,1		626		6,742
KYTHERA Biopharmaceuticals, Inc.*		134		6,720
Bio-Reference Laboratories, Inc.*		188		6,625
Multi-Color Corp.		95		6,586
McGrath RentCorp		199		6,549
PharMerica Corp.*		231		6,512
Emergent Biosolutions, Inc.*		225		6,471
Merit Medical Systems, Inc.*		330		6,353
ICF International, Inc.*		154		6,291	��
Team, Inc.*		158		6,159
Hanger, Inc.*		271		6,149
IPC Healthcare, Inc.*		131		6,110
Meridian Bioscience, Inc.		319		6,087
Diamond Foods, Inc.*		186		6,058
Aegerion Pharmaceuticals, Inc.*		227		5,941
Quidel Corp.*		219		5,909
ImmunoGen, Inc.*		660		5,907
RPX Corp.*		408		5,871
Omeros Corp.*		265		5,838
Capital Senior Living Corp.*		223		5,785
Calavo Growers, Inc.		110		5,656
Momenta Pharmaceuticals, Inc.*		370		5,624
Amedisys, Inc.*		210		5,624
Accuray, Inc.*		591		5,496
Capella Education Co.		84		5,450
TherapeuticsMD, Inc.*		881		5,330
Cynosure, Inc. — Class A*		172		5,275
Infinity Pharmaceuticals, Inc.*		375		5,243
Raptor Pharmaceutical Corp.*		482		5,239
Resources Connection, Inc.		298		5,215
Foundation Medicine, Inc.*		107		5,148
USANA Health Sciences, Inc.*		46		5,112
Orthofix International N.V.*		142		5,096
Tootsie Roll Industries, Inc.		149		5,056
National Healthcare Corp.		79		5,033
Retrophin, Inc.*		210		5,032

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Ophthotech Corp.*		106	$	4,932
Navigant Consulting, Inc.*		378		4,899
Quad/Graphics, Inc.		213		4,895
BioCryst Pharmaceuticals, Inc.*		539		4,867
Acceleron Pharma, Inc.*		127		4,834
MacroGenics, Inc.*		153		4,800
Invacare Corp.		247		4,794
Hyperion Therapeutics, Inc.*		104		4,774
Healthways, Inc.*		242		4,767
Relypsa, Inc.*		131		4,725
LDR Holding Corp.*		128		4,690
Ingles Markets, Inc. — Class A		94		4,651
Kforce, Inc.		208		4,640
Luminex Corp.*		288		4,608
Geron Corp.*		1,207		4,550
OvaScience, Inc.*		131		4,550
Anika Therapeutics, Inc.*		110		4,529
Strayer Education, Inc.*		84		4,486
Insys Therapeutics, Inc.*		77		4,476
Boulder Brands, Inc.*		469		4,470
US Physical Therapy, Inc.		94		4,465
Monster Worldwide, Inc.*		700		4,438
NutriSystem, Inc.		222		4,436
Viad Corp.		158		4,396
Esperion Therapeutics, Inc.*		47		4,352
AtriCure, Inc.*		211		4,323
TriNet Group, Inc.*		121		4,263
Ascent Capital Group, Inc. — Class A*		106		4,219
Weis Markets, Inc.		84		4,180
Inter Parfums, Inc.		128		4,175
K12, Inc.*		265		4,166
Sarepta Therapeutics, Inc.*		313		4,157
GenMark Diagnostics, Inc.*		320		4,154
Kite Pharma, Inc.*		72		4,153
Atrion Corp.		12		4,146
Coca-Cola Bottling Company Consolidated		36		4,070
American Public Education, Inc.*		134		4,017
Vascular Solutions, Inc.*		132		4,002
Phibro Animal Health Corp. — Class A		112		3,966
Rockwell Medical, Inc.*		361		3,946
Genomic Health, Inc.*		129		3,941
Accelerate Diagnostics, Inc.*		174		3,915
Sagent Pharmaceuticals, Inc.*		168		3,906
Global Cash Access Holdings, Inc.*		507		3,863
Exelixis, Inc.*,1		1,497		3,847
Green Dot Corp. — Class A*		240		3,821
Triple-S Management Corp. — Class B*		192		3,817
Inovio Pharmaceuticals, Inc.*		463		3,778
Kelly Services, Inc. — Class A		211		3,680
Ultragenyx Pharmaceutical, Inc.*		59		3,663
Five Prime Therapeutics, Inc.*		157		3,587
Revlon, Inc. — Class A*		87		3,584
Aratana Therapeutics, Inc.*		221		3,538
Sequenom, Inc.*		895		3,535
Central Garden & Pet Co. — Class A*		332		3,526
SciClone Pharmaceuticals, Inc.*		396		3,509
Karyopharm Therapeutics, Inc.*		114		3,490
Xoom Corp.*		237		3,482
Universal American Corp.*		325		3,471
Heidrick & Struggles International, Inc.		140		3,441
AngioDynamics, Inc.*		190		3,380
BioDelivery Sciences International, Inc.*		320		3,360
Synergy Pharmaceuticals, Inc.*,1		718		3,317
ANI Pharmaceuticals, Inc.*		53		3,315
Surgical Care Affiliates, Inc.*		96		3,296
TG Therapeutics, Inc.*		211		3,266
Progenics Pharmaceuticals, Inc.*		533		3,187
Albany Molecular Research, Inc.*		181		3,186
XenoPort, Inc.*		445		3,168
Intra-Cellular Therapies, Inc.*		132		3,152
Unilife Corp.*,1		784		3,144
Theravance Biopharma, Inc.*		181		3,140
LHC Group, Inc.*		95		3,138
Chefs’ Warehouse, Inc.*		139		3,118
Forrester Research, Inc.		84		3,090
Elizabeth Arden, Inc.*		198		3,089
Spectrum Pharmaceuticals, Inc.*		502		3,047
Medifast, Inc.*		101		3,027
CBIZ, Inc.*		319		2,976
Carriage Services, Inc. — Class A		124		2,960
CorVel Corp.*		85		2,925
ARC Document Solutions, Inc.*		316		2,917
Cerus Corp.*		691		2,881
Almost Family, Inc.*		64		2,861
Arrowhead Research Corp.*		420		2,841
Ennis, Inc.		201		2,838
Vanda Pharmaceuticals, Inc.*		305		2,837
Cross Country Healthcare, Inc.*		239		2,835
OraSure Technologies, Inc.*		430		2,812
Radius Health, Inc.*		68		2,799
Great Lakes Dredge & Dock Corp.*		460		2,765
Tejon Ranch Co.*		104		2,751
LendingTree, Inc.*		49		2,744
Pernix Therapeutics Holdings, Inc.*		256		2,737
SurModics, Inc.*		105		2,733
Supernus Pharmaceuticals, Inc.*		225		2,720
John B Sanfilippo & Son, Inc.		63		2,715
Heron Therapeutics, Inc.*		180		2,619
SP Plus Corp.*		119		2,600
Career Education Corp.*		515		2,590
Pacific Biosciences of California, Inc.*		443		2,587
Osiris Therapeutics, Inc.*		146		2,567
Landauer, Inc.		73		2,565
Aerie Pharmaceuticals, Inc.*		81		2,539
XOMA Corp.*		695		2,530
OncoMed Pharmaceuticals, Inc.*		97		2,501

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Agenus, Inc.*		479	$	2,457
Idera Pharmaceuticals, Inc.*		659		2,445
Immunomedics, Inc.*		636		2,436
Antares Pharma, Inc.*		898		2,434
Enanta Pharmaceuticals, Inc.*		79		2,419
Zafgen, Inc.*		61		2,416
Rigel Pharmaceuticals, Inc.*		673		2,403
Avalanche Biotechnologies, Inc.*		59		2,391
CRA International, Inc.*		76		2,365
Ampio Pharmaceuticals, Inc.*		313		2,357
Barrett Business Services, Inc.		55		2,356
BioScrip, Inc.*		526		2,330
Corcept Therapeutics, Inc.*		411		2,302
CryoLife, Inc.		216		2,240
Alder Biopharmaceuticals, Inc.*		77		2,222
Sage Therapeutics, Inc.*		44		2,210
Atara Biotherapeutics, Inc.*		53		2,203
Verastem, Inc.*		216		2,197
STAAR Surgical Co.*		295		2,192
Omega Protein Corp.*		160		2,190
ZS Pharma, Inc.*		52		2,188
Northwest Biotherapeutics, Inc.*,1		295		2,174
Adeptus Health, Inc. — Class A*		43		2,159
Otonomy, Inc.*		61		2,157
RTI Surgical, Inc.*		436		2,154
CSS Industries, Inc.		71		2,141
Sucampo Pharmaceuticals, Inc. — Class A*		137		2,132
National Beverage Corp.*		87		2,124
RadNet, Inc.*		252		2,117
CTI BioPharma Corp.*		1,151		2,083
Nevro Corp.*		42		2,013
IGI Laboratories, Inc.*		246		2,007
HealthEquity, Inc.*		80		1,999
Regulus Therapeutics, Inc.*		118		1,999
BioTime, Inc.*		401		1,993
MoneyGram International, Inc.*		224		1,935
Exactech, Inc.*		75		1,922
Seneca Foods Corp. — Class A*		63		1,878
Natural Grocers by Vitamin Cottage, Inc.*		68		1,877
Limoneira Co.		86		1,875
Ocular Therapeutix, Inc.*		44		1,847
Epizyme, Inc.*		98		1,840
Navidea Biopharmaceuticals, Inc.*		1,154		1,835
Civeo Corp.		722		1,834
Peregrine Pharmaceuticals, Inc.*		1,358		1,833
Paylocity Holding Corp.*		64		1,833
Lexicon Pharmaceuticals, Inc.*		1,923		1,816
Cytokinetics, Inc.*		266		1,803
BioTelemetry, Inc.*		203		1,797
Endocyte, Inc.*		284		1,778
Utah Medical Products, Inc.		29		1,736
Hackett Group, Inc.		193		1,725
Xencor, Inc.*		112		1,716
Organovo Holdings, Inc.*		481		1,703
VIVUS, Inc.*,1		691		1,700
Stemline Therapeutics, Inc.*		114		1,650
Village Super Market, Inc. — Class A		52		1,635
Pendrell Corp.*		1,256		1,633
ServiceSource International, Inc.*		524		1,624
POZEN, Inc.*		210		1,621
Franklin Covey Co.*		84		1,618
Universal Technical Institute, Inc.		167		1,603
Repros Therapeutics, Inc.*		186		1,598
ChemoCentryx, Inc.*		211		1,593
K2M Group Holdings, Inc.*		72		1,588
Incorporated Research Holdings, Inc. — Class A*		48		1,571
Threshold Pharmaceuticals, Inc.*		377		1,531
CDI Corp.		108		1,517
Bellicum Pharmaceuticals, Inc.*		65		1,506
Derma Sciences, Inc.*		175		1,482
Weight Watchers International, Inc.*		212		1,482
Five Star Quality Care, Inc.*		331		1,470
Mirati Therapeutics, Inc.*		50		1,466
CytRx Corp.*		429		1,446
Electro Rent Corp.		127		1,440
Senomyx, Inc.*		326		1,438
Farmer Bros Co.*		57		1,411
SFX Entertainment, Inc.*		340		1,391
Revance Therapeutics, Inc.*		66		1,368
Inventure Foods, Inc.*		118		1,320
Nutraceutical International Corp.*		66		1,300
Zogenix, Inc.*		941		1,289
Galena Biopharma, Inc.*		909		1,264
Civitas Solutions, Inc.*		60		1,256
Smart & Final Stores, Inc.*		71		1,250
Inogen, Inc.*		39		1,248
Bridgepoint Education, Inc.*		127		1,226
Cellular Dynamics International, Inc.*		74		1,216
ITT Educational Services, Inc.*		179		1,215
Oxford Immunotec Global plc*		85		1,197
Collectors Universe, Inc.		53		1,196
Versartis, Inc.*		64		1,176
Intersect ENT, Inc.*		45		1,162
Craft Brew Alliance, Inc.*		84		1,146
Coherus Biosciences, Inc.*		37		1,131
Alico, Inc.		22		1,128
Addus HomeCare Corp.*		48		1,105
BioSpecifics Technologies Corp.*		28		1,096
National Research Corp. — Class A		76		1,094
Nature’s Sunshine Products, Inc.		83		1,089
Vital Therapies, Inc.*		43		1,075
Amphastar Pharmaceuticals, Inc.*		71		1,062
Flexion Therapeutics, Inc.*		46		1,036
Bio-Path Holdings, Inc.*		562		1,012
Alimera Sciences, Inc.*		201		1,007

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Information Services Group, Inc.		251	$	1,001
Neuralstem, Inc.*,1		527		1,001
Immune Design Corp.*		47		992
Fairway Group Holdings Corp.*		143		968
Synta Pharmaceuticals Corp.*		499		968
AAC Holdings, Inc.*		31		948
Sunesis Pharmaceuticals, Inc.*		381		933
Oncothyreon, Inc.*		565		921
Cenveo, Inc.*		426		912
Applied Genetic Technologies Corp.*		43		860
PRGX Global, Inc.*		213		856
Synutra International, Inc.*		133		851
Liberator Medical Holdings, Inc.		242		847
Alliance HealthCare Services, Inc.*		38		843
Hill International, Inc.*		230		826
Enzo Biochem, Inc.*		275		811
Tandem Diabetes Care, Inc.*		64		808
Liberty Tax, Inc.		29		807
NanoString Technologies, Inc.*		77		785
Performant Financial Corp.*		228		775
Lifeway Foods, Inc.*		36		770
Alliance One International, Inc.*		675		743
NanoViricides, Inc.*		328		738
AcelRx Pharmaceuticals, Inc.*		190		733
T2 Biosystems, Inc.*		46		714
Cytori Therapeutics, Inc.*,1		604		713
Akebia Therapeutics, Inc.*		60		667
Dicerna Pharmaceuticals, Inc.*		27		649
TransEnterix, Inc.*		220		645
Dermira, Inc.*		40		614
TriVascular Technologies, Inc.*		57		598
Neff Corp. — Class A*		55		580
Sientra, Inc.*		30		576
Kindred Biosciences, Inc.*		80		571
Pain Therapeutics, Inc.*		293		554
Achaogen, Inc.*		53		517
Ardelyx, Inc.*		38		497
NeoStem, Inc.*		192		488
Female Health Co.		167		473
Galectin Therapeutics, Inc.*		139		466
Marrone Bio Innovations, Inc.*		107		414
Cara Therapeutics, Inc.*		41		412
Ohr Pharmaceutical, Inc.*		161		409
Egalet Corp.*		30		388
Adamas Pharmaceuticals, Inc.*		22		385
Care.com, Inc.*		50		379
Veracyte, Inc.*		50		364
Vitae Pharmaceuticals, Inc.*		31		363
Genocea Biosciences, Inc.*		30		356
Actinium Pharmaceuticals, Inc.*		142		351
Tokai Pharmaceuticals, Inc.*		31		350
Loxo Oncology, Inc.*		28		349
Eleven Biotherapeutics, Inc.*		39		348
22nd Century Group, Inc.*		345		297
PhotoMedex, Inc.*		100		201
Regado Biosciences, Inc.*		119		145
Roka Bioscience, Inc.*		38		122
Total Consumer, Non-cyclical				3,020,872
CONSUMER, CYCLICAL - 9.0%
Office Depot, Inc.*		4,111		37,822
JetBlue Airways Corp.*		1,911		36,786
Brunswick Corp.		713		36,684
Jack in the Box, Inc.		308		29,544
Vail Resorts, Inc.		278		28,750
Dana Holding Corp.		1,302		27,550
Tenneco, Inc.*		469		26,930
Casey’s General Stores, Inc.		296		26,669
Buffalo Wild Wings, Inc.*		146		26,462
Wolverine World Wide, Inc.		780		26,090
American Eagle Outfitters, Inc.		1,495		25,535
Watsco, Inc.		198		24,888
Pool Corp.		348		24,276
Restoration Hardware Holdings, Inc.*		239		23,707
Cracker Barrel Old Country Store, Inc.		147		22,365
Life Time Fitness, Inc.*		314		22,281
Skechers U.S.A., Inc. — Class A*		301		21,645
Allegiant Travel Co. — Class A		106		20,383
Texas Roadhouse, Inc. — Class A		536		19,526
Men’s Wearhouse, Inc.		369		19,262
HNI Corp.		347		19,143
Cooper Tire & Rubber Co.		445		19,064
Cheesecake Factory, Inc.		385		18,992
Ryland Group, Inc.		361		17,594
Asbury Automotive Group, Inc.*		211		17,535
Lithia Motors, Inc. — Class A		176		17,496
HSN, Inc.		255		17,399
TRI Pointe Homes, Inc.*		1,127		17,389
Steven Madden Ltd.*		449		17,062
Marriott Vacations Worldwide Corp.		207		16,777
G-III Apparel Group Ltd.*		148		16,672
Pinnacle Entertainment, Inc.*		459		16,566
Group 1 Automotive, Inc.		187		16,144
Mobile Mini, Inc.		360		15,350
Five Below, Inc.*		418		14,869
ANN, Inc.*		361		14,812
Meritage Homes Corp.*		301		14,641
Papa John’s International, Inc.		236		14,587
Bloomin’ Brands, Inc.		594		14,452
Select Comfort Corp.*		418		14,408
DineEquity, Inc.		129		13,804
Gentherm, Inc.*		272		13,739
American Axle & Manufacturing Holdings, Inc.*		520		13,432
UniFirst Corp.		113		13,299
Sonic Corp.		418		13,251
Genesco, Inc.*		185		13,178
Burlington Stores, Inc.*		221		13,133

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Columbia Sportswear Co.		211	$	12,850
Herman Miller, Inc.		456		12,659
Fiesta Restaurant Group, Inc.*		206		12,566
Iconix Brand Group, Inc.*		370		12,458
United Stationers, Inc.		303		12,420
PriceSmart, Inc.		144		12,237
Steelcase, Inc. — Class A		636		12,046
Beacon Roofing Supply, Inc.*		380		11,894
Churchill Downs, Inc.		103		11,842
Core-Mark Holding Company, Inc.		178		11,449
La-Z-Boy, Inc.		403		11,328
G&K Services, Inc. — Class A		154		11,170
Buckle, Inc.		217		11,087
Brown Shoe Company, Inc.		336		11,021
Children’s Place, Inc.		170		10,912
Popeyes Louisiana Kitchen, Inc.*		182		10,887
Express, Inc.*		649		10,728
Interface, Inc. — Class A		510		10,598
Outerwall, Inc.		157		10,380
First Cash Financial Services, Inc.*		223		10,374
Dorman Products, Inc.*		208		10,348
Pier 1 Imports, Inc.		727		10,163
KB Home		644		10,059
Krispy Kreme Doughnuts, Inc.*		501		10,015
Standard Pacific Corp.*		1,109		9,981
Hibbett Sports, Inc.*		199		9,763
Vitamin Shoppe, Inc.*		237		9,762
Red Robin Gourmet Burgers, Inc.*		110		9,570
Meritor, Inc.*		752		9,483
Penn National Gaming, Inc.*		604		9,459
BJ’s Restaurants, Inc.*		181		9,131
Finish Line, Inc. — Class A		372		9,121
Belmond Ltd. — Class A*		742		9,112
Diamond Resorts International, Inc.*		272		9,093
ScanSource, Inc.*		220		8,943
Guess?, Inc.		473		8,793
Bob Evans Farms, Inc.		190		8,789
Knoll, Inc.		373		8,739
MDC Holdings, Inc.		300		8,550
Boyd Gaming Corp.*		597		8,477
Oxford Industries, Inc.		111		8,375
Cato Corp. — Class A		211		8,356
La Quinta Holdings, Inc.*		340		8,051
Mattress Firm Holding Corp.*		115		8,009
Interval Leisure Group, Inc.		305		7,994
Crocs, Inc.*		671		7,925
TiVo, Inc.*		731		7,756
Hawaiian Holdings, Inc.*		347		7,643
Denny’s Corp.*		670		7,638
Sonic Automotive, Inc. — Class A		306		7,619
Barnes & Noble, Inc.*		315		7,481
Wabash National Corp.*		530		7,473
iRobot Corp.*		227		7,407
Rush Enterprises, Inc. — Class A*		264		7,223
National CineMedia, Inc.		468		7,067
International Speedway Corp. — Class A		214		6,979
Universal Electronics, Inc.*		123		6,942
Libbey, Inc.		165		6,586
Lumber Liquidators Holdings, Inc.*		211		6,494
Standard Motor Products, Inc.		153		6,466
Conn’s, Inc.*,1		213		6,450
Zumiez, Inc.*		160		6,440
Carmike Cinemas, Inc.*		186		6,250
Cooper-Standard Holding, Inc.*		105		6,216
Wesco Aircraft Holdings, Inc.*		404		6,189
H&E Equipment Services, Inc.		241		6,023
Francesca’s Holdings Corp.*		325		5,785
SkyWest, Inc.		394		5,756
AMC Entertainment Holdings, Inc. — Class A		162		5,749
Callaway Golf Co.		596		5,680
Stage Stores, Inc.		244		5,592
Regis Corp.*		335		5,481
Biglari Holdings, Inc.*		13		5,383
Tuesday Morning Corp.*		334		5,377
Ethan Allen Interiors, Inc.		194		5,362
Steiner Leisure Ltd.*		112		5,309
Remy International, Inc.		236		5,242
Republic Airways Holdings, Inc.*		381		5,239
American Woodmark Corp.*		94		5,145
Cavco Industries, Inc.*		68		5,104
MarineMax, Inc.*		191		5,063
Cash America International, Inc.		217		5,056
Modine Manufacturing Co.*		367		4,943
Fred’s, Inc. — Class A		283		4,836
M/I Homes, Inc.*		189		4,506
Winnebago Industries, Inc.		210		4,465
DTS, Inc.*		131		4,463
Ruth’s Hospitality Group, Inc.		277		4,399
Tower International, Inc.*		159		4,229
Rentrak Corp.*		76		4,223
Caesars Entertainment Corp.*		393		4,138
Scientific Games Corp. — Class A*		390		4,083
Movado Group, Inc.		142		4,050
Unifi, Inc.*		112		4,042
Pep Boys-Manny Moe & Jack*		410		3,944
Douglas Dynamics, Inc.		172		3,928
Haverty Furniture Companies, Inc.		155		3,856
Motorcar Parts of America, Inc.*		138		3,835
Del Frisco’s Restaurant Group, Inc.*		182		3,667
Nautilus, Inc.*		240		3,665
Beazer Homes USA, Inc.*		206		3,650
EZCORP, Inc. — Class A*		395		3,606
Arctic Cat, Inc.		99		3,596
William Lyon Homes — Class A*		135		3,486
Superior Industries International, Inc.		182		3,445
Shoe Carnival, Inc.		116		3,415

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
ClubCorp Holdings, Inc.		169	$	3,272
America’s Car-Mart, Inc.*		60		3,255
Citi Trends, Inc.*		120		3,240
Hovnanian Enterprises, Inc. — Class A*		898		3,197
Titan International, Inc.		339		3,173
Daktronics, Inc.		289		3,124
Eros International plc*		171		2,987
Marcus Corp.		139		2,959
Federal-Mogul Holdings Corp.*		222		2,955
Chuy’s Holdings, Inc.*		127		2,861
Ruby Tuesday, Inc.*		473		2,843
Kimball International, Inc. — Class B		264		2,767
Vera Bradley, Inc.*		168		2,727
Stein Mart, Inc.		214		2,664
Kirkland’s, Inc.*		112		2,660
Tile Shop Holdings, Inc.*		215		2,604
PetMed Express, Inc.		156		2,577
Container Store Group, Inc.*		133		2,534
Isle of Capri Casinos, Inc.*		167		2,346
Carrols Restaurant Group, Inc.*		271		2,247
Bravo Brio Restaurant Group, Inc.*		148		2,174
WCI Communities, Inc.*		90		2,156
Perry Ellis International, Inc.*		93		2,154
Miller Industries, Inc.		87		2,132
Aeropostale, Inc.*		605		2,099
Speedway Motorsports, Inc.		89		2,025
NACCO Industries, Inc. — Class A		38		2,014
Strattec Security Corp.		27		1,994
Jamba, Inc.*		132		1,942
Quiksilver, Inc.*		1,045		1,933
PC Connection, Inc.		74		1,931
Big 5 Sporting Goods Corp.		142		1,884
Build-A-Bear Workshop, Inc. — Class A*		94		1,847
LGI Homes, Inc.*		110		1,833
Culp, Inc.		67		1,792
Reading International, Inc. — Class A*		133		1,789
Titan Machinery, Inc.*		133		1,776
Morgans Hotel Group Co.*		225		1,744
Skullcandy, Inc.*		154		1,740
Black Diamond, Inc.*		175		1,654
El Pollo Loco Holdings, Inc.*		63		1,613
Vince Holding Corp.*		86		1,595
Destination Maternity Corp.		105		1,581
Winmark Corp.		18		1,576
Potbelly Corp.*		115		1,576
Christopher & Banks Corp.*		280		1,557
Weyco Group, Inc.		51		1,525
Zoe’s Kitchen, Inc.*		45		1,498
Malibu Boats, Inc. — Class A*		64		1,494
Roundy’s, Inc.*		302		1,477
Installed Building Products, Inc.*		67		1,458
Norcraft Companies, Inc.*		57		1,457
Noodles & Co.*		83		1,448
Monarch Casino & Resort, Inc.*		73		1,397
Sequential Brands Group, Inc.*		130		1,391
AV Homes, Inc.*		87		1,389
Accuride Corp.*		296		1,379
VOXX International Corp. — Class A*		150		1,374
Houston Wire & Cable Co.		137		1,333
Destination XL Group, Inc.*		268		1,324
Escalade, Inc.		76		1,321
Fox Factory Holding Corp.*		86		1,319
Commercial Vehicle Group, Inc.*		204		1,314
Nathan’s Famous, Inc.		24		1,300
Spartan Motors, Inc.		265		1,285
Tilly’s, Inc. — Class A*		81		1,268
Johnson Outdoors, Inc. — Class A		38		1,258
West Marine, Inc.*		135		1,251
Lifetime Brands, Inc.		80		1,222
Fuel Systems Solutions, Inc.*		109		1,203
Flexsteel Industries, Inc.		37		1,158
LeapFrog Enterprises, Inc. — Class A*		502		1,094
Systemax, Inc.*		87		1,063
Pacific Sunwear of California, Inc.*		383		1,057
Dixie Group, Inc.*		115		1,041
Famous Dave’s of America, Inc.*		36		1,026
New Home Company, Inc.*		64		1,021
JAKKS Pacific, Inc.*		144		985
Intrawest Resorts Holdings, Inc.*		103		898
bebe stores, Inc.		241		875
Gaiam, Inc. — Class A*		115		838
Papa Murphy’s Holdings, Inc.*		45		816
Bon-Ton Stores, Inc.		112		780
Marine Products Corp.		81		694
Sears Hometown and Outlet Stores, Inc.*		89		687
Sportsman’s Warehouse Holdings, Inc.*		75		599
Century Communities, Inc.*		31		599
hhgregg, Inc.*		92		564
New York & Company, Inc.*		224		560
Empire Resorts, Inc.*		116		534
UCP, Inc. — Class A*		60		522
Ignite Restaurant Group, Inc.*		58		281
Speed Commerce, Inc.*		376		240
Total Consumer, Cyclical				1,895,765
INDUSTRIAL - 8.5%
Graphic Packaging Holding Co.		2,514		36,553
Cognex Corp.*		668		33,127
Belden, Inc.		335		31,343
HEICO Corp.		512		31,267
Teledyne Technologies, Inc.*		270		28,817
Esterline Technologies Corp.*		245		28,033
Curtiss-Wright Corp.		370		27,358
Woodward, Inc.		510		26,015
Generac Holdings, Inc.*		529		25,757
CLARCOR, Inc.		388		25,631
Berry Plastics Group, Inc.*		692		25,044

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
FEI Co.		325	$	24,810
Moog, Inc. — Class A*		317		23,791
EMCOR Group, Inc.		482		22,400
EnerSys		338		21,713
KapStone Paper and Packaging Corp.		651		21,379
Polypore International, Inc.*		347		20,438
XPO Logistics, Inc.*		404		18,370
Louisiana-Pacific Corp.*		1,086		17,930
Littelfuse, Inc.		174		17,294
Swift Transportation Co. — Class A*		654		17,018
Barnes Group, Inc.		417		16,884
Mueller Industries, Inc.		436		15,753
Rexnord Corp.*		579		15,454
Sanmina Corp.*		633		15,313
Masonite International Corp.*		227		15,267
Hillenbrand, Inc.		483		14,910
Knight Transportation, Inc.		460		14,835
Universal Display Corp.*		312		14,586
Applied Industrial Technologies, Inc.		321		14,554
Trex Company, Inc.*		258		14,068
Franklin Electric Company, Inc.		368		14,036
Matson, Inc.		330		13,913
Methode Electronics, Inc.		292		13,736
RBC Bearings, Inc.		179		13,701
Forward Air Corp.		240		13,032
Dycom Industries, Inc.*		261		12,747
Coherent, Inc.*		192		12,472
Scorpio Tankers, Inc.		1,315		12,388
Greenbrier Companies, Inc.		212		12,296
Proto Labs, Inc.*		174		12,180
Tetra Tech, Inc.		507		12,178
Watts Water Technologies, Inc. — Class A		219		12,052
Mueller Water Products, Inc. — Class A		1,220		12,017
Simpson Manufacturing Company, Inc.		318		11,884
EnPro Industries, Inc.		175		11,541
Rogers Corp.*		140		11,509
OSI Systems, Inc.*		154		11,436
Boise Cascade Co.*		303		11,350
Actuant Corp. — Class A		478		11,348
MSA Safety, Inc.		227		11,322
Drew Industries, Inc.		182		11,200
Hub Group, Inc. — Class A*		283		11,119
Itron, Inc.*		302		11,026
Werner Enterprises, Inc.		344		10,805
Harsco Corp.		621		10,718
TriMas Corp.*		348		10,715
Astronics Corp.*		145		10,687
TAL International Group, Inc.		262		10,671
GenCorp, Inc.*		460		10,667
Plexus Corp.*		261		10,641
Granite Construction, Inc.		301		10,577
Brady Corp. — Class A		369		10,439
Headwaters, Inc.*		565		10,362
TASER International, Inc.*		415		10,006
Benchmark Electronics, Inc.*		415		9,972
Heartland Express, Inc.		418		9,932
MasTec, Inc.*		503		9,708
Apogee Enterprises, Inc.		224		9,677
AAR Corp.		304		9,333
Tennant Co.		142		9,283
AZZ, Inc.		197		9,178
Fluidigm Corp.*		216		9,094
Kaman Corp.		211		8,953
Exponent, Inc.		100		8,890
UTI Worldwide, Inc.*		704		8,659
Albany International Corp. — Class A		217		8,626
Universal Forest Products, Inc.		155		8,599
RTI International Metals, Inc.*		236		8,475
Saia, Inc.*		190		8,417
Atlas Air Worldwide Holdings, Inc.*		194		8,346
US Ecology, Inc.		166		8,295
Chart Industries, Inc.*		235		8,243
Cubic Corp.		159		8,231
FARO Technologies, Inc.*		132		8,201
Nordic American Tankers Ltd.		685		8,158
Advanced Energy Industries, Inc.*		316		8,109
Standex International Corp.		98		8,049
John Bean Technologies Corp.		224		8,001
AAON, Inc.		325		7,972
ESCO Technologies, Inc.		204		7,952
Federal Signal Corp.		484		7,642
ArcBest Corp.		200		7,578
Sturm Ruger & Company, Inc.		150		7,445
CIRCOR International, Inc.		136		7,439
II-VI, Inc.*		402		7,421
Briggs & Stratton Corp.		360		7,394
Lindsay Corp.		94		7,168
Sun Hydraulics Corp.		172		7,114
Ship Finance International Ltd.		453		6,704
Tutor Perini Corp.*		287		6,701
Badger Meter, Inc.		111		6,653
General Cable Corp.		375		6,461
GasLog Ltd.		324		6,292
Astec Industries, Inc.		146		6,260
Nortek, Inc.*		70		6,178
LSB Industries, Inc.*		149		6,158
Comfort Systems USA, Inc.		290		6,102
Encore Wire Corp.		160		6,061
Newport Corp.*		306		5,832
Quanex Building Products Corp.		294		5,804
Hyster-Yale Materials Handling, Inc.		79		5,790
Altra Industrial Motion Corp.		208		5,749
Raven Industries, Inc.		280		5,729
Smith & Wesson Holding Corp.*		437		5,563
Roadrunner Transportation Systems, Inc.*		215		5,433
Griffon Corp.		306		5,334

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Aegion Corp. — Class A*		292	$	5,271
Hornbeck Offshore Services, Inc.*		279		5,248
Rofin-Sinar Technologies, Inc.*		216		5,234
MYR Group, Inc.*		164		5,140
Fabrinet*		270		5,127
Textainer Group Holdings Ltd.		166		4,978
DHT Holdings, Inc.		711		4,963
Echo Global Logistics, Inc.*		181		4,934
Blount International, Inc.*		381		4,907
CTS Corp.		260		4,677
Kadant, Inc.		86		4,524
Celadon Group, Inc.		161		4,382
DXP Enterprises, Inc.*		99		4,365
Gorman-Rupp Co.		145		4,343
YRC Worldwide, Inc.*		241		4,328
Marten Transport Ltd.		183		4,246
Haynes International, Inc.		95		4,238
Lydall, Inc.*		131		4,155
Columbus McKinnon Corp.		153		4,122
PGT, Inc.*		364		4,068
Aerovironment, Inc.*		147		3,897
Gibraltar Industries, Inc.*		237		3,889
Patrick Industries, Inc.*		62		3,861
Tredegar Corp.		191		3,841
LB Foster Co. — Class A		79		3,751
TTM Technologies, Inc.*		416		3,748
GP Strategies Corp.*		101		3,737
NCI Building Systems, Inc.*		216		3,732
US Concrete, Inc.*		109		3,693
Air Transport Services Group, Inc.*		400		3,688
Myers Industries, Inc.		210		3,681
American Railcar Industries, Inc.		72		3,581
Teekay Tankers Ltd. — Class A		615		3,530
Park-Ohio Holdings Corp.		67		3,529
Advanced Drainage Systems, Inc.		117		3,503
GrafTech International Ltd.*		900		3,501
Argan, Inc.		96		3,472
Alamo Group, Inc.		55		3,472
Park Electrochemical Corp.		161		3,471
Checkpoint Systems, Inc.		320		3,462
NN, Inc.		137		3,436
Era Group, Inc.*		157		3,272
GSI Group, Inc.*		234		3,117
CAI International, Inc.*		126		3,096
Insteel Industries, Inc.		141		3,050
American Science & Engineering, Inc.		62		3,029
FreightCar America, Inc.		92		2,892
Kimball Electronics, Inc.*		198		2,800
Knightsbridge Shipping Ltd.		532		2,660
VSE Corp.		32		2,620
NVE Corp.		37		2,550
Navios Maritime Holdings, Inc.		610		2,550
Global Brass & Copper Holdings, Inc.		165		2,549
Scorpio Bulkers, Inc.*		1,036		2,455
Stoneridge, Inc.*		217		2,450
Mistras Group, Inc.*		126		2,427
Powell Industries, Inc.		71		2,398
Builders FirstSource, Inc.*		352		2,348
National Presto Industries, Inc.		37		2,345
Furmanite Corp.*		289		2,280
Chase Corp.		52		2,274
PowerSecure International, Inc.*		172		2,264
Navios Maritime Acquisition Corp.		632		2,237
Power Solutions International, Inc.*		34		2,186
Quality Distribution, Inc.*		211		2,180
Ducommun, Inc.*		83		2,150
Ply Gem Holdings, Inc.*		165		2,145
Continental Building Products, Inc.*		90		2,033
Stock Building Supply Holdings, Inc.*		112		2,023
Vicor Corp.*		127		1,930
Sparton Corp.*		78		1,911
Kratos Defense & Security Solutions, Inc.*		344		1,902
Orion Marine Group, Inc.*		211		1,869
FRP Holdings, Inc.*		51		1,856
Graham Corp.		77		1,846
Trinseo S.A.*		88		1,742
Global Power Equipment Group, Inc.		132		1,742
CECO Environmental Corp.		162		1,719
AEP Industries, Inc.*		31		1,706
Northwest Pipe Co.*		73		1,675
Casella Waste Systems, Inc. — Class A*		300		1,650
Hurco Companies, Inc.		50		1,647
Capstone Turbine Corp.*,1		2,528		1,643
Applied Optoelectronics, Inc.*		113		1,569
Vishay Precision Group, Inc.*		98		1,561
Mesa Laboratories, Inc.		21		1,516
Bel Fuse, Inc. — Class B		77		1,465
KEMET Corp.*		350		1,449
Ardmore Shipping Corp.		139		1,400
Dynamic Materials Corp.		107		1,366
Xerium Technologies, Inc.*		84		1,362
LSI Industries, Inc.		166		1,353
USA Truck, Inc.*		48		1,329
PAM Transportation Services, Inc.*		23		1,317
Nordic American Offshore Ltd.		141		1,292
Handy & Harman Ltd.*		31		1,273
Multi-Fineline Electronix, Inc.*		69		1,261
Universal Truckload Services, Inc.		50		1,259
Electro Scientific Industries, Inc.		189		1,168
Frontline Ltd.*		510		1,142
Intevac, Inc.*		184		1,130
Ampco-Pittsburgh Corp.		64		1,117
Twin Disc, Inc.		63		1,113
Safe Bulkers, Inc.		299		1,073
Control4 Corp.*		88		1,054
UFP Technologies, Inc.*		46		1,048

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Manitex International, Inc.*		106	$	1,031
LMI Aerospace, Inc.*		82		1,001
Heritage-Crystal Clean, Inc.*		82		959
Olympic Steel, Inc.		70		942
CUI Global, Inc.*		159		932
Energy Recovery, Inc.*		296		767
Layne Christensen Co.*		153		767
Dorian LPG Ltd.*		56		730
Viasystems Group, Inc.*		40		700
General Finance Corp.*		85		686
Sterling Construction Company, Inc.*		145		655
Imprivata, Inc.*		45		630
Astronics Corp. — Class B*		8		585
Baltic Trading Ltd.		377		562
Omega Flex, Inc.		22		553
International Shipholding Corp.		44		533
AM Castle & Co.*		144		526
SIFCO Industries, Inc.		19		414
NL Industries, Inc.*		52		403
CHC Group Ltd.*		257		342
Aspen Aerogels, Inc.*		43		313
Revolution Lighting Technologies, Inc.*		275		305
Ultrapetrol Bahamas Ltd.*		164		238
Erickson, Inc.*		46		199
Quest Resource Holding Corp.*		107		135
ARC Group Worldwide, Inc.*		23		123
TCP International Holdings Ltd.*		55		101
Turtle Beach Corp.*		54		100
Total Industrial				1,776,633
TECHNOLOGY - 7.2%
Ultimate Software Group, Inc.*		218		37,049
MAXIMUS, Inc.		520		34,715
Cypress Semiconductor Corp.		2,353		33,202
SS&C Technologies Holdings, Inc.		524		32,644
Tyler Technologies, Inc.*		254		30,614
Manhattan Associates, Inc.*		583		29,506
Cavium, Inc.*		407		28,824
Verint Systems, Inc.*		458		28,364
Guidewire Software, Inc.*		522		27,462
Aspen Technology, Inc.*		708		27,251
Microsemi Corp.*		730		25,842
Synaptics, Inc.*		277		22,521
Fair Isaac Corp.		247		21,914
Qlik Technologies, Inc.*		690		21,480
Integrated Device Technology, Inc.*		1,023		20,480
Medidata Solutions, Inc.*		417		20,450
ACI Worldwide, Inc.*		875		18,953
Mentor Graphics Corp.		745		17,902
Convergys Corp.		781		17,862
Advent Software, Inc.		396		17,468
Silicon Laboratories, Inc.*		334		16,957
SYNNEX Corp.		219		16,918
Blackbaud, Inc.		356		16,867
Proofpoint, Inc.*		284		16,819
Ambarella, Inc.*		222		16,808
EPAM Systems, Inc.*		274		16,793
Tessera Technologies, Inc.		411		16,556
Science Applications International Corp.		322		16,535
Take-Two Interactive Software, Inc.*		642		16,342
Fairchild Semiconductor International, Inc. — Class A*		897		16,307
CACI International, Inc. — Class A*		181		16,276
Dealertrack Technologies, Inc.*		413		15,908
CommVault Systems, Inc.*		364		15,907
Cirrus Logic, Inc.*		478		15,898
Monolithic Power Systems, Inc.		297		15,637
Electronics for Imaging, Inc.*		359		14,988
Envestnet, Inc.*		262		14,693
Entegris, Inc.*		1,071		14,662
Intersil Corp. — Class A		990		14,177
Demandware, Inc.*		231		14,068
MKS Instruments, Inc.		412		13,930
Semtech Corp.*		517		13,775
FleetMatics Group plc*		287		12,872
Synchronoss Technologies, Inc.*		271		12,862
PMC-Sierra, Inc.*		1,333		12,370
Syntel, Inc.*		239		12,363
NetScout Systems, Inc.*		280		12,278
Power Integrations, Inc.		234		12,187
IGATE Corp.*		283		12,073
MicroStrategy, Inc. — Class A*		70		11,843
Cornerstone OnDemand, Inc.*		409		11,816
OmniVision Technologies, Inc.*		432		11,392
Rambus, Inc.*		875		11,003
Acxiom Corp.*		592		10,946
Progress Software Corp.*		395		10,732
Monotype Imaging Holdings, Inc.		304		9,923
Infoblox, Inc.*		415		9,906
Omnicell, Inc.*		282		9,898
QLogic Corp.*		671		9,891
Veeco Instruments, Inc.*		308		9,409
ExlService Holdings, Inc.*		251		9,337
Cabot Microelectronics Corp.*		186		9,294
Constant Contact, Inc.*		242		9,247
Unisys Corp.*		394		9,145
Insight Enterprises, Inc.*		315		8,984
MedAssets, Inc.*		469		8,827
Super Micro Computer, Inc.*		265		8,800
Cray, Inc.*		313		8,789
MTS Systems Corp.		116		8,775
Imperva, Inc.*		197		8,412
SPS Commerce, Inc.*		125		8,388
InvenSense, Inc. — Class A*		546		8,304
Bottomline Technologies de, Inc.*		303		8,293
Virtusa Corp.*		200		8,276
RealPage, Inc.*		399		8,036

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Diodes, Inc.*		280	$	7,997
CSG Systems International, Inc.		262		7,962
Sykes Enterprises, Inc.*		303		7,530
BroadSoft, Inc.*		220		7,361
Qualys, Inc.*		155		7,204
Ebix, Inc.		236		7,170
ManTech International Corp. — Class A		185		6,279
Kofax Ltd.*		571		6,252
Quality Systems, Inc.		384		6,136
Brooks Automation, Inc.		513		5,966
Pegasystems, Inc.		273		5,938
AVG Technologies N.V.*		268		5,802
Amkor Technology, Inc.*		656		5,796
Lattice Semiconductor Corp.*		905		5,738
Interactive Intelligence Group, Inc.*		129		5,312
Micrel, Inc.		343		5,172
inContact, Inc.*		467		5,090
Actua Corp.*		316		4,895
Callidus Software, Inc.*		375		4,755
Computer Programs & Systems, Inc.		86		4,666
PROS Holdings, Inc.*		181		4,473
Emulex Corp.*		546		4,352
Photronics, Inc.*		509		4,327
Inphi Corp.*		241		4,297
Epiq Systems, Inc.		239		4,285
LivePerson, Inc.*		417		4,268
PDF Solutions, Inc.*		235		4,211
Integrated Silicon Solution, Inc.		231		4,133
Engility Holdings, Inc.		136		4,085
Tangoe, Inc.*		296		4,085
Mercury Systems, Inc.*		256		3,981
RealD, Inc.*		309		3,952
Cvent, Inc.*		138		3,870
FormFactor, Inc.*		427		3,787
Ultratech, Inc.*		216		3,745
Xcerra Corp.*		409		3,636
M/A-COM Technology Solutions Holdings, Inc.*		97		3,614
SciQuest, Inc.*		211		3,572
Glu Mobile, Inc.*		691		3,462
CEVA, Inc.*		162		3,454
TeleTech Holdings, Inc.		135		3,436
Luxoft Holding, Inc.*		60		3,104
Nanometrics, Inc.*		184		3,095
Applied Micro Circuits Corp.*		600		3,060
Exar Corp.*		304		3,055
Rally Software Development Corp.*		192		3,012
Rudolph Technologies, Inc.*		256		2,821
Quantum Corp.*		1,680		2,688
Pericom Semiconductor Corp.		171		2,645
Eastman Kodak Co.*		136		2,583
Ciber, Inc.*		598		2,464
Dot Hill Systems Corp.*		462		2,449
Merge Healthcare, Inc.*		544		2,432
Silver Spring Networks, Inc.*		269		2,405
Barracuda Networks, Inc.*		61		2,347
Violin Memory, Inc.*		617		2,326
IXYS Corp.		188		2,316
Silicon Graphics International Corp.*		266		2,312
Vitesse Semiconductor Corp.*		424		2,251
Cohu, Inc.		194		2,122
KEYW Holding Corp.*,1		251		2,066
DSP Group, Inc.*		171		2,049
Axcelis Technologies, Inc.*		855		2,035
Entropic Communications, Inc.*		684		2,025
2U, Inc.*		79		2,021
Immersion Corp.*		218		2,001
Seachange International, Inc.*		253		1,986
Carbonite, Inc.*		137		1,959
Digi International, Inc.*		195		1,946
American Software, Inc. — Class A		190		1,942
Maxwell Technologies, Inc.*		230		1,854
Datalink Corp.*		152		1,830
InnerWorkings, Inc.*		270		1,814
Brightcove, Inc.*		247		1,811
Kopin Corp.*		507		1,785
Model N, Inc.*		149		1,782
MaxLinear, Inc. — Class A*		214		1,740
Vocera Communications, Inc.*		174		1,726
Jive Software, Inc.*		327		1,678
Ultra Clean Holdings, Inc.*		226		1,616
Paycom Software, Inc.*		50		1,603
Nimble Storage, Inc.*		71		1,584
Mavenir Systems, Inc.*		89		1,579
Sapiens International Corporation N.V.*		189		1,550
Alpha & Omega Semiconductor Ltd.*		167		1,488
Benefitfocus, Inc.*		37		1,361
Cascade Microtech, Inc.*		98		1,331
QAD, Inc. — Class A		53		1,283
Rosetta Stone, Inc.*		164		1,248
HubSpot, Inc.*		31		1,237
Digimarc Corp.		54		1,185
Agilysys, Inc.*		112		1,102
Globant S.A.*		52		1,095
Varonis Systems, Inc.*		41		1,052
ExOne Co.*		76		1,037
Park City Group, Inc.*		73		1,006
MobileIron, Inc.*		94		870
Computer Task Group, Inc.		116		848
QuickLogic Corp.*		422		814
Rubicon Technology, Inc.*		200		788
Castlight Health, Inc. — Class B*		99		768
Guidance Software, Inc.*		138		747
Everyday Health, Inc.*		58		746
Amber Road, Inc.*		68		629
OPOWER, Inc.*		60		608
Five9, Inc.*		93		517

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Audience, Inc.*		107	$	486
A10 Networks, Inc.*		97		420
Total Technology				1,518,176
COMMUNICATIONS - 4.4%
Qorvo, Inc.*		1,102		87,830
j2 Global, Inc.		366		24,039
Aruba Networks, Inc.*		821		20,106
DigitalGlobe, Inc.*		581		19,795
Houghton Mifflin Harcourt Co.*		838		19,676
Time, Inc.		849		19,051
ViaSat, Inc.*		318		18,956
Infinera Corp.*		942		18,529
Plantronics, Inc.		327		17,315
Finisar Corp.*		794		16,944
Sinclair Broadcast Group, Inc. — Class A		528		16,585
Anixter International, Inc.*		209		15,911
Ciena Corp.*		808		15,602
Meredith Corp.		276		15,392
New York Times Co. — Class A		1,064		14,640
InterDigital, Inc.		285		14,461
Polycom, Inc.*		1,063		14,244
comScore, Inc.*		267		13,670
Nexstar Broadcasting Group, Inc. — Class A		236		13,504
Shutterfly, Inc.*		296		13,390
WebMD Health Corp. — Class A*		298		13,063
Cogent Communications Holdings, Inc.		359		12,684
NeuStar, Inc. — Class A*,1		430		10,587
LogMeIn, Inc.*		187		10,470
West Corp.		296		9,984
Media General, Inc.*		601		9,910
MDC Partners, Inc. — Class A		326		9,242
NETGEAR, Inc.*		280		9,206
NIC, Inc.		502		8,870
Scholastic Corp.		204		8,352
Gogo, Inc.*,1		430		8,196
New Media Investment Group, Inc.		342		8,184
ADTRAN, Inc.		434		8,103
Shutterstock, Inc.*		117		8,034
Consolidated Communications Holdings, Inc.		388		7,914
Web.com Group, Inc.*		399		7,561
Stamps.com, Inc.*		109		7,335
Globalstar, Inc.*,1		2,103		7,003
Loral Space & Communications, Inc.*		100		6,844
EW Scripps Co. — Class A*		240		6,826
Ubiquiti Networks, Inc.		229		6,767
Vonage Holdings Corp.*		1,340		6,579
Ruckus Wireless, Inc.*		499		6,422
Iridium Communications, Inc.*		620		6,020
Bankrate, Inc.*		516		5,851
Shenandoah Telecommunications Co.		186		5,796
8x8, Inc.*		681		5,720
Cincinnati Bell, Inc.*		1,607		5,673
Perficient, Inc.*		266		5,504
Harmonic, Inc.*		726		5,380
Ixia*		443		5,374
Gray Television, Inc.*		382		5,279
Journal Communications, Inc. — Class A*		345		5,113
Marketo, Inc.*		197		5,047
Atlantic Tele-Network, Inc.		72		4,984
VASCO Data Security International, Inc.*		227		4,889
Orbitz Worldwide, Inc.*		397		4,629
Lands’ End, Inc.*		127		4,557
Chegg, Inc.*		566		4,500
CalAmp Corp.*		276		4,468
Blucora, Inc.*		324		4,426
Endurance International Group Holdings, Inc.*		232		4,422
FTD Companies, Inc.*		146		4,371
General Communication, Inc. — Class A*		277		4,366
Internap Corp.*		418		4,276
RetailMeNot, Inc.*		237		4,268
Global Eagle Entertainment, Inc.*		309		4,113
HealthStream, Inc.*		163		4,108
Gigamon, Inc.*		186		3,951
Inteliquent, Inc.		250		3,935
Textura Corp.*		144		3,914
XO Group, Inc.*		207		3,658
Premiere Global Services, Inc.*		371		3,547
EarthLink Holdings Corp.		787		3,494
ePlus, Inc.*		40		3,478
Comverse, Inc.*		173		3,408
Comtech Telecommunications Corp.		117		3,387
RingCentral, Inc. — Class A*		216		3,311
ShoreTel, Inc.*		481		3,280
World Wrestling Entertainment, Inc. — Class A		229		3,208
Spok Holdings, Inc.		167		3,201
Intralinks Holdings, Inc.*		302		3,123
GrubHub, Inc.*		68		3,087
Cumulus Media, Inc. — Class A*		1,241		3,065
Sonus Networks, Inc.*		378		2,979
Blue Nile, Inc.*		93		2,961
Harte-Hanks, Inc.		379		2,956
Safeguard Scientifics, Inc.*		159		2,875
Lionbridge Technologies, Inc.*		497		2,843
Entravision Communications Corp. — Class A		446		2,823
FairPoint Communications, Inc.*		160		2,816
Calix, Inc.*		319		2,676
Dice Holdings, Inc.*		298		2,658
RigNet, Inc.*		92		2,630
Intelsat S.A.*		211		2,532
ORBCOMM, Inc.*		422		2,519
Black Box Corp.		120		2,512
Extreme Networks, Inc.*		742		2,345
GTT Communications, Inc.*		124		2,341
Entercom Communications Corp. — Class A*		190		2,309
IDT Corp. — Class B		129		2,290
1-800-Flowers.com, Inc. — Class A*		191		2,260

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Lumos Networks Corp.		145	$	2,213
EVINE Live, Inc.*		328		2,201
Bazaarvoice, Inc.*		385		2,175
Hawaiian Telcom Holdco, Inc.*		81		2,157
Overstock.com, Inc.*		89		2,156
Wayfair, Inc. — Class A*		67		2,152
Wix.com Ltd.*		106		2,031
VirnetX Holding Corp.*		326		1,985
Zendesk, Inc.*		87		1,974
Angie’s List, Inc.*		335		1,966
Liquidity Services, Inc.*		189		1,867
KVH Industries, Inc.*		122		1,845
Zix Corp.*		456		1,792
Limelight Networks, Inc.*		464		1,684
Alliance Fiber Optic Products, Inc.		96		1,672
Telenav, Inc.*		210		1,663
Reis, Inc.		63		1,615
Q2 Holdings, Inc.*		76		1,607
QuinStreet, Inc.*		267		1,589
ChannelAdvisor Corp.*		160		1,550
Martha Stewart Living Omnimedia, Inc. — Class A*		230		1,495
Procera Networks, Inc.*		159		1,493
TechTarget, Inc.*		128		1,476
Daily Journal Corp.*		8		1,466
Central European Media Enterprises Ltd. — Class A*		542		1,442
Lee Enterprises, Inc.*		450		1,427
Oclaro, Inc.*		717		1,420
TeleCommunication Systems, Inc. — Class A*		370		1,417
Boingo Wireless, Inc.*		179		1,350
Rocket Fuel, Inc.*		142		1,306
Clearfield, Inc.*		87		1,289
Marin Software, Inc.*		203		1,277
Numerex Corp. — Class A*		112		1,277
Saga Communications, Inc. — Class A		28		1,247
Sizmek, Inc.*		170		1,234
AH Belo Corp. — Class A		145		1,193
RealNetworks, Inc.*		177		1,191
Rubicon Project, Inc.*		61		1,093
ModusLink Global Solutions, Inc.*		283		1,090
Tessco Technologies, Inc.		44		1,085
Coupons.com, Inc.*		92		1,080
TrueCar, Inc.*		60		1,071
Crown Media Holdings, Inc. — Class A*		267		1,068
Marchex, Inc. — Class B		253		1,032
Cinedigm Corp. — Class A*		586		949
magicJack VocalTec Ltd.*		138		944
Townsquare Media, Inc. — Class A*		68		874
McClatchy Co. — Class A*		470		865
Cyan, Inc.*		212		846
Preformed Line Products Co.		20		843
Millennial Media, Inc.*		580		841
Hemisphere Media Group, Inc.*		64		810
YuMe, Inc.*		140		727
Global Sources Ltd.*		117		686
Rightside Group Ltd.*		67		680
Tremor Video, Inc.*		273		639
NTELOS Holdings Corp.		130		624
ParkerVision, Inc.*,1		741		615
Covisint Corp.*		294		597
Radio One, Inc. — Class D*		178		548
Travelzoo, Inc.*		56		540
Salem Media Group, Inc. — Class A		83		511
Yodlee, Inc.*		37		498
Dex Media, Inc.*		114		478
Unwired Planet, Inc.*		754		431
Demand Media, Inc.*		67		383
TubeMogul, Inc.*		27		373
Vringo, Inc.*		550		358
Aerohive Networks, Inc.*		73		326
ReachLocal, Inc.*		101		294
Borderfree, Inc.*		46		276
Total Communications				918,251
UTILITIES - 2.3%
Dynegy, Inc.*		944		29,669
Cleco Corp.		465		25,352
IDACORP, Inc.		388		24,394
WGL Holdings, Inc.		400		22,560
UIL Holdings Corp.		435		22,368
Portland General Electric Co.		601		22,291
Piedmont Natural Gas Company, Inc.		600		22,146
Southwest Gas Corp.		358		20,825
New Jersey Resources Corp.		648		20,127
NorthWestern Corp.		361		19,418
ALLETE, Inc.		342		18,044
PNM Resources, Inc.		612		17,870
Black Hills Corp.		343		17,301
ONE Gas, Inc.		400		17,292
Laclede Group, Inc.		332		17,005
Avista Corp.		463		15,825
South Jersey Industries, Inc.		254		13,787
El Paso Electric Co.		310		11,978
American States Water Co.		298		11,887
MGE Energy, Inc.		267		11,833
Northwest Natural Gas Co.		209		10,022
Ormat Technologies, Inc.		253		9,619
NRG Yield, Inc. — Class A		183		9,284
Otter Tail Corp.		281		9,040
California Water Service Group		368		9,020
Empire District Electric Co.		332		8,240
Abengoa Yield plc		220		7,432
Chesapeake Utilities Corp.		112		5,668
SJW Corp.		120		3,709
Unitil Corp.		106		3,686
Connecticut Water Service, Inc.		84		3,052

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
PICO Holdings, Inc.*		175	$	2,837
Middlesex Water Co.		123		2,799
Atlantic Power Corp.		928		2,608
York Water Co.		99		2,404
EnerNOC, Inc.*		207		2,360
Artesian Resources Corp. — Class A		59		1,262
Ameresco, Inc. — Class A*		153		1,132
Spark Energy, Inc. — Class A		23		339
Total Utilities				476,485
BASIC MATERIALS - 2.1%
Sensient Technologies Corp.		381		26,242
PolyOne Corp.		682		25,473
Axiall Corp.		538		25,254
Olin Corp.		607		19,448
Minerals Technologies, Inc.		265		19,372
HB Fuller Co.		384		16,462
Chemtura Corp.*		557		15,201
US Silica Holdings, Inc.		414		14,743
Commercial Metals Co.		905		14,651
Balchem Corp.		234		12,959
Stillwater Mining Co.*		921		11,899
A. Schulman, Inc.		225		10,845
Schweitzer-Mauduit International, Inc.		234		10,792
Kaiser Aluminum Corp.		139		10,687
Worthington Industries, Inc.		396		10,538
Clearwater Paper Corp.*		157		10,252
Tronox Ltd. — Class A		473		9,616
Innophos Holdings, Inc.		169		9,525
Globe Specialty Metals, Inc.		491		9,290
PH Glatfelter Co.		331		9,112
Innospec, Inc.		188		8,721
Resolute Forest Products, Inc.*		502		8,660
Quaker Chemical Corp.		101		8,650
Calgon Carbon Corp.		410		8,639
Hecla Mining Co.		2,815		8,389
Neenah Paper, Inc.		128		8,005
OM Group, Inc.		247		7,417
Ferro Corp.*		552		6,928
Stepan Co.		148		6,166
Materion Corp.		159		6,110
AK Steel Holding Corp.*		1,356		6,061
Deltic Timber Corp.		85		5,631
Century Aluminum Co.*		396		5,465
Horsehead Holding Corp.*		429		5,431
Kraton Performance Polymers, Inc.*		252		5,093
Intrepid Potash, Inc.*		429		4,955
Aceto Corp.		221		4,862
Coeur Mining, Inc.*		796		3,749
Schnitzer Steel Industries, Inc. — Class A		203		3,220
OMNOVA Solutions, Inc.*		365		3,113
Koppers Holdings, Inc.		158		3,109
Wausau Paper Corp.		324		3,088
Hawkins, Inc.		81		3,077
Zep, Inc.		177		3,014
Landec Corp.*		206		2,874
American Vanguard Corp.		221		2,347
Kronos Worldwide, Inc.		161		2,037
KMG Chemicals, Inc.		74		1,978
Rentech, Inc.*		1,744		1,953
Orchids Paper Products Co.		62		1,672
Ring Energy, Inc.*		155		1,646
Universal Stainless & Alloy Products, Inc.*		54		1,416
Oil-Dri Corporation of America		37		1,245
Noranda Aluminum Holding Corp.		341		1,013
United States Lime & Minerals, Inc.		15		968
Gold Resource Corp.		288		919
Shiloh Industries, Inc.*		64		899
Molycorp, Inc.*,1		1,394		537
Ryerson Holding Corp.*		84		535
Total Basic Materials				451,953
ENERGY - 2.1%
SemGroup Corp. — Class A		328		26,680
Diamondback Energy, Inc.*		338		25,973
Carrizo Oil & Gas, Inc.*		393		19,512
Western Refining, Inc.		379		18,719
Delek US Holdings, Inc.		457		18,166
PDC Energy, Inc.*		306		16,536
Exterran Holdings, Inc.		451		15,140
Bristow Group, Inc.		274		14,919
Matador Resources Co.*		564		12,363
Helix Energy Solutions Group, Inc.*		812		12,148
SEACOR Holdings, Inc.*		142		9,893
Rosetta Resources, Inc.*		566		9,633
Forum Energy Technologies, Inc.*		459		8,996
Pattern Energy Group, Inc.		309		8,751
Green Plains, Inc.		288		8,222
TerraForm Power, Inc. — Class A		218		7,959
SunCoke Energy, Inc.		519		7,754
Bonanza Creek Energy, Inc.*		302		7,447
Synergy Resources Corp.*		621		7,359
McDermott International, Inc.*		1,826		7,012
Parsley Energy, Inc. — Class A*		409		6,536
Stone Energy Corp.*		432		6,342
Flotek Industries, Inc.*		414		6,102
Newpark Resources, Inc.*		653		5,949
Thermon Group Holdings, Inc.*		245		5,897
Sanchez Energy Corp.*		392		5,100
Primoris Services Corp.		292		5,019
CARBO Ceramics, Inc.		152		4,638
RSP Permian, Inc.*		180		4,534
Magnum Hunter Resources Corp.*,1		1,522		4,064
C&J Energy Services Ltd.*		355		3,951
TETRA Technologies, Inc.*		607		3,751
Northern Oil and Gas, Inc.*		470		3,624
Matrix Service Co.*		203		3,565
Alon USA Energy, Inc.		202		3,347

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Plug Power, Inc.*		1,285	$	3,328
Penn Virginia Corp.*,1		504		3,266
Parker Drilling Co.*		931		3,248
Callon Petroleum Co.*		426		3,182
Bill Barrett Corp.*		383		3,179
Westmoreland Coal Co.*		115		3,076
Halcon Resources Corp.*,1		1,997		3,075
Tesco Corp.		267		3,036
Contango Oil & Gas Co.*		134		2,948
REX American Resources Corp.*		48		2,919
PHI, Inc.*		97		2,918
Triangle Petroleum Corp.*,1		574		2,887
Clean Energy Fuels Corp.*		537		2,865
Gulfmark Offshore, Inc. — Class A		210		2,738
Cloud Peak Energy, Inc.*		469		2,730
Energy XXI Ltd.1		721		2,624
Pioneer Energy Services Corp.*		483		2,618
Renewable Energy Group, Inc.*		266		2,453
Abraxas Petroleum Corp.*		711		2,311
Clayton Williams Energy, Inc.*		45		2,278
FuelCell Energy, Inc.*		1,794		2,243
ION Geophysical Corp.*		993		2,155
EXCO Resources, Inc.		1,168		2,137
Panhandle Oil and Gas, Inc. — Class A		107		2,118
Approach Resources, Inc.*		303		1,997
Pacific Ethanol, Inc.*		184		1,985
Enphase Energy, Inc.*		141		1,860
Trecora Resources*		151		1,842
Key Energy Services, Inc.*		1,006		1,831
Natural Gas Services Group, Inc.*		95		1,826
FutureFuel Corp.		167		1,715
Alpha Natural Resources, Inc.*,1		1,701		1,701
Basic Energy Services, Inc.*		245		1,698
Geospace Technologies Corp.*		101		1,668
Solazyme, Inc.*,1		582		1,665
Gulf Island Fabrication, Inc.		111		1,649
Arch Coal, Inc.*,1		1,626		1,626
Gastar Exploration, Inc.*		539		1,412
W&T Offshore, Inc.		269		1,375
Rex Energy Corp.*		369		1,373
Eclipse Resources Corp.*		233		1,309
Comstock Resources, Inc.		366		1,307
Vivint Solar, Inc.*		107		1,299
Adams Resources & Energy, Inc.		16		1,075
PetroQuest Energy, Inc.*		450		1,035
Willbros Group, Inc.*		307		1,016
Goodrich Petroleum Corp.*		268		951
FMSA Holdings, Inc.*		130		941
VAALCO Energy, Inc.*		382		936
TransAtlantic Petroleum Ltd.*		173		924
Hallador Energy Co.		79		924
Evolution Petroleum Corp.		151		898
Isramco, Inc.*		7		881
Swift Energy Co.*,1		336		726
Jones Energy, Inc. — Class A*		73		656
North Atlantic Drilling Ltd.		547		635
Warren Resources, Inc.*		619		551
Independence Contract Drilling, Inc.*		79		551
FX Energy, Inc.*		415		519
Hercules Offshore, Inc.*		1,235		518
Vantage Drilling Co.*		1,580		517
Amyris, Inc.*		207		497
Mitcham Industries, Inc.*		97		446
Nuverra Environmental Solutions, Inc.*,1		116		413
Vertex Energy, Inc.*		100		370
Resolute Energy Corp.*		600		338
Walter Energy, Inc.		504		312
Emerald Oil, Inc.*		341		252
Midstates Petroleum Company, Inc.*		286		243
Glori Energy, Inc.*		93		198
Profire Energy, Inc.*		112		151
Miller Energy Resources, Inc.*		231		144
Harvest Natural Resources, Inc.*		322		144
American Eagle Energy Corp.*		234		42
Total Energy				450,875
CONSUMER DISCRETIONARY - 0.2%
Cimpress N.V.*		256		21,600
Travelport Worldwide Ltd.		230		3,841
Virgin America, Inc.*		117		3,557
Shake Shack, Inc. — Class A*		44		2,203
Metaldyne Performance Group, Inc.		88		1,586
Freshpet, Inc.*		61		1,185
Dave & Buster’s Entertainment, Inc.*		37		1,127
Habit Restaurants, Inc. — Class A*		31		996
Boot Barn Holdings, Inc.*		31		742
Total Consumer Discretionary				36,837
HEALTH CARE - 0.1%
Spark Therapeutics, Inc.*		62		4,804
Providence Service Corp.*		88		4,675
Dynavax Technologies Corp.*		202		4,531
PRA Health Sciences, Inc.*		150		4,326
Diplomat Pharmacy, Inc.*		117		4,046
FibroGen, Inc.*		48		1,506
Genesis Healthcare, Inc.*		207		1,474
Calithera Biosciences, Inc.*		42		690
Symmetry Surgical, Inc.*		48		352
Second Sight Medical Products, Inc.*		23		295
Total Health Care				26,699
DIVERSIFIED - 0.1%
Horizon Pharma plc*		501		13,012
National Bank Holdings Corp. — Class A		303		5,699
FCB Financial Holdings, Inc. — Class A*		63		1,724
Resource America, Inc. — Class A		117		1,065

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Tiptree Financial, Inc. — Class A		69	$	457
Total Diversified				21,957
FINANCIALS - 0.1%
Gramercy Property Trust, Inc.		359		10,083
InfraREIT, Inc.		176		5,032
James River Group Holdings Ltd.		84		1,977
On Deck Capital, Inc.*		88		1,874
Easterly Government Properties, Inc.*		106		1,701
Total Financials				20,667
CONSUMER STAPLES - 0.0%
HRG Group, Inc.*		640		7,987
GOVERNMENT - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		229		7,509
INFORMATION TECHNOLOGY - 0.0%
Box, Inc. — Class A*		96		1,896
New Relic, Inc.*		44		1,527
Hortonworks, Inc.*		55		1,311
Total Information Technology				4,734
INDUSTRIALS - 0.0%
Patriot Transportation Holding, Inc.*		17		424
Total Common Stocks
(Cost $10,627,812)				13,929,839
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16†		54		43
Imperial Holdings, Inc.
$10.75, 10/06/19		4		—
Magnum Hunter Resources Corp.
$8.50, 04/15/161		282		—
Total Warrants
(Cost $344)				43
RIGHTS - 0.0%
Leap Wireless International, Inc.
Expires 09/17/15†††		513		1,293
Furiex Pharmaceuticals, Inc.
Expires 07/03/17†††		46		449
Omthera Pharmaceuticals, Inc.
Expires 12/31/20†††		57		34
Total Rights
(Cost $570)				1,776
MUTUAL FUNDS† - 6.6%
Guggenheim Strategy Fund I2		55,518		1,382,408
Total Mutual Funds
(Cost $1,379,083)				1,382,408
	Face Amount
REPURCHASE AGREEMENTS††,3 - 9.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,558,818		1,558,818
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		238,220		238,220
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		191,211		191,211
Total Repurchase Agreements
(Cost $1,988,249)				1,988,249
SECURITIES LENDING COLLATERAL††,4 - 0.4%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		55,128		55,128
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		18,964		18,964
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		9,788		9,788
Total Securities Lending Collateral
(Cost $83,880)				83,880
Total Investments - 82.7%
(Cost $14,079,938)			$	17,386,195
Other Assets & Liabilities, net - 17.3%				3,637,369
Total Net Assets - 100.0%			$	21,023,564

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $4,122,360)		33	$	14,055
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International April 2015 Russell 2000 Index Swap, Terminating 04/28/155 (Notional Value $8,524,624)		6,805	$	146,361
Credit Suisse Capital, LLC April 2015 Russell 2000 Index Swap, Terminating 04/28/155 (Notional Value $1,159,758)		926		19,885
Barclays Bank plc April 2015 Russell 2000 Index Swap, Terminating 04/30/155 (Notional Value $3,398,763)		2,713		3,787
(Total Notional Value $13,083,145)			$	170,033

*	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 March 31, 2015 — 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	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 ANNUAL REPORT | 105

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $79,905 of securities loaned (cost $12,007,809)	$	15,314,066
Repurchase agreements, at value (cost $2,072,129)		2,072,129
Total investments (cost $14,079,938)		17,386,195
Foreign currency, at value (cost $15)		15
Segregated cash with broker		2,532,300
Unrealized appreciation on swap agreements		170,033
Cash		1,388
Receivables:
Fund shares sold		1,203,409
Securities sold		51,546
Swap settlement		27,630
Dividends		19,086
Variation margin		1,650
Securities lending income		391
Interest		2
Total assets		21,393,645
Liabilities:
Payable for:
Fund shares redeemed		157,546
Securities purchased		86,150
Return of securities loaned		85,106
Management fees		15,611
Distribution and service fees		5,434
Transfer agent and administrative fees		4,336
Portfolio accounting fees		1,735
Miscellaneous		14,163
Total liabilities		370,081
Commitments and contingent liabilities (Note 15)		—
Net assets	$	21,023,564
Net assets consist of:
Paid in capital	$	17,465,124
Accumulated net investment loss		(4,597	)
Accumulated net realized gain on investments		72,692
Net unrealized appreciation on investments		3,490,345
Net assets	$	21,023,564
A-Class:
Net assets	$	627,472
Capital shares outstanding		10,810
Net asset value per share	$	58.05
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.94
C-Class:
Net assets	$	1,799,764
Capital shares outstanding		34,602
Net asset value per share	$	52.01
H-Class:
Net assets	$	18,596,328
Capital shares outstanding		320,953
Net asset value per share	$	57.94

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $129)	$	197,091
Income from securities lending, net		3,455
Interest		987
Total investment income		201,533
Expenses:
Management fees		192,284
Transfer agent and administrative fees		53,412
Distribution and service fees:
A-Class		1,458
C-Class		17,136
H-Class		47,670
Portfolio accounting fees		21,365
Custodian fees		2,482
Trustees’ fees*		1,690
Line of credit fees		1,006
Miscellaneous		37,307
Total expenses		375,810
Net investment loss		(174,277	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,943,547
Swap agreements		938,921
Futures contracts		1,055,198
Foreign currency		(2	)
Net realized gain		6,937,664
Net change in unrealized appreciation (depreciation) on:
Investments		(3,034,702	)
Swap agreements		76,757
Futures contracts		116,668
Net change in unrealized appreciation (depreciation)		(2,841,277	)
Net realized and unrealized gain		4,096,387
Net increase in net assets resulting from operations	$	3,922,110

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

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(174,277	)	$	(310,218	)
Net realized gain on investments		6,937,664			7,120,234
Net change in unrealized appreciation (depreciation) on investments		(2,841,277	)		2,110,677
Net increase in net assets resulting from operations		3,922,110			8,920,693
Distributions to shareholders from:
Net realized gains
A-Class		(2,196	)		—
C-Class		(7,355	)		—
H-Class		(234,847	)		—
Total distributions to shareholders		(244,398	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		1,893,905			1,668,443
C-Class		98,855			452,183
H-Class		232,124,981			344,982,687
Distributions reinvested
A-Class		1,903			—
C-Class		7,229			—
H-Class		133,841			—
Cost of shares redeemed
A-Class		(1,896,108	)		(1,740,054	)
C-Class		(299,746	)		(787,292	)
H-Class		(236,252,696	)		(378,994,862	)
Net decrease from capital share transactions		(4,187,836	)		(34,418,895	)
Net decrease in net assets		(510,124	)		(25,498,202	)
Net assets:
Beginning of year		21,533,688			47,031,890
End of year	$	21,023,564		$	21,533,688
Accumulated net investment loss at end of year	$	(4,597	)	$	(66,937	)
Capital share activity:
Shares sold
A-Class		37,732			37,199
C-Class		2,156			10,755
H-Class		4,439,943			7,350,452
Shares issued from reinvestment of distributions
A-Class		36			—
C-Class		153			—
H-Class		2,554			—
Shares redeemed
A-Class		(38,492	)		(35,645	)
C-Class		(6,473	)		(19,078	)
H-Class		(4,480,213	)		(8,137,425	)
Net decrease in shares		(42,604	)		(793,742	)

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	53.23		$	39.32		$	32.20		$	34.37		$	25.24
Income (loss) from investment operations:
Net investment income (loss)a		(.39	)		(.37	)		(.16	)		(.39	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		5.41			14.28			7.28			(1.78	)		9.48
Total from investment operations		5.02			13.91			7.12			(2.17	)		9.13
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	58.05		$	53.23		$	39.32		$	32.20		$	34.37
Total Returnb		9.48	%		35.38	%		22.11	%		(6.31	%)		36.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	627		$	614		$	392		$	1,355		$	2,312
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.78	%)		(0.51	%)		(1.24	%)		(1.25	%)
Total expensesc		1.70	%		1.72	%		1.71	%		1.73	%		1.72	%
Portfolio turnover rate		830	%		472	%		527	%		177	%		211	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	48.08		$	35.78		$	29.52		$	31.75		$	23.50
Income (loss) from investment operations:
Net investment income (loss)a		(.70	)		(.65	)		(.34	)		(.54	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		4.83			12.95			6.60			(1.69	)		8.72
Total from investment operations		4.13			12.30			6.26			(2.23	)		8.25
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	52.01		$	48.08		$	35.78		$	29.52		$	31.75
Total Returnb		8.64	%		34.38	%		21.21	%		(7.02	%)		35.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,800		$	1,864		$	1,685		$	1,839		$	2,786
Ratios to average net assets:
Net investment income (loss)		(1.49	%)		(1.55	%)		(1.15	%)		(1.99	%)		(1.90	%)
Total expensesc		2.45	%		2.47	%		2.46	%		2.49	%		2.47	%
Portfolio turnover rate		830	%		472	%		527	%		177	%		211	%

108 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	53.13		$	39.24		$	32.13		$	34.29		$	25.21
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		(.37	)		(.08	)		(.37	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		5.41			14.26			7.19			(1.79	)		9.43
Total from investment operations		5.01			13.89			7.11			(2.16	)		9.08
Less distributions from:
Net realized gains		(.20	)		—			—			—			—
Total distributions		(.20	)		—			—			—			—
Net asset value, end of period	$	57.94		$	53.13		$	39.24		$	32.13		$	34.29
Total Returnb		9.48	%		35.40	%		22.13	%		(6.30	%)		36.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,596		$	19,056		$	44,955		$	14,902		$	37,780
Ratios to average net assets:
Net investment income (loss)		(0.76	%)		(0.81	%)		(0.25	%)		(1.24	%)		(1.25	%)
Total expensesc		1.70	%		1.72	%		1.71	%		1.73	%		1.72	%
Portfolio turnover rate		830	%		472	%		527	%		177	%		211	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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”).

