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

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

Rydex Series Funds(Exact name of registrant as specified in charter)

805 King Farm Boulevard, Suite 600Rockville, Maryland 20850(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds

805 King Farm Boulevard, Suite 600Rockville, Maryland 20850

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 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 semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows:

9.30.2015

Rydex Funds Semi-Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

RSECF-SEMI-0915x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	17
BIOTECHNOLOGY FUND	24
CONSUMER PRODUCTS FUND	31
ELECTRONICS FUND	39
ENERGY FUND	45
ENERGY SERVICES FUND	54
FINANCIAL SERVICES FUND	60
HEALTH CARE FUND	68
INTERNET FUND	76
LEISURE FUND	83
PRECIOUS METALS FUND	91
REAL ESTATE FUND	97
RETAILING FUND	105
TECHNOLOGY FUND	112
TELECOMMUNICATIONS FUND	120
TRANSPORTATION FUND	127
UTILITIES FUND	134
NOTES TO FINANCIAL STATEMENTS	141
OTHER INFORMATION	149
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	152
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	155

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2015

Dear Shareholder:

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

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

Sincerely,

Donald C. Cacciapaglia
President
October 31, 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.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2015

At the end of the period, the underlying U.S. economy continued to maintain its strong footing. A market correction that began in August persisted through the end of the period; September and October are historically difficult times for the stock market, and by extension, risk assets of any kind, including credit.

Markets had been performing solidly for most of the period. Growth mid-year bounced back from a weather-induced slowdown in the first quarter, with GDP increasing 3.9% for the second quarter. The labor and housing markets continued to strengthen, and the drop in gas prices was acting as a tax cut, which was expected to increase consumer spending power going into the holiday season. Even though labor markets are moving toward full employment, questions remain about the viability of sustained economic expansion in the U.S. In particular, there is debate about the net effect of declining energy prices and a stronger dollar. These are both positive for the U.S. consumer, but low oil prices hurt the U.S. energy industry and a strong dollar is challenging for U.S. manufacturers. In addition, oil prices and the strong dollar exert a downward pressure on inflation, and a risk of deflation is a negative for the economy.

At the same time, currency devaluation, particularly in Japan and the euro zone, is putting pressure on countries to devalue to improve export competitiveness. Those countries slow to devalue, like China, are feeling economic pressure at home, driving down asset prices, and increasing deflationary pressures, escalating the risk of financial contagion abroad. China may have to devalue the renminbi further due to continued slowing in the economy. Combined with the tepid expansion in both Europe and Japan, the pressure will be for central banks there to increase easing measures.

The U.S. Federal Reserve (the “Fed”) is hard pressed to justify a rate increase based on its self-prescribed metrics, which include rising inflation and an improved employment situation with clearly rising wages. At best, policymakers can argue that the prospects for wage growth and inflation are improving, but clear evidence is lacking.

A preemptive rate increase seems risky and opens the Fed to potential criticism given the fragility in financial markets and the prospect that rising U.S. rates could further strengthen the dollar and also potentially exacerbate foreign economic turbulence. While prices and wages remain tame, the risk of another asset bubble is increasing. The longer policy remains highly accommodative, the greater the likelihood that asset classes including commercial real estate, equities, or certain categories of bonds could become overvalued.

At period end, the risk of financial contagion remained high, which could result in central banks providing additional liquidity or delaying rate increases. Use of the monetary printing press is a handy tool to prop up asset prices and temporarily spur economic growth, which is the main reason a recession does not appear to be on the horizon for either the G-7 nations or China. It’s also worth noting that there has never been a recession in the post-war period without the Fed first raising interest rates, after which it typically takes several years for a recession to be induced.

For the six months ended September 30, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.18%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -8.66%. The return of the MSCI Emerging Markets Index* was -19.28%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a -0.47% return for the period, while the Barclays U.S. Corporate High Yield Index* returned -4.85%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.02% for the six-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 SEMI-ANNUAL REPORT | 3

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

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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar (“USD”)-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 USD-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.

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.

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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2015 and ending September 30, 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 SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.33%	(4.69%)	$ 1,000.00	$ 953.10	$ 6.51
Advisor Class	1.73%	(4.85%)	1,000.00	951.50	8.46
A-Class	1.58%	(4.80%)	1,000.00	952.00	7.73
C-Class	2.33%	(5.16%)	1,000.00	948.40	11.38
Basic Materials Fund
Investor Class	1.34%	(21.10%)	1,000.00	789.00	6.01
Advisor Class	1.75%	(21.26%)	1,000.00	787.40	7.84
A-Class	1.59%	(21.18%)	1,000.00	788.20	7.13
C-Class	2.34%	(21.49%)	1,000.00	785.10	10.47
Biotechnology Fund
Investor Class	1.31%	(13.22%)	1,000.00	867.80	6.13
Advisor Class	1.69%	(13.40%)	1,000.00	866.00	7.91
A-Class	1.56%	(13.34%)	1,000.00	866.60	7.30
C-Class	2.31%	(13.65%)	1,000.00	863.50	10.79
Consumer Products Fund
Investor Class	1.33%	(2.08%)	1,000.00	979.20	6.60
Advisor Class	1.71%	(2.27%)	1,000.00	977.30	8.48
A-Class	1.58%	(2.20%)	1,000.00	978.00	7.83
C-Class	2.33%	(2.56%)	1,000.00	974.40	11.53
Electronics Fund
Investor Class	1.33%	(14.50%)	1,000.00	855.00	6.18
Advisor Class	1.79%	(14.62%)	1,000.00	853.80	8.32
A-Class	1.58%	(14.61%)	1,000.00	853.90	7.34
C-Class	2.33%	(14.93%)	1,000.00	850.70	10.81
Energy Fund
Investor Class	1.33%	(25.04%)	1,000.00	749.60	5.83
Advisor Class	1.74%	(25.16%)	1,000.00	748.40	7.63
A-Class	1.59%	(25.11%)	1,000.00	748.90	6.97
C-Class	2.33%	(25.43%)	1,000.00	745.70	10.20
Energy Services Fund
Investor Class	1.33%	(25.28%)	1,000.00	747.20	5.83
Advisor Class	1.72%	(25.47%)	1,000.00	745.30	7.53
A-Class	1.58%	(25.38%)	1,000.00	746.20	6.92
C-Class	2.33%	(25.67%)	1,000.00	743.30	10.18
Financial Services Fund
Investor Class	1.33%	(7.26%)	1,000.00	927.40	6.43
Advisor Class	1.69%	(7.43%)	1,000.00	925.70	8.16
A-Class	1.58%	(7.37%)	1,000.00	926.30	7.63
C-Class	2.33%	(7.74%)	1,000.00	922.60	11.23
Health Care Fund
Investor Class	1.33%	(11.39%)	1,000.00	886.10	6.29
Advisor Class	1.74%	(11.59%)	1,000.00	884.10	8.22
A-Class	1.58%	(11.52%)	1,000.00	884.80	7.47
C-Class	2.33%	(11.84%)	1,000.00	881.60	10.99

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Internet Fund
Investor Class	1.33%	(4.96%)	$ 1,000.00	$ 950.40	$ 6.50
Advisor Class	1.71%	(5.15%)	1,000.00	948.50	8.35
A-Class	1.58%	(5.09%)	1,000.00	949.10	7.72
C-Class	2.33%	(5.43%)	1,000.00	945.70	11.36
Leisure Fund
Investor Class	1.33%	(5.35%)	1,000.00	946.50	6.49
Advisor Class	1.67%	(5.53%)	1,000.00	944.70	8.14
A-Class	1.58%	(5.47%)	1,000.00	945.30	7.70
C-Class	2.33%	(5.84%)	1,000.00	941.60	11.34
Precious Metals Fund
Investor Class	1.23%	(26.64%)	1,000.00	733.60	5.35
Advisor Class	1.63%	(26.82%)	1,000.00	731.80	7.08
A-Class	1.48%	(26.73%)	1,000.00	732.70	6.43
C-Class	2.23%	(26.95%)	1,000.00	730.50	9.67
Real Estate Fund
A-Class	1.67%	(10.93%)	1,000.00	890.70	7.92
C-Class	2.38%	(11.29%)	1,000.00	887.10	11.26
H-Class	1.69%	(10.95%)	1,000.00	890.50	8.01
Retailing Fund
Investor Class	1.33%	(7.54%)	1,000.00	924.60	6.42
Advisor Class	1.75%	(7.70%)	1,000.00	923.00	8.44
A-Class	1.58%	(7.64%)	1,000.00	923.60	7.62
C-Class	2.33%	(7.97%)	1,000.00	920.30	11.22
Technology Fund
Investor Class	1.33%	(7.82%)	1,000.00	921.80	6.41
Advisor Class	1.76%	(7.99%)	1,000.00	920.10	8.47
A-Class	1.58%	(7.94%)	1,000.00	920.60	7.61
C-Class	2.33%	(8.26%)	1,000.00	917.40	11.20
Telecommunications Fund
Investor Class	1.33%	(9.72%)	1,000.00	902.80	6.34
Advisor Class	1.74%	(10.00%)	1,000.00	900.00	8.29
A-Class	1.57%	(9.97%)	1,000.00	900.30	7.48
C-Class	2.33%	(10.24%)	1,000.00	897.60	11.08
Transportation Fund
Investor Class	1.33%	(13.58%)	1,000.00	864.20	6.22
Advisor Class	1.77%	(13.73%)	1,000.00	862.70	8.27
A-Class	1.58%	(13.67%)	1,000.00	863.30	7.38
C-Class	2.33%	(14.00%)	1,000.00	860.00	10.86
Utilities Fund
Investor Class	1.33%	(5.44%)	1,000.00	945.60	6.49
Advisor Class	1.75%	(5.62%)	1,000.00	943.80	8.53
A-Class	1.58%	(5.50%)	1,000.00	945.00	7.70
C-Class	2.33%	(5.90%)	1,000.00	941.00	11.34

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 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	$ 1,018.40	$ 6.73
Advisor Class	1.73%	5.00%	1,000.00	1,016.39	8.74
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Basic Materials Fund
Investor Class	1.34%	5.00%	1,000.00	1,018.35	6.78
Advisor Class	1.75%	5.00%	1,000.00	1,016.29	8.85
A-Class	1.59%	5.00%	1,000.00	1,017.10	8.04
C-Class	2.34%	5.00%	1,000.00	1,013.34	11.81
Biotechnology Fund
Investor Class	1.31%	5.00%	1,000.00	1,018.50	6.63
Advisor Class	1.69%	5.00%	1,000.00	1,016.60	8.54
A-Class	1.56%	5.00%	1,000.00	1,017.25	7.89
C-Class	2.31%	5.00%	1,000.00	1,013.49	11.66
Consumer Products Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.71%	5.00%	1,000.00	1,016.50	8.64
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Electronics Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.79%	5.00%	1,000.00	1,016.09	9.05
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Energy Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.74%	5.00%	1,000.00	1,016.34	8.80
A-Class	1.59%	5.00%	1,000.00	1,017.10	8.04
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Energy Services Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.72%	5.00%	1,000.00	1,016.44	8.69
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Financial Services Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.69%	5.00%	1,000.00	1,016.60	8.54
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Health Care Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.74%	5.00%	1,000.00	1,016.34	8.80
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Internet Fund
Investor Class	1.33%	5.00%	$ 1,000.00	$ 1,018.40	$ 6.73
Advisor Class	1.71%	5.00%	1,000.00	1,016.50	8.64
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Leisure Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.67%	5.00%	1,000.00	1,016.70	8.44
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Precious Metals Fund
Investor Class	1.23%	5.00%	1,000.00	1,018.90	6.23
Advisor Class	1.63%	5.00%	1,000.00	1,016.90	8.24
A-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
C-Class	2.23%	5.00%	1,000.00	1,013.89	11.26
Real Estate Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.38%	5.00%	1,000.00	1,013.14	12.01
H-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
Retailing Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.75%	5.00%	1,000.00	1,016.29	8.85
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Technology Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.76%	5.00%	1,000.00	1,016.24	8.90
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Telecommunications Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.74%	5.00%	1,000.00	1,016.34	8.80
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Transportation Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.77%	5.00%	1,000.00	1,016.19	8.95
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
Utilities Fund
Investor Class	1.33%	5.00%	1,000.00	1,018.40	6.73
Advisor Class	1.75%	5.00%	1,000.00	1,016.29	8.85
A-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2015 to September 30, 2015.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

FUND PROFILE (Unaudited) September 30, 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”).

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)
Wells Fargo & Co.	4.0%
Bank of America Corp.	4.0%
JPMorgan Chase & Co.	3.9%
Citigroup, Inc.	3.9%
U.S. Bancorp	3.0%
PNC Financial Services Group, Inc.	2.4%
Bank of New York Mellon Corp.	2.4%
Capital One Financial Corp.	2.2%
BB&T Corp.	1.9%
State Street Corp.	1.8%
Top Ten Total	29.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
BANKING FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Banks - 94.3%
Wells Fargo & Co.		9,789	$	502,664
Bank of America Corp.		32,217		501,941
JPMorgan Chase & Co.		8,205		500,259
Citigroup, Inc.		10,008		496,497
U.S. Bancorp		9,386		384,920
PNC Financial Services Group, Inc.		3,458		308,454
Bank of New York Mellon Corp.		7,665		300,085
Capital One Financial Corp.		3,870		280,652
BB&T Corp.		6,701		238,555
State Street Corp.		3,474		233,488
SunTrust Banks, Inc.		5,234		200,148
M&T Bank Corp.		1,531		186,706
Northern Trust Corp.		2,653		180,828
Fifth Third Bancorp		9,250		174,918
Citizens Financial Group, Inc.		6,751		161,079
Regions Financial Corp.		17,339		156,224
KeyCorp		11,416		148,522
First Republic Bank		2,165		135,896
Itau Unibanco Holding S.A. ADR		20,027		132,579
Huntington Bancshares, Inc.		12,407		131,514
HDFC Bank Ltd. ADR		2,148		131,221
Royal Bank of Canada		2,339		129,230
ICICI Bank Ltd. ADR		15,125		126,748
CIT Group, Inc.		3,154		126,255
Bank of Montreal		2,243		122,356
Toronto-Dominion Bank		3,102		122,281
Signature Bank*		881		121,190
Comerica, Inc.		2,946		121,081
Popular, Inc.		3,886		117,474
HSBC Holdings plc ADR		3,100		117,428
Credicorp Ltd.		1,104		117,421
Bank of Nova Scotia		2,637		116,239
Canadian Imperial Bank of Commerce		1,600		115,136
UBS Group AG		6,158		114,046
Deutsche Bank AG		4,218		113,717
Banco Bradesco S.A. ADR		20,829		111,643
ING Groep N.V. ADR		7,756		109,592
Barclays plc ADR		7,290		107,746
SVB Financial Group*		927		107,106
Banco Santander S.A. ADR		20,132		106,297
Zions Bancorporation		3,844		105,864
Grupo Financiero Santander Mexico SAB de CV ADR		14,404		105,725
East West Bancorp, Inc.		2,742		105,348
Credit Suisse Group AG ADR*		4,336		104,194
Sumitomo Mitsui Financial Group, Inc. ADR		13,503		103,028
Banco Bilbao Vizcaya Argentaria S.A. ADR		12,261		102,625
Banco Santander Chile ADR		5,596		101,959
City National Corp.		1,148		101,093
Bancolombia S.A. ADR		3,115		100,303
BOK Financial Corp.		1,502		97,193
Commerce Bancshares, Inc.		2,094		95,403
PacWest Bancorp		2,210		94,610
Cullen/Frost Bankers, Inc.		1,450		92,191
Synovus Financial Corp.		3,036		89,866
Bank of the Ozarks, Inc.		2,032		88,920
BankUnited, Inc.		2,451		87,623
Umpqua Holdings Corp.		5,278		86,031
Prosperity Bancshares, Inc.		1,711		84,027
Webster Financial Corp.		2,325		82,840
First Horizon National Corp.		5,810		82,386
Western Alliance Bancorporation*		2,620		80,460
PrivateBancorp, Inc. — Class A		2,072		79,420
Home BancShares, Inc.		1,916		77,598
FirstMerit Corp.		4,380		77,395
Bank of Hawaii Corp.		1,199		76,125
United Bankshares, Inc.		1,998		75,904
First Citizens BancShares, Inc. — Class A		330		74,580
Associated Banc-Corp.		4,148		74,540
Wintrust Financial Corp.		1,379		73,680
UMB Financial Corp.		1,447		73,522
TCF Financial Corp.		4,795		72,692
MB Financial, Inc.		2,194		71,612
Cathay General Bancorp		2,380		71,305
Valley National Bancorp		7,135		70,208
FNB Corp.		5,360		69,412
IBERIABANK Corp.		1,191		69,328
BancorpSouth, Inc.		2,906		69,076
Texas Capital Bancshares, Inc.*		1,311		68,723
Fulton Financial Corp.		5,493		66,465
First Financial Bankshares, Inc.		2,082		66,166
Hancock Holding Co.		2,416		65,353
Glacier Bancorp, Inc.		2,420		63,864
Hilltop Holdings, Inc.*		3,174		62,877
South State Corp.		817		62,802
Columbia Banking System, Inc.		1,983		61,889
Pinnacle Financial Partners, Inc.		1,250		61,763
CVB Financial Corp.		3,637		60,738
National Penn Bancshares, Inc.		4,978		58,492
Community Bank System, Inc.		1,560		57,985
Old National Bancorp		4,154		57,865
Trustmark Corp.		2,481		57,485
Great Western Bancorp, Inc.		2,140		54,292
First Midwest Bancorp, Inc.		3,024		53,041
Westamerica Bancorporation		1,098		48,795
Boston Private Financial Holdings, Inc.		3,880		45,396
Total Banks				11,952,213
Savings & Loans - 3.8%
New York Community Bancorp, Inc.		7,223		130,448
People’s United Financial, Inc.		6,458		101,584
Investors Bancorp, Inc.		7,770		95,882
First Niagara Financial Group, Inc.		9,000		91,890

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
BANKING FUND

	Shares		Value
Sterling Bancorp		4,341	$	64,551
Total Savings & Loans				484,355
Insurance - 1.0%
Voya Financial, Inc.		3,353		129,996
Real Estate - 0.4%
HFF, Inc. — Class A		1,490		50,302
Total Common Stocks
(Cost $8,725,734)				12,616,866

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	52,803		52,803
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		12,762		12,762
Total Repurchase Agreements
(Cost $65,565)			$	65,565
Total Investments - 100.0%
(Cost $8,791,299)			$	12,682,431
Other Assets & Liabilities, net - 0.0%				(4,353	)
Total Net Assets - 100.0%			$	12,678,078

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $8,725,734)	$	12,616,866
Repurchase agreements, at value (cost $65,565)		65,565
Total investments (cost $8,791,299)		12,682,431
Receivables:
Securities sold		1,064,949
Fund shares sold		219,107
Dividends		26,299
Foreign taxes reclaim		236
Total assets		13,993,022
Liabilities:
Payable for:
Fund shares redeemed		1,290,929
Management fees		9,730
Distribution and service fees		3,629
Transfer agent and administrative fees		2,862
Portfolio accounting fees		1,145
Miscellaneous		6,649
Total liabilities		1,314,944
Commitments and contingent liabilities (Note 9)		—
Net assets	$	12,678,078
Net assets consist of:
Paid in capital	$	35,035,323
Undistributed net investment income		282,160
Accumulated net realized loss on investments		(26,530,537	)
Net unrealized appreciation on investments		3,891,132
Net assets	$	12,678,078
Investor Class:
Net assets	$	7,390,535
Capital shares outstanding		123,622
Net asset value per share	$	59.78
Advisor Class:
Net assets	$	504,121
Capital shares outstanding		9,410
Net asset value per share	$	53.57
A-Class:
Net assets	$	977,943
Capital shares outstanding		17,783
Net asset value per share	$	54.99
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.73
C-Class:
Net assets	$	3,805,479
Capital shares outstanding		75,217
Net asset value per share	$	50.59

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $11,369)	$	526,177
Income from securities lending, net		1,726
Interest		36
Total investment income		527,939
Expenses:
Management fees		189,338
Transfer agent and administrative fees		55,687
Distribution and service fees:
Advisor Class		11,486
A-Class		3,826
C-Class		18,970
Portfolio accounting fees		22,275
Custodian fees		2,568
Trustees’ fees*		1,220
Line of credit fees		44
Miscellaneous		24,859
Total expenses		330,273
Net investment income		197,666
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,180,305	)
Net realized loss		(1,180,305	)
Net change in unrealized appreciation (depreciation) on:
Investments		140,060
Net change in unrealized appreciation (depreciation)		140,060
Net realized and unrealized loss		(1,040,245	)
Net decrease in net assets resulting from operations	$	(842,579	)

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

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

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	197,666		$	84,494
Net realized loss on investments		(1,180,305	)		(1,094,981	)
Net change in unrealized appreciation (depreciation) on investments		140,060			(1,758,526	)
Net decrease in net assets resulting from operations		(842,579	)		(2,769,013	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(62,935	)
Advisor Class		—			(2,498	)
A-Class		—			(9,050	)
C-Class		—			(30,239	)
Total distributions to shareholders		—			(104,722	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		58,589,104			83,258,043
Advisor Class		54,481,143			50,602,118
A-Class		5,746,143			8,604,560
C-Class		11,149,532			17,385,423
Distributions reinvested
Investor Class		—			61,028
Advisor Class		—			2,476
A-Class		—			6,880
C-Class		—			27,648
Cost of shares redeemed
Investor Class		(95,489,525	)		(48,577,787	)
Advisor Class		(54,408,923	)		(50,158,024	)
A-Class		(5,362,735	)		(15,238,033	)
C-Class		(10,205,184	)		(18,472,784	)
Net increase (decrease) from capital share transactions		(35,500,445	)		27,501,548
Net increase (decrease) in net assets		(36,343,024	)		24,627,813
Net assets:
Beginning of period		49,021,102			24,393,289
End of period	$	12,678,078		$	49,021,102
Undistributed net investment income at end of period	$	282,160		$	84,494
Capital share activity:
Shares sold
Investor Class		881,298			1,317,679
Advisor Class		934,778			911,673
A-Class		94,037			147,860
C-Class		202,272			323,866
Shares issued from reinvestment of distributions
Investor Class		—			954
Advisor Class		—			43
A-Class		—			117
C-Class		—			507
Shares redeemed
Investor Class		(1,459,091	)		(793,962	)
Advisor Class		(940,413	)		(906,078	)
A-Class		(94,494	)		(271,097	)
C-Class		(185,759	)		(344,416	)
Net increase (decrease) in shares		(567,372	)		387,146

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

BANKING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	62.71		$	63.60		$	52.58		$	46.75		$	49.75		$	50.73
Income (loss) from investment operations:
Net investment income (loss)b		.36			.51			.54			.54			.44			.13
Net gain (loss) on investments (realized and unrealized)		(3.29	)		(.98	)		11.09			5.44			(3.39	)		(.99	)
Total from investment operations		(2.93	)		(.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	$	59.78		$	62.71		$	63.60		$	52.58		$	46.75		$	49.75
Total Returnc		(4.69	%)		(0.73	%)		22.17	%		12.84	%		(5.89	%)		(1.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,391		$	43,989		$	11,241		$	8,915		$	29,061		$	8,711
Ratios to average net assets:
Net investment income (loss)		1.09	%		0.82	%		0.92	%		1.16	%		1.02	%		0.27	%
Total expenses		1.33	%		1.34	%		1.37	%		1.35	%		1.34	%		1.39	%
Portfolio turnover rate		218	%		583	%		481	%		382	%		544	%		1,130	%

Advisor Class	Period Ended September 30, 2015a			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	$	56.30		$	57.40		$	47.71		$	42.63		$	45.63		$	46.79
Income (loss) from investment operations:
Net investment income (loss)b		.15			(.01	)		.23			.17			.12			(.08	)
Net gain (loss) on investments (realized and unrealized)		(2.88	)		(.67	)		10.07			5.06			(3.07	)		(.96	)
Total from investment operations		(2.73	)		(.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	$	53.57		$	56.30		$	57.40		$	47.71		$	42.63		$	45.63
Total Returnc		(4.85	%)		(1.19	%)		21.64	%		12.32	%		(6.43	%)		(2.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	504		$	847		$	540		$	4,235		$	1,105		$	629
Ratios to average net assets:
Net investment income (loss)		0.50	%		(0.02	%)		0.44	%		0.38	%		0.30	%		(0.18	%)
Total expenses		1.73	%		1.85	%		1.87	%		1.86	%		1.83	%		1.89	%
Portfolio turnover rate		218	%		583	%		481	%		382	%		544	%		1,130	%

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

BANKING FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	57.76		$	58.75		$	48.74		$	43.45		$	46.38		$	47.41
Income (loss) from investment operations:
Net investment income (loss)b		.17			.26			.39			.36			.30			.04
Net gain (loss) on investments (realized and unrealized)		(2.94	)		(.83	)		10.23			5.08			(3.18	)		(.95	)
Total from investment operations		(2.77	)		(.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	$	54.99		$	57.76		$	58.75		$	48.74		$	43.45		$	46.38
Total Returnc		(4.80	%)		(0.98	%)		21.84	%		12.60	%		(6.19	%)		(1.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	978		$	1,054		$	8,305		$	2,103		$	3,088		$	913
Ratios to average net assets:
Net investment income (loss)		0.57	%		0.45	%		0.71	%		0.88	%		0.73	%		0.09	%
Total expenses		1.58	%		1.60	%		1.62	%		1.59	%		1.61	%		1.64	%
Portfolio turnover rate		218	%		583	%		481	%		382	%		544	%		1,130	%

C-Class	Period Ended September 30, 2015a			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	$	53.34		$	54.69		$	45.74		$	41.09		$	44.20		$	45.51
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.14	)		(.05	)		.01			(.01	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		(2.76	)		(.79	)		9.61			4.79			(3.05	)		(.90	)
Total from investment operations		(2.75	)		(.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	$	50.59		$	53.34		$	54.69		$	45.74		$	41.09		$	44.20
Total Returnc		(5.16	%)		(1.71	%)		20.95	%		11.74	%		(6.88	%)		(2.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,805		$	3,131		$	4,307		$	4,036		$	3,841		$	2,844
Ratios to average net assets:
Net investment income (loss)		0.03	%		(0.26	%)		(0.10	%)		0.02	%		(0.03	%)		(0.67	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.35	%		2.38	%
Portfolio turnover rate		218	%		583	%		481	%		382	%		544	%		1,130	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
Dow Chemical Co.	2.9%
EI du Pont de Nemours & Co.	2.9%
Monsanto Co.	2.7%
LyondellBasell Industries N.V. — Class A	2.6%
Ecolab, Inc.	2.4%
Praxair, Inc.	2.3%
Air Products & Chemicals, Inc.	2.2%
PPG Industries, Inc.	2.0%
Sherwin-Williams Co.	1.9%
Sigma-Aldrich Corp.	1.8%
Top Ten Total	23.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Chemicals - 50.5%
Dow Chemical Co.		10,354	$	439,011
EI du Pont de Nemours & Co.		8,948		431,294
Monsanto Co.		4,726		403,316
LyondellBasell Industries N.V. — Class A		4,686		390,625
Ecolab, Inc.		3,291		361,089
Praxair, Inc.		3,352		341,434
Air Products & Chemicals, Inc.		2,548		325,074
PPG Industries, Inc.		3,480		305,161
Sherwin-Williams Co.		1,266		282,040
Sigma-Aldrich Corp.		1,919		266,587
Mosaic Co.		6,210		193,193
Eastman Chemical Co.		2,968		192,089
CF Industries Holdings, Inc.		4,270		191,723
Celanese Corp. — Class A		3,232		191,237
International Flavors & Fragrances, Inc.		1,781		183,906
Westlake Chemical Corp.		3,210		166,567
Ashland, Inc.		1,642		165,218
WR Grace & Co.*		1,775		165,164
Airgas, Inc.		1,826		163,117
Axalta Coating Systems Ltd.*		6,010		152,293
Valspar Corp.		2,115		152,026
Cytec Industries, Inc.		2,036		150,359
RPM International, Inc.		3,561		149,170
Albemarle Corp.		3,269		144,163
Potash Corporation of Saskatchewan, Inc.		6,690		137,480
NewMarket Corp.		366		130,662
FMC Corp.		3,791		128,553
Agrium, Inc.		1,433		128,254
Sensient Technologies Corp.		1,730		106,049
Methanex Corp.		3,180		105,449
PolyOne Corp.		3,432		100,695
Syngenta AG ADR		1,540		98,221
Chemtura Corp.*		3,180		91,012
Platform Specialty Products Corp.*		7,160		90,574
Cabot Corp.		2,740		86,474
HB Fuller Co.		2,463		83,594
Huntsman Corp.		8,215		79,603
Minerals Technologies, Inc.		1,645		79,223
Olin Corp.		4,198		70,568
Chemours Co.		8,891		57,525
Axiall Corp.		3,650		57,269
Total Chemicals				7,537,061
Mining - 19.3%
Alcoa, Inc.		23,604		228,014
Freeport-McMoRan, Inc.		18,968		183,800
Newmont Mining Corp.		11,245		180,707
Barrick Gold Corp.		28,238		179,594
Goldcorp, Inc.		14,159		177,271
Rio Tinto plc ADR		4,705		159,123
Agnico Eagle Mines Ltd.		6,223		157,566
Silver Wheaton Corp.		11,696		140,469
BHP Billiton Ltd. ADR		4,385		138,654
Franco-Nevada Corp.		3,148		138,575
Randgold Resources Ltd. ADR		2,244		132,598
Southern Copper Corp.		4,950		132,264
Eldorado Gold Corp.		38,192		122,978
AngloGold Ashanti Ltd. ADR*		14,739		120,712
Royal Gold, Inc.		2,363		111,014
Compass Minerals International, Inc.		1,288		100,941
Pan American Silver Corp.		15,817		100,438
Cia de Minas Buenaventura S.A.A. ADR		16,723		99,669
Teck Resources Ltd. — Class B		18,084		86,803
Stillwater Mining Co.*		7,259		74,985
Kaiser Aluminum Corp.		930		74,633
Century Aluminum Co.*		7,920		36,432
Total Mining				2,877,240
Packaging & Containers - 11.4%
WestRock Co.		4,404		226,541
Sealed Air Corp.		4,133		193,755
Ball Corp.		2,924		181,872
Crown Holdings, Inc.*		3,464		158,478
Packaging Corporation of America		2,520		151,603
Graphic Packaging Holding Co.		9,969		127,504
Sonoco Products Co.		3,260		123,032
Bemis Company, Inc.		3,082		121,955
Berry Plastics Group, Inc.*		3,986		119,859
Owens-Illinois, Inc.*		5,611		116,260
Silgan Holdings, Inc.		2,190		113,968
KapStone Paper and Packaging Corp.		4,521		74,642
Total Packaging & Containers				1,709,469
Iron & Steel - 7.2%
Nucor Corp.		5,687		213,547
Vale S.A. ADR		35,992		151,166
Steel Dynamics, Inc.		7,520		129,194
Reliance Steel & Aluminum Co.		2,338		126,275
ArcelorMittal		17,564		90,455
Commercial Metals Co.		5,557		75,297
Carpenter Technology Corp.		2,475		73,681
Allegheny Technologies, Inc.		4,988		70,730
United States Steel Corp.		6,722		70,043
AK Steel Holding Corp.*		16,313		39,314
Cliffs Natural Resources, Inc.		13,745		33,538
Total Iron & Steel				1,073,240
Building Materials - 5.4%
Vulcan Materials Co.		2,358		210,333
Martin Marietta Materials, Inc.		1,269		192,825
Cemex SAB de CV ADR*		22,063		154,220
Eagle Materials, Inc.		1,611		110,225
Louisiana-Pacific Corp.*		6,123		87,192

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
BASIC MATERIALS FUND

	Shares		Value
Boise Cascade Co.*		2,330	$	58,763
Total Building Materials				813,558
Forest Products & Paper - 2.4%
International Paper Co.		6,591		249,074
Domtar Corp.		3,043		108,787
Total Forest Products & Paper				357,861
Household Products & Housewares - 1.0%
Avery Dennison Corp.		2,537		143,518
Miscellaneous Manufacturing - 0.9%
AptarGroup, Inc.		1,964		129,545
Housewares - 0.8%
Scotts Miracle-Gro Co. — Class A		2,050		124,681
Oil & Gas Services - 0.4%
Flotek Industries, Inc.*		3,367		56,229
Total Common Stocks
(Cost $8,645,171)				14,822,402

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.1%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	12,787		12,787
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		3,091		3,091
Total Repurchase Agreements
(Cost $15,878)				15,878
Total Investments - 99.4%
(Cost $8,661,049)			$	14,838,280
Other Assets & Liabilities, net - 0.6%				82,260
Total Net Assets - 100.0%			$	14,920,540

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $8,645,171)	$	14,822,402
Repurchase agreements, at value (cost $15,878)		15,878
Total investments (cost $8,661,049)		14,838,280
Cash		755
Receivables:
Fund shares sold		121,239
Dividends		25,772
Securities lending income		28
Total assets		14,986,074
Liabilities:
Payable for:
Fund shares redeemed		40,321
Management fees		13,221
Transfer agent and administrative fees		3,889
Distribution and service fees		2,759
Portfolio accounting fees		1,556
Miscellaneous		3,788
Total liabilities		65,534
Commitments and contingent liabilities (Note 9)		—
Net assets	$	14,920,540
Net assets consist of:
Paid in capital	$	32,286,197
Undistributed net investment income		260,927
Accumulated net realized loss on investments		(23,803,815	)
Net unrealized appreciation on investments		6,177,231
Net assets	$	14,920,540
Investor Class:
Net assets	$	8,681,604
Capital shares outstanding		219,277
Net asset value per share	$	39.59
Advisor Class:
Net assets	$	1,028,639
Capital shares outstanding		28,288
Net asset value per share	$	36.36
A-Class:
Net assets	$	3,161,186
Capital shares outstanding		84,377
Net asset value per share	$	37.47
Maximum offering price per share (Net asset value divided by 95.25%)	$	39.34
C-Class:
Net assets	$	2,049,111
Capital shares outstanding		60,192
Net asset value per share	$	34.04

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $7,379)	$	319,009
Income from securities lending, net		11,126
Interest		26
Total investment income		330,161
Expenses:
Management fees		161,234
Transfer agent and administrative fees		47,421
Distribution and service fees:
Advisor Class		5,973
A-Class		8,161
C-Class		14,186
Portfolio accounting fees		18,969
Registration fees		17,732
Tax expense		2,366
Custodian fees		2,164
Trustees’ fees*		1,590
Line of credit fees		70
Miscellaneous		2,644
Total expenses		282,510
Net investment income		47,651
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,021,456
Net realized gain		4,021,456
Net change in unrealized appreciation (depreciation) on:
Investments		(9,616,077	)
Net change in unrealized appreciation (depreciation)		(9,616,077	)
Net realized and unrealized loss		(5,594,621	)
Net decrease in net assets resulting from operations	$	(5,546,970	)

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	47,651		$	201,682
Net realized gain on investments		4,021,456			451,596
Net change in unrealized appreciation (depreciation) on investments		(9,616,077	)		(3,176,749	)
Net decrease in net assets resulting from operations		(5,546,970	)		(2,523,471	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(126,318	)
Advisor Class		—			(15,206	)
A-Class		—			(52,521	)
C-Class		—			(38,108	)
Total distributions to shareholders		—			(232,153	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		33,646,111			174,133,848
Advisor Class		58,297,783			93,725,732
A-Class		12,870,780			17,363,620
C-Class		4,064,907			21,170,418
Distributions reinvested
Investor Class		—			122,696
Advisor Class		—			14,751
A-Class		—			48,718
C-Class		—			33,909
Cost of shares redeemed
Investor Class		(68,730,515	)		(159,713,668	)
Advisor Class		(58,631,572	)		(93,948,162	)
A-Class		(14,418,726	)		(24,254,035	)
C-Class		(4,539,479	)		(22,896,209	)
Net increase (decrease) from capital share transactions		(37,440,711	)		5,801,618
Net increase (decrease) in net assets		(42,987,681	)		3,045,994
Net assets:
Beginning of period		57,908,221			54,862,227
End of period	$	14,920,540		$	57,908,221
Undistributed net investment income at end of period	$	260,927		$	213,276
Capital share activity:
Shares sold
Investor Class		699,322			3,328,992
Advisor Class		1,305,069			1,959,976
A-Class		281,949			343,124
C-Class		96,770			460,459
Shares issued from reinvestment of distributions
Investor Class		—			2,376
Advisor Class		—			310
A-Class		—			995
C-Class		—			757
Shares redeemed
Investor Class		(1,406,953	)		(3,045,699	)
Advisor Class		(1,321,671	)		(1,970,445	)
A-Class		(327,853	)		(481,155	)
C-Class		(108,825	)		(501,150	)
Net increase (decrease) in shares		(782,192	)		98,540

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	50.18		$	52.53		$	49.94		$	49.80		$	56.36		$	44.65
Income (loss) from investment operations:
Net investment income (loss)b		.10			.29			.32			.46			.09			—	c
Net gain (loss) on investments (realized and unrealized)		(10.69	)		(2.26	)		2.58			(.15	)		(6.65	)		11.82
Total from investment operations		(10.59	)		(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	$	39.59		$	50.18		$	52.53		$	49.94		$	49.80		$	56.36
Total Returnd		(21.10	%)		(3.77	%)		5.84	%		0.65	%		(11.66	%)		26.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,682		$	46,509		$	33,687		$	36,012		$	36,847		$	73,606
Ratios to average net assets:
Net investment income (loss)		0.39	%		0.56	%		0.66	%		0.95	%		0.17	%		0.00	%e
Total expenses		1.34	%		1.34	%		1.38	%		1.36	%		1.36	%		1.39	%
Portfolio turnover rate		223	%		358	%		349	%		251	%		217	%		292	%

Advisor Class	Period Ended September 30, 2015a			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	$	46.19		$	48.64		$	46.50		$	46.61		$	53.00		$	42.20
Income (loss) from investment operations:
Net investment income (loss)b		—	c		—	c		.08			.19			.08			(.20	)
Net gain (loss) on investments (realized and unrealized)		(9.83	)		(2.07	)		2.37			(.13	)		(6.47	)		11.11
Total from investment operations		(9.83	)		(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	$	36.36		$	46.19		$	48.64		$	46.50		$	46.61		$	53.00
Total Returnd		(21.26	%)		(4.30	%)		5.31	%		0.16	%		(12.08	%)		25.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,029		$	2,073		$	2,678		$	3,616		$	5,287		$	15,986
Ratios to average net assets:
Net investment income (loss)		0.01	%		0.00	%e		0.18	%		0.43	%		0.17	%		(0.44	%)
Total expenses		1.75	%		1.85	%		1.88	%		1.86	%		1.86	%		1.89	%
Portfolio turnover rate		223	%		358	%		349	%		251	%		217	%		292	%

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	47.54		$	49.93		$	47.60		$	47.58		$	53.99		$	42.88
Income (loss) from investment operations:
Net investment income (loss)b		.03			.13			.22			.32			(.01	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(10.10	)		(2.14	)		2.42			(.13	)		(6.40	)		11.31
Total from investment operations		(10.07	)		(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	$	37.47		$	47.54		$	49.93		$	47.60		$	47.58		$	53.99
Total Returnd		(21.18	%)		(4.05	%)		5.58	%		0.41	%		(11.87	%)		26.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,161		$	6,194		$	13,347		$	11,104		$	9,410		$	18,187
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.27	%		0.47	%		0.69	%		(0.03	%)		(0.19	%)
Total expenses		1.59	%		1.60	%		1.63	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		223	%		358	%		349	%		251	%		217	%		292	%

C-Class	Period Ended September 30, 2015a			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	$	43.36		$	45.91		$	44.12		$	44.45		$	50.80		$	40.67
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.23	)		(.15	)		(.03	)		(.33	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		(9.21	)		(1.94	)		2.25			(.13	)		(6.02	)		10.64
Total from investment operations		(9.32	)		(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	$	34.04		$	43.36		$	45.91		$	44.12		$	44.45		$	50.80
Total Returnd		(21.49	%)		(4.76	%)		4.80	%		(0.35	%)		(12.50	%)		25.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,049		$	3,133		$	5,150		$	6,666		$	8,317		$	13,353
Ratios to average net assets:
Net investment income (loss)		(0.51	%)		(0.49	%)		(0.34	%)		(0.07	%)		(0.73	%)		(0.93	%)
Total expenses		2.34	%		2.35	%		2.38	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		223	%		358	%		349	%		251	%		217	%		292	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Less than 0.01%.

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

FUND PROFILE (Unaudited) September 30, 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 other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services (“Biotechnology Companies”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Gilead Sciences, Inc.	7.5%
Amgen, Inc.	6.5%
Celgene Corp.	5.8%
Biogen, Inc.	5.3%
Regeneron Pharmaceuticals, Inc.	4.3%
Alexion Pharmaceuticals, Inc.	3.8%
Illumina, Inc.	3.1%
Vertex Pharmaceuticals, Inc.	3.0%
Incyte Corp.	2.7%
BioMarin Pharmaceutical, Inc.	2.5%
Top Ten Total	44.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 100.0%
Biotechnology - 72.5%
Gilead Sciences, Inc.		483,002	$	47,425,965
Amgen, Inc.		298,399		41,274,549
Celgene Corp.*		336,505		36,399,746
Biogen, Inc.*		113,981		33,260,796
Regeneron Pharmaceuticals, Inc.*		58,194		27,068,357
Alexion Pharmaceuticals, Inc.*		154,771		24,204,637
Illumina, Inc.*		111,523		19,607,974
Vertex Pharmaceuticals, Inc.*		180,970		18,846,216
Incyte Corp.*		156,499		17,266,535
BioMarin Pharmaceutical, Inc.*		149,944		15,792,102
Medivation, Inc.*		238,290		10,127,325
United Therapeutics Corp.*		73,286		9,618,055
Alnylam Pharmaceuticals, Inc.*		118,733		9,541,384
Seattle Genetics, Inc.*		226,394		8,729,753
Bio-Rad Laboratories, Inc. — Class A*		60,769		8,161,884
Intercept Pharmaceuticals, Inc.*		48,635		8,066,601
Isis Pharmaceuticals, Inc.*		198,187		8,010,719
Charles River Laboratories International, Inc.*		106,965		6,794,417
Intrexon Corp.*		208,200		6,620,760
Myriad Genetics, Inc.*		170,080		6,374,598
Medicines Co.*		165,772		6,292,705
Kite Pharma, Inc.*		111,100		6,186,048
Bluebird Bio, Inc.*		69,400		5,937,170
Exact Sciences Corp.*		293,155		5,273,858
Ligand Pharmaceuticals, Inc. — Class B*		60,257		5,161,012
Novavax, Inc.*		699,185		4,943,238
Ultragenyx Pharmaceutical, Inc.*		49,100		4,728,821
Halozyme Therapeutics, Inc.*		348,555		4,681,094
AMAG Pharmaceuticals, Inc.*		111,700		4,437,841
Sage Therapeutics, Inc.*		96,900		4,100,808
Acorda Therapeutics, Inc.*		154,222		4,088,425
ZIOPHARM Oncology, Inc.*		439,862		3,963,157
ARIAD Pharmaceuticals, Inc.*		649,189		3,791,264
Achillion Pharmaceuticals, Inc.*		542,300		3,747,293
Merrimack Pharmaceuticals, Inc.*		437,300		3,721,423
PDL BioPharma, Inc.		737,970		3,711,989
Celldex Therapeutics, Inc.*		340,493		3,588,796
Repligen Corp.*		128,544		3,579,950
NewLink Genetics Corp.*		99,023		3,548,984
KYTHERA Biopharmaceuticals, Inc.*		26,200		1,964,476
Puma Biotechnology, Inc.*		26,016		1,960,566
Prothena Corporation plc*		37,400		1,695,716
Alder Biopharmaceuticals, Inc.*		47,000		1,539,720
Momenta Pharmaceuticals, Inc.*		86,800		1,424,388
ImmunoGen, Inc.*		107,200		1,029,120
Total Biotechnology				458,290,235
Pharmaceuticals - 24.2%
Anacor Pharmaceuticals, Inc.*		76,600		9,016,587
Mylan N.V.*		210,310		8,467,080
OPKO Health, Inc.*		972,940		8,182,426
Alkermes plc*		124,978		7,332,459
Clovis Oncology, Inc.*		78,697		7,236,976
Radius Health, Inc.*		103,600		7,180,516
Endo International plc*		98,600		6,831,008
ACADIA Pharmaceuticals, Inc.*		203,028		6,714,136
Neurocrine Biosciences, Inc.*		165,675		6,592,209
Dyax Corp.*		331,565		6,329,576
Agios Pharmaceuticals, Inc.*		85,704		6,049,845
Impax Laboratories, Inc.*		170,784		6,013,305
Baxalta, Inc.		189,200		5,961,692
Portola Pharmaceuticals, Inc.*		138,670		5,910,115
Quintiles Transnational Holdings, Inc.*		83,664		5,820,504
Insys Therapeutics, Inc.*		189,735		5,399,858
Nektar Therapeutics*		481,730		5,279,761
Chimerix, Inc.*		132,770		5,071,814
Jazz Pharmaceuticals plc*		37,900		5,033,499
Ironwood Pharmaceuticals, Inc. — Class A*		469,396		4,891,106
TESARO, Inc.*		111,903		4,487,310
Cempra, Inc.*		152,600		4,248,384
Horizon Pharma plc*		207,800		4,118,596
Depomed, Inc.*		195,800		3,690,830
Amicus Therapeutics, Inc.*		120,100		1,680,199
Ophthotech Corp.*		37,700		1,527,604
Sarepta Therapeutics, Inc.*		47,300		1,518,803
Eagle Pharmaceuticals, Inc.*		18,900		1,399,167
Heron Therapeutics, Inc.*		44,100		1,076,040
Total Pharmaceuticals				153,061,405
Health care-Products - 3.3%
Bio-Techne Corp.		82,797		7,655,411
Cepheid*		154,448		6,981,050
QIAGEN N.V.*		232,200		5,990,760
Total Health Care-Products				20,627,221
Total Common Stocks
(Cost $434,060,327)				631,978,861
RIGHTS††† - 0.0%
Chelsea Therapeutics International
Expires 12/31/17*		231,107		—
Clinical Data, Inc.
Expires 12/31/20*		24,000		—
Total Rights
(Cost $17,304)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
BIOTECHNOLOGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	1,162,596	$	1,162,596
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		280,986		280,986
Total Repurchase Agreements
(Cost $1,443,582)				1,443,582
Total Investments - 100.2%
(Cost $435,521,213)			$	633,422,443
Other Assets & Liabilities, net - (0.2)%				(1,136,345	)
Total Net Assets - 100.0%			$	632,286,098

*	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	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $434,077,631)	$	631,978,861
Repurchase agreements, at value (cost $1,443,582)		1,443,582
Total investments (cost $435,521,213)		633,422,443
Receivables:
Fund shares sold		2,511,917
Securities lending income		14,817
Dividends		2,703
Interest		2
Total assets		635,951,882
Liabilities:
Payable for:
Fund shares redeemed		2,686,213
Management fees		523,921
Transfer agent and administrative fees		154,094
Distribution and service fees		69,760
Portfolio accounting fees		45,966
Miscellaneous		185,830
Total liabilities		3,665,784
Commitments and contingent liabilities (Note 9)		—
Net assets	$	632,286,098
Net assets consist of:
Paid in capital	$	440,599,258
Accumulated net investment loss		(3,499,217	)
Accumulated net realized loss on investments		(2,715,173	)
Net unrealized appreciation on investments		197,901,230
Net assets	$	632,286,098
Investor Class:
Net assets	$	453,553,340
Capital shares outstanding		5,582,362
Net asset value per share	$	81.25
Advisor Class:
Net assets	$	58,289,442
Capital shares outstanding		788,228
Net asset value per share	$	73.95
A-Class:
Net assets	$	82,766,549
Capital shares outstanding		1,089,850
Net asset value per share	$	75.94
Maximum offering price per share (Net asset value divided by 95.25%)	$	79.73
C-Class:
Net assets	$	37,676,767
Capital shares outstanding		539,500
Net asset value per share	$	69.84

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	1,291,101
Income from securities lending, net		850,338
Interest		778
Total investment income		2,142,217
Expenses:
Management fees		3,354,545
Transfer agent and administrative fees		986,627
Distribution and service fees:
Advisor Class		140,164
A-Class		125,355
C-Class		225,381
Portfolio accounting fees		286,466
Custodian fees		45,427
Trustees’ fees*		22,089
Line of credit fees		6,705
Miscellaneous		448,676
Total expenses		5,641,435
Net investment loss		(3,499,218	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,529,383
Net realized gain		9,529,383
Net change in unrealized appreciation (depreciation) on:
Investments		(114,976,314	)
Net change in unrealized appreciation (depreciation)		(114,976,314	)
Net realized and unrealized loss		(105,446,931	)
Net decrease in net assets resulting from operations	$	(108,946,149	)

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(3,499,218	)	$	(2,286,391	)
Net realized gain on investments		9,529,383			37,059,172
Net change in unrealized appreciation (depreciation) on investments		(114,976,314	)		131,104,324
Net increase (decrease) in net assets resulting from operations		(108,946,149	)		165,877,105
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		322,918,566			565,896,488
Advisor Class		125,849,797			173,383,484
A-Class		32,252,087			66,728,700
C-Class		18,217,217			34,835,985
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		(287,743,845	)		(501,097,404	)
Advisor Class		(121,594,981	)		(163,288,238	)
A-Class		(24,949,675	)		(48,804,711	)
C-Class		(15,665,125	)		(30,485,330	)
Net increase from capital share transactions		49,284,041			116,645,794
Net increase (decrease) in net assets		(59,662,108	)		262,205,920
Net assets:
Beginning of period		691,948,206			429,742,286
End of period	$	632,286,098		$	691,948,206
(Accumulated net investment loss)/Undistributed net investment income at end of period	$	(3,499,217	)	$	1
Capital share activity:
Shares sold
Investor Class		3,274,433			7,040,074
Advisor Class		1,415,770			2,393,490
A-Class		348,933			882,961
C-Class		216,044			511,004
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		(3,011,663	)		(6,471,507	)
Advisor Class		(1,367,670	)		(2,283,995	)
A-Class		(277,709	)		(691,018	)
C-Class		(188,728	)		(470,009	)
Net increase in shares		409,410			1,163,182

28 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			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	$	93.63		$	68.47		$	48.97		$	36.90		$	29.16		$	27.34
Income (loss) from investment operations:
Net investment income (loss)b		(.37	)		(.27	)		(.51	)		(.40	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(12.01	)		28.59			20.01			12.47			8.08			2.15
Total from investment operations		(12.38	)		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	$	81.25		$	93.63		$	68.47		$	48.97		$	36.90		$	29.16
Total Returnc		(13.22	%)		42.19	%		39.82	%		32.71	%		26.54	%		6.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	453,553		$	498,068		$	313,324		$	171,844		$	89,027		$	44,686
Ratios to average net assets:
Net investment income (loss)		(0.76	%)		(0.34	%)		(0.82	%)		(0.98	%)		(1.09	%)		(1.26	%)
Total expenses		1.31	%		1.33	%		1.36	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		42	%		107	%		119	%		197	%		333	%		337	%

Advisor Class	Period Ended September 30, 2015a			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	$	85.38		$	62.98		$	45.27		$	34.27		$	27.22		$	25.66
Income (loss) from investment operations:
Net investment income (loss)b		(.51	)		(.61	)		(.74	)		(.56	)		(.48	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		(10.92	)		26.17			18.45			11.56			7.53			1.99
Total from investment operations		(11.43	)		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	$	73.95		$	85.38		$	62.98		$	45.27		$	34.27		$	27.22
Total Returnc		(13.40	%)		41.49	%		39.12	%		32.10	%		25.90	%		6.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	58,289		$	63,196		$	37,978		$	22,486		$	8,313		$	7,410
Ratios to average net assets:
Net investment income (loss)		(1.14	%)		(0.84	%)		(1.32	%)		(1.46	%)		(1.65	%)		(1.77	%)
Total expenses		1.69	%		1.83	%		1.86	%		1.86	%		1.87	%		1.89	%
Portfolio turnover rate		42	%		107	%		119	%		197	%		333	%		337	%

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	87.63		$	64.41		$	46.18		$	34.88		$	27.64		$	25.98
Income (loss) from investment operations:
Net investment income (loss)b		(.46	)		(.44	)		(.62	)		(.48	)		(.37	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		(11.23	)		26.82			18.85			11.78			7.61			2.03
Total from investment operations		(11.69	)		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	$	75.94		$	87.63		$	64.41		$	46.18		$	34.88		$	27.64
Total Returnc		(13.34	%)		41.83	%		39.48	%		32.40	%		26.19	%		6.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	82,767		$	89,260		$	51,270		$	26,391		$	4,741		$	2,211
Ratios to average net assets:
Net investment income (loss)		(1.01	%)		(0.59	%)		(1.07	%)		(1.21	%)		(1.30	%)		(1.51	%)
Total expenses		1.56	%		1.58	%		1.61	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		42	%		107	%		119	%		197	%		333	%		337	%

C-Class	Period Ended September 30, 2015a			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	$	80.88		$	60.10		$	43.41		$	33.04		$	26.38		$	24.96
Income (loss) from investment operations:
Net investment income (loss)b		(.74	)		(.92	)		(.99	)		(.73	)		(.58	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(10.30	)		24.86			17.68			11.10			7.24			1.96
Total from investment operations		(11.04	)		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	$	69.84		$	80.88		$	60.10		$	43.41		$	33.04		$	26.38
Total Returnc		(13.65	%)		40.75	%		38.45	%		31.39	%		25.25	%		5.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,677		$	41,424		$	27,170		$	13,677		$	6,969		$	3,393
Ratios to average net assets:
Net investment income (loss)		(1.76	%)		(1.34	%)		(1.82	%)		(1.96	%)		(2.06	%)		(2.27	%)
Total expenses		2.31	%		2.33	%		2.36	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		42	%		107	%		119	%		197	%		333	%		337	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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.	5.1%
Coca-Cola Co.	4.8%
PepsiCo, Inc.	4.3%
Philip Morris International, Inc.	3.9%
Altria Group, Inc.	3.7%
Kraft Heinz Co.	3.2%
Mondelez International, Inc. — Class A	2.9%
Reynolds American, Inc.	2.9%
Colgate-Palmolive Co.	2.7%
Kimberly-Clark Corp.	2.3%
Top Ten Total	35.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 31

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Food - 37.0%
Kraft Heinz Co.		120,790	$	8,525,358
Mondelez International, Inc. — Class A		186,626		7,814,030
Kroger Co.		155,894		5,623,096
General Mills, Inc.		98,437		5,525,268
Kellogg Co.		68,956		4,589,022
Sysco Corp.		117,415		4,575,662
Hershey Co.		45,892		4,216,557
Tyson Foods, Inc. — Class A		93,195		4,016,704
Hormel Foods Corp.		62,176		3,936,363
ConAgra Foods, Inc.		96,532		3,910,511
Campbell Soup Co.		73,917		3,746,114
JM Smucker Co.		30,631		3,494,691
Whole Foods Market, Inc.		99,042		3,134,679
McCormick & Company, Inc.		37,550		3,085,859
WhiteWave Foods Co. — Class A*		59,346		2,382,741
Ingredion, Inc.		27,230		2,377,451
BRF S.A. ADR		128,234		2,281,283
Flowers Foods, Inc.		89,492		2,214,032
Pilgrim’s Pride Corp.		105,200		2,186,056
Hain Celestial Group, Inc.*		40,560		2,092,896
Pinnacle Foods, Inc.		48,100		2,014,428
Post Holdings, Inc.*		29,600		1,749,360
TreeHouse Foods, Inc.*		22,201		1,727,016
Sprouts Farmers Market, Inc.*		76,125		1,606,238
Lancaster Colony Corp.		15,752		1,535,505
Cal-Maine Foods, Inc.		28,000		1,529,080
United Natural Foods, Inc.*		30,666		1,487,608
B&G Foods, Inc.		38,170		1,391,297
Darling Ingredients, Inc.*		111,774		1,256,340
SUPERVALU, Inc.*		174,632		1,253,858
Sanderson Farms, Inc.		17,209		1,180,021
Dean Foods Co.		70,451		1,163,851
Fresh Market, Inc.*		43,020		971,822
Total Food				98,594,797
Beverages - 23.9%
Coca-Cola Co.		318,956		12,796,514
PepsiCo, Inc.		120,505		11,363,622
Monster Beverage Corp.*		37,453		5,061,398
Constellation Brands, Inc. — Class A		36,858		4,614,990
Brown-Forman Corp. — Class B		45,530		4,411,857
Dr Pepper Snapple Group, Inc.		47,841		3,781,831
Molson Coors Brewing Co. — Class B		42,547		3,532,253
Anheuser-Busch InBev S.A. ADR		30,170		3,207,674
Coca-Cola Enterprises, Inc.		65,194		3,152,130
Ambev S.A. ADR		571,350		2,799,615
Keurig Green Mountain, Inc.		47,974		2,501,364
Diageo plc ADR		22,840		2,461,924
Fomento Economico Mexicano SAB de CV ADR		26,983		2,408,233
Boston Beer Company, Inc. — Class A*		7,335		1,544,824
Total Beverages				63,638,229
Agriculture - 15.5%
Philip Morris International, Inc.		131,513		10,432,926
Altria Group, Inc.		179,529		9,766,378
Reynolds American, Inc.		176,054		7,793,911
Archer-Daniels-Midland Co.		112,303		4,654,959
Bunge Ltd.		42,996		3,151,607
British American Tobacco plc ADR		19,200		2,113,536
Vector Group Ltd.		69,820		1,578,629
Universal Corp.		20,000		991,400
Andersons, Inc.		26,700		909,402
Total Agriculture				41,392,748
Cosmetics & Personal Care - 13.1%
Procter & Gamble Co.		188,930		13,591,624
Colgate-Palmolive Co.		114,699		7,278,799
Estee Lauder Companies, Inc. — Class A		66,356		5,353,602
Coty, Inc. — Class A		107,902		2,919,828
Unilever N.V. — Class Y		65,051		2,615,050
Edgewell Personal Care Co.		25,935		2,116,296
Avon Products, Inc.		318,646		1,035,600
Total Cosmetics & Personal Care				34,910,799
Household Products & Housewares - 5.7%
Kimberly-Clark Corp.		55,809		6,085,413
Clorox Co.		32,167		3,716,254
Church & Dwight Company, Inc.		37,966		3,185,347
Spectrum Brands Holdings, Inc.		23,600		2,159,636
Total Household Products & Housewares				15,146,650
Pharmaceuticals - 2.6%
Mead Johnson Nutrition Co. — Class A		50,579		3,560,762
Herbalife Ltd.*		38,414		2,093,563
USANA Health Sciences, Inc.*		9,000		1,206,270
Total Pharmaceuticals				6,860,595
Retail - 1.2%
Casey’s General Stores, Inc.		17,923		1,844,636
Nu Skin Enterprises, Inc. — Class A		34,130		1,408,886
Total Retail				3,253,522
Electrical Components & Equipment - 0.5%
Energizer Holdings, Inc.		36,635		1,418,141
Total Common Stocks
(Cost $196,569,990)				265,215,481

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
CONSUMER PRODUCTS FUND

	Shares		Value
RIGHTS††† - 0.0%
PDC
Expires 01/17/17*		93,765	$	—
Casa Ley
Expires 01/17/19*		93,765		—
Total Rights
(Cost $23,055)				—

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.8%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	1,677,744		1,677,744
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		405,492		405,492
Total Repurchase Agreements
(Cost $2,083,236)				2,083,236
Total Investments - 100.3%
(Cost $198,676,281)			$	267,298,717
Other Assets & Liabilities, net - (0.3)%				(667,913	)
Total Net Assets - 100.0%			$	266,630,804

*	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	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $196,593,045)	$	265,215,481
Repurchase agreements, at value (cost $2,083,236)		2,083,236
Total investments (cost $198,676,281)		267,298,717
Receivables:
Dividends		771,794
Fund shares sold		499,834
Foreign taxes reclaim		10,627
Interest		3
Total assets		268,580,975
Liabilities:
Payable for:
Fund shares redeemed		1,601,155
Management fees		182,205
Transfer agent and administrative fees		53,590
Distribution and service fees		29,015
Portfolio accounting fees		21,200
Miscellaneous		63,006
Total liabilities		1,950,171
Commitments and contingent liabilities (Note 9)		—
Net assets	$	266,630,804
Net assets consist of:
Paid in capital	$	205,225,453
Undistributed net investment income		4,062,235
Accumulated net realized loss on investments		(11,279,320	)
Net unrealized appreciation on investments		68,622,436
Net assets	$	266,630,804
Investor Class:
Net assets	$	177,381,840
Capital shares outstanding		3,093,923
Net asset value per share	$	57.33
Advisor Class:
Net assets	$	40,438,191
Capital shares outstanding		781,599
Net asset value per share	$	51.74
A-Class:
Net assets	$	31,992,648
Capital shares outstanding		598,444
Net asset value per share	$	53.46
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.13
C-Class:
Net assets	$	16,818,125
Capital shares outstanding		350,947
Net asset value per share	$	47.92

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $21,174)	$	3,334,988
Income from securities lending, net		61,812
Interest		277
Total investment income		3,397,077
Expenses:
Management fees		1,231,911
Transfer agent and administrative fees		362,326
Distribution and service fees:
Advisor Class		97,248
A-Class		43,089
C-Class		89,232
Portfolio accounting fees		140,019
Custodian fees		16,648
Trustees’ fees*		9,556
Tax expense		4,085
Line of credit fees		38
Miscellaneous		162,393
Total expenses		2,156,545
Net investment income		1,240,532
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,511,620
Net realized gain		4,511,620
Net change in unrealized appreciation (depreciation) on:
Investments		(14,123,134	)
Net change in unrealized appreciation (depreciation)		(14,123,134	)
Net realized and unrealized loss		(9,611,514	)
Net decrease in net assets resulting from operations	$	(8,370,982	)

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

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,240,532		$	2,817,618
Net realized gain on investments		4,511,620			2,102,672
Net change in unrealized appreciation (depreciation) on investments		(14,123,134	)		28,060,008
Net increase (decrease) in net assets resulting from operations		(8,370,982	)		32,980,298
Distributions to shareholders from:
Net investment income
Investor Class		—			(990,101	)
Advisor Class		—			(228,315	)
A-Class		—			(146,232	)
C-Class		—			(80,799	)
Net realized gains
Investor Class		—			(1,759,312	)
Advisor Class		—			(405,693	)
A-Class		—			(259,839	)
C-Class		—			(143,573	)
Total distributions to shareholders		—			(4,013,864	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		112,403,041			261,191,921
Advisor Class		117,317,287			186,583,796
A-Class		24,924,799			31,333,989
C-Class		9,364,578			23,898,739
Distributions reinvested
Investor Class		—			2,302,863
Advisor Class		—			632,540
A-Class		—			319,969
C-Class		—			218,591
Cost of shares redeemed
Investor Class		(153,114,287	)		(162,176,613	)
Advisor Class		(124,823,768	)		(169,292,713	)
A-Class		(24,483,485	)		(27,757,505	)
C-Class		(9,770,625	)		(22,094,028	)
Net increase (decrease) from capital share transactions		(48,182,460	)		125,161,549
Net increase (decrease) in net assets		(56,553,442	)		154,127,983
Net assets:
Beginning of period		323,184,246			169,056,263
End of period	$	266,630,804		$	323,184,246
Undistributed net investment income at end of period	$	4,062,235		$	2,821,703

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		1,919,363			4,679,252
Advisor Class		2,197,166			3,693,937
A-Class		454,322			596,417
C-Class		189,716			506,456
Shares issued from reinvestment of distributions
Investor Class		—			40,408
Advisor Class		—			12,254
A-Class		—			6,008
C-Class		—			4,561
Shares redeemed
Investor Class		(2,633,399	)		(2,874,581	)
Advisor Class		(2,355,357	)		(3,339,602	)
A-Class		(455,242	)		(526,497	)
C-Class		(199,011	)		(469,691	)
Net increase (decrease) in shares		(882,442	)		2,328,922

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	58.55		$	52.08		$	47.79		$	40.19		$	36.37		$	37.83
Income (loss) from investment operations:
Net investment income (loss)b		.30			.71			.46			.57			.49			.69
Net gain (loss) on investments (realized and unrealized)		(1.52	)		6.44			5.81			7.14			4.82			4.40
Total from investment operations		(1.22	)		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	$	57.33		$	58.55		$	52.08		$	47.79		$	40.19		$	36.37
Total Returnc		(2.08	%)		13.77	%		13.24	%		19.26	%		15.06	%		14.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	177,382		$	222,954		$	102,231		$	181,945		$	155,432		$	57,876
Ratios to average net assets:
Net investment income (loss)		1.01	%		1.27	%		0.91	%		1.38	%		1.29	%		1.84	%
Total expenses		1.33	%		1.34	%		1.37	%		1.35	%		1.35	%		1.38	%
Portfolio turnover rate		63	%		87	%		112	%		230	%		402	%		400	%

Advisor Class	Period Ended September 30, 2015a			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	$	52.94		$	47.39		$	43.87		$	37.08		$	33.84		$	35.77
Income (loss) from investment operations:
Net investment income (loss)b		.17			.37			.24			.35			.24			.62
Net gain (loss) on investments (realized and unrealized)		(1.37	)		5.86			5.26			6.55			4.49			4.00
Total from investment operations		(1.20	)		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	$	51.74		$	52.94		$	47.39		$	43.87		$	37.08		$	33.84
Total Returnc		(2.27	%)		13.19	%		12.66	%		18.66	%		14.49	%		14.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	40,438		$	49,751		$	27,162		$	10,148		$	16,975		$	3,475
Ratios to average net assets:
Net investment income (loss)		0.62	%		0.74	%		0.51	%		0.93	%		0.68	%		1.78	%
Total expenses		1.71	%		1.85	%		1.87	%		1.85	%		1.84	%		1.88	%
Portfolio turnover rate		63	%		87	%		112	%		230	%		402	%		400	%

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	54.66		$	48.79		$	45.00		$	37.93		$	34.49		$	36.26
Income (loss) from investment operations:
Net investment income (loss)b		.22			.48			.33			.44			.40			.41
Net gain (loss) on investments (realized and unrealized)		(1.42	)		6.07			5.44			6.74			4.53			4.37
Total from investment operations		(1.20	)		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	$	53.46		$	54.66		$	48.79		$	45.00		$	37.93		$	34.49
Total Returnc		(2.20	%)		13.47	%		12.95	%		18.98	%		14.80	%		14.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,993		$	32,762		$	25,538		$	21,604		$	21,021		$	5,033
Ratios to average net assets:
Net investment income (loss)		0.79	%		0.92	%		0.70	%		1.12	%		1.11	%		1.14	%
Total expenses		1.58	%		1.60	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		63	%		87	%		112	%		230	%		402	%		400	%

C-Class	Period Ended September 30, 2015a			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	$	49.18		$	44.29		$	41.32		$	35.11		$	32.28		$	34.57
Income (loss) from investment operations:
Net investment income (loss)b		.01			.09			(.01	)		.13			.12			.30
Net gain (loss) on investments (realized and unrealized)		(1.27	)		5.48			4.96			6.19			4.20			3.96
Total from investment operations		(1.26	)		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	$	47.92		$	49.18		$	44.29		$	41.32		$	35.11		$	32.28
Total Returnc		(2.56	%)		12.62	%		12.11	%		18.06	%		13.91	%		13.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,818		$	17,717		$	14,125		$	11,699		$	9,712		$	3,484
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.20	%		(0.02	%)		0.37	%		0.36	%		0.90	%
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.35	%		2.38	%
Portfolio turnover rate		63	%		87	%		112	%		230	%		402	%		400	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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.	8.6%
Texas Instruments, Inc.	5.1%
Avago Technologies Ltd.	4.0%
Broadcom Corp. — Class A	3.9%
Analog Devices, Inc.	3.0%
NXP Semiconductor N.V.	2.9%
Applied Materials, Inc.	2.9%
Altera Corp.	2.8%
Skyworks Solutions, Inc.	2.8%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	2.7%
Top Ten Total	38.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Semiconductors - 93.1%
Intel Corp.		32,984	$	994,137
Texas Instruments, Inc.		11,945		591,516
Avago Technologies Ltd.		3,723		465,412
Broadcom Corp. — Class A		8,822		453,715
Analog Devices, Inc.		6,046		341,055
NXP Semiconductor N.V.*		3,791		330,082
Applied Materials, Inc.		22,326		327,969
Altera Corp.		6,386		319,811
Skyworks Solutions, Inc.		3,775		317,893
Taiwan Semiconductor Manufacturing Company Ltd. ADR		15,176		314,902
Micron Technology, Inc.*		20,953		313,876
NVIDIA Corp.		12,569		309,826
Freescale Semiconductor Ltd.*		7,473		273,362
Xilinx, Inc.		6,365		269,876
Linear Technology Corp.		6,308		254,528
Maxim Integrated Products, Inc.		7,528		251,435
Lam Research Corp.		3,785		247,274
Microchip Technology, Inc.		5,729		246,863
KLA-Tencor Corp.		4,469		223,450
Qorvo, Inc.*		4,483		201,959
Marvell Technology Group Ltd.		18,515		167,561
ARM Holdings plc ADR		3,823		165,345
ASML Holding N.V. — Class G		1,848		162,587
ON Semiconductor Corp.*		16,562		155,683
Teradyne, Inc.		8,557		154,112
Atmel Corp.		18,705		150,949
Synaptics, Inc.*		1,795		148,016
Microsemi Corp.*		4,431		145,425
Cavium, Inc.*		2,352		144,342
Integrated Device Technology, Inc.*		7,104		144,211
Cypress Semiconductor Corp.*		15,497		132,034
Cree, Inc.*		5,113		123,888
Himax Technologies, Inc. ADR		15,043		119,893
Cirrus Logic, Inc.*		3,788		119,360
Monolithic Power Systems, Inc.		2,302		117,862
Mellanox Technologies Ltd.*		3,076		116,242
Siliconware Precision Industries Company Ltd. ADR		17,500		109,988
Tower Semiconductor Ltd.*		8,454		108,803
MKS Instruments, Inc.		3,210		107,631
Silicon Laboratories, Inc.*		2,589		107,547
Intersil Corp. — Class A		9,086		106,306
Tessera Technologies, Inc.		3,230		104,684
OmniVision Technologies, Inc.*		3,977		104,436
Fairchild Semiconductor International, Inc. — Class A*		7,317		102,731
Ambarella, Inc.*		1,750		101,133
PMC-Sierra, Inc.*		14,371		97,292
Power Integrations, Inc.		2,170		91,509
Semtech Corp.*		5,080		76,708
Veeco Instruments, Inc.*		3,457		70,903
Rambus, Inc.*		4,370		51,566
M/A-COM Technology Solutions Holdings, Inc.*		1,690		48,993
Total Semiconductors				10,706,681
Energy-Alternate Sources - 5.3%
First Solar, Inc.*		3,751		160,355
Canadian Solar, Inc.*		7,351		122,174
Trina Solar Ltd. ADR*		12,940		116,072
JinkoSolar Holding Company Ltd. ADR*		5,247		115,119
SunEdison, Inc.*		13,522		97,088
Total Energy-Alternate Sources				610,808
Electrical Components & Equipment - 1.1%
SunPower Corp. — Class A*		6,171		123,667
Total Common Stocks
(Cost $7,605,121)				11,441,156

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	41,874		41,874
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		10,121		10,121
Total Repurchase Agreements
(Cost $51,995)				51,995
Total Investments - 100.0%
(Cost $7,657,116)			$	11,493,151
Other Assets & Liabilities, net - 0.0%				4,229
Total Net Assets - 100.0%			$	11,497,380

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $7,605,121)	$	11,441,156
Repurchase agreements, at value (cost $51,995)		51,995
Total investments (cost $7,657,116)		11,493,151
Cash		1,559
Receivables:
Fund shares sold		231,722
Dividends		3,816
Securities lending income		43
Total assets		11,730,291
Liabilities:
Payable for:
Securities purchased		209,140
Management fees		10,660
Fund shares redeemed		3,249
Transfer agent and administrative fees		3,135
Distribution and service fees		1,549
Portfolio accounting fees		1,254
Miscellaneous		3,924
Total liabilities		232,911
Commitments and contingent liabilities (Note 9)		—
Net assets	$	11,497,380
Net assets consist of:
Paid in capital	$	26,679,584
Undistributed net investment income		40,537
Accumulated net realized loss on investments		(19,058,776	)
Net unrealized appreciation on investments		3,836,035
Net assets	$	11,497,380
Investor Class:
Net assets	$	8,327,947
Capital shares outstanding		116,585
Net asset value per share	$	71.43
Advisor Class:
Net assets	$	1,583,612
Capital shares outstanding		24,196
Net asset value per share	$	65.45
A-Class:
Net assets	$	535,004
Capital shares outstanding		7,969
Net asset value per share	$	67.14
Maximum offering price per share (Net asset value divided by 95.25%)	$	70.49
C-Class:
Net assets	$	1,050,817
Capital shares outstanding		16,977
Net asset value per share	$	61.90

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $10,195)	$	249,992
Income from securities lending, net		7,255
Interest		29
Total investment income		257,276
Expenses:
Management fees		140,392
Transfer agent and administrative fees		41,292
Distribution and service fees:
Advisor Class		29,674
A-Class		1,940
C-Class		7,915
Portfolio accounting fees		16,516
Custodian fees		1,908
Trustees’ fees*		1,164
Line of credit fees		20
Miscellaneous		18,331
Total expenses		259,152
Net investment loss		(1,876	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,867,367	)
Net realized loss		(1,867,367	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,551,401	)
Net change in unrealized appreciation (depreciation)		(3,551,401	)
Net realized and unrealized loss		(5,418,768	)
Net decrease in net assets resulting from operations	$	(5,420,644	)

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,876	)	$	54,827
Net realized loss on investments		(1,867,367	)		(4,156,771	)
Net change in unrealized appreciation (depreciation) on investments		(3,551,401	)		4,425,744
Net increase (decrease) in net assets resulting from operations		(5,420,644	)		323,800
Capital share transactions:
Proceeds from sale of shares
Investor Class		48,700,374			149,252,908
Advisor Class		109,243,495			34,345,705
A-Class		11,744,077			15,359,168
C-Class		8,163,721			18,220,155
Cost of shares redeemed
Investor Class		(55,831,027	)		(140,624,704	)
Advisor Class		(111,692,155	)		(32,080,298	)
A-Class		(12,695,067	)		(18,830,964	)
C-Class		(8,103,082	)		(18,183,162	)
Net increase (decrease) from capital share transactions		(10,469,664	)		7,458,808
Net increase (decrease) in net assets		(15,890,308	)		7,782,608
Net assets:
Beginning of period		27,387,688			19,605,080
End of period	$	11,497,380		$	27,387,688
Undistributed net investment income at end of period	$	40,537		$	42,413
Capital share activity:
Shares sold
Investor Class		593,997			1,964,674
Advisor Class		1,445,935			497,436
A-Class		154,970			217,511
C-Class		116,849			277,943
Shares redeemed
Investor Class		(694,585	)		(1,885,797	)
Advisor Class		(1,503,715	)		(471,009	)
A-Class		(168,365	)		(277,054	)
C-Class		(117,465	)		(277,335	)
Net increase (decrease) in shares		(172,379	)		46,369

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	83.54		$	69.82		$	52.11		$	55.09		$	60.57		$	52.33
Income (loss) from investment operations:
Net investment income (loss)b		.13			.29			(.04	)		.22			(.12	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(12.24	)		13.43			17.79			(3.20	)		(5.36	)		8.37
Total from investment operations		(12.11	)		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	$	71.43		$	83.54		$	69.82		$	52.11		$	55.09		$	60.57
Total Returnc		(14.50	%)		19.65	%		34.07	%		(5.41	%)		(9.05	%)		15.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,328		$	18,144		$	9,655		$	2,942		$	5,453		$	6,976
Ratios to average net assets:
Net investment income (loss)		0.32	%		0.38	%		(0.07	%)		0.45	%		(0.22	%)		(0.23	%)
Total expenses		1.33	%		1.35	%		1.37	%		1.35	%		1.35	%		1.39	%
Portfolio turnover rate		447	%		562	%		1,436	%		1,640	%		1,329	%		1,171	%

Advisor Class	Period Ended September 30, 2015a			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	$	76.66		$	64.40		$	48.33		$	51.40		$	56.77		$	49.26
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		.06			(.17	)		(.12	)		(.34	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		(11.07	)		12.20			16.28			(2.95	)		(5.03	)		7.92
Total from investment operations		(11.21	)		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	$	65.45		$	76.66		$	64.40		$	48.33		$	51.40		$	56.77
Total Returnc		(14.62	%)		19.04	%		33.34	%		(5.97	%)		(9.46	%)		15.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,584		$	6,285		$	3,577		$	1,288		$	1,271		$	3,081
Ratios to average net assets:
Net investment income (loss)		(0.36	%)		0.09	%		(0.29	%)		(0.26	%)		(0.67	%)		(0.79	%)
Total expenses		1.79	%		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		447	%		562	%		1,436	%		1,640	%		1,329	%		1,171	%

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	78.62		$	65.87		$	49.29		$	52.23		$	57.59		$	49.88
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.17	)		(.33	)		.24			(.19	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(11.40	)		12.92			16.95			(3.18	)		(5.17	)		7.92
Total from investment operations		(11.48	)		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	$	67.14		$	78.62		$	65.87		$	49.29		$	52.23		$	57.59
Total Returnc		(14.61	%)		19.36	%		33.72	%		(5.63	%)		(9.31	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	535		$	1,680		$	5,329		$	299		$	659		$	1,619
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.24	%)		(0.59	%)		0.51	%		(0.36	%)		(0.43	%)
Total expenses		1.58	%		1.61	%		1.62	%		1.60	%		1.62	%		1.64	%
Portfolio turnover rate		447	%		562	%		1,436	%		1,640	%		1,329	%		1,171	%

C-Class	Period Ended September 30, 2015a			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	$	72.76		$	61.40		$	46.32		$	49.50		$	55.03		$	47.90
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.35	)		(.54	)		(.18	)		(.70	)		(.65	)
Net gain (loss) on investments (realized and unrealized)		(10.66	)		11.71			15.66			(3.00	)		(4.83	)		7.78
Total from investment operations		(10.86	)		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	$	61.90		$	72.76		$	61.40		$	46.32		$	49.50		$	55.03
Total Returnc		(14.93	%)		18.50	%		32.65	%		(6.44	%)		(10.01	%)		14.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,051		$	1,280		$	1,043		$	667		$	263		$	1,246
Ratios to average net assets:
Net investment income (loss)		(0.56	%)		(0.55	%)		(1.03	%)		(0.41	%)		(1.42	%)		(1.31	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		447	%		562	%		1,436	%		1,640	%		1,329	%		1,171	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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.	6.4%
Chevron Corp.	4.4%
Schlumberger Ltd.	3.2%
ConocoPhillips	2.7%
Kinder Morgan, Inc.	2.7%
Occidental Petroleum Corp.	2.6%
Phillips 66	2.4%
EOG Resources, Inc.	2.2%
Valero Energy Corp.	2.0%
Halliburton Co.	1.9%
Top Ten Total	30.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 101.3%
Oil & Gas - 72.9%
Exxon Mobil Corp.		23,242	$	1,728,044
Chevron Corp.		15,105		1,191,482
ConocoPhillips		15,291		733,355
Occidental Petroleum Corp.		10,462		692,061
Phillips 66		8,255		634,314
EOG Resources, Inc.		8,169		594,703
Valero Energy Corp.		9,180		551,718
Anadarko Petroleum Corp.		8,373		505,645
Marathon Petroleum Corp.		10,808		500,735
Pioneer Natural Resources Co.		3,464		421,361
Tesoro Corp.		3,742		363,872
Devon Energy Corp.		9,795		363,297
Hess Corp.		7,129		356,878
Apache Corp.		9,105		356,552
Noble Energy, Inc.		11,077		334,304
Concho Resources, Inc.*		3,343		328,617
Continental Resources, Inc.*		10,926		316,526
HollyFrontier Corp.		6,287		307,057
Marathon Oil Corp.		19,775		304,535
Cheniere Energy, Inc.*		6,279		303,276
Cimarex Energy Co.		2,950		302,316
Equities Corp.		4,397		284,794
Cabot Oil & Gas Corp. — Class A		12,820		280,245
BP plc ADR		8,763		267,797
Petroleo Brasileiro S.A. ADR*		58,098		252,726
Suncor Energy, Inc.		8,201		219,132
Transocean Ltd.		16,576		214,162
Antero Resources Corp.*		10,070		213,081
Royal Dutch Shell plc — Class A ADR		4,490		212,781
Western Refining, Inc.		4,712		207,893
Newfield Exploration Co.*		6,307		207,500
Helmerich & Payne, Inc.		4,311		203,738
Diamondback Energy, Inc.*		3,072		198,451
Ensco plc — Class A		14,049		197,810
Noble Corporation plc		18,129		197,787
Range Resources Corp.		6,151		197,570
Southwestern Energy Co.*		14,955		189,779
Canadian Natural Resources Ltd.		9,728		189,210
Murphy Oil Corp.		7,735		187,187
Chesapeake Energy Corp.		25,219		184,855
Energen Corp.		3,622		180,593
Nabors Industries Ltd.		18,642		176,167
Memorial Resource Development Corp.*		9,825		172,724
Whiting Petroleum Corp.*		10,523		160,686
Gulfport Energy Corp.*		5,298		157,245
PBF Energy, Inc. — Class A		5,478		154,644
Cobalt International Energy, Inc.*		21,786		154,245
Cenovus Energy, Inc.		10,150		153,874
Encana Corp.		23,664		152,396
Seadrill Ltd.*		25,370		149,683
Statoil ASA ADR		9,770		142,251
Parsley Energy, Inc. — Class A*		9,046		136,323
PDC Energy, Inc.*		2,561		135,759
CNOOC Ltd. ADR		1,310		135,035
QEP Resources, Inc.		10,606		132,893
Rice Energy, Inc.*		8,185		132,270
Diamond Offshore Drilling, Inc.		7,633		132,051
SM Energy Co.		4,097		131,268
Patterson-UTI Energy, Inc.		9,814		128,956
Rowan Companies plc — Class A		7,927		128,021
Delek US Holdings, Inc.		4,561		126,340
Laredo Petroleum, Inc.*		12,755		120,280
RSP Permian, Inc.*		5,744		116,316
Matador Resources Co.*		5,538		114,858
WPX Energy, Inc.*		17,276		114,367
Alon USA Energy, Inc.		6,150		111,131
Carrizo Oil & Gas, Inc.*		3,574		109,150
YPF S.A. ADR		6,376		97,106
Oasis Petroleum, Inc.*		11,056		95,966
Ultra Petroleum Corp.*		13,985		89,364
California Resources Corp.		33,367		86,754
Atwood Oceanics, Inc.		5,742		85,039
Denbury Resources, Inc.		30,653		74,793
Bonanza Creek Energy, Inc.*		7,861		31,994
Total Oil & Gas				19,617,688
Oil & Gas Services - 15.4%
Schlumberger Ltd.		12,549		865,504
Halliburton Co.		14,413		509,499
Baker Hughes, Inc.		8,686		452,019
National Oilwell Varco, Inc.		9,653		363,436
Cameron International Corp.*		5,082		311,628
FMC Technologies, Inc.*		7,947		246,357
Oceaneering International, Inc.		4,540		178,331
Core Laboratories N.V.		1,739		173,552
Weatherford International plc*		20,136		170,753
Targa Resources Corp.		3,030		156,106
Dril-Quip, Inc.*		2,420		140,892
Superior Energy Services, Inc.		9,585		121,059
Oil States International, Inc.*		4,002		104,572
Exterran Holdings, Inc.		5,258		94,644
Bristow Group, Inc.		3,423		89,546
Helix Energy Solutions Group, Inc.*		12,669		60,685
CARBO Ceramics, Inc.		3,028		57,502
C&J Energy Services Ltd.*		15,015		52,853
Total Oil & Gas Services				4,148,938
Pipelines - 9.2%
Kinder Morgan, Inc.		26,260		726,878
Williams Companies, Inc.		12,352		455,172
Spectra Energy Corp.		15,098		396,624
ONEOK, Inc.		7,207		232,065
Plains GP Holdings, LP — Class A		8,960		156,800
Enbridge, Inc.		4,047		150,265
TransCanada Corp.		4,438		140,152

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
ENERGY FUND

	Shares		Value
SemGroup Corp. — Class A		3,006	$	129,979
Columbia Pipeline Group, Inc.		5,670		103,704
Total Pipelines				2,491,639
Transportation - 1.2%
Golar LNG Ltd.		4,469		124,596
Teekay Corp.		4,186		124,073
Tidewater, Inc.		4,893		64,294
Total Transportation				312,963
Mining - 0.7%
Cameco Corp.		9,814		119,436
US Silica Holdings, Inc.		5,001		70,464
Total Mining				189,900
Metal Fabricate & Hardware - 0.6%
Tenaris S.A. ADR		6,335		152,737
Retail - 0.6%
World Fuel Services Corp.		4,232		151,506
Coal - 0.4%
CONSOL Energy, Inc.		12,499		122,490
Energy-Alternate Sources - 0.3%
Green Plains, Inc.		4,900		95,354
Total Common Stocks
(Cost $17,827,879)				27,283,215

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.1%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	11,901		11,901
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		2,876		2,876
Total Repurchase Agreements
(Cost $14,777)				14,777
Total Investments - 101.4%
(Cost $17,842,656)			$	27,297,992
Other Assets & Liabilities, net - (1.4)%				(377,461	)
Total Net Assets - 100.0%			$	26,920,531

*	Non-income producing security.
†	Value determined based on Level 1 input — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $17,827,879)	$	27,283,215
Repurchase agreements, at value (cost $14,777)		14,777
Total investments (cost $17,842,656)		27,297,992
Cash		3,290
Receivables:
Securities sold		193,142
Dividends		23,710
Fund shares sold		18,953
Securities lending income		690
Total assets		27,537,777
Liabilities:
Payable for:
Fund shares redeemed		575,746
Management fees		20,787
Transfer agent and administrative fees		6,114
Distribution and service fees		5,217
Portfolio accounting fees		2,445
Miscellaneous		6,937
Total liabilities		617,246
Commitments and contingent liabilities (Note 9)		—
Net assets	$	26,920,531
Net assets consist of:
Paid in capital	$	34,299,511
Undistributed net investment income		631,066
Accumulated net realized loss on investments		(17,465,382	)
Net unrealized appreciation on investments		9,455,336
Net assets	$	26,920,531
Investor Class:
Net assets	$	17,375,964
Capital shares outstanding		997,261
Net asset value per share	$	17.42
Advisor Class:
Net assets	$	2,065,668
Capital shares outstanding		129,372
Net asset value per share	$	15.97
A-Class:
Net assets	$	2,834,639
Capital shares outstanding		172,574
Net asset value per share	$	16.43
Maximum offering price per share (Net asset value divided by 95.25%)	$	17.25
C-Class:
Net assets	$	4,644,260
Capital shares outstanding		311,660
Net asset value per share	$	14.90

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $6,147)	$	635,109
Income from securities lending, net		48,130
Interest		40
Total investment income		683,279
Expenses:
Management fees		214,063
Transfer agent and administrative fees		62,959
Distribution and service fees:
Advisor Class		11,980
A-Class		6,944
C-Class		31,797
Portfolio accounting fees		25,184
Custodian fees		2,893
Trustees’ fees*		1,655
Tax expense		1,169
Line of credit fees		89
Miscellaneous		27,856
Total expenses		386,589
Net investment income		296,690
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(7,308,159	)
Net realized loss		(7,308,159	)
Net change in unrealized appreciation (depreciation) on:
Investments		(6,964,063	)
Net change in unrealized appreciation (depreciation)		(6,964,063	)
Net realized and unrealized loss		(14,272,222	)
Net decrease in net assets resulting from operations	$	(13,975,532	)

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	296,690		$	333,207
Net realized loss on investments		(7,308,159	)		(139,801	)
Net change in unrealized appreciation (depreciation) on investments		(6,964,063	)		(9,779,125	)
Net decrease in net assets resulting from operations		(13,975,532	)		(9,585,719	)
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		87,895,811			261,136,749
Advisor Class		71,491,154			75,602,721
A-Class		22,684,301			24,712,863
C-Class		6,558,575			24,858,323
Distributions reinvested
Investor Class		—			119,147
Advisor Class		—			18,825
A-Class		—			16,607
C-Class		—			35,962
Cost of shares redeemed
Investor Class		(89,443,457	)		(263,698,107	)
Advisor Class		(73,958,270	)		(72,212,828	)
A-Class		(23,359,602	)		(25,606,281	)
C-Class		(6,972,381	)		(24,487,521	)
Net increase (decrease) from capital share transactions		(5,103,869	)		496,460
Net decrease in net assets		(19,079,401	)		(9,289,992	)
Net assets:
Beginning of period		45,999,932			55,289,924
End of period	$	26,920,531		$	45,999,932
Undistributed net investment income at end of period	$	631,066		$	334,376

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		3,688,774			8,974,883
Advisor Class		3,707,803			2,974,818
A-Class		1,043,889			986,870
C-Class		341,960			1,026,731
Shares issued from reinvestment of distributions
Investor Class		—			4,447
Advisor Class		—			764
A-Class		—			657
C-Class		—			1,548
Shares redeemed
Investor Class		(3,901,403	)		(8,966,417	)
Advisor Class		(3,880,790	)		(2,847,072	)
A-Class		(1,084,190	)		(1,010,592	)
C-Class		(368,280	)		(1,014,166	)
Net increase (decrease) in shares		(452,237	)		132,471

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

ENERGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	23.24		$	29.70		$	26.12		$	24.58		$	28.70		$	20.91
Income (loss) from investment operations:
Net investment income (loss)b		.17			.21			.15			.12			.07			—	c
Net gain (loss) on investments (realized and unrealized)		(5.99	)		(6.56	)		3.43			1.89			(4.19	)		7.82
Total from investment operations		(5.82	)		(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	$	17.42		$	23.24		$	29.70		$	26.12		$	24.58		$	28.70
Total Returnd		(25.04	%)		(21.42	%)		13.71	%		8.50	%		(14.39	%)		37.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,376		$	28,123		$	35,546		$	49,160		$	40,947		$	93,648
Ratios to average net assets:
Net investment income (loss)		1.50	%		0.72	%		0.55	%		0.52	%		0.27	%		0.00	%e
Total expenses		1.33	%		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		343	%		463	%		231	%		248	%		288	%		273	%

Advisor Class	Period Ended September 30, 2015a			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	$	21.34		$	27.40		$	24.23		$	22.95		$	26.93		$	19.72
Income (loss) from investment operations:
Net investment income (loss)b		.06			.07			(.02	)		.01			(.08	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(5.43	)		(6.02	)		3.19			1.74			(3.90	)		7.35
Total from investment operations		(5.37	)		(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	$	15.97		$	21.34		$	27.40		$	24.23		$	22.95		$	26.93
Total Returnd		(25.16	%)		(21.76	%)		13.08	%		7.92	%		(14.78	%)		36.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,066		$	6,452		$	4,764		$	5,272		$	11,080		$	16,015
Ratios to average net assets:
Net investment income (loss)		0.63	%		0.27	%		(0.09	%)		0.06	%		(0.33	%)		(0.53	%)
Total expenses		1.74	%		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		343	%		463	%	��	231	%		248	%		288	%		273	%

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

ENERGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	21.94		$	28.07		$	24.76		$	23.38		$	27.40		$	20.01
Income (loss) from investment operations:
Net investment income (loss)b		.12			.12			.08			.08			(.01	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		(5.63	)		(6.14	)		3.23			1.77			(4.01	)		7.50
Total from investment operations		(5.51	)		(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	$	16.43		$	21.94		$	28.07		$	24.76		$	23.38		$	27.40
Total Returnd		(25.11	%)		(21.49	%)		13.37	%		8.20	%		(14.67	%)		37.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,835		$	4,671		$	6,624		$	5,586		$	5,622		$	14,752
Ratios to average net assets:
Net investment income (loss)		1.07	%		0.43	%		0.30	%		0.38	%		(0.05	%)		(0.38	%)
Total expenses		1.59	%		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		343	%		463	%		231	%		248	%		288	%		273	%

52 | THE RYDEX FUNDS SEMI-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.

C-Class	Period Ended September 30, 2015a			��	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	$	19.98			$	25.80		$	22.93		$	21.85		$	25.78		$	18.97
Income (loss) from investment operations:
Net investment income (loss)b		.01				(.05	)		(.12	)		(.09	)		(.19	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		(5.09	)			(5.66	)		2.99			1.64			(3.74	)		7.04
Total from investment operations		(5.08	)			(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	$	14.90			$	19.98		$	25.80		$	22.93		$	21.85		$	25.78
Total Returnd		(25.43	%)			(22.18	%)		12.52	%		7.40	%		(15.24	%)		36.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,644			$	6,754		$	8,357		$	9,693		$	13,153		$	19,993
Ratios to average net assets:
Net investment income (loss)		0.15	%			(0.20	%)		(0.52	%)		(0.45	%)		(0.84	%)		(0.99	%)
Total expenses		2.33	%			2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		343	%			463	%		231	%		248	%		288	%		273	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Less than 0.01%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

FUND PROFILE (Unaudited) September 30, 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”).