Russell 2000^® Fund H-Class turned in a 6.37% performance for the one-year period ended March 31, 2015. Its benchmark, the Russell 2000 Index, returned 8.21% for the period. Russell 2000^® Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the Russell 2000 Index.

Among sectors, the biggest performance contributors to the underlying index during the period were Health Care and Financials. The Energy sector detracted the most from return, followed by the Materials sector.

Qorvo, Inc., InterMune, Inc., and Puma Biotechnology, Inc. were the largest contributors to performance of the underlying index for the year. CARBO Ceramics, Inc., Civeo Corp., and GT Advanced Technologies, Inc. were the leading detractors from performance of the underlying index for the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Leap Wireless International, Inc.	0.007%
Qorvo, Inc.	0.007%
Isis Pharmaceuticals, Inc.	0.004%
Puma Biotechnology, Inc.	0.004%
Ultimate Software Group, Inc.	0.003%
Office Depot, Inc.	0.003%
Brunswick Corp.	0.003%
JetBlue Airways Corp.	0.003%
Graphic Packaging Holding Co.	0.003%
DexCom, Inc.	0.003%
Top Ten Total	0.040%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

110 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (05/31/06)
A-Class Shares	6.42%	12.93%	6.25%
A-Class Shares with sales charge†	1.35%	11.84%	5.67%
C-Class Shares	5.61%	12.01%	5.40%
C-Class Shares with CDSC‡	4.61%	12.01%	5.40%
H-Class Shares	6.37%	12.91%	6.23%
Russell 2000 Index	8.21%	14.57%	7.92%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 111

SCHEDULE OF INVESTMENTS	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 1.1%
FINANCIAL - 0.4%
LaSalle Hotel Properties		30	$	1,165
Investors Bancorp, Inc.		95		1,113
Highwoods Properties, Inc.		24		1,098
RLJ Lodging Trust		35		1,096
CubeSmart		43		1,038
First American Financial Corp.		28		998
Prosperity Bancshares, Inc.		19		997
Stifel Financial Corp.*		17		948
CNO Financial Group, Inc.		54		929
Sunstone Hotel Investors, Inc.		55		917
EPR Properties		15		900
Webster Financial Corp.		24		889
Pebblebrook Hotel Trust		19		885
Strategic Hotels & Resorts, Inc.*		71		883
Sun Communities, Inc.		13		866
MGIC Investment Corp.*		90		866
Radian Group, Inc.		51		855
Bank of the Ozarks, Inc.		23		849
Sovran Self Storage, Inc.		9		845
FirstMerit Corp.		44		839
GEO Group, Inc.		19		831
MarketAxess Holdings, Inc.		10		829
Medical Properties Trust, Inc.		55		811
First Citizens BancShares, Inc. — Class A		3		779
Primerica, Inc.		15		764
DCT Industrial Trust, Inc.		22		762
Umpqua Holdings Corp.		44		756
Colony Capital, Inc. — Class A		29		752
DiamondRock Hospitality Co.		52		735
Ryman Hospitality Properties, Inc.		12		731
National Health Investors, Inc.		10		710
PRA Group, Inc.*		13		706
Healthcare Realty Trust, Inc.		25		695
Janus Capital Group, Inc.		40		687
Susquehanna Bancshares, Inc.		50		686
United Bankshares, Inc.		18		676
PrivateBancorp, Inc. — Class A		19		668
Hancock Holding Co.		22		657
Acadia Realty Trust		18		627
WisdomTree Investments, Inc.		29		622
First Industrial Realty Trust, Inc.		29		621
Cousins Properties, Inc.		58		616
FNB Corp.		46		604
Cathay General Bancorp		21		597
Western Alliance Bancorporation*		20		593
Washington Federal, Inc.		27		589
Financial Engines, Inc.		14		586
Texas Capital Bancshares, Inc.*		12		584
American Equity Investment Life Holding Co.		20		583
BancorpSouth, Inc.		25		581
RLI Corp.		11		577
Wintrust Financial Corp.		12		572
Valley National Bancorp		60		566
Hudson Pacific Properties, Inc.		17		564
MB Financial, Inc.		18		564
Alexander & Baldwin, Inc.		13		561
New Residential Investment Corp.		37		556
DuPont Fabros Technology, Inc.		17		556
Lexington Realty Trust		55		541
Sabra Health Care REIT, Inc.		16		530
UMB Financial Corp.		10		529
Invesco Mortgage Capital, Inc.		33		512
Chesapeake Lodging Trust		15		507
IBERIABANK Corp.		8		504
Glacier Bancorp, Inc.		20		503
Blackhawk Network Holdings, Inc.*		14		501
Washington Real Estate Investment Trust		18		497
Kennedy-Wilson Holdings, Inc.		19		497
Chambers Street Properties		63		496
EastGroup Properties, Inc.		8		481
Equity One, Inc.		18		480
WageWorks, Inc.*		9		480
Capitol Federal Financial, Inc.		38		475
Home BancShares, Inc.		14		474
Hatteras Financial Corp.		26		472
First Financial Bankshares, Inc.		17		470
Symetra Financial Corp.		20		469
Kemper Corp.		12		468
Evercore Partners, Inc. — Class A		9		465
Mack-Cali Realty Corp.		24		463
Alexander’s, Inc.		1		457
AmTrust Financial Services, Inc.		8		456
Empire State Realty Trust, Inc. — Class A		24		451
New York REIT, Inc.		43		451
CVB Financial Corp.		28		446
Potlatch Corp.		11		440
Old National Bancorp		31		440
Retail Opportunity Investments Corp.		24		439
Trustmark Corp.		18		437
Selective Insurance Group, Inc.		15		436
BGC Partners, Inc. — Class A		46		435
Columbia Banking System, Inc.		15		435
American Assets Trust, Inc.		10		433
EverBank Financial Corp.		24		433
PennyMac Mortgage Investment Trust		20		426
Education Realty Trust, Inc.		12		425
Pennsylvania Real Estate Investment Trust		18		418
PS Business Parks, Inc.		5		415
LTC Properties, Inc.		9		414
Government Properties Income Trust		18		411
South State Corp.		6		410
Argo Group International Holdings Ltd.		8		401
Pinnacle Financial Partners, Inc.		9		400
Redwood Trust, Inc.		22		393

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Ramco-Gershenson Properties Trust		21	$	391
Credit Acceptance Corp.*		2		390
Community Bank System, Inc.		11		389
Hilltop Holdings, Inc.*		20		389
Ellie Mae, Inc.*		7		387
Montpelier Re Holdings Ltd.		10		384
CYS Investments, Inc.		43		383
Aircastle Ltd.		17		382
FelCor Lodging Trust, Inc.		33		379
Horace Mann Educators Corp.		11		376
BofI Holding, Inc.*		4		372
Associated Estates Realty Corp.		15		370
International Bancshares Corp.		14		364
Parkway Properties, Inc.		21		364
Springleaf Holdings, Inc.*		7		362
National Penn Bancshares, Inc.		33		355
STAG Industrial, Inc.		15		353
Gramercy Property Trust, Inc.		13		351
First Midwest Bancorp, Inc.		20		347
Hersha Hospitality Trust		53		343
HFF, Inc. — Class A		9		338
Physicians Realty Trust		19		335
Summit Hotel Properties, Inc.		23		324
Sterling Bancorp		24		322
Greenhill & Company, Inc.		8		317
St. Joe Co.*		17		315
Home Loan Servicing Solutions Ltd.		19		314
PHH Corp.*		13		314
Altisource Residential Corp.		15		313
Franklin Street Properties Corp.		24		308
Eagle Bancorp, Inc.*		8		307
Independent Bank Corp.		7		307
BBCN Bancorp, Inc.		21		304
Westamerica Bancorporation		7		302
ARMOUR Residential REIT, Inc.		95		301
NBT Bancorp, Inc.		12		301
iStar Financial, Inc.*		23		299
Provident Financial Services, Inc.		16		298
Astoria Financial Corp.		23		298
Northwest Bancshares, Inc.		25		296
Capstead Mortgage Corp.		25		294
Chatham Lodging Trust		10		294
WesBanco, Inc.		9		293
CoreSite Realty Corp.		6		292
Encore Capital Group, Inc.*		7		291
Ambac Financial Group, Inc.*		12		290
Essent Group Ltd.*		12		287
Nelnet, Inc. — Class A		6		284
Enstar Group Ltd.*		2		284
Chemical Financial Corp.		9		282
CyrusOne, Inc.		9		280
Apollo Commercial Real Estate Finance, Inc.		16		275
Simmons First National Corp. — Class A		6		273
Investment Technology Group, Inc.*		9		273
First Financial Bancorp		15		267
Union Bankshares Corp.		12		267
Virtus Investment Partners, Inc.		2		262
Starwood Waypoint Residential Trust		10		259
Park National Corp.		3		257
S&T Bancorp, Inc.		9		255
Boston Private Financial Holdings, Inc.		21		255
Greenlight Capital Re Ltd. — Class A*		8		254
National Western Life Insurance Co. — Class A		1		254
Kite Realty Group Trust		9		254
American Capital Mortgage Investment Corp.		14		251
Terreno Realty Corp.		11		251
LegacyTexas Financial Group, Inc.		11		250
Select Income REIT		10		250
Infinity Property & Casualty Corp.		3		246
Inland Real Estate Corp.		23		246
United Community Banks, Inc.		13		245
Stewart Information Services Corp.		6		244
Renasant Corp.		8		240
Rexford Industrial Realty, Inc.		15		237
First Merchants Corp.		10		235
Navigators Group, Inc.*		3		234
AMERISAFE, Inc.		5		231
Banner Corp.		5		230
First Commonwealth Financial Corp.		25		225
Investors Real Estate Trust		30		225
Excel Trust, Inc.		16		224
New York Mortgage Trust, Inc.		28		217
Employers Holdings, Inc.		8		216
Tompkins Financial Corp.		4		215
Third Point Reinsurance Ltd.*		15		212
Ameris Bancorp		8		211
Piper Jaffray Cos.*		4		210
Cohen & Steers, Inc.		5		205
Universal Insurance Holdings, Inc.		8		205
Ashford Hospitality Trust, Inc.		21		202
OFG Bancorp		12		196
Berkshire Hills Bancorp, Inc.		7		194
Maiden Holdings Ltd.		13		193
Northfield Bancorp, Inc.		13		193
Brookline Bancorp, Inc.		19		191
First Potomac Realty Trust		16		190
Rouse Properties, Inc.		10		190
Wilshire Bancorp, Inc.		19		189
State Bank Financial Corp.		9		189
City Holding Co.		4		188
STORE Capital Corp.		8		187
FBL Financial Group, Inc. — Class A		3		186
Sandy Spring Bancorp, Inc.		7		184
Aviv REIT, Inc.		5		183
Safety Insurance Group, Inc.		3		179
TowneBank		11		177
Oritani Financial Corp.		12		175
First BanCorp*		28		174

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Cedar Realty Trust, Inc.		23	$	172
Southside Bancshares, Inc.		6		172
TrustCo Bank Corp. NY		25		172
Saul Centers, Inc.		3		172
InfraREIT, Inc.		6		172
Customers Bancorp, Inc.*		7		171
Hanmi Financial Corp.		8		169
Universal Health Realty Income Trust		3		169
Cass Information Systems, Inc.		3		168
National General Holdings Corp.		9		168
Monmouth Real Estate Investment Corp.		15		167
Western Asset Mortgage Capital Corp.		11		166
Capital Bank Financial Corp. — Class A*		6		166
Agree Realty Corp.		5		165
Lakeland Financial Corp.		4		162
American Residential Properties, Inc.*		9		162
Silver Bay Realty Trust Corp.		10		162
United Financial Bancorp, Inc.		13		162
Walter Investment Management Corp.*		10		162
Urstadt Biddle Properties, Inc. — Class A		7		161
Cowen Group, Inc. — Class A*		31		161
Flushing Financial Corp.		8		161
Diamond Hill Investment Group, Inc.		1		160
Cardinal Financial Corp.		8		160
United Fire Group, Inc.		5		159
GAMCO Investors, Inc. — Class A		2		157
Resource Capital Corp.		34		154
Washington Trust Bancorp, Inc.		4		153
WSFS Financial Corp.		2		151
RAIT Financial Trust		22		151
AG Mortgage Investment Trust, Inc.		8		151
KCG Holdings, Inc. — Class A*		12		147
World Acceptance Corp.*		2		146
QTS Realty Trust, Inc. — Class A		4		146
Dime Community Bancshares, Inc.		9		145
TriCo Bancshares		6		145
Arlington Asset Investment Corp. — Class A		6		144
Apollo Residential Mortgage, Inc.		9		144
Anworth Mortgage Asset Corp.		28		143
Forestar Group, Inc.*		9		142
Acacia Research Corp.		13		139
First Interstate BancSystem, Inc. — Class A		5		139
Enova International, Inc.*		7		138
Stock Yards Bancorp, Inc.		4		138
Heritage Financial Corp.		8		136
Community Trust Bancorp, Inc.		4		133
First NBC Bank Holding Co.*		4		132
Heartland Financial USA, Inc.		4		131
1st Source Corp.		4		129
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		7		128
Getty Realty Corp.		7		127
First Busey Corp.		19		127
Dynex Capital, Inc.		15		127
CoBiz Financial, Inc.		10		123
Federated National Holding Co.		4		122
BancFirst Corp.		2		122
Campus Crest Communities, Inc.		17		122
Bryn Mawr Bank Corp.		4		122
Westwood Holdings Group, Inc.		2		121
International. FCStone, Inc.*		4		119
Great Southern Bancorp, Inc.		3		118
German American Bancorp, Inc.		4		118
ConnectOne Bancorp, Inc.		6		117
Waterstone Financial, Inc.		9		116
Lakeland Bancorp, Inc.		10		115
Central Pacific Financial Corp.		5		115
OM Asset Management plc		6		112
Banc of California, Inc.		9		111
Meadowbrook Insurance Group, Inc.		13		111
Metro Bancorp, Inc.		4		110
Great Western Bancorp, Inc.		5		110
HomeStreet, Inc.*		6		110
CareTrust REIT, Inc.		8		108
First Financial Corp.		3		108
CenterState Banks, Inc.		9		107
Blue Hills Bancorp, Inc.*		8		106
Enterprise Financial Services Corp.		5		103
Hudson Valley Holding Corp.		4		102
Bank of Marin Bancorp		2		102
Beneficial Bancorp, Inc.*		9		102
Yadkin Financial Corp.*		5		102
Ashford Hospitality Prime, Inc.		6		101
Ladenburg Thalmann Financial Services, Inc.*		26		100
Phoenix Companies, Inc.*		2		100
RE/MAX Holdings, Inc. — Class A		3		100
Clifton Bancorp, Inc.		7		99
First Defiance Financial Corp.		3		98
MainSource Financial Group, Inc.		5		98
Bank of Kentucky Financial Corp.		2		98
NMI Holdings, Inc. — Class A*		13		97
State Auto Financial Corp.		4		97
Pacific Premier Bancorp, Inc.*		6		97
HomeTrust Bancshares, Inc.*		6		96
Whitestone REIT — Class B		6		95
Peoples Bancorp, Inc.		4		95
Gladstone Commercial Corp.		5		93
HCI Group, Inc.		2		92
Financial Institutions, Inc.		4		92
OneBeacon Insurance Group Ltd. — Class A		6		91
Stonegate Bank		3		91
BNC Bancorp		5		91
United Insurance Holdings Corp.		4		90
Peoples Financial Services Corp.		2		90
Southwest Bancorp, Inc.		5		89
Walker & Dunlop, Inc.*		5		89
Ares Commercial Real Estate Corp.		8		88
Bank Mutual Corp.		12		88

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
First Bancorp		5	$	88
Peapack Gladstone Financial Corp.		4		86
Park Sterling Corp.		12		85
Federal Agricultural Mortgage Corp. — Class C		3		85
CorEnergy Infrastructure Trust, Inc.		12		83
Preferred Bank/Los Angeles CA		3		82
NewStar Financial, Inc.*		7		82
Caesars Acquisition Co. — Class A*		12		82
Arrow Financial Corp.		3		81
Bancorp, Inc.*		9		81
NewBridge Bancorp		9		80
Camden National Corp.		2		80
West Bancorporation, Inc.		4		80
Meta Financial Group, Inc.		2		79
Univest Corporation of Pennsylvania		4		79
Bridge Capital Holdings*		3		78
Mercantile Bank Corp.		4		78
Independent Bank Group, Inc.		2		78
Bridge Bancorp, Inc.		3		77
Independent Bank Corp.		6		77
Talmer Bancorp, Inc. — Class A		5		77
First of Long Island Corp.		3		77
Marcus & Millichap, Inc.*		2		75
Armada Hoffler Properties, Inc.		7		75
Republic Bancorp, Inc. — Class A		3		74
Ladder Capital Corp. — Class A		4		74
Citizens, Inc.*		12		74
One Liberty Properties, Inc.		3		73
FRP Holdings, Inc.*		2		73
Flagstar Bancorp, Inc.*		5		73
Seacoast Banking Corporation of Florida*		5		71
Suffolk Bancorp		3		71
United Community Financial Corp.		13		71
Oppenheimer Holdings, Inc. — Class A		3		70
First Community Bancshares, Inc.		4		70
State National Companies, Inc.		7		70
Anchor BanCorp Wisconsin, Inc.*		2		69
OceanFirst Financial Corp.		4		69
CU Bancorp*		3		68
CNB Financial Corp.		4		68
PennyMac Financial Services, Inc. — Class A*		4		68
Guaranty Bancorp		4		68
Fidelity Southern Corp.		4		68
Calamos Asset Management, Inc. — Class A		5		67
Pacific Continental Corp.		5		66
Meridian Bancorp, Inc.*		5		66
BankFinancial Corp.		5		66
Easterly Government Properties, Inc.*		4		64
On Deck Capital, Inc.*		3		64
Fidelity & Guaranty Life		3		64
TriState Capital Holdings, Inc.*		6		63
First Connecticut Bancorp, Inc.		4		61
Citizens & Northern Corp.		3		61
Crawford & Co. — Class B		7		60
UMH Properties, Inc.		6		60
Moelis & Co. — Class A		2		60
National Bankshares, Inc.		2		60
Consolidated-Tomoka Land Co.		1		60
Gain Capital Holdings, Inc.		6		59
CatchMark Timber Trust, Inc. — Class A		5		59
MidWestOne Financial Group, Inc.		2		58
Charter Financial Corp.		5		58
National Interstate Corp.		2		56
Global Indemnity plc — Class A*		2		56
Heritage Commerce Corp.		6		55
Kearny Financial Corp.*		4		54
Square 1 Financial, Inc. — Class A*		2		54
Atlas Financial Holdings, Inc.*		3		53
RenaissanceRe Holdings Ltd.		1		53
First Bancorp, Inc.		3		52
Manning & Napier, Inc. — Class A		4		52
Altisource Portfolio Solutions S.A.*		4		51
Fox Chase Bancorp, Inc.		3		50
Sierra Bancorp		3		50
Heritage Oaks Bancorp		6		50
Ames National Corp.		2		50
First Financial Northwest, Inc.		4		49
Northrim BanCorp, Inc.		2		49
Penns Woods Bancorp, Inc.		1		49
Capital City Bank Group, Inc.		3		49
Territorial Bancorp, Inc.		2		48
Baldwin & Lyons, Inc. — Class B		2		47
eHealth, Inc.*		5		47
Horizon Bancorp		2		47
FBR & Co.*		2		46
Kansas City Life Insurance Co.		1		46
American National Bankshares, Inc.		2		45
Owens Realty Mortgage, Inc.		3		45
Regional Management Corp.*		3		44
Heritage Insurance Holdings, Inc.*		2		44
Stonegate Mortgage Corp.*		4		43
First Business Financial Services, Inc.		1		43
Enterprise Bancorp, Inc.		2		43
Hallmark Financial Services, Inc.*		4		42
Consumer Portfolio Services, Inc.*		6		42
Marlin Business Services Corp.		2		40
Century Bancorp, Inc. — Class A		1		40
Cascade Bancorp*		8		38
Sun Bancorp, Inc.*		2		38
Macatawa Bank Corp.		7		37
BBX Capital Corp. — Class A*		2		37
Trade Street Residential, Inc.		5		36
EMC Insurance Group, Inc.		1		34
RCS Capital Corp. — Class A		3		32
Old Line Bancshares, Inc.		2		32
Donegal Group, Inc. — Class A		2		31
JG Wentworth Co. — Class A*		3		31
Opus Bank		1		31

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
CommunityOne Bancorp*		3	$	30
MidSouth Bancorp, Inc.		2		30
Merchants Bancshares, Inc.		1		29
Republic First Bancorp, Inc.*		8		29
Nicholas Financial, Inc.*		2		28
Pzena Investment Management, Inc. — Class A		3		28
Triumph Bancorp, Inc.*		2		27
Independence Holding Co.		2		27
FXCM, Inc. — Class A		12		26
Fifth Street Asset Management, Inc.		2		23
Medley Management, Inc. — Class A		2		22
Higher One Holdings, Inc.*		9		22
Palmetto Bancshares, Inc.		1		19
C1 Financial, Inc.*		1		19
GFI Group, Inc.		3		18
Hampton Roads Bankshares, Inc.*		9		17
Trupanion, Inc.*		2		16
CIFC Corp.		2		15
Great Ajax Corp.*		1		15
Silvercrest Asset Management Group, Inc. — Class A		1		14
Green Bancorp, Inc.*		1		11
Total Financial				115,243
CONSUMER, NON-CYCLICAL - 0.3%
Isis Pharmaceuticals, Inc.*		31		1,974
Puma Biotechnology, Inc.*		7		1,653
DexCom, Inc.*		20		1,248
West Pharmaceutical Services, Inc.		19		1,143
STERIS Corp.		16		1,124
Team Health Holdings, Inc.*		19		1,113
WellCare Health Plans, Inc.*		12		1,098
Cepheid*		19		1,081
WEX, Inc.*		10		1,073
PAREXEL International Corp.*		15		1,034
HealthSouth Corp.		23		1,019
United Natural Foods, Inc.*		13		1,001
Receptos, Inc.*		6		989
TreeHouse Foods, Inc.*		11		936
Deluxe Corp.		13		900
Impax Laboratories, Inc.*		19		890
Neurocrine Biosciences, Inc.*		22		874
Bluebird Bio, Inc.*		7		845
Euronet Worldwide, Inc.*		14		822
Akorn, Inc.*		17		807
Pacira Pharmaceuticals, Inc.*		9		800
Acadia Healthcare Company, Inc.*		11		788
ABIOMED, Inc.*		11		787
Cimpress N.V.*		9		759
OPKO Health, Inc.*		52		737
Celldex Therapeutics, Inc.*		26		725
Corporate Executive Board Co.		9		719
ACADIA Pharmaceuticals, Inc.*		21		684
Amsurg Corp. — Class A*		11		677
Sotheby’s		16		677
Post Holdings, Inc.*		14		656
Helen of Troy Ltd.*		8		652
Haemonetics Corp.*		14		629
SUPERVALU, Inc.*		54		629
Darling Ingredients, Inc.*		44		617
Healthcare Services Group, Inc.		19		611
Dyax Corp.*		36		603
Prestige Brands Holdings, Inc.*		14		601
Chemed Corp.		5		597
Thoratec Corp.*		14		586
Advisory Board Co.*		11		586
Synageva BioPharma Corp.*		6		585
Owens & Minor, Inc.		17		575
NuVasive, Inc.*		12		552
Molina Healthcare, Inc.*		8		538
On Assignment, Inc.*		14		537
Boston Beer Company, Inc. — Class A*		2		535
Exact Sciences Corp.*		24		528
Novavax, Inc.*		63		521
Anacor Pharmaceuticals, Inc.*		9		521
Monro Muffler Brake, Inc.		8		520
Clovis Oncology, Inc.*		7		520
Grand Canyon Education, Inc.*		12		519
Ironwood Pharmaceuticals, Inc. — Class A*		32		512
Insulet Corp.*		15		500
Kindred Healthcare, Inc.		21		500
Magellan Health, Inc.*		7		496
Sanderson Farms, Inc.		6		478
ABM Industries, Inc.		15		478
Medicines Co.*		17		476
Lancaster Colony Corp.		5		476
Lannett Company, Inc.*		7		474
Heartland Payment Systems, Inc.		10		469
Neogen Corp.*		10		467
Air Methods Corp.*		10		466
Portola Pharmaceuticals, Inc.*		12		456
Cyberonics, Inc.*		7		454
Intrexon Corp.*		10		454
Cardtronics, Inc.*		12		452
Fresh Market, Inc.*		11		447
Vector Group Ltd.		20		440
HeartWare International, Inc.*		5		439
Integra LifeSciences Holdings Corp.*		7		432
Globus Medical, Inc. — Class A*		17		429
Cantel Medical Corp.		9		428
Korn/Ferry International		13		427
J&J Snack Foods Corp.		4		427
Snyder’s-Lance, Inc.		13		415
Dean Foods Co.		25		413
Matthews International Corp. — Class A		8		412
FTI Consulting, Inc.*		11		412
B&G Foods, Inc.		14		412

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Bright Horizons Family Solutions, Inc.*		8	$	409
Greatbatch, Inc.*		7		405
Catalent, Inc.*		13		405
Huron Consulting Group, Inc.*		6		397
Masimo Corp.*		12		396
Halozyme Therapeutics, Inc.*		27		386
Ligand Pharmaceuticals, Inc. — Class B*		5		386
Abaxis, Inc.		6		385
Rent-A-Center, Inc.		14		384
AMAG Pharmaceuticals, Inc.*		7		383
Spectranetics Corp.*		11		382
Agios Pharmaceuticals, Inc.*		4		377
ExamWorks Group, Inc.*		9		375
Nektar Therapeutics*		34		374
ICU Medical, Inc.*		4		373
EVERTEC, Inc.		17		372
Acorda Therapeutics, Inc.*		11		366
PTC Therapeutics, Inc.*		6		365
ARIAD Pharmaceuticals, Inc.*		44		363
Brink’s Co.		13		359
HMS Holdings Corp.*		23		355
Natus Medical, Inc.*		9		355
WD-40 Co.		4		354
CONMED Corp.		7		353
Fresh Del Monte Produce, Inc.		9		350
Theravance, Inc.		22		346
TESARO, Inc.*		6		344
Keryx Biopharmaceuticals, Inc.*		27		344
Depomed, Inc.*		15		336
Wright Medical Group, Inc.*		13		335
Tumi Holdings, Inc.*		13		318
MannKind Corp.*		61		317
Cambrex Corp.*		8		317
SpartanNash Co.		10		316
Insperity, Inc.		6		314
Cal-Maine Foods, Inc.		8		312
Select Medical Holdings Corp.		21		311
Merrimack Pharmaceuticals, Inc.*		26		309
PDL BioPharma, Inc.		43		303
Chimerix, Inc.*		8		302
Auspex Pharmaceuticals, Inc.*		3		301
LifeLock, Inc.*		21		296
Achillion Pharmaceuticals, Inc.*		30		296
Tetraphase Pharmaceuticals, Inc.*		8		293
Endologix, Inc.*		17		290
Andersons, Inc.		7		290
Universal Corp.		6		283
Sangamo BioSciences, Inc.*		18		282
Ensign Group, Inc.		6		281
Arena Pharmaceuticals, Inc.*		64		280
AMN Healthcare Services, Inc.*		12		277
NxStage Medical, Inc.*		16		277
Cempra, Inc.*		8		274
NewLink Genetics Corp.*		5		274
Cardiovascular Systems, Inc.*		7		273
Repligen Corp.*		9		273
Analogic Corp.		3		273
Array BioPharma, Inc.*		37		273
Insmed, Inc.*		13		270
TrueBlue, Inc.*		11		268
Prothena Corporation plc*		7		267
MiMedx Group, Inc.*		25		260
ZIOPHARM Oncology, Inc.*		24		258
Orexigen Therapeutics, Inc.*		33		258
KYTHERA Biopharmaceuticals, Inc.*		5		251
ACCO Brands Corp.*		30		249
Bio-Reference Laboratories, Inc.*		7		247
Zeltiq Aesthetics, Inc.*		8		247
Affymetrix, Inc.*		19		239
Tornier N.V.*		9		236
IPC Healthcare, Inc.*		5		233
McGrath RentCorp		7		230
Emergent Biosolutions, Inc.*		8		230
PharMerica Corp.*		8		226
USANA Health Sciences, Inc.*		2		223
Omeros Corp.*		10		220
Quidel Corp.*		8		216
Momenta Pharmaceuticals, Inc.*		14		213
Merit Medical Systems, Inc.*		11		212
Meridian Bioscience, Inc.		11		210
Aegerion Pharmaceuticals, Inc.*		8		209
Multi-Color Corp.		3		208
Capital Senior Living Corp.*		8		208
ImmunoGen, Inc.*		23		206
Calavo Growers, Inc.		4		206
ICF International, Inc.*		5		204
Hanger, Inc.*		9		204
RPX Corp.*		14		201
Raptor Pharmaceutical Corp.*		18		196
Diamond Foods, Inc.*		6		195
Team, Inc.*		5		195
Capella Education Co.		3		195
TherapeuticsMD, Inc.*		32		194
Foundation Medicine, Inc.*		4		192
National Healthcare Corp.		3		191
Amedisys, Inc.*		7		187
Tootsie Roll Industries, Inc.		6		187
Ophthotech Corp.*		4		186
Accuray, Inc.*		20		186
Esperion Therapeutics, Inc.*		2		185
Cynosure, Inc. — Class A*		6		184
Hyperion Therapeutics, Inc.*		4		184
Infinity Pharmaceuticals, Inc.*		13		182
Relypsa, Inc.*		5		180
Orthofix International N.V.*		5		179
Dynavax Technologies Corp.*		8		179
Resources Connection, Inc.		10		175
Invacare Corp.		9		175

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Insys Therapeutics, Inc.*		3	$	174
OvaScience, Inc.*		5		174
Kite Pharma, Inc.*		3		173
BioCryst Pharmaceuticals, Inc.*		19		172
Navigant Consulting, Inc.*		13		168
Retrophin, Inc.*		7		168
Anika Therapeutics, Inc.*		4		165
Quad/Graphics, Inc.		7		161
Strayer Education, Inc.*		3		160
Luminex Corp.*		10		160
NutriSystem, Inc.		8		160
Providence Service Corp.*		3		159
Ascent Capital Group, Inc. — Class A*		4		159
Geron Corp.*		42		158
Healthways, Inc.*		8		158
MacroGenics, Inc.*		5		157
Kforce, Inc.		7		156
Spark Therapeutics, Inc.*		2		155
Boulder Brands, Inc.*		16		152
Acceleron Pharma, Inc.*		4		152
Monster Worldwide, Inc.*		24		152
Vascular Solutions, Inc.*		5		152
American Public Education, Inc.*		5		150
Weis Markets, Inc.		3		149
Ingles Markets, Inc. — Class A		3		148
LDR Holding Corp.*		4		147
Sarepta Therapeutics, Inc.*		11		146
PRA Health Sciences, Inc.*		5		144
AtriCure, Inc.*		7		143
GenMark Diagnostics, Inc.*		11		143
US Physical Therapy, Inc.		3		143
Phibro Animal Health Corp. — Class A		4		142
K12, Inc.*		9		141
TriNet Group, Inc.*		4		141
Sagent Pharmaceuticals, Inc.*		6		140
Triple-S Management Corp. — Class B*		7		139
Viad Corp.		5		139
Diplomat Pharmacy, Inc.*		4		138
Accelerate Diagnostics, Inc.*		6		135
Exelixis, Inc.*,1		52		134
Unilife Corp.*		33		132
Rockwell Medical, Inc.*		12		131
Inovio Pharmaceuticals, Inc.*		16		131
Inter Parfums, Inc.		4		130
Global Cash Access Holdings, Inc.*		17		130
Aratana Therapeutics, Inc.*		8		128
Green Dot Corp. — Class A*		8		127
ANI Pharmaceuticals, Inc.*		2		125
AngioDynamics, Inc.*		7		125
Ultragenyx Pharmaceutical, Inc.*		2		124
SciClone Pharmaceuticals, Inc.*		14		124
TG Therapeutics, Inc.*		8		124
Revlon, Inc. — Class A*		3		124
Heidrick & Struggles International, Inc.		5		123
Sequenom, Inc.*		31		122
Karyopharm Therapeutics, Inc.*		4		122
Genomic Health, Inc.*		4		122
Kelly Services, Inc. — Class A		7		122
Intra-Cellular Therapies, Inc.*		5		119
Xoom Corp.*		8		118
Universal American Corp.*		11		117
Central Garden & Pet Co. — Class A*		11		117
BioDelivery Sciences International, Inc.*		11		116
Synergy Pharmaceuticals, Inc.*		25		116
Five Prime Therapeutics, Inc.*		5		114
Coca-Cola Bottling Company Consolidated		1		113
Chefs’ Warehouse, Inc.*		5		112
LendingTree, Inc.*		2		112
Forrester Research, Inc.		3		110
Elizabeth Arden, Inc.*		7		109
Progenics Pharmaceuticals, Inc.*		18		108
XenoPort, Inc.*		15		107
Tejon Ranch Co.*		4		106
Albany Molecular Research, Inc.*		6		106
Landauer, Inc.		3		105
Cerus Corp.*		25		104
Theravance Biopharma, Inc.*		6		104
CorVel Corp.*		3		103
Spectrum Pharmaceuticals, Inc.*		17		103
Surgical Care Affiliates, Inc.*		3		103
CBIZ, Inc.*		11		103
ARC Document Solutions, Inc.*		11		102
Arrowhead Research Corp.*		15		101
Sage Therapeutics, Inc.*		2		100
LHC Group, Inc.*		3		99
Ennis, Inc.		7		99
OraSure Technologies, Inc.*		15		98
Supernus Pharmaceuticals, Inc.*		8		97
Pernix Therapeutics Holdings, Inc.*		9		96
Great Lakes Dredge & Dock Corp.*		16		96
Nevro Corp.*		2		96
Carriage Services, Inc. — Class A		4		95
Cross Country Healthcare, Inc.*		8		95
Aerie Pharmaceuticals, Inc.*		3		94
Pacific Biosciences of California, Inc.*		16		93
CRA International, Inc.*		3		93
Enanta Pharmaceuticals, Inc.*		3		92
Career Education Corp.*		18		91
Medifast, Inc.*		3		90
Almost Family, Inc.*		2		89
Northwest Biotherapeutics, Inc.*		12		88
Osiris Therapeutics, Inc.*		5		88
SP Plus Corp.*		4		87
XOMA Corp.*		24		87
Heron Therapeutics, Inc.*		6		87
Agenus, Inc.*		17		87
Alder Biopharmaceuticals, Inc.*		3		87
John B Sanfilippo & Son, Inc.		2		86

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Barrett Business Services, Inc.		2	$	86
Idera Pharmaceuticals, Inc.*		23		85
Immunomedics, Inc.*		22		84
ZS Pharma, Inc.*		2		84
Antares Pharma, Inc.*		31		84
Ocular Therapeutix, Inc.*		2		84
Vanda Pharmaceuticals, Inc.*		9		84
Atara Biotherapeutics, Inc.*		2		83
Ampio Pharmaceuticals, Inc.*		11		83
Radius Health, Inc.*		2		82
Omega Protein Corp.*		6		82
Rigel Pharmaceuticals, Inc.*		23		82
Avalanche Biotechnologies, Inc.*		2		81
BioScrip, Inc.*		18		80
Zafgen, Inc.*		2		79
Corcept Therapeutics, Inc.*		14		78
SurModics, Inc.*		3		78
Sucampo Pharmaceuticals, Inc. — Class A*		5		78
OncoMed Pharmaceuticals, Inc.*		3		77
Exactech, Inc.*		3		77
Xencor, Inc.*		5		77
RadNet, Inc.*		9		76
Epizyme, Inc.*		4		75
HealthEquity, Inc.*		3		75
STAAR Surgical Co.*		10		74
RTI Surgical, Inc.*		15		74
National Beverage Corp.*		3		73
CryoLife, Inc.		7		73
CTI BioPharma Corp.*		40		72
Verastem, Inc.*		7		71
Otonomy, Inc.*		2		71
James River Group Holdings Ltd.		3		71
Smart & Final Stores, Inc.*		4		70
BioTime, Inc.*		14		70
MoneyGram International, Inc.*		8		69
Regulus Therapeutics, Inc.*		4		68
Peregrine Pharmaceuticals, Inc.*		50		68
Incorporated Research Holdings, Inc. — Class A*		2		65
Limoneira Co.		3		65
IGI Laboratories, Inc.*		8		65
Threshold Pharmaceuticals, Inc.*		16		65
Navidea Biopharmaceuticals, Inc.*		40		64
Civeo Corp.		25		64
Lexicon Pharmaceuticals, Inc.*		67		63
Village Super Market, Inc. — Class A		2		63
Civitas Solutions, Inc.*		3		63
FibroGen, Inc.*		2		63
Endocyte, Inc.*		10		63
Hackett Group, Inc.		7		63
BioTelemetry, Inc.*		7		62
Coherus Biosciences, Inc.*		2		61
AAC Holdings, Inc.*		2		61
Cytokinetics, Inc.*		9		61
CSS Industries, Inc.		2		60
Organovo Holdings, Inc.*		17		60
Utah Medical Products, Inc.		1		60
Seneca Foods Corp. — Class A*		2		60
VIVUS, Inc.*		24		59
Mirati Therapeutics, Inc.*		2		59
Stemline Therapeutics, Inc.*		4		58
Franklin Covey Co.*		3		58
Universal Technical Institute, Inc.		6		58
Paylocity Holding Corp.*		2		57
Pendrell Corp.*		44		57
Oxford Immunotec Global plc*		4		56
CDI Corp.		4		56
ServiceSource International, Inc.*		18		56
Galena Biopharma, Inc.*		40		56
Natural Grocers by Vitamin Cottage, Inc.*		2		55
POZEN, Inc.*		7		54
ChemoCentryx, Inc.*		7		53
Intersect ENT, Inc.*		2		52
Repros Therapeutics, Inc.*		6		52
Alico, Inc.		1		51
Derma Sciences, Inc.*		6		51
CytRx Corp.*		15		51
Adeptus Health, Inc. — Class A*		1		50
Farmer Bros Co.*		2		50
Cellular Dynamics International, Inc.*		3		49
SFX Entertainment, Inc.*		12		49
Weight Watchers International, Inc.*		7		49
Five Star Quality Care, Inc.*		11		49
Senomyx, Inc.*		11		49
Bellicum Pharmaceuticals, Inc.*		2		46
Addus HomeCare Corp.*		2		46
Electro Rent Corp.		4		45
Zogenix, Inc.*		33		45
Collectors Universe, Inc.		2		45
Flexion Therapeutics, Inc.*		2		45
Inventure Foods, Inc.*		4		45
K2M Group Holdings, Inc.*		2		44
National Research Corp. — Class A		3		43
Genesis Healthcare, Inc.*		6		43
Immune Design Corp.*		2		42
Revance Therapeutics, Inc.*		2		41
Craft Brew Alliance, Inc.*		3		41
Oncothyreon, Inc.*		25		41
ITT Educational Services, Inc.*		6		41
Nutraceutical International Corp.*		2		39
Nature’s Sunshine Products, Inc.		3		39
BioSpecifics Technologies Corp.*		1		39
Bridgepoint Education, Inc.*		4		39
Sientra, Inc.*		2		38
Tandem Diabetes Care, Inc.*		3		38
Sunesis Pharmaceuticals, Inc.*		15		37
Versartis, Inc.*		2		37
Information Services Group, Inc.		9		36

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Alimera Sciences, Inc.*		7	$	35
Bio-Path Holdings, Inc.*		19		34
Neuralstem, Inc.*		18		34
Fairway Group Holdings Corp.*		5		34
Invitae Corp.*		2		34
Synta Pharmaceuticals Corp.*		17		33
Calithera Biosciences, Inc.*		2		33
Cenveo, Inc.*		15		32
Synutra International, Inc.*		5		32
Inogen, Inc.*		1		32
Neff Corp. — Class A*		3		32
T2 Biosystems, Inc.*		2		31
Dermira, Inc.*		2		31
NanoString Technologies, Inc.*		3		31
Amphastar Pharmaceuticals, Inc.*		2		30
Enzo Biochem, Inc.*		10		30
Hill International, Inc.*		8		29
Cytori Therapeutics, Inc.*		24		28
PRGX Global, Inc.*		7		28
Liberator Medical Holdings, Inc.		8		28
Liberty Tax, Inc.		1		28
Performant Financial Corp.*		8		27
AcelRx Pharmaceuticals, Inc.*		7		27
Patriot National, Inc.*		2		25
Alliance One International, Inc.*		23		25
Vital Therapies, Inc.*		1		25
NanoViricides, Inc.*		11		25
Dicerna Pharmaceuticals, Inc.*		1		24
TransEnterix, Inc.*		8		23
Vitae Pharmaceuticals, Inc.*		2		23
Tokai Pharmaceuticals, Inc.*		2		23
Akebia Therapeutics, Inc.*		2		22
Alliance HealthCare Services, Inc.*		1		22
Entellus Medical, Inc.*		1		22
Kindred Biosciences, Inc.*		3		21
Lifeway Foods, Inc.*		1		21
TriVascular Technologies, Inc.*		2		21
Applied Genetic Technologies Corp.*		1		20
Achaogen, Inc.*		2		20
Pain Therapeutics, Inc.*		10		19
NeoStem, Inc.*		7		18
Adamas Pharmaceuticals, Inc.*		1		17
Actinium Pharmaceuticals, Inc.*		7		17
Female Health Co.		6		17
Galectin Therapeutics, Inc.*		5		17
Marrone Bio Innovations, Inc.*		4		15
Ohr Pharmaceutical, Inc.*		6		15
Care.com, Inc.*		2		15
Symmetry Surgical, Inc.*		2		15
Veracyte, Inc.*		2		15
Ardelyx, Inc.*		1		13
Egalet Corp.*		1		13
Second Sight Medical Products, Inc.*		1		13
Loxo Oncology, Inc.*		1		12
Genocea Biosciences, Inc.*		1		12
22nd Century Group, Inc.*		12		10
Cara Therapeutics, Inc.*		1		10
Eleven Biotherapeutics, Inc.*		1		9
PhotoMedex, Inc.*		3		6
Regado Biosciences, Inc.*		4		5
Roka Bioscience, Inc.*		1		3
Total Consumer, Non-cyclical				106,561
CONSUMER, CYCLICAL - 0.1%
Office Depot, Inc.*		142		1,306
Brunswick Corp.		25		1,286
JetBlue Airways Corp.*		66		1,270
Jack in the Box, Inc.		11		1,055
Vail Resorts, Inc.		10		1,034
Dana Holding Corp.		45		951
Tenneco, Inc.*		16		919
Buffalo Wild Wings, Inc.*		5		906
Wolverine World Wide, Inc.		27		903
Casey’s General Stores, Inc.		10		901
American Eagle Outfitters, Inc.		52		888
Watsco, Inc.		7		879
Pool Corp.		12		837
Restoration Hardware Holdings, Inc.*		8		793
Life Time Fitness, Inc.*		11		781
Allegiant Travel Co. — Class A		4		769
Cracker Barrel Old Country Store, Inc.		5		761
Skechers U.S.A., Inc. — Class A*		10		719
Texas Roadhouse, Inc. — Class A		19		692
Men’s Wearhouse, Inc.		13		679
HNI Corp.		12		662
Cooper Tire & Rubber Co.		15		643
Cheesecake Factory, Inc.		13		641
HSN, Inc.		9		614
TRI Pointe Homes, Inc.*		39		602
Lithia Motors, Inc. — Class A		6		595
Ryland Group, Inc.		12		585
Asbury Automotive Group, Inc.*		7		582
Pinnacle Entertainment, Inc.*		16		578
Steven Madden Ltd.*		15		570
Marriott Vacations Worldwide Corp.		7		568
G-III Apparel Group Ltd.*		5		563
Group 1 Automotive, Inc.		6		518
Mobile Mini, Inc.		12		511
Five Below, Inc.*		14		498
Papa John’s International, Inc.		8		494
ANN, Inc.*		12		492
Bloomin’ Brands, Inc.		20		487
Meritage Homes Corp.*		10		486
Select Comfort Corp.*		14		483
Burlington Stores, Inc.*		8		475
UniFirst Corp.		4		471
American Axle & Manufacturing Holdings, Inc.*		18		465

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Churchill Downs, Inc.		4	$	461
Gentherm, Inc.*		9		455
Herman Miller, Inc.		16		444
Sonic Corp.		14		444
Iconix Brand Group, Inc.*		13		438
DineEquity, Inc.		4		428
Genesco, Inc.*		6		427
Fiesta Restaurant Group, Inc.*		7		427
Columbia Sportswear Co.		7		426
PriceSmart, Inc.		5		425
Steelcase, Inc. — Class A		22		417
United Stationers, Inc.		10		410
Beacon Roofing Supply, Inc.*		13		407
Brown Shoe Company, Inc.		12		394
La-Z-Boy, Inc.		14		395
Core-Mark Holding Company, Inc.		6		386
Children’s Place, Inc.		6		385
Interface, Inc. — Class A		18		374
First Cash Financial Services, Inc.*		8		372
Express, Inc.*		22		364
G&K Services, Inc. — Class A		5		363
Popeyes Louisiana Kitchen, Inc.*		6		359
Buckle, Inc.		7		358
Pier 1 Imports, Inc.		25		350
Dorman Products, Inc.*		7		348
Red Robin Gourmet Burgers, Inc.*		4		348
KB Home		22		344
Hibbett Sports, Inc.*		7		343
Standard Pacific Corp.*		38		342
Krispy Kreme Doughnuts, Inc.*		17		340
Outerwall, Inc.		5		331
Vitamin Shoppe, Inc.*		8		330
Penn National Gaming, Inc.*		21		329
Meritor, Inc.*		26		328
ScanSource, Inc.*		8		325
Bob Evans Farms, Inc.		7		324
Belmond Ltd. — Class A*		26		319
Finish Line, Inc. — Class A		13		319
Knoll, Inc.		13		305
BJ’s Restaurants, Inc.*		6		303
Oxford Industries, Inc.		4		302
Diamond Resorts International, Inc.*		9		301
Boyd Gaming Corp.*		21		298
Guess?, Inc.		16		297
Interval Leisure Group, Inc.		11		288
MDC Holdings, Inc.		10		285
La Quinta Holdings, Inc.*		12		284
Mattress Firm Holding Corp.*		4		279
Cato Corp. — Class A		7		277
Sonic Automotive, Inc. — Class A		11		274
TiVo, Inc.*		25		265
Hawaiian Holdings, Inc.*		12		264
Denny’s Corp.*		23		262
Barnes & Noble, Inc.*		11		261
iRobot Corp.*		8		261
Wabash National Corp.*		18		253
Crocs, Inc.*		21		248
Rush Enterprises, Inc. — Class A*		9		246
National CineMedia, Inc.		16		242
Zumiez, Inc.*		6		242
Libbey, Inc.		6		239
Cooper-Standard Holding, Inc.*		4		237
International Speedway Corp. — Class A		7		228
Universal Electronics, Inc.*		4		225
Lumber Liquidators Holdings, Inc.*		7		215
Wesco Aircraft Holdings, Inc.*		14		214
AMC Entertainment Holdings, Inc. — Class A		6		213
Conn’s, Inc.*		7		212
Standard Motor Products, Inc.		5		211
SkyWest, Inc.		14		205
Carmike Cinemas, Inc.*		6		202
Callaway Golf Co.		21		200
H&E Equipment Services, Inc.		8		200
Regis Corp.*		12		196
Francesca’s Holdings Corp.*		11		196
Ethan Allen Interiors, Inc.		7		193
Tuesday Morning Corp.*		12		193
Steiner Leisure Ltd.*		4		190
MarineMax, Inc.*		7		186
Stage Stores, Inc.		8		183
Republic Airways Holdings, Inc.*		13		179
Remy International, Inc.		8		178
Modine Manufacturing Co.*		13		175
Fred’s, Inc. — Class A		10		171
DTS, Inc.*		5		170
Rentrak Corp.*		3		167
American Woodmark Corp.*		3		164
Cash America International, Inc.		7		163
Ruth’s Hospitality Group, Inc.		10		159
Cavco Industries, Inc.*		2		150
Winnebago Industries, Inc.		7		149
Caesars Entertainment Corp.*		14		147
Unifi, Inc.*		4		144
M/I Homes, Inc.*		6		143
Movado Group, Inc.		5		143
Motorcar Parts of America, Inc.*		5		139
Douglas Dynamics, Inc.		6		137
Scientific Games Corp. — Class A*		13		136
Pep Boys-Manny Moe & Jack*		14		135
Travelport Worldwide Ltd.		8		133
Tower International, Inc.*		5		133
William Lyon Homes — Class A*		5		129
EZCORP, Inc. — Class A*		14		128
Haverty Furniture Companies, Inc.		5		124
Beazer Homes USA, Inc.*		7		124
Nautilus, Inc.*		8		122
Virgin America, Inc.*		4		122
Del Frisco’s Restaurant Group, Inc.*		6		121

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Shoe Carnival, Inc.		4	$	118
ClubCorp Holdings, Inc.		6		116
Superior Industries International, Inc.		6		114
Titan International, Inc.		12		112
Hovnanian Enterprises, Inc. — Class A*		31		110
Arctic Cat, Inc.		3		109
America’s Car-Mart, Inc.*		2		109
Daktronics, Inc.		10		108
Citi Trends, Inc.*		4		108
Federal-Mogul Holdings Corp.*		8		106
Marcus Corp.		5		106
Eros International plc*		6		105
Shake Shack, Inc. — Class A*		2		100
Vera Bradley, Inc.*		6		97
Ruby Tuesday, Inc.*		16		96
Container Store Group, Inc.*		5		95
Kirkland’s, Inc.*		4		95
Kimball International, Inc. — Class B		9		94
Chuy’s Holdings, Inc.*		4		90
Winmark Corp.		1		88
Stein Mart, Inc.		7		87
Tile Shop Holdings, Inc.*		7		85
Isle of Capri Casinos, Inc.*		6		84
PetMed Express, Inc.		5		83
PC Connection, Inc.		3		78
Carrols Restaurant Group, Inc.*		9		75
Strattec Security Corp.		1		74
Jamba, Inc.*		5		74
Miller Industries, Inc.		3		74
Aeropostale, Inc.*		21		73
WCI Communities, Inc.*		3		72
Perry Ellis International, Inc.*		3		69
Speedway Motorsports, Inc.		3		68
Reading International, Inc. — Class A*		5		67
Titan Machinery, Inc.*		5		67
LGI Homes, Inc.*		4		67
Quiksilver, Inc.*		36		67
Zoe’s Kitchen, Inc.*		2		67
Big 5 Sporting Goods Corp.		5		66
Habit Restaurants, Inc. — Class A*		2		64
Morgans Hotel Group Co.*		8		62
Dave & Buster’s Entertainment, Inc.*		2		61
Destination Maternity Corp.		4		60
Weyco Group, Inc.		2		60
Build-A-Bear Workshop, Inc. — Class A*		3		59
Bravo Brio Restaurant Group, Inc.*		4		59
Freshpet, Inc.*		3		58
Monarch Casino & Resort, Inc.*		3		57
Black Diamond, Inc.*		6		57
Skullcandy, Inc.*		5		57
Vince Holding Corp.*		3		56
Christopher & Banks Corp.*		10		56
Potbelly Corp.*		4		55
Nathan’s Famous, Inc.		1		54
Metaldyne Performance Group, Inc.		3		54
Culp, Inc.		2		54
NACCO Industries, Inc. — Class A		1		53
Noodles & Co.*		3		52
Escalade, Inc.		3		52
El Pollo Loco Holdings, Inc.*		2		51
Norcraft Companies, Inc.*		2		51
Roundy’s, Inc.*		10		49
Houston Wire & Cable Co.		5		49
AV Homes, Inc.*		3		48
Boot Barn Holdings, Inc.*		2		48
Tilly’s, Inc. — Class A*		3		47
Malibu Boats, Inc. — Class A*		2		47
Accuride Corp.*		10		47
West Marine, Inc.*		5		46
Fox Factory Holding Corp.*		3		46
Lifetime Brands, Inc.		3		46
VOXX International Corp. — Class A*		5		46
Commercial Vehicle Group, Inc.*		7		45
Destination XL Group, Inc.*		9		44
Fuel Systems Solutions, Inc.*		4		44
Spartan Motors, Inc.		9		44
Installed Building Products, Inc.*		2		44
Sequential Brands Group, Inc.*		4		43
LeapFrog Enterprises, Inc. — Class A*		17		37
Systemax, Inc.*		3		37
Papa Murphy’s Holdings, Inc.*		2		36
Dixie Group, Inc.*		4		36
Pacific Sunwear of California, Inc.*		13		36
Intrawest Resorts Holdings, Inc.*		4		35
JAKKS Pacific, Inc.*		5		34
Johnson Outdoors, Inc. — Class A		1		33
New Home Company, Inc.*		2		32
Flexsteel Industries, Inc.		1		31
Gaiam, Inc. — Class A*		4		29
bebe stores, Inc.		8		29
Famous Dave’s of America, Inc.*		1		29
Bon-Ton Stores, Inc.		4		28
Marine Products Corp.		3		26
Sportsman’s Warehouse Holdings, Inc.*		3		24
Sears Hometown and Outlet Stores, Inc.*		3		23
New York & Company, Inc.*		8		20
Flex Pharma, Inc.*		1		20
Century Communities, Inc.*		1		19
Empire Resorts, Inc.*		4		18
hhgregg, Inc.*		3		18
UCP, Inc. — Class A*		2		17
Ignite Restaurant Group, Inc.*		2		10
Speed Commerce, Inc.*		13		8
Total Consumer, Cyclical				65,714
INDUSTRIAL - 0.1%
Graphic Packaging Holding Co.		87		1,265
Cognex Corp.*		23		1,140

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

		Shares		Value
Belden, Inc.			12	$	1,122
HEICO Corp.			18		1,098
Curtiss-Wright Corp.			13		960
Teledyne Technologies, Inc.*			9		960
Woodward, Inc.			18		918
Esterline Technologies Corp.*			8		914
Generac Holdings, Inc.*			18		876
Berry Plastics Group, Inc.*			24		868
CLARCOR, Inc.			13		858
FEI Co.			11		840
Moog, Inc. — Class A*			11		826
EMCOR Group, Inc.			17		789
EnerSys			12		771
KapStone Paper and Packaging Corp.			22		722
Polypore International, Inc.*			12		707
XPO Logistics, Inc.*			14		638
Louisiana-Pacific Corp.*			37		610
Swift Transportation Co. — Class A*			23		599
Littelfuse, Inc.			6		597
Barnes Group, Inc.			14		567
Mueller Industries, Inc.			15		542
Masonite International Corp.*			8		537
Rexnord Corp.*			20		534
Sanmina Corp.*			22		533
Hillenbrand, Inc.			17		525
Knight Transportation, Inc.	��		16		517
Universal Display Corp.*			11		514
Applied Industrial Technologies, Inc.			11		499
Franklin Electric Company, Inc.			13		496
Trex Company, Inc.*			9		490
Methode Electronics, Inc.			10		470
Matson, Inc.			11		464
RBC Bearings, Inc.			6		459
Coherent, Inc.*			7		455
Watts Water Technologies, Inc. — Class A			8		440
Dycom Industries, Inc.*			9		439
Forward Air Corp.			8		434
Proto Labs, Inc.*			6		420
Mueller Water Products, Inc. — Class A			42		414
Simpson Manufacturing Company, Inc.			11		411
Rogers Corp.*			5		411
Greenbrier Companies, Inc.			7		407
Scorpio Tankers, Inc.			43		404
MSA Safety, Inc.			8		399
EnPro Industries, Inc.			6		396
Hub Group, Inc. — Class A*			10		393
Tetra Tech, Inc.			16		384
Actuant Corp. — Class A			16		380
Werner Enterprises, Inc.			12		377
Boise Cascade Co.*			10		375
OSI Systems, Inc.*			5		371
GenCorp, Inc.*			16		371
TriMas Corp.*			12		369
Drew Industries, Inc.			6		369
Astronics Corp.*			5		369
Brady Corp. — Class A			13		368
Plexus Corp.*			9		367
TAL International Group, Inc.			9		367
Itron, Inc.*			10		365
Harsco Corp.			21		362
Granite Construction, Inc.			10		351
Headwaters, Inc.*			19		348
Apogee Enterprises, Inc.			8		346
AAR Corp.			11		338
TASER International, Inc.*			14		338
Benchmark Electronics, Inc.*			14		336
Heartland Express, Inc.			14		333
MasTec, Inc.*			17		328
Tennant Co.			5		327
AZZ, Inc.			7		326
FARO Technologies, Inc.*			5		311
Saia, Inc.*			7		310
Atlas Air Worldwide Holdings, Inc.*			7		301
US Ecology, Inc.			6		300
Kaman Corp.			7		297
UTI Worldwide, Inc.*			24		295
Fluidigm Corp.*			7		295
RTI International Metals, Inc.*			8		287
Nordic American Tankers Ltd.			24		285
John Bean Technologies Corp.			8		286
Advanced Energy Industries, Inc.*			11		282
Chart Industries, Inc.*			8		281
Albany International Corp. — Class A			7		278
Universal Forest Products, Inc.			5		277
CIRCOR International, Inc.			5		274
ESCO Technologies, Inc.			7		273
AAON, Inc.			11		270
Federal Signal Corp.			17		268
Exponent, Inc.			3		267
ArcBest Corp.			7		265
Cubic Corp.			5		259
II-VI, Inc.*			14		258
Sun Hydraulics Corp.			6		248
Sturm Ruger & Company, Inc.			5		248
Briggs & Stratton Corp.			12		246
Standex International Corp.			3		246
Badger Meter, Inc.			4		240
Ship Finance International Ltd.			16		237
Tutor Perini Corp.*			10		234
Lindsay Corp.			3		229
General Cable Corp.			13		224
Hyster-Yale Materials Handling, Inc.			3		220
Astec Industries, Inc.			5		214
GasLog Ltd.			11		214
Comfort Systems USA, Inc.			10		210
Newport Corp.*			11		210
LSB Industries, Inc.*			5		207
Raven Industries, Inc.			10		205

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Altra Industrial Motion Corp.		7	$	193
Griffon Corp.		11		192
Smith & Wesson Holding Corp.*		15		191
Encore Wire Corp.		5		189
Hornbeck Offshore Services, Inc.*		10		189
MYR Group, Inc.*		6		188
Aegion Corp. — Class A*		10		181
Textainer Group Holdings Ltd.		6		180
Quanex Building Products Corp.		9		178
Roadrunner Transportation Systems, Inc.*		7		177
Nortek, Inc.*		2		177
DHT Holdings, Inc.		25		175
Fabrinet*		9		171
Rofin-Sinar Technologies, Inc.*		7		170
Blount International, Inc.*		13		167
Echo Global Logistics, Inc.*		6		164
Celadon Group, Inc.		6		163
CTS Corp.		9		162
Lydall, Inc.*		5		159
Kadant, Inc.		3		158
Gorman-Rupp Co.		5		150
American Railcar Industries, Inc.		3		149
GP Strategies Corp.*		4		148
PGT, Inc.*		13		145
YRC Worldwide, Inc.*		8		144
LB Foster Co. — Class A		3		142
Tredegar Corp.		7		141
Marten Transport Ltd.		6		139
US Concrete, Inc.*		4		136
Columbus McKinnon Corp.		5		135
Haynes International, Inc.		3		134
Aerovironment, Inc.*		5		133
DXP Enterprises, Inc.*		3		132
Gibraltar Industries, Inc.*		8		131
Park Electrochemical Corp.		6		129
Air Transport Services Group, Inc.*		14		129
Alamo Group, Inc.		2		126
TTM Technologies, Inc.*		14		126
NN, Inc.		5		125
Patrick Industries, Inc.*		2		125
Myers Industries, Inc.		7		123
NCI Building Systems, Inc.*		7		121
GrafTech International Ltd.*		31		121
Teekay Tankers Ltd. — Class A		21		121
Advanced Drainage Systems, Inc.		4		120
Checkpoint Systems, Inc.		11		119
Argan, Inc.		3		109
Insteel Industries, Inc.		5		108
GSI Group, Inc.*		8		107
Park-Ohio Holdings Corp.		2		105
Era Group, Inc.*		5		104
Kimball Electronics, Inc.*		7		99
CAI International, Inc.*		4		98
American Science & Engineering, Inc.		2		98
FreightCar America, Inc.		3		94
Global Brass & Copper Holdings, Inc.		6		93
Knightsbridge Shipping Ltd.		18		90
Navios Maritime Holdings, Inc.		21		88
Chase Corp.		2		87
Scorpio Bulkers, Inc.*		36		85
VSE Corp.		1		82
Builders FirstSource, Inc.*		12		80
Stoneridge, Inc.*		7		79
PowerSecure International, Inc.*		6		79
Furmanite Corp.*		10		79
Ply Gem Holdings, Inc.*		6		78
Navios Maritime Acquisition Corp.		22		78
Ducommun, Inc.*		3		78
Mistras Group, Inc.*		4		77
Sparton Corp.*		3		74
Quality Distribution, Inc.*		7		72
Stock Building Supply Holdings, Inc.*		4		72
Mesa Laboratories, Inc.		1		72
Graham Corp.		3		72
NVE Corp.		1		69
Northwest Pipe Co.*		3		69
Continental Building Products, Inc.*		3		68
Powell Industries, Inc.		2		68
Kratos Defense & Security Solutions, Inc.*		12		66
Global Power Equipment Group, Inc.		5		66
Hurco Companies, Inc.		2		66
Power Solutions International, Inc.*		1		64
CECO Environmental Corp.		6		64
National Presto Industries, Inc.		1		63
Orion Marine Group, Inc.*		7		62
Vicor Corp.*		4		61
Trinseo S.A.*		3		59
PAM Transportation Services, Inc.*		1		57
Bel Fuse, Inc. — Class B		3		57
Capstone Turbine Corp.*		87		57
Applied Optoelectronics, Inc.*		4		56
USA Truck, Inc.*		2		55
AEP Industries, Inc.*		1		55
Casella Waste Systems, Inc. — Class A*		10		55
Dynamic Materials Corp.		4		51
Universal Truckload Services, Inc.		2		50
Ardmore Shipping Corp.		5		50
KEMET Corp.*		12		50
LSI Industries, Inc.		6		49
Xerium Technologies, Inc.*		3		49
Vishay Precision Group, Inc.*		3		48
Nordic American Offshore Ltd.		5		46
UFP Technologies, Inc.*		2		46
Frontline Ltd.*		19		43
Handy & Harman Ltd.*		1		41
Manitex International, Inc.*		4		39
Electro Scientific Industries, Inc.		6		37
Intevac, Inc.*		6		37

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
LMI Aerospace, Inc.*		3	$	37
Multi-Fineline Electronix, Inc.*		2		37
Control4 Corp.*		3		36
Safe Bulkers, Inc.		10		36
Twin Disc, Inc.		2		35
Heritage-Crystal Clean, Inc.*		3		35
Ampco-Pittsburgh Corp.		2		35
CUI Global, Inc.*		5		29
Imprivata, Inc.*		2		28
Olympic Steel, Inc.		2		27
Dorian LPG Ltd.*		2		26
Energy Recovery, Inc.*		10		26
Omega Flex, Inc.		1		25
Layne Christensen Co.*		5		25
Patriot Transportation Holding, Inc.*		1		25
International Shipholding Corp.		2		24
General Finance Corp.*		3		24
Sterling Construction Company, Inc.*		5		23
SIFCO Industries, Inc.		1		22
Baltic Trading Ltd.		13		19
AM Castle & Co.*		5		18
Viasystems Group, Inc.*		1		17
NL Industries, Inc.*		2		16
CHC Group Ltd.*		9		12
Revolution Lighting Technologies, Inc.*		10		11
Ultrapetrol Bahamas Ltd.*		6		9
Erickson, Inc.*		2		9
Aspen Aerogels, Inc.*		1		7
ARC Group Worldwide, Inc.*		1		5
Quest Resource Holding Corp.*		4		5
Turtle Beach Corp.*		2		4
TCP International Holdings Ltd.*		2		4
Total Industrial				61,033
TECHNOLOGY - 0.1%
Ultimate Software Group, Inc.*		8		1,360
MAXIMUS, Inc.		18		1,201
Cypress Semiconductor Corp.		81		1,142
SS&C Technologies Holdings, Inc.		18		1,121
Tyler Technologies, Inc.*		9		1,085
Manhattan Associates, Inc.*		20		1,012
Cavium, Inc.*		14		990
Verint Systems, Inc.*		16		991
Guidewire Software, Inc.*		18		947
Aspen Technology, Inc.*		24		924
Microsemi Corp.*		25		884
Synaptics, Inc.*		10		813
Fair Isaac Corp.		9		798
Qlik Technologies, Inc.*		24		747
Integrated Device Technology, Inc.*		35		700
Medidata Solutions, Inc.*		14		686
ACI Worldwide, Inc.*		30		650
Mentor Graphics Corp.		26		625
SYNNEX Corp.		8		618
Advent Software, Inc.		14		618
Convergys Corp.		27		617
Silicon Laboratories, Inc.*		12		609
Ambarella, Inc.*		8		606
Proofpoint, Inc.*		10		592
Blackbaud, Inc.		12		569
CommVault Systems, Inc.*		13		568
Science Applications International Corp.		11		564
Tessera Technologies, Inc.		14		565
Fairchild Semiconductor International, Inc. — Class A*		31		564
Take-Two Interactive Software, Inc.*		22		560
EPAM Systems, Inc.*		9		552
CACI International, Inc. — Class A*		6		540
Dealertrack Technologies, Inc.*		14		538
Cirrus Logic, Inc.*		16		532
Monolithic Power Systems, Inc.		10		527
Entegris, Inc.*		37		507
Envestnet, Inc.*		9		505
Electronics for Imaging, Inc.*		12		501
Demandware, Inc.*		8		487
Intersil Corp. — Class A		34		487
Semtech Corp.*		18		480
MKS Instruments, Inc.		14		473
FleetMatics Group plc*		10		449
NetScout Systems, Inc.*		10		439
Synchronoss Technologies, Inc.*		9		427
PMC-Sierra, Inc.*		46		427
IGATE Corp.*		10		427
Power Integrations, Inc.		8		417
Syntel, Inc.*		8		414
Cornerstone OnDemand, Inc.*		14		404
OmniVision Technologies, Inc.*		15		396
Progress Software Corp.*		14		380
Rambus, Inc.*		30		377
Acxiom Corp.*		20		370
Infoblox, Inc.*		15		358
Omnicell, Inc.*		10		351
QLogic Corp.*		23		339
MicroStrategy, Inc. — Class A*		2		338
Veeco Instruments, Inc.*		11		336
ExlService Holdings, Inc.*		9		335
Monotype Imaging Holdings, Inc.		10		326
Unisys Corp.*		14		325
Insight Enterprises, Inc.*		11		314
Cray, Inc.*		11		309
Constant Contact, Inc.*		8		306
MTS Systems Corp.		4		303
MedAssets, Inc.*		16		301
Cabot Microelectronics Corp.*		6		300
Imperva, Inc.*		7		299
Super Micro Computer, Inc.*		9		299
Virtusa Corp.*		7		290

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
InvenSense, Inc. — Class A*		19	$	289
Diodes, Inc.*		10		286
RealPage, Inc.*		14		282
Bottomline Technologies de, Inc.*		10		274
CSG Systems International, Inc.		9		274
SPS Commerce, Inc.*		4		268
BroadSoft, Inc.*		8		268
Sykes Enterprises, Inc.*		10		249
Qualys, Inc.*		5		232
Kofax Ltd.*		20		219
Ebix, Inc.		7		213
Brooks Automation, Inc.		18		209
Quality Systems, Inc.		13		208
ManTech International Corp. — Class A		6		204
Amkor Technology, Inc.*		23		203
Lattice Semiconductor Corp.*		31		197
Pegasystems, Inc.		9		196
AVG Technologies N.V.*		9		195
Micrel, Inc.		12		181
Callidus Software, Inc.*		14		178
inContact, Inc.*		16		174
Actua Corp.*		11		170
Interactive Intelligence Group, Inc.*		4		165
Computer Programs & Systems, Inc.		3		163
Photronics, Inc.*		18		153
Emulex Corp.*		19		151
Engility Holdings, Inc.		5		150
M/A-COM Technology Solutions Holdings, Inc.*		4		149
PROS Holdings, Inc.*		6		148
Epiq Systems, Inc.		8		143
PDF Solutions, Inc.*		8		143
LivePerson, Inc.*		14		143
Integrated Silicon Solution, Inc.		8		143
Inphi Corp.*		8		143
RealD, Inc.*		11		141
Cvent, Inc.*		5		140
Mercury Systems, Inc.*		9		140
Tangoe, Inc.*		10		138
FormFactor, Inc.*		15		133
CEVA, Inc.*		6		128
TeleTech Holdings, Inc.		5		127
Xcerra Corp.*		14		124
Ultratech, Inc.*		7		121
Glu Mobile, Inc.*		24		120
SciQuest, Inc.*		7		119
Rally Software Development Corp.*		7		110
Applied Micro Circuits Corp.*		21		107
Luxoft Holding, Inc.*		2		103
Nanometrics, Inc.*		6		101
Exar Corp.*		10		101
Rudolph Technologies, Inc.*		9		99
Eastman Kodak Co.*		5		95
Pericom Semiconductor Corp.		6		93
Quantum Corp.*		58		93
Ciber, Inc.*		21		87
Merge Healthcare, Inc.*		19		85
Dot Hill Systems Corp.*		16		85
Silver Spring Networks, Inc.*		9		80
HubSpot, Inc.*		2		80
Vitesse Semiconductor Corp.*		15		80
Violin Memory, Inc.*		21		79
Silicon Graphics International Corp.*		9		78
Barracuda Networks, Inc.*		2		77
2U, Inc.*		3		77
Cohu, Inc.		7		77
KEYW Holding Corp.*		9		74
IXYS Corp.		6		74
Immersion Corp.*		8		73
DSP Group, Inc.*		6		72
American Software, Inc. — Class A		7		72
Carbonite, Inc.*		5		72
Axcelis Technologies, Inc.*		30		71
Entropic Communications, Inc.*		24		71
Seachange International, Inc.*		9		71
New Relic, Inc.*		2		69
Brightcove, Inc.*		9		66
Maxwell Technologies, Inc.*		8		64
Paycom Software, Inc.*		2		64
Kopin Corp.*		18		63
InnerWorkings, Inc.*		9		60
Datalink Corp.*		5		60
Digi International, Inc.*		6		60
Model N, Inc.*		5		60
Vocera Communications, Inc.*		6		60
Sapiens International Corporation N.V.*		7		57
Ultra Clean Holdings, Inc.*		8		57
MaxLinear, Inc. — Class A*		7		57
Jive Software, Inc.*		11		56
Alpha & Omega Semiconductor Ltd.*		6		53
Mavenir Systems, Inc.*		3		53
QAD, Inc. — Class A		2		48
Hortonworks, Inc.*		2		48
Rosetta Stone, Inc.*		6		46
Nimble Storage, Inc.*		2		45
Digimarc Corp.		2		44
Globant S.A.*		2		42
Park City Group, Inc.*		3		41
ExOne Co.*		3		41
Cascade Microtech, Inc.*		3		41
Agilysys, Inc.*		4		39
Benefitfocus, Inc.*		1		37
Computer Task Group, Inc.		4		29
QuickLogic Corp.*		15		29
Workiva, Inc.*		2		29
MobileIron, Inc.*		3		28
Rubicon Technology, Inc.*		7		28
Guidance Software, Inc.*		5		27
Everyday Health, Inc.*		2		26