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.	13.8%
Halliburton Co.	8.1%
Baker Hughes, Inc.	7.1%
National Oilwell Varco, Inc.	5.7%
Cameron International Corp.	5.1%
FMC Technologies, Inc.	3.9%
Helmerich & Payne, Inc.	3.3%
Oceaneering International, Inc.	2.9%
Transocean Ltd.	2.8%
Ensco plc — Class A	2.6%
Top Ten Total	55.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 100.0%
Oil & Gas Services - 70.2%
Schlumberger Ltd.		31,532	$	2,174,762
Halliburton Co.		36,210		1,280,024
Baker Hughes, Inc.		21,576		1,122,815
National Oilwell Varco, Inc.		23,970		902,471
Cameron International Corp.*		13,142		805,867
FMC Technologies, Inc.*		19,724		611,444
Oceaneering International, Inc.		11,753		461,658
Dril-Quip, Inc.*		5,899		343,440
Weatherford International plc*		40,092		339,980
Core Laboratories N.V.		3,170		316,366
Superior Energy Services, Inc.		23,820		300,847
RPC, Inc.		33,831		299,404
Oil States International, Inc.*		10,131		264,723
SEACOR Holdings, Inc.*		4,124		246,656
Exterran Holdings, Inc.		13,585		244,530
Forum Energy Technologies, Inc.*		18,981		231,758
McDermott International, Inc.*		52,634		226,326
Bristow Group, Inc.		8,336		218,070
Frank’s International N.V.		12,301		188,574
Helix Energy Solutions Group, Inc.*		31,811		152,375
CARBO Ceramics, Inc.		7,354		139,652
C&J Energy Services Ltd.*		37,727		132,799
Basic Energy Services, Inc.*		24,370		80,421
Total Oil & Gas Services				11,084,962
Oil & Gas - 24.8%
Helmerich & Payne, Inc.		10,915		515,842
Transocean Ltd.		34,648		447,652
Ensco plc — Class A		28,781		405,236
Noble Corporation plc		36,825		401,761
Nabors Industries Ltd.		36,061		340,776
Diamond Offshore Drilling, Inc.		18,945		327,749
Patterson-UTI Energy, Inc.		24,375		320,288
Rowan Companies plc — Class A		19,694		318,058
Seadrill Ltd.*		48,502		286,162
Atwood Oceanics, Inc.		14,850		219,929
Unit Corp.*		15,148		170,566
Precision Drilling Corp.		45,166		168,018
Total Oil & Gas				3,922,037
Transportation - 2.0%
Tidewater, Inc.		12,642		166,116
Hornbeck Offshore Services, Inc.*		11,346		153,511
Total Transportation				319,627
Metal Fabricate & Hardware - 1.8%
Tenaris S.A. ADR		11,956		288,259
Mining - 1.2%
US Silica Holdings, Inc.		12,952		182,494
Total Common Stocks
(Cost $9,360,262)				15,797,379
Total Investments - 100.0%
(Cost $9,360,262)			$	15,797,379
Other Assets & Liabilities, net - 0.0%				96
Total Net Assets - 100.0%			$	15,797,475

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $9,360,262)	$	15,797,379
Receivables:
Securities sold		917,267
Dividends		21,499
Fund shares sold		13,314
Securities lending income		1,303
Total assets		16,750,762
Liabilities:
Overdraft due to custodian bank		836,233
Payable for:
Fund shares redeemed		90,202
Management fees		13,396
Transfer agent and administrative fees		3,940
Distribution and service fees		3,263
Portfolio accounting fees		1,576
Miscellaneous		4,677
Total liabilities		953,287
Commitments and contingent liabilities (Note 9)		—
Net assets	$	15,797,475
Net assets consist of:
Paid in capital	$	45,865,048
Undistributed net investment income		344,560
Accumulated net realized loss on investments		(36,849,250	)
Net unrealized appreciation on investments		6,437,117
Net assets	$	15,797,475
Investor Class:
Net assets	$	9,973,089
Capital shares outstanding		339,161
Net asset value per share	$	29.41
Advisor Class:
Net assets	$	1,283,263
Capital shares outstanding		47,464
Net asset value per share	$	27.04
A-Class:
Net assets	$	1,849,636
Capital shares outstanding		66,409
Net asset value per share	$	27.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.24
C-Class:
Net assets	$	2,691,487
Capital shares outstanding		105,623
Net asset value per share	$	25.48

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $2,248)	$	257,610
Income from securities lending, net		63,989
Interest		20
Total investment income		321,619
Expenses:
Management fees		113,474
Transfer agent and administrative fees		33,375
Distribution and service fees:
Advisor Class		7,351
A-Class		4,683
C-Class		18,763
Portfolio accounting fees		13,350
Registration fees		11,851
Custodian fees		1,535
Trustees’ fees*		1,011
Line of credit fees		243
Miscellaneous		2,906
Total expenses		208,542
Net investment income		113,077
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,503,967	)
Net realized loss		(2,503,967	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,796,890	)
Net change in unrealized appreciation (depreciation)		(4,796,890	)
Net realized and unrealized loss		(7,300,857	)
Net decrease in net assets resulting from operations	$	(7,187,780	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	113,077		$	237,075
Net realized loss on investments		(2,503,967	)		(5,210,662	)
Net change in unrealized appreciation (depreciation) on investments		(4,796,890	)		(14,210,065	)
Net decrease in net assets resulting from operations		(7,187,780	)		(19,183,652	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		57,304,577			155,300,672
Advisor Class		126,395,087			138,874,968
A-Class		21,104,137			18,229,626
C-Class		4,218,300			22,985,448
Cost of shares redeemed
Investor Class		(59,479,078	)		(160,581,256	)
Advisor Class		(125,575,970	)		(139,441,804	)
A-Class		(21,940,442	)		(20,303,746	)
C-Class		(4,433,456	)		(24,839,035	)
Net decrease from capital share transactions		(2,406,845	)		(9,775,127	)
Net decrease in net assets		(9,594,625	)		(28,958,779	)
Net assets:
Beginning of period		25,392,100			54,350,879
End of period	$	15,797,475		$	25,392,100
Undistributed net investment income at end of period	$	344,560		$	231,483
Capital share activity:
Shares sold
Investor Class		1,482,581			2,859,922
Advisor Class		3,696,903			2,915,122
A-Class		555,736			419,738
C-Class		124,340			503,113
Shares redeemed
Investor Class		(1,553,586	)		(2,982,262	)
Advisor Class		(3,699,426	)		(2,950,353	)
A-Class		(584,308	)		(452,109	)
C-Class		(132,159	)		(546,543	)
Net increase (decrease) in shares		(109,919	)		(233,372	)

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	39.36		$	62.43		$	54.43		$	50.87		$	62.66		$	42.83
Income (loss) from investment operations:
Net investment income (loss)b		.22			.48			.02			(.05	)		(.14	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(10.17	)		(23.55	)		7.98			3.61			(11.65	)		20.04
Total from investment operations		(9.95	)		(23.07	)		8.00			3.56			(11.79	)		19.83
Net asset value, end of period	$	29.41		$	39.36		$	62.43		$	54.43		$	50.87		$	62.66
Total Returnc		(25.28	%)		(36.95	%)		14.70	%		7.00	%		(18.82	%)		46.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,973		$	16,144		$	33,244		$	26,097		$	34,353		$	151,318
Ratios to average net assets:
Net investment income (loss)		1.11	%		0.86	%		0.03	%		(0.10	%)		(0.25	%)		(0.42	%)
Total expenses		1.33	%		1.36	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		722	%		494	%		350	%		275	%		162	%		205	%

Advisor Class	Period Ended September 30, 2015a			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	$	36.29		$	57.89		$	50.72		$	47.64		$	58.97		$	40.50
Income (loss) from investment operations:
Net investment income (loss)b		.06			.07			(.27	)		(.25	)		(.34	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		(9.31	)		(21.67	)		7.44			3.33			(10.99	)		18.89
Total from investment operations		(9.25	)		(21.60	)		7.17			3.08			(11.33	)		18.47
Net asset value, end of period	$	27.04		$	36.29		$	57.89		$	50.72		$	47.64		$	58.97
Total Returnc		(25.47	%)		(37.33	%)		14.14	%		6.47	%		(19.21	%)		45.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,283		$	1,814		$	4,933		$	9,685		$	8,025		$	17,222
Ratios to average net assets:
Net investment income (loss)		0.36	%		0.13	%		(0.50	%)		(0.54	%)		(0.66	%)		(0.93	%)
Total expenses		1.72	%		1.86	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		722	%		494	%		350	%		275	%		162	%		205	%

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	37.32		$	59.34		$	51.86		$	48.59		$	60.01		$	41.12
Income (loss) from investment operations:
Net investment income (loss)b		.19			.25			(.13	)		(.17	)		(.25	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		(9.66	)		(22.27	)		7.61			3.44			(11.17	)		19.20
Total from investment operations		(9.47	)		(22.02	)		7.48			3.27			(11.42	)		18.89
Net asset value, end of period	$	27.85		$	37.32		$	59.34		$	51.86		$	48.59		$	60.01
Total Returnc		(25.38	%)		(37.11	%)		14.42	%		6.73	%		(19.03	%)		45.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,850		$	3,545		$	7,557		$	5,535		$	7,115		$	24,849
Ratios to average net assets:
Net investment income (loss)		1.00	%		0.47	%		(0.23	%)		(0.37	%)		(0.47	%)		(0.67	%)
Total expenses		1.58	%		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		722	%		494	%		350	%		275	%		162	%		205	%

C-Class	Period Ended September 30, 2015a			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	$	34.28		$	54.92		$	48.37		$	45.66		$	56.81		$	39.22
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.12	)		(.50	)		(.49	)		(.54	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		(8.82	)		(20.52	)		7.05			3.20			(10.61	)		18.19
Total from investment operations		(8.80	)		(20.64	)		6.55			2.71			(11.15	)		17.59
Net asset value, end of period	$	25.48		$	34.28		$	54.92		$	48.37		$	45.66		$	56.81
Total Returnc		(25.67	%)		(37.58	%)		13.54	%		5.94	%		(19.63	%)		44.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,691		$	3,889		$	8,616		$	8,654		$	10,144		$	15,276
Ratios to average net assets:
Net investment income (loss)		0.12	%		(0.24	%)		(0.97	%)		(1.11	%)		(1.13	%)		(1.43	%)
Total expenses		2.33	%		2.36	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		722	%		494	%		350	%		275	%		162	%		205	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2015

FINANCIAL SERVICES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	2.3%
Wells Fargo & Co.	2.1%
JPMorgan Chase & Co.	1.9%
Bank of America Corp.	1.6%
Citigroup, Inc.	1.5%
Goldman Sachs Group, Inc.	1.2%
American International Group, Inc.	1.1%
American Express Co.	1.1%
U.S. Bancorp	1.1%
Simon Property Group, Inc.	1.0%
Top Ten Total	14.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Banks - 28.7%
Wells Fargo & Co.		17,531	$	900,218
JPMorgan Chase & Co.		13,587		828,398
Bank of America Corp.		45,401		707,348
Citigroup, Inc.		13,513		670,380
Goldman Sachs Group, Inc.		2,886		501,471
U.S. Bancorp		11,533		472,968
Morgan Stanley		13,494		425,061
PNC Financial Services Group, Inc.		4,202		374,818
Bank of New York Mellon Corp.		9,394		367,775
Capital One Financial Corp.		4,661		338,016
BB&T Corp.		8,239		293,308
State Street Corp.		4,210		282,954
SunTrust Banks, Inc.		6,439		246,227
M&T Bank Corp.		1,958		238,778
Northern Trust Corp.		3,392		231,199
Fifth Third Bancorp		11,374		215,082
HDFC Bank Ltd. ADR		3,438		210,027
Royal Bank of Canada		3,762		207,851
Itau Unibanco Holding S.A. ADR		31,084		205,776
Citizens Financial Group, Inc.		8,300		198,038
ICICI Bank Ltd. ADR		23,319		195,413
Bank of Montreal		3,579		195,234
Regions Financial Corp.		21,325		192,138
Credicorp Ltd.		1,770		188,257
Toronto-Dominion Bank		4,706		185,511
Bank of Nova Scotia		4,207		185,445
KeyCorp		14,032		182,556
Popular, Inc.		5,950		179,869
HSBC Holdings plc ADR		4,709		178,377
Deutsche Bank AG		6,482		174,755
First Republic Bank		2,770		173,873
Banco Bradesco S.A. ADR		32,134		172,238
Barclays plc ADR		11,180		165,240
Banco Santander S.A. ADR		30,815		162,703
CIT Group, Inc.		4,041		161,761
Huntington Bancshares, Inc.		15,253		161,682
Signature Bank*		1,130		155,443
Comerica, Inc.		3,774		155,111
SVB Financial Group*		1,190		137,493
East West Bancorp, Inc.		3,510		134,854
City National Corp.		1,470		129,448
Zions Bancorporation		4,664		128,447
PacWest Bancorp		2,825		120,938
Cullen/Frost Bankers, Inc.		1,850		117,623
Synovus Financial Corp.		3,883		114,937
Prosperity Bancshares, Inc.		2,200		108,042
Webster Financial Corp.		2,970		105,821
Umpqua Holdings Corp.		6,490		105,787
First Horizon National Corp.		7,150		101,387
Texas Capital Bancshares, Inc.*		1,680		88,066
Total Banks				12,474,142
REITs - 27.8%
Simon Property Group, Inc.		2,409		442,581
Public Storage		1,708		361,465
American Tower Corp. — Class A		4,020		353,681
Equity Residential		4,179		313,926
Crown Castle International Corp.		3,858		304,280
Welltower, Inc.		4,342		294,040
AvalonBay Communities, Inc.		1,654		289,152
General Growth Properties, Inc.		10,535		273,594
Prologis, Inc.		6,706		260,863
Boston Properties, Inc.		2,108		249,587
Ventas, Inc.		4,341		243,357
Vornado Realty Trust		2,678		242,145
HCP, Inc.		6,241		232,477
Essex Property Trust, Inc.		1,021		228,112
Equinix, Inc.		830		226,922
Macerich Co.		2,672		205,263
Weyerhaeuser Co.		7,492		204,831
Realty Income Corp.		4,194		198,753
SL Green Realty Corp.		1,793		193,931
Extra Space Storage, Inc.		2,421		186,804
Host Hotels & Resorts, Inc.		11,753		185,814
Kimco Realty Corp.		7,471		182,517
Federal Realty Investment Trust		1,334		182,024
Digital Realty Trust, Inc.		2,703		176,560
Annaly Capital Management, Inc.		17,285		170,603
UDR, Inc.		4,944		170,469
Omega Healthcare Investors, Inc.		4,382		154,027
Plum Creek Timber Company, Inc.		3,815		150,731
Camden Property Trust		2,034		150,313
Brixmor Property Group, Inc.		6,350		149,098
Mid-America Apartment Communities, Inc.		1,806		147,857
Iron Mountain, Inc.		4,750		147,345
Duke Realty Corp.		7,649		145,713
VEREIT, Inc.		18,866		145,646
WP Carey, Inc.		2,498		144,409
Regency Centers Corp.		2,317		144,002
Apartment Investment & Management Co. — Class A		3,882		143,712
American Capital Agency Corp.		7,683		143,672
Kilroy Realty Corp.		2,186		142,440
Alexandria Real Estate Equities, Inc.		1,677		141,992
DDR Corp.		8,603		132,314
National Retail Properties, Inc.		3,591		130,246
Lamar Advertising Co. — Class A		2,480		129,406
Liberty Property Trust		4,082		128,624
Home Properties, Inc.		1,656		123,786
CubeSmart		4,534		123,370
Starwood Property Trust, Inc.		5,986		122,833
Taubman Centers, Inc.		1,770		122,272
American Campus Communities, Inc.		3,366		121,984

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
FINANCIAL SERVICES FUND

	Shares		Value
Weingarten Realty Investors		3,656	$	121,050
Douglas Emmett, Inc.		4,139		118,872
BioMed Realty Trust, Inc.		5,789		115,664
Spirit Realty Capital, Inc.		12,305		112,468
Highwoods Properties, Inc.		2,896		112,220
Senior Housing Properties Trust		6,926		112,201
NorthStar Realty Finance Corp.		9,032		111,545
Sovran Self Storage, Inc.		1,170		110,331
Strategic Hotels & Resorts, Inc.*		7,992		110,210
Hospitality Properties Trust		4,194		107,283
Corrections Corporation of America		3,620		106,935
Tanger Factory Outlet Centers, Inc.		3,170		104,515
EPR Properties		1,986		102,418
DCT Industrial Trust, Inc.		3,022		101,721
RLJ Lodging Trust		3,975		100,448
LaSalle Hotel Properties		3,520		99,933
Two Harbors Investment Corp.		11,255		99,269
Rayonier, Inc.		4,335		95,673
New Residential Investment Corp.		7,150		93,665
Medical Properties Trust, Inc.		8,304		91,842
Sunstone Hotel Investors, Inc.		6,786		89,779
Brandywine Realty Trust		6,854		84,441
Corporate Office Properties Trust		3,896		81,933
WP GLIMCHER, Inc.		7,020		81,853
DiamondRock Hospitality Co.		7,358		81,306
Total REITs				12,107,118
Insurance - 23.0%
Berkshire Hathaway, Inc. — Class B*		7,745		1,009,947
American International Group, Inc.		8,401		477,344
MetLife, Inc.		8,511		401,293
ACE Ltd.		3,262		337,291
Prudential Financial, Inc.		4,400		335,323
Travelers Companies, Inc.		3,254		323,870
Chubb Corp.		2,550		312,758
Marsh & McLennan Companies, Inc.		5,602		292,536
Aflac, Inc.		4,782		277,978
Allstate Corp.		4,609		268,428
Aon plc		2,853		252,804
Hartford Financial Services Group, Inc.		5,281		241,764
Progressive Corp.		7,763		237,858
XL Group plc — Class A		6,427		233,429
PartnerRe Ltd.		1,520		211,098
Everest Re Group Ltd.		1,205		208,875
Arch Capital Group Ltd.*		2,830		207,920
Principal Financial Group, Inc.		4,317		204,367
Loews Corp.		5,649		204,155
Lincoln National Corp.		4,150		196,959
RenaissanceRe Holdings Ltd.		1,850		196,692
Markel Corp.*		240		192,446
Axis Capital Holdings Ltd.		3,560		191,243
Endurance Specialty Holdings Ltd.		3,120		190,414
Assured Guaranty Ltd.		7,290		182,250
Willis Group Holdings plc		4,400		180,268
Cincinnati Financial Corp.		3,257		175,227
Manulife Financial Corp.		11,100		171,828
Voya Financial, Inc.		4,290		166,323
HCC Insurance Holdings, Inc.		2,070		160,363
Alleghany Corp.*		340		159,157
Arthur J Gallagher & Co.		3,788		156,369
Unum Group		4,853		155,684
Torchmark Corp.		2,730		153,972
WR Berkley Corp.		2,791		151,747
American Financial Group, Inc.		2,090		144,022
Reinsurance Group of America, Inc. — Class A		1,580		143,132
Assurant, Inc.		1,760		139,058
AmTrust Financial Services, Inc.		2,150		135,407
StanCorp Financial Group, Inc.		1,140		130,188
First American Financial Corp.		3,080		120,336
Symetra Financial Corp.		3,590		113,588
Radian Group, Inc.		6,180		98,324
MGIC Investment Corp.*		10,250		94,915
Genworth Financial, Inc. — Class A*		17,332		80,074
Total Insurance				10,019,024
Diversified Financial Services - 13.3%
American Express Co.		6,433		476,878
BlackRock, Inc. — Class A		1,350		401,585
Charles Schwab Corp.		11,621		331,897
CME Group, Inc. — Class A		3,520		326,446
Intercontinental Exchange, Inc.		1,287		302,432
Synchrony Financial*		9,370		293,282
Franklin Resources, Inc.		7,058		262,981
Discover Financial Services		5,042		262,134
Ameriprise Financial, Inc.		2,372		258,856
T. Rowe Price Group, Inc.		3,523		244,849
TD Ameritrade Holding Corp.		7,079		225,395
Invesco Ltd.		6,368		198,873
Nasdaq, Inc.		3,374		179,935
Affiliated Managers Group, Inc.*		1,013		173,213
Ally Financial, Inc.*		8,450		172,211
E*TRADE Financial Corp.*		5,810		152,977
Raymond James Financial, Inc.		3,072		152,463
Santander Consumer USA Holdings, Inc.*		7,150		146,003
CBOE Holdings, Inc.		2,080		139,526
LendingClub Corp.*		9,670		127,934
Legg Mason, Inc.		2,930		121,917
LPL Financial Holdings, Inc.		2,840		112,947
Eaton Vance Corp.		3,378		112,893
Navient Corp.		9,660		108,578
Waddell & Reed Financial, Inc. — Class A		2,747		95,513
SLM Corp.*		12,900		95,460
NorthStar Asset Management Group, Inc.		5,950		85,442
Janus Capital Group, Inc.		6,272		85,299
WisdomTree Investments, Inc.		4,779		77,085
Ocwen Financial Corp.*		7,257		48,694
Total Diversified Financial Services				5,773,698

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
FINANCIAL SERVICES FUND

	Shares		Value
Real Estate - 1.8%
Brookfield Asset Management, Inc. — Class A		5,920	$	186,124
CBRE Group, Inc. — Class A*		5,653		180,896
Jones Lang LaSalle, Inc.		1,014		145,783
Realogy Holdings Corp.*		3,540		133,210
Forest City Enterprises, Inc. — Class A*		6,350		127,826
Total Real Estate				773,839
Savings & Loans - 1.7%
New York Community Bancorp, Inc.		8,861		160,030
Hudson City Bancorp, Inc.		13,326		135,525
People’s United Financial, Inc.		7,935		124,818
Investors Bancorp, Inc.		9,560		117,970
First Niagara Financial Group, Inc.		11,065		112,974
BofI Holding, Inc.*		670		86,316
Total Savings & Loans				737,633
Commercial Services - 1.6%
McGraw Hill Financial, Inc.		3,180		275,070
Moody’s Corp.		2,599		255,222
SEI Investments Co.		3,382		163,114
Total Commercial Services				693,406
Investment Companies - 0.5%
Ares Capital Corp.		8,180		118,447
American Capital Ltd.*		8,170		99,347
Total Investment Companies				217,794
Holding Companies-Diversified - 0.4%
Leucadia National Corp.		7,568		153,328
Software - 0.3%
MSCI, Inc. — Class A		2,521		149,899
Total Common Stocks
(Cost $37,180,796)				43,099,881

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	203,126		203,126
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		49,093		49,093
Total Repurchase Agreements
(Cost $252,219)				252,219
Total Investments - 99.7%
(Cost $37,433,015)			$	43,352,100
Other Assets & Liabilities, net - 0.3%				121,653
Total Net Assets - 100.0%			$	43,473,753

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $37,180,796)	$	43,099,881
Repurchase agreements, at value (cost $252,219)		252,219
Total investments (cost $37,433,015)		43,352,100
Cash		2,260
Receivables:
Fund shares sold		166,736
Dividends		88,115
Securities lending income		2
Total assets		43,609,213
Liabilities:
Payable for:
Fund shares redeemed		74,892
Management fees		31,688
Transfer agent and administrative fees		9,320
Portfolio accounting fees		3,728
Distribution and service fees		3,244
Miscellaneous		12,588
Total liabilities		135,460
Commitments and contingent liabilities (Note 9)		—
Net assets	$	43,473,753
Net assets consist of:
Paid in capital	$	44,865,374
Undistributed net investment income		678,807
Accumulated net realized loss on investments		(7,989,513	)
Net unrealized appreciation on investments		5,919,085
Net assets	$	43,473,753
Investor Class:
Net assets	$	32,146,680
Capital shares outstanding		299,941
Net asset value per share	$	107.18
Advisor Class:
Net assets	$	5,532,403
Capital shares outstanding		56,066
Net asset value per share	$	98.68
A-Class:
Net assets	$	4,421,129
Capital shares outstanding		43,529
Net asset value per share	$	101.57
Maximum offering price per share (Net asset value divided by 95.25%)	$	106.64
C-Class:
Net assets	$	1,373,541
Capital shares outstanding		14,845
Net asset value per share	$	92.53

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,676)	$	784,537
Income from securities lending, net		382
Interest		53
Total investment income		784,972
Expenses:
Management fees		228,501
Transfer agent and administrative fees		67,206
Distribution and service fees:
Advisor Class		13,221
A-Class		5,051
C-Class		7,963
Portfolio accounting fees		26,882
Custodian fees		3,089
Trustees’ fees*		1,709
Line of credit fees		131
Miscellaneous		30,170
Total expenses		383,923
Net investment income		401,049
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,142,270	)
Net realized loss		(3,142,270	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,222,722	)
Net change in unrealized appreciation (depreciation)		(3,222,722	)
Net realized and unrealized loss		(6,364,992	)
Net decrease in net assets resulting from operations	$	(5,963,943	)

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

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	401,049		$	277,758
Net realized loss on investments		(3,142,270	)		(151,239	)
Net change in unrealized appreciation (depreciation) on investments		(3,222,722	)		2,347,454
Net increase (decrease) in net assets resulting from operations		(5,963,943	)		2,473,973
Distributions to shareholders from:
Net investment income
Investor Class		—			(124,825	)
Advisor Class		—			(15,302	)
A-Class		—			(5,719	)
C-Class		—			(3,673	)
Total distributions to shareholders		—			(149,519	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		50,529,354			142,998,248
Advisor Class		14,586,367			21,042,008
A-Class		11,435,045			16,301,408
C-Class		9,861,517			22,259,319
Distributions reinvested
Investor Class		—			50,229
Advisor Class		—			15,281
A-Class		—			4,742
C-Class		—			3,317
Cost of shares redeemed
Investor Class		(64,429,696	)		(112,502,368	)
Advisor Class		(12,366,265	)		(21,680,719	)
A-Class		(8,965,872	)		(21,300,899	)
C-Class		(9,576,903	)		(22,171,252	)
Net increase (decrease) from capital share transactions		(8,926,453	)		25,019,314
Net increase (decrease) in net assets		(14,890,396	)		27,343,768
Net assets:
Beginning of period		58,364,149			31,020,381
End of period	$	43,473,753		$	58,364,149
Undistributed net investment income at end of period	$	678,807		$	277,758
Capital share activity:
Shares sold
Investor Class		436,796			1,279,802
Advisor Class		136,453			203,091
A-Class		105,394			151,873
C-Class		98,451			231,403
Shares issued from reinvestment of distributions
Investor Class		—			443
Advisor Class		—			146
A-Class		—			44
C-Class		—			34
Shares redeemed
Investor Class		(568,608	)		(1,015,205	)
Advisor Class		(122,399	)		(207,816	)
A-Class		(86,797	)		(203,251	)
C-Class		(96,118	)		(230,221	)
Net increase (decrease) in shares		(96,828	)		210,343

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	115.57		$	106.10		$	90.67		$	78.47		$	81.18		$	75.23
Income (loss) from investment operations:
Net investment income (loss)b		.98			.92			.78			.76			.61			.15
Net gain (loss) on investments (realized and unrealized)		(9.37	)		8.81			15.21			11.99			(3.29	)		6.75
Total from investment operations		(8.39	)		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	$	107.18		$	115.57		$	106.10		$	90.67		$	78.47		$	81.18
Total Returnc		(7.26	%)		9.17	%		17.67	%		16.37	%		(3.31	%)		9.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,147		$	49,897		$	17,688		$	17,007		$	19,973		$	4,885
Ratios to average net assets:
Net investment income (loss)		1.70	%		0.82	%		0.81	%		0.95	%		0.86	%		0.19	%
Total expenses		1.33	%		1.34	%		1.37	%		1.36	%		1.34	%		1.39	%
Portfolio turnover rate		125	%		326	%		414	%		590	%		970	%		601	%

Advisor Class	Period Ended September 30, 2015a			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	$	106.60		$	98.37		$	84.51		$	73.53		$	76.47		$	71.29
Income (loss) from investment operations:
Net investment income (loss)b		.46			.29			.24			.22			.26			(.14	)
Net gain (loss) on investments (realized and unrealized)		(8.38	)		8.20			14.18			11.31			(3.17	)		6.27
Total from investment operations		(7.92	)		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	$	98.68		$	106.60		$	98.37		$	84.51		$	73.53		$	76.47
Total Returnc		(7.43	%)		8.63	%		17.10	%		15.80	%		(3.80	%)		8.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,532		$	4,479		$	4,583		$	7,103		$	4,243		$	3,634
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.28	%		0.26	%		0.29	%		0.37	%		(0.20	%)
Total expenses		1.69	%		1.85	%		1.87	%		1.85	%		1.85	%		1.89	%
Portfolio turnover rate		125	%		326	%		414	%		590	%		970	%		601	%

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	109.65		$	100.94		$	86.48		$	75.07		$	77.87		$	72.38
Income (loss) from investment operations:
Net investment income (loss)b		.55			.43			.58			.51			.45			(.01	)
Net gain (loss) on investments (realized and unrealized)		(8.63	)		8.54			14.44			11.45			(3.22	)		6.45
Total from investment operations		(8.08	)		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	$	101.57		$	109.65		$	100.94		$	86.48		$	75.07		$	77.87
Total Returnc		(7.37	%)		8.89	%		17.41	%		16.06	%		(3.57	%)		9.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,421		$	2,734		$	7,698		$	1,826		$	632		$	1,782
Ratios to average net assets:
Net investment income (loss)		1.01	%		0.41	%		0.62	%		0.66	%		0.64	%		(0.01	%)
Total expenses		1.58	%		1.59	%		1.62	%		1.61	%		1.61	%		1.64	%
Portfolio turnover rate		125	%		326	%		414	%		590	%		970	%		601	%

C-Class	Period Ended September 30, 2015a			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	$	100.28		$	93.02		$	80.30		$	70.26		$	73.42		$	68.79
Income (loss) from investment operations:
Net investment income (loss)b		.20			(.22	)		(.16	)		.03			(.12	)		(.49	)
Net gain (loss) on investments (realized and unrealized)		(7.95	)		7.74			13.44			10.56			(3.01	)		6.07
Total from investment operations		(7.75	)		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	$	92.53		$	100.28		$	93.02		$	80.30		$	70.26		$	73.42
Total Returnc		(7.74	%)		8.08	%		16.58	%		15.21	%		(4.27	%)		8.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,374		$	1,255		$	1,051		$	1,440		$	817		$	1,114
Ratios to average net assets:
Net investment income (loss)		0.41	%		(0.23	%)		(0.18	%)		0.04	%		(0.18	%)		(0.72	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		125	%		326	%		414	%		590	%		970	%		601	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and is not annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.1%
Pfizer, Inc.	2.6%
Gilead Sciences, Inc.	2.2%
Merck & Company, Inc.	2.2%
UnitedHealth Group, Inc.	2.0%
Amgen, Inc.	1.9%
Allergan plc	1.9%
Bristol-Myers Squibb Co.	1.9%
Eli Lilly & Co.	1.9%
AbbVie, Inc.	1.8%
Top Ten Total	21.5%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

68 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Pharmaceuticals - 38.7%
Johnson & Johnson		42,106	$	3,930,594
Pfizer, Inc.		105,937		3,327,481
Merck & Company, Inc.		56,020		2,766,828
Allergan plc*		8,799		2,391,656
Bristol-Myers Squibb Co.		39,946		2,364,803
Eli Lilly & Co.		27,965		2,340,391
AbbVie, Inc.		40,909		2,225,859
Zoetis, Inc.		52,290		2,153,302
Abbott Laboratories		45,275		1,820,961
Express Scripts Holding Co.*		22,096		1,788,892
Valeant Pharmaceuticals International, Inc.*		9,344		1,666,783
McKesson Corp.		8,207		1,518,542
Cardinal Health, Inc.		15,232		1,170,122
AmerisourceBergen Corp. — Class A		11,060		1,050,589
Baxalta, Inc.		33,197		1,046,037
Teva Pharmaceutical Industries Ltd. ADR		17,667		997,479
Mylan N.V.*		24,752		996,516
Perrigo Company plc		5,994		942,676
Endo International plc*		13,358		925,442
Shire plc ADR		4,072		835,697
GlaxoSmithKline plc ADR		21,597		830,405
Novartis AG ADR		8,451		776,816
AstraZeneca plc ADR		21,876		696,094
Jazz Pharmaceuticals plc*		5,200		690,612
Novo Nordisk A/S ADR		12,700		688,848
Quintiles Transnational Holdings, Inc.*		9,739		677,542
Alkermes plc*		11,172		655,461
DexCom, Inc.*		7,000		601,020
Mallinckrodt plc*		9,244		591,061
VCA, Inc.*		9,305		489,908
OPKO Health, Inc.*		56,880		478,361
Clovis Oncology, Inc.*		4,755		437,270
ACADIA Pharmaceuticals, Inc.*		11,885		393,037
Neurocrine Biosciences, Inc.*		9,700		385,963
Akorn, Inc.*		13,535		385,815
Agios Pharmaceuticals, Inc.*		5,200		367,068
Anacor Pharmaceuticals, Inc.*		3,100		364,901
Horizon Pharma plc*		18,400		364,688
Impax Laboratories, Inc.*		10,000		352,100
Radius Health, Inc.*		4,200		291,102
Catalent, Inc.*		10,800		262,440
Lannett Company, Inc.*		6,300		261,576
Dyax Corp.*		13,000		248,170
Pacira Pharmaceuticals, Inc.*		5,900		242,490
Insys Therapeutics, Inc.*		7,400		210,604
Chimerix, Inc.*		5,200		198,640
Amicus Therapeutics, Inc.*		14,100		197,259
Sarepta Therapeutics, Inc.*		5,500		176,605
Depomed, Inc.*		7,700		145,145
Total Pharmaceuticals				48,721,651
Biotechnology - 20.3%
Gilead Sciences, Inc.		28,315		2,780,251
Amgen, Inc.		17,470		2,416,451
Celgene Corp.*		19,743		2,135,601
Biogen, Inc.*		6,638		1,937,035
Regeneron Pharmaceuticals, Inc.*		3,374		1,569,382
Alexion Pharmaceuticals, Inc.*		9,034		1,412,827
Illumina, Inc.*		6,514		1,145,291
Vertex Pharmaceuticals, Inc.*		10,605		1,104,405
Incyte Corp.*		9,127		1,006,982
BioMarin Pharmaceutical, Inc.*		8,732		919,654
Medivation, Inc.*		13,896		590,580
United Therapeutics Corp.*		4,456		584,805
Alnylam Pharmaceuticals, Inc.*		6,945		558,100
Seattle Genetics, Inc.*		13,233		510,264
Intercept Pharmaceuticals, Inc.*		3,000		497,580
Juno Therapeutics, Inc.*		12,100		492,349
Isis Pharmaceuticals, Inc.*		11,571		467,700
Charles River Laboratories International, Inc.*		6,185		392,871
Intrexon Corp.*		12,200		387,960
Myriad Genetics, Inc.*		10,000		374,800
Kite Pharma, Inc.*		6,700		373,056
Medicines Co.*		9,700		368,212
Bluebird Bio, Inc.*		4,200		359,310
Puma Biotechnology, Inc.*		4,536		341,833
Exact Sciences Corp.*		17,200		309,428
Novavax, Inc.*		40,900		289,163
Ultragenyx Pharmaceutical, Inc.*		3,000		288,930
AMAG Pharmaceuticals, Inc.*		6,500		258,245
Acorda Therapeutics, Inc.*		9,000		238,590
ZIOPHARM Oncology, Inc.*		25,790		232,368
ARIAD Pharmaceuticals, Inc.*		38,000		221,920
Achillion Pharmaceuticals, Inc.*		31,700		219,047
PDL BioPharma, Inc.		43,241		217,502
Celldex Therapeutics, Inc.*		19,900		209,746
Ligand Pharmaceuticals, Inc. — Class B*		2,400		205,560
Esperion Therapeutics, Inc.*		5,700		134,463
Total Biotechnology				25,552,261
Health care-Products - 18.2%
Medtronic plc		29,304		1,961,611
Stryker Corp.		14,980		1,409,619
IDEXX Laboratories, Inc.*		18,254		1,355,360
Becton Dickinson and Co.		9,534		1,264,780
Boston Scientific Corp.*		68,764		1,128,417
Zimmer Biomet Holdings, Inc.		10,951		1,028,627
Intuitive Surgical, Inc.*		2,218		1,019,348
Baxter International, Inc.		30,197		991,971
St. Jude Medical, Inc.		15,638		986,601
Edwards Lifesciences Corp.*		6,834		971,590
CR Bard, Inc.		4,718		879,011
Henry Schein, Inc.*		6,090		808,265
Hologic, Inc.*		20,210		790,817
Cooper Companies, Inc.		4,570		680,290

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
HEALTH CARE FUND

	Shares		Value
ResMed, Inc.		12,862	$	655,448
DENTSPLY International, Inc.		12,783		646,436
Varian Medical Systems, Inc.*		8,737		644,616
Sirona Dental Systems, Inc.*		5,922		552,759
Teleflex, Inc.		4,380		544,040
Align Technology, Inc.*		9,254		525,257
Patterson Companies, Inc.		11,927		515,843
ABIOMED, Inc.*		5,300		491,628
STERIS Corp.		7,500		487,275
West Pharmaceutical Services, Inc.		8,800		476,256
Thoratec Corp.*		7,200		455,472
Cepheid*		9,057		409,376
Alere, Inc.*		6,600		317,790
Bio-Techne Corp.		3,400		314,364
Hill-Rom Holdings, Inc.		5,300		275,547
Wright Medical Group, Inc.*		10,900		229,118
HeartWare International, Inc.*		2,800		146,468
Total Health Care-Products				22,964,000
Health care-Services – 15.9%
UnitedHealth Group, Inc.		21,755		2,523,797
Aetna, Inc.		13,337		1,459,201
Anthem, Inc.		10,184		1,425,760
Cigna Corp.		10,380		1,401,508
HCA Holdings, Inc.*		17,274		1,336,317
Humana, Inc.		7,142		1,278,418
DaVita HealthCare Partners, Inc.*		13,131		949,765
Universal Health Services, Inc. — Class B		6,576		820,751
Laboratory Corporation of America Holdings*		7,362		798,556
Quest Diagnostics, Inc.		11,244		691,169
MEDNAX, Inc.*		8,306		637,818
Envision Healthcare Holdings, Inc.*		16,300		599,677
Centene Corp.*		10,520		570,500
Community Health Systems, Inc.*		12,085		516,875
Health Net, Inc.*		8,396		505,607
Amsurg Corp. — Class A*		6,100		474,031
Brookdale Senior Living, Inc. — Class A*		20,231		464,504
WellCare Health Plans, Inc.*		5,300		456,754
Molina Healthcare, Inc.*		6,426		442,430
HealthSouth Corp.		11,500		441,255
LifePoint Health, Inc.*		6,041		428,307
Tenet Healthcare Corp.*		11,400		420,888
ICON plc*		5,900		418,723
Acadia Healthcare Company, Inc.*		5,000		331,350
Kindred Healthcare, Inc.		16,200		255,150
Chemed Corp.		1,900		253,593
Adeptus Health, Inc. — Class A*		2,300		185,748
Total Health Care-Services				20,088,452
Electronics - 3.5%
Thermo Fisher Scientific, Inc.		13,779		1,684,897
Agilent Technologies, Inc.		23,283		799,305
Waters Corp.*		6,297		744,368
Mettler-Toledo International, Inc.*		2,450		697,613
PerkinElmer, Inc.		11,823		543,385
Total Electronics				4,469,568
Software - 2.2%
Cerner Corp.*		18,044		1,081,918
athenahealth, Inc.*		4,180		557,403
IMS Health Holdings, Inc.*		16,800		488,880
Allscripts Healthcare Solutions, Inc.*		28,800		357,120
Medidata Solutions, Inc.*		5,500		231,605
Total Software				2,716,926
Commercial Services - 0.7%
Team Health Holdings, Inc.*		8,500		459,255
PAREXEL International Corp.*		6,900		427,248
Total Commercial Services				886,503
Total Common Stocks
(Cost $80,311,967)				125,399,361

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	491,201		491,201
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		118,718		118,718
Total Repurchase Agreements
(Cost $609,919)				609,919
Total Investments - 100.0%
(Cost $80,921,886)			$	126,009,280
Other Assets & Liabilities, net - 0.0%				55,911
Total Net Assets - 100.0%			$	126,065,191

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $80,311,967)	$	125,399,361
Repurchase agreements, at value (cost $609,919)		609,919
Total investments (cost $80,921,886)		126,009,280
Receivables:
Fund shares sold		553,592
Dividends		138,959
Securities lending income		20,804
Interest		1
Total assets		126,722,636
Liabilities:
Payable for:
Fund shares redeemed		400,579
Management fees		127,233
Transfer agent and administrative fees		37,421
Distribution and service fees		23,857
Portfolio accounting fees		14,969
Miscellaneous		53,386
Total liabilities		657,445
Commitments and contingent liabilities (Note 9)		—
Net assets	$	126,065,191
Net assets consist of:
Paid in capital	$	79,532,544
Accumulated net investment loss		(193,509	)
Accumulated net realized gain on investments		1,638,762
Net unrealized appreciation on investments		45,087,394
Net assets	$	126,065,191
Investor Class:
Net assets	$	53,546,429
Capital shares outstanding		1,686,475
Net asset value per share	$	31.75
Advisor Class:
Net assets	$	36,987,781
Capital shares outstanding		1,278,799
Net asset value per share	$	28.92
A-Class:
Net assets	$	24,813,370
Capital shares outstanding		834,671
Net asset value per share	$	29.73
Maximum offering price per share (Net asset value divided by 95.25%)	$	31.21
C-Class:
Net assets	$	10,717,611
Capital shares outstanding		394,405
Net asset value per share	$	27.17

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	1,279,980
Income from securities lending, net		527,124
Interest		209
Total investment income		1,807,313
Expenses:
Management fees		1,132,019
Transfer agent and administrative fees		332,946
Distribution and service fees:
Advisor Class		134,488
A-Class		33,481
C-Class		64,708
Portfolio accounting fees		129,601
Custodian fees		15,326
Trustees’ fees*		8,218
Line of credit fees		555
Miscellaneous		149,480
Total expenses		2,000,822
Net investment loss		(193,509	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,311,575
Net realized gain		6,311,575
Net change in unrealized appreciation (depreciation) on:
Investments		(32,586,659	)
Net change in unrealized appreciation (depreciation)		(32,586,659	)
Net realized and unrealized loss		(26,275,084	)
Net decrease in net assets resulting from operations	$	(26,468,593	)

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(193,509	)	$	(733,012	)
Net realized gain on investments		6,311,575			8,068,372
Net change in unrealized appreciation (depreciation) on investments		(32,586,659	)		40,282,429
Net increase (decrease) in net assets resulting from operations		(26,468,593	)		47,617,789
Distributions to shareholders from:
Net realized gains
Investor Class		—			(1,752,480	)
Advisor Class		—			(465,325	)
A-Class		—			(250,757	)
C-Class		—			(125,703	)
Total distributions to shareholders		—			(2,594,265	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		196,266,235			349,067,609
Advisor Class		229,763,294			141,454,376
A-Class		39,821,428			42,834,467
C-Class		14,105,930			27,276,806
Distributions reinvested
Investor Class		—			1,343,589
Advisor Class		—			464,580
A-Class		—			203,075
C-Class		—			120,158
Cost of shares redeemed
Investor Class		(302,246,062	)		(302,007,365	)
Advisor Class		(238,279,293	)		(139,767,422	)
A-Class		(39,295,189	)		(26,627,112	)
C-Class		(13,389,293	)		(25,514,379	)
Net increase (decrease) from capital share transactions		(113,252,950	)		68,848,382
Net increase (decrease) in net assets		(139,721,543	)		113,871,906
Net assets:
Beginning of period		265,786,734			151,914,828
End of period	$	126,065,191		$	265,786,734
Accumulated net investment loss at end of period	$	(193,509	)	$	—

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		5,301,688			11,255,406
Advisor Class		6,801,394			4,878,949
A-Class		1,159,539			1,476,215
C-Class		450,674			1,010,754
Shares issued from reinvestment of distributions
Investor Class		—			41,909
Advisor Class		—			15,845
A-Class		—			6,749
C-Class		—			4,361
Shares redeemed
Investor Class		(8,510,071	)		(9,940,130	)
Advisor Class		(7,055,331	)		(4,871,552	)
A-Class		(1,179,224	)		(931,513	)
C-Class		(431,024	)		(943,291	)
Net increase (decrease) in shares		(3,462,355	)		2,003,702

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	35.83		$	27.76		$	22.35		$	18.83		$	17.14		$	15.80
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(.07	)		(.03	)		.09			.01			(.02	)
Net gain (loss) on investments (realized and unrealized)		(4.08	)		8.50			7.00			3.48			1.68			1.36
Total from investment operations		(4.08	)		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	$	31.75		$	35.83		$	27.76		$	22.35		$	18.83		$	17.14
Total Returnd		(11.39	%)		30.51	%		31.70	%		18.98	%		9.86	%		8.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,546		$	175,397		$	98,209		$	104,525		$	39,036		$	19,534
Ratios to average net assets:
Net investment income (loss)		0.00	%e		(0.23	%)		(0.12	%)		0.45	%		0.08	%		(0.10	%)
Total expenses		1.33	%		1.34	%		1.37	%		1.35	%		1.36	%		1.38	%
Portfolio turnover rate		135	%		176	%		277	%		266	%		582	%		619	%

Advisor Class	Period Ended September 30, 2015a			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	$	32.71		$	25.49		$	20.73		$	17.55		$	16.04		$	14.85
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.21	)		(.15	)		(.06	)		(.07	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		(3.74	)		7.79			6.47			3.29			1.58			1.24
Total from investment operations		(3.79	)		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	$	28.92		$	32.71		$	25.49		$	20.73		$	17.55		$	16.04
Total Returnd		(11.59	%)		29.89	%		31.03	%		18.43	%		9.41	%		8.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	36,988		$	50,135		$	38,480		$	3,605		$	4,275		$	2,229
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.73	%)		(0.62	%)		(0.31	%)		(0.44	%)		(0.36	%)
Total expenses		1.74	%		1.85	%		1.87	%		1.86	%		1.85	%		1.88	%
Portfolio turnover rate		135	%		176	%		277	%		266	%		582	%		619	%

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	33.60		$	26.11		$	21.15		$	17.87		$	16.30		$	15.05
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.14	)		(.09	)		.04			(.02	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		(3.83	)		7.99			6.61			3.29			1.59			1.27
Total from investment operations		(3.87	)		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	$	29.73		$	33.60		$	26.11		$	21.15		$	17.87		$	16.30
Total Returnd		(11.52	%)		30.21	%		31.36	%		18.65	%		9.63	%		8.31	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,813		$	28,704		$	7,909		$	3,660		$	2,964		$	1,156
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(0.47	%)		(0.37	%)		0.20	%		(0.13	%)		(0.14	%)
Total expenses		1.58	%		1.59	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		135	%		176	%		277	%		266	%		582	%		619	%

C-Class	Period Ended September 30, 2015a			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	$	30.82		$	24.16		$	19.81		$	16.86		$	15.50		$	14.39
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.33	)		(.26	)		(.09	)		(.14	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(3.50	)		7.35			6.17			3.09			1.50			1.22
Total from investment operations		(3.65	)		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	$	27.17		$	30.82		$	24.16		$	19.81		$	16.86		$	15.50
Total Returnd		(11.84	%)		29.21	%		30.38	%		17.81	%		8.77	%		7.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,718		$	11,551		$	7,318		$	4,589		$	3,468		$	3,870
Ratios to average net assets:
Net investment income (loss)		(0.96	%)		(1.24	%)		(1.14	%)		(0.53	%)		(0.91	%)		(0.76	%)
Total expenses		2.33	%		2.34	%		2.37	%		2.35	%		2.36	%		2.38	%
Portfolio turnover rate		135	%		176	%		277	%		266	%		582	%		619	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Less than 0.01%.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
Google, Inc. — Class A	6.6%
Facebook, Inc. — Class A	5.1%
Amazon.com, Inc.	5.0%
Cisco Systems, Inc.	3.7%
QUALCOMM, Inc.	2.9%
Priceline Group, Inc.	2.5%
Time Warner, Inc.	2.4%
salesforce.com, Inc.	2.2%
Netflix, Inc.	2.1%
PayPal Holdings, Inc.	1.9%
Top Ten Total	34.4%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

76 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Internet - 52.5%
Google, Inc. — Class A*		2,462	$	1,571,668
Facebook, Inc. — Class A*		13,309		1,196,479
Amazon.com, Inc.*		2,305		1,179,907
Priceline Group, Inc.*		480		593,692
Netflix, Inc.*		4,785		494,098
eBay, Inc.*		16,164		395,048
Yahoo!, Inc.*		13,228		382,421
LinkedIn Corp. — Class A*		1,986		377,598
Expedia, Inc.		3,090		363,631
Twitter, Inc.*		11,871		319,805
Alibaba Group Holding Ltd. ADR*		4,700		277,159
Symantec Corp.		14,232		277,098
VeriSign, Inc.*		3,188		224,945
TripAdvisor, Inc.*		3,496		220,318
F5 Networks, Inc.*		1,892		219,094
Baidu, Inc. ADR*		1,505		206,802
Vipshop Holdings Ltd. ADR*		12,209		205,111
Ctrip.com International Ltd. ADR*		2,976		188,024
Qihoo 360 Technology Company Ltd. ADR*		3,869		185,054
Liberty Ventures*		4,454		179,719
SouFun Holdings Ltd. ADR		26,399		174,233
Zillow Group, Inc. — Class A*		6,038		173,472
IAC/InterActiveCorp		2,640		172,313
Pandora Media, Inc.*		7,997		170,656
Zillow Group, Inc. — Class C*		6,186		167,022
58.com, Inc. ADR*		3,470		163,264
Autohome, Inc. ADR*		4,880		158,746
Bitauto Holdings Ltd. ADR*		5,315		158,228
SINA Corp.*		3,895		156,267
JD.com, Inc. ADR*		5,610		146,197
Youku Tudou, Inc. ADR*		8,145		143,596
YY, Inc. ADR*		2,628		143,331
j2 Global, Inc.		2,020		143,117
MercadoLibre, Inc.		1,443		131,400
HomeAway, Inc.*		4,332		114,971
zulily, Inc. — Class A*		6,353		110,542
GrubHub, Inc.*		4,374		106,463
comScore, Inc.*		2,160		99,684
Groupon, Inc. — Class A*		30,010		97,833
WebMD Health Corp. — Class A*		2,309		91,991
Yelp, Inc. — Class A*		4,164		90,192
Cogent Communications Holdings, Inc.		3,247		88,189
Shutterfly, Inc.*		2,381		85,121
Stamps.com, Inc.*		1,110		82,151
Shutterstock, Inc.*		2,550		77,112
Wayfair, Inc. — Class A*		1,920		67,315
Sohu.com, Inc.*		1,590		65,667
Total Internet				12,436,744
Telecommunications - 16.4%
Cisco Systems, Inc.		33,797		887,171
Palo Alto Networks, Inc.*		1,668		286,896
Motorola Solutions, Inc.		3,926		268,459
Juniper Networks, Inc.		9,318		239,566
CommScope Holding Company, Inc.*		5,828		175,015
Nokia Oyj ADR		23,125		156,788
Arista Networks, Inc.*		2,530		154,811
ARRIS Group, Inc.*		5,542		143,926
Gogo, Inc.*		9,347		142,822
Telefonaktiebolaget LM Ericsson ADR		14,523		142,035
ViaSat, Inc.*		2,130		136,938
Ubiquiti Networks, Inc.		3,826		129,663
Infinera Corp.*		6,350		124,206
Ciena Corp.*		5,879		121,813
InterDigital, Inc.		2,110		106,766
LogMeIn, Inc.*		1,530		104,285
Plantronics, Inc.		2,000		101,700
Polycom, Inc.*		8,606		90,191
Viavi Solutions, Inc.*		15,766		84,663
Ruckus Wireless, Inc.*		6,568		78,028
Finisar Corp.*		6,887		76,652
NETGEAR, Inc.*		2,560		74,675
ADTRAN, Inc.		4,389		64,079
Total Telecommunications				3,891,148
Software - 10.6%
salesforce.com, Inc.*		7,360		511,005
Intuit, Inc.		4,272		379,140
Red Hat, Inc.*		3,907		280,835
Akamai Technologies, Inc.*		3,762		259,804
NetEase, Inc. ADR		1,573		188,949
Check Point Software Technologies Ltd.*		2,300		182,459
Dealertrack Technologies, Inc.*		2,306		145,647
Rackspace Hosting, Inc.*		5,230		129,076
Veeva Systems, Inc. — Class A*		5,440		127,350
Allscripts Healthcare Solutions, Inc.*		9,016		111,798
Demandware, Inc.*		1,970		101,810
Cornerstone OnDemand, Inc.*		2,990		98,670
Total Software				2,516,543
Diversified Financial Services - 4.8%
Charles Schwab Corp.		15,803		451,333
TD Ameritrade Holding Corp.		9,620		306,301
E*TRADE Financial Corp.*		7,860		206,954
LendingClub Corp.*		13,031		172,400
Total Diversified Financial Services				1,136,988
Semiconductors - 4.7%
QUALCOMM, Inc.		12,924		694,407
Broadcom Corp. — Class A		8,186		421,006
Total Semiconductors				1,115,413

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 77

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
INTERNET FUND

	Shares		Value
Commercial Services - 4.0%
PayPal Holdings, Inc.*		14,594	$	452,997
CoStar Group, Inc.*		1,044		180,675
Live Nation Entertainment, Inc.*		6,826		164,097
Cimpress N.V.*		2,034		154,808
Total Commercial Services				952,577
Media - 2.4%
Time Warner, Inc.		8,262		568,013
Computers - 1.5%
Brocade Communications Systems, Inc.		15,163		157,392
BlackBerry Ltd.*		18,539		113,644
NetScout Systems, Inc.*		1,980		70,033
Total Computers				341,069
REITs - 1.3%
Equinix, Inc.		1,082		295,819
Aerospace & Defense - 1.0%
Harris Corp.		3,242		237,152
Retail - 0.3%
Jumei International Holding Ltd. ADR*		7,080		69,879
Leisure Time - 0.3%
Qunar Cayman Islands Ltd. ADR*		2,210		66,455
Total Common Stocks
(Cost $18,197,474)				23,627,800

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	119,449		119,449
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		28,869		28,869
Total Repurchase Agreements
(Cost $148,318)				148,318
Total Investments - 100.4%
(Cost $18,345,792)			$	23,776,118
Other Assets & Liabilities, net - (0.4)%				(87,713	)
Total Net Assets - 100.0%			$	23,688,405

*	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.
	ADR — American Depositary Receipt
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $18,197,474)	$	23,627,800
Repurchase agreements, at value (cost $148,318)		148,318
Total investments (cost $18,345,792)		23,776,118
Receivables:
Securities sold		840,725
Fund shares sold		23,506
Dividends		2,038
Foreign taxes reclaim		1,328
Securities lending income		186
Total assets		24,643,901
Liabilities:
Payable for:
Fund shares redeemed		921,632
Management fees		15,536
Transfer agent and administrative fees		4,569
Distribution and service fees		3,776
Portfolio accounting fees		1,828
Miscellaneous		8,155
Total liabilities		955,496
Commitments and contingent liabilities (Note 9)		—
Net assets	$	23,688,405
Net assets consist of:
Paid in capital	$	23,952,014
Accumulated net investment loss		(168,550	)
Accumulated net realized loss on investments		(5,525,385	)
Net unrealized appreciation on investments		5,430,326
Net assets	$	23,688,405
Investor Class:
Net assets	$	11,418,124
Capital shares outstanding		154,286
Net asset value per share	$	74.01
Advisor Class:
Net assets	$	2,653,490
Capital shares outstanding		39,052
Net asset value per share	$	67.95
A-Class:
Net assets	$	7,047,559
Capital shares outstanding		100,740
Net asset value per share	$	69.96
Maximum offering price per share (Net asset value divided by 95.25%)	$	73.45
C-Class:
Net assets	$	2,569,232
Capital shares outstanding		40,451
Net asset value per share	$	63.51

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $1,109)	$	83,163
Income from securities lending, net		6,671
Interest		35
Total investment income		89,869
Expenses:
Management fees		138,705
Transfer agent and administrative fees		40,796
Distribution and service fees:
Advisor Class		22,902
A-Class		4,803
C-Class		13,441
Portfolio accounting fees		16,318
Custodian fees		1,890
Trustees’ fees*		829
Line of credit fees		16
Miscellaneous		18,719
Total expenses		258,419
Net investment loss		(168,550	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,595,625	)
Net realized loss		(3,595,625	)
Net change in unrealized appreciation (depreciation) on:
Investments		(440,574	)
Net change in unrealized appreciation (depreciation)		(440,574	)
Net realized and unrealized loss		(4,036,199	)
Net decrease in net assets resulting from operations	$	(4,204,749	)

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

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

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(168,550	)	$	(182,551	)
Net realized gain (loss) on investments		(3,595,625	)		3,805,670
Net change in unrealized appreciation (depreciation) on investments		(440,574	)		(3,557,558	)
Net increase (decrease) in net assets resulting from operations		(4,204,749	)		65,561
Distributions to shareholders from:
Net realized gains
Investor Class		—			(212,285	)
Advisor Class		—			(44,657	)
A-Class		—			(66,053	)
C-Class		—			(76,244	)
Total distributions to shareholders		—			(399,239	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		40,493,175			43,138,842
Advisor Class		121,388,472			94,544,871
A-Class		17,831,203			4,055,990
C-Class		4,230,450			11,747,458
Distributions reinvested
Investor Class		—			205,625
Advisor Class		—			44,428
A-Class		—			53,517
C-Class		—			74,878
Cost of shares redeemed
Investor Class		(36,092,220	)		(61,299,428	)
Advisor Class		(118,263,257	)		(105,054,927	)
A-Class		(12,367,880	)		(14,360,288	)
C-Class		(3,942,989	)		(14,064,904	)
Net increase (decrease) from capital share transactions		13,276,954			(40,913,938	)
Net increase (decrease) in net assets		9,072,205			(41,247,616	)
Net assets:
Beginning of period		14,616,200			55,863,816
End of period	$	23,688,405		$	14,616,200
Accumulated net investment loss at end of period	$	(168,550	)	$	—
Capital share activity:
Shares sold
Investor Class		503,510			568,304
Advisor Class		1,621,684			1,359,702
A-Class		236,910			55,579
C-Class		61,719			177,866
Shares issued from reinvestment of distributions
Investor Class		—			2,672
Advisor Class		—			626
A-Class		—			734
C-Class		—			1,124
Shares redeemed
Investor Class		(456,172	)		(821,508	)
Advisor Class		(1,608,177	)		(1,504,575	)
A-Class		(163,597	)		(205,087	)
C-Class		(57,539	)		(213,643	)
Net increase (decrease) in shares		138,338			(578,206	)

80 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			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	$	77.87		$	75.05		$	55.46		$	51.90		$	52.28		$	41.74
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.49	)		(.62	)		(.44	)		(.51	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		(3.55	)		5.27			20.53			5.26			.13			10.88
Total from investment operations		(3.86	)		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	$	74.01		$	77.87		$	75.05		$	55.46		$	51.90		$	52.28
Total Returnc		(4.96	%)		6.40	%		35.93	%		9.65	%		(0.73	%)		25.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,418		$	8,328		$	26,828		$	6,109		$	6,206		$	20,589
Ratios to average net assets:
Net investment income (loss)		(0.77	%)		(0.64	%)		(0.87	%)		(0.87	%)		(1.05	%)		(0.69	%)
Total expenses		1.33	%		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		399	%		495	%		472	%		442	%		380	%		291	%

Advisor Class	Period Ended September 30, 2015a			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	$	71.64		$	69.58		$	51.70		$	48.71		$	49.31		$	39.57
Income (loss) from investment operations:
Net investment income (loss)b		(.43	)		(.78	)		(1.07	)		(.64	)		(.71	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		(3.26	)		4.80			19.27			4.89			.11			10.33
Total from investment operations		(3.69	)		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	$	67.95		$	71.64		$	69.58		$	51.70		$	48.71		$	49.31
Total Returnc		(5.15	%)		5.80	%		35.23	%		9.13	%		(1.24	%)		24.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,653		$	1,830		$	11,814		$	552		$	719		$	2,124
Ratios to average net assets:
Net investment income (loss)		(1.16	%)		(1.12	%)		(1.53	%)		(1.36	%)		(1.58	%)		(1.32	%)
Total expenses		1.71	%		1.85	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		399	%		495	%		472	%		442	%		380	%		291	%

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

INTERNET FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	73.71		$	71.32		$	52.85		$	49.63		$	50.13		$	40.12
Income (loss) from investment operations:
Net investment income (loss)b		(.41	)		(.61	)		(.79	)		(.52	)		(.64	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		(3.34	)		4.96			19.58			5.00			.14			10.47
Total from investment operations		(3.75	)		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	$	69.96		$	73.71		$	71.32		$	52.85		$	49.63		$	50.13
Total Returnc		(5.09	%)		6.12	%		35.58	%		9.41	%		(1.00	%)		24.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,048		$	2,022		$	12,566		$	1,192		$	828		$	1,101
Ratios to average net assets:
Net investment income (loss)		(1.09	%)		(0.86	%)		(1.12	%)		(1.08	%)		(1.39	%)		(1.01	%)
Total expenses		1.58	%		1.61	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		399	%		495	%		472	%		442	%		380	%		291	%

C-Class	Period Ended September 30, 2015a			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	$	67.17		$	65.64		$	49.03		$	46.50		$	47.30		$	38.17
Income (loss) from investment operations:
Net investment income (loss)b		(.60	)		(1.11	)		(1.16	)		(.85	)		(.94	)		(.83	)
Net gain (loss) on investments (realized and unrealized)		(3.06	)		4.60			18.09			4.64			.14			9.96
Total from investment operations		(3.66	)		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	$	63.51		$	67.17		$	65.64		$	49.03		$	46.50		$	47.30
Total Returnc		(5.43	%)		5.34	%		34.56	%		8.55	%		(1.69	%)		23.92	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,569		$	2,436		$	4,655		$	1,111		$	643		$	1,770
Ratios to average net assets:
Net investment income (loss)		(1.75	%)		(1.68	%)		(1.85	%)		(1.91	%)		(2.17	%)		(1.92	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		399	%		495	%		472	%		442	%		380	%		291	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2015

LEISURE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Walt Disney Co.	4.1%
Comcast Corp. — Class A	3.7%
Philip Morris International, Inc.	3.4%
Altria Group, Inc.	3.1%
McDonald’s Corp.	3.0%
Starbucks Corp.	2.8%
Reynolds American, Inc.	2.5%
Time Warner, Inc.	2.3%
Twenty-First Century Fox, Inc. — Class A	2.3%
Time Warner Cable, Inc.	2.2%
Top Ten Total	29.4%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 83

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Media - 32.4%
Walt Disney Co.		11,261	$	1,150,873
Comcast Corp. — Class A		18,015		1,024,692
Time Warner, Inc.		9,482		651,888
Twenty-First Century Fox, Inc. — Class A		23,919		645,335
Time Warner Cable, Inc.		3,448		618,468
Thomson Reuters Corp.		12,074		486,099
Charter Communications, Inc. — Class A*		2,230		392,146
DISH Network Corp. — Class A*		6,696		390,645
CBS Corp. — Class B		9,395		374,860
Viacom, Inc. — Class B		8,212		354,348
Discovery Communications, Inc. — Class A*		12,883		335,344
Liberty Media Corp. — Class A*		8,200		292,904
Cablevision Systems Corp. — Class A		8,716		283,009
News Corp. — Class A		18,324		231,249
Liberty Global plc*		5,509		225,979
Scripps Networks Interactive, Inc. — Class A		4,354		214,173
AMC Networks, Inc. — Class A*		2,640		193,169
TEGNA, Inc.		8,579		192,084
Grupo Televisa SAB ADR		6,430		167,309
Starz — Class A*		4,367		163,064
Tribune Media Co. — Class A		4,350		154,860
Sinclair Broadcast Group, Inc. — Class A		5,180		131,158
Gannett Company, Inc.		8,169		120,329
Nexstar Broadcasting Group, Inc. — Class A		2,390		113,167
Meredith Corp.		2,540		108,153
Time, Inc.		5,595		106,585
Total Media				9,121,890
Retail - 20.3%
McDonald’s Corp.		8,629		850,214
Starbucks Corp.		13,978		794,509
Chipotle Mexican Grill, Inc. — Class A*		599		431,430
Yum! Brands, Inc.		5,341		427,013
Darden Restaurants, Inc.		3,829		262,440
Domino’s Pizza, Inc.		2,024		218,410
Panera Bread Co. — Class A*		1,078		208,496
Restaurant Brands International, Inc.		5,571		200,110
Dunkin’ Brands Group, Inc.		3,950		193,550
Cracker Barrel Old Country Store, Inc.		1,190		175,263
Buffalo Wild Wings, Inc.*		897		173,507
Jack in the Box, Inc.		2,030		156,391
Brinker International, Inc.		2,824		148,740
Papa John’s International, Inc.		2,170		148,602
Vista Outdoor, Inc.*		3,238		143,864
Texas Roadhouse, Inc. — Class A		3,844		142,997
Cheesecake Factory, Inc.		2,560		138,138
Wendy’s Co.		15,573		134,706
DineEquity, Inc.		1,300		119,158
Shake Shack, Inc. — Class A*		2,440		115,656
Bloomin’ Brands, Inc.		5,881		106,917
Sonic Corp.		4,230		97,079
Red Robin Gourmet Burgers, Inc.*		1,210		91,645
Bob Evans Farms, Inc.		2,000		86,700
Zoe’s Kitchen, Inc.*		2,190		86,483
El Pollo Loco Holdings, Inc.*		4,840		52,175
Total Retail				5,704,193
Lodging - 10.1%
Hilton Worldwide Holdings, Inc.		22,810		523,260
Las Vegas Sands Corp.		11,007		417,935
Marriott International, Inc. — Class A		5,343		364,393
Starwood Hotels & Resorts Worldwide, Inc.		4,216		280,280
MGM Resorts International*		14,000		258,300
Wyndham Worldwide Corp.		3,421		245,970
Hyatt Hotels Corp. — Class A*		4,650		219,015
Melco Crown Entertainment Ltd. ADR		12,593		173,280
Wynn Resorts Ltd.		3,071		163,132
La Quinta Holdings, Inc.*		6,210		97,994
Boyd Gaming Corp.*		5,940		96,822
Total Lodging				2,840,381
Agriculture - 9.0%
Philip Morris International, Inc.		11,873		941,884
Altria Group, Inc.		16,209		881,770
Reynolds American, Inc.		15,896		703,716
Total Agriculture				2,527,370
Beverages - 7.2%
Constellation Brands, Inc. — Class A		3,391		424,587
Brown-Forman Corp. — Class B		4,183		405,333
Molson Coors Brewing Co. — Class B		3,914		324,940
Anheuser-Busch InBev S.A. ADR		2,583		274,625
Ambev S.A. ADR		47,496		232,730
Diageo plc ADR		2,010		216,658
Boston Beer Company, Inc. — Class A*		700		147,427
Total Beverages				2,026,300
Leisure Time - 6.9%
Carnival Corp.		10,691		531,343
Royal Caribbean Cruises Ltd.		4,212		375,247
Norwegian Cruise Line Holdings Ltd.*		5,360		307,128
Harley-Davidson, Inc.		5,331		292,672
Polaris Industries, Inc.		2,030		243,336
Brunswick Corp.		3,757		179,923
Total Leisure Time				1,929,649
Entertainment - 6.2%
Lions Gate Entertainment Corp.		5,397		198,610
MSG Networks Inc. — Class A*		2,680		193,335
Six Flags Entertainment Corp.		3,940		180,372
Vail Resorts, Inc.		1,670		174,816
Cinemark Holdings, Inc.		5,126		166,544
Regal Entertainment Group — Class A		8,090		151,202
International Game Technology plc		9,428		144,532
Marriott Vacations Worldwide Corp.		1,890		128,785

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
LEISURE FUND

	Shares		Value
Pinnacle Entertainment, Inc.*		3,566	$	120,673
DreamWorks Animation SKG, Inc. — Class A*		5,845		101,995
Penn National Gaming, Inc.*		5,890		98,834
SeaWorld Entertainment, Inc.		5,280		94,037
Total Entertainment				1,753,735
Software - 3.4%
Activision Blizzard, Inc.		13,303		410,930
Electronic Arts, Inc.*		5,867		397,489
Take-Two Interactive Software, Inc.*		4,771		137,071
Total Software				945,490
Toys, Games & Hobbies - 1.7%
Hasbro, Inc.		3,472		250,470
Mattel, Inc.		10,319		217,318
Total Toys, Games & Hobbies				467,788
Commercial Services - 1.5%
Aramark		7,686		227,813
Live Nation Entertainment, Inc.*		7,822		188,041
Total Commercial Services				415,854
Electronics - 0.7%
IMAX Corp.*		5,830		196,996
Total Common Stocks
(Cost $23,551,367)				27,929,646

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.4%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	97,881		97,881
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		23,657		23,657
Total Repurchase Agreements
(Cost $121,538)				121,538
Total Investments - 99.8%
(Cost $23,672,905)			$	28,051,184
Other Assets & Liabilities, net - 0.2%				59,487
Total Net Assets - 100.0%			$	28,110,671

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $23,551,367)	$	27,929,646
Repurchase agreements, at value (cost $121,538)		121,538
Total investments (cost $23,672,905)		28,051,184
Receivables:
Fund shares sold		71,247
Dividends		55,717
Foreign taxes reclaim		1,733
Total assets		28,179,881
Liabilities:
Payable for:
Fund shares redeemed		27,509
Management fees		20,149
Transfer agent and administrative fees		5,926
Distribution and service fees		3,788
Portfolio accounting fees		2,370
Miscellaneous		9,468
Total liabilities		69,210
Commitments and contingent liabilities (Note 9)		—
Net assets	$	28,110,671
Net assets consist of:
Paid in capital	$	25,778,707
Undistributed net investment income		338,569
Accumulated net realized loss on investments		(2,384,884	)
Net unrealized appreciation on investments		4,378,279
Net assets	$	28,110,671
Investor Class:
Net assets	$	13,524,427
Capital shares outstanding		235,202
Net asset value per share	$	57.50
Advisor Class:
Net assets	$	2,923,341
Capital shares outstanding		55,761
Net asset value per share	$	52.43
A-Class:
Net assets	$	10,262,514
Capital shares outstanding		190,870
Net asset value per share	$	53.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.45
C-Class:
Net assets	$	1,400,389
Capital shares outstanding		28,209
Net asset value per share	$	49.64

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $6,391)	$	391,372
Income from securities lending, net		27,976
Interest		52
Total investment income		419,400
Expenses:
Management fees		213,870
Transfer agent and administrative fees		62,903
Distribution and service fees:
Advisor Class		11,605
A-Class		12,707
C-Class		7,708
Portfolio accounting fees		25,161
Custodian fees		2,881
Trustees’ fees*		1,582
Line of credit fees		45
Miscellaneous		27,898
Total expenses		366,360
Net investment income		53,040
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(465,804	)
Net realized loss		(465,804	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,141,461	)
Net change in unrealized appreciation (depreciation)		(3,141,461	)
Net realized and unrealized loss		(3,607,265	)
Net decrease in net assets resulting from operations	$	(3,554,225	)

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	53,040		$	285,529
Net realized gain (loss) on investments		(465,804	)		5,468,270
Net change in unrealized appreciation (depreciation) on investments		(3,141,461	)		(1,903,716	)
Net increase (decrease) in net assets resulting from operations		(3,554,225	)		3,850,083
Distributions to shareholders from:
Net investment income
Investor Class		—			(86,741	)
Advisor Class		—			(2,421	)
A-Class		—			(3,222	)
C-Class		—			(2,262	)
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	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		40,751,789			66,551,897
Advisor Class		61,401,775			92,571,748
A-Class		14,912,000			16,562,062
C-Class		429,681			3,107,048
Distributions reinvested
Investor Class		—			233,102
Advisor Class		—			25,054
A-Class		—			32,921
C-Class		—			22,369
Cost of shares redeemed
Investor Class		(73,854,028	)		(44,791,384	)
Advisor Class		(64,504,916	)		(88,739,965	)
A-Class		(14,810,849	)		(7,989,563	)
C-Class		(521,108	)		(3,077,948	)
Net increase (decrease) from capital share transactions		(36,195,656	)		34,507,341
Net increase (decrease) in net assets		(39,749,881	)		37,368,863
Net assets:
Beginning of period		67,860,552			30,491,689
End of period	$	28,110,671		$	67,860,552
Undistributed net investment income at end of period	$	338,569		$	285,529

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		651,569			1,133,061
Advisor Class		1,084,121			1,731,706
A-Class		260,756			301,170
C-Class		8,101			61,845
Shares issued from reinvestment of distributions
Investor Class		—			4,036
Advisor Class		—			474
A-Class		—			608
C-Class		—			445
Shares redeemed
Investor Class		(1,214,622	)		(771,348	)
Advisor Class		(1,155,823	)		(1,665,419	)
A-Class		(258,038	)		(147,523	)
C-Class		(10,046	)		(61,892	)
Net increase (decrease) in shares		(633,982	)		587,163

88 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			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	$	60.75		$	55.81		$	44.93		$	36.94		$	33.50		$	27.48
Income (loss) from investment operations:
Net investment income (loss)b		.09			.52			.20			.36			.17			(.02	)
Net gain (loss) on investments (realized and unrealized)		(3.34	)		5.64			10.95			7.66			3.27			6.04
Total from investment operations		(3.25	)		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	$	57.50		$	60.75		$	55.81		$	44.93		$	36.94		$	33.50
Total Returnc		(5.35	%)		11.15	%		24.83	%		21.74	%		10.27	%		21.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,524		$	48,494		$	24,139		$	22,005		$	12,687		$	2,141
Ratios to average net assets:
Net investment income (loss)		0.28	%		0.89	%		0.39	%		0.92	%		0.49	%		(0.07	%)
Total expenses		1.33	%		1.34	%		1.37	%		1.35	%		1.35	%		1.39	%
Portfolio turnover rate		175	%		343	%		265	%		517	%		797	%		963	%

Advisor Class	Period Ended September 30, 2015a			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	$	55.50		$	51.31		$	41.54		$	34.33		$	31.29		$	25.81
Income (loss) from investment operations:
Net investment income (loss)b		.04			.30			(.11	)		.29			(.01	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(3.11	)		5.11			10.15			6.95			3.05			5.64
Total from investment operations		(3.07	)		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	$	52.43		$	55.50		$	51.31		$	41.54		$	34.33		$	31.29
Total Returnc		(5.53	%)		10.66	%		24.18	%		21.12	%		9.72	%		21.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,923		$	7,074		$	3,115		$	1,241		$	1,379		$	582
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.55	%		(0.23	%)		0.80	%		(0.03	%)		(0.61	%)
Total expenses		1.67	%		1.83	%		1.87	%		1.85	%		1.86	%		1.89	%
Portfolio turnover rate		175	%		343	%		265	%		517	%		797	%		963	%

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

LEISURE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	56.88		$	52.46		$	42.35		$	34.91		$	31.75		$	26.13
Income (loss) from investment operations:
Net investment income (loss)b		.04			.38			.04			.29			.07			(.05	)
Net gain (loss) on investments (realized and unrealized)		(3.15	)		5.26			10.34			7.18			3.09			5.67
Total from investment operations		(3.11	)		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	$	53.77		$	56.88		$	52.46		$	42.35		$	34.91		$	31.75
Total Returnc		(5.47	%)		10.86	%		24.53	%		21.42	%		9.95	%		21.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,263		$	10,703		$	1,778		$	1,409		$	448		$	1,157
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.69	%		0.09	%		0.80	%		0.23	%		(0.18	%)
Total expenses		1.58	%		1.58	%		1.62	%		1.60	%		1.60	%		1.63	%
Portfolio turnover rate		175	%		343	%		265	%		517	%		797	%		963	%

C-Class	Period Ended September 30, 2015a			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	$	52.72		$	49.07		$	39.92		$	33.16		$	30.36		$	25.19
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.19	)		(.27	)		.01			(.15	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		(2.94	)		5.06			9.69			6.78			2.95			5.47
Total from investment operations		(3.08	)		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	$	49.64		$	52.72		$	49.07		$	39.92		$	33.16		$	30.36
Total Returnc		(5.84	%)		10.04	%		23.61	%		20.54	%		9.19	%		20.52	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,400		$	1,590		$	1,460		$	928		$	1,345		$	828
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.37	%)		(0.59	%)		0.03	%		(0.50	%)		(1.13	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		175	%		343	%		265	%		517	%		797	%		963	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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.	6.8%
Newmont Mining Corp.	6.0%
Franco-Nevada Corp.	5.9%
Barrick Gold Corp.	5.8%
Agnico Eagle Mines Ltd.	5.2%
Randgold Resources Ltd. ADR	5.1%
Silver Wheaton Corp.	4.7%
Market Vectors Junior Gold Miners ETF	4.4%
AngloGold Ashanti Ltd. ADR	4.1%
Royal Gold, Inc.	3.7%
Top Ten Total	51.7%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 91

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Mining - 95.3%
Goldcorp, Inc.		191,477	$	2,397,293
Newmont Mining Corp.		130,616		2,098,999
Franco-Nevada Corp.		47,122		2,074,310
Barrick Gold Corp.		317,573		2,019,764
Agnico Eagle Mines Ltd.		72,552		1,837,017
Randgold Resources Ltd. ADR		30,361		1,794,031
Silver Wheaton Corp.		137,556		1,652,047
AngloGold Ashanti Ltd. ADR*		176,317		1,444,036
Royal Gold, Inc.		27,865		1,309,098
Eldorado Gold Corp.		377,521		1,215,618
Freeport-McMoRan, Inc.		115,707		1,121,201
Gold Fields Ltd. ADR		404,367		1,075,616
Kinross Gold Corp.*		619,994		1,066,390
Tahoe Resources, Inc.		134,663		1,042,292
Yamana Gold, Inc.		567,309		964,425
Cia de Minas Buenaventura S.A.A. ADR		152,172		906,945
Stillwater Mining Co.*		83,920		866,894
Novagold Resources, Inc.*		236,021		852,036
New Gold, Inc.*		350,279		795,133
Pretium Resources, Inc.*		128,507		777,467
Sibanye Gold Ltd. ADR		164,715		764,278
Pan American Silver Corp.		112,433		713,950
Alamos Gold, Inc. — Class A		187,715		692,668
Hecla Mining Co.		317,770		626,007
IAMGOLD Corp.*		362,564		590,979
Silver Standard Resources, Inc.*		80,803		526,836
First Majestic Silver Corp.*		149,913		479,722
Primero Mining Corp.*		201,207		468,812
Coeur Mining, Inc.*		157,215		443,346
Sandstorm Gold Ltd.*		161,599		431,469
Seabridge Gold, Inc.*		70,563		409,265
Total Mining				33,457,944
Total Common Stocks
(Cost $27,306,015)				33,457,944
EXCHANGE-TRADED FUNDS† - 4.4%
Market Vectors Junior Gold Miners ETF		79,653		1,560,402
Total Exchange-Traded Funds
(Cost $1,514,299)				1,560,402

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	129,380		129,380
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		31,270		31,270
Total Repurchase Agreements
(Cost $160,650)				160,650
Total Investments - 100.2%
(Cost $28,980,964)			$	35,178,996
Other Assets & Liabilities, net - (0.2)%				(63,200	)
Total Net Assets - 100.0%			$	35,115,796

*	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.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $28,820,314)	$	35,018,346
Repurchase agreements, at value (cost $160,650)		160,650
Total investments (cost $28,980,964)		35,178,996
Receivables:
Fund shares sold		1,489,764
Dividends		13,056
Total assets		36,681,816
Liabilities:
Payable for:
Securities purchased		1,339,080
Fund shares redeemed		183,717
Management fees		21,171
Transfer agent and administrative fees		7,057
Distribution and service fees		4,314
Portfolio accounting fees		2,823
Miscellaneous		7,858
Total liabilities		1,566,020
Commitments and contingent liabilities (Note 9)		—
Net assets	$	35,115,796
Net assets consist of:
Paid in capital	$	90,306,454
Accumulated net investment loss		(348,914	)
Accumulated net realized loss on investments		(61,039,776	)
Net unrealized appreciation on investments		6,198,032
Net assets	$	35,115,796
Investor Class:
Net assets	$	25,768,652
Capital shares outstanding		1,398,999
Net asset value per share	$	18.42
Advisor Class:
Net assets	$	2,873,444
Capital shares outstanding		166,096
Net asset value per share	$	17.30
A-Class:
Net assets	$	2,731,043
Capital shares outstanding		153,538
Net asset value per share	$	17.79
Maximum offering price per share (Net asset value divided by 95.25%)	$	18.68
C-Class:
Net assets	$	3,742,657
Capital shares outstanding		236,422
Net asset value per share	$	15.83

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $22,680)	$	178,011
Income from securities lending, net		10,026
Interest		58
Total investment income		188,095
Expenses:
Management fees		152,678
Transfer agent and administrative fees		50,893
Distribution and service fees:
Advisor Class		8,023
A-Class		3,929
C-Class		25,003
Portfolio accounting fees		20,357
Registration fees		17,268
Custodian fees		2,340
Trustees’ fees*		1,518
Line of credit fees		87
Miscellaneous		5,331
Total expenses		287,427
Net investment loss		(99,332	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(7,362,972	)
Net realized loss		(7,362,972	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,835,714	)
Net change in unrealized appreciation (depreciation)		(3,835,714	)
Net realized and unrealized loss		(11,198,686	)
Net decrease in net assets resulting from operations	$	(11,298,018	)

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(99,332	)	$	(100,247	)
Net realized loss on investments		(7,362,972	)		(4,218,185	)
Net change in unrealized appreciation (depreciation) on investments		(3,835,714	)		(12,927,536	)
Net decrease in net assets resulting from operations		(11,298,018	)		(17,245,968	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(942,983	)
Advisor Class		—			(77,995	)
A-Class		—			(81,766	)
C-Class		—			(226,581	)
Total distributions to shareholders		—			(1,329,325	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		98,619,969			228,681,951
Advisor Class		160,837,958			81,461,920
A-Class		30,776,149			34,559,485
C-Class		6,214,415			19,812,912
Distributions reinvested
Investor Class		—			884,145
Advisor Class		—			77,943
A-Class		—			67,165
C-Class		—			219,239
Cost of shares redeemed
Investor Class		(95,413,968	)		(228,926,568	)
Advisor Class		(165,201,581	)		(76,224,107	)
A-Class		(32,312,964	)		(33,136,533	)
C-Class		(6,551,934	)		(20,795,740	)
Net increase (decrease) from capital share transactions		(3,031,956	)		6,681,812
Net decrease in net assets		(14,329,974	)		(11,893,481	)
Net assets:
Beginning of period		49,445,770			61,339,251
End of period	$	35,115,796		$	49,445,770
Accumulated net investment loss at end of period	$	(348,914	)	$	(249,582	)
Capital share activity:
Shares sold
Investor Class		4,411,558			7,016,300
Advisor Class		7,711,583			2,837,152
A-Class		1,400,033			1,168,449
C-Class		316,026			697,217
Shares issued from reinvestment of distributions
Investor Class		—			30,498
Advisor Class		—			2,851
A-Class		—			2,392
C-Class		—			8,684
Shares redeemed
Investor Class		(4,228,414	)		(7,028,380	)
Advisor Class		(7,900,860	)		(2,602,821	)
A-Class		(1,449,422	)		(1,118,576	)
C-Class		(337,522	)		(743,130	)
Net increase (decrease) in shares		(77,018	)		270,636

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	25.11		$	35.78		$	51.65		$	65.73		$	86.74		$	61.73
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		.01			.36			.34			(.02	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(6.65	)		(9.88	)		(16.06	)		(12.12	)		(20.70	)		25.32
Total from investment operations		(6.69	)		(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	$	18.42		$	25.11		$	35.78		$	51.65		$	65.73		$	86.74
Total Returnc		(26.64	%)		(27.88	%)		(30.37	%)		(18.60	%)		(23.91	%)		40.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,769		$	30,528		$	42,846		$	71,386		$	79,637		$	141,798
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		0.04	%		0.96	%		0.55	%		(0.03	%)		(0.37	%)
Total expensesd		1.23	%		1.25	%		1.27	%		1.25	%		1.26	%		1.28	%
Portfolio turnover rate		566	%		371	%		348	%		206	%		235	%		322	%

Advisor Class	Period Ended September 30, 2015a			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	$	23.64		$	33.92		$	49.20		$	63.02		$	83.59		$	59.79
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.14	)		.12			(.02	)		(.44	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		(6.29	)		(9.34	)		(15.23	)		(11.50	)		(19.84	)		24.44
Total from investment operations		(6.34	)		(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	$	17.30		$	23.64		$	33.92		$	49.20		$	63.02		$	83.59
Total Returnc		(26.82	%)		(28.24	%)		(30.71	%)		(18.99	%)		(24.29	%)		39.87	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,873		$	8,400		$	4,009		$	3,148		$	9,610		$	30,418
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.45	%)		0.34	%		(0.04	%)		(0.59	%)		(0.86	%)
Total expensesd		1.63	%		1.75	%		1.77	%		1.75	%		1.76	%		1.78	%
Portfolio turnover rate		566	%		371	%		348	%		206	%		235	%		322	%

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	24.28		$	34.75		$	50.28		$	64.21		$	84.97		$	60.63
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.10	)		.16			.21			(.22	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		(6.43	)		(9.57	)		(15.52	)		(11.84	)		(20.25	)		24.82
Total from investment operations		(6.49	)		(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	$	17.79		$	24.28		$	34.75		$	50.28		$	64.21		$	84.97
Total Returnc		(26.73	%)		(28.13	%)		(30.52	%)		(18.80	%)		(24.13	%)		40.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,731		$	4,928		$	5,235		$	5,988		$	6,412		$	14,919
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.29	%)		0.45	%		0.35	%		(0.30	%)		(0.63	%)
Total expensesd		1.48	%		1.50	%		1.52	%		1.50	%		1.51	%		1.53	%
Portfolio turnover rate		566	%		371	%		348	%		206	%		235	%		322	%

C-Class	Period Ended September 30, 2015a			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	$	21.67		$	31.34		$	45.72		$	59.02		$	78.70		$	56.58
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.29	)		(.07	)		(.23	)		(.72	)		(.94	)
Net gain (loss) on investments (realized and unrealized)		(5.70	)		(8.58	)		(14.14	)		(10.77	)		(18.67	)		23.09
Total from investment operations		(5.84	)		(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	$	15.83		$	21.67		$	31.34		$	45.72		$	59.02		$	78.70
Total Returnc		(26.95	%)		(28.64	%)		(31.05	%)		(19.39	%)		(24.68	%)		39.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,743		$	5,590		$	9,250		$	18,608		$	26,533		$	39,650
Ratios to average net assets:
Net investment income (loss)		(1.35	%)		(0.99	%)		(0.22	%)		(0.42	%)		(1.04	%)		(1.37	%)
Total expensesd		2.23	%		2.25	%		2.27	%		2.25	%		2.26	%		2.28	%
Portfolio turnover rate		566	%		371	%		348	%		206	%		235	%		322	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 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”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Simon Property Group, Inc.	2.3%
Public Storage	1.8%
American Tower Corp. — Class A	1.8%
Equity Residential	1.6%
Crown Castle International Corp.	1.5%
Welltower, Inc.	1.5%
AvalonBay Communities, Inc.	1.5%
General Growth Properties, Inc.	1.4%
Prologis, Inc.	1.4%
Ventas, Inc.	1.3%
Top Ten Total	16.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 97

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.7%
REITs - 92.3%
Specialized Reits - 22.1%
Public Storage		1,378	$	291,625
Welltower, Inc.		3,499		236,951
Ventas, Inc.		3,689		206,804
HCP, Inc.		5,227		194,706
Host Hotels & Resorts, Inc.		9,846		155,665
Extra Space Storage, Inc.		1,949		150,385
Omega Healthcare Investors, Inc.		3,524		123,869
Plum Creek Timber Company, Inc.		3,070		121,296
CubeSmart		3,854		104,867
Senior Housing Properties Trust		5,806		94,057
Strategic Hotels & Resorts, Inc.*		6,687		92,214
Hospitality Properties Trust		3,563		91,142
Sovran Self Storage, Inc.		935		88,171
Healthcare Trust of America, Inc. — Class A		3,457		84,731
EPR Properties		1,597		82,357
RLJ Lodging Trust		3,195		80,738
LaSalle Hotel Properties		2,826		80,230
Care Capital Properties, Inc.		2,423		79,789
Healthcare Realty Trust, Inc.		3,108		77,234
Rayonier, Inc.		3,493		77,091
Medical Properties Trust, Inc.		6,959		76,967
Outfront Media, Inc.		3,622		75,338
Sunstone Hotel Investors, Inc.		5,672		75,041
Pebblebrook Hotel Trust		2,070		73,382
National Health Investors, Inc.		1,210		69,563
DiamondRock Hospitality Co.		6,153		67,991
LTC Properties, Inc.		1,415		60,378
Sabra Health Care REIT, Inc.		2,469		57,231
Chesapeake Lodging Trust		2,154		56,133
Physicians Realty Trust		3,302		49,827
Potlatch Corp.		1,709		49,202
Hersha Hospitality Trust		2,113		47,881
Summit Hotel Properties, Inc.		4,009		46,785
InfraREIT, Inc.		1,920		45,466
FelCor Lodging Trust, Inc.		6,180		43,693
Chatham Lodging Trust		1,953		41,950
Ashford Hospitality Trust, Inc.		5,350		32,635
Total Specialized REITs				3,483,385
Retail Reits - 16.3%
Simon Property Group, Inc.		1,943		356,969
General Growth Properties, Inc.		8,817		228,977
Macerich Co.		2,320		178,222
Realty Income Corp.		3,369		159,657
Kimco Realty Corp.		6,252		152,736
Federal Realty Investment Trust		1,070		146,002
Brixmor Property Group, Inc.		5,312		124,726
Regency Centers Corp.		1,863		115,785
DDR Corp.		7,201		110,751
National Retail Properties, Inc.		2,890		104,820
Taubman Centers, Inc.		1,423		98,301
Weingarten Realty Investors		2,940		97,343
Retail Properties of America, Inc. — Class A		6,126		86,315
Equity One, Inc.		3,484		84,801
Tanger Factory Outlet Centers, Inc.		2,546		83,942
Acadia Realty Trust		2,446		73,551
CBL & Associates Properties, Inc.		5,096		70,070
Urban Edge Properties		3,222		69,563
WP GLIMCHER, Inc.		5,875		68,503
Kite Realty Group Trust		2,772		66,001
Pennsylvania Real Estate Investment Trust		2,802		55,564
Ramco-Gershenson Properties Trust		3,370		50,584
Total Retail REITs				2,583,183
Office Reits - 13.2%
Boston Properties, Inc.		1,696		200,806
SL Green Realty Corp.		1,441		155,859
Digital Realty Trust, Inc.		2,178		142,267
Duke Realty Corp.		6,406		122,034
Kilroy Realty Corp.		1,749		113,965
Alexandria Real Estate Equities, Inc.		1,344		113,796
BioMed Realty Trust, Inc.		4,851		96,923
Douglas Emmett, Inc.		3,323		95,437
Highwoods Properties, Inc.		2,337		90,559
Equity Commonwealth*		3,276		89,238
Columbia Property Trust, Inc.		3,502		81,246
Piedmont Office Realty Trust, Inc. — Class A		4,386		78,466
Hudson Pacific Properties, Inc.		2,609		75,113
Brandywine Realty Trust		5,737		70,680
CyrusOne, Inc.		2,070		67,606
Corporate Office Properties Trust		3,129		65,803
QTS Realty Trust, Inc. — Class A		1,500		65,535
Lexington Realty Trust		7,998		64,784
Parkway Properties, Inc.		3,992		62,116
New York REIT, Inc.		6,039		60,752
Mack-Cali Realty Corp.		3,191		60,246
CoreSite Realty Corp.		1,080		55,555
Government Properties Income Trust		3,137		50,192
Total Office REITs				2,078,978
Residential Reits - 11.7%
Equity Residential		3,360		252,404
AvalonBay Communities, Inc.		1,327		231,986
Essex Property Trust, Inc.		819		182,981
UDR, Inc.		4,197		144,713
Camden Property Trust		1,638		121,048
Mid-America Apartment Communities, Inc.		1,449		118,630
Apartment Investment & Management Co. — Class A		3,121		115,539
Equity LifeStyle Properties, Inc.		1,822		106,715
Home Properties, Inc.		1,327		99,193
American Campus Communities, Inc.		2,701		97,884
Sun Communities, Inc.		1,351		91,544
American Homes 4 Rent — Class A		5,429		87,298

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
REAL ESTATE FUND

	Shares		Value
Post Properties, Inc.		1,459	$	85,045
Education Realty Trust, Inc.		1,916		63,132
Starwood Waypoint Residential Trust		1,929		45,968
Total Residential REITs				1,844,080
Mortgage Reits - 8.5%
Annaly Capital Management, Inc.		14,477		142,889
American Capital Agency Corp.		6,432		120,278
Starwood Property Trust, Inc.		5,015		102,908
NorthStar Realty Finance Corp.		7,562		93,391
Two Harbors Investment Corp.		9,419		83,076
New Residential Investment Corp.		5,990		78,469
Chimera Investment Corp.		5,730		76,610
MFA Financial, Inc.		10,919		74,358
Blackstone Mortgage Trust, Inc. — Class A		2,708		74,308
Colony Capital, Inc. — Class A		3,420		66,895
Invesco Mortgage Capital, Inc.		4,586		56,133
Hatteras Financial Corp.		3,689		55,888
PennyMac Mortgage Investment Trust		3,288		50,865
Redwood Trust, Inc.		3,660		50,654
CYS Investments, Inc.		6,765		49,114
iStar, Inc.*		3,731		46,936
Capstead Mortgage Corp.		4,580		45,296
New Senior Investment Group, Inc.		4,040		42,258
Western Asset Mortgage Capital Corp.		2,719		34,287
Total Mortgage REITs				1,344,613
Diversifed Reits - 8.0%
Vornado Realty Trust		2,152		194,585
VEREIT, Inc.		15,801		121,984
WP Carey, Inc.		2,008		116,082
Liberty Property Trust		3,283		103,447
Spirit Realty Capital, Inc.		10,300		94,142
STORE Capital Corp.		3,640		75,202
PS Business Parks, Inc.		890		70,648
Empire State Realty Trust, Inc. — Class A		3,885		66,162
Cousins Properties, Inc.		7,116		65,610
American Assets Trust, Inc.		1,601		65,417
Select Income REIT		3,260		61,973
Washington Real Estate Investment Trust		2,480		61,826
Retail Opportunity Investments Corp.		3,647		60,321
Chambers Street Properties		8,858		57,488
Gramercy Property Trust, Inc.		2,430		50,471
Total Diversifed REITs				1,265,358
Industrial Reits - 3.5%
Prologis, Inc.		5,608		218,151
DCT Industrial Trust, Inc.		2,433		81,895
First Industrial Realty Trust, Inc.		3,493		73,178
EastGroup Properties, Inc.		1,160		62,849
DuPont Fabros Technology, Inc.		2,356		60,973
STAG Industrial, Inc.		2,980		54,266
Total Industrial REITs				551,312
Wireless Telecommunication Services - 3.3%
American Tower Corp. — Class A		3,232		284,352
Crown Castle International Corp.		3,104		244,812
Total Wireless Telecommunication Services				529,164
Forest Products - 1.1%
Weyerhaeuser Co.		6,273		171,504
Security & Alarm Services - 1.0%
Corrections Corporation of America		2,911		85,991
GEO Group, Inc.		2,307		68,610
Total Security & Alarm Services				154,601
Diversified Support Services - 0.8%
Iron Mountain, Inc.		4,025		124,856
Advertising - 0.7%
Lamar Advertising Co. — Class A		1,991		103,890
Internet Software & Services - 0.6%
Equinix, Inc.		330		90,222
Real Estate Investment Trusts - 0.6%
Paramount Group, Inc.		5,335		89,628
Hotels, Resorts & Cruise Lines - 0.5%
Ryman Hospitality Properties, Inc.		1,447		71,236
Integrated Telecommunication Services - 0.4%
Communications Sales & Leasing, Inc.		3,958		70,848
Total REITs				14,556,858
Real Estate - 6.5%
Real Estate Services - 2.8%
CBRE Group, Inc. — Class A*		4,730		151,360
Jones Lang LaSalle, Inc.		813		116,885
Realogy Holdings Corp.*		2,844		107,020
Kennedy-Wilson Holdings, Inc.		3,206		71,077
Total Real Estate Services				446,342
Real Estate Operating Companies - 1.2%
Forest City Enterprises, Inc. — Class A*		5,311		106,910
Altisource Residential Corp.		5,838		81,265
Total Real Estate Operating Companies				188,175
Diversified Real Estate Activities - 1.1%
Brookfield Asset Management, Inc. — Class A		3,655		114,913
St. Joe Co.*		3,415		65,329
Total Diversified Real Estate Activities				180,242
Real Estate Development - 0.6%
Howard Hughes Corp.*		846		97,070

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
REAL ESTATE FUND

	Shares		Value
Real Estate Management & Development - 0.4%
Xenia Hotels & Resorts, Inc.		3,551	$	62,000
Marine - 0.4%
Alexander & Baldwin, Inc.		1,760		60,421
Total Real Estate				1,034,250
Entertainment - 0.5%
Casinos & Gaming - 0.5%
Gaming and Leisure Properties, Inc.		2,873		85,328
Diversified Financial Services - 0.5%
Real Estate Services - 0.5%
Altisource Portfolio Solutions S.A.*		3,348		79,816
Total Common Stocks
(Cost $12,905,838)				15,756,252

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.0%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	3,147		3,147
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		760		760
Total Repurchase Agreements
(Cost $3,907)				3,907
Total Investments - 99.8%
(Cost $12,909,745)			$	15,760,159
Other Assets & Liabilities, net - 0.2%				36,169
Total Net Assets - 100.0%			$	15,796,328

*	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.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $12,905,838)	$	15,756,252
Repurchase agreements, at value (cost $3,907)		3,907
Total investments (cost $12,909,745)		15,760,159
Cash		295
Receivables:
Securities sold		1,180,126
Fund shares sold		139,691
Dividends		96,318
Total assets		17,176,589
Liabilities:
Payable for:
Fund shares redeemed		1,363,680
Management fees		7,827
Distribution and service fees		3,385
Transfer agent and administrative fees		2,302
Portfolio accounting fees		921
Miscellaneous		2,146
Total liabilities		1,380,261
Commitments and contingent liabilities (Note 9)		—
Net assets	$	15,796,328
Net assets consist of:
Paid in capital	$	29,270,181
Undistributed net investment income		482,629
Accumulated net realized loss on investments		(16,806,896	)
Net unrealized appreciation on investments		2,850,414
Net assets	$	15,796,328
A-Class:
Net assets	$	6,005,696
Capital shares outstanding		175,855
Net asset value per share	$	34.15
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.85
C-Class:
Net assets	$	1,538,102
Capital shares outstanding		49,816
Net asset value per share	$	30.88
H-Class:
Net assets	$	8,252,530
Capital shares outstanding		242,278
Net asset value per share	$	34.06

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $298)	$	317,182
Income from securities lending, net		7,004
Interest		15
Total investment income		324,201
Expenses:
Management fees		89,256
Transfer agent and administrative fees		26,251
Distribution and service fees:
A-Class		4,923
C-Class		12,653
H-Class		18,166
Portfolio accounting fees		10,500
Registration fees		13,420
Tax expense		10,798
Custodian fees		1,192
Trustees’ fees*		1,159
Line of credit fees		190
Miscellaneous		(2,544	)
Total expenses		185,964
Net investment income		138,237
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,435,282
Net realized gain		1,435,282
Net change in unrealized appreciation (depreciation) on:
Investments		(5,572,095	)
Net change in unrealized appreciation (depreciation)		(5,572,095	)
Net realized and unrealized loss		(4,136,813	)
Net decrease in net assets resulting from operations	$	(3,998,576	)

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

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

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	138,237		$	544,927
Net realized gain (loss) on investments		1,435,282			(1,017,396	)
Net change in unrealized appreciation (depreciation) on investments		(5,572,095	)		4,374,041
Net increase (decrease) in net assets resulting from operations		(3,998,576	)		3,901,572
Distributions to shareholders from:
Net investment income
A-Class		—			(70,427	)
C-Class		—			(29,231	)
H-Class		—			(291,502	)
Total distributions to shareholders		—			(391,160	)
Capital share transactions:
Proceeds from sale of shares
A-Class		22,600,478			33,310,377
C-Class		11,378,222			30,598,523
H-Class		110,207,849			323,711,905
Distributions reinvested
A-Class		—			55,690
C-Class		—			28,740
H-Class		—			288,471
Cost of shares redeemed
A-Class		(22,073,244	)		(32,058,111	)
C-Class		(12,442,710	)		(30,472,287	)
H-Class		(136,767,121	)		(308,456,378	)
Net increase (decrease) from capital share transactions		(27,096,526	)		17,006,930
Net increase (decrease) in net assets		(31,095,102	)		20,517,342
Net assets:
Beginning of period		46,891,430			26,374,088
End of period	$	15,796,328		$	46,891,430
Undistributed net investment income at end of period	$	482,629		$	344,392
Capital share activity:
Shares sold
A-Class		624,813			907,893
C-Class		348,746			928,450
H-Class		3,047,671			8,887,538
Shares issued from reinvestment of distributions
A-Class		—			1,534
C-Class		—			870
H-Class		—			7,964
Shares redeemed
A-Class		(614,043	)		(867,549	)
C-Class		(383,322	)		(926,436	)
H-Class		(3,789,011	)		(8,503,320	)
Net increase (decrease) in shares		(765,146	)		436,944

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	38.34		$	33.47		$	34.43		$	30.27		$	29.06		$	24.24
Income (loss) from investment operations:
Net investment income (loss)b		.36			.42			.65			.58			.45			.27
Net gain (loss) on investments (realized and unrealized)		(4.55	)		4.77			(.14	)		4.18			1.07			5.17
Total from investment operations		(4.19	)		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	$	34.15		$	38.34		$	33.47		$	34.43		$	30.27		$	29.06
Total Returnc		(10.93	%)		15.58	%		1.86	%		16.03	%		5.42	%		22.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,006		$	6,329		$	4,124		$	12,495		$	2,364		$	3,991
Ratios to average net assets:
Net investment income (loss)		1.98	%		1.13	%		1.92	%		1.82	%		1.59	%		1.07	%
Total expenses		1.67	%		1.60	%		1.65	%		1.61	%		1.61	%		1.63	%
Portfolio turnover rate		464	%		599	%		788	%		699	%		974	%		485	%

C-Class	Period Ended September 30, 2015a			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	$	34.81		$	30.64		$	31.89		$	28.29		$	27.41		$	23.11
Income (loss) from investment operations:
Net investment income (loss)b		.17			.23			.29			.27			.22			.10
Net gain (loss) on investments (realized and unrealized)		(4.10	)		4.26			(.07	)		3.93			.97			4.82
Total from investment operations		(3.93	)		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	$	30.88		$	34.81		$	30.64		$	31.89		$	28.29		$	27.41
Total Returnc		(11.29	%)		14.73	%		1.09	%		15.12	%		4.57	%		21.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,538		$	2,937		$	2,497		$	2,910		$	1,798		$	2,356
Ratios to average net assets:
Net investment income (loss)		1.02	%		0.70	%		0.93	%		0.92	%		0.83	%		0.42	%
Total expenses		2.38	%		2.35	%		2.38	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		464	%		599	%		788	%		699	%		974	%		485	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	38.25		$	33.40		$	34.38		$	30.23		$	29.02		$	24.22
Income (loss) from investment operations:
Net investment income (loss)b		.22			.48			.52			.46			.42			.29
Net gain (loss) on investments (realized and unrealized)		(4.41	)		4.69			(.03	)		4.29			1.10			5.13
Total from investment operations		(4.19	)		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	$	34.06		$	38.25		$	33.40		$	34.38		$	30.23		$	29.02
Total Returnc		(10.95	%)		15.55	%		1.84	%		15.95	%		5.42	%		22.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,253		$	37,625		$	19,753		$	10,273		$	13,511		$	22,045
Ratios to average net assets:
Net investment income (loss)		1.19	%		1.32	%		1.52	%		1.45	%		1.48	%		1.13	%
Total expenses		1.69	%		1.60	%		1.64	%		1.60	%		1.61	%		1.63	%
Portfolio turnover rate		464	%		599	%		788	%		699	%		974	%		485	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
Amazon.com, Inc.	5.3%
Wal-Mart Stores, Inc.	4.8%
Home Depot, Inc.	4.0%
CVS Health Corp.	3.4%
Walgreens Boots Alliance, Inc.	3.1%
Costco Wholesale Corp.	2.7%
Priceline Group, Inc.	2.7%
Lowe’s Companies, Inc.	2.6%
Target Corp.	2.4%
TJX Companies, Inc.	2.3%
Top Ten Total	33.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 105

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 100.1%
Retail - 75.0%
Wal-Mart Stores, Inc.		34,759	$	2,253,774
Home Depot, Inc.		16,235		1,874,980
CVS Health Corp.		16,408		1,583,043
Walgreens Boots Alliance, Inc.		17,166		1,426,495
Costco Wholesale Corp.		8,677		1,254,434
Lowe’s Companies, Inc.		17,907		1,234,150
Target Corp.		13,944		1,096,835
TJX Companies, Inc.		15,142		1,081,441
O’Reilly Automotive, Inc.*		3,193		798,249
L Brands, Inc.		8,777		791,070
AutoZone, Inc.*		1,050		760,022
Dollar General Corp.		10,081		730,268
Ross Stores, Inc.		14,130		684,881
Advance Auto Parts, Inc.		3,256		617,110
Macy’s, Inc.		11,958		613,684
Dollar Tree, Inc.*		9,176		611,672
Nordstrom, Inc.		7,905		566,867
Best Buy Company, Inc.		14,635		543,251
CarMax, Inc.*		9,027		535,482
Tractor Supply Co.		6,302		531,385
Ulta Salon Cosmetics & Fragrance, Inc.*		3,175		518,636
Foot Locker, Inc.		7,017		505,013
The Gap, Inc.		17,593		501,401
Tiffany & Co.		6,395		493,821
Signet Jewelers Ltd.		3,443		468,696
Bed Bath & Beyond, Inc.*		8,208		468,020
Kohl’s Corp.		9,515		440,640
Williams-Sonoma, Inc.		5,532		422,368
Staples, Inc.		33,427		392,099
AutoNation, Inc.*		6,714		390,621
Ascena Retail Group, Inc.*		27,727		385,683
Dick’s Sporting Goods, Inc.		7,447		369,446
Jumei International Holding Ltd. ADR*		34,740		342,884
Rite Aid Corp.*		53,657		325,698
Penske Automotive Group, Inc.		6,700		324,548
Michaels Companies, Inc.*		13,840		319,704
GameStop Corp. — Class A		7,628		314,350
Burlington Stores, Inc.*		5,940		303,178
Restoration Hardware Holdings, Inc.*		3,230		301,391
Urban Outfitters, Inc.*		10,019		294,358
Sally Beauty Holdings, Inc.*		12,046		286,093
Dillard’s, Inc. — Class A		3,269		285,678
GNC Holdings, Inc. — Class A		7,031		284,193
Cabela’s, Inc.*		6,034		275,150
HSN, Inc.		4,797		274,580
Office Depot, Inc.*		42,019		269,762
American Eagle Outfitters, Inc.		17,204		268,899
Express, Inc.*		14,890		266,084
Lithia Motors, Inc. — Class A		2,440		263,788
JC Penney Company, Inc.*		27,247		253,125
Big Lots, Inc.		5,278		252,922
CST Brands, Inc.		7,083		238,414
PriceSmart, Inc.		3,057		236,428
Chico’s FAS, Inc.		14,927		234,802
Asbury Automotive Group, Inc.*		2,880		233,712
Group 1 Automotive, Inc.		2,707		230,501
Sears Holdings Corp.*		10,136		229,074
DSW, Inc. — Class A		8,750		221,463
Men’s Wearhouse, Inc.		5,171		219,871
Five Below, Inc.*		6,500		218,270
Buckle, Inc.		5,636		208,363
Guess?, Inc.		9,493		202,770
Mattress Firm Holding Corp.*		4,530		189,173
Abercrombie & Fitch Co. — Class A		8,746		185,328
Genesco, Inc.*		3,167		180,741
Caleres, Inc.		5,900		180,127
Children’s Place, Inc.		2,951		170,184
Outerwall, Inc.		2,720		154,850
Vitamin Shoppe, Inc.*		4,741		154,746
Barnes & Noble, Inc.		12,055		145,986
Conn’s, Inc.*		5,960		143,278
Hibbett Sports, Inc.*		3,940		137,939
Finish Line, Inc. — Class A		6,726		129,812
Pier 1 Imports, Inc.		14,809		102,182
Lumber Liquidators Holdings, Inc.*		6,440		84,622
Stage Stores, Inc.		8,520		83,837
Total Retail				34,968,395
Internet - 18.4%
Amazon.com, Inc.*		4,792		2,452,978
Priceline Group, Inc.*		1,007		1,245,518
Netflix, Inc.*		9,817		1,013,703
Expedia, Inc.		6,495		764,332
JD.com, Inc. ADR*		26,040		678,602
Vipshop Holdings Ltd. ADR*		28,898		485,486
TripAdvisor, Inc.*		7,156		450,971
Ctrip.com International Ltd. ADR*		7,030		444,155
Wayfair, Inc. — Class A*		7,770		272,416
zulily, Inc. — Class A*		12,956		225,434
Groupon, Inc. — Class A*		61,142		199,323
Shutterfly, Inc.*		4,961		177,356
Lands’ End, Inc.*		5,660		152,877
Total Internet				8,563,151
Distribution & Wholesale - 2.8%
Genuine Parts Co.		6,743		558,928
LKQ Corp.*		15,573		441,650
Pool Corp.		3,920		283,416
Total Distribution & Wholesale				1,283,994
Commercial Services - 1.4%
Aaron’s, Inc.		6,971		251,723
Monro Muffler Brake, Inc.		3,570		241,154

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
RETAILING FUND

	Shares		Value
Rent-A-Center, Inc.		7,129	$	172,878
Total Commercial Services				665,755
Leisure Time - 1.1%
Qunar Cayman Islands Ltd. ADR*		10,740		322,952
Liberty TripAdvisor Holdings, Inc. — Class A*		8,570		189,997
Total Leisure Time				512,949
Oil & Gas - 0.5%
Murphy USA, Inc.*		4,671		256,671
Food - 0.5%
Cia Brasileira de Distribuicao ADR		20,410		255,941
Home Furnishings - 0.4%
Select Comfort Corp.*		7,572		165,675
Total Common Stocks
(Cost $38,125,239)				46,672,531

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	208,431		208,431
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		50,375		50,375
Total Repurchase Agreements
(Cost $258,806)				258,806
Total Investments - 100.7%
(Cost $38,384,045)			$	46,931,337
Other Assets & Liabilities, net - (0.7)%				(305,124	)
Total Net Assets - 100.0%			$	46,626,213

*	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.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $38,125,239)	$	46,672,531
Repurchase agreements, at value (cost $258,806)		258,806
Total investments (cost $38,384,045)		46,931,337
Receivables:
Dividends		21,239
Fund shares sold		10,924
Total assets		46,963,500
Liabilities:
Payable for:
Fund shares redeemed		271,654
Management fees		33,049
Transfer agent and administrative fees		9,720
Distribution and service fees		6,494
Portfolio accounting fees		3,888
Miscellaneous		12,482
Total liabilities		337,287
Commitments and contingent liabilities (Note 9)		—
Net assets	$	46,626,213
Net assets consist of:
Paid in capital	$	46,121,263
Accumulated net investment loss		(98,916	)
Accumulated net realized loss on investments		(7,943,426	)
Net unrealized appreciation on investments		8,547,292
Net assets	$	46,626,213
Investor Class:
Net assets	$	24,185,930
Capital shares outstanding		929,969
Net asset value per share	$	26.01
Advisor Class:
Net assets	$	9,782,190
Capital shares outstanding		404,184
Net asset value per share	$	24.20
A-Class:
Net assets	$	9,807,039
Capital shares outstanding		395,480
Net asset value per share	$	24.80
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.04
C-Class:
Net assets	$	2,851,054
Capital shares outstanding		126,651
Net asset value per share	$	22.51

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $1,206)	$	356,377
Income from securities lending, net		20,836
Interest		78
Total investment income		377,291
Expenses:
Management fees		286,749
Transfer agent and administrative fees		84,338
Distribution and service fees:
Advisor Class		32,030
A-Class		10,451
C-Class		17,333
Portfolio accounting fees		33,735
Custodian fees		3,876
Trustees’ fees*		1,920
Line of credit fees		157
Miscellaneous		37,851
Total expenses		508,440
Net investment loss		(131,149	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,256,620	)
Net realized loss		(1,256,620	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,106,805	)
Net change in unrealized appreciation (depreciation)		(4,106,805	)
Net realized and unrealized loss		(5,363,425	)
Net decrease in net assets resulting from operations	$	(5,494,574	)

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

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

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(131,149	)	$	68,392
Net realized gain (loss) on investments		(1,256,620	)		1,805,839
Net change in unrealized appreciation (depreciation) on investments		(4,106,805	)		5,758,303
Net increase (decrease) in net assets resulting from operations		(5,494,574	)		7,632,534
Capital share transactions:
Proceeds from sale of shares
Investor Class		39,559,126			60,134,467
Advisor Class		66,801,526			46,492,511
A-Class		14,372,545			35,188,984
C-Class		13,424,638			23,269,330
Cost of shares redeemed
Investor Class		(58,243,953	)		(83,827,188	)
Advisor Class		(64,685,051	)		(44,004,920	)
A-Class		(23,432,220	)		(19,080,379	)
C-Class		(13,786,299	)		(22,833,190	)
Net decrease from capital share transactions		(25,989,688	)		(4,660,385	)
Net increase (decrease) in net assets		(31,484,262	)		2,972,149
Net assets:
Beginning of period		78,110,475			75,138,326
End of period	$	46,626,213		$	78,110,475
(Accumulated net investment loss)/Undistributed net investment income at end of period	$	(98,916	)	$	32,233
Capital share activity:
Shares sold
Investor Class		1,419,478			2,329,184
Advisor Class		2,565,060			1,959,097
A-Class		551,320			1,439,831
C-Class		560,865			1,069,690
Shares redeemed
Investor Class		(2,135,077	)		(3,453,617	)
Advisor Class		(2,499,130	)		(1,865,868	)
A-Class		(882,195	)		(804,635	)
C-Class		(575,455	)		(1,049,685	)
Net decrease in shares		(995,134	)		(376,003	)

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	28.13		$	23.54		$	19.62		$	17.45		$	14.66		$	12.75
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.11			—	c		.09			.01			.05
Net gain (loss) on investments (realized and unrealized)		(2.09	)		4.48			3.92			2.08			2.79			1.89
Total from investment operations		(2.12	)		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	$	26.01		$	28.13		$	23.54		$	19.62		$	17.45		$	14.66
Total Returnd		(7.54	%)		19.50	%		19.98	%		12.44	%		19.14	%		15.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,186		$	46,283		$	65,195		$	14,671		$	34,802		$	3,776
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		0.42	%		0.01	%		0.51	%		0.04	%		0.34	%
Total expenses		1.33	%		1.33	%		1.37	%		1.35	%		1.34	%		1.39	%
Portfolio turnover rate		130	%		395	%		671	%		472	%		822	%		1,062	%

Advisor Class	Period Ended September 30, 2015a			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	$	26.22		$	22.00		$	18.45		$	16.45		$	13.91		$	12.14
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		.01			(.14	)		(.01	)		(.09	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(1.94	)		4.21			3.69			2.01			2.64			1.87
Total from investment operations		(2.02	)		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	$	24.20		$	26.22		$	22.00		$	18.45		$	16.45		$	13.91
Total Returnd		(7.70	%)		19.18	%		19.24	%		12.16	%		18.38	%		14.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,782		$	8,871		$	5,391		$	2,454		$	3,979		$	1,583
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		0.05	%		(0.64	%)		(0.05	%)		(0.66	%)		(0.58	%)
Total expenses		1.75	%		1.83	%		1.87	%		1.85	%		1.84	%		1.89	%
Portfolio turnover rate		130	%		395	%		671	%		472	%		822	%		1,062	%

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

RETAILING FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	26.85		$	22.48		$	18.79		$	16.77		$	14.14		$	12.31
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.06			(.09	)		.03			(.03	)		.18
Net gain (loss) on investments (realized and unrealized)		(1.98	)		4.31			3.78			1.99			2.67			1.68
Total from investment operations		(2.05	)		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	$	24.80		$	26.85		$	22.48		$	18.79		$	16.77		$	14.14
Total Returnd		(7.64	%)		19.44	%		19.64	%		12.05	%		18.71	%		15.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,807		$	19,502		$	2,049		$	1,500		$	5,697		$	517
Ratios to average net assets:
Net investment income (loss)		(0.54	%)		0.25	%		(0.42	%)		0.20	%		(0.18	%)		1.42	%
Total expenses		1.58	%		1.58	%		1.62	%		1.59	%		1.58	%		1.64	%
Portfolio turnover rate		130	%		395	%		671	%		472	%		822	%		1,062	%

C-Class	Period Ended September 30, 2015a			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	$	24.46		$	20.64		$	17.40		$	15.62		$	13.27		$	11.65
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.19	)		(.23	)		(.06	)		(.13	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(1.80	)		4.01			3.47			1.84			2.49			1.76
Total from investment operations		(1.95	)		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	$	22.51		$	24.46		$	20.64		$	17.40		$	15.62		$	13.27
Total Returnd		(7.97	%)		18.51	%		18.62	%		11.40	%		17.83	%		14.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,851		$	3,455		$	2,503		$	1,831		$	2,603		$	2,705
Ratios to average net assets:
Net investment income (loss)		(1.22	%)		(0.88	%)		(1.16	%)		(0.39	%)		(0.96	%)		(0.96	%)
Total expenses		2.33	%		2.34	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		130	%		395	%		671	%		472	%		822	%		1,062	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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, PC hardware and peripherals companies (“Technology Companies”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.6%
Google, Inc. — Class A	3.0%
Microsoft Corp.	2.8%
Facebook, Inc. — Class A	2.3%
Visa, Inc. — Class A	1.9%
Oracle Corp.	1.8%
Intel Corp.	1.8%
International Business Machines Corp.	1.7%
Cisco Systems, Inc.	1.7%
MasterCard, Inc. — Class A	1.5%
Top Ten Total	22.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

112 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 100.1%
Software - 22.4%
Microsoft Corp.		8,657	$	383,160
Oracle Corp.		6,855		247,602
salesforce.com, Inc.*		1,954		135,667
Adobe Systems, Inc.*		1,598		131,388
VMware, Inc. — Class A*		1,476		116,294
Intuit, Inc.		1,136		100,820
Activision Blizzard, Inc.		3,123		96,470
Electronic Arts, Inc.*		1,351		91,530
Fiserv, Inc.*		1,056		91,459
Fidelity National Information Services, Inc.		1,294		86,802
CyberArk Software Ltd.*		1,730		86,742
Paychex, Inc.		1,803		85,877
Check Point Software Technologies Ltd.*		1,080		85,676
NetEase, Inc. ADR		700		84,084
SAP SE ADR		1,168		75,674
Red Hat, Inc.*		1,047		75,258
Workday, Inc. — Class A*		1,050		72,303
CA, Inc.		2,552		69,670
Akamai Technologies, Inc.*		1,005		69,406
Citrix Systems, Inc.*		951		65,885
ServiceNow, Inc.*		940		65,283
Autodesk, Inc.*		1,417		62,546
ANSYS, Inc.*		640		56,410
CDK Global, Inc.		1,134		54,183
Broadridge Financial Solutions, Inc.		930		51,476
Solera Holdings, Inc.		950		51,300
NetSuite, Inc.*		600		50,340
Tyler Technologies, Inc.*		310		46,286
Tableau Software, Inc. — Class A*		580		46,272
Ultimate Software Group, Inc.*		252		45,111
Nuance Communications, Inc.*		2,700		44,199
Dealertrack Technologies, Inc.*		610		38,528
PTC, Inc.*		1,183		37,548
Qlik Technologies, Inc.*		980		35,721
Aspen Technology, Inc.*		930		35,256
Rackspace Hosting, Inc.*		1,393		34,379
SolarWinds, Inc.*		870		34,139
Take-Two Interactive Software, Inc.*		1,100		31,603
CommVault Systems, Inc.*		730		24,791
Total Software				3,097,138
Semiconductors - 18.8%
Intel Corp.		8,165		246,093
QUALCOMM, Inc.		3,438		184,724
Texas Instruments, Inc.		2,956		146,381
Avago Technologies Ltd.		952		119,010
Broadcom Corp. — Class A		2,183		112,272
Taiwan Semiconductor Manufacturing Company Ltd. ADR		4,890		101,468
NXP Semiconductor N.V.*		1,159		100,914
Analog Devices, Inc.		1,500		84,615
Applied Materials, Inc.		5,527		81,192
Marvell Technology Group Ltd.		8,877		80,337
Altera Corp.		1,580		79,126
Skyworks Solutions, Inc.		929		78,231
Micron Technology, Inc.*		5,184		77,656
ARM Holdings plc ADR		1,790		77,418
NVIDIA Corp.		3,115		76,785
ASML Holding N.V. — Class G		868		76,367
Freescale Semiconductor Ltd.*		1,850		67,673
Xilinx, Inc.		1,575		66,780
Linear Technology Corp.		1,566		63,188
Maxim Integrated Products, Inc.		1,866		62,324
Microchip Technology, Inc.		1,421		61,231
Lam Research Corp.		934		61,018
KLA-Tencor Corp.		1,108		55,400
Qorvo, Inc.*		1,107		49,870
IPG Photonics Corp.*		520		39,504
ON Semiconductor Corp.*		4,099		38,531
Teradyne, Inc.		2,120		38,181
Atmel Corp.		4,632		37,380
Synaptics, Inc.*		448		36,942
Cavium, Inc.*		590		36,208
Integrated Device Technology, Inc.*		1,756		35,647
Cypress Semiconductor Corp.*		3,835		32,674
Cree, Inc.*		1,265		30,651
Cirrus Logic, Inc.*		940		29,619
Ambarella, Inc.*		440		25,428
Total Semiconductors				2,590,838
Internet - 17.8%
Google, Inc. — Class A*		651		415,578
Facebook, Inc. — Class A*		3,540		318,247
Alibaba Group Holding Ltd. ADR*		2,500		147,425
Baidu, Inc. ADR*		886		121,745
eBay, Inc.*		4,304		105,190
Yahoo!, Inc.*		3,520		101,763
LinkedIn Corp. — Class A*		525		99,818
SouFun Holdings Ltd. ADR		13,210		87,187
Qihoo 360 Technology Company Ltd. ADR*		1,790		85,615
Twitter, Inc.*		3,160		85,130
Bitauto Holdings Ltd. ADR*		2,790		83,058
SINA Corp.*		1,931		77,472
Symantec Corp.		3,778		73,558
YY, Inc. ADR*		1,341		73,138
MercadoLibre, Inc.		707		64,379
F5 Networks, Inc.*		498		57,668
VeriSign, Inc.*		813		57,365
CDW Corp.		1,300		53,118
Splunk, Inc.*		950		52,583
Zillow Group, Inc. — Class A*		1,610		46,255
IAC/InterActiveCorp		700		45,689
Pandora Media, Inc.*		2,124		45,326
FireEye, Inc.*		1,340		42,639
58.com, Inc. ADR*		880		41,404

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
TECHNOLOGY FUND

	Shares		Value
HomeAway, Inc.*		1,150	$	30,521
GrubHub, Inc.*		1,170		28,478
Yelp, Inc. — Class A*		1,110		24,043
Total Internet				2,464,392
Computers - 17.2%
Apple, Inc.		4,522		498,777
International Business Machines Corp.		1,658		240,361
EMC Corp.		5,655		136,625
Hewlett-Packard Co.		5,015		128,434
Cognizant Technology Solutions Corp. — Class A*		1,990		124,594
Accenture plc — Class A		1,147		112,704
Infosys Ltd. ADR		4,625		88,291
Western Digital Corp.		1,090		86,590
Seagate Technology plc		1,583		70,918
SanDisk Corp.		1,237		67,206
BlackBerry Ltd.*		9,880		60,564
Amdocs Ltd.		1,050		59,724
Computer Sciences Corp.		956		58,679
NetApp, Inc.		1,950		57,720
Synopsys, Inc.*		1,160		53,569
Fortinet, Inc.*		1,257		53,397
Cadence Design Systems, Inc.*		2,394		49,508
Jack Henry & Associates, Inc.		690		48,031
Manhattan Associates, Inc.*		700		43,610
Brocade Communications Systems, Inc.		4,038		41,914
Teradata Corp.*		1,395		40,399
DST Systems, Inc.		380		39,953
MAXIMUS, Inc.		650		38,714
NetScout Systems, Inc.*		1,040		36,785
NCR Corp.*		1,600		36,400
VeriFone Systems, Inc.*		1,290		35,772
Lexmark International, Inc. — Class A		910		26,372
Stratasys Ltd.*		850		22,516
3D Systems Corp.*		1,881		21,726
Total Computers				2,379,853
Commercial Services - 7.0%
MasterCard, Inc. — Class A		2,249		202,680
Automatic Data Processing, Inc.		1,553		124,799
PayPal Holdings, Inc.*		3,884		120,559
FleetCor Technologies, Inc.*		510		70,186
Western Union Co.		3,331		61,157
Vantiv, Inc. — Class A*		1,310		58,845
Total System Services, Inc.		1,270		57,696
Global Payments, Inc.		490		56,218
Sabre Corp.		2,010		54,632
Gartner, Inc.*		620		52,037
Booz Allen Hamilton Holding Corp.		1,490		39,053
Cimpress N.V.*		510		38,816
WEX, Inc.*		410		35,604
Total Commercial Services				972,282
Electronics - 5.2%
Corning, Inc.		5,251		89,896
TE Connectivity Ltd.		1,477		88,457
Amphenol Corp. — Class A		1,561		79,549
Fitbit, Inc. — Class A*		1,440		54,274
Avnet, Inc.		1,134		48,400
Flextronics International Ltd.*		4,581		48,284
Arrow Electronics, Inc.*		816		45,108
Keysight Technologies, Inc.*		1,440		44,409
Jabil Circuit, Inc.		1,970		44,069
FLIR Systems, Inc.		1,420		39,746
Trimble Navigation Ltd.*		2,413		39,621
FEI Co.		480		35,059
Tech Data Corp.*		450		30,825
Knowles Corp.*		1,520		28,014
Total Electronics				715,711
Telecommunications - 5.1%
Cisco Systems, Inc.		8,994		236,093
Nokia Oyj ADR		11,515		78,072
Palo Alto Networks, Inc.*		440		75,680
Motorola Solutions, Inc.		1,039		71,047
Juniper Networks, Inc.		2,483		63,837
CommScope Holding Company, Inc.*		1,550		46,547
Arista Networks, Inc.*		670		40,997
ARRIS Group, Inc.*		1,478		38,384
Ciena Corp.*		1,561		32,344
Viavi Solutions, Inc.*		4,199		22,549
Total Telecommunications				705,550
Diversified Financial Services - 2.7%
Visa, Inc. — Class A		3,770		262,618
Alliance Data Systems Corp.*		319		82,615
Ellie Mae, Inc.*		420		27,959
Total Diversified Financial Services				373,192
Energy-Alternate Sources - 0.9%
Canadian Solar, Inc.*		3,910		64,984
First Solar, Inc.*		927		39,629
SunEdison, Inc.*		3,342		23,996
Total Energy-Alternate Sources				128,609
Auto Parts & Equipment - 0.6%
Mobileye N.V.*		1,846		83,956
Office & Business Equipment - 0.5%
Xerox Corp.		6,476		63,011
Aerospace & Defense - 0.5%
Harris Corp.		830		60,715

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
TECHNOLOGY FUND

	Shares		Value
Electrical Components & Equipment - 0.4%
SunPower Corp. — Class A*		1,530	$	30,661
Belden, Inc.		570		26,613
Total Electrical Components & Equipment				57,274
Media - 0.4%
FactSet Research Systems, Inc.		330		52,737
Distribution & Wholesale - 0.3%
Ingram Micro, Inc. — Class A		1,530		41,677
Machinery-Diversified - 0.3%
Zebra Technologies Corp. — Class A*		510		39,041
Total Common Stocks
(Cost $7,357,303)				13,825,976

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.4%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	45,369		45,369
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		10,965		10,965
Total Repurchase Agreements
(Cost $56,334)				56,334
Total Investments - 100.5%
(Cost $7,413,637)			$	13,882,310
Other Assets & Liabilities, net - (0.5)%				(68,483	)
Total Net Assets - 100.0%			$	13,813,827

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $7,357,303)	$	13,825,976
Repurchase agreements, at value (cost $56,334)		56,334
Total investments (cost $7,413,637)		13,882,310
Cash		395
Receivables:
Dividends		6,217
Fund shares sold		4,716
Foreign taxes reclaim		1,098
Securities lending income		12
Total assets		13,894,748
Liabilities:
Payable for:
Fund shares redeemed		57,461
Management fees		10,385
Transfer agent and administrative fees		3,054
Distribution and service fees		2,820
Portfolio accounting fees		1,222
Miscellaneous		5,979
Total liabilities		80,921
Commitments and contingent liabilities (Note 9)		—
Net assets	$	13,813,827
Net assets consist of:
Paid in capital	$	12,357,069
Accumulated net investment loss		(240,494	)
Accumulated net realized loss on investments		(4,771,421	)
Net unrealized appreciation on investments		6,468,673
Net assets	$	13,813,827
Investor Class:
Net assets	$	7,152,558
Capital shares outstanding		126,729
Net asset value per share	$	56.44
Advisor Class:
Net assets	$	2,711,700
Capital shares outstanding		52,126
Net asset value per share	$	52.02
A-Class:
Net assets	$	1,925,861
Capital shares outstanding		36,263
Net asset value per share	$	53.11
Maximum offering price per share (Net asset value divided by 95.25%)	$	55.76
C-Class:
Net assets	$	2,023,708
Capital shares outstanding		41,235
Net asset value per share	$	49.08

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	232,173
Income from securities lending, net		6,985
Interest		33
Total investment income		239,191
Expenses:
Management fees		172,425
Transfer agent and administrative fees		50,713
Distribution and service fees:
Advisor Class		9,849
A-Class		7,129
C-Class		14,110
Portfolio accounting fees		20,285
Custodian fees		2,338
Trustees’ fees*		1,402
Line of credit fees		81
Miscellaneous		22,559
Total expenses		300,891
Net investment loss		(61,700	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,646,046
Net realized gain		2,646,046
Net change in unrealized appreciation (depreciation) on:
Investments		(6,453,391	)
Net change in unrealized appreciation (depreciation)		(6,453,391	)
Net realized and unrealized loss		(3,807,345	)
Net decrease in net assets resulting from operations	$	(3,869,045	)

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

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

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(61,700	)	$	(120,266	)
Net realized gain on investments		2,646,046			848,143
Net change in unrealized appreciation (depreciation) on investments		(6,453,391	)		516,435
Net increase (decrease) in net assets resulting from operations		(3,869,045	)		1,244,312
Capital share transactions:
Proceeds from sale of shares
Investor Class		38,395,365			78,754,571
Advisor Class		31,497,274			30,346,789
A-Class		9,222,561			18,659,402
C-Class		10,964,433			21,038,252
Cost of shares redeemed
Investor Class		(49,042,189	)		(92,812,678	)
Advisor Class		(31,124,371	)		(34,217,663	)
A-Class		(16,776,285	)		(14,187,804	)
C-Class		(11,612,950	)		(21,139,205	)
Net decrease from capital share transactions		(18,476,162	)		(13,558,336	)
Net decrease in net assets		(22,345,207	)		(12,314,024	)
Net assets:
Beginning of period		36,159,034			48,473,058
End of period	$	13,813,827		$	36,159,034
Accumulated net investment loss at end of period	$	(240,494	)	$	(178,794	)
Capital share activity:
Shares sold
Investor Class		612,090			1,362,713
Advisor Class		544,297			573,554
A-Class		156,565			328,301
C-Class		204,458			413,675
Shares redeemed
Investor Class		(819,471	)		(1,616,398	)
Advisor Class		(542,239	)		(656,798	)
A-Class		(292,953	)		(266,905	)
C-Class		(217,616	)		(416,613	)
Net decrease in shares		(354,869	)		(278,471	)

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	61.23		$	55.90		$	43.58		$	42.92		$	41.81		$	36.10
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.10	)		(.09	)		.03			(.03	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		(4.74	)		5.43			12.41			.63			1.14			5.89
Total from investment operations		(4.79	)		5.33			12.32			.66			1.11			5.71
Net asset value, end of period	$	56.44		$	61.23		$	55.90		$	43.58		$	42.92		$	41.81
Total Returnc		(7.82	%)		9.53	%		28.24	%		1.54	%		2.65	%		15.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,153		$	20,458		$	32,858		$	8,325		$	19,985		$	35,408
Ratios to average net assets:
Net investment income (loss)		(0.18	%)		(0.17	%)		(0.18	%)		0.10	%		(0.10	%)		(0.48	%)
Total expenses		1.33	%		1.35	%		1.37	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		193	%		280	%		321	%		324	%		487	%		393	%

Advisor Class	Period Ended September 30, 2015a			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	$	56.54		$	51.87		$	40.65		$	40.22		$	39.39		$	34.18
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.37	)		(.27	)		(.12	)		(.33	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(4.36	)		5.04			11.49			.55			1.16			5.54
Total from investment operations		(4.52	)		4.67			11.22			.43			.83			5.21
Net asset value, end of period	$	52.02		$	56.54		$	51.87		$	40.65		$	40.22		$	39.39
Total Returnc		(7.99	%)		9.00	%		27.60	%		1.04	%		2.13	%		15.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,712		$	2,831		$	6,915		$	1,286		$	2,361		$	6,565
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		(0.69	%)		(0.54	%)		(0.33	%)		(0.87	%)		(0.94	%)
Total expenses		1.76	%		1.85	%		1.87	%		1.85	%		1.85	%		1.88	%
Portfolio turnover rate		193	%		280	%		321	%		324	%		487	%		393	%

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	57.69		$	52.79		$	41.30		$	40.76		$	39.83		$	34.47
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.21	)		(.23	)		(.09	)		(.30	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(4.50	)		5.11			11.72			.63			1.23			5.63
Total from investment operations		(4.58	)		4.90			11.49			.54			.93			5.36
Net asset value, end of period	$	53.11		$	57.69		$	52.79		$	41.30		$	40.76		$	39.83
Total Returnc		(7.94	%)		9.28	%		27.79	%		1.32	%		2.33	%		15.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,926		$	9,960		$	5,873		$	1,998		$	7,367		$	1,725
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.39	%)		(0.47	%)		(0.27	%)		(0.76	%)		(0.73	%)
Total expenses		1.58	%		1.59	%		1.62	%		1.59	%		1.59	%		1.64	%
Portfolio turnover rate		193	%		280	%		321	%		324	%		487	%		393	%

C-Class	Period Ended September 30, 2015a			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	$	53.50		$	49.30		$	38.84		$	38.65		$	38.07		$	33.15
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.58	)		(.50	)		(.33	)		(.51	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		(4.10	)		4.78			10.96			.52			1.09			5.43
Total from investment operations		(4.42	)		4.20			10.46			.19			.58			4.92
Net asset value, end of period	$	49.08		$	53.50		$	49.30		$	38.84		$	38.65		$	38.07
Total Returnc		(8.26	%)		8.52	%		26.90	%		0.54	%		1.50	%		14.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,024		$	2,910		$	2,827		$	1,715		$	2,743		$	2,618
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.13	%)		(1.13	%)		(0.90	%)		(1.45	%)		(1.53	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.36	%		2.39	%
Portfolio turnover rate		193	%		280	%		321	%		324	%		487	%		393	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
AT&T, Inc.	9.2%
Verizon Communications, Inc.	8.4%
Cisco Systems, Inc.	7.5%
QUALCOMM, Inc.	5.9%
T-Mobile US, Inc.	3.6%
Crown Castle International Corp.	3.4%
Level 3 Communications, Inc.	2.6%
CenturyLink, Inc.	2.4%
Palo Alto Networks, Inc.	2.4%
Sprint Corp.	2.4%
Top Ten Total	47.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

120 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Telecommunications - 79.9%
AT&T, Inc.		7,173	$	233,696
Verizon Communications, Inc.		4,939		214,896
Cisco Systems, Inc.		7,310		191,888
T-Mobile US, Inc.*		2,321		92,399
Level 3 Communications, Inc.*		1,505		65,754
CenturyLink, Inc.		2,455		61,670
Palo Alto Networks, Inc.*		356		61,232
Sprint Corp.*		15,704		60,303
Motorola Solutions, Inc.		848		57,986
Juniper Networks, Inc.		2,016		51,831
Vodafone Group plc ADR		1,230		39,040
Zayo Group Holdings, Inc.*		1,535		38,928
Frontier Communications Corp.		7,998		37,991
CommScope Holding Company, Inc.*		1,262		37,898
America Movil SAB de CV — Class L ADR		2,237		37,022
China Mobile Ltd. ADR		597		35,522
Nokia Oyj ADR		5,192		35,202
BCE, Inc.		835		34,202
Arista Networks, Inc.*		541		33,104
EchoStar Corp. — Class A*		755		32,488
Telefonaktiebolaget LM Ericsson ADR		3,240		31,687
Rogers Communications, Inc. — Class B		910		31,377
ARRIS Group, Inc.*		1,200		31,164
SK Telecom Company Ltd. ADR		1,252		30,549
ViaSat, Inc.*		455		29,252
Telefonica Brasil S.A. ADR		3,126		28,540
Telefonica S.A. ADR		2,365		28,475
Ubiquiti Networks, Inc.		828		28,061
Sierra Wireless, Inc.*		1,325		28,037
Infinera Corp.*		1,374		26,875
Tim Participacoes S.A. ADR		2,842		26,857
Ciena Corp.*		1,272		26,355
Telephone & Data Systems, Inc.		1,054		26,308
VimpelCom Ltd. ADR		6,283		25,855
InterDigital, Inc.		450		22,770
Plantronics, Inc.		427		21,713
Polycom, Inc.*		1,861		19,503
Viavi Solutions, Inc.*		3,409		18,306
Ruckus Wireless, Inc.*		1,422		16,893
Finisar Corp.*		1,489		16,573
Consolidated Communications Holdings, Inc.		835		16,090
NETGEAR, Inc.*		546		15,927
ADTRAN, Inc.		950		13,870
Windstream Holdings, Inc.		2,044		12,550
Iridium Communications, Inc.*		1,888		11,611
Total Telecommunications				2,038,250
Semiconductors - 5.9%
QUALCOMM, Inc.		2,795		150,175
Computers - 3.6%
Brocade Communications Systems, Inc.		3,280		34,046
BlackBerry Ltd.*		4,137		25,360
Lumentum Holdings, Inc.*		987		16,730
NetScout Systems, Inc.*		424		14,997
Total Computers				91,133
REITs - 3.3%
Crown Castle International Corp.		1,084		85,495
Internet - 2.6%
F5 Networks, Inc.*		404		46,783
Cogent Communications Holdings, Inc.		683		18,550
Total Internet				65,333
Engineering & Construction - 2.3%
SBA Communications Corp. — Class A*		558		58,445
Aerospace & Defense - 1.9%
Harris Corp.		675		49,376
Total Common Stocks
(Cost $1,866,656)				2,538,207
RIGHTS††† - 0.0%
Leap Wireless International, Inc.
Expires 02/17/16		1,848		—
Total Rights
(Cost $4,327)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
TELECOMMUNICATIONS FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	4,127	$	4,127
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		997		997
Total Repurchase Agreements
(Cost $5,124)				5,124
Total Investments - 99.7%
(Cost $1,876,107)			$	2,543,331
Other Assets & Liabilities, net - 0.3%				7,446
Total Net Assets - 100.0%			$	2,550,777

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $1,870,983)	$	2,538,207
Repurchase agreements, at value (cost $5,124)		5,124
Total investments (cost $1,876,107)		2,543,331
Cash		4,353
Receivables:
Dividends		11,887
Fund shares sold		1,953
Foreign taxes reclaim		893
Securities lending income		1
Total assets		2,562,418
Liabilities:
Payable for:
Management fees		5,690
Transfer agent and administrative fees		1,673
Fund shares redeemed		1,482
Portfolio accounting fees		669
Distribution and service fees		633
Miscellaneous		1,494
Total liabilities		11,641
Commitments and contingent liabilities (Note 9)		—
Net assets	$	2,550,777
Net assets consist of:
Paid in capital	$	7,591,425
Undistributed net investment income		178,906
Accumulated net realized loss on investments		(5,886,778	)
Net unrealized appreciation on investments		667,224
Net assets	$	2,550,777
Investor Class:
Net assets	$	675,734
Capital shares outstanding		16,428
Net asset value per share	$	41.13
Advisor Class:
Net assets	$	1,225,448
Capital shares outstanding		32,737
Net asset value per share	$	37.43
A-Class:
Net assets	$	369,952
Capital shares outstanding		9,639
Net asset value per share	$	38.38
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.29
C-Class:
Net assets	$	279,643
Capital shares outstanding		7,918
Net asset value per share	$	35.32

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $6,246)	$	194,823
Income from securities lending, net		1,557
Interest		9
Total investment income		196,389
Expenses:
Management fees		58,936
Transfer agent and administrative fees		17,334
Distribution and service fees:
Advisor Class		1,162
A-Class		2,137
C-Class		2,787
Portfolio accounting fees		6,934
Custodian fees		800
Trustees’ fees*		327
Line of credit fees		65
Miscellaneous		7,749
Total expenses		98,231
Net investment income		98,158
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(910,096	)
Net realized loss		(910,096	)
Net change in unrealized appreciation (depreciation) on:
Investments		(258,658	)
Net change in unrealized appreciation (depreciation)		(258,658	)
Net realized and unrealized loss		(1,168,754	)
Net decrease in net assets resulting from operations	$	(1,070,596	)

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

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

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	98,158		$	80,748
Net realized gain (loss) on investments		(910,096	)		204,448
Net change in unrealized appreciation (depreciation) on investments		(258,658	)		(310,801	)
Net decrease in net assets resulting from operations		(1,070,596	)		(25,605	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(45,635	)
Advisor Class		—			(14,600	)
A-Class		—			(16,000	)
C-Class		—			(21,884	)
Total distributions to shareholders		—			(98,119	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		50,353,878			18,075,159
Advisor Class		7,840,884			12,552,746
A-Class		8,025,648			4,615,685
C-Class		2,347,297			24,640,143
Distributions reinvested
Investor Class		—			44,841
Advisor Class		—			14,600
A-Class		—			16,000
C-Class		—			19,446
Cost of shares redeemed
Investor Class		(50,082,343	)		(19,374,802	)
Advisor Class		(7,863,880	)		(12,596,170	)
A-Class		(8,198,279	)		(6,763,959	)
C-Class		(1,222,841	)		(24,414,344	)
Net increase (decrease) from capital share transactions		1,200,364			(3,170,655	)
Net increase (decrease) in net assets		129,768			(3,294,379	)
Net assets:
Beginning of period		2,421,009			5,715,388
End of period	$	2,550,777		$	2,421,009
Undistributed net investment income at end of period	$	178,906		$	80,748
Capital share activity:
Shares sold
Investor Class		1,106,256			392,906
Advisor Class		57,937			294,638
A-Class		184,584			105,986
C-Class		205,190			611,975
Shares issued from reinvestment of distributions
Investor Class		—			971
Advisor Class		—			346
A-Class		—			370
C-Class		—			486
Shares redeemed
Investor Class		(1,118,722	)		(419,860	)
Advisor Class		(28,832	)		(298,908	)
A-Class		(185,607	)		(157,255	)
C-Class		(209,954	)		(606,562	)
Net increase (decrease) in shares		10,852			(74,907	)

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

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	45.56		$	45.51		$	40.76		$	41.52		$	47.13		$	41.18
Income (loss) from investment operations:
Net investment income (loss)b		.33			.72			1.06			.81			1.23			.30
Net gain (loss) on investments (realized and unrealized)		(4.76	)		.63			4.26			(.67	)		(5.52	)		5.89
Total from investment operations		(4.43	)		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	$	41.13		$	45.56		$	45.51		$	40.76		$	41.52		$	47.13
Total Returnc		(9.72	%)		2.93	%		13.12	%		0.50	%		(8.77	%)		15.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	676		$	1,316		$	2,497		$	2,970		$	7,028		$	48,089
Ratios to average net assets:
Net investment income (loss)		1.45	%		1.55	%		2.47	%		2.06	%		2.86	%		0.73	%
Total expenses		1.33	%		1.36	%		1.38	%		1.35	%		1.36	%		1.39	%
Portfolio turnover rate		466	%		804	%		1,271	%		1,550	%		793	%		1,008	%

Advisor Class	Period Ended September 30, 2015a			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	$	41.59		$	41.86		$	37.75		$	38.69		$	44.21		$	38.82
Income (loss) from investment operations:
Net investment income (loss)b		.17			.60			.29			.57			.66			.09
Net gain (loss) on investments (realized and unrealized)		(4.33	)		.43			4.39			(.61	)		(4.86	)		5.54
Total from investment operations		(4.16	)		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	$	37.43		$	41.59		$	41.86		$	37.75		$	38.69		$	44.21
Total Returnc		(10.00	%)		2.42	%		12.53	%		(0.01	%)		(9.15	%)		14.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,225		$	151		$	316		$	133		$	200		$	695
Ratios to average net assets:
Net investment income (loss)		0.84	%		1.40	%		0.74	%		1.59	%		1.65	%		0.25	%
Total expenses		1.74	%		1.86	%		1.88	%		1.86	%		1.85	%		1.88	%
Portfolio turnover rate		466	%		804	%		1,271	%		1,550	%		793	%		1,008	%

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TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	42.63		$	42.74		$	38.44		$	39.27		$	44.72		$	39.21
Income (loss) from investment operations:
Net investment income (loss)b		.37			.58			.72			.72			.54			.42
Net gain (loss) on investments (realized and unrealized)		(4.62	)		.61			4.15			(.65	)		(4.67	)		5.33
Total from investment operations		(4.25	)		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	$	38.38		$	42.63		$	42.74		$	38.44		$	39.27		$	44.72
Total Returnc		(9.97	%)		2.75	%		12.80	%		0.30	%		(8.91	%)		14.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	370		$	454		$	2,631		$	553		$	1,566		$	699
Ratios to average net assets:
Net investment income (loss)		1.71	%		1.35	%		1.79	%		1.98	%		1.41	%		1.01	%
Total expenses		1.57	%		1.60	%		1.63	%		1.61	%		1.60	%		1.64	%
Portfolio turnover rate		466	%		804	%		1,271	%		1,550	%		793	%		1,008	%

C-Class	Period Ended September 30, 2015a			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	$	39.35		$	39.89		$	36.00		$	37.04		$	42.57		$	37.49
Income (loss) from investment operations:
Net investment income (loss)b		.08			.06			.54			.48			.15			(.03	)
Net gain (loss) on investments (realized and unrealized)		(4.11	)		.70			3.92			(.62	)		(4.36	)		5.35
Total from investment operations		(4.03	)		.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	$	35.32		$	39.35		$	39.89		$	36.00		$	37.04		$	42.57
Total Returnc		(10.24	%)		1.86	%		12.49	%		(0.24	%)		(9.52	%)		14.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	280		$	499		$	271		$	784		$	672		$	2,896
Ratios to average net assets:
Net investment income (loss)		0.41	%		0.14	%		1.42	%		1.41	%		0.39	%		(0.07	%)
Total expenses		2.33	%		2.35	%		2.38	%		2.36	%		2.36	%		2.39	%
Portfolio turnover rate		466	%		804	%		1,271	%		1,550	%		793	%		1,008	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
United Parcel Service, Inc. — Class B	5.0%
Union Pacific Corp.	4.6%
Ford Motor Co.	3.7%
General Motors Co.	3.6%
FedEx Corp.	3.4%
Delta Air Lines, Inc.	3.1%
Tesla Motors, Inc.	3.0%
Johnson Controls, Inc.	2.7%
Southwest Airlines Co.	2.6%
CSX Corp.	2.6%
Top Ten Total	34.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 127

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Transportation - 40.1%
United Parcel Service, Inc. — Class B		13,013	$	1,284,254
Union Pacific Corp.		13,337		1,179,124
FedEx Corp.		6,047		870,647
CSX Corp.		25,096		675,082
Norfolk Southern Corp.		8,276		632,286
Kansas City Southern		4,729		429,772
CH Robinson Worldwide, Inc.		6,172		418,338
Canadian Pacific Railway Ltd.		2,838		407,452
Expeditors International of Washington, Inc.		8,500		399,925
J.B. Hunt Transport Services, Inc.		5,270		376,277
Canadian National Railway Co.		6,120		347,371
Old Dominion Freight Line, Inc.*		4,941		301,401
Ryder System, Inc.		3,524		260,917
Kirby Corp.*		3,859		239,065
Genesee & Wyoming, Inc. — Class A*		3,876		228,994
Con-way, Inc.		4,757		225,720
Landstar System, Inc.		3,498		222,018
Matson, Inc.		4,700		180,903
XPO Logistics, Inc.*		7,560		180,155
Knight Transportation, Inc.		7,350		176,400
Heartland Express, Inc.		8,830		176,070
Werner Enterprises, Inc.		6,907		173,366
Swift Transportation Co. — Class A*		11,490		172,580
Hub Group, Inc. — Class A*		4,266		155,325
Atlas Air Worldwide Holdings, Inc.*		3,520		121,651
Saia, Inc.*		3,670		113,587
ArcBest Corp.		4,133		106,507
Echo Global Logistics, Inc.*		5,110		100,156
UTI Worldwide, Inc.*		19,300		88,587
Forward Air Corp.		1,730		71,778
Total Transportation				10,315,708
Airlines - 19.2%
Delta Air Lines, Inc.		17,865		801,602
Southwest Airlines Co.		17,816		677,721
American Airlines Group, Inc.		17,114		664,537
United Continental Holdings, Inc.*		11,080		587,794
Alaska Air Group, Inc.		5,518		438,405
JetBlue Airways Corp.*		14,824		382,014
Allegiant Travel Co. — Class A		1,303		281,774
Copa Holdings S.A. — Class A		6,482		271,790
Ryanair Holdings plc ADR		3,294		257,920
Spirit Airlines, Inc.*		5,280		249,744
Virgin America, Inc.*		4,730		161,908
Hawaiian Holdings, Inc.*		6,410		158,199
Total Airlines				4,933,408
Auto Parts & Equipment - 17.3%
Johnson Controls, Inc.		16,987		702,581
Delphi Automotive plc		6,740		512,510
BorgWarner, Inc.		9,647		401,219
Lear Corp.		3,651		397,156
Goodyear Tire & Rubber Co.		12,536		367,681
Autoliv, Inc.		3,193		348,069
Magna International, Inc.		6,620		317,826
Visteon Corp.*		2,734		276,790
Tenneco, Inc.*		4,763		213,240
Dana Holding Corp.		12,759		202,613
Cooper Tire & Rubber Co.		5,010		197,945
Dorman Products, Inc.*		3,620		184,222
Gentherm, Inc.*		3,757		168,764
American Axle & Manufacturing Holdings, Inc.*		8,200		163,508
Total Auto Parts & Equipment				4,454,124
Auto Manufacturers - 14.5%
Ford Motor Co.		70,876		961,788
General Motors Co.		30,924		928,338
Tesla Motors, Inc.*		3,057		759,359
Tata Motors Ltd. ADR*		13,462		302,895
Toyota Motor Corp. ADR		2,358		276,546
Fiat Chrysler Automobiles N.V.*		20,094		265,442
Honda Motor Company Ltd. ADR		8,120		242,788
Total Auto Manufacturers				3,737,156
Commercial Services - 3.7%
Hertz Global Holdings, Inc.*		21,018		351,632
Macquarie Infrastructure Corp.		4,340		324,024
Avis Budget Group, Inc.*		6,434		281,037
Total Commercial Services				956,693
Leisure Time - 1.8%
Harley-Davidson, Inc.		8,256		453,254
Electronics - 1.1%
Gentex Corp.		18,459		286,115
Home Builders - 0.9%
Thor Industries, Inc.		4,246		219,943
Trucking & Leasing - 0.8%
AMERCO		520		204,604
Total Common Stocks
(Cost $15,877,936)				25,561,005

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
TRANSPORTATION FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.8%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	158,746	$	158,746
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		38,367		38,367
Total Repurchase Agreements
(Cost $197,113)				197,113
Total Investments - 100.2%
(Cost $16,075,049)			$	25,758,118
Other Assets & Liabilities, net - (0.2)%				(60,229	)
Total Net Assets - 100.0%			$	25,697,889

*	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.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $15,877,936)	$	25,561,005
Repurchase agreements, at value (cost $197,113)		197,113
Total investments (cost $16,075,049)		25,758,118
Cash		1,146
Receivables:
Fund shares sold		183,926
Dividends		7,488
Total assets		25,950,678
Liabilities:
Payable for:
Securities purchased		208,869
Management fees		18,364
Fund shares redeemed		8,218
Transfer agent and administrative fees		5,401
Distribution and service fees		3,838
Portfolio accounting fees		2,160
Miscellaneous		5,939
Total liabilities		252,789
Commitments and contingent liabilities (Note 9)		—
Net assets	$	25,697,889
Net assets consist of:
Paid in capital	$	25,532,432
Undistributed net investment income		109,497
Accumulated net realized loss on investments		(9,627,109	)
Net unrealized appreciation on investments		9,683,069
Net assets	$	25,697,889
Investor Class:
Net assets	$	15,635,823
Capital shares outstanding		347,544
Net asset value per share	$	44.99
Advisor Class:
Net assets	$	1,144,284
Capital shares outstanding		28,153
Net asset value per share	$	40.65
A-Class:
Net assets	$	6,154,683
Capital shares outstanding		147,280
Net asset value per share	$	41.79
Maximum offering price per share (Net asset value divided by 95.25%)	$	43.87
C-Class:
Net assets	$	2,763,099
Capital shares outstanding		70,418
Net asset value per share	$	39.24

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,281)	$	292,215
Income from securities lending, net		3,708
Interest		29
Total investment income		295,952
Expenses:
Management fees		178,071
Transfer agent and administrative fees		52,374
Distribution and service fees:
Advisor Class		7,372
A-Class		11,075
C-Class		21,792
Portfolio accounting fees		20,949
Registration fees		26,253
Custodian fees		2,391
Trustees’ fees*		2,165
Line of credit fees		340
Miscellaneous		(3,988	)
Total expenses		318,794
Net investment loss		(22,842	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		11,573,304
Net realized gain		11,573,304
Net change in unrealized appreciation (depreciation) on:
Investments		(18,490,228	)
Net change in unrealized appreciation (depreciation)		(18,490,228	)
Net realized and unrealized loss		(6,916,924	)
Net decrease in net assets resulting from operations	$	(6,939,766	)

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(22,842	)	$	185,996
Net realized gain on investments		11,573,304			618,158
Net change in unrealized appreciation (depreciation) on investments		(18,490,228	)		8,404,635
Net increase (decrease) in net assets resulting from operations		(6,939,766	)		9,208,789
Capital share transactions:
Proceeds from sale of shares
Investor Class		35,100,425			225,561,497
Advisor Class		11,210,149			41,190,056
A-Class		4,970,118			41,341,080
C-Class		7,609,867			28,834,797
Cost of shares redeemed
Investor Class		(57,837,396	)		(232,830,435	)
Advisor Class		(15,893,885	)		(37,870,325	)
A-Class		(12,825,447	)		(40,894,730	)
C-Class		(10,656,469	)		(26,857,147	)
Net decrease from capital share transactions		(38,322,638	)		(1,525,207	)
Net increase (decrease) in net assets		(45,262,404	)		7,683,582
Net assets:
Beginning of period		70,960,293			63,276,711
End of period	$	25,697,889		$	70,960,293
Undistributed net investment income at end of period	$	109,497		$	132,339
Capital share activity:
Shares sold
Investor Class		711,224			4,633,899
Advisor Class		240,072			922,719
A-Class		110,214			919,079
C-Class		176,397			671,966
Shares redeemed
Investor Class		(1,188,697	)		(4,795,289	)
Advisor Class		(344,528	)		(853,724	)
A-Class		(280,190	)		(912,772	)
C-Class		(246,347	)		(626,094	)
Net decrease in shares		(821,855	)		(40,216	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 131

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	52.06		$	44.63		$	32.07		$	26.96		$	27.85		$	23.79
Income (loss) from investment operations:
Net investment income (loss)b		.03			.18			(.04	)		(.07	)		(.06	)		—	c
Net gain (loss) on investments (realized and unrealized)		(7.10	)		7.25			12.60			5.18			(.83	)		4.06
Total from investment operations		(7.07	)		7.43			12.56			5.11			(.89	)		4.06
Net asset value, end of period	$	44.99		$	52.06		$	44.63		$	32.07		$	26.96		$	27.85
Total Returnd		(13.58	%)		16.65	%		39.16	%		18.95	%		(3.20	%)		17.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,636		$	42,947		$	44		$	78,644		$	8,031		$	5,320
Ratios to average net assets:
Net investment income (loss)		0.10	%		0.37	%		(0.09	%)		(0.25	%)		(0.22	%)		0.02	%
Total expenses		1.33	%		1.35	%		1.37	%		1.37	%		1.35	%		1.38	%
Portfolio turnover rate		90	%		247	%		593	%		737	%		1,082	%		1,217	%

Advisor Class	Period Ended September 30, 2015a			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	$	47.12		$	40.61		$	29.32		$	24.76		$	25.70		$	22.05
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.10	)		(.18	)		(.15	)		(.14	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		(6.39	)		6.61			11.47			4.71			(.80	)		3.82
Total from investment operations		(6.47	)		6.51			11.29			4.56			(.94	)		3.65
Net asset value, end of period	$	40.65		$	47.12		$	40.61		$	29.32		$	24.76		$	25.70
Total Returnd		(13.73	%)		16.03	%		38.51	%		18.42	%		(3.66	%)		16.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,144		$	6,249		$	2,583		$	4,483		$	2,355		$	2,902
Ratios to average net assets:
Net investment income (loss)		(0.36	%)		(0.22	%)		(0.50	%)		(0.57	%)		(0.55	%)		(0.74	%)
Total expenses		1.77	%		1.85	%		1.87	%		1.86	%		1.86	%		1.89	%
Portfolio turnover rate		90	%		247	%		593	%		737	%		1,082	%		1,217	%

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	48.41		$	41.61		$	29.96		$	25.25		$	26.15		$	22.37
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		.05			(.11	)		(.01	)		(.12	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		(6.57	)		6.75			11.76			4.72			(.78	)		3.88
Total from investment operations		(6.62	)		6.80			11.65			4.71			(.90	)		3.78
Net asset value, end of period	$	41.79		$	48.41		$	41.61		$	29.96		$	25.25		$	26.15
Total Returnd		(13.67	%)		16.34	%		38.89	%		18.70	%		(3.48	%)		16.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,155		$	15,359		$	12,938		$	4,558		$	1,600		$	1,239
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		0.12	%		(0.28	%)		(0.05	%)		(0.51	%)		(0.42	%)
Total expenses		1.58	%		1.60	%		1.62	%		1.60	%		1.61	%		1.64	%
Portfolio turnover rate		90	%		247	%		593	%		737	%		1,082	%		1,217	%

C-Class	Period Ended September 30, 2015a			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	$	45.63		$	39.52		$	28.67		$	24.34		$	25.38		$	21.87
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.27	)		(.37	)		(.26	)		(.29	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(6.19	)		6.38			11.22			4.59			(.75	)		3.75
Total from investment operations		(6.39	)		6.11			10.85			4.33			(1.04	)		3.51
Net asset value, end of period	$	39.24		$	45.63		$	39.52		$	28.67		$	24.34		$	25.38
Total Returnd		(14.00	%)		15.46	%		37.84	%		17.79	%		(4.10	%)		16.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,763		$	6,405		$	3,734		$	2,727		$	2,729		$	2,069
Ratios to average net assets:
Net investment income (loss)		(0.93	%)		(0.62	%)		(1.07	%)		(1.06	%)		(1.24	%)		(1.04	%)
Total expenses		2.33	%		2.35	%		2.37	%		2.35	%		2.35	%		2.39	%
Portfolio turnover rate		90	%		247	%		593	%		737	%		1,082	%		1,217	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2015

UTILITIES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Duke Energy Corp.	3.6%
NextEra Energy, Inc.	3.4%
Dominion Resources, Inc.	3.3%
Southern Co.	3.3%
American Electric Power Company, Inc.	2.7%
PG&E Corp.	2.7%
Sempra Energy	2.6%
Exelon Corp.	2.5%
PPL Corp.	2.5%
Public Service Enterprise Group, Inc.	2.4%
Top Ten Total	29.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

134 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Electric - 74.5%
Duke Energy Corp.		18,578	$	1,336,502
NextEra Energy, Inc.		12,771		1,245,812
Dominion Resources, Inc.		17,308		1,218,137
Southern Co.		27,131		1,212,756
American Electric Power Company, Inc.		17,596		1,000,509
PG&E Corp.		18,541		978,965
Exelon Corp.		30,870		916,839
PPL Corp.		27,686		910,592
Public Service Enterprise Group, Inc.		20,851		879,078
Edison International		13,758		867,717
Consolidated Edison, Inc.		12,611		843,045
Xcel Energy, Inc.		22,978		813,651
WEC Energy Group, Inc.		15,077		787,321
Eversource Energy		15,413		780,206
DTE Energy Co.		8,922		717,061
FirstEnergy Corp.		21,499		673,134
Entergy Corp.		9,857		641,691
Ameren Corp.		14,537		614,479
CMS Energy Corp.		16,984		599,875
SCANA Corp.		9,760		549,098
Pinnacle West Capital Corp.		7,908		507,219
Alliant Energy Corp.		8,352		488,508
Pepco Holdings, Inc.		19,122		463,135
TECO Energy, Inc.		17,544		460,705
AES Corp.		46,108		451,397
Westar Energy, Inc.		11,531		443,252
ITC Holdings Corp.		12,995		433,253
OGE Energy Corp.		15,812		432,616
Calpine Corp.*		28,143		410,888
Great Plains Energy, Inc.		14,502		391,844
NRG Energy, Inc.		24,744		367,448
Portland General Electric Co.		9,405		347,703
IDACORP, Inc.		5,362		346,975
MDU Resources Group, Inc.		19,547		336,208
Cleco Corp.		6,265		333,549
Hawaiian Electric Industries, Inc.		11,471		329,103
UIL Holdings Corp.		6,354		319,416
NorthWestern Corp.		5,700		306,831
ALLETE, Inc.		5,909		298,345
Abengoa Yield plc		18,022		298,264
Korea Electric Power Corp. ADR		14,392		294,892
PNM Resources, Inc.		10,377		291,075
Avista Corp.		8,352		277,704
Dynegy, Inc.*		13,170		272,224
Black Hills Corp.		6,354		262,674
El Paso Electric Co.		6,342		233,512
Talen Energy Corp.*		18,544		187,294
NRG Yield, Inc. — Class C		15,000		174,150
Total Electric				27,346,652
Gas - 18.8%
Sempra Energy		9,703		938,475
CenterPoint Energy, Inc.		28,596		515,872
AGL Resources, Inc.		8,300		506,632
NiSource, Inc.		25,189		467,256
Atmos Energy Corp.		7,963		463,287
UGI Corp.		13,231		460,703
National Fuel Gas Co.		7,350		367,353
Vectren Corp.		8,477		356,119
National Grid plc ADR		5,043		351,144
Questar Corp.		17,819		345,867
Piedmont Natural Gas Company, Inc.		8,541		342,238
WGL Holdings, Inc.		5,658		326,297
Southwest Gas Corp.		5,450		317,844
New Jersey Resources Corp.		10,415		312,762
Laclede Group, Inc.		5,415		295,280
ONE Gas, Inc.		6,440		291,925
South Jersey Industries, Inc.		10,124		255,631
Total Gas				6,914,685
Water - 4.2%
American Water Works Company, Inc.		10,888		599,711
Aqua America, Inc.		15,441		408,723
Cia de Saneamento Basico do Estado de Sao Paulo ADR		69,964		271,460
American States Water Co.		5,789		239,665
Total Water				1,519,559
Energy-Alternate Sources - 1.1%
TerraForm Power, Inc. — Class A		14,687		208,849
Pattern Energy Group, Inc.		10,525		200,922
Total Energy-Alternate Sources				409,771
Pipelines - 1.1%
Columbia Pipeline Group, Inc.		22,001		402,398
Kinder Morgan, Inc.		1		28
Total Pipelines				402,426
Total Common Stocks
(Cost $27,373,217)				36,593,093

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
UTILITIES FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	157,118	$	157,118
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		37,974		37,974
Total Repurchase Agreements
(Cost $195,092)				195,092
Total Investments - 100.2%
(Cost $27,568,309)			$	36,788,185
Other Assets & Liabilities, net - (0.2)%				(63,151	)
Total Net Assets - 100.0%			$	36,725,034

*	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	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $27,373,217)	$	36,593,093
Repurchase agreements, at value (cost $195,092)		195,092
Total investments (cost $27,568,309)		36,788,185
Receivables:
Securities sold		2,259,075
Fund shares sold		1,197,226
Dividends		76,793
Foreign taxes reclaim		427
Total assets		40,321,706
Liabilities:
Payable for:
Fund shares redeemed		3,552,534
Management fees		22,482
Distribution and service fees		7,121
Transfer agent and administrative fees		6,613
Portfolio accounting fees		2,645
Miscellaneous		5,277
Total liabilities		3,596,672
Commitments and contingent liabilities (Note 9)		—
Net assets	$	36,725,034
Net assets consist of:
Paid in capital	$	32,297,094
Undistributed net investment income		455,981
Accumulated net realized loss on investments		(5,247,917	)
Net unrealized appreciation on investments		9,219,876
Net assets	$	36,725,034
Investor Class:
Net assets	$	15,728,666
Capital shares outstanding		449,751
Net asset value per share	$	34.97
Advisor Class:
Net assets	$	10,265,348
Capital shares outstanding		323,582
Net asset value per share	$	31.72
A-Class:
Net assets	$	4,067,320
Capital shares outstanding		124,042
Net asset value per share	$	32.79
Maximum offering price per share (Net asset value divided by 95.25%)	$	34.43
C-Class:
Net assets	$	6,663,700
Capital shares outstanding		230,628
Net asset value per share	$	28.89

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $4,077)	$	829,137
Income from securities lending, net		1,053
Interest		29
Total investment income		830,219
Expenses:
Management fees		202,153
Transfer agent and administrative fees		59,456
Distribution and service fees:
Advisor Class		15,449
A-Class		6,958
C-Class		35,994
Portfolio accounting fees		23,782
Registration fees		28,109
Custodian fees		2,713
Trustees’ fees*		2,409
Line of credit fees		137
Miscellaneous		(2,922	)
Total expenses		374,238
Net investment income		455,981
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,905,608
Net realized gain		1,905,608
Net change in unrealized appreciation (depreciation) on:
Investments		(6,593,701	)
Net change in unrealized appreciation (depreciation)		(6,593,701	)
Net realized and unrealized loss		(4,688,093	)
Net decrease in net assets resulting from operations	$	(4,232,112	)

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

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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	455,981		$	1,972,875
Net realized gain (loss) on investments		1,905,608			(770,439	)
Net change in unrealized appreciation (depreciation) on investments		(6,593,701	)		2,118,506
Net increase (decrease) in net assets resulting from operations		(4,232,112	)		3,320,942
Distributions to shareholders from:
Net investment income
Investor Class		—			(272,237	)
Advisor Class		—			(76,869	)
A-Class		—			(26,090	)
C-Class		—			(39,413	)
Total distributions to shareholders		—			(414,609	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		41,059,224			270,237,495
Advisor Class		105,993,964			237,983,954
A-Class		15,360,488			49,228,912
C-Class		12,063,068			34,705,230
Distributions reinvested
Investor Class		—			144,586
Advisor Class		—			76,768
A-Class		—			22,710
C-Class		—			35,206
Cost of shares redeemed
Investor Class		(78,019,063	)		(313,431,370	)
Advisor Class		(108,413,652	)		(226,632,966	)
A-Class		(20,567,286	)		(51,074,156	)
C-Class		(13,421,077	)		(35,228,923	)
Net decrease from capital share transactions		(45,944,334	)		(33,932,554	)
Net decrease in net assets		(50,176,446	)		(31,026,221	)
Net assets:
Beginning of period		86,901,480			117,927,701
End of period	$	36,725,034		$	86,901,480
Undistributed net investment income at end of period	$	455,981		$	—
Capital share activity:
Shares sold
Investor Class		1,153,547			7,335,372
Advisor Class		3,256,202			7,128,509
A-Class		455,257			1,412,405
C-Class		409,048			1,145,355
Shares issued from reinvestment of distributions
Investor Class		—			3,887
Advisor Class		—			2,266
A-Class		—			650
C-Class		—			1,130
Shares redeemed
Investor Class		(2,195,455	)		(8,665,636	)
Advisor Class		(3,335,607	)		(6,800,787	)
A-Class		(613,106	)		(1,487,751	)
C-Class		(452,610	)		(1,166,095	)
Net decrease in shares		(1,322,724	)		(1,090,695	)

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	36.98		$	34.01		$	32.71		$	29.13		$	27.00		$	24.80
Income (loss) from investment operations:
Net investment income (loss)b		.41			.84			.78			.74			.73			.86
Net gain (loss) on investments (realized and unrealized)		(2.42	)		2.26			1.98			3.96			1.80			2.96
Total from investment operations		(2.01	)		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	$	34.97		$	36.98		$	34.01		$	32.71		$	29.13		$	27.00
Total Returnc		(5.44	%)		9.12	%		8.88	%		16.75	%		9.44	%		15.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,729		$	55,156		$	95,854		$	42,907		$	37,469		$	9,328
Ratios to average net assets:
Net investment income (loss)		2.25	%		2.31	%		2.38	%		2.45	%		2.59	%		3.35	%
Total expenses		1.33	%		1.35	%		1.40	%		1.35	%		1.35	%		1.37	%
Portfolio turnover rate		250	%		384	%		508	%		534	%		549	%		800	%

Advisor Class	Period Ended September 30, 2015a			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	$	33.61		$	31.09		$	30.19		$	27.10		$	25.26		$	23.40
Income (loss) from investment operations:
Net investment income (loss)b		.27			.60			.69			.48			.56			.62
Net gain (loss) on investments (realized and unrealized)		(2.16	)		2.05			1.67			3.73			1.68			2.86
Total from investment operations		(1.89	)		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	$	31.72		$	33.61		$	31.09		$	30.19		$	27.10		$	25.26
Total Returnc		(5.62	%)		8.53	%		8.29	%		16.23	%		8.90	%		15.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,265		$	13,546		$	2,269		$	4,812		$	8,036		$	1,240
Ratios to average net assets:
Net investment income (loss)		1.68	%		1.79	%		2.32	%		1.70	%		2.11	%		2.53	%
Total expenses		1.75	%		1.84	%		1.88	%		1.85	%		1.84	%		1.87	%
Portfolio turnover rate		250	%		384	%		508	%		534	%		549	%		800	%

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2015a			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	$	34.70		$	32.02		$	30.95		$	27.69		$	25.75		$	23.77
Income (loss) from investment operations:
Net investment income (loss)b		.27			.66			.63			.65			.67			.54
Net gain (loss) on investments (realized and unrealized)		(2.18	)		2.15			1.90			3.73			1.67			3.06
Total from investment operations		(1.91	)		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	$	32.79		$	34.70		$	32.02		$	30.95		$	27.69		$	25.75
Total Returnc		(5.50	%)		8.78	%		8.64	%		16.46	%		9.16	%		15.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,067		$	9,782		$	11		$	6,938		$	7,912		$	3,289
Ratios to average net assets:
Net investment income (loss)		1.58	%		1.93	%		2.05	%		2.26	%		2.47	%		2.23	%
Total expenses		1.58	%		1.60	%		1.63	%		1.61	%		1.60	%		1.63	%
Portfolio turnover rate		250	%		384	%		508	%		534	%		549	%		800	%

C-Class	Period Ended September 30, 2015a			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	$	30.70		$	28.55		$	27.96		$	25.31		$	23.76		$	22.21
Income (loss) from investment operations:
Net investment income (loss)b		.17			.36			.34			.42			.42			.39
Net gain (loss) on investments (realized and unrealized)		(1.98	)		1.92			1.71			3.35			1.53			2.78
Total from investment operations		(1.81	)		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	$	28.89		$	30.70		$	28.55		$	27.96		$	25.31		$	23.76
Total Returnc		(5.90	%)		7.99	%		7.83	%		15.58	%		8.28	%		14.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,664		$	8,417		$	8,387		$	7,001		$	6,961		$	4,751
Ratios to average net assets:
Net investment income (loss)		1.16	%		1.18	%		1.22	%		1.62	%		1.70	%		1.72	%
Total expenses		2.33	%		2.35	%		2.38	%		2.36	%		2.35	%		2.38	%
Portfolio turnover rate		250	%		384	%		508	%		534	%		549	%		800	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an 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, P-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. At September 30, 2015, the Trust consisted of fifty-two funds.

This report covers the Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (the “Funds”), each a non-diversified investment company. 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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(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, provided such amounts approximate 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 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).

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.

142 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(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 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 period ended September 30, 2015, GFD retained sales charges of $203,762 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.

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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.

At September 30, 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:

Name	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Banking Fund	$	12,977,908	$	—	$	(295,477	)	$	(295,477	)
Basic Materials Fund		14,239,833		1,474,475		(876,028	)		598,447
Biotechnology Fund		464,730,747		217,704,959		(49,013,263	)		168,691,696
Consumer Products Fund		221,728,646		52,260,973		(6,690,902	)		45,570,071
Electronics Fund		12,228,511		—		(735,360	)		(735,360	)
Energy Fund		27,968,253		1,770,934		(2,441,195	)		(670,261	)
Energy Services Fund		19,028,365		—		(3,230,986	)		(3,230,986	)
Financial Services Fund		44,172,431		1,614,532		(2,434,863	)		(820,331	)
Health Care Fund		91,414,908		39,258,011		(4,663,639	)		34,594,372
Internet Fund		23,481,754		1,338,667		(1,044,303	)		294,364
Leisure Fund		27,036,354		2,687,763		(1,672,933	)		1,014,830
Precious Metals Fund		59,750,620		—		(24,571,624	)		(24,571,624	)
Real Estate Fund		17,000,098		—		(1,239,939	)		(1,239,939	)
Retailing Fund		43,927,544		5,456,816		(2,453,023	)		3,003,793
Technology Fund		9,637,401		4,606,885		(361,976	)		4,244,909
Telecommunications Fund		2,550,040		83,117		(89,826	)		(6,709	)
Transportation Fund		19,027,967		7,358,224		(628,073	)		6,730,151
Utilities Fund		32,367,714		5,248,581		(828,110	)		4,420,471

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.

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

The following table summarizes the inputs used to value the Funds’ investments at September 30, 2015. See the Schedule of Investments for more details on the classification of securities.

	Level 1 Investments In Securities		Level 2 Investments In Securities		Level 3 Investments In Securities		Total
Assets
Banking Fund	$	12,616,866	$	65,565	$	—	$	12,682,431
Basic Materials Fund		14,822,402		15,878		—		14,838,280
Biotechnology Fund		631,978,861		1,443,582		—		633,422,443
Consumer Products Fund		265,215,481		2,083,236		—		267,298,717
Electronics Fund		11,441,156		51,995		—		11,493,151
Energy Fund		27,283,215		14,777		—		27,297,992
Energy Services Fund		15,797,379		—		—		15,797,379
Financial Services Fund		43,099,881		252,219		—		43,352,100
Health Care Fund		125,399,361		609,919		—		126,009,280
Internet Fund		23,627,800		148,318		—		23,776,118
Leisure Fund		27,929,646		121,538		—		28,051,184
Precious Metals Fund		35,018,346		160,650		—		35,178,996
Real Estate Fund		15,756,252		3,907		—		15,760,159
Retailing Fund		46,672,531		258,806		—		46,931,337
Technology Fund		13,825,976		56,334		—		13,882,310
Telecommunications Fund		2,538,207		5,124		—		2,543,331
Transportation Fund		25,561,005		197,113		—		25,758,118
Utilities Fund		36,593,093		195,092		—		36,788,185

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. For the period ended September 30, 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 September 30, 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
0.04%					0.00%
Due 10/01/15	$	7,000,000	$	7,000,008	11/15/40	$	15,120,700	$	7,140,032
UMB Financial Corp.					U.S. Treasury Note
0.04%					2.75%
Due 10/01/15		1,691,822		1,691,824	11/30/16		1,666,000		1,725,715

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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. Securities Transactions

For the period ended September 30, 2015, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, was as follows:

Fund	Purchases		Sales
Banking Fund	$	89,917,402	$	125,384,374
Basic Materials Fund		82,877,086		120,058,286
Biotechnology Fund		365,550,009		316,189,033
Consumer Products Fund		180,370,394		225,497,839
Electronics Fund		145,416,527		155,751,670
Energy Fund		167,043,614		171,303,741
Energy Services Fund		175,302,283		177,432,311
Financial Services Fund		68,244,476		76,818,603
Health Care Fund		339,888,854		451,741,007
Internet Fund		136,893,316		123,744,970
Leisure Fund		89,227,536		125,174,925
Precious Metals Fund		225,825,304		228,845,498
Real Estate Fund		102,128,602		128,872,565
Retailing Fund		90,319,418		116,045,857
Technology Fund		75,358,486		93,768,282
Telecommunications Fund		57,611,205		56,303,221
Transportation Fund		37,198,223		75,614,235
Utilities Fund		127,373,698		172,611,784

7. 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 12, 2016. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2015. On September 30, 2015, the Energy Services Fund borrowed $839,000 under this agreement. The Funds did not have any other borrowings under this agreement at September 30, 2015.

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The average daily balances borrowed for the period ended September 30, 2015, were as follows:

Fund	Average Daily Balance
Banking Fund	$	6,874
Basic Materials Fund		10,986
Biotechnology Fund		1,055,261
Consumer Products Fund		5,979
Electronics Fund		3,088
Energy Fund		13,940
Energy Services Fund		42,791
Financial Services Fund		17,472
Health Care Fund		87,251
Internet Fund		2,488
Leisure Fund		7,154
Precious Metals Fund		13,660
Real Estate Fund		29,850
Retailing Fund		24,711
Technology Fund		11,202
Telecommunications Fund		10,495
Transportation Fund		58,267
Utilities Fund		21,543

8. Portfolio Securities Loaned

During the period ended September 30, 2015, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of September 30, 2015, all Funds had ceased participation in securities.

9. 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”).

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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 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 motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. The Court has not yet issued a decision on the motion to dismiss. 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.

10. Subsequent Event

Conversion of Advisor Class Shares to H-Class Shares

Effective upon the close of business on September 30, 2015, the Funds converted their existing Advisor Class shares to H-Class shares, which effectively reduced the distribution and shareholder services fees paid by the Funds.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

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

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

Sector Classification

Information in the “Schedule of Investments” is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of the Trust, including the Independent Trustees, attended an in-person meeting held on May 18, 2015, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust except for the Dow Jones Industrial Average^® Fund (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 28, 2015 (together, with the May 18 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar

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OTHER INFORMATION (Unaudited)(continued)

funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

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

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies, brokerage practices, and the adequacy of its compliance systems and processes. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board considered information regarding the Advisor’s profit margin as reflected in the Advisor’s profitability analysis, as well as information provided by the Advisor concerning the methodology used to allocate various expenses among the individual Funds in determining the Advisor’s profitability. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among

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OTHER INFORMATION (Unaudited)(concluded)

most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, 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, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

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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 visiting guggenheiminvestments.com or 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).	224	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 from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	133	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	133	None.

152 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 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 Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	133	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	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 SEMI-ANNUAL REPORT | 153

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.

154 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

Opt Out Provisions

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 155

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.

156 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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9.30.2015

Rydex Funds Semi-Annual Report

Domestic Equity Funds	Fixed Income Funds
Nova Fund	Government Long Bond 1.2x Strategy Fund
S&P 500® Fund	Inverse Government Long Bond Strategy Fund
Inverse S&P 500® Strategy Fund	High Yield Strategy Fund
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Inverse High Yield Strategy Fund
Inverse NASDAQ 100® Strategy Fund	Money Market Fund
Mid-Cap 1.5x Strategy Fund	U.S. Government Money Market Fund
Inverse Mid-Cap Strategy Fund
Russell 2000® 1.5x Strategy Fund
Russell 2000® Fund
Inverse Russell 2000® Strategy Fund

RBENF-SEMI-0915x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
NOVA FUND	11
S&P 500® FUND	25
INVERSE S&P 500® STRATEGY FUND	36
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	44
INVERSE NASDAQ 100® STRATEGY FUND	52
MID-CAP 1.5x STRATEGY FUND	60
INVERSE MID-CAP STRATEGY FUND	70
RUSSELL 2000® 1.5x STRATEGY FUND	76
RUSSELL 2000® FUND	102
INVERSE RUSSELL 2000® STRATEGY FUND	128
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	134
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	143
HIGH YIELD STRATEGY FUND	152
INVERSE HIGH YIELD STRATEGY FUND	158
U.S. GOVERNMENT MONEY MARKET FUND	164
NOTES TO FINANCIAL STATEMENTS	170
OTHER INFORMATION	188
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	191
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	194

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2015

Dear Shareholder:

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

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

Sincerely,

Donald C. Cacciapaglia
President
October 31, 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.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2015

At the end of the period, the underlying U.S. economy continued to maintain its strong footing. A market correction that began in August persisted through the end of the period; September and October are historically difficult times for the stock market, and by extension, risk assets of any kind, including credit.

Markets had been performing solidly for most of the period. Growth mid-year bounced back from a weather-induced slowdown in the first quarter, with GDP increasing 3.9% for the second quarter. The labor and housing markets continued to strengthen, and the drop in gas prices was acting as a tax cut, which was expected to increase consumer spending power going into the holiday season. Even though labor markets are moving toward full employment, questions remain about the viability of sustained economic expansion in the U.S. In particular, there is debate about the net effect of declining energy prices and a stronger dollar. These are both positive for the U.S. consumer, but low oil prices hurt the U.S. energy industry and a strong dollar is challenging for U.S. manufacturers. In addition, oil prices and the strong dollar exert a downward pressure on inflation, and a risk of deflation is a negative for the economy.

At the same time, currency devaluation, particularly in Japan and the euro zone, is putting pressure on countries to devalue to improve export competitiveness. Those countries slow to devalue, like China, are feeling economic pressure at home, driving down asset prices, and increasing deflationary pressures, escalating the risk of financial contagion abroad. China may have to devalue the renminbi further due to continued slowing in the economy. Combined with the tepid expansion in both Europe and Japan, the pressure will be for central banks there to increase easing measures.

The U.S. Federal Reserve (the “Fed”) is hard pressed to justify a rate increase based on its self-prescribed metrics, which include rising inflation and an improved employment situation with clearly rising wages. At best, policymakers can argue that the prospects for wage growth and inflation are improving, but clear evidence is lacking.

A preemptive rate increase seems risky and opens the Fed to potential criticism given the fragility in financial markets and the prospect that rising U.S. rates could further strengthen the dollar and also potentially exacerbate foreign economic turbulence. While prices and wages remain tame, the risk of another asset bubble is increasing. The longer policy remains highly accommodative, the greater the likelihood that asset classes including commercial real estate, equities, or certain categories of bonds could become overvalued.

At period end, the risk of financial contagion remained high, which could result in central banks providing additional liquidity or delaying rate increases. Use of the monetary printing press is a handy tool to prop up asset prices and temporarily spur economic growth, which is the main reason a recession does not appear to be on the horizon for either the G-7 nations or China. It’s also worth noting that there has never been a recession in the post-war period without the Fed first raising interest rates, after which it typically takes several years for a recession to be induced.

For the six months ended September 30, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.18%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -8.66%. The return of the MSCI Emerging Markets Index* was -19.28%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a -0.47% return for the period, while the Barclays U.S. Corporate High Yield Index* returned -4.85%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.02% for the six-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 SEMI-ANNUAL REPORT | 3

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

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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar (“USD”)-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 USD-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.

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.

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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2015 and ending September 30, 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 SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.23%	(10.40%)	$ 1,000.00	$ 896.00	$ 5.85
Advisor Class	1.62%	(10.60%)	1,000.00	894.00	7.69
A-Class	1.49%	(10.52%)	1,000.00	894.80	7.08
C-Class	2.24%	(10.85%)	1,000.00	891.50	10.62
H-Class	1.49%	(10.52%)	1,000.00	894.80	7.08
S&P 500® Fund
A-Class	1.54%	(6.93%)	1,000.00	930.70	7.45
C-Class	2.29%	(7.28%)	1,000.00	927.20	11.06
H-Class	1.54%	(6.93%)	1,000.00	930.70	7.45
Inverse S&P 500® Strategy Fund
Investor Class	1.39%	4.80%	1,000.00	1,048.00	7.14
Advisor Class	1.71%	4.59%	1,000.00	1,045.90	8.77
A-Class	1.64%	4.71%	1,000.00	1,047.10	8.42
C-Class	2.39%	4.22%	1,000.00	1,042.20	12.24
H-Class	1.62%	4.71%	1,000.00	1,047.10	8.31
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.39%	(4.34%)	1,000.00	956.60	6.82
C-Class	2.26%	(5.10%)	1,000.00	949.00	11.04
H-Class	1.35%	(2.40%)	1,000.00	976.00	6.69
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.42%	1.18%	1,000.00	1,011.80	7.16
Advisor Class	1.72%	1.13%	1,000.00	1,011.30	8.67
A-Class	1.68%	1.81%	1,000.00	1,018.10	8.50
C-Class	2.42%	0.75%	1,000.00	1,007.50	12.18
H-Class	1.68%	1.06%	1,000.00	1,010.60	8.47
Mid-Cap 1.5x Strategy Fund
A-Class	1.64%	(15.14%)	1,000.00	848.60	7.60
C-Class	2.39%	(15.46%)	1,000.00	845.40	11.06
H-Class	1.64%	(15.14%)	1,000.00	848.60	7.60
Inverse Mid-Cap Strategy Fund
A-Class	1.63%	8.55%	1,000.00	1,085.50	8.52
C-Class	2.39%	8.13%	1,000.00	1,081.30	12.47
H-Class	1.64%	8.53%	1,000.00	1,085.30	8.57
Russell 2000® 1.5x Strategy Fund
A-Class	1.68%	(17.90%)	1,000.00	821.00	7.67
C-Class	2.43%	(18.19%)	1,000.00	818.10	11.08
H-Class	1.68%	(17.90%)	1,000.00	821.00	7.67
Russell 2000® Fund
A-Class	1.57%	(12.45%)	1,000.00	875.50	7.38
C-Class	2.33%	(12.78%)	1,000.00	872.20	10.94
H-Class	1.58%	(12.48%)	1,000.00	875.20	7.43

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Inverse Russell 2000® Strategy Fund
A-Class	1.68%	10.64%	$ 1,000.00	$ 1,106.40	$ 8.87
C-Class	2.43%	10.24%	1,000.00	1,102.40	12.81
H-Class	1.69%	10.61%	1,000.00	1,106.10	8.92
Government Long Bond 1.2x Strategy Fund
Investor Class	0.93%	(7.10%)	1,000.00	929.00	4.50
Advisor Class	1.34%	(7.27%)	1,000.00	927.30	6.47
A-Class	1.18%	(7.20%)	1,000.00	928.00	5.70
C-Class	1.93%	(7.56%)	1,000.00	924.40	9.31
H-Class	1.18%	(7.10%)	1,000.00	929.00	5.71
Inverse Government Long Bond Strategy Fund
Investor Class	3.57%	3.77%	1,000.00	1,037.70	18.24
Advisor Class	3.93%	3.58%	1,000.00	1,035.80	20.06
A-Class	3.82%	3.64%	1,000.00	1,036.40	19.50
C-Class	4.57%	3.25%	1,000.00	1,032.50	23.28
H-Class	3.74%	3.58%	1,000.00	1,035.80	19.09
High Yield Strategy Fund
A-Class	1.52%	(3.19%)	1,000.00	968.10	7.50
C-Class	2.23%	(3.77%)	1,000.00	962.30	10.97
H-Class	1.47%	(3.35%)	1,000.00	966.50	7.25
Inverse High Yield Strategy Fund
A-Class	1.48%	0.52%	1,000.00	1,005.20	7.44
C-Class	2.23%	0.11%	1,000.00	1,001.10	11.19
H-Class	1.48%	0.56%	1,000.00	1,005.60	7.44
U.S. Government Money Market Fund
Money Market Class	0.13%	0.00%	1,000.00	1,000.00	0.65

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.23%	5.00%	$ 1,000.00	$ 1,018.90	$ 6.23
Advisor Class	1.62%	5.00%	1,000.00	1,016.95	8.19
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
S&P 500® Fund
A-Class	1.54%	5.00%	1,000.00	1,017.35	7.79
C-Class	2.29%	5.00%	1,000.00	1,013.59	11.56
H-Class	1.54%	5.00%	1,000.00	1,017.35	7.79
Inverse S&P 500® Strategy Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
Advisor Class	1.71%	5.00%	1,000.00	1,016.50	8.64
A-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
C-Class	2.39%	5.00%	1,000.00	1,013.09	12.06
H-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.39%	5.00%	1,000.00	1,018.10	7.03
C-Class	2.26%	5.00%	1,000.00	1,013.74	11.41
H-Class	1.35%	5.00%	1,000.00	1,018.30	6.83
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.42%	5.00%	1,000.00	1,017.95	7.18
Advisor Class	1.72%	5.00%	1,000.00	1,016.44	8.69
A-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
Mid-Cap 1.5x Strategy Fund
A-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
C-Class	2.39%	5.00%	1,000.00	1,013.09	12.06
H-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
Inverse Mid-Cap Strategy Fund
A-Class	1.63%	5.00%	1,000.00	1,016.90	8.24
C-Class	2.39%	5.00%	1,000.00	1,013.09	12.06
H-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
Russell 2000® 1.5x Strategy Fund
A-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
C-Class	2.43%	5.00%	1,000.00	1,012.89	12.26
H-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
Russell 2000® Fund
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
H-Class	1.58%	5.00%	1,000.00	1,017.15	7.99

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Inverse Russell 2000® Strategy Fund
A-Class	1.68%	5.00%	$ 1,000.00	$ 1,016.65	$ 8.49
C-Class	2.43%	5.00%	1,000.00	1,012.89	12.26
H-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
Government Long Bond 1.2x Strategy Fund
Investor Class	0.93%	5.00%	1,000.00	1,020.41	4.71
Advisor Class	1.34%	5.00%	1,000.00	1,018.35	6.78
A-Class	1.18%	5.00%	1,000.00	1,019.15	5.97
C-Class	1.93%	5.00%	1,000.00	1,015.39	9.75
H-Class	1.18%	5.00%	1,000.00	1,019.15	5.97
Inverse Government Long Bond Strategy Fund
Investor Class	3.57%	5.00%	1,000.00	1,007.17	17.96
Advisor Class	3.93%	5.00%	1,000.00	1,005.36	19.76
A-Class	3.82%	5.00%	1,000.00	1,005.92	19.21
C-Class	4.57%	5.00%	1,000.00	1,002.16	22.94
H-Class	3.74%	5.00%	1,000.00	1,006.32	18.81
High Yield Strategy Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.23%	5.00%	1,000.00	1,013.89	11.26
H-Class	1.47%	5.00%	1,000.00	1,017.70	7.44
Inverse High Yield Strategy Fund
A-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
C-Class	2.23%	5.00%	1,000.00	1,013.89	11.26
H-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
U.S. Government Money Market Fund
Money Market Class	0.13%	5.00%	1,000.00	1,024.42	0.66

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 1.38%, 1.75%, 1.63%, 2.38% and 1.63% for the Investor Class, Advisor Class, A-Class, C-Class and H-Class, respectively. Excludes expenses of the underlying funds in which he Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2015 to September 30, 2015.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 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.