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Varonis Systems, Inc.*		1	$	26
Castlight Health, Inc. — Class B*		3		23
OPOWER, Inc.*		2		20
Amber Road, Inc.*		2		19
Audience, Inc.*		4		18
Five9, Inc.*		3		17
A10 Networks, Inc.*		3		13
Total Technology				52,605
COMMUNICATIONS - 0.1%
Qorvo, Inc.*		38		3,029
j2 Global, Inc.		13		855
Aruba Networks, Inc.*		28		687
DigitalGlobe, Inc.*		20		681
Houghton Mifflin Harcourt Co.*		29		681
ViaSat, Inc.*		11		657
Time, Inc.		29		651
Infinera Corp.*		33		649
Plantronics, Inc.		11		582
Finisar Corp.*		27		576
Sinclair Broadcast Group, Inc. — Class A		18		565
Meredith Corp.		10		558
Ciena Corp.*		28		541
Anixter International, Inc.*		7		533
New York Times Co. — Class A		37		509
InterDigital, Inc.		10		507
Polycom, Inc.*		37		496
comScore, Inc.*		9		462
Nexstar Broadcasting Group, Inc. — Class A		8		458
Shutterfly, Inc.*		10		451
WebMD Health Corp. — Class A*		10		439
Cogent Communications Holdings, Inc.		12		424
NeuStar, Inc. — Class A*		15		369
Media General, Inc.*		21		346
West Corp.		10		337
LogMeIn, Inc.*		6		337
MDC Partners, Inc. — Class A		11		312
NIC, Inc.		17		301
NETGEAR, Inc.*		9		296
New Media Investment Group, Inc.		12		287
Scholastic Corp.		7		287
Gogo, Inc.*		15		286
Shutterstock, Inc.*		4		275
Stamps.com, Inc.*		4		269
Web.com Group, Inc.*		14		265
Consolidated Communications Holdings, Inc.		13		265
ADTRAN, Inc.		14		261
Globalstar, Inc.*		73		243
Ubiquiti Networks, Inc.		8		236
EW Scripps Co. — Class A*		8		228
Vonage Holdings Corp.*		46		226
Ruckus Wireless, Inc.*		17		219
Loral Space & Communications, Inc.*		3		205
Bankrate, Inc.*		18		204
Iridium Communications, Inc.*		21		204
8x8, Inc.*		24		202
Cincinnati Bell, Inc.*		56		198
Shenandoah Telecommunications Co.		6		187
Perficient, Inc.*		9		186
Ixia*		15		182
Gray Television, Inc.*		13		180
Marketo, Inc.*		7		179
Journal Communications, Inc. — Class A*		12		178
VASCO Data Security International, Inc.*		8		172
Harmonic, Inc.*		23		170
Orbitz Worldwide, Inc.*		14		163
CalAmp Corp.*		10		162
Chegg, Inc.*		20		159
General Communication, Inc. — Class A*		10		158
Endurance International Group Holdings, Inc.*		8		152
HealthStream, Inc.*		6		151
Blucora, Inc.*		11		150
FTD Companies, Inc.*		5		150
Global Eagle Entertainment, Inc.*		11		146
RetailMeNot, Inc.*		8		144
Lands’ End, Inc.*		4		144
Internap Corp.*		14		143
Inteliquent, Inc.		9		142
Atlantic Tele-Network, Inc.		2		138
Textura Corp.*		5		136
Gigamon, Inc.*		6		127
Premiere Global Services, Inc.*		13		124
XO Group, Inc.*		7		124
EarthLink Holdings Corp.		27		120
Comverse, Inc.*		6		119
ShoreTel, Inc.*		17		116
Comtech Telecommunications Corp.		4		116
Spok Holdings, Inc.		6		115
World Wrestling Entertainment, Inc. — Class A		8		112
RingCentral, Inc. — Class A*		7		107
FairPoint Communications, Inc.*		6		106
Intralinks Holdings, Inc.*		10		103
Sonus Networks, Inc.*		13		102
Harte-Hanks, Inc.		13		101
Lionbridge Technologies, Inc.*		17		97
Wayfair, Inc. — Class A*		3		96
Blue Nile, Inc.*		3		96
Entravision Communications Corp. — Class A		15		95
Cumulus Media, Inc. — Class A*		38		94
Calix, Inc.*		11		92
GrubHub, Inc.*		2		91
Safeguard Scientifics, Inc.*		5		90
ORBCOMM, Inc.*		15		90
Dice Holdings, Inc.*		10		89
ePlus, Inc.*		1		87
RigNet, Inc.*		3		86
Entercom Communications Corp. — Class A*		7		85

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Intelsat S.A.*		7	$	84
Black Box Corp.		4		84
1-800-Flowers.com, Inc. — Class A*		7		83
Extreme Networks, Inc.*		26		82
Hawaiian Telcom Holdco, Inc.*		3		80
Wix.com Ltd.*		4		77
Lumos Networks Corp.		5		76
GTT Communications, Inc.*		4		76
EVINE Live, Inc.*		11		74
Bazaarvoice, Inc.*		13		73
Overstock.com, Inc.*		3		73
IDT Corp. — Class B		4		71
Angie’s List, Inc.*		12		70
Liquidity Services, Inc.*		7		69
Zendesk, Inc.*		3		68
VirnetX Holding Corp.*		11		67
Q2 Holdings, Inc.*		3		63
Zix Corp.*		16		63
KVH Industries, Inc.*		4		60
Box, Inc. — Class A*		3		59
Limelight Networks, Inc.*		16		58
Telenav, Inc.*		7		55
QuinStreet, Inc.*		9		54
Alliance Fiber Optic Products, Inc.		3		52
Martha Stewart Living Omnimedia, Inc. — Class A*		8		52
Reis, Inc.		2		51
Central European Media Enterprises Ltd. — Class A*		19		51
TeleCommunication Systems, Inc. — Class A*		13		50
Oclaro, Inc.*		25		50
Tessco Technologies, Inc.		2		49
ChannelAdvisor Corp.*		5		48
Procera Networks, Inc.*		5		47
TechTarget, Inc.*		4		46
Rocket Fuel, Inc.*		5		46
Numerex Corp. — Class A*		4		46
Boingo Wireless, Inc.*		6		45
Saga Communications, Inc. — Class A		1		45
Clearfield, Inc.*		3		44
Lee Enterprises, Inc.*		14		44
Marin Software, Inc.*		7		44
Sizmek, Inc.*		6		44
Preformed Line Products Co.		1		42
AH Belo Corp. — Class A		5		41
RealNetworks, Inc.*		6		40
ModusLink Global Solutions, Inc.*		10		39
Marchex, Inc. — Class B		9		37
Crown Media Holdings, Inc. — Class A*		9		36
Rubicon Project, Inc.*		2		36
TrueCar, Inc.*		2		36
Coupons.com, Inc.*		3		35
magicJack VocalTec Ltd.*		5		34
Cinedigm Corp. — Class A*		20		32
McClatchy Co. — Class A*		16		29
Millennial Media, Inc.*		20		29
Cyan, Inc.*		7		28
Yodlee, Inc.*		2		27
YuMe, Inc.*		5		26
Townsquare Media, Inc. — Class A*		2		26
Hemisphere Media Group, Inc.*		2		25
Global Sources Ltd.*		4		23
ParkerVision, Inc.*		26		22
Tremor Video, Inc.*		9		21
Connecture, Inc.*		2		21
Covisint Corp.*		10		20
Rightside Group Ltd.*		2		20
Travelzoo, Inc.*		2		19
NTELOS Holdings Corp.		4		19
Radio One, Inc. — Class D*		6		18
Salem Media Group, Inc. — Class A		3		18
Dex Media, Inc.*		4		17
Unwired Planet, Inc.*		26		15
TubeMogul, Inc.*		1		14
Aerohive Networks, Inc.*		3		13
Vringo, Inc.*		19		12
Borderfree, Inc.*		2		12
ReachLocal, Inc.*		4		12
Demand Media, Inc.*		2		11
Total Communications				31,479
UTILITIES - 0.0%
Dynegy, Inc.*		33		1,038
Cleco Corp.		16		872
IDACORP, Inc.		13		817
WGL Holdings, Inc.		14		790
Portland General Electric Co.		21		779
Piedmont Natural Gas Company, Inc.		21		775
UIL Holdings Corp.		15		771
Southwest Gas Corp.		12		698
New Jersey Resources Corp.		22		683
NorthWestern Corp.		12		646
ALLETE, Inc.		12		633
PNM Resources, Inc.		21		613
Black Hills Corp.		12		605
ONE Gas, Inc.		14		605
Laclede Group, Inc.		11		563
Avista Corp.		16		547
South Jersey Industries, Inc.		9		489
El Paso Electric Co.		11		425
American States Water Co.		10		398
MGE Energy, Inc.		9		399
Ormat Technologies, Inc.		9		342
Northwest Natural Gas Co.		7		336
Otter Tail Corp.		10		322
California Water Service Group		13		319
NRG Yield, Inc. — Class A		6		304

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Empire District Electric Co.		11	$	273
Abengoa Yield plc		8		270
Chesapeake Utilities Corp.		4		202
Unitil Corp.		4		139
SJW Corp.		4		124
Connecticut Water Service, Inc.		3		109
PICO Holdings, Inc.*		6		97
Middlesex Water Co.		4		91
Atlantic Power Corp.		32		90
EnerNOC, Inc.*		7		80
York Water Co.		3		73
Artesian Resources Corp. — Class A		2		43
Ameresco, Inc. — Class A*		5		37
Spark Energy, Inc. — Class A		1		15
Total Utilities				16,412
ENERGY - 0.0%
Diamondback Energy, Inc.*		12		921
SemGroup Corp. — Class A		11		895
Carrizo Oil & Gas, Inc.*		14		695
Western Refining, Inc.		13		642
Delek US Holdings, Inc.		16		636
PDC Energy, Inc.*		11		594
Exterran Holdings, Inc.		16		537
Bristow Group, Inc.		9		490
Helix Energy Solutions Group, Inc.*		28		419
Matador Resources Co.*		19		416
SEACOR Holdings, Inc.*		5		348
Rosetta Resources, Inc.*		20		340
Pattern Energy Group, Inc.		12		340
Forum Energy Technologies, Inc.*		16		314
TerraForm Power, Inc. — Class A		8		292
Green Plains, Inc.		10		286
SunCoke Energy, Inc.		18		268
Synergy Resources Corp.*		22		261
Bonanza Creek Energy, Inc.*		10		247
McDermott International, Inc.*		63		242
Parsley Energy, Inc. — Class A*		14		224
Stone Energy Corp.*		15		220
Newpark Resources, Inc.*		23		210
Flotek Industries, Inc.*		14		206
Thermon Group Holdings, Inc.*		8		192
Sanchez Energy Corp.*,1		14		182
RSP Permian, Inc.*		7		176
Primoris Services Corp.		10		172
CARBO Ceramics, Inc.		5		153
Magnum Hunter Resources Corp.*		53		142
Callon Petroleum Co.*		18		134
C&J Energy Services Ltd.*		12		134
TETRA Technologies, Inc.*		21		130
Northern Oil and Gas, Inc.*		16		123
Matrix Service Co.*		7		123
REX American Resources Corp.*		2		122
Alon USA Energy, Inc.		7		116
Plug Power, Inc.*		44		114
Parker Drilling Co.*		32		112
Penn Virginia Corp.*		17		110
Contango Oil & Gas Co.*		5		110
Bill Barrett Corp.*		13		108
Westmoreland Coal Co.*		4		107
Halcon Resources Corp.*		69		106
Tesco Corp.		9		102
Clean Energy Fuels Corp.*		19		101
Clayton Williams Energy, Inc.*		2		101
Cloud Peak Energy, Inc.*		16		93
Pioneer Energy Services Corp.*		17		92
Gulfmark Offshore, Inc. — Class A		7		91
Energy XXI Ltd.		25		91
Triangle Petroleum Corp.*		18		91
PHI, Inc.*		3		90
Renewable Energy Group, Inc.*		9		83
Abraxas Petroleum Corp.*		25		81
Panhandle Oil and Gas, Inc. — Class A		4		79
FuelCell Energy, Inc.*		62		78
ION Geophysical Corp.*		34		74
EXCO Resources, Inc.		40		73
Adams Resources & Energy, Inc.		1		67
Enphase Energy, Inc.*		5		66
Approach Resources, Inc.*		10		66
Pacific Ethanol, Inc.*		6		65
Key Energy Services, Inc.*		35		64
FutureFuel Corp.		6		62
Trecora Resources*		5		61
Vivint Solar, Inc.*		5		61
Gulf Island Fabrication, Inc.		4		59
Alpha Natural Resources, Inc.*		59		59
Natural Gas Services Group, Inc.*		3		58
Solazyme, Inc.*		20		57
Arch Coal, Inc.*		56		56
Basic Energy Services, Inc.*		8		55
FMSA Holdings, Inc.*		7		51
Gastar Exploration, Inc.*		19		50
Geospace Technologies Corp.*		3		50
Rex Energy Corp.*		13		48
Comstock Resources, Inc.		13		46
W&T Offshore, Inc.		9		46
Eclipse Resources Corp.*		8		45
Goodrich Petroleum Corp.*		12		43
PetroQuest Energy, Inc.*		16		37
Willbros Group, Inc.*		11		36
Jones Energy, Inc. — Class A*		4		36
Hallador Energy Co.		3		35
TransAtlantic Petroleum Ltd.*		6		32
VAALCO Energy, Inc.*		13		32
Evolution Petroleum Corp.		5		30
Swift Energy Co.*		12		26
North Atlantic Drilling Ltd.		19		22

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
Independence Contract Drilling, Inc.*		3	$	21
Hercules Offshore, Inc.*		43		18
Vantage Drilling Co.*		55		18
Warren Resources, Inc.*		20		18
FX Energy, Inc.*		14		18
Amyris, Inc.*		7		17
Emerald Oil, Inc.*		21		16
Nuverra Environmental Solutions, Inc.*		4		14
Mitcham Industries, Inc.*		3		14
Resolute Energy Corp.*		21		12
Vertex Energy, Inc.*		3		11
Walter Energy, Inc.		17		11
Midstates Petroleum Company, Inc.*		10		9
Glori Energy, Inc.*		3		6
Profire Energy, Inc.*		4		5
Miller Energy Resources, Inc.*		8		5
Harvest Natural Resources, Inc.*		11		5
American Eagle Energy Corp.*		8		1
Total Energy				15,769
BASIC MATERIALS - 0.0%
PolyOne Corp.		24		896
Sensient Technologies Corp.		13		895
Axiall Corp.		19		892
Olin Corp.		21		673
Minerals Technologies, Inc.		9		658
HB Fuller Co.		13		557
Chemtura Corp.*		19		519
Commercial Metals Co.		31		502
US Silica Holdings, Inc.		14		499
Balchem Corp.		8		443
Stillwater Mining Co.*		32		414
A. Schulman, Inc.		8		386
Kaiser Aluminum Corp.		5		384
Worthington Industries, Inc.		14		373
Schweitzer-Mauduit International, Inc.		8		369
Quaker Chemical Corp.		4		343
Innophos Holdings, Inc.		6		338
Clearwater Paper Corp.*		5		327
Tronox Ltd. — Class A		16		325
Globe Specialty Metals, Inc.		17		322
PH Glatfelter Co.		11		303
Calgon Carbon Corp.		14		295
Resolute Forest Products, Inc.*		17		293
Hecla Mining Co.		98		292
Innospec, Inc.		6		278
Neenah Paper, Inc.		4		250
OM Group, Inc.		8		240
Ferro Corp.*		19		238
AK Steel Holding Corp.*		47		210
Stepan Co.		5		208
Deltic Timber Corp.		3		199
Century Aluminum Co.*		14		193
Materion Corp.		5		192
Horsehead Holding Corp.*		15		190
Kraton Performance Polymers, Inc.*		9		182
Aceto Corp.		8		176
Intrepid Potash, Inc.*		15		173
Coeur Mining, Inc.*		27		127
Hawkins, Inc.		3		114
Schnitzer Steel Industries, Inc. — Class A		7		111
OMNOVA Solutions, Inc.*		13		111
Wausau Paper Corp.		11		105
Zep, Inc.		6		102
Koppers Holdings, Inc.		5		98
Landec Corp.*		7		98
American Vanguard Corp.		8		85
KMG Chemicals, Inc.		3		80
Kronos Worldwide, Inc.		6		76
Rentech, Inc.*		60		67
United States Lime & Minerals, Inc.		1		65
Orchids Paper Products Co.		2		54
Ring Energy, Inc.*		5		53
Universal Stainless & Alloy Products, Inc.*		2		52
Noranda Aluminum Holding Corp.		12		36
Oil-Dri Corporation of America		1		34
Gold Resource Corp.		10		32
Shiloh Industries, Inc.*		2		28
Ryerson Holding Corp.*		3		19
Molycorp, Inc.*		48		18
Total Basic Materials				15,592
DIVERSIFIED - 0.0%
Horizon Pharma plc*		17		442
HRG Group, Inc.*		22		275
National Bank Holdings Corp. — Class A		9		169
FCB Financial Holdings, Inc. — Class A*		2		55
Resource America, Inc. — Class A		4		36
Tiptree Financial, Inc. — Class A		2		13
Total Diversified				990
GOVERNMENT - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		8		262
Total Common Stocks
(Cost $264,911)				481,660
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16†		29		23
Magnum Hunter Resources Corp.
$8.50, 04/15/161		444		—
Total Warrants
(Cost $150)				23

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
RUSSELL 2000® FUND

	Shares		Value
RIGHTS - 0.0%
Leap Wireless International, Inc.
Expires 09/17/15†††		1,211	$	3,051
Furiex Pharmaceuticals, Inc.
Expires 07/03/17†††		88		860
Omthera Pharmaceuticals, Inc.
Expires 12/31/20†††		86		52
Total Rights
(Cost $1,952)				3,963
	Face Amount
REPURCHASE AGREEMENTS††,2 - 95.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	34,503,758		34,503,758
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		5,272,907		5,272,907
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		4,232,374		4,232,374
Total Repurchase Agreements
(Cost $44,009,039)				44,009,039
SECURITIES LENDING COLLATERAL††,3 - 0.0%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		4,215		4,215
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		1,450		1,450

Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		748		748
Total Securities Lending Collateral
(Cost $6,413)				6,413
Total Investments - 96.6%
(Cost $44,282,465)			$	44,501,098
Other Assets & Liabilities, net - 3.4%				1,579,572
Total Net Assets - 100.0%			$	46,080,670
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $42,222,960)		338	$	345,765
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International April 2015 Russell 2000 Index Swap, Terminating 04/28/154 (Notional Value $1,532,899)		1,224	$	26,667
Barclays Bank plc April 2015 Russell 2000 Index Swap, Terminating 04/30/154 (Notional Value $1,628,523)		1,300		13,529
Credit Suisse Capital, LLC April 2015 Russell 2000 Index Swap, Terminating 04/28/154 (Notional Value $353,469)		282		6,060
(Total Notional Value $3,514,891)			$	46,256

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	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 ANNUAL REPORT | 131

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $5,423 of securities loaned (cost $267,013)	$	485,646
Repurchase agreements, at value (cost $44,015,452)		44,015,452
Total investments (cost $44,282,465)		44,501,098
Foreign currency, at value (cost $68)		68
Segregated cash with broker		2,279,631
Unrealized appreciation on swap agreements		46,256
Cash		100
Receivables:
Fund shares sold		373,070
Securities sold		127,678
Dividends		17,930
Swap settlement		12,827
Securities lending income		2,345
Interest		40
Foreign taxes reclaim		1
Total assets		47,361,044
Liabilities:
Payable for:
Fund shares redeemed		951,836
Securities purchased		127,849
Variation margin		81,120
Management fees		39,661
Distribution and service fees		15,812
Transfer agent and administrative fees		13,220
Portfolio accounting fees		7,932
Return of securities loaned		6,507
Miscellaneous		36,437
Total liabilities		1,280,374
Commitments and contingent liabilities (Note 15)		—
Net assets	$	46,080,670
Net assets consist of:
Paid in capital	$	45,767,788
Accumulated net investment loss		(368	)
Accumulated net realized loss on investments		(297,404	)
Net unrealized appreciation on investments		610,654
Net assets	$	46,080,670
A-Class:
Net assets	$	13,919,688
Capital shares outstanding		357,980
Net asset value per share	$	38.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.82
C-Class:
Net assets	$	4,259,271
Capital shares outstanding		118,312
Net asset value per share	$	36.00
H-Class:
Net assets	$	27,901,711
Capital shares outstanding		719,339
Net asset value per share	$	38.79

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $344)	$	392,366
Income from securities lending, net		20,316
Interest		4,161
Total investment income		416,843
Expenses:
Management fees		381,261
Transfer agent and administrative fees		127,088
Distribution and service fees:
A-Class		15,247
C-Class		32,191
H-Class		103,796
Portfolio accounting fees		76,254
Custodian fees		5,906
Trustees’ fees*		3,514
Line of credit fees		29
Miscellaneous		88,091
Total expenses		833,377
Net investment loss		(416,534	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,879,955
Swap agreements		2,690,705
Futures contracts		238,052
Foreign currency		(4	)
Net realized gain		13,808,708
Net change in unrealized appreciation (depreciation) on:
Investments		(10,903,187	)
Swap agreements		(10,812	)
Futures contracts		416,185
Net change in unrealized appreciation (depreciation)		(10,497,814	)
Net realized and unrealized gain		3,310,894
Net increase in net assets resulting from operations	$	2,894,360

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

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

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(416,534	)	$	(644,338	)
Net realized gain on investments		13,808,708			9,558,159
Net change in unrealized appreciation (depreciation) on investments		(10,497,814	)		1,984,823
Net increase in net assets resulting from operations		2,894,360			10,898,644
Distributions to shareholders from:
Net realized gains
A-Class		(428,859	)		(144,615	)
C-Class		(120,935	)		(188,715	)
H-Class		(2,896,710	)		(2,108,628	)
Total distributions to shareholders		(3,446,504	)		(2,441,958	)
Capital share transactions:
Proceeds from sale of shares
A-Class		44,122,051			48,530,276
C-Class		22,066,473			36,005,575
H-Class		516,907,387			553,111,336
Distributions reinvested
A-Class		423,430			140,867
C-Class		105,736			182,177
H-Class		2,810,032			2,078,107
Cost of shares redeemed
A-Class		(34,232,043	)		(49,593,502	)
C-Class		(21,273,536	)		(35,912,850	)
H-Class		(534,945,783	)		(619,725,426	)
Net decrease from capital share transactions		(4,016,253	)		(65,183,440	)
Net decrease in net assets		(4,568,397	)		(56,726,754	)
Net assets:
Beginning of year		50,649,067			107,375,821
End of year	$	46,080,670		$	50,649,067
Accumulated net investment loss at end of year	$	(368	)	$	(118,275	)
Capital share activity:
Shares sold
A-Class		1,191,618			1,368,170
C-Class		636,256			1,080,807
H-Class		14,045,560			15,698,082
Shares issued from reinvestment of distributions
A-Class		11,478			3,960
C-Class		3,089			5,461
H-Class		76,360			58,522
Shares redeemed
A-Class		(930,285	)		(1,402,362	)
C-Class		(612,792	)		(1,079,626	)
H-Class		(14,573,641	)		(17,719,218	)
Net decrease in shares		(152,357	)		(1,986,204	)

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	37.80		$	32.26		$	28.20		$	28.54		$	22.96
Income (loss) from investment operations:
Net investment income (loss)a		(.25	)		(.27	)		(.13	)		(.23	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		2.61			7.54			4.19			(.11	)		5.82
Total from investment operations		2.36			7.27			4.06			(.34	)		5.58
Less distributions from:
Net realized gains		(1.28	)		(1.73	)		—			—			—
Total distributions		(1.28	)		(1.73	)		—			—			—
Net asset value, end of period	$	38.88		$	37.80		$	32.26		$	28.20		$	28.54
Total Returnb		6.42	%		22.87	%		14.40	%		(1.19	%)		24.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,920		$	3,219		$	3,723		$	670		$	755
Ratios to average net assets:
Net investment income (loss)		(0.67	%)		(0.77	%)		(0.44	%)		(0.89	%)		(1.01	%)
Total expenses		1.57	%		1.60	%		1.55	%		1.58	%		1.56	%
Portfolio turnover rate		947	%		267	%		160	%		121	%		284	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	35.36		$	30.54		$	26.90		$	27.46		$	22.29
Income (loss) from investment operations:
Net investment income (loss)a		(.60	)		(.48	)		(.31	)		(.46	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		2.52			7.03			3.95			(.10	)		5.64
Total from investment operations		1.92			6.55			3.64			(.56	)		5.17
Less distributions from:
Net realized gains		(1.28	)		(1.73	)		—			—			—
Total distributions		(1.28	)		(1.73	)		—			—			—
Net asset value, end of period	$	36.00		$	35.36		$	30.54		$	26.90		$	27.46
Total Returnb		5.61	%		21.78	%		13.53	%		(2.40	%)		23.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,259		$	3,245		$	2,599		$	6,285		$	7,068
Ratios to average net assets:
Net investment income (loss)		(1.77	%)		(1.47	%)		(1.19	%)		(1.83	%)		(1.87	%)
Total expenses		2.57	%		2.37	%		2.31	%		2.34	%		2.31	%
Portfolio turnover rate		947	%		267	%		160	%		121	%		284	%

134 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	37.73		$	32.25		$	28.16		$	28.52		$	22.93
Income (loss) from investment operations:
Net investment income (loss)a		(.28	)		(.27	)		(.12	)		(.22	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		2.62			7.48			4.21			(.14	)		5.86
Total from investment operations		2.34			7.21			4.09			(.36	)		5.59
Less distributions from:
Net realized gains		(1.28	)		(1.73	)		—			—			—
Total distributions		(1.28	)		(1.73	)		—			—			—
Net asset value, end of period	$	38.79		$	37.73		$	32.25		$	28.16		$	28.52
Total Returnb		6.37	%		22.69	%		14.52	%		(1.26	%)		24.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,902		$	44,185		$	101,053		$	63,447		$	32,389
Ratios to average net assets:
Net investment income (loss)		(0.77	%)		(0.78	%)		(0.42	%)		(0.83	%)		(1.09	%)
Total expenses		1.58	%		1.59	%		1.52	%		1.58	%		1.57	%
Portfolio turnover rate		947	%		267	%		160	%		121	%		284	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, Inverse Russell 2000^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the Russell 2000 Index. Inverse Russell 2000^® Strategy Fund H-Class returned -11.51% while the Russell 2000 Index returned 8.21% over the same time period.

Among sectors, the biggest performance contributors to the underlying index during the period were Health Care and Financials. The Energy sector detracted the most from return, followed by the Materials sector.

Qorvo, Inc., InterMune, Inc., and Puma Biotechnology, Inc. were the largest contributors to performance of the underlying index for the year. CARBO Ceramics, Inc., Civeo Corp., and GT Advanced Technologies, Inc. were the leading detractors from performance of the underlying index for the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

136 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	25.7%
Total	25.7%
“Largest Holding” excludes any temporary cash or derivative instruments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	-11.48%	-18.45%	-13.43%
A-Class Shares with sales charge†	-15.70%	-19.24%	-13.85%
C-Class Shares	-12.19%	-19.05%	-14.06%
C-Class Shares with CDSC‡	-13.07%	-19.05%	-14.06%
H-Class Shares	-11.51%	-18.41%	-13.40%
Russell 2000 Index	8.21%	14.57%	8.82%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 137

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 25.7%
Guggenheim Strategy Fund I1		86,114	$	2,144,238
Total Mutual Funds
(Cost $2,142,830)				2,144,238
	Face Amount
REPURCHASE AGREEMENTS††,2 - 77.8%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	5,094,566		5,094,566
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		778,557		778,557
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		624,921		624,921
Total Repurchase Agreements
(Cost $6,498,044)				6,498,044
Total Investments - 103.5%
(Cost $8,640,874)			$	8,642,282
Other Assets & Liabilities, net - (3.5)%				(294,174	)
Total Net Assets - 100.0%			$	8,348,108

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
June 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $624,600)		5	$	5,760
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International April 2015 Russell 2000 Index Swap, Terminating 04/28/153 (Notional Value $258,494)		206	$	(4,426	)
Credit Suisse Capital, LLC April 2015 Russell 2000 Index Swap, Terminating 04/28/153 (Notional Value $294,678)		235		(5,052	)
Barclays Bank plc April 2015 Russell 2000 Index Swap, Terminating 04/30/153 (Notional Value $7,138,607)		5,698		(63,352	)
(Total Notional Value $7,691,779)			$	(72,830	)

†	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	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $2,142,830)	$	2,144,238
Repurchase agreements, at value (cost $6,498,044)		6,498,044
Total investments (cost $8,640,874)		8,642,282
Segregated cash with broker		1,029,608
Receivables:
Fund shares sold		40,139
Variation margin		5,985
Dividends		2,326
Interest		6
Total assets		9,720,346
Liabilities:
Unrealized depreciation on swap agreements		72,830
Payable for:
Fund shares redeemed		1,171,092
Securities purchased		102,326
Management fees		6,694
Swap settlement		4,148
Distribution and service fees		2,882
Transfer agent and administrative fees		1,860
Portfolio accounting fees		744
Miscellaneous		9,662
Total liabilities		1,372,238
Commitments and contingent liabilities (Note 15)		—
Net assets	$	8,348,108
Net assets consist of:
Paid in capital	$	61,557,338
Accumulated net investment loss		(45,359	)
Accumulated net realized loss on investments		(53,098,209	)
Net unrealized depreciation on investments		(65,662	)
Net assets	$	8,348,108
A-Class:
Net assets	$	893,581
Capital shares outstanding		30,585
Net asset value per share	$	29.22
Maximum offering price per share (Net asset value divided by 95.25%)	$	30.68
C-Class:
Net assets	$	1,679,572
Capital shares outstanding		62,522
Net asset value per share	$	26.86
H-Class:
Net assets	$	5,774,955
Capital shares outstanding		197,121
Net asset value per share	$	29.30

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	71,906
Interest		2,958
Total investment income		74,864
Expenses:
Management fees		222,645
Transfer agent and administrative fees		61,846
Distribution and service fees:
A-Class		21,873
C-Class		12,854
H-Class		36,759
Portfolio accounting fees		24,738
Custodian fees		2,895
Trustees’ fees*		1,907
Miscellaneous		46,014
Total expenses		431,531
Net investment loss		(356,667	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(29,077	)
Swap agreements		(2,378,935	)
Futures contracts		(215,228	)
Net realized loss		(2,623,240	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,408
Swap agreements		117,773
Futures contracts		5,760
Net change in unrealized appreciation (depreciation)		124,941
Net realized and unrealized loss		(2,498,299	)
Net decrease in net assets resulting from operations	$	(2,854,966	)

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

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(356,667	)	$	(299,337	)
Net realized loss on investments		(2,623,240	)		(6,281,506	)
Net change in unrealized appreciation (depreciation) on investments		124,941			(167,687	)
Net decrease in net assets resulting from operations		(2,854,966	)		(6,748,530	)
Capital share transactions:
Proceeds from sale of shares
A-Class		15,968,383			23,165,472
C-Class		6,202,950			3,936,557
H-Class		115,461,343			92,194,810
Cost of shares redeemed
A-Class		(21,273,561	)		(14,117,385	)
C-Class		(4,906,679	)		(3,635,185	)
H-Class		(119,810,604	)		(89,100,370	)
Net increase (decrease) from capital share transactions		(8,358,168	)		12,443,899
Net increase (decrease) in net assets		(11,213,134	)		5,695,369
Net assets:
Beginning of year		19,561,242			13,865,873
End of year	$	8,348,108		$	19,561,242
Accumulated net investment loss at end of year	$	(45,359	)	$	(62,483	)
Capital share activity:
Shares sold
A-Class		473,685			617,161	*
C-Class		204,651			116,767	*
H-Class		3,469,349			2,419,872	*
Shares redeemed
A-Class		(664,308	)		(410,651	)*
C-Class		(160,695	)		(108,355	)*
H-Class		(3,625,353	)		(2,363,113	)*
Net increase (decrease) in shares		(302,671	)		271,681	*

* Reverse Share Split — 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 14 in the Notes to Financial Statements.

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	33.01		$	43.21		$	52.38		$	59.31		$	81.01
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.61	)		(.81	)		(1.02	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(3.33	)		(9.59	)		(8.36	)		(5.91	)		(20.56	)
Total from investment operations		(3.79	)		(10.20	)		(9.17	)		(6.93	)		(21.70	)
Net asset value, end of period	$	29.22		$	33.01		$	43.21		$	52.38		$	59.31
Total Returnb		(11.48	%)		(23.59	%)		(17.53	%)		(11.68	%)		(26.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	894		$	7,302		$	635		$	612		$	1,114
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.69	%)		(1.60	%)		(1.66	%)		(1.53	%)
Total expensesc		1.71	%		1.72	%		1.72	%		1.75	%		1.71	%
Portfolio turnover rate		189	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	30.59		$	40.30		$	49.22		$	56.14		$	77.26
Income (loss) from investment operations:
Net investment income (loss)a		(.63	)		(.83	)		(1.14	)		(1.41	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		(3.10	)		(8.88	)		(7.78	)		(5.51	)		(19.47	)
Total from investment operations		(3.73	)		(9.71	)		(8.92	)		(6.92	)		(21.12	)
Net asset value, end of period	$	26.86		$	30.59		$	40.30		$	49.22		$	56.14
Total Returnb		(12.19	%)		(24.08	%)		(18.16	%)		(12.29	%)		(27.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,680		$	568		$	409		$	837		$	1,158
Ratios to average net assets:
Net investment income (loss)		(2.13	%)		(2.45	%)		(2.35	%)		(2.43	%)		(2.28	%)
Total expensesc		2.45	%		2.47	%		2.47	%		2.51	%		2.46	%
Portfolio turnover rate		189	%		—			—			—			—

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	33.11		$	43.26		$	52.42		$	59.37		$	81.03
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.65	)		(.84	)		(1.05	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(3.35	)		(9.50	)		(8.32	)		(5.90	)		(20.52	)
Total from investment operations		(3.81	)		(10.15	)		(9.16	)		(6.95	)		(21.66	)
Net asset value, end of period	$	29.30		$	33.11		$	43.26		$	52.42		$	59.37
Total Returnb		(11.51	%)		(23.46	%)		(17.46	%)		(11.72	%)		(26.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,775		$	11,691		$	12,822		$	17,283		$	9,572
Ratios to average net assets:
Net investment income (loss)		(1.41	%)		(1.69	%)		(1.62	%)		(1.70	%)		(1.53	%)
Total expensesc		1.70	%		1.72	%		1.74	%		1.77	%		1.71	%
Portfolio turnover rate		189	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in the Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for U.S. Government securities on a daily basis. The Fund’s current benchmark is 120% of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, the Government Long Bond 1.2x Strategy Fund Investor Class returned 30.66%. The price movement of the Long Treasury Bond was 22.33% for the same period. The Fund maintained a daily correlation of over 99% to its benchmark.

The return of a comparison index, the Barclays Long Treasury Bond Index, was 21.40%.

The yield on the 30-year bond was 3.72% at the beginning of the period and finished at 2.54% on March 31, 2015. The government bond yields of many industrial economies, including the U.S., dipped to multiyear lows in the first quarter of 2015.

The lower interest rate environment was a major factor in the positive return of the Fund. Throughout the period, long bond prices moved up and yields down. This was partly a result of quantitative easing programs in Europe and Japan. Falling commodity prices, especially oil, and weakening global economic growth increased the demand for fixed income assets around the world.

U.S. bonds became more attractive relative to foreign bonds, which helped to support Treasuries despite uncertainty surrounding the Federal Reserve’s timing to raise interest rates. In spite of falling rates, U.S. Treasuries were yielding more than government bonds of many other countries.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

THE RYDEX FUNDS ANNUAL REPORT | 143

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2015

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	January 3, 1994
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.

Largest Holdings (% of Total Net Assets)
U.S. Treasury Bond	68.3%
Guggenheim Strategy Fund I	6.5%
Total	74.8%
“Largest Holdings” exclude any temporary cash or derivative instruments.

144 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	30.66%	14.65%	8.87%
Advisor Class Shares	30.17%	14.11%	8.24%
A-Class Shares	30.37%	14.51%	8.64%
A-Class Shares with sales charge†	24.17%	13.39%	8.11%
C-Class Shares	29.37%	13.56%	7.77%
C-Class Shares with CDSC‡	28.37%	13.56%	7.77%
Daily Price Movement of Long Treasury Bond**	22.33%	7.65%	3.47%
Barclays Long Treasury Bond Index	21.40%	10.61%	7.90%
			Since Inception (09/18/14)
H-Class Shares			22.28%
Daily Price Movement of Long Treasury Bond**			17.52%
Barclays Long Treasury Bond Index			15.77%

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

THE RYDEX FUNDS ANNUAL REPORT | 145

SCHEDULE OF INVESTMENTS	March 31, 2015
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 6.5%
Guggenheim Strategy Fund I1		408,252	$	10,165,485
Total Mutual Funds
(Cost $10,145,123)				10,165,485
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 68.3%
U.S. Treasury Bonds
2.50% due 02/15/45	$	108,169,000		107,256,325
Total U.S. Government Securities
(Cost $105,082,034)				107,256,325
REPURCHASE AGREEMENTS††,2 - 25.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15		31,165,884		31,165,884
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		4,762,809		4,762,809
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		3,822,937		3,822,937
Total Repurchase Agreements
(Cost $39,751,630)				39,751,630
Total Investments - 100.2%
(Cost $154,978,787)			$	157,173,440
Other Assets & Liabilities, net - (0.2)%				(376,557	)
Total Net Assets - 100.0%			$	156,796,883

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
June 2015 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $99,960,000)		588	$	2,433,953

†	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.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $115,227,157)	$	117,421,810
Repurchase agreements, at value (cost $39,751,630)		39,751,630
Total investments (cost $154,978,787)		157,173,440
Segregated cash with broker		2,234,400
Receivables:
Fund shares sold		20,044,230
Interest		336,197
Variation margin		238,875
Dividends		12,119
Total assets		180,039,261
Liabilities:
Payable for:
Securities purchased		14,733,239
Fund shares redeemed		8,310,878
Management fees		54,976
Distribution and service fees		23,144
Transfer agent and administrative fees		21,991
Portfolio accounting fees		10,995
Miscellaneous		87,155
Total liabilities		23,242,378
Commitments and contingent liabilities (Note 15)		—
Net assets	$	156,796,883
Net assets consist of:
Paid in capital	$	169,874,376
Undistributed net investment income		—
Accumulated net realized loss on investments		(17,706,099	)
Net unrealized appreciation on investments		4,628,606
Net assets	$	156,796,883
Investor Class:
Net assets	$	61,459,738
Capital shares outstanding		1,039,661
Net asset value per share	$	59.12
Advisor Class:
Net assets	$	10,203,261
Capital shares outstanding		173,616
Net asset value per share	$	58.77
A-Class:
Net assets	$	3,878,816
Capital shares outstanding		65,228
Net asset value per share	$	59.47
Maximum offering price per share (Net asset value divided by 95.25%)	$	62.44
C-Class:
Net assets	$	2,872,931
Capital shares outstanding		48,622
Net asset value per share	$	59.09
H-Class:
Net assets	$	78,382,137
Capital shares outstanding		1,318,586
Net asset value per share	$	59.44

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Interest	$	3,428,329
Dividends		204,626
Income from securities lending, net		1,701
Total investment income		3,634,656
Expenses:
Management fees		860,992
Transfer agent and administrative fees		344,401
Distribution and service fees:
Advisor Class		373,638
A-Class		7,310
C-Class		32,145
H-Class**		83,680
Portfolio accounting fees		170,961
Registration fees		118,686
Custodian fees		20,065
Trustees’ fees*		11,834
Line of credit fees		10,208
Miscellaneous		103,555
Total expenses		2,137,475
Net investment income		1,497,181
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		15,842,047
Futures contracts		16,256,763
Net realized gain		32,098,810
Net change in unrealized appreciation (depreciation) on:
Investments		1,163,742
Futures contracts		2,144,605
Net change in unrealized appreciation (depreciation)		3,308,347
Net realized and unrealized gain		35,407,157
Net increase in net assets resulting from operations	$	36,904,338

*	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.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,497,181		$	1,710,481
Net realized gain (loss) on investments		32,098,810			(45,960,905	)
Net change in unrealized appreciation (depreciation) on investments		3,308,347			(132,943	)
Net increase (decrease) in net assets resulting from operations		36,904,338			(44,383,367	)
Distributions to shareholders from:
Net investment income
Investor Class		(703,362	)		(898,854	)
Advisor Class		(473,253	)		(703,095	)
A-Class		(28,531	)		(99,323	)
C-Class		(8,930	)		(9,209	)
H-Class*		(301,178	)		—
Return of capital
Investor Class		—			(7,266	)
Advisor Class		—			(5,684	)
A-Class		—			(803	)
C-Class		—			(74	)
H-Class*		—			—
Total distributions to shareholders		(1,515,254	)		(1,724,308	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		660,449,135			1,219,761,863
Advisor Class		3,280,358,617			6,476,276,741
A-Class		36,939,152			103,303,063
C-Class		33,913,164			26,953,816
H-Class*		1,267,499,822			—
Distributions reinvested
Investor Class		697,459			874,942
Advisor Class		463,311			689,127
A-Class		27,051			43,748
C-Class		7,765			7,193
H-Class*		301,178			—
Cost of shares redeemed
Investor Class		(658,880,369	)		(1,452,469,764	)
Advisor Class		(3,412,680,611	)		(6,413,503,973	)
A-Class		(35,500,878	)		(115,219,148	)
C-Class		(34,886,168	)		(28,044,431	)
H-Class*		(1,195,580,232	)		—
Net decrease from capital share transactions		(56,871,604	)		(181,326,823	)
Net decrease in net assets		(21,482,520	)		(227,434,498	)
Net assets:
Beginning of year		178,279,403			405,713,901
End of year	$	156,796,883		$	178,279,403
Undistributed net investment income at end of year	$	—		$	—

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Year Ended March 31, 2015			Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class		12,620,583			26,724,760	**
Advisor Class		66,215,971			145,113,873	**
A-Class		676,780			2,253,656	**
C-Class		652,055			593,997	**
H-Class*		22,022,660			—
Shares issued from reinvestment of distributions
Investor Class		13,125			18,706	**
Advisor Class		9,160			15,528	**
A-Class		504			976	**
C-Class		151			163	**
H-Class*		5,002			—
Shares redeemed
Investor Class		(12,545,418	)		(31,595,986	)**
Advisor Class		(68,905,187	)		(144,429,030	)**
A-Class		(649,474	)		(2,534,796	)**
C-Class		(673,432	)		(619,014	)**
H-Class*		(20,709,076	)		—
Net decrease in shares		(1,266,596	)		(4,457,167	)**

*	Since commencement of operations: September 18, 2014.
**	Reverse Share Split — 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 14 in Notes to Financial Statements.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	45.80		$	48.55		$	44.73		$	34.28		$	32.88
Income (loss) from investment operations:
Net investment income (loss)a		.63			.61			.57			.96			1.08
Net gain (loss) on investments (realized and unrealized)		13.34			(2.76	)		4.21			10.45			1.40
Total from investment operations		13.97			(2.15	)		4.78			11.41			2.48
Less distributions from:
Net investment income		(.65	)		(.60	)		(.72	)		(.96	)		(1.08	)
Net realized gains		—			—			(.24	)		—			—
Total distributions		(.65	)		(.60	)		(.96	)		(.96	)		(1.08	)
Net asset value, end of period	$	59.12		$	45.80		$	48.55		$	44.73		$	34.28
Total Returnb		30.66	%		(4.37	%)		10.63	%		33.38	%		7.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	61,460		$	43,573		$	281,800		$	43,709		$	44,707
Ratios to average net assets:
Net investment income (loss)		1.21	%		1.22	%		1.15	%		2.24	%		3.03	%
Total expensesc		0.95	%		0.97	%		0.95	%		0.95	%		0.98	%
Portfolio turnover rate		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	45.48		$	48.23		$	44.33		$	34.08		$	32.65
Income (loss) from investment operations:
Net investment income (loss)a		.31			.25			.33			.75			.93
Net gain (loss) on investments (realized and unrealized)		13.36			(2.63	)		4.26			10.25			1.40
Total from investment operations		13.67			(2.38	)		4.59			11.00			2.33
Less distributions from:
Net investment income		(.38	)		(.37	)		(.45	)		(.75	)		(.90	)
Net realized gains		—			—			(.24	)		—			—
Total distributions		(.38	)		(.37	)		(.69	)		(.75	)		(.90	)
Net asset value, end of period	$	58.77		$	45.48		$	48.23		$	44.33		$	34.08
Total Returnb		30.17	%		(4.93	%)		10.21	%		32.56	%		7.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,203		$	129,785		$	103,845		$	11,600		$	31,420
Ratios to average net assets:
Net investment income (loss)		0.62	%		0.64	%		0.63	%		1.77	%		2.46	%
Total expensesc		1.46	%		1.46	%		1.43	%		1.45	%		1.48	%
Portfolio turnover rate		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	46.07		$	48.73		$	44.77		$	34.34		$	32.89
Income (loss) from investment operations:
Net investment income (loss)a		.51			.48			.48			.87			.99
Net gain (loss) on investments (realized and unrealized)		13.42			(2.65	)		4.29			10.43			1.45
Total from investment operations		13.93			(2.17	)		4.77			11.30			2.44
Less distributions from:
Net investment income		(.53	)		(.49	)		(.57	)		(.87	)		(.99	)
Net realized gains		—			—			(.24	)		—			—
Total distributions		(.53	)		(.49	)		(.81	)		(.87	)		(.99	)
Net asset value, end of period	$	59.47		$	46.07		$	48.73		$	44.77		$	34.34
Total Returnb		30.37	%		(4.40	%)		10.62	%		33.00	%		7.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,879		$	1,724		$	15,476		$	10,885		$	2,753
Ratios to average net assets:
Net investment income (loss)		0.97	%		1.04	%		0.94	%		2.02	%		2.75	%
Total expensesc		1.20	%		1.22	%		1.20	%		1.20	%		1.23	%
Portfolio turnover rate		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	45.79		$	48.51		$	44.63		$	34.25		$	32.82
Income (loss) from investment operations:
Net investment income (loss)a		.13			.12			.15			.57			.72
Net gain (loss) on investments (realized and unrealized)		13.30			(2.71	)		4.21			10.35			1.43
Total from investment operations		13.43			(2.59	)		4.36			10.92			2.15
Less distributions from:
Net investment income		(.13	)		(.13	)		(.24	)		(.54	)		(.72	)
Net realized gains		—			—			(.24	)		—			—
Total distributions		(.13	)		(.13	)		(.48	)		(.54	)		(.72	)
Net asset value, end of period	$	59.09		$	45.79		$	48.51		$	44.63		$	34.25
Total Returnb		29.37	%		(5.33	%)		9.69	%		32.01	%		6.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,873		$	3,198		$	4,594		$	4,451		$	6,091
Ratios to average net assets:
Net investment income (loss)		0.26	%		0.34	%		0.31	%		1.32	%		1.93	%
Total expensesc		1.95	%		1.97	%		1.94	%		1.95	%		1.97	%
Portfolio turnover rate		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	48.83
Income (loss) from investment operations:
Net investment income (loss)a		.28
Net gain (loss) on investments (realized and unrealized)		10.59
Total from investment operations		10.87
Less distributions from:
Net investment income		(.26	)
Total distributions		(.26	)
Net asset value, end of period	$	59.44
Total Returnb		22.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	78,382
Ratios to average net assets:
Net investment income (loss)		0.89	%
Total expensesc		1.18	%
Portfolio turnover rate		1,932	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contract on a specified debt instrument on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, the Inverse Government Long Bond Strategy Fund Investor Class returned -22.23%. The price movement of the Long Treasury Bond was 22.33% for the same period. The Fund maintained a daily correlation of over 99% to its benchmark.

The return of a comparison index, the Barclays Long Treasury Bond Index, was 21.40%.

The yield on the 30-year bond was 3.72% at the beginning of the period and finished at 2.54% on March 31, 2015. The government bond yields of many industrial economies, including the U.S., dipped to multiyear lows in the first quarter of 2015.

The lower interest rate environment was a major factor in the positive return of the Fund. Throughout the period, long bond prices moved up and yields down. This was partly a result of quantitative easing programs in Europe and Japan. Falling commodity prices, especially oil, and weakening global economic growth increased the demand for fixed income assets around the world.

U.S. bonds became more attractive relative to foreign bonds, which helped to support Treasuries despite uncertainty surrounding the Federal Reserve’s timing to raise interest rates. In spite of falling rates, U.S. Treasuries were yielding more than government bonds of many other countries.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

THE RYDEX FUNDS ANNUAL REPORT | 153

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2015

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	March 3, 1995
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.

Largest Long Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	24.4%
Total	24.4%
“Largest Long Holdings” exclude any temporary cash or derivative instruments.

154 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	-22.23%	-13.35%	-8.64%
Advisor Class Shares	-22.66%	-13.75%	-9.07%
A-Class Shares	-22.43%	-13.55%	-8.88%
A-Class Shares with sales charge†	-26.11%	-14.40%	-9.32%
C-Class Shares	-23.00%	-14.19%	-9.55%
C-Class Shares with CDSC‡	-23.77%	-14.19%	-9.55%
Daily Price Movement of Long Treasury Bond**	22.33%	7.65%	3.47%
Barclays Long Treasury Bond Index	21.40%	10.61%	7.90%
			Since Inception (09/18/14)
H-Class Shares			-17.16%
Daily Price Movement of Long Treasury Bond**			17.52%
Barclays Long Treasury Bond Index			15.77%

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

THE RYDEX FUNDS ANNUAL REPORT | 155

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.4%
Guggenheim Strategy Fund I1		2,138,319	$	53,244,134
Total Mutual Funds
(Cost $53,319,911)				53,244,134
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 40.4%
Farmer Mac2
0.13% due 08/03/15	$	15,000,000		14,995,140
0.14% due 09/10/15		15,000,000		14,991,225
0.21% due 10/01/15		15,000,000		14,988,795
0.17% due 10/08/15		15,000,000		14,988,360
0.17% due 09/15/15		5,000,000		4,996,985
0.09% due 04/05/15		1,100,000		1,099,995
Total Farmer Mac				66,060,500
Federal Farm Credit2
0.12% due 04/10/15		10,000,000		9,999,910
0.22% due 10/05/15		8,000,000		7,993,888
Total Federal Farm Credit				17,993,798
Fannie Mae3
0.09% due 05/01/15		4,250,000		4,249,851
Total Federal Agency Discount Notes
(Cost $88,290,985)				88,304,149
REPURCHASE AGREEMENTS†† - 77.8%
Individual Repurchase Agreement4
Barclays Capital Issued 03/31/15 at 0.01% due 04/01/15 (secured by U.S. Treasury Bond, at a rate of 2.50% and maturing 02/15/45 as collateral, with a value of $121,942,397) to be repurchased at $119,551,403		119,551,370		119,551,370

Joint Repurchase Agreements5
HSBC Group issued 03/31/15 at 0.03% due 04/01/15		39,592,529		39,592,529
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		6,050,579		6,050,579
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		4,856,584		4,856,584
Total Repurchase Agreements
(Cost $170,051,062)				170,051,062
Total Investments - 142.6%
(Cost $311,661,958)			$	311,599,345
U.S. GOVERNMENT SECURITIES SOLD SHORT†† - (68.2)%
U.S. Treasury Bonds
2.50% due 02/15/45		150,232,000		(148,964,418	)
Total U.S. Government Securities Sold Short
(Proceeds $146,225,193)				(148,964,418	)
Other Assets & Liabilities, net - 25.6%				56,015,367
Total Net Assets - 100.0%			$	218,650,294
	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
June 2015 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $86,020,000)		506	$	(981,736	)

†	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	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 March 31, 2015.
5	Repurchase Agreements — See Note 5.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $88,290,985)	$	88,304,149
Investments in affiliated issuers, at value (cost $53,319,911)		53,244,134
Repurchase agreements, at value (cost $170,051,062)		170,051,062
Total investments (cost $311,661,958)		311,599,345
Segregated cash with broker		1,922,800
Receivables:
Fund shares sold		42,427,588
Securities Sold		27,154,498
Dividends		63,479
Total assets		383,167,710
Liabilities:
Securities sold short, at value (proceeds $146,225,193)		148,964,418
Payable for:
Fund shares redeemed		14,420,884
Interest		466,881
Variation margin		205,562
Management fees		167,559
Securities purchased		63,479
Distribution and service fees		49,145
Transfer agent and administrative fees		46,544
Portfolio accounting fees		18,503
Miscellaneous		114,441
Total liabilities		164,517,416
Commitments and contingent liabilities (Note 15)		—
Net assets	$	218,650,294
Net assets consist of:
Paid in capital	$	595,941,052
Accumulated net investment loss		(1,507,712	)
Accumulated net realized loss on investments		(371,999,472	)
Net unrealized depreciation on investments		(3,783,574	)
Net assets	$	218,650,294
Investor Class:
Net assets	$	105,695,680
Capital shares outstanding		2,953,889
Net asset value per share	$	35.78
Advisor Class:
Net assets	$	11,700,664
Capital shares outstanding		345,959
Net asset value per share	$	33.82
A-Class:
Net assets	$	21,579,696
Capital shares outstanding		622,625
Net asset value per share	$	34.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	36.39
C-Class:
Net assets	$	35,873,894
Capital shares outstanding		1,154,627
Net asset value per share	$	31.07
H-Class:
Net assets	$	43,800,360
Capital shares outstanding		1,263,415
Net asset value per share	$	34.67

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	881,692
Interest		99,143
Total investment income		980,835
Expenses:
Management fees		2,625,582
Transfer agent and administrative fees		729,328
Distribution and service fees:
Advisor Class		274,120
A-Class		79,769
C-Class		474,535
H-Class**		29,686
Portfolio accounting fees		277,630
Short interest expense		5,061,422
Custodian fees		34,078
Trustees’ fees*		25,580
Miscellaneous		384,030
Total expenses		9,995,760
Net investment loss		(9,014,925	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(161,780	)
Futures contracts		(33,058,090	)
Securities sold short		(38,858,220	)
Net realized loss		(72,078,090	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(20,072	)
Investments in affiliated issuers		(75,777	)
Securities sold short		(297,836	)
Futures contracts		(511,861	)
Net change in unrealized appreciation (depreciation)		(905,546	)
Net realized and unrealized loss		(72,983,636	)
Net decrease in net assets resulting from operations	$	(81,998,561	)

*	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.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(9,014,925	)	$	(15,338,405	)
Net realized gain (loss) on investments		(72,078,090	)		11,531,426
Net change in unrealized appreciation (depreciation) on investments		(905,546	)		(1,471,301	)
Net decrease in net assets resulting from operations		(81,998,561	)		(5,278,280	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		297,049,590			1,212,780,870
Advisor Class		2,869,893,061			5,382,740,545
A-Class		9,691,719			105,073,218
C-Class		31,214,542			28,159,469
H-Class*		1,071,187,111			—
Cost of shares redeemed
Investor Class		(332,060,409	)		(1,181,336,410	)
Advisor Class		(2,856,681,364	)		(5,368,048,897	)
A-Class		(29,814,806	)		(88,137,870	)
C-Class		(40,220,259	)		(28,117,046	)
H-Class*		(1,021,206,700	)		—
Net increase (decrease) from capital share transactions		(947,515	)		63,113,879
Net increase (decrease) in net assets		(82,946,076	)		57,835,599
Net assets:
Beginning of year		301,596,370			243,760,771
End of year	$	218,650,294		$	301,596,370
Accumulated net investment loss at end of year	$	(1,507,712	)	$	(4,248,821	)
Capital share activity:
Shares sold
Investor Class		7,228,729			25,688,339	**
Advisor Class		70,764,860			119,675,656	**
A-Class		258,256			2,241,652	**
C-Class		864,726			674,822	**
H-Class*		29,826,219			—
Shares redeemed
Investor Class		(8,137,808	)		(25,096,700	)**
Advisor Class		(70,800,361	)		(119,576,482	)**
A-Class		(751,587	)		(1,893,603	)**
C-Class		(1,130,632	)		(677,648	)**
H-Class*		(28,562,804	)		—
Net increase (decrease) in shares		(440,402	)		1,036,036	**

*	Since commencement of operations: September 18, 2014.
**	Reverse Share Split — Capital share acitivity 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 14 in Notes to Financial Statements.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	46.01		$	43.94		$	48.33		$	65.42		$	73.23
Income (loss) from investment operations:
Net investment income (loss)a		(1.15	)		(1.65	)		(1.20	)		(2.15	)		(3.10	)
Net gain (loss) on investments (realized and unrealized)		(9.08	)		3.72			(3.19	)		(14.94	)		(4.71	)
Total from investment operations		(10.23	)		2.07			(4.39	)		(17.09	)		(7.81	)
Net asset value, end of period	$	35.78		$	46.01		$	43.94		$	48.33		$	65.42
Total Returnb		(22.23	%)		4.69	%		(9.10	%)		(26.07	%)		(10.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	105,696		$	177,735		$	143,739		$	247,454		$	406,031
Ratios to average net assets:
Net investment income (loss)		(2.80	%)		(3.46	%)		(2.82	%)		(3.99	%)		(4.78	%)
Total expensese,f		3.15	%		3.50	%		2.99	%		4.13	%		5.06	%
Portfolio turnover rate		2,190	%		1,097	%		1,309	%		1,107	%		771	%

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014 c			Year Ended March 28, 2013 c			Year Ended March 31, 2012 c			Year Ended March 31, 2011 c
Per Share Data
Net asset value, beginning of period	$	43.73		$	41.72		$	46.17		$	62.98		$	70.84
Income (loss) from investment operations:
Net investment income (loss)a		(1.35	)		(1.67	)		(1.35	)		(2.05	)		(3.30	)
Net gain (loss) on investments (realized and unrealized)		(8.56	)		3.68			(3.10	)		(14.76	)		(4.56	)
Total from investment operations		(9.91	)		2.01			(4.45	)		(16.81	)		(7.86	)
Net asset value, end of period	$	33.82		$	43.73		$	41.72		$	46.17		$	62.98
Total Returnb		(22.66	%)		4.87	%		(9.64	%)		(26.75	%)		(11.08	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,701		$	16,679		$	11,776		$	199,137		$	44,798
Ratios to average net assets:
Net investment income (loss)		(3.35	%)		(3.69	%)		(3.29	%)		(4.22	%)		(5.28	%)
Total expensese,f		3.64	%		3.72	%		3.45	%		4.38	%		5.56	%
Portfolio turnover rate		2,190	%		1,097	%		1,309	%		1,107	%		771	%

160 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	44.68		$	42.77		$	47.18		$	64.00		$	71.82
Income (loss) from investment operations:
Net investment income (loss)a		(1.23	)		(1.73	)		(1.35	)		(2.25	)		(3.20	)
Net gain (loss) on investments (realized and unrealized)		(8.79	)		3.64			(3.06	)		(14.57	)		(4.62	)
Total from investment operations		(10.02	)		1.91			(4.41	)		(16.82	)		(7.82	)
Net asset value, end of period	$	34.66		$	44.68		$	42.77		$	47.18		$	64.00
Total Returnb		(22.43	%)		4.51	%		(9.43	%)		(26.25	%)		(10.86	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,580		$	49,859		$	32,842		$	37,607		$	73,475
Ratios to average net assets:
Net investment income (loss)		(3.06	%)		(3.73	%)		(3.20	%)		(4.24	%)		(5.03	%)
Total expensese,f		3.40	%		3.78	%		3.37	%		4.38	%		5.31	%
Portfolio turnover rate		2,190	%		1,097	%		1,309	%		1,107	%		771	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014c			Year Ended March 28, 2013c			Year Ended March 31, 2012c			Year Ended March 31, 2011c
Per Share Data
Net asset value, beginning of period	$	40.35		$	38.92		$	43.25		$	59.09		$	66.81
Income (loss) from investment operations:
Net investment income (loss)a		(1.36	)		(1.86	)		(1.50	)		(2.40	)		(3.40	)
Net gain (loss) on investments (realized and unrealized)		(7.92	)		3.29			(2.83	)		(13.44	)		(4.32	)
Total from investment operations		(9.28	)		1.43			(4.33	)		(15.84	)		(7.72	)
Net asset value, end of period	$	31.07		$	40.35		$	38.92		$	43.25		$	59.09
Total Returnb		(23.00	%)		3.73	%		(10.06	%)		(26.82	%)		(11.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,874		$	57,323		$	55,404		$	69,472		$	114,470
Ratios to average net assets:
Net investment income (loss)		(3.78	%)		(4.45	%)		(3.96	%)		(4.98	%)		(5.78	%)
Total expensese,f		4.14	%		4.49	%		4.13	%		5.12	%		6.06	%
Portfolio turnover rate		2,190	%		1,097	%		1,309	%		1,107	%		771	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 161

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 March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	41.85
Income (loss) from investment operations:
Net investment income (loss)a		(.52	)
Net gain (loss) on investments (realized and unrealized)		(6.66	)
Total from investment operations		(7.18	)
Net asset value, end of period	$	34.67
Total Returnb		(17.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,800
Ratios to average net assets:
Net investment income (loss)		(2.75	%)
Total expensese,f		3.07	%
Portfolio turnover rate		2,190	%

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

	03/31/15	03/31/14	03/28/13	03/31/12	03/31/11
Investor Class	1.40%	1.41%	1.39%	1.39%	1.42%
Advisor Class	1.90%	1.91%	1.88%	1.87%	1.91%
A-Class	1.65%	1.66%	1.64%	1.65%	1.67%
C-Class	2.40%	2.41%	2.39%	2.40%	2.42%
H-Class	1.60%	—	—	—	—

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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.

High Yield Strategy Fund H-Class returned 4.14% for the one-year period ended March 31, 2015. For comparison, the Barclays U.S. Corporate High Yield Index returned 2.00%.

The communications and consumer non-cyclical industries contributed most to the performance of the Barclays High Yield index. The energy and basic industry segments detracted most.

From a ratings perspective, credits with a BB+ rating contributed most to the performance of the Barclays High Yield index, followed by holdings with a lower, BB rating. The category of bonds detracting most from return was that with a CCC+ rating.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 163

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative instruments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	10.1%
Guggenheim Strategy Fund II	5.3%
SPDR Barclays High Yield Bond ETF	2.3%
iShares iBoxx $ High Yield Corporate Bond ETF	1.8%
Total	19.5%
“Largest Holdings” exclude any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (04/16/07)
A-Class Shares	4.06%	9.24%	6.63%
A-Class Shares with sales charge†	-0.87%	8.18%	5.98%
C-Class Shares	3.33%	8.45%	5.84%
C-Class Shares with CDSC‡	2.33%	8.45%	5.84%
H-Class Shares	4.14%	9.34%	6.67%
Barclays U.S. Corporate High Yield Index	2.00%	8.59%	7.83%
S&P 500 Index	12.73%	14.47%	6.67%

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

164 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
HIGH YIELD STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 4.1%
SPDR Barclays High Yield Bond ETF1		360,542	$	14,140,457
iShares iBoxx $ High Yield Corporate Bond ETF		127,947		11,593,278
Total Exchange-Traded Funds
(Cost $25,573,572)				25,733,735
MUTUAL FUNDS† - 15.4%
Guggenheim Strategy Fund I2		2,582,943		64,315,270
Guggenheim Strategy Fund II2		1,356,206		33,783,080
Total Mutual Funds
(Cost $97,901,168)				98,098,350
	Face Amount
REPURCHASE AGREEMENTS††,3 - 68.6%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	341,794,905		341,794,905
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		52,233,517		52,233,517
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		41,925,984		41,925,984
Total Repurchase Agreements
(Cost $435,954,406)				435,954,406

SECURITIES LENDING COLLATERAL††,4 - 1.7%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		7,049,883		7,049,883
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		2,425,160		2,425,160
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,251,777		1,251,777
Total Securities Lending Collateral
(Cost $10,726,820)				10,726,820
Total Investments - 89.8%
(Cost $570,155,966)			$	570,513,311
Other Assets & Liabilities, net - 10.2%				64,696,508
Total Net Assets - 100.0%			$	635,209,819
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
June 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $540,793,859)		4,499	$	2,913,204

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
CDX.NA.HY.24 Index	Goldman Sachs International	5.00%	06/20/20	$218,000,000	$(233,399,127)	$14,868,241	$530,886
CDX.NA.HY.24 Index	Barclays Bank plc	5.00%	06/20/20	392,750,000	(420,493,155)	26,619,681	1,123,474

†	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 March 31, 2015 — See Note 6.
2	Affiliated issuer — 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 ANNUAL REPORT | 165

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments in unaffiliated issuers, at value – including $10,605,088 of securities loaned (cost $25,573,572)	$	25,733,735
Investments in affiliated issuers, at value (cost $97,901,168)		98,098,350
Repurchase agreements, at value (cost $446,681,226)		446,681,226
Total investments (cost $570,155,966)		570,513,311
Unamortized upfront premiums paid on credit default swaps		41,487,922
Segregated cash with broker		3,900,780
Unrealized appreciation on swap agreements		1,654,360
Receivables:
Fund shares sold		49,016,758
Protection fees on credit default swaps		1,017,917
Variation margin		810,304
Dividends		109,749
Securities lending income		1,029
Interest		392
Total assets		668,512,522
Liabilities:
Segregated cash from broker		11,133,571
Payable for:
Return of securities loaned		10,883,600
Fund shares redeemed		7,194,198
Securities purchased		3,231,450
Management fees		374,090
Distribution and service fees		126,652
Transfer agent and administrative fees		124,697
Portfolio accounting fees		40,350
Miscellaneous		194,095
Total liabilities		33,302,703
Commitments and contingent liabilities (Note 15)		—
Net assets	$	635,209,819
Net assets consist of:
Paid in capital	$	631,799,795
Undistributed net investment income		5,031,017
Accumulated net realized loss on investments		(6,545,902	)
Net unrealized appreciation on investments		4,924,909
Net assets	$	635,209,819
A-Class:
Net assets	$	10,122,751
Capital shares outstanding		424,676
Net asset value per share	$	23.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	25.03
C-Class:
Net assets	$	3,632,494
Capital shares outstanding		165,069
Net asset value per share	$	22.01
H-Class:
Net assets	$	621,454,574
Capital shares outstanding		26,005,389
Net asset value per share	$	23.90

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	772,788
Dividends from securities of unaffiliated issuers		479,450
Income from securities lending, net		53,602
Interest		22,967
Total investment income		1,328,807
Expenses:
Management fees		1,478,728
Transfer agent and administrative fees		492,909
Distribution and service fees:
A-Class		30,109
C-Class		41,676
H-Class		452,381
Portfolio accounting fees		178,891
Custodian fees		22,963
Trustees’ fees*		9,684
Line of credit fees		157
Miscellaneous		215,487
Total expenses		2,922,985
Net investment loss		(1,594,178	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(476,303	)
Investments in affiliated issuers		(179,045	)
Swap agreements		1,378,969
Futures contracts		(1,139,814	)
Net realized loss		(416,193	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(3,169	)
Investments in affiliated issuers		215,582
Swap agreements		1,362,705
Futures contracts		3,408,616
Net change in unrealized appreciation (depreciation)		4,983,734
Net realized and unrealized gain		4,567,541
Net increase in net assets resulting from operations	$	2,973,363

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

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

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,594,178	)	$	(1,603,218	)
Net realized gain (loss) on investments		(416,193	)		9,208,805
Net change in unrealized appreciation (depreciation) on investments		4,983,734			(2,328,385	)
Net increase in net assets resulting from operations		2,973,363			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		111,821,153			191,756,789
C-Class		6,349,542			21,843,169
H-Class		1,444,459,495			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		(114,269,767	)		(188,407,437	)
C-Class		(7,975,098	)		(23,916,955	)
H-Class		(913,063,243	)		(894,910,014	)
Net increase (decrease) from capital share transactions		527,322,082			(331,002,818	)
Net increase (decrease) in net assets		530,295,445			(346,934,044	)
Net assets:
Beginning of year		104,914,374			451,848,418
End of year	$	635,209,819		$	104,914,374
Undistributed net investment income at end of year	$	5,031,017		$	—
Capital share activity:
Shares sold
A-Class		4,778,273			7,639,730
C-Class		295,743			915,383
H-Class		61,500,842			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		(4,899,564	)		(7,648,199	)
C-Class		(370,259	)		(1,002,209	)
H-Class		(39,302,340	)		(35,953,373	)
Net increase (decrease) in shares		22,002,695			(13,411,189	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 167

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	22.89		$	25.16		$	22.93		$	21.98		$	20.42
Income (loss) from investment operations:
Net investment income (loss)a		(.15	)		(.30	)		(.22	)		(.27	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		1.10			2.13			3.13			1.77			3.37
Total from investment operations		.95			1.83			2.91			1.50			3.07
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)
Net realized gains		—			(2.96	)		(.25	)		—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)
Net asset value, end of period	$	23.84		$	22.89		$	25.16		$	22.93		$	21.98
Total Returnb		4.06	%		7.53	%		12.86	%		6.94	%		15.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,123		$	12,499		$	10,777		$	11,890		$	14,561
Ratios to average net assets:
Net investment income (loss)		(0.63	%)		(1.21	%)		(0.92	%)		(1.21	%)		(1.40	%)
Total expensesc		1.50	%		1.53	%		1.50	%		1.49	%		1.54	%
Portfolio turnover rate		393	%		205	%		95	%		583	%		—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	21.29		$	23.83		$	21.92		$	21.19		$	19.87
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.44	)		(.37	)		(.45	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		.99			2.00			2.96			1.73			3.28
Total from investment operations		.72			1.56			2.59			1.28			2.83
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)
Net realized gains		—			(2.96	)		(.25	)		—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)
Net asset value, end of period	$	22.01		$	21.29		$	23.83		$	21.92		$	21.19
Total Returnb		3.33	%		6.74	%		11.98	%		6.16	%		14.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,632		$	5,100		$	6,958		$	7,343		$	6,129
Ratios to average net assets:
Net investment income (loss)		(1.25	%)		(1.89	%)		(1.62	%)		(2.10	%)		(2.13	%)
Total expensesc		2.25	%		2.28	%		2.27	%		2.25	%		2.28	%
Portfolio turnover rate		393	%		205	%		95	%		583	%		—

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	22.94		$	25.12		$	22.90		$	21.95		$	20.38
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.24	)		(.24	)		(.28	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		1.15			2.16			3.14			1.78			3.38
Total from investment operations		.96			1.92			2.90			1.50			3.08
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)
Net realized gains		—			(2.96	)		(.25	)		—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)
Net asset value, end of period	$	23.90		$	22.94		$	25.12		$	22.90		$	21.95
Total Returnb		4.14	%		7.86	%		12.83	%		6.95	%		15.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	621,455		$	87,315		$	434,113		$	266,950		$	116,106
Ratios to average net assets:
Net investment income (loss)		(0.81	%)		(0.97	%)		(0.99	%)		(1.26	%)		(1.38	%)
Total expensesc		1.46	%		1.53	%		1.51	%		1.49	%		1.53	%
Portfolio turnover rate		393	%		205	%		95	%		583	%		—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 169

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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.

Inverse High Yield Strategy Fund H-Class returned -8.84% for the one year period ended March 31, 2015. For comparison, the Barclays U.S. Corporate High Yield Index returned 2.00%.

The communications and consumer non-cyclical industries contributed most to the performance of the Barclays High Yield index. The energy and basic industry segments detracted most.

From a ratings perspective, credits with a BB+ rating contributed most to the performance of the Barclays High Yield index, followed by holdings with a lower, BB rating. The category of bonds detracting most from return was that with a CCC+ rating.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31,2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

170 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	22.4%
Guggenheim Strategy Fund II	22.3%
Total	44.7%
“Largest Holdings” exclude any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (04/16/07)
A-Class Shares	-9.59%	-12.97%	-10.94%
A-Class Shares with sales charge†	-13.88%	-13.81%	-11.48%
C-Class Shares	-9.49%	-13.48%	-11.48%
C-Class Shares with CDSC‡	-10.40%	-13.48%	-11.48%
H-Class Shares	-8.84%	-12.78%	-10.79%
Barclays U.S. Corporate High Yield Index	2.00%	8.59%	7.83%
S&P 500 Index	12.73%	14.47%	6.67%

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

THE RYDEX FUNDS ANNUAL REPORT | 171

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 44.7%
Guggenheim Strategy Fund I1		29,027	$	722,765
Guggenheim Strategy Fund II1		29,003		722,472
Total Mutual Funds
(Cost $1,443,200)				1,445,237
	Face Amount
REPURCHASE AGREEMENTS††,2 - 51.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,313,437		1,313,437
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		200,721		200,721
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		161,112		161,112
Total Repurchase Agreements
(Cost $1,675,270)				1,675,270
Total Investments - 96.6%
(Cost $3,118,470)			$	3,120,507
Other Assets & Liabilities, net - 3.4%				108,903
Total Net Assets - 100.0%			$	3,229,410

	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
June 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $2,884,875)		24	$	(17,919	)

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION PURCHASED††
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Received	Unrealized Depreciation
CDX.NA.HY.24 Index	Barclays Bank plc	5.00%	06/20/20	$3,250,000	$3,479,574	$(219,902)	$(9,672)

†	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.
	plc — Public Limited Company

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $1,443,200)	$	1,445,237
Repurchase agreements, at value (cost $1,675,270)		1,675,270
Total investments (cost $3,118,470)		3,120,507
Segregated cash with broker		356,047
Receivables:
Fund shares sold		6,337
Dividends		1,961
Interest		2
Total assets		3,484,854
Liabilities:
Unamortized upfront premiums received on credit default swaps		219,902
Unrealized depreciation on swap agreements		9,672
Payable for:
Protection fees on credit default swaps		5,417
Variation margin		4,688
Management fees		4,058
Securities purchased		1,961
Distribution and service fees		1,803
Transfer agent and administrative fees		1,353
Portfolio accounting fees		541
Fund shares redeemed		6
Miscellaneous		6,043
Total liabilities		255,444
Commitments and contingent liabilities (Note 15)		—
Net assets	$	3,229,410
Net assets consist of:
Paid in capital	$	20,247,978
Accumulated net investment loss		(81,106	)
Accumulated net realized loss on investments		(16,911,908	)
Net unrealized depreciation on investments		(25,554	)
Net assets	$	3,229,410
A-Class:
Net assets	$	371,578
Capital shares outstanding		19,318
Net asset value per share	$	19.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	20.19
C-Class:
Net assets	$	734,014
Capital shares outstanding		40,090
Net asset value per share	$	18.31
H-Class:
Net assets	$	2,123,818
Capital shares outstanding		109,045
Net asset value per share	$	19.48

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	89,136
Interest		1,459
Total investment income		90,595
Expenses:
Management fees		125,702
Transfer agent and administrative fees		41,901
Distribution and service fees:
A-Class		22,920
C-Class		10,400
H-Class		16,380
Portfolio accounting fees		16,760
Registration fees		14,469
Custodian fees		1,991
Trustees’ fees*		1,480
Miscellaneous		9,172
Total expenses		261,175
Net investment loss		(170,580	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(45,935	)
Swap agreements		(992,480	)
Futures contracts		(1,000,814	)
Net realized loss		(2,039,229	)
Net change in unrealized appreciation (depreciation) on:
Investments		2,037
Swap agreements		14,031
Futures contracts		(43,580	)
Net change in unrealized appreciation (depreciation)		(27,512	)
Net realized and unrealized loss		(2,066,741	)
Net decrease in net assets resulting from operations	$	(2,237,321	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 173

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(170,580	)	$	(457,841	)
Net realized loss on investments		(2,039,229	)		(1,803,174	)
Net change in unrealized appreciation (depreciation) on investments		(27,512	)		31,991
Net decrease in net assets resulting from operations		(2,237,321	)		(2,229,024	)
Capital share transactions:
Proceeds from sale of shares
A-Class		159,702,077			143,759,590
C-Class		1,688,742			10,211,762
H-Class		127,515,789			283,765,472
Cost of shares redeemed
A-Class		(163,681,021	)		(137,648,553	)
C-Class		(2,426,887	)		(10,474,214	)
H-Class		(126,501,026	)		(289,618,110	)
Net decrease from capital share transactions		(3,702,326	)		(4,053	)
Net decrease in net assets		(5,939,647	)		(2,233,077	)
Net assets:
Beginning of year		9,169,057			11,402,134
End of year	$	3,229,410		$	9,169,057
Accumulated net investment loss at end of year	$	(81,106	)	$	(181,265	)
Capital share activity:
Shares sold
A-Class		7,767,769			6,275,459
C-Class		86,161			459,566
H-Class		6,204,216			12,130,203
Shares redeemed
A-Class		(7,990,799	)		(6,039,639	)
C-Class		(123,220	)		(471,060	)
H-Class		(6,209,959	)		(12,398,442	)
Net decrease in shares		(265,832	)		(43,913	)

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	21.27		$	23.98		$	28.15		$	31.99		$	38.51
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.35	)		(.37	)		(.43	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(1.83	)		(2.36	)		(3.80	)		(3.41	)		(6.05	)
Total from investment operations		(2.04	)		(2.71	)		(4.17	)		(3.84	)		(6.52	)
Net asset value, end of period	$	19.23		$	21.27		$	23.98		$	28.15		$	31.99
Total Returnb		(9.59	%)		(11.30	%)		(14.81	%)		(11.98	%)		(16.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	372		$	5,155		$	157		$	556		$	1,512
Ratios to average net assets:
Net investment income (loss)		(1.02	%)		(1.52	%)		(1.38	%)		(1.39	%)		(1.39	%)
Total expensesc		1.52	%		1.54	%		1.49	%		1.51	%		1.53	%
Portfolio turnover rate		784	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	20.23		$	22.98		$	27.21		$	31.12		$	37.77
Income (loss) from investment operations:
Net investment income (loss)a		(.30	)		(.50	)		(.53	)		(.55	)		(.72	)
Net gain (loss) on investments (realized and unrealized)		(1.62	)		(2.25	)		(3.70	)		(3.36	)		(5.93	)
Total from investment operations		(1.92	)		(2.75	)		(4.23	)		(3.91	)		(6.65	)
Net asset value, end of period	$	18.31		$	20.23		$	22.98		$	27.21		$	31.12
Total Returnb		(9.49	%)		(11.97	%)		(15.51	%)		(12.60	%)		(17.61	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	734		$	1,561		$	2,037		$	693		$	2,535
Ratios to average net assets:
Net investment income (loss)		(1.53	%)		(2.28	%)		(2.13	%)		(1.87	%)		(2.13	%)
Total expensesc		2.25	%		2.30	%		2.25	%		2.26	%		2.28	%
Portfolio turnover rate		784	%		—			—			—			—

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 175

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	21.37		$	24.04		$	28.22		$	32.04		$	38.60
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.35	)		(.36	)		(.47	)		(.50	)
Net gain (loss) on investments (realized and unrealized)		(1.70	)		(2.32	)		(3.82	)		(3.35	)		(6.06	)
Total from investment operations		(1.89	)		(2.67	)		(4.18	)		(3.82	)		(6.56	)
Net asset value, end of period	$	19.48		$	21.37		$	24.04		$	28.22		$	32.04
Total Returnb		(8.84	%)		(11.11	%)		(14.81	%)		(11.92	%)		(16.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,124		$	2,453		$	9,208		$	13,357		$	9,699
Ratios to average net assets:
Net investment income (loss)		(0.93	%)		(1.50	%)		(1.38	%)		(1.51	%)		(1.38	%)
Total expensesc		1.51	%		1.52	%		1.50	%		1.51	%		1.53	%
Portfolio turnover rate		784	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

For the one-year period ended March 31, 2015, U.S. Government Money Market Fund returned 0.00%.

Interest rates defied expectations and continued to decline throughout the period. Short-term government agency and repurchase agreement rates were range-bound through the third quarter of 2014, and remained so for much of the rest of the period. Short-term rates were “anchored” by the Federal Reserve’s monetary policy. The Fed’s chair, Janet Yellen, maintained that the central bank would keep short-term rates low until the data around employment and inflation indicated otherwise. The Federal Reserve controls the fed funds rate. This rate, which guides other short-term rates, has been set close to zero since 2008.

Even though strict regulations of government money market funds can result in lower yields, such funds may also have a high degree of safety and liquidity.

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

An investment in the U.S. Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Holdings Diversification (Market Exposure as % of Net Assets)

FADN — Federal Agency Discount Note

FAN — Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Money Market Class	0.00%	0.00%	1.18%

* The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes.

THE RYDEX FUNDS ANNUAL REPORT | 177

SCHEDULE OF INVESTMENTS	March 31, 2015
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 36.1%
Farmer Mac1
0.01% due 04/01/15	$	200,000,000	$	200,000,000
0.15% due 09/25/15		15,000,000		14,989,306
0.17% due 10/08/15		10,000,000		9,991,028
0.20% due 11/12/15		8,000,000		7,990,250
Total Farmer Mac				232,970,584
Freddie Mac2
0.14% due 10/01/15		10,000,000		9,992,883
Federal Farm Credit Bank1
0.14% due 09/28/15		5,000,000		4,996,500
Federal Home Loan Bank1
0.15% due 10/05/15		3,000,000		2,997,663
Total Federal Agency Discount Notes
(Cost $250,957,630)				250,957,630
FEDERAL AGENCY NOTES†† - 11.5%
Federal Home Loan Bank1
0.35% due 03/07/16		20,000,000		20,000,000
0.30% due 12/30/15		20,000,000		20,000,000
0.17% due 07/22/15		10,000,000		10,000,000
0.12% due 07/17/15		10,000,000		9,998,752
Total Federal Home Loan Bank				59,998,752
Federal Farm Credit Bank1
0.19% due 10/01/15		10,000,000		10,000,000
Farmer Mac1
0.19% due 09/09/15		10,000,000		9,998,323
Total Federal Agency Notes
(Cost $79,997,075)				79,997,075
COMMERCIAL PAPER†† - 21.1%
UBS Finance Delaware LLC
0.27% due 04/17/15		15,000,000		14,998,200
Sheffield Receivables Corporation
0.18% due 05/04/15		15,000,000		14,997,525
General RE Corp.
0.13% due 06/08/15		15,000,000		14,996,317
AstraZeneca plc
0.11% due 06/22/15		15,000,000		14,996,242
American Honda Finance Corp.
0.12% due 06/23/15		15,000,000		14,995,850
ING US Funding, LLC
0.25% due 06/03/15		10,000,000		9,995,682
0.24% due 06/03/15		5,000,000		4,997,841
Total ING US Funding, LLC				14,993,523
Prudential plc
0.20% due 07/10/15		15,000,000		14,991,667
Nestle Capital Corp.
0.20% due 07/13/15		15,000,000		14,991,417
General Electric Capital Corp.
0.24% due 09/02/15		15,000,000		14,984,600
Abbott Laboratories
0.13% due 04/10/15		10,000,000		9,999,675
Societe Generale North America, Inc.
0.33% due 06/05/15		1,200,000		1,199,285
Total Commercial Paper
(Cost $146,144,301)				146,144,301
REPURCHASE AGREEMENTS†† - 48.2%
Individual Repurchase Agreement
HSBC Group Issued 03/31/15 at 0.03% due 04/01/15 (secured by U.S. Treasury Strips, 0.03% 05/15/18 – 02/15/24 with a value of $175,536,100) to be repurchased at $150,797,921		150,797,795		150,797,795
Joint Repurchase Agreements3
HSBC Group issued 03/31/15 at 0.03% due 04/01/15		144,230,067		144,230,067
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		22,041,416		22,041,416
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		17,691,859		17,691,859
Total Repurchase Agreements
(Cost $334,761,137)				334,761,137
Total Investments - 116.9%
(Cost $811,860,143)			$	811,860,143
Other Assets & Liabilities, net - (16.9)%				(117,311,408	)
Total Net Assets - 100.0%			$	694,548,735

††	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	Repurchase Agreements — See Note 5.
	plc — Public Limited Company

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $477,099,006)	$	477,099,006
Repurchase agreements, at value (cost $334,761,137)		334,761,137
Total investments (cost $811,860,143)		811,860,143
Receivables:
Fund shares sold		23,911,117
Interest		40,092
Total assets		835,811,352
Liabilities:
Overdraft due to custodian bank		2,521
Payable for:
Fund shares redeemed		140,880,870
Portfolio accounting fees		2,460
Transfer agent and administrative fees		1,034
Miscellaneous		375,732
Total liabilities		141,262,617
Commitments and contingent liabilities (Note 15)		—
Net assets	$	694,548,735
Net assets consist of:
Paid in capital	$	694,566,525
Undistributed net investment income		—
Accumulated net realized loss on investments		(17,790	)
Net assets	$	694,548,735
Capital shares outstanding		695,142,766
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Interest	$	657,625
Total investment income		657,625
Expenses:
Management fees		4,110,336
Transfer agent and administrative fees		1,644,153
Portfolio accounting fees		582,481
Registration fees		581,800
Custodian fees		95,887
Trustees’ fees*		60,412
Line of credit fees		5
Miscellaneous		479,720
Total expenses		7,554,794
Less:
Expenses waived by service company		(2,223,213	)
Expenses waived by Adviser		(4,674,256	)
Total waived expenses		(6,897,469	)
Net expenses		657,325
Net investment income		300
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(17,790	)
Net realized loss		(17,790	)
Net decrease in net assets resulting from operations	$	(17,490	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 179

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	300		$	337
Net realized gain (loss) on investments		(17,790	)		21,943
Net increase (decrease) in net assets resulting from operations		(17,490	)		22,280
Distributions to shareholders from:
Net investment income		(526	)		(335	)
Net realized gains		(21,943	)		(1,204	)
Total distributions to shareholders		(22,469	)		(1,539	)
Capital share transactions:
Proceeds from sale of shares		10,417,562,989			12,276,487,338
Distributions reinvested		22,085			1,240
Cost of shares redeemed		(10,503,131,193	)		(12,344,744,809	)
Net decrease from capital share transactions		(85,546,119	)		(68,256,231	)
Net decrease in net assets		(85,586,078	)		(68,235,490	)
Net assets:
Beginning of year		780,134,813			848,370,303
End of year	$	694,548,735		$	780,134,813
Undistributed net investment income at end of year	$	—		$	225
Capital share activity:
Shares sold		10,417,562,989			12,276,487,140
Shares issued from reinvestment of distributions		22,293			1,240
Shares redeemed		(10,503,131,193	)		(12,344,744,809	)
Net decrease in shares		(85,545,911	)		(68,256,429	)

180 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Period Ended March 28, 2013			Period Ended March 31, 2012			Period Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)		—	b		—	b		—	b		—	b		—	b
Net gain (loss) on investments (realized and unrealized)		—	b		—	b		—	b		—	b		—	b
Total from investment operations		—	b		—	b		—	b		—	b		—	b
Less distributions from:
Net investment income		(—	)b		(—	)b		(—	)b		(—	)b		(—	)b
Net realized gains		(—	)b		(—	)b		—			(—	)b		(—	)b
Total distributions		(—	)b		(—	)b		(—	)b		(—	)b		(—	)b
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	694,549		$	780,135		$	848,370		$	607,565		$	833,899
Ratios to average net assets:
Net investment income (loss)		0.00	%d		0.00	%d		0.00	%d		0.00	%d		0.01	%
Total expenses		0.92	%		0.93	%		0.95	%		0.91	%		0.94	%
Net expensesc		0.08	%		0.09	%		0.17	%		0.11	%		0.22	%
Portfolio turnover rate		—			—			—			—			—

a	Effective June 15, 2012, the Fund’s Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares and Investor2 Class shares were converted into the newly created Money Market Class. The financial highlights for periods prior to that date reflect the performance of the former Investor Class.
b	Less than $0.01 per share.
c	Net expense information reflects the expense ratios after expense waivers.
d	Less than 0.01%.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 181

NOTES TO FINANCIAL STATEMENTS

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 March 31, 2015, the Trust consisted of fifty-two funds.

This report covers the Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, and U.S. Government Money Market Fund (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 Funds operate as investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities 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 each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Russell 2000^® Fund and the S&P 500^® Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2015, 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

182 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds' securities 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”) and closed-end investment companies (“CEFs”) 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, provided such amount 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 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 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.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security).

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NOTES TO FINANCIAL STATEMENTS (continued)

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

C. 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.

D. 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.

E. 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.

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. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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, their 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 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 leveraged Funds described in this report 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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 their annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
Nova Fund	0.75%
S&P 500® Fund	0.75%
Inverse S&P 500® Strategy Fund	0.90%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	0.90%
Inverse NASDAQ-100® Strategy Fund	0.90%
Mid-Cap 1.5x Strategy Fund	0.90%
Inverse Mid-Cap Strategy Fund	0.90%
Russell 2000® 1.5x Strategy Fund	0.90%
Russell 2000® Fund	0.75%
Inverse Russell 2000® Strategy Fund	0.90%
Government Long Bond 1.2x Strategy Fund	0.50%
Inverse Government Long Bond Strategy Fund	0.90%
High Yield Strategy Fund	0.75%
Inverse High Yield Strategy Fund	0.75%
U.S. Government Money Market Fund	0.50%

GI has contractually agreed to reduce fees and/or reimburse expenses for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund to the extent necessary to keep net operating expenses for A-Class, C-Class and H-Class shares (including Rule 12b-1 fees if any) (excluding brokerage, dividends on securities sold short, acquired fund fees and expenses, interest, taxes, litigation, indemnification, and extraordinary expenses) from exceeding 1.35%, 2.10% and 1.35% of the Fund’s A-Class, C-Class and H-Class shares average daily net assets, respectively. The Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement includes Excluded Expenses and, thus, from time to time may be higher than 1.35%, 2.10% and 1.35%, respectively. This agreement may be terminated only with the approval of the Fund’s Board of Trustees. In any event, this undertaking will continue until November 28, 2015.

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 and Administrative 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. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services. With regard to Advisor Class shares only, if a Service Provider provides shareholder services, GFD will receive 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

186 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

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 year ended March 31, 2015, GFD retained sales charges of $360,571 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.

THE RYDEX FUNDS ANNUAL REPORT | 187

NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the inputs used to value the Funds’ investments at March 31, 2015:

	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
Nova Fund	$	141,762,279	$	51,181	$	5,717,647	$	287,457	$	—	$	147,818,564
S&P 500® Fund		268,606,807		41,574		26,757,947		7,629		—		295,413,957
Inverse S&P 500® Strategy Fund		21,538,257		123,544		52,559,292		—		—		74,221,093
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		289,845,030		392,662		12,012,350		153,803		—		302,403,845
Inverse NASDAQ-100® Strategy Fund		1,924,197		4,490		6,026,650		—		—		7,955,337
Mid-Cap 1.5x Strategy Fund		15,085,461		518		7,410,657		275,813		—		22,772,449
Inverse Mid-Cap Strategy Fund		707,700		—		2,960,147		—		—		3,667,847
Russell 2000® 1.5x Strategy Fund		15,312,290		14,055		2,072,129		170,033		1,776		17,570,283
Russell 2000® Fund		481,683		345,765		44,015,452		46,256		3,963		44,893,119
Inverse Russell 2000® Strategy Fund		2,144,238		5,760		6,498,044		—		—		8,648,042
Government Long Bond 1.2x Strategy Fund		10,165,485		2,433,953		147,007,955		—		—		159,607,393
Inverse Government Long Bond Strategy Fund		53,244,134		—		258,355,211		—		—		311,599,345
High Yield Strategy Fund		123,832,085		2,913,204		446,681,226		1,654,360		—		575,080,875
Inverse High Yield Strategy Fund		1,445,237		—		1,675,270		—		—		3,120,507
U.S. Government Money Market Fund		—		—		811,860,143		—		—		811,860,143
Liabilities
S&P 500® Fund	$	—	$	—	$	—	$	22,129	$	—	$	22,129
Inverse S&P 500® Strategy Fund		—		—		—		440,549		—		440,549
Inverse NASDAQ-100® Strategy Fund		—		—		—		27,392		—		27,392
Inverse Mid-Cap Strategy Fund		—		—		—		44,532		—		44,532
Inverse Russell 2000® Strategy Fund		—		—		—		72,830		—		72,830
Inverse Government Long Bond Strategy Fund		—		981,736		148,964,418		—		—		149,946,154
Inverse High Yield Strategy Fund		—		17,919		—		9,672		—		27,591

* 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 March 31, 2015, Russell 2000^® 1.5x Strategy Fund and Russell 2000^® Fund had securities with a total value of $1,327 and $3,103 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.

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.

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At March 31, 2015, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Group			U.S. Treasury Strips
0.03%			0.00%
Due 04/01/15	$922,646,685	$922,647,454	02/15/24 - 05/15/44	$1,876,361,900	$941,099,692
RBC Capital Markets			U.S. Treasury Note
0.05%			2.13%
Due 04/01/15	141,000,000	141,000,196	12/31/21	92,325,000	95,818,749
			U.S. TIP Bond
			3.88%
			04/25/29	22,465,400	48,001,266
UMB Financial Corp.			U.S. Treasury Notes
0.03%			1.38% - 3.25%
Due 04/01/15	113,175,677	113,175,772	11/30/15 - 12/31/16	109,984,100	115,439,211

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.

At March 31, 2015, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Nova Fund	$	30,716	$	31,450
S&P 500® Fund		296,079		306,125
Mid-Cap 1.5x Strategy Fund		24,184		24,750
Russell 2000® 1.5x Strategy Fund		79,905		85,106
Russell 2000® Fund		5,423		6,507
High Yield Strategy Fund		10,605,088		10,883,600

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NOTES TO FINANCIAL STATEMENTS (continued)

Cash collateral received was invested in the following joint repurchase agreements at March 31, 2015:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.10%			0.00%
Due 04/01/15	$7,343,923	$7,343,943	11/15/17 - 07/15/37	$8,190,765	$5,637,399
			Federal Farm Credit Bank
			0.19%
			06/12/17	1,853,312	1,853,559
BNP Paribas Securities Corp.			U.S. Treasury Note
0.10%			2.13%
Due 04/01/15	2,526,309	2,526,316	12/31/21	1,161,256	1,196,967
			U.S. Treasury Bond
			4.38%
			05/15/41	1,002,210	1,379,870
Barclays Capital Corp.			U.S. Treasury Strips
0.10%			0.00%
Due 04/01/15	1,303,987	1,303,991	05/15/20 - 05/15/44	2,017,237	1,198,528
			U.S. Treasury Bond
			4.75%
			02/15/41	91,529	131,544

There was also $163,319 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 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.

The table on page 165 included in the Schedule of Investments summarizes the information with regard to sold protection on credit default swap contracts as of March 31, 2015.

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NOTES TO FINANCIAL STATEMENTS (continued)

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	—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	x	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
Inverse Government Long Bond Strategy Fund	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	80%	—
S&P 500® Fund	20%	—
Inverse S&P 500® Strategy Fund	—	100%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	125%	—
Inverse NASDAQ-100® Strategy Fund	—	100%
Mid-Cap 1.5x Strategy Fund	85%	—
Inverse Mid-Cap 1.5x Strategy Fund	—	100%
Russell 2000® 1.5x Strategy Fund	100%	—
Russell 2000® Fund	50%	—
Inverse Russell 2000® Strategy	—	100%
Government Long Bond 1.2x Strategy Fund	65%	—
Inverse Government Long Bond Strategy Fund	—	50%
High Yield Strategy Fund*	80%	—
Inverse High Yield Strategy Fund*	—	90%

* These Funds utilize a combination of currency and/or financial-linked derivatives to obtain exposure to their benchmarks. The gross derivative instrument exposure is 170% and 190% 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 March 31, 2015:

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

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at March 31, 2015
Nova Fund	$	51,181	$	287,457	$	—	$	—	$	338,638
S&P 500® Fund		41,574		7,629		—		—		49,203
Inverse S&P 500® Strategy Fund		123,544		—		—		—		123,544
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		392,662		153,803		—		—		546,465
Inverse NASDAQ-100® Strategy Fund		4,490		—		—		—		4,490
Mid-Cap 1.5x Strategy Fund		518		275,813		—		—		276,331
Russell 2000® 1.5x Strategy Fund		14,055		170,033		—		—		184,088
Russell 2000® Fund		345,765		46,256		—		—		392,021
Inverse Russell 2000® Strategy Fund		5,760		—		—		—		5,760
Government Long Bond 1.2x Strategy Fund		—		—		2,433,953		—		2,433,953
High Yield Strategy Fund		—		—		2,913,204		1,654,360		4,567,564

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest  Rate Contracts*		Swaps Credit Default Contracts		Total Value at March 31, 2015
S&P 500® Fund	$	—	$	22,129	$	—	$	—	$	22,129
Inverse S&P 500® Strategy Fund		—		440,549		—		—		440,549
Inverse NASDAQ-100® Strategy Fund		—		27,392		—		—		27,392
Inverse Mid-Cap Strategy Fund		—		44,532		—		—		44,532
Inverse Russell 2000® Strategy Fund		—		72,830		—		—		72,830
Inverse Government Long Bond Strategy Fund		—		—		981,736		—		981,736
Inverse High Yield Strategy Fund		—		—		17,919		9,672		27,591

* 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 year ended March 31, 2015:

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

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NOTES TO FINANCIAL STATEMENTS (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 year ended March 31, 2015:

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	$	5,670,134		$	5,057,830		$	—		$	—		$	10,727,964
S&P 500® Fund		1,578,529			3,929,346			—			—			5,507,875
Inverse S&P 500® Strategy Fund		(797,822	)		(15,580,972	)		—			—			(16,378,794	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(2,017,498	)		(11,312,459	)		—			—			(13,329,957	)
Inverse NASDAQ-100® Strategy Fund		206,203			(3,013,781	)		—			—			(2,807,578	)
Mid-Cap 1.5x Strategy Fund		3,137,237			4,069,403			—			—			7,206,640
Inverse Mid-Cap Strategy Fund		(64,785	)		(318,367	)		—			—			(383,152	)
Russell 2000® 1.5x Strategy Fund		1,055,198			938,921			—			—			1,994,119
Russell 2000® Fund		238,052			2,690,705			—			—			2,928,757
Inverse Russell 2000® Strategy Fund		(215,228	)		(2,378,935	)		—			—			(2,594,163	)
Government Long Bond 1.2x Strategy Fund		—			—			16,256,763			—			16,256,763
Inverse Government Long Bond Strategy Fund		—			—			(33,058,090	)		—			(33,058,090	)
High Yield Strategy Fund		—			—			(1,139,814	)		1,378,969			239,155
Inverse High Yield Strategy Fund		—			—			(1,000,814	)		(992,480	)		(1,993,294	)

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
Nova Fund	$	(221,076	)	$	(49,146	)	$	—		$	—	$	(270,222	)
S&P 500® Fund		(433,297	)		(624,866	)		—			—		(1,058,163	)
Inverse S&P 500® Strategy Fund		186,535			148,570			—			—		335,105
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		392,662			153,803			—			—		546,465
Inverse NASDAQ-100® Strategy Fund		4,490			(47,717	)		—			—		(43,227	)
Mid-Cap 1.5x Strategy Fund		(54,360	)		127,516			—			—		73,156
Inverse Mid-Cap Strategy Fund		—			8,735			—			—		8,735
Russell 2000® 1.5x Strategy Fund		116,668			76,757			—			—		193,425
Russell 2000® Fund		416,185			(10,812	)		—			—		405,373
Inverse Russell 2000® Strategy Fund		5,760			117,773			—			—		123,533
Government Long Bond 1.2x Strategy Fund		—			—			2,144,605			—		2,144,605
Inverse Government Long Bond Strategy Fund		—			—			(511,861	)		—		(511,861	)
High Yield Strategy Fund		—			—			3,408,616			1,362,705		4,771,321
Inverse High Yield Strategy Fund		—			—			(43,580	)		14,031		(29,549	)

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 Received		Net Amount
Nova Fund	Swap equity contracts	$	287,457	$	—	��	$	287,457	$	—	$	—	$	287,457
S&P 500® Fund	Swap equity contracts		7,629		—			7,629		—		—		7,629
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		153,803		—			153,803		—		—		153,803
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		275,813		—			275,813		—		—		275,813
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		170,033		—			170,033		—		—		170,033
Russell 2000® Fund	Swap equity contracts		46,256		—			46,256		—		—		46,256

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
S&P 500® Fund	Swap equity contracts	$	22,129	$	—	$	22,129	$	—	$	22,129	$	—
Inverse S&P 500® Strategy Fund	Swap equity contracts		440,549		—		440,549		—		440,549		—
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		27,392		—		27,392		—		27,392		—
Inverse Mid-Cap Strategy Fund	Swap equity contracts		44,532		—		44,532		—		44,532		—
Inverse Russell 2000® Strategy Fund	Swap equity contracts		72,830		—		72,830		—		72,830		—

¹ Exchange-traded futures and centrally cleared swaps are excluded from these reported amounts.

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NOTES TO FINANCIAL STATEMENTS (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.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended March 31, 2015, the following capital loss carryforward amounts were expired or used:

Fund	Amount
Nova Fund	$	16,397,469
Inverse S&P 500® Strategy Fund		59,724,340
Inverse NASDAQ-100® Strategy Fund		15,380,081
Inverse Mid-Cap Strategy Fund		3,855,787
Inverse Russell 2000® Strategy Fund		13,474,576
Government Long Bond 1.2x Strategy Fund		36,484,848
Inverse Government Long Bond Strategy Fund		60,731,802

The tax character of distributions paid during the year ended March 31, 2015 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Return of Capital		Total Distributions
Nova Fund	$	169,151	$	—	$	—	$	169,151
S&P 500® Fund		1,683,213		2,899,418		—		4,582,631
Inverse S&P 500® Strategy Fund		—		—		—		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund *		—		—		—		—
Inverse NASDAQ-100® Strategy Fund		—		—		—		—
Mid-Cap 1.5x Strategy Fund		227,935		409,228		—		637,163
Inverse Mid-Cap Strategy Fund		—		—		—		—
Russell 2000® 1.5x Strategy Fund		—		244,398		—		244,398
Russell 2000® Fund		2,480,559		965,945		—		3,446,504
Inverse Russell 2000® Strategy Fund		—		—		—		—
Government Long Bond 1.2x Strategy Fund		1,497,181		—		18,073		1,515,254
Inverse Government Long Bond Strategy Fund		—		—		—		—
High Yield Strategy Fund		—		—		—		—
Inverse High Yield Strategy Fund		—		—		—		—
U.S. Government Money Market Fund		22,469		—		—		22,469

* Monthly Rebalance NASDAQ-100^® 2x Strategy Fund commenced operations on November 28, 2014.

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2014 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Return of Capital		Total Distributions
Nova Fund	$	—	$	—	$	—	$	—
S&P 500® Fund		402,265		—		—		402,265
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		2,441,958		—		—		2,441,958
Inverse Russell 2000® Strategy Fund		—		—		—		—
Government Long Bond 1.2x Strategy Fund		1,710,481		—		13,827		1,724,308
Inverse Government Long Bond Strategy Fund		—		—		—		—
High Yield Strategy Fund		21,208,428		—		—		21,208,428
Inverse High Yield Strategy Fund		—		—		—		—
U.S. Government Money Market Fund		1,539		—		—		1,539

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

The tax character of distributable earnings/(accumulated losses) at March 31, 2015 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)			Capital Loss Carryforward and Other Losses
Nova Fund	$	261,033	$	—	$	26,490,485		$	(2,155,773	)
S&P 500® Fund		2,010,881		—		70,213,513			—
Inverse S&P 500® Strategy Fund		—		—		(450,308	)		(320,376,492	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund*		—		—		(3,030,366	)		(16,483,994	)
Inverse NASDAQ-100® Strategy Fund		—		—		(29,720	)		(51,927,921	)
Mid-Cap 1.5x Strategy Fund		1,870,707		—		4,233,582			—
Inverse Mid-Cap Strategy Fund		—		—		(45,608	)		(13,414,626	)
Russell 2000® 1.5x Strategy Fund		978,939		—		2,579,501			—
Russell 2000® Fund		742,891		—		(430,009	)		—
Inverse Russell 2000® Strategy Fund		—		—		(73,734	)		(53,135,496	)
Government Long Bond 1.2x Strategy Fund		—		—		(610,666	)		(12,466,827	)
Inverse Government Long Bond Strategy Fund		—		—		(7,356,609	)		(369,934,149	)
High Yield Strategy Fund		5,031,017		—		1,558,177			(3,179,170	)
Inverse High Yield Strategy Fund		—		—		(8,738	)		(17,009,830	)
U.S. Government Money Market Fund		—		—		—			(17,790	)

* Monthly Rebalance NASDAQ-100^® 2x Strategy Fund commenced operations on November 28, 2014.

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. For taxable years beginning on or before December 22, 2010, such capital losses may be carried forward for a maximum of eight years. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely

196 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

to 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. As of March 31, 2015, capital loss carryforwards for the Funds were as follows:

	Expires in			Expires in			Expires in			Expires in			Unlimited						Total Capital Loss
Fund	2016			2017			2018			2019			Short-Term			Long-Term			Carryforward
Nova Fund	$	—		$	—		$	(2,155,773	)	$	—		$	—		$	—		$	(2,155,773	)
S&P 500® Fund		—			—			—			—			—			—			—
Inverse S&P 500® Strategy Fund		—			—			(107,667,355	)		(64,265,070	)		(127,096,839	)		(21,347,228	)		(320,376,492	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund*		—			—			—			—			(15,509,092	)		(974,902	)		(16,483,994	)
Inverse NASDAQ-100® Strategy Fund		(8,534,020	)		—			(16,105,314	)		(9,266,829	)		(15,709,230	)		(2,281,780	)		(51,897,173	)
Mid-Cap 1.5x Strategy Fund		—			—			—			—			—			—			—
Inverse Mid-Cap Strategy Fund		(850,800	)		—			(6,411,872	)		(1,499,847	)		(3,836,217	)		(802,288	)		(13,401,024	)
Russell 2000® 1.5x Strategy Fund		—			—			—			—			—			—			—
Russell 2000® Fund		—			—			—			—			—			—			—
Inverse Russell 2000® Strategy Fund		(7,459,340	)		—			(15,938,452	)		(10,451,551	)		(15,503,898	)		(3,736,896	)		(53,090,137	)
Government Long Bond 1.2x Strategy Fund		—			—			—			—			(11,860,594	)		(606,233	)		(12,466,827	)
Inverse Government Long Bond Strategy Fund		(2,188,094	)		(24,167,315	)		(68,305,233	)		(23,242,075	)		(203,586,931	)		(46,936,789	)		(368,426,437	)
High Yield Strategy Fund		—			—			—			—			(3,179,170	)		—			(3,179,170	)
Inverse High Yield Strategy Fund		—			—			(3,356,295	)		(4,361,182	)		(8,584,610	)		(626,637	)		(16,928,724	)
U.S. Government Money Market Fund		—			—			—			—			(17,790	)		—			(17,790	)

* Monthly Rebalance NASDAQ-100^® 2x Strategy Fund commenced operations on November 28, 2014.

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are typically due to late year loss deferrals, losses deferred due to wash sales, utilization of earnings and profits on shareholder redemptions, and "mark to market" of futures contracts and passive foreign investment companies (PFICs) for tax purposes. Additional differences may result from tax treatment of net investment losses and expired capital loss carryforwards. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise. These reclassifications have no effect on the net assets or NAV.

On the Statements of Assets and Liabilities the following adjustments were made for permanent book/tax differences:

Fund	Paid In Capital			Undistributed Net Investment Income		Accumulated Net Realized Gain (Loss)
Nova Fund	$	—		$	—	$	—
S&P 500® Fund		10,695,319			—		(10,695,319	)
Inverse S&P 500® Strategy Fund		(61,142,838	)		1,418,498		59,724,340
Monthly Rebalance NASDAQ-100® 2x Strategy Fund*		(340,343	)		340,343		—
Inverse NASDAQ-100® Strategy Fund		(15,495,824	)		115,743		15,380,081
Mid-Cap 1.5x Strategy Fund		10,267,645			337,764		(10,605,409	)
Inverse Mid-Cap Strategy Fund		(3,911,560	)		55,773		3,855,787
Russell 2000® 1.5x Strategy Fund		5,543,013			236,617		(5,779,630	)
Russell 2000® Fund		8,551,027			534,441		(9,085,468	)
Inverse Russell 2000® Strategy Fund		(13,848,367	)		373,791		13,474,576
Government Long Bond 1.2x Strategy Fund		(18,073	)		18,073		—
Inverse Government Long Bond Strategy Fund		(72,487,836	)		11,756,034		60,731,802
High Yield Strategy Fund		(18,266	)		6,625,195		(6,606,929	)
Inverse High Yield Strategy Fund		(848,069	)		270,739		577,330
U.S. Government Money Market Fund		(1	)		1		—

* Monthly Rebalance NASDAQ-100^® 2x Strategy Fund commenced operations on November 28, 2014.

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NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2015, 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	$	121,276,898	$	26,924,444	$	(721,416	)	$	26,203,028
S&P 500® Fund		225,136,740		71,546,049		(1,318,035	)		70,228,014
Inverse S&P 500® Strategy Fund		74,107,308		—		(9,759	)		(9,759	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund*		305,041,549		4,743,905		(7,928,074	)		(3,184,169	)
Inverse NASDAQ-100® Strategy Fund		7,953,175		—		(2,328	)		(2,328	)
Mid-Cap 1.5x Strategy Fund		18,538,349		3,999,984		(42,215	)		3,957,769
Inverse Mid-Cap Strategy Fund		3,668,923		894		(1,970	)		(1,076	)
Russell 2000® 1.5x Strategy Fund		14,976,727		2,535,524		(126,056	)		2,409,468
Russell 2000® Fund		44,977,363		—		(476,265	)		(476,265	)
Inverse Russell 2000® Strategy Fund		8,643,186		—		(904	)		(904	)
Government Long Bond 1.2x Strategy Fund		157,784,106		—		(610,666	)		(610,666	)
Inverse Government Long Bond Strategy Fund		316,216,729		—		(4,617,384	)		(4,617,384	)
High Yield Strategy Fund		570,609,494		—		(96,183	)		(96,183	)
Inverse High Yield Strategy Fund		3,119,572		935		—			935
U.S. Government Money Market Fund		811,860,143		58		(58	)		—

* Monthly Rebalance NASDAQ-100^® 2x Strategy Fund commenced operations on November 28, 2014.

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2015, the following losses reflected in the accompanying financial statements were deferred for Federal income tax purposes until April 1, 2015:

Fund	Ordinary			Capital
Inverse NASDAQ-100® Strategy Fund	$	(30,748	)	$	—
Inverse Mid-Cap Strategy Fund		(13,602	)		—
Inverse Russell 2000® Strategy Fund		(45,359	)		—
Inverse Government Long Bond Strategy Fund		(1,507,712	)		—
Inverse High Yield Strategy Fund		(81,106	)		—

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NOTES TO FINANCIAL STATEMENTS (continued)

11. Securities Transactions

For the year ended March 31, 2015, 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	$	530,171,724	$	493,255,305
S&P 500® Fund		752,072,082		671,227,559
Inverse S&P 500® Strategy Fund		24,159,287		25,500,000
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		448,369,873		151,793,976
Inverse NASDAQ-100® Strategy Fund		6,339,715		4,400,000
Mid-Cap 1.5x Strategy Fund		234,364,884		243,151,492
Inverse Mid-Cap Strategy Fund		1,020,985		310,000
Russell 2000® 1.5x Strategy Fund		158,008,233		160,288,848
Russell 2000® Fund		250,399,869		287,016,638
Inverse Russell 2000® Strategy Fund		13,884,527		11,700,000
Government Long Bond 1.2x Strategy Fund		43,322,223		33,100,000
Inverse Government Long Bond Strategy Fund		102,199,365		48,600,000
High Yield Strategy Fund		389,476,928		293,847,536
Inverse High Yield Strategy Fund		58,102,494		56,600,000
U.S. Government Money Market Fund		—		—

For the year ended March 31, 2015, the cost of purchases and proceeds from sales of government securities were:

Fund	Purchases			Sales
Government Long Bond 1.2x Strategy Fund	$	2,401,754,144		$	2,395,761,618
Inverse Government Long Bond Strategy Fund		(2,067,597,266	)		(2,109,764,434	)

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 is available publicly or upon request. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

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NOTES TO FINANCIAL STATEMENTS (continued)

Transactions during the year ended March 31, 2015 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers	Value 03/31/14		Additions		Reductions			Value 03/31/15		Shares 03/31/15		Investment Income		Realized Gain (Loss)			Capital Gain Distributions
Inverse Government Long Bond Strategy Fund
Guggenheim Strategy Fund I	$	—	$	102,199,366	$	(48,600,000	)	$	53,244,134		2,138,319	$	881,692	$	(161,780	)	$	—
High Yield Strategy Fund
Guggenheim Strategy Fund I	$	—	$	186,816,494	$	(122,500,000	)	$	64,315,270		2,582,943	$	373,644	$	(78,427	)	$	—
Guggenheim Strategy Fund II		22,981,600		127,848,608		(117,000,000	)		33,783,080		1,356,206		399,144		(100,618	)		—
	$	22,981,600	$	314,665,102	$	(239,500,000	)	$	98,098,350			$	772,788	$	(179,045	)	$	—

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 year ended March 31, 2015. The Funds did not have any borrowings under this agreement at March 31, 2015.

The average daily balances borrowed for the year ended March 31, 2015, were as follows:

Fund	Average Daily Balance
Nova Fund	$	44,686
S&P 500® Fund		50,044
Inverse S&P 500® Strategy Fund		84,047
Mid-Cap 1.5x Strategy Fund		61,500
Russell 2000® 1.5x Strategy Fund		79,348
Russell 2000® Fund		2,307
Government Long Bond 1.2x Strategy Fund		805,427
High Yield Strategy Fund		12,361
U.S. Government Money Market Fund		370

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
Inverse Government Long Bond Strategy Fund	February 21, 2014	One-for-Five Reverse Split

The effect of these transactions 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 these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

200 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 of the SLCFC actions: Deutsche Bank Trust Co. Americas v. McGurn, No. 11-1510 (S.D.N.Y.). 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 SLCFC 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. The Court has not yet issued a decision on the appeals.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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

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NOTES TO FINANCIAL STATEMENTS (concluded)

Lyondell shareholders under federal law for intentional fraudulent transfer. A third related action against the former Lyondell shareholders, Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, Adversary Proceeding No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), is pending as well.

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.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. The Court has not yet issued decisions on these motions. Discovery has commenced in these lawsuits.

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.

202 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and

Shareholders of Rydex Series Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund and U.S. Government Money Market Fund (fifteen of the series constituting the Rydex Series Funds) (the “Funds”) as of March 31, 2015, and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds (fifteen of the series constituting the Rydex Series Funds) at March 31, 2015, and the results of their operations, the changes in their net assets, and their financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia

May 21, 2015

THE RYDEX FUNDS ANNUAL REPORT | 203

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code (IRC). Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:

Fund	% Qualifying
Nova Fund	100.00%
S&P 500® Fund	46.60%
Mid-Cap 1.5x Strategy Fund	34.78%
Russell 2000 Strategy Fund	3.46%

The following amounts of taxable ordinary income dividends paid during the fiscal year qualified for the lower income tax rate available to individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003:

Fund	% Qualifying
Nova Fund	100.00%
S&P 500® Fund	46.03%
Mid-Cap 1.5x Strategy Fund	34.78%
Russell 2000 Strategy Fund	2.52%

Additionally, of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively:

Fund	% Qualifying	% STCG Qualifying
S&P 500® Fund	0.00%	100.00%
Mid-Cap 1.5x Strategy Fund	0.00%	100.00%
Russell 2000® Fund	0.00%	100.00%
Government Long Bond 1.2x Strategy Fund	100.00%	0.00%
U.S. Government Money Market Fund	100.00%	100.00%

With respect to the taxable year ended March 31, 2015, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gains, subject to the 15% rate gains category:		From long-term capital gains, using proceeds from shareholder redemptions:
S&P 500® Fund	$	2,899,418	$	3,640,724
Mid-Cap 1.5x Strategy Fund		409,228		4,032,982
Russell 2000® 1.5x Strategy Fund		244,398		4,013,079
Russell 2000® Fund		965,945		6,772,304

Board Considerations in Approving the Investment Advisory Agreement for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

At an in-person meeting of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on August 18, 2014 (the “Meeting”), called for the purpose of, among other things, consideration of, and voting on, the approval of the investment advisory agreement applicable to the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, a new series of the Trust (the “Fund”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment

204 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to the Fund, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve 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. In advance of the Meeting, the Advisor provided the Board with a wide variety of information, including comparisons of Fund fees relative to comparable peer funds, including the current Rydex Dynamic NASDAQ-100 2x Strategy Fund, which has an investment strategy that is identical to that of the Fund except that it rebalances daily. The Independent Trustees carefully evaluated the information provided and considered all factors that it deemed to be relevant, including those discussed below. At the Meeting, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the approval 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 Meeting, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the investment advisory and other services to be provided by the Advisor; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the expected benefits (such as soft dollars) to the Advisor and its affiliates from their relationship with the Fund; (e) a comparison of the Fund’s projected expense ratios to those of similarly situated funds, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) the Fund’s expected overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s compliance systems; (h) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (i) the Advisor’s reputation, expertise and resources in the financial markets; and (j) the proposed expense limitation/fee waiver agreement between the Advisor and the Fund. 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 Meeting, 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 will provide to the Fund; and (c) agreed to approve the Investment Advisory Agreement based upon the following considerations, among others:

•Nature, Extent and Quality of Services Provided by the Advisor. At the Meeting, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that the Advisor was capable of providing high quality advisory services to the Fund, as indicated by the nature and quality of services provided by the Advisor in the past, including the provision of similar services to the Rydex Dynamic NASDAQ-100 2x Strategy Fund, the firm’s management capabilities, the professional qualifications and experience of its portfolio managers, and its investment and management oversight processes.

•Fund Expenses and Performance of the Fund and the Advisor. As the Fund had not yet commenced operations, the Board was not able to review the Fund’s performance; however, at the Meeting, the Board considered the Advisor’s track record of successfully managing funds tracking the performance of a benchmark. The Board also reviewed the hypothetical performance of the proposed benchmark for a 20-year period ending in June 2014, noting that the hypothetical performance compared favorably to the actual performance of the Rydex Dynamic NASDAQ-100 2x Strategy Fund. The Board also reviewed statistical information provided by the Advisor regarding the expense ratio components of the Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare an advisory contract approval report to help the Board fulfill its advisory contract approval responsibilities. The reports compared the Fund’s fees and expenses to those of comparable funds in the Fund’s peer group, including the Rydex Dynamic NASDAQ-100 2x Strategy Fund, and the broader peer universe, as determined by FUSE. Statistical information in the FUSE report related to the expense ratio component was based on a comparison of the Fund’s and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate.

THE RYDEX FUNDS ANNUAL REPORT | 205

OTHER INFORMATION (Unaudited)(concluded)

•Costs of Services Provided to the Fund and Profits Realized by the Advisor and its Affiliates. With respect to the cost of advisory services provided and the Advisor’s profitability, on the basis of the Board’s review of the fees to be charged by the Advisor for investment advisory and related services, the Board concluded that it was too early to predict profitability from the Fund, but noted that this matter would be given further consideration on an ongoing basis.

•Economies of Scale. The Board noted that because the Fund had not yet commenced operations, there were as of now, no economies of scale to share with shareholders.

•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 to be received by the Advisor and its affiliates as a result of their relationship with the Fund. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services to be performed by the Advisor’s affiliates and the fees to be paid to the Advisor’s affiliates for those services under separate agreements.

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 provide Fund shareholders with high quality services at a cost that was appropriate, reasonable, and in the best interests of the Fund and its shareholders. The Board, including the Independent Trustees, unanimously approved the Investment Advisory Agreement.

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.

206 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by 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).	221	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	133	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.	133	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.	133	None.

THE RYDEX FUNDS ANNUAL REPORT | 207

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
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).	133	None.
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).	133	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).	133	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.

208 | THE RYDEX FUNDS 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
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).
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); Managing Director, Guggenheim Investments (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).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	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 ANNUAL REPORT | 209

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.

210 | THE RYDEX FUNDS 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.

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3.31.2015

Rydex Funds Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy Fund

Weakening Dollar 2x Strategy Fund

RTB2-ANN-0315x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
S&P 500® PURE GROWTH FUND	10
S&P 500® PURE VALUE FUND	18
S&P MIDCAP 400® PURE GROWTH FUND	26
S&P MIDCAP 400® PURE VALUE FUND	34
S&P SMALLCAP 600® PURE GROWTH FUND	42
S&P SMALLCAP 600® PURE VALUE FUND	51
EUROPE 1.25x STRATEGY FUND	60
JAPAN 2x STRATEGY FUND	68
STRENGTHENING DOLLAR 2x STRATEGY FUND	75
WEAKENING DOLLAR 2x STRATEGY FUND	82
NOTES TO FINANCIAL STATEMENTS	89
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	105
OTHER INFORMATION	106
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	108
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	111

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2015

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our Funds (the “Funds”) for the one-year period ended March 31, 2015.

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

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

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

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

Sincerely,

Donald C. Cacciapaglia

President

April 30, 2015

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.

Inverse and leveraged Funds are not suitable for all investors. • These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. • The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. • The Funds’ use of derivatives, such as futures, options, and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. • Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. • Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a Fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. • For more on these and other risks, please read the prospectus.

Pure Style Funds may not be suitable for all investors. • The Funds are subject to the risk that large, medium and small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole • Value stocks are subject to the risk that the intrinsic value of the stock may never be realized by the market or that the price goes down. Growth stocks typically invest a high portion of their earnings back into their business and may lack the dividend yield that could cushion their decline in a market downturn. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions regarding the growth potential of the issuing company. • The Funds are subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Funds’ inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the Funds to purchase and sell particular investments within a reasonable time at a fair price. • Unlike many investment companies, the Funds are not actively “managed.” This means that based on market and economic conditions, the Funds’ performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities. • The Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Funds’ ability to achieve their investment objective and may decrease the Funds’ performance. • These Funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. • Securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. • Please read the prospectus for more detailed information regarding these and other risks.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2015

The Strengthening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. • The Fund’s use of derivatives such as futures and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • The Fund’s exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. • The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a Fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. • Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. • For more on these and other risks, please read the prospectus

The Weakening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. • The Fund’s use of derivatives such as futures and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • The Fund’s indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. • The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. • Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. • For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2015

The U.S. continued to enjoy a self-sustaining economic expansion for the 12-month period ended March 31, 2015, although winter weather was likely to distort first-quarter economic data. In addition, U.S. companies scaled back hiring in the last month of the period, adding to evidence that the domestic economy has lost some momentum since the turn of the year. The March increase in payrolls was the smallest since December 2013 and broke a 12-month run of gains above 200,000.

Despite this short-term dislocation, the economy remains on track. Indeed, many other labor market indicators, such as initial jobless claims and the job openings rate, suggest that the U.S. labor market remains quite strong, supporting the conclusion that March’s payroll report was just a temporary blip, similar to the one witnessed last winter. As soon as temporary seasonal factors have dissipated, economic data is likely to bounce back. The labor market has improved over the past year, as subdued mortgage rates and tight housing inventory continue to point to fairly stable appreciation in the housing market, which is key to the ongoing recovery. Consumers are also being helped by lower fuel prices, which are acting as a tax cut for U.S. consumers, freeing up discretionary spending in other areas and acting as a support for consumption.

In Europe, economic data has been surprisingly good and should continue along that path on the back of the European Central Bank’s program of quantitative easing and depreciation of the euro. Japan’s economy remains weak and, without more structural reform, continued monetary accommodation could lead to stagflation. China’s policymakers appear likely to continue the supply of credit and do whatever else is necessary to maintain growth there at an acceptable pace for the near term.

Given weakness overseas and the effect of a stronger U.S. dollar on international earnings, some stocks could face a more challenging environment in the near term, but our research shows that equity markets tend to perform quite well in the periods leading up to a U.S. Federal Reserve (the “Fed”) rate increase. The yield on the 10-year Treasury note declined in January by more than 50 basis points before rebounding in February, echoing the pattern since 2009—Treasury yields decline and a sell-off ensues, driving rates higher. Then conditions stabilize, and rates test their previous lows. Liquidity from foreign central banks and comparatively attractive U.S. yields continue to push global investors to U.S. Treasuries, which should hold down U.S. interest rates in the near term.

Against this backdrop, the U.S. central bank feels pressure to raise its key rate above zero, but insists the decision will be data-dependent and not occur prematurely. With a secular inflation increase unlikely in the near term, slack in the economy, and disinflation being imported from abroad, the Fed may not hike rates until later in the year. The Fed for now appears to be focused on wage growth, which is key for sustaining the expansion but also an indicator of inflationary pressure. The lack of sustained wage growth has been a topic that has confounded the Fed lately. Given the strengthening employment numbers and the apparent reduction in labor market slack, wages should start to increase more steadily across the board. This is one of the most important data points at the moment for the Fed.

The underlying U.S. economy remains strong and investors should avoid being panicked by seasonal setbacks. Indeed, considering the strength of the economy and the wave of liquidity emanating from various central banks around the world, the general investment environment should remain attractive.

For the 12 months ended March 31, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned 12.73%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -0.92%. The return of the MSCI Emerging Markets Index* was 0.44%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a 5.72% return for the period, while the Barclays U.S. Corporate High Yield Index* returned 2.00%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.03% for the 12-month period.

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2015

*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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

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

Bank of America (“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.

STOXX^® Europe 50 Index provides a blue-chip representation of super-sector leaders in Europe. The index covers 50 stocks from developed European countries such as Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

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

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

Nikkei-225 Stock Average Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

S&P 500^® Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad economy, representing all major industries and is considered a representation of the U.S. stock market.

S&P 500^® Pure Growth Index is narrow in focus, containing only those S&P 500 Index companies with strong growth characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P 500^® Pure Value Index is narrow in focus, containing only those S&P 500 Index companies with strong value characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P MidCap 400^® Pure Growth Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong growth characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P MidCap 400^® Pure Value Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong value characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Growth Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong growth characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Value Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong value characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

The USD or U.S. Dollar Index^®(USDX) is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated “basket” of currencies comprises the weighting of six other currencies as follows: euro (EUR), 57.6% + Japanese yen (JPY), 13.6% + pound sterling (GBP), 11.9% + Canadian dollar (CAD), 9.1% + Swedish krona (SEK), 4.2% + Swiss franc (CHF) 3.6%.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. 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.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, 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 September 30, 2014 and ending March 31, 2015.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.48%	7.20%	$1,000.00	$1,072.00	$7.65
C-Class	2.24%	6.80%	1,000.00	1,068.00	11.55
H-Class	1.49%	7.20%	1,000.00	1,072.00	7.70
S&P 500® Pure Value Fund
A-Class	1.49%	2.32%	1,000.00	1,023.20	7.52
C-Class	2.24%	1.93%	1,000.00	1,019.30	11.28
H-Class	1.49%	2.33%	1,000.00	1,023.30	7.52
S&P MidCap 400® Pure Growth Fund
A-Class	1.49%	8.38%	1,000.00	1,083.80	7.74
C-Class	2.24%	7.99%	1,000.00	1,079.90	11.62
H-Class	1.49%	8.38%	1,000.00	1,083.80	7.74
S&P MidCap 400® Pure Value Fund
A-Class	1.49%	6.97%	1,000.00	1,069.70	7.69
C-Class	2.24%	6.58%	1,000.00	1,065.80	11.54
H-Class	1.49%	6.98%	1,000.00	1,069.80	7.69
S&P SmallCap 600® Pure Growth Fund
A-Class	1.48%	16.22%	1,000.00	1,162.20	7.98
C-Class	2.23%	15.79%	1,000.00	1,157.90	12.00
H-Class	1.48%	16.22%	1,000.00	1,162.20	7.98
S&P SmallCap 600® Pure Value Fund
A-Class	1.48%	8.81%	1,000.00	1,088.10	7.70
C-Class	2.23%	8.42%	1,000.00	1,084.20	11.59
H-Class	1.49%	8.85%	1,000.00	1,088.50	7.76
Europe 1.25x Strategy Fund
A-Class	1.70%	(6.58%)	1,000.00	934.20	8.20
C-Class	2.47%	(6.86%)	1,000.00	931.40	11.89
H-Class	1.70%	(6.57%)	1,000.00	934.30	8.20
Japan 2x Strategy Fund
A-Class	1.53%	15.99%	1,000.00	1,159.90	8.24
C-Class	2.27%	15.66%	1,000.00	1,156.60	12.21
H-Class	1.51%	16.03%	1,000.00	1,160.30	8.13
Strengthening Dollar 2x Strategy Fund
A-Class	1.67%	28.40%	1,000.00	1,284.00	9.51
C-Class	2.43%	27.92%	1,000.00	1,279.20	13.81
H-Class	1.67%	28.39%	1,000.00	1,283.90	9.51
Weakening Dollar 2x Strategy Fund
A-Class	1.69%	(24.05%)	1,000.00	759.50	7.41
C-Class	2.44%	(24.35%)	1,000.00	756.50	10.69
H-Class	1.68%	(24.02%)	1,000.00	759.80	7.37

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.48%	5.00%	$1,000.00	$1,017.55	$7.44
C-Class	2.24%	5.00%	1,000.00	1,013.76	11.25
H-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
S&P 500® Pure Value Fund
A-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
C-Class	2.24%	5.00%	1,000.00	1,013.76	11.25
H-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
S&P MidCap 400® Pure Growth Fund
A-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
C-Class	2.24%	5.00%	1,000.00	1,013.76	11.25
H-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
S&P MidCap 400® Pure Value Fund
A-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
C-Class	2.24%	5.00%	1,000.00	1,013.76	11.25
H-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
S&P SmallCap 600® Pure Growth Fund
A-Class	1.48%	5.00%	1,000.00	1,017.55	7.44
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
H-Class	1.48%	5.00%	1,000.00	1,017.55	7.44
S&P SmallCap 600® Pure Value Fund
A-Class	1.48%	5.00%	1,000.00	1,017.55	7.44
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
H-Class	1.49%	5.00%	1,000.00	1,017.50	7.49
Europe 1.25x Strategy Fund
A-Class	1.70%	5.00%	1,000.00	1,016.45	8.55
C-Class	2.47%	5.00%	1,000.00	1,012.62	12.39
H-Class	1.70%	5.00%	1,000.00	1,016.45	8.55
Japan 2x Strategy Fund
A-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
C-Class	2.27%	5.00%	1,000.00	1,013.61	11.40
H-Class	1.51%	5.00%	1,000.00	1,017.40	7.59
Strengthening Dollar 2x Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
C-Class	2.43%	5.00%	1,000.00	1,012.81	12.19
H-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
Weakening Dollar 2x Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
C-Class	2.44%	5.00%	1,000.00	1,012.76	12.24
H-Class	1.68%	5.00%	1,000.00	1,016.55	8.45

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 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2014 to March 31, 2015.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P 500^® PURE GROWTH FUND

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

For the one-year period ended March 31, 2015, S&P 500^® Pure Growth Fund H-Class returned 12.98%, compared with a gain of 14.67% for the S&P 500 Pure Growth Index. The Fund maintained a daily correlation of over 99% to its benchmark.

Health Care was the sector contributing most to performance of the underlying index, followed by Consumer Discretionary. Energy was the only sector that detracted from performance of the underlying index. The sectors that contributed least were Materials and Financials.

Stocks that contributed most to return of the underlying index were Southwest Airlines Co., Vertex Pharmaceuticals, Inc., and Celgene Corp. First Solar, Inc., Wynn Resorts Ltd., and Michael Kors Holdings Ltd. were the largest detractors from performance of the underlying index.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
DR Horton, Inc.	2.6%
Lennar Corp. — Class A	2.0%
Under Armour, Inc. — Class A	1.9%
Micron Technology, Inc.	1.8%
Avago Technologies Ltd.	1.8%
Facebook, Inc. — Class A	1.8%
Constellation Brands, Inc. — Class A	1.8%
Actavis plc	1.7%
Southwest Airlines Co.	1.7%
Regeneron Pharmaceuticals, Inc.	1.6%
Top Ten Total	18.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	12.98%	16.88%	9.14%
A-Class Shares with sales charge†	7.62%	15.75%	8.61%
C-Class Shares	12.13%	16.00%	8.32%
C-Class Shares with CDSC‡	11.13%	16.00%	8.32%
H-Class Shares	12.98%	16.88%	9.13%
S&P 500 Pure Growth Index	14.67%	18.98%	11.49%

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

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.0%
CONSUMER, NON-CYCLICAL - 27.3%
Constellation Brands, Inc. — Class A*		23,645	$	2,747,785
Actavis plc*		8,683		2,584,191
Regeneron Pharmaceuticals, Inc.*		5,575		2,517,000
Monster Beverage Corp.*		16,696		2,310,643
AmerisourceBergen Corp. — Class A		19,620		2,230,205
Alexion Pharmaceuticals, Inc.*		12,802		2,218,587
Celgene Corp.*		19,082		2,199,773
Gilead Sciences, Inc.*		21,308		2,090,954
Zoetis, Inc.		40,540		1,876,597
DaVita HealthCare Partners, Inc.*		21,820		1,773,530
Edwards Lifesciences Corp.*		12,310		1,753,683
Amgen, Inc.		10,500		1,678,425
Keurig Green Mountain, Inc.		14,330		1,601,091
Moody’s Corp.		14,903		1,546,931
Biogen, Inc.*		3,499		1,477,418
United Rentals, Inc.*		15,280		1,392,925
Robert Half International, Inc.		22,889		1,385,242
Mylan N.V.*		20,300		1,204,805
Intuitive Surgical, Inc.*		2,070		1,045,412
Hospira, Inc.*		11,600		1,018,944
Molson Coors Brewing Co. — Class B		13,540		1,008,053
Cintas Corp.		11,910		972,213
Dr Pepper Snapple Group, Inc.		12,200		957,456
AbbVie, Inc.		14,351		840,108
MasterCard, Inc. — Class A		9,646		833,318
Lorillard, Inc.		10,330		675,066
Total Consumer, Non-cyclical				41,940,355
CONSUMER, CYCLICAL - 22.0%
DR Horton, Inc.		140,800		4,010,072
Lennar Corp. — Class A		60,295		3,123,884
Under Armour, Inc. — Class A*		36,190		2,922,342
Southwest Airlines Co.		57,913		2,565,546
Delta Air Lines, Inc.		50,657		2,277,539
O’Reilly Automotive, Inc.*		9,730		2,104,015
Chipotle Mexican Grill, Inc. — Class A*		2,710		1,762,963
CVS Health Corp.		15,550		1,604,916
Harman International Industries, Inc.		11,480		1,534,072
Lowe’s Companies, Inc.		19,650		1,461,764
Dollar Tree, Inc.*		15,820		1,283,714
Wyndham Worldwide Corp.		13,232		1,197,099
AutoZone, Inc.*		1,600		1,091,456
Michael Kors Holdings Ltd.*		16,200		1,065,150
Hanesbrands, Inc.		29,100		975,141
VF Corp.		12,470		939,116
Nordstrom, Inc.		10,100		811,232
Home Depot, Inc.		7,000		795,270
Ross Stores, Inc.		7,300		769,128
NIKE, Inc. — Class B		7,650		767,525
Leggett & Platt, Inc.		16,180		745,736
Total Consumer, Cyclical				33,807,680
TECHNOLOGY - 17.3%
Micron Technology, Inc.*		104,440		2,833,456
Avago Technologies Ltd.		21,820		2,770,704
Apple, Inc.		20,100		2,501,043
Akamai Technologies, Inc.*		35,005		2,486,930
Skyworks Solutions, Inc.		22,920		2,252,807
Red Hat, Inc.*		24,189		1,832,317
Seagate Technology plc		30,517		1,587,800
Electronic Arts, Inc.*		25,224		1,483,550
Cognizant Technology Solutions Corp. — Class A*		23,422		1,461,299
Western Digital Corp.		14,240		1,295,982
Fiserv, Inc.*		12,846		1,019,972
Cerner Corp.*		10,644		779,779
NVIDIA Corp.		34,900		730,283
QUALCOMM, Inc.		10,477		726,475
Citrix Systems, Inc.*		10,980		701,293
SanDisk Corp.		10,930		695,367
Intel Corp.		21,820		682,311
Lam Research Corp.		9,600		674,256
Total Technology				26,515,624
COMMUNICATIONS - 13.0%
Facebook, Inc. — Class A*		33,462		2,751,079
VeriSign, Inc.*		36,005		2,411,255
Expedia, Inc.		25,489		2,399,279
DIRECTV*		24,884		2,117,628
Equinix, Inc.		7,400		1,723,090
F5 Networks, Inc.*		13,980		1,606,861
Yahoo!, Inc.*		34,345		1,526,120
Time Warner, Inc.		11,600		979,504
Priceline Group, Inc.*		831		967,409
Alliance Data Systems Corp.*		3,120		924,300
Walt Disney Co.		8,200		860,098
eBay, Inc.*		12,600		726,768
Google, Inc. — Class A*		784		434,885
Google, Inc. — Class C*		785		430,180
Total Communications				19,858,456
FINANCIAL - 11.1%
American Tower Corp. — Class A		18,720		1,762,488
CBRE Group, Inc. — Class A*		40,340		1,561,561
Health Care REIT, Inc.		16,950		1,311,252
Host Hotels & Resorts, Inc.		62,790		1,267,102
Navient Corp.		60,090		1,221,630
Kimco Realty Corp.		43,609		1,170,902
Equity Residential		14,700		1,144,542
Legg Mason, Inc.		20,250		1,117,800
Visa, Inc. — Class A		16,484		1,078,218
AvalonBay Communities, Inc.		5,870		1,022,848
Ameriprise Financial, Inc.		6,950		909,338

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P 500® PURE GROWTH FUND

	Shares		Value
Essex Property Trust, Inc.		3,800	$	873,620
Boston Properties, Inc.		6,070		852,714
Macerich Co.		10,110		852,576
Ventas, Inc.		10,900		795,918
Total Financial				16,942,509
INDUSTRIAL - 3.5%
Union Pacific Corp.		11,200		1,213,071
Martin Marietta Materials, Inc.		8,510		1,189,698
Amphenol Corp. — Class A		17,050		1,004,757
Thermo Fisher Scientific, Inc.		7,120		956,501
CH Robinson Worldwide, Inc.		12,880		943,074
Total Industrial				5,307,101
ENERGY - 3.0%
EOG Resources, Inc.		14,700		1,347,844
Range Resources Corp.		23,109		1,202,592
Cabot Oil & Gas Corp. — Class A		40,040		1,182,381
Williams Companies, Inc.		16,080		813,487
Total Energy				4,546,304
BASIC MATERIALS - 1.8%
Sherwin-Williams Co.		4,100		1,166,450
Sigma-Aldrich Corp.		5,800		801,850
Ecolab, Inc.		6,275		717,735
Total Basic Materials				2,686,035
Total Common Stocks
(Cost $121,083,215)				151,604,064

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.9%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,022,522		1,022,522
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		156,263		156,263
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		125,427		125,427
Total Repurchase Agreements
(Cost $1,304,212)				1,304,212
Total Investments - 99.9%
(Cost $122,387,427)			$	152,908,276
Other Assets & Liabilities, net - 0.1%				189,438
Total Net Assets - 100.0%			$	153,097,714

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $121,083,215)	$	151,604,064
Repurchase agreements, at value (cost $1,304,212)		1,304,212
Total investments (cost $122,387,427)		152,908,276
Cash		10,458
Receivables:
Fund shares sold		926,489
Dividends		81,973
Interest		1
Total assets		153,927,197
Liabilities:
Payable for:
Fund shares redeemed		519,866
Management fees		111,168
Distribution and service fees		50,949
Transfer agent and administrative fees		37,056
Portfolio accounting fees		14,822
Miscellaneous		95,622
Total liabilities		829,483
Commitments and contingent liabilities (Note 14)		—
Net assets	$	153,097,714
Net assets consist of:
Paid in capital	$	124,279,446
Accumulated net investment loss		(363,241	)
Accumulated net realized loss on investments		(1,339,340	)
Net unrealized appreciation on investments		30,520,849
Net assets	$	153,097,714
A-Class:
Net assets	$	25,768,395
Capital shares outstanding		461,402
Net asset value per share	$	55.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.64
C-Class:
Net assets	$	22,701,486
Capital shares outstanding		443,123
Net asset value per share	$	51.23
H-Class:
Net assets	$	104,627,833
Capital shares outstanding		1,873,771
Net asset value per share	$	55.84

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	1,419,577
Income from securities lending, net		433
Interest		228
Total investment income		1,420,238
Expenses:
Management fees		1,232,114
Transfer agent and administrative fees		410,705
Distribution and service fees:
A-Class		64,485
C-Class		198,128
H-Class		296,688
Portfolio accounting fees		164,281
Custodian fees		19,163
Trustees’ fees*		11,562
Line of credit fees		675
Miscellaneous		220,159
Total expenses		2,617,960
Net investment loss		(1,197,722	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,011,328
Net realized gain		10,011,328
Net change in unrealized appreciation (depreciation) on:
Investments		4,587,390
Net change in unrealized appreciation (depreciation)		4,587,390
Net realized and unrealized gain		14,598,718
Net increase in net assets resulting from operations	$	13,400,996

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

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

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,197,722	)	$	(647,036	)
Net realized gain on investments		10,011,328			9,974,053
Net change in unrealized appreciation (depreciation) on investments		4,587,390			8,963,993
Net increase in net assets resulting from operations		13,400,996			18,291,010
Distributions to shareholders from:
Net realized gains
A-Class		(602,725	)		—
C-Class		(628,949	)		—
H-Class		(3,232,222	)		—
Total distributions to shareholders		(4,463,896	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		37,179,898			37,301,868
C-Class		14,859,172			12,501,975
H-Class		422,548,514			636,709,145
Distributions reinvested
A-Class		569,662			—
C-Class		609,646			—
H-Class		3,196,101			—
Cost of shares redeemed
A-Class		(34,342,245	)		(35,975,939	)
C-Class		(11,449,505	)		(7,186,094	)
H-Class		(429,533,249	)		(597,296,078	)
Net increase from capital share transactions		3,637,994			46,054,877
Net increase in net assets		12,575,094			64,345,887
Net assets:
Beginning of year		140,522,620			76,176,733
End of year	$	153,097,714		$	140,522,620
(Accumulated net investment loss)/Undistributed net investment income at end of year	$	(363,241	)	$	—
Capital share activity:
Shares sold
A-Class		703,638			826,973
C-Class		302,375			292,518
H-Class		7,902,853			14,083,714
Shares issued from reinvestment of distributions
A-Class		10,626			—
C-Class		12,364			—
H-Class		59,629			—
Shares redeemed
A-Class		(646,079	)		(819,808	)
C-Class		(233,689	)		(170,107	)
H-Class		(8,126,262	)		(13,397,258	)
Net increase (decrease) in shares		(14,545	)		816,032

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	50.81		$	38.86		$	34.54		$	33.15		$	26.51
Income (loss) from investment operations:
Net investment income (loss)a		(.33	)		(.23	)		(.13	)		(.20	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		6.86			12.18			4.45			1.82			6.82
Total from investment operations		6.53			11.95			4.32			1.62			6.64
Less distributions from:
Net realized gains		(1.49	)		—			—			(.23	)		—
Total distributions		(1.49	)		—			—			(.23	)		—
Net asset value, end of period	$	55.85		$	50.81		$	38.86		$	34.54		$	33.15
Total Returnb		12.98	%		30.75	%		12.51	%		4.96	%		25.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,768		$	19,978		$	15,001		$	2,846		$	2,704
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.51	%)		(0.38	%)		(0.62	%)		(0.65	%)
Total expenses		1.50	%		1.52	%		1.51	%		1.52	%		1.53	%
Portfolio turnover rate		274	%		594	%		421	%		586	%		808	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	47.07		$	36.27		$	32.48		$	31.42		$	25.32
Income (loss) from investment operations:
Net investment income (loss)a		(.67	)		(.52	)		(.38	)		(.41	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		6.32			11.32			4.17			1.70			6.51
Total from investment operations		5.65			10.80			3.79			1.29			6.10
Less distributions from:
Net realized gains		(1.49	)		—			—			(.23	)		—
Total distributions		(1.49	)		—			—			(.23	)		—
Net asset value, end of period	$	51.23		$	47.07		$	36.27		$	32.48		$	31.42
Total Returnb		12.13	%		29.78	%		11.70	%		4.15	%		24.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,701		$	17,042		$	8,692		$	11,623		$	8,384
Ratios to average net assets:
Net investment income (loss)		(1.37	%)		(1.24	%)		(1.19	%)		(1.35	%)		(1.53	%)
Total expenses		2.25	%		2.27	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate		274	%		594	%		421	%		586	%		808	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	50.80		$	38.84		$	34.52		$	33.13		$	26.50
Income (loss) from investment operations:
Net investment income (loss)a		(.34	)		(.23	)		(.15	)		(.19	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		6.87			12.19			4.47			1.81			6.89
Total from investment operations		6.53			11.96			4.32			1.62			6.63
Less distributions from:
Net realized gains		(1.49	)		—			—			(.23	)		—
Total distributions		(1.49	)		—			—			(.23	)		—
Net asset value, end of period	$	55.84		$	50.80		$	38.84		$	34.52		$	33.13
Total Returnb		12.98	%		30.79	%		12.51	%		4.96	%		25.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	104,628		$	103,502		$	52,483		$	36,627		$	38,831
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.50	%)		(0.43	%)		(0.59	%)		(0.89	%)
Total expenses		1.50	%		1.52	%		1.50	%		1.51	%		1.55	%
Portfolio turnover rate		274	%		594	%		421	%		586	%		808	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P 500^® PURE VALUE FUND

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

For the one-year period ended March 31, 2015, S&P 500^® Pure Value Fund H-Class returned 5.60%, compared with a gain of 7.33% for the S&P 500 Pure Value Index. The Fund maintained a daily correlation of over 99% to its benchmark.

The Utilities sector was the leading contributor to performance of the underlying index, followed by the Health Care sector. Energy was the largest detractor from performance, followed by the Industrials sector.