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

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	15.5%
Federal Farm Credit Bank	6.9%
Apple, Inc.	2.5%
Microsoft Corp.	1.4%
Exxon Mobil Corp.	1.2%
Johnson & Johnson	1.0%
General Electric Co.	1.0%
Berkshire Hathaway, Inc. — Class B	1.0%
Wells Fargo & Co.	1.0%
JPMorgan Chase & Co.	0.9%
Top Ten Total	32.4%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
NOVA FUND

	Shares		Value
COMMON STOCKS† - 67.6%
Consumer, Non-cyclical - 16.2%
Johnson & Johnson		8,018	$	748,479
Procter & Gamble Co.		7,854		565,017
Pfizer, Inc.		17,858		560,920
Coca-Cola Co.		11,336		454,799
Gilead Sciences, Inc.		4,250		417,307
Merck & Company, Inc.		8,156		402,825
PepsiCo, Inc.		4,254		401,152
Philip Morris International, Inc.		4,486		355,874
UnitedHealth Group, Inc.		2,761		320,303
Allergan plc*		1,140		309,863
Altria Group, Inc.		5,677		308,829
Amgen, Inc.		2,196		303,751
Bristol-Myers Squibb Co.		4,828		285,818
Medtronic plc		4,095		274,119
AbbVie, Inc.		4,793		260,787
MasterCard, Inc. — Class A		2,890		260,446
Celgene Corp.*		2,289		247,601
Eli Lilly & Co.		2,825		236,424
Biogen, Inc.*		681		198,723
Mondelez International, Inc. — Class A		4,666		195,366
Abbott Laboratories		4,316		173,590
Colgate-Palmolive Co.		2,606		165,377
Express Scripts Holding Co.*		1,957		158,438
Danaher Corp.		1,722		146,732
McKesson Corp.		673		124,525
Kraft Heinz Co.		1,721		121,468
Kimberly-Clark Corp.		1,055		115,037
Aetna, Inc.		1,009		110,395
Automatic Data Processing, Inc.		1,349		108,406
Reynolds American, Inc.		2,400		106,248
Anthem, Inc.		757		105,980
Regeneron Pharmaceuticals, Inc.*		224		104,191
Alexion Pharmaceuticals, Inc.*		655		102,435
Kroger Co.		2,813		101,465
Cigna Corp.		746		100,725
PayPal Holdings, Inc.*		3,211		99,669
General Mills, Inc.		1,734		97,329
Stryker Corp.		916		86,196
Becton Dickinson and Co.		609		80,790
Humana, Inc.		429		76,791
Vertex Pharmaceuticals, Inc.*		708		73,731
Archer-Daniels-Midland Co.		1,763		73,076
Cardinal Health, Inc.		948		72,825
HCA Holdings, Inc.*		926		71,636
McGraw Hill Financial, Inc.		789		68,249
Perrigo Company plc		424		66,682
Boston Scientific Corp.*		3,892		63,868
Sysco Corp.		1,602		62,430
Constellation Brands, Inc. — Class A		498		62,355
Monster Beverage Corp.*		440		59,462
AmerisourceBergen Corp. — Class A		595		56,519
Zoetis, Inc.		1,329		54,728
Estee Lauder Companies, Inc. — Class A		654		52,765
Baxter International, Inc.		1,580		51,903
St. Jude Medical, Inc.		816		51,481
ConAgra Foods, Inc.		1,250		50,638
Moody’s Corp.		505		49,591
Baxalta, Inc.		1,568		49,408
Intuitive Surgical, Inc.*		107		49,175
Kellogg Co.		737		49,047
Mylan N.V.*		1,196		48,151
Zimmer Biomet Holdings, Inc.		495		46,495
Edwards Lifesciences Corp.*		311		44,215
Dr Pepper Snapple Group, Inc.		553		43,715
Clorox Co.		372		42,977
Endo International plc*		603		41,776
Mead Johnson Nutrition Co. — Class A		587		41,325
CR Bard, Inc.		215		40,057
Hershey Co.		423		38,865
Molson Coors Brewing Co. — Class B		458		38,023
Tyson Foods, Inc. — Class A		881		37,971
DaVita HealthCare Partners, Inc.*		493		35,659
JM Smucker Co.		298		33,999
Equifax, Inc.		342		33,236
Universal Health Services, Inc. — Class B		266		33,199
Whole Foods Market, Inc.		1,036		32,789
Henry Schein, Inc.*		241		31,986
Laboratory Corporation of America Holdings*		291		31,565
Brown-Forman Corp. — Class B		307		29,748
Coca-Cola Enterprises, Inc.		610		29,494
H&R Block, Inc.		800		28,960
McCormick & Company, Inc.		336		27,612
Western Union Co.		1,481		27,191
Campbell Soup Co.		522		26,455
Quest Diagnostics, Inc.		416		25,572
Hormel Foods Corp.		390		24,691
Total System Services, Inc.		490		22,261
Cintas Corp.		258		22,124
Mallinckrodt plc*		340		21,740
Varian Medical Systems, Inc.*		286		21,101
DENTSPLY International, Inc.		405		20,481
Robert Half International, Inc.		389		19,901
Keurig Green Mountain, Inc.		348		18,145
United Rentals, Inc.*		276		16,574
Avery Dennison Corp.		265		14,991
ADT Corp.		492		14,711
Quanta Services, Inc.*		591		14,308
Patterson Companies, Inc.		251		10,856
Tenet Healthcare Corp.*		288		10,633
Total Consumer, Non-cyclical				11,727,311
Financial - 11.6%
Berkshire Hathaway, Inc. — Class B*		5,425		707,421
Wells Fargo & Co.		13,526		694,560
JPMorgan Chase & Co.		10,708		652,867

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NOVA FUND

	Shares		Value
Bank of America Corp.		30,313	$	472,277
Citigroup, Inc.		8,715		432,351
Visa, Inc. — Class A		5,650		393,579
American International Group, Inc.		3,747		212,904
Goldman Sachs Group, Inc.		1,166		202,604
U.S. Bancorp		4,793		196,561
American Express Co.		2,464		182,657
Simon Property Group, Inc.		896		164,614
MetLife, Inc.		3,234		152,484
Morgan Stanley		4,412		138,978
PNC Financial Services Group, Inc.		1,487		132,641
Bank of New York Mellon Corp.		3,204		125,438
Capital One Financial Corp.		1,571		113,929
BlackRock, Inc. — Class A		371		110,362
American Tower Corp. — Class A		1,226		107,864
Prudential Financial, Inc.		1,306		99,530
Charles Schwab Corp.		3,467		99,018
ACE Ltd.		938		96,989
CME Group, Inc. — Class A		978		90,699
Public Storage		426		90,153
Travelers Companies, Inc.		901		89,677
Chubb Corp.		657		80,581
BB&T Corp.		2,257		80,349
Marsh & McLennan Companies, Inc.		1,535		80,157
State Street Corp.		1,182		79,442
Equity Residential		1,054		79,176
Crown Castle International Corp.		966		76,188
Intercontinental Exchange, Inc.		320		75,197
Aflac, Inc.		1,247		72,488
Aon plc		811		71,863
Welltower, Inc.		1,019		69,007
Allstate Corp.		1,159		67,500
AvalonBay Communities, Inc.		385		67,306
Discover Financial Services		1,260		65,507
Prologis, Inc.		1,518		59,050
SunTrust Banks, Inc.		1,500		57,360
Ameriprise Financial, Inc.		516		56,311
Hartford Financial Services Group, Inc.		1,201		54,982
Ventas, Inc.		963		53,986
Boston Properties, Inc.		445		52,688
Progressive Corp.		1,697		51,996
T. Rowe Price Group, Inc.		742		51,569
HCP, Inc.		1,339		49,878
M&T Bank Corp.		386		47,073
Vornado Realty Trust		513		46,385
Alliance Data Systems Corp.*		178		46,098
Equinix, Inc.		165		45,111
Fifth Third Bancorp		2,326		43,985
General Growth Properties, Inc.		1,693		43,967
Northern Trust Corp.		634		43,213
Essex Property Trust, Inc.		190		42,450
Franklin Resources, Inc.		1,120		41,731
Weyerhaeuser Co.		1,489		40,709
Invesco Ltd.		1,241		38,756
Principal Financial Group, Inc.		794		37,588
Regions Financial Corp.		3,836		34,562
Lincoln National Corp.		727		34,503
Host Hotels & Resorts, Inc.		2,175		34,387
Realty Income Corp.		680		32,225
XL Group plc — Class A		875		31,780
KeyCorp		2,435		31,679
SL Green Realty Corp.		288		31,150
Loews Corp.		831		30,032
Macerich Co.		390		29,960
Kimco Realty Corp.		1,196		29,218
CBRE Group, Inc. — Class A*		839		26,848
Affiliated Managers Group, Inc.*		157		26,845
Huntington Bancshares, Inc.		2,325		24,645
Cincinnati Financial Corp.		428		23,026
Unum Group		714		22,905
E*TRADE Financial Corp.*		840		22,117
Comerica, Inc.		515		21,167
Plum Creek Timber Company, Inc.		506		19,992
Torchmark Corp.		337		19,007
Nasdaq, Inc.		342		18,239
Iron Mountain, Inc.		556		17,247
Apartment Investment & Management Co. — Class A		453		16,770
Zions Bancorporation		591		16,276
Assurant, Inc.		193		15,249
Hudson City Bancorp, Inc.		1,395		14,187
People’s United Financial, Inc.		898		14,126
Legg Mason, Inc.		318		13,232
Navient Corp.		1,083		12,173
Genworth Financial, Inc. — Class A*		1,440		6,653
Total Financial				8,400,004
Technology - 9.1%
Apple, Inc.		16,513		1,821,383
Microsoft Corp.		23,159		1,025,018
Intel Corp.		13,766		414,907
International Business Machines Corp.		2,609		378,227
Oracle Corp.		9,417		340,142
QUALCOMM, Inc.		4,550		244,472
Accenture plc — Class A		1,807		177,555
Texas Instruments, Inc.		2,972		147,173
EMC Corp.		5,573		134,645
Hewlett-Packard Co.		5,231		133,966
salesforce.com, Inc.*		1,796		124,696
Adobe Systems, Inc.*		1,441		118,479
Cognizant Technology Solutions Corp. — Class A*		1,765		110,507
Avago Technologies Ltd.		752		94,008
Broadcom Corp. — Class A		1,619		83,265
Intuit, Inc.		803		71,266
Electronic Arts, Inc.*		903		61,178
Fiserv, Inc.*		679		58,808

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NOVA FUND

	Shares		Value
Fidelity National Information Services, Inc.		815	$	54,670
Cerner Corp.*		889		53,304
Western Digital Corp.		667		52,986
Analog Devices, Inc.		908		51,220
Applied Materials, Inc.		3,476		51,063
Micron Technology, Inc.*		3,117		46,693
Skyworks Solutions, Inc.		552		46,484
Activision Blizzard, Inc.		1,457		45,007
Paychex, Inc.		931		44,344
Altera Corp.		876		43,870
Seagate Technology plc		875		39,200
Red Hat, Inc.*		531		38,168
NVIDIA Corp.		1,483		36,556
Akamai Technologies, Inc.*		517		35,704
Citrix Systems, Inc.*		465		32,215
SanDisk Corp.		592		32,163
Xilinx, Inc.		749		31,758
Lam Research Corp.		458		29,921
Autodesk, Inc.*		655		28,912
Xerox Corp.		2,909		28,305
Linear Technology Corp.		694		28,003
Microchip Technology, Inc.		611		26,328
NetApp, Inc.		869		25,722
CA, Inc.		907		24,761
Computer Sciences Corp.		401		24,613
KLA-Tencor Corp.		456		22,800
Qorvo, Inc.*		433		19,507
Teradata Corp.*		410		11,874
Pitney Bowes, Inc.		585		11,612
Dun & Bradstreet Corp.		105		11,025
Total Technology				6,568,483
Communications - 8.3%
Facebook, Inc. — Class A*		6,543		588,215
AT&T, Inc.		17,811		580,282
Amazon.com, Inc.*		1,111		568,710
Google, Inc. — Class A*		839		535,592
Google, Inc. — Class C*		856		520,808
Verizon Communications, Inc.		11,773		512,243
Walt Disney Co.		4,496		459,491
Cisco Systems, Inc.		14,727		386,584
Comcast Corp. — Class A		6,124		348,333
Priceline Group, Inc.*		147		181,818
Time Warner, Inc.		2,362		162,388
Time Warner Cable, Inc.		819		146,904
Netflix, Inc.*		1,234		127,423
Twenty-First Century Fox, Inc. — Class A		3,535		95,374
eBay, Inc.*		3,245		79,308
Yahoo!, Inc.*		2,508		72,506
Comcast Corp. — Class A		1,066		61,018
CBS Corp. — Class B		1,287		51,351
Omnicom Group, Inc.		703		46,328
Viacom, Inc. — Class B		1,006		43,409
CenturyLink, Inc.		1,630		40,946
Symantec Corp.		1,981		38,570
Level 3 Communications, Inc.*		835		36,481
Expedia, Inc.		290		34,127
Twenty-First Century Fox, Inc. — Class B		1,249		33,810
Motorola Solutions, Inc.		466		31,865
Juniper Networks, Inc.		1,024		26,327
F5 Networks, Inc.*		206		23,855
Interpublic Group of Companies, Inc.		1,188		22,726
Cablevision Systems Corp. — Class A		644		20,911
TripAdvisor, Inc.*		327		20,608
VeriSign, Inc.*		289		20,392
Discovery Communications, Inc. — Class C*		747		18,145
Frontier Communications Corp.		3,383		16,069
TEGNA, Inc.		656		14,688
News Corp. — Class A		1,103		13,920
Scripps Networks Interactive, Inc. — Class A		273		13,429
Discovery Communications, Inc. — Class A*		432		11,245
Total Communications				6,006,199
Consumer, Cyclical - 7.3%
Home Depot, Inc.		3,718		429,392
CVS Health Corp.		3,227		311,341
Wal-Mart Stores, Inc.		4,569		296,254
McDonald’s Corp.		2,727		268,691
Starbucks Corp.		4,298		244,298
NIKE, Inc. — Class B		1,963		241,390
Walgreens Boots Alliance, Inc.		2,530		210,243
Lowe’s Companies, Inc.		2,679		184,637
Costco Wholesale Corp.		1,273		184,038
Ford Motor Co.		11,284		153,124
Target Corp.		1,820		143,161
TJX Companies, Inc.		1,953		139,482
General Motors Co.		4,174		125,303
Delta Air Lines, Inc.		2,303		103,336
Yum! Brands, Inc.		1,249		99,858
Johnson Controls, Inc.		1,894		78,336
American Airlines Group, Inc.		1,945		75,524
Southwest Airlines Co.		1,909		72,618
O’Reilly Automotive, Inc.*		288		72,000
VF Corp.		986		67,255
L Brands, Inc.		744		67,057
Carnival Corp.		1,340		66,598
Chipotle Mexican Grill, Inc. — Class A*		90		64,823
AutoZone, Inc.*		89		64,421
Delphi Automotive plc		823		62,581
Dollar General Corp.		853		61,791
Ross Stores, Inc.		1,198		58,067
United Continental Holdings, Inc.*		1,094		58,037
PACCAR, Inc.		1,028		53,631
Under Armour, Inc. — Class A*		521		50,422
Macy’s, Inc.		958		49,164
Dollar Tree, Inc.*		680		45,329
Royal Caribbean Cruises Ltd.		497		44,278
Advance Auto Parts, Inc.		212		40,180

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NOVA FUND

	Shares		Value
Marriott International, Inc. — Class A		577	$	39,351
WW Grainger, Inc.		176		37,842
Genuine Parts Co.		439		36,389
CarMax, Inc.*		602		35,711
Hanesbrands, Inc.		1,165		33,715
Mohawk Industries, Inc.*		184		33,449
Whirlpool Corp.		227		33,428
Tractor Supply Co.		393		33,137
Best Buy Company, Inc.		889		33,000
Starwood Hotels & Resorts Worldwide, Inc.		493		32,775
Harley-Davidson, Inc.		596		32,720
Signet Jewelers Ltd.		230		31,310
Newell Rubbermaid, Inc.		775		30,775
Fastenal Co.		840		30,752
Nordstrom, Inc.		403		28,899
Bed Bath & Beyond, Inc.*		491		27,997
DR Horton, Inc.		945		27,745
BorgWarner, Inc.		655		27,241
Kohl’s Corp.		573		26,536
Tiffany & Co.		325		25,097
Wyndham Worldwide Corp.		342		24,590
PVH Corp.		239		24,364
Lennar Corp. — Class A		504		24,258
Michael Kors Holdings Ltd.*		560		23,654
Hasbro, Inc.		325		23,445
Coach, Inc.		801		23,173
Goodyear Tire & Rubber Co.		780		22,877
Darden Restaurants, Inc.		330		22,618
Staples, Inc.		1,863		21,853
Mattel, Inc.		980		20,639
Ralph Lauren Corp. — Class A		173		20,442
Harman International Industries, Inc.		206		19,774
The Gap, Inc.		689		19,637
PulteGroup, Inc.		930		17,549
Leggett & Platt, Inc.		396		16,335
AutoNation, Inc.*		227		13,207
GameStop Corp. — Class A		309		12,734
Wynn Resorts Ltd.		235		12,483
Urban Outfitters, Inc.*		275		8,080
Fossil Group, Inc.*		120		6,706
Total Consumer, Cyclical				5,302,947
Industrial - 6.7%
General Electric Co.		29,235		737,306
3M Co.		1,809		256,462
Boeing Co.		1,849		242,126
Union Pacific Corp.		2,512		222,086
Honeywell International, Inc.		2,264		214,377
United Technologies Corp.		2,398		213,398
United Parcel Service, Inc. — Class B		2,022		199,551
Lockheed Martin Corp.		773		160,251
Thermo Fisher Scientific, Inc.		1,154		141,111
General Dynamics Corp.		878		121,120
Caterpillar, Inc.		1,745		114,053
FedEx Corp.		761		109,569
Raytheon Co.		879		96,040
Precision Castparts Corp.		398		91,425
Northrop Grumman Corp.		543		90,111
Emerson Electric Co.		1,903		84,056
Illinois Tool Works, Inc.		954		78,524
CSX Corp.		2,848		76,611
TE Connectivity Ltd.		1,165		69,772
Eaton Corporation plc		1,354		69,460
Deere & Co.		903		66,822
Norfolk Southern Corp.		873		66,697
Corning, Inc.		3,550		60,776
Waste Management, Inc.		1,218		60,669
Cummins, Inc.		481		52,227
Nielsen Holdings plc		1,062		47,227
Amphenol Corp. — Class A		895		45,609
Roper Technologies, Inc.		291		45,600
Stanley Black & Decker, Inc.		444		43,059
Tyco International plc		1,221		40,855
Rockwell Automation, Inc.		388		39,370
Parker-Hannifin Corp.		401		39,017
WestRock Co.		758		38,992
Ingersoll-Rand plc		768		38,991
AMETEK, Inc.		701		36,676
Vulcan Materials Co.		386		34,432
Stericycle, Inc.*		246		34,270
Agilent Technologies, Inc.		960		32,957
Rockwell Collins, Inc.		382		31,263
Textron, Inc.		800		30,112
Martin Marietta Materials, Inc.		194		29,478
Kansas City Southern		320		29,082
Republic Services, Inc. — Class A		697		28,716
Waters Corp.*		238		28,134
Sealed Air Corp.		596		27,940
CH Robinson Worldwide, Inc.		411		27,858
Pentair plc		521		26,592
Harris Corp.		359		26,261
Dover Corp.		453		25,903
Expeditors International of Washington, Inc.		548		25,783
Snap-on, Inc.		168		25,358
Masco Corp.		996		25,079
Ball Corp.		400		24,880
L-3 Communications Holdings, Inc.		233		24,353
J.B. Hunt Transport Services, Inc.		266		18,993
Fluor Corp.		420		17,787
Xylem, Inc.		526		17,279
Allegion plc		277		15,972
Flowserve Corp.		386		15,880
PerkinElmer, Inc.		328		15,075
Jacobs Engineering Group, Inc.*		358		13,400
Garmin Ltd.		343		12,307
Ryder System, Inc.		155		11,476
FLIR Systems, Inc.		406		11,364

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NOVA FUND

	Shares		Value
Owens-Illinois, Inc.*		466	$	9,656
Joy Global, Inc.		282		4,210
Total Industrial				4,811,846
Energy - 4.7%
Exxon Mobil Corp.		12,073		897,627
Chevron Corp.		5,449		429,817
Schlumberger Ltd.		3,664		252,707
ConocoPhillips		3,572		171,313
Occidental Petroleum Corp.		2,212		146,324
Kinder Morgan, Inc.		5,204		144,046
EOG Resources, Inc.		1,590		115,751
Phillips 66		1,386		106,501
Anadarko Petroleum Corp.		1,471		88,834
Halliburton Co.		2,475		87,491
Valero Energy Corp.		1,439		86,484
Williams Companies, Inc.		1,975		72,779
Marathon Petroleum Corp.		1,552		71,904
Baker Hughes, Inc.		1,262		65,674
Pioneer Natural Resources Co.		432		52,548
Spectra Energy Corp.		1,944		51,069
Apache Corp.		1,094		42,841
National Oilwell Varco, Inc.		1,111		41,829
Devon Energy Corp.		1,119		41,504
Noble Energy, Inc.		1,231		37,152
Hess Corp.		698		34,942
Tesoro Corp.		356		34,617
Cameron International Corp.*		555		34,033
Marathon Oil Corp.		1,961		30,199
Equities Corp.		441		28,564
Cimarex Energy Co.		274		28,080
Cabot Oil & Gas Corp. — Class A		1,198		26,188
FMC Technologies, Inc.*		664		20,584
ONEOK, Inc.		606		19,513
Columbia Pipeline Group, Inc.		920		16,827
Range Resources Corp.		490		15,739
Newfield Exploration Co.*		472		15,529
Helmerich & Payne, Inc.		312		14,745
Southwestern Energy Co.*		1,113		14,124
Transocean Ltd.		990		12,791
Murphy Oil Corp.		470		11,374
Chesapeake Energy Corp.		1,497		10,973
Ensco plc — Class A		683		9,617
First Solar, Inc.*		219		9,362
CONSOL Energy, Inc.		663		6,497
Diamond Offshore Drilling, Inc.		187		3,235
Total Energy				3,401,728
Utilities - 2.1%
Duke Energy Corp.		1,993		143,377
NextEra Energy, Inc.		1,333		130,034
Dominion Resources, Inc.		1,721		121,124
Southern Co.		2,630		117,561
American Electric Power Company, Inc.		1,420		80,741
PG&E Corp.		1,416		74,765
Exelon Corp.		2,495		74,102
Sempra Energy		682		65,963
PPL Corp.		1,940		63,807
Public Service Enterprise Group, Inc.		1,465		61,764
Edison International		943		59,475
Consolidated Edison, Inc.		848		56,689
Xcel Energy, Inc.		1,469		52,017
WEC Energy Group, Inc.		914		47,729
Eversource Energy		918		46,469
DTE Energy Co.		520		41,792
FirstEnergy Corp.		1,223		38,292
Entergy Corp.		520		33,852
Ameren Corp.		703		29,716
CMS Energy Corp.		801		28,291
SCANA Corp.		414		23,292
CenterPoint Energy, Inc.		1,246		22,478
AGL Resources, Inc.		348		21,242
Pinnacle West Capital Corp.		321		20,589
AES Corp.		1,977		19,355
TECO Energy, Inc.		681		17,883
Pepco Holdings, Inc.		734		17,777
NiSource, Inc.		920		17,066
NRG Energy, Inc.		957		14,211
Total Utilities				1,541,453
Basic Materials - 1.6%
Dow Chemical Co.		3,353		142,167
EI du Pont de Nemours & Co.		2,620		126,284
Monsanto Co.		1,355		115,636
LyondellBasell Industries N.V. — Class A		1,079		89,945
Praxair, Inc.		830		84,544
Ecolab, Inc.		769		84,375
Air Products & Chemicals, Inc.		560		71,445
PPG Industries, Inc.		784		68,749
Sherwin-Williams Co.		229		51,017
Sigma-Aldrich Corp.		346		48,066
International Paper Co.		1,210		45,726
Alcoa, Inc.		3,793		36,640
Nucor Corp.		925		34,734
Mosaic Co.		976		30,363
CF Industries Holdings, Inc.		675		30,308
Freeport-McMoRan, Inc.		3,012		29,186
Eastman Chemical Co.		430		27,830
Newmont Mining Corp.		1,532		24,619
International Flavors & Fragrances, Inc.		233		24,060
Airgas, Inc.		195		17,419
FMC Corp.		387		13,123
Total Basic Materials				1,196,236
Diversified - 0.0%
Leucadia National Corp.		977		19,794

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
NOVA FUND

	Shares		Value
Consumer Discretionary - 0.0%
News Corp. — Class B		312	$	4,000
Total Common Stocks
(Cost $27,310,920)				48,980,001
MUTUAL FUNDS† - 15.5%
Guggenheim Strategy Fund I1		452,371		11,255,002
Total Mutual Funds
(Cost $11,254,917)				11,255,002

	Face Amount
FEDERAL AGENCY NOTES†† - 6.9%
Federal Farm Credit Bank2
0.18% due 08/01/17	$	5,000,000		4,996,955
Total Federal Agency Notes
(Cost $5,000,000)				4,996,955
REPURCHASE AGREEMENTS††, 3 - 13.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		5,499,476		5,499,476
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		2,105,018		2,105,018
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		1,975,531		1,975,531
Total Repurchase Agreements
(Cost $9,580,025)				9,580,025
Total Investments - 103.2%
(Cost $53,145,862)			$	74,811,983
Other Assets & Liabilities, net - (3.2)%				(2,309,635	)
Total Net Assets - 100.0%			$	72,502,348

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $16,220,125)		170	$	(130,126	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 S&P 500 Index Swap, Terminating 10/30/154 (Notional Value $40,081,752)		20,876	$	802,917
Goldman Sachs International October 2015 S&P 500 Index Swap, Terminating 10/27/154 (Notional Value $703,779)		367		14,479
Credit Suisse Capital, LLC October 2015 S&P 500 Index Swap, Terminating 10/27/154 (Notional Value $2,753,553)		1,434		(15,216	)
(Total Notional Value $43,539,084)			$	802,180

*	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	Affiliated issuer — See Note 9.
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 Sector Classification in Other Information section.

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $32,310,920)	$	53,976,956
Investments in affiliated issuers, at value (cost $11,254,917)		11,255,002
Repurchase agreements, at value (cost $9,580,025)		9,580,025
Total investments (cost $53,145,862)		74,811,983
Segregated cash with broker		7,160,496
Unrealized appreciation on swap agreements		817,396
Cash		932
Receivables:
Swap settlement		296,341
Variation margin		286,875
Fund shares sold		284,005
Dividends		62,158
Interest		789
Foreign taxes reclaim		46
Securities lending income		11
Total assets		83,721,032
Liabilities:
Unrealized depreciation on swap agreements		15,216
Payable for:
Fund shares redeemed		11,051,461
Management fees		47,342
Transfer agent and administrative fees		15,781
Distribution and service fees		11,730
Portfolio accounting fees		6,312
Securities purchased		1,650
Miscellaneous		69,192
Total liabilities		11,218,684
Commitments and contingent liabilities (Note 12)		—
Net assets	$	72,502,348
Net assets consist of:
Paid in capital	$	57,102,597
Undistributed net investment income		390,337
Accumulated net realized loss on investments		(7,328,761	)
Net unrealized appreciation on investments		22,338,175
Net assets	$	72,502,348
Investor Class:
Net assets	$	50,945,317
Capital shares outstanding		1,150,532
Net asset value per share	$	44.28
Advisor Class:
Net assets	$	4,895,263
Capital shares outstanding		121,453
Net asset value per share	$	40.31
A-Class:
Net assets	$	4,742,117
Capital shares outstanding		114,202
Net asset value per share	$	41.52
Maximum offering price per share (Net asset value divided by 95.25%)	$	43.59
C-Class:
Net assets	$	10,907,100
Capital shares outstanding		287,890
Net asset value per share	$	37.89
H-Class:
Net assets	$	1,012,551
Capital shares outstanding		24,395
Net asset value per share	$	41.51

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

NOVA FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $167)	$	941,792
Dividends from securities of affiliated issuers		50,197
Interest		4,065
Income from securities lending, net		759
Total investment income		996,813
Expenses:
Management fees		478,242
Transfer agent and administrative fees		159,414
Distribution and service fees:
Advisor Class		8,604
A-Class		5,698
C-Class		59,757
H-Class		5,954
Portfolio accounting fees		63,765
Registration fees		52,572
Custodian fees		7,312
Trustees’ fees*		4,799
Line of credit fees		233
Miscellaneous		21,159
Total expenses		867,509
Net investment income		129,304
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	6,494,767
Investments in affiliated issuers		9,571
Swap agreements		(4,950,713	)
Futures contracts		(968,450	)
Net realized gain		585,175
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(10,243,974	)
Investments in affiliated issuers		85
Swap agreements		514,723
Futures contracts		(181,307	)
Net change in unrealized appreciation (depreciation)		(9,910,473	)
Net realized and unrealized loss		(9,325,298	)
Net decrease in net assets resulting from operations	$	(9,195,994	)

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

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	129,304		$	261,033
Net realized gain on investments		585,175			15,565,512
Net change in unrealized appreciation (depreciation) on investments		(9,910,473	)		5,141,300
Net increase (decrease) in net assets resulting from operations		(9,195,994	)		20,967,845
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		364,655,159			608,271,001
Advisor Class		42,136,814			251,879,413
A-Class		10,843,957			6,568,419
C-Class		3,480,059			5,111,829
H-Class		94,020,559			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		(444,113,001	)		(590,801,336	)
Advisor Class		(40,531,594	)		(259,841,399	)
A-Class		(9,601,358	)		(4,276,469	)
C-Class		(3,220,951	)		(5,079,311	)
H-Class		(94,243,159	)		(86,211,806	)*
Net increase (decrease) from capital share transactions		(76,573,515	)		14,405,864
Net increase (decrease) in net assets		(85,769,509	)		35,204,558
Net assets:
Beginning of period		158,271,857			123,067,299
End of period	$	72,502,348		$	158,271,857
Undistributed net investment income at end of period	$	390,337		$	261,033

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		7,383,210			13,070,082
Advisor Class		945,322			6,029,241
A-Class		237,053			148,884
C-Class		82,112			126,849
H-Class		2,017,587			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		(9,000,798	)		(12,754,141	)
Advisor Class		(909,434	)		(6,156,017	)
A-Class		(207,558	)		(95,445	)
C-Class		(76,405	)		(128,803	)
H-Class		(2,029,661	)		(1,902,454	)*
Net increase (decrease) in shares		(1,558,572	)		280,579

* Since the commencement of operations: September 18, 2014.

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

NOVA FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	49.42		$	42.15		$	32.05		$	26.82		$	24.59		$	20.28
Income (loss) from investment operations:
Net investment income (loss)b		.08			.14			.14			.05			.08			.02
Net gain (loss) on investments (realized and unrealized)		(5.22	)		7.18			9.96			5.21			2.15			4.31
Total from investment operations		(5.14	)		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	$	44.28		$	49.42		$	42.15		$	32.05		$	26.82		$	24.59
Total Returnc		(10.40	%)		17.36	%		31.51	%		19.62	%		9.07	%		21.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	50,945		$	136,800		$	103,254		$	52,785		$	54,598		$	65,102
Ratios to average net assets:
Net investment income (loss)		0.34	%		0.31	%		0.37	%		0.20	%		0.36	%		0.11	%
Total expensesd		1.23	%		1.27	%		1.28	%		1.26	%		1.26	%		1.29	%
Portfolio turnover rate		152	%		403	%		259	%		137	%		116	%		53	%

Advisor Class	Period Ended September 30, 2015a			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	$	45.08		$	38.64		$	29.51		$	24.85		$	22.88		$	18.97
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.10	)		(.04	)		(.11	)		(.04	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(4.75	)		6.59			9.17			4.80			2.01			4.00
Total from investment operations		(4.77	)		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	$	40.31		$	45.08		$	38.64		$	29.51		$	24.85		$	22.88
Total Returnc		(10.60	%)		16.79	%		30.94	%		18.93	%		8.57	%		20.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,895		$	3,857		$	8,183		$	12,141		$	11,112		$	6,318
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		(0.23	%)		(0.12	%)		(0.43	%)		(0.18	%)		(0.37	%)
Total expensesd		1.62	%		1.78	%		1.78	%		1.75	%		1.75	%		1.79	%
Portfolio turnover rate		152	%		403	%		259	%		137	%		116	%		53	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2015a			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	$	46.40		$	39.67		$	30.23		$	25.38		$	23.32		$	19.28
Income (loss) from investment operations:
Net investment income (loss)b		.02			.02			.05			(.01	)		.01			(.02	)
Net gain (loss) on investments (realized and unrealized)		(4.90	)		6.76			9.39			4.89			2.05			4.08
Total from investment operations		(4.88	)		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	$	41.52		$	46.40		$	39.67		$	30.23		$	25.38		$	23.32
Total Returnc		(10.52	%)		17.09	%		31.23	%		19.28	%		8.79	%		21.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,742		$	3,930		$	1,237		$	1,189		$	1,472		$	5,843
Ratios to average net assets:
Net investment income (loss)		0.07	%		0.05	%		0.14	%		(0.04	%)		0.06	%		(0.11	%)
Total expensesd		1.49	%		1.52	%		1.53	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		152	%		403	%		259	%		137	%		116	%		53	%

C-Class	Period Ended September 30, 2015a			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	$	42.50		$	36.62		$	28.11		$	23.77		$	22.01		$	18.33
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.28	)		(.20	)		(.19	)		(.13	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(4.46	)		6.21			8.71			4.56			1.89			3.86
Total from investment operations		(4.61	)		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	$	37.89		$	42.50		$	36.62		$	28.11		$	23.77		$	22.01
Total Returnc		(10.85	%)		16.19	%		30.27	%		18.39	%		8.00	%		20.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,907		$	11,993		$	10,394		$	8,705		$	8,829		$	10,461
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.70	%)		(0.62	%)		(0.79	%)		(0.62	%)		(0.85	%)
Total expensesd		2.24	%		2.27	%		2.28	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate		152	%		403	%		259	%		137	%		116	%		53	%

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

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 September 30, 2015a			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	46.40		$	44.40
Income (loss) from investment operations:
Net investment income (loss)b		—	e		.02
Net gain (loss) on investments (realized and unrealized)		(4.89	)		2.03
Total from investment operations		(4.89	)		2.05
Less distributions from:
Net investment income		—			(.05	)
Total distributions		—			(.05	)
Net asset value, end of period	$	41.51		$	46.40
Total Returnc		(10.52	%)		4.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,013		$	1,692
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		0.08	%
Total expensesd		1.49	%		1.51	%
Portfolio turnover rate		152	%		403	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net investment income (loss) is less than $0.01 per share.
f	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.

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

FUND PROFILE (Unaudited) September 30, 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”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	2.6%
Microsoft Corp.	1.4%
Exxon Mobil Corp.	1.3%
Johnson & Johnson	1.1%
General Electric Co.	1.0%
Berkshire Hathaway, Inc. — Class B	1.0%
Wells Fargo & Co.	1.0%
JPMorgan Chase & Co.	0.9%
Facebook, Inc. — Class A	0.8%
AT&T, Inc.	0.8%
Top Ten Total	11.9%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 69.0%
Consumer, Non-cyclical - 16.4%
Johnson & Johnson		14,522	$	1,355,628
Procter & Gamble Co.		14,225		1,023,346
Pfizer, Inc.		32,343		1,015,893
Coca-Cola Co.		20,531		823,703
Gilead Sciences, Inc.		7,697		755,767
Merck & Company, Inc.		14,771		729,540
PepsiCo, Inc.		7,704		726,487
Philip Morris International, Inc.		8,124		644,476
UnitedHealth Group, Inc.		5,001		580,166
Allergan plc*		2,064		561,016
Altria Group, Inc.		10,282		559,341
Amgen, Inc.		3,976		549,960
Bristol-Myers Squibb Co.		8,745		517,704
Medtronic plc		7,416		496,426
AbbVie, Inc.		8,681		472,333
MasterCard, Inc. — Class A		5,234		471,688
Celgene Corp.*		4,146		448,473
Eli Lilly & Co.		5,116		428,158
Biogen, Inc.*		1,233		359,802
Mondelez International, Inc. — Class A		8,450		353,801
Abbott Laboratories		7,816		314,360
Colgate-Palmolive Co.		4,721		299,595
Express Scripts Holding Co.*		3,544		286,922
Danaher Corp.		3,118		265,685
McKesson Corp.		1,219		225,551
Kraft Heinz Co.		3,117		219,998
Kimberly-Clark Corp.		1,910		208,266
Aetna, Inc.		1,828		200,001
Automatic Data Processing, Inc.		2,443		196,319
Reynolds American, Inc.		4,347		192,442
Anthem, Inc.		1,372		192,080
Regeneron Pharmaceuticals, Inc.*		405		188,382
Alexion Pharmaceuticals, Inc.*		1,186		185,479
Kroger Co.		5,094		183,741
Cigna Corp.		1,350		182,277
PayPal Holdings, Inc.*		5,816		180,529
General Mills, Inc.		3,140		176,248
Stryker Corp.		1,659		156,112
Becton Dickinson and Co.		1,103		146,324
Humana, Inc.		777		139,083
Vertex Pharmaceuticals, Inc.*		1,283		133,612
Archer-Daniels-Midland Co.		3,193		132,350
Cardinal Health, Inc.		1,717		131,900
HCA Holdings, Inc.*		1,677		129,733
McGraw Hill Financial, Inc.		1,429		123,609
Perrigo Company plc		767		120,626
Boston Scientific Corp.*		7,048		115,658
Sysco Corp.		2,902		113,091
Constellation Brands, Inc. — Class A		902		112,940
Monster Beverage Corp.*		797		107,707
AmerisourceBergen Corp. — Class A		1,077		102,304
Zoetis, Inc.		2,407		99,120
Estee Lauder Companies, Inc. — Class A		1,184		95,525
Baxter International, Inc.		2,861		93,984
St. Jude Medical, Inc.		1,478		93,247
ConAgra Foods, Inc.		2,264		91,715
Moody’s Corp.		914		89,755
Baxalta, Inc.		2,840		89,488
Intuitive Surgical, Inc.*		194		89,159
Kellogg Co.		1,335		88,844
Mylan N.V.*		2,165		87,163
Zimmer Biomet Holdings, Inc.		896		84,161
Edwards Lifesciences Corp.*		564		80,184
Dr Pepper Snapple Group, Inc.		1,001		79,129
Clorox Co.		675		77,983
Endo International plc*		1,092		75,654
Mead Johnson Nutrition Co. — Class A		1,063		74,835
CR Bard, Inc.		389		72,475
Hershey Co.		766		70,380
Molson Coors Brewing Co. — Class B		829		68,824
Tyson Foods, Inc. — Class A		1,596		68,788
DaVita HealthCare Partners, Inc.*		893		64,591
JM Smucker Co.		540		61,609
Equifax, Inc.		620		60,252
Universal Health Services, Inc. — Class B		481		60,034
Whole Foods Market, Inc.		1,877		59,407
Henry Schein, Inc.*		437		57,999
Laboratory Corporation of America Holdings*		528		57,272
Brown-Forman Corp. — Class B		556		53,876
Coca-Cola Enterprises, Inc.		1,105		53,427
H&R Block, Inc.		1,449		52,454
McCormick & Company, Inc.		608		49,965
Western Union Co.		2,682		49,242
Campbell Soup Co.		945		47,893
Quest Diagnostics, Inc.		753		46,287
Hormel Foods Corp.		707		44,760
Total System Services, Inc.		888		40,342
Cintas Corp.		468		40,131
Mallinckrodt plc*		615		39,323
Varian Medical Systems, Inc.*		518		38,218
DENTSPLY International, Inc.		733		37,068
Robert Half International, Inc.		705		36,068
Keurig Green Mountain, Inc.		630		32,848
United Rentals, Inc.*		500		30,025
Avery Dennison Corp.		480		27,154
ADT Corp.		891		26,641
Quanta Services, Inc.*		1,071		25,929
Patterson Companies, Inc.		455		19,679
Tenet Healthcare Corp.*		522		19,272
Total Consumer, Non-cyclical				21,238,811
Financial - 11.8%
Berkshire Hathaway, Inc. — Class B*		9,825		1,281,180
Wells Fargo & Co.		24,498		1,257,972
JPMorgan Chase & Co.		19,394		1,182,451

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
S&P 500® FUND

	Shares		Value
Bank of America Corp.		54,900	$	855,342
Citigroup, Inc.		15,785		783,094
Visa, Inc. — Class A		10,234		712,900
American International Group, Inc.		6,786		385,580
Goldman Sachs Group, Inc.		2,111		366,808
U.S. Bancorp		8,681		356,008
American Express Co.		4,463		330,843
Simon Property Group, Inc.		1,623		298,178
MetLife, Inc.		5,857		276,157
Morgan Stanley		7,990		251,685
PNC Financial Services Group, Inc.		2,693		240,217
Bank of New York Mellon Corp.		5,803		227,187
Capital One Financial Corp.		2,845		206,319
BlackRock, Inc. — Class A		672		199,900
American Tower Corp. — Class A		2,220		195,315
Prudential Financial, Inc.		2,365		180,237
Charles Schwab Corp.		6,279		179,328
ACE Ltd.		1,698		175,573
CME Group, Inc. — Class A		1,771		164,242
Public Storage		771		163,166
Travelers Companies, Inc.		1,632		162,433
Chubb Corp.		1,190		145,954
BB&T Corp.		4,088		145,533
Marsh & McLennan Companies, Inc.		2,779		145,119
State Street Corp.		2,140		143,829
Equity Residential		1,909		143,404
Crown Castle International Corp.		1,750		138,023
Intercontinental Exchange, Inc.		579		136,059
Aflac, Inc.		2,259		131,316
Aon plc		1,469		130,168
Welltower, Inc.		1,845		124,943
Allstate Corp.		2,100		122,304
AvalonBay Communities, Inc.		697		121,850
Discover Financial Services		2,283		118,693
Prologis, Inc.		2,749		106,936
SunTrust Banks, Inc.		2,717		103,898
Ameriprise Financial, Inc.		935		102,037
Hartford Financial Services Group, Inc.		2,176		99,616
Ventas, Inc.		1,744		97,769
Boston Properties, Inc.		805		95,312
Progressive Corp.		3,073		94,157
T. Rowe Price Group, Inc.		1,344		93,408
HCP, Inc.		2,426		90,369
M&T Bank Corp.		699		85,243
Vornado Realty Trust		929		84,000
Alliance Data Systems Corp.*		322		83,392
Equinix, Inc.		299		81,747
Fifth Third Bancorp		4,212		79,649
General Growth Properties, Inc.		3,065		79,598
Northern Trust Corp.		1,148		78,248
Essex Property Trust, Inc.		345		77,080
Franklin Resources, Inc.		2,028		75,563
Weyerhaeuser Co.		2,697		73,736
Invesco Ltd.		2,248		70,205
Principal Financial Group, Inc.		1,438		68,075
Regions Financial Corp.		6,948		62,601
Lincoln National Corp.		1,316		62,457
Host Hotels & Resorts, Inc.		3,939		62,276
Realty Income Corp.		1,232		58,384
XL Group plc — Class A		1,585		57,567
KeyCorp		4,410		57,374
SL Green Realty Corp.		522		56,460
Loews Corp.		1,504		54,355
Macerich Co.		706		54,235
Kimco Realty Corp.		2,167		52,940
Affiliated Managers Group, Inc.*		285		48,732
CBRE Group, Inc. — Class A*		1,520		48,640
Huntington Bancshares, Inc.		4,212		44,647
Cincinnati Financial Corp.		774		41,641
Unum Group		1,294		41,512
E*TRADE Financial Corp.*		1,522		40,074
Comerica, Inc.		933		38,346
Plum Creek Timber Company, Inc.		916		36,191
Torchmark Corp.		610		34,404
Nasdaq, Inc.		620		33,065
Iron Mountain, Inc.		1,006		31,206
Apartment Investment & Management Co. — Class A		820		30,356
Zions Bancorporation		1,071		29,495
Assurant, Inc.		350		27,654
Hudson City Bancorp, Inc.		2,527		25,700
People’s United Financial, Inc.		1,626		25,577
Legg Mason, Inc.		575		23,926
Navient Corp.		1,962		22,053
Genworth Financial, Inc. — Class A*		2,609		12,054
Total Financial				15,213,270
Technology - 9.3%
Apple, Inc.		29,907		3,298,742
Microsoft Corp.		41,944		1,856,441
Intel Corp.		24,931		751,421
International Business Machines Corp.		4,726		685,128
Oracle Corp.		17,055		616,027
QUALCOMM, Inc.		8,240		442,735
Accenture plc — Class A		3,273		321,605
Texas Instruments, Inc.		5,383		266,566
EMC Corp.		10,094		243,871
Hewlett-Packard Co.		9,473		242,604
salesforce.com, Inc.*		3,254		225,925
Adobe Systems, Inc.*		2,610		214,594
Cognizant Technology Solutions Corp. — Class A*		3,197		200,164
Avago Technologies Ltd.		1,363		170,389
Broadcom Corp. — Class A		2,932		150,793
Intuit, Inc.		1,454		129,043
Electronic Arts, Inc.*		1,635		110,771
Fiserv, Inc.*		1,230		106,530

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
S&P 500® FUND

	Shares		Value
Fidelity National Information Services, Inc.		1,477	$	99,077
Cerner Corp.*		1,611		96,596
Western Digital Corp.		1,208		95,964
Analog Devices, Inc.		1,645		92,794
Applied Materials, Inc.		6,296		92,488
Micron Technology, Inc.*		5,645		84,562
Skyworks Solutions, Inc.		1,000		84,210
Activision Blizzard, Inc.		2,638		81,488
Paychex, Inc.		1,686		80,304
Altera Corp.		1,586		79,427
Seagate Technology plc		1,584		70,963
Red Hat, Inc.*		962		69,149
NVIDIA Corp.		2,685		66,185
Akamai Technologies, Inc.*		937		64,709
Citrix Systems, Inc.*		843		58,403
SanDisk Corp.		1,072		58,242
Xilinx, Inc.		1,356		57,494
Lam Research Corp.		830		54,224
Autodesk, Inc.*		1,186		52,350
Xerox Corp.		5,269		51,267
Linear Technology Corp.		1,257		50,720
Microchip Technology, Inc.		1,107		47,701
NetApp, Inc.		1,574		46,590
CA, Inc.		1,643		44,854
Computer Sciences Corp.		725		44,501
KLA-Tencor Corp.		826		41,300
Qorvo, Inc.*		784		35,319
Teradata Corp.*		743		21,517
Pitney Bowes, Inc.		1,059		21,021
Dun & Bradstreet Corp.		189		19,845
Total Technology				11,896,613
Communications - 8.5%
Facebook, Inc. — Class A*		11,851		1,065,406
AT&T, Inc.		32,258		1,050,967
Amazon.com, Inc.*		2,011		1,029,410
Google, Inc. — Class A*		1,520		970,323
Google, Inc. — Class C*		1,551		943,660
Verizon Communications, Inc.		21,322		927,720
Walt Disney Co.		8,144		832,317
Cisco Systems, Inc.		26,672		700,140
Comcast Corp. — Class A		11,091		630,856
Priceline Group, Inc.*		266		329,005
Time Warner, Inc.		4,277		294,044
Time Warner Cable, Inc.		1,484		266,185
Netflix, Inc.*		2,234		230,683
Twenty-First Century Fox, Inc. — Class A		6,403		172,753
eBay, Inc.*		5,878		143,658
Yahoo!, Inc.*		4,542		131,309
Comcast Corp. — Class A		1,931		110,530
CBS Corp. — Class B		2,331		93,007
Omnicom Group, Inc.		1,274		83,956
Viacom, Inc. — Class B		1,822		78,619
CenturyLink, Inc.		2,952		74,154
Symantec Corp.		3,588		69,858
Level 3 Communications, Inc.*		1,512		66,059
Expedia, Inc.		525		61,782
Twenty-First Century Fox, Inc. — Class B		2,261		61,205
Motorola Solutions, Inc.		843		57,644
Juniper Networks, Inc.		1,855		47,692
F5 Networks, Inc.*		372		43,078
Interpublic Group of Companies, Inc.		2,152		41,168
Cablevision Systems Corp. — Class A		1,166		37,860
TripAdvisor, Inc.*		592		37,308
VeriSign, Inc.*		524		36,973
Discovery Communications, Inc. — Class C*		1,352		32,840
Frontier Communications Corp.		6,126		29,099
TEGNA, Inc.		1,188		26,599
News Corp. — Class A		1,998		25,215
Scripps Networks Interactive, Inc. — Class A		494		24,300
Discovery Communications, Inc. — Class A*		783		20,381
Total Communications				10,877,763
Consumer, Cyclical - 7.5%
Home Depot, Inc.		6,734		777,709
CVS Health Corp.		5,845		563,925
Wal-Mart Stores, Inc.		8,276		536,616
McDonald’s Corp.		4,939		486,639
Starbucks Corp.		7,784		442,442
NIKE, Inc. — Class B		3,555		437,158
Walgreens Boots Alliance, Inc.		4,583		380,847
Lowe’s Companies, Inc.		4,852		334,400
Costco Wholesale Corp.		2,305		333,234
Ford Motor Co.		20,437		277,330
Target Corp.		3,296		259,264
TJX Companies, Inc.		3,537		252,612
General Motors Co.		7,559		226,921
Delta Air Lines, Inc.		4,171		187,153
Yum! Brands, Inc.		2,261		180,767
Johnson Controls, Inc.		3,430		141,865
American Airlines Group, Inc.		3,523		136,798
Southwest Airlines Co.		3,458		131,542
O’Reilly Automotive, Inc.*		521		130,250
VF Corp.		1,786		121,824
L Brands, Inc.		1,347		121,405
Carnival Corp.		2,428		120,672
Chipotle Mexican Grill, Inc. — Class A*		163		117,401
AutoZone, Inc.*		162		117,260
Delphi Automotive plc		1,491		113,376
Dollar General Corp.		1,545		111,920
Ross Stores, Inc.		2,170		105,180
United Continental Holdings, Inc.*		1,981		105,092
PACCAR, Inc.		1,862		97,141
Under Armour, Inc. — Class A*		944		91,361
Macy’s, Inc.		1,736		89,092
Dollar Tree, Inc.*		1,231		82,058
Royal Caribbean Cruises Ltd.		900		80,181
Advance Auto Parts, Inc.		384		72,780

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
S&P 500® FUND

	Shares		Value
Marriott International, Inc. — Class A		1,046	$	71,337
WW Grainger, Inc.		318		68,374
Genuine Parts Co.		795		65,898
CarMax, Inc.*		1,091		64,718
Hanesbrands, Inc.		2,111		61,092
Mohawk Industries, Inc.*		333		60,536
Whirlpool Corp.		411		60,524
Tractor Supply Co.		712		60,036
Best Buy Company, Inc.		1,610		59,763
Starwood Hotels & Resorts Worldwide, Inc.		894		59,433
Harley-Davidson, Inc.		1,080		59,292
Signet Jewelers Ltd.		417		56,766
Newell Rubbermaid, Inc.		1,404		55,753
Fastenal Co.		1,522		55,720
Nordstrom, Inc.		730		52,348
Bed Bath & Beyond, Inc.*		889		50,691
DR Horton, Inc.		1,712		50,264
BorgWarner, Inc.		1,187		49,367
Kohl’s Corp.		1,038		48,070
Tiffany & Co.		588		45,405
Wyndham Worldwide Corp.		619		44,506
PVH Corp.		433		44,140
Lennar Corp. — Class A		912		43,895
Michael Kors Holdings Ltd.*		1,014		42,831
Hasbro, Inc.		590		42,562
Coach, Inc.		1,451		41,977
Goodyear Tire & Rubber Co.		1,413		41,443
Darden Restaurants, Inc.		598		40,987
Staples, Inc.		3,375		39,589
Mattel, Inc.		1,776		37,403
Ralph Lauren Corp. — Class A		313		36,984
Harman International Industries, Inc.		373		35,804
The Gap, Inc.		1,248		35,568
PulteGroup, Inc.		1,684		31,777
Leggett & Platt, Inc.		718		29,618
AutoNation, Inc.*		410		23,854
GameStop Corp. — Class A		560		23,078
Wynn Resorts Ltd.		426		22,629
Urban Outfitters, Inc.*		497		14,602
Fossil Group, Inc.*		217		12,126
Total Consumer, Cyclical				9,604,975
Industrial - 6.8%
General Electric Co.		52,949		1,335,373
3M Co.		3,276		464,439
Boeing Co.		3,350		438,683
Union Pacific Corp.		4,550		402,266
Honeywell International, Inc.		4,100		388,229
United Technologies Corp.		4,344		386,573
United Parcel Service, Inc. — Class B		3,663		361,502
Lockheed Martin Corp.		1,401		290,441
Thermo Fisher Scientific, Inc.		2,090		255,565
General Dynamics Corp.		1,591		219,478
Caterpillar, Inc.		3,160		206,538
FedEx Corp.		1,377		198,260
Raytheon Co.		1,592		173,942
Precision Castparts Corp.		721		165,621
Northrop Grumman Corp.		983		163,129
Emerson Electric Co.		3,446		152,210
Illinois Tool Works, Inc.		1,728		142,231
CSX Corp.		5,159		138,777
TE Connectivity Ltd.		2,110		126,368
Eaton Corporation plc		2,452		125,787
Deere & Co.		1,635		120,990
Norfolk Southern Corp.		1,581		120,788
Corning, Inc.		6,429		110,065
Waste Management, Inc.		2,206		109,880
Cummins, Inc.		871		94,573
Nielsen Holdings plc		1,924		85,560
Roper Technologies, Inc.		528		82,738
Amphenol Corp. — Class A		1,621		82,606
Stanley Black & Decker, Inc.		804		77,972
Tyco International plc		2,211		73,980
Rockwell Automation, Inc.		703		71,333
Ingersoll-Rand plc		1,392		70,672
Parker-Hannifin Corp.		726		70,640
WestRock Co.		1,373		70,627
AMETEK, Inc.		1,270		66,446
Vulcan Materials Co.		698		62,262
Stericycle, Inc.*		445		61,993
Agilent Technologies, Inc.		1,738		59,665
Rockwell Collins, Inc.		691		56,551
Textron, Inc.		1,450		54,578
Martin Marietta Materials, Inc.		351		53,334
Kansas City Southern		579		52,620
Republic Services, Inc. — Class A		1,263		52,036
Waters Corp.*		431		50,949
Sealed Air Corp.		1,079		50,584
CH Robinson Worldwide, Inc.		744		50,428
Pentair plc		944		48,182
Harris Corp.		651		47,621
Dover Corp.		821		46,945
Expeditors International of Washington, Inc.		992		46,674
Snap-on, Inc.		305		46,037
Masco Corp.		1,804		45,425
Ball Corp.		725		45,095
L-3 Communications Holdings, Inc.		421		44,003
J.B. Hunt Transport Services, Inc.		482		34,415
Fluor Corp.		760		32,186
Xylem, Inc.		952		31,273
Allegion plc		502		28,945
Flowserve Corp.		699		28,757
PerkinElmer, Inc.		595		27,346
Jacobs Engineering Group, Inc.*		649		24,292
Garmin Ltd.		621		22,281
Ryder System, Inc.		280		20,731
FLIR Systems, Inc.		736		20,601

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
S&P 500® FUND

	Shares		Value
Owens-Illinois, Inc.*		843	$	17,467
Joy Global, Inc.		511		7,629
Total Industrial				8,715,187
Energy - 4.8%
Exxon Mobil Corp.		21,866		1,625,737
Chevron Corp.		9,868		778,388
Schlumberger Ltd.		6,636		457,685
ConocoPhillips		6,469		310,253
Occidental Petroleum Corp.		4,006		264,997
Kinder Morgan, Inc.		9,426		260,912
EOG Resources, Inc.		2,880		209,664
Phillips 66		2,511		192,945
Anadarko Petroleum Corp.		2,664		160,879
Halliburton Co.		4,483		158,474
Valero Energy Corp.		2,607		156,681
Williams Companies, Inc.		3,578		131,849
Marathon Petroleum Corp.		2,812		130,280
Baker Hughes, Inc.		2,286		118,963
Pioneer Natural Resources Co.		783		95,244
Spectra Energy Corp.		3,521		92,497
Apache Corp.		1,982		77,615
National Oilwell Varco, Inc.		2,013		75,789
Devon Energy Corp.		2,026		75,144
Noble Energy, Inc.		2,229		67,271
Hess Corp.		1,265		63,326
Tesoro Corp.		646		62,817
Cameron International Corp.*		1,004		61,565
Marathon Oil Corp.		3,551		54,685
Equities Corp.		799		51,752
Cimarex Energy Co.		495		50,728
Cabot Oil & Gas Corp. — Class A		2,170		47,436
FMC Technologies, Inc.*		1,203		37,293
ONEOK, Inc.		1,097		35,323
Columbia Pipeline Group, Inc.		1,666		30,471
Range Resources Corp.		888		28,523
Newfield Exploration Co.*		855		28,130
Helmerich & Payne, Inc.		565		26,702
Southwestern Energy Co.*		2,016		25,583
Transocean Ltd.		1,792		23,153
Murphy Oil Corp.		852		20,618
Chesapeake Energy Corp.		2,712		19,879
Ensco plc — Class A		1,236		17,403
First Solar, Inc.*		397		16,972
CONSOL Energy, Inc.		1,201		11,770
Diamond Offshore Drilling, Inc.		338		5,847
Total Energy				6,161,243
Utilities - 2.2%
Duke Energy Corp.		3,610		259,704
NextEra Energy, Inc.		2,414		235,486
Dominion Resources, Inc.		3,117		219,375
Southern Co.		4,764		212,951
American Electric Power Company, Inc.		2,573		146,301
PG&E Corp.		2,565		135,432
Exelon Corp.		4,519		134,214
Sempra Energy		1,235		119,449
PPL Corp.		3,514		115,575
Public Service Enterprise Group, Inc.		2,653		111,850
Edison International		1,709		107,787
Consolidated Edison, Inc.		1,536		102,682
Xcel Energy, Inc.		2,660		94,191
WEC Energy Group, Inc.		1,656		86,476
Eversource Energy		1,663		84,181
DTE Energy Co.		941		75,628
FirstEnergy Corp.		2,215		69,352
Entergy Corp.		941		61,259
Ameren Corp.		1,272		53,767
CMS Energy Corp.		1,451		51,249
SCANA Corp.		749		42,139
CenterPoint Energy, Inc.		2,256		40,698
AGL Resources, Inc.		630		38,455
Pinnacle West Capital Corp.		581		37,265
AES Corp.		3,581		35,058
TECO Energy, Inc.		1,234		32,405
Pepco Holdings, Inc.		1,329		32,188
NiSource, Inc.		1,667		30,923
NRG Energy, Inc.		1,734		25,750
Total Utilities				2,791,790
Basic Materials - 1.7%
Dow Chemical Co.		6,073		257,494
EI du Pont de Nemours & Co.		4,745		228,709
Monsanto Co.		2,453		209,339
LyondellBasell Industries N.V. — Class A		1,955		162,969
Praxair, Inc.		1,502		152,994
Ecolab, Inc.		1,393		152,840
Air Products & Chemicals, Inc.		1,015		129,494
PPG Industries, Inc.		1,420		124,520
Sherwin-Williams Co.		416		92,676
Sigma-Aldrich Corp.		626		86,964
International Paper Co.		2,191		82,798
Alcoa, Inc.		6,869		66,355
Nucor Corp.		1,676		62,934
Mosaic Co.		1,768		55,002
CF Industries Holdings, Inc.		1,222		54,868
Freeport-McMoRan, Inc.		5,455		52,859
Eastman Chemical Co.		780		50,482
Newmont Mining Corp.		2,775		44,594
International Flavors & Fragrances, Inc.		423		43,679
Airgas, Inc.		352		31,444
FMC Corp.		701		23,771
Total Basic Materials				2,166,785
Diversified - 0.0%
Leucadia National Corp.		1,769		35,840

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P 500® FUND

	Shares		Value
Consumer Discretionary - 0.0%
News Corp. — Class B		565	$	7,243
Total Common Stocks
(Cost $43,162,488)				88,709,520

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 13.2%
Farmer Mac1
0.16% due 01/25/16	$	10,000,000		9,995,810
Federal Farm Credit Bank1
0.18% due 08/01/17		5,000,000		4,996,955
Federal Home Loan Bank1
0.36% due 06/01/16		2,000,000		1,996,544
Total Federal Agency Discount Notes
(Cost $16,989,964)				16,989,309
REPURCHASE AGREEMENTS††,2 - 15.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		11,194,244		11,194,244
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		4,284,788		4,284,788
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		4,021,214		4,021,214
Total Repurchase Agreements
(Cost $19,500,246)				19,500,246
Total Investments - 97.4%
(Cost $79,652,698)			$	125,199,075
Other Assets & Liabilities, net - 2.6%				3,279,562
Total Net Assets - 100.0%			$	128,478,637

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $29,196,225)		306	$	(472,355	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2015 S&P 500 Index Swap, Terminating 10/27/153 (Notional Value $9,083,919)		4,731	$	182,042
Barclays Bank plc October 2015 S&P 500 Index Swap, Terminating 10/30/153 (Notional Value $1,486,491)		774		19,327
Credit Suisse Capital, LLC October 2015 S&P 500 Index Swap, Terminating 10/27/153 (Notional Value $750,229)		391		(4,146	)
(Total Notional Value $11,320,639)			$	197,223

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 5.
3	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments, at value (cost $60,152,452)	$	105,698,829
Repurchase agreements, at value (cost $19,500,246)		19,500,246
Total investments (cost $79,652,698)		125,199,075
Segregated cash with broker		3,235,296
Unrealized appreciation on swap agreements		201,369
Cash		1,483
Receivables:
Fund shares sold		769,045
Variation margin		516,375
Dividends		105,261
Swap settlement		21,064
Interest		800
Foreign taxes reclaim		67
Securities lending income		27
Total assets		130,049,862
Liabilities:
Unrealized depreciation on swap agreements		4,146
Payable for:
Fund shares redeemed		1,176,419
Management fees		90,485
Distribution and service fees		41,758
Transfer agent and administrative fees		30,162
Portfolio accounting fees		18,097
Miscellaneous		210,158
Total liabilities		1,571,225
Commitments and contingent liabilities (Note 12)		—
Net assets	$	128,478,637
Net assets consist of:
Paid in capital	$	74,386,923
Undistributed net investment income		198,819
Accumulated net realized gain on investments		8,621,650
Net unrealized appreciation on investments		45,271,245
Net assets	$	128,478,637
A-Class:
Net assets	$	15,374,421
Capital shares outstanding		399,052
Net asset value per share	$	38.53
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.45
C-Class:
Net assets	$	17,146,137
Capital shares outstanding		479,339
Net asset value per share	$	35.77
H-Class:
Net assets	$	95,958,079
Capital shares outstanding		2,490,415
Net asset value per share	$	38.53

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $240)	$	2,191,848
Interest		22,525
Income from securities lending, net		2,342
Total investment income		2,216,715
Expenses:
Management fees		989,258
Transfer agent and administrative fees		329,754
Distribution and service fees:
A-Class		34,477
C-Class		101,478
H-Class		269,908
Portfolio accounting fees		197,854
Registration fees		111,942
Custodian fees		15,130
Trustees’ fees*		10,275
Line of credit fees		2,297
Miscellaneous		40,121
Total expenses		2,102,494
Net investment income		114,221
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		39,509,580
Swap agreements		(4,547,529	)
Futures contracts		(175,185	)
Net realized gain		34,786,866
Net change in unrealized appreciation (depreciation) on:
Investments		(52,731,561	)
Swap agreements		211,723
Futures contracts		(513,929	)
Net change in unrealized appreciation (depreciation)		(53,033,767	)
Net realized and unrealized loss		(18,246,901	)
Net decrease in net assets resulting from operations	$	(18,132,680	)

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

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

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	114,221		$	261,293
Net realized gain on investments		34,786,866			7,172,036
Net change in unrealized appreciation (depreciation) on investments		(53,033,767	)		19,170,148
Net increase (decrease) in net assets resulting from operations		(18,132,680	)		26,603,477
Distributions to shareholders from:
Net investment income
A-Class		—			(17,679	)
C-Class		—			(8,817	)
H-Class		—			(133,918	)
Net realized gains
A-Class		—			(487,372	)
C-Class		—			(243,055	)
H-Class		—			(3,691,790	)
Total distributions to shareholders		—			(4,582,631	)
Capital share transactions:
Proceeds from sale of shares
A-Class		86,991,799			119,690,602
C-Class		18,595,194			50,549,094
H-Class		566,721,105			1,614,367,735
Distributions reinvested
A-Class		—			468,300
C-Class		—			244,609
H-Class		—			3,424,733
Cost of shares redeemed
A-Class		(98,050,170	)		(121,906,600	)
C-Class		(20,910,402	)		(47,582,225	)
H-Class		(710,345,719	)		(1,637,788,549	)
Net decrease from capital share transactions		(156,998,193	)		(18,532,301	)
Net increase (decrease) in net assets		(175,130,873	)		3,488,545
Net assets:
Beginning of period		303,609,510			300,120,965
End of period	$	128,478,637		$	303,609,510
Undistributed net investment income at end of period	$	198,819		$	84,598
Capital share activity:
Shares sold
A-Class		2,112,398			2,973,303
C-Class		483,054			1,356,402
H-Class		13,570,827			40,239,115
Shares issued from reinvestment of distributions
A-Class		—			11,383
C-Class		—			6,365
H-Class		—			83,226
Shares redeemed
A-Class		(2,390,293	)		(3,049,603	)
C-Class		(547,468	)		(1,274,767	)
H-Class		(17,230,722	)		(40,944,917	)
Net decrease in shares		(4,002,204	)		(599,493	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	41.40		$	37.78		$	31.55		$	28.20		$	26.41		$	23.18
Income (loss) from investment operations:
Net investment income (loss)b		.01			.04			.07			.06			.01			(.06	)
Net gain (loss) on investments (realized and unrealized)		(2.88	)		4.08			6.20			3.36			1.78			3.29
Total from investment operations		(2.87	)		4.12			6.27			3.42			1.79			3.23
Less distributions from:
Net investment income		—			(.02	)		(.04	)		(.07	)		—			(—	)d
Net realized gains		—			(.48	)		—			—			—			—
Total distributions		—			(.50	)		(.04	)		(.07	)		—			(—	)
Net asset value, end of period	$	38.53		$	41.40		$	37.78		$	31.55		$	28.20		$	26.41
Total Returnc		(6.93	%)		10.90	%		19.87	%		12.16	%		6.78	%		13.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,374		$	28,022		$	28,028		$	12,014		$	13,413		$	10,288
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.11	%		0.19	%		0.22	%		0.05	%		(0.25	%)
Total expenses		1.54	%		1.59	%		1.57	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		53	%		256	%		157	%		76	%		196	%		202	%

C-Class	Period Ended September 30, 2015a			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	$	38.58		$	35.51		$	29.87		$	26.91		$	25.41		$	22.50
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.23	)		(.19	)		(.14	)		(.20	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(2.69	)		3.80			5.87			3.17			1.70			3.18
Total from investment operations		(2.81	)		3.57			5.68			3.03			1.50			2.91
Less distributions from:
Net investment income		—			(.02	)		(.04	)		(.07	)		—			(—	)d
Net realized gains		—			(.48	)		—			—			—			—
Total distributions		—			(.50	)		(.04	)		(.07	)		—			(—	)d
Net asset value, end of period	$	35.77		$	38.58		$	35.51		$	29.87		$	26.91		$	25.41
Total Returnc		(7.28	%)		10.04	%		19.01	%		11.29	%		5.90	%		12.93	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,146		$	20,977		$	16,182		$	10,231		$	10,110		$	10,032
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.62	%)		(0.59	%)		(0.52	%)		(0.80	%)		(1.11	%)
Total expenses		2.29	%		2.34	%		2.32	%		2.28	%		2.26	%		2.29	%
Portfolio turnover rate		53	%		256	%		157	%		76	%		196	%		202	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	41.40		$	37.78		$	31.55		$	28.20		$	26.39		$	23.17
Income (loss) from investment operations:
Net investment income (loss)b		.03			.05			.05			.07			(.02	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(2.90	)		4.07			6.22			3.35			1.83			3.31
Total from investment operations		(2.87	)		4.12			6.27			3.42			1.81			3.22
Less distributions from:
Net investment income		—			(.02	)		(.04	)		(.07	)		—			(—	)d
Net realized gains		—			(.48	)		—			—			—			—
Total distributions		—			(.50	)		(.04	)		(.07	)		—			(—	)d
Net asset value, end of period	$	38.53		$	41.40		$	37.78		$	31.55		$	28.20		$	26.39
Total Returnc		(6.93	%)		10.90	%		19.87	%		12.16	%		6.86	%		13.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	95,958		$	254,610		$	255,912		$	265,358		$	240,847		$	249,090
Ratios to average net assets:
Net investment income (loss)		0.16	%		0.12	%		0.15	%		0.24	%		(0.07	%)		(0.37	%)
Total expenses		1.54	%		1.58	%		1.56	%		1.50	%		1.50	%		1.54	%
Portfolio turnover rate		53	%		256	%		157	%		76	%		196	%		202	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Distributions from net investment income (loss) are less than $0.01 per share.

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

FUND PROFILE (Unaudited) September 30, 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.

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 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 Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	33.9%
Fannie Mae	3.6%
Federal Farm Credit Bank	2.5%
Total	40.0%

“Largest Holdings” exclude any temporary cash or derivative investments.

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 33.9%
Guggenheim Strategy Fund I1		2,657,635	$	66,121,966
Total Mutual Funds
(Cost $66,155,604)				66,121,966

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 24.4%
Fannie Mae2
0.43% due 08/15/16	$	17,500,000	17,455,953
Federal Home Loan Bank3
0.15% due 12/02/15		7,000,000	6,998,677
0.40% due 07/15/16		3,200,000	3,193,216
Total Federal Home Loan Bank			10,191,893
Farmer Mac3
0.09% due 10/08/15		10,000,000	9,999,825
Freddie Mac2
0.15% due 12/04/15		10,000,000	9,998,040
Total Federal Agency Discount Notes
(Cost $47,617,527)			47,645,711
FEDERAL AGENCY NOTES†† - 6.1%
Fannie Mae2
0.20% due 09/08/17		7,000,000	6,997,634
Federal Farm Credit Bank3
0.18% due 08/01/17		5,000,000	4,996,955
Total Federal Agency Notes
(Cost $11,998,629)			11,994,589
REPURCHASE AGREEMENTS††,4 - 20.3%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		22,696,994	22,696,994
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		8,687,663	8,687,663

UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15	8,153,251		8,153,251
Total Repurchase Agreements
(Cost $39,537,908)			39,537,908
Total Investments - 84.7%
(Cost $165,309,668)		$	165,300,174
Other Assets & Liabilities, net - 15.3%			29,786,138
Total Net Assets - 100.0%		$	195,086,312

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2015 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $7,346,763)		77	$	121,484

	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2015 S&P 500 Index Swap, Terminating 10/27/155 (Notional Value $1,038,132)		541	$	5,693
Barclays Bank plc October 2015 S&P 500 Index Swap, Terminating 10/30/155 (Notional Value $31,170,266)		16,234		(624,487	)
Goldman Sachs International October 2015 S&P 500 Index Swap, Terminating 10/27/155 (Notional Value $154,600,031)		80,520		(3,091,568	)
(Total Notional Value $186,808,429)			$	(3,710,362	)

†	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 9.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
4	Repurchase Agreements — See Note 5.
5	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $59,616,156)	$	59,640,300
Investments in affiliated issuers, at value (cost $66,155,604)		66,121,966
Repurchase agreements, at value (cost $39,537,908)		39,537,908
Total investments (cost $165,309,668)		165,300,174
Segregated cash with broker		26,616,158
Unrealized appreciation on swap agreements		5,693
Receivables:
Fund shares sold		7,800,116
Dividends		37,454
Interest		1,756
Total assets		199,761,351
Liabilities:
Unrealized depreciation on swap agreements		3,716,055
Payable for:
Fund shares redeemed		513,628
Management fees		133,089
Variation margin		129,937
Securities purchased		37,019
Transfer agent and administrative fees		36,969
Swap settlement		33,929
Portfolio accounting fees		14,787
Distribution and service fees		9,190
Miscellaneous		50,436
Total liabilities		4,675,039
Commitments and contingent liabilities (Note 12)		—
Net assets	$	195,086,312
Net assets consist of:
Paid in capital	$	510,355,647
Accumulated net investment loss		(555,794	)
Accumulated net realized loss on investments		(311,115,169	)
Net unrealized depreciation on investments		(3,598,372	)
Net assets	$	195,086,312
Investor Class:
Net assets	$	161,956,216
Capital shares outstanding		10,592,590
Net asset value per share	$	15.29
Advisor Class:
Net assets	$	10,823,213
Capital shares outstanding		779,448
Net asset value per share	$	13.89
A-Class:
Net assets	$	13,008,108
Capital shares outstanding		914,319
Net asset value per share	$	14.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	14.94
C-Class:
Net assets	$	6,904,182
Capital shares outstanding		527,298
Net asset value per share	$	13.09
H-Class:
Net assets	$	2,394,593
Capital shares outstanding		168,245
Net asset value per share	$	14.23

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	124,228
Interest		34,622
Total investment income		158,850
Expenses:
Management fees		435,169
Transfer agent and administrative fees		120,880
Distribution and service fees:
Advisor Class		4,862
A-Class		8,436
C-Class		29,054
H-Class		656
Portfolio accounting fees		48,352
Custodian fees		5,571
Trustees’ fees*		2,581
Miscellaneous		59,083
Total expenses		714,644
Net investment loss		(555,794	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	10,431
Swap agreements		9,320,407
Futures contracts		72,531
Net realized gain		9,403,369
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		15,401
Investments in affiliated issuers		(33,638	)
Swap agreements		(3,269,813	)
Futures contracts		(2,060	)
Net change in unrealized appreciation (depreciation)		(3,290,110	)
Net realized and unrealized gain		6,113,259
Net increase in net assets resulting from operations	$	5,557,465

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

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(555,794	)	$	(1,035,920	)
Net realized gain (loss) on investments		9,403,369			(16,469,720	)
Net change in unrealized appreciation (depreciation) on investments		(3,290,110	)		345,985
Net increase (decrease) in net assets resulting from operations		5,557,465			(17,159,655	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		243,014,118			189,117,714
Advisor Class		17,261,482			77,331,876
A-Class		20,320,267			20,249,187
C-Class		7,761,388			8,073,633
H-Class		2,720,230			17,542,838	*
Cost of shares redeemed
Investor Class		(146,598,467	)		(194,157,539	)
Advisor Class		(8,788,344	)		(76,596,721	)
A-Class		(12,319,246	)		(19,772,383	)
C-Class		(6,266,312	)		(8,221,994	)
H-Class		(13,355,075	)		(4,506,875	)*
Net increase from capital share transactions		103,750,041			9,059,736
Net increase (decrease) in net assets		109,307,506			(8,099,919	)
Net assets:
Beginning of period		85,778,806			93,878,725
End of period	$	195,086,312		$	85,778,806
Accumulated net investment loss at end of period	$	(555,794	)	$	—
Capital share activity:
Shares sold
Investor Class		16,277,160			12,003,414
Advisor Class		1,268,355			5,473,674
A-Class		1,468,599			1,363,582
C-Class		618,568			595,844
H-Class		190,635			1,281,317	*
Shares redeemed
Investor Class		(9,848,126	)		(12,547,719	)
Advisor Class		(644,721	)		(5,517,118	)
A-Class		(904,425	)		(1,361,454	)
C-Class		(499,150	)		(610,462	)
H-Class		(985,211	)		(318,496	)*
Net increase in shares		6,941,684			362,582

* Since the commencement of operations: September 8, 2014.

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	14.59		$	16.82		$	21.03		$	24.61		$	28.50		$	34.38
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.17	)		(.25	)		(.30	)		(.38	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		.78			(2.06	)		(3.96	)		(3.28	)		(3.51	)		(5.47	)
Total from investment operations		.70			(2.23	)		(4.21	)		(3.58	)		(3.89	)		(5.88	)
Net asset value, end of period	$	15.29		$	14.59		$	16.82		$	21.03		$	24.61		$	28.50
Total Returnc		4.80	%		(13.26	%)		(20.02	%)		(14.55	%)		(13.65	%)		(17.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	161,956		$	60,745		$	79,172		$	106,158		$	112,334		$	118,410
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(1.07	%)		(1.35	%)		(1.27	%)		(1.31	%)		(1.22	%)
Total expensesd		1.39	%		1.41	%		1.42	%		1.41	%		1.41	%		1.44	%
Portfolio turnover rate		—			103	%		—			—			—			—

Advisor Class	Period Ended September 30, 2015a			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	$	13.28		$	15.36		$	19.31		$	22.71		$	26.44		$	32.06
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.22	)		(.32	)		(.39	)		(.48	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		.70			(1.86	)		(3.63	)		(3.01	)		(3.25	)		(5.08	)
Total from investment operations		.61			(2.08	)		(3.95	)		(3.40	)		(3.73	)		(5.62	)
Net asset value, end of period	$	13.89		$	13.28		$	15.36		$	19.31		$	22.71		$	26.44
Total Returnc		4.59	%		(13.54	%)		(20.46	%)		(14.97	%)		(14.11	%)		(17.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,823		$	2,069		$	3,061		$	9,775		$	5,978		$	6,434
Ratios to average net assets:
Net investment income (loss)		(1.37	%)		(1.58	%)		(1.85	%)		(1.77	%)		(1.81	%)		(1.72	%)
Total expensesd		1.71	%		1.91	%		1.93	%		1.90	%		1.91	%		1.93	%
Portfolio turnover rate		—			103	%		—			—			—			—

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2015a			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	$	13.59		$	15.71		$	19.69		$	23.10		$	26.82		$	32.43
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.19	)		(.28	)		(.34	)		(.42	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		.73			(1.93	)		(3.70	)		(3.07	)		(3.30	)		(5.13	)
Total from investment operations		.64			(2.12	)		(3.98	)		(3.41	)		(3.72	)		(5.61	)
Net asset value, end of period	$	14.23		$	13.59		$	15.71		$	19.69		$	23.10		$	26.82
Total Returnc		4.71	%		(13.49	%)		(20.21	%)		(14.76	%)		(13.87	%)		(17.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,008		$	4,758		$	5,468		$	5,912		$	7,915		$	5,029
Ratios to average net assets:
Net investment income (loss)		(1.31	%)		(1.32	%)		(1.58	%)		(1.52	%)		(1.56	%)		(1.47	%)
Total expensesd		1.64	%		1.66	%		1.68	%		1.65	%		1.66	%		1.68	%
Portfolio turnover rate		—			103	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			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	$	12.56		$	14.62		$	18.46		$	21.83		$	25.53		$	31.12
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.28	)		(.38	)		(.48	)		(.59	)		(.67	)
Net gain (loss) on investments (realized and unrealized)		.66			(1.78	)		(3.46	)		(2.89	)		(3.11	)		(4.92	)
Total from investment operations		.53			(2.06	)		(3.84	)		(3.37	)		(3.70	)		(5.59	)
Net asset value, end of period	$	13.09		$	12.56		$	14.62		$	18.46		$	21.83		$	25.53
Total Returnc		4.22	%		(14.09	%)		(20.80	%)		(15.44	%)		(14.49	%)		(17.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,904		$	5,121		$	6,177		$	7,041		$	7,870		$	11,817
Ratios to average net assets:
Net investment income (loss)		(2.06	%)		(2.07	%)		(2.34	%)		(2.27	%)		(2.31	%)		(2.23	%)
Total expensesd		2.39	%		2.41	%		2.42	%		2.40	%		2.42	%		2.44	%
Portfolio turnover rate		—			103	%		—			—			—			—

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

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 September 30, 2015a			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	13.59		$	14.35
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		.73			(.67	)
Total from investment operations		.64			(.76	)
Net asset value, end of period	$	14.23		$	13.59
Total Returnc		4.71	%		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,395		$	13,085
Ratios to average net assets:
Net investment income (loss)		(1.31	%)		(1.27	%)
Total expensesd		1.62	%		1.60	%
Portfolio turnover rate		—			103	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the class.

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

FUND PROFILE (Unaudited) September 30, 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.

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)
Guggenheim Strategy Fund I	23.6%
Apple, Inc.	7.6%
Microsoft Corp.	4.3%
Amazon.com, Inc.	2.9%
Google, Inc. — Class C	2.5%
Facebook, Inc. — Class A	2.5%
Google, Inc. — Class A	2.2%
Gilead Sciences, Inc.	1.7%
Intel Corp.	1.7%
Cisco Systems, Inc.	1.6%
Top Ten Total	50.6%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 57.5%
Technology - 21.7%
Apple, Inc.		1,221	$	134,677
Microsoft Corp.		1,713		75,817
Intel Corp.		1,018		30,682
QUALCOMM, Inc.		337		18,107
Texas Instruments, Inc.		220		10,894
Adobe Systems, Inc.*		107		8,798
Cognizant Technology Solutions Corp. — Class A*		131		8,202
Avago Technologies Ltd.		56		7,001
Broadcom Corp. — Class A		120		6,172
Intuit, Inc.		59		5,236
Activision Blizzard, Inc.		156		4,819
NXP Semiconductor N.V.*		54		4,702
Electronic Arts, Inc.*		67		4,539
Cerner Corp.*		74		4,437
Fiserv, Inc.*		50		4,330
Western Digital Corp.		49		3,892
Analog Devices, Inc.		67		3,779
Applied Materials, Inc.		257		3,776
Paychex, Inc.		77		3,668
Micron Technology, Inc.*		232		3,475
Skyworks Solutions, Inc.		41		3,453
Altera Corp.		65		3,255
Check Point Software Technologies Ltd.*		39		3,094
Seagate Technology plc		65		2,912
NVIDIA Corp.		115		2,835
Akamai Technologies, Inc.*		38		2,624
CA, Inc.		95		2,594
SanDisk Corp.		44		2,391
Citrix Systems, Inc.*		34		2,356
Xilinx, Inc.		55		2,332
Lam Research Corp.		34		2,221
Autodesk, Inc.*		48		2,119
Linear Technology Corp.		51		2,058
NetApp, Inc.		64		1,894
KLA-Tencor Corp.		34		1,700
Total Technology				384,841
Communications - 18.8%
Amazon.com, Inc.*		100		51,189
Google, Inc. — Class C*		74		45,023
Facebook, Inc. — Class A*		484		43,512
Google, Inc. — Class A*		62		39,579
Cisco Systems, Inc.		1,089		28,586
Comcast Corp. — Class A		453		25,766
Priceline Group, Inc.*		11		13,605
Netflix, Inc.*		91		9,397
Baidu, Inc. ADR*		59		8,107
Twenty-First Century Fox, Inc. — Class A		262		7,069
eBay, Inc.*		261		6,379
Yahoo!, Inc.*		202		5,840
Liberty Global plc*		131		5,374
Twenty-First Century Fox, Inc. — Class B		171		4,629
JD.com, Inc. ADR*		174		4,534
Comcast Corp. — Class A		79		4,522
Sirius XM Holdings, Inc.*		1,140		4,264
Charter Communications, Inc. — Class A*		24		4,220
Viacom, Inc. — Class B		74		3,193
Symantec Corp.		147		2,862
DISH Network Corp. — Class A*		48		2,800
Vodafone Group plc ADR		85		2,698
Liberty Global plc — Class A*		54		2,319
TripAdvisor, Inc.*		28		1,765
Liberty Media Corp. — Class C*		48		1,654
VimpelCom Ltd. ADR		376		1,547
Discovery Communications, Inc. — Class C*		59		1,433
Liberty Ventures*		29		1,170
Discovery Communications, Inc. — Class A*		32		833
Liberty Media Corp. — Class A*		22		786
Liberty Global plc LiLAC — Class C*		7		240
Liberty Global plc LiLAC — Class A*		3		101
Total Communications				334,996
Consumer, Non-cyclical - 10.9%
Gilead Sciences, Inc.		314		30,831
Amgen, Inc.		162		22,408
Kraft Heinz Co.		260		18,351
Celgene Corp.*		169		18,281
Biogen, Inc.*		50		14,591
Mondelez International, Inc. — Class A		345		14,445
Express Scripts Holding Co.*		145		11,739
Regeneron Pharmaceuticals, Inc.*		22		10,233
Automatic Data Processing, Inc.		100		8,036
Alexion Pharmaceuticals, Inc.*		48		7,507
Monster Beverage Corp.*		44		5,946
Illumina, Inc.*		31		5,450
Vertex Pharmaceuticals, Inc.*		52		5,415
Mylan N.V.*		105		4,227
BioMarin Pharmaceutical, Inc.*		35		3,686
Intuitive Surgical, Inc.*		8		3,677
Verisk Analytics, Inc. — Class A*		36		2,661
Whole Foods Market, Inc.		77		2,437
Henry Schein, Inc.*		18		2,389
Keurig Green Mountain, Inc.		33		1,721
Total Consumer, Non-cyclical				194,031
Consumer, Cyclical - 5.5%
Walgreens Boots Alliance, Inc.		234		19,445
Starbucks Corp.		318		18,075
Costco Wholesale Corp.		94		13,590
Tesla Motors, Inc.*		28		6,955
American Airlines Group, Inc.		144		5,592
O’Reilly Automotive, Inc.*		21		5,250
Ross Stores, Inc.		88		4,265
PACCAR, Inc.		76		3,965

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Marriott International, Inc. — Class A		57	$	3,887
Dollar Tree, Inc.*		50		3,333
Tractor Supply Co.		29		2,445
Liberty Interactive Corporation QVC Group — Class A*		92		2,413
Fastenal Co.		62		2,270
Bed Bath & Beyond, Inc.*		36		2,053
Staples, Inc.		138		1,619
Mattel, Inc.		73		1,537
Wynn Resorts Ltd.		22		1,169
Total Consumer, Cyclical				97,863
Industrial - 0.6%
SBA Communications Corp. — Class A*		27		2,828
Stericycle, Inc.*		18		2,508
CH Robinson Worldwide, Inc.		30		2,033
Expeditors International of Washington, Inc.		41		1,929
Garmin Ltd.		41		1,471
Total Industrial				10,769
Total Common Stocks
(Cost $987,849)				1,022,500
MUTUAL FUNDS† - 23.6%
Guggenheim Strategy Fund I1		16,850		419,224
Total Mutual Funds
(Cost $419,137)				419,224

	Face Amount
REPURCHASE AGREEMENTS††,2 - 6.8%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	69,675	69,675
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		26,670	26,670

UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15	25,029		25,029
Total Repurchase Agreements
(Cost $121,374)			121,374
Total Investments - 87.9%
(Cost $1,528,360)		$	1,563,098
Other Assets & Liabilities, net - 12.1%			214,356
Total Net Assets - 100.0%		$	1,777,454

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $332,980)		4	$	(6,658	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 NASDAQ-100 Index Swap, Terminating 10/30/153 (Notional Value $1,227,933)		294	$	22,800
Goldman Sachs International October 2015 NASDAQ–100 Index Swap, Terminating 10/27/153 (Notional Value $956,291)		229		17,747
(Total Notional Value $2,184,224)			$	40,547

*	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	Affiliated issuer — See Note 9.
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 Sector Classification in Other Information section.

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $987,849)	$	1,022,500
Investments in affiliated issuers, at value (cost $419,137)		419,224
Repurchase agreements, at value (cost $121,374)		121,374
Total investments (cost $1,528,360)		1,563,098
Segregated cash with broker		264,245
Unrealized appreciation on swap agreements		40,547
Cash		52
Receivables:
Variation margin		7,000
Swap settlement		1,856
Investment adviser		509
Fund shares sold		500
Dividends		372
Foreign taxes reclaim		5
Total assets		1,878,184
Liabilities:
Payable for:
Licensing fees		71,940
Management fees		1,358
Distribution and service fees		390
Transfer agent and administrative fees		377
Portfolio accounting fees		151
Securities purchased		96
Fund shares redeemed		51
Miscellaneous		26,367
Total liabilities		100,730
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,777,454
Net assets consist of:
Paid in capital	$	81,647,532
Accumulated net investment loss		(325,568	)
Accumulated net realized loss on investments		(79,613,137	)
Net unrealized appreciation on investments		68,627
Net assets	$	1,777,454
A-Class:
Net assets	$	173,473
Capital shares outstanding		3,627
Net asset value per share	$	47.83
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.22
C-Class:
Net assets	$	20,158
Capital shares outstanding		425
Net asset value per share	$	47.43
H-Class:
Net assets	$	1,583,823
Capital shares outstanding		32,457
Net asset value per share	$	48.80

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers	$	1,183,556
Dividends from securities of affiliated issuers		153,350
Interest		1,636
Total investment income		1,338,542
Expenses:
Management fees		1,109,155
Transfer agent and administrative fees		308,098
Distribution and service fees:
A-Class		501
C-Class		115
H-Class		307,569
Portfolio accounting fees		114,076
Custodian fees		14,313
Trustees’ fees*		6,680
Line of credit fees		960
Miscellaneous		184,624
Total expenses		2,046,091
Less:
Expenses waived by Adviser		(381,981	)
Net expenses		1,664,110
Net investment loss		(325,568	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(21,023,942	)
Investments in affiliated issuers		67,544
Swap agreements		(30,220,476	)
Futures contracts		(11,194,512	)
Net realized loss		(62,371,386	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		2,853,723
Investments in affiliated issuers		88
Swap agreements		(113,255	)
Futures contracts		(399,320	)
Net change in unrealized appreciation (depreciation)		2,341,236
Net realized and unrealized loss		(60,030,150	)
Net decrease in net assets resulting from operations	$	(60,355,718	)

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

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Period Ended March 31, 2015a
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(325,568	)	$	(340,343	)
Net realized loss on investments		(62,371,386	)		(17,241,751	)
Net change in unrealized appreciation (depreciation) on investments		2,341,236			(2,272,609	)
Net decrease in net assets resulting from operations		(60,355,718	)		(19,854,703	)
Capital share transactions:
Proceeds from sale of shares
A-Class		453,067			485,374
C-Class		36,142			14,050
H-Class		417,977,074			541,099,792
Cost of shares redeemed
A-Class		(781,129	)		(11,481	)
C-Class		(26,006	)		(50	)
H-Class		(698,663,140	)		(178,595,818	)
Net increase (decrease) from capital share transactions		(281,003,992	)		362,991,867
Net increase (decrease) in net assets		(341,359,710	)		343,137,164
Net assets:
Beginning of year		343,137,164			—
End of year	$	1,777,454		$	343,137,164
Accumulated net investment loss at end of year	$	(325,568	)	$	—
Capital share activity:
Shares sold
A-Class		8,607			9,226
C-Class		661			274
H-Class		7,070,236			10,481,242
Shares redeemed
A-Class		(13,978	)		(228	)
C-Class		(509	)		(1	)
H-Class		(13,681,793	)		(3,837,228	)
Net increase (decrease) in shares		(6,616,776	)		6,653,285

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

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

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 September 30, 2015a			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	51.68		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.06	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(3.79	)		1.75
Total from investment operations		(3.85	)		1.68
Net asset value, end of period	$	47.83		$	51.68
Total Returnf		(4.34	%)		3.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	173		$	465
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		(0.39	%)
Total expensesd		1.71	%		1.63	%
Net expensese, g		1.39	%		1.35	%
Portfolio turnover rate		179	%		84	%

C-Class	Period Ended September 30, 2015a			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	51.55		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.24	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(3.88	)		1.74
Total from investment operations		(4.12	)		1.55
Net asset value, end of period	$	47.43		$	51.55
Total Returnf		(5.10	%)		3.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20		$	14
Ratios to average net assets:
Net investment income (loss)		(0.90	%)		(1.13	%)
Total expensesd		2.58	%		2.43	%
Net expensese, g		2.26	%		2.13	%
Portfolio turnover rate		179	%		84	%

50 | THE RYDEX FUNDS SEMI-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 September 30, 2015a			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	51.57		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.07	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		(2.70	)		1.67
Total from investment operations		(2.77	)		1.57
Net asset value, end of period	$	48.80		$	51.57
Total Returnf		(2.40	%)		3.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,584		$	342,658
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		(0.60	%)
Total expensesd		1.66	%		1.64	%
Net expensese, g		1.35	%		1.35	%
Portfolio turnover rate		179	%		84	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: November 28, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	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	Total return does not reflect the impact of any applicable sales charge and has not been annualized.
g	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the periods ended.

	09/30/15	03/31/15
A–Class	1.35%	1.35%
C–Class	2.12%	2.10%
H–Class	1.35%	1.35%

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

FUND PROFILE (Unaudited) September 30, 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.

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	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 Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	27.8%
Total	27.8%

“Largest Holdings” exclude any temporary cash or derivative investments.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 27.8%
Guggenheim Strategy Fund I1		238,686	$	5,938,502
Total Mutual Funds
(Cost $5,941,393)				5,938,502

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 14.0%
Federal Farm Credit Bank2
0.18% due 08/01/17	$	2,000,000		1,998,782
Freddie Mac3
0.15% due 12/04/15		1,000,000		999,804
Total Federal Agency Discount Notes
(Cost $2,999,733)				2,998,586
REPURCHASE AGREEMENTS††,4 - 46.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		5,715,328		5,715,328
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		2,187,640		2,187,640
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		2,053,070		2,053,070
Total Repurchase Agreements
(Cost $9,956,038)				9,956,038
Total Investments - 88.4%
(Cost $18,897,164)			$	18,893,126
Other Assets & Liabilities, net - 11.6%				2,488,546
Total Net Assets - 100.0%			$	21,381,672

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $832,450)		10	$	(17,520	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2015 NASDAQ-100 Index Swap, Terminating 10/27/155 (Notional Value $1,835,083)		439	$	19,011
Barclays Bank plc October 2015 NASDAQ-100 Index Swap, Terminating 10/30/155 (Notional Value $7,413,698)		1,773		(141,357	)
Goldman Sachs International October 2015 NASDAQ-100 Index Swap, Terminating 10/27/155 (Notional Value $11,262,720)		2,694		(209,141	)
(Total Notional Value $20,511,501)			$	(331,487	)

†	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 9.
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	Repurchase Agreements — See Note 5.
5	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $2,999,733)	$	2,998,586
Investments in affiliated issuers, at value (cost $5,941,393)		5,938,502
Repurchase agreements, at value (cost $9,956,038)		9,956,038
Total investments (cost $18,897,164)		18,893,126
Segregated cash with broker		2,753,268
Unrealized appreciation on swap agreements		19,011
Receivables:
Fund shares sold		229,165
Dividends		5,758
Interest		322
Total assets		21,900,650
Liabilities:
Unrealized depreciation on swap agreements		350,498
Payable for:
Fund shares redeemed		62,569
Management fees		33,218
Variation margin		17,500
Swap settlement		13,868
Transfer agent and administrative fees		9,227
Distribution and service fees		7,158
Securities purchased		5,624
Portfolio accounting fees		3,691
Miscellaneous		15,625
Total liabilities		518,978
Commitments and contingent liabilities (Note 12)		—
Net assets	$	21,381,672
Net assets consist of:
Paid in capital	$	76,584,827
Accumulated net investment loss		(195,613	)
Accumulated net realized loss on investments		(54,654,497	)
Net unrealized depreciation on investments		(353,045	)
Net assets	$	21,381,672
Investor Class:
Net assets	$	12,884,078
Capital shares outstanding		482,884
Net asset value per share	$	26.68
Advisor Class:
Net assets	$	2,231,827
Capital shares outstanding		89,211
Net asset value per share	$	25.02
A-Class:
Net assets	$	1,316,816
Capital shares outstanding		50,835
Net asset value per share	$	25.90
Maximum offering price per share (Net asset value divided by 95.25%)	$	27.19
C-Class:
Net assets	$	1,697,164
Capital shares outstanding		74,612
Net asset value per share	$	22.75
H-Class:
Net assets	$	3,251,787
Capital shares outstanding		126,469
Net asset value per share	$	25.71

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	22,628
Interest		3,853
Total investment income		26,481
Expenses:
Management fees		107,146
Transfer agent and administrative fees		29,763
Distribution and service fees:
Advisor Class		610
A-Class		12,579
C-Class		6,991
H-Class		1,560
Portfolio accounting fees		11,905
Custodian fees		1,397
Trustees’ fees*		479
Line of credit fees		10
Miscellaneous		18,906
Total expenses		191,346
Net investment loss		(164,865	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers	$	(5,067	)
Swap agreements		(2,804,495	)
Futures contracts		59,287
Net realized loss		(2,750,275	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(1,378	)
Investments in affiliated issuers		(2,891	)
Swap agreements		(304,095	)
Futures contracts		(22,010	)
Net change in unrealized appreciation (depreciation)		(330,374	)
Net realized and unrealized loss		(3,080,649	)
Net decrease in net assets resulting from operations	$	(3,245,514	)

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

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(164,865	)	$	(146,491	)
Net realized loss on investments		(2,750,275	)		(2,818,916	)
Net change in unrealized appreciation (depreciation) on investments		(330,374	)		(42,996	)
Net decrease in net assets resulting from operations		(3,245,514	)		(3,008,403	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		99,157,546			125,263,815
Advisor Class		20,257,198			22,352,580
A-Class		225,071,081			10,300,215
C-Class		3,009,885			6,446,046
H-Class		16,289,101			700,911
Cost of shares redeemed
Investor Class		(92,633,090	)		(123,319,554	)
Advisor Class		(18,148,064	)		(22,218,407	)
A-Class		(221,590,111	)		(9,553,897	)
C-Class		(2,346,224	)		(5,751,807	)
H-Class		(13,219,211	)		(348,024	)
Net increase from capital share transactions		15,848,111			3,871,878
Net increase in net assets		12,602,597			863,475
Net assets:
Beginning of period		8,779,075			7,915,600
End of period	$	21,381,672		$	8,779,075
Accumulated net investment loss at end of period	$	(195,613	)	$	(30,748	)
Capital share activity:
Shares sold
Investor Class		3,798,809			4,196,223
Advisor Class		840,367			816,404
A-Class		8,777,443			374,065
C-Class		140,193			266,428
H-Class		639,822			25,422	*
Shares redeemed
Investor Class		(3,574,606	)		(4,144,984	)
Advisor Class		(753,416	)		(817,928	)
A-Class		(8,749,018	)		(363,273	)
C-Class		(109,758	)		(241,845	)
H-Class		(526,518	)		(12,256	)*
Net increase in shares		483,318			98,256

* Since the commencement of operations: September 18, 2014.

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Year Ended March 31, 2011f
Per Share Data
Net asset value, beginning of period	$	26.37		$	33.09		$	43.91		$	46.95		$	59.62		$	75.34
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.33	)		(.54	)		(.60	)		(.80	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		.46			(6.39	)		(10.28	)		(2.44	)		(11.87	)		(14.82	)
Total from investment operations		.31			(6.72	)		(10.82	)		(3.04	)		(12.67	)		(15.72	)
Net asset value, end of period	$	26.68		$	26.37		$	33.09		$	43.91		$	46.95		$	59.62
Total Returnc		1.18	%		(20.31	%)		(24.62	%)		(6.50	%)		(21.22	%)		(20.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,884		$	6,821		$	6,865		$	7,709		$	8,792		$	32,978
Ratios to average net assets:
Net investment income (loss)		(1.16	%)		(1.14	%)		(1.44	%)		(1.32	%)		(1.38	%)		(1.30	%)
Total expensesd		1.42	%		1.46	%		1.46	%		1.44	%		1.45	%		1.47	%
Portfolio turnover rate		233	%		149	%		—			—			—			—

Advisor Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Year Ended March 31, 2011f
Per Share Data
Net asset value, beginning of period	$	24.75		$	31.26		$	41.85		$	45.01		$	57.15		$	72.70
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.48	)		(.73	)		(.80	)		(1.05	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		.45			(6.03	)		(9.86	)		(2.36	)		(11.09	)		(14.35	)
Total from investment operations		.27			(6.51	)		(10.59	)		(3.16	)		(12.14	)		(15.55	)
Net asset value, end of period	$	25.02		$	24.75		$	31.26		$	41.85		$	45.01		$	57.15
Total Returnc		1.13	%		(20.86	%)		(25.30	%)		(7.00	%)		(21.26	%)		(21.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,232		$	56		$	118		$	2,171		$	207		$	642
Ratios to average net assets:
Net investment income (loss)		(1.49	%)		(1.68	%)		(1.93	%)		(1.83	%)		(1.91	%)		(1.80	%)
Total expensesd		1.72	%		1.96	%		1.96	%		1.95	%		1.95	%		1.97	%
Portfolio turnover rate		233	%		149	%		—			—			—			—

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Year Ended March 31, 2011f
Per Share Data
Net asset value, beginning of period	$	25.44		$	32.00		$	42.61		$	45.77		$	58.30		$	73.88
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.37	)		(.60	)		(.70	)		(.90	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		.65			(6.19	)		(10.01	)		(2.46	)		(11.63	)		(14.53	)
Total from investment operations		.46			(6.56	)		(10.61	)		(3.16	)		(12.53	)		(15.58	)
Net asset value, end of period	$	25.90		$	25.44		$	32.00		$	42.61		$	45.77		$	58.30
Total Returnc		1.81	%		(20.50	%)		(24.88	%)		(6.89	%)		(21.53	%)		(21.11	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,317		$	570		$	372		$	183		$	474		$	946
Ratios to average net assets:
Net investment income (loss)		(1.51	%)		(1.35	%)		(1.69	%)		(1.56	%)		(1.62	%)		(1.54	%)
Total expensesd		1.68	%		1.71	%		1.71	%		1.68	%		1.69	%		1.72	%
Portfolio turnover rate		233	%		149	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f			Year Ended March 31, 2011f
Per Share Data
Net asset value, beginning of period	$	22.58		$	28.63		$	38.42		$	41.58		$	53.34		$	68.10
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.53	)		(.80	)		(.95	)		(1.20	)		(1.45	)
Net gain (loss) on investments (realized and unrealized)		.41			(5.52	)		(8.99	)		(2.21	)		(10.56	)		(13.31	)
Total from investment operations		.17			(6.05	)		(9.79	)		(3.16	)		(11.76	)		(14.76	)
Net asset value, end of period	$	22.75		$	22.58		$	28.63		$	38.42		$	41.58		$	53.34
Total Returnc		0.75	%		(21.13	%)		(25.44	%)		(7.58	%)		(22.12	%)		(21.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,697		$	998		$	561		$	678		$	752		$	2,435
Ratios to average net assets:
Net investment income (loss)		(2.15	%)		(2.12	%)		(2.44	%)		(2.32	%)		(2.37	%)		(2.29	%)
Total expensesd		2.42	%		2.46	%		2.46	%		2.44	%		2.45	%		2.47	%
Portfolio turnover rate		233	%		149	%		—			—			—			—

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	25.44		$	27.50
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		.45			(1.86	)
Total from investment operations		.27			(2.06	)
Net asset value, end of period	$	25.71		$	25.44
Total Returnc		1.06	%		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,252		$	335
Ratios to average net assets:
Net investment income (loss)		(1.44	%)		(1.35	%)
Total expensesd		1.68	%		1.68	%
Portfolio turnover rate		233	%		149	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
f	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restate to reflect a 1:5 reverse share split effective February 21, 2014.

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

FUND PROFILE (Unaudited) September 30, 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.