The strongest contributors to performance of the underlying index for the year included Anthem, Inc., Tesoro Corp., and Humana, Inc. The stocks that detracted most from performance of the underlying index were Ensco PLC, Nabors Industries Ltd., and Genworth Financial, Inc. — Class A.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Valero Energy Corp.	2.4%
Berkshire Hathaway, Inc. — Class B	2.1%
Assurant, Inc.	1.8%
General Motors Co.	1.8%
Anthem, Inc.	1.7%
Staples, Inc.	1.7%
Phillips 66	1.7%
Tesoro Corp.	1.6%
Marathon Petroleum Corp.	1.5%
Unum Group	1.5%
Top Ten Total	17.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

18 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	5.60%	14.79%	7.13%
A-Class Shares with sales charge†	0.58%	13.68%	6.61%
C-Class Shares	4.81%	13.94%	6.35%
C-Class Shares with CDSC‡	3.81%	13.94%	6.35%
H-Class Shares	5.60%	14.79%	7.17%
S&P 500 Pure Value Index	7.33%	17.45%	10.22%

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

THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
FINANCIAL - 31.9%
Berkshire Hathaway, Inc. — Class B*		10,324	$	1,489,959
Assurant, Inc.		21,068		1,293,786
Unum Group		31,878		1,075,245
MetLife, Inc.		18,920		956,406
Prudential Financial, Inc.		11,313		908,547
American International Group, Inc.		16,318		894,063
Hartford Financial Services Group, Inc.		21,211		887,044
Genworth Financial, Inc. — Class A*		120,772		882,843
Lincoln National Corp.		15,356		882,356
Loews Corp.		19,330		789,244
XL Group plc — Class A		18,762		690,442
SunTrust Banks, Inc.		15,417		633,484
Citigroup, Inc.		11,808		608,349
Morgan Stanley		16,310		582,104
Zions Bancorporation		20,998		566,946
JPMorgan Chase & Co.		9,187		556,548
People’s United Financial, Inc.		35,893		545,573
Travelers Companies, Inc.		4,969		537,298
Capital One Financial Corp.		6,757		532,587
Aflac, Inc.		8,319		532,499
Bank of America Corp.		32,439		499,236
PNC Financial Services Group, Inc.		5,252		489,696
Goldman Sachs Group, Inc.		2,547		478,760
KeyCorp		33,673		476,810
ACE Ltd.		4,097		456,775
NASDAQ OMX Group, Inc.		8,774		446,948
Cincinnati Financial Corp.		7,932		422,617
Progressive Corp.		15,181		412,923
Fifth Third Bancorp		21,887		412,570
Comerica, Inc.		9,023		407,208
BB&T Corp.		10,021		390,719
Chubb Corp.		3,788		382,967
Principal Financial Group, Inc.		7,077		363,545
Torchmark Corp.		6,495		356,705
Bank of New York Mellon Corp.		8,805		354,313
Hudson City Bancorp, Inc.		33,620		352,338
Huntington Bancshares, Inc.		28,701		317,146
Total Financial				22,866,599
ENERGY - 25.3%
Valero Energy Corp.		26,956		1,714,941
Phillips 66		15,133		1,189,454
Tesoro Corp.		12,300		1,122,867
Marathon Petroleum Corp.		10,787		1,104,481
Newfield Exploration Co.*		27,399		961,432
Noble Corporation plc		64,838		925,886
Hess Corp.		13,630		925,068
First Solar, Inc.*		14,336		857,149
Chesapeake Energy Corp.1		56,280		796,925
Marathon Oil Corp.		29,392		767,425
Devon Energy Corp.		12,137		731,982
Murphy Oil Corp.		15,062		701,889
Diamond Offshore Drilling, Inc.1		25,315		678,189
Chevron Corp.		6,105		640,903
QEP Resources, Inc.		29,679		618,807
Baker Hughes, Inc.		9,322		592,693
Ensco plc — Class A		27,816		586,083
Apache Corp.		9,062		546,710
National Oilwell Varco, Inc.		9,168		458,308
ConocoPhillips		7,052		439,058
Exxon Mobil Corp.		4,439		377,315
Helmerich & Payne, Inc.		5,372		365,672
Halliburton Co.		8,042		352,883
Transocean Ltd.1		23,710		347,826
Occidental Petroleum Corp.		4,527		330,471
Total Energy				18,134,417
CONSUMER, CYCLICAL - 12.6%
General Motors Co.		34,485		1,293,189
Staples, Inc.		73,517		1,197,224
GameStop Corp. — Class A1		27,032		1,026,135
Ford Motor Co.		60,501		976,486
Best Buy Company, Inc.		22,410		846,874
Kohl’s Corp.		10,127		792,438
Goodyear Tire & Rubber Co.		27,381		741,477
Wal-Mart Stores, Inc.		5,233		430,414
Target Corp.		5,049		414,371
Costco Wholesale Corp.		2,457		372,223
Whirlpool Corp.		1,768		357,242
Carnival Corp.		6,181		295,699
Johnson Controls, Inc.		5,787		291,896
Total Consumer, Cyclical				9,035,668
UTILITIES - 8.1%
NRG Energy, Inc.		23,371		588,716
FirstEnergy Corp.		15,131		530,493
Exelon Corp.		15,069		506,469
AES Corp.		38,717		497,513
Entergy Corp.		5,312		411,627
Consolidated Edison, Inc.		6,513		397,292
PG&E Corp.		7,180		381,043
SCANA Corp.		5,339		293,592
DTE Energy Co.		3,610		291,291
Xcel Energy, Inc.		8,196		285,303
Duke Energy Corp.		3,637		279,249
Ameren Corp.		6,493		274,005
American Electric Power Company, Inc.		4,817		270,956
Pepco Holdings, Inc.		10,099		270,956
Pinnacle West Capital Corp.		4,015		255,956
TECO Energy, Inc.		12,223		237,126
Total Utilities				5,771,587
CONSUMER, NON-CYCLICAL - 7.6%
Anthem, Inc.		7,947		1,227,097
Humana, Inc.		5,508		980,534

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P 500® PURE VALUE FUND

	Shares		Value
Archer-Daniels-Midland Co.		19,180	$	909,132
Tyson Foods, Inc. — Class A		23,568		902,654
Cardinal Health, Inc.		7,445		672,060
Sysco Corp.		11,641		439,215
Avery Dennison Corp.		5,235		276,984
Total Consumer, Non-cyclical				5,407,676
INDUSTRIAL - 5.1%
Jacobs Engineering Group, Inc.*		23,683		1,069,525
Fluor Corp.		13,531		773,432
L-3 Communications Holdings, Inc.		3,718		467,687
Owens-Illinois, Inc.*		17,853		416,332
Ryder System, Inc.		4,101		389,144
Deere & Co.		3,450		302,530
Joy Global, Inc.		5,510		215,882
Total Industrial				3,634,532
BASIC MATERIALS - 2.9%
Newmont Mining Corp.		21,058		457,169
Freeport-McMoRan, Inc.		23,897		452,848
Allegheny Technologies, Inc.		11,183		335,602
Nucor Corp.		6,260		297,538
LyondellBasell Industries N.V. — Class A		3,100		272,180
Dow Chemical Co.		5,536		265,617
Total Basic Materials				2,080,954
COMMUNICATIONS - 2.4%
News Corp. — Class A*		51,866		830,375
CenturyLink, Inc.		9,378		324,010
AT&T, Inc.		9,111		297,474
Juniper Networks, Inc.		10,617		239,732
Total Communications				1,691,591
TECHNOLOGY - 2.2%
Xerox Corp.		52,407		673,430
Computer Sciences Corp.		7,410		483,725
Hewlett-Packard Co.		12,675		394,953
Total Technology				1,552,108
DIVERSIFIED - 1.4%
Leucadia National Corp.		43,363		966,561
Total Common Stocks
(Cost $56,545,179)				71,141,693

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	176,549		176,549
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		26,981		26,981
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		21,656		21,656
Total Repurchase Agreements
(Cost $225,186)				225,186
SECURITIES LENDING COLLATERAL††,3 - 3.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,472,925		1,472,925
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		506,686		506,686
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		261,533		261,533
Total Securities Lending Collateral
(Cost $2,241,144)				2,241,144
Total Investments - 102.9%
(Cost $59,011,509)			$	73,608,023
Other Assets & Liabilities, net - (2.9)%				(2,075,265	)
Total Net Assets - 100.0%			$	71,532,758

*	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 March 31, 2015 — 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 ANNUAL REPORT | 21

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $2,235,256 of securities loaned (cost $56,545,179)	$	71,141,693
Repurchase agreements, at value (cost $2,466,330)		2,466,330
Total investments (cost $59,011,509)		73,608,023
Segregated cash with broker		32,756
Cash		15,721
Receivables:
Securities sold		4,116,259
Fund shares sold		834,980
Dividends		113,087
Securities lending income		15,090
Total assets		78,735,916
Liabilities:
Payable for:
Fund shares redeemed		4,731,007
Return of securities loaned		2,273,900
Management fees		63,317
Distribution and service fees		25,133
Transfer agent and administrative fees		21,106
Portfolio accounting fees		8,442
Miscellaneous		80,253
Total liabilities		7,203,158
Commitments and contingent liabilities (Note 14)		—
Net assets	$	71,532,758
Net assets consist of:
Paid in capital	$	63,487,561
Undistributed net investment income		1,084,891
Accumulated net realized loss on investments		(7,636,208	)
Net unrealized appreciation on investments		14,596,514
Net assets	$	71,532,758
A-Class:
Net assets	$	16,222,400
Capital shares outstanding		111,810
Net asset value per share	$	145.09
Maximum offering price per share (Net asset value divided by 95.25%)	$	152.33
C-Class:
Net assets	$	6,390,498
Capital shares outstanding		49,100
Net asset value per share	$	130.15
H-Class:
Net assets	$	48,919,860
Capital shares outstanding		335,951
Net asset value per share	$	145.62

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	3,567,093
Income from securities lending, net		82,851
Interest		190
Total investment income		3,650,134
Expenses:
Management fees		1,247,388
Transfer agent and administrative fees		415,796
Distribution and service fees:
A-Class		61,271
C-Class		74,249
H-Class		335,963
Portfolio accounting fees		166,132
Custodian fees		19,437
Trustees’ fees*		11,833
Line of credit fees		364
Miscellaneous		232,810
Total expenses		2,565,243
Net investment income		1,084,891
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,872,408
Net realized gain		5,872,408
Net change in unrealized appreciation (depreciation) on:
Investments		(1,346,174	)
Net change in unrealized appreciation (depreciation)		(1,346,174	)
Net realized and unrealized gain		4,526,234
Net increase in net assets resulting from operations	$	5,611,125

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

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

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,084,891		$	298,766
Net realized gain on investments		5,872,408			17,670,652
Net change in unrealized appreciation (depreciation) on investments		(1,346,174	)		1,013,121
Net increase in net assets resulting from operations		5,611,125			18,982,539
Distributions to shareholders from:
Net investment income
A-Class		(27,416	)		(4,543	)
C-Class		(8,632	)		(9,295	)
H-Class		(94,796	)		(154,084	)
Net realized gains
A-Class		(814,700	)		(112,508	)
C-Class		(256,525	)		(230,200	)
H-Class		(2,817,022	)		(3,815,942	)
Total distributions to shareholders		(4,019,091	)		(4,326,572	)
Capital share transactions:
Proceeds from sale of shares
A-Class		63,590,141			5,628,794
C-Class		9,712,015			5,902,053
H-Class		502,106,517			369,062,897
Distributions reinvested
A-Class		826,012			106,616
C-Class		260,348			225,859
H-Class		2,878,464			3,914,756
Cost of shares redeemed
A-Class		(52,604,015	)		(3,047,246	)
C-Class		(8,669,041	)		(5,327,015	)
H-Class		(572,669,115	)		(349,827,346	)
Net increase (decrease) from capital share transactions		(54,568,674	)		26,639,368
Net increase (decrease) in net assets		(52,976,640	)		41,295,335
Net assets:
Beginning of year		124,509,398			83,214,063
End of year	$	71,532,758		$	124,509,398
Undistributed net investment income at end of year	$	1,084,891		$	130,844
Capital share activity:
Shares sold
A-Class		439,661			42,301
C-Class		73,971			50,818
H-Class		3,448,759			2,933,227
Shares issued from reinvestment of distributions
A-Class		5,624			798
C-Class		1,971			1,860
H-Class		19,528			29,199
Shares redeemed
A-Class		(364,842	)		(23,402	)
C-Class		(66,550	)		(46,452	)
H-Class		(3,942,732	)		(2,852,369	)
Net increase (decrease) in shares		(384,610	)		135,980

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	141.39		$	111.68		$	93.49		$	90.21		$	79.66
Income (loss) from investment operations:
Net investment income (loss)a		1.14			.61			.58			.30			.01
Net gain (loss) on investments (realized and unrealized)		6.83			35.01			17.75			2.98			11.87
Total from investment operations		7.97			35.62			18.33			3.28			11.88
Less distributions from:
Net investment income		(.14	)		(.23	)		(.14	)		—			(1.33	)
Net realized gains		(4.13	)		(5.68	)		—			—			—
Total distributions		(4.27	)		(5.91	)		(.14	)		—			(1.33	)
Net asset value, end of period	$	145.09		$	141.39		$	111.68		$	93.49		$	90.21
Total Returnb		5.60	%		32.21	%		19.63	%		3.64	%		15.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,222		$	4,435		$	1,303		$	1,846		$	2,329
Ratios to average net assets:
Net investment income (loss)		0.78	%		0.47	%		0.61	%		0.34	%		0.01	%
Total expenses		1.51	%		1.52	%		1.51	%		1.51	%		1.54	%
Portfolio turnover rate		295	%		410	%		669	%		762	%		820	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	128.19		$	102.46		$	86.42		$	83.99		$	74.81
Income (loss) from investment operations:
Net investment income (loss)a		.04			(.30	)		(.19	)		(.36	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		6.19			31.94			16.37			2.79			11.02
Total from investment operations		6.23			31.64			16.18			2.43			10.51
Less distributions from:
Net investment income		(.14	)		(.23	)		(.14	)		—			(1.33	)
Net realized gains		(4.13	)		(5.68	)		—			—			—
Total distributions		(4.27	)		(5.91	)		(.14	)		—			(1.33	)
Net asset value, end of period	$	130.15		$	128.19		$	102.46		$	86.42		$	83.99
Total Returnb		4.81	%		31.21	%		18.76	%		2.88	%		14.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,390		$	5,090		$	3,430		$	2,128		$	5,690
Ratios to average net assets:
Net investment income (loss)		0.03	%		(0.26	%)		(0.22	%)		(0.45	%)		(0.68	%)
Total expenses		2.25	%		2.27	%		2.26	%		2.27	%		2.29	%
Portfolio turnover rate		295	%		410	%		669	%		762	%		820	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	141.89		$	112.06		$	93.80		$	90.50		$	79.91
Income (loss) from investment operations:
Net investment income (loss)a		.97			.51			.57			.33			(.02	)
Net gain (loss) on investments (realized and unrealized)		7.03			35.23			17.83			2.97			11.94
Total from investment operations		8.00			35.74			18.40			3.30			11.92
Less distributions from:
Net investment income		(.14	)		(.23	)		(.14	)		—			(1.33	)
Net realized gains		(4.13	)		(5.68	)		—			—			—
Total distributions		(4.27	)		(5.91	)		(.14	)		—			(1.33	)
Net asset value, end of period	$	145.62		$	141.89		$	112.06		$	93.80		$	90.50
Total Returnb		5.60	%		32.21	%		19.64	%		3.65	%		15.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	48,920		$	114,984		$	78,480		$	68,886		$	26,852
Ratios to average net assets:
Net investment income (loss)		0.66	%		0.40	%		0.58	%		0.38	%		(0.03	%)
Total expenses		1.51	%		1.52	%		1.52	%		1.51	%		1.54	%
Portfolio turnover rate		295	%		410	%		669	%		762	%		820	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P MIDCAP 400^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Growth Index (the “underlying index”).

For the one-year period ended March 31, 2015, S&P MidCap 400^® Pure Growth Fund H-Class returned 7.18%, compared with a gain of 8.53% for the S&P MidCap 400 Pure Growth Index. The Fund maintained a daily correlation of over 99% to its benchmark.

The Health Care and the Consumer Discretionary sectors contributed most to return of the underlying index for the period. The Energy sector detracted most from return, followed by the Utilities sector.

United Therapeutics Corp., Salix Pharmaceuticals Ltd., and Centene Corp. added the most to performance of the underlying index for the period. SM Energy Co., 3D Systems Corp., and Patterson-UTI Energy, Inc. detracted most from performance of the underlying index for the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Trinity Industries, Inc.	2.7%
Centene Corp.	2.7%
JetBlue Airways Corp.	2.5%
United Therapeutics Corp.	2.4%
Alexander & Baldwin, Inc.	2.3%
Eagle Materials, Inc.	2.2%
Toll Brothers, Inc.	2.2%
Akorn, Inc.	2.2%
ARRIS Group, Inc.	2.0%
Salix Pharmaceuticals Ltd.	2.0%
Top Ten Total	23.2%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

26 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	7.18%	15.08%	10.72%
A-Class Shares with sales charge†	2.08%	13.96%	10.19%
C-Class Shares	6.39%	14.22%	9.90%
C-Class Shares with CDSC‡	5.49%	14.22%	9.90%
H-Class Shares	7.18%	15.07%	10.72%
S&P MidCap 400 Pure Growth Index	8.53%	16.56%	12.34%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.6%
CONSUMER, NON-CYCLICAL - 25.9%
Centene Corp.*		72,500	$	5,125,025
United Therapeutics Corp.*		26,359		4,545,214
Akorn, Inc.*		87,300		4,147,622
Salix Pharmaceuticals Ltd.*		22,288		3,851,589
Hain Celestial Group, Inc.*		53,327		3,415,594
WhiteWave Foods Co. — Class A*		74,100		3,285,594
Global Payments, Inc.		24,100		2,209,488
IDEXX Laboratories, Inc.*		14,300		2,209,064
Boston Beer Company, Inc. — Class A*		7,400		1,978,760
VCA, Inc.*		35,730		1,958,719
Gartner, Inc.*		22,100		1,853,085
Corporate Executive Board Co.		21,200		1,693,032
Live Nation Entertainment, Inc.*		64,670		1,631,624
STERIS Corp.		22,600		1,588,102
Service Corporation International		57,900		1,508,295
SEI Investments Co.		31,400		1,384,426
MEDNAX, Inc.*		19,000		1,377,690
Charles River Laboratories International, Inc.*		16,800		1,332,072
WEX, Inc.*		10,969		1,177,632
Cooper Companies, Inc.		6,200		1,162,004
Align Technology, Inc.*		21,300		1,145,621
Sirona Dental Systems, Inc.*		12,134		1,091,939
Total Consumer, Non-cyclical				49,672,191
CONSUMER, CYCLICAL - 20.6%
JetBlue Airways Corp.*		249,800		4,808,650
Toll Brothers, Inc.*		106,000		4,170,041
NVR, Inc.*		2,400		3,188,784
Buffalo Wild Wings, Inc.*		14,700		2,664,228
Advance Auto Parts, Inc.		16,803		2,515,241
Signet Jewelers Ltd.		17,600		2,442,704
Alaska Air Group, Inc.		36,230		2,397,701
Foot Locker, Inc.		37,500		2,362,500
Tempur Sealy International, Inc.*		37,900		2,188,346
Polaris Industries, Inc.		14,833		2,092,936
Brunswick Corp.		32,800		1,687,560
Carter’s, Inc.		17,274		1,597,327
Williams-Sonoma, Inc.		19,900		1,586,229
Domino’s Pizza, Inc.		15,600		1,568,580
Brinker International, Inc.		19,700		1,212,732
LKQ Corp.*		45,350		1,159,146
HSN, Inc.		14,200		968,866
Deckers Outdoor Corp.*		12,300		896,301
Total Consumer, Cyclical				39,507,872
FINANCIAL - 17.0%
Alexander & Baldwin, Inc.		101,700		4,391,406
Extra Space Storage, Inc.		48,600		3,283,902
Camden Property Trust		37,500		2,929,875
Jones Lang LaSalle, Inc.		16,500		2,811,600
LaSalle Hotel Properties		72,300		2,809,578
RenaissanceRe Holdings Ltd.		21,800		2,174,114
Duke Realty Corp.		97,600		2,124,752
Omega Healthcare Investors, Inc.		49,600		2,012,272
Primerica, Inc.		35,300		1,796,770
Weingarten Realty Investors		46,300		1,665,874
Lamar Advertising Co. — Class A		26,500		1,570,655
Signature Bank*		11,801		1,529,174
Regency Centers Corp.		21,000		1,428,840
Kilroy Realty Corp.		14,800		1,127,316
UDR, Inc.		29,100		990,273
Total Financial				32,646,401
INDUSTRIAL - 14.0%
Trinity Industries, Inc.		144,600		5,134,745
Eagle Materials, Inc.		51,551		4,307,602
Packaging Corporation of America		35,900		2,807,021
Wabtec Corp.		24,960		2,371,450
Old Dominion Freight Line, Inc.*		30,595		2,364,994
Zebra Technologies Corp. — Class A*		22,800		2,068,302
ITT Corp.		48,300		1,927,653
Acuity Brands, Inc.		10,400		1,748,864
Cognex Corp.*		31,700		1,572,003
Landstar System, Inc.		23,091		1,530,933
Gentex Corp.		58,332		1,067,476
Total Industrial				26,901,043
TECHNOLOGY - 10.3%
Cadence Design Systems, Inc.*		197,400		3,640,056
SolarWinds, Inc.*		68,800		3,525,312
MAXIMUS, Inc.		45,900		3,064,284
Rackspace Hosting, Inc.*		41,100		2,120,349
Fair Isaac Corp.		20,311		1,801,992
Ultimate Software Group, Inc.*		9,786		1,663,180
ACI Worldwide, Inc.*		68,637		1,486,677
Riverbed Technology, Inc.*		63,600		1,329,876
Tyler Technologies, Inc.*		9,000		1,084,770
Total Technology				19,716,496
COMMUNICATIONS - 7.5%
ARRIS Group, Inc.*		134,450		3,884,932
Fortinet, Inc.*		95,800		3,348,210
InterDigital, Inc.		45,890		2,328,459
Qorvo, Inc.*		28,600		2,279,420
AMC Networks, Inc. — Class A*		19,700		1,509,808
FactSet Research Systems, Inc.		6,800		1,082,560
Total Communications				14,433,389
BASIC MATERIALS - 2.4%
Minerals Technologies, Inc.		24,651		1,801,988
Cytec Industries, Inc.		31,900		1,723,876
Valspar Corp.		13,300		1,117,599
Total Basic Materials				4,643,463

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
ENERGY - 1.1%
Dresser-Rand Group, Inc.*		25,400	$	2,040,890
UTILITIES - 0.8%
UGI Corp.		47,800		1,557,802
Total Common Stocks
(Cost $159,179,925)				191,119,547

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	498,748		498,748
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		76,219		76,219
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		61,178		61,178
Total Repurchase Agreements
(Cost $636,145)				636,145
Total Investments - 99.9%
(Cost $159,816,070)			$	191,755,692
Other Assets & Liabilities, net - 0.1%				252,878
Total Net Assets - 100.0%			$	192,008,570

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $159,179,925)	$	191,119,547
Repurchase agreements, at value (cost $636,145)		636,145
Total investments (cost $159,816,070)		191,755,692
Cash		6,720
Receivables:
Securities sold		1,074,789
Dividends		114,678
Fund shares sold		81,952
Securities lending income		470
Interest		1
Total assets		193,034,302
Liabilities:
Payable for:
Fund shares redeemed		656,094
Management fees		119,758
Distribution and service fees		56,019
Transfer agent and administrative fees		39,919
Portfolio accounting fees		15,968
Miscellaneous		137,974
Total liabilities		1,025,732
Commitments and contingent liabilities (Note 14)		—
Net assets	$	192,008,570
Net assets consist of:
Paid in capital	$	154,801,901
Undistributed net investment income		—
Accumulated net realized gain on investments		5,267,047
Net unrealized appreciation on investments		31,939,622
Net assets	$	192,008,570
A-Class:
Net assets	$	40,647,953
Capital shares outstanding		754,682
Net asset value per share	$	53.86
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.55
C-Class:
Net assets	$	26,689,100
Capital shares outstanding		549,208
Net asset value per share	$	48.60
H-Class:
Net assets	$	124,671,517
Capital shares outstanding		2,312,395
Net asset value per share	$	53.91

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	2,016,255
Income from securities lending, net		213,188
Interest		210
Total investment income		2,229,653
Expenses:
Management fees		1,697,897
Transfer agent and administrative fees		565,966
Distribution and service fees:
A-Class		120,585
C-Class		263,321
H-Class		379,551
Portfolio accounting fees		226,152
Custodian fees		26,433
Trustees’ fees*		18,540
Tax expense		2,114
Line of credit fees		383
Miscellaneous		307,429
Total expenses		3,608,371
Net investment loss		(1,378,718	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		29,700,840
Net realized gain		29,700,840
Net change in unrealized appreciation (depreciation) on:
Investments		(18,164,089	)
Net change in unrealized appreciation (depreciation)		(18,164,089	)
Net realized and unrealized gain		11,536,751
Net increase in net assets resulting from operations	$	10,158,033

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

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,378,718	)	$	(1,185,523	)
Net realized gain on investments		29,700,840			55,085,731
Net change in unrealized appreciation (depreciation) on investments		(18,164,089	)		(4,970,041	)
Net increase in net assets resulting from operations		10,158,033			48,930,167
Distributions to shareholders from:
Net realized gains
A-Class		(7,116,622	)		(1,952,757	)
C-Class		(4,084,213	)		(948,399	)
H-Class		(22,003,582	)		(6,562,447	)
Total distributions to shareholders		(33,204,417	)		(9,463,603	)
Capital share transactions:
Proceeds from sale of shares
A-Class		39,741,275			36,744,483
C-Class		6,287,664			12,268,993
H-Class		147,612,847			228,779,489
Distributions reinvested
A-Class		6,967,839			1,901,016
C-Class		3,990,817			922,659
H-Class		21,471,603			6,298,116
Cost of shares redeemed
A-Class		(61,004,231	)		(33,701,785	)
C-Class		(9,508,175	)		(6,985,331	)
H-Class		(215,228,354	)		(317,602,501	)
Net decrease from capital share transactions		(59,668,715	)		(71,374,861	)
Net decrease in net assets		(82,715,099	)		(31,908,297	)
Net assets:
Beginning of year		274,723,669			306,631,966
End of year	$	192,008,570		$	274,723,669
Undistributed net investment income at end of year	$	—		$	—
Capital share activity:
Shares sold
A-Class		737,028			700,297
C-Class		127,220			242,805
H-Class		2,657,949			4,249,934
Shares issued from reinvestment of distributions
A-Class		138,912			33,658
C-Class		87,942			17,659
H-Class		427,636			111,412
Shares redeemed
A-Class		(1,132,013	)		(640,363	)
C-Class		(193,674	)		(138,844	)
H-Class		(3,955,768	)		(6,041,405	)
Net decrease in shares		(1,104,768	)		(1,464,847	)

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	58.66		$	49.76		$	44.11		$	42.76		$	32.21
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.22	)		(.19	)		(.45	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		3.88			11.05			5.84			1.80			10.93
Total from investment operations		3.59			10.83			5.65			1.35			10.55
Less distributions from:
Net realized gains		(8.39	)		(1.93	)		—			—			—
Total distributions		(8.39	)		(1.93	)		—			—			—
Net asset value, end of period	$	53.86		$	58.66		$	49.76		$	44.11		$	42.76
Total Returnb		7.18	%		21.90	%		12.81	%		3.16	%		32.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	40,648		$	59,293		$	45,638		$	36,052		$	25,237
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.40	%)		(0.43	%)		(1.09	%)		(1.04	%)
Total expenses		1.51	%		1.52	%		1.50	%		1.50	%		1.54	%
Portfolio turnover rate		134	%		131	%		188	%		226	%		448	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	54.13		$	46.39		$	41.43		$	40.47		$	30.71
Income (loss) from investment operations:
Net investment income (loss)a		(.64	)		(.58	)		(.49	)		(.71	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		3.50			10.25			5.45			1.67			10.39
Total from investment operations		2.86			9.67			4.96			.96			9.76
Less distributions from:
Net realized gains		(8.39	)		(1.93	)		—			—			—
Total distributions		(8.39	)		(1.93	)		—			—			—
Net asset value, end of period	$	48.60		$	54.13		$	46.39		$	41.43		$	40.47
Total Returnb		6.39	%		20.98	%		12.00	%		2.35	%		31.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26,689		$	28,567		$	18,837		$	16,228		$	10,102
Ratios to average net assets:
Net investment income (loss)		(1.26	%)		(1.15	%)		(1.19	%)		(1.83	%)		(1.83	%)
Total expenses		2.26	%		2.27	%		2.25	%		2.25	%		2.29	%
Portfolio turnover rate		134	%		131	%		188	%		226	%		448	%

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	58.71		$	49.80		$	44.14		$	42.81		$	32.25
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.18	)		(.20	)		(.44	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		3.88			11.02			5.86			1.77			10.94
Total from investment operations		3.59			10.84			5.66			1.33			10.56
Less distributions from:
Net realized gains		(8.39	)		(1.93	)		—			—			—
Total distributions		(8.39	)		(1.93	)		—			—			—
Net asset value, end of period	$	53.91		$	58.71		$	49.80		$	44.14		$	42.81
Total Returnb		7.18	%		21.91	%		12.82	%		3.11	%		32.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	124,672		$	186,863		$	242,157		$	312,510		$	212,654
Ratios to average net assets:
Net investment income (loss)		(0.52	%)		(0.33	%)		(0.45	%)		(1.08	%)		(1.02	%)
Total expenses		1.51	%		1.52	%		1.50	%		1.50	%		1.55	%
Portfolio turnover rate		134	%		131	%		188	%		226	%		448	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P MIDCAP 400^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Value Index (the “underlying index”).

For the one-year period ended March 31, 2015, S&P MidCap 400^® Pure Value Fund H-Class returned 6.26%, compared with a return of 8.34% for the S&P MidCap 400 Pure Value Index. The Fund maintained a daily correlation of over 99% to its benchmark.

The sectors that contributed most to performance of the underlying index for the period were Health Care and Financials. The Energy sector detracted most from performance, followed by the Materials sector.

JetBlue Airways Corp., Health Net, Inc., and Murphy USA, Inc. contributed most to performance of the underlying index for the period. Abercrombie & Fitch Co. — Class A, Unit Corp., and Tidewater, Inc. detracted most from performance of the underlying index for the period.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Domtar Corp.	2.2%
AGCO Corp.	2.1%
Nabors Industries Ltd.	2.0%
Reinsurance Group of America, Inc. — Class A	1.9%
Ascena Retail Group, Inc.	1.9%
ManpowerGroup, Inc.	1.7%
Arrow Electronics, Inc.	1.7%
Avnet, Inc.	1.7%
HollyFrontier Corp.	1.7%
Ingram Micro, Inc. — Class A	1.7%
Top Ten Total	18.6%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

34 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	6.25%	10.52%	6.66%
A-Class Shares with sales charge†	1.20%	9.45%	6.14%
C-Class Shares	5.47%	9.68%	5.81%
C-Class Shares with CDSC‡	4.47%	9.68%	5.81%
H-Class Shares	6.26%	10.50%	6.65%
S&P MidCap 400 Pure Value Index	8.34%	13.43%	9.58%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 35

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.4%
INDUSTRIAL - 23.9%
AGCO Corp.		6,015	$	286,555
Arrow Electronics, Inc.*		3,845		235,121
Avnet, Inc.		5,279		234,916
Tech Data Corp.*		3,915		226,170
AECOM*		7,149		220,332
Terex Corp.		7,959		211,630
Orbital ATK, Inc.		2,263		173,414
KBR, Inc.		11,758		170,256
Jabil Circuit, Inc.		6,736		157,488
Oshkosh Corp.		3,079		150,224
Vishay Intertechnology, Inc.		10,126		139,941
Greif, Inc. — Class A		3,556		139,644
Exelis, Inc.		5,476		133,450
Tidewater, Inc.1		5,847		111,912
Con-way, Inc.		2,460		108,560
SPX Corp.		1,120		95,088
Triumph Group, Inc.		1,500		89,580
Rock-Tenn Co. — Class A		1,340		86,430
Kennametal, Inc.		2,260		76,139
Regal-Beloit Corp.		925		73,926
Granite Construction, Inc.		1,870		65,712
Bemis Company, Inc.		1,277		59,138
Timken Co.		1,170		49,304
TimkenSteel Corp.		1,684		44,575
Total Industrial				3,339,505
FINANCIAL - 18.4%
Reinsurance Group of America, Inc. — Class A		2,873		267,735
Old Republic International Corp.		13,070		195,266
Hanover Insurance Group, Inc.		2,621		190,232
Kemper Corp.		4,811		187,436
Aspen Insurance Holdings Ltd.		3,886		183,536
American Financial Group, Inc.		2,357		151,202
First American Financial Corp.		3,889		138,760
Everest Re Group Ltd.		699		121,626
StanCorp Financial Group, Inc.		1,752		120,187
FirstMerit Corp.		4,610		87,866
Mercury General Corp.		1,480		85,470
Trustmark Corp.		3,510		85,223
Associated Banc-Corp.		4,548		84,593
International Bancshares Corp.		3,212		83,608
Fulton Financial Corp.		6,730		83,048
Umpqua Holdings Corp.		4,407		75,712
Hancock Holding Co.		2,520		75,247
HCC Insurance Holdings, Inc.		1,280		72,538
Washington Federal, Inc.		3,230		70,430
TCF Financial Corp.		3,447		54,187
Valley National Bancorp		5,445		51,401
New York Community Bancorp, Inc.		3,011		50,374
Prosperity Bancshares, Inc.		920		48,282
Total Financial				2,563,959
ENERGY - 16.5%
Nabors Industries Ltd.		20,100		274,364
HollyFrontier Corp.		5,718		230,264
Patterson-UTI Energy, Inc.		11,220		210,656
Western Refining, Inc.		3,900		192,621
Denbury Resources, Inc.1		25,420		185,313
Superior Energy Services, Inc.		7,992		178,541
SM Energy Co.		2,780		143,670
Murphy USA, Inc.*		1,960		141,845
Unit Corp.*		4,974		139,173
Atwood Oceanics, Inc.		4,920		138,301
Rowan Companies plc — Class A		7,230		128,043
NOW, Inc.*,1		4,830		104,521
Rosetta Resources, Inc.*		4,120		70,122
Oil States International, Inc.*		1,550		61,644
Peabody Energy Corp.1		12,159		59,822
Helix Energy Solutions Group, Inc.*		2,500		37,400
Total Energy				2,296,300
CONSUMER, NON-CYCLICAL - 11.4%
ManpowerGroup, Inc.		2,815		242,512
Community Health Systems, Inc.*		3,338		174,511
WellCare Health Plans, Inc.*		1,900		173,773
Health Net, Inc.*		2,759		166,892
RR Donnelley & Sons Co.		7,860		150,833
Owens & Minor, Inc.		4,215		142,636
Rent-A-Center, Inc.		4,947		135,746
FTI Consulting, Inc.*		2,380		89,155
United Natural Foods, Inc.*		1,140		87,826
Dean Foods Co.		4,727		78,137
Aaron’s, Inc.		2,660		75,305
Avon Products, Inc.		7,900		63,121
Total Consumer, Non-cyclical				1,580,447
CONSUMER, CYCLICAL - 11.2%
Ascena Retail Group, Inc.*		18,278		265,213
Ingram Micro, Inc. — Class A*		9,146		229,748
World Fuel Services Corp.		3,757		215,952
MDC Holdings, Inc.		6,221		177,299
Abercrombie & Fitch Co. — Class A		5,034		110,949
CST Brands, Inc.		2,420		106,069
JC Penney Company, Inc.*,1		12,009		100,996
Guess?, Inc.		4,380		81,424
Dana Holding Corp.		3,610		76,388
International Speedway Corp. — Class A		2,190		71,416
Office Depot, Inc.*		6,791		62,477
ANN, Inc.*		1,400		57,442
Total Consumer, Cyclical				1,555,373

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
BASIC MATERIALS - 8.6%
Domtar Corp.		6,495	$	300,199
Reliance Steel & Aluminum Co.		3,325		203,091
Commercial Metals Co.		12,165		196,951
United States Steel Corp.1		6,667		162,675
Cabot Corp.		3,030		136,350
Olin Corp.		3,160		101,246
Steel Dynamics, Inc.		4,758		95,636
Total Basic Materials				1,196,148
UTILITIES - 3.4%
ONE Gas, Inc.		2,526		109,198
Great Plains Energy, Inc.		3,451		92,073
Hawaiian Electric Industries, Inc.		2,666		85,632
MDU Resources Group, Inc.		3,587		76,547
Atmos Energy Corp.		1,067		59,005
WGL Holdings, Inc.		932		52,565
Total Utilities				475,020
TECHNOLOGY - 2.5%
Advanced Micro Devices, Inc.*		38,477		103,118
Lexmark International, Inc. — Class A		2,336		98,906
Convergys Corp.		3,149		72,018
NCR Corp.*		2,307		68,080
Total Technology				342,122
COMMUNICATIONS - 2.2%
Telephone & Data Systems, Inc.		6,643		165,410
Time, Inc.		6,106		137,019
Total Communications				302,429
HEALTH CARE - 1.3%
Halyard Health, Inc.*		3,630		178,596
Total Common Stocks
(Cost $10,759,556)				13,829,899

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	76,518		76,518
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		11,694		11,694
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		9,386		9,386
Total Repurchase Agreements
(Cost $97,598)				97,598
SECURITIES LENDING COLLATERAL††,3 - 3.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		282,200		282,200
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		97,077		97,077
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		50,107		50,107
Total Securities Lending Collateral
(Cost $429,384)				429,384
Total Investments - 103.2%
(Cost $11,286,538)			$	14,356,881
Other Assets & Liabilities, net - (3.2)%				(451,560	)
Total Net Assets - 100.0%			$	13,905,321

*	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 March 31, 2015 — 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 ANNUAL REPORT | 37

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $411,361 of securities loaned (cost $10,759,556)	$	13,829,899
Repurchase agreements, at value (cost $526,982)		526,982
Total investments (cost $11,286,538)		14,356,881
Segregated cash with broker		6,276
Receivables:
Fund shares sold		1,098,749
Dividends		15,156
Securities lending income		894
Total assets		15,477,956
Liabilities:
Payable for:
Fund shares redeemed		839,502
Return of securities loaned		435,660
Securities purchased		265,939
Management fees		9,848
Distribution and service fees		5,071
Transfer agent and administrative fees		3,283
Portfolio accounting fees		1,313
Miscellaneous		12,019
Total liabilities		1,572,635
Commitments and contingent liabilities (Note 14)		—
Net assets	$	13,905,321
Net assets consist of:
Paid in capital	$	14,574,203
Undistributed net investment income		28,715
Accumulated net realized loss on investments		(3,767,940	)
Net unrealized appreciation on investments		3,070,343
Net assets	$	13,905,321
A-Class:
Net assets	$	1,904,016
Capital shares outstanding		41,682
Net asset value per share	$	45.68
Maximum offering price per share (Net asset value divided by 95.25%)	$	47.96
C-Class:
Net assets	$	3,033,215
Capital shares outstanding		72,925
Net asset value per share	$	41.59
H-Class:
Net assets	$	8,968,090
Capital shares outstanding		196,578
Net asset value per share	$	45.62

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	342,244
Income from securities lending, net		5,721
Interest		24
Total investment income		347,989
Expenses:
Management fees		147,546
Transfer agent and administrative fees		49,182
Distribution and service fees:
A-Class		5,650
C-Class		30,560
H-Class		35,892
Portfolio accounting fees		19,673
Custodian fees		2,296
Trustees’ fees*		1,607
Line of credit fees		179
Miscellaneous		26,689
Total expenses		319,274
Net investment income		28,715
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		821,447
Net realized gain		821,447
Net change in unrealized appreciation (depreciation) on:
Investments		(111,329	)
Net change in unrealized appreciation (depreciation)		(111,329	)
Net realized and unrealized gain		710,118
Net increase in net assets resulting from operations	$	738,833

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	28,715		$	18,945
Net realized gain on investments		821,447			3,292,740
Net change in unrealized appreciation (depreciation) on investments		(111,329	)		(2,272,142	)
Net increase in net assets resulting from operations		738,833			1,039,543
Distributions to shareholders from:
Net investment income
A-Class		(1,894	)		(6,418	)
C-Class		(3,562	)		(10,279	)
H-Class		(13,489	)		(35,413	)
Total distributions to shareholders		(18,945	)		(52,110	)
Capital share transactions:
Proceeds from sale of shares
A-Class		11,223,218			10,210,160
C-Class		3,652,910			2,956,353
H-Class		118,121,754			180,329,694
Distributions reinvested
A-Class		1,845			5,904
C-Class		3,500			10,187
H-Class		13,216			33,473
Cost of shares redeemed
A-Class		(11,626,460	)		(9,772,932	)
C-Class		(2,948,860	)		(4,562,781	)
H-Class		(120,382,579	)		(248,292,026	)
Net decrease from capital share transactions		(1,941,456	)		(69,081,968	)
Net decrease in net assets		(1,221,568	)		(68,094,535	)
Net assets:
Beginning of year		15,126,889			83,221,424
End of year	$	13,905,321		$	15,126,889
Undistributed net investment income at end of year	$	28,715		$	18,945
Capital share activity:
Shares sold
A-Class		253,969			259,238
C-Class		91,046			81,786
H-Class		2,697,009			4,580,797
Shares issued from reinvestment of distributions
A-Class		41			142
C-Class		86			266
H-Class		296			805
Shares redeemed
A-Class		(267,091	)		(248,039	)
C-Class		(74,102	)		(128,153	)
H-Class		(2,746,513	)		(6,499,596	)
Net decrease in shares		(45,259	)		(1,952,754	)

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	43.04		$	36.18		$	30.88		$	31.43		$	30.45
Income (loss) from investment operations:
Net investment income (loss)a		.11			(.03	)		.07			.06			.02
Net gain (loss) on investments (realized and unrealized)		2.58			7.08			5.23			(.61	)		3.64
Total from investment operations		2.69			7.05			5.30			(.55	)		3.66
Less distributions from:
Net investment income		(.05	)		(.19	)		—			—			(.17	)
Net realized gains		—			—			—			—			(2.51	)
Total distributions		(.05	)		(.19	)		—			—			(2.68	)
Net asset value, end of period	$	45.68		$	43.04		$	36.18		$	30.88		$	31.43
Total Returnb		6.25	%		19.49	%		17.16	%		(1.75	%)		12.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,904		$	2,357		$	1,571		$	6,817		$	785
Ratios to average net assets:
Net investment income (loss)		0.26	%		(0.06	%)		0.23	%		0.22	%		0.08	%
Total expenses		1.51	%		1.52	%		1.51	%		1.49	%		1.53	%
Portfolio turnover rate		638	%		506	%		757	%		619	%		407	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	39.48		$	33.46		$	28.78		$	29.53		$	28.96
Income (loss) from investment operations:
Net investment income (loss)a		(.18	)		(.25	)		(.13	)		(.16	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		2.34			6.46			4.81			(.59	)		3.48
Total from investment operations		2.16			6.21			4.68			(.75	)		3.25
Less distributions from:
Net investment income		(.05	)		(.19	)		—			—			(.17	)
Net realized gains		—			—			—			—			(2.51	)
Total distributions		(.05	)		(.19	)		—			—			(2.68	)
Net asset value, end of period	$	41.59		$	39.48		$	33.46		$	28.78		$	29.53
Total Returnb		5.47	%		18.57	%		16.26	%		(2.54	%)		12.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,033		$	2,207		$	3,413		$	2,194		$	2,311
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.71	%)		(0.45	%)		(0.60	%)		(0.83	%)
Total expenses		2.26	%		2.28	%		2.26	%		2.26	%		2.30	%
Portfolio turnover rate		638	%		506	%		757	%		619	%		407	%

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	42.98		$	36.16		$	30.86		$	31.42		$	30.43
Income (loss) from investment operations:
Net investment income (loss)a		.11			.06			.08			.01			(.06	)
Net gain (loss) on investments (realized and unrealized)		2.58			6.95			5.22			(.57	)		3.73
Total from investment operations		2.69			7.01			5.30			(.56	)		3.67
Less distributions from:
Net investment income		(.05	)		(.19	)		—			—			(.17	)
Net realized gains		—			—			—			—			(2.51	)
Total distributions		(.05	)		(.19	)		—			—			(2.68	)
Net asset value, end of period	$	45.62		$	42.98		$	36.16		$	30.86		$	31.42
Total Returnb		6.26	%		19.39	%		17.17	%		(1.78	%)		12.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,968		$	10,563		$	78,237		$	18,838		$	54,206
Ratios to average net assets:
Net investment income (loss)		0.25	%		0.15	%		0.24	%		0.02	%		(0.19	%)
Total expenses		1.51	%		1.52	%		1.52	%		1.51	%		1.54	%
Portfolio turnover rate		638	%		506	%		757	%		619	%		407	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P SMALLCAP 600^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Growth Index (the “underlying index”).

For the one-year period ended March 31, 2015, S&P SmallCap 600^® Pure Growth Fund H-Class returned 11.13%, compared with a gain of 13.00% for the S&P SmallCap 600 Pure Growth Index. The Fund maintained a daily correlation of over 99% to its benchmark.

The Health Care sector and the Consumer Discretionary sector contributed most to performance of the underlying index for the period. The Energy sector was the largest detractor from performance, followed by the Materials sector.

The best-performing stocks in the S&P SmallCap 600 Pure Growth Index were Akorn, Inc., ABIOMED, Inc., and Repligen Corp. The weakest performers in the underlying index were C&J Energy Services Ltd., Stone Energy Corp., and Matrix Service Co.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Lannett Company, Inc.	2.6%
Carrizo Oil & Gas, Inc.	1.6%
ABIOMED, Inc.	1.6%
Take-Two Interactive Software, Inc.	1.5%
TASER International, Inc.	1.5%
Synchronoss Technologies, Inc.	1.5%
Universal Insurance Holdings, Inc.	1.4%
Meritage Homes Corp.	1.4%
Synergy Resources Corp.	1.4%
General Communication, Inc. — Class A	1.4%
Top Ten Total	15.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

42 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	11.15%	15.63%	8.47%
A-Class Shares with sales charge†	5.88%	14.51%	7.95%
C-Class Shares	10.30%	14.78%	7.68%
C-Class Shares with CDSC‡	9.30%	14.78%	7.68%
H-Class Shares	11.13%	15.64%	8.47%
S&P SmallCap 600 Pure Growth Index	13.00%	18.04%	10.68%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 43

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
CONSUMER, NON-CYCLICAL - 22.0%
Lannett Company, Inc.*		22,627	$	1,532,075
ABIOMED, Inc.*		12,801		916,295
Molina Healthcare, Inc.*		11,236		756,070
PAREXEL International Corp.*		10,509		725,016
Repligen Corp.*		23,853		724,177
On Assignment, Inc.*		18,386		705,471
Depomed, Inc.*		29,061		651,258
ExamWorks Group, Inc.*		14,841		617,682
Natus Medical, Inc.*		12,759		503,598
AMN Healthcare Services, Inc.*		21,712		500,896
Calavo Growers, Inc.		9,130		469,465
Cambrex Corp.*		10,686		423,486
Cynosure, Inc. — Class A*		13,354		409,567
Ligand Pharmaceuticals, Inc. — Class B*		5,248		404,673
Cal-Maine Foods, Inc.1		9,937		388,139
Anika Therapeutics, Inc.*		9,248		380,740
Abaxis, Inc.		5,745		368,312
Chemed Corp.		3,000		358,200
Ensign Group, Inc.		7,500		351,450
Albany Molecular Research, Inc.*		19,030		334,928
Snyder’s-Lance, Inc.		9,500		303,620
Impax Laboratories, Inc.*		6,197		290,453
Helen of Troy Ltd.*		3,320		270,547
Affymetrix, Inc.*		20,487		257,317
Cantel Medical Corp.		4,930		234,175
J&J Snack Foods Corp.		1,469		156,742
Total Consumer, Non-cyclical				13,034,352
FINANCIAL - 22.0%
Universal Insurance Holdings, Inc.		32,608		834,439
Sabra Health Care REIT, Inc.		24,297		805,445
Chesapeake Lodging Trust		22,360		756,438
CoreSite Realty Corp.		15,142		737,113
Bank Mutual Corp.		79,194		579,700
DiamondRock Hospitality Co.		40,422		571,163
American Assets Trust, Inc.		12,850		556,149
HFF, Inc. — Class A		14,742		553,415
Universal Health Realty Income Trust		9,070		510,188
Associated Estates Realty Corp.		18,713		461,836
Post Properties, Inc.		7,375		419,859
Retail Opportunity Investments Corp.		22,287		407,852
First Midwest Bancorp, Inc.		23,029		400,013
Glacier Bancorp, Inc.		15,150		381,023
Boston Private Financial Holdings, Inc.		30,424		369,652
Home BancShares, Inc.		10,605		359,403
Medical Properties Trust, Inc.		24,276		357,828
MB Financial, Inc.		11,280		353,177
BofI Holding, Inc.*		3,758		349,644
HCI Group, Inc.		7,539		345,814
PrivateBancorp, Inc. — Class A		9,248		325,252
PRA Group, Inc.*		5,752		312,449
Bank of the Ozarks, Inc.		8,096		298,985
Sovran Self Storage, Inc.		3,050		286,517
Enova International, Inc.*		14,034		276,329
Pinnacle Financial Partners, Inc.		5,854		260,269
Education Realty Trust, Inc.		7,310		258,628
Healthcare Realty Trust, Inc.		9,106		252,965
Inland Real Estate Corp.		23,125		247,206
Cousins Properties, Inc.		17,819		188,881
CareTrust REIT, Inc.		12,685		172,009
Total Financial				12,989,641
CONSUMER, CYCLICAL - 17.8%
Meritage Homes Corp.*		17,010		827,367
Skechers U.S.A., Inc. — Class A*		10,788		775,765
Pinnacle Entertainment, Inc.*		21,463		774,600
Standard Pacific Corp.*		77,665		698,985
Ryland Group, Inc.		12,630		615,586
G-III Apparel Group Ltd.*		5,152		580,373
DTS, Inc.*		15,775		537,454
Allegiant Travel Co. — Class A		2,553		490,916
Select Comfort Corp.*		13,035		449,316
Zumiez, Inc.*		11,105		446,976
Papa John’s International, Inc.		6,631		409,861
BJ’s Restaurants, Inc.*		7,890		398,051
Popeyes Louisiana Kitchen, Inc.*		6,630		396,607
Sonic Corp.		12,279		389,244
Winnebago Industries, Inc.		16,495		350,684
Jack in the Box, Inc.		3,270		313,658
Outerwall, Inc.1		4,738		313,277
Texas Roadhouse, Inc. — Class A		8,302		302,442
Iconix Brand Group, Inc.*		8,780		295,623
Wolverine World Wide, Inc.		8,721		291,717
Universal Electronics, Inc.*		4,613		260,358
Marriott Vacations Worldwide Corp.		2,990		242,340
Francesca’s Holdings Corp.*		10,940		194,732
Scientific Games Corp. — Class A*,1		13,319		139,450
Total Consumer, Cyclical				10,495,382
INDUSTRIAL - 13.8%
TASER International, Inc.*,1		36,500		880,015
Methode Electronics, Inc.		16,535		777,806
PGT, Inc.*		59,749		667,695
ArcBest Corp.		14,140		535,764
Apogee Enterprises, Inc.		12,163		525,442
Lydall, Inc.*		16,018		508,091
KapStone Paper and Packaging Corp.		15,332		503,503
Heartland Express, Inc.		20,838		495,111
Headwaters, Inc.*		25,860		474,272
US Ecology, Inc.		9,204		459,924
Hillenbrand, Inc.		12,562		387,789
Knight Transportation, Inc.		11,238		362,426
Saia, Inc.*		7,063		312,891
Bel Fuse, Inc. — Class B		16,270		309,618
Curtiss-Wright Corp.		3,900		288,366

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Matson, Inc.		5,908	$	249,081
AZZ, Inc.		4,405		205,229
Forward Air Corp.		3,450		187,335
Total Industrial				8,130,358
TECHNOLOGY - 11.3%
Take-Two Interactive Software, Inc.*		35,734		909,609
Synchronoss Technologies, Inc.*		18,267		866,951
Omnicell, Inc.*		16,755		588,101
Manhattan Associates, Inc.*		10,909		552,103
IGATE Corp.*		11,743		500,956
Synaptics, Inc.*		5,604		455,633
Super Micro Computer, Inc.*		13,520		448,999
NetScout Systems, Inc.*,1		9,895		433,896
Tessera Technologies, Inc.		9,427		379,720
Monolithic Power Systems, Inc.		6,890		362,759
Virtusa Corp.*		7,160		296,281
Dealertrack Technologies, Inc.*		6,755		260,203
Blackbaud, Inc.		5,136		243,344
Electronics for Imaging, Inc.*		5,295		221,066
MicroStrategy, Inc. — Class A*		767		129,769
Total Technology				6,649,390
COMMUNICATIONS - 6.3%
General Communication, Inc. — Class A*		52,230		823,146
LogMeIn, Inc.*		10,525		589,295
Dice Holdings, Inc.*		55,165		492,072
comScore, Inc.*		8,508		435,610
j2 Global, Inc.		6,343		416,608
EW Scripps Co. — Class A*		13,451		382,546
VASCO Data Security International, Inc.*,1		9,710		209,153
Consolidated Communications Holdings, Inc.		10,101		206,060
ViaSat, Inc.*		2,710		161,543
Total Communications				3,716,033
ENERGY - 3.8%
Carrizo Oil & Gas, Inc.*		18,698		928,355
Synergy Resources Corp.*		69,468		823,196
Flotek Industries, Inc.*		21,074		310,631
PetroQuest Energy, Inc.*		89,356		205,519
Total Energy				2,267,701
BASIC MATERIALS - 2.5%
US Silica Holdings, Inc.1		14,009		498,861
Deltic Timber Corp.		4,860		321,975
Neenah Paper, Inc.		4,252		265,920
Century Aluminum Co.*		13,944		192,427
Balchem Corp.		3,163		175,167	��
Total Basic Materials				1,454,350
CONSUMER DISCRETIONARY - 0.0%
EW Scripps Co.*		1,400		35,840
Total Common Stocks
(Cost $51,222,066)				58,773,047
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	136,513		136,513
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		20,862		20,862
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		16,745		16,745
Total Repurchase Agreements
(Cost $174,120)				174,120
SECURITIES LENDING COLLATERAL††,3 - 3.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,219,541		1,219,541
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		419,522		419,522
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		216,541		216,541
Total Securities Lending Collateral
(Cost $1,855,604)				1,855,604
Total Investments - 102.9%
(Cost $53,251,790)			$	60,802,771

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS SOLD SHORT† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Journal Media Group, Inc.*		3,362	$	(29,384	)
Total Common Stock Sold Short
(Proceeds $29,400)				(29,384	)
Other Assets & Liabilities, net - (2.9)%				(1,702,955	)
Total Net Assets - 100.0%			$	59,070,432

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	REIT — Real Estate Investment Trust

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $1,834,303 of securities loaned (cost $51,222,066)	$	58,773,047
Repurchase agreements, at value (cost $2,029,724)		2,029,724
Total investments (cost $53,251,790)		60,802,771
Segregated cash with broker		27,121
Receivables:
Fund shares sold		785,237
Securities sold		564,580
Dividends		40,694
Securities lending income		889
Total assets		62,221,292
Liabilities:
Securities sold short, at value (proceeds $29,400)		29,384
Payable for:
Return of securities loaned		1,882,725
Securities purchased		653,576
Fund shares redeemed		502,006
Management fees		33,395
Distribution and service fees		14,297
Transfer agent and administrative fees		11,132
Portfolio accounting fees		4,452
Miscellaneous		19,893
Total liabilities		3,150,860
Commitments and contingent liabilities (Note 14)		—
Net assets	$	59,070,432
Net assets consist of:
Paid in capital	$	53,600,346
Undistributed net investment income		—
Accumulated net realized loss on investments		(2,080,911	)
Net unrealized appreciation on investments		7,550,997
Net assets	$	59,070,432
A-Class:
Net assets	$	2,824,598
Capital shares outstanding		47,954
Net asset value per share	$	58.90
Maximum offering price per share (Net asset value divided by 95.25%)	$	61.84
C-Class:
Net assets	$	5,435,839
Capital shares outstanding		100,142
Net asset value per share	$	54.28
H-Class:
Net assets	$	50,809,995
Capital shares outstanding		862,747
Net asset value per share	$	58.89

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $363)	$	216,563
Income from securities lending, net		3,666
Interest		38
Total investment income		220,267
Expenses:
Management fees		194,023
Transfer agent and administrative fees		64,675
Distribution and service fees:
A-Class		9,086
C-Class		30,156
H-Class		48,050
Portfolio accounting fees		25,870
Registration fees		20,891
Custodian fees		3,007
Trustees’ fees*		1,876
Line of credit fees		286
Miscellaneous		10,464
Total expenses		408,384
Net investment loss		(188,117	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,956,093
Net realized gain		2,956,093
Net change in unrealized appreciation (depreciation) on:
Investments		2,390,639
Securities sold short		16
Net change in unrealized appreciation (depreciation)		2,390,655
Net realized and unrealized gain		5,346,748
Net increase in net assets resulting from operations	$	5,158,631

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

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(188,117	)	$	(399,977	)
Net realized gain on investments		2,956,093			5,014,825
Net change in unrealized appreciation (depreciation) on investments		2,390,655			3,155,012
Net increase in net assets resulting from operations		5,158,631			7,769,860
Capital share transactions:
Proceeds from sale of shares
A-Class		1,853,974			10,306,511
C-Class		4,335,594			6,653,049
H-Class		126,430,453			342,094,749
Cost of shares redeemed
A-Class		(6,513,702	)		(4,376,811	)
C-Class		(3,479,599	)		(6,385,674	)
H-Class		(97,243,555	)		(337,494,514	)
Net increase from capital share transactions		25,383,165			10,797,310
Net increase in net assets		30,541,796			18,567,170
Net assets:
Beginning of year		28,528,636			9,961,466
End of year	$	59,070,432		$	28,528,636
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	—		$	(95,970	)
Capital share activity:
Shares sold
A-Class		33,948			199,801
C-Class		85,842			143,830
H-Class		2,360,921			7,053,262
Shares redeemed
A-Class		(123,092	)		(86,422	)
C-Class		(72,433	)		(136,657	)
H-Class		(1,818,920	)		(6,871,867	)
Net increase in shares		466,266			301,947

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.99		$	41.94		$	37.97		$	36.06		$	28.49
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.31	)		(.12	)		(.35	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		6.37			11.36			4.09			2.26			7.91
Total from investment operations		5.91			11.05			3.97			1.91			7.57
Net asset value, end of period	$	58.90		$	52.99		$	41.94		$	37.97		$	36.06
Total Returnb		11.15	%		26.35	%		10.46	%		5.30	%		26.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,825		$	7,265		$	995		$	1,018		$	2,115
Ratios to average net assets:
Net investment income (loss)		(0.88	%)		(0.60	%)		(0.31	%)		(1.00	%)		(1.15	%)
Total expenses		1.51	%		1.53	%		1.51	%		1.52	%		1.54	%
Portfolio turnover rate		380	%		677	%		645	%		500	%		732	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	49.21		$	39.24		$	35.79		$	34.25		$	27.25
Income (loss) from investment operations:
Net investment income (loss)a		(.74	)		(.66	)		(.42	)		(.57	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		5.81			10.63			3.87			2.11			7.54
Total from investment operations		5.07			9.97			3.45			1.54			7.00
Net asset value, end of period	$	54.28		$	49.21		$	39.24		$	35.79		$	34.25
Total Returnb		10.30	%		25.41	%		9.64	%		4.50	%		25.69	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,436		$	4,268		$	3,122		$	2,568		$	3,072
Ratios to average net assets:
Net investment income (loss)		(1.50	%)		(1.46	%)		(1.17	%)		(1.71	%)		(1.80	%)
Total expenses		2.25	%		2.28	%		2.26	%		2.26	%		2.29	%
Portfolio turnover rate		380	%		677	%		645	%		500	%		732	%

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	52.99		$	41.94		$	37.97		$	36.07		$	28.48
Income (loss) from investment operations:
Net investment income (loss)a		(.31	)		(.38	)		(.31	)		(.39	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		6.21			11.43			4.28			2.29			7.93
Total from investment operations		5.90			11.05			3.97			1.90			7.59
Net asset value, end of period	$	58.89		$	52.99		$	41.94		$	37.97		$	36.07
Total Returnb		11.13	%		26.35	%		10.46	%		5.27	%		26.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	50,810		$	16,996		$	5,844		$	29,214		$	92,084
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		(0.77	%)		(0.81	%)		(1.10	%)		(1.07	%)
Total expenses		1.49	%		1.52	%		1.50	%		1.52	%		1.55	%
Portfolio turnover rate		380	%		677	%		645	%		500	%		732	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

S&P SMALLCAP 600^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Value Index (the “underlying index”).

For the one-year period ended March 31, 2015, S&P SmallCap 600^® Pure Value Fund H-Class returned 0.63%, compared with a return of 2.72% for the S&P SmallCap 600 Pure Value Index. The Fund maintained a daily correlation of over 99% to its benchmark.

The sectors that contributed most to return were the Financials and Health Care sectors. The Energy sector was the only one that detracted from return. The Consumer Staples sector contributed least, followed by the Materials sector.

The stocks that contributed most to return in the S&P SmallCap 600 Pure Value Index were Perry Ellis International, Inc., Century Aluminum Co., and Super Micro Computer, Inc. Those that detracted most from return of the underlying index were Pioneer Energy Services Corp., Swift Energy Co., and Cloud Peak Energy, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Meadowbrook Insurance Group, Inc.	1.5%
Central Garden & Pet Co. — Class A	1.4%
Cash America International, Inc.	1.3%
Universal Corp.	1.3%
TTM Technologies, Inc.	1.3%
SkyWest, Inc.	1.3%
Kelly Services, Inc. — Class A	1.2%
Pioneer Energy Services Corp.	1.2%
Seneca Foods Corp. — Class A	1.2%
Griffon Corp.	1.1%
Top Ten Total	12.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 51

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	0.58%	9.65%	5.08%
A-Class Shares with sales charge†	-4.19%	8.59%	4.56%
C-Class Shares	-0.13%	8.81%	4.24%
C-Class Shares with CDSC‡	-1.13%	8.81%	4.24%
H-Class Shares	0.63%	9.61%	5.04%
S&P SmallCap 600 Pure Value Index	2.72%	13.10%	8.86%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

52 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 98.9%
INDUSTRIAL - 20.4%
TTM Technologies, Inc.*		23,703	$	213,564
Griffon Corp.		10,452		182,178
AAR Corp.		5,581		171,337
Benchmark Electronics, Inc.*		6,990		167,970
Gibraltar Industries, Inc.*		9,833		161,360
Universal Forest Products, Inc.		2,627		145,746
Olympic Steel, Inc.		10,757		144,789
Atlas Air Worldwide Holdings, Inc.*		3,121		134,265
RTI International Metals, Inc.*		3,730		133,944
Comfort Systems USA, Inc.		6,229		131,058
Sanmina Corp.*		5,295		128,086
Roadrunner Transportation Systems, Inc.*		5,026		127,007
Aegion Corp. — Class A*		6,471		116,802
EMCOR Group, Inc.		2,285		106,184
Briggs & Stratton Corp.		4,761		97,791
Hub Group, Inc. — Class A*		2,362		92,803
Plexus Corp.*		2,262		92,222
Tredegar Corp.		4,485		90,193
Fabrinet*		4,516		85,759
Hornbeck Offshore Services, Inc.*		4,493		84,513
Encore Wire Corp.		2,061		78,071
Celadon Group, Inc.		2,830		77,033
II-VI, Inc.*		3,972		73,323
National Presto Industries, Inc.		1,148		72,772
Kaman Corp.		1,592		67,548
General Cable Corp.		3,570		61,511
DXP Enterprises, Inc.*		1,154		50,880
LSB Industries, Inc.*		1,210		50,009
Astec Industries, Inc.		1,017		43,609
Powell Industries, Inc.		1,285		43,394
Tetra Tech, Inc.		1,540		36,991
AM Castle & Co.*,1		7,795		28,452
Total Industrial				3,291,164
CONSUMER, NON-CYCLICAL - 18.2%
Central Garden & Pet Co. — Class A*		20,600		218,772
Universal Corp.		4,533		213,776
Kelly Services, Inc. — Class A		10,854		189,295
Seneca Foods Corp. — Class A*		6,280		187,207
SpartanNash Co.		5,394		170,234
Monster Worldwide, Inc.*		26,467		167,801
Almost Family, Inc.*		3,748		167,574
PharMerica Corp.*		5,455		153,776
Viad Corp.		5,281		146,917
Kindred Healthcare, Inc.		6,120		145,595
Magellan Health, Inc.*		1,944		137,674
ABM Industries, Inc.		4,276		136,233
LHC Group, Inc.*		3,597		118,809
CDI Corp.		8,395		117,950
Insperity, Inc.		2,039		106,619
Brink’s Co.		3,785		104,580
Hanger, Inc.*		4,490		101,878
Invacare Corp.		5,027		97,574
TrueBlue, Inc.*		3,824		93,114
Andersons, Inc.		2,145		88,739
Heidrick & Struggles International, Inc.		2,373		58,328
Total Consumer, Non-cyclical				2,922,445
CONSUMER, CYCLICAL - 17.7%
Cash America International, Inc.		9,230		215,059
SkyWest, Inc.		13,803		201,662
Pep Boys-Manny Moe & Jack*		16,830		161,905
M/I Homes, Inc.*		6,773		161,468
ScanSource, Inc.*		3,350		136,178
Stage Stores, Inc.		5,790		132,708
EZCORP, Inc. — Class A*		14,350		131,016
Big 5 Sporting Goods Corp.		9,784		129,834
United Stationers, Inc.		2,894		118,625
Titan International, Inc.		11,704		109,549
Fred’s, Inc. — Class A		6,372		108,897
Sonic Automotive, Inc. — Class A		4,180		104,082
Superior Industries International, Inc.		5,214		98,701
Perry Ellis International, Inc.*		3,977		92,107
VOXX International Corp. — Class A*		9,317		85,344
Haverty Furniture Companies, Inc.		3,406		84,741
Biglari Holdings, Inc.*		201		83,234
Unifi, Inc.*		2,179		78,640
Arctic Cat, Inc.		2,160		78,451
Barnes & Noble, Inc.*		2,980		70,775
Ruby Tuesday, Inc.*		11,523		69,253
Marcus Corp.		3,204		68,213
Casey’s General Stores, Inc.		742		66,854
Callaway Golf Co.		6,298		60,020
Stein Mart, Inc.		4,781		59,523
Children’s Place, Inc.		796		51,095
Genesco, Inc.*		631		44,946
Movado Group, Inc.		1,280		36,506
Total Consumer, Cyclical				2,839,386
ENERGY - 14.3%
Pioneer Energy Services Corp.*		34,592		187,489
Basic Energy Services, Inc.*		25,793		178,745
Green Plains, Inc.		6,197		176,924
Northern Oil and Gas, Inc.*		17,941		138,325
Penn Virginia Corp.*,1		19,230		124,610
C&J Energy Services Ltd.*		9,945		110,688
TETRA Technologies, Inc.*		17,820		110,128
Cloud Peak Energy, Inc.*		17,668		102,828
Gulf Island Fabrication, Inc.		6,861		101,954
Matrix Service Co.*		5,140		90,258
ION Geophysical Corp.*		38,645		83,860
SEACOR Holdings, Inc.*		1,192		83,047
Stone Energy Corp.*		5,550		81,474
Swift Energy Co.*,1		35,855		77,447
Newpark Resources, Inc.*		7,607		69,300

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Tesco Corp.		5,936	$	67,492
CARBO Ceramics, Inc.1		2,204		67,244
PDC Energy, Inc.*		1,220		65,929
Exterran Holdings, Inc.		1,809		60,728
Gulfmark Offshore, Inc. — Class A		4,436		57,845
Rex Energy Corp.*,1		15,370		57,176
Geospace Technologies Corp.*		2,731		45,089
FutureFuel Corp.		3,691		37,907
Comstock Resources, Inc.1		9,640		34,415
Bristow Group, Inc.		615		33,487
Arch Coal, Inc.*,1		29,556		29,553
Paragon Offshore plc1		19,561		25,429
Total Energy				2,299,371
FINANCIAL - 11.6%
Meadowbrook Insurance Group, Inc.		27,431		233,163
Stewart Information Services Corp.		3,840		156,057
Employers Holdings, Inc.		5,370		144,936
United Fire Group, Inc.		4,401		139,820
Infinity Property & Casualty Corp.		1,364		111,916
Selective Insurance Group, Inc.		3,616		105,045
Navigators Group, Inc.*		1,243		96,755
Horace Mann Educators Corp.		2,675		91,485
OFG Bancorp		5,330		86,986
First BanCorp*		13,090		81,158
Calamos Asset Management, Inc. — Class A		5,998		80,673
Forestar Group, Inc.*		5,060		79,796
Astoria Financial Corp.		6,150		79,643
Susquehanna Bancshares, Inc.		4,682		64,190
Provident Financial Services, Inc.		3,028		56,472
Safety Insurance Group, Inc.		920		54,970
Wintrust Financial Corp.		994		47,394
Central Pacific Financial Corp.		1,660		38,130
Capstead Mortgage Corp.		3,214		37,829
ProAssurance Corp.		816		37,463
Old National Bancorp		2,441		34,638
Total Financial				1,858,519
BASIC MATERIALS - 6.4%
Kraton Performance Polymers, Inc.*		6,773		136,882
OM Group, Inc.		4,083		122,612
Zep, Inc.		7,169		122,088
Stepan Co.		2,780		115,815
A. Schulman, Inc.		2,288		110,282
Veritiv Corp.*		2,089		92,188
PH Glatfelter Co.		3,248		89,417
Materion Corp.		2,204		84,700
Kaiser Aluminum Corp.		985		75,737
American Vanguard Corp.		3,528		37,467
Koppers Holdings, Inc.		1,698		33,417
Total Basic Materials				1,020,605
TECHNOLOGY - 5.7%
Insight Enterprises, Inc.*		6,141		175,141
Ciber, Inc.*		36,391		149,931
SYNNEX Corp.		1,598		123,446
Digi International, Inc.*		10,329		103,083
ManTech International Corp. — Class A		3,010		102,159
CACI International, Inc. — Class A*		975		87,672
Engility Holdings, Inc.		2,366		71,075
Sykes Enterprises, Inc.*		2,490		61,877
Cohu, Inc.		3,993		43,683
Total Technology				918,067
COMMUNICATIONS - 4.2%
Liquidity Services, Inc.*,1		17,080		168,751
Harte-Hanks, Inc.		15,020		117,156
Scholastic Corp.		2,428		99,402
Blucora, Inc.*		6,250		85,375
Anixter International, Inc.*		1,110		84,504
Spok Holdings, Inc.		2,542		48,730
NETGEAR, Inc.*		1,203		39,554
Black Box Corp.		1,464		30,642
Total Communications				674,114
UTILITIES - 0.4%
Laclede Group, Inc.		682		34,932
Avista Corp.		1,020		34,864
Total Utilities				69,796
Total Common Stocks
(Cost $12,574,549)				15,893,467
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	81,857		81,857
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		12,510		12,510
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		10,041		10,041
Total Repurchase Agreements
(Cost $104,408)				104,408

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 3.0%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15	$	312,376	$	312,376
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		107,457		107,457
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		55,465		55,465
Total Securities Lending Collateral
(Cost $475,298)				475,298
Total Investments - 102.6%
(Cost $13,154,255)			$	16,473,173
Other Assets & Liabilities, net - (2.6)%				(424,619	)
Total Net Assets - 100.0%			$	16,048,554

*	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 March 31, 2015 — 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 ANNUAL REPORT | 55

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $457,313 of securities loaned (cost $12,574,549)	$	15,893,467
Repurchase agreements, at value (cost $579,706)		579,706
Total investments (cost $13,154,255)		16,473,173
Segregated cash with broker		6,947
Receivables:
Securities sold		343,009
Fund shares sold		76,170
Dividends		9,122
Securities lending income		1,289
Total assets		16,909,710
Liabilities:
Payable for:
Return of securities loaned		482,245
Fund shares redeemed		342,906
Management fees		11,149
Distribution and service fees		5,636
Transfer agent and administrative fees		3,716
Securities purchased		2,114
Portfolio accounting fees		1,486
Miscellaneous		11,904
Total liabilities		861,156
Commitments and contingent liabilities (Note 14)		—
Net assets	$	16,048,554
Net assets consist of:
Paid in capital	$	40,900,279
Undistributed net investment income		—
Accumulated net realized loss on investments		(28,170,643	)
Net unrealized appreciation on investments		3,318,918
Net assets	$	16,048,554
A-Class:
Net assets	$	1,592,052
Capital shares outstanding		61,682
Net asset value per share	$	25.81
Maximum offering price per share (Net asset value divided by 95.25%)	$	27.10
C-Class:
Net assets	$	3,082,191
Capital shares outstanding		135,331
Net asset value per share	$	22.78
H-Class:
Net assets	$	11,374,311
Capital shares outstanding		442,479
Net asset value per share	$	25.71

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $64)	$	262,242
Income from securities lending, net		6,422
Interest		27
Total investment income		268,691
Expenses:
Management fees		137,892
Transfer agent and administrative fees		45,964
Distribution and service fees:
A-Class		2,612
C-Class		30,589
H-Class		35,705
Portfolio accounting fees		18,385
Registration fees		15,538
Custodian fees		2,138
Trustees’ fees*		1,529
Line of credit fees		259
Miscellaneous		8,735
Total expenses		299,346
Net investment loss		(30,655	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,268,375
Net realized gain		2,268,375
Net change in unrealized appreciation (depreciation) on:
Investments		(1,503,522	)
Net change in unrealized appreciation (depreciation)		(1,503,522	)
Net realized and unrealized gain		764,853
Net increase in net assets resulting from operations	$	734,198

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

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(30,655	)	$	(127,130	)
Net realized gain on investments		2,268,375			4,060,418
Net change in unrealized appreciation (depreciation) on investments		(1,503,522	)		346,408
Net increase in net assets resulting from operations		734,198			4,279,696
Capital share transactions:
Proceeds from sale of shares
A-Class		3,277,688			1,058,772
C-Class		2,725,130			4,733,420
H-Class		108,245,422			217,271,980
Cost of shares redeemed
A-Class		(2,703,495	)		(1,936,024	)
C-Class		(4,064,150	)		(5,294,994	)
H-Class		(120,076,906	)		(228,428,263	)
Net decrease from capital share transactions		(12,596,311	)		(12,595,109	)
Net decrease in net assets		(11,862,113	)		(8,315,413	)
Net assets:
Beginning of year		27,910,667			36,226,080
End of year	$	16,048,554		$	27,910,667
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	—		$	(40,344	)
Capital share activity:
Shares sold
A-Class		133,032			47,370
C-Class		123,385			232,036
H-Class		4,385,027			9,393,903
Shares redeemed
A-Class		(110,967	)		(87,067	)
C-Class		(185,935	)		(258,641	)
H-Class		(4,818,402	)		(10,096,699	)
Net decrease in shares		(473,860	)		(769,098	)

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	25.66		$	19.55		$	17.07		$	17.42		$	19.60
Income (loss) from investment operations:
Net investment income (loss)a		(.03	)		(.09	)		(.01	)		(.12	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		.18			6.20			2.49			(.23	)		1.20
Total from investment operations		.15			6.11			2.48			(.35	)		1.07
Less distributions from:
Net realized gains		—			—			—			—			(3.25	)
Total distributions		—			—			—			—			(3.25	)
Net asset value, end of period	$	25.81		$	25.66		$	19.55		$	17.07		$	17.42
Total Returnb		0.58	%		31.25	%		14.53	%		(2.01	%)		6.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,592		$	1,016		$	1,551		$	961		$	8,845
Ratios to average net assets:
Net investment income (loss)		(0.10	%)		(0.39	%)		(0.08	%)		(0.71	%)		(0.73	%)
Total expenses		1.50	%		1.52	%		1.51	%		1.53	%		1.53	%
Portfolio turnover rate		579	%		658	%		655	%		744	%		692	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	22.81		$	17.51		$	15.40		$	15.85		$	18.27
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.22	)		(.13	)		(.20	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		.16			5.52			2.24			(.25	)		1.06
Total from investment operations		(.03	)		5.30			2.11			(.45	)		.83
Less distributions from:
Net realized gains		—			—			—			—			(3.25	)
Total distributions		—			—			—			—			(3.25	)
Net asset value, end of period	$	22.78		$	22.81		$	17.51		$	15.40		$	15.85
Total Returnb		(0.13	%)		30.27	%		13.70	%		(2.84	%)		6.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,082		$	4,514		$	3,932		$	1,955		$	2,243
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(1.10	%)		(0.84	%)		(1.39	%)		(1.37	%)
Total expenses		2.25	%		2.27	%		2.26	%		2.26	%		2.28	%
Portfolio turnover rate		579	%		658	%		655	%		744	%		692	%

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	25.55		$	19.47		$	17.00		$	17.38		$	19.57
Income (loss) from investment operations:
Net investment income (loss)a		(.01	)		(.06	)		(.06	)		(.11	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		.17			6.14			2.53			(.27	)		1.17
Total from investment operations		.16			6.08			2.47			(.38	)		1.06
Less distributions from:
Net realized gains		—			—			—			—			(3.25	)
Total distributions		—			—			—			—			(3.25	)
Net asset value, end of period	$	25.71		$	25.55		$	19.47		$	17.00		$	17.38
Total Returnb		0.63	%		31.23	%		14.53	%		(2.19	%)		6.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,374		$	22,380		$	30,743		$	24,298		$	15,980
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		(0.25	%)		(0.32	%)		(0.69	%)		(0.56	%)
Total expenses		1.50	%		1.53	%		1.51	%		1.49	%		1.54	%
Portfolio turnover rate		579	%		658	%		655	%		744	%		692	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX^® Europe 50 Index (the “underlying index”).