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	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	6.8%
Church & Dwight Company, Inc.	0.6%
Alaska Air Group, Inc.	0.5%
Foot Locker, Inc.	0.5%
Jarden Corp.	0.5%
Hologic, Inc.	0.5%
Extra Space Storage, Inc.	0.5%
Federal Realty Investment Trust	0.5%
HollyFrontier Corp.	0.5%
UDR, Inc.	0.5%
Top Ten Total	11.4%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 77.2%
Financial - 20.0%
Extra Space Storage, Inc.		1,165	$	89,891
Federal Realty Investment Trust		656		89,510
UDR, Inc.		2,485		85,682
New York Community Bancorp, Inc.		4,213		76,087
Everest Re Group Ltd.		419		72,629
Alleghany Corp.*		151		70,685
HCC Insurance Holdings, Inc.		907		70,265
Arthur J Gallagher & Co.		1,655		68,318
Signature Bank*		482		66,303
Duke Realty Corp.		3,274		62,369
Jones Lang LaSalle, Inc.		426		61,246
Camden Property Trust		824		60,894
Raymond James Financial, Inc.		1,215		60,300
Mid-America Apartment Communities, Inc.		715		58,537
Alexandria Real Estate Equities, Inc.		686		58,083
Reinsurance Group of America, Inc. — Class A		630		57,072
Kilroy Realty Corp.		874		56,950
SVB Financial Group*		488		56,383
Regency Centers Corp.		893		55,500
Omega Healthcare Investors, Inc.		1,534		53,920
CBOE Holdings, Inc.		785		52,658
East West Bancorp, Inc.		1,364		52,405
WR Berkley Corp.		936		50,890
American Financial Group, Inc.		681		46,928
RenaissanceRe Holdings Ltd.		436		46,356
National Retail Properties, Inc.		1,275		46,244
StanCorp Financial Group, Inc.		401		45,794
Liberty Property Trust		1,421		44,776
PacWest Bancorp		968		41,440
Home Properties, Inc.		550		41,113
Lamar Advertising Co. — Class A		777		40,544
City National Corp.		460		40,508
First American Financial Corp.		1,030		40,242
Taubman Centers, Inc.		577		39,859
American Campus Communities, Inc.		1,065		38,596
BioMed Realty Trust, Inc.		1,916		38,282
Douglas Emmett, Inc.		1,318		37,853
Eaton Vance Corp.		1,114		37,230
Synovus Financial Corp.		1,252		37,059
Hospitality Properties Trust		1,437		36,758
Senior Housing Properties Trust		2,251		36,466
Old Republic International Corp.		2,290		35,816
Weingarten Realty Investors		1,081		35,792
Endurance Specialty Holdings Ltd.		574		35,031
Commerce Bancshares, Inc.		761		34,671
Highwoods Properties, Inc.		893		34,604
First Niagara Financial Group, Inc.		3,365		34,357
Brown & Brown, Inc.		1,109		34,346
CNO Financial Group, Inc.		1,823		34,291
Umpqua Holdings Corp.		2,090		34,067
Cullen/Frost Bankers, Inc.		527		33,507
Corrections Corporation of America		1,111		32,819
Hanover Insurance Group, Inc.		419		32,556
Bank of the Ozarks, Inc.		741		32,426
Sovran Self Storage, Inc.		340		32,062
First Horizon National Corp.		2,219		31,465
CoreLogic, Inc.*		845		31,459
Webster Financial Corp.		872		31,069
Prosperity Bancshares, Inc.		624		30,645
LaSalle Hotel Properties		1,073		30,462
Tanger Factory Outlet Centers, Inc.		909		29,970
SLM Corp.*		4,039		29,889
FirstMerit Corp.		1,572		27,777
Stifel Financial Corp.*		658		27,702
Waddell & Reed Financial, Inc. — Class A		794		27,607
Aspen Insurance Holdings Ltd.		576		26,767
Rayonier, Inc.		1,194		26,352
Bank of Hawaii Corp.		413		26,221
Federated Investors, Inc. — Class B		903		26,097
Care Capital Properties, Inc.		784		25,817
Associated Banc-Corp.		1,424		25,589
TCF Financial Corp.		1,604		24,317
Cathay General Bancorp		728		21,811
Valley National Bancorp		2,207		21,717
Primerica, Inc.		470		21,183
WP GLIMCHER, Inc.		1,757		20,487
Communications Sales & Leasing, Inc.		1,142		20,442
Washington Federal, Inc.		891		20,270
Fulton Financial Corp.		1,659		20,074
Hancock Holding Co.		740		20,017
BancorpSouth, Inc.		827		19,658
Janus Capital Group, Inc.		1,398		19,013
Urban Edge Properties		876		18,913
Corporate Office Properties Trust		896		18,843
WisdomTree Investments, Inc.		1,086		17,517
Mercury General Corp.		345		17,426
Equity One, Inc.		700		17,038
Kemper Corp.		462		16,341
Mack-Cali Realty Corp.		845		15,954
Alexander & Baldwin, Inc.		436		14,968
Trustmark Corp.		641		14,852
International Bancshares Corp.		529		13,241
Potlatch Corp.		386		11,113
Total Financial				3,559,053
Consumer, Non-cyclical - 13.4%
Church & Dwight Company, Inc.		1,242		104,204
Hologic, Inc.*		2,325		90,976
Towers Watson & Co. — Class A		657		77,119
Global Payments, Inc.		618		70,903
Cooper Companies, Inc.		461		68,625
MEDNAX, Inc.*		892		68,497
ResMed, Inc.		1,332		67,879
WhiteWave Foods Co. — Class A*		1,667		66,930
Gartner, Inc.*		787		66,053

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
IDEXX Laboratories, Inc.*		872	$	64,746
SEI Investments Co.		1,321		63,712
Centene Corp.*		1,129		61,226
ManpowerGroup, Inc.		728		59,616
Ingredion, Inc.		677		59,109
United Therapeutics Corp.*		432		56,696
Service Corporation International		1,900		51,490
Hain Celestial Group, Inc.*		973		50,207
Sirona Dental Systems, Inc.*		530		49,470
Teleflex, Inc.		394		48,939
Edgewell Personal Care Co.		590		48,144
Community Health Systems, Inc.*		1,120		47,902
Health Net, Inc.*		733		44,141
Flowers Foods, Inc.		1,754		43,394
VCA, Inc.*		770		40,541
Align Technology, Inc.*		691		39,221
West Pharmaceutical Services, Inc.		683		36,964
STERIS Corp.		567		36,838
WellCare Health Plans, Inc.*		418		36,023
Post Holdings, Inc.*		576		34,042
Live Nation Entertainment, Inc.*		1,382		33,223
Thoratec Corp.*		520		32,895
Bio-Techne Corp.		352		32,546
PAREXEL International Corp.*		525		32,508
WEX, Inc.*		367		31,870
TreeHouse Foods, Inc.*		408		31,738
LifePoint Health, Inc.*		421		29,849
RR Donnelley & Sons Co.		1,979		28,814
Charles River Laboratories International, Inc.*		444		28,203
Hill-Rom Holdings, Inc.		535		27,815
Molina Healthcare, Inc.*		388		26,714
Deluxe Corp.		474		26,421
Bio-Rad Laboratories, Inc. — Class A*		196		26,325
Graham Holdings Co. — Class B		43		24,811
Rollins, Inc.		891		23,941
United Natural Foods, Inc.*		475		23,042
Catalent, Inc.*		933		22,672
Aaron’s, Inc.		613		22,135
CEB, Inc.		318		21,733
Akorn, Inc.*		760		21,664
Boston Beer Company, Inc. — Class A*		92		19,376
Owens & Minor, Inc.		598		19,100
Sotheby’s		587		18,772
SUPERVALU, Inc.*		2,512		18,036
Lancaster Colony Corp.		184		17,936
FTI Consulting, Inc.*		397		16,479
Dean Foods Co.		895		14,785
DeVry Education Group, Inc.		542		14,748
Avon Products, Inc.		4,128		13,416
Halyard Health, Inc.*		442		12,570
Rent-A-Center, Inc.		503		12,198
Apollo Education Group, Inc. — Class A*		956		10,573
Tootsie Roll Industries, Inc.		169		5,288
Total Consumer, Non-cyclical				2,395,803
Industrial - 12.7%
Wabtec Corp.		917		80,742
Mettler-Toledo International, Inc.*		263		74,887
Acuity Brands, Inc.		413		72,515
Fortune Brands Home & Security, Inc.		1,517		72,012
Waste Connections, Inc.		1,170		56,838
Packaging Corporation of America		927		55,768
Avnet, Inc.		1,275		54,416
Carlisle Companies, Inc.		619		54,088
IDEX Corp.		734		52,334
Keysight Technologies, Inc.*		1,606		49,529
Arrow Electronics, Inc.*		895		49,476
Huntington Ingalls Industries, Inc.		453		48,539
AO Smith Corp.		718		46,806
B/E Aerospace, Inc.		1,007		44,208
Lennox International, Inc.		380		43,065
Gentex Corp.		2,777		43,044
Jabil Circuit, Inc.		1,838		41,116
Hubbell, Inc. — Class B		481		40,861
Old Dominion Freight Line, Inc.*		663		40,444
Orbital ATK, Inc.		560		40,247
Trimble Navigation Ltd.*		2,438		40,032
AECOM*		1,432		39,394
AptarGroup, Inc.		595		39,247
Zebra Technologies Corp. — Class A*		494		37,816
Graco, Inc.		547		36,665
Bemis Company, Inc.		924		36,563
Sonoco Products Co.		957		36,117
Nordson Corp.		542		34,113
Lincoln Electric Holdings, Inc.		646		33,870
Donaldson Company, Inc.		1,191		33,443
Trinity Industries, Inc.		1,465		33,212
AGCO Corp.		711		33,154
Eagle Materials, Inc.		478		32,705
Kirby Corp.*		519		32,152
Teledyne Technologies, Inc.*		336		30,341
Genesee & Wyoming, Inc. — Class A*		505		29,835
FEI Co.		394		28,778
Cognex Corp.		826		28,390
ITT Corp.		848		28,349
Oshkosh Corp.		743		26,993
National Instruments Corp.		965		26,817
Landstar System, Inc.		413		26,213
Con-way, Inc.		543		25,765
Regal Beloit Corp.		425		23,991
Tech Data Corp.*		335		22,948
Energizer Holdings, Inc.		590		22,839
KBR, Inc.		1,369		22,808
CLARCOR, Inc.		475		22,648
Clean Harbors, Inc.*		504		22,161
Woodward, Inc.		543		22,100

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Crane Co.		468	$	21,813
Esterline Technologies Corp.*		292		20,992
Valmont Industries, Inc.		220		20,876
Silgan Holdings, Inc.		384		19,983
Triumph Group, Inc.		468		19,693
Louisiana-Pacific Corp.*		1,353		19,267
Timken Co.		697		19,161
Belden, Inc.		405		18,909
Kennametal, Inc.		753		18,742
Terex Corp.		1,029		18,460
GATX Corp.		410		18,102
KLX, Inc.*		500		17,870
Knowles Corp.*		838		15,444
Vishay Intertechnology, Inc.		1,284		12,442
MSA Safety, Inc.		301		12,031
Granite Construction, Inc.		373		11,067
Werner Enterprises, Inc.		423		10,617
Greif, Inc. — Class A		244		7,786
Total Industrial				2,273,649
Consumer, Cyclical - 11.1%
Alaska Air Group, Inc.		1,207		95,897
Foot Locker, Inc.		1,321		95,073
Jarden Corp.*		1,881		91,943
LKQ Corp.*		2,892		82,017
JetBlue Airways Corp.*		2,985		76,923
Polaris Industries, Inc.		583		69,884
Williams-Sonoma, Inc.		799		61,004
Domino’s Pizza, Inc.		521		56,221
NVR, Inc.*		36		54,908
Skechers U.S.A., Inc. — Class A*		405		54,302
Toll Brothers, Inc.*		1,538		52,661
Carter’s, Inc.		495		44,867
Panera Bread Co. — Class A*		231		44,678
Dunkin’ Brands Group, Inc.		903		44,247
Dick’s Sporting Goods, Inc.		888		44,053
Tempur Sealy International, Inc.*		587		41,929
Brunswick Corp.		872		41,760
Ingram Micro, Inc. — Class A		1,478		40,261
Casey’s General Stores, Inc.		370		38,080
Toro Co.		519		36,610
Buffalo Wild Wings, Inc.*		180		34,817
Copart, Inc.*		1,038		34,150
Cracker Barrel Old Country Store, Inc.		227		33,433
Cinemark Holdings, Inc.		1,000		32,490
Office Depot, Inc.*		4,678		30,033
Brinker International, Inc.		570		30,022
Watsco, Inc.		244		28,909
MSC Industrial Direct Company, Inc. — Class A		459		28,013
JC Penney Company, Inc.*		2,897		26,913
Jack in the Box, Inc.		347		26,733
American Eagle Outfitters, Inc.		1,705		26,649
Vista Outdoor, Inc.*		599		26,614
Scotts Miracle-Gro Co. — Class A		430		26,153
World Fuel Services Corp.		681		24,380
Dana Holding Corp.		1,520		24,138
CST Brands, Inc.		717		24,134
Big Lots, Inc.		492		23,577
Tupperware Brands Corp.		473		23,409
Kate Spade & Co.*		1,211		23,142
Cheesecake Factory, Inc.		428		23,095
Ascena Retail Group, Inc.*		1,625		22,604
Thor Industries, Inc.		432		22,378
Cabela’s, Inc.*		473		21,569
Chico’s FAS, Inc.		1,321		20,779
Wendy’s Co.		2,202		19,047
TRI Pointe Group, Inc.*		1,380		18,064
HNI Corp.		421		18,061
Deckers Outdoor Corp.*		310		17,999
HSN, Inc.		306		17,515
Herman Miller, Inc.		567		16,352
Abercrombie & Fitch Co. — Class A		660		13,985
Guess?, Inc.		618		13,200
DreamWorks Animation SKG, Inc. — Class A*		673		11,744
KB Home		864		11,707
MDC Holdings, Inc.		371		9,713
International Speedway Corp. — Class A		253		8,025
Total Consumer, Cyclical				1,980,864
Technology - 8.0%
ANSYS, Inc.*		855		75,360
CDK Global, Inc.		1,518		72,530
Synopsys, Inc.*		1,479		68,300
Broadridge Financial Solutions, Inc.		1,122		62,102
Fortinet, Inc.*		1,380		58,622
Cadence Design Systems, Inc.*		2,763		57,139
MSCI, Inc. — Class A		936		55,655
Jack Henry & Associates, Inc.		768		53,460
Ultimate Software Group, Inc.*		271		48,512
Tyler Technologies, Inc.*		321		47,929
Manhattan Associates, Inc.*		696		43,361
MAXIMUS, Inc.		625		37,225
Teradyne, Inc.		1,999		36,002
PTC, Inc.*		1,083		34,374
Solera Holdings, Inc.		636		34,344
NCR Corp.*		1,497		34,057
NetScout Systems, Inc.*		955		33,778
DST Systems, Inc.		320		33,645
Atmel Corp.		3,968		32,022
VeriFone Systems, Inc.*		1,084		30,059
Integrated Device Technology, Inc.*		1,406		28,542
Synaptics, Inc.*		345		28,449
Rackspace Hosting, Inc.*		1,147		28,308
Cypress Semiconductor Corp.*		3,179		27,085
IPG Photonics Corp.*		345		26,210
Leidos Holdings, Inc.		608		25,116
Fair Isaac Corp.		295		24,928
SolarWinds, Inc.*		632		24,800

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Cree, Inc.*		980	$	23,745
ACI Worldwide, Inc.*		1,117		23,591
Mentor Graphics Corp.		945		23,275
Allscripts Healthcare Solutions, Inc.*		1,791		22,208
Convergys Corp.		932		21,539
Diebold, Inc.		616		18,338
Lexmark International, Inc. — Class A		584		16,924
Science Applications International Corp.		397		15,963
Silicon Laboratories, Inc.*		379		15,744
Fairchild Semiconductor International, Inc. — Class A*		1,095		15,374
Intersil Corp. — Class A		1,253		14,660
Acxiom Corp.*		739		14,603
CommVault Systems, Inc.*		401		13,618
3D Systems Corp.*		1,009		11,654
Advanced Micro Devices, Inc.*		5,985		10,294
Rovi Corp.*		824		8,644
Total Technology				1,432,088
Utilities - 3.8%
Alliant Energy Corp.		1,074		62,817
UGI Corp.		1,638		57,036
Atmos Energy Corp.		961		55,911
OGE Energy Corp.		1,894		51,820
Westar Energy, Inc.		1,339		51,471
Aqua America, Inc.		1,677		44,390
National Fuel Gas Co.		802		40,084
Great Plains Energy, Inc.		1,464		39,557
Vectren Corp.		784		32,936
Questar Corp.		1,666		32,337
MDU Resources Group, Inc.		1,850		31,820
IDACORP, Inc.		477		30,867
Cleco Corp.		574		30,560
Hawaiian Electric Industries, Inc.		1,019		29,235
WGL Holdings, Inc.		472		27,220
ONE Gas, Inc.		494		22,393
PNM Resources, Inc.		755		21,178
Black Hills Corp.		425		17,570
Talen Energy Corp.*		609		6,151
Total Utilities				685,353
Basic Materials - 3.5%
Ashland, Inc.		641		64,498
RPM International, Inc.		1,265		52,990
Valspar Corp.		701		50,388
Cytec Industries, Inc.		678		50,070
Albemarle Corp.		1,064		46,922
Steel Dynamics, Inc.		2,295		39,428
Reliance Steel & Aluminum Co.		697		37,645
NewMarket Corp.		99		35,343
Royal Gold, Inc.		618		29,034
Sensient Technologies Corp.		435		26,666
Compass Minerals International, Inc.		320		25,078
PolyOne Corp.		841		24,675
Domtar Corp.		596		21,307
Cabot Corp.		597		18,841
Minerals Technologies, Inc.		330		15,893
Commercial Metals Co.		1,096		14,851
Allegheny Technologies, Inc.		1,036		14,690
United States Steel Corp.		1,387		14,453
Carpenter Technology Corp.		470		13,992
Olin Corp.		735		12,355
Worthington Industries, Inc.		446		11,810
Chemours Co.		1,716		11,103
Total Basic Materials				632,032
Energy - 2.8%
HollyFrontier Corp.		1,788		87,325
Energen Corp.		747		37,245
Oceaneering International, Inc.		928		36,452
Gulfport Energy Corp.*		1,026		30,452
Western Refining, Inc.		671		29,605
Nabors Industries Ltd.		2,767		26,149
Noble Corporation plc		2,295		25,039
SunEdison, Inc.*		2,988		21,454
Dril-Quip, Inc.*		367		21,367
Murphy USA, Inc.*		382		20,991
SM Energy Co.		644		20,634
QEP Resources, Inc.		1,525		19,108
Rowan Companies plc — Class A		1,183		19,105
Patterson-UTI Energy, Inc.		1,396		18,343
Superior Energy Services, Inc.		1,429		18,048
NOW, Inc.*		1,016		15,037
WPX Energy, Inc.*		2,218		14,683
Oil States International, Inc.*		486		12,699
Denbury Resources, Inc.		3,371		8,225
Atwood Oceanics, Inc.		552		8,175
California Resources Corp.		2,968		7,717
Helix Energy Solutions Group, Inc.*		934		4,474
Total Energy				502,327
Communications - 1.9%
FactSet Research Systems, Inc.		393		62,805
AMC Networks, Inc. — Class A*		577		42,219
ARRIS Group, Inc.*		1,279		33,216
Ciena Corp.*		1,137		23,559
John Wiley & Sons, Inc. — Class A		468		23,414
Telephone & Data Systems, Inc.		894		22,314
Time, Inc.		1,041		19,831
Cable One, Inc.*		42		17,616
InterDigital, Inc.		341		17,255
Plantronics, Inc.		334		16,984
Meredith Corp.		357		15,201
New York Times Co. — Class A		1,201		14,184
NeuStar, Inc. — Class A*		516		14,040

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Polycom, Inc.*		1,265	$	13,257
Total Communications				335,895
Total Common Stocks
(Cost $10,431,205)				13,797,064
MUTUAL FUNDS† - 6.8%
Guggenheim Strategy Fund I1		49,164		1,223,212
Total Mutual Funds
(Cost $1,222,409)				1,223,212

	Face Amount
REPURCHASE AGREEMENTS††,2 - 6.9%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	708,444		708,444
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		271,169		271,169
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		254,489		254,489
Total Repurchase Agreements
(Cost $1,234,102)				1,234,102
Total Investments - 90.9%
(Cost $12,887,716)			$	16,254,378
Other Assets & Liabilities, net - 9.1%				1,632,764
Total Net Assets - 100.0%			$	17,887,142

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $1,225,890)		9	$	(7,450	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 S&P MidCap 400 Index Swap, Terminating 10/30/153 (Notional Value $5,426,240)		3,964	$	64,834
Goldman Sachs International October 2015 S&P MidCap 400 Index Swap, Terminating 10/27/153 (Notional Value $473,969)		346		5,704
Credit Suisse Capital, LLC October 2015 S&P MidCap 400 Index Swap, Terminating 10/27/153 (Notional Value $5,954,689)		4,350		(80,596	)
(Total Notional Value $11,854,898)			$	(10,058	)

*	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	Affiliated issuer — See Note 9.
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
	See Sector Classification in Other Information section.

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $10,431,205)	$	13,797,064
Investments in affiliated issuers, at value (cost $1,222,409)		1,223,212
Repurchase agreements, at value (cost $1,234,102)		1,234,102
Total investments (cost $12,887,716)		16,254,378
Segregated cash with broker		1,527,059
Unrealized appreciation on swap agreements		70,538
Cash		499
Receivables:
Fund shares sold		1,034,347
Dividends		14,069
Variation margin		7,478
Swap settlement		2,880
Total assets		18,911,248
Liabilities:
Unrealized depreciation on swap agreements		80,596
Payable for:
Fund shares redeemed		905,994
Management fees		13,427
Distribution and service fees		6,566
Transfer agent and administrative fees		3,730
Portfolio accounting fees		1,492
Securities purchased		477
Miscellaneous		11,824
Total liabilities		1,024,106
Commitments and contingent liabilities (Note 12)		—
Net assets	$	17,887,142
Net assets consist of:
Paid in capital	$	15,386,728
Accumulated net investment loss		(101,565	)
Accumulated net realized loss on investments		(747,175	)
Net unrealized appreciation on investments		3,349,154
Net assets	$	17,887,142
A-Class:
Net assets	$	3,498,266
Capital shares outstanding		61,235
Net asset value per share	$	57.13
Maximum offering price per share (Net asset value divided by 95.25%)	$	59.98
C-Class:
Net assets	$	4,290,612
Capital shares outstanding		84,208
Net asset value per share	$	50.95
H-Class:
Net assets	$	10,098,264
Capital shares outstanding		176,429
Net asset value per share	$	57.24

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers	$	99,307
Dividends from securities of affiliated issuers		14,877
Interest		916
Income from securities lending, net		477
Total investment income		115,577
Expenses:
Management fees		108,650
Transfer agent and administrative fees		30,180
Distribution and service fees:
A-Class		5,936
C-Class		26,188
H-Class		17,698
Portfolio accounting fees		12,072
Registration fees		16,552
Custodian fees		1,387
Trustees’ fees*		1,299
Line of credit fees		99
Miscellaneous		(2,919	)
Total expenses		217,142
Net investment loss		(101,565	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		302,979
Investments in affiliated issuers		1,029
Swap agreements		(1,394,192	)
Futures contracts		(304,579	)
Net realized loss		(1,394,763	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(1,814,511	)
Investments in affiliated issuers		803
Swap agreements		(285,871	)
Futures contracts		(7,968	)
Net change in unrealized appreciation (depreciation)		(2,107,547	)
Net realized and unrealized loss		(3,502,310	)
Net decrease in net assets resulting from operations	$	(3,603,875	)

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(101,565	)	$	(268,931	)
Net realized gain (loss) on investments		(1,394,763	)		12,898,103
Net change in unrealized appreciation (depreciation) on investments		(2,107,547	)		(1,836,576	)
Net increase (decrease) in net assets resulting from operations		(3,603,875	)		10,792,596
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		1,533,482			4,910,310
C-Class		1,630,366			1,521,171
H-Class		105,235,658			529,535,828
Distributions reinvested
A-Class		—			6,996
C-Class		—			15,357
H-Class		—			344,886
Cost of shares redeemed
A-Class		(2,616,758	)		(2,478,109	)
C-Class		(1,072,927	)		(2,066,363	)
H-Class		(109,597,619	)		(542,160,150	)
Net decrease from capital share transactions		(4,887,798	)		(10,370,074	)
Net decrease in net assets		(8,491,673	)		(214,641	)
Net assets:
Beginning of period		26,378,815			26,593,456
End of period	$	17,887,142		$	26,378,815
Accumulated net investment loss at end of period	$	(101,565	)	$	—
Capital share activity:
Shares sold
A-Class		23,311			76,447
C-Class		26,998			28,166
H-Class		1,601,225			8,717,857
Shares issued from reinvestment of distributions
A-Class		—			114
C-Class		—			278
H-Class		—			5,604
Shares redeemed
A-Class		(41,253	)		(42,389	)
C-Class		(19,367	)		(38,071	)
H-Class		(1,668,431	)		(8,811,347	)
Net decrease in shares		(77,517	)		(63,341	)

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	67.32		$	58.48		$	45.07		$	36.23		$	37.14		$	26.89
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.41	)		(.35	)		(.16	)		(.23	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		(9.97	)		9.45			13.76			9.00			(.68	)		10.51
Total from investment operations		(10.19	)		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	$	57.13		$	67.32		$	58.48		$	45.07		$	36.23		$	37.14
Total Returnc		(15.14	%)		15.50	%		29.75	%		24.40	%		(2.45	%)		38.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,498		$	5,330		$	2,632		$	2,199		$	1,997		$	1,877
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.66	%)		(0.68	%)		(0.43	%)		(0.68	%)		(0.88	%)
Total expensesd		1.64	%		1.64	%		1.67	%		1.66	%		1.66	%		1.70	%
Portfolio turnover rate		60	%		598	%		563	%		447	%		141	%		211	%

C-Class	Period Ended September 30, 2015a			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	$	60.27		$	52.77		$	40.97		$	33.18		$	34.26		$	24.98
Income (loss) from investment operations:
Net investment income (loss)b		(.41	)		(.76	)		(.64	)		(.41	)		(.43	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		(8.91	)		8.46			12.44			8.20			(.65	)		9.71
Total from investment operations		(9.32	)		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	$	50.95		$	60.27		$	52.77		$	40.97		$	33.18		$	34.26
Total Returnc		(15.46	%)		14.63	%		28.80	%		23.48	%		(3.15	%)		37.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,291		$	4,615		$	4,549		$	5,107		$	4,815		$	6,045
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.39	%)		(1.40	%)		(1.23	%)		(1.42	%)		(1.59	%)
Total expensesd		2.39	%		2.40	%		2.42	%		2.40	%		2.41	%		2.44	%
Portfolio turnover rate		60	%		598	%		563	%		447	%		141	%		211	%

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	67.45		$	58.56		$	45.13		$	36.27		$	37.12		$	26.89
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.29	)		(.34	)		(.15	)		(.24	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(9.98	)		9.38			13.77			9.01			(.61	)		10.51
Total from investment operations		(10.21	)		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	$	57.24		$	67.45		$	58.56		$	45.13		$	36.27		$	37.12
Total Returnc		(15.14	%)		15.56	%		29.76	%		24.43	%		(2.29	%)		38.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,098		$	16,433		$	19,413		$	57,067		$	16,974		$	42,647
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.47	%)		(0.66	%)		(0.41	%)		(0.72	%)		(0.91	%)
Total expensesd		1.64	%		1.66	%		1.68	%		1.67	%		1.66	%		1.70	%
Portfolio turnover rate		60	%		598	%		563	%		447	%		141	%		211	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 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.

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	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 Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	24.9%
Total	24.9%

“Largest Holding” exclude any temporary cash or derivative investments.

70 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.9%
Guggenheim Strategy Fund I1		68,766	$	1,710,892
Total Mutual Funds
(Cost $1,713,863)				1,710,892

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 7.2%
Freddie Mac2
0.15% due 12/04/15	$	500,000		499,902
Total Federal Agency Discount Notes
(Cost $499,867)				499,902
REPURCHASE AGREEMENTS††,3 - 56.8%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		2,241,365		2,241,365
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		857,920		857,920
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		805,146		805,146
Total Repurchase Agreements
(Cost $3,904,431)				3,904,431
Total Investments - 88.9%
(Cost $6,118,161)			$	6,115,225
Other Assets & Liabilities, net - 11.1%				759,910
Total Net Assets - 100.0%			$	6,875,135

	Units		Unrealized Gain (Loss)
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2015 S&P MidCap 400 Index Swap, Terminating 10/27/154 (Notional Value $150,917)		110	$	2,035
Goldman Sachs International October 2015 S&P MidCap 400 Index Swap, Terminating 10/27/154 (Notional Value $3,155,645)		2,305		(37,717	)
Barclays Bank plc October 2015 S&P MidCap 400 Index Swap, Terminating 10/30/154 (Notional Value $3,546,809)		2,591		(42,412	)
(Total Notional Value $6,853,371)			$	(78,094	)

†	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 9.
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.
4	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $499,867)	$	499,902
Investments in affiliated issuers, at value (cost $1,713,863)		1,710,892
Repurchase agreements, at value (cost $3,904,431)		3,904,431
Total investments (cost $6,118,161)		6,115,225
Segregated cash with broker		909,320
Unrealized appreciation on swap agreements		2,035
Receivables:
Fund shares sold		20,121
Dividends		835
Total assets		7,047,536
Liabilities:
Unrealized depreciation on swap agreements		80,129
Payable for:
Fund shares redeemed		78,561
Management fees		3,993
Variation margin		3,669
Distribution and service fees		1,305
Transfer agent and administrative fees		1,109
Securities purchased		831
Swap settlement		562
Portfolio accounting fees		444
Miscellaneous		1,798
Total liabilities		172,401
Commitments and contingent liabilities (Note 12)		—
Net assets	$	6,875,135
Net assets consist of:
Paid in capital	$	19,749,919
Accumulated net investment loss		(43,364	)
Accumulated net realized loss on investments		(12,750,390	)
Net unrealized depreciation on investments		(81,030	)
Net assets	$	6,875,135
A-Class:
Net assets	$	33,275
Capital shares outstanding		997
Net asset value per share	$	33.38
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.06
C-Class:
Net assets	$	432,796
Capital shares outstanding		14,215
Net asset value per share	$	30.45
H-Class:
Net assets	$	6,409,064
Capital shares outstanding		192,314
Net asset value per share	$	33.33

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	4,206
Interest		666
Total investment income		4,872
Expenses:
Management fees		18,768
Transfer agent and administrative fees		5,213
Distribution and service fees:
A-Class		46
C-Class		658
H-Class		5,003
Portfolio accounting fees		2,085
Custodian fees		240
Trustees’ fees*		120
Miscellaneous		2,501
Total expenses		34,634
Net investment loss		(29,762	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		887
Swap agreements		487,208
Futures contracts		162,545
Net realized gain		650,640
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		1,105
Investments in affiliated issuers		(2,971	)
Swap agreements		(33,562	)
Net change in unrealized appreciation (depreciation)		(35,428	)
Net realized and unrealized gain		615,212
Net increase in net assets resulting from operations	$	585,450

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

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

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(29,762	)	$	(53,802	)
Net realized gain (loss) on investments		650,640			(384,074	)
Net change in unrealized appreciation (depreciation) on investments		(35,428	)		7,665
Net increase (decrease) in net assets resulting from operations		585,450			(430,211	)
Capital share transactions:
Proceeds from sale of shares
A-Class		316,687			718,727
C-Class		371,380			110,445
H-Class		26,376,818			22,439,039
Cost of shares redeemed
A-Class		(330,473	)		(734,756	)
C-Class		(40,122	)		(134,631	)
H-Class		(23,555,739	)		(22,866,538	)
Net increase (decrease) from capital share transactions		3,138,551			(467,714	)
Net increase (decrease) in net assets		3,724,001			(897,925	)
Net assets:
Beginning of period		3,151,134			4,049,059
End of period	$	6,875,135		$	3,151,134
Accumulated net investment loss at end of period	$	(43,364	)	$	(13,602	)
Capital share activity:
Shares sold
A-Class		10,248			20,062
C-Class		12,412			3,394
H-Class		846,225			668,274
Shares redeemed
A-Class		(10,785	)		(21,136	)
C-Class		(1,360	)		(4,230	)
H-Class		(752,102	)		(677,878	)
Net increase (decrease) in shares		104,638			(11,514	)

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	30.76		$	35.55		$	44.64		$	54.64		$	61.14		$	82.10
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.48	)		(.64	)		(.84	)		(1.02	)		(1.17	)
Net gain (loss) on investments (realized and unrealized)		2.84			(4.31	)		(8.45	)		(9.16	)		(5.48	)		(19.79	)
Total from investment operations		2.62			(4.79	)		(9.09	)		(10.00	)		(6.50	)		(20.96	)
Net asset value, end of period	$	33.38		$	30.76		$	35.55		$	44.64		$	54.64		$	61.14
Total Returnc		8.55	%		(13.47	%)		(20.36	%)		(18.29	%)		(10.65	%)		(25.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33		$	47		$	93		$	26		$	115		$	268
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.40	%)		(1.65	%)		(1.52	%)		(1.63	%)		(1.54	%)
Total expensesd		1.63	%		1.66	%		1.67	%		1.64	%		1.66	%		1.69	%
Portfolio turnover rate		—			38	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	28.16		$	32.78		$	41.49		$	51.18		$	57.72		$	78.09
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.67	)		(.90	)		(1.14	)		(1.44	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		2.60			(3.95	)		(7.81	)		(8.55	)		(5.10	)		(18.72	)
Total from investment operations		2.29			(4.62	)		(8.71	)		(9.69	)		(6.54	)		(20.37	)
Net asset value, end of period	$	30.45		$	28.16		$	32.78		$	41.49		$	51.18		$	57.72
Total Returnc		8.13	%		(14.09	%)		(20.99	%)		(18.93	%)		(11.33	%)		(26.09	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	433		$	89		$	131		$	216		$	121		$	337
Ratios to average net assets:
Net investment income (loss)		(2.15	%)		(2.13	%)		(2.40	%)		(2.29	%)		(2.39	%)		(2.29	%)
Total expensesd		2.39	%		2.41	%		2.42	%		2.40	%		2.42	%		2.44	%
Portfolio turnover rate		—			38	%		—			—			—			—

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	30.70		$	35.49		$	44.59		$	54.57		$	61.08		$	82.06
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.47	)		(.66	)		(.81	)		(1.05	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		2.85			(4.32	)		(8.44	)		(9.17	)		(5.46	)		(19.78	)
Total from investment operations		2.63			(4.79	)		(9.10	)		(9.98	)		(6.51	)		(20.98	)
Net asset value, end of period	$	33.33		$	30.70		$	35.49		$	44.59		$	54.57		$	61.08
Total Returnc		8.53	%		(13.47	%)		(20.39	%)		(18.31	%)		(10.66	%)		(25.56	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,409		$	3,015		$	3,825		$	1,409		$	1,578		$	1,845
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.38	%)		(1.65	%)		(1.53	%)		(1.64	%)		(1.53	%)
Total expensesd		1.64	%		1.65	%		1.67	%		1.65	%		1.67	%		1.69	%
Portfolio turnover rate		—			38	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 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.

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	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	3.1%
Tyler Technologies, Inc.	0.2%
Anacor Pharmaceuticals, Inc.	0.2%
CubeSmart	0.2%
Manhattan Associates, Inc.	0.2%
Investors Bancorp, Inc.	0.2%
First American Financial Corp.	0.2%
Casey’s General Stores, Inc.	0.2%
MAXIMUS, Inc.	0.2%
West Pharmaceutical Services, Inc.	0.2%
Top Ten Total	4.9%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

76 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 69.8%
Financial - 18.2%
CubeSmart		692	$	18,830
Investors Bancorp, Inc.		1,376		16,981
First American Financial Corp.		428		16,721
Strategic Hotels & Resorts, Inc.*		1,086		14,976
CNO Financial Group, Inc.		777		14,615
Highwoods Properties, Inc.		371		14,377
Umpqua Holdings Corp.		870		14,181
MarketAxess Holdings, Inc.		147		13,652
Prosperity Bancshares, Inc.		277		13,603
Bank of the Ozarks, Inc.		308		13,478
Sovran Self Storage, Inc.		140		13,202
RLJ Lodging Trust		521		13,166
Webster Financial Corp.		358		12,756
LaSalle Hotel Properties		446		12,662
Sun Communities, Inc.		184		12,467
MGIC Investment Corp.*		1,340		12,407
Radian Group, Inc.		755		12,011
New Residential Investment Corp.		909		11,908
PrivateBancorp, Inc. — Class A		310		11,882
DCT Industrial Trust, Inc.		350		11,781
EPR Properties		225		11,603
FirstMerit Corp.		654		11,556
Stifel Financial Corp.*		268		11,284
Western Alliance Bancorporation*		358		10,994
Sunstone Hotel Investors, Inc.		823		10,888
Pebblebrook Hotel Trust		301		10,670
Wintrust Financial Corp.		198		10,579
United Bankshares, Inc.		274		10,409
Healthcare Realty Trust, Inc.		418		10,387
PRA Group, Inc.*		190		10,055
MB Financial, Inc.		297		9,694
Texas Capital Bancshares, Inc.*		181		9,488
Cathay General Bancorp		315		9,437
Symetra Financial Corp.		297		9,397
First Industrial Realty Trust, Inc.		437		9,155
Blackhawk Network Holdings, Inc.*		215		9,114
Home BancShares, Inc.		225		9,113
Primerica, Inc.		202		9,104
RLI Corp.		170		9,100
BancorpSouth, Inc.		381		9,056
Valley National Bancorp		917		9,023
FNB Corp.		689		8,923
Fulton Financial Corp.		736		8,906
IBERIABANK Corp.		151		8,790
GEO Group, Inc.		295		8,773
DiamondRock Hospitality Co.		792		8,752
Colony Capital, Inc. — Class A		441		8,626
CyrusOne, Inc.		262		8,558
National Health Investors, Inc.		148		8,509
Washington Federal, Inc.		374		8,509
Ryman Hospitality Properties, Inc.		172		8,468
Hudson Pacific Properties, Inc.		294		8,464
Hancock Holding Co.		307		8,304
Acadia Realty Trust		272		8,178
Kennedy-Wilson Holdings, Inc.		366		8,114
First Financial Bankshares, Inc.		253		8,040
Urban Edge Properties		369		7,967
UMB Financial Corp.		156		7,926
Janus Capital Group, Inc.		579		7,873
Cousins Properties, Inc.		854		7,875
Glacier Bancorp, Inc.		298		7,864
Kite Realty Group Trust		330		7,857
Ellie Mae, Inc.*		117		7,789
South State Corp.		101		7,764
BofI Holding, Inc.*		60		7,730
Xenia Hotels & Resorts, Inc.		441		7,700
EverBank Financial Corp.		382		7,373
WisdomTree Investments, Inc.		450		7,258
Medical Properties Trust, Inc.		656		7,255
Columbia Banking System, Inc.		228		7,116
Equity One, Inc.		290		7,059
Sterling Bancorp		473		7,034
Pinnacle Financial Partners, Inc.		142		7,016
Mack-Cali Realty Corp.		371		7,004
CVB Financial Corp.		419		6,997
American Equity Investment Life Holding Co.		300		6,993
Selective Insurance Group, Inc.		224		6,957
EastGroup Properties, Inc.		128		6,935
Evercore Partners, Inc. — Class A		137		6,883
First Citizens BancShares, Inc. — Class A		30		6,780
Capitol Federal Financial, Inc.		555		6,727
Washington Real Estate Investment Trust		269		6,706
Alexander & Baldwin, Inc.		193		6,626
Lexington Realty Trust		811		6,569
National Penn Bancshares, Inc.		552		6,486
New York REIT, Inc.		641		6,448
DuPont Fabros Technology, Inc.		249		6,444
Old National Bancorp		462		6,436
WageWorks, Inc.*		141		6,356
Education Realty Trust, Inc.		191		6,293
Argo Group International Holdings Ltd.		111		6,281
Trustmark Corp.		267		6,186
Chesapeake Lodging Trust		235		6,124
Monogram Residential Trust, Inc.		657		6,117
Kemper Corp.		172		6,083
Chambers Street Properties		935		6,068
PS Business Parks, Inc.		76		6,033
Financial Engines, Inc.		204		6,011
American Assets Trust, Inc.		147		6,006
Retail Opportunity Investments Corp.		362		5,987
Community Bank System, Inc.		161		5,984
BB&T Corp.		168		5,981
LTC Properties, Inc.		140		5,974
Hilltop Holdings, Inc.*		301		5,963

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 77

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Sabra Health Care REIT, Inc.		257	$	5,957
Invesco Mortgage Capital, Inc.		486		5,949
BGC Partners, Inc. — Class A		723		5,943
Hatteras Financial Corp.		382		5,787
LegacyTexas Financial Group, Inc.		188		5,730
Astoria Financial Corp.		355		5,716
Simmons First National Corp. — Class A		118		5,656
Essent Group Ltd.*		219		5,442
Eagle Bancorp, Inc.*		119		5,415
Pennsylvania Real Estate Investment Trust		273		5,414
First Midwest Bancorp, Inc.		308		5,402
Enstar Group Ltd.*		36		5,400
Horace Mann Educators Corp.		162		5,382
International Bancshares Corp.		214		5,356
Provident Financial Services, Inc.		273		5,324
Renasant Corp.		159		5,223
Parkway Properties, Inc.		334		5,197
St. Joe Co.*		266		5,089
Aircastle Ltd.		246		5,070
WesBanco, Inc.		161		5,063
HFF, Inc. — Class A		149		5,030
CoreSite Realty Corp.		96		4,938
QTS Realty Trust, Inc. — Class A		111		4,850
Independent Bank Corp.		104		4,794
BBCN Bancorp, Inc.		314		4,716
Select Income REIT		247		4,695
Gramercy Property Trust, Inc.		226		4,694
Park National Corp.		52		4,691
NBT Bancorp, Inc.		174		4,688
Ramco-Gershenson Properties Trust		312		4,683
STAG Industrial, Inc.		257		4,680
First Financial Bancorp		243		4,636
Potlatch Corp.		161		4,635
Redwood Trust, Inc.		332		4,595
PennyMac Mortgage Investment Trust		294		4,548
CYS Investments, Inc.		624		4,530
Northwest Bancshares, Inc.		347		4,511
Westamerica Bancorporation		101		4,488
Third Point Reinsurance Ltd.*		333		4,479
S&T Bancorp, Inc.		137		4,469
Government Properties Income Trust		278		4,448
Hersha Hospitality Trust		193		4,373
Beneficial Bancorp, Inc.*		326		4,323
Chemical Financial Corp.		133		4,303
Union Bankshares Corp.		178		4,272
iStar, Inc.*		337		4,239
Kearny Financial Corp.		369		4,232
Physicians Realty Trust		278		4,195
Great Western Bancorp, Inc.		163		4,135
Summit Hotel Properties, Inc.		344		4,014
FelCor Lodging Trust, Inc.		565		3,995
United Community Banks, Inc.		195		3,986
Banner Corp.		83		3,965
First Merchants Corp.		149		3,907
Boston Private Financial Holdings, Inc.		328		3,838
Franklin Street Properties Corp.		355		3,816
Encore Capital Group, Inc.*		103		3,811
Endurance Specialty Holdings Ltd.		62		3,784
Universal Insurance Holdings, Inc.		127		3,752
Investors Real Estate Trust		484		3,746
Capstead Mortgage Corp.		378		3,738
Stewart Information Services Corp.		91		3,723
FNFV Group*		316		3,704
AMERISAFE, Inc.		74		3,680
MBIA, Inc.*		604		3,672
ServisFirst Bancshares, Inc.		88		3,655
Ameris Bancorp		127		3,651
Infinity Property & Casualty Corp.		45		3,624
FCB Financial Holdings, Inc. — Class A*		111		3,621
Apollo Commercial Real Estate Finance, Inc.		230		3,613
Starwood Waypoint Residential Trust		151		3,598
Talmer Bancorp, Inc. — Class A		215		3,580
New Senior Investment Group, Inc.		340		3,556
ARMOUR Residential REIT, Inc.		175		3,507
TowneBank		180		3,393
Alexander’s, Inc.		9		3,366
Terreno Realty Corp.		170		3,339
Greenhill & Company, Inc.		117		3,331
Tompkins Financial Corp.		62		3,308
Safety Insurance Group, Inc.		61		3,303
Navigators Group, Inc.*		42		3,275
Chatham Lodging Trust		152		3,265
Nelnet, Inc. — Class A		94		3,253
WSFS Financial Corp.		112		3,227
Berkshire Hills Bancorp, Inc.		117		3,222
First Commonwealth Financial Corp.		351		3,191
Hanmi Financial Corp.		126		3,175
City Holding Co.		64		3,155
Altisource Residential Corp.		225		3,132
Rexford Industrial Realty, Inc.		218		3,006
Lakeland Financial Corp.		66		2,980
American Capital Mortgage Investment Corp.		202		2,977
STORE Capital Corp.		144		2,975
Meridian Bancorp, Inc.		216		2,953
United Fire Group, Inc.		84		2,944
Wilshire Bancorp, Inc.		279		2,932
Cardinal Financial Corp.		127		2,922
State Bank Financial Corp.		141		2,916
Ocwen Financial Corp.*		424		2,845
Southside Bancshares, Inc.		103		2,838
Northfield Bancorp, Inc.		185		2,814
Brookline Bancorp, Inc.		277		2,809
Employers Holdings, Inc.		126		2,809
Inland Real Estate Corp.		346		2,803
PHH Corp.*		196		2,768
Maiden Holdings Ltd.		199		2,762

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Walker & Dunlop, Inc.*		105	$	2,738
Customers Bancorp, Inc.*		106		2,724
Oritani Financial Corp.		174		2,718
Virtus Investment Partners, Inc.		27		2,714
Capital Bank Financial Corp. — Class A*		88		2,660
CenterState Banks, Inc.		179		2,631
Sandy Spring Bancorp, Inc.		98		2,566
Ambac Financial Group, Inc.*		177		2,561
United Financial Bancorp, Inc.		195		2,545
First Potomac Realty Trust		231		2,541
Heartland Financial USA, Inc.		70		2,540
Greenlight Capital Re Ltd. — Class A*		114		2,540
BNC Bancorp		112		2,490
Marcus & Millichap, Inc.*		54		2,483
Universal Health Realty Income Trust		52		2,441
Walter Investment Management Corp.*		149		2,421
Diamond Hill Investment Group, Inc.		13		2,419
New York Mortgage Trust, Inc.		432		2,372
Flushing Financial Corp.		117		2,342
FBL Financial Group, Inc. — Class A		38		2,338
Silver Bay Realty Trust Corp.		144		2,305
ConnectOne Bancorp, Inc.		119		2,297
Piper Jaffray Cos.*		63		2,279
Yadkin Financial Corp.		106		2,278
Monmouth Real Estate Investment Corp.		233		2,272
Rouse Properties, Inc.		145		2,259
Heritage Financial Corp.		120		2,258
Ladder Capital Corp. — Class A		157		2,248
Washington Trust Bancorp, Inc.		58		2,230
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		129		2,221
TriCo Bancshares		90		2,211
Cass Information Systems, Inc.		45		2,211
Bryn Mawr Bank Corp.		71		2,206
Community Trust Bancorp, Inc.		62		2,202
Dime Community Bancshares, Inc.		130		2,197
Cohen & Steers, Inc.		80		2,196
American Residential Properties, Inc.		127		2,193
TrustCo Bank Corp. NY		375		2,190
First Interstate BancSystem, Inc. — Class A		78		2,172
Nationstar Mortgage Holdings, Inc.*		155		2,150
Stock Yards Bancorp, Inc.		59		2,145
United Development Funding IV		121		2,130
National General Holdings Corp.		110		2,122
First NBC Bank Holding Co.*		60		2,102
1st Source Corp.		68		2,094
Western Asset Mortgage Capital Corp.		165		2,081
Cedar Realty Trust, Inc.		335		2,080
Urstadt Biddle Properties, Inc. — Class A		110		2,061
InfraREIT, Inc.		87		2,060
Agree Realty Corp.		69		2,060
Anworth Mortgage Asset Corp.		413		2,040
HomeStreet, Inc.*		88		2,033
Enterprise Financial Services Corp.		80		2,014
Central Pacific Financial Corp.		96		2,013
Ashford Hospitality Trust, Inc.		329		2,007
Cowen Group, Inc. — Class A*		440		2,006
National Western Life Insurance Co. — Class A		9		2,004
Saul Centers, Inc.		38		1,967
Heritage Insurance Holdings, Inc.*		98		1,934
First Busey Corp.		96		1,908
CoBiz Financial, Inc.		144		1,873
BancFirst Corp.		29		1,830
Acacia Research Corp.		201		1,825
Great Southern Bancorp, Inc.		42		1,819
Moelis & Co. — Class A		69		1,812
Investment Technology Group, Inc.		135		1,801
MainSource Financial Group, Inc.		87		1,771
RAIT Financial Trust		356		1,766
Banc of California, Inc.		143		1,755
Forestar Group, Inc.*		133		1,749
Pacific Premier Bancorp, Inc.*		85		1,727
Square 1 Financial, Inc. — Class A*		67		1,720
Virtu Financial, Inc. — Class A		75		1,719
AG Mortgage Investment Trust, Inc.		112		1,705
RE/MAX Holdings, Inc. — Class A		47		1,691
KCG Holdings, Inc. — Class A*		152		1,667
Lakeland Bancorp, Inc.		150		1,667
Flagstar Bancorp, Inc.*		81		1,665
First BanCorp*		459		1,634
Westwood Holdings Group, Inc.		30		1,631
German American Bancorp, Inc.		55		1,610
Apollo Residential Mortgage, Inc.		127		1,608
Opus Bank		42		1,606
CatchMark Timber Trust, Inc. — Class A		156		1,604
Ashford Hospitality Prime, Inc.		114		1,599
Getty Realty Corp.		101		1,596
Blue Hills Bancorp, Inc.		112		1,551
Bridge Bancorp, Inc.		58		1,549
OFG Bancorp		176		1,536
Waterstone Financial, Inc.		113		1,523
Peoples Bancorp, Inc.		73		1,518
OM Asset Management plc		98		1,511
CU Bancorp*		67		1,505
NMI Holdings, Inc. — Class A*		196		1,490
Resource Capital Corp.		133		1,486
Clifton Bancorp, Inc.		107		1,485
HomeTrust Bancshares, Inc.*		80		1,484
Univest Corporation of Pennsylvania		77		1,480
Independent Bank Group, Inc.		38		1,460
International. FCStone, Inc.*		59		1,457
Preferred Bank/Los Angeles CA		46		1,454
Financial Institutions, Inc.		58		1,437
Citizens, Inc.*		193		1,432
Dynex Capital, Inc.		216		1,417
Fidelity Southern Corp.		67		1,416

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Bank Mutual Corp.		184	$	1,413
Stonegate Bank		44		1,400
HCI Group, Inc.		36		1,396
Seacoast Banking Corporation of Florida*		95		1,395
Federated National Holding Co.		58		1,393
Mercantile Bank Corp.		67		1,392
First Financial Corp.		43		1,391
First of Long Island Corp.		51		1,379
GAMCO Investors, Inc. — Class A		25		1,373
Anchor BanCorp Wisconsin, Inc.*		32		1,363
Campus Crest Communities, Inc.		255		1,357
First Defiance Financial Corp.		37		1,353
Metro Bancorp, Inc.		46		1,352
State Auto Financial Corp.		59		1,346
Independent Bank Corp.		91		1,343
Arlington Asset Investment Corp. — Class A		95		1,335
First Bancorp		78		1,326
Peapack Gladstone Financial Corp.		61		1,291
Ares Commercial Real Estate Corp.		107		1,283
OneBeacon Insurance Group Ltd. — Class A		90		1,264
Suffolk Bancorp		46		1,257
Altisource Portfolio Solutions S.A.*		52		1,240
Whitestone REIT — Class B		107		1,234
National Storage Affiliates Trust		91		1,233
Southwest Bancorp, Inc.		75		1,231
NewBridge Bancorp		142		1,211
Park Sterling Corp.		178		1,210
West Bancorporation, Inc.		64		1,200
Arrow Financial Corp.		45		1,198
First Community Bancshares, Inc.		66		1,181
Camden National Corp.		29		1,172
State National Companies, Inc.		124		1,159
Gladstone Commercial Corp.		82		1,157
Bank of Marin Bancorp		24		1,152
Meta Financial Group, Inc.		27		1,128
Enova International, Inc.*		108		1,104
Horizon Bancorp		46		1,093
Fidelity & Guaranty Life		44		1,080
One Liberty Properties, Inc.		50		1,067
Federal Agricultural Mortgage Corp. — Class C		41		1,063
CNB Financial Corp.		58		1,054
Peoples Financial Services Corp.		30		1,048
TriState Capital Holdings, Inc.*		84		1,047
Triumph Bancorp, Inc.*		62		1,042
CorEnergy Infrastructure Trust, Inc.		235		1,039
First Connecticut Bancorp, Inc.		64		1,032
Pacific Continental Corp.		77		1,025
Bancorp, Inc.*		133		1,013
Preferred Apartment Communities, Inc. — Class A		93		1,012
QCR Holdings, Inc.		46		1,006
NexPoint Residential Trust, Inc.		74		989
Armada Hoffler Properties, Inc.		101		987
Republic Bancorp, Inc. — Class A		40		982
United Community Financial Corp.		194		970
Guaranty Bancorp		58		955
Consolidated-Tomoka Land Co.		19		946
Citizens & Northern Corp.		48		937
GAIN Capital Holdings, Inc.		128		932
Independence Realty Trust, Inc.		129		932
Heritage Commerce Corp.		82		930
Territorial Bancorp, Inc.		35		911
eHealth, Inc.*		71		909
BankFinancial Corp.		73		907
United Insurance Holdings Corp.		69		907
MidWestOne Financial Group, Inc.		31		907
National Bankshares, Inc.		29		902
Real Industry, Inc.*		102		900
OceanFirst Financial Corp.		52		895
Bluerock Residential Growth REIT, Inc.		74		887
Easterly Government Properties, Inc.		55		877
Ladenburg Thalmann Financial Services, Inc.*		415		876
UMH Properties, Inc.		93		865
Global Indemnity plc — Class A*		33		864
Ames National Corp.		37		848
PennyMac Financial Services, Inc. — Class A*		53		848
FRP Holdings, Inc.*		28		844
Orchid Island Capital, Inc.		91		842
Oppenheimer Holdings, Inc. — Class A		42		840
Charter Financial Corp.		66		837
Baldwin & Lyons, Inc. — Class B		38		825
First Business Financial Services, Inc.		35		823
First Bancorp, Inc.		43		821
Penns Woods Bancorp, Inc.		20		818
Fox Chase Bancorp, Inc.		46		799
American National Bankshares, Inc.		34		797
Atlas Financial Holdings, Inc.*		43		796
NewStar Financial, Inc.*		96		787
Heritage Oaks Bancorp		98		780
World Acceptance Corp.*		29		778
Bar Harbor Bankshares		24		768
CareTrust REIT, Inc.		67		760
Sierra Bancorp		47		750
National Interstate Corp.		28		747
Sun Bancorp, Inc.*		38		729
Old Second Bancorp, Inc.*		117		729
Farmers Capital Bank Corp.*		29		721
EMC Insurance Group, Inc.		31		720
Regional Management Corp.*		44		682
BSB Bancorp, Inc.*		32		676
Calamos Asset Management, Inc. — Class A		70		664
Cascade Bancorp*		122		660
Kansas City Life Insurance Co.		14		658
Hallmark Financial Services, Inc.*		56		643
Capital City Bank Group, Inc.		43		642
Crawford & Co. — Class B		113		634

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Enterprise Bancorp, Inc.		30	$	629
Access National Corp.		29		591
Merchants Bancshares, Inc.		20		588
Hingham Institution for Savings		5		580
National Commerce Corp.*		24		576
Century Bancorp, Inc. — Class A		14		571
Impac Mortgage Holdings, Inc.*		34		556
CommunityOne Bancorp*		49		533
Marlin Business Services Corp.		34		523
Trupanion, Inc.*		69		521
Franklin Financial Network, Inc.*		22		492
Donegal Group, Inc. — Class A		34		478
Bear State Financial, Inc.*		53		472
Green Bancorp, Inc.*		41		470
On Deck Capital, Inc.*		45		446
C1 Financial, Inc.*		23		438
Pzena Investment Management, Inc. — Class A		49		436
Stonegate Mortgage Corp.*		58		412
Independence Holding Co.		29		376
Ashford, Inc.*		5		317
JG Wentworth Co. — Class A*		57		281
Hampton Roads Bankshares, Inc.*		135		257
Great Ajax Corp.		18		223
6D Global Technologies, Inc.*,††		61		178
BBX Capital Corp. — Class A*		11		177
Fifth Street Asset Management, Inc.		23		172
CIFC Corp.		24		172
Medley Management, Inc. — Class A		24		159
RCS Capital Corp. — Class A*		194		157
ZAIS Group Holdings, Inc.*		15		141
Altisource Asset Management Corp.*		4		96
Total Financial				1,700,624
Consumer, Non-cyclical - 15.5%
Anacor Pharmaceuticals, Inc.*		162		19,068
West Pharmaceutical Services, Inc.		284		15,369
Team Health Holdings, Inc.*		284		15,344
ABIOMED, Inc.*		165		15,304
STERIS Corp.		235		15,267
Euronet Worldwide, Inc.*		205		15,189
WellCare Health Plans, Inc.*		174		14,995
Amsurg Corp. — Class A*		191		14,842
Ultragenyx Pharmaceutical, Inc.*		153		14,734
HealthSouth Corp.		361		13,851
Thoratec Corp.*		214		13,538
PAREXEL International Corp.*		217		13,436
Neurocrine Biosciences, Inc.*		337		13,408
TreeHouse Foods, Inc.*		169		13,146
Cepheid*		284		12,837
Deluxe Corp.		197		10,981
Dyax Corp.*		574		10,958
Molina Healthcare, Inc.*		155		10,672
ACADIA Pharmaceuticals, Inc.*		315		10,417
Myriad Genetics, Inc.*		274		10,270
United Natural Foods, Inc.*		209		10,138
Clovis Oncology, Inc.*		110		10,116
Helen of Troy Ltd.*		113		10,091
Post Holdings, Inc.*		170		10,047
Impax Laboratories, Inc.*		283		9,964
Medicines Co.*		262		9,946
Cimpress N.V.*		130		9,894
Bright Horizons Family Solutions, Inc.*		148		9,507
Healthcare Services Group, Inc.		282		9,503
Prestige Brands Holdings, Inc.*		206		9,303
NuVasive, Inc.*		191		9,210
Heartland Payment Systems, Inc.		145		9,136
CEB, Inc.		132		9,021
Chemed Corp.		67		8,941
Monro Muffler Brake, Inc.		126		8,511
Catalent, Inc.*		348		8,456
B&G Foods, Inc.		228		8,311
Boston Beer Company, Inc. — Class A*		38		8,003
Owens & Minor, Inc.		248		7,922
Sotheby’s		245		7,836
SUPERVALU, Inc.*		1,090		7,827
Portola Pharmaceuticals, Inc.*		182		7,757
KYTHERA Biopharmaceuticals, Inc.*		103		7,723
Cantel Medical Corp.		136		7,711
Vector Group Ltd.		339		7,658
Advisory Board Co.*		168		7,651
Lancaster Colony Corp.		78		7,603
On Assignment, Inc.*		204		7,527
Novavax, Inc.*		1,057		7,473
Darling Ingredients, Inc.*		652		7,328
Grand Canyon Education, Inc.*		186		7,066
Chimerix, Inc.*		180		6,876
DeVry Education Group, Inc.		251		6,830
FTI Consulting, Inc.*		164		6,808
Exact Sciences Corp.*		378		6,800
Cal-Maine Foods, Inc.		124		6,772
J&J Snack Foods Corp.		59		6,706
Masimo Corp.*		173		6,671
Korn/Ferry International		200		6,614
Neogen Corp.*		147		6,613
Haemonetics Corp.*		204		6,593
Snyder’s-Lance, Inc.		193		6,510
Amicus Therapeutics, Inc.*		458		6,407
Sanderson Farms, Inc.		93		6,377
Matthews International Corp. — Class A		130		6,366
Kite Pharma, Inc.*		114		6,348
Radius Health, Inc.*		91		6,307
Cyberonics, Inc.*		103		6,260
Dean Foods Co.		372		6,145
ABM Industries, Inc.		221		6,035
ICU Medical, Inc.*		55		6,023
Magellan Health, Inc.*		108		5,986
Pacira Pharmaceuticals, Inc.*		144		5,918

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Ligand Pharmaceuticals, Inc. — Class B*		69	$	5,910
Insulet Corp.*		224		5,804
Cardtronics, Inc.*		177		5,788
Huron Consulting Group, Inc.*		92		5,753
Greatbatch, Inc.*		101		5,698
Nektar Therapeutics*		519		5,688
Prothena Corporation plc*		124		5,622
Halozyme Therapeutics, Inc.*		418		5,614
AMN Healthcare Services, Inc.*		187		5,612
Globus Medical, Inc. — Class A*		271		5,599
Travelport Worldwide Ltd.		416		5,500
Kindred Healthcare, Inc.		347		5,464
IPC Healthcare, Inc.*		70		5,438
Air Methods Corp.*		155		5,284
Sarepta Therapeutics, Inc.*		164		5,266
Fresh Del Monte Produce, Inc.		132		5,215
Halyard Health, Inc.*		183		5,205
CONMED Corp.		109		5,204
Brink’s Co.		192		5,186
Ironwood Pharmaceuticals, Inc. — Class A*		497		5,179
Natus Medical, Inc.*		130		5,129
Integra LifeSciences Holdings Corp.*		86		5,121
WD-40 Co.		57		5,077
Rent-A-Center, Inc.		209		5,068
ExamWorks Group, Inc.*		173		5,059
Cambrex Corp.*		124		4,919
ZS Pharma, Inc.*		72		4,728
EVERTEC, Inc.		260		4,698
Insmed, Inc.*		242		4,494
Acorda Therapeutics, Inc.*		169		4,480
Select Medical Holdings Corp.		414		4,467
Universal Corp.		90		4,461
Depomed, Inc.*		236		4,449
Lannett Company, Inc.*		105		4,360
Celldex Therapeutics, Inc.*		410		4,321
Ensign Group, Inc.		101		4,306
ZIOPHARM Oncology, Inc.*		477		4,298
Wright Medical Group, Inc.*		203		4,267
Amedisys, Inc.*		112		4,253
HealthEquity, Inc.*		143		4,226
Momenta Pharmaceuticals, Inc.*		255		4,185
Merit Medical Systems, Inc.*		174		4,160
FibroGen, Inc.*		189		4,143
MiMedx Group, Inc.*		429		4,140
Apollo Education Group, Inc. — Class A*		372		4,114
Diplomat Pharmacy, Inc.*		143		4,108
Analogic Corp.		50		4,102
Zeltiq Aesthetics, Inc.*		127		4,068
Multi-Color Corp.		53		4,054
NxStage Medical, Inc.*		249		3,927
Abaxis, Inc.		89		3,915
Tumi Holdings, Inc.*		221		3,894
ARIAD Pharmaceuticals, Inc.*		661		3,860
Fresh Market, Inc.*		170		3,840
SpartanNash Co.		148		3,826
Andersons, Inc.		112		3,815
Ophthotech Corp.*		94		3,809
TESARO, Inc.*		93		3,729
TrueBlue, Inc.*		165		3,708
Cempra, Inc.*		133		3,703
AMAG Pharmaceuticals, Inc.*		93		3,695
Merrimack Pharmaceuticals, Inc.*		434		3,693
HeartWare International, Inc.*		70		3,662
Repligen Corp.*		130		3,621
PTC Therapeutics, Inc.*		134		3,578
Coca-Cola Bottling Company Consolidated		18		3,480
Intra-Cellular Therapies, Inc.*		86		3,443
Emergent BioSolutions, Inc.*		120		3,419
PharMerica Corp.*		120		3,416
Insperity, Inc.		76		3,339
ImmunoGen, Inc.*		340		3,264
Endologix, Inc.*		266		3,261
BioCryst Pharmaceuticals, Inc.*		286		3,260
LifeLock, Inc.*		372		3,259
PDL BioPharma, Inc.		647		3,254
Diamond Foods, Inc.*		104		3,209
Achillion Pharmaceuticals, Inc.*		464		3,206
Green Dot Corp. — Class A*		181		3,186
Xoom Corp.*		126		3,135
MannKind Corp.*		974		3,127
Nevro Corp.*		67		3,108
Exelixis, Inc.*		553		3,102
Seaboard Corp.*		1		3,079
ACCO Brands Corp.*		435		3,075
HMS Holdings Corp.*		349		3,061
Alder Biopharmaceuticals, Inc.*		93		3,047
PRA Health Sciences, Inc.*		78		3,029
NutriSystem, Inc.		114		3,023
Navigant Consulting, Inc.*		190		3,023
Inogen, Inc.*		62		3,010
Dynavax Technologies Corp.*		121		2,969
USANA Health Sciences, Inc.*		22		2,949
NewLink Genetics Corp.*		82		2,939
RPX Corp.*		214		2,936
TherapeuticsMD, Inc.*		501		2,936
Tornier N.V.*		143		2,916
Luminex Corp.*		170		2,875
Heron Therapeutics, Inc.*		117		2,855
Meridian Bioscience, Inc.		165		2,822
LDR Holding Corp.*		81		2,797
Retrophin, Inc.*		138		2,796
Surgical Care Affiliates, Inc.*		85		2,779
McGrath RentCorp		104		2,776
TriNet Group, Inc.*		162		2,722
Central Garden & Pet Co. — Class A*		167		2,690
Insys Therapeutics, Inc.*		94		2,675

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
MacroGenics, Inc.*		124	$	2,656
Cynosure, Inc. — Class A*		88		2,644
Team, Inc.*		82		2,634
Affymetrix, Inc.*		305		2,605
Calavo Growers, Inc.		58		2,589
Kforce, Inc.		98		2,575
Array BioPharma, Inc.*		556		2,535
Ingles Markets, Inc. — Class A		53		2,535
Eagle Pharmaceuticals, Inc.*		34		2,517
Orthofix International N.V.*		74		2,498
AtriCure, Inc.*		112		2,454
National Healthcare Corp.		40		2,436
Capella Education Co.		49		2,426
Theravance, Inc.		336		2,412
Relypsa, Inc.*		129		2,388
Strayer Education, Inc.*		43		2,364
Providence Service Corp.*		54		2,353
Enanta Pharmaceuticals, Inc.*		65		2,349
Capital Senior Living Corp.*		117		2,346
ICF International, Inc.*		77		2,340
LHC Group, Inc.*		52		2,328
Sage Therapeutics, Inc.*		55		2,328
Viad Corp.		80		2,319
Monster Worldwide, Inc.*		359		2,305
Tootsie Roll Industries, Inc.		73		2,284
Vascular Solutions, Inc.*		70		2,269
Atrion Corp.		6		2,250
Resources Connection, Inc.		148		2,230
US Physical Therapy, Inc.		49		2,200
Phibro Animal Health Corp. — Class A		69		2,182
Quidel Corp.*		114		2,152
Acceleron Pharma, Inc.*		86		2,141
LendingTree, Inc.*		23		2,140
Synergy Pharmaceuticals, Inc.*		394		2,088
Zafgen, Inc.*		65		2,077
Atara Biotherapeutics, Inc.*		66		2,075
Incorporated Research Holdings, Inc. — Class A*		51		2,040
Adeptus Health, Inc. — Class A*		25		2,019
Cardiovascular Systems, Inc.*		125		1,980
Spectranetics Corp.*		167		1,969
Sucampo Pharmaceuticals, Inc. — Class A*		99		1,967
Anika Therapeutics, Inc.*		61		1,942
Raptor Pharmaceutical Corp.*		318		1,924
CBIZ, Inc.*		195		1,915
Supernus Pharmaceuticals, Inc.*		136		1,908
Hanger, Inc.*		139		1,896
Coherus Biosciences, Inc.*		93		1,864
Vanda Pharmaceuticals, Inc.*		165		1,861
Invacare Corp.		128		1,852
Revance Therapeutics, Inc.*		62		1,845
Paylocity Holding Corp.*		61		1,829
Arena Pharmaceuticals, Inc.*		955		1,824
Weis Markets, Inc.		43		1,795
Ennis, Inc.		103		1,788
Lexicon Pharmaceuticals, Inc.*		164		1,761
Boulder Brands, Inc.*		215		1,761
Cross Country Healthcare, Inc.*		127		1,728
Albany Molecular Research, Inc.*		99		1,725
Geron Corp.*		624		1,722
Omeros Corp.*		157		1,721
Triple-S Management Corp. — Class B*		96		1,710
Cerus Corp.*		376		1,707
John B Sanfilippo & Son, Inc.		33		1,692
Inter Parfums, Inc.		68		1,687
Kelly Services, Inc. — Class A		118		1,669
K12, Inc.*		133		1,655
Inovio Pharmaceuticals, Inc.*		284		1,642
Infinity Pharmaceuticals, Inc.*		193		1,631
American Public Education, Inc.*		69		1,618
Spectrum Pharmaceuticals, Inc.*		265		1,585
Progenics Pharmaceuticals, Inc.*		275		1,573
Accuray, Inc.*		312		1,558
Sangamo BioSciences, Inc.*		275		1,551
Intersect ENT, Inc.*		66		1,544
OPKO Health, Inc.*		183		1,537
Rockwell Medical, Inc.*		199		1,534
SP Plus Corp.*		66		1,528
Smart & Final Stores, Inc.*		96		1,508
Genomic Health, Inc.*		71		1,502
Epizyme, Inc.*		115		1,479
Amphastar Pharmaceuticals, Inc.*		126		1,473
Omega Protein Corp.*		86		1,459
Ascent Capital Group, Inc. — Class A*		53		1,451
Keryx Biopharmaceuticals, Inc.*		408		1,436
Universal American Corp.*		208		1,423
Aerie Pharmaceuticals, Inc.*		80		1,419
National Beverage Corp.*		46		1,414
TG Therapeutics, Inc.*		140		1,411
Landauer, Inc.		38		1,406
Carriage Services, Inc. — Class A		65		1,403
Heidrick & Struggles International, Inc.		72		1,400
Agenus, Inc.*		302		1,389
Osiris Therapeutics, Inc.*		75		1,385
Xencor, Inc.*		113		1,382
Quad/Graphics, Inc.		114		1,379
Mirati Therapeutics, Inc.*		40		1,377
Accelerate Diagnostics, Inc.*		85		1,375
Healthways, Inc.*		123		1,368
La Jolla Pharmaceutical Co.*		49		1,362
SciClone Pharmaceuticals, Inc.*		196		1,360
Navidea Biopharmaceuticals, Inc.*		594		1,354
Sagent Pharmaceuticals, Inc.*		88		1,349
Arrowhead Research Corp.*		234		1,348
Aegerion Pharmaceuticals, Inc.*		99		1,346
Spark Therapeutics, Inc.*		32		1,335

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Everi Holdings, Inc.*		260	$	1,334
Revlon, Inc. — Class A*		45		1,325
AngioDynamics, Inc.*		100		1,319
BioTelemetry, Inc.*		107		1,310
Five Prime Therapeutics, Inc.*		85		1,308
GenMark Diagnostics, Inc.*		166		1,306
Hackett Group, Inc.		95		1,307
Esperion Therapeutics, Inc.*		55		1,297
Forrester Research, Inc.		41		1,289
RTI Surgical, Inc.*		226		1,284
K2M Group Holdings, Inc.*		69		1,283
Advaxis, Inc.*		120		1,228
ANI Pharmaceuticals, Inc.*		31		1,225
NeoGenomics, Inc.*		211		1,209
Elizabeth Arden, Inc.*		103		1,204
Barrett Business Services, Inc.		28		1,202
Concert Pharmaceuticals, Inc.*		64		1,201
Great Lakes Dredge & Dock Corp.*		238		1,200
STAAR Surgical Co.*		153		1,187
Tejon Ranch Co.*		54		1,178
Almost Family, Inc.*		29		1,161
James River Group Holdings Ltd.		43		1,156
Northwest Biotherapeutics, Inc.*		185		1,156
Medifast, Inc.*		43		1,155
CorVel Corp.*		35		1,131
Idera Pharmaceuticals, Inc.*		337		1,129
OncoMed Pharmaceuticals, Inc.*		68		1,128
SurModics, Inc.*		51		1,114
Theravance Biopharma, Inc.*		101		1,110
Ardelyx, Inc.*		64		1,106
Oncothyreon, Inc.*		394		1,080
Tetraphase Pharmaceuticals, Inc.*		143		1,067
Oxford Immunotec Global plc*		79		1,067
IGI Laboratories, Inc.*		163		1,066
Civitas Solutions, Inc.*		46		1,054
Otonomy, Inc.*		59		1,051
Chefs’ Warehouse, Inc.*		74		1,048
Antares Pharma, Inc.*		611		1,039
Wausau Paper Corp.		162		1,037
CryoLife, Inc.		106		1,031
Versartis, Inc.*		89		1,026
Threshold Pharmaceuticals, Inc.*		252		1,026
Lion Biotechnologies, Inc.*		178		1,025
Organovo Holdings, Inc.*		379		1,016
Natural Health Trends Corp.		31		1,013
BioDelivery Sciences International, Inc.*		182		1,012
Galena Biopharma, Inc.*		638		1,008
Career Education Corp.*		268		1,008
Anthera Pharmaceuticals, Inc.*		165		1,005
CSS Industries, Inc.		38		1,001
Sorrento Therapeutics, Inc.*		118		990
Aratana Therapeutics, Inc.*		117		990
OraSure Technologies, Inc.*		222		986
Akebia Therapeutics, Inc.*		101		976
Pfenex, Inc.*		65		976
Karyopharm Therapeutics, Inc.*		92		969
ARC Document Solutions, Inc.*		162		964
CTI BioPharma Corp.*		649		948
Catalyst Pharmaceuticals, Inc.*		314		942
MoneyGram International, Inc.*		116		930
ServiceSource International, Inc.*		232		928
Vectrus, Inc.*		42		926
Corcept Therapeutics, Inc.*		244		917
Cytokinetics, Inc.*		137		917
Paratek Pharmaceuticals, Inc.		48		912
InVivo Therapeutics Holdings Corp.*		105		905
Trevena, Inc.*		86		890
Genesis Healthcare, Inc.*		145		889
Curis, Inc.*		439		887
Pacific Biosciences of California, Inc.*		239		875
BioSpecifics Technologies Corp.*		20		871
Foundation Medicine, Inc.*		47		867
Durect Corp.*		444		866
Rigel Pharmaceuticals, Inc.*		348		860
XenoPort, Inc.*		246		854
Orexigen Therapeutics, Inc.*		404		852
Ocular Therapeutix, Inc.*		60		844
NanoString Technologies, Inc.*		52		832
Farmer Bros Co.*		30		818
Flexion Therapeutics, Inc.*		55		817
Natural Grocers by Vitamin Cottage, Inc.*		36		817
Sequenom, Inc.*		466		816
Blueprint Medicines Corp.*		38		811
Utah Medical Products, Inc.		15		808
Peregrine Pharmaceuticals, Inc.*		789		805
Nutraceutical International Corp.*		34		803
CRA International, Inc.*		37		798
Seneca Foods Corp. — Class A*		30		791
OvaScience, Inc.*		93		790
Addus HomeCare Corp.*		25		779
Senomyx, Inc.*		173		772
Franklin Covey Co.*		48		771
Dermira, Inc.*		33		770
Cutera, Inc.*		58		759
RadNet, Inc.*		136		755
Limoneira Co.		45		753
Ignyta, Inc.*		85		746
Regulus Therapeutics, Inc.*		112		732
Adamas Pharmaceuticals, Inc.*		42		703
Civeo Corp.*		473		700
Exactech, Inc.*		40		697
Foamix Pharmaceuticals Ltd.*		95		696
Electro Rent Corp.		67		695
Weight Watchers International, Inc.*		109		695
Ocata Therapeutics, Inc.*		166		694
AAC Holdings, Inc.*		31		690

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Inventure Foods, Inc.*		77	$	684
Endocyte, Inc.*		148		678
MGP Ingredients, Inc.		42		672
ChemoCentryx, Inc.*		111		672
POZEN, Inc.*		115		671
VIVUS, Inc.*		409		671
Heska Corp.*		22		671
PFSweb, Inc.*		47		668
Trovagene, Inc.*		117		666
Village Super Market, Inc. — Class A		28		661
Cellular Biomedicine Group, Inc.*		39		660
Nobilis Health Corp.*		126		658
Immunomedics, Inc.*		380		654
Aduro Biotech, Inc.*		33		639
Avalanche Biotechnologies, Inc.*		77		634
Synta Pharmaceuticals Corp.*		358		623
Zogenix, Inc.*		46		621
CytRx Corp.*		262		621
Tandem Diabetes Care, Inc.*		70		617
BioTime, Inc.*		205		615
Cara Therapeutics, Inc.*		43		614
Alico, Inc.		15		609
Vitae Pharmaceuticals, Inc.*		53		584
LeMaitre Vascular, Inc.		47		573
Assembly Biosciences, Inc.*		58		554
Pernix Therapeutics Holdings, Inc.*		172		544
Loxo Oncology, Inc.*		31		542
Stemline Therapeutics, Inc.*		61		539
Immune Design Corp.*		44		537
Liberty Tax, Inc.		23		536
SeaSpine Holdings Corp.*		33		535
Collegium Pharmaceutical, Inc.*		24		531
Five Star Quality Care, Inc.*		170		525
Patriot National, Inc.*		33		522
Medgenics, Inc.*		66		516
Bridgepoint Education, Inc.*		67		511
BioScrip, Inc.*		271		507
Harvard Bioscience, Inc.*		132		499
CDI Corp.		58		496
Dicerna Pharmaceuticals, Inc.*		60		493
Nature’s Sunshine Products, Inc.		41		491
Pendrell Corp.*		656		472
National Research Corp. — Class A		39		466
Bellicum Pharmaceuticals, Inc.*		32		465
Applied Genetic Technologies Corp.*		35		460
Unilife Corp.*		457		448
Collectors Universe, Inc.		28		422
Proteon Therapeutics, Inc.*		30		417
Entellus Medical, Inc.*		23		414
Tokai Pharmaceuticals, Inc.*		40		414
Synutra International, Inc.*		84		399
TransEnterix, Inc.*		176		398
Fibrocell Science, Inc.*		103		397
Affimed N.V.*		64		395
Care.com, Inc.*		76		391
NV5 Holdings, Inc.*		20		371
Genocea Biosciences, Inc.*		51		349
Volt Information Sciences, Inc.*		38		346
Craft Brew Alliance, Inc.*		41		327
T2 Biosystems, Inc.*		36		315
Universal Technical Institute, Inc.		83		291
Second Sight Medical Products, Inc.*		49		291
Agile Therapeutics, Inc.*		42		283
Vital Therapies, Inc.*		67		271
XOMA Corp.*		359		270
iRadimed Corp.*		11		268
Alimera Sciences, Inc.*		121		267
Sientra, Inc.*		26		264
Corium International, Inc.*		28		262
Veracyte, Inc.*		53		249
aTyr Pharma, Inc.*		24		246
Cambium Learning Group, Inc.*		51		243
Cidara Therapeutics, Inc.*		19		242
XBiotech, Inc.*		16		239
Calithera Biosciences, Inc.*		43		233
Neff Corp. — Class A*		41		229
Verastem, Inc.*		128		229
Alliance HealthCare Services, Inc.*		22		215
Invitae Corp.*		29		209
CorMedix, Inc.*		105		209
Lifeway Foods, Inc.*		19		199
Carbylan Therapeutics, Inc.*		48		171
Asterias Biotherapeutics, Inc.*		42		163
Abeona Therapeutics, Inc.*		36		146
Arcadia Biosciences, Inc.*		33		101
SFX Entertainment, Inc.*		190		97
Tobira Therapeutics, Inc.*		10		97
Fairway Group Holdings Corp.*		85		89
Total Consumer, Non-cyclical				1,446,070
Consumer, Cyclical - 9.5%
Casey’s General Stores, Inc.		153		15,746
Burlington Stores, Inc.*		298		15,210
Vail Resorts, Inc.		144		15,074
Buffalo Wild Wings, Inc.*		74		14,315
Restoration Hardware Holdings, Inc.*		140		13,063
American Eagle Outfitters, Inc.		813		12,706
Pool Corp.		172		12,437
Allegiant Travel Co. — Class A		53		11,461
Jack in the Box, Inc.		148		11,403
Cracker Barrel Old Country Store, Inc.		76		11,193
Ascena Retail Group, Inc.*		784		10,905
Tenneco, Inc.*		242		10,833
Cheesecake Factory, Inc.		192		10,360
Texas Roadhouse, Inc. — Class A		277		10,304
Dana Holding Corp.		644		10,227
Big Lots, Inc.		212		10,159

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Lithia Motors, Inc. — Class A		90	$	9,730
G-III Apparel Group Ltd.*		157		9,680
Cooper Tire & Rubber Co.		227		8,969
Bloomin’ Brands, Inc.		489		8,890
Chico’s FAS, Inc.		565		8,887
Wolverine World Wide, Inc.		407		8,807
Asbury Automotive Group, Inc.*		108		8,764
TRI Pointe Group, Inc.*		638		8,352
Steven Madden Ltd.*		222		8,130
Men’s Wearhouse, Inc.		190		8,079
Pinnacle Entertainment, Inc.*		238		8,053
Group 1 Automotive, Inc.		93		7,919
Deckers Outdoor Corp.*		136		7,896
Papa John’s International, Inc.		115		7,875
Five Below, Inc.*		228		7,657
Ryland Group, Inc.		184		7,513
HNI Corp.		175		7,507
HSN, Inc.		128		7,327
Churchill Downs, Inc.		53		7,092
Marriott Vacations Worldwide Corp.		102		6,951
Herman Miller, Inc.		235		6,777
Columbia Sportswear Co.		114		6,702
Liberty TripAdvisor Holdings, Inc. — Class A*		295		6,540
Gentherm, Inc.*		142		6,379
Beacon Roofing Supply, Inc.*		196		6,367
UniFirst Corp.		59		6,302
Express, Inc.*		352		6,290
DineEquity, Inc.		67		6,141
La Quinta Holdings, Inc.*		389		6,138
Steelcase, Inc. — Class A		329		6,057
Core-Mark Holding Company, Inc.		92		6,021
American Axle & Manufacturing Holdings, Inc.*		299		5,962
PriceSmart, Inc.		76		5,878
Interface, Inc. — Class A		261		5,857
Abercrombie & Fitch Co. — Class A		275		5,827
Meritage Homes Corp.*		157		5,734
G&K Services, Inc. — Class A		84		5,596
Mobile Mini, Inc.		181		5,573
Genesco, Inc.*		95		5,422
Dorman Products, Inc.*		106		5,394
La-Z-Boy, Inc.		202		5,366
Penn National Gaming, Inc.*		315		5,286
Caleres, Inc.		173		5,282
DreamWorks Animation SKG, Inc. — Class A*		300		5,235
Guess?, Inc.		244		5,212
Popeyes Louisiana Kitchen, Inc.*		92		5,185
Boyd Gaming Corp.*		315		5,135
Children’s Place, Inc.		86		4,960
Essendant, Inc.		151		4,897
Fiesta Restaurant Group, Inc.*		106		4,809
SeaWorld Entertainment, Inc.		270		4,809
Sonic Corp.		205		4,705
Hawaiian Holdings, Inc.*		188		4,640
CalAtlantic Group, Inc.*		577		4,616
Bob Evans Farms, Inc.		104		4,508
Select Comfort Corp.*		206		4,507
First Cash Financial Services, Inc.*		112		4,486
KB Home		322		4,363
Knoll, Inc.		193		4,242
Red Robin Gourmet Burgers, Inc.*		56		4,241
Oxford Industries, Inc.		57		4,211
Buckle, Inc.		112		4,141
Outerwall, Inc.		72		4,099
Meritor, Inc.*		385		4,093
MDC Holdings, Inc.		154		4,032
ScanSource, Inc.*		113		4,007
Crocs, Inc.*		304		3,929
Belmond Ltd. — Class A*		382		3,862
Vitamin Shoppe, Inc.*		118		3,852
Diamond Resorts International, Inc.*		164		3,836
Krispy Kreme Doughnuts, Inc.*		256		3,745
Cato Corp. — Class A		110		3,743
ClubCorp Holdings, Inc.		173		3,713
Denny’s Corp.*		333		3,673
BJ’s Restaurants, Inc.*		85		3,658
Finish Line, Inc. — Class A		182		3,513
International Speedway Corp. — Class A		110		3,489
Hibbett Sports, Inc.*		99		3,466
iRobot Corp.*		118		3,439
American Woodmark Corp.*		53		3,438
Virgin America, Inc.*		100		3,423
Dave & Buster’s Entertainment, Inc.*		90		3,405
SkyWest, Inc.		204		3,403
Rush Enterprises, Inc. — Class A*		140		3,388
Mattress Firm Holding Corp.*		81		3,383
TiVo, Inc.*		383		3,317
Remy International, Inc.		113		3,305
National CineMedia, Inc.		242		3,248
Steiner Leisure Ltd.*		50		3,159
Cooper-Standard Holding, Inc.*		54		3,132
Cash America International, Inc.		109		3,049
Eros International plc*		112		3,045
Zoe’s Kitchen, Inc.*		76		3,001
Wesco Aircraft Holdings, Inc.*		243		2,965
Wabash National Corp.*		268		2,837
Libbey, Inc.		87		2,837
Interval Leisure Group, Inc.		154		2,827
Standard Motor Products, Inc.		79		2,756
Rentrak Corp.*		50		2,704
Ethan Allen Interiors, Inc.		101		2,667
Sonic Automotive, Inc. — Class A		130		2,655
Universal Electronics, Inc.*		63		2,648
Conn’s, Inc.*		108		2,596
Pep Boys-Manny Moe & Jack*		212		2,584
Callaway Golf Co.		308		2,572
Biglari Holdings, Inc.*		7		2,560

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Navistar International Corp.*		201	$	2,556
Iconix Brand Group, Inc.*		188		2,542
Pier 1 Imports, Inc.		356		2,456
Barnes & Noble, Inc.		200		2,422
Performance Sports Group Ltd.*		179		2,402
Taylor Morrison Home Corp. — Class A*		128		2,388
Cavco Industries, Inc.*		35		2,383
M/I Homes, Inc.*		97		2,287
Ruth’s Hospitality Group, Inc.		138		2,241
Motorcar Parts of America, Inc.*		70		2,194
Scientific Games Corp. — Class A*		209		2,184
Regis Corp.*		162		2,122
AMC Entertainment Holdings, Inc. — Class A		84		2,116
H&E Equipment Services, Inc.		123		2,057
Winnebago Industries, Inc.		107		2,049
Francesca’s Holdings Corp.*		167		2,042
Tower International, Inc.*		84		1,996
Installed Building Products, Inc.*		78		1,972
Carmike Cinemas, Inc.*		97		1,949
Haverty Furniture Companies, Inc.		80		1,878
Chuy’s Holdings, Inc.*		66		1,874
DTS, Inc.*		70		1,869
Nautilus, Inc.*		124		1,860
Douglas Dynamics, Inc.		89		1,768
Fred’s, Inc. — Class A		148		1,754
Superior Industries International, Inc.		93		1,737
Unifi, Inc.*		58		1,729
Carrols Restaurant Group, Inc.*		140		1,666
Movado Group, Inc.		64		1,653
Barnes & Noble Education, Inc.*		127		1,614
Party City Holdco, Inc.*		100		1,597
William Lyon Homes — Class A*		77		1,586
Kirkland’s, Inc.		72		1,551
Isle of Capri Casinos, Inc.*		88		1,535
Sequential Brands Group, Inc.*		106		1,534
Ruby Tuesday, Inc.*		244		1,515
LGI Homes, Inc.*		55		1,495
Modine Manufacturing Co.*		189		1,487
Shoe Carnival, Inc.		60		1,428
MarineMax, Inc.*		101		1,427
Citi Trends, Inc.		61		1,426
WCI Communities, Inc.*		63		1,426
Marcus Corp.		73		1,412
Lumber Liquidators Holdings, Inc.*		107		1,406
Zumiez, Inc.*		87		1,360
Daktronics, Inc.		153		1,327
Stage Stores, Inc.		134		1,319
Culp, Inc.		41		1,315
Caesars Acquisition Co. — Class A*		182		1,292
Del Frisco’s Restaurant Group, Inc.*		93		1,292
Caesars Entertainment Corp.*		219		1,290
PetMed Express, Inc.		80		1,288
Kimball International, Inc. — Class B		136		1,287
Tile Shop Holdings, Inc.*		107		1,282
Beazer Homes USA, Inc.*		95		1,266
EZCORP, Inc. — Class A*		204		1,259
Veritiv Corp.*		33		1,229
Bassett Furniture Industries, Inc.		43		1,198
Century Communities, Inc.*		60		1,191
America’s Car-Mart, Inc.*		35		1,158
Republic Airways Holdings, Inc.*		200		1,156
Shake Shack, Inc. — Class A*		24		1,138
Stein Mart, Inc.		117		1,133
Arctic Cat, Inc.		51		1,131
Fox Factory Holding Corp.*		67		1,130
Titan International, Inc.		170		1,124
Perry Ellis International, Inc.*		49		1,076
Vera Bradley, Inc.*		84		1,059
Build-A-Bear Workshop, Inc. — Class A*		56		1,058
Winmark Corp.		10		1,029
Hooker Furniture Corp.		43		1,012
Eldorado Resorts, Inc.*		112		1,010
Metaldyne Performance Group, Inc.		48		1,008
Malibu Boats, Inc. — Class A*		70		979
Habit Restaurants, Inc. — Class A*		45		963
Potbelly Corp.*		86		947
Tuesday Morning Corp.*		174		941
Freshpet, Inc.*		87		914
Strattec Security Corp.		14		883
Container Store Group, Inc.*		62		873
PC Connection, Inc.		42		871
Boot Barn Holdings, Inc.*		47		866
Sportsman’s Warehouse Holdings, Inc.*		70		862
Miller Industries, Inc.		44		860
NACCO Industries, Inc. — Class A		18		856
Reading International, Inc. — Class A*		66		836
Hovnanian Enterprises, Inc. — Class A*		471		834
Speedway Motorsports, Inc.		46		830
Destination XL Group, Inc.*		142		825
Federal-Mogul Holdings Corp.*		120		820
Jamba, Inc.*		55		784
Titan Machinery, Inc.*		68		781
Green Brick Partners, Inc.*		71		769
Flexsteel Industries, Inc.		24		750
Big 5 Sporting Goods Corp.		72		747
Monarch Casino & Resort, Inc.*		41		737
Weyco Group, Inc.		26		703
Bravo Brio Restaurant Group, Inc.*		60		676
Noodles & Co.*		47		666
AV Homes, Inc.*		49		662
Escalade, Inc.		40		632
JAKKS Pacific, Inc.*		74		630
Horizon Global Corp.*		71		626
West Marine, Inc.*		71		623
VOXX International Corp. — Class A*		83		616
Intrawest Resorts Holdings, Inc.*		71		615

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Lifetime Brands, Inc.		43	$	601
El Pollo Loco Holdings, Inc.*		54		582
Black Diamond, Inc.*		90		565
Bojangles’, Inc.*		33		558
Superior Uniform Group, Inc.		31		556
J Alexander’s Holdings, Inc.*		55		547
Papa Murphy’s Holdings, Inc.*		36		528
Cherokee, Inc.*		34		528
Kona Grill, Inc.*		33		520
Skullcandy, Inc.*		91		503
Commercial Vehicle Group, Inc.*		119		480
New Home Company, Inc.*		37		479
Johnson Outdoors, Inc. — Class A		21		443
Accuride Corp.*		153		424
Systemax, Inc.*		48		360
Morgans Hotel Group Co.*		107		355
Castle Brands, Inc.*		263		347
Tilly’s, Inc. — Class A*		46		339
Marine Products Corp.		42		291
Flex Pharma, Inc.*		22		264
Empire Resorts, Inc.*		62		261
Vince Holding Corp.*		64		220
Blue Bird Corp.*		20		199
Christopher & Banks Corp.*		147		163
bebe stores, Inc.		113		106
Total Consumer, Cyclical				883,518
Industrial - 8.1%
Berry Plastics Group, Inc.*		471		14,163
Teledyne Technologies, Inc.*		140		12,641
FEI Co.		164		11,979
Curtiss-Wright Corp.		187		11,673
Woodward, Inc.		272		11,069
EMCOR Group, Inc.		248		10,973
Con-way, Inc.		227		10,770
Tech Data Corp.*		145		9,933
Dycom Industries, Inc.*		135		9,769
CLARCOR, Inc.		198		9,441
EnerSys		175		9,377
Esterline Technologies Corp.*		123		8,842
Moog, Inc. — Class A*		153		8,273
Generac Holdings, Inc.*		273		8,215
Littelfuse, Inc.		90		8,205
IMAX Corp.*		238		8,042
Louisiana-Pacific Corp.*		562		8,003
Belden, Inc.		168		7,844
Barnes Group, Inc.		216		7,787
KLX, Inc.*		208		7,434
Masonite International Corp.*		119		7,208
HEICO Corp. — Class A		158		7,175
Sanmina Corp.*		326		6,966
Rexnord Corp.*		403		6,843
XPO Logistics, Inc.*		282		6,721
Mueller Industries, Inc.		224		6,626
Matson, Inc.		171		6,581
Hillenbrand, Inc.		249		6,476
Scorpio Tankers, Inc.		705		6,464
Knowles Corp.*		344		6,340
Proto Labs, Inc.*		93		6,231
Applied Industrial Technologies, Inc.		159		6,065
OSI Systems, Inc.*		78		6,003
Watts Water Technologies, Inc. — Class A		112		5,916
Knight Transportation, Inc.		246		5,904
KapStone Paper and Packaging Corp.		354		5,845
Tetra Tech, Inc.		237		5,761
Simpson Manufacturing Company, Inc.		166		5,558
RBC Bearings, Inc.*		93		5,555
Headwaters, Inc.*		291		5,471
Universal Display Corp.*		159		5,390
Nordic American Tankers Ltd.		352		5,350
Drew Industries, Inc.		96		5,242
Swift Transportation Co. — Class A*		347		5,212
Apogee Enterprises, Inc.		116		5,179
Vishay Intertechnology, Inc.		534		5,174
Hub Group, Inc. — Class A*		142		5,170
Coherent, Inc.*		94		5,142
Plexus Corp.*		133		5,131
Franklin Electric Company, Inc.		188		5,119
Forward Air Corp.		122		5,062
AZZ, Inc.		102		4,966
Mueller Water Products, Inc. — Class A		635		4,864
Itron, Inc.*		152		4,850
Methode Electronics, Inc.		152		4,849
MSA Safety, Inc.		117		4,676
TASER International, Inc.*		211		4,647
Granite Construction, Inc.		155		4,599
Exponent, Inc.		103		4,590
Universal Forest Products, Inc.		79		4,557
Advanced Energy Industries, Inc.*		171		4,497
Benchmark Electronics, Inc.*		206		4,483
John Bean Technologies Corp.		117		4,475
Werner Enterprises, Inc.		175		4,393
Actuant Corp. — Class A		235		4,322
Sturm Ruger & Company, Inc.		73		4,285
Trex Company, Inc.*		127		4,233
MasTec, Inc.*		264		4,179
Tennant Co.		73		4,101
Comfort Systems USA, Inc.		148		4,034
Aerojet Rocketdyne Holdings, Inc.*		246		3,980
Heartland Express, Inc.		199		3,968
Boise Cascade Co.*		156		3,934
HEICO Corp.		80		3,910
Greif, Inc. — Class A		122		3,893
Rogers Corp.*		73		3,882
Kaman Corp.		108		3,872
Advanced Drainage Systems, Inc.		133		3,848
Ship Finance International Ltd.		234		3,803

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Standex International Corp.		50	$	3,768
US Ecology, Inc.		86		3,754
ESCO Technologies, Inc.		103		3,698
Brady Corp. — Class A		188		3,696
Cubic Corp.		87		3,649
Smith & Wesson Holding Corp.*		212		3,576
EnPro Industries, Inc.		91		3,564
Atlas Air Worldwide Holdings, Inc.*		99		3,421
Briggs & Stratton Corp.		176		3,399
Federal Signal Corp.		246		3,372
Greenbrier Companies, Inc.		105		3,371
II-VI, Inc.*		207		3,329
Lindsay Corp.		49		3,322
Badger Meter, Inc.		57		3,309
Albany International Corp. — Class A		112		3,204
AAON, Inc.		162		3,140
Astronics Corp.*		76		3,073
Saia, Inc.*		99		3,064
TriMas Corp.*		179		2,927
Rofin-Sinar Technologies, Inc.*		112		2,904
Harsco Corp.		316		2,866
CIRCOR International, Inc.		69		2,768
Primoris Services Corp.		153		2,740
US Concrete, Inc.*		57		2,724
DHT Holdings, Inc.		366		2,716
Encore Wire Corp.		82		2,679
Raven Industries, Inc.		157		2,661
AAR Corp.		140		2,656
ArcBest Corp.		103		2,654
CTS Corp.		139		2,573
Fabrinet*		140		2,566
Continental Building Products, Inc.*		124		2,547
FARO Technologies, Inc.*		71		2,485
Astec Industries, Inc.		74		2,480
Sun Hydraulics Corp.		90		2,472
Tutor Perini Corp.*		148		2,436
Quanex Building Products Corp.		134		2,435
Tidewater, Inc.		185		2,431
Altra Industrial Motion Corp.		105		2,428
Nortek, Inc.*		38		2,406
Aegion Corp. — Class A*		145		2,390
AVX Corp.		182		2,382
Chart Industries, Inc.*		121		2,324
PGT, Inc.*		188		2,309
General Cable Corp.		193		2,297
Echo Global Logistics, Inc.*		117		2,293
Gibraltar Industries, Inc.*		122		2,239
Hyster-Yale Materials Handling, Inc.		38		2,198
MYR Group, Inc.*		83		2,175
Newport Corp.*		157		2,159
Griffon Corp.		135		2,129
Lydall, Inc.*		72		2,051
Roadrunner Transportation Systems, Inc.*		111		2,042
Builders FirstSource, Inc.*		159		2,016
Patrick Industries, Inc.*		50		1,975
Summit Materials, Inc. — Class A*		101		1,896
Haynes International, Inc.		50		1,892
NN, Inc.		100		1,850
Alamo Group, Inc.		39		1,823
Teekay Tankers Ltd. — Class A		263		1,815
Gorman-Rupp Co.		75		1,798
TAL International Group, Inc.*		131		1,791
Air Transport Services Group, Inc.*		208		1,778
Argan, Inc.		51		1,769
Global Brass & Copper Holdings, Inc.		85		1,743
GSI Group, Inc.*		136		1,731
Celadon Group, Inc.		108		1,730
YRC Worldwide, Inc.*		129		1,711
Hornbeck Offshore Services, Inc.*		126		1,705
Kadant, Inc.		43		1,677
UTI Worldwide, Inc.*		364		1,671
National Presto Industries, Inc.		19		1,601
TimkenSteel Corp.		158		1,599
GasLog Ltd.		164		1,578
Aerovironment, Inc.*		78		1,563
Marten Transport Ltd.		96		1,552
TTM Technologies, Inc.*		233		1,452
Textainer Group Holdings Ltd.		88		1,451
Mesa Laboratories, Inc.		13		1,448
Columbus McKinnon Corp.		79		1,435
Park Electrochemical Corp.		80		1,407
Kimball Electronics, Inc.*		115		1,372
Stoneridge, Inc.*		111		1,370
American Railcar Industries, Inc.		37		1,338
DXP Enterprises, Inc.*		49		1,337
Myers Industries, Inc.		97		1,300
Tredegar Corp.		99		1,295
Era Group, Inc.*		85		1,272
Checkpoint Systems, Inc.		166		1,204
LSB Industries, Inc.*		78		1,195
Insteel Industries, Inc.		73		1,174
GP Strategies Corp.*		51		1,164
Frontline Ltd.*		427		1,149
NCI Building Systems, Inc.*		108		1,142
Navios Maritime Acquisition Corp.		324		1,140
Trinseo S.A.*		45		1,136
Powell Industries, Inc.		36		1,084
Blount International, Inc.*		192		1,069
Chase Corp.		27		1,064
Stock Building Supply Holdings, Inc.*		60		1,057
Park-Ohio Holdings Corp.		36		1,039
American Science & Engineering, Inc.		29		1,031
PowerSecure International, Inc.*		89		1,025
Dorian LPG Ltd.*		99		1,021
Ply Gem Holdings, Inc.*		86		1,006
Scorpio Bulkers, Inc.*		663		968

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Fluidigm Corp.*		114	$	925
NVE Corp.		19		922
AEP Industries, Inc.*		16		917
Furmanite Corp.*		150		912
Casella Waste Systems, Inc. — Class A*		156		905
Ardmore Shipping Corp.		72		870
Ducommun, Inc.*		43		863
Mistras Group, Inc.*		66		848
Navios Maritime Holdings, Inc.		338		842
FreightCar America, Inc.		49		841
Sparton Corp.*		39		835
Covenant Transportation Group, Inc. — Class A*		46		827
Applied Optoelectronics, Inc.*		44		827
Bel Fuse, Inc. — Class B		42		816
ZAGG, Inc.*		117		794
Kratos Defense & Security Solutions, Inc.*		188		793
TRC Companies, Inc.*		67		793
LSI Industries, Inc.		86		726
Graham Corp.		41		724
Control4 Corp.*		87		710
Hurco Companies, Inc.		27		708
CAI International, Inc.*		69		696
VSE Corp.		17		681
Vicor Corp.*		66		673
USA Truck, Inc.*		39		672
Orion Marine Group, Inc.*		111		664
Golden Ocean Group Ltd.*		264		649
Imprivata, Inc.*		36		640
Multi-Fineline Electronix, Inc.*		36		601
Core Molding Technologies, Inc.*		31		572
Vishay Precision Group, Inc.*		49		568
Xerium Technologies, Inc.*		43		558
CECO Environmental Corp.		68		557
Radiant Logistics, Inc.*		124		553
Eagle Bulk Shipping, Inc.*		88		522
LB Foster Co. — Class A		42		516
Universal Truckload Services, Inc.		33		514
Heritage-Crystal Clean, Inc.*		49		503
Lawson Products, Inc.*		23		498
Northwest Pipe Co.*		38		496
Hill International, Inc.*		145		476
Nordic American Offshore Ltd.		75		450
Omega Flex, Inc.		13		434
Allied Motion Technologies, Inc.		24		426
Safe Bulkers, Inc.		150		414
Twin Disc, Inc.		33		410
Power Solutions International, Inc.*		18		409
PAM Transportation Services, Inc.*		12		397
Fenix Parts, Inc.*		55		367
Olympic Steel, Inc.		36		358
Handy & Harman Ltd.*		10		240
NL Industries, Inc.*		28		84
Ultrapetrol Bahamas Ltd.*		85		35
Total Industrial				755,694
Technology - 7.7%
Tyler Technologies, Inc.*		133		19,857
Manhattan Associates, Inc.*		291		18,128
MAXIMUS, Inc.		260		15,486
Guidewire Software, Inc.*		277		14,564
EPAM Systems, Inc.*		193		14,382
Dealertrack Technologies, Inc.*		216		13,642
Cavium, Inc.*		219		13,439
Qlik Technologies, Inc.*		360		13,122
Aspen Technology, Inc.*		337		12,776
Microsemi Corp.*		375		12,307
Synaptics, Inc.*		145		11,956
Integrated Device Technology, Inc.*		585		11,876
Fair Isaac Corp.		124		10,478
Verint Systems, Inc.*		242		10,442
Blackbaud, Inc.		185		10,382
Mentor Graphics Corp.		417		10,271
ACI Worldwide, Inc.*		461		9,736
SYNNEX Corp.		114		9,697
Take-Two Interactive Software, Inc.*		334		9,596
Proofpoint, Inc.*		156		9,409
Medidata Solutions, Inc.*		218		9,180
Convergys Corp.		390		9,012
Electronics for Imaging, Inc.*		185		8,007
Monolithic Power Systems, Inc.		156		7,987
Cirrus Logic, Inc.*		250		7,878
Diebold, Inc.		256		7,622
FleetMatics Group plc*		151		7,413
Science Applications International Corp.		182		7,318
Entegris, Inc.*		553		7,293
MicroStrategy, Inc. — Class A*		37		7,269
Imperva, Inc.*		111		7,268
Ambarella, Inc.*		124		7,166
CACI International, Inc. — Class A*		96		7,101
MKS Instruments, Inc.		211		7,074
Cornerstone OnDemand, Inc.*		213		7,028
Silicon Laboratories, Inc.*		168		6,979
NetScout Systems, Inc.*		194		6,862
Demandware, Inc.*		132		6,822
Tessera Technologies, Inc.		207		6,708
Fairchild Semiconductor International, Inc. — Class A*		460		6,458
Acxiom Corp.*		309		6,106
Intersil Corp. — Class A		520		6,084
CommVault Systems, Inc.*		178		6,045
OmniVision Technologies, Inc.*		229		6,014
Virtusa Corp.*		117		6,003
Syntel, Inc.*		131		5,936
Rambus, Inc.*		456		5,381
Stratasys Ltd.*		201		5,324
Progress Software Corp.*		199		5,140

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Synchronoss Technologies, Inc.*		153	$	5,018
Power Integrations, Inc.		117		4,934
ExlService Holdings, Inc.*		132		4,875
Nimble Storage, Inc.*		200		4,824
MedAssets, Inc.*		238		4,774
PMC-Sierra, Inc.*		688		4,658
Luxoft Holding, Inc.*		72		4,557
Paycom Software, Inc.*		125		4,489
Omnicell, Inc.*		143		4,447
SPS Commerce, Inc.*		65		4,413
Envestnet, Inc.*		147		4,406
Advanced Micro Devices, Inc.*		2,509		4,315
Bottomline Technologies de, Inc.*		162		4,052
Super Micro Computer, Inc.*		146		3,980
CSG Systems International, Inc.		129		3,973
Semtech Corp.*		262		3,956
Insight Enterprises, Inc.*		153		3,955
Sykes Enterprises, Inc.*		154		3,927
Cabot Microelectronics Corp.*		98		3,797
Callidus Software, Inc.*		218		3,704
Rovi Corp.*		349		3,661
Inphi Corp.*		152		3,654
MTS Systems Corp.		59		3,546
QLogic Corp.*		344		3,526
AVG Technologies N.V.*		162		3,524
Pegasystems, Inc.		141		3,470
RealPage, Inc.*		208		3,457
Monotype Imaging Holdings, Inc.		158		3,448
BroadSoft, Inc.*		115		3,445
HubSpot, Inc.*		74		3,431
2U, Inc.*		95		3,411
Veeco Instruments, Inc.*		161		3,302
Cray, Inc.*		161		3,189
Diodes, Inc.*		148		3,163
Cvent, Inc.*		93		3,130
Brooks Automation, Inc.		267		3,127
Constant Contact, Inc.*		127		3,078
InvenSense, Inc. — Class A*		306		2,843
Qualys, Inc.*		97		2,761
Integrated Silicon Solution, Inc.		126		2,708
M/A-COM Technology Solutions Holdings, Inc.*		93		2,696
Ebix, Inc.		106		2,646
ManTech International Corp. — Class A		101		2,596
MaxLinear, Inc. — Class A*		204		2,538
Quality Systems, Inc.		197		2,459
Photronics, Inc.*		263		2,383
Dot Hill Systems Corp.*		241		2,345
Unisys Corp.*		197		2,344
Mercury Systems, Inc.*		135		2,148
PROS Holdings, Inc.*		95		2,103
Interactive Intelligence Group, Inc.*		70		2,080
Glu Mobile, Inc.*		475		2,076
Xura, Inc.*		90		2,014
Globant S.A.*		64		1,958
Merge Healthcare, Inc.*		273		1,938
Actua Corp.*		160		1,882
Silver Spring Networks, Inc.*		145		1,868
Engility Holdings, Inc.		72		1,856
Computer Programs & Systems, Inc.		44		1,854
TeleTech Holdings, Inc.		68		1,822
inContact, Inc.*		242		1,817
Applied Micro Circuits Corp.*		337		1,789
Lattice Semiconductor Corp.*		461		1,775
Amkor Technology, Inc.*		390		1,751
Ultratech, Inc.*		109		1,746
LivePerson, Inc.*		225		1,701
Epiq Systems, Inc.		128		1,654
Pericom Semiconductor Corp.		89		1,624
Rudolph Technologies, Inc.*		126		1,569
FormFactor, Inc.*		227		1,539
RealD, Inc.*		159		1,528
CEVA, Inc.*		81		1,504
Xcerra Corp.*		227		1,426
Immersion Corp.*		111		1,247
Press Ganey Holdings, Inc.*		41		1,213
Axcelis Technologies, Inc.*		448		1,196
Digi International, Inc.*		99		1,167
Vocera Communications, Inc.*		102		1,164
Nanometrics, Inc.*		95		1,153
Sapiens International Corporation N.V.		99		1,140
Eastman Kodak Co.*		73		1,140
Tangoe, Inc.*		154		1,109
IXYS Corp.		98		1,094
SciQuest, Inc.*		109		1,090
QAD, Inc. — Class A		42		1,075
PDF Solutions, Inc.*		107		1,070
Avid Technology, Inc.*		128		1,019
Cohu, Inc.		103		1,016
Ciber, Inc.*		311		989
Benefitfocus, Inc.*		31		969
Sigma Designs, Inc.*		140		965
American Software, Inc. — Class A		99		933
OPOWER, Inc.*		104		927
Exar Corp.*		155		922
InnerWorkings, Inc.*		147		919
Digimarc Corp.*		30		917
New Relic, Inc.*		23		877
Kopin Corp.*		278		873
Jive Software, Inc.*		184		859
Seachange International, Inc.*		132		832
Model N, Inc.*		83		831
KEYW Holding Corp.*		132		812
DSP Group, Inc.*		89		811
Carbonite, Inc.*		71		790
Everyday Health, Inc.*		86		786
Cascade Microtech, Inc.*		54		764

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Ultra Clean Holdings, Inc.*		125	$	718
Mattson Technology, Inc.*		296		690
Agilysys, Inc.*		60		667
Hortonworks, Inc.*		30		657
TubeMogul, Inc.*		61		642
Brightcove, Inc.*		129		635
Quantum Corp.*		897		625
Alpha & Omega Semiconductor Ltd.*		80		623
EMCORE Corp.*		85		578
Castlight Health, Inc. — Class B*		133		559
Varonis Systems, Inc.*		35		545
Silicon Graphics International Corp.*		138		542
MobileIron, Inc.*		163		505
Barracuda Networks, Inc.*		32		499
Violin Memory, Inc.*		358		494
Datalink Corp.*		81		484
Guidance Software, Inc.*		80		482
Park City Group, Inc.*		42		444
Workiva, Inc.*		29		441
Five9, Inc.*		94		348
Digital Turbine, Inc.*		192		348
Imation Corp.*		139		296
Amber Road, Inc.*		70		295
ExOne Co.*		42		282
Apigee Corp.*		21		222
Code Rebel Corp.*		5		36
Total Technology				715,307
Communications - 4.4%
j2 Global, Inc.		190		13,461
Houghton Mifflin Harcourt Co.*		540		10,967
ViaSat, Inc.*		169		10,866
Infinera Corp.*		554		10,836
Ciena Corp.*		487		10,091
Time, Inc.		432		8,230
Plantronics, Inc.		147		7,475
GrubHub, Inc.*		297		7,228
InterDigital, Inc.		142		7,185
LogMeIn, Inc.*		98		6,680
Sinclair Broadcast Group, Inc. — Class A		262		6,634
Anixter International, Inc.*		113		6,529
New York Times Co. — Class A		542		6,401
comScore, Inc.*		136		6,276
Meredith Corp.		145		6,174
WebMD Health Corp. — Class A*		149		5,936
NeuStar, Inc. — Class A*		218		5,932
Polycom, Inc.*		562		5,890
Nexstar Broadcasting Group, Inc. — Class A		124		5,871
Shutterfly, Inc.*		156		5,576
DigitalGlobe, Inc.*		286		5,440
Media General, Inc.*		378		5,288
Cogent Communications Holdings, Inc.		182		4,944
West Corp.		206		4,614
NIC, Inc.		259		4,587
Finisar Corp.*		409		4,552
zulily, Inc. — Class A*		259		4,506
Stamps.com, Inc.*		59		4,367
Vonage Holdings Corp.*		732		4,304
Zendesk, Inc.*		212		4,178
NETGEAR, Inc.*		143		4,171
Shenandoah Telecommunications Co.		97		4,152
Scholastic Corp.		106		4,130
EW Scripps Co. — Class A		233		4,117
Ubiquiti Networks, Inc.		121		4,101
Marketo, Inc.*		137		3,894
Web.com Group, Inc.*		184		3,879
Consolidated Communications Holdings, Inc.		199		3,834
RingCentral, Inc. — Class A*		211		3,830
Gogo, Inc.*		234		3,576
Infoblox, Inc.*		223		3,563
Ruckus Wireless, Inc.*		298		3,540
Ixia*		239		3,463
Gray Television, Inc.*		263		3,356
EarthLink Holdings Corp.		406		3,159
MDC Partners, Inc. — Class A		171		3,151
Endurance International Group Holdings, Inc.*		231		3,086
ADTRAN, Inc.		208		3,037
Atlantic Tele-Network, Inc.		41		3,031
Inteliquent, Inc.		133		2,970
Globalstar, Inc.*		1,878		2,948
Wayfair, Inc. — Class A*		84		2,945
8x8, Inc.*		348		2,878
Bankrate, Inc.*		264		2,732
New Media Investment Group, Inc.		176		2,721
Cincinnati Bell, Inc.*		827		2,580
Premiere Global Services, Inc.*		183		2,514
Windstream Holdings, Inc.		397		2,438
Loral Space & Communications, Inc.*		51		2,401
General Communication, Inc. — Class A*		138		2,382
Shutterstock, Inc.*		78		2,359
CalAmp Corp.*		143		2,301
GTT Communications, Inc.*		97		2,256
Blucora, Inc.*		162		2,231
HealthStream, Inc.*		100		2,181
Chegg, Inc.*		301		2,170
Gigamon, Inc.*		108		2,161
Perficient, Inc.*		140		2,160
Coupons.com, Inc.*		240		2,160
FTD Companies, Inc.*		72		2,146
Harmonic, Inc.*		368		2,134
Global Eagle Entertainment, Inc.*		183		2,101
VASCO Data Security International, Inc.*		122		2,079
Textura Corp.*		78		2,016
World Wrestling Entertainment, Inc. — Class A		119		2,011
Iridium Communications, Inc.*		324		1,993
ShoreTel, Inc.*		254		1,897
Q2 Holdings, Inc.*		76		1,879

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Lands’ End, Inc.*		69	$	1,864
ePlus, Inc.*		22		1,740
Entravision Communications Corp. — Class A		251		1,667
Blue Nile, Inc.*		47		1,576
Pacific DataVision, Inc.*		51		1,525
Spok Holdings, Inc.		91		1,498
Straight Path Communications, Inc. — Class B*		37		1,495
XO Group, Inc.*		105		1,484
Rubicon Project, Inc.*		102		1,482
Calix, Inc.*		175		1,363
Comtech Telecommunications Corp.		65		1,340
Internap Corp.*		217		1,330
Extreme Networks, Inc.*		394		1,324
Intralinks Holdings, Inc.*		159		1,318
ORBCOMM, Inc.*		235		1,311
DHI Group, Inc.*		175		1,279
Wix.com Ltd.*		73		1,272
FairPoint Communications, Inc.*		82		1,264
RetailMeNot, Inc.*		153		1,261
Safeguard Scientifics, Inc.*		81		1,259
Lionbridge Technologies, Inc.*		253		1,250
Boingo Wireless, Inc.*		145		1,201
RigNet, Inc.*		47		1,199
Yodlee, Inc.*		72		1,161
Sonus Networks, Inc.*		195		1,115
Lumos Networks Corp.		90		1,094
Bazaarvoice, Inc.*		240		1,082
Etsy, Inc.*		78		1,068
Entercom Communications Corp. — Class A*		101		1,026
TrueCar, Inc.*		193		1,006
Alliance Fiber Optic Products, Inc.		57		974
Zix Corp.*		227		956
IDT Corp. — Class B		66		944
Daily Journal Corp.*		5		931
1-800-Flowers.com, Inc. — Class A*		99		901
Black Box Corp.		61		899
Hawaiian Telcom Holdco, Inc.*		43		894
Oclaro, Inc.*		385		886
Telenav, Inc.*		112		875
Angie’s List, Inc.*		173		872
ChannelAdvisor Corp.*		86		855
Millennial Media, Inc.*		471		824
Tribune Publishing Co.		104		815
Overstock.com, Inc.*		47		807
A10 Networks, Inc.*		134		803
QuinStreet, Inc.*		141		783
Reis, Inc.		34		770
NeoPhotonics Corp.*		110		749
Intelsat S.A.*		116		746
Crown Media Holdings, Inc. — Class A*		137		733
Journal Media Group, Inc.		97		728
Martha Stewart Living Omnimedia, Inc. — Class A*		122		727
Liquidity Services, Inc.*		95		702
TeleCommunication Systems, Inc. — Class A*		198		681
Harte-Hanks, Inc.		190		671
TechTarget, Inc.*		77		656
Box, Inc. — Class A*		52		654
KVH Industries, Inc.*		64		640
VirnetX Holding Corp.*		179		637
NTELOS Holdings Corp.*		70		632
Central European Media Enterprises Ltd. — Class A*		291		629
Clearfield, Inc.*		45		604
United Online, Inc.*		58		580
HC2 Holdings, Inc.*		82		575
Aerohive Networks, Inc.*		93		556
Hemisphere Media Group, Inc.*		40		544
Marchex, Inc. — Class B		129		520
EVINE Live, Inc.*		197		516
Sizmek, Inc.*		85		509
Rocket Fuel, Inc.*		109		509
Saga Communications, Inc. — Class A		15		504
Limelight Networks, Inc.*		240		458
ModusLink Global Solutions, Inc.*		149		426
Cumulus Media, Inc. — Class A*		594		418
Preformed Line Products Co.		11		409
RealNetworks, Inc.*		92		376
Marin Software, Inc.*		119		372
Novatel Wireless, Inc.*		149		329
Corindus Vascular Robotics, Inc.*		89		275
Townsquare Media, Inc. — Class A*		27		264
Travelzoo, Inc.*		29		240
Connecture, Inc.*		27		123
MaxPoint Interactive, Inc.*		28		114
Total Communications				411,281
Utilities - 2.5%
IDACORP, Inc.		198		12,814
Cleco Corp.		238		12,671
Piedmont Natural Gas Company, Inc.		311		12,461
WGL Holdings, Inc.		196		11,303
UIL Holdings Corp.		223		11,210
Southwest Gas Corp.		185		10,789
Dynegy, Inc.*		506		10,459
New Jersey Resources Corp.		338		10,150
NorthWestern Corp.		185		9,958
ALLETE, Inc.		192		9,694
ONE Gas, Inc.		207		9,383
Laclede Group, Inc.		171		9,325
PNM Resources, Inc.		314		8,808
Portland General Electric Co.		235		8,688
Avista Corp.		246		8,180
Black Hills Corp.		177		7,317
South Jersey Industries, Inc.		270		6,818
American States Water Co.		150		6,210
El Paso Electric Co.		161		5,928

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
MGE Energy, Inc.		137	$	5,643
Ormat Technologies, Inc.		147		5,002
Northwest Natural Gas Co.		108		4,951
California Water Service Group		189		4,181
Otter Tail Corp.		148		3,857
Empire District Electric Co.		172		3,789
Talen Energy Corp.*		329		3,323
Abengoa Yield plc		194		3,211
Chesapeake Utilities Corp.		60		3,185
Unitil Corp.		55		2,028
SJW Corp.		62		1,907
Connecticut Water Service, Inc.		46		1,680
NRG Yield, Inc. — Class C		133		1,544
Middlesex Water Co.		64		1,526
NRG Yield, Inc. — Class A		136		1,516
York Water Co.		51		1,072
Atlantic Power Corp.		481		895
PICO Holdings, Inc.*		91		881
EnerNOC, Inc.*		107		845
Artesian Resources Corp. — Class A		31		748
Consolidated Water Company Ltd.		59		684
Ameresco, Inc. — Class A*		80		470
Genie Energy Ltd. — Class B*		50		412
Spark Energy, Inc. — Class A		13		215
Total Utilities				235,731
Basic Materials - 1.9%
Sensient Technologies Corp.		195		11,953
PolyOne Corp.		352		10,327
Chemtura Corp.*		265		7,584
Balchem Corp.		123		7,475
HB Fuller Co.		200		6,788
Minerals Technologies, Inc.		137		6,598
Commercial Metals Co.		457		6,192
Carpenter Technology Corp.		199		5,924
Kaiser Aluminum Corp.		68		5,456
Olin Corp.		306		5,144
Worthington Industries, Inc.		189		5,005
Stillwater Mining Co.*		476		4,917
Innospec, Inc.		96		4,465
Axiall Corp.		277		4,345
Schweitzer-Mauduit International, Inc.		121		4,160
Quaker Chemical Corp.		53		4,085
OM Group, Inc.		120		3,947
Neenah Paper, Inc.		66		3,846
A. Schulman, Inc.		117		3,799
Clearwater Paper Corp.*		75		3,543
Innophos Holdings, Inc.		82		3,250
Calgon Carbon Corp.		208		3,241
Stepan Co.		76		3,162
Aceto Corp.		115		3,157
Ferro Corp.*		288		3,154
US Silica Holdings, Inc.		223		3,142
Globe Specialty Metals, Inc.		256		3,105
Alcoa, Inc.		319		3,082
PH Glatfelter Co.		171		2,945
Hecla Mining Co.		1,461		2,878
Deltic Timber Corp.		43		2,572
Materion Corp.		79		2,372
Kraton Performance Polymers, Inc.*		124		2,220
AK Steel Holding Corp.*		701		1,689
Koppers Holdings, Inc.		81		1,634
Hawkins, Inc.		42		1,617
Coeur Mining, Inc.*		536		1,512
Cliffs Natural Resources, Inc.		605		1,476
Schnitzer Steel Industries, Inc. — Class A		105		1,422
American Vanguard Corp.		115		1,330
Landec Corp.*		107		1,249
Intrepid Potash, Inc.*		221		1,224
Tronox Ltd. — Class A		250		1,093
Rayonier Advanced Materials, Inc.		170		1,040
OMNOVA Solutions, Inc.*		185		1,025
Ring Energy, Inc.*		101		997
Century Aluminum Co.*		206		948
Orchids Paper Products Co.		36		940
KMG Chemicals, Inc.		39		752
Horsehead Holding Corp.*		223		678
Kronos Worldwide, Inc.		87		540
Rentech, Inc.*		96		538
Energy Fuels, Inc.*		172		501
Oil-Dri Corporation of America		20		458
Uranium Energy Corp.*		385		385
United States Lime & Minerals, Inc.		8		365
Ryerson Holding Corp.*		43		226
Valhi, Inc.		75		142
Total Basic Materials				177,614
Energy - 1.9%
Western Refining, Inc.		281		12,397
PDC Energy, Inc.*		158		8,375
SemGroup Corp. — Class A		173		7,481
Matador Resources Co.*		305		6,326
Delek US Holdings, Inc.		226		6,260
Carrizo Oil & Gas, Inc.*		203		6,200
Oil States International, Inc.*		203		5,305
Parsley Energy, Inc. — Class A*		329		4,958
Exterran Holdings, Inc.		274		4,933
Oasis Petroleum, Inc.*		549		4,765
MRC Global, Inc.*		406		4,527
SEACOR Holdings, Inc.*		72		4,306
McDermott International, Inc.*		993		4,270
Pattern Energy Group, Inc.		220		4,200
Synergy Resources Corp.*		410		4,018
RSP Permian, Inc.*		197		3,989
Ultra Petroleum Corp.*		605		3,866
Atwood Oceanics, Inc.		255		3,777
Bristow Group, Inc.		138		3,610
Flotek Industries, Inc.*		211		3,524

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Green Plains, Inc.		150	$	2,919
Forum Energy Technologies, Inc.*		235		2,869
Thermon Group Holdings, Inc.*		127		2,609
Matrix Service Co.*		106		2,382
Unit Corp.*		199		2,241
Alon USA Energy, Inc.		123		2,223
SunCoke Energy, Inc.		258		2,007
Helix Energy Solutions Group, Inc.*		418		2,002
Callon Petroleum Co.*		260		1,895
TETRA Technologies, Inc.*		314		1,856
Newpark Resources, Inc.*		332		1,700
Peabody Energy Corp.		1,095		1,511
CARBO Ceramics, Inc.		78		1,481
Renewable Energy Group, Inc.*		174		1,441
Sanchez Energy Corp.*		219		1,347
Par Petroleum Corp.*		64		1,333
REX American Resources Corp.*		26		1,316
Parker Drilling Co.*		483		1,270
Clean Energy Fuels Corp.*		281		1,265
Plug Power, Inc.*		684		1,252
Stone Energy Corp.*		225		1,116
Tesco Corp.		154		1,100
Northern Oil and Gas, Inc.*		243		1,074
Panhandle Oil and Gas, Inc. — Class A		65		1,050
Westmoreland Coal Co.*		72		1,014
Trecora Resources*		79		981
Natural Gas Services Group, Inc.*		50		965
FutureFuel Corp.		97		958
PHI, Inc.*		50		944
Clayton Williams Energy, Inc.*		23		893
Vivint Solar, Inc.*		81		849
Solazyme, Inc.*		316		822
Pacific Ethanol, Inc.*		126		818
Halcon Resources Corp.*		1,528		810
Bonanza Creek Energy, Inc.*		196		798
C&J Energy Services Ltd.*		222		781
FuelCell Energy, Inc.*		989		727
Geospace Technologies Corp.*		52		718
Fairmount Santrol Holdings, Inc.*		252		680
Bill Barrett Corp.*		198		653
Cloud Peak Energy, Inc.*		240		631
Gulfmark Offshore, Inc. — Class A		102		623
Basic Energy Services, Inc.*		178		587
Jones Energy, Inc. — Class A*		115		551
Evolution Petroleum Corp.		98		544
Pioneer Energy Services Corp.*		254		533
Contango Oil & Gas Co.*		70		532
EXCO Resources, Inc.*		658		494
Abraxas Petroleum Corp.*		370		474
SandRidge Energy, Inc.*		1,708		461
Enphase Energy, Inc.*		115		426
Rex Energy Corp.*		201		416
W&T Offshore, Inc.		138		414
Isramco, Inc.*		4		397
Energy XXI Ltd.		372		391
Adams Resources & Energy, Inc.		9		369
Eclipse Resources Corp.*		189		369
Gastar Exploration, Inc.*		320		368
Independence Contract Drilling, Inc.*		70		349
Seventy Seven Energy, Inc.*		235		324
Hallador Energy Co.		43		299
Approach Resources, Inc.*		151		282
Magnum Hunter Resources Corp.*		803		273
Triangle Petroleum Corp.*		184		261
Key Energy Services, Inc.*		554		260
TransAtlantic Petroleum Ltd.*		102		259
ION Geophysical Corp.*		588		229
North Atlantic Drilling Ltd.*		282		217
Erin Energy Corp.*		54		212
Penn Virginia Corp.*		283		150
Earthstone Energy, Inc.*		6		91
Total Energy				173,543
Diversified - 0.1%
HRG Group, Inc.*		310		3,636
National Bank Holdings Corp. — Class A		145		2,977
Tiptree Financial, Inc. — Class A		118		755
Resource America, Inc. — Class A		64		426
Total Diversified				7,794
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		119		2,755
Total Common Stocks
(Cost $5,276,723)				6,509,931
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16†		54		9
Imperial Holdings, Inc.
$10.75, 10/06/19		4		—
Magnum Hunter Resources Corp.
$8.50, 04/15/16		252		—
Total Warrants
(Cost $344)				9
RIGHTS††† - 0.0%
Furiex Pharmaceuticals, Inc.
Expires 07/03/17		46		—
Omthera Pharmaceuticals, Inc.
Expires 12/31/20		57		—
Leap Wireless International, Inc.
Expires 02/17/16		513		—
Total Rights
(Cost $570)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 3.1%
Guggenheim Strategy Fund I1		11,732	$	291,898
Total Mutual Funds
(Cost $291,757)				291,898

	Face Amount
REPURCHASE AGREEMENTS††,2 - 17.0%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	908,977		908,977
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		347,926		347,926
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		326,524		326,524
Total Repurchase Agreements
(Cost $1,583,427)				1,583,427
Total Investments - 89.9%
(Cost $7,152,821)			$	8,385,265
Other Assets & Liabilities, net - 10.1%				940,108
Total Net Assets - 100.0%			$	9,325,373

	Units		Unrealized Gain (Loss)
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 Russell 2000 Index Swap, Terminating 10/30/153 (Notional Value $2,093,592)		1,902	$	19,684
Goldman Sachs International October 2015 Russell 2000 Index Swap, Terminating 10/27/153 (Notional Value $510,711)		464		4,751
Credit Suisse Capital, LLC October 2015 Russell 2000 Index Swap, Terminating 10/27/153 (Notional Value $4,849,486)		4,406		(93,920	)
(Total Notional Value $7,453,789)			$	(69,485	)

*	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	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $5,277,637)	$	6,509,940
Investments in affiliated issuers, at value (cost $291,757)		291,898
Repurchase agreements, at value (cost $1,583,427)		1,583,427
Total investments (cost $7,152,821)		8,385,265
Foreign currency, at value (cost $5)		5
Segregated cash with broker		1,035,905
Unrealized appreciation on swap agreements		24,435
Cash		107
Receivables:
Dividends		8,390
Fund shares sold		5,498
Foreign taxes reclaim		5
Interest		2
Securities lending income		1
Total assets		9,459,613
Liabilities:
Unrealized depreciation on swap agreements		93,920
Payable for:
Fund shares redeemed		11,781
Swap settlement		8,152
Management fees		7,266
Distribution and service fees		2,938
Transfer agent and administrative fees		2,018
Portfolio accounting fees		807
Securities purchased		88
Miscellaneous		7,270
Total liabilities		134,240
Commitments and contingent liabilities (Note 13)		—
Net assets	$	9,325,373
Net assets consist of:
Paid in capital	$	8,769,147
Accumulated net investment loss		(88,763	)
Accumulated net realized loss on investments		(517,970	)
Net unrealized appreciation on investments		1,162,959
Net assets	$	9,325,373
A-Class:
Net assets	$	468,433
Capital shares outstanding		9,828
Net asset value per share	$	47.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.04
C-Class:
Net assets	$	1,399,842
Capital shares outstanding		32,902
Net asset value per share	$	42.55
H-Class:
Net assets	$	7,457,098
Capital shares outstanding		156,767
Net asset value per share	$	47.57

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $95)	$	59,841
Dividends from securities of affiliated issuers		10,528
Income from securities lending, net		1,693
Interest		905
Total investment income		72,967
Expenses:
Management fees		80,615
Transfer agent and administrative fees		22,393
Distribution and service fees:
A-Class		824
C-Class		8,683
H-Class		19,398
Portfolio accounting fees		8,957
Registration fees		8,049
Custodian fees		1,029
Trustees’ fees*		740
Line of credit fees		205
Miscellaneous		6,240
Total expenses		157,133
Net investment loss		(84,166	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	1,131,064
Investments in affiliated issuers		2,146
Swap agreements		(1,491,390	)
Futures contracts		(232,482	)
Net realized loss		(590,662	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,073,955	)
Investments in affiliated issuers		141
Swap agreements		(239,517	)
Futures contracts		(14,055	)
Net change in unrealized appreciation (depreciation)		(2,327,386	)
Net realized and unrealized loss		(2,918,048	)
Net decrease in net assets resulting from operations	$	(3,002,214	)

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

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(84,166	)	$	(174,277	)
Net realized gain (loss) on investments		(590,662	)		6,937,664
Net change in unrealized appreciation (depreciation) on investments		(2,327,386	)		(2,841,277	)
Net increase (decrease) in net assets resulting from operations		(3,002,214	)		3,922,110
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		3,923,197			1,893,905
C-Class		117,287			98,855
H-Class		65,123,969			232,124,981
Distributions reinvested
A-Class		—			1,903
C-Class		—			7,229
H-Class		—			133,841
Cost of shares redeemed
A-Class		(3,996,330	)		(1,896,108	)
C-Class		(198,126	)		(299,746	)
H-Class		(73,665,974	)		(236,252,696	)
Net decrease from capital share transactions		(8,695,977	)		(4,187,836	)
Net decrease in net assets		(11,698,191	)		(510,124	)
Net assets:
Beginning of period		21,023,564			21,533,688
End of period	$	9,325,373		$	21,023,564
Accumulated net investment loss at end of period	$	(88,763	)	$	(4,597	)
Capital share activity:
Shares sold
A-Class		70,037			37,732
C-Class		2,256			2,156
H-Class		1,142,152			4,439,943
Shares issued from reinvestment of distributions
A-Class		—			36
C-Class		—			153
H-Class		—			2,554
Shares redeemed
A-Class		(71,019	)		(38,492	)
C-Class		(3,956	)		(6,473	)
H-Class		(1,306,338	)		(4,480,213	)
Net decrease in shares		(166,868	)		(42,604	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	58.05		$	53.23		$	39.32		$	32.20		$	34.37		$	25.24
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.39	)		(.37	)		(.16	)		(.39	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		(10.16	)		5.41			14.28			7.28			(1.78	)		9.48
Total from investment operations		(10.39	)		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	$	47.66		$	58.05		$	53.23		$	39.32		$	32.20		$	34.37
Total Returnc		(17.90	%)		9.48	%		35.38	%		22.11	%		(6.31	%)		36.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	468		$	627		$	614		$	392		$	1,355		$	2,312
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(0.74	%)		(0.78	%)		(0.51	%)		(1.24	%)		(1.25	%)
Total expensesd		1.68	%		1.70	%		1.72	%		1.71	%		1.73	%		1.72	%
Portfolio turnover rate		374	%		830	%		472	%		527	%		177	%		211	%

C-Class	Period Ended September 30, 2015a			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	$	52.01		$	48.08		$	35.78		$	29.52		$	31.75		$	23.50
Income (loss) from investment operations:
Net investment income (loss)b		(.40	)		(.70	)		(.65	)		(.34	)		(.54	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(9.06	)		4.83			12.95			6.60			(1.69	)		8.72
Total from investment operations		(9.46	)		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	$	42.55		$	52.01		$	48.08		$	35.78		$	29.52		$	31.75
Total Returnc		(18.19	%)		8.64	%		34.38	%		21.21	%		(7.02	%)		35.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,400		$	1,800		$	1,864		$	1,685		$	1,839		$	2,786
Ratios to average net assets:
Net investment income (loss)		(1.57	%)		(1.49	%)		(1.55	%)		(1.15	%)		(1.99	%)		(1.90	%)
Total expensesd		2.43	%		2.45	%		2.47	%		2.46	%		2.49	%		2.47	%
Portfolio turnover rate		374	%		830	%		472	%		527	%		177	%		211	%

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	57.94		$	53.13		$	39.24		$	32.13		$	34.29		$	25.21
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.40	)		(.37	)		(.08	)		(.37	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		(10.12	)		5.41			14.26			7.19			(1.79	)		9.43
Total from investment operations		(10.37	)		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	$	47.57		$	57.94		$	53.13		$	39.24		$	32.13		$	34.29
Total Returnc		(17.90	%)		9.48	%		35.40	%		22.13	%		(6.30	%)		36.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,457		$	18,596		$	19,056		$	44,955		$	14,902		$	37,780
Ratios to average net assets:
Net investment income (loss)		(0.88	%)		(0.76	%)		(0.81	%)		(0.25	%)		(1.24	%)		(1.25	%)
Total expensesd		1.68	%		1.70	%		1.72	%		1.71	%		1.73	%		1.72	%
Portfolio turnover rate		374	%		830	%		472	%		527	%		177	%		211	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
American Eagle Outfitters, Inc.	0.3%
CubeSmart	0.2%
Tyler Technologies, Inc.	0.2%
Infinera Corp.	0.2%
Mentor Graphics Corp.	0.2%
Anacor Pharmaceuticals, Inc.	0.2%
Manhattan Associates, Inc.	0.2%
Investors Bancorp, Inc.	0.2%
First American Financial Corp.	0.2%
Casey’s General Stores, Inc.	0.2%
Top Ten Total	2.1%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

102 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 76.3%
Financial - 19.6%
CubeSmart		1,496	$	40,706
Investors Bancorp, Inc.		2,790		34,430
First American Financial Corp.		867		33,873
Strategic Hotels & Resorts, Inc.*		2,202		30,366
CNO Financial Group, Inc.		1,575		29,625
Highwoods Properties, Inc.		752		29,140
Umpqua Holdings Corp.		1,764		28,754
MarketAxess Holdings, Inc.		299		27,770
Prosperity Bancshares, Inc.		560		27,503
Bank of the Ozarks, Inc.		624		27,306
Sovran Self Storage, Inc.		284		26,781
RLJ Lodging Trust		1,057		26,710
Webster Financial Corp.		726		25,867
LaSalle Hotel Properties		904		25,665
Sun Communities, Inc.		373		25,275
MGIC Investment Corp.*		2,717		25,160
Radian Group, Inc.		1,531		24,359
New Residential Investment Corp.		1,843		24,142
PrivateBancorp, Inc. — Class A		629		24,110
DCT Industrial Trust, Inc.		711		23,933
EPR Properties		457		23,567
FirstMerit Corp.		1,326		23,430
Western Alliance Bancorporation*		761		23,370
Stifel Financial Corp.*		543		22,860
Pebblebrook Hotel Trust		642		22,759
Wintrust Financial Corp.		425		22,708
Healthcare Realty Trust, Inc.		901		22,390
Sunstone Hotel Investors, Inc.		1,669		22,081
United Bankshares, Inc.		556		21,122
Medical Properties Trust, Inc.		1,871		20,693
PRA Group, Inc.*		387		20,480
MB Financial, Inc.		601		19,617
Texas Capital Bancshares, Inc.*		366		19,186
Cathay General Bancorp		639		19,144
Fulton Financial Corp.		1,581		19,130
Symetra Financial Corp.		601		19,015
First Industrial Realty Trust, Inc.		886		18,562
Primerica, Inc.		411		18,524
Home BancShares, Inc.		457		18,509
RLI Corp.		345		18,468
Blackhawk Network Holdings, Inc.*		434		18,397
BancorpSouth, Inc.		772		18,350
Valley National Bancorp		1,860		18,302
FNB Corp.		1,397		18,091
GEO Group, Inc.		597		17,755
IBERIABANK Corp.		305		17,754
DiamondRock Hospitality Co.		1,606		17,746
Colony Capital, Inc. — Class A		894		17,486
CyrusOne, Inc.		530		17,310
Washington Federal, Inc.		759		17,268
National Health Investors, Inc.		300		17,247
Ryman Hospitality Properties, Inc.		348		17,132
Hudson Pacific Properties, Inc.		595		17,130
Urban Edge Properties		793		17,121
South State Corp.		220		16,911
Hancock Holding Co.		623		16,852
Acadia Realty Trust		550		16,538
Kennedy-Wilson Holdings, Inc.		742		16,450
First Financial Bankshares, Inc.		513		16,303
UMB Financial Corp.		315		16,005
Cousins Properties, Inc.		1,733		15,978
Janus Capital Group, Inc.		1,174		15,965
Glacier Bancorp, Inc.		604		15,940
Kite Realty Group Trust		669		15,929
BofI Holding, Inc.*		123		15,847
Ellie Mae, Inc.*		235		15,644
Xenia Hotels & Resorts, Inc.		893		15,592
American Equity Investment Life Holding Co.		652		15,198
Mack-Cali Realty Corp.		800		15,104
EverBank Financial Corp.		774		14,938
WisdomTree Investments, Inc.		913		14,727
Columbia Banking System, Inc.		461		14,388
Equity One, Inc.		587		14,288
Sterling Bancorp		959		14,260
CVB Financial Corp.		850		14,195
Pinnacle Financial Partners, Inc.		287		14,181
Selective Insurance Group, Inc.		456		14,163
First Citizens BancShares, Inc. — Class A		62		14,012
EastGroup Properties, Inc.		258		13,978
Evercore Partners, Inc. — Class A		277		13,916
Capitol Federal Financial, Inc.		1,125		13,635
Washington Real Estate Investment Trust		545		13,587
Alexander & Baldwin, Inc.		391		13,423
Lexington Realty Trust		1,643		13,308
National Penn Bancshares, Inc.		1,121		13,172
Retail Opportunity Investments Corp.		796		13,166
New York REIT, Inc.		1,300		13,078
DuPont Fabros Technology, Inc.		505		13,069
Old National Bancorp		936		13,038
WageWorks, Inc.*		286		12,893
Education Realty Trust, Inc.		387		12,752
Argo Group International Holdings Ltd.		223		12,620
Trustmark Corp.		540		12,512
Chesapeake Lodging Trust		477		12,431
Monogram Residential Trust, Inc.		1,332		12,401
PS Business Parks, Inc.		156		12,383
Kemper Corp.		348		12,309
Chambers Street Properties		1,895		12,299
Financial Engines, Inc.		415		12,230
American Assets Trust, Inc.		297		12,135
LTC Properties, Inc.		284		12,118
Community Bank System, Inc.		326		12,117
Sabra Health Care REIT, Inc.		521		12,077
Hilltop Holdings, Inc.*		609		12,064

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Invesco Mortgage Capital, Inc.		985	$	12,056
BGC Partners, Inc. — Class A		1,466		12,051
Hatteras Financial Corp.		774		11,726
LegacyTexas Financial Group, Inc.		381		11,613
Astoria Financial Corp.		720		11,592
Provident Financial Services, Inc.		589		11,486
Simmons First National Corp. — Class A		239		11,455
Essent Group Ltd.*		445		11,058
Pennsylvania Real Estate Investment Trust		553		10,966
Enstar Group Ltd.*		73		10,950
First Midwest Bancorp, Inc.		624		10,945
Horace Mann Educators Corp.		329		10,929
WesBanco, Inc.		346		10,882
Eagle Bancorp, Inc.*		239		10,875
International Bancshares Corp.		433		10,838
Renasant Corp.		322		10,578
Northwest Bancshares, Inc.		812		10,556
Parkway Properties, Inc.		677		10,534
St. Joe Co.*		538		10,292
Aircastle Ltd.		499		10,284
HFF, Inc. — Class A		303		10,229
CoreSite Realty Corp.		195		10,031
QTS Realty Trust, Inc. — Class A		223		9,743
Independent Bank Corp.		209		9,635
BBCN Bancorp, Inc.		636		9,553
Select Income REIT		501		9,524
Gramercy Property Trust, Inc.		458		9,513
Ramco-Gershenson Properties Trust		633		9,501
STAG Industrial, Inc.		521		9,487
NBT Bancorp, Inc.		352		9,483
First Financial Bancorp		493		9,406
Park National Corp.		104		9,383
Potlatch Corp.		325		9,357
Redwood Trust, Inc.		674		9,328
PennyMac Mortgage Investment Trust		597		9,236
CYS Investments, Inc.		1,265		9,184
Third Point Reinsurance Ltd.*		675		9,079
S&T Bancorp, Inc.		278		9,068
Westamerica Bancorporation		204		9,066
Government Properties Income Trust		563		9,008
Hersha Hospitality Trust		393		8,905
Beneficial Bancorp, Inc.*		662		8,778
Chemical Financial Corp.		270		8,735
United Community Banks, Inc.		426		8,707
Union Bankshares Corp.		361		8,664
iStar, Inc.*		684		8,605
Kearny Financial Corp.		748		8,580
Physicians Realty Trust		562		8,481
Great Western Bancorp, Inc.		331		8,397
MBIA, Inc.*		1,351		8,214
Summit Hotel Properties, Inc.		698		8,146
FelCor Lodging Trust, Inc.		1,146		8,102
Banner Corp.		168		8,025
First Merchants Corp.		302		7,918
Boston Private Financial Holdings, Inc.		664		7,769
Franklin Street Properties Corp.		719		7,729
Encore Capital Group, Inc.*		208		7,696
Investors Real Estate Trust		981		7,593
Capstead Mortgage Corp.		766		7,576
Universal Insurance Holdings, Inc.		256		7,562
AMERISAFE, Inc.		152		7,559
Stewart Information Services Corp.		184		7,527
FNFV Group*		640		7,501
Infinity Property & Casualty Corp.		92		7,410
ServisFirst Bancshares, Inc.		178		7,392
Ameris Bancorp		257		7,389
Apollo Commercial Real Estate Finance, Inc.		467		7,337
FCB Financial Holdings, Inc. — Class A*		224		7,307
Talmer Bancorp, Inc. — Class A		437		7,276
Starwood Waypoint Residential Trust		305		7,268
New Senior Investment Group, Inc.		692		7,238
Tompkins Financial Corp.		134		7,150
ARMOUR Residential REIT, Inc.		352		7,054
TowneBank		364		6,861
Terreno Realty Corp.		344		6,756
Greenhill & Company, Inc.		234		6,662
Navigators Group, Inc.*		85		6,628
City Holding Co.		134		6,606
Nelnet, Inc. — Class A		190		6,575
Chatham Lodging Trust		306		6,573
Safety Insurance Group, Inc.		121		6,552
WSFS Financial Corp.		226		6,511
Berkshire Hills Bancorp, Inc.		236		6,499
First Commonwealth Financial Corp.		712		6,472
Hanmi Financial Corp.		255		6,426
United Fire Group, Inc.		182		6,379
Altisource Residential Corp.		458		6,375
Alexander’s, Inc.		17		6,358
National General Holdings Corp.		321		6,192
Rexford Industrial Realty, Inc.		443		6,109
STORE Capital Corp.		292		6,033
American Capital Mortgage Investment Corp.		409		6,029
Meridian Bancorp, Inc.		440		6,015
Lakeland Financial Corp.		133		6,005
Wilshire Bancorp, Inc.		565		5,938
State Bank Financial Corp.		286		5,914
Cardinal Financial Corp.		257		5,914
Ocwen Financial Corp.*		859		5,764
Northfield Bancorp, Inc.		375		5,704
Employers Holdings, Inc.		255		5,684
Brookline Bancorp, Inc.		560		5,678
Inland Real Estate Corp.		701		5,678
Maiden Holdings Ltd.		405		5,621
PHH Corp.*		397		5,606
Southside Bancshares, Inc.		203		5,593
Walker & Dunlop, Inc.*		212		5,529

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Virtus Investment Partners, Inc.		55	$	5,528
Customers Bancorp, Inc.*		214		5,500
Oritani Financial Corp.		352		5,498
Capital Bank Financial Corp. — Class A*		180		5,441
CenterState Banks, Inc.		363		5,336
Universal Health Realty Income Trust		111		5,210
Ambac Financial Group, Inc.*		360		5,209
Heartland Financial USA, Inc.		143		5,189
First Potomac Realty Trust		470		5,170
United Financial Bancorp, Inc.		396		5,168
Sandy Spring Bancorp, Inc.		197		5,157
Greenlight Capital Re Ltd. — Class A*		231		5,147
BNC Bancorp		226		5,024
Marcus & Millichap, Inc.*		109		5,013
Piper Jaffray Cos.*		137		4,955
Walter Investment Management Corp.*		302		4,908
1st Source Corp.		156		4,805
New York Mortgage Trust, Inc.		875		4,804
Yadkin Financial Corp.		223		4,792
FBL Financial Group, Inc. — Class A		77		4,737
Dime Community Bancshares, Inc.		279		4,715
Flushing Financial Corp.		235		4,705
Silver Bay Realty Trust Corp.		291		4,659
Monmouth Real Estate Investment Corp.		474		4,622
ConnectOne Bancorp, Inc.		239		4,613
Washington Trust Bancorp, Inc.		119		4,576
Rouse Properties, Inc.		293		4,565
Heritage Financial Corp.		242		4,554
Ladder Capital Corp. — Class A		318		4,554
Cass Information Systems, Inc.		92		4,520
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		260		4,477
TriCo Bancshares		182		4,472
Diamond Hill Investment Group, Inc.		24		4,465
American Residential Properties, Inc.		258		4,456
Cohen & Steers, Inc.		162		4,447
Community Trust Bancorp, Inc.		125		4,439
TrustCo Bank Corp. NY		760		4,438
Bryn Mawr Bank Corp.		142		4,412
First Interstate BancSystem, Inc. — Class A		157		4,371
Nationstar Mortgage Holdings, Inc.*		314		4,355
United Development Funding IV		245		4,312
Central Pacific Financial Corp.		205		4,299
Stock Yards Bancorp, Inc.		118		4,289
First NBC Bank Holding Co.*		122		4,275
Western Asset Mortgage Capital Corp.		335		4,224
Cedar Realty Trust, Inc.		680		4,223
Agree Realty Corp.		141		4,209
Urstadt Biddle Properties, Inc. — Class A		223		4,179
InfraREIT, Inc.*		175		4,144
Anworth Mortgage Asset Corp.		838		4,140
Ashford Hospitality Trust, Inc.		667		4,069
HomeStreet, Inc.*		176		4,066
Cowen Group, Inc. — Class A*		891		4,063
Saul Centers, Inc.		78		4,037
National Western Life Insurance Co. — Class A		18		4,009
Enterprise Financial Services Corp.		159		4,002
Heritage Insurance Holdings, Inc.*		198		3,907
First Busey Corp.		193		3,835
CoBiz Financial, Inc.		290		3,773
Acacia Research Corp.		408		3,705
Moelis & Co. — Class A		141		3,703
Ashford Hospitality Prime, Inc.		261		3,662
BancFirst Corp.		58		3,660
Investment Technology Group, Inc.		274		3,655
Great Southern Bancorp, Inc.		84		3,637
RAIT Financial Trust		727		3,606
Waterstone Financial, Inc.		264		3,559
Banc of California, Inc.		290		3,558
KCG Holdings, Inc. — Class A*		324		3,554
Forestar Group, Inc.*		269		3,537
MainSource Financial Group, Inc.		173		3,522
Pacific Premier Bancorp, Inc.*		172		3,495
CareTrust REIT, Inc.		307		3,484
Virtu Financial, Inc. — Class A		152		3,484
German American Bancorp, Inc.		119		3,483
Square 1 Financial, Inc. — Class A*		135		3,466
AG Mortgage Investment Trust, Inc.		227		3,455
Real Industry, Inc.*		391		3,449
Flagstar Bancorp, Inc.*		165		3,392
RE/MAX Holdings, Inc. — Class A		94		3,382
Westwood Holdings Group, Inc.		62		3,370
Lakeland Bancorp, Inc.		303		3,366
First BanCorp*		931		3,314
Apollo Residential Mortgage, Inc.		257		3,254
CatchMark Timber Trust, Inc. — Class A		316		3,248
Getty Realty Corp.		204		3,223
Bridge Bancorp, Inc.		119		3,178
Opus Bank		83		3,174
OFG Bancorp		357		3,117
Blue Hills Bancorp, Inc.		224		3,102
Peoples Bancorp, Inc.		147		3,056
OM Asset Management plc		197		3,038
NMI Holdings, Inc. — Class A*		399		3,032
Univest Corporation of Pennsylvania		157		3,018
Clifton Bancorp, Inc.		217		3,012
CU Bancorp*		134		3,010
HomeTrust Bancshares, Inc.*		162		3,005
Independent Bank Group, Inc.		78		2,998
Resource Capital Corp.		268		2,994
Fidelity Southern Corp.		141		2,981
International. FCStone, Inc.*		120		2,963
HCI Group, Inc.		76		2,947
First of Long Island Corp.		109		2,946
Preferred Bank/Los Angeles CA		93		2,939
Anchor BanCorp Wisconsin, Inc.*		69		2,939

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Citizens, Inc.*		393	$	2,916
Dynex Capital, Inc.		438		2,873
Bank Mutual Corp.		373		2,865
First Financial Corp.		88		2,847
Arlington Asset Investment Corp. — Class A		202		2,838
Stonegate Bank		89		2,831
Mercantile Bank Corp.		135		2,805
Financial Institutions, Inc.		113		2,800
GAMCO Investors, Inc. — Class A		51		2,800
Metro Bancorp, Inc.		95		2,792
Seacoast Banking Corporation of Florida*		190		2,789
Campus Crest Communities, Inc.		517		2,750
State Auto Financial Corp.		120		2,737
Independent Bank Corp.		184		2,716
Federated National Holding Co.		113		2,714
First Defiance Financial Corp.		74		2,705
First Bancorp		158		2,686
Peapack Gladstone Financial Corp.		124		2,625
Ares Commercial Real Estate Corp.		217		2,602
Suffolk Bancorp		94		2,568
OneBeacon Insurance Group Ltd. — Class A		182		2,555
Altisource Portfolio Solutions S.A.*		106		2,527
Southwest Bancorp, Inc.		152		2,494
Whitestone REIT — Class B		216		2,490
National Storage Affiliates Trust		183		2,480
NewBridge Bancorp		287		2,448
Park Sterling Corp.		360		2,448
Arrow Financial Corp.		91		2,427
Camden National Corp.		60		2,424
First Community Bancshares, Inc.		135		2,417
West Bancorporation, Inc.		128		2,400
Enova International, Inc.*		231		2,361
Gladstone Commercial Corp.		166		2,342
Meta Financial Group, Inc.		56		2,339
State National Companies, Inc.		250		2,338
Bank of Marin Bancorp		48		2,304
Triumph Bancorp, Inc.*		133		2,234
Territorial Bancorp, Inc.		85		2,213
Fidelity & Guaranty Life		90		2,209
Federal Agricultural Mortgage Corp. — Class C		84		2,178
Horizon Bancorp		91		2,161
Preferred Apartment Communities, Inc. — Class A		198		2,154
National Bankshares, Inc.		69		2,147
One Liberty Properties, Inc.		100		2,133
TriState Capital Holdings, Inc.*		170		2,120
CorEnergy Infrastructure Trust, Inc.		477		2,108
Peoples Financial Services Corp.		60		2,096
CNB Financial Corp.		115		2,090
Pacific Continental Corp.		156		2,076
First Connecticut Bancorp, Inc.		128		2,063
Bancorp, Inc.*		270		2,057
QCR Holdings, Inc.		93		2,034
NexPoint Residential Trust, Inc.		152		2,031
Independence Realty Trust, Inc.		279		2,011
Armada Hoffler Properties, Inc.		204		1,993
Trupanion, Inc.*		261		1,971
United Community Financial Corp.		393		1,965
Guaranty Bancorp		119		1,960
Republic Bancorp, Inc. — Class A		79		1,939
Citizens & Northern Corp.		98		1,913
Heritage Commerce Corp.		168		1,905
GAIN Capital Holdings, Inc.		258		1,878
MidWestOne Financial Group, Inc.		63		1,843
UMH Properties, Inc.		198		1,841
eHealth, Inc.*		143		1,832
BankFinancial Corp.		147		1,827
OceanFirst Financial Corp.		106		1,825
Bluerock Residential Growth REIT, Inc.		151		1,809
United Insurance Holdings Corp.		137		1,802
Ladenburg Thalmann Financial Services, Inc.*		843		1,779
Consolidated-Tomoka Land Co.		35		1,743
Easterly Government Properties, Inc.		109		1,739
Global Indemnity plc — Class A*		66		1,727
Orchid Island Capital, Inc.		184		1,702
Ames National Corp.		74		1,697
PennyMac Financial Services, Inc. — Class A*		106		1,696
Charter Financial Corp.		133		1,686
Heritage Oaks Bancorp		210		1,672
Oppenheimer Holdings, Inc. — Class A		83		1,661
FRP Holdings, Inc.*		55		1,658
First Bancorp, Inc.		86		1,643
American National Bankshares, Inc.		70		1,642
Baldwin & Lyons, Inc. — Class B		75		1,628
First Business Financial Services, Inc.		69		1,623
Fox Chase Bancorp, Inc.		93		1,614
NewStar Financial, Inc.*		193		1,583
Penns Woods Bancorp, Inc.		38		1,555
Bar Harbor Bankshares		48		1,536
Atlas Financial Holdings, Inc.*		83		1,536
World Acceptance Corp.*		57		1,530
National Interstate Corp.		57		1,521
Sierra Bancorp		94		1,500
Farmers Capital Bank Corp.*		60		1,491
Regional Management Corp.*		96		1,488
Sun Bancorp, Inc.*		77		1,478
Old Second Bancorp, Inc.*		236		1,470
EMC Insurance Group, Inc.		63		1,462
Kansas City Life Insurance Co.		30		1,410
Hingham Institution for Savings		12		1,392
BSB Bancorp, Inc.*		65		1,374
Calamos Asset Management, Inc. — Class A		143		1,356
Cascade Bancorp*		247		1,336
Hallmark Financial Services, Inc.*		113		1,298
Capital City Bank Group, Inc.		86		1,283
Enterprise Bancorp, Inc.		61		1,279

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Crawford & Co. — Class B		227	$	1,273
Access National Corp.		58		1,181
Merchants Bancshares, Inc.		40		1,176
National Commerce Corp.*		48		1,151
Century Bancorp, Inc. — Class A		28		1,141
Impac Mortgage Holdings, Inc.*		69		1,128
CommunityOne Bancorp*		98		1,065
Marlin Business Services Corp.		69		1,062
6D Global Technologies, Inc.*,††		357		1,039
Franklin Financial Network, Inc.*		44		983
Donegal Group, Inc. — Class A		68		956
Bear State Financial, Inc.*		107		952
Green Bancorp, Inc.*		81		928
On Deck Capital, Inc.*		93		921
C1 Financial, Inc.*		48		914
Pzena Investment Management, Inc. — Class A		101		899
Stonegate Mortgage Corp.*		116		825
Independence Holding Co.		56		726
JG Wentworth Co. — Class A*		116		572
Ashford, Inc.*		9		571
Hampton Roads Bankshares, Inc.*		274		521
Great Ajax Corp.		35		433
BBX Capital Corp. — Class A*		22		354
Fifth Street Asset Management, Inc.		47		351
CIFC Corp.		48		343
RCS Capital Corp. — Class A*		394		319
Medley Management, Inc. — Class A		48		318
ZAIS Group Holdings, Inc.*		30		283
Altisource Asset Management Corp.*		7		168
Total Financial				3,461,152
Consumer, Non-cyclical - 17.2%
Anacor Pharmaceuticals, Inc.*		328		38,608
West Pharmaceutical Services, Inc.		576		31,174
Team Health Holdings, Inc.*		576		31,122
STERIS Corp.		478		31,055
ABIOMED, Inc.*		334		30,981
Euronet Worldwide, Inc.*		415		30,747
WellCare Health Plans, Inc.*		352		30,336
Amsurg Corp. — Class A*		387		30,073
Ultragenyx Pharmaceutical, Inc.*		307		29,566
Post Holdings, Inc.*		493		29,136
HealthSouth Corp.		732		28,087
Thoratec Corp.*		434		27,454
PAREXEL International Corp.*		441		27,308
Neurocrine Biosciences, Inc.*		683		27,177
TreeHouse Foods, Inc.*		343		26,682
Cepheid*		574		25,945
Deluxe Corp.		399		22,241
Dyax Corp.*		1,165		22,240
United Natural Foods, Inc.*		449		21,781
Molina Healthcare, Inc.*		314		21,619
ACADIA Pharmaceuticals, Inc.*		638		21,099
Myriad Genetics, Inc.*		556		20,839
Clovis Oncology, Inc.*		223		20,507
Helen of Troy Ltd.*		228		20,360
Impax Laboratories, Inc.*		574		20,212
Medicines Co.*		530		20,119
Cimpress N.V.*		262		19,942
Healthcare Services Group, Inc.		572		19,277
Bright Horizons Family Solutions, Inc.*		299		19,208
Prestige Brands Holdings, Inc.*		418		18,878
NuVasive, Inc.*		387		18,660
Heartland Payment Systems, Inc.		293		18,462
Momenta Pharmaceuticals, Inc.*		1,122		18,412
CEB, Inc.		268		18,316
Radius Health, Inc.*		264		18,298
Chemed Corp.		137		18,285
Catalent, Inc.*		748		18,176
Monro Muffler Brake, Inc.		255		17,225
Boston Beer Company, Inc. — Class A*		81		17,059
B&G Foods, Inc.		464		16,913
SUPERVALU, Inc.*		2,350		16,872
Celldex Therapeutics, Inc.*		1,578		16,632
ZIOPHARM Oncology, Inc.*		1,840		16,578
Owens & Minor, Inc.		505		16,130
Lancaster Colony Corp.		165		16,084
Sotheby’s		498		15,925
Portola Pharmaceuticals, Inc.*		370		15,769
Cantel Medical Corp.		275		15,592
Vector Group Ltd.		686		15,520
KYTHERA Biopharmaceuticals, Inc.*		206		15,446
Advisory Board Co.*		339		15,438
On Assignment, Inc.*		414		15,277
Novavax, Inc.*		2,144		15,158
Darling Ingredients, Inc.*		1,322		14,860
Grand Canyon Education, Inc.*		377		14,322
Cempra, Inc.*		509		14,171
Chimerix, Inc.*		365		13,943
DeVry Education Group, Inc.		510		13,877
FTI Consulting, Inc.*		333		13,823
Exact Sciences Corp.*		767		13,798
Sanderson Farms, Inc.		200		13,714
Cal-Maine Foods, Inc.		251		13,707
J&J Snack Foods Corp.		119		13,526
Integra LifeSciences Holdings Corp.*		227		13,518
Masimo Corp.*		350		13,496
Haemonetics Corp.*		413		13,348
Korn/Ferry International		403		13,327
Neogen Corp.*		296		13,317
Snyder’s-Lance, Inc.		391		13,188
Amicus Therapeutics, Inc.*		927		12,969
Matthews International Corp. — Class A		264		12,928
Kite Pharma, Inc.*		231		12,862
Cyberonics, Inc.*		208		12,642
Dean Foods Co.		755		12,473
ICU Medical, Inc.*		113		12,374

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
ABM Industries, Inc.		448	$	12,235
Magellan Health, Inc.*		219		12,139
Pacira Pharmaceuticals, Inc.*		292		12,001
Ligand Pharmaceuticals, Inc. — Class B*		140		11,991
Kindred Healthcare, Inc.		749		11,797
Insulet Corp.*		454		11,763
Cardtronics, Inc.*		359		11,740
Huron Consulting Group, Inc.*		185		11,568
Nektar Therapeutics*		1,052		11,530
Greatbatch, Inc.*		204		11,510
AMN Healthcare Services, Inc.*		380		11,404
Halozyme Therapeutics, Inc.*		848		11,389
Globus Medical, Inc. — Class A*		549		11,342
Prothena Corporation plc*		250		11,335
Travelport Worldwide Ltd.		844		11,158
AMAG Pharmaceuticals, Inc.*		276		10,965
ExamWorks Group, Inc.*		371		10,848
IPC Healthcare, Inc.*		139		10,799
Air Methods Corp.*		314		10,704
Sarepta Therapeutics, Inc.*		332		10,661
Halyard Health, Inc.*		372		10,580
CONMED Corp.		221		10,551
Fresh Del Monte Produce, Inc.		267		10,549
Brink’s Co.		389		10,507
Ironwood Pharmaceuticals, Inc. — Class A*		1,007		10,493
WD-40 Co.		117		10,421
Natus Medical, Inc.*		264		10,415
Rent-A-Center, Inc.		424		10,282
OPKO Health, Inc.*		1,221		10,269
Exelixis, Inc.*		1,803		10,115
Cambrex Corp.*		250		9,920
Multi-Color Corp.		125		9,561
ZS Pharma, Inc.*		145		9,521
EVERTEC, Inc.		526		9,505
Seaboard Corp.*		3		9,237
Insmed, Inc.*		492		9,136
Acorda Therapeutics, Inc.*		342		9,066
Select Medical Holdings Corp.		840		9,064
Depomed, Inc.*		480		9,048
Universal Corp.		181		8,972
Lannett Company, Inc.*		212		8,802
Ensign Group, Inc.		204		8,697
Wright Medical Group, Inc.*		411		8,639
Amedisys, Inc.*		226		8,581
HealthEquity, Inc.*		290		8,570
Merit Medical Systems, Inc.*		352		8,416
FibroGen, Inc.*		383		8,395
MiMedx Group, Inc.*		869		8,386
Apollo Education Group, Inc. — Class A*		755		8,350
Diplomat Pharmacy, Inc.*		289		8,303
Zeltiq Aesthetics, Inc.*		258		8,264
Analogic Corp.		99		8,122
NxStage Medical, Inc.*		506		7,980
Abaxis, Inc.		180		7,918
Tumi Holdings, Inc.*		449		7,911
ARIAD Pharmaceuticals, Inc.*		1,339		7,820
Fresh Market, Inc.*		345		7,794
SpartanNash Co.		301		7,781
Andersons, Inc.		227		7,732
Ophthotech Corp.*		190		7,699
TrueBlue, Inc.*		335		7,527
Merrimack Pharmaceuticals, Inc.*		880		7,489
TESARO, Inc.*		186		7,459
Repligen Corp.*		263		7,325
PTC Therapeutics, Inc.*		271		7,236
HeartWare International, Inc.*		138		7,219
Dynavax Technologies Corp.*		293		7,190
Coca-Cola Bottling Company Consolidated		37		7,155
LDR Holding Corp.*		203		7,010
Intra-Cellular Therapies, Inc.*		174		6,967
Emergent BioSolutions, Inc.*		243		6,923
PharMerica Corp.*		243		6,918
Insperity, Inc.		155		6,809
Omeros Corp.*		607		6,653
ImmunoGen, Inc.*		689		6,614
LifeLock, Inc.*		755		6,614
BioCryst Pharmaceuticals, Inc.*		580		6,612
Endologix, Inc.*		539		6,608
PDL BioPharma, Inc.		1,313		6,604
Diamond Foods, Inc.*		211		6,511
Achillion Pharmaceuticals, Inc.*		940		6,495
Green Dot Corp. — Class A*		367		6,459
Xoom Corp.*		256		6,369
MannKind Corp.*		1,974		6,337
ACCO Brands Corp.*		879		6,214
HMS Holdings Corp.*		708		6,209
PRA Health Sciences, Inc.*		159		6,174
Nevro Corp.*		133		6,170
Navigant Consulting, Inc.*		386		6,141
Alder Biopharmaceuticals, Inc.*		187		6,126
NutriSystem, Inc.		231		6,126
Inogen, Inc.*		126		6,117
USANA Health Sciences, Inc.*		45		6,031
TherapeuticsMD, Inc.*		1,017		5,960
RPX Corp.*		434		5,954
NewLink Genetics Corp.*		166		5,949
Tornier N.V.*		290		5,913
Luminex Corp.*		344		5,817
Meridian Bioscience, Inc.		334		5,711
Heron Therapeutics, Inc.*		234		5,710
Retrophin, Inc.*		280		5,673
Surgical Care Affiliates, Inc.*		172		5,623
McGrath RentCorp		209		5,578
TriNet Group, Inc.*		329		5,527
Central Garden & Pet Co. — Class A*		338		5,445
MacroGenics, Inc.*		252		5,398

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Insys Therapeutics, Inc.*		188	$	5,350
Team, Inc.*		166		5,332
Cynosure, Inc. — Class A*		177		5,317
Affymetrix, Inc.*		619		5,286
Calavo Growers, Inc.		118		5,268
Kforce, Inc.		197		5,177
Array BioPharma, Inc.*		1,128		5,144
Ingles Markets, Inc. — Class A		107		5,118
Eagle Pharmaceuticals, Inc.*		69		5,108
Orthofix International N.V.*		150		5,063
AtriCure, Inc.*		227		4,974
Esperion Therapeutics, Inc.*		210		4,954
National Healthcare Corp.		81		4,932
Theravance, Inc.		681		4,890
Capella Education Co.		98		4,853
Strayer Education, Inc.*		88		4,837
Relypsa, Inc.*		261		4,831
Providence Service Corp.*		109		4,750
ICF International, Inc.*		156		4,741
Capital Senior Living Corp.*		236		4,732
Monster Worldwide, Inc.*		728		4,674
Tootsie Roll Industries, Inc.		149		4,662
LHC Group, Inc.*		104		4,656
Sage Therapeutics, Inc.*		110		4,655
Viad Corp.		160		4,638
Enanta Pharmaceuticals, Inc.*		128		4,626
Resources Connection, Inc.		301		4,536
Vascular Solutions, Inc.*		138		4,473
US Physical Therapy, Inc.		99		4,444
Phibro Animal Health Corp. — Class A		140		4,428
Quidel Corp.*		230		4,342
Acceleron Pharma, Inc.*		174		4,333
LendingTree, Inc.*		46		4,279
Atara Biotherapeutics, Inc.*		135		4,244
Synergy Pharmaceuticals, Inc.*		800		4,240
Zafgen, Inc.*		132		4,217
Incorporated Research Holdings, Inc. — Class A*		104		4,160
Atrion Corp.		11		4,125
Anika Therapeutics, Inc.*		129		4,106
Adeptus Health, Inc. — Class A*		50		4,038
Cardiovascular Systems, Inc.*		254		4,023
Spectranetics Corp.*		339		3,997
Sucampo Pharmaceuticals, Inc. — Class A*		199		3,954
Raptor Pharmaceutical Corp.*		644		3,896
CBIZ, Inc.*		396		3,889
Supernus Pharmaceuticals, Inc.*		275		3,858
Hanger, Inc.*		282		3,846
Sorrento Therapeutics, Inc.*		454		3,809
Coherus Biosciences, Inc.*		189		3,788
Akebia Therapeutics, Inc.*		391		3,777
Vanda Pharmaceuticals, Inc.*		334		3,768
Invacare Corp.		259		3,748
Revance Therapeutics, Inc.*		125		3,720
Paylocity Holding Corp.*		124		3,719
Arena Pharmaceuticals, Inc.*		1,936		3,698
Weis Markets, Inc.		88		3,674
Catalyst Pharmaceuticals, Inc.*		1,206		3,618
Boulder Brands, Inc.*		437		3,579
Ennis, Inc.		206		3,576
Lexicon Pharmaceuticals, Inc.*		332		3,566
Cross Country Healthcare, Inc.*		257		3,498
Geron Corp.*		1,265		3,491
Albany Molecular Research, Inc.*		200		3,484
Cerus Corp.*		763		3,464
Triple-S Management Corp. — Class B*		193		3,437
John B Sanfilippo & Son, Inc.		67		3,434
Organovo Holdings, Inc.*		1,260		3,377
Inter Parfums, Inc.		136		3,374
Anthera Pharmaceuticals, Inc.*		554		3,374
Kelly Services, Inc. — Class A		238		3,365
K12, Inc.*		270		3,359
Inovio Pharmaceuticals, Inc.*		574		3,318
Infinity Pharmaceuticals, Inc.*		392		3,312
American Public Education, Inc.*		137		3,213
Spectrum Pharmaceuticals, Inc.*		536		3,205
Progenics Pharmaceuticals, Inc.*		557		3,186
Accuray, Inc.*		632		3,157
Sangamo BioSciences, Inc.*		557		3,141
SP Plus Corp.*		134		3,102
Rockwell Medical, Inc.*		402		3,099
Intersect ENT, Inc.*		132		3,089
Universal American Corp.*		447		3,057
Smart & Final Stores, Inc.*		194		3,048
Genomic Health, Inc.*		142		3,005
Epizyme, Inc.*		232		2,984
Amphastar Pharmaceuticals, Inc.*		254		2,969
Omega Protein Corp.*		174		2,953
Keryx Biopharmaceuticals, Inc.*		829		2,918
Aerie Pharmaceuticals, Inc.*		164		2,909
Ascent Capital Group, Inc. — Class A*		106		2,903
Dermira, Inc.*		124		2,894
Heidrick & Struggles International, Inc.		147		2,859
TG Therapeutics, Inc.*		283		2,853
Landauer, Inc.		77		2,848
Civeo Corp.*		1,917		2,837
Osiris Therapeutics, Inc.*		153		2,826
Agenus, Inc.*		611		2,811
Carriage Services, Inc. — Class A		130		2,807
National Beverage Corp.*		91		2,796
Xencor, Inc.*		228		2,788
Quad/Graphics, Inc.		230		2,783
Accelerate Diagnostics, Inc.*		172		2,783
La Jolla Pharmaceutical Co.*		100		2,779
Healthways, Inc.*		248		2,758
SciClone Pharmaceuticals, Inc.*		397		2,755

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Mirati Therapeutics, Inc.*		80	$	2,754
Navidea Biopharmaceuticals, Inc.*		1,206		2,750
Arrowhead Research Corp.*		476		2,742
Aegerion Pharmaceuticals, Inc.*		201		2,734
Sagent Pharmaceuticals, Inc.*		177		2,713
Revlon, Inc. — Class A*		92		2,709
Everi Holdings, Inc.*		526		2,698
Spark Therapeutics, Inc.*		64		2,671
AngioDynamics, Inc.*		202		2,664
Foamix Pharmaceuticals Ltd.*		362		2,653
GenMark Diagnostics, Inc.*		337		2,652
Five Prime Therapeutics, Inc.*		172		2,647
BioTelemetry, Inc.*		216		2,644
Hackett Group, Inc.		192		2,640
K2M Group Holdings, Inc.*		141		2,623
RTI Surgical, Inc.*		459		2,607
Zogenix, Inc.*		192		2,592
Concert Pharmaceuticals, Inc.*		137		2,571
Forrester Research, Inc.		80		2,515
ANI Pharmaceuticals, Inc.*		63		2,489
Advaxis, Inc.*		242		2,476
NeoGenomics, Inc.*		428		2,452
Barrett Business Services, Inc.		57		2,447
Elizabeth Arden, Inc.*		209		2,443
Great Lakes Dredge & Dock Corp.*		483		2,434
Oncothyreon, Inc.*		884		2,422
STAAR Surgical Co.*		311		2,413
Tejon Ranch Co.*		110		2,399
James River Group Holdings Ltd.		88		2,366
Northwest Biotherapeutics, Inc.*		374		2,338
Medifast, Inc.*		87		2,337
Ardelyx, Inc.*		133		2,298
Idera Pharmaceuticals, Inc.*		684		2,291
Almost Family, Inc.*		57		2,283
Cara Therapeutics, Inc.*		159		2,272
SurModics, Inc.*		104		2,271
Trevena, Inc.*		217		2,246
Theravance Biopharma, Inc.*		204		2,242
OncoMed Pharmaceuticals, Inc.*		135		2,240
CorVel Corp.*		69		2,229
CryoLife, Inc.		227		2,209
Oxford Immunotec Global plc*		161		2,174
IGI Laboratories, Inc.*	��	331		2,165
Tetraphase Pharmaceuticals, Inc.*		289		2,156
Civitas Solutions, Inc.*		94		2,154
Chefs’ Warehouse, Inc.*		151		2,138
Antares Pharma, Inc.*		1,238		2,105
Otonomy, Inc.*		118		2,102
Wausau Paper Corp.		328		2,099
Threshold Pharmaceuticals, Inc.*		511		2,080
Versartis, Inc.*		180		2,075
Lion Biotechnologies, Inc.*		360		2,074
Natural Health Trends Corp.		63		2,059
BioDelivery Sciences International, Inc.*		370		2,057
Galena Biopharma, Inc.*		1,294		2,045
Career Education Corp.*		543		2,042
Aratana Therapeutics, Inc.*		237		2,005
OraSure Technologies, Inc.*		451		2,002
CSS Industries, Inc.		75		1,976
Pfenex, Inc.*		131		1,966
Karyopharm Therapeutics, Inc.*		185		1,948
ARC Document Solutions, Inc.*		326		1,940
CTI BioPharma Corp.*		1,316		1,921
ServiceSource International, Inc.*		471		1,884
MoneyGram International, Inc.*		234		1,877
Paratek Pharmaceuticals, Inc.		98		1,862
Corcept Therapeutics, Inc.*		495		1,861
Cytokinetics, Inc.*		277		1,853
Vectrus, Inc.*		84		1,851
XenoPort, Inc.*		527		1,829
InVivo Therapeutics Holdings Corp.*		212		1,827
Curis, Inc.*		890		1,798
Genesis Healthcare, Inc.*		293		1,796
Pacific Biosciences of California, Inc.*		484		1,771
Durect Corp.*		899		1,753
Foundation Medicine, Inc.*		95		1,753
Rigel Pharmaceuticals, Inc.*		705		1,741
Orexigen Therapeutics, Inc.*		818		1,726
NanoString Technologies, Inc.*		107		1,712
BioSpecifics Technologies Corp.*		39		1,698
Farmer Bros Co.*		62		1,690
Ocular Therapeutix, Inc.*		120		1,687
Sequenom, Inc.*		945		1,654
Flexion Therapeutics, Inc.*		111		1,649
Natural Grocers by Vitamin Cottage, Inc.*		72		1,634
Peregrine Pharmaceuticals, Inc.*		1,599		1,631
Addus HomeCare Corp.*		52		1,620
Utah Medical Products, Inc.		30		1,616
Blueprint Medicines Corp.*		75		1,601
OvaScience, Inc.*		188		1,596
Nutraceutical International Corp.*		67		1,582
Seneca Foods Corp. — Class A*		60		1,581
CRA International, Inc.*		73		1,575
Franklin Covey Co.*		98		1,574
Tokai Pharmaceuticals, Inc.*		152		1,573
Senomyx, Inc.*		350		1,561
Limoneira Co.		92		1,539
RadNet, Inc.*		275		1,526
Cutera, Inc.*		116		1,517
Ignyta, Inc.*		172		1,510
Regulus Therapeutics, Inc.*		226		1,478
Exactech, Inc.*		82		1,429
AAC Holdings, Inc.*		64		1,424
Weight Watchers International, Inc.*		221		1,410
Ocata Therapeutics, Inc.*		336		1,404
Heska Corp.*		46		1,402

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Adamas Pharmaceuticals, Inc.*		83	$	1,389
Inventure Foods, Inc.*		156		1,385
Electro Rent Corp.		133		1,381
MGP Ingredients, Inc.		86		1,377
Endocyte, Inc.*		300		1,374
Collegium Pharmaceutical, Inc.*		62		1,371
PFSweb, Inc.*		96		1,365
VIVUS, Inc.*		830		1,361
ChemoCentryx, Inc.*		224		1,355
POZEN, Inc.*		232		1,354
Trovagene, Inc.*		237		1,349
Village Super Market, Inc. — Class A		57		1,346
Cellular Biomedicine Group, Inc.*		79		1,337
Nobilis Health Corp.*		256		1,336
Immunomedics, Inc.*		772		1,328
Aduro Biotech, Inc.*		67		1,298
Avalanche Biotechnologies, Inc.*		156		1,285
Synta Pharmaceuticals Corp.*		727		1,265
Alico, Inc.		31		1,258
CytRx Corp.*		529		1,254
BioTime, Inc.*		417		1,251
Tandem Diabetes Care, Inc.*		141		1,242
Genocea Biosciences, Inc.*		173		1,185
Vitae Pharmaceuticals, Inc.*		106		1,167
LeMaitre Vascular, Inc.		95		1,158
Second Sight Medical Products, Inc.*		189		1,121
Liberty Tax, Inc.		48		1,118
Immune Design Corp.*		91		1,110
Stemline Therapeutics, Inc.*		125		1,104
SeaSpine Holdings Corp.*		68		1,102
Pernix Therapeutics Holdings, Inc.*		348		1,100
Assembly Biosciences, Inc.*		115		1,099
Loxo Oncology, Inc.*		62		1,084
Five Star Quality Care, Inc.*		346		1,069
Patriot National, Inc.*		67		1,061
Medgenics, Inc.*		135		1,056
Bridgepoint Education, Inc.*		135		1,029
BioScrip, Inc.*		549		1,027
Nature’s Sunshine Products, Inc.		85		1,018
Harvard Bioscience, Inc.*		268		1,013
Dicerna Pharmaceuticals, Inc.*		121		993
CDI Corp.		114		975
Bellicum Pharmaceuticals, Inc.*		66		959
Pendrell Corp.*		1,330		958
National Research Corp. — Class A		78		931
Applied Genetic Technologies Corp.*		70		920
Unilife Corp.*		926		907
Proteon Therapeutics, Inc.*		62		862
Collectors Universe, Inc.		57		860
Affimed N.V.*		135		833
Synutra International, Inc.*		170		808
TransEnterix, Inc.*		357		807
Fibrocell Science, Inc.*		209		805
Corium International, Inc.*		85		795
Care.com, Inc.*		153		786
Entellus Medical, Inc.*		43		775
NV5 Holdings, Inc.*		41		761
Volt Information Sciences, Inc.*		76		692
Craft Brew Alliance, Inc.*		82		654
T2 Biosystems, Inc.*		73		639
Universal Technical Institute, Inc.		169		593
iRadimed Corp.*		24		585
Agile Therapeutics, Inc.*		83		559
Sientra, Inc.*		54		548
XOMA Corp.*		729		548
CorMedix, Inc.*		274		545
Vital Therapies, Inc.*		134		541
Alimera Sciences, Inc.*		243		537
Veracyte, Inc.*		108		507
Cambium Learning Group, Inc.*		104		496
Cidara Therapeutics, Inc.*		39		496
aTyr Pharma, Inc.*		48		492
Alliance HealthCare Services, Inc.*		50		488
Calithera Biosciences, Inc.*		89		483
XBiotech, Inc.*		32		478
Neff Corp. — Class A*		84		470
Verastem, Inc.*		258		462
Invitae Corp.*		59		426
Lifeway Foods, Inc.*		38		398
SFX Entertainment, Inc.*		734		374
Abeona Therapeutics, Inc.*		91		369
Carbylan Therapeutics, Inc.*		98		350
Asterias Biotherapeutics, Inc.*		84		325
Arcadia Biosciences, Inc.*		65		198
Fairway Group Holdings Corp.*		184		193
Tobira Therapeutics, Inc.*		19		184
Total Consumer, Non-cyclical				3,029,302
Consumer, Cyclical - 10.4%
American Eagle Outfitters, Inc.		3,132		48,954
Casey’s General Stores, Inc.		311		32,008
Burlington Stores, Inc.*		603		30,777
Vail Resorts, Inc.		291		30,462
Buffalo Wild Wings, Inc.*		152		29,401
Restoration Hardware Holdings, Inc.*		299		27,899
Pool Corp.		348		25,161
Ascena Retail Group, Inc.*		1,748		24,315
Allegiant Travel Co. — Class A		107		23,139
Jack in the Box, Inc.		299		23,035
Cracker Barrel Old Country Store, Inc.		153		22,534
Tenneco, Inc.*		491		21,983
Cheesecake Factory, Inc.		390		21,044
Texas Roadhouse, Inc. — Class A		560		20,832
Dana Holding Corp.		1,305		20,723
Big Lots, Inc.		431		20,654
Lithia Motors, Inc. — Class A		182		19,676
G-III Apparel Group Ltd.*		319		19,670

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Cooper Tire & Rubber Co.		460	$	18,175
Chico’s FAS, Inc.		1,147		18,042
Bloomin’ Brands, Inc.		992		18,035
Wolverine World Wide, Inc.		826		17,874
Asbury Automotive Group, Inc.*		218		17,691
Deckers Outdoor Corp.*		296		17,186
TRI Pointe Group, Inc.*		1,293		16,925
Steven Madden Ltd.*		450		16,479
Men’s Wearhouse, Inc.		387		16,455
Pinnacle Entertainment, Inc.*		484		16,378
Five Below, Inc.*		486		16,321
Group 1 Automotive, Inc.		187		15,923
Papa John’s International, Inc.		232		15,887
HNI Corp.		356		15,272
Ryland Group, Inc.		374		15,270
HSN, Inc.		260		14,882
Churchill Downs, Inc.		108		14,451
Cato Corp. — Class A		421		14,327
Marriott Vacations Worldwide Corp.		207		14,106
Herman Miller, Inc.		477		13,757
Columbia Sportswear Co.		230		13,522
Express, Inc.*		756		13,510
American Woodmark Corp.*		206		13,363
Liberty TripAdvisor Holdings, Inc. — Class A*		598		13,258
La Quinta Holdings, Inc.*		839		13,239
Beacon Roofing Supply, Inc.*		397		12,898
Gentherm, Inc.*		287		12,892
UniFirst Corp.		119		12,710
DineEquity, Inc.		136		12,466
Steelcase, Inc. — Class A		666		12,261
Core-Mark Holding Company, Inc.		185		12,109
American Axle & Manufacturing Holdings, Inc.*		606		12,084
PriceSmart, Inc.		156		12,065
Interface, Inc. ��� Class A		529		11,871
G&K Services, Inc. — Class A		178		11,858
Abercrombie & Fitch Co. — Class A		556		11,782
Meritage Homes Corp.*		317		11,577
Mobile Mini, Inc.		367		11,300
Genesco, Inc.*		192		10,957
Dorman Products, Inc.*		214		10,890
La-Z-Boy, Inc.		409		10,863
Penn National Gaming, Inc.*		638		10,706
Caleres, Inc.		350		10,686
DreamWorks Animation SKG, Inc. — Class A*		608		10,610
Guess?, Inc.		495		10,573
Children’s Place, Inc.		182		10,496
Popeyes Louisiana Kitchen, Inc.*		185		10,427
Boyd Gaming Corp.*		638		10,399
Essendant, Inc.		307		9,956
Fiesta Restaurant Group, Inc.*		215		9,755
SeaWorld Entertainment, Inc.		547		9,742
Sonic Corp.		416		9,547
Hawaiian Holdings, Inc.*		382		9,428
CalAtlantic Group, Inc.*		1,170		9,360
Bob Evans Farms, Inc.		212		9,190
Select Comfort Corp.*		418		9,146
First Cash Financial Services, Inc.*		226		9,054
KB Home		653		8,848
Oxford Industries, Inc.		117		8,644
Knoll, Inc.		390		8,572
Red Robin Gourmet Burgers, Inc.*		113		8,559
Outerwall, Inc.		148		8,425
Scientific Games Corp. — Class A*		804		8,402
Buckle, Inc.		226		8,355
Meritor, Inc.*		781		8,302
MDC Holdings, Inc.		313		8,194
ScanSource, Inc.*		229		8,120
Crocs, Inc.*		616		7,962
Belmond Ltd. — Class A*		775		7,835
Diamond Resorts International, Inc.*		333		7,789
Vitamin Shoppe, Inc.*		238		7,768
Krispy Kreme Doughnuts, Inc.*		519		7,593
ClubCorp Holdings, Inc.		351		7,532
Denny’s Corp.*		675		7,445
BJ’s Restaurants, Inc.*		172		7,401
Finish Line, Inc. — Class A		368		7,102
International Speedway Corp. — Class A		223		7,074
Hibbett Sports, Inc.*		199		6,967
iRobot Corp.*		238		6,935
SkyWest, Inc.		413		6,889
Dave & Buster’s Entertainment, Inc.*		182		6,885
Virgin America, Inc.*		201		6,880
Mattress Firm Holding Corp.*		164		6,849
Rush Enterprises, Inc. — Class A*		283		6,848
TiVo, Inc.*		777		6,729
Remy International, Inc.		229		6,698
National CineMedia, Inc.		492		6,603
Steiner Leisure Ltd.*		103		6,508
Cooper-Standard Holding, Inc.*		109		6,322
Cash America International, Inc.		220		6,153
Eros International plc*		226		6,145
Zoe’s Kitchen, Inc.*		155		6,121
Wesco Aircraft Holdings, Inc.*		494		6,027
Kirkland’s, Inc.		277		5,967
Wabash National Corp.*		543		5,751
Interval Leisure Group, Inc.		313		5,747
Libbey, Inc.		175		5,707
Standard Motor Products, Inc.		159		5,546
Rentrak Corp.*		102		5,515
Sonic Automotive, Inc. — Class A		263		5,370
Ethan Allen Interiors, Inc.		203		5,361
Universal Electronics, Inc.*		127		5,338
Conn’s, Inc.*		219		5,264
Pep Boys-Manny Moe & Jack*		430		5,242
Callaway Golf Co.		624		5,210
Navistar International Corp.*		408		5,190

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Iconix Brand Group, Inc.*		382	$	5,165
Stage Stores, Inc.		510		5,018
Pier 1 Imports, Inc.		721		4,975
Barnes & Noble, Inc.		406		4,917
Performance Sports Group Ltd.*		363		4,871
Taylor Morrison Home Corp. — Class A*		260		4,852
Cavco Industries, Inc.*		71		4,834
Biglari Holdings, Inc.*		13		4,755
M/I Homes, Inc.*		196		4,622
America’s Car-Mart, Inc.*		137		4,533
Ruth’s Hospitality Group, Inc.		279		4,531
Motorcar Parts of America, Inc.*		144		4,513
Regis Corp.*		327		4,284
AMC Entertainment Holdings, Inc. — Class A		170		4,282
H&E Equipment Services, Inc.		250		4,180
Francesca’s Holdings Corp.*		339		4,146
Winnebago Industries, Inc.		215		4,117
Installed Building Products, Inc.*		159		4,020
Tower International, Inc.*		169		4,015
Carmike Cinemas, Inc.*		196		3,938
Haverty Furniture Companies, Inc.		163		3,827
Nautilus, Inc.*		251		3,765
DTS, Inc.*		141		3,765
Chuy’s Holdings, Inc.*		132		3,749
Douglas Dynamics, Inc.		179		3,555
Unifi, Inc.*		119		3,547
Fred’s, Inc. — Class A		297		3,519
Superior Industries International, Inc.		187		3,493
Beazer Homes USA, Inc.*		261		3,479
Carrols Restaurant Group, Inc.*		284		3,380
Movado Group, Inc.		128		3,306
Barnes & Noble Education, Inc.*		257		3,266
William Lyon Homes — Class A*		156		3,214
Sequential Brands Group, Inc.*		222		3,212
Party City Holdco, Inc.*		201		3,210
Isle of Capri Casinos, Inc.*		177		3,087
Ruby Tuesday, Inc.*		497		3,086
LGI Homes, Inc.*		112		3,045
Modine Manufacturing Co.*		383		3,014
Citi Trends, Inc.		124		2,899
MarineMax, Inc.*		204		2,883
Shoe Carnival, Inc.		120		2,856
Lumber Liquidators Holdings, Inc.*		217		2,851
Marcus Corp.		147		2,843
WCI Communities, Inc.*		123		2,783
Zumiez, Inc.*		176		2,751
Culp, Inc.		83		2,662
Daktronics, Inc.		307		2,662
Caesars Acquisition Co. — Class A*		370		2,627
Del Frisco’s Restaurant Group, Inc.*		189		2,625
Caesars Entertainment Corp.*		443		2,609
PetMed Express, Inc.		162		2,608
Kimball International, Inc. — Class B		275		2,602
Tile Shop Holdings, Inc.*		217		2,600
EZCORP, Inc. — Class A*		414		2,554
Century Communities, Inc.*		122		2,422
Veritiv Corp.*		65		2,421
Bassett Furniture Industries, Inc.		86		2,395
Republic Airways Holdings, Inc.*		407		2,352
Arctic Cat, Inc.		104		2,307
Fox Factory Holding Corp.*		136		2,293
Titan International, Inc.		346		2,287
Stein Mart, Inc.		235		2,275
Shake Shack, Inc. — Class A*		46		2,180
Build-A-Bear Workshop, Inc. — Class A*		114		2,153
Perry Ellis International, Inc.*		98		2,152
Vera Bradley, Inc.*		170		2,144
Metaldyne Performance Group, Inc.		102		2,143
Eldorado Resorts, Inc.*		226		2,039
Hooker Furniture Corp.		86		2,024
Malibu Boats, Inc. — Class A*		143		1,999
Habit Restaurants, Inc. — Class A*		92		1,970
Freshpet, Inc.*		185		1,943
Potbelly Corp.*		175		1,927
Tuesday Morning Corp.*		352		1,904
Green Brick Partners, Inc.*		173		1,874
Winmark Corp.		18		1,853
Strattec Security Corp.		29		1,829
PC Connection, Inc.		86		1,783
Miller Industries, Inc.		91		1,778
Container Store Group, Inc.*		126		1,774
Sportsman’s Warehouse Holdings, Inc.*		144		1,774
Boot Barn Holdings, Inc.*		96		1,769
NACCO Industries, Inc. — Class A		36		1,712
Speedway Motorsports, Inc.		94		1,697
Hovnanian Enterprises, Inc. — Class A*		954		1,689
Reading International, Inc. — Class A*		132		1,672
Destination XL Group, Inc.*		287		1,667
Federal-Mogul Holdings Corp.*		243		1,660
Titan Machinery, Inc.*		139		1,596
Jamba, Inc.*		111		1,582
Noodles & Co.*		111		1,572
Big 5 Sporting Goods Corp.		146		1,515
Flexsteel Industries, Inc.		47		1,469
Monarch Casino & Resort, Inc.*		81		1,456
Weyco Group, Inc.		53		1,433
Bravo Brio Restaurant Group, Inc.*		122		1,375
Systemax, Inc.*		181		1,356
Superior Uniform Group, Inc.		75		1,345
AV Homes, Inc.*		99		1,338
VOXX International Corp. — Class A*		177		1,313
JAKKS Pacific, Inc.*		152		1,295
Horizon Global Corp.*		145		1,279
West Marine, Inc.*		144		1,264
Escalade, Inc.		80		1,264
Intrawest Resorts Holdings, Inc.*		144		1,247

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Lifetime Brands, Inc.		86	$	1,202
El Pollo Loco Holdings, Inc.*		108		1,164
Black Diamond, Inc.*		182		1,143
Bojangles’, Inc.*		66		1,115
J Alexander’s Holdings, Inc.*		111		1,102
Skullcandy, Inc.*		195		1,078
Papa Murphy’s Holdings, Inc.*		73		1,072
Kona Grill, Inc.*		68		1,071
Cherokee, Inc.*		68		1,055
New Home Company, Inc.*		80		1,036
Commercial Vehicle Group, Inc.*		240		967
Johnson Outdoors, Inc. — Class A		41		865
Accuride Corp.*		311		861
Vince Holding Corp.*		247		847
Tilly’s, Inc. — Class A*		102		751
Morgans Hotel Group Co.*		217		720
Castle Brands, Inc.*		533		704
Marine Products Corp.		85		590
Flex Pharma, Inc.*		45		540
Empire Resorts, Inc.*		124		522
Blue Bird Corp.*		41		408
Christopher & Banks Corp.*		298		331
bebe stores, Inc.		228		214
Total Consumer, Cyclical				1,848,362
Industrial - 8.7%
Berry Plastics Group, Inc.*		955		28,716
Teledyne Technologies, Inc.*		283		25,555
FEI Co.		332		24,249
Woodward, Inc.		588		23,932
Curtiss-Wright Corp.		380		23,720
EMCOR Group, Inc.		501		22,169
Con-way, Inc.		461		21,875
Tech Data Corp.*		293		20,071
Dycom Industries, Inc.*		273		19,754
CLARCOR, Inc.		401		19,119
EnerSys		356		19,074
Esterline Technologies Corp.*		249		17,901
Moog, Inc. — Class A*		310		16,762
Generac Holdings, Inc.*		553		16,640
Littelfuse, Inc.		181		16,498
IMAX Corp.*		483		16,321
Louisiana-Pacific Corp.*		1,139		16,219
Belden, Inc.		341		15,921
Barnes Group, Inc.		438		15,789
KLX, Inc.*		422		15,082
Masonite International Corp.*		241		14,600
HEICO Corp. — Class A		319		14,486
Sanmina Corp.*		661		14,127
Rexnord Corp.*		814		13,821
XPO Logistics, Inc.*		572		13,631
Mueller Industries, Inc.		456		13,488
Matson, Inc.		348		13,395
Scorpio Tankers, Inc.		1,430		13,113
Hillenbrand, Inc.		503		13,083
Knowles Corp.*		698		12,864
KapStone Paper and Packaging Corp.		764		12,614
Proto Labs, Inc.*		186		12,462
Applied Industrial Technologies, Inc.		321		12,247
OSI Systems, Inc.*		158		12,160
Knight Transportation, Inc.		500		12,000
Watts Water Technologies, Inc. — Class A		225		11,885
Tetra Tech, Inc.		482		11,718
Simpson Manufacturing Company, Inc.		337		11,286
RBC Bearings, Inc.*		187		11,170
Headwaters, Inc.*		590		11,093
Universal Display Corp.*		322		10,916
Nordic American Tankers Ltd.		713		10,838
Swift Transportation Co. — Class A*		704		10,574
Drew Industries, Inc.		193		10,540
Hub Group, Inc. — Class A*		289		10,522
Vishay Intertechnology, Inc.		1,083		10,494
Apogee Enterprises, Inc.		234		10,448
Coherent, Inc.*		191		10,448
Plexus Corp.*		269		10,378
Franklin Electric Company, Inc.		381		10,375
Forward Air Corp.		248		10,290
Raven Industries, Inc.		605		10,254
AZZ, Inc.		206		10,030
Mueller Water Products, Inc. — Class A		1,287		9,858
Itron, Inc.*		308		9,828
Methode Electronics, Inc.		307		9,793
Advanced Energy Industries, Inc.*		366		9,626
TASER International, Inc.*		428		9,427
MSA Safety, Inc.		234		9,353
Granite Construction, Inc.		315		9,346
Universal Forest Products, Inc.		161		9,286
Exponent, Inc.		208		9,269
Benchmark Electronics, Inc.*		419		9,117
John Bean Technologies Corp.		234		8,951
Werner Enterprises, Inc.		355		8,911
Sturm Ruger & Company, Inc.		150		8,804
Actuant Corp. — Class A		476		8,754
Trex Company, Inc.*		257		8,566
MasTec, Inc.*		534		8,453
HEICO Corp.		171		8,358
Tennant Co.		147		8,258
Comfort Systems USA, Inc.		298		8,123
Aerojet Rocketdyne Holdings, Inc.*		501		8,106
Heartland Express, Inc.		403		8,036
Boise Cascade Co.*		316		7,970
Rogers Corp.*		149		7,924
Greif, Inc. — Class A		246		7,850
Kaman Corp.		218		7,815
Advanced Drainage Systems, Inc.		269		7,782
Ship Finance International Ltd.		474		7,703
Standex International Corp.		102		7,686

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
US Ecology, Inc.		173	$	7,551
Brady Corp. — Class A		382		7,510
ESCO Technologies, Inc.		209		7,503
Cubic Corp.		173		7,256
Smith & Wesson Holding Corp.*		430		7,254
Lindsay Corp.		106		7,186
EnPro Industries, Inc.		183		7,168
Atlas Air Worldwide Holdings, Inc.*		200		6,912
Briggs & Stratton Corp.		357		6,894
Federal Signal Corp.		500		6,855
Greenbrier Companies, Inc.		211		6,775
II-VI, Inc.*		419		6,738
Badger Meter, Inc.		116		6,735
Albany International Corp. — Class A		226		6,466
AAON, Inc.		327		6,337
Saia, Inc.*		201		6,221
Astronics Corp.*		153		6,186
TriMas Corp.*		362		5,919
Rofin-Sinar Technologies, Inc.*		225		5,834
Harsco Corp.		641		5,814
US Concrete, Inc.*		117		5,591
Primoris Services Corp.		310		5,552
DHT Holdings, Inc.		743		5,513
CIRCOR International, Inc.		137		5,496
CTS Corp.		296		5,479
Encore Wire Corp.		166		5,423
AAR Corp.		284		5,387
ArcBest Corp.		208		5,360
Teekay Tankers Ltd. — Class A		761		5,251
Fabrinet*		283		5,187
Continental Building Products, Inc.*		252		5,176
Builders FirstSource, Inc.*		406		5,148
Astec Industries, Inc.		152		5,094
Sun Hydraulics Corp.		182		5,000
Tidewater, Inc.		376		4,940
Tutor Perini Corp.*		300		4,938
Quanex Building Products Corp.		271		4,924
Era Group, Inc.*		328		4,910
Altra Industrial Motion Corp.		211		4,878
Nortek, Inc.*		77		4,875
FARO Technologies, Inc.*		139		4,865
AVX Corp.		370		4,843
Aegion Corp. — Class A*		293		4,829
PGT, Inc.*		382		4,691
Chart Industries, Inc.*		244		4,687
General Cable Corp.		391		4,653
Echo Global Logistics, Inc.*		237		4,645
Gibraltar Industries, Inc.*		248		4,551
Hyster-Yale Materials Handling, Inc.		76		4,395
Newport Corp.*		319		4,386
MYR Group, Inc.*		167		4,375
Griffon Corp.		274		4,321
Lydall, Inc.*		151		4,302
Roadrunner Transportation Systems, Inc.*		225		4,140
Patrick Industries, Inc.*		102		4,028
NN, Inc.		215		3,978
Scorpio Bulkers, Inc.*		2,688		3,924
Summit Materials, Inc. — Class A*		204		3,829
Haynes International, Inc.		100		3,784
Gorman-Rupp Co.		152		3,643
TAL International Group, Inc.*		266		3,636
Air Transport Services Group, Inc.*		422		3,608
Argan, Inc.		104		3,607
Alamo Group, Inc.		77		3,600
Global Brass & Copper Holdings, Inc.		172		3,528
Celadon Group, Inc.		219		3,508
GSI Group, Inc.*		275		3,501
YRC Worldwide, Inc.*		262		3,474
Hornbeck Offshore Services, Inc.*		256		3,464
Kadant, Inc.		88		3,433
UTI Worldwide, Inc.*		738		3,387
National Presto Industries, Inc.		39		3,286
Navios Maritime Holdings, Inc.		1,305		3,249
TimkenSteel Corp.		319		3,228
GasLog Ltd.		333		3,203
Aerovironment, Inc.*		158		3,166
Marten Transport Ltd.		191		3,088
TTM Technologies, Inc.*		472		2,941
Columbus McKinnon Corp.		161		2,924
Textainer Group Holdings Ltd.		177		2,919
Park Electrochemical Corp.		163		2,867
Kimball Electronics, Inc.*		233		2,780
Stoneridge, Inc.*		224		2,764
DXP Enterprises, Inc.*		101		2,755
American Railcar Industries, Inc.		76		2,748
Tredegar Corp.		200		2,616
Myers Industries, Inc.		195		2,613
Mesa Laboratories, Inc.		23		2,562
Applied Optoelectronics, Inc.*		136		2,554
Checkpoint Systems, Inc.		337		2,443
LSB Industries, Inc.*		158		2,421
GP Strategies Corp.*		104		2,373
Insteel Industries, Inc.		147		2,364
Park-Ohio Holdings Corp.		81		2,338
Frontline Ltd.*		864		2,324
Trinseo S.A.*		92		2,324
Navios Maritime Acquisition Corp.		656		2,309
NCI Building Systems, Inc.*		217		2,294
Powell Industries, Inc.		73		2,197
Blount International, Inc.*		389		2,167
Chase Corp.		55		2,166
American Science & Engineering, Inc.		59		2,098
Stock Building Supply Holdings, Inc.*		118		2,078
PowerSecure International, Inc.*		180		2,074
Dorian LPG Ltd.*		200		2,062
Ply Gem Holdings, Inc.*		172		2,012