For the one-year period ended March 31, 2015, Europe 1.25x Strategy Fund maintained a daily correlation of over 98% to its benchmark of 125% of the daily price movement of the STOXX Europe 50 Index. Europe 1.25x Strategy Fund H-Class returned -10.36% while the STOXX Europe 50 Index returned -5.29% over the same period.

The sectors that contributed most to return of the underlying index were Health Care and Consumer Staples. The sectors detracting most from return were Energy and Financials.

The stocks that contributed most to performance of the underlying index were Novartis AG, Bayer AG, and Anheuser-Busch InBev S.A. Those that detracted most from performance of the underlying index were HSBC Holdings PLC, Total S.A., and Royal Dutch Shell PLC — Class A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year period ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

 

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

60 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Country	% of Common Stocks			Value
United Kingdom		34	%	$	1,673,638
Switzerland		23	%		1,127,761
Germany		16	%		785,204
France		12	%		604,980
Spain		6	%		275,268
Netherlands		3	%		148,184
Belgium		2	%		114,717
Other		4	%		185,155
Total Common Stocks		100	%	$	4,914,907

Cumulative Fund Performance*

Ten Largest Holdings (% of Total Net Assets)
Novartis AG ADR	2.6%
Nestle S.A. ADR	2.5%
Roche Holding AG ADR	2.0%
HSBC Holdings plc ADR	1.7%
Bayer AG ADR	1.3%
Sanofi ADR	1.2%
Total S.A. ADR	1.2%
BP plc ADR	1.2%
Royal Dutch Shell plc — Class A ADR	1.2%
GlaxoSmithKline plc ADR	1.1%
Top Ten Total	16.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	-10.33%	1.98%	-0.35%
A-Class Shares with sales charge†	-14.60%	0.99%	-0.83%
C-Class Shares	-10.94%	1.02%	-1.19%
C-Class Shares with CDSC‡	-11.83%	1.02%	-1.19%
H-Class Shares	-10.36%	1.78%	-0.43%
STOXX Europe 50 Index	-5.29%	4.22%	3.26%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 61

SCHEDULE OF INVESTMENTS	March 31, 2015
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 41.3%
CONSUMER, NON-CYCLICAL - 16.1%
Novartis AG ADR		3,130	$	308,650
Nestle S.A. ADR		3,938		296,218
Roche Holding AG ADR		6,859		235,812
Bayer AG ADR		1,010		151,768
Sanofi ADR		2,959		146,293
GlaxoSmithKline plc ADR		2,949		136,096
British American Tobacco plc ADR		1,136		117,883
Anheuser-Busch InBev N.V. ADR		941		114,717
AstraZeneca plc ADR		1,541		105,451
Diageo plc ADR		768		84,918
Unilever N.V. — Class Y		1,908		79,678
Reckitt Benckiser Group plc ADR		4,037		69,073
Unilever plc ADR		1,604		66,903
Total Consumer, Non-cyclical				1,913,460
FINANCIAL - 10.4%
HSBC Holdings plc ADR		4,680		199,322
Banco Santander S.A. ADR		17,128		127,604
Allianz SE ADR		5,562		96,807
BNP Paribas S.A. ADR		2,728		82,727
Prudential plc ADR		1,555		77,563
Banco Bilbao Vizcaya Argentaria S.A. ADR		7,583		76,057
Lloyds Banking Group plc ADR*		16,172		75,523
Barclays plc ADR		4,983		72,602
ING Groep N.V. ADR*		4,689		68,506
UBS AG*,1		3,450		64,431
AXA S.A. ADR		2,545		64,237
Zurich Insurance Group AG ADR		1,828		61,686
Deutsche Bank AG		1,578		54,804
Credit Suisse Group AG ADR		1,858		50,036
Standard Chartered plc		2,457		39,459
UBS Group AG*		1,172		21,998
Total Financial				1,233,362
ENERGY - 4.5%
Total S.A. ADR		2,890		143,517
BP plc ADR		3,657		143,025
Royal Dutch Shell plc — Class A ADR		2,372		141,490
Eni SpA ADR		1,642		56,830
BG Group plc ADR		4,116		50,853
Total Energy				535,715
COMMUNICATIONS - 2.6%
Vodafone Group plc ADR		3,233		105,654
Telefonica S.A. ADR		4,990		71,607
Deutsche Telekom AG ADR		3,793		69,165
BT Group plc ADR		992		64,649
Total Communications				311,075
BASIC MATERIALS - 2.4%
BASF SE ADR		1,118		111,202
Rio Tinto plc ADR		1,502		62,182
BHP Billiton Ltd. ADR		1,187		55,160
Air Liquide S.A. ADR		2,116		54,371
Total Basic Materials				282,915
INDUSTRIAL - 1.8%
Siemens AG ADR		962		104,088
ABB Ltd. ADR		2,819		59,678
Schneider Electric SE ADR		3,577		55,408
Total Industrial				219,174
CONSUMER, CYCLICAL - 1.4%
Daimler AG ADR		1,214		113,509
Cie Financiere Richemont S.A. ADR		6,410		51,248
Total Consumer, Cyclical				164,757
TECHNOLOGY - 0.7%
SAP SE ADR		1,162		83,862
UTILITIES - 0.5%
National Grid plc ADR		944		60,992
CONSUMER DISCRETIONARY - 0.5%
LVMH Moet Hennessy Louis Vuitton SE ADR		1,658		58,428
MATERIALS - 0.4%
Glencore plc ADR		6,041		51,166
Total Common Stocks
(Cost $4,329,177)				4,914,906
RIGHTS† - 0.0%
Telefonica SA
Expires 04/12/15		4,990		805
Total Foreign Rights - Spain
(Cost $728)				805
MUTUAL FUNDS† - 0.5%
Guggenheim Strategy Fund I2		2,556		63,634
Total Mutual Funds
(Cost $63,507)				63,634

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
EUROPE 1.25x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,3 - 50.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	4,704,719	$	4,704,719
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		718,981		718,981
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		577,100		577,100
Total Repurchase Agreements
(Cost $6,000,800)				6,000,800
SECURITIES LENDING COLLATERAL††,4 - 0.5%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		36,630		36,630
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		12,601		12,601
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		6,504		6,504
Total Securities Lending Collateral
(Cost $55,735)				55,735
Total Investments - 92.7%
(Cost $10,449,947)			$	11,035,880
Other Assets & Liabilities, net - 7.3%				872,028
Total Net Assets - 100.0%			$	11,907,908
	Contracts		Unrealized Loss
CURRENCY FUTURES CONTRACTS PURCHASED†
June 2015 Euro FX Futures Contracts (Aggregate Value of Contracts $9,953,925)		74	$	(69,326	)
EQUITY FUTURES CONTRACTS PURCHASED††
June 2015 STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $9,782,607)		269	$	(91,708	)

*	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 March 31, 2015 — 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.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $54,160 of securities loaned (cost $4,393,412)	$	4,979,345
Repurchase agreements, at value (cost $6,056,535)		6,056,535
Total investments (cost $10,449,947)		11,035,880
Segregated cash with broker		1,046,603
Cash		68,232
Receivables:
Fund shares sold		232,096
Dividends		57,769
Foreign taxes reclaim		10,690
Swap settlement		2,262
Securities lending income		131
Interest		5
Total assets		12,453,668
Liabilities:
Foreign currency, at value (cost $66,152)		65,322
Payable for:
Fund shares redeemed		229,820
Variation margin		168,832
Return of securities loaned		56,550
Management fees		9,090
Distribution and service fees		3,053
Transfer agent and administrative fees		2,525
Portfolio accounting fees		1,010
Securities purchased		495
Miscellaneous		9,063
Total liabilities		545,760
Commitments and contingent liabilities (Note 14)		—
Net assets	$	11,907,908
Net assets consist of:
Paid in capital	$	23,222,085
Undistributed net investment income		63,417
Accumulated net realized loss on investments		(11,803,325	)
Net unrealized appreciation on investments		425,731
Net assets	$	11,907,908
A-Class:
Net assets	$	1,165,041
Capital shares outstanding		74,908
Net asset value per share	$	15.55
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.33
C-Class:
Net assets	$	1,023,447
Capital shares outstanding		74,312
Net asset value per share	$	13.77
		��
H-Class:
Net assets	$	9,719,420
Capital shares outstanding		630,436
Net asset value per share	$	15.42

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $14,824)	$	279,636
Income from securities lending, net		961
Interest		609
Total investment income		281,206
Expenses:
Management fees		110,994
Transfer agent and administrative fees		30,832
Distribution and service fees:
A-Class		3,532
C-Class		8,206
H-Class		25,248
Portfolio accounting fees		12,332
Registration fees		11,340
Custodian fees		1,439
Trustees’ fees*		1,105
Line of credit fees		131
Tax expense		85
Miscellaneous		13,172
Total expenses		218,416
Net investment income		62,790
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		182,168
Swap agreements		4,023
Futures contracts		14,597
Foreign currency		627
Net realized gain		201,415
Net change in unrealized appreciation (depreciation) on:
Investments		(741,935	)
Futures contracts		(325,312	)
Foreign currency		737
Net change in unrealized appreciation (depreciation)		(1,066,510	)
Net realized and unrealized loss		(865,095	)
Net decrease in net assets resulting from operations	$	(802,305	)

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

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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	62,790		$	62,852
Net realized gain on investments		201,415			1,358,485
Net change in unrealized appreciation (depreciation) on investments		(1,066,510	)		1,364,932
Net increase (decrease) in net assets resulting from operations		(802,305	)		2,786,269
Distributions to shareholders from:
Net investment income
A-Class		(3,176	)		—
C-Class		(1,621	)		—
H-Class		(21,638	)		—
Total distributions to shareholders		(26,435	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		10,994,698			52,743,507
C-Class		18,931,297			7,218,044
H-Class		200,800,044			207,864,838
Distributions reinvested
A-Class		2,063			—
C-Class		1,530			—
H-Class		21,551			—
Cost of shares redeemed
A-Class		(12,260,495	)		(54,374,701	)
C-Class		(18,280,475	)		(7,224,756	)
H-Class		(202,112,879	)		(209,443,547	)
Net decrease from capital share transactions		(1,902,666	)		(3,216,615	)
Net decrease in net assets		(2,731,406	)		(430,346	)
Net assets:
Beginning of year		14,639,314			15,069,660
End of year	$	11,907,908		$	14,639,314
Undistributed net investment income at end of year	$	63,417		$	26,435
Capital share activity:
Shares sold
A-Class		706,168			3,372,060
C-Class		1,263,133			497,359
H-Class		12,265,910			13,214,764
Shares issued from reinvestment of distributions
A-Class		126			—
C-Class		105			—
H-Class		1,328			—
Shares redeemed
A-Class		(778,025	)		(3,501,903	)
C-Class		(1,223,396	)		(494,056	)
H-Class		(12,306,127	)		(13,302,797	)
Net decrease in shares		(70,778	)		(214,573	)

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	17.40		$	14.16		$	12.57		$	14.06		$	14.18
Income (loss) from investment operations:
Net investment income (loss)a		.05			.16			(.03	)		.10			.08
Net gain (loss) on investments (realized and unrealized)		(1.85	)		3.08			1.65			(1.59	)		(.20	)
Total from investment operations		(1.80	)		3.24			1.62			(1.49	)		(.12	)
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			—
Total distributions		(.05	)		—			(.03	)		—			—
Net asset value, end of period	$	15.55		$	17.40		$	14.16		$	12.57		$	14.06
Total Returnb		(10.33	%)		22.88	%		12.92	%		(10.60	%)		(0.85	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,165		$	2,551		$	3,916		$	694		$	455
Ratios to average net assets:
Net investment income (loss)		0.33	%		1.00	%		(0.23	%)		0.77	%		0.66	%
Total expensesc		1.72	%		1.72	%		1.67	%		1.67	%		1.69	%
Portfolio turnover rate		608	%		654	%		903	%		318	%		515	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	15.52		$	12.89		$	11.53		$	12.97		$	13.17
Income (loss) from investment operations:
Net investment income (loss)a		(.08	)		(.07	)		(.10	)		—	d		.03
Net gain (loss) on investments (realized and unrealized)		(1.62	)		2.70			1.49			(1.44	)		(.23	)
Total from investment operations		(1.70	)		2.63			1.39			(1.44	)		(.20	)
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			—
Total distributions		(.05	)		—			(.03	)		—			—
Net asset value, end of period	$	13.77		$	15.52		$	12.89		$	11.53		$	12.97
Total Returnc		(10.94	%)		20.40	%		12.09	%		(11.10	%)		(1.52	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,023		$	535		$	402		$	439		$	638
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(0.48	%)		(0.83	%)		0.03	%		0.22	%
Total expensesd		2.48	%		2.47	%		2.42	%		2.43	%		2.43	%
Portfolio turnover rate		608	%		654	%		903	%		318	%		515	%

66 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	17.26		$	14.20		$	12.59		$	14.06		$	14.20
Income (loss) from investment operations:
Net investment income (loss)a		.10			.03			(.02	)		.16			.09
Net gain (loss) on investments (realized and unrealized)		(1.89	)		3.03			1.66			(1.63	)		(.23	)
Total from investment operations		(1.79	)		3.06			1.64			(1.47	)		(.14	)
Less distributions from:
Net investment income		(.05	)		—			(.03	)		—			—
Total distributions		(.05	)		—			(.03	)		—			—
Net asset value, end of period	$	15.42		$	17.26		$	14.20		$	12.59		$	14.06
Total Returnb		(10.36	%)		21.55	%		13.06	%		(10.46	%)		(0.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,719		$	11,553		$	10,752		$	7,759		$	23,238
Ratios to average net assets:
Net investment income (loss)		0.62	%		0.19	%		(0.18	%)		1.22	%		0.70	%
Total expensesc		1.72	%		1.71	%		1.67	%		1.68	%		1.69	%
Portfolio turnover rate		608	%		654	%		903	%		318	%		515	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net investment income is less than $0.01 per share.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

For the one-year period ended March 31, 2015, Japan 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the fair value of the Nikkei-225 Stock Average Index. Japan 2x Strategy Fund H-Class returned 20.64%, while the Nikkei-225 Stock Average Index returned 11.30% over the same time period.

The sectors that contributed most to performance of the underlying index were Information Technology and Industrials. Telecommunications Services detracted most from performance, followed by Energy.

Stocks that contributed most to return of the underlying index were Fanuc Corp., TDK Corp., and Eisai Co Ltd. Those that detracted most from performance of the underlying index were Yokogawa Electric Corp., JGC Corp. and SoftBank Corp.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year period ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

68 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Cumulative Fund Performance*

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	8.0%
Total	8.0%
“Largest Holding” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (02/22/08)
A-Class Shares	20.61%	7.15%	-0.98%
A-Class Shares with sales charge†	14.90%	6.11%	-1.66%
C-Class Shares	20.23%	6.49%	-1.63%
C-Class Shares with CDSC‡	19.23%	6.49%	-1.63%
H-Class Shares	20.64%	7.25%	-0.93%
Nikkei-225 Stock Average Index	11.30%	6.17%	3.39%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 69

SCHEDULE OF INVESTMENTS	March 31, 2015
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 8.0%
Guggenheim Strategy Fund I1		56,666	$	1,410,987
Total Mutual Funds
(Cost $1,408,156)				1,410,987
	Face Amount
REPURCHASE AGREEMENTS††,2 - 91.5%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	12,646,676		12,646,676
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		1,932,681		1,932,681
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		1,551,294		1,551,294
Total Repurchase Agreements
(Cost $16,130,651)				16,130,651
Total Investments - 99.5%
(Cost $17,538,807)			$	17,541,638
Other Assets & Liabilities, net - 0.5%				84,016
Total Net Assets - 100.0%			$	17,625,654

	Contracts		Unrealized Gain (Loss)
CURRENCY FUTURES CONTRACTS PURCHASED†
June 2015 Japanese Yen Futures Contracts (Aggregate Value of Contracts $35,261,850)		338	$	76,588
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 Nikkei-225 (CME) Index Futures Contracts (Aggregate Value of Contracts $35,291,550)		366	$	(63,016	)

†	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.

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $1,408,156)	$	1,410,987
Repurchase agreements, at value (cost $16,130,651)		16,130,651
Total investments (cost $17,538,807)		17,541,638
Segregated cash with broker		1,132,245
Receivables:
Fund shares sold		374,550
Swap settlement		2,746
Dividends		1,531
Interest		14
Total assets		19,052,724
Liabilities:
Payable for:
Fund shares redeemed		831,017
Variation margin		579,781
Management fees		5,156
Distribution and service fees		1,858
Transfer agent and administrative fees		1,719
Securities purchased		1,531
Portfolio accounting fees		688
Miscellaneous		5,320
Total liabilities		1,427,070
Commitments and contingent liabilities (Note 14)		—
Net assets	$	17,625,654
Net assets consist of:
Paid in capital	$	19,466,389
Undistributed net investment income		—
Accumulated net realized loss on investments		(1,857,138	)
Net unrealized appreciation on investments		16,403
Net assets	$	17,625,654
A-Class:
Net assets	$	446,696
Capital shares outstanding		19,183
Net asset value per share	$	23.29
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.45
C-Class:
Net assets	$	317,145
Capital shares outstanding		14,267
Net asset value per share	$	22.23
H-Class:
Net assets	$	16,861,813
Capital shares outstanding		721,228
Net asset value per share	$	23.38

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	12,631
Interest		896
Total investment income		13,527
Expenses:
Management fees		39,214
Transfer agent and administrative fees		13,071
Distribution and service fees:
A-Class		2,713
C-Class		1,702
H-Class		9,933
Portfolio accounting fees		5,229
Custodian fees		609
Trustees’ fees*		389
Miscellaneous		8,916
Total expenses		81,776
Net investment loss		(68,249	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,476	)
Swap agreements		4,886
Futures contracts		(181,931	)
Net realized loss		(181,521	)
Net change in unrealized appreciation (depreciation) on:
Investments		2,831
Futures contracts		(252,230	)
Net change in unrealized appreciation (depreciation)		(249,399	)
Net realized and unrealized loss		(430,920	)
Net decrease in net assets resulting from operations	$	(499,169	)

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

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(68,249	)	$	(137,800	)
Net realized gain (loss) on investments		(181,521	)		1,292,015
Net change in unrealized appreciation (depreciation) on investments		(249,399	)		(1,252,929	)
Net decrease in net assets resulting from operations		(499,169	)		(98,714	)
Capital share transactions:
Proceeds from sale of shares
A-Class		14,492,697			8,428,575
C-Class		10,475,739			9,557,083
H-Class		76,998,182			130,777,601
Cost of shares redeemed
A-Class		(14,473,442	)		(10,200,315	)
C-Class		(10,254,244	)		(9,548,823	)
H-Class		(62,946,467	)		(136,373,860	)
Net increase (decrease) from capital share transactions		14,292,465			(7,359,739	)
Net increase (decrease) in net assets		13,793,296			(7,458,453	)
Net assets:
Beginning of year		3,832,358			11,290,811
End of year	$	17,625,654		$	3,832,358
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	—		$	(21,490	)
Capital share activity:
Shares sold
A-Class		736,387			414,164
C-Class		545,198			492,346
H-Class		3,746,308			6,516,305
Shares redeemed
A-Class		(749,545	)		(498,277	)
C-Class		(536,530	)		(501,406	)
H-Class		(3,185,268	)		(6,873,237	)
Net increase (decrease) in shares		556,550			(450,105	)

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	19.31		$	17.39		$	15.45		$	14.95		$	16.49
Income (loss) from investment operations:
Net investment income (loss)a		(.25	)		(.31	)		(.20	)		(.22	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		4.23			2.23			2.14			.72			(1.30	)
Total from investment operations		3.98			1.92			1.94			.50			(1.54	)
Net asset value, end of period	$	23.29		$	19.31		$	17.39		$	15.45		$	14.95
Total Returnb		20.61	%		11.04	%		12.56	%		3.34	%		(9.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	447		$	624		$	2,025		$	1,428		$	5,931
Ratios to average net assets:
Net investment income (loss)		(1.27	%)		(1.50	%)		(1.40	%)		(1.49	%)		(1.45	%)
Total expensesc		1.54	%		1.52	%		1.51	%		1.51	%		1.55	%
Portfolio turnover rate		405	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	18.49		$	16.76		$	14.99		$	14.60		$	16.23
Income (loss) from investment operations:
Net investment income (loss)a		(.39	)		(.43	)		(.29	)		(.31	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		4.13			2.16			2.06			.70			(1.32	)
Total from investment operations		3.74			1.73			1.77			.39			(1.63	)
Net asset value, end of period	$	22.23		$	18.49		$	16.76		$	14.99		$	14.60
Total Returnb		20.23	%		10.32	%		11.81	%		2.67	%		(10.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	317		$	104		$	246		$	140		$	189
Ratios to average net assets:
Net investment income (loss)		(2.04	%)		(2.25	%)		(2.15	%)		(2.23	%)		(2.18	%)
Total expensesc		2.30	%		2.27	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate		405	%		—			—			—			—

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	19.38		$	17.44		$	15.49		$	14.98		$	16.48
Income (loss) from investment operations:
Net investment income (loss)a		(.26	)		(.30	)		(.20	)		(.22	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		4.26			2.24			2.15			.73			(1.27	)
Total from investment operations		4.00			1.94			1.95			.51			(1.50	)
Net asset value, end of period	$	23.38		$	19.38		$	17.44		$	15.49		$	14.98
Total Returnb		20.64	%		11.12	%		12.59	%		3.40	%		(9.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,862		$	3,104		$	9,020		$	4,574		$	5,356
Ratios to average net assets:
Net investment income (loss)		(1.28	%)		(1.50	%)		(1.40	%)		(1.48	%)		(1.44	%)
Total expensesc		1.54	%		1.52	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		405	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

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.

For the one-year period ended March 31, 2015, Strengthening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the U.S. Dollar Index. Strengthening Dollar 2x Strategy Fund H-Class returned 45.33%, compared with a return of 22.80% for its benchmark, the U.S. Dollar Index.

The currencies that contributed most to performance of the underlying index for the period were the euro and the Japanese yen. No currency detracted from performance of the underlying index for the period, but the Canadian dollar and Swedish krona were the currencies that contributed least.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year period ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

THE RYDEX FUNDS ANNUAL REPORT | 75

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	14.9%
Guggenheim Strategy Fund II	14.3%
Total	29.2%
“Largest Holdings” exclude any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (05/25/05)
A-Class Shares	45.33%	2.56%	-0.15%
A-Class Shares with sales charge†	38.44%	1.56%	-0.64%
C-Class Shares	44.24%	1.77%	-0.85%
C-Class Shares with CDSC‡	43.24%	1.77%	-0.85%
H-Class Shares	45.33%	2.56%	-0.18%
U.S. Dollar Index	22.80%	3.94%	1.33%

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

76 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 29.2%
Guggenheim Strategy Fund I1		1,064,184	$	26,498,191
Guggenheim Strategy Fund II2		1,016,998		25,333,425
Total Mutual Funds
(Cost $51,761,785)				51,831,616
	Face Amount
REPURCHASE AGREEMENTS††,3 - 57.6%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	80,270,830		80,270,830
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		12,267,087		12,267,087
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		9,846,354		9,846,354
Total Repurchase Agreements
(Cost $102,384,271)				102,384,271
Total Investments - 86.8%
(Cost $154,146,056)			$	154,215,887
Other Assets & Liabilities, net - 13.2%				23,482,650
Total Net Assets - 100.0%			$	177,698,537

	Contracts		Unrealized Gain (Loss)
CURRENCY FUTURES CONTRACTS PURCHASED†
June 2015 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $301,246,560)		3,054	$	(3,152,360	)
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS††
Goldman Sachs International May 2015 U.S. Dollar Index Swap, Terminating 05/15/154 (Notional Value $54,204,217)		550,034	$	1,964,456

†	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	Affiliated issuer — See Note 12.
3	Repurchase Agreements — See Note 5.
4	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 77

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $26,462,002)	$	26,498,191
Investments in affiliated issuers, at value (cost $25,299,783)		25,333,425
Repurchase agreements, at value (cost $102,384,271)		102,384,271
Total investments (cost $154,146,056)		154,215,887
Segregated cash with broker		9,195,111
Unrealized appreciation on swap agreements		1,964,456
Receivables:
Fund shares sold		11,710,529
Variation margin		1,001,780
Swap settlement		117,595
Dividends		62,787
Interest		92
Total assets		178,268,237
Liabilities:
Payable for:
Fund shares redeemed		161,889
Management fees		142,969
Securities purchased		62,868
Distribution and service fees		42,097
Transfer agent and administrative fees		39,714
Portfolio accounting fees		15,864
Licensing fees		45,567
Miscellaneous		58,732
Total liabilities		569,700
Commitments and contingent liabilities (Note 14)		—
Net assets	$	177,698,537
Net assets consist of:
Paid in capital	$	171,100,785
Accumulated net investment loss		(455,964	)
Accumulated net realized gain on investments		8,171,789
Net unrealized depreciation on investments		(1,118,073	)
Net assets	$	177,698,537
A-Class:
Net assets	$	15,764,771
Capital shares outstanding		282,799
Net asset value per share	$	55.75
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.53
C-Class:
Net assets	$	3,835,880
Capital shares outstanding		74,413
Net asset value per share	$	51.55
H-Class:
Net assets	$	158,097,886
Capital shares outstanding		2,847,020
Net asset value per share	$	55.53

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends from securities of unaffiliated issuers	$	230,106
Dividends from securities of affiliated issuers		191,684
Interest		11,496
Total investment income		433,286
Expenses:
Management fees		797,847
Transfer agent and administrative fees		221,624
Distribution and service fees:
A-Class		30,279
C-Class		27,171
H-Class		184,552
Portfolio accounting fees		88,627
Custodian fees		10,311
Trustees’ fees*		3,140
Miscellaneous		148,762
Total expenses		1,512,313
Net investment loss		(1,079,027	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(43,221	)
Investments in affiliated issuers		(41,866	)
Swap agreements		6,431,435
Futures contracts		35,932,141
Net realized gain		42,278,489
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		36,189
Investments in affiliated issuers		33,642
Swap agreements		1,982,005
Futures contracts		(3,325,685	)
Net change in unrealized appreciation (depreciation)		(1,273,849	)
Net realized and unrealized gain		41,004,640
Net increase in net assets resulting from operations	$	39,925,613

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

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,079,027	)	$	(387,321	)
Net realized gain (loss) on investments		42,278,489			(3,258,413	)
Net change in unrealized appreciation (depreciation) on investments		(1,273,849	)		(133,507	)
Net increase (decrease) in net assets resulting from operations		39,925,613			(3,779,241	)
Capital share transactions:
Proceeds from sale of shares
A-Class		67,660,509			32,997,383
C-Class		13,335,647			13,018,069
H-Class		803,295,701			97,506,138
Cost of shares redeemed
A-Class		(61,334,808	)		(38,741,873	)
C-Class		(12,659,892	)		(14,153,109	)
H-Class		(687,933,691	)		(97,374,129	)
Net increase (decrease) from capital share transactions		122,363,466			(6,747,521	)
Net increase (decrease) in net assets		162,289,079			(10,526,762	)
Net assets:
Beginning of year		15,409,458			25,936,220
End of year	$	177,698,537		$	15,409,458
Accumulated net investment loss at end of year	$	(455,964	)	$	(99,577	)
Capital share activity:
Shares sold
A-Class		1,496,935			815,939	*
C-Class		313,093			341,309	*
H-Class		17,612,624			2,436,518	*
Shares redeemed
A-Class		(1,306,603	)		(967,356	)*
C-Class		(297,401	)		(370,508	)*
H-Class		(15,021,156	)		(2,462,181	)*
Net increase (decrease) in shares		2,797,492			(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 ANNUAL REPORT | 79

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	38.36		$	42.75		$	40.35		$	40.39		$	49.15
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		(.69	)		(.63	)		(.66	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		17.95			(3.70	)		3.03			.62			(8.01	)
Total from investment operations		17.39			(4.39	)		2.40			(.04	)		(8.76	)
Net asset value, end of period	$	55.75		$	38.36		$	42.75		$	40.35		$	40.39
Total Returnb		45.33	%		(10.27	%)		5.95	%		(0.07	%)		(17.83	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,765		$	3,547		$	10,427		$	6,875		$	6,115
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)
Total expensesc		1.68	%		1.74	%		1.66	%		1.68	%		1.71	%
Portfolio turnover rate		299	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	35.74		$	40.15		$	38.14		$	38.48		$	47.21
Income (loss) from investment operations:
Net investment income (loss)a		(.81	)		(.94	)		(.90	)		(.90	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		16.62			(3.47	)		2.91			.56			(7.68	)
Total from investment operations		15.81			(4.41	)		2.01			(.34	)		(8.73	)
Net asset value, end of period	$	51.55		$	35.74		$	40.15		$	38.14		$	38.48
Total Returnb		44.24	%		(10.96	%)		5.27	%		(0.94	%)		(18.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,836		$	2,099		$	3,530		$	4,091		$	4,028
Ratios to average net assets:
Net investment income (loss)		(1.96	%)		(2.48	%)		(2.29	%)		(2.36	%)		(2.29	%)
Total expensesc		2.44	%		2.50	%		2.42	%		2.44	%		2.46	%
Portfolio turnover rate		299	%		—			—			—			—

80 | THE RYDEX FUNDS 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	Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d
Per Share Data
Net asset value, beginning of period	$	38.21		$	42.60		$	40.17		$	40.20		$	48.92
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		(.69	)		(.63	)		(.66	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		17.88			(3.70	)		3.06			.63			(7.97	)
Total from investment operations		17.32			(4.39	)		2.43			(.03	)		(8.72	)
Net asset value, end of period	$	55.53		$	38.21		$	42.60		$	40.17		$	40.20
Total Returnb		45.33	%		(10.31	%)		6.05	%		(0.07	%)		(17.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	158,098		$	9,764		$	11,979		$	21,982		$	20,733
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)
Total expensesc		1.68	%		1.74	%		1.66	%		1.69	%		1.72	%
Portfolio turnover rate		299	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 13 in Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, Weakening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the U.S. Dollar Index. Weakening Dollar 2x Strategy Fund H-Class returned -33.99%, compared with a return of 22.80% for its benchmark, the U.S. Dollar Index.

The currencies that contributed most to performance of the underlying index for the period were the euro and the Japanese yen. No currency detracted from performance of the underlying index for the period, but the Canadian dollar and Swedish krona were the currencies that contributed least.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

82 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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.

Cumulative Fund Performance*

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	15.7%
Guggenheim Strategy Fund I	15.4%
Total	31.1%
“Largest Holdings” exclude any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	Since Inception (05/25/05)
A-Class Shares	-34.04%	-8.11%	-3.50%
A-Class Shares with sales charge†	-37.17%	-9.00%	-3.98%
C-Class Shares	-34.52%	-8.79%	-4.23%
C-Class Shares with CDSC‡	-35.18%	-8.79%	-4.23%
H-Class Shares	-33.99%	-8.10%	-3.51%
U.S. Dollar Index	22.80%	3.94%	1.33%

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

THE RYDEX FUNDS ANNUAL REPORT | 83

SCHEDULE OF INVESTMENTS	March 31, 2015
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 31.1%
Guggenheim Strategy Fund II1		27,227	$	678,219
Guggenheim Strategy Fund I1		26,738		665,787
Total Mutual Funds
(Cost $1,343,385)				1,344,006
	Face Amount
REPURCHASE AGREEMENTS††,2 - 95.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	3,230,336		3,230,336
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		493,664		493,664
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		396,247		396,247
Total Repurchase Agreements
(Cost $4,120,247)				4,120,247
Total Investments - 126.4%
(Cost $5,463,632)			$	5,464,253
Other Assets & Liabilities, net - (26.4)%				(1,142,697	)
Total Net Assets - 100.0%			$	4,321,556

	Contracts		Unrealized Gain
CURRENCY FUTURES CONTRACTS SOLD SHORT†
June 2015 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $7,989,840)		81	$	52,612
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International May 2015 U.S. Dollar Index Swap, Terminating 05/15/153 (Notional Value $677,377)		6,874	$	6,899

†	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	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $1,343,385)	$	1,344,006
Repurchase agreements, at value (cost $4,120,247)		4,120,247
Total investments (cost $5,463,632)		5,464,253
Segregated cash with broker		381,914
Unrealized appreciation on swap agreements		6,899
Receivables:
Fund shares sold		36,465
Dividends		1,637
Interest		4
Total assets		5,891,172
Liabilities:
Payable for:
Fund shares redeemed		1,324,698
Swap settlement		199,766
Variation margin		30,864
Management fees		3,319
Securities purchased		1,637
Distribution and service fees		1,025
Transfer agent and administrative fees		922
Portfolio accounting fees		369
Miscellaneous		7,016
Total liabilities		1,569,616
Commitments and contingent liabilities (Note 14)		—
Net assets	$	4,321,556
Net assets consist of:
Paid in capital	$	22,069,349
Undistributed net investment income		1
Accumulated net realized loss on investments		(17,807,926	)
Net unrealized appreciation on investments		60,132
Net assets	$	4,321,556
A-Class:
Net assets	$	508,314
Capital shares outstanding		43,143
Net asset value per share	$	11.78
Maximum offering price per share (Net asset value divided by 95.25%)	$	12.37
C-Class:
Net assets	$	162,578
Capital shares outstanding		15,035
Net asset value per share	$	10.81
H-Class:
Net assets	$	3,650,664
Capital shares outstanding		310,287
Net asset value per share	$	11.77

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	33,624
Interest		677
Total investment income		34,301
Expenses:
Management fees		61,980
Transfer agent and administrative fees		17,217
Distribution and service fees:
A-Class		2,863
C-Class		5,618
H-Class		12,949
Portfolio accounting fees		6,887
Registration fees		6,269
Custodian fees		804
Trustees’ fees*		637
Miscellaneous		6,243
Total expenses		121,467
Net investment loss		(87,166	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(10,240	)
Swap agreements		(643,293	)
Futures contracts		(1,977,311	)
Net realized loss		(2,630,844	)
Net change in unrealized appreciation (depreciation) on:
Investments		621
Swap agreements		(8,930	)
Futures contracts		118,925
Net change in unrealized appreciation (depreciation)		110,616
Net realized and unrealized loss		(2,520,228	)
Net decrease in net assets resulting from operations	$	(2,607,394	)

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

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(87,166	)	$	(188,856	)
Net realized gain (loss) on investments		(2,630,844	)		175,390
Net change in unrealized appreciation (depreciation) on investments		110,616			64,739
Net increase (decrease) in net assets resulting from operations		(2,607,394	)		51,273
Capital share transactions:
Proceeds from sale of shares
A-Class		13,033,004			24,041,632
C-Class		1,510,966			6,428,661
H-Class		51,409,264			31,158,919
Cost of shares redeemed
A-Class		(13,313,243	)		(24,071,521	)
C-Class		(1,961,174	)		(7,316,759	)
H-Class		(51,148,755	)		(35,984,350	)
Net decrease from capital share transactions		(469,938	)		(5,743,418	)
Net decrease in net assets		(3,077,332	)		(5,692,145	)
Net assets:
Beginning of year		7,398,888			13,091,033
End of year	$	4,321,556		$	7,398,888
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	1		$	(44,928	)
Capital share activity:
Shares sold
A-Class		799,412			1,367,080
C-Class		119,140			398,681
H-Class		3,382,831			1,777,634
Shares redeemed
A-Class		(819,501	)		(1,383,231	)
C-Class		(153,809	)		(455,811	)
H-Class		(3,378,114	)		(2,066,133	)
Net decrease in shares		(50,041	)		(361,780	)

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

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	17.86		$	16.95		$	18.95		$	20.34		$	17.98
Income (loss) from investment operations:
Net investment income (loss)a		(.20	)		(.30	)		(.28	)		(.33	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(5.88	)		1.21			(1.72	)		(1.06	)		2.64
Total from investment operations		(6.08	)		.91			(2.00	)		(1.39	)		2.36
Net asset value, end of period	$	11.78		$	17.86		$	16.95		$	18.95		$	20.34
Total Returnb		(34.04	%)		5.37	%		(10.55	%)		(6.83	%)		13.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	508		$	1,129		$	1,346		$	2,881		$	5,576
Ratios to average net assets:
Net investment income (loss)		(1.23	%)		(1.73	%)		(1.53	%)		(1.62	%)		(1.54	%)
Total expensesc		1.70	%		1.75	%		1.65	%		1.70	%		1.71	%
Portfolio turnover rate		219	%		—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	16.51		$	15.79		$	17.79		$	19.23		$	17.12
Income (loss) from investment operations:
Net investment income (loss)a		(.29	)		(.40	)		(.38	)		(.44	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		(5.41	)		1.12			(1.62	)		(1.00	)		2.50
Total from investment operations		(5.70	)		.72			(2.00	)		(1.44	)		2.11
Net asset value, end of period	$	10.81		$	16.51		$	15.79		$	17.79		$	19.23
Total Returnb		(34.52	%)		4.56	%		(11.24	%)		(7.49	%)		12.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	163		$	821		$	1,687		$	2,826		$	3,963
Ratios to average net assets:
Net investment income (loss)		(1.94	%)		(2.49	%)		(2.27	%)		(2.36	%)		(2.29	%)
Total expensesc		2.46	%		2.52	%		2.39	%		2.44	%		2.46	%
Portfolio turnover rate		219	%		—			—			—			—

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WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	17.83		$	16.93		$	18.93		$	20.32		$	17.96
Income (loss) from investment operations:
Net investment income (loss)a		(.19	)		(.30	)		(.27	)		(.32	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(5.87	)		1.20			(1.73	)		(1.07	)		2.64
Total from investment operations		(6.06	)		.90			(2.00	)		(1.39	)		2.36
Net asset value, end of period	$	11.77		$	17.83		$	16.93		$	18.93		$	20.32
Total Returnb		(33.99	%)		5.32	%		(10.57	%)		(6.84	%)		13.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,651		$	5,449		$	10,058		$	13,551		$	23,432
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(1.74	%)		(1.52	%)		(1.61	%)		(1.54	%)
Total expensesc		1.70	%		1.76	%		1.64	%		1.69	%		1.71	%
Portfolio turnover rate		219	%		—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.

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

NOTES TO FINANCIAL STATEMENTS

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 March 31, 2015, the Trust consisted of fifty-two 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 Funds operate as investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities 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 each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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 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.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security).

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. 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

90 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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. 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 in securities 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. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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, their 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.

THE RYDEX FUNDS ANNUAL REPORT | 91

NOTES TO FINANCIAL STATEMENTS (continued)

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 segregated cash with broker 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 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.

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 their 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.

92 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (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.

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. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The 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 a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2015, GFD retained sales charges of $360,571 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the inputs used to value the Funds’ investments at March 31, 2015:

	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	$	151,604,064	$	—	$	1,304,212	$	—	$	—	$	152,908,276
S&P 500® Pure Value Fund		71,141,693		—		2,466,330		—		—		73,608,023
S&P MidCap 400® Pure Growth Fund		191,119,547		—		636,145		—		—		191,755,692
S&P MidCap 400® Pure Value Fund		13,829,899		—		526,982		—		—		14,356,881
S&P SmallCap 600® Pure Growth Fund		58,773,047		—		2,029,724		—		—		60,802,771
S&P SmallCap 600® Pure Value Fund		15,893,467		—		579,706		—		—		16,473,173
Europe 1.25x Strategy Fund		4,979,345		—		6,056,535		—		—		11,035,880
Japan 2x Strategy Fund		1,410,987		76,588		16,130,651		—		—		17,618,226
Strengthening Dollar 2x Strategy Fund		51,831,616		—		102,384,271		1,964,456		—		156,180,343
Weakening Dollar 2x Strategy Fund		1,344,006		52,612		4,120,247		6,899		—		5,523,764
Liabilities
S&P SmallCap 600® Pure Growth Fund	$	29,384	$	—	$	—	$	—	$	—	$	29,384
Europe 1.25x Strategy Fund		—		69,326		—		91,708		—		161,034
Japan 2x Strategy Fund		—		63,016		—		—		—		63,016
Strengthening Dollar 2x Strategy Fund		—		3,152,360		—		—		—		3,152,360

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the year ended March 31, 2015, 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 March 31, 2015, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Group			U.S. Treasury Strips
0.03%			0.00%
Due 04/01/15	$922,646,685	$922,647,454	02/15/24 - 05/15/44	$1,876,361,900	$941,099,692
RBC Capital Markets			U.S. Treasury Note
0.05%			2.13%
Due 04/01/15	141,000,000	141,000,196	12/31/21	92,325,000	95,818,749
			U.S. TIP Bond
			3.88%
			04/25/29	22,465,400	48,001,266
UMB Financial Corp.			U.S. Treasury Notes
0.03%			1.38% - 3.25%
Due 04/01/15	113,175,677	113,175,772	11/30/15 - 12/31/16	109,984,100	115,439,211

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NOTES TO FINANCIAL STATEMENTS (continued)

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. 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.

At March 31, 2015, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
S&P 500® Pure Value Fund	$	2,235,256	$	2,273,900
S&P MidCap 400® Pure Value Fund		411,361		435,660
S&P SmallCap 600® Pure Growth Fund		1,834,303		1,882,725
S&P SmallCap 600® Pure Value Fund		457,313		482,245
Europe 1.25x Strategy Fund		54,160		56,550

Cash collateral received was invested in the following joint repurchase agreements at March 31, 2015:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.10%			0.00%
Due 04/01/15	$3,323,672	$3,323,681	11/15/17 - 07/15/37	$3,706,931	$2,551,343
			Federal Farm Credit Bank
			0.19%
			06/12/17	838,762	838,873
BNP Paribas Securities Corp.			U.S. Treasury Note
0.10%			2.13%
Due 04/01/15	1,143,343	1,143,346	12/31/21	525,555	541,717
			U.S. Treasury Bond
			4.38%
			05/15/41	453,575	624,494
Barclays Capital Corp.			U.S. Treasury Strips
0.10%			0.00%
Due 04/01/15	590,151	590,153	05/15/20 - 05/15/44	912,950	542,423
			U.S. Treasury Bond
			4.75%
			02/15/41	41,424	59,533

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NOTES TO FINANCIAL STATEMENTS (continued)

There was also $73,914 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

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*	70%	—
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 135% 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 March 31, 2015:

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 March 31, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at March 31, 2015
Japan 2x Strategy Fund	$	—	$	76,588	$	—	$	76,588
Strengthening Dollar 2x Strategy Fund		—		—		1,964,456		1,964,456
Weakening Dollar 2x Strategy Fund		—		52,612		6,899		59,511

96 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at March 31, 2015
Europe 1.25x Strategy Fund	$	91,708	$	69,326	$	—	$	161,034
Japan 2x Strategy Fund		63,016		—		—		63,016
Strengthening Dollar 2x Strategy Fund		—		3,152,360		—		3,152,360

* 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 year ended March 31, 2015:

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 following is a summary of the Funds’ realized gains (losses) and changes in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2015:

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	$	2,023,661	$	4,023	$	(2,009,064	)	$	—		$	18,620
Japan 2x Strategy Fund		1,738,002		4,886		(1,919,933	)		—			(177,045	)
Strengthening Dollar 2x Strategy Fund		—		—		35,932,141			6,431,435			42,363,576
Weakening Dollar 2x Strategy Fund		—		—		(1,977,311	)		(643,293	)		(2,620,604	)

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	$	(302,959	)	$	—	$	(22,353	)	$	—		$	(325,312	)
Japan 2x Strategy Fund		(372,610	)		—		120,380			—			(252,230	)
Strengthening Dollar 2x Strategy Fund		—			—		(3,325,685	)		1,982,005			(1,343,680	)
Weakening Dollar 2x Strategy Fund		—			—		118,925			(8,930	)		109,995

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.

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NOTES TO FINANCIAL STATEMENTS (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 Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	1,964,456	$	—	$	1,964,456	$	—	$	���	$	1,964,456
Weakening Dollar 2x Strategy Fund	Swap currency contracts		6,899		—		6,899		—		—		6,899

¹ Exchange-traded futures are excluded from these reported amounts.

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 years after they are filed.

98 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended March 31, 2015, the following capital loss carryforward amounts were expired or used:

Fund	Amount
S&P MidCap 400® Pure Value Fund	$	1,863,575
S&P SmallCap 600® Pure Growth Fund		3,447,313
S&P SmallCap 600® Pure Value Fund		2,338,136
Strengthening Dollar 2x Strategy Fund		23,329,425

The tax character of distributions paid during the year ended March 31, 2015 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	4,463,896	$	—	$	4,463,896
S&P 500® Pure Value Fund		2,272,512		1,746,579		4,019,091
S&P MidCap 400® Pure Growth Fund		15,520,167		17,684,250		33,204,417
S&P MidCap 400® Pure Value Fund		18,945		—		18,945
S&P SmallCap 600® Pure Growth Fund		—		—		—
S&P SmallCap 600® Pure Value Fund		—		—		—
Europe 1.25x Strategy Fund		26,435		—		26,435
Japan 2x Strategy Fund		—		—		—
Strengthening Dollar 2x Strategy Fund		—		—		—
Weakening Dollar 2x Strategy Fund		—		—		—

The tax character of distributions paid during the year ended March 31, 2014 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	—	$	—	$	—
S&P 500® Pure Value Fund		4,326,572		—		4,326,572
S&P MidCap 400® Pure Growth Fund		3,996,960		5,466,643		9,463,603
S&P MidCap 400® Pure Value Fund		52,110		—		52,110
S&P SmallCap 600® Pure Growth Fund		—		—		—
S&P SmallCap 600® Pure Value Fund		—		—		—
Europe 1.25x Strategy Fund		—		—		—
Japan 2x Strategy Fund		—		—		—
Strengthening Dollar 2x Strategy Fund		—		—		—
Weakening Dollar 2x Strategy Fund		—		—		—

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

The tax character of distributable earnings/(accumulated losses) at March 31, 2015 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)		Capital Loss Carryforward and Other Losses
S&P 500® Pure Growth Fund	$	—	$	5,021,680	$	24,159,829	$	(363,241	)
S&P 500® Pure Value Fund		2,879,737		—		5,165,460		—
S&P MidCap 400® Pure Growth Fund		—		8,958,015		29,445,227		(1,196,573	)
S&P MidCap 400® Pure Value Fund		28,715		—		692,185		(1,389,782	)
S&P SmallCap 600® Pure Growth Fund		—		—		5,658,439		(188,353	)
S&P SmallCap 600® Pure Value Fund		—		—		646,457		(25,498,182	)
Europe 1.25x Strategy Fund		63,417		—		45,644		(11,423,238	)
Japan 2x Strategy Fund		—		—		2,831		(1,843,566	)
Strengthening Dollar 2x Strategy Fund		—		6,983,885		69,831		(455,964	)
Weakening Dollar 2x Strategy Fund		—		—		622		(17,748,415	)

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NOTES TO FINANCIAL STATEMENTS (continued)

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. For taxable years beginning on or before December 22, 2010, such capital losses may be carried forward for a maximum of eight years. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to 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. As of March 31, 2015, capital loss carryforwards for the Funds were as follows:

	Expires in			Expires in			Expires in			Unlimited						Total Capital Loss
Fund	2017			2018			2019			Short-Term			Long-Term			Carryforward
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		—			—			(1,389,782	)		—			—			(1,389,782	)
S&P SmallCap 600® Pure Growth Fund		(131,829	)		(56,524	)		—			—			—			(188,353	)
S&P SmallCap 600® Pure Value Fund		—			—			(25,498,182	)		—			—			(25,498,182	)
Europe 1.25x Strategy Fund		(8,826,483	)		—			(2,098,062	)		(209,748	)		(288,945	)		(11,423,238	)
Japan 2x Strategy Fund		(973,570	)		—			—			(325,513	)		(544,483	)		(1,843,566	)
Strengthening Dollar 2x Strategy Fund		—			—			—			—			—			—
Weakening Dollar 2x Strategy Fund		(6,635,880	)		—			(3,988,430	)		(2,855,784	)		(4,268,321	)		(17,748,415	)

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are typically due to late year loss deferrals, losses deferred due to wash sales, utilization of earnings and profits on shareholder redemptions, foreign currency gains and losses, and the “mark to market” of futures contracts for tax purposes. Additional differences may result from tax treatment of net investment losses and expired capital loss carryforwards. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise. These reclassifications have no effect on the net assets or NAV per share.

On the Statements of Assets and Liabilities the following adjustments were made for permanent book/tax differences:

Fund	Paid In Capital			Undistributed Net Investment Income		Accumulated Net Realized Gain (Loss)
S&P 500® Pure Growth Fund	$	2,452,475		$	834,481	$	(3,286,956	)
S&P 500® Pure Value Fund		9,982,405			—		(9,982,405	)
S&P MidCap 400® Pure Growth Fund		19,638,794			1,378,718		(21,017,512	)
S&P MidCap 400® Pure Value Fund		—			—		—
S&P SmallCap 600® Pure Growth Fund		(284,087	)		284,087		—
S&P SmallCap 600® Pure Value Fund		(70,999	)		70,999		—
Europe 1.25x Strategy Fund		—			627		(627	)
Japan 2x Strategy Fund		(89,739	)		89,739		—
Strengthening Dollar 2x Strategy Fund		9,898,859			722,640		(10,621,499	)
Weakening Dollar 2x Strategy Fund		(132,095	)		132,095		—

100 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2015, 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
S&P 500® Pure Growth Fund	$	128,748,447	$	26,164,527	$	(2,004,698	)	$	24,159,829
S&P 500® Pure Value Fund		68,442,563		6,440,623		(1,275,163	)		5,165,460
S&P MidCap 400® Pure Growth Fund		162,310,465		31,513,166		(2,067,939	)		29,445,227
S&P MidCap 400® Pure Value Fund		13,664,696		822,401		(130,216	)		692,185
S&P SmallCap 600® Pure Growth Fund		55,144,348		6,611,621		(953,198	)		5,658,423
S&P SmallCap 600® Pure Value Fund		15,826,716		1,058,199		(411,742	)		646,457
Europe 1.25x Strategy Fund		10,991,067		112,934		(68,121	)		44,813
Japan 2x Strategy Fund		17,538,807		2,831		—			2,831
Strengthening Dollar 2x Strategy Fund		154,146,056		69,831		—			69,831
Weakening Dollar 2x Strategy Fund		5,463,632		704		(83	)		621

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2015, the following losses reflected in the accompanying financial statements were deferred for Federal income tax purposes until April 1, 2015:

Fund	Ordinary			Capital
S&P 500® Pure Growth Fund	$	(363,241	)	$	—
S&P MidCap 400® Pure Growth Fund		—			(1,196,573	)
Strengthening Dollar 2x Strategy Fund		(455,964	)		—

10. Securities Transactions

For the year ended March 31, 2015, 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	$	449,093,687	$	451,746,179
S&P 500® Pure Value Fund		473,547,691		530,479,924
S&P MidCap 400® Pure Growth Fund		303,595,925		397,378,941
S&P MidCap 400® Pure Value Fund		123,340,362		125,270,954
S&P SmallCap 600® Pure Growth Fund		130,204,367		105,237,051
S&P SmallCap 600® Pure Value Fund		108,832,364		121,557,586
Europe 1.25x Strategy Fund		56,742,641		60,761,594
Japan 2x Strategy Fund		5,413,986		4,000,000
Strengthening Dollar 2x Strategy Fund		137,363,596		85,500,000
Weakening Dollar 2x Strategy Fund		7,207,965		5,850,000

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NOTES TO FINANCIAL STATEMENTS (continued)

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 year ended March 31, 2015. The Funds did not have any borrowings under this agreement at March 31, 2015.

The average daily balances borrowed for the year ended March 31, 2015, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	53,267
S&P 500® Pure Value Fund		28,730
S&P MidCap 400® Pure Growth Fund		30,208
S&P MidCap 400® Pure Value Fund		14,105
S&P SmallCap 600® Pure Growth Fund		22,605
S&P SmallCap 600® Pure Value Fund		20,412
Europe 1.25x Strategy Fund		10,351

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 is available publicly or upon request. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Transactions during the period ended March 31, 2015, in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/14		Additions		Reductions			Value 03/31/15		Shares 03/31/15		Investment Income		Realized Loss			Capital Gain Distributions
Strengthening Dollar 2x Strategy Fund
Guggenheim Strategy Fund II	$	—	$	60,191,649	$	(34,850,000	)	$	25,333,425		1,016,998	$	191,684	$	(41,866	)	$	—

13. Reverse Share Split

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.

102 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 of the SLCFC actions: Deutsche Bank Trust Co. Americas v. McGurn, No. 11-1510 (S.D.N.Y.). 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 SLCFC 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. The Court has not yet issued a decision on the appeals.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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

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NOTES TO FINANCIAL STATEMENTS (concluded)

Lyondell shareholders under federal law for intentional fraudulent transfer. A third related action against the former Lyondell shareholders, Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, Adversary Proceeding No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), is pending as well.

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.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. The Court has not yet issued decisions on these motions. Discovery has commenced in these lawsuits.

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.

104 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and

Shareholders of Rydex Series Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (ten of the series constituting the Rydex Series Funds) (the “Funds”) as of March 31, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds (ten of the series constituting the Rydex Series Funds) at March 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia

May 21, 2015

THE RYDEX FUNDS ANNUAL REPORT | 105

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code (IRC). Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:

Fund	% Qualifying
S&P 500® Pure Growth Fund	11.90%
S&P 500® Pure Value Fund	13.82%
S&P MidCap 400® Pure Growth Fund	16.98%
S&P MidCap 400® Pure Value Fund	100.00%

The following amounts of taxable ordinary income dividends paid during the fiscal year qualified for the lower income tax rate available to individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003:

Fund	% Qualifying
S&P 500® Pure Growth Fund	10.56%
S&P 500® Pure Value Fund	12.86%
S&P MidCap 400® Pure Growth Fund	15.15%
S&P MidCap 400® Pure Value Fund	100.00%
Europe 1.25x Strategy Fund	100.00%

Additionally, of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively:

Fund	% Qualifying	% STCG Qualifying
S&P 500® Pure Growth Fund	0.00%	100.00%
S&P 500® Pure Value Fund	0.00%	100.00%
S&P MidCap 400® Pure Growth Fund	0.00%	100.00%

With respect to the taxable year ended March 31, 2015, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gains, subject to the 15% rate gains category:		From long-term capital gains, using proceeds from shareholder redemptions:
S&P 500® Pure Growth Fund	$	—	$	3,286,956
S&P 500® Pure Value Fund		1,746,579		5,033,030
S&P MidCap 400® Pure Growth Fund		17,684,250		19,638,792
Strengthening Dollar 2x Strategy Fund		—		10,621,499

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.

106 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year 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.

THE RYDEX FUNDS ANNUAL REPORT | 107

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).	221	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	133	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.	133	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.	133	None.

108 | THE RYDEX FUNDS 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
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).	133	None.
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).	133	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).	133	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.

THE RYDEX FUNDS ANNUAL REPORT | 109

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
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).
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); Managing Director, Guggenheim Investments (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).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	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.

110 | THE RYDEX FUNDS 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 ANNUAL REPORT | 111

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.

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3.31.2015

Rydex Funds Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

ROTC-ANN-2-0315x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
NASDAQ-100® FUND	9
NOTES TO FINANCIAL STATEMENTS	25
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	45
OTHER INFORMATION	46
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	48
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	53

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2015

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for one of our Rydex Funds (the “Fund”). This report covers performance for the one-year period ended March 31, 2015.

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

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

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

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

Sincerely,

Donald C. Cacciapaglia

President

April 30, 2015

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

2 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2015

The U.S. continued to enjoy a self-sustaining economic expansion for the 12-month period ended March 31, 2015, although winter weather was likely to distort first-quarter economic data. In addition, U.S. companies scaled back hiring in the last month of the period, adding to evidence that the domestic economy has lost some momentum since the turn of the year. The March increase in payrolls was the smallest since December 2013 and broke a 12-month run of gains above 200,000.

Despite this short-term dislocation, the economy remains on track. Indeed, many other labor market indicators, such as initial jobless claims and the job openings rate, suggest that the U.S. labor market remains quite strong, supporting the conclusion that March’s payroll report was just a temporary blip, similar to the one witnessed last winter. As soon as temporary seasonal factors have dissipated, economic data is likely to bounce back. The labor market has improved over the past year, as subdued mortgage rates and tight housing inventory continue to point to fairly stable appreciation in the housing market, which is key to the ongoing recovery. Consumers are also being helped by lower fuel prices, which are acting as a tax cut for U.S. consumers, freeing up discretionary spending in other areas and acting as a support for consumption.

In Europe, economic data has been surprisingly good and should continue along that path on the back of the European Central Bank’s program of quantitative easing and depreciation of the euro. Japan’s economy remains weak and, without more structural reform, continued monetary accommodation could lead to stagflation. China’s policymakers appear likely to continue the supply of credit and do whatever else is necessary to maintain growth there at an acceptable pace for the near term.

Given weakness overseas and the effect of a stronger U.S. dollar on international earnings, some stocks could face a more challenging environment in the near term, but our research shows that equity markets tend to perform quite well in the periods leading up to a U.S. Federal Reserve (the “Fed”) rate increase. The yield on the 10-year Treasury note declined in January by more than 50 basis points before rebounding in February, echoing the pattern since 2009—Treasury yields decline and a sell-off ensues, driving rates higher. Then conditions stabilize, and rates test their previous lows. Liquidity from foreign central banks and comparatively attractive U.S. yields continue to push global investors to U.S. Treasuries, which should hold down U.S. interest rates in the near term.

Against this backdrop, the U.S. central bank feels pressure to raise its key rate above zero, but insists the decision will be data-dependent and not occur prematurely. With a secular inflation increase unlikely in the near term, slack in the economy, and disinflation being imported from abroad, the Fed may not hike rates until later in the year. The Fed for now appears to be focused on wage growth,

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(continued) March 31, 2015

which is key for sustaining the expansion but also an indicator of inflationary pressure. The lack of sustained wage growth has been a topic that has confounded the Fed lately. Given the strengthening employment numbers and the apparent reduction in labor market slack, wages should start to increase more steadily across the board. This is one of the most important data points at the moment for the Fed.

The underlying U.S. economy remains strong and investors should avoid being panicked by seasonal setbacks. Indeed, considering the strength of the economy and the wave of liquidity emanating from various central banks around the world, the general investment environment should remain attractive.

For the 12 months ended March 31, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned 12.73%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -0.92%. The return of the MSCI Emerging Markets Index* was 0.44%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a 5.72% return for the period, while the Barclays U.S. Corporate High Yield Index* returned 2.00%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.03% for the 12-month period.

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

*Index Definitions:

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

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

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

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

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2015

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

NASDAQ-100^® Index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. It does not contain securities of financial companies, including investment companies.

S&P 500^® Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad economy, representing all major industries and is considered a representation of the U.S. stock market.

THE RYDEX FUNDS ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, 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 September 30, 2014 and ending March 31, 2015.

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.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.24%	7.01%	$1,000.00	$1,070.10	$6.40
Advisor Class	1.74%	6.78%	1,000.00	1,067.80	8.97
A-Class	1.48%	6.89%	1,000.00	1,068.90	7.63
C-Class	2.23%	6.48%	1,000.00	1,064.80	11.48
H-Class	1.47%	6.76%	1,000.00	1,067.60	7.58

Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.24%	5.00%	$1,000.00	$1,018.75	$6.24
Advisor Class	1.74%	5.00%	1,000.00	1,016.26	8.75
A-Class	1.48%	5.00%	1,000.00	1,017.55	7.44
C-Class	2.23%	5.00%	1,000.00	1,013.81	11.20
H-Class	1.47%	5.00%	1,000.00	1,017.60	7.39

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 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2014 to March 31, 2015.

8 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

NASDAQ-100^® FUND

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

For the one-year period ended March 31, 2015, NASDAQ-100^® Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100 Index. The NASDAQ-100^® Fund Investor Class rose 20.53%, while the NASDAQ-100 Index returned 22.03% over the same period.

The Information Technology sector contributed most to performance of the underlying index, followed by the Health Care sector. Telecommunications Services was the only sector that detracted from performance. The Materials sector contributed least, followed by the Industrials sector.

Apple, Inc., Gilead Sciences, Inc., and Facebook, Inc. — Class A were the holdings contributing most to performance of the underlying index for the year. Wynn Resorts Ltd., Google, Inc. — Class C, and QUALCOMM, Inc. detracted most from performance of the underlying index for the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes. The results of derivatives used during the period were within our expectations and contributed to the Fund’s performance.

The Fund invests excess cash into the Guggenheim Strategy Funds, which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one year period ended March 31, 2015, investment in the Guggenheim Strategy Funds benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2015

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the Fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
Investor Class	February 14, 1994
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)
Guggenheim Strategy Fund I	14.6%
Apple, Inc.	10.8%
Microsoft Corp.	5.0%
Google, Inc. — Class C	2.8%
Facebook, Inc. — Class A	2.7%
Amazon.com, Inc.	2.6%
Google, Inc. — Class A	2.4%
Intel Corp.	2.2%
Gilead Sciences, Inc.	2.2%
Cisco Systems, Inc.	2.1%
Top Ten Total	47.4%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2015

Cumulative Fund Performance*

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
Investor Class Shares	20.53%	17.14%	11.06%
Advisor Class Shares	19.94%	16.51%	10.50%
A-Class Shares	20.24%	16.82%	10.77%
A-Class Shares with sales charge†	14.54%	15.69%	10.23%
C-Class Shares	19.37%	15.97%	9.97%
C-Class Shares with CDSC‡	18.37%	15.97%	9.97%
NASDAQ-100 Index	22.03%	18.59%	12.27%
	Since Inception (09/18/14)
H-Class Shares	5.40%
NASDAQ-100 Index	6.29%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on the Investor Class shares and A-Class shares only; performance for Advisor Class shares, C-Class shares and H-Class shares will vary due to differences in fee structures.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

12 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 74.2%
TECHNOLOGY - 28.7%
Apple, Inc.		825,435	$	102,708,876
Microsoft Corp.		1,162,431		47,258,632
Intel Corp.		671,066		20,984,234
QUALCOMM, Inc.		233,735		16,207,185
Texas Instruments, Inc.		148,375		8,484,824
Cognizant Technology Solutions Corp. — Class A*		86,380		5,389,248
Adobe Systems, Inc.*		70,978		5,248,113
Avago Technologies Ltd.		36,327		4,612,802
Micron Technology, Inc.*		152,650		4,141,395
Applied Materials, Inc.		174,100		3,927,696
Intuit, Inc.		39,211		3,801,899
Cerner Corp.*		48,544		3,556,333
Broadcom Corp. — Class A		77,933		3,374,109
NXP Semiconductor N.V.*		32,696		3,281,371
Western Digital Corp.		32,736		2,979,304
Analog Devices, Inc.		44,156		2,781,828
Fiserv, Inc.*		33,821		2,685,388
Electronic Arts, Inc.*		43,931		2,583,802
Paychex, Inc.		51,456		2,552,989
Seagate Technology plc		46,525		2,420,696
Activision Blizzard, Inc.		102,435		2,327,835
Check Point Software Technologies Ltd.*		26,043		2,134,745
CA, Inc.		62,744		2,046,082
SanDisk Corp.		30,183		1,920,242
Autodesk, Inc.*		32,239		1,890,495
Altera Corp.		42,635		1,829,468
Akamai Technologies, Inc.*		25,221		1,791,826
NVIDIA Corp.		77,016		1,611,560
Linear Technology Corp.		33,893		1,586,192
Lam Research Corp.		22,576		1,585,625
Xilinx, Inc.		37,045		1,567,004
NetApp, Inc.		44,176		1,566,481
Citrix Systems, Inc.*		22,647		1,446,464
KLA-Tencor Corp.		23,048		1,343,468
Total Technology				273,628,211
COMMUNICATIONS - 23.5%
Google, Inc. — Class C*		48,272		26,453,056
Facebook, Inc. — Class A*		316,877		26,052,043
Amazon.com, Inc.*		65,801		24,484,552
Google, Inc. — Class A*		40,659		22,553,547
Cisco Systems, Inc.		723,314		19,909,218
Comcast Corp. — Class A		301,971		17,052,302
eBay, Inc.*		171,459		9,889,755
Priceline Group, Inc.*		7,360		8,568,144
Baidu, Inc. ADR*		39,259		8,181,576
Twenty-First Century Fox, Inc. — Class A		188,115		6,365,812
DIRECTV*		71,246		6,063,035
Yahoo!, Inc.*		132,644		5,894,036
Liberty Global plc*		88,665		4,416,404
Twenty-First Century Fox, Inc. — Class B		113,146		3,720,240
Netflix, Inc.*		8,573		3,572,283
Viacom, Inc. — Class B		50,324		3,437,129
Comcast Corp. — Class A		56,746		3,181,464
Charter Communications, Inc. — Class A*		15,870		3,064,656
Sirius XM Holdings, Inc.*		790,859		3,021,081
Symantec Corp.		96,690		2,259,162
DISH Network Corp. — Class A*		31,654		2,217,679
Vodafone Group plc ADR		61,083		1,996,192
Liberty Interactive Corp. — Class A*		63,127		1,842,677
Liberty Global plc — Class A*		35,608		1,832,744
TripAdvisor, Inc.*		18,439		1,533,572
VimpelCom Ltd. ADR		248,850		1,303,974
Liberty Media Corp. — Class C*		32,348		1,235,694
Discovery Communications, Inc. — Class C*		40,251		1,186,398
Liberty Ventures*		19,063		800,837
Discovery Communications, Inc. — Class A*		21,061		647,836
Liberty Media Corp. — Class A*		14,809		570,887
Total Communications				223,307,985

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
NASDAQ-100® FUND

	Shares		Value
CONSUMER, NON-CYCLICAL - 14.1%
Gilead Sciences, Inc.*		211,042	$	20,709,550
Amgen, Inc.		107,526		17,188,031
Biogen, Inc.*		33,244		14,036,947
Celgene Corp.*		113,439		13,077,248
Express Scripts Holding Co.*		102,997		8,937,049
Mondelez International, Inc. — Class A		233,724		8,435,098
Kraft Foods Group, Inc.		83,317		7,258,160
Regeneron Pharmaceuticals, Inc.*		14,260		6,438,105
Automatic Data Processing, Inc.		67,326		5,765,798
Alexion Pharmaceuticals, Inc.*		28,643		4,963,832
Vertex Pharmaceuticals, Inc.*		34,303		4,046,725
Illumina, Inc.*		20,376		3,782,601
Monster Beverage Corp.*		23,764		3,288,819
Mylan N.V.*		53,142		3,153,978
Whole Foods Market, Inc.		51,119		2,662,278
Intuitive Surgical, Inc.*		5,186		2,619,086
Keurig Green Mountain, Inc.		22,909		2,559,623
Catamaran Corp.*		29,401		1,750,536
Henry Schein, Inc.*		11,875		1,657,988
Verisk Analytics, Inc. — Class A*		22,404		1,599,646
Total Consumer, Non-cyclical				133,931,098
CONSUMER, CYCLICAL - 6.9%
Walgreens Boots Alliance, Inc.		154,443		13,078,233
Starbucks Corp.		106,242		10,061,117
Costco Wholesale Corp.		62,419		9,456,166
American Airlines Group, Inc.		98,713		5,210,072
Tesla Motors, Inc.*,1		17,820		3,363,881
PACCAR, Inc.		50,233		3,171,712
Marriott International, Inc. — Class A		39,185		3,147,339
O’Reilly Automotive, Inc.*		14,403		3,114,505
Ross Stores, Inc.		29,541		3,112,440
Dollar Tree, Inc.*		29,140		2,364,565
Bed Bath & Beyond, Inc.*		26,300		2,019,183
Wynn Resorts Ltd.		14,386		1,810,910
Fastenal Co.		41,871		1,734,925
Tractor Supply Co.		19,299		1,641,573
Staples, Inc.		90,731		1,477,554
Mattel, Inc.		47,929		1,095,178
Total Consumer, Cyclical				65,859,353
INDUSTRIAL - 0.8%
SBA Communications Corp. — Class A*		18,298		2,142,696
Stericycle, Inc.*		12,034		1,689,935
CH Robinson Worldwide, Inc.		20,753		1,519,534
Expeditors International of Washington, Inc.		27,170		1,309,051
Garmin Ltd.		27,179		1,291,546
Total Industrial				7,952,762
BASIC MATERIALS - 0.2%
Sigma-Aldrich Corp.		16,923		2,339,605
Total Common Stocks
(Cost $298,897,283)				707,019,014
MUTUAL FUNDS† - 15.1%
Guggenheim Strategy Fund I2		5,591,468		139,227,564
Guggenheim Strategy Fund II3		160,062		3,987,152
Total Mutual Funds
(Cost $142,966,534)				143,214,716
	Face Amount
REPURCHASE AGREEMENTS††,4 - 10.4%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	77,233,046		77,233,046
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		11,802,849		11,802,849

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
NASDAQ-100® FUND

	Face Amount		Value
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15	$	9,473,727	$	9,473,727
Total Repurchase Agreements
(Cost $98,509,622)				98,509,622
SECURITIES LENDING COLLATERAL††,5 - 0.3%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		1,625,277		1,625,277
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		559,095		559,095
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		288,584		288,584
Total Securities Lending Collateral
(Cost $2,472,956)				2,472,956
Total Investments - 100.0%
(Cost $542,846,395)			$	951,216,308
Other Assets & Liabilities, net - 0.0%				196,765
Total Net Assets - 100.0%			$	951,413,073

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $181,699,935)		2,099	$	1,035,096
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International April 2015 NASDAQ-100 Index Swap, Terminating 04/28/156 (Notional Value $25,655,951)		5,920	$	118,356
Credit Suisse Capital, LLC April 2015 NASDAQ-100 Index Swap, Terminating 04/28/156 (Notional Value $4,196,576)		968		19,347
Barclays Bank plc April 2015 NASDAQ-100 Index Swap, Terminating 04/30/156 (Notional Value $34,752,147)		8,019		(30,008	)
(Total Notional Value $64,604,674)			$	107,695

*	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 March 31, 2015 — 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	Securities lending collateral — See Note 6.
6	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

STATEMENT OF ASSETS AND LIABILITIES

NASDAQ-100^® FUND

March 31, 2015

Assets:
Investments in unaffiliated issuers, at value – including $2,435,133 of securities loaned (cost $302,875,249)	$	711,006,166
Investments in affiliated issuers, at value (cost $138,988,568)		139,227,564
Repurchase agreements, at value (cost $100,982,578)		100,982,578
Total investments (cost $542,846,395)		951,216,308
Segregated cash with broker		15,165,820
Unrealized appreciation on swap agreements		137,703
Cash		23,491
Receivables:
Fund shares sold		7,739,578
Dividends		585,271
Swap settlement		143,040
Securities lending income		627
Interest		89
Total assets		975,011,927
Liabilities:
Unrealized depreciation on swap agreements		30,008
Payable for:
Securities purchased		10,032,075
Fund shares redeemed		7,794,993
Return of securities loaned		2,509,100
Variation margin		1,769,197
Management fees		599,002
Transfer agent and administrative fees		199,667
Distribution and service fees		74,035
Portfolio accounting fees		51,700
Miscellaneous		539,077
Total liabilities		23,598,854
Commitments and contingent liabilities (Note 13)		—
Net assets	$	951,413,073
Net assets consist of:
Paid in capital	$	542,505,104
Accumulated net investment income		—
Accumulated net realized loss on investments		(604,735	)
Net unrealized appreciation on investments		409,512,704
Net assets	$	951,413,073
Investor Class:
Net assets	$	769,256,933
Capital shares outstanding		30,308,944
Net asset value per share	$	25.38
Advisor Class:
Net assets	$	67,002,133
Capital shares outstanding		2,905,465
Net asset value per share	$	23.06
A-Class:
Net assets	$	70,820,622
Capital shares outstanding		2,978,334
Net asset value per share	$	23.78
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.97
C-Class:
Net assets	$	32,324,422
Capital shares outstanding		1,496,403
Net asset value per share	$	21.60
H-Class:
Net assets	$	12,008,963
Capital shares outstanding		505,455
Net asset value per share	$	23.76

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

STATEMENT OF OPERATIONS

NASDAQ-100^® FUND

Year Ended March 31, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $9,352)	$	8,895,722
Dividends from securities of affiliated issuers		1,821,180
Income from securities lending, net		10,952
Interest		10,766
Total investment income		10,738,620
Expenses:
Management fees		6,621,043
Transfer agent and administrative fees		2,207,014
Distribution and service fees:
Advisor Class		455,838
A-Class		101,398
C-Class		236,879
H-Class**		69,811
Portfolio accounting fees		601,265
Custodian fees		102,854
Trustees’ fees*		56,966
Line of credit fees		4,333
Miscellaneous		1,475,616
Total expenses		11,933,017
Net investment loss		(1,194,397	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	68,298,965
Investments in affiliated issuers		(732,612	)
Swap agreements		35,794,059
Futures contracts		2,316,996
Net realized gain		105,677,408
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		62,274,002
Investments in affiliated issuers		238,996
Swap agreements		40,731
Futures contracts		1,086,931
Net change in unrealized appreciation (depreciation)		63,640,660
Net realized and unrealized gain		169,318,068
Net increase in net assets resulting from operations	$	168,123,671

*	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.