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
NVE Corp.		39	$	1,893
Fluidigm Corp.*		230		1,865
Casella Waste Systems, Inc. — Class A*		317		1,839
Furmanite Corp.*		302		1,836
AEP Industries, Inc.*		32		1,835
CECO Environmental Corp.		218		1,785
Ducommun, Inc.*		88		1,766
Ardmore Shipping Corp.		143		1,727
Mistras Group, Inc.*		134		1,722
Kratos Defense & Security Solutions, Inc.*		406		1,713
FreightCar America, Inc.		99		1,699
Sparton Corp.*		79		1,691
Covenant Transportation Group, Inc. — Class A*		94		1,689
TRC Companies, Inc.*		137		1,621
Bel Fuse, Inc. — Class B		83		1,614
ZAGG, Inc.*		236		1,602
Control4 Corp.*		185		1,510
LSI Industries, Inc.		173		1,460
Graham Corp.		81		1,430
CAI International, Inc.*		138		1,391
Hurco Companies, Inc.		53		1,391
Vicor Corp.*		132		1,346
USA Truck, Inc.*		78		1,344
Orion Marine Group, Inc.*		224		1,340
VSE Corp.		33		1,322
Golden Ocean Group Ltd.*		535		1,316
Imprivata, Inc.*		73		1,297
Multi-Fineline Electronix, Inc.*		73		1,219
Vishay Precision Group, Inc.*		101		1,171
Xerium Technologies, Inc.*		88		1,142
Core Molding Technologies, Inc.*		61		1,125
Radiant Logistics, Inc.*		251		1,119
Universal Truckload Services, Inc.		70		1,090
Eagle Bulk Shipping, Inc.*		178		1,056
Heritage-Crystal Clean, Inc.*		101		1,037
LB Foster Co. — Class A		83		1,019
Lawson Products, Inc.*		46		996
Northwest Pipe Co.*		76		993
Hill International, Inc.*		293		961
Nordic American Offshore Ltd.		151		906
Allied Motion Technologies, Inc.		50		889
Power Solutions International, Inc.*		37		840
Safe Bulkers, Inc.		303		836
Twin Disc, Inc.		67		831
PAM Transportation Services, Inc.*		25		826
Omega Flex, Inc.		23		768
Fenix Parts, Inc.*		110		735
Olympic Steel, Inc.		73		726
Handy & Harman Ltd.*		21		504
NL Industries, Inc.*		109		326
Ultrapetrol Bahamas Ltd.*		171		70
Total Industrial				1,549,057
Technology - 8.5%
Tyler Technologies, Inc.*		269		40,165
Mentor Graphics Corp.		1,602		39,457
Manhattan Associates, Inc.*		590		36,757
MAXIMUS, Inc.		527		31,389
Guidewire Software, Inc.*		561		29,497
EPAM Systems, Inc.*		391		29,137
Imperva, Inc.*		423		27,697
Dealertrack Technologies, Inc.*		438		27,665
Cavium, Inc.*		442		27,126
Qlik Technologies, Inc.*		731		26,645
NetScout Systems, Inc.*		736		26,032
Aspen Technology, Inc.*		683		25,893
Microsemi Corp.*		761		24,976
Synaptics, Inc.*		295		24,325
Integrated Device Technology, Inc.*		1,187		24,096
Verint Systems, Inc.*		491		21,187
Blackbaud, Inc.		375		21,045
Fair Isaac Corp.		248		20,956
ACI Worldwide, Inc.*		934		19,726
SYNNEX Corp.		230		19,563
Take-Two Interactive Software, Inc.*		677		19,451
Proofpoint, Inc.*		315		19,000
Medidata Solutions, Inc.*		442		18,613
Convergys Corp.		791		18,281
Electronics for Imaging, Inc.*		375		16,229
Monolithic Power Systems, Inc.		316		16,179
Cirrus Logic, Inc.*		507		15,976
Diebold, Inc.		519		15,450
FleetMatics Group plc*		306		15,022
Entegris, Inc.*		1,122		14,799
Science Applications International Corp.		368		14,797
MicroStrategy, Inc. — Class A*		74		14,539
Ambarella, Inc.*		251		14,505
MKS Instruments, Inc.		427		14,317
CACI International, Inc. — Class A*		193		14,276
Cornerstone OnDemand, Inc.*		431		14,223
Silicon Laboratories, Inc.*		342		14,207
Demandware, Inc.*		267		13,799
Tessera Technologies, Inc.		421		13,645
Fairchild Semiconductor International, Inc. — Class A*		931		13,071
Syntel, Inc.*		280		12,687
Acxiom Corp.*		625		12,350
Intersil Corp. — Class A		1,055		12,344
CommVault Systems, Inc.*		362		12,294
OmniVision Technologies, Inc.*		465		12,211
Virtusa Corp.*		237		12,160
Rambus, Inc.*		924		10,903
Stratasys Ltd.*		407		10,781
Progress Software Corp.*		405		10,461
Synchronoss Technologies, Inc.*		310		10,168
Power Integrations, Inc.		235		9,910

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
ExlService Holdings, Inc.*		266	$	9,823
Nimble Storage, Inc.*		405		9,769
MedAssets, Inc.*		483		9,689
Envestnet, Inc.*		317		9,500
PMC-Sierra, Inc.*		1,395		9,444
Luxoft Holding, Inc.*		147		9,304
Paycom Software, Inc.*		252		9,049
Omnicell, Inc.*		290		9,019
SPS Commerce, Inc.*		132		8,961
Advanced Micro Devices, Inc.*		5,088		8,751
Bottomline Technologies de, Inc.*		327		8,178
CSG Systems International, Inc.		262		8,070
Super Micro Computer, Inc.*		295		8,042
Semtech Corp.*		531		8,018
Insight Enterprises, Inc.*		310		8,014
Sykes Enterprises, Inc.*		312		7,956
Cabot Microelectronics Corp.*		198		7,671
Callidus Software, Inc.*		442		7,510
Rovi Corp.*		707		7,416
Inphi Corp.*		306		7,356
QLogic Corp.*		698		7,155
MTS Systems Corp.		119		7,153
AVG Technologies N.V.*		328		7,134
Pegasystems, Inc.		286		7,038
RealPage, Inc.*		422		7,014
Monotype Imaging Holdings, Inc.		320		6,982
BroadSoft, Inc.*		233		6,981
HubSpot, Inc.*		150		6,956
2U, Inc.*		192		6,893
Veeco Instruments, Inc.*		323		6,625
Cray, Inc.*		327		6,478
Diodes, Inc.*		300		6,411
Brooks Automation, Inc.		540		6,323
Cvent, Inc.*		187		6,294
Constant Contact, Inc.*		257		6,230
InvenSense, Inc. — Class A*		620		5,760
Qualys, Inc.*		199		5,664
ManTech International Corp. — Class A		216		5,551
Integrated Silicon Solution, Inc.		254		5,458
M/A-COM Technology Solutions Holdings, Inc.*		188		5,450
Ebix, Inc.		214		5,341
MaxLinear, Inc. — Class A*		414		5,150
Quality Systems, Inc.		400		4,992
Photronics, Inc.*		532		4,820
Dot Hill Systems Corp.*		490		4,768
Unisys Corp.*		399		4,748
Mercury Systems, Inc.*		274		4,359
PROS Holdings, Inc.*		191		4,229
Glu Mobile, Inc.*		963		4,208
Globant S.A.*		136		4,160
Interactive Intelligence Group, Inc.*		138		4,100
Xura, Inc.*		182		4,073
Merge Healthcare, Inc.*		552		3,919
TeleTech Holdings, Inc.		146		3,911
Applied Micro Circuits Corp.*		726		3,855
Computer Programs & Systems, Inc.		91		3,834
Actua Corp.*		325		3,822
Silver Spring Networks, Inc.*		291		3,748
inContact, Inc.*		492		3,695
Engility Holdings, Inc.		143		3,687
Lattice Semiconductor Corp.*		934		3,596
Amkor Technology, Inc.*		791		3,552
Ultratech, Inc.*		221		3,540
LivePerson, Inc.*		456		3,447
Epiq Systems, Inc.		259		3,346
Pericom Semiconductor Corp.		179		3,267
Rudolph Technologies, Inc.*		255		3,175
FormFactor, Inc.*		461		3,126
RealD, Inc.*		323		3,104
CEVA, Inc.*		165		3,064
Xcerra Corp.*		487		3,058
Immersion Corp.*		224		2,516
Sapiens International Corporation N.V.		214		2,465
Press Ganey Holdings, Inc.*		82		2,426
Axcelis Technologies, Inc.*		908		2,424
Eastman Kodak Co.*		155		2,421
Vocera Communications, Inc.*		206		2,350
Digi International, Inc.*		199		2,346
Nanometrics, Inc.*		192		2,331
QAD, Inc. — Class A		91		2,330
Tangoe, Inc.*		312		2,246
IXYS Corp.		199		2,221
SciQuest, Inc.*		221		2,210
PDF Solutions, Inc.*		216		2,160
Avid Technology, Inc.*		258		2,054
Cohu, Inc.		207		2,041
Ciber, Inc.*		631		2,007
Benefitfocus, Inc.*		63		1,969
Sigma Designs, Inc.*		283		1,950
MobileIron, Inc.*		624		1,934
American Software, Inc. — Class A		199		1,875
Exar Corp.*		315		1,874
Kopin Corp.*		595		1,868
Digimarc Corp.*		61		1,864
OPOWER, Inc.*		209		1,862
InnerWorkings, Inc.*		297		1,856
Guidance Software, Inc.*		303		1,824
New Relic, Inc.*		46		1,753
Jive Software, Inc.*		373		1,742
Seachange International, Inc.*		267		1,682
Model N, Inc.*		167		1,672
KEYW Holding Corp.*		268		1,648
DSP Group, Inc.*		179		1,631
Carbonite, Inc.*		145		1,614
Everyday Health, Inc.*		173		1,581
Alpha & Omega Semiconductor Ltd.*		198		1,542

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Cascade Microtech, Inc.*		109	$	1,541
Ultra Clean Holdings, Inc.*		253		1,452
Mattson Technology, Inc.*		599		1,396
Quantum Corp.*		1,979		1,380
Agilysys, Inc.*		123		1,368
Hortonworks, Inc.*		61		1,335
TubeMogul, Inc.*		125		1,315
Brightcove, Inc.*		260		1,279
EMCORE Corp.*		186		1,265
Castlight Health, Inc. — Class B*		270		1,134
Varonis Systems, Inc.*		72		1,122
Silicon Graphics International Corp.*		278		1,093
Barracuda Networks, Inc.*		65		1,013
Violin Memory, Inc.*		727		1,003
Datalink Corp.*		165		985
Park City Group, Inc.*		85		898
Workiva, Inc.*		59		896
Digital Turbine, Inc.*		390		706
Five9, Inc.*		190		703
Imation Corp.*		281		599
Amber Road, Inc.*		141		595
ExOne Co.*		84		564
Apigee Corp.*		41		433
Code Rebel Corp.*		9		64
Total Technology				1,497,194
Communications - 4.9%
Infinera Corp.*		2,020		39,512
j2 Global, Inc.		386		27,347
Houghton Mifflin Harcourt Co.*		1,095		22,239
ViaSat, Inc.*		342		21,988
Ciena Corp.*		987		20,451
Plantronics, Inc.		343		17,442
Time, Inc.		876		16,688
Web.com Group, Inc.*		701		14,776
GrubHub, Inc.*		601		14,628
InterDigital, Inc.		289		14,623
LogMeIn, Inc.*		197		13,428
Sinclair Broadcast Group, Inc. — Class A		530		13,420
Anixter International, Inc.*		228		13,174
New York Times Co. — Class A		1,100		12,991
Gray Television, Inc.*		1,011		12,900
Polycom, Inc.*		1,214		12,723
comScore, Inc.*		275		12,691
Meredith Corp.		294		12,519
NeuStar, Inc. — Class A*		443		12,054
Shutterfly, Inc.*		337		12,049
WebMD Health Corp. — Class A*		302		12,032
Nexstar Broadcasting Group, Inc. — Class A		250		11,838
DigitalGlobe, Inc.*		580		11,032
Media General, Inc.*		767		10,730
Cogent Communications Holdings, Inc.		368		9,995
NETGEAR, Inc.*		332		9,684
Stamps.com, Inc.*		129		9,547
West Corp.		417		9,341
NIC, Inc.		524		9,280
Finisar Corp.*		831		9,249
zulily, Inc. — Class A*		525		9,135
Vonage Holdings Corp.*		1,485		8,732
Zendesk, Inc.*		430		8,475
EW Scripps Co. — Class A		473		8,358
Ubiquiti Networks, Inc.		245		8,303
Scholastic Corp.		213		8,298
Shenandoah Telecommunications Co.		193		8,263
Marketo, Inc.*		278		7,901
RingCentral, Inc. — Class A*		429		7,786
Consolidated Communications Holdings, Inc.		404		7,786
Gogo, Inc.*		503		7,686
Infoblox, Inc.*		453		7,239
Ruckus Wireless, Inc.*		603		7,164
Ixia*		485		7,028
ADTRAN, Inc.		459		6,701
EarthLink Holdings Corp.		825		6,419
MDC Partners, Inc. — Class A		348		6,414
Endurance International Group Holdings, Inc.*		469		6,266
Wayfair, Inc. — Class A*		178		6,241
Atlantic Tele-Network, Inc.		82		6,062
Inteliquent, Inc.		268		5,984
Globalstar, Inc.*		3,809		5,980
8x8, Inc.*		705		5,830
Bankrate, Inc.*		534		5,527
New Media Investment Group, Inc.		357		5,519
Cincinnati Bell, Inc.*		1,677		5,232
Premiere Global Services, Inc.*		372		5,111
Windstream Holdings, Inc.		807		4,955
Loral Space & Communications, Inc.*		105		4,943
General Communication, Inc. — Class A*		280		4,833
Shutterstock, Inc.*		157		4,748
CalAmp Corp.*		290		4,666
Harmonic, Inc.*		793		4,599
GTT Communications, Inc.*		196		4,559
Blucora, Inc.*		327		4,503
VASCO Data Security International, Inc.*		261		4,447
HealthStream, Inc.*		202		4,405
Chegg, Inc.*		611		4,405
Coupons.com, Inc.*		488		4,392
Gigamon, Inc.*		219		4,382
Perficient, Inc.*		283		4,367
FTD Companies, Inc.*		146		4,351
Global Eagle Entertainment, Inc.*		371		4,259
Textura Corp.*		158		4,083
World Wrestling Entertainment, Inc. — Class A		241		4,073
Iridium Communications, Inc.*		657		4,041
Lands’ End, Inc.*		146		3,943
Q2 Holdings, Inc.*		156		3,856
ShoreTel, Inc.*		516		3,855
ePlus, Inc.*		45		3,558

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Entravision Communications Corp. — Class A		510	$	3,386
Blue Nile, Inc.*		95		3,186
Spok Holdings, Inc.		192		3,160
Pacific DataVision, Inc.*		104		3,110
Straight Path Communications, Inc. — Class B*		75		3,031
XO Group, Inc.*		212		2,996
Rubicon Project, Inc.*		205		2,979
Calix, Inc.*		355		2,765
Internap Corp.*		440		2,697
Extreme Networks, Inc.*		800		2,688
Comtech Telecommunications Corp.		130		2,679
ORBCOMM, Inc.*		478		2,667
Intralinks Holdings, Inc.*		321		2,661
Wix.com Ltd.*		150		2,613
DHI Group, Inc.*		356		2,602
Safeguard Scientifics, Inc.*		166		2,580
FairPoint Communications, Inc.*		167		2,573
Lionbridge Technologies, Inc.*		515		2,544
RetailMeNot, Inc.*		307		2,530
RigNet, Inc.*		97		2,474
Boingo Wireless, Inc.*		293		2,426
Yodlee, Inc.*		145		2,339
Sonus Networks, Inc.*		396		2,265
Lumos Networks Corp.		182		2,213
HC2 Holdings, Inc.*		315		2,208
Bazaarvoice, Inc.*		488		2,201
Etsy, Inc.*		160		2,190
Entercom Communications Corp. — Class A*		203		2,062
TrueCar, Inc.*		391		2,037
Alliance Fiber Optic Products, Inc.		116		1,982
Rocket Fuel, Inc.*		424		1,980
Zix Corp.*		460		1,937
IDT Corp. — Class B		134		1,916
Daily Journal Corp.*		10		1,862
1-800-Flowers.com, Inc. — Class A*		200		1,820
Black Box Corp.		123		1,813
Oclaro, Inc.*		782		1,799
Hawaiian Telcom Holdco, Inc.*		86		1,787
Telenav, Inc.*		226		1,765
Angie’s List, Inc.*		350		1,764
ChannelAdvisor Corp.*		173		1,720
Millennial Media, Inc.*		955		1,671
Overstock.com, Inc.*		96		1,647
Tribune Publishing Co.		210		1,646
Intelsat S.A.*		254		1,633
A10 Networks, Inc.*		271		1,623
Cumulus Media, Inc. — Class A*		2,301		1,619
QuinStreet, Inc.*		285		1,582
Reis, Inc.		68		1,540
NeoPhotonics Corp.*		223		1,519
Crown Media Holdings, Inc. — Class A*		277		1,482
Martha Stewart Living Omnimedia, Inc. — Class A*		247		1,472
Journal Media Group, Inc.		195		1,463
Liquidity Services, Inc.*		193		1,426
TeleCommunication Systems, Inc. — Class A*		402		1,383
Harte-Hanks, Inc.		386		1,363
TechTarget, Inc.*		157		1,338
Box, Inc. — Class A*		103		1,296
KVH Industries, Inc.*		129		1,290
VirnetX Holding Corp.*		362		1,289
Central European Media Enterprises Ltd. — Class A*		590		1,274
NTELOS Holdings Corp.*		139		1,255
Clearfield, Inc.*		90		1,209
United Online, Inc.*		117		1,170
Aerohive Networks, Inc.*		187		1,118
Hemisphere Media Group, Inc.*		81		1,102
Marchex, Inc. — Class B		260		1,048
EVINE Live, Inc.*		399		1,045
Sizmek, Inc.*		172		1,030
Saga Communications, Inc. — Class A		29		975
Limelight Networks, Inc.*		487		930
ModusLink Global Solutions, Inc.*		302		864
Preformed Line Products Co.		21		780
RealNetworks, Inc.*		185		757
Marin Software, Inc.*		239		748
Novatel Wireless, Inc.*		301		665
Corindus Vascular Robotics, Inc.*		180		556
Townsquare Media, Inc. — Class A*		55		537
Travelzoo, Inc.*		56		463
Connecture, Inc.*		53		242
MaxPoint Interactive, Inc.*		55		224
Total Communications				874,315
Utilities - 2.8%
Portland General Electric Co.		710		26,249
IDACORP, Inc.		403		26,078
Cleco Corp.		484		25,768
Piedmont Natural Gas Company, Inc.		630		25,243
WGL Holdings, Inc.		398		22,952
UIL Holdings Corp.		453		22,772
Southwest Gas Corp.		375		21,870
Dynegy, Inc.*		1,025		21,186
New Jersey Resources Corp.		685		20,571
NorthWestern Corp.		376		20,240
ALLETE, Inc.		390		19,691
ONE Gas, Inc.		421		19,084
Laclede Group, Inc.		347		18,922
PNM Resources, Inc.		637		17,868
Avista Corp.		498		16,559
Black Hills Corp.		359		14,841
South Jersey Industries, Inc.		547		13,812
American States Water Co.		302		12,504
El Paso Electric Co.		323		11,893
MGE Energy, Inc.		277		11,410
Ormat Technologies, Inc.		298		10,141

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Northwest Natural Gas Co.		219	$	10,039
California Water Service Group		383		8,472
Otter Tail Corp.		300		7,818
Empire District Electric Co.		349		7,688
Talen Energy Corp.*		668		6,747
Abengoa Yield plc		392		6,488
Chesapeake Utilities Corp.		122		6,476
NRG Yield, Inc. — Class C		502		5,828
Unitil Corp.		112		4,131
SJW Corp.		127		3,905
Connecticut Water Service, Inc.		99		3,615
NRG Yield, Inc. — Class A		276		3,077
Middlesex Water Co.		129		3,075
York Water Co.		103		2,165
Atlantic Power Corp.		975		1,814
PICO Holdings, Inc.*		184		1,781
EnerNOC, Inc.*		217		1,714
Artesian Resources Corp. — Class A		63		1,521
Consolidated Water Company Ltd.		118		1,369
Ameresco, Inc. — Class A*		160		941
Genie Energy Ltd. — Class B*		100		823
Spark Energy, Inc. — Class A		24		397
Total Utilities				489,538
Basic Materials - 2.1%
Sensient Technologies Corp.		418		25,622
PolyOne Corp.		713		20,919
Chemtura Corp.*		537		15,369
Balchem Corp.		249		15,132
HB Fuller Co.		403		13,678
Minerals Technologies, Inc.		278		13,388
Commercial Metals Co.		926		12,548
US Silica Holdings, Inc.		857		12,075
Carpenter Technology Corp.		403		11,998
Kaiser Aluminum Corp.		137		10,994
Olin Corp.		620		10,422
Worthington Industries, Inc.		384		10,168
Stillwater Mining Co.*		965		9,969
Innospec, Inc.		194		9,023
Axiall Corp.		562		8,818
Schweitzer-Mauduit International, Inc.		244		8,389
Quaker Chemical Corp.		107		8,248
OM Group, Inc.		243		7,992
Neenah Paper, Inc.		134		7,810
A. Schulman, Inc.		234		7,598
Clearwater Paper Corp.*		152		7,180
Innophos Holdings, Inc.		179		7,096
Calgon Carbon Corp.		422		6,575
Stepan Co.		154		6,408
Aceto Corp.		233		6,396
Ferro Corp.*		584		6,395
Globe Specialty Metals, Inc.		520		6,308
PH Glatfelter Co.		346		5,958
Hecla Mining Co.		2,962		5,835
Deltic Timber Corp.		88		5,263
Materion Corp.		161		4,833
Kraton Performance Polymers, Inc.*		251		4,493
Rayonier Advanced Materials, Inc.		650		3,978
AK Steel Holding Corp.*		1,422		3,427
Koppers Holdings, Inc.		164		3,308
Hawkins, Inc.		85		3,273
Coeur Mining, Inc.*		1,088		3,068
Ring Energy, Inc.*		306		3,020
Cliffs Natural Resources, Inc.		1,226		2,991
Schnitzer Steel Industries, Inc. — Class A		212		2,870
American Vanguard Corp.		233		2,694
Landec Corp.*		216		2,521
Intrepid Potash, Inc.*		449		2,487
Tronox Ltd. — Class A		509		2,224
OMNOVA Solutions, Inc.*		375		2,078
Rentech, Inc.*		366		2,050
Century Aluminum Co.*		441		2,029
Orchids Paper Products Co.		73		1,905
KMG Chemicals, Inc.		77		1,485
Horsehead Holding Corp.*		453		1,377
Kronos Worldwide, Inc.		187		1,161
Energy Fuels, Inc.*		350		1,019
Oil-Dri Corporation of America		39		893
Uranium Energy Corp.*		780		780
United States Lime & Minerals, Inc.		16		730
Ryerson Holding Corp.*		88		462
Valhi, Inc.		153		289
Total Basic Materials				365,019
Energy - 2.0%
Western Refining, Inc.		569		25,104
PDC Energy, Inc.*		320		16,964
SemGroup Corp. — Class A		351		15,177
Matador Resources Co.*		656		13,605
Delek US Holdings, Inc.		459		12,714
Carrizo Oil & Gas, Inc.*		412		12,582
Oil States International, Inc.*		413		10,791
Parsley Energy, Inc. — Class A*		668		10,067
Exterran Holdings, Inc.		555		9,989
Oasis Petroleum, Inc.*		1,113		9,661
RSP Permian, Inc.*		474		9,599
McDermott International, Inc.*		2,144		9,219
MRC Global, Inc.*		824		9,188
SEACOR Holdings, Inc.*		146		8,731
Pattern Energy Group, Inc.		446		8,514
Synergy Resources Corp.*		832		8,154
Ultra Petroleum Corp.*		1,225		7,828
Atwood Oceanics, Inc.		517		7,657
Bristow Group, Inc.		279		7,298
Flotek Industries, Inc.*		428		7,147
Green Plains, Inc.		304		5,916
Forum Energy Technologies, Inc.*		474		5,788
Thermon Group Holdings, Inc.*		257		5,281

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
RUSSELL 2000® FUND

	Shares		Value
Sanchez Energy Corp.*		846	$	5,203
Matrix Service Co.*		214		4,809
Unit Corp.*		403		4,538
Alon USA Energy, Inc.		250		4,518
SunCoke Energy, Inc.		522		4,061
Helix Energy Solutions Group, Inc.*		847		4,057
Callon Petroleum Co.*		527		3,842
TETRA Technologies, Inc.*		637		3,765
Newpark Resources, Inc.*		673		3,446
Peabody Energy Corp.*		2,222		3,066
CARBO Ceramics, Inc.		157		2,981
Renewable Energy Group, Inc.*		351		2,906
REX American Resources Corp.*		53		2,683
Par Petroleum Corp.*		128		2,666
Parker Drilling Co.*		978		2,572
Clean Energy Fuels Corp.*		570		2,565
Plug Power, Inc.*		1,387		2,538
Stone Energy Corp.*		457		2,267
Basic Energy Services, Inc.*		682		2,251
Tesco Corp.		312		2,228
Northern Oil and Gas, Inc.*		493		2,179
Panhandle Oil and Gas, Inc. — Class A		132		2,133
Westmoreland Coal Co.*		143		2,015
Trecora Resources*		162		2,012
Natural Gas Services Group, Inc.*		102		1,969
FutureFuel Corp.		195		1,927
EXCO Resources, Inc.*		2,530		1,898
PHI, Inc.*		100		1,888
Clayton Williams Energy, Inc.*		47		1,824
Halcon Resources Corp.*		3,297		1,747
Vivint Solar, Inc.*		165		1,729
Solazyme, Inc.*		640		1,664
Pacific Ethanol, Inc.*		255		1,655
Enphase Energy, Inc.*		441		1,632
Bonanza Creek Energy, Inc.*		398		1,620
Rex Energy Corp.*		771		1,596
C&J Energy Services Ltd.*		451		1,588
FuelCell Energy, Inc.*		2,006		1,474
Geospace Technologies Corp.*		105		1,450
Fairmount Santrol Holdings, Inc.*		512		1,382
Bill Barrett Corp.*		400		1,320
Cloud Peak Energy, Inc.*		488		1,283
Gulfmark Offshore, Inc. — Class A		205		1,253
Seventy Seven Energy, Inc.*		899		1,241
Jones Energy, Inc. — Class A*		232		1,111
Evolution Petroleum Corp.		197		1,093
Pioneer Energy Services Corp.*		515		1,082
Approach Resources, Inc.*		578		1,081
Contango Oil & Gas Co.*		139		1,056
Key Energy Services, Inc.*		2,133		1,003
Abraxas Petroleum Corp.*		751		961
SandRidge Energy, Inc.*		3,463		935
ION Geophysical Corp.*		2,262		882
W&T Offshore, Inc.		280		840
Energy XXI Ltd.		755		793
Eclipse Resources Corp.*		384		749
Gastar Exploration, Inc.*		649		746
Independence Contract Drilling, Inc.*		147		732
Adams Resources & Energy, Inc.		17		697
Isramco, Inc.*		7		695
Hallador Energy Co.		87		605
Magnum Hunter Resources Corp.*		1,766		600
Triangle Petroleum Corp.*		373		530
TransAtlantic Petroleum Ltd.*		207		526
North Atlantic Drilling Ltd.*		572		440
Erin Energy Corp.*		111		435
Penn Virginia Corp.*		573		304
Earthstone Energy, Inc.*		13		198
Total Energy				362,509
Diversified - 0.1%
HRG Group, Inc.*		629		7,378
National Bank Holdings Corp. — Class A		319		6,549
Tiptree Financial, Inc. — Class A		239		1,530
Resource America, Inc. — Class A		128		851
Total Diversified				16,308
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		240		5,556
Total Common Stocks
(Cost $13,719,512)				13,498,312
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16†		29		5
Magnum Hunter Resources Corp.
$8.50, 04/15/16		264		—
Total Warrants
(Cost $150)				5
RIGHTS††† - 0.0%
Leap Wireless International, Inc.
Expires 02/17/16		1,211		—
Furiex Pharmaceuticals, Inc.
Expires 07/03/17		88		—
Omthera Pharmaceuticals, Inc.
Expires 12/31/20		86		—
Total Rights
(Cost $1,952)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
RUSSELL 2000® FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 1.1%
Federal Home Loan Bank1
0.10% due 10/23/15	$	200,000	$	199,988
Total Federal Agency Discount Notes
(Cost $199,988)				199,988
REPURCHASE AGREEMENTS††,2 - 18.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		1,851,564		1,851,564
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		708,718		708,718
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		665,122		665,122
Total Repurchase Agreements
(Cost $3,225,404)				3,225,404
Total Investments - 95.6%
(Cost $17,147,006)			$	16,923,709
Other Assets & Liabilities, net - 4.4%				780,971
Total Net Assets - 100.0%			$	17,704,680

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $1,861,840)		17	$	(105,415	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 Russell 2000 Index Swap, Terminating 10/30/153 (Notional Value $1,587,909)		1,443	$	11,078
Goldman Sachs International October 2015 Russell 2000 Index Swap, Terminating 10/27/153 (Notional Value $630,257)		573		5,864
Credit Suisse Capital, LLC October 2015 Russell 2000 Index Swap, Terminating 10/27/153 (Notional Value $153,718)		140		(2,977	)
(Total Notional Value $2,371,884)			$	13,965

*	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	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 5.
3	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $13,921,602)	$	13,698,305
Repurchase agreements, at value (cost $3,225,404)		3,225,404
Total investments (cost $17,147,006)		16,923,709
Foreign currency, at value (cost $19)		19
Segregated cash with broker		407,567
Unrealized appreciation on swap agreements		16,942
Cash		303
Receivables:
Fund shares sold		477,231
Variation margin		28,560
Dividends		17,509
Securities lending income		17
Foreign taxes reclaim		13
Interest		4
Total assets		17,871,874
Liabilities:
Unrealized depreciation on swap agreements		2,977
Payable for:
Fund shares redeemed		123,981
Management fees		11,819
Distribution and service fees		5,809
Transfer agent and administrative fees		3,940
Portfolio accounting fees		2,364
Swap settlement		627
Miscellaneous		15,677
Total liabilities		167,194
Commitments and contingent liabilities (Note 12)		—
Net assets	$	17,704,680
Net assets consist of:
Paid in capital	$	22,817,021
Accumulated net investment loss		(136,152	)
Accumulated net realized loss on investments		(4,661,442	)
Net unrealized depreciation on investments		(314,747	)
Net assets	$	17,704,680
A-Class:
Net assets	$	2,053,057
Capital shares outstanding		60,306
Net asset value per share	$	34.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.74
C-Class:
Net assets	$	2,870,604
Capital shares outstanding		91,413
Net asset value per share	$	31.40
H-Class:
Net assets	$	12,781,019
Capital shares outstanding		376,420
Net asset value per share	$	33.95

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

RUSSELL 2000^® FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $235)	$	134,360
Income from securities lending, net		3,692
Interest		2,997
Total investment income		141,049
Expenses:
Management fees		124,859
Transfer agent and administrative fees		41,620
Distribution and service fees:
A-Class		6,834
C-Class		18,476
H-Class		30,169
Portfolio accounting fees		24,973
Registration fees		17,031
Custodian fees		1,906
Trustees’ fees*		1,497
Miscellaneous		9,468
Total expenses		276,833
Net investment loss		(135,784	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	(2,348,400	)
Swap agreements		(2,060,690	)
Futures contracts		45,052
Net realized loss		(4,364,038	)
Net change in unrealized appreciation (depreciation) on:
Investments		(441,930	)
Swap agreements		(32,291	)
Futures contracts		(451,180	)
Net change in unrealized appreciation (depreciation)		(925,401	)
Net realized and unrealized loss		(5,289,439	)
Net decrease in net assets resulting from operations	$	(5,425,223	)

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

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

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(135,784	)	$	(416,534	)
Net realized gain (loss) on investments		(4,364,038	)		13,808,708
Net change in unrealized appreciation (depreciation) on investments		(925,401	)		(10,497,814	)
Net increase (decrease) in net assets resulting from operations		(5,425,223	)		2,894,360
Distributions to shareholders from:
Net realized gains
A-Class		—			(428,859	)
C-Class		—			(120,935	)
H-Class		—			(2,896,710	)
Total distributions to shareholders		—			(3,446,504	)
Capital share transactions:
Proceeds from sale of shares
A-Class		14,139,105			44,122,051
C-Class		10,482,770			22,066,473
H-Class		111,087,200			516,907,387
Distributions reinvested
A-Class		—			423,430
C-Class		—			105,736
H-Class		—			2,810,032
Cost of shares redeemed
A-Class		(25,097,356	)		(34,232,043	)
C-Class		(11,398,976	)		(21,273,536	)
H-Class		(122,163,510	)		(534,945,783	)
Net decrease from capital share transactions		(22,950,767	)		(4,016,253	)
Net decrease in net assets		(28,375,990	)		(4,568,397	)
Net assets:
Beginning of period		46,080,670			50,649,067
End of period	$	17,704,680		$	46,080,670
Accumulated net investment loss at end of period	$	(136,152	)	$	(368	)
Capital share activity:
Shares sold
A-Class		363,070			1,191,618
C-Class		297,591			636,256
H-Class		2,899,566			14,045,560
Shares issued from reinvestment of distributions
A-Class		—			11,478
C-Class		—			3,089
H-Class		—			76,360
Shares redeemed
A-Class		(660,744	)		(930,285	)
C-Class		(324,490	)		(612,792	)
H-Class		(3,242,485	)		(14,573,641	)
Net decrease in shares		(667,492	)		(152,357	)

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	38.88		$	37.80		$	32.26		$	28.20		$	28.54		$	22.96
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.25	)		(.27	)		(.13	)		(.23	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(4.67	)		2.61			7.54			4.19			(.11	)		5.82
Total from investment operations		(4.84	)		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	$	34.04		$	38.88		$	37.80		$	32.26		$	28.20		$	28.54
Total Returnc		(12.45	%)		6.42	%		22.87	%		14.40	%		(1.19	%)		24.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,053		$	13,920		$	3,219		$	3,723		$	670		$	755
Ratios to average net assets:
Net investment income (loss)		(0.87	%)		(0.67	%)		(0.77	%)		(0.44	%)		(0.89	%)		(1.01	%)
Total expenses		1.57	%		1.57	%		1.60	%		1.55	%		1.58	%		1.56	%
Portfolio turnover rate		256	%		947	%		267	%		160	%		121	%		284	%

C-Class	Period Ended September 30, 2015a			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	$	36.00		$	35.36		$	30.54		$	26.90		$	27.46		$	22.29
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.60	)		(.48	)		(.31	)		(.46	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(4.34	)		2.52			7.03			3.95			(.10	)		5.64
Total from investment operations		(4.60	)		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	$	31.40		$	36.00		$	35.36		$	30.54		$	26.90		$	27.46
Total Returnc		(12.78	%)		5.61	%		21.78	%		13.53	%		(2.04	%)		23.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,871		$	4,259		$	3,245		$	2,599		$	6,285		$	7,068
Ratios to average net assets:
Net investment income (loss)		(1.47	%)		(1.77	%)		(1.47	%)		(1.19	%)		(1.83	%)		(1.87	%)
Total expenses		2.33	%		2.57	%		2.37	%		2.31	%		2.34	%		2.31	%
Portfolio turnover rate		256	%		947	%		267	%		160	%		121	%		284	%

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	38.79		$	37.73		$	32.25		$	28.16		$	28.52		$	22.93
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.28	)		(.27	)		(.12	)		(.22	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(4.71	)		2.62			7.48			4.21			(.14	)		5.86
Total from investment operations		(4.84	)		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	$	33.95		$	38.79		$	37.73		$	32.25		$	28.16		$	28.52
Total Returnc		(12.48	%)		6.37	%		22.69	%		14.52	%		(1.26	%)		24.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,781		$	27,902		$	44,185		$	101,053		$	63,447		$	32,389
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.77	%)		(0.78	%)		(0.42	%)		(0.83	%)		(1.09	%)
Total expenses		1.58	%		1.58	%		1.59	%		1.52	%		1.58	%		1.57	%
Portfolio turnover rate		256	%		947	%		267	%		160	%		121	%		284	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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.

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	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 Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	31.6%
Fannie Mae	7.3%
Total	38.9%

“Largest Holdings” exclude any temporary cash or derivative investments.

128 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 31.6%
Guggenheim Strategy Fund I1		349,828	$	8,703,732
Total Mutual Funds
(Cost $8,707,425)				8,703,732

	Face Amount
FEDERAL AGENCY NOTES†† - 7.3%
Fannie Mae2
0.20% due 09/08/17	$	2,000,000		1,999,324
Total Federal Agency Notes
(Cost $1,999,608)				1,999,324
FEDERAL AGENCY DISCOUNT NOTES†† - 3.6%
Freddie Mac2
0.15% due 12/04/15		1,000,000		999,804
Total Federal Agency Discount Notes
(Cost $999,733)				999,804
REPURCHASE AGREEMENTS††,3 - 49.9%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		7,865,620		7,865,620
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		3,010,700		3,010,700
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		2,825,500		2,825,500
Total Repurchase Agreements
(Cost $13,701,820)				13,701,820
Total Investments - 92.4%
(Cost $25,408,586)			$	25,404,680
Other Assets & Liabilities, net - 7.6%				2,075,791
Total Net Assets - 100.0%			$	27,480,471

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $2,847,520)		26	$	128,655

	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2015 Russell 2000 Index Swap, Terminating 10/27/154 (Notional Value $1,115,777)		1,014	$	21,543
Goldman Sachs International October 2015 Russell 2000 Index Swap, Terminating 10/27/154 (Notional Value $10,059,605)		9,139		(93,932	)
Barclays Bank plc October 2015 Russell 2000 Index Swap, Terminating 10/30/154 (Notional Value $13,384,690)		12,160		(129,391	)
(Total Notional Value $24,560,072)			$	(201,780	)

†	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 9.
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.
4	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $2,999,341)	$	2,999,128
Investments in affiliated issuers, at value (cost $8,707,425)		8,703,732
Repurchase agreements, at value (cost $13,701,820)		13,701,820
Total investments (cost $25,408,586)		25,404,680
Segregated cash with broker		2,958,063
Unrealized appreciation on swap agreements		21,543
Receivables:
Fund shares sold		37,459
Dividends		5,651
Interest		282
Total assets		28,427,678
Liabilities:
Unrealized depreciation on swap agreements		223,323
Payable for:
Fund shares redeemed		615,207
Variation margin		43,680
Management fees		20,551
Swap settlement		15,733
Distribution and service fees		6,814
Transfer agent and administrative fees		5,708
Securities purchased		5,651
Portfolio accounting fees		2,283
Miscellaneous		8,257
Total liabilities		947,207
Commitments and contingent liabilities (Note 12)		—
Net assets	$	27,480,471
Net assets consist of:
Paid in capital	$	79,027,605
Accumulated net investment loss		(144,857	)
Accumulated net realized loss on investments		(51,325,246	)
Net unrealized depreciation on investments		(77,031	)
Net assets	$	27,480,471
A-Class:
Net assets	$	820,591
Capital shares outstanding		25,385
Net asset value per share	$	32.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	33.94
C-Class:
Net assets	$	1,802,225
Capital shares outstanding		60,862
Net asset value per share	$	29.61
H-Class:
Net assets	$	24,857,655
Capital shares outstanding		766,922
Net asset value per share	$	32.41

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	15,002
Interest		2,277
Total investment income		17,279
Expenses:
Management fees		59,141
Transfer agent and administrative fees		16,428
Distribution and service fees:
A-Class		979
C-Class		8,097
H-Class		13,425
Portfolio accounting fees		6,571
Custodian fees		758
Trustees’ fees*		426
Miscellaneous		10,952
Total expenses		116,777
Net investment loss		(99,498	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(407	)
Swap agreements		1,324,703
Futures contracts		448,667
Net realized gain		1,772,963
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(1,621	)
Investments in affiliated issuers		(3,693	)
Swap agreements		(128,950	)
Futures contracts		122,895
Net change in unrealized appreciation (depreciation)		(11,369	)
Net realized and unrealized gain		1,761,594
Net increase in net assets resulting from operations	$	1,662,096

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

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(99,498	)	$	(356,667	)
Net realized gain (loss) on investments		1,772,963			(2,623,240	)
Net change in unrealized appreciation (depreciation) on investments		(11,369	)		124,941
Net increase (decrease) in net assets resulting from operations		1,662,096			(2,854,966	)
Capital share transactions:
Proceeds from sale of shares
A-Class		384,110			15,968,383
C-Class		448,693			6,202,950
H-Class		51,836,451			115,461,343
Cost of shares redeemed
A-Class		(519,126	)		(21,273,561	)
C-Class		(489,673	)		(4,906,679	)
H-Class		(34,190,188	)		(119,810,604	)
Net increase (decrease) from capital share transactions		17,470,267			(8,358,168	)
Net increase (decrease) in net assets		19,132,363			(11,213,134	)
Net assets:
Beginning of period		8,348,108			19,561,242
End of period	$	27,480,471		$	8,348,108
Accumulated net investment loss at end of period	$	(144,857	)	$	(45,359	)
Capital share activity:
Shares sold
A-Class		12,337			473,685
C-Class		15,760			204,651
H-Class		1,688,940			3,469,349
Shares redeemed
A-Class		(17,537	)		(664,308	)
C-Class		(17,420	)		(160,695	)
H-Class		(1,119,139	)		(3,625,353	)
Net increase (decrease) in shares		562,941			(302,671	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 131

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	29.22		$	33.01		$	43.21		$	52.38		$	59.31		$	81.01
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.46	)		(.61	)		(.81	)		(1.02	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		3.32			(3.33	)		(9.59	)		(8.36	)		(5.91	)		(20.56	)
Total from investment operations		3.11			(3.79	)		(10.20	)		(9.17	)		(6.93	)		(21.70	)
Net asset value, end of period	$	32.33		$	29.22		$	33.01		$	43.21		$	52.38		$	59.31
Total Returnc		10.64	%		(11.48	%)		(23.59	%)		(17.53	%)		(11.68	%)		(26.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	821		$	894		$	7,302		$	635		$	612		$	1,114
Ratios to average net assets:
Net investment income (loss)		(1.41	%)		(1.40	%)		(1.69	%)		(1.60	%)		(1.66	%)		(1.53	%)
Total expensesd		1.68	%		1.71	%		1.72	%		1.72	%		1.75	%		1.71	%
Portfolio turnover rate		24	%		189	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	26.86		$	30.59		$	40.30		$	49.22		$	56.14		$	77.26
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.63	)		(.83	)		(1.14	)		(1.41	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		3.04			(3.10	)		(8.88	)		(7.78	)		(5.51	)		(19.47	)
Total from investment operations		2.75			(3.73	)		(9.71	)		(8.92	)		(6.92	)		(21.12	)
Net asset value, end of period	$	29.61		$	26.86		$	30.59		$	40.30		$	49.22		$	56.14
Total Returnc		10.24	%		(12.19	%)		(24.08	%)		(18.16	%)		(12.29	%)		(27.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,802		$	1,680		$	568		$	409		$	837		$	1,158
Ratios to average net assets:
Net investment income (loss)		(2.16	%)		(2.13	%)		(2.45	%)		(2.35	%)		(2.43	%)		(2.28	%)
Total expensesd		2.43	%		2.45	%		2.47	%		2.47	%		2.51	%		2.46	%
Portfolio turnover rate		24	%		189	%		—			—			—			—

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	29.30		$	33.11		$	43.26		$	52.42		$	59.37		$	81.03
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.46	)		(.65	)		(.84	)		(1.05	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		3.33			(3.35	)		(9.50	)		(8.32	)		(5.90	)		(20.52	)
Total from investment operations		3.11			(3.81	)		(10.15	)		(9.16	)		(6.95	)		(21.66	)
Net asset value, end of period	$	32.41		$	29.30		$	33.11		$	43.26		$	52.42		$	59.37
Total Returnc		10.61	%		(11.51	%)		(23.46	%)		(17.46	%)		(11.72	%)		(26.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,858		$	5,775		$	11,691		$	12,822		$	17,283		$	9,572
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		(1.41	%)		(1.69	%)		(1.62	%)		(1.70	%)		(1.53	%)
Total expensesd		1.69	%		1.70	%		1.72	%		1.74	%		1.77	%		1.71	%
Portfolio turnover rate		24	%		189	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 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.

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 Bonds	66.7%
Guggenheim Strategy Fund I	7.5%
Total	74.2%

“Largest Holdings” exclude any temporary cash or derivative investments.

134 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 7.5%
Guggenheim Strategy Fund I1		363,716	$	9,049,255
Total Mutual Funds
(Cost $9,049,184)				9,049,255

	Face Amount
U.S. GOVERNMENT SECURITIES†† - 66.7%
U.S. Treasury Bonds
2.87% due 08/15/45	$	80,200,000		80,212,532
Total U.S. Government Securities
(Cost $77,760,290)				80,212,532
REPURCHASE AGREEMENTS††,2 - 27.0%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		18,609,698		18,609,698
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		7,123,180		7,123,180
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		6,685,005		6,685,005
Total Repurchase Agreements
(Cost $32,417,883)				32,417,883
Total Investments - 101.2%
(Cost $119,227,357)			$	121,679,670
Other Assets & Liabilities, net - (1.2)%				(1,472,436	)
Total Net Assets - 100.0%			$	120,207,234

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2015 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $76,252,344)		475	$	1,212,635

†	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 9.
2	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $77,760,290)	$	80,212,532
Investments in affiliated issuers, at value (cost $9,049,184)		9,049,255
Repurchase agreements, at value (cost $32,417,883)		32,417,883
Total investments (cost $119,227,357)		121,679,670
Segregated cash with broker		1,947,500
Receivables:
Fund shares sold		4,356,823
Securities sold		800,125
Interest		300,331
Dividends		955
Total assets		129,085,404
Liabilities:
Payable for:
Fund shares redeemed		4,474,544
Securities purchased		4,000,831
Variation margin		267,188
Management fees		47,736
Transfer agent and administrative fees		19,095
Distribution and service fees		18,690
Portfolio accounting fees		9,547
Miscellaneous		40,539
Total liabilities		8,878,170
Commitments and contingent liabilities (Note 12)		—
Net assets	$	120,207,234
Net assets consist of:
Paid in capital	$	128,851,811
Undistributed net investment income		3,287
Accumulated net realized loss on investments		(12,312,812	)
Net unrealized appreciation on investments		3,664,948
Net assets	$	120,207,234
Investor Class:
Net assets	$	39,317,434
Capital shares outstanding		721,267
Net asset value per share	$	54.51
Advisor Class:
Net assets	$	7,233,248
Capital shares outstanding		133,455
Net asset value per share	$	54.20
A-Class:
Net assets	$	1,679,364
Capital shares outstanding		30,619
Net asset value per share	$	54.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.59
C-Class:
Net assets	$	3,531,342
Capital shares outstanding		64,796
Net asset value per share	$	54.50
H-Class:
Net assets	$	68,445,846
Capital shares outstanding		1,247,097
Net asset value per share	$	54.88

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Interest	$	1,444,915
Dividends from securities of affiliated issuers		45,327
Total investment income		1,490,242
Expenses:
Management fees		321,315
Transfer agent and administrative fees		128,527
Distribution and service fees:
Advisor Class		16,626
A-Class		4,978
C-Class		12,724
H-Class		84,036
Portfolio accounting fees		63,637
Registration fees		57,938
Custodian fees		7,372
Trustees’ fees*		5,001
Line of credit fees		204
Miscellaneous		13,060
Total expenses		715,418
Net investment income		774,824
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	4,781,088
Investments in affiliated issuers		8,859
Futures contracts		603,340
Net realized gain		5,393,287
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		257,589
Investments in affiliated issuers		71
Futures contracts		(1,221,318	)
Net change in unrealized appreciation (depreciation)		(963,658	)
Net realized and unrealized gain		4,429,629
Net increase in net assets resulting from operations	$	5,204,453

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

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	774,824		$	1,497,181
Net realized gain on investments		5,393,287			32,098,810
Net change in unrealized appreciation (depreciation) on investments		(963,658	)		3,308,347
Net increase in net assets resulting from operations		5,204,453			36,904,338
Distributions to shareholders from:
Net investment income
Investor Class		(328,400	)		(703,362	)
Advisor Class		(40,984	)		(473,253	)
A-Class		(24,990	)		(28,531	)
C-Class		(5,450	)		(8,930	)
H-Class		(371,713	)		(301,178	)*
Total distributions to shareholders		(771,537	)		(1,515,254	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		422,791,222			660,449,135
Advisor Class		209,857,554			3,280,358,617
A-Class		25,656,725			36,939,152
C-Class		7,540,332			33,913,164
H-Class		1,550,395,259			1,267,499,822	*
Distributions reinvested
Investor Class		326,010			697,459
Advisor Class		34,805			463,311
A-Class		23,898			27,051
C-Class		5,023			7,765
H-Class		371,846			301,178	*
Cost of shares redeemed
Investor Class		(445,566,350	)		(658,880,369	)
Advisor Class		(212,004,111	)		(3,412,680,611	)
A-Class		(27,745,352	)		(35,500,878	)
C-Class		(6,639,054	)		(34,886,168	)
H-Class		(1,566,070,372	)		(1,195,580,232	)*
Net decrease from capital share transactions		(41,022,565	)		(56,871,604	)
Net decrease in net assets		(36,589,649	)		(21,482,520	)
Net assets:
Beginning of period		156,796,883			178,279,403
End of period	$	120,207,234		$	156,796,883
Undistributed net investment income at end of period	$	3,287		$	—

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		7,976,312			12,620,583
Advisor Class		3,932,240			66,215,971
A-Class		484,851			676,780
C-Class		138,672			652,055
H-Class		28,550,453			22,022,660	*
Shares issued from reinvestment of distributions
Investor Class		6,044			13,125
Advisor Class		655			9,160
A-Class		442			504
C-Class		94			151
H-Class		6,823			5,002	*
Shares redeemed
Investor Class		(8,300,750	)		(12,545,418	)
Advisor Class		(3,973,056	)		(68,905,187	)
A-Class		(519,902	)		(649,474	)
C-Class		(122,592	)		(673,432	)
H-Class		(28,628,765	)		(20,709,076	)*
Net decrease in shares		(448,479	)		(1,266,596	)

* Since commencement of operations: September 18, 2014

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	59.12		$	45.80		$	48.55		$	44.73		$	34.28		$	32.88
Income (loss) from investment operations:
Net investment income (loss)b		.39			.63			.61			.57			.96			1.08
Net gain (loss) on investments (realized and unrealized)		(4.60	)		13.34			(2.76	)		4.21			10.45			1.40
Total from investment operations		(4.21	)		13.97			(2.15	)		4.78			11.41			2.48
Less distributions from:
Net investment income		(.40	)		(.65	)		(.60	)		(.72	)		(.96	)		(1.08	)
Net realized gains		—			—			—			(.24	)		—			—
Total distributions		(.40	)		(.65	)		(.60	)		(.96	)		(.96	)		(1.08	)
Net asset value, end of period	$	54.51		$	59.12		$	45.80		$	48.55		$	44.73		$	34.28
Total Returnc		(7.10	%)		30.66	%		(4.37	%)		10.63	%		33.38	%		7.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	39,318		$	61,460		$	43,573		$	281,800		$	43,709		$	44,707
Ratios to average net assets:
Net investment income (loss)		1.42	%		1.21	%		1.22	%		1.15	%		2.24	%		3.03	%
Total expensesd		0.93	%		0.95	%		0.97	%		0.95	%		0.95	%		0.98	%
Portfolio turnover rate		1,448	%		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

Advisor Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	58.77		$	45.48		$	48.23		$	44.33		$	34.08		$	32.65
Income (loss) from investment operations:
Net investment income (loss)b		.27			.31			.25			.33			.75			.93
Net gain (loss) on investments (realized and unrealized)		(4.55	)		13.36			(2.63	)		4.26			10.25			1.40
Total from investment operations		(4.28	)		13.67			(2.38	)		4.59			11.00			2.33
Less distributions from:
Net investment income		(.29	)		(.38	)		(.37	)		(.45	)		(.75	)		(.90	)
Net realized gains		—			—			—			(.24	)		—			—
Total distributions		(.29	)		(.38	)		(.37	)		(.69	)		(.75	)		(.90	)
Net asset value, end of period	$	54.20		$	58.77		$	45.48		$	48.23		$	44.33		$	34.08
Total Returnc		(7.27	%)		30.17	%		(4.93	%)		10.21	%		32.56	%		7.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,233		$	10,203		$	129,785		$	103,845		$	11,600		$	31,420
Ratios to average net assets:
Net investment income (loss)		1.00	%		0.62	%		0.64	%		0.63	%		1.77	%		2.46	%
Total expensesd		1.34	%		1.46	%		1.46	%		1.43	%		1.45	%		1.48	%
Portfolio turnover rate		1,448	%		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

140 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	59.47		$	46.07		$	48.73		$	44.77		$	34.34		$	32.89
Income (loss) from investment operations:
Net investment income (loss)b		.34			.51			.48			.48			.87			.99
Net gain (loss) on investments (realized and unrealized)		(4.63	)		13.42			(2.65	)		4.29			10.43			1.45
Total from investment operations		(4.29	)		13.93			(2.17	)		4.77			11.30			2.44
Less distributions from:
Net investment income		(.33	)		(.53	)		(.49	)		(.57	)		(.87	)		(.99	)
Net realized gains		—			—			—			(.24	)		—			—
Total distributions		(.33	)		(.53	)		(.49	)		(.81	)		(.87	)		(.99	)
Net asset value, end of period	$	54.85		$	59.47		$	46.07		$	48.73		$	44.77		$	34.34
Total Returnc		(7.20	%)		30.37	%		(4.40	%)		10.62	%		33.00	%		7.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,679		$	3,879		$	1,724		$	15,476		$	10,885		$	2,753
Ratios to average net assets:
Net investment income (loss)		1.26	%		0.97	%		1.04	%		0.94	%		2.02	%		2.75	%
Total expensesd		1.18	%		1.20	%		1.22	%		1.20	%		1.20	%		1.23	%
Portfolio turnover rate		1,448	%		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	59.09		$	45.79		$	48.51		$	44.63		$	34.25		$	32.82
Income (loss) from investment operations:
Net investment income (loss)b		.12			.13			.12			.15			.57			.72
Net gain (loss) on investments (realized and unrealized)		(4.59	)		13.30			(2.71	)		4.21			10.35			1.43
Total from investment operations		(4.47	)		13.43			(2.59	)		4.36			10.92			2.15
Less distributions from:
Net investment income		(.12	)		(.13	)		(.13	)		(.24	)		(.54	)		(.72	)
Net realized gains		—			—			—			(.24	)		—			—
Total distributions		(.12	)		(.13	)		(.13	)		(.48	)		(.54	)		(.72	)
Net asset value, end of period	$	54.50		$	59.09		$	45.79		$	48.51		$	44.63		$	34.25
Total Returnc		(7.56	%)		29.37	%		(5.33	%)		9.69	%		32.01	%		6.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,531		$	2,873		$	3,198		$	4,594		$	4,451		$	6,091
Ratios to average net assets:
Net investment income (loss)		0.45	%		0.26	%		0.34	%		0.31	%		1.32	%		1.93	%
Total expensesd		1.93	%		1.95	%		1.97	%		1.94	%		1.95	%		1.97	%
Portfolio turnover rate		1,448	%		1,932	%		2,661	%		1,759	%		2,322	%		1,930	%

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	59.44		$	48.83
Income (loss) from investment operations:
Net investment income (loss)b		.31			.28
Net gain (loss) on investments (realized and unrealized)		(4.54	)		10.59
Total from investment operations		(4.23	)		10.87
Less distributions from:
Net investment income		(.33	)		(.26	)
Total distributions		(.33	)		(.26	)
Net asset value, end of period	$	54.88		$	59.44
Total Returnc		(7.10	%)		22.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	68,446		$	78,382
Ratios to average net assets:
Net investment income (loss)		1.11	%		0.89	%
Total expensesd		1.18	%		1.18	%
Portfolio turnover rate		1,448	%		1,932	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.
f	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

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

FUND PROFILE (Unaudited) September 30, 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 contracts on a specified debt instrument on a daily basis. The Fund’s current benchmark is the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

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 Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	31.8%
Total	31.8%

“Largest Long Holding” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 143

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 31.8%
Guggenheim Strategy Fund I1		2,741,255	$	68,202,413
Total Mutual Funds
(Cost $68,246,483)				68,202,413

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 43.2%
Farmer Mac2
0.09% due 10/06/15	$	17,000,000	16,999,788
0.17% due 01/04/16		15,000,000	14,994,855
Total Farmer Mac			31,994,643
Federal Home Loan Bank2
0.15% due 12/02/15		15,000,000	14,997,165
0.16% due 01/08/16		15,000,000	14,994,629
0.07% due 10/01/15		1,000,000	1,000,000
Total Federal Home Loan Bank			30,991,794
Fannie Mae3
0.43% due 08/15/16		16,975,000	16,932,274
Freddie Mac3
0.15% due 12/04/15		12,000,000	11,997,648
0.09% due 10/20/15		1,000,000	999,984
Total Freddie Mac			12,997,632
Total Federal Agency Discount Notes
(Cost $92,888,905)			92,916,343
FEDERAL AGENCY NOTES†† - 5.6%
Fannie Mae3
0.20% due 09/08/17		6,000,000	5,997,972
Federal Farm Credit Bank2
0.18% due 08/01/17		6,000,000	5,996,346
Total Federal Agency Notes
(Cost $11,998,825)			11,994,318

REPURCHASE AGREEMENTS†† - 90.1%
Individual Repurchase Agreements4
Barclays Capital issued 09/30/15 at 0.05% due 10/01/15 (secured by U.S. Treasury Bond, at a rate of 2.88% and maturing 08/15/45 as collateral, with a value of $131,446,125) to be repurchased at $128,868,929	128,868,750		128,868,750
Morgan Stanley issued 09/30/15 at 0.18% due 10/01/15 (secured by U.S. Treasury Bond, at a rate of 2.88% and maturing 08/15/45 as collateral, with a value of $21,655,875) to be repurchased at $21,231,356	21,231,250		21,231,250
Joint Repurchase Agreements5
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	24,858,694		24,858,694
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15	9,515,090		9,515,090
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15	8,929,780		8,929,780
Total Repurchase Agreements
(Cost $193,403,564)			193,403,564
Total Investments - 170.7%
(Cost $366,537,777)		$	366,516,638
U.S. Government Securities Sold Short†† - (71.4)%
U.S. Treasury Bonds
2.87% due 08/15/45	153,200,000		(153,223,937	)
Total U.S. Government Securities Sold Short
(Proceeds $153,439,438)			(153,223,937	)
Other Assets & Liabilities, net - 0.7%			1,462,130
Total Net Assets - 100.0%		$	214,754,831

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2015 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $74,807,563)		466	$	(658,619	)

†	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 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
4	All or portion of this security is pledged as short collateral at September 30, 2015.
5	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $104,887,730)	$	104,910,661
Investments in affiliated issuers, at value (cost $68,246,483)		68,202,413
Repurchase agreements, at value (cost $193,403,564)		193,403,564
Total investments (cost $366,537,777)		366,516,638
Segregated cash with broker		2,609,350
Receivables:
Securities sold		1,200,187
Variation margin		262,125
Fund shares sold		85,744
Dividends		42,914
Interest		6,384
Total assets		370,723,342
Liabilities:
Securities sold short, at value (proceeds $153,439,438)		153,223,937
Payable for:
Securities purchased		1,043,042
Fund shares redeemed		823,715
Management fees		161,180
Transfer agent and administrative fees		44,772
Distribution and service fees		44,613
Portfolio accounting fees		17,893
Miscellaneous		609,359
Total liabilities		155,968,511
Commitments and contingent liabilities (Note 12)		—
Net assets	$	214,754,831
Net assets consist of:
Paid in capital	$	581,143,457
Accumulated net investment loss		(5,349,850	)
Accumulated net realized loss on investments		(360,574,519	)
Net unrealized depreciation on investments		(464,257	)
Net assets	$	214,754,831
Investor Class:
Net assets	$	106,821,518
Capital shares outstanding		2,876,780
Net asset value per share	$	37.13
Advisor Class:
Net assets	$	8,598,228
Capital shares outstanding		245,419
Net asset value per share	$	35.03
A-Class:
Net assets	$	23,650,059
Capital shares outstanding		658,384
Net asset value per share	$	35.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	37.71
C-Class:
Net assets	$	35,095,065
Capital shares outstanding		1,093,948
Net asset value per share	$	32.08
H-Class:
Net assets	$	40,589,961
Capital shares outstanding		1,130,325
Net asset value per share	$	35.91

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	248,725
Interest		63,778
Total investment income		312,503
Expenses:
Management fees		982,439
Transfer agent and administrative fees		272,899
Distribution and service fees:
Advisor Class		18,893
A-Class		29,901
C-Class		187,179
H-Class		34,494
Portfolio accounting fees		108,261
Short interest expense		2,377,269
Custodian fees		12,557
Trustees’ fees*		7,693
Line of credit fees		316
Miscellaneous		122,740
Total expenses		4,154,641
Net investment loss		(3,842,138	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	67,755
Investments in affiliated issuers		(127,092	)
Futures contracts		5,775,355
Securities sold short		5,708,935
Net realized gain		11,424,953
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		9,767
Investments in affiliated issuers		31,707
Securities sold short		2,954,726
Futures contracts		323,117
Net change in unrealized appreciation (depreciation)		3,319,317
Net realized and unrealized gain		14,744,270
Net increase in net assets resulting from operations	$	10,902,132

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

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(3,842,138	)	$	(9,014,925	)
Net realized gain (loss) on investments		11,424,953			(72,078,090	)
Net change in unrealized appreciation (depreciation) on investments		3,319,317			(905,546	)
Net increase (decrease) in net assets resulting from operations		10,902,132			(81,998,561	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		221,246,427			297,049,590
Advisor Class		77,182,234			2,869,893,061
A-Class		17,212,103			9,691,719
C-Class		9,417,855			31,214,542
H-Class		1,077,650,678			1,071,187,111	*
Cost of shares redeemed
Investor Class		(223,079,494	)		(332,060,409	)
Advisor Class		(80,838,817	)		(2,856,681,364	)
A-Class		(15,946,094	)		(29,814,806	)
C-Class		(11,297,946	)		(40,220,259	)
H-Class		(1,086,344,541	)		(1,021,206,700	)*
Net decrease from capital share transactions		(14,797,595	)		(947,515	)
Net decrease in net assets		(3,895,463	)		(82,946,076	)
Net assets:
Beginning of period		218,650,294			301,596,370
End of period	$	214,754,831		$	218,650,294
Accumulated net investment loss at end of period	$	(5,349,850	)	$	(1,507,712	)
Capital share activity:
Shares sold
Investor Class		5,707,474			7,228,729
Advisor Class		2,146,208			70,764,860
A-Class		464,014			258,256
C-Class		281,596			864,726
H-Class		28,910,003			29,826,219	*
Shares redeemed
Investor Class		(5,784,583	)		(8,137,808	)
Advisor Class		(2,246,748	)		(70,800,361	)
A-Class		(428,255	)		(751,587	)
C-Class		(342,275	)		(1,130,632	)
H-Class		(29,043,093	)		(28,562,804	)*
Net decrease in shares		(335,659	)		(440,402	)

* Since commencement of operations: September 18, 2004.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2015a			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	$	35.78		$	46.01		$	43.94		$	48.33		$	65.42		$	73.23
Income (loss) from investment operations:
Net investment income (loss)b		(.63	)		(1.15	)		(1.65	)		(1.20	)		(2.15	)		(3.10	)
Net gain (loss) on investments (realized and unrealized)		1.98			(9.08	)		3.72			(3.19	)		(14.94	)		(4.71	)
Total from investment operations		1.35			(10.23	)		2.07			(4.39	)		(17.09	)		(7.81	)
Net asset value, end of period	$	37.13		$	35.78		$	46.01		$	43.94		$	48.33		$	65.42
Total Returnc		3.77	%		(22.23	%)		4.69	%		(9.10	%)		(26.07	%)		(10.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	106,822		$	105,696		$	177,735		$	143,739		$	247,454		$	406,031
Ratios to average net assets:
Net investment income (loss)		(3.28	%)		(2.80	%)		(3.46	%)		(2.82	%)		(3.99	%)		(4.78	%)
Total expensesf,g		3.57	%		3.15	%		3.50	%		2.99	%		4.13	%		5.06	%
Portfolio turnover rate		830	%		2,190	%		1,097	%		1,309	%		1,107	%		771	%

Advisor Class	Period Ended September 30, 2015a			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	$	33.82		$	43.73		$	41.72		$	46.17		$	62.98		$	70.84
Income (loss) from investment operations:
Net investment income (loss)b		(.66	)		(1.35	)		(1.67	)		(1.35	)		(2.05	)		(3.30	)
Net gain (loss) on investments (realized and unrealized)		1.87			(8.56	)		3.68			(3.10	)		(14.76	)		(4.56	)
Total from investment operations		1.21			(9.91	)		2.01			(4.45	)		(16.81	)		(7.86	)
Net asset value, end of period	$	35.03		$	33.82		$	43.73		$	41.72		$	46.17		$	62.98
Total Returnc		3.58	%		(22.66	%)		4.87	%		(9.64	%)		(26.75	%)		(11.08	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,598		$	11,701		$	16,679		$	11,776		$	199,137		$	44,798
Ratios to average net assets:
Net investment income (loss)		(3.64	%)		(3.35	%)		(3.69	%)		(3.29	%)		(4.22	%)		(5.28	%)
Total expensesf,g		3.93	%		3.64	%		3.72	%		3.45	%		4.38	%		5.56	%
Portfolio turnover rate		830	%		2,190	%		1,097	%		1,309	%		1,107	%		771	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 149

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2015a			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	$	34.66		$	44.68		$	42.77		$	47.18		$	64.00		$	71.82
Income (loss) from investment operations:
Net investment income (loss)b		(.65	)		(1.23	)		(1.73	)		(1.35	)		(2.25	)		(3.20	)
Net gain (loss) on investments (realized and unrealized)		1.91			(8.79	)		3.64			(3.06	)		(14.57	)		(4.62	)
Total from investment operations		1.26			(10.02	)		1.91			(4.41	)		(16.82	)		(7.82	)
Net asset value, end of period	$	35.92		$	34.66		$	44.68		$	42.77		$	47.18		$	64.00
Total Returnc		3.64	%		(22.43	%)		4.51	%		(9.43	%)		(26.25	%)		(10.86	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,650		$	21,580		$	49,859		$	32,842		$	37,607		$	73,475
Ratios to average net assets:
Net investment income (loss)		(3.53	%)		(3.06	%)		(3.73	%)		(3.20	%)		(4.24	%)		(5.03	%)
Total expensesf,g		3.82	%		3.40	%		3.78	%		3.37	%		4.38	%		5.31	%
Portfolio turnover rate		830	%		2,190	%		1,097	%		1,309	%		1,107	%		771	%

C-Class	Period Ended September 30, 2015a			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	$	31.07		$	40.35		$	38.92		$	43.25		$	59.09		$	66.81
Income (loss) from investment operations:
Net investment income (loss)b		(.71	)		(1.36	)		(1.86	)		(1.50	)		(2.40	)		(3.40	)
Net gain (loss) on investments (realized and unrealized)		1.72			(7.92	)		3.29			(2.83	)		(13.44	)		(4.32	)
Total from investment operations		1.01			(9.28	)		1.43			(4.33	)		(15.84	)		(7.72	)
Net asset value, end of period	$	32.08		$	31.07		$	40.35		$	38.92		$	43.25		$	59.09
Total Returnc		3.25	%		(23.00	%)		3.73	%		(10.06	%)		(26.82	%)		(11.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,095		$	35,874		$	57,323		$	55,404		$	69,472		$	114,470
Ratios to average net assets:
Net investment income (loss)		(4.28	%)		(3.78	%)		(4.45	%)		(3.96	%)		(4.98	%)		(5.78	%)
Total expensesf,g		4.57	%		4.14	%		4.49	%		4.13	%		5.12	%		6.06	%
Portfolio turnover rate		830	%		2,190	%		1,097	%		1,309	%		1,107	%		771	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	34.67		$	41.85
Income (loss) from investment operations:
Net investment income (loss)b		(.65	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		1.89			(6.66	)
Total from investment operations		1.24			(7.18	)
Net asset value, end of period	$	35.91		$	34.67
Total Returnc		3.58	%		(17.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	40,590		$	43,800
Ratios to average net assets:
Net investment income (loss)		(3.46	%)		(2.75	%)
Total expensesf,g		3.74	%		3.07	%
Portfolio turnover rate		830	%		2,190	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.
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.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratio for the period and years ended would be:

	09/30/15	03/31/15	03/31/14	03/28/13	03/31/12	03/31/11
Investor Class	1.38%	1.40%	1.41%	1.39%	1.39%	1.42%
Advisor Class	1.75%	1.90%	1.91%	1.88%	1.87%	1.91%
A-Class	1.63%	1.65%	1.66%	1.64%	1.65%	1.67%
C-Class	2.38%	2.40%	2.41%	2.39%	2.40%	2.42%
H-Class	1.63%	1.60%	—	—	—	—

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

FUND PROFILE (Unaudited) September 30, 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.

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	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	25.0%
Guggenheim Strategy Fund II	10.5%
iShares iBoxx $ High Yield Corporate Bond ETF	8.3%
SPDR Barclays High Yield Bond ETF	8.2%
Total	52.0%

“Largest Holdings” exclude any temporary cash or derivative investments.

152 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
HIGH YIELD STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 16.5%
iShares iBoxx $ High Yield Corporate Bond ETF		27,513	$	2,291,557
SPDR Barclays High Yield Bond ETF		64,054		2,284,166
Total Exchange-Traded Funds
(Cost $4,857,022)				4,575,723
MUTUAL FUNDS† - 35.6%
Guggenheim Strategy Fund I1		279,042		6,942,567
Guggenheim Strategy Fund II1		117,609		2,922,576
Total Mutual Funds
(Cost $9,864,440)				9,865,143

	Face Amount
REPURCHASE AGREEMENTS††,2 - 10.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	1,680,242	1,680,242
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		643,142	643,142

UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15	603,579		603,579
Total Repurchase Agreements
(Cost $2,926,963)			2,926,963
Total Investments - 62.6%
(Cost $17,648,425)		$	17,367,829
Other Assets & Liabilities, net - 37.4%			10,397,793
Total Net Assets - 100.0%		$	27,765,622

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $19,646,594)		163	$	67,119

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION SOLD††,3
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Received	Unrealized Appreciation
CDX.NA.HY.25 Index	Barclays Bank plc	5.00%	12/20/20	$ 23,100,000	$(23,085,260)	$ (22,631)	$ 7,890

†	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 9.
2	Repurchase Agreements — See Note 5.
3	Credit Default Swaps — See Note 2.
	See Sector Classification in Other Information section.

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $4,857,022)	$	4,575,723
Investments in affiliated issuers, at value (cost $9,864,440)		9,865,143
Repurchase agreements, at value (cost $2,926,963)		2,926,963
Total investments (cost $17,648,425)		17,367,829
Segregated cash with broker		834,159
Unrealized appreciation on swap agreements		7,890
Receivables:
Fund shares sold		11,642,517
Protection fees on credit default swap		32,086
Dividends		7,505
Securities lending income		113
Securities sold		46
Total assets		29,892,145
Liabilities:
Unamortized upfront premiums received on credit default swaps		22,631
Payable for:
Securities purchased		2,008,254
Fund shares redeemed		31,873
Management fees		23,775
Distribution and service fees		8,968
Transfer agent and administrative fees		7,925
Portfolio accounting fees		3,170
Variation margin		2,577
Miscellaneous		17,350
Total liabilities		2,126,523
Commitments and contingent liabilities (Note 12)		—
Net assets	$	27,765,622
Net assets consist of:
Paid in capital	$	33,362,817
Undistributed net investment income		3,848,979
Accumulated net realized loss on investments		(9,240,587	)
Net unrealized depreciation on investments		(205,587	)
Net assets	$	27,765,622
A-Class:
Net assets	$	5,364,974
Capital shares outstanding		232,456
Net asset value per share	$	23.08
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.23
C-Class:
Net assets	$	1,573,038
Capital shares outstanding		74,263
Net asset value per share	$	21.18
H-Class:
Net assets	$	20,827,610
Capital shares outstanding		901,627
Net asset value per share	$	23.10

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers	$	490,886
Dividends from securities of affiliated issuers		438,271
Interest		27,613
Income from securities lending, net		17,677
Total investment income		974,447
Expenses:
Management fees		1,092,742
Transfer agent and administrative fees		364,248
Distribution and service fees:
A-Class		15,065
C-Class		14,618
H-Class		345,528
Portfolio accounting fees		120,762
Tax expense		18,266
Custodian fees		16,621
Trustees’ fees*		10,570
Line of credit fees		235
Miscellaneous		157,830
Total expenses		2,156,485
Net investment loss		(1,182,038	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(669,118	)
Investments in affiliated issuers		223,763
Swap agreements		(2,526,736	)
Futures contracts		277,406
Net realized loss		(2,694,685	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(441,462	)
Investments in affiliated issuers		(196,479	)
Swap agreements		(1,646,470	)
Futures contracts		(2,846,085	)
Net change in unrealized appreciation (depreciation)		(5,130,496	)
Net realized and unrealized loss		(7,825,181	)
Net decrease in net assets resulting from operations	$	(9,007,219	)

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

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

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,182,038	)	$	(1,594,178	)
Net realized loss on investments		(2,694,685	)		(416,193	)
Net change in unrealized appreciation (depreciation) on investments		(5,130,496	)		4,983,734
Net increase (decrease) in net assets resulting from operations		(9,007,219	)		2,973,363
Capital share transactions:
Proceeds from sale of shares
A-Class		117,436,700			111,821,153
C-Class		2,165,644			6,349,542
H-Class		495,425,366			1,444,459,495
Cost of shares redeemed
A-Class		(120,960,225	)		(114,269,767	)
C-Class		(4,126,522	)		(7,975,098	)
H-Class		(1,088,377,941	)		(913,063,243	)
Net increase (decrease) from capital share transactions		(598,436,978	)		527,322,082
Net increase (decrease) in net assets		(607,444,197	)		530,295,445
Net assets:
Beginning of period		635,209,819			104,914,374
End of period	$	27,765,622		$	635,209,819
Undistributed net investment income at end of period	$	3,848,979		$	5,031,017
Capital share activity:
Shares sold
A-Class		4,941,457			4,778,273
C-Class		99,016			295,743
H-Class		20,866,359			61,500,842
Shares redeemed
A-Class		(5,133,677	)		(4,899,564	)
C-Class		(189,822	)		(370,259	)
H-Class		(45,970,121	)		(39,302,340	)
Net increase (decrease) in shares		(25,386,788	)		22,002,695

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	23.84		$	22.89		$	25.16		$	22.93		$	21.98		$	20.42
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.15	)		(.30	)		(.22	)		(.27	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		(.69	)		1.10			2.13			3.13			1.77			3.37
Total from investment operations		(.76	)		.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	$	23.08		$	23.84		$	22.89		$	25.16		$	22.93		$	21.98
Total Returnc		(3.19	%)		4.06	%		7.53	%		12.86	%		6.94	%		15.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,365		$	10,123		$	12,499		$	10,777		$	11,890		$	14,561
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.63	%)		(1.21	%)		(0.92	%)		(1.21	%)		(1.40	%)
Total expensesd		1.48	%		1.50	%		1.53	%		1.50	%		1.49	%		1.54	%
Portfolio turnover rate		191	%		393	%		205	%		95	%		583	%		—

C-Class	Period Ended September 30, 2015a			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	$	22.01		$	21.29		$	23.83		$	21.92		$	21.19		$	19.87
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.27	)		(.44	)		(.37	)		(.45	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		(.72	)		.99			2.00			2.96			1.73			3.28
Total from investment operations		(.83	)		.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	$	21.18		$	22.01		$	21.29		$	23.83		$	21.92		$	21.19
Total Returnc		(3.77	%)		3.33	%		6.74	%		11.98	%		6.16	%		14.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,573		$	3,632		$	5,100		$	6,958		$	7,343		$	6,129
Ratios to average net assets:
Net investment income (loss)		(1.00	%)		(1.25	%)		(1.89	%)		(1.62	%)		(2.10	%)		(2.13	%)
Total expensesd		2.23	%		2.25	%		2.28	%		2.27	%		2.25	%		2.28	%
Portfolio turnover rate		191	%		393	%		205	%		95	%		583	%		—

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	23.90		$	22.94		$	25.12		$	22.90		$	21.95		$	20.38
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.19	)		(.24	)		(.24	)		(.28	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		(.70	)		1.15			2.16			3.14			1.78			3.38
Total from investment operations		(.80	)		.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	$	23.10		$	23.90		$	22.94		$	25.12		$	22.90		$	21.95
Total Returnc		(3.35	%)		4.14	%		7.86	%		12.83	%		6.95	%		15.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,828		$	621,455		$	87,315		$	434,113		$	266,950		$	116,106
Ratios to average net assets:
Net investment income (loss)		(0.82	%)		(0.81	%)		(0.97	%)		(0.99	%)		(1.26	%)		(1.38	%)
Total expensesd		1.47	%		1.46	%		1.53	%		1.51	%		1.49	%		1.53	%
Portfolio turnover rate		191	%		393	%		205	%		95	%		583	%		—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 157

FUND PROFILE (Unaudited) September 30, 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.

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	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	34.7%
Guggenheim Strategy Fund II	19.1%
Total	53.8%

“Largest Holdings” exclude any temporary cash or derivative investments.

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 53.8%
Guggenheim Strategy Fund I1		501,642	$	12,480,857
Guggenheim Strategy Fund II1		276,927		6,881,645
Total Mutual Funds
(Cost $19,376,966)				19,362,502

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 1.4%
Federal Home Loan Bank2
0.10% due 10/23/15	$	500,000	499,969
Total Federal Agency Discount Notes
(Cost $499,969)			499,969
REPURCHASE AGREEMENTS††,3 - 47.5%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		9,808,380	9,808,380
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15	��	3,754,325	3,754,325

UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15	3,523,382		3,523,382
Total Repurchase Agreements
(Cost $17,086,087)			17,086,087
Total Investments - 102.7%
(Cost $36,963,022)		$	36,948,558
Other Assets & Liabilities, net - (2.7)%			(975,332	)
Total Net Assets - 100.0%		$	35,973,226

	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $29,891,750)		248	$	(92,617	)

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION PURCHASED††
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Paid	Unrealized Depreciation
CDX.NA.HY.25 Index	Goldman Sachs International	5.00%	12/20/20	$ 27,500,000	$ 27,482,452	$ 56,236	$ (38,688)
CDX.NA.HY.25 Index	Barclays Bank plc	5.00%	12/20/20	8,550,000	8,544,544	17,484	(12,028)

†	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 9.
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.
	See Sector Classification in Other Information section.

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $499,969)	$	499,969
Investments in affiliated issuers, at value (cost $19,376,966)		19,362,502
Repurchase agreements, at value (cost $17,086,087)		17,086,087
Total investments (cost $36,963,022)		36,948,558
Segregated cash with broker		1,631,867
Unamortized upfront premiums paid on credit default swaps		73,720
Receivables:
Fund shares sold		81,102
Dividends		17,674
Variation margin		3,869
Securities sold		10
Total assets		38,756,800
Liabilities:
Unrealized depreciation on swap agreements		50,716
Payable for:
Fund shares redeemed		2,596,137
Protection fees on credit default swaps		50,049
Management fees		29,937
Securities purchased		17,274
Distribution and service fees		10,711
Transfer agent and administrative fees		9,979
Portfolio accounting fees		3,992
Miscellaneous		14,779
Total liabilities		2,783,574
Commitments and contingent liabilities (Note 12)		—
Net assets	$	35,973,226
Net assets consist of:
Paid in capital	$	52,830,558
Accumulated net investment loss		(220,416	)
Accumulated net realized loss on investments		(16,479,119	)
Net unrealized depreciation on investments		(157,797	)
Net assets	$	35,973,226
A-Class:
Net assets	$	2,920,900
Capital shares outstanding		151,095
Net asset value per share	$	19.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	20.29
C-Class:
Net assets	$	1,218,650
Capital shares outstanding		66,494
Net asset value per share	$	18.33
H-Class:
Net assets	$	31,833,676
Capital shares outstanding		1,624,916
Net asset value per share	$	19.59

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	47,004
Interest		3,391
Total investment income		50,395
Expenses:
Management fees		93,960
Transfer agent and administrative fees		31,320
Distribution and service fees:
A-Class		12,962
C-Class		5,476
H-Class		16,989
Portfolio accounting fees		12,528
Custodian fees		1,452
Trustees’ fees*		491
Miscellaneous		14,527
Total expenses		189,705
Net investment loss		(139,310	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(35	)
Investments in affiliated issuers		(12,837	)
Swap agreements		1,007,057
Futures contracts		(561,396	)
Net realized gain		432,789
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,037	)
Investments in affiliated issuers		(14,464	)
Swap agreements		(41,044	)
Futures contracts		(74,698	)
Net change in unrealized appreciation (depreciation)		(132,243	)
Net realized and unrealized gain		300,546
Net increase in net assets resulting from operations	$	161,236

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

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(139,310	)	$	(170,580	)
Net realized gain (loss) on investments		432,789			(2,039,229	)
Net change in unrealized appreciation (depreciation) on investments		(132,243	)		(27,512	)
Net increase (decrease) in net assets resulting from operations		161,236			(2,237,321	)
Capital share transactions:
Proceeds from sale of shares
A-Class		139,654,492			159,702,077
C-Class		1,667,234			1,688,742
H-Class		196,025,132			127,515,789
Cost of shares redeemed
A-Class		(136,648,630	)		(163,681,021	)
C-Class		(1,189,467	)		(2,426,887	)
H-Class		(166,926,181	)		(126,501,026	)
Net increase (decrease) from capital share transactions		32,582,580			(3,702,326	)
Net increase (decrease) in net assets		32,743,816			(5,939,647	)
Net assets:
Beginning of period		3,229,410			9,169,057
End of period	$	35,973,226		$	3,229,410
Accumulated net investment loss at end of period	$	(220,416	)	$	(81,106	)
Capital share activity:
Shares sold
A-Class		7,243,656			7,767,769
C-Class		91,541			86,161
H-Class		10,064,384			6,204,216
Shares redeemed
A-Class		(7,111,879	)		(7,990,799	)
C-Class		(65,137	)		(123,220	)
H-Class		(8,548,513	)		(6,209,959	)
Net increase (decrease) in shares		1,674,052			(265,832	)

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	19.23		$	21.27		$	23.98		$	28.15		$	31.99		$	38.51
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.21	)		(.35	)		(.37	)		(.43	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		.21			(1.83	)		(2.36	)		(3.80	)		(3.41	)		(6.05	)
Total from investment operations		.10			(2.04	)		(2.71	)		(4.17	)		(3.84	)		(6.52	)
Net asset value, end of period	$	19.33		$	19.23		$	21.27		$	23.98		$	28.15		$	31.99
Total Returnc		0.52	%		(9.59	%)		(11.30	%)		(14.81	%)		(11.98	%)		(16.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,921		$	372		$	5,155		$	157		$	556		$	1,512
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(1.02	%)		(1.52	%)		(1.38	%)		(1.39	%)		(1.39	%)
Total expensesd		1.48	%		1.52	%		1.54	%		1.49	%		1.51	%		1.53	%
Portfolio turnover rate		240	%		784	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			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	$	18.31		$	20.23		$	22.98		$	27.21		$	31.12		$	37.77
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.30	)		(.50	)		(.53	)		(.55	)		(.72	)
Net gain (loss) on investments (realized and unrealized)		.18			(1.62	)		(2.25	)		(3.70	)		(3.36	)		(5.93	)
Total from investment operations		.02			(1.92	)		(2.75	)		(4.23	)		(3.91	)		(6.65	)
Net asset value, end of period	$	18.33		$	18.31		$	20.23		$	22.98		$	27.21		$	31.12
Total Returnc		0.11	%		(9.49	%)		(11.97	%)		(15.51	%)		(12.60	%)		(17.61	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,219		$	734		$	1,561		$	2,037		$	693		$	2,535
Ratios to average net assets:
Net investment income (loss)		(1.79	%)		(1.53	%)		(2.28	%)		(2.13	%)		(1.87	%)		(2.13	%)
Total expensesd		2.23	%		2.25	%		2.30	%		2.25	%		2.26	%		2.28	%
Portfolio turnover rate		240	%		784	%		—			—			—			—

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	19.48		$	21.37		$	24.04		$	28.22		$	32.04		$	38.60
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.19	)		(.35	)		(.36	)		(.47	)		(.50	)
Net gain (loss) on investments (realized and unrealized)		.21			(1.70	)		(2.32	)		(3.82	)		(3.35	)		(6.06	)
Total from investment operations		.11			(1.89	)		(2.67	)		(4.18	)		(3.82	)		(6.56	)
Net asset value, end of period	$	19.59		$	19.48		$	21.37		$	24.04		$	28.22		$	32.04
Total Returnc		0.56	%		(8.84	%)		(11.11	%)		(14.81	%)		(11.92	%)		(16.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,834		$	2,124		$	2,453		$	9,208		$	13,357		$	9,699
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(0.93	%)		(1.50	%)		(1.38	%)		(1.51	%)		(1.38	%)
Total expensesd		1.48	%		1.51	%		1.52	%		1.50	%		1.51	%		1.53	%
Portfolio turnover rate		240	%		784	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2015

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

Holdings Diversification (Market Exposure as % of Net Assets)

FADN — Federal Agency Discount 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.

164 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 42.0%
Federal Home Loan Bank1
0.03% due 10/05/15	$	190,000,000	$	189,999,367
0.21% due 12/09/15		75,000,000		74,974,523
0.15% due 12/09/15		70,000,000		69,976,222
0.23% due 12/11/15		50,000,000		49,979,956
0.26% due 12/16/15		50,000,000		49,974,977
0.17% due 12/15/15		40,000,000		39,984,000
0.16% due 12/23/15		20,000,000		19,992,622
0.18% due 12/11/15		20,000,000		19,991,982
0.17% due 12/16/15		16,610,000		16,601,687
0.28% due 12/15/15		10,000,000		9,996,000
0.13% due 12/11/15		7,100,000		7,097,154
0.12% due 12/09/15		5,000,000		4,998,302
0.23% due 12/09/15		4,100,000		4,098,607
0.13% due 12/08/15		3,800,000		3,799,067
0.14% due 10/16/15		600,000		599,965
Total Federal Home Loan Bank				562,064,431
Farmer Mac1
0.16% due 01/25/16		10,000,000		9,994,844
Freddie Mac2
0.18% due 12/15/15		3,140,000		3,138,822
0.17% due 01/20/16		3,000,000		2,998,428
Total Freddie Mac				6,137,250
Total Federal Agency Discount Notes
(Cost $578,196,525)				578,196,525
FEDERAL AGENCY NOTES†† - 3.2%
Federal Farm Credit Bank1
0.13% due 07/08/16		23,000,000		23,000,000
0.28% due 07/20/16		21,000,000		21,013,663
Total Federal Farm Credit Bank				44,013,663
Total Federal Agency Notes
(Cost $44,013,663)				44,013,663
CORPORATE BONDS†† - 1.3%
Financial Institutions - 1.3%
Wells Fargo Bank North America
0.66% due 03/15/163		9,421,000		9,421,866
National Australia Bank Ltd.
0.84% due 07/25/163		4,830,000		4,846,906
Canadian Imperial Bank of Commerce
0.80% due 07/18/163		1,820,000		1,825,634
PNC Bank North America
0.60% due 01/28/163		1,210,000		1,210,673
Total Financial Institutions				17,305,079
Total Corporate Bonds
(Cost $17,305,079)				17,305,079
COMMERCIAL PAPER†† - 18.3%
DCAT LLC
0.33% due 10/19/15		15,000,000		14,997,525
0.35% due 10/13/15		2,800,000		2,799,664
Total DCAT LLC				17,797,189
Nordea Bank AB
0.39% due 01/08/16		15,000,000		14,983,912
0.30% due 10/22/15		150,000		149,974
Total Nordea Bank AB				15,133,886
Ricoh Finance Corp.
0.18% due 10/06/15		15,000,000		14,999,625
Hannover Funding Co. LLC
0.40% due 11/20/15		15,000,000		14,991,667
Intercontinental Exchange, Inc.
0.30% due 12/08/15		15,000,000		14,991,500
Skandinaviska Enskilda Banken AB
0.38% due 01/05/16		15,000,000		14,984,800
Bank of Tokyo-Mitsubishi UFJ Ltd.
0.39% due 01/05/16		15,000,000		14,984,400
Standard Chartered Bank
0.40% due 01/07/16		15,000,000		14,983,666
Prudential plc
0.49% due 03/16/16		15,000,000		14,965,904
ABN Amro Funding USA LLC
0.51% due 03/18/16		15,000,000		14,964,088
ING U.S. Funding LLC
0.52% due 03/17/16		15,000,000		14,963,600
Landesbank Baden-Wuerttemberg
0.53% due 03/30/16		15,000,000		14,960,029
Societe Generale SA
0.64% due 04/25/16		8,000,000		7,970,560
0.52% due 03/21/16		7,000,000		6,982,609
Total Societe Generale SA				14,953,169
Coca-Cola Company
0.67% due 07/11/16		15,000,000		14,920,717
Banco Santander Chile
0.20% due 10/01/15		14,000,000		14,000,000
UBS Finance Delaware LLC
0.41% due 12/31/15		12,000,000		11,987,563
Robobank
0.28% due 11/23/15		10,000,000		9,995,878
Electricite de France SA
0.31% due 01/08/16		3,750,000		3,746,803
Reckitt Benckiser Treasury Services plc
0.30% due 11/12/15		250,000		249,913
Total Commercial Paper
(Cost $252,574,397)				252,574,397

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
REPURCHASE AGREEMENTS†† - 37.5%
Individual Repurchase Agreement
HSBC Group Issued 09/30/15 at 0.04% due 10/01/15 (secured by U.S. Treasury Strips, 0.00% 2/15/40 – 05/15/40 with a value of $144,865,740) to be repurchased at $142,025,402	$	142,025,245	$	142,025,245
Joint Repurchase Agreements4
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		214,999,611		214,999,611
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		82,294,778		82,294,778
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		77,232,507		77,232,507
Total Repurchase Agreements
(Cost $516,552,141)				516,552,141
Total Investments - 102.3%
(Cost $1,408,641,805)			$	1,408,641,805
Other Assets & Liabilities, net - (2.3)%				(31,952,403	)
Total Net Assets - 100.0%			$	1,376,689,402

††	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	Variable rate security. Rate indicated is rate effective at September 30, 2015.
4	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES

September 30, 2015

Assets:
Investments, at value (cost $892,089,664)	$	892,089,664
Repurchase agreements, at value (cost $516,552,141)		516,552,141
Total investments (cost $1,408,641,805)		1,408,641,805
Receivables:
Fund shares sold		37,487,309
Interest		36,783
Total assets		1,446,165,897
Liabilities:
Overdraft due to custodian bank		2,644
Payable for:
Fund shares redeemed		54,271,081
Securities purchased		14,920,717
Portfolio accounting fees		5,748
Miscellaneous		276,305
Total liabilities		69,476,495
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,376,689,402
Net assets consist of:
Paid in capital	$	1,376,565,844
Undistributed net investment income		—
Accumulated net realized gain on investments		123,558
Net unrealized appreciation on investments		—
Net assets	$	1,376,689,402
Capital shares outstanding		1,377,142,099
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS

Period Ended September 30, 2015

Investment Income:
Interest	$	610,198
Total investment income		610,198
Expenses:
Management fees		2,365,936
Transfer agent and administrative fees		946,385
Portfolio accounting fees		309,986
Registration fees		290,472
Custodian fees		54,534
Trustees’ fees*		27,045
Line of credit fees		295
Miscellaneous		255,652
Total expenses		4,250,305
Less:
Expenses waived by service company		(1,230,169	)
Expenses waived by Adviser		(2,410,111	)
Total waived expenses		(3,640,280	)
Net expenses		610,025
Net investment income		173
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		141,348
Net realized gain		141,348
Net increase in net assets resulting from operations	$	141,521

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	173		$	300
Net realized gain (loss) on investments		141,348			(17,790	)
Net increase (decrease) in net assets resulting from operations		141,521			(17,490	)
Distributions to shareholders from:
Net investment income		(173	)		(526	)
Net realized gains		—			(21,943	)
Total distributions to shareholders		(173	)		(22,469	)
Capital share transactions:
Proceeds from sale of shares		6,085,347,971			10,417,562,989
Distributions reinvested		123			22,085
Cost of shares redeemed		(5,403,348,775	)		(10,503,131,193	)
Net increase (decrease) from capital share transactions		681,999,319			(85,546,119	)
Net increase (decrease) in net assets		682,140,667			(85,586,078	)
Net assets:
Beginning of period		694,548,735			780,134,813
End of period	$	1,376,689,402		$	694,548,735
Undistributed net investment income at end of period	$	—		$	—
Capital share activity:
Shares sold		6,085,347,970			10,417,562,989
Shares issued from reinvestment of distributions		136			22,293
Shares redeemed		(5,403,348,774	)		(10,503,131,193	)
Net increase (decrease) in shares		681,999,332			(85,545,911	)

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

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGHLIGHTS

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

Money Market Classa	Period Ended September 30, 2015b			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		$	1.00
Income (loss) from investment operations:
Net investment income (loss)		—	c		—	c		—	c		—	c		—	c		—	c
Net gain (loss) on investments (realized and unrealized)		—	c		—	c		—	c		—	c		—	c		—	c
Total from investment operations		—	c		—	c		—	c		—	c		—	c		—	c
Less distributions from:
Net investment income		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net realized gains		(—	)c		(—	)c		(—	)c		—			(—	)c		(—	)c
Total distributions		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,376,689		$	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		0.00	%d		0.01	%
Total expenses		0.90	%		0.92	%		0.93	%		0.95	%		0.91	%		0.94	%
Net expensese		0.13	%		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	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Less than $0.01 per share.
d	Less than 0.01%.
e	Net expense information reflects the expense ratios after expense waivers.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an 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, P-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. At September 30, 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”), each a non-diversified investment company, with the exception of U.S. Government Money Market Fund which is a diversified investment company. 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 September 30, 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

170 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 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.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, provided such amounts approximate 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.

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, provided such amounts approximate 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)

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

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

Reported net realized foreign exchange gains and 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.

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G. 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.

H. 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.

I. 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.

J. 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.

K. 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 its 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. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Short Sales

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.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a 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 Funds may utilize derivatives for the following purposes:

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Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For those Funds whose investment strategy consistently involves applying leverage, the value of the Funds’ shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. 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.

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 average notional amount of derivative instruments outstanding (excluding any non-derivative positions) on a quarterly basis:

	Average Notional
Fund	Long		Short
Nova Fund	$	103,186,802	$	—
S&P 500® Fund		51,530,471		—
Inverse S&P 500® Strategy Fund		—		107,363,359
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		164,725,523		—
Inverse NASDAQ-100® Strategy Fund		—		21,304,352
Mid-Cap 1.5x Strategy Fund		22,633,435		—
Inverse Mid-Cap Strategy Fund		—		4,067,236
Russell 2000® 1.5x Strategy Fund		19,429,215		—
Russell 2000® Fund		21,631,140		—
Inverse Russell 2000® Strategy Fund		1,863,447		7,174,602
Government Long Bond 1.2x Strategy Fund		79,559,461		—
Inverse Government Long Bond Strategy Fund		—		103,326,219
High Yield Strategy Fund*		195,393,233		—
Inverse High Yield Strategy Fund*		—		26,965,366

* These Funds utilize a combination of currency and/or financial-linked derivatives to obtain exposure to their benchmarks. The gross derivative average notional is $358,579,858 and $49,247,280 for the High Yield Strategy Fund and Inverse High Yield Strategy Fund, respectively.

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Swaps

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 or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. 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.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A Fund utilizing a total return index swap 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 if the underlying index declines in value.

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. 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. 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 153 included in the Schedule of Investments summarizes the information with regard to sold protection on credit default swap contracts as of September 30, 2015.