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

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,194,397	)	$	358,208
Net realized gain on investments		105,677,408			94,903,636
Net change in unrealized appreciation (depreciation) on investments		63,640,660			67,794,671
Net increase in net assets resulting from operations		168,123,671			163,056,515
Distributions to shareholders from:
Net realized gains
Investor Class		(11,799,003	)		(52,374,827	)
Advisor Class		(844,563	)		(3,185,736	)
A-Class		(713,323	)		(2,215,102	)
C-Class		(455,105	)		(1,712,829	)
H-Class*		(13,134	)		—
Total distributions to shareholders		(13,825,128	)		(59,488,494	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,029,136,798			797,805,960
Advisor Class		977,291,285			747,398,780
A-Class		126,142,545			65,905,567
C-Class		31,988,339			26,628,147
H-Class*		1,146,379,957			—
Distributions reinvested
Investor Class		10,894,558			46,546,535
Advisor Class		841,695			3,164,981
A-Class		687,698			2,113,562
C-Class		439,832			1,686,286
H-Class*		13,134			—
Cost of shares redeemed
Investor Class		(1,013,748,379	)		(743,050,821	)
Advisor Class		(984,316,693	)		(761,022,258	)
A-Class		(83,648,854	)		(71,718,486	)
C-Class		(22,518,343	)		(23,621,291	)
H-Class*		(1,132,744,353	)		—
Net increase from capital share transactions		86,839,219			91,836,962
Net increase in net assets		241,137,762			195,404,983
Net assets:
Beginning of year		710,275,311			514,870,328
End of year	$	951,413,073		$	710,275,311
Accumulated net investment income at end of year	$	—		$	—

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

STATEMENTS OF CHANGES IN NET ASSETS(concluded)

NASDAQ-100^® FUND

	Year Ended March 31, 2015			Year Ended March 31, 2014
Capital share activity:
Shares sold
Investor Class		43,087,905			38,652,000
Advisor Class		47,220,519			40,432,732
A-Class		5,505,586			3,476,725
C-Class		1,558,513			1,472,390
H-Class*		49,097,507			—
Shares issued from reinvestment of distributions
Investor Class		438,589			2,248,625
Advisor Class		37,226			166,841
A-Class		29,528			108,499
C-Class		20,727			94,206
H-Class*		563			—
Shares redeemed
Investor Class		(42,808,208	)		(36,409,149	)
Advisor Class		(46,232,015	)		(39,713,114	)
A-Class		(3,638,949	)		(3,861,027	)
C-Class		(1,123,559	)		(1,328,165	)
H-Class*		(48,592,615	)		—
Net increase in shares		4,601,317			5,340,563

* Since commencement of operations: September 18, 2014.

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

FINANCIAL HIGHLIGHTS

NASDAQ-100^® FUND

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

Investor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	21.38		$	18.38		$	17.92		$	15.23		$	12.83
Income (loss) from investment operations:
Net investment income (loss)a		(.01	)		.02			.02			(.05	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		4.39			5.01			.44			2.74			2.47
Total from investment operations		4.38			5.03			.46			2.69			2.40
Less distributions from:
Net realized gains		(.38	)		(2.03	)		—			—			—
Total distributions		(.38	)		(2.03	)		—			—			—
Net asset value, end of period	$	25.38		$	21.38		$	18.38		$	17.92		$	15.23
Total Returnb		20.53	%		27.74	%		2.57	%		17.66	%		18.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	769,257		$	632,598		$	461,269		$	770,626		$	579,925
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		0.10	%		0.13	%		(0.34	%)		(0.50	%)
Total expensesc		1.26	%		1.29	%		1.26	%		1.27	%		1.31	%
Portfolio turnover rate		267	%		141	%		94	%		94	%		39	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

Advisor Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	19.55		$	17.04		$	16.70		$	14.27		$	12.09
Income (loss) from investment operations:
Net investment income (loss)a		(.11	)		(.01	)		(.08	)		(.13	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		4.00			4.55			.42			2.56			2.30
Total from investment operations		3.89			4.54			.34			2.43			2.18
Less distributions from:
Net realized gains		(.38	)		(2.03	)		—			—			—
Total distributions		(.38	)		(2.03	)		—			—			—
Net asset value, end of period	$	23.06		$	19.55		$	17.04		$	16.70		$	14.27
Total Returnb		19.94	%		27.02	%		2.04	%		17.03	%		18.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	67,002		$	36,751		$	16,930		$	65,970		$	120,277
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.05	%)		(0.51	%)		(0.87	%)		(1.00	%)
Total expensesc		1.75	%		1.79	%		1.75	%		1.76	%		1.80	%
Portfolio turnover rate		267	%		141	%		94	%		94	%		39	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	20.10		$	17.42		$	17.03		$	14.52		$	12.27
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		(.03	)		(.02	)		(.09	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		4.12			4.74			.41			2.60			2.36
Total from investment operations		4.06			4.71			.39			2.51			2.25
Less distributions from:
Net realized gains		(.38	)		(2.03	)		—			—			—
Total distributions		(.38	)		(2.03	)		—			—			—
Net asset value, end of period	$	23.78		$	20.10		$	17.42		$	17.03		$	14.52
Total Returnb		20.24	%		27.42	%		2.29	%		17.29	%		18.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	70,821		$	21,751		$	23,656		$	14,553		$	19,806
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.14	%)		(0.09	%)		(0.61	%)		(0.81	%)
Total expensesc		1.50	%		1.54	%		1.52	%		1.53	%		1.56	%
Portfolio turnover rate		267	%		141	%		94	%		94	%		39	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	18.42		$	16.22		$	15.97		$	13.72		$	11.67
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.16	)		(.13	)		(.19	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		3.77			4.39			.38			2.44			2.24
Total from investment operations		3.56			4.23			.25			2.25			2.05
Less distributions from:
Net realized gains		(.38	)		(2.03	)		—			—			—
Total distributions		(.38	)		(2.03	)		—			—			—
Net asset value, end of period	$	21.60		$	18.42		$	16.22		$	15.97		$	13.72
Total Returnb		19.37	%		26.46	%		1.57	%		16.40	%		17.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,324		$	19,175		$	13,015		$	15,177		$	11,864
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(0.89	%)		(0.84	%)		(1.35	%)		(1.52	%)
Total expensesc		2.25	%		2.29	%		2.26	%		2.27	%		2.31	%
Portfolio turnover rate		267	%		141	%		94	%		94	%		39	%

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

FINANCIAL HIGHLIGHTS (concluded)

NASDAQ-100^® FUND

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

H-Class	Period Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	22.91
Income (loss) from investment operations:
Net investment income (loss)a		.01
Net gain (loss) on investments (realized and unrealized)		1.22
Total from investment operations		1.23
Less distributions from:
Net realized gains		(.38	)
Total distributions		(.38	)
Net asset value, end of period	$	23.76
Total Returnb		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,009
Ratios to average net assets:
Net investment income (loss)		0.07	%
Total expensesc		1.47	%
Portfolio turnover rate		267	%

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

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

NOTES TO FINANCIAL STATEMENTS

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 March 31, 2015, the Trust consisted of fifty-two funds (the "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.

THE RYDEX FUNDS ANNUAL REPORT | 25

NOTES TO FINANCIAL STATEMENTS (continued)

Significant Accounting Policies

The Fund operates as an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

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

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

Valuations of the Fund's 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 Fund's officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used 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

26 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer

THE RYDEX FUNDS ANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (continued)

and the market(s) in which the security is purchased and sold (e.g. the existence of pending merger activity, public offerings or tender offers that might affect the value of the security).

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. 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.

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. 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. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

28 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

E. 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.

F. 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.

G. 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.

H. 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

THE RYDEX FUNDS ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (continued)

exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

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.

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.

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 the annualized rate of 0.25% based on 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%

30 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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. If a Service Provider provides distribution services, the Fund will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services. With regard to Advisor Class shares only, if a Service Provider provides shareholder services, GFD will receive shareholder servicing fees from the Fund 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 Fund to pay annual distribution and service fees of 1.00% of the Fund's C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the year ended March 31, 2015, GFD retained sales charges of $360,571 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.

THE RYDEX FUNDS ANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (continued)

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 investments at March 31, 2015:

	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	$	850,233,730	$	1,035,096	$	100,982,578	$	137,703	$	—	$	952,389,107
Liabilities
NASDAQ-100® Fund	$	—	$	—	$	—	$	30,008	$	—	$	30,008

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the year ended March 31, 2015, there were no transfers between levels.

32 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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

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 March 31, 2015, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Group			U.S. Treasury Strips
0.03%			0.00%
Due 04/01/15	$922,646,685	$922,647,454	02/15/24 - 05/15/44	$1,876,361,900	$941,099,692
RBC Capital Markets			U.S. Treasury Note
0.05%			2.13%
Due 04/01/15	141,000,000	141,000,196	12/31/21	92,325,000	95,818,749
			U.S. TIP Bond
			3.88%
			04/25/29	22,465,400	48,001,266
UMB Financial Corp.			U.S. Treasury Notes
0.03%			1.38% - 3.25%
Due 04/01/15	113,175,677	113,175,772	11/30/15 - 12/31/16	109,984,100	115,439,211

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.

THE RYDEX FUNDS ANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (continued)

6. Portfolio Securities Loaned

The Funds may lend their 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 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.

At March 31, 2015, the Fund participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
NASDAQ-100® Fund	$	2,435,133	$	2,509,100

34 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Cash collateral received was invested in the following joint repurchase agreements at March 31, 2015:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.10%			0.00%
Due 04/01/15	$1,625,277	$1,625,281	11/15/17 - 07/15/37	$1,812,691	$1,247,608
			Federal Farm Credit Bank
			0.19%
			06/12/17	410,155	410,209
BNP Paribas Securities Corp.			U.S. Treasury Note
0.10%			2.13%
Due 04/01/15	559,095	559,097	12/31/21	256,997	264,900
			U.S. Treasury Bond
			4.38%
			05/15/41	221,798	305,378
Barclays Capital Corp.			U.S. Treasury Strips
0.10%			0.00%
Due 04/01/15	288,584	288,585	05/15/20 - 05/15/44	446,433	265,245
			U.S. Treasury Bond
			4.75%
			02/15/41	20,256	29,112

There is also a $36,144 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 Fund utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity
NASDAQ-100® Fund	x	x

THE RYDEX FUNDS ANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (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
NASDAQ-100® Fund	25%	—

The following is a summary of the location of derivative investments on the Fund's Statement of Assets and Liabilities as of March 31, 2015:

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 March 31, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at March 31, 2015
NASDAQ-100® Fund	$	1,035,096	$	137,703	$	1,172,799

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at March 31, 2015
NASDAQ-100® Fund	$	—	$	30,008	$	30,008

* 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.

36 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the location of derivative investments on the Fund's Statement of Operations for the year ended March 31, 2015:

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

The following is a summary of the Fund's realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the year ended March 31, 2015:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Total
NASDAQ-100® Fund	$	2,316,996	$	35,794,059	$	38,111,055

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	$	1,086,931	$	40,731	$	1,127,662

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.

THE RYDEX FUNDS ANNUAL REPORT | 37

NOTES TO FINANCIAL STATEMENTS (continued)

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.

38 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (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 Received		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	137,703	$	—	$	137,703	$	—	$	—	$	137,703

								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 Pledged		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	30,008	$	—	$	30,008	$	—	$	30,008	$	—

¹ Exchange-traded futures are excluded from these reported amounts.

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

THE RYDEX FUNDS ANNUAL REPORT | 39

NOTES TO FINANCIAL STATEMENTS (continued)

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 tax character of distributions paid during the year ended March 31, 2015 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
NASDAQ-100® Fund	$	13,825,128	$	—	$	13,825,128

The tax character of distributions paid during the year ended March 31, 2014 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
NASDAQ-100® Fund	$	—	$	59,488,494	$	59,488,494

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

The tax character of distributable earnings/(accumulated losses) at March 31, 2015 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)		Capital Loss Carryforward
NASDAQ-100® Fund	$	26,051,997	$	—	$	382,855,972	$	—

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital loss carryforwards will retain their character as either short-term or long-term capital losses. As of March 31, 2015, the Fund had no capital loss carryforwards.

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are typically due to wash sales, mark-to-market on futures contracts, and utilization of earnings and profits on shareholder redemptions. Additional differences may result from tax treatment of net

40 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

investment losses and expired capital loss carryforwards. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise. These reclassifications have no effect on the net assets or NAV per share.

On the Statement of Assets and Liabilities the following adjustments were made for permanent book/tax differences:

Fund	Paid In Capital		Undistributed Net Investment Income			Accumulated Net Realized Gain (Loss)
NASDAQ-100® Fund	$	85,260,255		$	1,194,397	$	(86,454,652	)

At March 31, 2015, 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	$	568,468,031	$	385,599,882	$	(2,851,605	)	$	382,748,277

10. Securities Transactions

For the year ended March 31, 2015, 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	$	2,144,783,279	$	2,072,231,587

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 year ended March 31, 2015. The Fund did not have any borrowings under this agreement at March 31, 2015.

THE RYDEX FUNDS ANNUAL REPORT | 41

NOTES TO FINANCIAL STATEMENTS (continued)

The average daily balances borrowed for the year ended March 31, 2015 were as follows:

Fund	Average Daily Balance
NASDAQ-100® Fund	$	341,854

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 is available publicly or upon request. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Transactions during the period ended March 31, 2015, in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/14		Additions		Reductions			Value 03/31/15		Shares 03/31/15		Investment Income		Realized Loss			Capital Gain Distributions
NASDAQ-100® Fund
Guggenheim Strategy Fund I	$	—	$	463,721,180	$	(324,000,000	)	$	139,227,564		5,591,468	$	1,821,180	$	(732,612	)	$	—

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

42 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 of the SLCFC actions: Deutsche Bank Trust Co. Americas v. McGurn, No. 11-1510 (S.D.N.Y.). 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 SLCFC 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. The Court has not yet issued a decision on the appeals.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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,

THE RYDEX FUNDS ANNUAL REPORT | 43

NOTES TO FINANCIAL STATEMENTS (concluded)

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. A third related action against the former Lyondell shareholders, Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, Adversary Proceeding No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), is pending as well.

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.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. The Court has not yet issued decisions on these motions. Discovery has commenced in these lawsuits.

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.

44 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and

Shareholders of Rydex Series Funds:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of NASDAQ-100^® Fund (one of the series constituting the Rydex Series Funds) (the “Fund”) as of March 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of NASDAQ-100^® Fund (one of the series constituting the Rydex Series Funds) at March 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia

May 21, 2015

THE RYDEX FUNDS ANNUAL REPORT | 45

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the ordinary income distributions paid during the year, the following fund had the corresponding percentage qualify for the dividends received deduction for corporations:

Fund	% Qualifying
NASDAQ-100® Fund	20.44%

Additionally, the following amounts of taxable ordinary income dividends paid during the fiscal year qualified for the lower income tax rate available to individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003:

Fund	% Qualifying
NASDAQ-100® Fund	19.41%

Additionally, of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following fund had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively:

Fund	% Qualifying	% STCG Qualifying
NASDAQ-100® Fund	0.00%	100.00%

With respect to the taxable year ended March 31, 2015, the Fund hereby designates as capital gain dividends the amount listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gains, using proceeds from shareholder redemptions:
NASDAQ-100® Fund	$	44,371,323

46 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

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.

THE RYDEX FUNDS ANNUAL REPORT | 47

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).	221	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	133	None.

48 | THE RYDEX FUNDS 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 - continued
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.	133	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.	133	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).	133	None.

THE RYDEX FUNDS ANNUAL REPORT | 49

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).	133	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).	133	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).

50 | THE RYDEX FUNDS ANNUAL REPORT

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

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 - continued
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).
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); Managing Director, Guggenheim Investments (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).

THE RYDEX FUNDS ANNUAL REPORT | 51

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
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).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	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.

52 | THE RYDEX FUNDS 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

THE RYDEX FUNDS ANNUAL REPORT | 53

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(continued)

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.

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.

54 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

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 ANNUAL REPORT | 55

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3.31.2015

Rydex Funds 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-ANN-0315x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
LONG SHORT EQUITY FUND	10
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND	22
EMERGING MARKETS 2x STRATEGY FUND	37
INVERSE EMERGING MARKETS 2x STRATEGY FUND	45
EMERGING MARKETS BOND STRATEGY FUND	52
NOTES TO FINANCIAL STATEMENTS	59
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	76
OTHER INFORMATION	77
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	79
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	82

THE RYDEX FUNDS ANNUAL REPORT | 1

 March 31, 2015

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our alternative strategy Funds (the “Funds”) for the one-year period ended March 31, 2015.

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

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and the Investment Adviser.

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

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

Sincerely,

Donald C. Cacciapaglia

President

April 30, 2015

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.

Alternative funds may not be suitable for all investors because of the sophisticated and aggressive investment techniques the funds employ, such as leverage, derivatives and short selling. • The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. • The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. • Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, such as droughts, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. • No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment.

The Long Short Equity Fund may not be suitable for all investors. • The Fund is subject to the risk that the Adviser’s use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. • It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. • The Fund’s loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. • The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • The use of derivatives, such as futures, options and swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • The Fund may invest in American Depositary Receipts (“ADRs”) therefore subjecting the value of the Fund’s portfolio to fluctuations in foreign exchange rates. • This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. See the prospectus for more information on these and additional risks.

The Event Driven and Distressed Strategies Fund is subject to a number of risks and is not suitable for all investors. • The Fund’s use of derivatives such as futures, options, structured notes, exchange-traded notes and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default and adverse tax treatment. • The Fund’s use of short selling involves increased risk and costs, including paying more for a security than it received from its sale and the risk of unlimited losses. • The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • The Fund’s investments in foreign markets may increase the Fund’s volatility due to the impact of diplomatic, political or economic developments on the country in question. • Additionally, the Fund’s 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 currencies. • The Fund’s fixed income investments will change in value in response to interest rate changes and other factors. • The Fund’s exposure to the high yield bond market may subject the Fund to greater volatility because (i) it will be affected by the ability

2 | THE RYDEX FUNDS ANNUAL REPORT

 March 31, 2015

of high yield security issuers’ ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. • The Fund’s exposure to the event driven market is considered speculative and may subject the Fund to additional losses. • In certain circumstances the Fund may be subject to liquidity risk and it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. • This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified Fund. See the prospectus for more information on these and additional risks.

Inverse and leveraged Funds are not suitable for all investors. • These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. • The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. • The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. • Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. • Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. • For more on these and other risks, please read the prospectus. • The leveraged and Inverse Emerging Markets Funds’ investments in developed and emerging foreign markets may increase the Funds’ volatility due to the impact of diplomatic, political or economic developments on the country in question. • Additionally, the Funds’ direct and indirect exposure to foreign currencies subjects the Funds to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. • A Fund’s investment in the securities of non-U.S. companies in the form of American Depositary Receipts (ADRs) poses special risks associated with international investing, including fluctuating exchange rates, government regulations and differences in liquidity, which may affect the volatility and performance of a fund.

The Emerging Markets Bond Strategy Fund may not be suitable for all investors. Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the Fund may lose money. • The Fund’s investments in bonds and financial instruments that in combination have economic characteristics similar to emerging markets bonds carries additional risks when compared to investing in U.S. securities, due to the impact of diplomatic, political or economic developments in the country in question. • The Fund’s investments in derivatives, including credit default swaps, may pose risks in addition to those associated with investing directly in securities or other investments, including illiquidity of the derivatives, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, lack of availability and counterparty risk. To the extent the Fund invests in derivatives to seek to hedge risk or limit leveraged exposure created by other investments, there is no guarantee that such hedging strategies will be effective at managing risk or limiting exposure to leveraged investments. • The Fund’s exposure to high yield securities may subject the Fund to greater volatility. • The Fund’s market value will change in response to interest rate changes and market conditions among other factors. In general, bond prices rise when interest rates fall and vice versa. • The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. • The Funds use of leverage will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund’s portfolio. • The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. • The Fund’s investments in other investment vehicles subject the Fund to those risks and expenses affecting the investment vehicle. • This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. • See the prospectus for more information on these and other risks.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2015

The U.S. continued to enjoy a self-sustaining economic expansion for the 12-month period ended March 31, 2015, although winter weather was likely to distort first-quarter economic data. In addition, U.S. companies scaled back hiring in the last month of the period, adding to evidence that the domestic economy has lost some momentum since the turn of the year. The March increase in payrolls was the smallest since December 2013 and broke a 12-month run of gains above 200,000.

Despite this short-term dislocation, the economy remains on track. Indeed, many other labor market indicators, such as initial jobless claims and the job openings rate, suggest that the U.S. labor market remains quite strong, supporting the conclusion that March’s payroll report was just a temporary blip, similar to the one witnessed last winter. As soon as temporary seasonal factors have dissipated, economic data is likely to bounce back. The labor market has improved over the past year, as subdued mortgage rates and tight housing inventory continue to point to fairly stable appreciation in the housing market, which is key to the ongoing recovery. Consumers are also being helped by lower fuel prices, which are acting as a tax cut for U.S. consumers, freeing up discretionary spending in other areas and acting as a support for consumption.

In Europe, economic data has been surprisingly good and should continue along that path on the back of the European Central Bank’s program of quantitative easing and depreciation of the euro. Japan’s economy remains weak and, without more structural reform, continued monetary accommodation could lead to stagflation. China’s policymakers appear likely to continue the supply of credit and do whatever else is necessary to maintain growth there at an acceptable pace for the near term.

Given weakness overseas and the effect of a stronger U.S. dollar on international earnings, some stocks could face a more challenging environment in the near term, but our research shows that equity markets tend to perform quite well in the periods leading up to a U.S. Federal Reserve (the “Fed”) rate increase. The yield on the 10-year Treasury note declined in January by more than 50 basis points before rebounding in February, echoing the pattern since 2009—Treasury yields decline and a sell-off ensues, driving rates higher. Then conditions stabilize, and rates test their previous lows. Liquidity from foreign central banks and comparatively attractive U.S. yields continue to push global investors to U.S. Treasuries, which should hold down U.S. interest rates in the near term.

Against this backdrop, the U.S. central bank feels pressure to raise its key rate above zero, but insists the decision will be data-dependent and not occur prematurely. With a secular inflation increase unlikely in the near term, slack in the economy, and disinflation being imported from abroad, the Fed may not hike rates until later in the year. The Fed for now appears to be focused on wage growth, which is key for sustaining the expansion but also an indicator of inflationary pressure. The lack of sustained wage growth has been a topic that has confounded the Fed lately. Given the strengthening employment numbers and the apparent reduction in labor market slack, wages should start to increase more steadily across the board. This is one of the most important data points at the moment for the Fed.

The underlying U.S. economy remains strong and investors should avoid being panicked by seasonal setbacks. Indeed, considering the strength of the economy and the wave of liquidity emanating from various central banks around the world, the general investment environment should remain attractive.

For the 12 months ended March 31, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned 12.73%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -0.92%. The return of the MSCI Emerging Markets Index* was 0.44%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a 5.72% return for the period, while the Barclays U.S. Corporate High Yield Index* returned 2.00%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.03% for the 12-month period.

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2015

*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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

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

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

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

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

S&P 500^® Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad economy, representing all major industries and is considered a representation of the U.S. stock market.

BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index tracks the performance of U.S. dollar-denominated emerging market and cross-over sovereign debt publicly issued in the eurobond or U.S. domestic market. Qualifying countries must have a BBB1 or lower foreign currency long-term sovereign debt rating (based on an average of Moody’s, S&P and Fitch). Countries that are not rated, or that are rated “D” or “SD” by one or several rating agencies qualify for inclusion in the index but individual non-performing securities are removed. Qualifying securities must have at least one year remaining term to final maturity, at least 18 months to maturity at point of issuance, a fixed or floating coupon and a minimum amount outstanding of $250 million. Local currency debt is excluded from the Index. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest.

BNY Mellon Emerging Markets 50 ADR Index is capitalization-weighted and designed to track the performance of approximately 50 emerging market-based depositary receipts.

Credit Suisse Event Driven Liquid Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of event driven hedge fund managers, as represented by the Event Driven sector of the Dow Jones Credit Suisse Hedge Fund Index.

HFRX Equity Hedge Index is designed to be representative of the overall composition of the equity hedge segment of the hedge fund universe. In an equity hedge strategy both long and short positions primarily in equities are maintained. Equities which are believed to be undervalued are bought and equities which are believed to be overvalued are sold.

Russell 3000^® Index measures the performance of the largest 3000 U.S. companies, representing approximately 98% of the investable U.S. equity market.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, 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 September 30, 2014 and ending March 31, 2015.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	2.19%	10.38%	$1,000.00	$1,103.80	$11.49
C-Class	2.94%	9.99%	1,000.00	1,099.90	15.39
H-Class	2.19%	10.42%	1,000.00	1,104.20	11.49
Institutional Class	1.94%	10.53%	1,000.00	1,105.30	10.18
Event Driven and Distressed Strategies Fund
A-Class	1.91%	1.61%	1,000.00	1,016.10	9.60
C-Class	2.66%	1.21%	1,000.00	1,012.10	13.34
H-Class	1.91%	1.57%	1,000.00	1,015.70	9.60
Institutional Class	1.66%	1.70%	1,000.00	1,017.00	8.35
Emerging Markets 2x Strategy Fund
A-Class	1.73%	(20.70%)	1,000.00	793.00	7.73
C-Class	2.45%	(20.96%)	1,000.00	790.40	10.94
H-Class	1.74%	(20.72%)	1,000.00	792.80	7.78
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.75%	13.67%	1,000.00	1,136.70	9.32
C-Class	2.46%	13.02%	1,000.00	1,130.20	13.06
H-Class	1.72%	13.13%	1,000.00	1,131.30	9.14
Emerging Markets Bond Strategy Fund
A-Class	1.54%	(3.54%)	1,000.00	964.60	7.54
C-Class	2.15%	(3.89%)	1,000.00	961.10	10.51
H-Class	1.52%	(3.56%)	1,000.00	964.40	7.44

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2014	Ending Account Value March 31, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	2.19%	5.00%	$1,000.00	$1,014.01	$11.00
C-Class	2.94%	5.00%	1,000.00	1,010.27	14.74
H-Class	2.19%	5.00%	1,000.00	1,014.01	11.00
Institutional Class	1.94%	5.00%	1,000.00	1,015.26	9.75
Event Driven and Distressed Strategies Fund
A-Class	1.91%	5.00%	1,000.00	1,015.41	9.60
C-Class	2.66%	5.00%	1,000.00	1,011.67	13.34
H-Class	1.91%	5.00%	1,000.00	1,015.41	9.60
Institutional Class	1.66%	5.00%	1,000.00	1,016.65	8.35
Emerging Markets 2x Strategy Fund
A-Class	1.73%	5.00%	1,000.00	1,016.31	8.70
C-Class	2.45%	5.00%	1,000.00	1,012.72	12.29
H-Class	1.74%	5.00%	1,000.00	1,016.26	8.75
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.75%	5.00%	1,000.00	1,016.21	8.80
C-Class	2.46%	5.00%	1,000.00	1,012.67	12.34
H-Class	1.72%	5.00%	1,000.00	1,016.36	8.65
Emerging Markets Bond Strategy Fund
A-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
C-Class	2.15%	5.00%	1,000.00	1,014.21	10.80
H-Class	1.52%	5.00%	1,000.00	1,017.35	7.64

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 related to securities sold short. Excluding these expenses the operating expense ratios would be:

	Long Short Equity Fund
A-Class	1.64%
C-Class	2.39%
H-Class	1.39%
Institutional Class	1.64%

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 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2014 to March 31, 2015.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

For the one-year period ended March 31, 2015, the Long Short Equity Fund H-Class returned 7.21%. The Fund’s benchmark, the HFRX Equity Hedge Index, returned 2.37%, while the long-only Russell 3000 Index returned 12.36% over the same period.

The annualized risk for the fund was 7.5%, which was higher than the 5.1% annualized risk of the HFRX Equity Hedge Index, but still lower than the risk level of the Russell 3000 Index, which came in at 12.1%. On a risk-adjusted basis, the fund produced 4.55% of annual alpha relative to the HFRX Equity Hedge Index as the realized beta for the period was 1.13.

Both the factor and industry trend-based strategies used in the Fund contributed positively during the period. Risk factors contributed 2.29% to gross fund returns. Average long exposure to Relative Strength (a measure of momentum) contributed 1.69%, while average short exposure to Price Volatility (a measure of stock level standard deviation) contributed 0.61%. Average long exposures to Trading Activity (a measure of liquidity) and Market Capitalization (large capitalization equities) detracted -0.22% and -0.77%, respectively. Industry exposures contributed 1.84% to gross Fund returns, with average long exposures to Drug companies and Airlines contributing 1.55% and 0.44%, respectively, while average long exposures to Electrical Equipment and Oil Extraction companies detracted -0.28% and -0.33%, respectively.

Stock-specific risk (the residual return of each equity after accounting for the risk factor and industry exposures) contributed 2.34% to gross fund returns for the period. The Fund generally maintains a positive equity market bias and, given the strong equity returns over the period, resulted in equity market beta contributing 3.59% to gross fund return.

For the period, the Fund’s average long exposure was 78.6%, while its short exposure was -25.0%. This resulted in average gross exposure of 1.04% and net exposure of 53.6%. The Fund ended the period with long exposure of 85.3% and short exposure of -27.8%, which resulted in gross (net) exposure of 1.13% (57.5%). The Fund’s long exposures contributed slightly more than 10% to gross fund returns, while its short exposures marginally detracted more than -0.20%.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year period ended March 31, 2015, investment in the Guggenheim Strategy Funds has benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

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 I	6.5%
AutoZone, Inc.	0.6%
Catamaran Corp.	0.6%
Rite Aid Corp.	0.6%
Sabre Corp.	0.6%
ResMed, Inc.	0.6%
AmerisourceBergen Corp. — Class A	0.6%
Pinnacle Foods, Inc.	0.5%
Rollins, Inc.	0.5%
Analog Devices, Inc.	0.5%
Top Ten Total	11.6%
“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	5 Year	10 Year
A-Class Shares	7.23%	5.20%	4.83%
A-Class Shares with sales charge†	2.15%	4.18%	4.33%
C-Class Shares	6.40%	4.40%	4.06%
C-Class Shares with CDSC‡	5.40%	4.40%	4.06%
H-Class Shares	7.21%	5.20%	4.84%
HFRX Equity Hedge Index	2.37%	1.19%	0.69%
		1 Year	Since Inception (11/30/11)
Institutional Class Shares		7.48%	8.77%
HFRX Equity Hedge Index		2.37%	5.54%

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

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2015
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 86.1%
CONSUMER, NON-CYCLICAL - 33.3%
Catamaran Corp.*,1		4,411	$	262,633
Sabre Corp.		10,699		259,986
ResMed, Inc.1		3,564		255,824
AmerisourceBergen Corp. — Class A1		2,244		255,075
Pinnacle Foods, Inc.1		6,226		254,083
Rollins, Inc.1		10,200		252,246
Flowers Foods, Inc.1		11,007		250,299
BioMarin Pharmaceutical, Inc.*,1		2,000		249,241
Health Net, Inc.*,1		4,110		248,615
Anthem, Inc.1		1,600		247,056
Envision Healthcare Holdings, Inc.*,1		6,400		245,440
Mylan N.V.*,1		4,114		244,165
Alere, Inc.*,1		4,978		243,424
Halyard Health, Inc.*,1		4,911		241,622
Teleflex, Inc.1		1,999		241,539
Premier, Inc. — Class A*,1		6,405		240,700
Kroger Co.1		3,129		239,869
Hill-Rom Holdings, Inc.1		4,862		238,238
Cardinal Health, Inc.1		2,637		238,042
Towers Watson & Co. — Class A1		1,800		237,933
Jazz Pharmaceuticals plc*,1		1,367		236,204
Hologic, Inc.*,1		7,139		235,765
KAR Auction Services, Inc.1		6,200		235,166
Gartner, Inc.*,1		2,803		235,032
LifePoint Hospitals, Inc.*,1		3,170		232,837
Total System Services, Inc.1		6,100		232,715
Monster Beverage Corp.*,1		1,679		232,366
Medivation, Inc.*,1		1,796		231,810
Church & Dwight Company, Inc.1		2,710		231,488
Aaron’s, Inc.1		8,167		231,208
Myriad Genetics, Inc.*		6,500		230,100
Booz Allen Hamilton Holding Corp.1		7,946		229,957
Constellation Brands, Inc. — Class A*,1		1,978		229,863
Eli Lilly & Co.1		3,163		229,792
Seattle Genetics, Inc.*,1		6,498		229,704
Incyte Corp.*,1		2,500		229,150
Sprouts Farmers Market, Inc.*,1		6,498		228,925
Brown-Forman Corp. — Class B1		2,531		228,676
Coca-Cola Enterprises, Inc.1		5,167		228,381
Clorox Co.1		2,066		228,066
Centene Corp.*,1		3,218		227,480
Alnylam Pharmaceuticals, Inc.*,1		2,175		227,114
Community Health Systems, Inc.*,1		4,340		226,895
Dr Pepper Snapple Group, Inc.1		2,880		226,022
Sysco Corp.1		5,984		225,776
Regeneron Pharmaceuticals, Inc.*,1		500		225,740
Alexion Pharmaceuticals, Inc.*,1		1,300		225,290
Sirona Dental Systems, Inc.*,1		2,485		223,625
Patterson Companies, Inc.1		4,470		218,091
Molson Coors Brewing Co. — Class B1		2,926		217,841
ServiceMaster Global Holdings, Inc.*,1		6,432		217,080
Philip Morris International, Inc.1		2,860		215,444
Whole Foods Market, Inc.1		4,123		214,726
Henry Schein, Inc.*,1		1,534		214,177
Aetna, Inc.1		1,999		212,953
Ingredion, Inc.1		2,734		212,760
Vertex Pharmaceuticals, Inc.*,1		1,800		212,346
Omnicare, Inc.1		2,691		207,368
Align Technology, Inc.*,1		3,752		201,801
Vectrus, Inc.*,1		7,321		186,612
DeVry Education Group, Inc.1		5,147		171,704
Zoetis, Inc.1		3,391		156,969
Graham Holdings Co. — Class B1		149		156,395
Altria Group, Inc.1		2,945		147,309
Pilgrim’s Pride Corp.2		6,155		139,041
Johnson & Johnson1		1,300		130,780
DENTSPLY International, Inc.1		2,238		113,892
WhiteWave Foods Co. — Class A*,1		2,334		103,490
Service Corporation International1		3,589		93,493
VCA, Inc.*,1		1,593		87,328
Quest Diagnostics, Inc.1		791		60,788
Bristol-Myers Squibb Co.1		711		45,860
Perrigo Company plc1		161		26,654
Morningstar, Inc.1		300		22,473
Hain Celestial Group, Inc.*,1		318		20,368
Mallinckrodt plc*,1		136		17,224
Total Consumer, Non-cyclical				15,406,144
CONSUMER, CYCLICAL - 17.2%
AutoZone, Inc.*,1		400		272,864
Rite Aid Corp.*,1		30,001		260,708
Ulta Salon Cosmetics & Fragrance, Inc.*,1		1,668		251,618
Gaming and Leisure Properties, Inc.1		6,729		248,098
Ascena Retail Group, Inc.*,1		17,013		246,858
Brinker International, Inc.1		4,000		246,240
Taylor Morrison Home Corp. — Class A*,1		11,806		246,156
Kohl’s Corp.1		3,128		244,766
Sears Holdings Corp.*,2		5,883		243,439
JC Penney Company, Inc.*		28,939		243,377
Leggett & Platt, Inc.1		5,173		238,424
Dillard’s, Inc. — Class A1		1,739		237,391
Jarden Corp.*,1		4,487		237,362
Choice Hotels International, Inc.1		3,700		237,059
NVR, Inc.*,1		178		236,501
GNC Holdings, Inc. — Class A1		4,819		236,468
Penske Automotive Group, Inc.1		4,592		236,442
Walgreens Boots Alliance, Inc.1		2,787		236,003
Sally Beauty Holdings, Inc.*,1		6,850		235,435
Tractor Supply Co.1		2,766		235,276
Newell Rubbermaid, Inc.1		6,017		235,084
Tempur Sealy International, Inc.*,1		4,021		232,173
CVS Health Corp.1		2,249		232,119
Chico’s FAS, Inc.1		13,115		232,004
Michaels Companies, Inc.*,1		8,539		231,065

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
LONG SHORT EQUITY FUND

	Shares		Value
Harman International Industries, Inc.1		1,717	$	229,443
DSW, Inc. — Class A1		6,202		228,730
Regal Entertainment Group — Class A1		10,000		228,400
Big Lots, Inc.1		4,753		228,287
Whirlpool Corp.1		1,054		212,971
CST Brands, Inc.1		4,701		206,045
Nordstrom, Inc.1		2,348		188,591
Hyatt Hotels Corp. — Class A*,1		2,700		159,894
Restaurant Brands International, Inc.1		3,700		142,117
O’Reilly Automotive, Inc.*,1		300		64,872
Dick’s Sporting Goods, Inc.1		1,085		61,834
Total Consumer, Cyclical				7,984,114
TECHNOLOGY - 11.1%
Analog Devices, Inc.1		4,000		251,999
MSCI, Inc. — Class A1		4,100		251,371
DST Systems, Inc.1		2,256		249,763
Jack Henry & Associates, Inc.1		3,492		244,056
Pitney Bowes, Inc.1		10,400		242,528
Amdocs Ltd.1		4,400		239,360
Broadridge Financial Solutions, Inc.1		4,333		238,358
Fidelity National Information Services, Inc.1		3,500		238,210
VeriFone Systems, Inc.*,1		6,744		235,298
Teradyne, Inc.1		11,984		225,898
Linear Technology Corp.1		4,800		224,640
Maxim Integrated Products, Inc.1		6,434		223,968
KLA-Tencor Corp.1		3,800		221,502
Microchip Technology, Inc.1		4,522		221,126
Altera Corp.1		5,100		218,841
Leidos Holdings, Inc.1		5,200		218,192
Zayo Group Holdings, Inc.*,1		7,715		215,711
Atmel Corp.1		26,110		214,885
NVIDIA Corp.1		10,200		213,435
Advanced Micro Devices, Inc.*,1		78,600		210,648
Teradata Corp.*,1		4,416		194,922
ON Semiconductor Corp.*,1		15,054		182,304
Cree, Inc.*,1		4,700		166,803
Marvell Technology Group Ltd.1		1,178		17,317
Total Technology				5,161,135
FINANCIAL - 9.9%
CoreLogic, Inc.*,1		6,718		236,943
Plum Creek Timber Company, Inc.1		5,407		234,935
Two Harbors Investment Corp.1		21,762		231,113
Starwood Property Trust, Inc.1		9,434		229,246
Outfront Media, Inc.1		7,624		228,110
First Niagara Financial Group, Inc.1		25,800		228,071
Rayonier, Inc.1		8,441		227,569
Artisan Partners Asset Management, Inc. — Class A1		4,804		218,390
FNFV Group*,1		15,465		218,057
MFA Financial, Inc.1		27,618		217,077
Piedmont Office Realty Trust, Inc. — Class A1		11,564		215,206
Home Properties, Inc.1		3,088		213,968
Chimera Investment Corp.1		67,955		213,379
American Homes 4 Rent — Class A1		12,800		211,840
American National Insurance Co.1		2,137		210,259
CBOE Holdings, Inc.1		3,513		201,664
Old Republic International Corp.1		12,418		185,525
Weyerhaeuser Co.1		5,559		184,281
Corporate Office Properties Trust1		5,749		168,906
Columbia Property Trust, Inc.1		4,795		129,561
Genworth Financial, Inc. — Class A*,1		16,991		124,204
American Realty Capital Properties, Inc.1		9,565		94,215
Interactive Brokers Group, Inc. — Class A1		2,654		90,289
NASDAQ OMX Group, Inc.1		1,334		67,954
American Capital Agency Corp.1		600		12,798
Total Financial				4,593,560
INDUSTRIAL - 9.6%
Hexcel Corp.1		4,800		246,816
Spirit AeroSystems Holdings, Inc. — Class A*,1		4,702		245,491
TransDigm Group, Inc.1		1,112		243,217
Huntington Ingalls Industries, Inc.1		1,700		238,255
Energizer Holdings, Inc.1		1,716		236,894
Covanta Holding Corp.1		10,528		236,143
Eagle Materials, Inc.1		2,800		233,968
Gentex Corp.1		12,785		233,966
Con-way, Inc.1		5,200		229,476
Triumph Group, Inc.1		3,840		229,325
Greif, Inc. — Class A1		5,833		229,062
Clean Harbors, Inc.*,1		4,019		228,199
Sonoco Products Co.1		5,014		227,936
Vulcan Materials Co.1		2,700		227,610
Textron, Inc.1		5,100		226,083
Martin Marietta Materials, Inc.1		1,600		223,680
Rockwell Collins, Inc.1		2,300		222,065
Tech Data Corp.*,1		3,771		217,851
Garmin Ltd.1		4,256		202,245
GoPro, Inc. — Class A*,2		1,410		61,208
Total Industrial				4,439,490
COMMUNICATIONS - 2.8%
Clear Channel Outdoor Holdings, Inc. — Class A1		24,108		243,973
Starz — Class A*,1		6,900		237,429
News Corp. — Class A*,1		13,600		217,736
Windstream Holdings, Inc.2		28,190		208,605
CenturyLink, Inc.1		5,749		198,628
JDS Uniphase Corp.*,1		13,200		173,184
Total Communications				1,279,555
ENERGY - 1.0%
CVR Energy, Inc.		5,700		242,591
Murphy USA, Inc.*,1		3,288		237,953
Total Energy				480,544

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
LONG SHORT EQUITY FUND

	Shares		Value
UTILITIES - 0.4%
Great Plains Energy, Inc.1		7,792	$	207,890
DIVERSIFIED - 0.4%
Leucadia National Corp.1		7,800		173,862
BASIC MATERIALS - 0.4%
Axalta Coating Systems Ltd.*,1		6,100		168,482
Total Common Stocks
(Cost $37,831,629)				39,894,776
MUTUAL FUNDS†,3 - 6.6%
Guggenheim Strategy Fund I		121,862		3,034,367
Guggenheim Strategy Fund II		561		13,978
Total Mutual Funds
(Cost $3,056,748)				3,048,345
	Face Amount
REPURCHASE AGREEMENTS††,4 - 5.8%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	2,130,485		2,130,485
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		325,583		325,583
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		261,334		261,334
Total Repurchase Agreements
(Cost $2,717,402)				2,717,402
SECURITIES LENDING COLLATERAL††,5 - 1.3%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		385,251		385,251
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		132,526		132,526
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		68,406		68,406
Total Securities Lending Collateral
(Cost $586,183)				586,183
Total Investments - 99.8%
(Cost $44,191,962)			$	46,246,706
		Shares
COMMON STOCKS SOLD SHORT† - (25.0)%
UTILITIES - (0.5)%
AES Corp.		7,868		(101,104	)
Calpine Corp.*		5,158		(117,963	)
Total Utilities				(219,067	)
TECHNOLOGY - (1.0)%
EMC Corp.		2,189		(55,951	)
SanDisk Corp.		1,404		(89,322	)
athenahealth, Inc.*		860		(102,675	)
Cerner Corp.*		1,500		(109,890	)
Apple, Inc.		904		(112,485	)
Total Technology				(470,323	)
CONSUMER, NON-CYCLICAL - (1.3)%
Avon Products, Inc.		12,788		(102,176	)
United Rentals, Inc.*		1,257		(114,588	)
Quanta Services, Inc.*		4,041		(115,290	)
Estee Lauder Companies, Inc. — Class A		1,395		(116,008	)
Coty, Inc. — Class A*		5,088		(123,486	)
Total Consumer, Non-cyclical				(571,548	)
CONSUMER, CYCLICAL - (1.7)%
Tesla Motors, Inc.*		90		(16,989	)
TJX Companies, Inc.		782		(54,779	)
WESCO International, Inc.*		1,050		(73,385	)
Allison Transmission Holdings, Inc.		3,252		(103,869	)
MSC Industrial Direct Company, Inc. — Class A		1,460		(105,412	)
Fossil Group, Inc.*		1,300		(107,185	)
Fastenal Co.		2,651		(109,844	)
Ford Motor Co.		6,821		(110,091	)
WW Grainger, Inc.		481		(113,424	)
Total Consumer, Cyclical				(794,978	)
BASIC MATERIALS - (2.1)%
Freeport-McMoRan, Inc.		3,487		(66,079	)
Alcoa, Inc.		7,260		(93,799	)
Newmont Mining Corp.		4,835		(104,968	)
Southern Copper Corp.		3,650		(106,507	)
Nucor Corp.		2,438		(115,878	)
Compass Minerals International, Inc.		1,247		(116,233	)
United States Steel Corp.		4,949		(120,756	)
Reliance Steel & Aluminum Co.		1,986		(121,305	)
Steel Dynamics, Inc.		6,285		(126,328	)
Total Basic Materials				(971,853	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
LONG SHORT EQUITY FUND

	Shares		Value
COMMUNICATIONS - (2.3)%
Liberty Global plc — Class A*		1,057	$	(54,404	)
Liberty Global plc*		1,097		(54,641	)
Google, Inc. — Class A*		99		(54,915	)
United States Cellular Corp.*		1,725		(61,617	)
Sprint Corp.*		17,422		(82,580	)
Yahoo!, Inc.*		2,004		(89,048	)
Netflix, Inc.*		230		(95,839	)
T-Mobile US, Inc.*		3,506		(111,105	)
Amazon.com, Inc.*		302		(112,374	)
Walt Disney Co.		1,106		(116,008	)
Facebook, Inc. — Class A*		1,432		(117,732	)
Priceline Group, Inc.*		103		(119,907	)
Total Communications				(1,070,170	)
FINANCIAL - (3.5)%
CIT Group, Inc.		191		(8,618	)
Equity Residential		539		(41,967	)
General Growth Properties, Inc.		1,761		(52,038	)
Bank of America Corp.		6,272		(96,526	)
Discover Financial Services		1,790		(100,867	)
Air Lease Corp. — Class A		2,770		(104,540	)
Capital One Financial Corp.		1,330		(104,831	)
JPMorgan Chase & Co.		1,776		(107,590	)
Simon Property Group, Inc.		551		(107,797	)
Public Storage		548		(108,033	)
American International Group, Inc.		1,979		(108,429	)
American Express Co.		1,406		(109,836	)
Wells Fargo & Co.		2,020		(109,888	)
Citigroup, Inc.		2,161		(111,335	)
People’s United Financial, Inc.		7,582		(115,246	)
New York Community Bancorp, Inc.		6,903		(115,487	)
TFS Financial Corp.		7,953		(116,750	)
Total Financial				(1,619,778	)
INDUSTRIAL - (4.6)%
Caterpillar, Inc.		821		(65,705	)
Flowserve Corp.		1,519		(85,808	)
Xylem, Inc.		2,476		(86,710	)
Teekay Corp.		2,022		(94,165	)
General Electric Co.		4,099		(101,696	)
GATX Corp.		1,770		(102,625	)
KBR, Inc.		7,326		(106,080	)
Hubbell, Inc. — Class B		970		(106,331	)
Dover Corp.		1,547		(106,929	)
SBA Communications Corp. — Class A*		946		(110,777	)
AMETEK, Inc.		2,109		(110,807	)
Stanley Black & Decker, Inc.		1,168		(111,380	)
Middleby Corp.*		1,089		(111,786	)
Kirby Corp.*		1,503		(112,800	)
Wabtec Corp.		1,196		(113,632	)
Fluor Corp.		2,002		(114,434	)
Jacobs Engineering Group, Inc.*		2,662		(120,216	)
AECOM*		3,905		(120,353	)
Acuity Brands, Inc.		723		(121,580	)
Chicago Bridge & Iron Company N.V.		2,853		(140,538	)
Total Industrial				(2,144,352	)
ENERGY - (8.0)%
California Resources Corp.		480		(3,653	)
Phillips 66		159		(12,497	)
WPX Energy, Inc.*		2,334		(25,511	)
Cimarex Energy Co.		342		(39,361	)
Range Resources Corp.		1,200		(62,448	)
Marathon Petroleum Corp.		682		(69,830	)
Rowan Companies plc — Class A		4,489		(79,500	)
Southwestern Energy Co.*		3,542		(82,139	)
Tesoro Corp.		937		(85,539	)
Atwood Oceanics, Inc.		3,449		(96,951	)
MRC Global, Inc.*		8,320		(98,592	)
CONSOL Energy, Inc.		3,584		(99,958	)
Occidental Petroleum Corp.		1,383		(100,959	)
Cabot Oil & Gas Corp. — Class A		3,487		(102,971	)
Oil States International, Inc.*		2,592		(103,084	)
Dril-Quip, Inc.*		1,514		(103,542	)
Exxon Mobil Corp.		1,222		(103,870	)
Antero Resources Corp.*		2,949		(104,159	)
Marathon Oil Corp.		3,999		(104,414	)
Hess Corp.		1,553		(105,402	)
Devon Energy Corp.		1,750		(105,543	)
ConocoPhillips		1,698		(105,717	)
Kosmos Energy Ltd.*		13,366		(105,725	)
Murphy Oil Corp.		2,275		(106,015	)
National Oilwell Varco, Inc.		2,139		(106,929	)
FMC Technologies, Inc.*		2,893		(107,070	)
Chevron Corp.		1,027		(107,814	)
EOG Resources, Inc.		1,176		(107,827	)
QEP Resources, Inc.		5,280		(110,088	)
Continental Resources, Inc.*		2,535		(110,703	)
Energen Corp.		1,695		(111,870	)

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
LONG SHORT EQUITY FUND

	Shares		Value
Gulfport Energy Corp.*		2,522	$	(115,785	)
Patterson-UTI Energy, Inc.		6,211		(116,612	)
Spectra Energy Corp.		3,230		(116,829	)
ONEOK, Inc.		2,433		(117,368	)
Concho Resources, Inc.*		1,016		(117,775	)
Equities Corp.		1,442		(119,498	)
Williams Companies, Inc.		2,400		(121,416	)
Newfield Exploration Co.*		3,584		(125,764	)
Total Energy				(3,720,728	)
Total Common Stocks Sold Short
(Proceeds $12,074,857)				(11,582,797	)
Total Securities Sold Short- (25.0)%
(Proceeds $12,074,857)			$	(11,582,797	)
Other Assets & Liabilities, net - 25.2%				11,672,868
Total Net Assets - 100.0%			$	46,336,777

*	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 March 31, 2015.
2	All or a portion of this security is on loan at March 31, 2015 — See Note 6.
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	Securities lending collateral — See Note 6.
	plc — Public Limited Company

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $566,423 of securities loaned (cost $40,888,377)	$	42,943,121
Repurchase agreements, at value (cost $3,303,585)		3,303,585
Total investments (cost $44,191,962)		46,246,706
Segregated cash with broker		12,322,772
Cash		1,860
Receivables:
Fund shares sold		72,380
Dividends		65,618
Securities lending income		4,396
Interest		2
Total assets		58,713,734
Liabilities:
Securities sold short, at value (proceeds $12,074,857)		11,582,797
Payable for:
Return of securities loaned		594,750
Fund shares redeemed		87,693
Management fees		34,207
Distribution and service fees		21,703
Transfer agent and administrative fees		9,502
Portfolio accounting fees		3,801
Securities purchased		3,635
Miscellaneous		38,869
Total liabilities		12,376,957
Commitments and contingent liabilities (Note 15)		—
Net assets	$	46,336,777
Net assets consist of:
Paid in capital	$	110,163,669
Accumulated net investment loss		(164,159	)
Accumulated net realized loss on investments		(66,209,537	)
Net unrealized appreciation on investments		2,546,804
Net assets	$	46,336,777
A-Class:
Net assets	$	6,062,975
Capital shares outstanding		375,248
Net asset value per share	$	16.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.97
C-Class:
Net assets	$	19,951,548
Capital shares outstanding		1,362,885
Net asset value per share	$	14.64
H-Class:
Net assets	$	20,020,071
Capital shares outstanding		1,234,980
Net asset value per share	$	16.21
Institutional Class:
Net assets	$	302,183
Capital shares outstanding		18,452
Net asset value per share	$	16.38

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $1,208)	$	771,567
Income from securities lending, net		66,871
Interest		865
Total investment income		839,303
Expenses:
Management fees		432,133
Transfer agent and administrative fees		120,037
Distribution and service fees:
A-Class		14,926
C-Class		203,473
H-Class		53,723
Portfolio accounting fees		48,014
Short sales dividend expense		176,876
Prime broker interest expense		69,268
Custodian fees		6,297
Trustees’ fees*		3,868
Line of credit fees		89
Miscellaneous		64,411
Total expenses		1,193,115
Net investment loss		(353,812	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,354,224
Futures contracts		(77,572	)
Securities sold short		(662,373	)
Net realized gain		3,614,279
Net change in unrealized appreciation (depreciation) on:
Investments		(1,183,744	)
Securities sold short		746,484
Net change in unrealized appreciation (depreciation)		(437,260	)
Net realized and unrealized gain		3,177,019
Net increase in net assets resulting from operations	$	2,823,207

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

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(353,812	)	$	(773,445	)
Net realized gain on investments		3,614,279			7,362,587
Net change in unrealized appreciation (depreciation) on investments		(437,260	)		(488,800	)
Net increase in net assets resulting from operations		2,823,207			6,100,342
Capital share transactions:
Proceeds from sale of shares
A-Class		2,265,846			4,913,621
C-Class		789,638			1,459,676
H-Class		3,875,899			16,322,796
Institutional Class		380,674			1,001
Cost of shares redeemed
A-Class		(4,148,005	)		(11,324,362	)
C-Class		(4,392,338	)		(5,045,687	)
H-Class		(14,347,395	)		(16,148,434	)
Institutional Class		(116,016	)		(1,055	)
Net decrease from capital share transactions		(15,691,697	)		(9,822,444	)
Net decrease in net assets		(12,868,490	)		(3,722,102	)
Net assets:
Beginning of year		59,205,267			62,927,369
End of year	$	46,336,777		$	59,205,267
Accumulated net investment loss at end of year	$	(164,159	)	$	(238,102	)
Capital share activity:
Shares sold
A-Class		147,669			345,762
C-Class		58,483			110,051
H-Class		251,585			1,125,572
Institutional Class		25,112			69
Shares redeemed
A-Class		(273,585	)		(816,705	)
C-Class		(320,706	)		(384,136	)
H-Class		(953,740	)		(1,129,156	)
Institutional Class		(7,468	)		(69	)
Net decrease in shares		(1,072,650	)		(748,612	)

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	15.07		$	13.48		$	13.28		$	14.28		$	12.59
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.13	)		(.05	)		.03			(.04	)
Net gain (loss) on investments (realized and unrealized)		1.15			1.72			.30			(1.03	)		1.73
Total from investment operations		1.09			1.59			.25			(1.00	)		1.69
Less distributions from:
Net investment income		—			—			(.05	)		—			—
Total distributions		—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—	c
Net asset value, end of period	$	16.16		$	15.07		$	13.48		$	13.28		$	14.28
Total Returnd		7.23	%		11.80	%		1.89	%		(7.00	%)		13.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,063		$	7,552		$	13,106		$	16,510		$	25,447
Ratios to average net assets:
Net investment income (loss)		(0.42	%)		(0.91	%)		(0.35	%)		0.21	%		(0.33	%)
Total expensesf,g		2.17	%		2.34	%		1.92	%		1.66	%		1.71	%
Portfolio turnover rate		331	%		256	%		183	%		190	%		231	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	13.76		$	12.40		$	12.31		$	13.33		$	11.85
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.24	)		(.14	)		(.07	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		1.04			1.60			.28			(.95	)		1.61
Total from investment operations		.88			1.36			.14			(1.02	)		1.48
Less distributions from:
Net investment income		—			—			(.05	)		—			—
Total distributions		—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—	c
Net asset value, end of period	$	14.64		$	13.76		$	12.40		$	12.31		$	13.33
Total Returnd		6.40	%		10.97	%		1.14	%		(7.65	%)		12.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,952		$	22,354		$	23,554		$	32,503		$	50,381
Ratios to average net assets:
Net investment income (loss)		(1.16	%)		(1.79	%)		(1.12	%)		(0.54	%)		(1.08	%)
Total expensesf,g		2.92	%		3.11	%		2.69	%		2.41	%		2.46	%
Portfolio turnover rate		331	%		256	%		183	%		190	%		231	%

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
Per Share Data
Net asset value, beginning of period	$	15.12		$	13.53		$	13.33		$	14.32		$	12.63
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.16	)		(.04	)		.03			(.04	)
Net gain (loss) on investments (realized and unrealized)		1.16			1.75			.29			(1.02	)		1.73
Total from investment operations		1.09			1.59			.25			(.99	)		1.69
Less distributions from:
Net investment income		—			—			(.05	)		—			—
Total distributions		—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—	c
Net asset value, end of period	$	16.21		$	15.12		$	13.53		$	13.33		$	14.32
Total Returnd		7.21	%		11.75	%		1.88	%		(6.91	%)		13.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,020		$	29,287		$	26,257		$	54,589		$	87,212
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(1.07	%)		(0.29	%)		0.20	%		(0.31	%)
Total expensesf,g		2.17	%		2.36	%		1.88	%		1.66	%		1.70	%
Portfolio turnover rate		331	%		256	%		183	%		190	%		231	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Period Ended March 31, 2012a
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		(—	)e		(.12	)		(.02	)		.06
Net gain (loss) on investments (realized and unrealized)		1.14			1.76			.31			.88
Total from investment operations		1.14			1.64			.29			.94
Less distributions from:
Net investment income		—			—			(.02	)		—
Total distributions		—			—			(.02	)		—
Net asset value, end of period	$	16.38		$	15.24		$	13.60		$	13.33
Total Returnd		7.48	%		12.06	%		2.15	%		7.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	302		$	12		$	11		$	11
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		(0.82	%)		(0.17	%)		1.29	%
Total expensesf,g		1.95	%		2.11	%		1.72	%		1.36	%
Portfolio turnover rate		331	%		256	%		183	%		190	%

a	Since commencement of operations: November 30, 2011. 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.
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.
e	Net investment loss is less than $0.01 per share.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:

	3/31/15	3/31/14	3/28/13	3/31/12	3/31/11
A-Class	1.66%	1.68%	1.65%	1.66%	1.69%
C-Class	2.41%	2.42%	2.40%	2.41%	2.44%
H-Class	1.66%	1.67%	1.65%	1.66%	1.69%
Institutional Class	1.40%	1.42%	1.41%	N/A	N/A

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

OBJECTIVE: Seeks to achieve capital growth.

The Event Driven and Distressed Strategies Fund H-Class returned -1.18% for the one-year period ended March 31, 2015. By comparison, the S&P 500 Index returned 12.73% and the Credit Suisse Event Driven Liquid Index returned -1.02%.

The Fund gains exposure to event driven and distressed situations through various exposures, such as merger arbitrage, high yield, equities, and volatility. During the period, the Fund used derivatives, such as swaps and futures, as the primary instrument to gain exposure to these factors. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

The main positive drivers of performance were the illiquidity factor high yield and distressed equity exposures. Merger arbitrage was the main factor that contributed negatively to performance for the year. Throughout the year, the largest exposures were to high yield followed up by merger arbitrage and the illiquidity factor.

The Fund invests excess cash into the Guggenheim Strategy Funds which, in turn, invest in a diversified portfolio of debt securities and financial instruments providing exposure to fixed-income markets. The investment objective of the Guggenheim Strategy Funds is to seek a high level of income consistent with the preservation of capital. For the one-year period ended March 31, 2015, investment in the Guggenheim Strategy Funds has benefited Fund performance relative to investing in other short-term investments such as overnight repurchase agreements.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments or investments in Guggenheim Strategy Funds Trust mutual funds. Investments in those Funds do not provide “market exposure” to meet the fund’s investment objective, but will significantly increase the portfolio’s exposure to certain other asset categories (and their associated risks), which may cause the Fund to deviate from its principal investment strategy, including: (i) high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) CLOs and similar investments; and (iv) other short-term fixed income securities.

Inception Dates:
A-Class	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.

Ten Largest Holdings (% of Total Net Assets)
iShares iBoxx $ High Yield Corporate Bond ETF	21.3%
Guggenheim Strategy Fund II	11.7%
Guggenheim Strategy Fund I	11.6%
Lloyds Banking Group plc	0.5%
Valeant Pharmaceuticals International, Inc.	0.4%
General Motors Co.	0.3%
Royal Bank of Scotland Group plc	0.3%
Williams Companies, Inc.	0.2%
American Airlines Group, Inc.	0.2%
Delta Air Lines, Inc.	0.2%
Top Ten Total	46.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

22 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	Since Inception (06/30/10)
A-Class Shares	-1.18%	6.22%
A-Class Shares with sales charge†	-5.88%	5.13%
C-Class Shares	-1.92%	5.40%
C-Class Shares with CDSC‡	-2.85%	5.40%
H-Class Shares	-1.18%	6.22%
Institutional Class Shares	-0.96%	6.48%
Credit Suisse Event Driven Liquid Index	-1.02%	7.50%
S&P 500 Index	12.73%	18.26%

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

THE RYDEX FUNDS ANNUAL REPORT | 23

SCHEDULE OF INVESTMENTS	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
COMMON STOCKS† - 15.5%
CONSUMER, CYCLICAL - 3.3%
General Motors Co.		880	$	32,999
American Airlines Group, Inc.		380		20,056
Delta Air Lines, Inc.		440		19,782
Hilton Worldwide Holdings, Inc.*		530		15,698
L Brands, Inc.		160		15,086
United Continental Holdings, Inc.*		200		13,450
Royal Caribbean Cruises Ltd.		120		9,822
Best Buy Company, Inc.		190		7,180
Hanesbrands, Inc.		200		6,702
Wynn Resorts Ltd.		50		6,294
TRW Automotive Holdings Corp.*		60		6,290
Norwegian Cruise Line Holdings Ltd.*		110		5,941
Lennar Corp. — Class A		110		5,699
DR Horton, Inc.		200		5,696
Signet Jewelers Ltd.		40		5,552
MGM Resorts International*		250		5,258
Foot Locker, Inc.		80		5,040
Jarden Corp.*		95		5,026
Darden Restaurants, Inc.		70		4,854
Rite Aid Corp.*		540		4,693
PulteGroup, Inc.		200		4,446
Lear Corp.		40		4,433
PVH Corp.		40		4,262
LKQ Corp.*		160		4,089
Goodyear Tire & Rubber Co.		140		3,791
Toll Brothers, Inc.*		90		3,540
HD Supply Holdings, Inc.*		110		3,427
Allison Transmission Holdings, Inc.		90		2,875
Carter’s, Inc.		30		2,774
Sally Beauty Holdings, Inc.*		80		2,750
Dillard’s, Inc. — Class A		20		2,730
Cinemark Holdings, Inc.		60		2,704
Office Depot, Inc.*		290		2,668
Penske Automotive Group, Inc.		50		2,575
Brunswick Corp.		50		2,573
Six Flags Entertainment Corp.		50		2,421
GameStop Corp. — Class A		60		2,278
Gaming and Leisure Properties, Inc.		60		2,212
Wendy’s Co.		190		2,071
Sears Holdings Corp.*		50		2,069
Vail Resorts, Inc.		20		2,068
Scotts Miracle-Gro Co. — Class A		30		2,015
Allegiant Travel Co. — Class A		10		1,923
Choice Hotels International, Inc.		30		1,922
Dana Holding Corp.		90		1,904
Brinker International, Inc.		30		1,847
Regal Entertainment Group — Class A		80		1,827
AMC Entertainment Holdings, Inc. — Class A		50		1,775
CST Brands, Inc.		40		1,753
Tempur Sealy International, Inc.*		30		1,732
Tenneco, Inc.*		30		1,723
Cedar Fair, LP		30		1,722
Wolverine World Wide, Inc.		50		1,673
Asbury Automotive Group, Inc.*		20		1,662
Men’s Wearhouse, Inc.		30		1,566
Ryland Group, Inc.		30		1,462
Taylor Morrison Home Corp. — Class A*		70		1,460
WESCO International, Inc.*		20		1,398
TRI Pointe Homes, Inc.*		90		1,389
Standard Pacific Corp.*		150		1,350
JC Penney Company, Inc.*		160		1,346
Cooper Tire & Rubber Co.		30		1,285
DreamWorks Animation SKG, Inc. — Class A*		50		1,210
Navistar International Corp.*		40		1,180
Churchill Downs, Inc.		10		1,150
Pinnacle Entertainment, Inc.*		30		1,083
American Axle & Manufacturing Holdings, Inc.*		40		1,033
Ferrellgas Partners, LP		40		975
Meritage Homes Corp.*		20		973
First Cash Financial Services, Inc.*		20		930
Group 1 Automotive, Inc.		10		863
MDC Holdings, Inc.		30		855
Mobile Mini, Inc.		20		853
Boyd Gaming Corp.*		60		852
KB Home		50		781
Sonic Automotive, Inc. — Class A		30		747
Outerwall, Inc.		10		661
Brown Shoe Company, Inc.		20		656
Meritor, Inc.*		50		630
Penn National Gaming, Inc.*		40		626
Conn’s, Inc.*		20		606
Scientific Games Corp. — Class A*		50		524
William Lyon Homes — Class A*		20		516
H&E Equipment Services, Inc.		20		500
Perry Ellis International, Inc.*		20		463
National CineMedia, Inc.		30		453
Gol Linhas Aereas Inteligentes S.A. ADR*		160		389
Carmike Cinemas, Inc.*		10		336
Hovnanian Enterprises, Inc. — Class A*		80		285
Isle of Capri Casinos, Inc.*		20		281
Titan International, Inc.		30		281
WCI Communities, Inc.*		10		240
M/I Homes, Inc.*		10		238
Ruby Tuesday, Inc.*		30		180
Beazer Homes USA, Inc.*		10		177
Quiksilver, Inc.*		90		167
Christopher & Banks Corp.*		20		111
Bon-Ton Stores, Inc.		10		70
Total Consumer, Cyclical				320,483
CONSUMER, NON-CYCLICAL - 2.5%
Valeant Pharmaceuticals International, Inc.*		180		35,751
HCA Holdings, Inc.*		220		16,550
Fresenius Medical Care AG & Company KGaA ADR		330		13,678

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
Constellation Brands, Inc. — Class A*		100	$	11,621
DaVita HealthCare Partners, Inc.*		120		9,754
ConAgra Foods, Inc.		240		8,767
Hospira, Inc.*		90		7,906
Mallinckrodt plc*		60		7,599
Endo International plc*		80		7,176
Grifols S.A. ADR		200		6,562
Catamaran Corp.*		110		6,550
Universal Health Services, Inc. — Class B		50		5,886
Hertz Global Holdings, Inc.*		240		5,203
Salix Pharmaceuticals Ltd.*		30		5,184
Hologic, Inc.*		150		4,954
United Rentals, Inc.*		50		4,558
Centene Corp.*		60		4,241
WhiteWave Foods Co. — Class A*		90		3,990
Omnicare, Inc.		50		3,853
ADT Corp.		90		3,737
Avis Budget Group, Inc.*		60		3,541
Community Health Systems, Inc.*		60		3,137
Service Corporation International		110		2,866
Live Nation Entertainment, Inc.*		110		2,774
Spectrum Brands Holdings, Inc.		30		2,687
Tenet Healthcare Corp.*		50		2,476
Pinnacle Foods, Inc.		60		2,449
Health Net, Inc.*		40		2,420
Teleflex, Inc.		20		2,416
ServiceMaster Global Holdings, Inc.*		70		2,363
HealthSouth Corp.		50		2,218
Acadia Healthcare Company, Inc.*		30		2,148
WEX, Inc.*		20		2,147
Deluxe Corp.		30		2,079
Alere, Inc.*		40		1,956
RR Donnelley & Sons Co.		100		1,919
Amsurg Corp. — Class A*		30		1,846
Avon Products, Inc.		230		1,838
WellCare Health Plans, Inc.*		20		1,829
TreeHouse Foods, Inc.*		20		1,700
Sotheby’s		40		1,690
SUPERVALU, Inc.*		140		1,628
LifePoint Hospitals, Inc.*		20		1,469
Post Holdings, Inc.*		30		1,405
Owens & Minor, Inc.		40		1,354
Vector Group Ltd.		60		1,318
Prestige Brands Holdings, Inc.*		30		1,287
Darling Ingredients, Inc.*		90		1,261
Revlon, Inc. — Class A*		30		1,236
Kindred Healthcare, Inc.		47		1,118
Select Medical Holdings Corp.		70		1,038
B&G Foods, Inc.		30		883
ExamWorks Group, Inc.*		20		832
Dean Foods Co.		50		827
Rent-A-Center, Inc.		30		823
Cardtronics, Inc.*		20		752
FTI Consulting, Inc.*		20		749
Multi-Color Corp.		10		693
Quad/Graphics, Inc.		30		689
Diamond Foods, Inc.*		20		651
Stonemor Partners, LP		20		576
ACCO Brands Corp.*		60		499
Ingles Markets, Inc. — Class A		10		495
Cott Corp.		50		469
Hanger, Inc.*		20		454
Elizabeth Arden, Inc.*		20		312
SFX Entertainment, Inc.*		50		205
Great Lakes Dredge & Dock Corp.*		30		180
BioScrip, Inc.*		40		177
Total Consumer, Non-cyclical				245,399
FINANCIAL - 2.2%
Lloyds Banking Group plc ADR*		9,330		43,570
Royal Bank of Scotland Group plc ADR*		3,030		30,573
Crown Castle International Corp.		180		14,856
Discover Financial Services		250		14,088
Regions Financial Corp.		740		6,993
CBRE Group, Inc. — Class A*		180		6,968
SL Green Realty Corp.		50		6,419
Icahn Enterprises, LP		70		6,276
AerCap Holdings N.V.*		110		4,802
Unum Group		140		4,723
Navient Corp.		230		4,676
E*TRADE Financial Corp.*		160		4,569
CIT Group, Inc.		100		4,512
Iron Mountain, Inc.		110		4,013
Lazard Ltd. — Class A		70		3,681
Realogy Holdings Corp.*		80		3,638
Howard Hughes Corp.*		20		3,100
Lamar Advertising Co. — Class A		50		2,963
Omega Healthcare Investors, Inc.		70		2,840
Corrections Corporation of America		60		2,416
American Capital Ltd.*		150		2,219
Popular, Inc.*		60		2,063
Synovus Financial Corp.		70		1,961
Credit Acceptance Corp.*		10		1,950
CNO Financial Group, Inc.		110		1,894
First Horizon National Corp.		130		1,858
Ryman Hospitality Properties, Inc.		30		1,828
CoreLogic, Inc.*		50		1,763
GEO Group, Inc.		40		1,750
First Niagara Financial Group, Inc.		190		1,680
Radian Group, Inc.		100		1,679
Medical Properties Trust, Inc.		110		1,621
Hanover Insurance Group, Inc.		20		1,452
DuPont Fabros Technology, Inc.		40		1,307
Kennedy-Wilson Holdings, Inc.		50		1,307
Nationstar Mortgage Holdings, Inc.*		50		1,239
American Equity Investment Life Holding Co.		40		1,165

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
Ladder Capital Corp. — Class A*		60	$	1,111
Aviv REIT, Inc.		30		1,095
Sabra Health Care REIT, Inc.		30		995
Aircastle Ltd.		40		898
Potlatch Corp.		20		801
KCG Holdings, Inc. — Class A*		60		736
QTS Realty Trust, Inc. — Class A		20		728
PHH Corp.*		30		725
FelCor Lodging Trust, Inc.		60		689
iStar Financial, Inc.*		50		650
CyrusOne, Inc.		20		622
GFI Group, Inc.		70		415
Ladenburg Thalmann Financial Services, Inc.*		100		386
Walter Investment Management Corp.*		20		323
Forestar Group, Inc.*		20		315
Fly Leasing Ltd. ADR		20		291
Total Financial				215,192
COMMUNICATIONS - 2.0%
DISH Network Corp. — Class A*		250		17,514
Nokia Oyj ADR		1,980		15,009
T-Mobile US, Inc.*		440		13,944
Netflix, Inc.*		30		12,500
Charter Communications, Inc. — Class A*		60		11,587
Sirius XM Holdings, Inc.*		2,950		11,269
CenturyLink, Inc.		320		11,056
Level 3 Communications, Inc.*		180		9,691
Nielsen N.V.		200		8,914
Liberty Interactive Corp. — Class A*		260		7,589
Equinix, Inc.		30		6,986
Expedia, Inc.		70		6,589
Alcatel-Lucent ADR*		1,510		5,632
Interpublic Group of Companies, Inc.		220		4,866
Gannett Company, Inc.		120		4,450
VeriSign, Inc.*		60		4,018
Frontier Communications Corp.		550		3,878
CDW Corp.		90		3,352
AMC Networks, Inc. — Class A*		40		3,065
CommScope Holding Company, Inc.*		100		2,854
Cablevision Systems Corp. — Class A		150		2,745
IAC/InterActiveCorp		40		2,699
EchoStar Corp. — Class A*		50		2,586
Starz — Class A*		60		2,065
j2 Global, Inc.		30		1,970
Clear Channel Outdoor Holdings, Inc. — Class A		180		1,822
United States Cellular Corp.*		50		1,786
West Corp.		50		1,686
Sinclair Broadcast Group, Inc. — Class A		50		1,571
Anixter International, Inc.*		20		1,523
DigitalGlobe, Inc.*		40		1,363
New York Times Co. — Class A		90		1,238
ViaSat, Inc.*		20		1,192
Nexstar Broadcasting Group, Inc. — Class A		20		1,144
Media General, Inc.*		68		1,121
MDC Partners, Inc. — Class A		30		851
NeuStar, Inc. — Class A*		30		739
Cogent Communications Holdings, Inc.		20		707
Bankrate, Inc.*		60		680
Consolidated Communications Holdings, Inc.		30		612
Gray Television, Inc.*		30		415
Cincinnati Bell, Inc.*		110		388
Cumulus Media, Inc. — Class A*		130		321
General Communication, Inc. — Class A*		20		315
EarthLink Holdings Corp.		50		222
McClatchy Co. — Class A*		50		92
Dex Media, Inc.*		10		42
Total Communications				196,658
ENERGY - 2.0%
Williams Companies, Inc.		410		20,783
Energy Transfer Equity, LP		290		18,374
Concho Resources, Inc.*		60		6,954
MarkWest Energy Partners, LP		100		6,610
Cimarex Energy Co.		50		5,754
Tesoro Corp.		60		5,477
Cheniere Energy Partners, LP		180		5,393
ONEOK, Inc.		110		5,306
Chesapeake Energy Corp.		360		5,098
Regency Energy Partners, LP		220		5,031
Antero Resources Corp.*		140		4,945
Range Resources Corp.		90		4,684
Targa Resources Partners, LP		89		3,691
CONSOL Energy, Inc.		120		3,346
Dresser-Rand Group, Inc.*		40		3,214
Whiting Petroleum Corp.*		88		2,719
Energen Corp.		40		2,640
Western Refining, Inc.		50		2,470
Newfield Exploration Co.*		70		2,456
NuStar Energy, LP		40		2,428
Genesis Energy, LP		50		2,350
Equities Midstream Partners, LP		30		2,330
Diamondback Energy, Inc.*		30		2,305
Gulfport Energy Corp.*		50		2,296
TerraForm Power, Inc. — Class A		60		2,191
Tesoro Logistics, LP		40		2,152
CVR Energy, Inc.		50		2,129
Boardwalk Pipeline Partners, LP		130		2,093
QEP Resources, Inc.		100		2,085
SM Energy Co.		40		2,067
Memorial Resource Development Corp.*		110		1,951
SemGroup Corp. — Class A		20		1,627
Crestwood Midstream Partners, LP		110		1,596
Rice Energy, Inc.*		70		1,523
Carrizo Oil & Gas, Inc.*		30		1,490
Murphy USA, Inc.*		20		1,447
Baytex Energy Corp.		90		1,422
Ultra Petroleum Corp.*		90		1,407
Denbury Resources, Inc.		190		1,385

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
Exterran Holdings, Inc.		40	$	1,342
Suburban Propane Partners, LP		30		1,289
Northern Tier Energy, LP		50		1,267
WPX Energy, Inc.*		110		1,202
Bristow Group, Inc.		20		1,088
PDC Energy, Inc.*		20		1,081
Clayton Williams Energy, Inc.*		20		1,013
RSP Permian, Inc.*		40		1,008
Forum Energy Technologies, Inc.*		50		980
Summit Midstream Partners, LP		30		965
Calumet Specialty Products Partners, LP		40		962
Precision Drilling Corp.		150		951
Rose Rock Midstream, LP		20		950
Holly Energy Partners, LP		30		943
Laredo Petroleum, Inc.*		70		913
Atwood Oceanics, Inc.		30		843
Unit Corp.*		30		839
Memorial Production Partners, LP		50		811
Exterran Partners, LP		30		748
Bonanza Creek Energy, Inc.*		30		740
Peabody Energy Corp.		150		737
Oasis Petroleum, Inc.*		50		711
Vanguard Natural Resources LLC		50		699
SEACOR Holdings, Inc.*		10		697
LinnCo LLC		70		670
SunCoke Energy, Inc.		40		598
BreitBurn Energy Partners, LP		109		597
Rosetta Resources, Inc.*		30		511
McDermott International, Inc.*		130		499
Natural Resource Partners, LP		70		475
Ocean Rig UDW, Inc.		70		462
Stone Energy Corp.*		30		440
Pacific Drilling S.A.*		110		428
SunCoke Energy Partners, LP		20		426
SandRidge Energy, Inc.*		230		409
Legacy Reserves, LP		40		405
EV Energy Partners, LP		30		400
Sanchez Energy Corp.*		30		390
CSI Compressco, LP		20		385
Halcon Resources Corp.*		230		354
Atlas Resource Partners, LP		40		308
Magnum Hunter Resources Corp.*		110		294
EXCO Resources, Inc.		160		293
Jones Energy, Inc. — Class A*		30		269
Westmoreland Coal Co.*		10		268
Gulfmark Offshore, Inc. — Class A		20		261
Penn Virginia Corp.*		40		259
Bill Barrett Corp.*		30		249
Northern Oil and Gas, Inc.*		30		231
Parker Drilling Co.*		60		209
W&T Offshore, Inc.		40		204
Triangle Petroleum Corp.*		40		201
ION Geophysical Corp.*		90		195
Cloud Peak Energy, Inc.*		30		175
Pioneer Energy Services Corp.*		30		163
Key Energy Services, Inc.*		80		146
Basic Energy Services, Inc.*		20		139
Approach Resources, Inc.*		20		132
Seventy Seven Energy, Inc.*		30		125
Rex Energy Corp.*		30		112
Alpha Natural Resources, Inc.*,1		110		110
Comstock Resources, Inc.		30		107
Gastar Exploration, Inc.*		40		105
Arch Coal, Inc.*		100		100
PetroQuest Energy, Inc.*		40		92
Goodrich Petroleum Corp.*		20		71
Paragon Offshore plc		50		65
Swift Energy Co.*		20		43
Warren Resources, Inc.*		40		36
Walter Energy, Inc.		40		25
Resolute Energy Corp.*		40		23
Niska Gas Storage Partners LLC — Class U		10		18
Total Energy				188,475
INDUSTRIAL - 1.4%
SBA Communications Corp. — Class A*		70		8,197
TransDigm Group, Inc.		30		6,562
Vulcan Materials Co.		70		5,901
Martin Marietta Materials, Inc.		40		5,592
Sensata Technologies Holding N.V.*		90		5,171
Masco Corp.		190		5,073
Sealed Air Corp.		110		5,011
Ball Corp.		70		4,945
Huntington Ingalls Industries, Inc.		30		4,205
Flextronics International Ltd.*		310		3,929
Crown Holdings, Inc.*		70		3,781
Spirit AeroSystems Holdings, Inc. — Class A*		70		3,655
Trinity Industries, Inc.		80		2,842
Zebra Technologies Corp. — Class A*		30		2,721
Owens Corning		60		2,604
Graphic Packaging Holding Co.		170		2,472
AECOM*		80		2,465
Exelis, Inc.		100		2,436
Jabil Circuit, Inc.		100		2,338
Orbital ATK, Inc.		30		2,299
Esterline Technologies Corp.*		20		2,288
USG Corp.*		80		2,136
Owens-Illinois, Inc.*		90		2,099
Oshkosh Corp.		40		1,951
Belden, Inc.		20		1,871
Teekay Corp.		40		1,863
XPO Logistics, Inc.*		40		1,819
Triumph Group, Inc.		30		1,792
Nortek, Inc.*		20		1,765
Silgan Holdings, Inc.		30		1,744
Clean Harbors, Inc.*		30		1,703

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
SPX Corp.		20	$	1,698
Abengoa S.A. ADR		90		1,631
Covanta Holding Corp.		70		1,570
Manitowoc Company, Inc.		70		1,509
Moog, Inc. — Class A*		20		1,501
Masonite International Corp.*		20		1,345
Terex Corp.		50		1,330
Louisiana-Pacific Corp.*		80		1,321
Greif, Inc. — Class A		30		1,178
Park-Ohio Holdings Corp.		20		1,053
Dycom Industries, Inc.*		20		977
Sanmina Corp.*		40		968
Hillenbrand, Inc.		30		926
MasTec, Inc.*		40		772
Boise Cascade Co.*		20		749
Headwaters, Inc.*		40		734
Actuant Corp. — Class A		30		712
Martin Midstream Partners, LP		20		709
Tutor Perini Corp.*		30		701
GenCorp, Inc.*		30		696
NCI Building Systems, Inc.*		40		691
Harsco Corp.		40		690
EnPro Industries, Inc.		10		660
AAR Corp.		20		614
Griffon Corp.		30		523
Ply Gem Holdings, Inc.*		40		520
Ducommun, Inc.*		20		518
General Cable Corp.		30		517
LSB Industries, Inc.*		10		413
Briggs & Stratton Corp.		20		411
Hornbeck Offshore Services, Inc.*		20		376
Builders FirstSource, Inc.*		50		334
Gibraltar Industries, Inc.*		20		328
GrafTech International Ltd.*		80		311
Navios Maritime Acquisition Corp.		80		283
Columbus McKinnon Corp.		10		269
Navios Maritime Holdings, Inc.		60		251
Era Group, Inc.*		10		208
Kratos Defense & Security Solutions, Inc.*		30		166
Quality Distribution, Inc.*		10		103
CHC Group Ltd.*		40		53
AM Castle & Co.*		10		37
Total Industrial				133,586
TECHNOLOGY - 0.7%
Micron Technology, Inc.*		570		15,463
NXP Semiconductor N.V.*		120		12,043
Activision Blizzard, Inc.		380		8,636
Freescale Semiconductor Ltd.*		170		6,929
IHS, Inc. — Class A*		40		4,551
Open Text Corp.		70		3,702
MSCI, Inc. — Class A		60		3,679
Brocade Communications Systems, Inc.		230		2,729
NCR Corp.*		90		2,656
Nuance Communications, Inc.*		180		2,583
Solera Holdings, Inc.		40		2,066
IGATE Corp.*		40		1,706
ACI Worldwide, Inc.*		60		1,300
Amkor Technology, Inc.*		130		1,149
Entegris, Inc.*		70		959
MedAssets, Inc.*		40		753
Unisys Corp.*		30		696
Magnachip Semiconductor Corp.*		20		109
Total Technology				71,709
BASIC MATERIALS - 0.7%
Alcoa, Inc.		650		8,398
ArcelorMittal1		890		8,384
Ashland, Inc.		40		5,091
Celanese Corp. — Class A		80		4,468
WR Grace & Co.*		40		3,955
Huntsman Corp.		140		3,104
Steel Dynamics, Inc.		130		2,613
Platform Specialty Products Corp.*		100		2,566
United States Steel Corp.		80		1,952
Axiall Corp.		40		1,878
PolyOne Corp.		50		1,868
Compass Minerals International, Inc.		20		1,864
Eldorado Gold Corp.		360		1,653
Chemtura Corp.*		50		1,365
Olin Corp.		40		1,282
Neenah Paper, Inc.		20		1,250
Tronox Ltd. — Class A		60		1,220
Constellium N.V. — Class A*		60		1,219
Commercial Metals Co.		60		971
New Gold, Inc.*		280		949
Resolute Forest Products, Inc.*		50		863
Kaiser Aluminum Corp.		10		769
Century Aluminum Co.*		50		690
Clearwater Paper Corp.*		10		653
Hecla Mining Co.		200		596
PH Glatfelter Co.		20		551
Mercer International, Inc.*		30		461
AK Steel Holding Corp.*		100		447
Kraton Performance Polymers, Inc.*		20		404
AuRico Gold, Inc.		140		388
Cliffs Natural Resources, Inc.		80		385
Horsehead Holding Corp.*		30		380
IAMGOLD Corp.*		190		355
Rentech Nitrogen Partners, LP		20		301
Coeur Mining, Inc.*		60		283
Koppers Holdings, Inc.		10		197
Thompson Creek Metals Company, Inc.*		110		145
Ryerson Holding Corp.*		20		127
Noranda Aluminum Holding Corp.		40		119
Total Basic Materials				64,164

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
UTILITIES - 0.6%
Exelon Corp.		460	$	15,460
Eversource Energy		170		8,588
FirstEnergy Corp.		230		8,064
AES Corp.		380		4,883
Calpine Corp.*		200		4,574
NRG Energy, Inc.		180		4,534
AmeriGas Partners, LP		50		2,387
Dynegy, Inc.*		70		2,200
NRG Yield, Inc. — Class A		40		2,029
NGL Energy Partners, LP		50		1,312
Global Partners, LP		20		696
Atlantic Power Corp.		60		169
Total Utilities				54,896
DIVERSIFIED - 0.1%
Leucadia National Corp.		200		4,458
HRG Group, Inc.*		110		1,373
Total Diversified				5,831
Total Common Stocks
(Cost $1,412,603)				1,496,393
EXCHANGE-TRADED FUNDS† - 21.3%
iShares iBoxx $ High Yield Corporate Bond ETF		22,700		2,056,847
Total Exchange-Traded Funds
(Cost $1,984,813)				2,056,847
MUTUAL FUNDS†,2 - 23.2%
Guggenheim Strategy Fund II		45,233		1,126,742
Guggenheim Strategy Fund I		44,935		1,118,885
Total Mutual Funds
(Cost $2,251,121)				2,245,627

	Face Amount
REPURCHASE AGREEMENTS††,3 - 28.8%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	2,182,160		2,182,160
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		333,480		333,480
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		267,673		267,673
Total Repurchase Agreements
(Cost $2,783,313)				2,783,313
SECURITIES LENDING COLLATERAL††,4 - 0.0%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15		2,656		2,656
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		914		914
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		471		471
Total Securities Lending Collateral
(Cost $4,041)				4,041
Total Investments - 88.8%
(Cost $8,435,891)			$	8,586,221
Other Assets & Liabilities, net - 11.2%				1,078,233
Total Net Assets - 100.0%			$	9,664,454

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Contracts		Unrealized Gain (Loss)
INTEREST RATE FUTURES CONTRACTS PURCHASED†
June 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $5,649,547)		47	$	32,784
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $749,520)		6	$	23,371
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse International, LLC June 2015 Credit Suisse Merger Arbitrage Liquid Index Swap, Terminating 06/19/155 (Notional Value $3,581,682)		3,278	$	(2,040	)

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS PROTECTION SOLD††,6
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Paid	Unrealized Appreciation
CDX.HY-23 Index	Barclays Bank plc	5.00%	06/20/20	$1,900,000	$(2,034,212)	$127,784	$6,428
CDX.HY-23 Index	Goldman Sachs International	5.00%	06/20/20	4,600,000	(4,924,936)	313,734	11,202

*	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 March 31, 2015 — 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	Total Return based on Credit Suisse Merger Arbitrage Liquid Index +/- financing at a variable rate.
6	Credit Default Swaps — See Note 7.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $3,868 of securities loaned (cost $5,648,537)	$	5,798,867
Repurchase agreements, at value (cost $2,787,354)		2,787,354
Total investments (cost $8,435,891)		8,586,221
Foreign currency, at value (cost $1)		1
Segregated cash with broker		790,241
Unamortized upfront premiums paid on credit default swaps		441,518
Unrealized appreciation on swap agreements		17,630
Receivables:
Fund shares sold		57,882
Protection fees on credit default swaps		10,836
Variation margin		7,740
Dividends		3,578
Investment adviser		291
Securities lending income		3
Total assets		9,915,941
Liabilities:
Segregated cash due to broker		137,913
Unrealized depreciation on swap agreements		2,040
Payable for:
Fund shares redeemed		79,970
Management fees		7,076
Return of securities loaned		4,100
Securities purchased		2,735
Distribution and service fees		1,966
Transfer agent and administrative fees		1,966
Portfolio accounting fees		786
Miscellaneous		12,935
Total liabilities		251,487
Commitments and contingent liabilities (Note 15)		—
Net assets	$	9,664,454
Net assets consist of:
Paid in capital	$	9,954,072
Undistributed net investment income		121,207
Accumulated net realized loss on investments		(632,900	)
Net unrealized appreciation on investments		222,075
Net assets	$	9,664,454
A-Class:
Net assets	$	1,370,896
Capital shares outstanding		51,118
Net asset value per share	$	26.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.16
C-Class:
Net assets	$	1,230,245
Capital shares outstanding		47,799
Net asset value per share	$	25.74
H-Class:
Net assets	$	3,317,805
Capital shares outstanding		123,711
Net asset value per share	$	26.82
Institutional Class:
Net assets	$	3,745,508
Capital shares outstanding		137,842
Net asset value per share	$	27.17

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $46)	$	106,572
Income from securities lending, net		1,052
Interest		677
Total investment income		108,301
Expenses:
Management fees		107,721
Transfer agent and administrative fees		29,922
Distribution and service fees:
A-Class		7,284
C-Class		13,220
H-Class		12,608
Portfolio accounting fees		11,969
Licensing fees		41,891
Custodian fees		1,512
Trustees’ fees*		947
Line of credit fees		127
Miscellaneous		15,771
Total expenses		242,972
Less:
Expenses waived by Adviser		(12,120	)
Net expenses		230,852
Net investment loss		(122,551	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	(36,230	)
Swap agreements		(533,658	)
Futures contracts		109,950
Net realized loss		(459,938	)
Net change in unrealized appreciation (depreciation) on:
Investments		150,330
Swap agreements		40,698
Futures contracts		126,950
Net change in unrealized appreciation (depreciation)		317,978
Net realized and unrealized loss		(141,960	)
Net decrease in net assets resulting from operations	$	(264,511	)

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

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(122,551	)	$	(198,852	)
Net realized gain (loss) on investments		(459,938	)		1,377,099
Net change in unrealized appreciation (depreciation) on investments		317,978			(170,825	)
Net increase (decrease) in net assets resulting from operations		(264,511	)		1,007,422
Distributions to shareholders from:
Net investment income
A-Class		(3,504	)		—
C-Class		(3,120	)		—
H-Class		(7,993	)		—
Institutional Class		(7,317	)		—
Net realized gains
A-Class		(66,854	)		(170,099	)
C-Class		(59,527	)		(44,651	)
H-Class		(152,483	)		(394,614	)
Institutional Class		(139,593	)		(60,484	)
Total distributions to shareholders		(440,391	)		(669,848	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,380,986			3,375,449
C-Class		524,109			843,617
H-Class		2,315,469			2,523,264
Institutional Class		3,241,410			256,708
Distributions reinvested
A-Class		58,305			163,722
C-Class		61,687			44,596
H-Class		157,641			389,688
Institutional Class		146,099			59,898
Cost of shares redeemed
A-Class		(5,215,772	)		(1,418,770	)
C-Class		(517,330	)		(690,580	)
H-Class		(5,658,844	)		(2,423,769	)
Institutional Class		(465,399	)		(263,890	)
Net increase (decrease) from capital share transactions		(2,971,639	)		2,859,933
Net increase (decrease) in net assets		(3,676,541	)		3,197,507
Net assets:
Beginning of year		13,340,995			10,143,488
End of year	$	9,664,454		$	13,340,995
Undistributed net investment income at end of year	$	121,207		$	21,935
Capital share activity:
Shares sold
A-Class		85,090			119,577
C-Class		19,302			30,556
H-Class		83,244			89,167
Institutional Class		115,101			8,974
Shares issued from reinvestment of distributions
A-Class		2,286			5,879
C-Class		2,515			1,649
H-Class		6,180			13,992
Institutional Class		5,658			2,130
Shares redeemed
A-Class		(187,661	)		(49,520	)
C-Class		(19,532	)		(25,215	)
H-Class		(205,278	)		(86,131	)
Institutional Class		(16,890	)		(9,210	)
Net increase (decrease) in shares		(109,985	)		101,848

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.31	)		(.49	)		(.21	)		(.37	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(.09	)		3.09			2.40			(.36	)		4.27
Total from investment operations		(.40	)		2.60			2.19			(.73	)		3.94
Less distributions from:
Net investment income		(.06	)		—			—			—			—
Net realized gains		(1.14	)		(1.74	)		—			(.76	)		(2.08	)
Total distributions		(1.20	)		(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	26.82		$	28.42		$	27.56		$	25.37		$	26.86
Total Returnc		(1.18	%)		9.58	%		8.63	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,371		$	4,303		$	2,080		$	2,595		$	11,591
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		(1.73	%)		(0.80	%)		(1.43	%)		(1.65	%)
Total expensesd		2.01	%		2.02	%		2.03	%		1.93	%		2.03	%
Net expensese		1.90	%		1.90	%		1.91	%		1.85	%		1.89	%
Portfolio turnover rate		107	%		161	%		228	%		513	%		—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.45	)		(.67	)		(.43	)		(.52	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		(.14	)		2.99			2.39			(.40	)		4.23
Total from investment operations		(.59	)		2.32			1.96			(.92	)		3.75
Less distributions from:
Net investment income		(.06	)		—			—			—			—
Net realized gains		(1.14	)		(1.74	)		—			(.76	)		(2.08	)
Total distributions		(1.20	)		(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	25.74		$	27.53		$	26.95		$	24.99		$	26.67
Total Returnc		(1.92	%)		8.74	%		7.89	%		(3.38	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,230		$	1,253		$	1,038		$	1,022		$	1,363
Ratios to average net assets:
Net investment income (loss)		(1.68	%)		(2.45	%)		(1.67	%)		(2.04	%)		(2.42	%)
Total expensesd		2.75	%		2.77	%		2.79	%		2.66	%		2.79	%
Net expensese		2.65	%		2.65	%		2.66	%		2.60	%		2.65	%
Portfolio turnover rate		107	%		161	%		228	%		513	%		—

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.29	)		(.49	)		(.23	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(.11	)		3.08			2.43			(.39	)		4.27
Total from investment operations		(.40	)		2.59			2.20			(.73	)		3.94
Less distributions from:
Net investment income		(.06	)		—			—			—			—
Net realized gains		(1.14	)		(1.74	)		—			(.76	)		(2.08	)
Total distributions		(1.20	)		(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	26.82		$	28.42		$	27.57		$	25.37		$	26.86
Total Returnc		(1.18	%)		9.54	%		8.67	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,318		$	6,809		$	6,134		$	6,183		$	8,886
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(1.72	%)		(0.88	%)		(1.33	%)		(1.67	%)
Total expensesd		2.01	%		2.02	%		2.03	%		1.91	%		2.04	%
Net expensese		1.90	%		1.90	%		1.91	%		1.85	%		1.90	%
Portfolio turnover rate		107	%		161	%		228	%		513	%		—

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

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	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.16	)		(.42	)		(.19	)		(.23	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(.18	)		3.11			2.46			(.43	)		4.26
Total from investment operations		(.34	)		2.69			2.27			(.66	)		3.99
Less distributions from:
Net investment income		(.06	)		—			—			—			—
Net realized gains		(1.14	)		(1.74	)		—			(.76	)		(2.08	)
Total distributions		(1.20	)		(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	27.17		$	28.71		$	27.76		$	25.49		$	26.91
Total Returnc		(0.96	%)		9.84	%		8.91	%		(2.34	%)		16.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,746		$	975		$	891		$	329		$	59
Ratios to average net assets:
Net investment income (loss)		(0.57	%)		(1.46	%)		(0.70	%)		(0.90	%)		(1.42	%)
Total expensesd		1.75	%		1.77	%		1.80	%		1.61	%		1.79	%
Net expensese		1.65	%		1.65	%		1.67	%		1.58	%		1.65	%
Portfolio turnover rate		107	%		161	%		228	%		513	%		—

a	Since commencement of operations: June 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net expense information reflects the expense ratios after expense waivers.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, Emerging Markets 2x Strategy Fund H-Class returned -8.71%, while the BNY Mellon Emerging Markets 50 ADR Index returned -1.95% over the same period. For comparison, the S&P 500 Index returned 12.73%.

For the period, Emerging Markets 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

For the period, the sectors contributing most to the performance of the underlying index were Information Technology and Telecommunications Services. Sectors that detracted most from performance of the underlying index were Energy and Materials.

The holdings contributing most to the performance of the underlying index for the period were China Mobile Ltd. ADR, Taiwan Semiconductor Manufacturing Company Ltd. ADR, and Baidu, Inc. ADR. The holdings detracting most from return were Vale S.A. ADR, Petroleo Braileiro S.A. Pref ADR, and Vale S.A. Pref ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

THE RYDEX FUNDS ANNUAL REPORT | 37

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

COUNTRY DIVERSIFICATION

At March 31, 2015, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks	Value
Brazil	18%	$249,303
Cayman Islands	14%	198,081
Taiwan, Province of China	14%	197,050
Hong Kong	12%	166,607
India	10%	146,034
China	10%	140,651
Republic of Korea	9%	124,016
Other	13%	197,102
Total Common Stocks	100%	$1,418,844

The chart above reflects percentages of the value of common stocks.

Ten Largest Holdings (% of Total Net Assets)
Taiwan Semiconductor Manufacturing Company Ltd. ADR	3.8%
China Mobile Ltd. ADR	3.1%
Baidu, Inc. ADR	2.5%
America Movil SAB de C.V. — Class L ADR	1.5%
Infosys Ltd. ADR	1.5%
China Life Insurance Company Ltd. ADR	1.4%
Alibaba Group Holding Ltd. ADR	1.3%
Itau Unibanco Holding S.A. ADR	1.3%
Ambev S.A. ADR	1.1%
HDFC Bank Ltd. ADR	1.0%
Top Ten Total	18.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	Since Inception (10/29/10)
A-Class Shares	-8.72%	-13.67%
A-Class Shares with sales charge†	-13.05%	-14.62%
C-Class Shares	-9.32%	-14.03%
C-Class Shares with CDSC‡	-10.23%	-14.03%
H-Class Shares	-8.71%	-13.64%
BNY Mellon Emerging Markets 50 ADR Index	-1.95%	-3.51%
S&P 500 Index	12.73%	15.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

38 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 37.3%
COMMUNICATIONS - 12.4%
China Mobile Ltd. ADR		1,811	$	117,768
Baidu, Inc. ADR*		449		93,572
America Movil SAB de C.V. — Class L ADR		2,878		58,884
Alibaba Group Holding Ltd. ADR*		608		50,610
Grupo Televisa SAB ADR*		711		23,470
Chunghwa Telecom Company Ltd. ADR		625		20,044
Telekomunikasi Indonesia Persero Tbk PT ADR		406		17,677
SK Telecom Company Ltd. ADR		586		15,945
China Telecom Corporation Ltd. ADR		228		14,670
JD.com, Inc. ADR*		490		14,396
Vipshop Holdings Ltd. ADR*		465		13,690
Ctrip.com International Ltd. ADR*		223		13,072
China Unicom Hong Kong Ltd. ADR		747		11,399
Philippine Long Distance Telephone Co. ADR		120		7,499
Total Communications				472,696
TECHNOLOGY - 6.8%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		6,141		144,191
Infosys Ltd. ADR		1,586		55,637
Advanced Semiconductor Engineering, Inc. ADR		2,067		14,882
Wipro Ltd. ADR		966		12,867
NetEase, Inc. ADR		121		12,741
United Microelectronics Corp. ADR		3,913		9,548
Siliconware Precision Industries Company Ltd. ADR1		1,025		8,385
Total Technology				258,251
FINANCIAL - 6.8%
China Life Insurance Company Ltd. ADR		816		53,921
Itau Unibanco Holding S.A. ADR		4,541		50,223
HDFC Bank Ltd. ADR		673		39,633
Banco Bradesco S.A. ADR		4,152		38,531
Shinhan Financial Group Company Ltd. ADR		780		29,094
ICICI Bank Ltd. ADR		2,314		23,973
KB Financial Group, Inc. ADR		636		22,349
Total Financial				257,724
ENERGY - 4.8%
PetroChina Company Ltd. ADR		347		38,590
CNOOC Ltd. ADR		264		37,440
China Petroleum & Chemical Corp. ADR		420		33,470
Sasol Ltd. ADR		835		28,423
Petroleo Brasileiro S.A. Pref ADR		3,363		20,481
Petroleo Brasileiro S.A. ADR		2,448		14,712
YPF S.A. ADR		317		8,702
Total Energy				181,818
CONSUMER, NON-CYCLICAL - 2.4%
Ambev S.A. ADR		7,495		43,171
BRF S.A. ADR		1,091		21,580
Fomento Economico Mexicano SAB de CV ADR*		217		20,290
Cia Brasileira de Distribuicao ADR		272		8,111
Total Consumer, Non-cyclical				93,152
BASIC MATERIALS - 2.0%
POSCO ADR		528		28,860
Vale S.A. Pref ADR		3,334		16,170
Ultrapar Participacoes S.A. ADR		714		14,423
Vale S.A. ADR		2,434		13,752
Sociedad Quimica y Minera de Chile S.A. ADR		152		2,774
Total Basic Materials				75,979
INDUSTRIAL - 1.0%
Cemex SAB de CV ADR*		2,021		19,139
LG Display Company Ltd. ADR		730		10,446
Embraer S.A. ADR		265		8,149
Total Industrial				37,734
UTILITIES - 0.7%
Korea Electric Power Corp. ADR		845		17,322
Enersis S.A. ADR		630		10,244
Total Utilities				27,566
CONSUMER, CYCLICAL - 0.4%
Tata Motors Ltd. ADR		309		13,924
Total Common Stocks
(Cost $1,363,404)				1,418,844
	Face Amount
REPURCHASE AGREEMENTS††,2 - 60.8%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	1,814,807		1,814,807
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		277,341		277,341
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		222,612		222,612
Total Repurchase Agreements
(Cost $2,314,760)				2,314,760

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2015
EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 0.1%
Repurchase Agreements
HSBC Securities, Inc. issued 03/31/15 at 0.10% due 04/01/15	$	2,834	$	2,834
BNP Paribas Securities Corp. issued 03/31/15 at 0.10% due 04/01/15		975		975
Barclays Capital, Inc. issued 03/31/15 at 0.10% due 04/01/15		503		503
Total Securities Lending Collateral
(Cost $4,312)				4,312
Total Investments - 98.2%
(Cost $3,682,476)			$	3,737,916
Other Assets & Liabilities, net - 1.8%				66,981
Total Net Assets - 100.0%			$	3,804,897

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
June 2015 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $145,860)		3	$	(11	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International April 2015 Bank of New York Mellon Emerging Markets 50 ADR Index Swap, Terminating 04/28/154 (Notional Value $6,079,045)		2,752	$	71,525

*	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 March 31, 2015 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate.
	ADR — American Depositary Receipt

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value - including $4,090 of securities loaned (cost $1,363,404)	$	1,418,844
Repurchase agreements, at value (cost $2,319,072)		2,319,072
Total investments (cost $3,682,476)		3,737,916
Segregated cash with broker		2,579,858
Unrealized appreciation on swap agreements		71,525
Cash		462
Receivables:
Securities sold		4,990,676
Fund shares sold		1,249,996
Swap settlement		66,445
Variation margin		2,003
Dividends		1,065
Securities lending income		112
Interest		2
Total assets		12,700,060
Liabilities:
Payable for:
Fund shares redeemed		8,873,036
Return of securities loaned		4,375
Management fees		3,582
Distribution and service fees		1,428
Transfer agent and administrative fees		995
Portfolio accounting fees		597
Miscellaneous		11,150
Total liabilities		8,895,163
Commitments and contingent liabilities (Note 15)		—
Net assets	$	3,804,897
Net assets consist of:
Paid in capital	$	15,124,052
Undistributed net investment income		53,210
Accumulated net realized loss on investments		(11,499,319	)
Net unrealized appreciation on investments		126,954
Net assets	$	3,804,897
A-Class:
Net assets	$	381,544
Capital shares outstanding		6,307
Net asset value per share	$	60.50
Maximum offering price per share (Net asset value divided by 95.25%)	$	63.51
C-Class:
Net assets	$	1,287,249
Capital shares outstanding		21,682
Net asset value per share	$	59.37
H-Class:
Net assets	$	2,136,104
Capital shares outstanding		35,244
Net asset value per share	$	60.61

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends (net of foreign withholding tax of $16,173)	$	725,949
Income from securities lending, net		3,772
Interest		1,115
Total investment income		730,836
Expenses:
Management fees		332,566
Transfer agent and administrative fees		92,381
Distribution and service fees:
A-Class		1,887
C-Class		8,428
H-Class		88,389
Portfolio accounting fees		55,430
Custodian fees		4,418
Trustees’ fees*		2,724
Line of credit fees		734
Miscellaneous		67,373
Total expenses		654,330
Net investment income		76,506
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,894,928	)
Swap agreements		(1,745,144	)
Futures contracts		(1,439,020	)
Net realized loss		(8,079,092	)
Net change in unrealized appreciation (depreciation) on:
Investments		(206,972	)
Swap agreements		(146,150	)
Futures contracts		(11	)
Net change in unrealized appreciation (depreciation)		(353,133	)
Net realized and unrealized loss		(8,432,225	)
Net decrease in net assets resulting from operations	$	(8,355,719	)

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

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	76,506		$	(34,514	)
Net realized loss on investments		(8,079,092	)		(1,947,172	)
Net change in unrealized appreciation (depreciation) on investments		(353,133	)		348,749
Net decrease in net assets resulting from operations		(8,355,719	)		(1,632,937	)
Capital share transactions:
Proceeds from sale of shares
A-Class		34,963,639			8,531,963
C-Class		43,038,252			34,714,451
H-Class		445,957,288			183,477,671
Cost of shares redeemed
A-Class		(35,480,152	)		(7,561,718	)
C-Class		(42,085,644	)		(34,363,190	)
H-Class		(440,104,061	)		(179,596,460	)
Net increase from capital share transactions		6,289,322			5,202,717
Net increase (decrease) in net assets		(2,066,397	)		3,569,780
Net assets:
Beginning of year		5,871,294			2,301,514
End of year	$	3,804,897		$	5,871,294
Undistributed net investment income/(Accumulated net investment loss) at end of year	$	53,210		$	(23,296	)
Capital share activity:
Shares sold
A-Class		525,431			126,244	*
C-Class		596,138			529,047	*
H-Class		6,042,313			2,825,051	*
Shares redeemed
A-Class		(530,350	)		(116,456	)*
C-Class		(580,699	)		(524,287	)*
H-Class		(6,078,169	)		(2,782,209	)*
Net increase (decrease) in shares		(25,336	)		57,390	*

* Capital share activity for the year ended 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.

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Period Ended March 31, 2011a,f
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)b		(.37	)		(.54	)		(.35	)		(—	)e		(.65	)
Net gain (loss) on investments (realized and unrealized)		(5.40	)		(6.78	)		(13.46	)		(41.76	)		10.41
Total from investment operations		(5.77	)		(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	$	60.50		$	66.27		$	73.59		$	87.40		$	134.76
Total Returnc		(8.72	%)		(9.96	%)		(15.79	%)		(30.00	%)		7.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	382		$	744		$	106		$	363		$	992
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.82	%)		(0.51	%)		(0.01	%)		(1.42	%)
Total expenses		1.75	%		1.81	%		1.88	%		1.77	%		1.85	%
Net expensesd		1.75	%		1.76	%		1.75	%		1.69	%		1.73	%
Portfolio turnover rate		1,085	%		1,412	%		730	%		883	%		58	%

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Period Ended March 31, 2011a,f
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)b		(.73	)		(1.04	)		(1.25	)		(.90	)		(1.55	)
Net gain (loss) on investments (realized and unrealized)		(5.36	)		(6.42	)		(13.14	)		(40.32	)		10.68
Total from investment operations		(6.09	)		(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	$	59.37		$	65.46		$	72.92		$	87.31		$	134.13
Total Returnc		(9.32	%)		(10.21	%)		(16.49	%)		(29.75	%)		7.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,287		$	409		$	108		$	62		$	726
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(1.73	%)		(1.61	%)		(0.87	%)		(1.98	%)
Total expenses		2.48	%		2.66	%		2.59	%		2.54	%		2.60	%
Net expensesd		2.48	%		2.61	%		2.46	%		2.46	%		2.49	%
Portfolio turnover rate		1,085	%		1,412	%		730	%		883	%		58	%

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Period Ended March 31, 2011a,f
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)b		.20			(.34	)		(.35	)		(.35	)		(.55	)
Net gain (loss) on investments (realized and unrealized)		(5.96	)		(7.16	)		(13.52	)		(41.00	)		10.24
Total from investment operations		(5.76	)		(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	$	60.61		$	66.37		$	73.87		$	87.74		$	134.69
Total Returnc		(8.71	%)		(10.19	%)		(15.78	%)		(29.70	%)		7.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,136		$	4,719		$	2,087		$	4,713		$	3,705
Ratios to average net assets:
Net investment income (loss)		0.25	%		(0.51	%)		(0.49	%)		(0.37	%)		(1.05	%)
Total expenses		1.75	%		1.80	%		1.83	%		1.77	%		1.85	%
Net expensesd		1.75	%		1.74	%		1.69	%		1.69	%		1.74	%
Portfolio turnover rate		1,085	%		1,412	%		730	%		883	%		58	%

a	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net expense information reflects the expense ratios after expense waivers.
e	Net investment loss is less than $0.01 per share.
f	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 14 in Notes to Financial Statements.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

INVERSE EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2015, Inverse Emerging Markets 2x Strategy Fund H-Class returned -8.35%, while the BNY Mellon Emerging Markets 50 ADR Index returned -1.95% over the same period. For comparison, the S&P 500 Index returned 12.73%.

For the period, Inverse Emerging Markets 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

For the period, the sectors contributing most to the performance of the underlying index were Information Technology and Telecommunications Services. Sectors that detracted most from performance of the underlying index were Energy and Materials.

The holdings contributing most to the performance of the underlying index for the period were China Mobile Ltd. ADR, Taiwan Semiconductor Manufacturing Company Ltd. ADR, and Baidu, Inc. ADR. The holdings detracting most from return were Vale S.A. ADR, Petroleo Braileiro S.A. Pref ADR, and Vale S.A. Pref ADR.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 6 of this report.

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

THE RYDEX FUNDS ANNUAL REPORT | 45

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Holdings Diversification (Market Exposure as % of Net Assets)

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

Cumulative Fund Performance*

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.

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	Since Inception (10/29/10)
A-Class Shares	-7.96%	-8.50%
A-Class Shares with sales charge†	-12.31%	-9.51%
C-Class Shares	-8.78%	-7.92%
C-Class Shares with CDSC‡	-9.69%	-7.92%
H-Class Shares	-8.35%	-8.60%
BNY Mellon Emerging Markets 50 ADR Index	-1.95%	-3.51%
S&P 500 Index	12.73%	15.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
†	Fund returns are calculated using the maximum sales charge of 4.75%.
‡	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

46 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2015
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 75.8%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	13,812,975	$	13,812,975
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		2,110,916		2,110,916
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		1,694,357		1,694,357
Total Repurchase Agreements
(Cost $17,618,248)				17,618,248
Total Investments - 75.8%
(Cost $17,618,248)			$	17,618,248
Other Assets & Liabilities, net - 24.2%				5,636,847
Total Net Assets - 100.0%			$	23,255,095

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS SOLD SHORT†
June 2015 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $6,417,840)		132	$	(106,907	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International April 2015 Bank of New York Mellon Emerging Markets 50 ADR Index Swap, Terminating 04/28/152 (Notional Value $40,064,274)		18,136	$	(475,806	)

†	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	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate.
	ADR — American Depositary Receipt

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Repurchase agreements, at value (cost $17,618,248)	$	17,618,248
Segregated cash with broker		6,679,624
Receivables:
Fund shares sold		468,791
Variation margin		19,524
Interest		16
Total assets		24,786,203
Liabilities:
Unrealized depreciation on swap agreements		475,806
Payable for:
Fund shares redeemed		1,001,131
Swap settlement		33,280
Management fees		5,579
Distribution and service fees		1,999
Transfer agent and administrative fees		1,550
Portfolio accounting fees		930
Miscellaneous		10,833
Total liabilities		1,531,108
Commitments and contingent liabilities (Note 15)		—
Net assets	$	23,255,095
Net assets consist of:
Paid in capital	$	36,143,889
Accumulated net investment loss		(106,562	)
Accumulated net realized loss on investments		(12,199,519	)
Net unrealized depreciation on investments		(582,713	)
Net assets	$	23,255,095
A-Class:
Net assets	$	61,979
Capital shares outstanding		3,673
Net asset value per share	$	16.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	17.72
C-Class:
Net assets	$	102,312
Capital shares outstanding		5,890
Net asset value per share	$	17.37
H-Class:
Net assets	$	23,090,804
Capital shares outstanding		1,374,488
Net asset value per share	$	16.80

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Interest	$	2,291
Total investment income		2,291
Expenses:
Management fees		108,972
Transfer agent and administrative fees		30,272
Distribution and service fees:
A-Class		2,179
C-Class		5,120
H-Class		26,815
Portfolio accounting fees		18,164
Custodian fees		1,453
Trustees’ fees*		759
Miscellaneous		19,717
Total expenses		213,451
Net investment loss		(211,160	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(6,830,122	)
Futures contracts		204,831
Net realized loss		(6,625,291	)
Net change in unrealized appreciation (depreciation) on:
Swap agreements		182,167
Futures contracts		(107,821	)
Net change in unrealized appreciation (depreciation)		74,346
Net realized and unrealized loss		(6,550,945	)
Net decrease in net assets resulting from operations	$	(6,762,105	)

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

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(211,160	)	$	(151,694	)
Net realized loss on investments		(6,625,291	)		(4,448,146	)
Net change in unrealized appreciation (depreciation) on investments		74,346			(632,299	)
Net decrease in net assets resulting from operations		(6,762,105	)		(5,232,139	)
Capital share transactions:
Proceeds from sale of shares
A-Class		11,215,785			8,057,592
C-Class		33,937,543			43,930,520
H-Class		297,810,126			163,931,981
Cost of shares redeemed
A-Class		(15,735,897	)		(2,627,231	)
C-Class		(34,133,165	)		(43,874,699	)
H-Class		(274,012,457	)		(155,566,471	)
Net increase from capital share transactions		19,081,935			13,851,692
Net increase in net assets		12,319,830			8,619,553
Net assets:
Beginning of year		10,935,265			2,315,712
End of year	$	23,255,095		$	10,935,265
Accumulated net investment loss at end of year	$	(106,562	)	$	(108,307	)
Capital share activity:
Shares sold
A-Class		737,908			380,799
C-Class		2,098,236			2,127,776
H-Class		18,525,000			8,074,671
Shares redeemed
A-Class		(999,205	)		(129,267	)
C-Class		(2,106,091	)		(2,119,778	)
H-Class		(17,467,759	)		(7,858,474	)
Net increase in shares		788,089			475,727

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.29	)		(.35	)		(.33	)		(.39	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(1.18	)		(.54	)		.27			(1.47	)		(3.69	)
Total from investment operations		(1.47	)		(.89	)		(.06	)		(1.86	)		(3.85	)
Net asset value, end of period	$	16.87		$	18.34		$	19.23		$	19.29		$	21.15
Total Returnc		(7.96	%)		(4.63	%)		(0.26	%)		(8.84	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	62		$	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 expensesd		1.75	%		1.75	%		1.71	%		1.69	%		1.73	%
Portfolio turnover rate		—			—			—			—			—

C-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.39	)		(.52	)		(.49	)		(.55	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		(1.27	)		(.52	)		.31			(.53	)		(3.42	)
Total from investment operations		(1.66	)		(1.04	)		(.18	)		(1.08	)		(3.67	)
Net asset value, end of period	$	17.37		$	19.03		$	20.07		$	20.25		$	21.33
Total Returnc		(8.78	%)		(5.23	%)		(0.84	%)		(5.06	%)e		(14.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	102		$	262		$	115		$	1,261		$	15
Ratios to average net assets:
Net investment income (loss)		(2.47	%)		(2.44	%)		(2.41	%)		(2.41	%)		(2.37	%)
Total expenses		2.48	%		2.48	%		2.65	%		2.53	%		2.57	%
Net expensesd		2.48	%		2.46	%		2.51	%		2.44	%		2.46	%
Portfolio turnover rate		—			—			—			—			—

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011a
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)b		(.28	)		(.35	)		(.33	)		(.38	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(1.25	)		(.54	)		.26			(1.48	)		(3.69	)
Total from investment operations		(1.53	)		(.89	)		(.07	)		(1.86	)		(3.85	)
Net asset value, end of period	$	16.80		$	18.33		$	19.22		$	19.29		$	21.15
Total Returnc		(8.35	%)		(4.63	%)		(0.36	%)		(8.79	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,091		$	5,815		$	1,942		$	2,215		$	2,892
Ratios to average net assets:
Net investment income (loss)		(1.71	%)		(1.74	%)		(1.56	%)		(1.67	%)		(1.63	%)
Total expenses		1.73	%		1.78	%		1.82	%		1.79	%		1.85	%
Net expensesd		1.73	%		1.76	%		1.68	%		1.70	%		1.74	%
Portfolio turnover rate		—			—			—			—			—

a	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net expense information reflects the expense ratios after expense waivers.
e	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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2015

EMERGING MARKETS BOND STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Adviser.

The Emerging Markets Bond Fund H-Class returned -5.74% for the one-year period ended March 31, 2015. By comparison, the Bank of America Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index returned 5.59% over the same period.

Increased global instability over the past year led to increasing credit spreads across most countries, and in Argentina defaulted. Political tensions between Russia and Ukraine saw both of those countries credit default swap rates rise. The drop in oil prices affected the credit spreads of countries with a high dependency to oil revenues. As a result, Venezuela saw credit default spreads soar over the past year.

Derivatives in the Fund were used to help provide exposure to the emerging market bond market in the highest efficient manner, not for hedging purposes. The results of derivatives use during the period were within our expectations and contributed to the Fund’s performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 8, 2013
C-Class	October 8, 2013
H-Class	October 8, 2013

The Fund invests principally in derivative instruments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
PowerShares Emerging Markets Sovereign Debt Portfolio	11.0%
iShares JP Morgan USD Emerging Markets Bond ETF	10.9%
Total	21.9%
“Largest Holdings” exclude any temporary cash or derivative investments.

52 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2015

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2015

	1 Year	Since Inception (10/08/13)
A-Class Shares	-5.31%	-3.16%
A-Class Shares with sales charge†	-9.82%	-6.30%
C-Class Shares	-6.19%	-3.97%
C-Class Shares with CDSC‡	-6.99%	-3.97%
H-Class Shares	-5.74%	-3.40%
BofA ML U.S. Dollar Emerging Markets Sovereign Plus Index	5.59%	6.61%

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

THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS	March 31, 2015
EMERGING MARKETS BOND STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 21.9%
PowerShares Emerging Markets Sovereign Debt Portfolio		870	$	24,726
iShares JP Morgan USD Emerging Markets Bond ETF		220		24,666
Total Exchange-Traded Funds
(Cost $48,802)				49,392
	Face Amount
REPURCHASE AGREEMENTS††,1 - 55.3%
HSBC Group issued 03/31/15 at 0.03% due 04/01/15	$	97,763		97,763
RBC Capital Markets issued 03/31/15 at 0.05% due 04/01/15		14,940		14,940
UMB Financial Corp. issued 03/31/15 at 0.03% due 04/01/15		11,992		11,992
Total Repurchase Agreements
(Cost $124,695)				124,695
Total Investments - 77.2%
(Cost $173,497)			$	174,087
Other Assets & Liabilities, net - 22.8%				51,488
Total Net Assets - 100.0%			$	225,575

	Contracts		Unrealized Gain (Loss)
INTEREST RATE FUTURES CONTRACTS PURCHASED†
June 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $120,203)		1	$	1,092
June 2015 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $128,906)		1		(298	)
(Total Aggregate Value of Contracts $249,109)			$	794

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION SOLD††,2
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Received	Unrealized Depreciation
CDX.EM-23 Index	Barclays Bank plc	1.00%	06/20/20	$300,000	$(269,625)	$(29,503)	$(872)

†	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 7.
	plc — Public Limited Company

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2015

Assets:
Investments, at value (cost $48,802)	$	49,392
Repurchase agreements, at value (cost $124,695)		124,695
Total investments (cost $173,497)		174,087
Segregated cash with broker		82,285
Cash		104
Receivables:
Variation margin		508
Protection fees on credit default swaps		100
Total assets		257,084
Liabilities:
Unamortized upfront premiums received on credit default swaps		29,503
Unrealized depreciation on swap agreements		872
Payable for:
Management fees		203
Distribution and service fees		89
Transfer agent and administrative fees		68
Portfolio accounting fees		40
Miscellaneous		734
Total liabilities		31,509
Commitments and contingent liabilities (Note 15)		—
Net assets	$	225,575
Net assets consist of:
Paid in capital	$	699,888
Undistributed net investment income		5,111
Accumulated net realized loss on investments		(479,936	)
Net unrealized appreciation on investments		512
Net assets	$	225,575
A-Class:
Net assets	$	38,764
Capital shares outstanding		1,902
Net asset value per share	$	20.38
Maximum offering price per share (Net asset value divided by 95.25%)	$	21.40
C-Class:
Net assets	$	33,541
Capital shares outstanding		1,670
Net asset value per share	$	20.08
H-Class:
Net assets	$	153,270
Capital shares outstanding		7,554
Net asset value per share	$	20.29

STATEMENT OF OPERATIONS

Year Ended March 31, 2015

Investment Income:
Dividends	$	7,074
Interest		774
Total investment income		7,848
Expenses:
Management fees		40,426
Transfer agent and administrative fees		13,477
Distribution and service fees:
A-Class		6,779
C-Class		239
H-Class		6,641
Portfolio accounting fees		8,087
Registration fees		4,500
Tax expense		1,431
Custodian fees		626
Trustees’ fees*		584
Miscellaneous		3,145
Total expenses		85,935
Net investment loss		(78,087	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(13,328	)
Swap agreements		(250,336	)
Futures contracts		61,942
Net realized loss		(201,722	)
Net change in unrealized appreciation (depreciation) on:
Investments		590
Swap agreements		(81,868	)
Futures contracts		42,027
Net change in unrealized appreciation (depreciation)		(39,251	)
Net realized and unrealized loss		(240,973	)
Net decrease in net assets resulting from operations	$	(319,060	)

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

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2015			Period Ended March 31, 2014a
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(78,087	)	$	(42,569	)
Net realized gain (loss) on investments		(201,722	)		34,169
Net change in unrealized appreciation (depreciation) on investments		(39,251	)		39,763
Net increase (decrease) in net assets resulting from operations		(319,060	)		31,363
Distributions to shareholders from:
Net investment income
A-Class		(7,457	)		—
C-Class		(2,377	)		—
H-Class		(181,291	)		—
Total distributions to shareholders		(191,125	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		18,252,568			650,358
C-Class		1,144,653			10,789
H-Class		3,651,528			12,337,077
Distributions reinvested
A-Class		6,103			—
C-Class		2,377			—
H-Class		33,679			—
Cost of shares redeemed
A-Class		(18,413,103	)		(147,681	)
C-Class		(1,123,838	)		(759	)
H-Class		(8,907,076	)		(6,792,278	)
Net increase (decrease) from capital share transactions		(5,353,109	)		6,057,506
Net increase (decrease) in net assets		(5,863,294	)		6,088,869
Net assets:
Beginning of period		6,088,869			—
End of period	$	225,575		$	6,088,869
Undistributed net investment income at end of period	$	5,111		$	73,498
Capital share activity:
Shares sold
A-Class		689,810			25,874
C-Class		44,326			431
H-Class		149,092			490,331
Shares issued from reinvestment of distributions
A-Class		297			—
C-Class		117			—
H-Class		1,645			—
Shares redeemed
A-Class		(708,041	)		(6,038	)
C-Class		(43,173	)		(31	)
H-Class		(364,753	)		(268,761	)
Net increase (decrease) in shares		(230,680	)		241,806

^a Since commencement of operations: October 8, 2013.

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2015			Period Ended March 31, 2014a
Per Share Data
Net asset value, beginning of period	$	25.17		$	25.00
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(.94	)		.38
Total from investment operations		(1.30	)		.17
Less distributions from:
Net investment income		(3.49	)		—
Total distributions		(3.49	)		—
Net asset value, end of period	$	20.38		$	25.17
Total Returnc		(5.31	%)		0.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	39		$	499
Ratios to average net assets:
Net investment income (loss)		(1.50	%)		(1.78	%)
Total expenses		1.71	%		1.83	%
Portfolio turnover rate		655	%		—

C-Class	Year Ended March 31, 2015			Period Ended March 31, 2014a
Per Share Data
Net asset value, beginning of period	$	25.09		$	25.00
Income (loss) from investment operations:
Net investment income (loss)b		(.45	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(1.07	)		.37
Total from investment operations		(1.52	)		.09
Less distributions from:
Net investment income		(3.49	)		—
Total distributions		(3.49	)		—
Net asset value, end of period	$	20.08		$	25.09
Total Returnc		(6.19	%)		0.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34		$	10
Ratios to average net assets:
Net investment income (loss)		(1.85	%)		(2.34	%)
Total expenses		2.24	%		2.39	%
Portfolio turnover rate		655	%		—

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2015			Period Ended March 31, 2014a
Per Share Data
Net asset value, beginning of period	$	25.18		$	25.00
Income (loss) from investment operations:
Net investment income (loss)b		(.39	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(1.01	)		.37
Total from investment operations		(1.40	)		.18
Less distributions from:
Net investment income		(3.49	)		—
Total distributions		(3.49	)		—
Net asset value, end of period	$	20.29		$	25.18
Total Returnc		(5.74	%)		0.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	153		$	5,580
Ratios to average net assets:
Net investment income (loss)		(1.64	%)		(1.62	%)
Total expenses		1.74	%		1.64	%
Portfolio turnover rate		655	%		—

a	Since commencement of operations: October 8, 2013. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

NOTES TO FINANCIAL STATEMENTS

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 March 31, 2015, the Trust consisted of fifty-two 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 International Equity Funds and Fixed Income 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 Funds operate as investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities 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 each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2015, 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 Funds' securities or other assets.

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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”) 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 and credit default 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.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: (i) the type of security, (ii) the initial cost of the security, (iii) the existence of any contractual restrictions on the security’s disposition, (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies, (v) quotations or evaluated prices from broker-dealers and/or pricing services, (vi) information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), (vii) an analysis of the company’s financial statements, and (viii) an evaluation of the forces that influence the issuer of pending merger activity, public offerings or tender offers that might affect the value of the security).

In connection with futures contracts and other derivative investments such factors may include, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. 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

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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.

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 Funds do 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. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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, their Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties

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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 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 segregated cash with broker 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 of derivative instruments provides leveraged exposure. Since these Funds’ investment strategies involve 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

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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.

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 their 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%

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.

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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)
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. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The 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 a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

GI has contractually agreed to reduce fees and/or 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) from exceeding 1.90%, 2.65%, 1.90%, and 1.65%, respectively. The total annual fund operating expenses after fee waiver and/or expense reimbursement includes excluded expenses and, thus, from time to time may be higher than 1.90%, 2.65%, 1.90% and 1.65%, respectively. This agreement may be terminated only with the approval of the Fund’s Board of Trustees.

For the year ended March 31, 2015, GFD retained sales charges of $360,571 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.

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The following table summarizes the inputs used to value the Funds’ investments at March 31, 2015:

	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	$	42,943,121	$	—	$	3,303,585	$	—	$	—	$	46,246,706
Event Driven and Distressed Strategies Fund		5,798,867		56,155		2,787,354		17,630		—		8,660,006
Emerging Markets 2x Strategy Fund		1,418,844		—		2,319,072		71,525		—		3,809,441
Inverse Emerging Markets 2x Strategy Fund		—		—		17,618,248		—		—		17,618,248
Emerging Markets Bond Strategy Fund		49,392		1,092		124,695		—		—		175,179
Liabilities
Long Short Equity Fund	$	11,582,797	$	—	$	—	$	—	$	—	$	11,582,797
Event Driven and Distressed Strategies Fund		—		—		—		2,040		—		2,040
Emerging Markets 2x Strategy Fund		—		11		—		—		—		11
Inverse Emerging Markets 2x Strategy Fund		—		106,907		—		475,806		—		582,713
Emerging Markets Bond Strategy Fund		—		298		—		872		—		1,170

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the year ended March 31, 2015, 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 March 31, 2015, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement		Face Value		Repurchase Price	Collateral		Par Value		Fair Value
HSBC Group					U.S. Treasury Strips
0.03%					0.00%
Due 04/01/15	$	922,646,685	$	922,647,454	02/15/24 - 05/15/44	$	1,876,361,900	$	941,099,692
RBC Capital Markets					U.S. Treasury Note
0.05%					2.13%
Due 04/01/15		141,000,000		141,000,196	12/31/21		92,325,000		95,818,749
					U.S. TIP Bond
					3.88%
					04/25/29		22,465,400		48,001,266
UMB Financial Corp.					U.S. Treasury Notes
0.03%					1.38% - 3.25%
Due 04/01/15		113,175,677		113,175,772	11/30/15 - 12/31/16		109,984,100		115,439,211

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

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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.

At March 31, 2015, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Long Short Equity Fund	$	566,423	$	594,750
Event Driven and Distressed Strategies Fund		3,868		4,100
Emerging Markets 2x Strategy Fund		4,090		4,375

Cash collateral received was invested in the following joint repurchase agreements at March 31, 2015:

Counterparty and Terms of Agreement		Face Value		Repurchase Price	Collateral		Par Value		Fair Value
HSBC Securities, Inc.					Fannie Mae Strips
0.10%					0.00%
Due 04/01/15	$	390,741	$	390,742	11/15/17 - 07/15/37	$	435,798	$	299,943
					Federal Farm Credit Bank
					0.19%
					06/12/17		98,607		98,620
BNP Paribas Securities Corp.					U.S. Treasury Note
0.10%					2.13%
Due 04/01/15		134,415		134,415	12/31/21		61,786		63,686
					U.S. Treasury Bond
					4.38%
					05/15/41		53,324		73,417
Barclays Capital Corp.					U.S. Treasury Strips
0.10%					0.00%
Due 04/01/15		69,380		69,380	05/15/20 - 05/15/44		107,329		63,769
					U.S. Treasury Bond
					4.75%
					02/15/41		4,870		6,999

There was also $8,690 in segregated cash held as collateral.

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NOTES TO FINANCIAL STATEMENTS (continued)

7. 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.

The tables on pages 30 and 54 included in the Schedules of Investments summarize the information with regard to sold protection on credit default swap contracts as of March 31, 2015.

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
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
Event Driven and Distressed Strategies Fund*	130%	—
Emerging Markets 2x Strategy Fund	150%	—
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 195% and 260% for the Event Driven and Distressed Strategies Fund and the Emerging Markets Bond Strategy Fund, respectively.

THE RYDEX FUNDS ANNUAL REPORT | 67

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of March 31, 2015:

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 March 31, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at March 31, 2015
Event Driven and Distressed Strategies Fund	$	23,371	$	—	$	32,784	$	17,630	$	73,785
Emerging Markets 2x Strategy Fund		—		71,525		—		—		71,525
Emerging Markets Bond Strategy Fund		—		—		1,092		—		1,092

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at March 31, 2015
Event Driven and Distressed Strategies Fund	$	—	$	2,040	$	—	$	—	$	2,040
Emerging Markets 2x Strategy Fund		11		—		—		—		11
Inverse Emerging Markets 2x Strategy Fund		106,907		475,806		—		—		582,713
Emerging Markets Bond Strategy Fund		—		—		298		872		1,170

* 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 year ended March 31, 2015:

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

68 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (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 year ended March 31, 2015:

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	$	(77,572	)	$	—		$	—	$	—		$	(77,572	)
Event Driven and Distressed Strategies Fund		(43,520	)		(670,463	)		153,470		136,805			(423,708	)
Emerging Markets 2x Strategy Fund		(1,439,020	)		(1,745,144	)		—		—			(3,184,164	)
Inverse Emerging Markets 2x Strategy Fund		204,831			(6,830,122	)		—		—			(6,625,291	)
Emerging Markets Bond Strategy Fund		—			—			61,942		(250,336	)		(188,394	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contract			Futures Interest Rate Contracts		Swaps Credit Default Contracts			Total
Event Driven and Distressed Strategies Fund	$	51,776		$	46,978		$	75,174	$	(6,280	)	$	167,648
Emerging Markets 2x Strategy Fund		(11	)		(146,150	)		—		—			(146,161	)
Inverse Emerging Markets 2x Strategy Fund		(107,821	)		182,167			—		—			74,346
Emerging Markets Bond Strategy Fund		—			—			42,027		(81,868	)		(39,841	)

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.

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 RYDEX FUNDS ANNUAL REPORT | 69

NOTES TO FINANCIAL STATEMENTS (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 Received		Net Amount
Emerging Markets 2x Strategy Fund	Swap equity contracts	$	71,525	$	—	$	71,525	$	—	$	—	$	71,525

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
Event Driven and Distressed Strategies Fund	Swap equity contracts	$	2,040	$	—	$	2,040	$	—	$	2,040	$	—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		475,806		—		475,806		—		475,806		—

¹ Exchange-traded futures and centrally cleared swaps are excluded from these reported amounts.

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.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.

For the year ended March 31, 2015, the following capital loss carryforward amounts were expired or used:

Fund	Amount
Long Short Equity Fund	$	3,412,264

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2015 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	—	$	—	$	—
Event Driven and Distressed Strategies Fund		430,324		10,067		440,391
Emerging Markets 2x Strategy Fund		—		—		—
Inverse Emerging Markets 2x Strategy Fund		—		—		—
Emerging Markets Bond Strategy Fund		191,125		—		191,125

The tax character of distributions paid during the year ended March 31, 2014 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	—	$	—	$	—
Event Driven and Distressed Strategies Fund		384,859		284,989		669,848
Emerging Markets 2x Strategy Fund		—		—		—
Inverse Emerging Markets 2x Strategy Fund		—		—		—
Emerging Markets Bond Strategy Fund		—		—		—

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

The tax character of distributable earnings/(accumulated losses) at March 31, 2015 was as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation/ (Depreciation)			Capital Loss Carryforward and Other Losses
Long Short Equity Fund	$	—	$	—	$	2,521,824		$	(66,348,716	)
Event Driven and Distressed Strategies Fund		122,230		—		161,322			(573,170	)
Emerging Markets 2x Strategy Fund		53,210		—		(1,396,114	)		(9,976,251	)
Inverse Emerging Markets 2x Strategy Fund		—		—		(475,806	)		(12,412,988	)
Emerging Markets Bond Strategy Fund		5,111		—		(282	)		(479,142	)

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. For taxable years beginning on or before December 22, 2010, such capital losses may be carried forward for a maximum of eight years. Under the RIC Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those taxable years must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to 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. As of March 31, 2015, capital loss carryforwards for the Funds were as follows:

	Expires in			Expires in			Unlimited						Total Capital Loss
Fund	2017			2018			Short-Term			Long-Term			Carryforward
Long Short Equity Fund	$	(46,806,630	)	$	(19,377,927	)	$	—		$	—		$	(66,184,557	)
Event Driven and Distressed Strategies Fund		—			—			(573,170	)		—			(573,170	)
Emerging Markets 2x Strategy Fund		—			—			(8,556,910	)		(1,419,341	)		(9,976,251	)
Inverse Emerging Markets 2x Strategy Fund		—			—			(12,245,496	)		(60,930	)		(12,306,426	)
Emerging Markets Bond Strategy Fund		—			—			(479,142	)		—			(479,142	)

THE RYDEX FUNDS ANNUAL REPORT | 71

NOTES TO FINANCIAL STATEMENTS (continued)

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are typically due to late year loss deferrals, losses deferred due to wash sales, tax treatment of payments from credit default swaps, utilization of earnings and profits on shareholder redemptions, foreign currency gains and losses, and the “mark-to-market” of certain passive foreign investment companies (PFICs) for tax purposes. Additional differences may result from tax treatment of net investment losses and expired capital loss carryforwards. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

On the Statements of Assets and Liabilities the following adjustments were made for permanent book/tax differences:

Fund	Paid In Capital			Undistributed Net Investment Income		Accumulated Net Realized Loss
Long Short Equity Fund	$	(427,755	)	$	427,755	$	—
Event Driven and Distressed Strategies Fund		—			243,757		(243,757	)
Emerging Markets 2x Strategy Fund		—			—		—
Inverse Emerging Markets 2x Strategy Fund		(212,905	)		212,905		—
Emerging Markets Bond Strategy Fund		—			200,825		(200,825	)

At March 31, 2015, 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	$	44,216,942	$	2,915,050	$	(885,286	)	$	2,029,764
Event Driven and Distressed Strategies Fund		8,440,489		221,324		(75,592	)		145,732
Emerging Markets 2x Strategy Fund		5,205,556		—		(1,467,640	)		(1,467,640	)
Inverse Emerging Markets 2x Strategy Fund		17,618,248		—		—			—
Emerging Markets Bond Strategy Fund		173,497		685		(95	)		590

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2015, the following losses reflected in the accompanying financial statements were deferred for Federal income tax purposes until April 1, 2015:

Fund	Ordinary			Capital
Long Short Equity Fund	$	(164,159	)	$	—
Inverse Emerging Markets 2x Strategy Fund		(106,562	)		—

72 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

11. Securities Transactions

For the year ended March 31, 2015, 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	$	104,721,086	$	102,948,756
Event Driven and Distressed Strategies Fund		12,346,347		6,652,528
Emerging Markets 2x Strategy Fund		280,598,502		277,856,900
Inverse Emerging Markets 2x Strategy Fund		—		—
Emerging Markets Bond Strategy Fund		1,353,305		1,291,175

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 is available publicly or upon request. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

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 year ended March 31, 2015. The Funds did not have any borrowings under this agreement at March 31, 2015.

The average daily balances borrowed for the year ended March 31, 2015, were as follows:

Fund	Average Daily Balance
Long Short Equity Fund	$	6,994
Event Driven and Distressed Strategies Fund		10,007
Emerging Markets 2x Strategy Fund		57,931

14. Reverse Share Splits

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

Fund	Effective Date	Split Type
Emerging Markets 2x Strategy Fund	February 21, 2014	One-for-Five Reverse Split

The effect of the transaction was to divide the number of outstanding shares of the Fund 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 21, 2014, have been restated to reflect the reverse share split. There were no changes in net assets, results of operations or total return as a result of this transaction.

THE RYDEX FUNDS ANNUAL REPORT | 73

NOTES TO FINANCIAL STATEMENTS (continued)

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 of the SLCFC actions: Deutsche Bank Trust Co. Americas v. McGurn, No. 11-1510 (S.D.N.Y.). 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 SLCFC 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. The Court has not yet issued a decision on the appeals.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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

74 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

Lyondell shareholders under federal law for intentional fraudulent transfer. A third related action against the former Lyondell shareholders, Weisfelner, as Trustee of the LB Creditor Trust v. Reichman, Adversary Proceeding No. 12-1570 (Bankr. S.D.N.Y.) (the “Reichman action”), is pending as well.

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.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Court held oral argument on the motions to dismiss and on the motion for class certification on January 14 and January 15, 2015. The Court has not yet issued decisions on these motions. Discovery has commenced in these lawsuits.

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.

16. Subsequent Event

H-Class Shares to be Redesignated P-Class Shares

Effective following the close of business on April 30, 2015, or such later date as may be determined appropriate by management (the “Redesignation Date”), all outstanding H-Class shares of the Guggenheim Event Driven and Distressed Strategies Fund and Guggenheim Long Short Equity Fund (collectively, the “Funds”), each of which is a separate series of Rydex Series Funds, will be redesignated as P-Class shares, and the Funds will no longer offer H-Class shares.

THE RYDEX FUNDS ANNUAL REPORT | 75

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders
of Rydex Series Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of 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 (five of the series constituting the Rydex Series Funds) (the “Funds”) as of March 31, 2015, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian, transfer agent, and brokers. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds (five of the series constituting the Rydex Series Funds) at March 31, 2015, the results of their operations for the year then ended, and the changes in their net assets and their financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia

May 21, 2015

76 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following fund had the corresponding percentage qualify for the dividends received deduction for corporations:

Fund	% Qualifying
Event Driven and Distressed Strategies Fund	1.22%

Additionally, the following amount of taxable ordinary income dividends paid during the fiscal year qualified for the lower income tax rate available to individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003:

Fund	% Qualifying
Event Driven and Distressed Strategies Fund	1.22%

Additionally, of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2015, the following fund had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively:

Fund	% Qualifying	% STCG Qualifying
Event Driven and Distressed Strategies Fund	0.00%	100.00%

With respect to the taxable year ended March 31, 2015, the Fund hereby designates as capital gain dividends the amount listed below, or, if subsequently determined to be different, the net capital gain of such year:

	Event Driven and Distressed Strategies Fund
From long-term capital gains, subject to the 15% rate gains category:	$	10,067

P-Class Share Information

P-Class shares of the Funds are offered primarily through broker/dealers and other financial intermediaries with which Guggenheim Funds Distributors, LLC has an agreement for the use of P-Class shares of the Funds in investment products, programs or accounts. P-Class shares do not have a minimum initial investment amount, subsequent investment amount or a minimum account balance. The Funds reserves the right to modify their minimum investment amount and account balance requirements at any time, with or without prior notice to you.

Following the redesignation of outstanding H-Class shares, H-Class shareholders who currently have accounts held directly at Guggenheim Investments will not be permitted to purchase additional P-Class shares or exchange their P-Class shares for P-Class shares or any other share class of other Guggenheim Funds. Guggenheim Investments will be separately notifying these shareholders of their redemption and exchange options should they decide they do not want to hold P-Class shares upon the redesignation of their H-Class shares. H-Class shareholders should contact Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100 with any questions about the redesignation of their H-Class shares.

No action is required of H-Class shareholders to effect the redesignation of their current H-Class shares.

For more information, or to request copies of the Funds’ prospectuses, call Client Services at 800.820.0888 or visiting guggenheiminvestments.com.

THE RYDEX FUNDS ANNUAL REPORT | 77

OTHER INFORMATION (Unaudited)(concluded)

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.

78 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by 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).	221	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	133	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.	133	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.	133	None.

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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
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).	133	None.
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).	133	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).	133	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.

80 | THE RYDEX FUNDS 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
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).
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); Managing Director, Guggenheim Investments (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).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	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 ANNUAL REPORT | 81

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.

82 | THE RYDEX FUNDS 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 ANNUAL REPORT | 83

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Item 2. Code of Ethics.

The registrant’s Board of Trustees has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report.  The Code is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The registrant's Board of Trustees has determined that Werner Keller, an "independent" Trustee serving on the registrant's audit committee, is an "audit committee financial expert," as defined in Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a)Audit Fees: The aggregate Audit Fees billed by the registrant’s principal accountant, for the audit of the annual financial statements in connection with statutory and regulatory filings for the fiscal years ended March 31, 2015 and March 31, 2014 were $744,325 and $694,276, respectively.

(b)Audit Related Fees: The aggregate Audit Related Fees by the registrant’s principal accountant billed for the fiscal years ended March 31, 2015 and March 31, 2014 were $0 and $0, respectively.

The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor to the registrant’s investment adviser (not including any sub‑investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant (“Service Affiliates”) which required pre‑approval by the Audit Committee which related to the review of the transfer agent function for the fiscal years ended March 31, 2015 and March 31, 2014 were $36,750 and $35,000, respectively.

(c)Tax Fees: The aggregate Tax Fees billed by the registrant’s principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended March 31, 2015 and March 31, 2014 were $334,575 and $339,662, respectively.

(d)All Other Fees: The aggregate All Other Fees billed by the registrant’s principal accountant for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, for the fiscal years ended March 31, 2015 and March 31, 2014 were $0 and $0, respectively.

(e)The audit committee has adopted a policy whereby audit and non-audit services performed by the registrant’s principal accountant for the registrant, its investment advisor, and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings.  If such service is required between regularly scheduled audit committee meetings, the chairman of the audit committee, J. Kenneth Dalton, is authorized to pre-approve the service with full committee approval at the next scheduled meeting.  There shall be no waivers of the pre-approval process.  No services described in (b)-(d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)Not applicable.

(g)The aggregate non-audit fees billed by the registrant’s accountant for the most recent fiscal year and the preceding fiscal year for services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant were $371,325 and $374,662, respectively.  These aggregate fees were less than the aggregate fees billed for the same periods by the registrant’s principal accountant for audit services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant.

(h)All non-audit services rendered in (g) above were pre-approved by the registrant’s audit committee.  As such, the audit committee has considered these services in maintaining the principal accountant’s independence.

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)(1)The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

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

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

SIGNATURES

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

(Registrant)	Rydex Series Funds
By (Signature and Title)*	/s/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President and Chief Executive Officer
Date	June 9, 2015
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 and Chief Executive Officer
Date	June 9, 2015
By (Signature and Title)*	/s/ Nikolaos Bonos
	Nikolaos Bonos, Vice President and Treasurer
Date	June 9, 2015

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