Futures

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 a 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.

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Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 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 September 30, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2015
Nova Fund	$	—	$	817,396	$	—	$	—	$	817,396
S&P 500® Fund		—		201,369		—		—		201,369
Inverse S&P 500® Strategy Fund		121,484		5,693		—		—		127,177
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		40,547		—		—		40,547
Inverse NASDAQ-100® Strategy Fund		—		19,011		—		—		19,011
Mid-Cap 1.5x Strategy Fund		—		70,538		—		—		70,538
Inverse Mid-Cap Strategy Fund		—		2,035		—		—		2,035
Russell 2000® 1.5x Strategy Fund		—		24,435		—		—		24,435
Russell 2000® Fund		—		16,942		—		—		16,942
Inverse Russell 2000® Strategy Fund		128,655		21,543		—		—		150,198
Government Long Bond 1.2x Strategy Fund		—		—		1,212,635		—		1,212,635
High Yield Strategy Fund		—		—		67,119		7,890		75,009

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2015
Nova Fund	$	130,126	$	15,216	$	—	$	—	$	145,342
S&P 500® Fund		472,355		4,146		—		—		476,501
Inverse S&P 500® Strategy Fund		—		3,716,055		—		—		3,716,055
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		6,658		—		—		—		6,658
Inverse NASDAQ-100® Strategy Fund		17,520		350,498		—		—		368,018
Mid-Cap 1.5x Strategy Fund		7,450		80,596		—		—		88,046
Inverse Mid-Cap Strategy Fund		—		80,129		—		—		80,129
Russell 2000® 1.5x Strategy Fund		—		93,920		—		—		93,920
Russell 2000® Fund		105,415		2,977		—		—		108,392
Inverse Russell 2000® Strategy Fund		—		223,323		—		—		223,323
Inverse Government Long Bond Strategy Fund		—		—		658,619		—		658,619
Inverse High Yield Strategy Fund		—		—		92,617		50,716		143,333

* 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.

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The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 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

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 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	$	(968,450	)	$	(4,950,713	)	$	—		$	—		$	(5,919,163	)
S&P 500® Fund		(175,185	)		(4,547,529	)		—			—			(4,722,714	)
Inverse S&P 500® Strategy Fund		72,531			9,320,407			—			—			9,392,938
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(11,194,512	)		(30,220,476	)		—			—			(41,414,988	)
Inverse NASDAQ-100® Strategy Fund		59,287			(2,804,495	)		—			—			(2,745,208	)
Mid-Cap 1.5x Strategy Fund		(304,579	)		(1,394,192	)		—			—			(1,698,771	)
Inverse Mid-Cap Strategy Fund		162,545			487,208			—			—			649,753
Russell 2000® 1.5x Strategy Fund		(232,482	)		(1,491,390	)		—			—			(1,723,872	)
Russell 2000® Fund		45,052			(2,060,690	)		—			—			(2,015,638	)
Inverse Russell 2000® Strategy Fund		448,667			1,324,703			—			—			1,773,370
Government Long Bond 1.2x Strategy Fund		—			—			603,340			—			603,340
Inverse Government Long Bond Strategy Fund		—			—			5,775,355			—			5,775,355
High Yield Strategy Fund		—			—			277,406			(2,526,736	)		(2,249,330	)
Inverse High Yield Strategy Fund		—			—			(561,396	)		1,007,057			445,661

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	$	(181,307	)	$	514,723		$	—		$	—		$	333,416
S&P 500® Fund		(513,929	)		211,723			—			—			(302,206	)
Inverse S&P 500® Strategy Fund		(2,060	)		(3,269,813	)		—			—			(3,271,873	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(399,320	)		(113,255	)		—			—			(512,575	)
Inverse NASDAQ-100® Strategy Fund		(22,010	)		(304,095	)		—			—			(326,105	)
Mid-Cap 1.5x Strategy Fund		(7,968	)		(285,871	)		—			—			(293,839	)
Inverse Mid-Cap Strategy Fund		—			(33,562	)		—			—			(33,562	)
Russell 2000® 1.5x Strategy Fund		(14,055	)		(239,517	)		—			—			(253,572	)
Russell 2000® Fund		(451,180	)		(32,291	)		—			—			(483,471	)
Inverse Russell 2000® Strategy Fund		122,895			(128,950	)		—			—			(6,055	)
Government Long Bond 1.2x Strategy Fund		—			—			(1,221,318	)		—			(1,221,318	)
Inverse Government Long Bond Strategy Fund		—			—			323,117			—			323,117
High Yield Strategy Fund		—			—			(2,846,085	)		(1,646,470	)		(4,492,555	)
Inverse High Yield Strategy Fund		—			—			(74,698	)		(41,044	)		(115,742	)

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 repurchase agreements allocated to the Funds.

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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.

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%

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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)
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 providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs. Effective July 10, 2015, Advisor Class shares ceased charging the shareholder services fee.

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 period ended September 30, 2015, GFD retained sales charges of $203,762 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.

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

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

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

The following table summarizes the inputs used to value the Funds’ investments at September 30, 2015. See the Schedule of Investments for more details on the classification of securities.

	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	$	60,235,003	$	—	$	14,576,980	$	817,396	$	—	$	75,629,379
S&P 500® Fund		88,709,520		—		36,489,555		201,369		—		125,400,444
Inverse S&P 500® Strategy Fund		66,121,966		121,484		99,178,208		5,693		—		165,427,351
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		1,441,724		—		121,374		40,547		—		1,603,645
Inverse NASDAQ-100® Strategy Fund		5,938,502		—		12,954,624		19,011		—		18,912,137
Mid-Cap 1.5x Strategy Fund		15,020,276		—		1,234,102		70,538		—		16,324,916
Inverse Mid-Cap Strategy Fund		1,710,892		—		4,404,333		2,035		—		6,117,260
Russell 2000® 1.5x Strategy Fund		6,801,660		—		1,583,605		24,435		—		8,409,700
Russell 2000® Fund		13,497,278		—		3,426,431		16,942		—		16,940,651
Inverse Russell 2000® Strategy Fund		8,703,732		128,655		16,700,948		21,543		—		25,554,878
Government Long Bond 1.2x Strategy Fund		9,049,255		1,212,635		112,630,415		—		—		122,892,305
Inverse Government Long Bond Strategy Fund		68,202,413		—		298,314,225		—		—		366,516,638
High Yield Strategy Fund		14,440,866		67,119		2,926,963		7,890		—		17,442,838
Inverse High Yield Strategy Fund		19,362,502		—		17,586,056		—		—		36,948,558
U.S. Government Money Market Fund		—		—		1,408,641,805		—		—		1,408,641,805
Liabilities
Nova Fund	$	—	$	130,126	$	—	$	15,216	$	—	$	145,342
S&P 500® Fund		—		472,355		—		4,146		—		476,501
Inverse S&P 500® Strategy Fund		—		—		—		3,716,055		—		3,716,055
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		6,658		—		—		—		6,658
Inverse NASDAQ-100® Strategy Fund		—		17,520		—		350,498		—		368,018
Mid-Cap 1.5x Strategy Fund		—		7,450		—		80,596		—		88,046
Inverse Mid-Cap Strategy Fund		—		—		—		80,129		—		80,129
Russell 2000® 1.5x Strategy Fund		—		—		—		93,920		—		93,920
Russell 2000® Fund		—		105,415		—		2,977		—		108,392
Inverse Russell 2000® Strategy Fund		—		—		—		223,323		—		223,323
Inverse Government Long Bond Strategy Fund		—		658,619		153,223,937		—		—		153,882,556
Inverse High Yield Strategy Fund		—		92,617		—		50,716		—		143,333

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 2015, there were no transfers between levels.

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

5. Repurchase Agreements

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

At September 30, 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
0.04%					0.00%
Due 10/01/15	$	415,000,000	$	415,000,461	05/15/40	$	877,378,500	$	423,300,031
Royal Bank of Canada Capital Markets					U.S. Treasury Note
0.03%					1.75%
Due 10/01/15		158,848,348		158,848,480	05/15/23		161,563,300		162,025,380
UMB Financial Corp.					U.S. Treasury Notes
0.04%					1.00% - 3.25%
Due 10/01/15		149,076,968		149,077,134	09/30/16 - 12/31/16		147,857,500		152,058,562

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. 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

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separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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.

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	$	817,396	$	—	$	817,396	$	—	$	—	$	817,396
S&P 500® Fund	Swap equity contracts		201,369		—		201,369		—		—		201,369
Inverse S&P 500® Strategy Fund	Swap equity contracts		5,693		—		5,693		—		—		5,693
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		40,547		—		40,547		—		—		40,547
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		19,011		—		19,011		—		—		19,011
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		70,538		—		70,538		—		—		70,538
Inverse Mid-Cap Strategy Fund	Swap equity contracts		2,035		—		2,035		—		—		2,035
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		24,435		—		24,435		—		—		24,435
Russell 2000® Fund	Swap equity contracts		16,942		—		16,942		—		—		16,942
Inverse Russell 2000® Strategy Fund	Swap equity contracts		21,543		—		21,543		—		—		21,543

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
Nova Fund	Swap equity contracts	$	15,216	$	—	$	15,216	$	—	$	15,216	$	—
S&P 500® Fund	Swap equity contracts		4,146		—		4,146		—		4,146		—
Inverse S&P 500® Strategy Fund	Swap equity contracts		3,716,055		—		3,716,055		—		3,716,055		—
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		350,498		—		350,498		—		350,498		—
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		80,596		—		80,596		—		80,596		—
Inverse Mid-Cap Strategy Fund	Swap equity contracts		80,129		—		80,129		—		80,129		—
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		93,920		—		93,920		—		93,920		—
Russell 2000® Fund	Swap equity contracts		2,977		—		2,977		—		2,977		—
Inverse Russell 2000® Strategy Fund	Swap equity contracts		223,323		—		223,323		—		223,323		—

¹ Exchange-traded futures and centrally cleared swaps are excluded from these reported amounts.

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7. 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.

At September 30, 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	$	56,639,501	$	18,507,155	$	(334,673	)	$	18,172,482
S&P 500® Fund		95,229,210		30,916,666		(946,801	)		29,969,865
Inverse S&P 500® Strategy Fund		165,309,668		29,098		(38,595	)		(9,497	)
Monthly Rebalance NASDAQ-100® 2x Strategy		1,694,540		—		(131,442	)		(131,442	)
Inverse NASDAQ-100® Strategy Fund		18,897,164		85		(4,123	)		(4,038	)
Mid-Cap 1.5x Strategy Fund		14,095,111		3,085,722		(926,454	)		2,159,268
Inverse Mid-Cap Strategy Fund		6,118,161		40		(2,976	)		(2,936	)
Russell 2000® 1.5x Strategy Fund		7,939,020		785,957		(339,712	)		446,245
Russell 2000® Fund		19,508,797		—		(2,585,088	)		(2,585,088	)
Inverse Russell 2000® Strategy Fund		25,408,586		211		(4,117	)		(3,906	)
Government Long Bond 1.2x Strategy Fund		122,672,999		—		(993,329	)		(993,329	)
Inverse Government Long Bond Strategy Fund		368,134,771		—		(919,383	)		(919,383	)
High Yield Strategy Fund		18,336,021		—		(968,192	)		(968,192	)
Inverse High Yield Strategy Fund		36,963,022		295		(14,759	)		(14,464	)
U.S. Government Money Market Fund		1,408,641,805		1,833		(1,833	)		—

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8. Securities Transactions

For the period ended September 30, 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	$	156,091,381	$	228,851,434
S&P 500® Fund		109,770,133		271,368,273
Inverse S&P 500® Strategy Fund		56,622,376		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		317,020,966		587,321,686
Inverse NASDAQ-100® Strategy Fund		19,022,493		13,000,000
Mid-Cap 1.5x Strategy Fund		11,387,160		9,935,978
Inverse Mid-Cap Strategy Fund		1,004,206		—
Russell 2000® 1.5x Strategy Fund		43,211,761		50,771,581
Russell 2000® Fund		58,188,905		42,373,140
Inverse Russell 2000® Strategy Fund		9,464,598		900,000
Government Long Bond 1.2x Strategy Fund		152,345,557		153,450,000
Inverse Government Long Bond Strategy Fund		104,497,639		77,500,000
High Yield Strategy Fund		164,436,326		272,742,666
Inverse High Yield Strategy Fund		37,946,603		20,000,000
U.S. Government Money Market Fund		—		30,002,500

For the period ended September 30, 2015, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases			Sales
Government Long Bond 1.2x Strategy Fund	$	1,153,806,828		$	1,171,258,841
Inverse Government Long Bond Strategy Fund		(968,421,563	)		(928,428,727	)

9. Affiliated 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, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance 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 available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180414001107/gug60774-ncsr.htm.

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Transactions during the period ended September 30, 2015 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/15		Additions		Reductions			Value 09/30/15		Shares 09/30/15		Investment Income		Realized Gain (Loss)
Nova Fund
Guggenheim Strategy Fund I	$	—	$	59,850,111	$	(58,600,000	)	$	11,255,002		452,371	$	50,197	$	9,571
Inverse S&P 500® Strategy Fund
Guggenheim Strategy Fund I	$	—	$	44,623,793	$	—		$	66,121,966		2,657,635	$	124,228	$	—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
Guggenheim Strategy Fund I	$	—	$	86,153,335	$	(121,900,000	)	$	419,224		16,850	$	153,350	$	67,544
Inverse NASDAQ-100® Strategy Fund
Guggenheim Strategy Fund I	$	—	$	17,022,493	$	(13,000,000	)	$	5,938,502		238,686	$	22,628	$	(5,067	)
Mid-Cap 1.5x Strategy Fund
Guggenheim Strategy Fund I	$	—	$	2,614,877	$	(4,300,000	)	$	1,223,212		49,164	$	14,877	$	1,029
Inverse Mid-Cap Strategy Fund
Guggenheim Strategy Fund I	$	—	$	1,004,206	$	—		$	1,710,892		68,766	$	4,206	$	—
Russell 2000® 1.5x Strategy Fund
Guggenheim Strategy Fund I	$	—	$	11,610,528	$	(12,700,000	)	$	291,898		11,732	$	10,528	$	2,146
Inverse Russell 2000® Strategy Fund
Guggenheim Strategy Fund I	$	—	$	7,465,002	$	(900,000	)	$	8,703,732		349,828	$	15,002	$	(407	)
Government Long Bond 1.2x Strategy Fund
Guggenheim Strategy Fund I	$	—	$	150,345,203	$	(151,450,000	)	$	9,049,255		363,716	$	45,327	$	8,859
Inverse Government Long Bond Strategy Fund
Guggenheim Strategy Fund I	$	53,244,134	$	92,498,853	$	(77,500,000	)	$	68,202,413		2,741,255	$	248,725	$	(127,092	)
High Yield Strategy Fund
Guggenheim Strategy Fund I	$	64,315,270	$	129,485,528	$	(186,900,000	)	$	6,942,567		279,042	$	284,996	$	159,999
Guggenheim Strategy Fund II		33,783,080		29,153,981		(60,000,000	)		2,922,576		117,609		153,275		63,764
	$	98,098,350	$	158,639,509	$	(246,900,000	)	$	9,865,143			$	438,271	$	223,763
Inverse High Yield Strategy Fund
Guggenheim Strategy Fund I	$	—	$	26,519,785	$	(14,750,000	)	$	12,480,857		501,642	$	20,185	$	(6,286	)
Guggenheim Strategy Fund II		—		11,426,818		(5,250,000	)		6,881,645		276,927		26,819		(6,551	)
	$	—	$	37,946,603	$	(20,000,000	)	$	19,362,502			$	47,004	$	(12,837	)

10. 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 12, 2016. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2015. The Funds did not have any borrowings under this agreement at September 30, 2015.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The average daily balances borrowed for the period ended September 30, 2015, were as follows:

Fund	Average Daily Balance
Nova Fund	$	36,630
S&P 500® Fund		361,416
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		151,112
Inverse NASDAQ-100® Strategy Fund		1,640
Government Long Bond 1.2x Strategy Fund		32,034
Inverse Government Long Bond Strategy Fund		49,726
High Yield Strategy Fund		36,954
U.S Government Money Market Fund		46,422

11. Portfolio Securities Loaned

During the period ended September 30, 2015, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of September 30, 2015, all Funds had ceased participation in securities.

12. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one 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.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

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

Lyondell Chemical Company

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

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

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer. 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 motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. The Court has not yet issued a decision on the motion to dismiss. 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.

13. Subsequent Event

Conversion of Advisor Class Shares and Class H Shares

Effective following the close of business on September 30, 2015, all outstanding Advisor Class shares of the Nova Fund, Inverse S&P Strategy Fund, Inverse NASDAQ-100 Strategy Fund, Government Long Bond 1.2x Strategy Fund and Inverse Government Long Bond Strategy Fund will be converted into Class H shares of the Funds and the Funds will no longer offer Advisor Class shares. The conversion of all outstanding Advisor Class shares will be effected by exchanging shareholders’ Advisor Class shares for Class H shares. Advisor Class shareholders of the Funds will receive Class H shares of the Fund with a value equal to the value of their investment in Advisor Class shares of the Funds on September 30, 2015. No shareholder action is required to effect the conversion of the Funds Advisor Class shares into Class H shares.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

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

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

Sector Classification

Information in the “Schedule of Investments” is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of the Trust, including the Independent Trustees, attended an in-person meeting held on May 18, 2015, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust except for the Dow Jones Industrial Average^® Fund (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 28, 2015 (together, with the May 18 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar

188 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

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

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies, brokerage practices, and the adequacy of its compliance systems and processes. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board considered information regarding the Advisor’s profit margin as reflected in the Advisor’s profitability analysis, as well as information provided by the Advisor concerning the methodology used to allocate various expenses among the individual Funds in determining the Advisor’s profitability. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among

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OTHER INFORMATION (Unaudited)(concluded)

most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, 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, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

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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 visiting guggenheiminvestments.com or 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).	224	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 from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	133	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	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 from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 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 Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	133	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	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.

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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.

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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.

194 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information

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

We’ll Keep You Informed

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

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9.30.2015

Rydex Funds Semi-Annual Report

Domestic Equity Funds	International Equity Funds
S&P 500® Pure Growth Fund	Europe 1.25x Strategy Fund
S&P 500® Pure Value Fund	Japan 2x Strategy Fund
S&P MidCap 400® Pure Growth Fund	Specialty Funds
S&P MidCap 400® Pure Value Fund	Strengthening Dollar 2x Strategy Fund
S&P SmallCap 600® Pure Growth Fund	Weakening Dollar 2x Strategy Fund
S&P SmallCap 600® Pure Value Fund

RBENF2-SEMI-0915x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
S&P 500® PURE GROWTH FUND	9
S&P 500® PURE VALUE FUND	16
S&P MIDCAP 400® PURE GROWTH FUND	23
S&P MIDCAP 400® PURE VALUE FUND	30
S&P SMALLCAP 600® PURE GROWTH FUND	37
S&P SMALLCAP 600® PURE VALUE FUND	44
EUROPE 1.25x STRATEGY FUND	52
JAPAN 2x STRATEGY FUND	59
STRENGTHENING DOLLAR 2x STRATEGY FUND	65
WEAKENING DOLLAR 2x STRATEGY FUND	71
NOTES TO FINANCIAL STATEMENTS	77
OTHER INFORMATION	91
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	94
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	97

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2015

Dear Shareholder:

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

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

Sincerely,

Donald C. Cacciapaglia
President
October 31, 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.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2015

At the end of the period, the underlying U.S. economy continued to maintain its strong footing. A market correction that began in August persisted through the end of the period; September and October are historically difficult times for the stock market, and by extension, risk assets of any kind, including credit.

Markets had been performing solidly for most of the period. Growth mid-year bounced back from a weather-induced slowdown in the first quarter, with GDP increasing 3.9% for the second quarter. The labor and housing markets continued to strengthen, and the drop in gas prices was acting as a tax cut, which was expected to increase consumer spending power going into the holiday season. Even though labor markets are moving toward full employment, questions remain about the viability of sustained economic expansion in the U.S. In particular, there is debate about the net effect of declining energy prices and a stronger dollar. These are both positive for the U.S. consumer, but low oil prices hurt the U.S. energy industry and a strong dollar is challenging for U.S. manufacturers. In addition, oil prices and the strong dollar exert a downward pressure on inflation, and a risk of deflation is a negative for the economy.

At the same time, currency devaluation, particularly in Japan and the euro zone, is putting pressure on countries to devalue to improve export competitiveness. Those countries slow to devalue, like China, are feeling economic pressure at home, driving down asset prices, and increasing deflationary pressures, escalating the risk of financial contagion abroad. China may have to devalue the renminbi further due to continued slowing in the economy. Combined with the tepid expansion in both Europe and Japan, the pressure will be for central banks there to increase easing measures.

The U.S. Federal Reserve (the “Fed”) is hard pressed to justify a rate increase based on its self-prescribed metrics, which include rising inflation and an improved employment situation with clearly rising wages. At best, policymakers can argue that the prospects for wage growth and inflation are improving, but clear evidence is lacking.

A preemptive rate increase seems risky and opens the Fed to potential criticism given the fragility in financial markets and the prospect that rising U.S. rates could further strengthen the dollar and also potentially exacerbate foreign economic turbulence. While prices and wages remain tame, the risk of another asset bubble is increasing. The longer policy remains highly accommodative, the greater the likelihood that asset classes including commercial real estate, equities, or certain categories of bonds could become overvalued.

At period end, the risk of financial contagion remained high, which could result in central banks providing additional liquidity or delaying rate increases. Use of the monetary printing press is a handy tool to prop up asset prices and temporarily spur economic growth, which is the main reason a recession does not appear to be on the horizon for either the G-7 nations or China. It’s also worth noting that there has never been a recession in the post-war period without the Fed first raising interest rates, after which it typically takes several years for a recession to be induced.

For the six months ended September 30, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.18%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -8.66%. The return of the MSCI Emerging Markets Index* was -19.28%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a -0.47% return for the period, while the Barclays U.S. Corporate High Yield Index* returned -4.85%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.02% for the six-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 SEMI-ANNUAL REPORT | 3

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

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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar (“USD”)-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 USD-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.

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.

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2015 and ending September 30, 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 SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.49%	(7.18%)	$ 1,000.00	$ 928.20	$ 7.20
C-Class	2.24%	(7.53%)	1,000.00	924.70	10.81
H-Class	1.49%	(7.18%)	1,000.00	928.20	7.20
S&P 500® Pure Value Fund
A-Class	1.49%	(10.98%)	1,000.00	890.20	7.06
C-Class	2.24%	(11.31%)	1,000.00	886.90	10.60
H-Class	1.49%	(10.98%)	1,000.00	890.20	7.06
S&P MidCap 400® Pure Growth Fund
A-Class	1.49%	(7.07%)	1,000.00	929.30	7.21
C-Class	2.24%	(7.43%)	1,000.00	925.70	10.81
H-Class	1.49%	(7.07%)	1,000.00	929.30	7.21
S&P MidCap 400® Pure Value Fund
A-Class	1.49%	(12.35%)	1,000.00	876.50	7.01
C-Class	2.24%	(12.67%)	1,000.00	873.30	10.52
H-Class	1.48%	(12.34%)	1,000.00	876.60	6.96
S&P SmallCap 600® Pure Growth Fund
A-Class	1.49%	(9.08%)	1,000.00	909.20	7.13
C-Class	2.24%	(9.43%)	1,000.00	905.70	10.70
H-Class	1.49%	(9.08%)	1,000.00	909.20	7.13
S&P SmallCap 600® Pure Value Fund
A-Class	1.49%	(16.12%)	1,000.00	838.80	6.87
C-Class	2.24%	(16.46%)	1,000.00	835.40	10.31
H-Class	1.49%	(16.14%)	1,000.00	838.60	6.87
Europe 1.25x Strategy Fund
A-Class	1.66%	(10.42%)	1,000.00	895.80	7.89
C-Class	2.40%	(10.68%)	1,000.00	893.20	11.39
H-Class	1.65%	(10.44%)	1,000.00	895.60	7.84
Japan 2x Strategy Fund
A-Class	1.48%	(16.27%)	1,000.00	837.30	6.82
C-Class	2.23%	(16.60%)	1,000.00	834.00	10.25
H-Class	1.48%	(16.30%)	1,000.00	837.00	6.82
Strengthening Dollar 2x Strategy Fund
A-Class	1.68%	(6.42%)	1,000.00	935.80	8.15
C-Class	2.44%	(6.77%)	1,000.00	932.30	11.82
H-Class	1.68%	(6.43%)	1,000.00	935.70	8.15
Weakening Dollar 2x Strategy Fund
A-Class	1.69%	3.90%	1,000.00	1,039.00	8.64
C-Class	2.43%	3.52%	1,000.00	1,035.20	12.40
H-Class	1.68%	3.82%	1,000.00	1,038.20	8.58

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.49%	5.00%	$ 1,000.00	$ 1,017.60	$ 7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
S&P 500® Pure Value Fund
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
S&P MidCap 400® Pure Growth Fund
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
S&P MidCap 400® Pure Value Fund
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
S&P SmallCap 600® Pure Growth Fund
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
S&P SmallCap 600® Pure Value Fund
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
Europe 1.25x Strategy Fund
A-Class	1.66%	5.00%	1,000.00	1,016.75	8.39
C-Class	2.40%	5.00%	1,000.00	1,013.04	12.11
H-Class	1.65%	5.00%	1,000.00	1,016.80	8.34
Japan 2x Strategy Fund
A-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
C-Class	2.23%	5.00%	1,000.00	1,013.89	11.26
H-Class	1.48%	5.00%	1,000.00	1,017.65	7.49
Strengthening Dollar 2x Strategy Fund
A-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
C-Class	2.44%	5.00%	1,000.00	1,012.84	12.31
H-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
Weakening Dollar 2x Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
C-Class	2.43%	5.00%	1,000.00	1,012.89	12.26
H-Class	1.68%	5.00%	1,000.00	1,016.65	8.49

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2015 to September 30, 2015.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 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”).

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.	2.9%
Under Armour, Inc. — Class A	2.4%
Facebook, Inc. — Class A	2.1%
Expedia, Inc.	2.1%
Constellation Brands, Inc. — Class A	2.1%
Lennar Corp. — Class A	2.0%
Avago Technologies Ltd.	1.9%
Regeneron Pharmaceuticals, Inc.	1.8%
VeriSign, Inc.	1.8%
O’Reilly Automotive, Inc.	1.7%
Top Ten Total	20.8%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Cyclical - 25.7%
DR Horton, Inc.		160,300	$	4,706,407
Under Armour, Inc. — Class A*		41,190		3,986,368
Lennar Corp. — Class A		68,645		3,303,884
O’Reilly Automotive, Inc.*		11,061		2,765,249
Advance Auto Parts, Inc.		14,475		2,743,447
Delta Air Lines, Inc.		57,617		2,585,274
Southwest Airlines Co.		65,942		2,508,434
Signet Jewelers Ltd.		16,500		2,246,145
Chipotle Mexican Grill, Inc. — Class A*		3,010		2,167,953
CVS Health Corp.		17,731		1,710,687
Lowe’s Companies, Inc.		22,350		1,540,362
AutoZone, Inc.*		1,740		1,259,464
Harman International Industries, Inc.		12,980		1,245,950
Dollar Tree, Inc.*		17,970		1,197,880
Wyndham Worldwide Corp.		14,982		1,077,206
NIKE, Inc. — Class B		8,700		1,069,839
VF Corp.		14,070		959,715
Hanesbrands, Inc.		33,100		957,914
Home Depot, Inc.		8,050		929,695
Nordstrom, Inc.		11,600		831,836
Ross Stores, Inc.		16,550		802,179
Michael Kors Holdings Ltd.*		18,450		779,328
Leggett & Platt, Inc.		18,380		758,175
Total Consumer, Cyclical				42,133,391
Consumer, Non-cyclical - 25.3%
Constellation Brands, Inc. — Class A		26,845		3,361,262
Regeneron Pharmaceuticals, Inc.*		6,346		2,951,777
Allergan plc*		9,932		2,699,618
Monster Beverage Corp.*		18,996		2,567,119
Gilead Sciences, Inc.		24,208		2,376,984
Celgene Corp.*		21,782		2,356,159
Alexion Pharmaceuticals, Inc.*		14,402		2,252,329
AmerisourceBergen Corp. — Class A		22,370		2,124,926
Edwards Lifesciences Corp.*		14,110		2,006,018
Zoetis, Inc.		46,140		1,900,045
DaVita HealthCare Partners, Inc.*		24,870		1,798,847
Moody’s Corp.		17,003		1,669,695
Amgen, Inc.		11,900		1,646,008
Robert Half International, Inc.		26,089		1,334,713
Molson Coors Brewing Co. — Class B		15,420		1,280,168
Cintas Corp.		13,630		1,168,773
Biogen, Inc.*		3,949		1,152,358
Dr Pepper Snapple Group, Inc.		13,900		1,098,795
Intuitive Surgical, Inc.*		2,270		1,043,247
United Rentals, Inc.*		17,330		1,040,667
MasterCard, Inc. — Class A		11,096		999,972
Mylan N.V.*		23,150		932,019
AbbVie, Inc.		16,301		886,937
Keurig Green Mountain, Inc.		16,314		850,612
Total Consumer, Non-cyclical				41,499,048
Technology - 18.3%
Avago Technologies Ltd.		24,870		3,108,999
Akamai Technologies, Inc.*		39,805		2,748,933
Apple, Inc.		22,950		2,531,385
Skyworks Solutions, Inc.		26,020		2,191,144
Red Hat, Inc.*		27,489		1,975,909
Electronic Arts, Inc.*		28,674		1,942,664
Activision Blizzard, Inc.		58,300		1,800,887
Micron Technology, Inc.*		118,935		1,781,646
Cognizant Technology Solutions Corp. — Class A*		26,722		1,673,064
Seagate Technology plc		34,745		1,556,576
Western Digital Corp.		16,190		1,286,134
Fiserv, Inc.*		14,696		1,272,821
NVIDIA Corp.		39,700		978,605
Citrix Systems, Inc.*		12,408		859,626
Qorvo, Inc.*		19,050		858,203
Intel Corp.		24,820		748,075
Cerner Corp.*		12,064		723,357
Lam Research Corp.		10,950		715,364
SanDisk Corp.		12,430		675,322
QUALCOMM, Inc.		11,828		635,518
Total Technology				30,064,232
Financial - 12.2%
Equinix, Inc.		8,450		2,310,230
American Tower Corp. — Class A		21,370		1,880,133
CBRE Group, Inc. — Class A*		45,927		1,469,664
Welltower, Inc.		19,300		1,306,996
Visa, Inc. — Class A		18,684		1,301,527
Equity Residential		16,750		1,258,260
Kimco Realty Corp.		49,725		1,214,782
AvalonBay Communities, Inc.		6,571		1,148,742
Host Hotels & Resorts, Inc.		71,440		1,129,466
Essex Property Trust, Inc.		4,350		971,877
Legg Mason, Inc.		23,100		961,191
Macerich Co.		11,610		891,880
Alliance Data Systems Corp.*		3,420		885,712
Ameriprise Financial, Inc.		7,900		862,127
Boston Properties, Inc.		6,820		807,488
Ventas, Inc.		14,100		790,446
Navient Corp.		68,490		769,828
Total Financial				19,960,349
Communications - 10.6%
Facebook, Inc. — Class A*		38,012		3,417,279
Expedia, Inc.		28,989		3,411,425
VeriSign, Inc.*		40,905		2,886,257
F5 Networks, Inc.*		15,930		1,844,694
Yahoo!, Inc.*		39,095		1,130,236
Priceline Group, Inc.*		831		1,027,831

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P 500® PURE GROWTH FUND

	Shares		Value
Walt Disney Co.		9,400	$	960,680
Time Warner, Inc.		13,100		900,625
eBay, Inc.*		34,100		833,404
Google, Inc. — Class A*		784		500,482
Google, Inc. — Class C*		787		478,827
Total Communications				17,391,740
Industrial - 3.4%
Martin Marietta Materials, Inc.		9,660		1,467,837
Union Pacific Corp.		12,700		1,122,807
Thermo Fisher Scientific, Inc.		8,170		999,028
Amphenol Corp. — Class A		19,400		988,624
CH Robinson Worldwide, Inc.		14,580		988,232
Total Industrial				5,566,528
Energy - 2.3%
EOG Resources, Inc.		16,750		1,219,400
Cabot Oil & Gas Corp. — Class A		45,595		996,707
Range Resources Corp.		26,309		845,045
Williams Companies, Inc.		18,380		677,303
Total Energy				3,738,455
Basic Materials - 1.7%
Sherwin-Williams Co.		4,650		1,035,927
Sigma-Aldrich Corp.		6,500		902,980
Ecolab, Inc.		7,175		787,241
Total Basic Materials				2,726,148
Total Common Stocks
(Cost $140,266,268)				163,079,891

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	555,996		555,996
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		212,817		212,817
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		199,726		199,726
Total Repurchase Agreements
(Cost $968,539)				968,539
Total Investments - 100.1%
(Cost $141,234,807)			$	164,048,430
Other Assets & Liabilities, net - (0.1)%				(204,612	)
Total Net Assets - 100.0%			$	163,843,818

*	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
	See Sector Classification in Other Information section.

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $140,266,268)	$	163,079,891
Repurchase agreements, at value (cost $968,539)		968,539
Total investments (cost $141,234,807)		164,048,430
Cash		9,983
Receivables:
Fund shares sold		461,702
Dividends		84,673
Total assets		164,604,788
Liabilities:
Payable for:
Fund shares redeemed		508,769
Management fees		99,281
Distribution and service fees		46,896
Transfer agent and administrative fees		33,094
Portfolio accounting fees		13,237
Miscellaneous		59,693
Total liabilities		760,970
Commitments and contingent liabilities (Note 12)		—
Net assets	$	163,843,818
Net assets consist of:
Paid in capital	$	149,799,661
Accumulated net investment loss		(831,027	)
Accumulated net realized loss on investments		(7,938,439	)
Net unrealized appreciation on investments		22,813,623
Net assets	$	163,843,818
A-Class:
Net assets	$	26,894,866
Capital shares outstanding		518,850
Net asset value per share	$	51.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	54.43
C-Class:
Net assets	$	21,790,667
Capital shares outstanding		460,000
Net asset value per share	$	47.37
H-Class:
Net assets	$	115,158,285
Capital shares outstanding		2,222,004
Net asset value per share	$	51.83

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	767,457
Interest		201
Total investment income		767,658
Expenses:
Management fees		579,945
Transfer agent and administrative fees		193,315
Distribution and service fees:
A-Class		34,818
C-Class		114,370
H-Class		129,904
Portfolio accounting fees		77,325
Custodian fees		8,883
Trustees’ fees*		5,090
Line of credit fees		492
Miscellaneous		91,302
Total expenses		1,235,444
Net investment loss		(467,786	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(6,599,099	)
Net realized loss		(6,599,099	)
Net change in unrealized appreciation (depreciation) on:
Investments		(7,707,226	)
Net change in unrealized appreciation (depreciation)		(7,707,226	)
Net realized and unrealized loss		(14,306,325	)
Net decrease in net assets resulting from operations	$	(14,774,111	)

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

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

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(467,786	)	$	(1,197,722	)
Net realized gain (loss) on investments		(6,599,099	)		10,011,328
Net change in unrealized appreciation (depreciation) on investments		(7,707,226	)		4,587,390
Net increase (decrease) in net assets resulting from operations		(14,774,111	)		13,400,996
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		31,872,536			37,179,898
C-Class		3,945,503			14,859,172
H-Class		185,008,898			422,548,514
Distributions reinvested
A-Class		—			569,662
C-Class		—			609,646
H-Class		—			3,196,101
Cost of shares redeemed
A-Class		(28,295,112	)		(34,342,245	)
C-Class		(3,095,900	)		(11,449,505	)
H-Class		(163,915,710	)		(429,533,249	)
Net increase from capital share transactions		25,520,215			3,637,994
Net increase in net assets		10,746,104			12,575,094
Net assets:
Beginning of period		153,097,714			140,522,620
End of period	$	163,843,818		$	153,097,714
Accumulated net investment loss at end of period	$	(831,027	)	$	(363,241	)
Capital share activity:
Shares sold
A-Class		575,699			703,638
C-Class		79,358			302,375
H-Class		3,376,167			7,902,853
Shares issued from reinvestment of distributions
A-Class		—			10,626
C-Class		—			12,364
H-Class		—			59,629
Shares redeemed
A-Class		(518,251	)		(646,079	)
C-Class		(62,481	)		(233,689	)
H-Class		(3,027,934	)		(8,126,262	)
Net increase (decrease) in shares		422,558			(14,545	)

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a				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		$	55.85		$	50.81		$	38.86		$	34.54		$	33.15		$	26.51
Income (loss) from investment operations:
Net investment income (loss)b			(.14	)		(.33	)		(.23	)		(.13	)		(.20	)		(.18	)
Net gain (loss) on investments (realized and unrealized)			(3.87	)		6.86			12.18			4.45			1.82			6.82
Total from investment operations			(4.01	)		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		$	51.84		$	55.85		$	50.81		$	38.86		$	34.54		$	33.15
Total Returnc			(7.18	%)		12.98	%		30.75	%		12.51	%		4.96	%		25.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	26,895		$	25,768		$	19,978		$	15,001		$	2,846		$	2,704
Ratios to average net assets:
Net investment income (loss)			(0.51	%)		(0.62	%)		(0.51	%)		(0.38	%)		(0.62	%)		(0.65	%)
Total expenses			1.49	%		1.50	%		1.52	%		1.51	%		1.52	%		1.53	%
Portfolio turnover rate			101	%		274	%		594	%		421	%		586	%		808	%

C-Class	Period Ended September 30, 2015a				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		$	51.23		$	47.07		$	36.27		$	32.48		$	31.42		$	25.32
Income (loss) from investment operations:
Net investment income (loss)b			(.32	)		(.67	)		(.52	)		(.38	)		(.41	)		(.41	)
Net gain (loss) on investments (realized and unrealized)			(3.54	)		6.32			11.32			4.17			1.70			6.51
Total from investment operations			(3.86	)		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		$	47.37		$	51.23		$	47.07		$	36.27		$	32.48		$	31.42
Total Returnc			(7.53	%)		12.13	%		29.78	%		11.70	%		4.15	%		24.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	21,791		$	22,701		$	17,042		$	8,692		$	11,623		$	8,384
Ratios to average net assets:
Net investment income (loss)			(1.25	%)		(1.37	%)		(1.24	%)		(1.19	%)		(1.35	%)		(1.53	%)
Total expenses			2.24	%		2.25	%		2.27	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate			101	%		274	%		594	%		421	%		586	%		808	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a				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		$	55.84		$	50.80		$	38.84		$	34.52		$	33.13		$	26.50
Income (loss) from investment operations:
Net investment income (loss)b			(.14	)		(.34	)		(.23	)		(.15	)		(.19	)		(.26	)
Net gain (loss) on investments (realized and unrealized)			(3.87	)		6.87			12.19			4.47			1.81			6.89
Total from investment operations			(4.01	)		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		$	51.83		$	55.84		$	50.80		$	38.84		$	34.52		$	33.13
Total Returnc			(7.18	%)		12.98	%		30.79	%		12.51	%		4.96	%		25.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	115,158		$	104,628		$	103,502		$	52,483		$	36,627		$	38,831
Ratios to average net assets:
Net investment income (loss)			(0.49	%)		(0.65	%)		(0.50	%)		(0.43	%)		(0.59	%)		(0.89	%)
Total expenses			1.49	%		1.50	%		1.52	%		1.50	%		1.51	%		1.55	%
Portfolio turnover rate			101	%		274	%		594	%		421	%		586	%		808	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
Assurant, Inc.	2.7%
Valero Energy Corp.	2.6%
Berkshire Hathaway, Inc. — Class B	2.2%
Tesoro Corp.	2.0%
Phillips 66	1.9%
GameStop Corp. — Class A	1.8%
Anthem, Inc.	1.8%
General Motors Co.	1.7%
Unum Group	1.7%
Tyson Foods, Inc. — Class A	1.7%
Top Ten Total	20.1%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

16 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 100.0%
Financial - 36.0%
Assurant, Inc.		19,218	$	1,518,413
Berkshire Hathaway, Inc. — Class B*		9,374		1,222,370
Unum Group		29,058		932,180
Hartford Financial Services Group, Inc.		19,291		883,142
American International Group, Inc.		14,828		842,527
MetLife, Inc.		17,240		812,865
Prudential Financial, Inc.		10,233		779,857
Lincoln National Corp.		13,946		661,877
Loews Corp.		17,535		633,715
XL Group plc — Class A		17,132		622,234
SunTrust Banks, Inc.		14,047		537,156
Citigroup, Inc.		10,708		531,224
Zions Bancorporation		19,138		527,061
JPMorgan Chase & Co.		8,437		514,404
People’s United Financial, Inc.		32,653		513,632
Genworth Financial, Inc. — Class A*		110,072		508,533
Morgan Stanley		14,780		465,570
Bank of America Corp.		29,479		459,283
Capital One Financial Corp.		6,157		446,506
Travelers Companies, Inc.		4,429		440,818
Aflac, Inc.		7,539		438,242
PNC Financial Services Group, Inc.		4,792		427,446
Nasdaq, Inc.		7,984		425,787
Progressive Corp.		13,841		424,088
Chubb Corp.		3,408		417,991
Goldman Sachs Group, Inc.		2,347		407,815
KeyCorp		30,663		398,926
Cincinnati Financial Corp.		7,202		387,468
Fifth Third Bancorp		19,947		377,198
ACE Ltd.		3,647		377,100
Comerica, Inc.		8,173		335,910
Torchmark Corp.		5,895		332,478
BB&T Corp.		9,151		325,776
Bank of New York Mellon Corp.		8,035		314,570
Hudson City Bancorp, Inc.		30,600		311,202
Principal Financial Group, Inc.		6,437		304,728
Huntington Bancshares, Inc.		26,071		276,353
Total Financial				20,136,445
Energy - 21.4%
Valero Energy Corp.		24,546		1,475,215
Tesoro Corp.		11,250		1,093,950
Phillips 66		13,773		1,058,317
Marathon Petroleum Corp.		19,524		904,548
Newfield Exploration Co.*		24,969		821,480
Hess Corp.		12,430		622,246
First Solar, Inc.*		13,104		560,196
Baker Hughes, Inc.		8,482		441,403
Chevron Corp.		5,555		438,178
Marathon Oil Corp.		26,752		411,981
Devon Energy Corp.		11,057		410,104
Diamond Offshore Drilling, Inc.		23,105		399,717
Chesapeake Energy Corp.		50,605		370,935
Ensco plc — Class A		25,306		356,308
Murphy Oil Corp.		13,742		332,556
Apache Corp.		8,212		321,582
National Oilwell Varco, Inc.		8,378		315,432
ConocoPhillips		6,492		311,356
Exxon Mobil Corp.		3,909		290,634
Transocean Ltd.		21,650		279,718
Occidental Petroleum Corp.		4,087		270,355
Halliburton Co.		7,312		258,479
Helmerich & Payne, Inc.		4,892		231,196
Total Energy				11,975,886
Consumer, Cyclical - 12.8%
GameStop Corp. — Class A		24,622		1,014,672
General Motors Co.		31,395		942,478
Staples, Inc.		67,007		785,992
Best Buy Company, Inc.		20,460		759,475
Ford Motor Co.		55,091		747,585
Goodyear Tire & Rubber Co.		24,991		732,986
Kohl’s Corp.		9,267		429,155
Target Corp.		4,479		352,318
Costco Wholesale Corp.		2,207		319,066
Wal-Mart Stores, Inc.		4,743		307,536
Carnival Corp.		5,721		284,334
Whirlpool Corp.		1,548		227,958
Johnson Controls, Inc.		5,157		213,294
Total Consumer, Cyclical				7,116,849
Utilities - 8.6%
FirstEnergy Corp.		13,791		431,796
Exelon Corp.		13,789		409,533
Consolidated Edison, Inc.		5,963		398,627
AES Corp.		35,287		345,460
PG&E Corp.		6,530		344,784
NRG Energy, Inc.		21,271		315,874
Entergy Corp.		4,842		315,214
TECO Energy, Inc.		11,123		292,090
SCANA Corp.		4,809		270,554
Xcel Energy, Inc.		7,466		264,371
DTE Energy Co.		3,230		259,595
Ameren Corp.		5,853		247,406
American Electric Power Company, Inc.		4,317		245,465
Pinnacle West Capital Corp.		3,625		232,508
Duke Energy Corp.		3,187		229,273
Pepco Holdings, Inc.		9,189		222,558
Total Utilities				4,825,108
Consumer, Non-cyclical - 8.5%
Anthem, Inc.		7,237		1,013,179
Tyson Foods, Inc. — Class A		21,458		924,840
Humana, Inc.		5,038		901,802
Archer-Daniels-Midland Co.		17,450		723,303

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P 500® PURE VALUE FUND

	Shares		Value
Cardinal Health, Inc.		6,755	$	518,919
Sysco Corp.		10,581		412,342
Avery Dennison Corp.		4,735		267,859
Total Consumer, Non-cyclical				4,762,244
Industrial - 4.7%
Jacobs Engineering Group, Inc.*		21,653		810,471
Fluor Corp.		12,391		524,759
L-3 Communications Holdings, Inc.		3,378		353,069
Owens-Illinois, Inc.*		16,213		335,933
Ryder System, Inc.		3,701		274,022
Deere & Co.		3,140		232,360
Joy Global, Inc.		5,050		75,397
Total Industrial				2,606,011
Communications - 2.4%
News Corp. — Class A		36,626		462,220
AT&T, Inc.		8,241		268,492
Juniper Networks, Inc.		9,747		250,595
CenturyLink, Inc.		8,548		214,726
News Corp. — Class B		10,630		136,277
Total Communications				1,332,310
Basic Materials - 2.1%
Newmont Mining Corp.		19,188		308,352
LyondellBasell Industries N.V. — Class A		2,800		233,408
Dow Chemical Co.		5,106		216,494
Nucor Corp.		5,740		215,537
Freeport-McMoRan, Inc.		21,787		211,116
Total Basic Materials				1,184,907
Technology - 2.1%
Xerox Corp.		47,707		464,189
Computer Sciences Corp.		6,720		412,474
Hewlett-Packard Co.		11,535		295,411
Total Technology				1,172,074
Diversified - 1.4%
Leucadia National Corp.		39,563		801,546
Total Common Stocks
(Cost $47,405,652)				55,913,380

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.3%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	94,026		94,026
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		35,991		35,991
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		33,776		33,776
Total Repurchase Agreements
(Cost $163,793)				163,793
Total Investments - 100.3%
(Cost $47,569,445)			$	56,077,173
Other Assets & Liabilities, net - (0.3)%				(170,255	)
Total Net Assets - 100.0%			$	55,906,918

*	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
	See Sector Classification in Other Information section.

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

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $47,405,652)	$	55,913,380
Repurchase agreements, at value (cost $163,793)		163,793
Total investments (cost $47,569,445)		56,077,173
Cash		3,313
Receivables:
Fund shares sold		1,674,495
Dividends		71,340
Securities lending income		320
Total assets		57,826,641
Liabilities:
Payable for:
Securities purchased		1,336,513
Fund shares redeemed		489,094
Management fees		33,328
Distribution and service fees		14,104
Transfer agent and administrative fees		11,109
Portfolio accounting fees		4,444
Miscellaneous		31,131
Total liabilities		1,919,723
Commitments and contingent liabilities (Note 12)		—
Net assets	$	55,906,918
Net assets consist of:
Paid in capital	$	56,275,134
Undistributed net investment income		1,374,615
Accumulated net realized loss on investments		(10,250,559	)
Net unrealized appreciation on investments		8,507,728
Net assets	$	55,906,918
A-Class:
Net assets	$	13,093,809
Capital shares outstanding		101,376
Net asset value per share	$	129.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	135.60
C-Class:
Net assets	$	4,835,254
Capital shares outstanding		41,890
Net asset value per share	$	115.43
H-Class:
Net assets	$	37,977,855
Capital shares outstanding		292,965
Net asset value per share	$	129.63

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	805,013
Income from securities lending, net		34,599
Interest		51
Total investment income		839,663
Expenses:
Management fees		266,142
Transfer agent and administrative fees		88,714
Distribution and service fees:
A-Class		19,628
C-Class		30,404
H-Class		61,485
Portfolio accounting fees		35,485
Registration fees		41,200
Custodian fees		4,069
Trustees’ fees*		3,336
Line of credit fees		141
Miscellaneous		(665	)
Total expenses		549,939
Net investment income		289,724
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,614,351	)
Net realized loss		(2,614,351	)
Net change in unrealized appreciation (depreciation) on:
Investments		(6,088,786	)
Net change in unrealized appreciation (depreciation)		(6,088,786	)
Net realized and unrealized loss		(8,703,137	)
Net decrease in net assets resulting from operations	$	(8,413,413	)

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

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

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	289,724		$	1,084,891
Net realized gain (loss) on investments		(2,614,351	)		5,872,408
Net change in unrealized appreciation (depreciation) on investments		(6,088,786	)		(1,346,174	)
Net increase (decrease) in net assets resulting from operations		(8,413,413	)		5,611,125
Distributions to shareholders from:
Net investment income
A-Class		—			(27,416	)
C-Class		—			(8,632	)
H-Class		—			(94,796	)
Net realized gains
A-Class		—			(814,700	)
C-Class		—			(256,525	)
H-Class		—			(2,817,022	)
Total distributions to shareholders		—			(4,019,091	)
Capital share transactions:
Proceeds from sale of shares
A-Class		6,787,543			63,590,141
C-Class		4,517,578			9,712,015
H-Class		100,520,425			502,106,517
Distributions reinvested
A-Class		—			826,012
C-Class		—			260,348
H-Class		—			2,878,464
Cost of shares redeemed
A-Class		(8,236,461	)		(52,604,015	)
C-Class		(5,189,414	)		(8,669,041	)
H-Class		(105,612,098	)		(572,669,115	)
Net decrease from capital share transactions		(7,212,427	)		(54,568,674	)
Net decrease in net assets		(15,625,840	)		(52,976,640	)
Net assets:
Beginning of period		71,532,758			124,509,398
End of period	$	55,906,918		$	71,532,758
Undistributed net investment income at end of period	$	1,374,615		$	1,084,891
Capital share activity:
Shares sold
A-Class		46,277			439,661
C-Class		35,310			73,971
H-Class		697,866			3,448,759
Shares issued from reinvestment of distributions
A-Class		—			5,624
C-Class		—			1,971
H-Class		—			19,528
Shares redeemed
A-Class		(56,711	)		(364,842	)
C-Class		(42,520	)		(66,550	)
H-Class		(740,852	)		(3,942,732	)
Net decrease in shares		(60,630	)		(384,610	)

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	145.09		$	141.39		$	111.68		$	93.49		$	90.21		$	79.66
Income (loss) from investment operations:
Net investment income (loss)b		.63			1.14			.61			.58			.30			.01
Net gain (loss) on investments (realized and unrealized)		(16.56	)		6.83			35.01			17.75			2.98			11.87
Total from investment operations		(15.93	)		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	$	129.16		$	145.09		$	141.39		$	111.68		$	93.49		$	90.21
Total Returnc		(10.98	%)		5.60	%		32.21	%		19.63	%		3.64	%		15.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,094		$	16,222		$	4,435		$	1,303		$	1,846		$	2,329
Ratios to average net assets:
Net investment income (loss)		0.87	%		0.78	%		0.47	%		0.61	%		0.34	%		0.01	%
Total expenses		1.49	%		1.51	%		1.52	%		1.51	%		1.51	%		1.54	%
Portfolio turnover rate		133	%		295	%		410	%		669	%		762	%		820	%

C-Class	Period Ended September 30, 2015a			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	$	130.15		$	128.19		$	102.46		$	86.42		$	83.99		$	74.81
Income (loss) from investment operations:
Net investment income (loss)b		.06			.04			(.30	)		(.19	)		(.36	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		(14.78	)		6.19			31.94			16.37			2.79			11.02
Total from investment operations		(14.72	)		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	$	115.43		$	130.15		$	128.19		$	102.46		$	86.42		$	83.99
Total Returnc		(11.31	%)		4.81	%		31.21	%		18.76	%		2.88	%		14.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,835		$	6,390		$	5,090		$	3,430		$	2,128		$	5,690
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.03	%		(0.26	%)		(0.22	%)		(0.45	%)		(0.68	%)
Total expenses		2.24	%		2.25	%		2.27	%		2.26	%		2.27	%		2.29	%
Portfolio turnover rate		133	%		295	%		410	%		669	%		762	%		820	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	145.62		$	141.89		$	112.06		$	93.80		$	90.50		$	79.91
Income (loss) from investment operations:
Net investment income (loss)b		.64			.97			.51			.57			.33			(.02	)
Net gain (loss) on investments (realized and unrealized)		(16.63	)		7.03			35.23			17.83			2.97			11.94
Total from investment operations		(15.99	)		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	$	129.63		$	145.62		$	141.89		$	112.06		$	93.80		$	90.50
Total Returnc		(10.98	%)		5.60	%		32.21	%		19.64	%		3.65	%		15.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,978		$	48,920		$	114,984		$	78,480		$	68,886		$	26,852
Ratios to average net assets:
Net investment income (loss)		0.89	%		0.66	%		0.40	%		0.58	%		0.38	%		(0.03	%)
Total expenses		1.49	%		1.51	%		1.52	%		1.52	%		1.51	%		1.54	%
Portfolio turnover rate		133	%		295	%		410	%		669	%		762	%		820	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
JetBlue Airways Corp.	3.2%
Skechers U.S.A., Inc. — Class A	2.6%
Cadence Design Systems, Inc.	2.0%
Fortinet, Inc.	2.0%
Centene Corp.	2.0%
Molina Healthcare, Inc.	1.9%
Extra Space Storage, Inc.	1.9%
Toll Brothers, Inc.	1.8%
PAREXEL International Corp.	1.8%
Eagle Materials, Inc.	1.8%
Top Ten Total	21.0%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 23

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Consumer, Non-cyclical - 24.5%
Centene Corp.*		63,220	$	3,428,422
Molina Healthcare, Inc.*		47,600		3,277,260
PAREXEL International Corp.*		51,000		3,157,920
United Therapeutics Corp.*		23,091		3,030,463
WhiteWave Foods Co. — Class A*		64,704		2,597,866
Global Payments, Inc.		21,040		2,413,919
Hain Celestial Group, Inc.*		46,505		2,399,658
Akorn, Inc.*		76,181		2,171,539
IDEXX Laboratories, Inc.*		24,855		1,845,483
VCA, Inc.*		31,225		1,643,996
Gartner, Inc.*		19,325		1,621,947
Service Corporation International		50,525		1,369,228
Boston Beer Company, Inc. — Class A*		6,500		1,368,965
Live Nation Entertainment, Inc.*		56,500		1,358,260
SEI Investments Co.		27,380		1,320,537
STERIS Corp.		19,700		1,279,909
CEB, Inc.		18,648		1,274,404
MEDNAX, Inc.*		16,500		1,267,035
Catalent, Inc.*		49,710		1,207,953
Align Technology, Inc.*		18,620		1,056,871
Sirona Dental Systems, Inc.*		10,634		992,578
Charles River Laboratories International, Inc.*		14,650		930,568
WEX, Inc.*		9,569		830,972
Cooper Companies, Inc.		5,400		803,844
Total Consumer, Non-cyclical				42,649,597
Consumer, Cyclical - 22.2%
JetBlue Airways Corp.*		218,140		5,621,468
Skechers U.S.A., Inc. — Class A*		34,340		4,604,307
Toll Brothers, Inc.*		92,500		3,167,201
NVR, Inc.*		2,000		3,050,440
Alaska Air Group, Inc.		31,670		2,516,182
Buffalo Wild Wings, Inc.*		12,800		2,475,905
Tempur Sealy International, Inc.*		33,180		2,370,047
Foot Locker, Inc.		32,820		2,362,055
Polaris Industries, Inc.		12,908		1,547,282
Domino’s Pizza, Inc.		13,685		1,476,748
Brunswick Corp.		28,641		1,371,617
Carter’s, Inc.		14,974		1,357,243
Williams-Sonoma, Inc.		17,360		1,325,436
Jack in the Box, Inc.		16,500		1,271,160
LKQ Corp.*		39,590		1,122,772
Brinker International, Inc.		17,100		900,657
Dunkin’ Brands Group, Inc.		17,900		877,100
HSN, Inc.		12,400		709,776
Deckers Outdoor Corp.*		10,750		624,145
Total Consumer, Cyclical				38,751,541
Financial - 20.2%
Extra Space Storage, Inc.		42,423		3,273,360
Alexander & Baldwin, Inc.		88,780		3,047,817
WisdomTree Investments, Inc.		166,600		2,687,258
Camden Property Trust		32,700		2,416,530
Jones Lang LaSalle, Inc.		14,400		2,070,288
RenaissanceRe Holdings Ltd.		19,050		2,025,396
LaSalle Hotel Properties		63,183		1,793,765
Care Capital Properties, Inc.		53,730		1,769,329
Bank of the Ozarks, Inc.		39,035		1,708,171
Duke Realty Corp.		85,240		1,623,822
Douglas Emmett, Inc.		56,500		1,622,680
Sovran Self Storage, Inc.		16,177		1,525,491
Omega Healthcare Investors, Inc.		43,263		1,520,694
Signature Bank*		10,301		1,417,006
Primerica, Inc.		30,855		1,390,635
Weingarten Realty Investors		40,500		1,340,955
Lamar Advertising Co. — Class A		23,136		1,207,236
Regency Centers Corp.		18,260		1,134,859
UDR, Inc.		25,400		875,792
Kilroy Realty Corp.		12,900		840,564
Total Financial				35,291,648
Technology - 14.5%
Cadence Design Systems, Inc.*		172,420		3,565,645
Fortinet, Inc.*		83,650		3,553,452
Manhattan Associates, Inc.*		47,200		2,940,560
MAXIMUS, Inc.		40,100		2,388,356
SolarWinds, Inc.*		60,090		2,357,932
Synaptics, Inc.*		26,588		2,192,446
NetScout Systems, Inc.*		56,790		2,008,662
Ultimate Software Group, Inc.*		8,586		1,536,980
Fair Isaac Corp.		17,661		1,492,355
ACI Worldwide, Inc.*		59,997		1,267,137
Tyler Technologies, Inc.*		7,800		1,164,618
Rackspace Hosting, Inc.*		35,926		886,654
Total Technology				25,354,797
Industrial - 10.9%
Eagle Materials, Inc.		45,041		3,081,705
Trinity Industries, Inc.		126,240		2,861,861
Wabtec Corp.		21,725		1,912,886
Packaging Corporation of America		31,417		1,890,047
Old Dominion Freight Line, Inc.*		26,775		1,633,275
Acuity Brands, Inc.		9,100		1,597,778
Zebra Technologies Corp. — Class A*		19,842		1,518,905
ITT Corp.		42,200		1,410,746
Landstar System, Inc.		20,201		1,282,157
Cognex Corp.		27,580		947,925
Gentex Corp.		50,932		789,446
Total Industrial				18,926,731

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
Communications - 4.2%
ARRIS Group, Inc.*		117,391	$	3,048,644
InterDigital, Inc.		40,066		2,027,340
AMC Networks, Inc. — Class A*		17,200		1,258,524
FactSet Research Systems, Inc.		6,000		958,860
Total Communications				7,293,368
Basic Materials - 2.3%
Cytec Industries, Inc.		27,785		2,051,922
Minerals Technologies, Inc.		21,563		1,038,474
Valspar Corp.		11,545		829,855
Total Basic Materials				3,920,251
Utilities - 0.8%
UGI Corp.		41,725		1,452,865
Total Common Stocks
(Cost $158,718,768)				173,640,798

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	629,285		629,285
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		240,870		240,870
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		226,053		226,053
Total Repurchase Agreements
(Cost $1,096,208)				1,096,208
Total Investments - 100.2%
(Cost $159,814,976)			$	174,737,006
Other Assets & Liabilities, net - (0.2)%				(358,603	)
Total Net Assets - 100.0%			$	174,378,403

*	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 Sector Classification in Other Information section.

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $158,718,768)	$	173,640,798
Repurchase agreements, at value (cost $1,096,208)		1,096,208
Total investments (cost $159,814,976)		174,737,006
Cash		6,120
Receivables:
Securities sold		1,275,755
Dividends		106,501
Fund shares sold		33,330
Total assets		176,158,712
Liabilities:
Payable for:
Fund shares redeemed		1,460,466
Management fees		117,731
Distribution and service fees		55,492
Transfer agent and administrative fees		39,244
Portfolio accounting fees		15,697
Miscellaneous		91,679
Total liabilities		1,780,309
Commitments and contingent liabilities (Note 12)		—
Net assets	$	174,378,403
Net assets consist of:
Paid in capital	$	152,510,320
Accumulated net investment loss		(852,031	)
Accumulated net realized gain on investments		7,798,084
Net unrealized appreciation on investments		14,922,030
Net assets	$	174,378,403
A-Class:
Net assets	$	32,291,145
Capital shares outstanding		645,145
Net asset value per share	$	50.05
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.55
C-Class:
Net assets	$	24,329,601
Capital shares outstanding		540,787
Net asset value per share	$	44.99
H-Class:
Net assets	$	117,757,657
Capital shares outstanding		2,350,358
Net asset value per share	$	50.10

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	733,318
Income from securities lending, net		215
Interest		202
Total investment income		733,735
Expenses:
Management fees		748,343
Transfer agent and administrative fees		249,447
Distribution and service fees:
A-Class		53,033
C-Class		136,677
H-Class		162,246
Portfolio accounting fees		99,778
Custodian fees		11,478
Trustees’ fees*		6,593
Line of credit fees		475
Miscellaneous		117,696
Total expenses		1,585,766
Net investment loss		(852,031	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,622,023
Swap agreements		(90,986	)
Net realized gain		2,531,037
Net change in unrealized appreciation (depreciation) on:
Investments		(17,017,592	)
Net change in unrealized appreciation (depreciation)		(17,017,592	)
Net realized and unrealized loss		(14,486,555	)
Net decrease in net assets resulting from operations	$	(15,338,586	)

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

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(852,031	)	$	(1,378,718	)
Net realized gain on investments		2,531,037			29,700,840
Net change in unrealized appreciation (depreciation) on investments		(17,017,592	)		(18,164,089	)
Net increase (decrease) in net assets resulting from operations		(15,338,586	)		10,158,033
Distributions to shareholders from:
Net realized gains
A-Class		—			(7,116,622	)
C-Class		—			(4,084,213	)
H-Class		—			(22,003,582	)
Total distributions to shareholders		—			(33,204,417	)
Capital share transactions:
Proceeds from sale of shares
A-Class		30,366,207			39,741,275
C-Class		5,556,049			6,287,664
H-Class		67,465,222			147,612,847
Distributions reinvested
A-Class		—			6,967,839
C-Class		—			3,990,817
H-Class		—			21,471,603
Cost of shares redeemed
A-Class		(35,022,956	)		(61,004,231	)
C-Class		(5,859,387	)		(9,508,175	)
H-Class		(64,796,716	)		(215,228,354	)
Net decrease from capital share transactions		(2,291,581	)		(59,668,715	)
Net decrease in net assets		(17,630,167	)		(82,715,099	)
Net assets:
Beginning of period		192,008,570			274,723,669
End of period	$	174,378,403		$	192,008,570
Accumulated net investment loss at end of period	$	(852,031	)	$	—
Capital share activity:
Shares sold
A-Class		572,416			737,028
C-Class		114,851			127,220
H-Class		1,253,446			2,657,949
Shares issued from reinvestment of distributions
A-Class		—			138,912
C-Class		—			87,942
H-Class		—			427,636
Shares redeemed
A-Class		(681,953	)		(1,132,013	)
C-Class		(123,272	)		(193,674	)
H-Class		(1,215,483	)		(3,955,768	)
Net decrease in shares		(79,995	)		(1,104,768	)

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a				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		$	53.86		$	58.66		$	49.76		$	44.11		$	42.76		$	32.21
Income (loss) from investment operations:
Net investment income (loss)b			(.20	)		(.29	)		(.22	)		(.19	)		(.45	)		(.38	)
Net gain (loss) on investments (realized and unrealized)			(3.61	)		3.88			11.05			5.84			1.80			10.93
Total from investment operations			(3.81	)		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		$	50.05		$	53.86		$	58.66		$	49.76		$	44.11		$	42.76
Total Returnc			(7.07	%)		7.18	%		21.90	%		12.81	%		3.16	%		32.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	32,291		$	40,648		$	59,293		$	45,638		$	36,052		$	25,237
Ratios to average net assets:
Net investment income (loss)			(0.74	%)		(0.53	%)		(0.40	%)		(0.43	%)		(1.09	%)		(1.04	%)
Total expenses			1.49	%		1.51	%		1.52	%		1.50	%		1.50	%		1.54	%
Portfolio turnover rate			49	%		134	%		131	%		188	%		226	%		448	%

C-Class	Period Ended September 30, 2015a				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		$	48.60		$	54.13		$	46.39		$	41.43		$	40.47		$	30.71
Income (loss) from investment operations:
Net investment income (loss)b			(.36	)		(.64	)		(.58	)		(.49	)		(.71	)		(.63	)
Net gain (loss) on investments (realized and unrealized)			(3.25	)		3.50			10.25			5.45			1.67			10.39
Total from investment operations			(3.61	)		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		$	44.99		$	48.60		$	54.13		$	46.39		$	41.43		$	40.47
Total Returnc			(7.43	%)		6.39	%		20.98	%		12.00	%		2.35	%		31.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	24,330		$	26,689		$	28,567		$	18,837		$	16,228		$	10,102
Ratios to average net assets:
Net investment income (loss)			(1.50	%)		(1.26	%)		(1.15	%)		(1.19	%)		(1.83	%)		(1.83	%)
Total expenses			2.24	%		2.26	%		2.27	%		2.25	%		2.25	%		2.29	%
Portfolio turnover rate			49	%		134	%		131	%		188	%		226	%		448	%

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a				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		$	53.91		$	58.71		$	49.80		$	44.14		$	42.81		$	32.25
Income (loss) from investment operations:
Net investment income (loss)b			(.20	)		(.29	)		(.18	)		(.20	)		(.44	)		(.38	)
Net gain (loss) on investments (realized and unrealized)			(3.61	)		3.88			11.02			5.86			1.77			10.94
Total from investment operations			(3.81	)		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		$	50.10		$	53.91		$	58.71		$	49.80		$	44.14		$	42.81
Total Returnc			(7.07	%)		7.18	%		21.91	%		12.82	%		3.11	%		32.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	117,758		$	124,672		$	186,863		$	242,157		$	312,510		$	212,654
Ratios to average net assets:
Net investment income (loss)			(0.75	%)		(0.52	%)		(0.33	%)		(0.45	%)		(1.08	%)		(1.02	%)
Total expenses			1.49	%		1.51	%		1.52	%		1.50	%		1.50	%		1.55	%
Portfolio turnover rate			49	%		134	%		131	%		188	%		226	%		448	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
AGCO Corp.	2.3%
HollyFrontier Corp.	2.3%
Tech Data Corp.	2.2%
Reinsurance Group of America, Inc. — Class A	2.2%
Ascena Retail Group, Inc.	2.1%
Ingram Micro, Inc. — Class A	2.1%
Domtar Corp.	1.9%
ManpowerGroup, Inc.	1.9%
Avnet, Inc.	1.9%
Arrow Electronics, Inc.	1.8%
Top Ten Total	20.7%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Financial - 23.4%
Reinsurance Group of America, Inc. — Class A		1,540	$	139,509
Old Republic International Corp.		7,000		109,479
Hanover Insurance Group, Inc.		1,401		108,858
StanCorp Financial Group, Inc.		942		107,576
Aspen Insurance Holdings Ltd.		2,086		96,936
CNO Financial Group, Inc.		4,890		91,981
Kemper Corp.		2,571		90,937
American Financial Group, Inc.		1,263		87,033
First American Financial Corp.		2,079		81,227
Everest Re Group Ltd.		374		64,829
HCC Insurance Holdings, Inc.		690		53,454
Associated Banc-Corp.		2,428		43,632
FirstMerit Corp.		2,466		43,574
Trustmark Corp.		1,880		43,560
Fulton Financial Corp.		3,597		43,524
International Bancshares Corp.		1,714		42,901
Mercury General Corp.		790		39,903
Washington Federal, Inc.		1,730		39,357
Umpqua Holdings Corp.		2,357		38,419
Hancock Holding Co.		1,347		36,436
New York Community Bancorp, Inc.		1,611		29,095
Valley National Bancorp		2,912		28,654
TCF Financial Corp.		1,845		27,970
Prosperity Bancshares, Inc.		493		24,211
Total Financial				1,513,055
Industrial - 21.4%
AGCO Corp.		3,225		150,382
Tech Data Corp.*		2,095		143,509
Avnet, Inc.		2,830		120,784
Arrow Electronics, Inc.*		2,055		113,600
AECOM*		3,829		105,335
KBR, Inc.		6,298		104,925
Orbital ATK, Inc.		1,213		87,178
Jabil Circuit, Inc.		3,613		80,823
Terex Corp.		4,259		76,406
Con-way, Inc.		1,321		62,681
Greif, Inc. — Class A		1,896		60,501
Oshkosh Corp.		1,649		59,908
Vishay Intertechnology, Inc.		5,416		52,481
Triumph Group, Inc.		800		33,664
Kennametal, Inc.		1,210		30,117
Granite Construction, Inc.		1,000		29,670
Regal Beloit Corp.		495		27,943
Bemis Company, Inc.		688		27,224
Timken Co.		620		17,044
Total Industrial				1,384,175
Energy - 14.2%
HollyFrontier Corp.		3,065		149,695
Nabors Industries Ltd.		10,765		101,729
Western Refining, Inc.		2,093		92,343
Noble Corporation plc		7,980		87,062
Patterson-UTI Energy, Inc.		6,010		78,971
Rowan Companies plc — Class A		3,870		62,501
Murphy USA, Inc.*		1,050		57,698
Superior Energy Services, Inc.		4,284		54,106
SM Energy Co.		1,492		47,804
QEP Resources, Inc.		3,679		46,098
Atwood Oceanics, Inc.		2,630		38,950
NOW, Inc.*		2,590		38,332
Denbury Resources, Inc.		13,616		33,223
Oil States International, Inc.*		830		21,688
Helix Energy Solutions Group, Inc.*		1,340		6,419
Total Energy				916,619
Consumer, Non-cyclical - 12.7%
ManpowerGroup, Inc.		1,505		123,244
Health Net, Inc.*		1,481		89,185
WellCare Health Plans, Inc.*		1,016		87,559
Community Health Systems, Inc.*		1,791		76,601
Owens & Minor, Inc.		2,255		72,025
Rent-A-Center, Inc.		2,649		64,238
RR Donnelley & Sons Co.		4,210		61,298
Halyard Health, Inc.*		1,940		55,174
FTI Consulting, Inc.*		1,280		53,133
Aaron’s, Inc.		1,423		51,385
Dean Foods Co.		2,527		41,746
United Natural Foods, Inc.*		610		29,591
Avon Products, Inc.		4,224		13,728
Total Consumer, Non-cyclical				818,907
Consumer, Cyclical - 12.1%
Ascena Retail Group, Inc.*		9,793		136,221
Ingram Micro, Inc. — Class A		4,901		133,503
MDC Holdings, Inc.		3,331		87,206
World Fuel Services Corp.		2,012		72,030
JC Penney Company, Inc.*		6,428		59,716
Abercrombie & Fitch Co. — Class A		2,700		57,213
Casey’s General Stores, Inc.		500		51,460
Guess?, Inc.		2,346		50,111
CST Brands, Inc.		1,290		43,421
International Speedway Corp. — Class A		1,170		37,112
Dana Holding Corp.		1,932		30,680
Office Depot, Inc.*		3,638		23,356
Total Consumer, Cyclical				782,029
Basic Materials - 7.6%
Domtar Corp.		3,476		124,267
Reliance Steel & Aluminum Co.		1,782		96,246
Commercial Metals Co.		6,519		88,332
Cabot Corp.		1,626		51,317
Steel Dynamics, Inc.		2,551		43,826
United States Steel Corp.		3,574		37,241
Olin Corp.		1,688		28,375

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
Allegheny Technologies, Inc.		1,370	$	19,427
Total Basic Materials				489,031
Utilities - 3.8%
ONE Gas, Inc.		1,350		61,196
Great Plains Energy, Inc.		1,841		49,744
Hawaiian Electric Industries, Inc.		1,428		40,969
Atmos Energy Corp.		576		33,512
MDU Resources Group, Inc.		1,926		33,127
WGL Holdings, Inc.		502		28,950
Total Utilities				247,498
Communications - 2.3%
Telephone & Data Systems, Inc.		3,553		88,683
Time, Inc.		3,266		62,217
Total Communications				150,900
Technology - 2.2%
Convergys Corp.		1,689		39,033
Lexmark International, Inc. — Class A		1,256		36,399
Advanced Micro Devices, Inc.*		20,601		35,434
NCR Corp.*		1,235		28,096
Total Technology				138,962
Total Common Stocks
(Cost $5,058,062)				6,441,176

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.7%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	24,802		24,802
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		9,493		9,493
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		8,909		8,909
Total Repurchase Agreements
(Cost $43,204)				43,204
Total Investments - 100.4%
(Cost $5,101,266)			$	6,484,380
Other Assets & Liabilities, net - (0.4)%				(26,999	)
Total Net Assets - 100.0%			$	6,457,381

*	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
	See Sector Classification in Other Information section.

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $5,058,062)	$	6,441,176
Repurchase agreements, at value (cost $43,204)		43,204
Total investments (cost $5,101,266)		6,484,380
Cash		770
Receivables:
Securities sold		806,244
Dividends		7,958
Fund shares sold		2,465
Total assets		7,301,817
Liabilities:
Payable for:
Fund shares redeemed		828,282
Management fees		4,812
Distribution and service fees		2,882
Transfer agent and administrative fees		1,604
Portfolio accounting fees		642
Miscellaneous		6,214
Total liabilities		844,436
Commitments and contingent liabilities (Note 12)		—
Net assets	$	6,457,381
Net assets consist of:
Paid in capital	$	8,653,266
Undistributed net investment income		47,117
Accumulated net realized loss on investments		(3,626,116	)
Net unrealized appreciation on investments		1,383,114
Net assets	$	6,457,381
A-Class:
Net assets	$	1,423,208
Capital shares outstanding		35,548
Net asset value per share	$	40.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	42.04
C-Class:
Net assets	$	1,657,135
Capital shares outstanding		45,631
Net asset value per share	$	36.32
H-Class:
Net assets	$	3,377,038
Capital shares outstanding		84,448
Net asset value per share	$	39.99

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	114,781
Income from securities lending, net		3,537
Interest		11
Total investment income		118,329
Expenses:
Management fees		45,705
Transfer agent and administrative fees		15,235
Distribution and service fees:
A-Class		1,998
C-Class		12,573
H-Class		10,094
Portfolio accounting fees		6,094
Registration fees		5,667
Custodian fees		699
Trustees’ fees*		494
Line of credit fees		20
Miscellaneous		1,348
Total expenses		99,927
Net investment income		18,402
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		141,824
Net realized gain		141,824
Net change in unrealized appreciation (depreciation) on:
Investments		(1,687,229	)
Net change in unrealized appreciation (depreciation)		(1,687,229	)
Net realized and unrealized loss		(1,545,405	)
Net decrease in net assets resulting from operations	$	(1,527,003	)

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	18,402		$	28,715
Net realized gain on investments		141,824			821,447
Net change in unrealized appreciation (depreciation) on investments		(1,687,229	)		(111,329	)
Net increase (decrease) in net assets resulting from operations		(1,527,003	)		738,833
Distributions to shareholders from:
Net investment income
A-Class		—			(1,894	)
C-Class		—			(3,562	)
H-Class		—			(13,489	)
Total distributions to shareholders		—			(18,945	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,722,654			11,223,218
C-Class		611,223			3,652,910
H-Class		21,928,739			118,121,754
Distributions reinvested
A-Class		—			1,845
C-Class		—			3,500
H-Class		—			13,216
Cost of shares redeemed
A-Class		(2,032,149	)		(11,626,460	)
C-Class		(1,696,162	)		(2,948,860	)
H-Class		(26,455,242	)		(120,382,579	)
Net decrease from capital share transactions		(5,920,937	)		(1,941,456	)
Net decrease in net assets		(7,447,940	)		(1,221,568	)
Net assets:
Beginning of period		13,905,321			15,126,889
End of period	$	6,457,381		$	13,905,321
Undistributed net investment income at end of period	$	47,117		$	28,715
Capital share activity:
Shares sold
A-Class		39,115			253,969
C-Class		15,158			91,046
H-Class		487,781			2,697,009
Shares issued from reinvestment of distributions
A-Class		—			41
C-Class		—			86
H-Class		—			296
Shares redeemed
A-Class		(45,249	)		(267,091	)
C-Class		(42,452	)		(74,102	)
H-Class		(599,911	)		(2,746,513	)
Net decrease in shares		(145,558	)		(45,259	)

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a				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		$	45.68		$	43.04		$	36.18		$	30.88		$	31.43		$	30.45
Income (loss) from investment operations:
Net investment income (loss)b			.10			.11			(.03	)		.07			.06			.02
Net gain (loss) on investments (realized and unrealized)			(5.74	)		2.58			7.08			5.23			(.61	)		3.64
Total from investment operations			(5.64	)		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		$	40.04		$	45.68		$	43.04		$	36.18		$	30.88		$	31.43
Total Returnc			(12.35	%)		6.25	%		19.49	%		17.16	%		(1.75	%)		12.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	1,423		$	1,904		$	2,357		$	1,571		$	6,817		$	785
Ratios to average net assets:
Net investment income (loss)			0.44	%		0.26	%		(0.06	%)		0.23	%		0.22	%		0.08	%
Total expenses			1.49	%		1.51	%		1.52	%		1.51	%		1.49	%		1.53	%
Portfolio turnover rate			178	%		638	%		506	%		757	%		619	%		407	%

C-Class	Period Ended September 30, 2015a				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		$	41.59		$	39.48		$	33.46		$	28.78		$	29.53		$	28.96
Income (loss) from investment operations:
Net investment income (loss)b			(.06	)		(.18	)		(.25	)		(.13	)		(.16	)		(.23	)
Net gain (loss) on investments (realized and unrealized)			(5.21	)		2.34			6.46			4.81			(.59	)		3.48
Total from investment operations			(5.27	)		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		$	36.32		$	41.59		$	39.48		$	33.46		$	28.78		$	29.53
Total Returnc			(12.67	%)		5.47	%		18.57	%		16.26	%		(2.54	%)		12.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$	1,657		$	3,033		$	2,207		$	3,413		$	2,194		$	2,311
Ratios to average net assets:
Net investment income (loss)			(0.29	%)		(0.44	%)		(0.71	%)		(0.45	%)		(0.60	%)		(0.83	%)
Total expenses			2.24	%		2.26	%		2.28	%		2.26	%		2.26	%		2.30	%
Portfolio turnover rate			178	%		638	%		506	%		757	%		619	%		407	%

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	45.62		$	42.98		$	36.16		$	30.86		$	31.42		$	30.43
Income (loss) from investment operations:
Net investment income (loss)b		.10			.11			.06			.08			.01			(.06	)
Net gain (loss) on investments (realized and unrealized)		(5.73	)		2.58			6.95			5.22			(.57	)		3.73
Total from investment operations		(5.63	)		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	$	39.99		$	45.62		$	42.98		$	36.16		$	30.86		$	31.42
Total Returnc		(12.34	%)		6.26	%		19.39	%		17.17	%		(1.78	%)		12.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,377		$	8,968		$	10,563		$	78,237		$	18,838		$	54,206
Ratios to average net assets:
Net investment income (loss)		0.46	%		0.25	%		0.15	%		0.24	%		0.02	%		(0.19	%)
Total expenses		1.48	%		1.51	%		1.52	%		1.52	%		1.51	%		1.54	%
Portfolio turnover rate		178	%		638	%		506	%		757	%		619	%		407	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
ABIOMED, Inc.	2.3%
Take-Two Interactive Software, Inc.	2.0%
Universal Insurance Holdings, Inc.	1.9%
Gentherm, Inc.	1.9%
Lannett Company, Inc.	1.8%
General Communication, Inc. — Class A	1.7%
LendingTree, Inc.	1.6%
TASER International, Inc.	1.6%
CoreSite Realty Corp.	1.5%
PGT, Inc.	1.4%
Top Ten Total	17.7%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 37

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Non-cyclical - 26.3%
ABIOMED, Inc.*		9,368	$	868,976
Lannett Company, Inc.*		16,567		687,862
LendingTree, Inc.*		6,651		618,743
MiMedx Group, Inc.*		52,771		509,240
On Assignment, Inc.*		13,492		497,855
Repligen Corp.*		17,465		486,400
AMN Healthcare Services, Inc.*		15,859		475,928
Supernus Pharmaceuticals, Inc.*		32,575		457,027
Depomed, Inc.*		21,252		400,600
Cal-Maine Foods, Inc.		7,271		397,070
Nektar Therapeutics*		35,138		385,112
Natus Medical, Inc.*		9,336		368,305
Ligand Pharmaceuticals, Inc. — Class B*		3,875		331,894
ExamWorks Group, Inc.*		10,851		317,283
Cambrex Corp.*		7,827		310,575
Chemed Corp.		2,265		302,310
Calavo Growers, Inc.		6,759		301,722
Cynosure, Inc. — Class A*		9,842		295,654
Albany Molecular Research, Inc.*		13,906		242,243
Snyder’s-Lance, Inc.		7,044		237,594
Ensign Group, Inc.		5,517		235,190
Helen of Troy Ltd.*		2,481		221,553
Anika Therapeutics, Inc.*		6,795		216,285
Cantel Medical Corp.		3,592		203,666
Abaxis, Inc.		4,205		184,978
Impax Laboratories, Inc.*		4,551		160,241
J&J Snack Foods Corp.		1,137		129,231
Affymetrix, Inc.*		14,960		127,758
Total Consumer, Non-cyclical				9,971,295
Financial - 21.8%
Universal Insurance Holdings, Inc.		23,857		704,736
CoreSite Realty Corp.		11,041		567,949
Bank Mutual Corp.		57,959		445,125
Chesapeake Lodging Trust		16,319		425,273
Sabra Health Care REIT, Inc.		17,772		411,955
American Assets Trust, Inc.		9,421		384,942
HFF, Inc. — Class A		10,805		364,777
BofI Holding, Inc.*		2,764		356,086
DiamondRock Hospitality Co.		29,574		326,793
Post Properties, Inc.		5,467		318,671
Universal Health Realty Income Trust		6,712		315,061
Home BancShares, Inc.		7,757		314,158
First Midwest Bancorp, Inc.		16,810		294,847
Glacier Bancorp, Inc.		11,066		292,032
Retail Opportunity Investments Corp.		16,318		269,900
MB Financial, Inc.		8,248		269,215
PrivateBancorp, Inc. — Class A		6,802		260,721
Boston Private Financial Holdings, Inc.		22,245		260,267
PRA Group, Inc.*		4,244		224,592
HCI Group, Inc.		5,564		215,716
Pinnacle Financial Partners, Inc.		4,300		212,463
Medical Properties Trust, Inc.		17,749		196,304
Education Realty Trust, Inc.		5,423		178,688
Healthcare Realty Trust, Inc.		6,735		167,365
Inland Real Estate Corp.		16,949		137,287
Cousins Properties, Inc.		13,010		119,952
CareTrust REIT, Inc.		9,314		105,714
Enova International, Inc.*		10,290		105,164
Total Financial				8,245,753
Consumer, Cyclical - 17.1%
Gentherm, Inc.*		15,611		701,246
Pinnacle Entertainment, Inc.*		15,685		530,781
G-III Apparel Group Ltd.*		7,693		474,350
Meritage Homes Corp.*		12,451		454,711
CalAtlantic Group, Inc.*		56,790		454,320
Allegiant Travel Co. — Class A		1,881		406,766
Ryland Group, Inc.		9,223		376,575
Papa John’s International, Inc.		4,880		334,182
DTS, Inc.*		11,542		308,171
Popeyes Louisiana Kitchen, Inc.*		4,871		274,530
BJ’s Restaurants, Inc.*		5,784		248,886
Winnebago Industries, Inc.		12,036		230,489
Texas Roadhouse, Inc. — Class A		6,124		227,813
Select Comfort Corp.*		9,532		208,560
Sonic Corp.		8,995		206,435
Outerwall, Inc.		3,448		196,295
Marriott Vacations Worldwide Corp.		2,223		151,475
Universal Electronics, Inc.*		3,390		142,482
Wolverine World Wide, Inc.		6,473		140,076
Zumiez, Inc.*		8,149		127,368
Scientific Games Corp. — Class A*		9,743		101,814
Francesca’s Holdings Corp.*		8,007		97,926
Iconix Brand Group, Inc.*		6,454		87,258
Total Consumer, Cyclical				6,482,509
Industrial - 13.5%
TASER International, Inc.*		26,668		587,363
PGT, Inc.*		43,675		536,329
Apogee Enterprises, Inc.		8,959		400,019
Methode Electronics, Inc.		12,070		385,033
Headwaters, Inc.*		18,875		354,850
Lydall, Inc.*		11,716		333,789
Heartland Express, Inc.		15,274		304,563
US Ecology, Inc.		6,821		297,737
ArcBest Corp.		10,338		266,410
Hillenbrand, Inc.		9,170		238,512
Bel Fuse, Inc. — Class B		11,875		230,850
Knight Transportation, Inc.		8,280		198,720
KapStone Paper and Packaging Corp.		11,206		185,011
Curtiss-Wright Corp.		2,932		183,015
Matson, Inc.		4,363		167,932
Saia, Inc.*		5,188		160,569
AZZ, Inc.		3,237		157,610

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Forward Air Corp.		2,541	$	105,426
Total Industrial				5,093,738
Technology - 8.7%
Take-Two Interactive Software, Inc.*		26,162		751,634
Synchronoss Technologies, Inc.*		13,395		439,355
Omnicell, Inc.*		12,295		382,375
Virtusa Corp.*		5,288		271,327
Super Micro Computer, Inc.*		9,852		268,566
Monolithic Power Systems, Inc.		5,079		260,045
Tessera Technologies, Inc.		6,987		226,449
Blackbaud, Inc.		3,843		215,669
Constant Contact, Inc.*		7,932		192,272
Electronics for Imaging, Inc.*		3,891		168,402
MicroStrategy, Inc. — Class A*		606		119,061
Total Technology				3,295,155
Communications - 7.1%
General Communication, Inc. — Class A*		38,222		659,712
LogMeIn, Inc.*		7,799		531,580
j2 Global, Inc.		4,674		331,153
DHI Group, Inc.*		40,335		294,849
comScore, Inc.*		6,289		290,237
EW Scripps Co. — Class A		10,763		190,182
Consolidated Communications Holdings, Inc.		7,481		144,159
ViaSat, Inc.*		1,998		128,451
VASCO Data Security International, Inc.*		7,179		122,330
Total Communications				2,692,653
Energy - 3.1%
Synergy Resources Corp.*		50,819		498,026
Carrizo Oil & Gas, Inc.*		13,639		416,535
Flotek Industries, Inc.*		15,398		257,147
Total Energy				1,171,708
Basic Materials - 1.9%
Deltic Timber Corp.		3,556		212,684
Neenah Paper, Inc.		3,094		180,318
US Silica Holdings, Inc.		10,262		144,592
Balchem Corp.		2,317		140,804
Century Aluminum Co.*		10,186		46,856
Total Basic Materials				725,254
Total Common Stocks
(Cost $33,895,726)				37,678,065

	Face Amount
REPURCHASE AGREEMENTS††,1 - 1.3%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	280,896		280,896
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		107,518		107,518
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		100,904		100,904
Total Repurchase Agreements
(Cost $489,318)				489,318
Total Investments - 100.8%
(Cost $34,385,044)			$	38,167,383
Other Assets & Liabilities, net - (0.8)%				(310,057	)
Total Net Assets - 100.0%			$	37,857,326

*	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.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $33,895,726)	$	37,678,065
Repurchase agreements, at value (cost $489,318)		489,318
Total investments (cost $34,385,044)		38,167,383
Receivables:
Securities sold		925,051
Fund shares sold		197,438
Dividends		36,726
Securities lending income		46
Total assets		39,326,644
Liabilities:
Payable for:
Fund shares redeemed		1,396,016
Management fees		27,042
Distribution and service fees		12,819
Transfer agent and administrative fees		9,014
Portfolio accounting fees		3,605
Miscellaneous		20,822
Total liabilities		1,469,318
Commitments and contingent liabilities (Note 12)		—
Net assets	$	37,857,326
Net assets consist of:
Paid in capital	$	38,655,800
Accumulated net investment loss		(252,544	)
Accumulated net realized loss on investments		(4,328,269	)
Net unrealized appreciation on investments		3,782,339
Net assets	$	37,857,326
A-Class:
Net assets	$	3,975,771
Capital shares outstanding		74,251
Net asset value per share	$	53.55
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.22
C-Class:
Net assets	$	4,919,647
Capital shares outstanding		100,076
Net asset value per share	$	49.16
H-Class:
Net assets	$	28,961,908
Capital shares outstanding		540,990
Net asset value per share	$	53.54

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	273,929
Income from securities lending, net		18,211
Interest		92
Total investment income		292,232
Expenses:
Management fees		263,611
Transfer agent and administrative fees		87,870
Distribution and service fees:
A-Class		5,847
C-Class		29,984
H-Class		74,527
Portfolio accounting fees		35,148
Custodian fees		4,049
Trustees’ fees*		1,853
Line of credit fees		209
Miscellaneous		41,678
Total expenses		544,776
Net investment loss		(252,544	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,247,358	)
Net realized loss		(2,247,358	)
Net change in unrealized appreciation (depreciation) on:
Investments		(3,768,642	)
Securities sold short		(16	)
Net change in unrealized appreciation (depreciation)		(3,768,658	)
Net realized and unrealized loss		(6,016,016	)
Net decrease in net assets resulting from operations	$	(6,268,560	)

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

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(252,544	)	$	(188,117	)
Net realized gain (loss) on investments		(2,247,358	)		2,956,093
Net change in unrealized appreciation (depreciation) on investments		(3,768,658	)		2,390,655
Net increase (decrease) in net assets resulting from operations		(6,268,560	)		5,158,631
Capital share transactions:
Proceeds from sale of shares
A-Class		5,827,947			1,853,974
C-Class		3,603,188			4,335,594
H-Class		96,853,827			126,430,453
Cost of shares redeemed
A-Class		(4,224,732	)		(6,513,702	)
C-Class		(3,508,472	)		(3,479,599	)
H-Class		(113,496,304	)		(97,243,555	)
Net increase (decrease) from capital share transactions		(14,944,546	)		25,383,165
Net increase (decrease) in net assets		(21,213,106	)		30,541,796
Net assets:
Beginning of period		59,070,432			28,528,636
End of period	$	37,857,326		$	59,070,432
Accumulated net investment loss at end of period	$	(252,544	)	$	—
Capital share activity:
Shares sold
A-Class		98,349			33,948
C-Class		66,310			85,842
H-Class		1,627,316			2,360,921
Shares redeemed
A-Class		(72,052	)		(123,092	)
C-Class		(66,376	)		(72,433	)
H-Class		(1,949,073	)		(1,818,920	)
Net increase (decrease) in shares		(295,526	)		466,266

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	58.90		$	52.99		$	41.94		$	37.97		$	36.06		$	28.49
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.46	)		(.31	)		(.12	)		(.35	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		(5.17	)		6.37			11.36			4.09			2.26			7.91
Total from investment operations		(5.35	)		5.91			11.05			3.97			1.91			7.57
Net asset value, end of period	$	53.55		$	58.90		$	52.99		$	41.94		$	37.97		$	36.06
Total Returnc		(9.08	%)		11.15	%		26.35	%		10.46	%		5.30	%		26.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,976		$	2,825		$	7,265		$	995		$	1,018		$	2,115
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.88	%)		(0.60	%)		(0.31	%)		(1.00	%)		(1.15	%)
Total expenses		1.49	%		1.51	%		1.53	%		1.51	%		1.52	%		1.54	%
Portfolio turnover rate		127	%		380	%		677	%		645	%		500	%		732	%

C-Class	Period Ended September 30, 2015a			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	$	54.28		$	49.21		$	39.24		$	35.79		$	34.25		$	27.25
Income (loss) from investment operations:
Net investment income (loss)b		(.37	)		(.74	)		(.66	)		(.42	)		(.57	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(4.75	)		5.81			10.63			3.87			2.11			7.54
Total from investment operations		(5.12	)		5.07			9.97			3.45			1.54			7.00
Net asset value, end of period	$	49.16		$	54.28		$	49.21		$	39.24		$	35.79		$	34.25
Total Returnc		(9.43	%)		10.30	%		25.41	%		9.64	%		4.50	%		25.69	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,920		$	5,436		$	4,268		$	3,122		$	2,568		$	3,072
Ratios to average net assets:
Net investment income (loss)		(1.37	%)		(1.50	%)		(1.46	%)		(1.17	%)		(1.71	%)		(1.80	%)
Total expenses		2.24	%		2.25	%		2.28	%		2.26	%		2.26	%		2.29	%
Portfolio turnover rate		127	%		380	%		677	%		645	%		500	%		732	%

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	58.89		$	52.99		$	41.94		$	37.97		$	36.07		$	28.48
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.31	)		(.38	)		(.31	)		(.39	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		(5.15	)		6.21			11.43			4.28			2.29			7.93
Total from investment operations		(5.35	)		5.90			11.05			3.97			1.90			7.59
Net asset value, end of period	$	53.54		$	58.89		$	52.99		$	41.94		$	37.97		$	36.07
Total Returnc		(9.08	%)		11.13	%		26.35	%		10.46	%		5.27	%		26.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,962		$	50,810		$	16,996		$	5,844		$	29,214		$	92,084
Ratios to average net assets:
Net investment income (loss)		(0.66	%)		(0.58	%)		(0.77	%)		(0.81	%)		(1.10	%)		(1.07	%)
Total expenses		1.49	%		1.49	%		1.52	%		1.50	%		1.52	%		1.55	%
Portfolio turnover rate		127	%		380	%		677	%		645	%		500	%		732	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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)
Central Garden & Pet Co. — Class A	2.0%
Cash America International, Inc.	2.0%
SkyWest, Inc.	1.8%
Universal Corp.	1.7%
Pep Boys-Manny Moe & Jack	1.6%
Gibraltar Industries, Inc.	1.4%
Comfort Systems USA, Inc.	1.3%
Monster Worldwide, Inc.	1.3%
Seneca Foods Corp. — Class A	1.3%
Griffon Corp.	1.3%
Top Ten Total	15.7%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 100.0%
Industrial - 22.1%
Gibraltar Industries, Inc.*		7,507	$	137,754
Comfort Systems USA, Inc.		4,762		129,812
Griffon Corp.		7,991		126,018
Benchmark Electronics, Inc.*		5,341		116,221
Universal Forest Products, Inc.		2,008		115,821
TTM Technologies, Inc.*		18,113		112,845
Sanmina Corp.*		4,045		86,442
Atlas Air Worldwide Holdings, Inc.*		2,391		82,633
Olympic Steel, Inc.		8,223		81,819
Aegion Corp. — Class A*		4,949		81,560
AAR Corp.		4,261		80,831
EMCOR Group, Inc.		1,745		77,216
National Presto Industries, Inc.		879		74,065
Roadrunner Transportation Systems, Inc.*		3,843		70,711
Briggs & Stratton Corp.		3,641		70,307
Plexus Corp.*		1,728		66,666
Tidewater, Inc.		5,032		66,121
Hub Group, Inc. — Class A*		1,812		65,975
Fabrinet*		3,456		63,348
Encore Wire Corp.		1,574		51,422
II-VI, Inc.*		3,032		48,755
Hornbeck Offshore Services, Inc.*		3,433		46,448
SPX Corp.		3,868		46,107
Tredegar Corp.		3,427		44,825
Kaman Corp.		1,222		43,808
Celadon Group, Inc.		2,160		34,603
General Cable Corp.		2,726		32,439
Chart Industries, Inc.*		1,579		30,333
Powell Industries, Inc.		988		29,739
Tetra Tech, Inc.		1,177		28,613
Astec Industries, Inc.		780		26,138
DXP Enterprises, Inc.*		884		24,116
TimkenSteel Corp.		1,650		16,698
LSB Industries, Inc.*		920		14,094
Total Industrial				2,224,303
Consumer, Non-cyclical - 20.7%
Central Garden & Pet Co. — Class A*		12,422		200,118
Universal Corp.		3,463		171,661
Monster Worldwide, Inc.*		20,215		129,779
Seneca Foods Corp. — Class A*		4,804		126,585
LHC Group, Inc.*		2,749		123,073
PharMerica Corp.*		4,165		118,578
Kelly Services, Inc. — Class A		8,295		117,291
Viad Corp.		4,031		116,859
Almost Family, Inc.*		2,858		114,463
SpartanNash Co.		4,124		106,605
ABM Industries, Inc.		3,274		89,413
Magellan Health, Inc.*		1,483		82,203
Brink’s Co.		2,895		78,194
Kindred Healthcare, Inc.		4,673		73,600
Insperity, Inc.		1,564		68,707
TrueBlue, Inc.*		2,924		65,702
Andersons, Inc.		1,645		56,029
Invacare Corp.		3,838		55,536
CDI Corp.		6,412		54,823
Central Garden & Pet Co.*		3,320		51,360
Hanger, Inc.*		3,430		46,785
Heidrick & Struggles International, Inc.		1,813		35,263
Total Consumer, Non-cyclical				2,082,627
Consumer, Cyclical - 20.0%
Cash America International, Inc.		7,060		197,469
SkyWest, Inc.		10,543		175,857
Pep Boys-Manny Moe & Jack*		12,859		156,752
M/I Homes, Inc.*		5,171		121,932
ScanSource, Inc.*		2,556		90,636
Big 5 Sporting Goods Corp.		7,479		77,632
Superior Industries International, Inc.		3,986		74,458
Essendant, Inc.		2,214		71,800
EZCORP, Inc. — Class A*		10,960		67,623
Perry Ellis International, Inc.*		3,047		66,913
Sonic Automotive, Inc. — Class A		3,194		65,222
Haverty Furniture Companies, Inc.		2,603		61,118
Veritiv Corp.*		1,598		59,510
Titan International, Inc.		8,942		59,107
Biglari Holdings, Inc.*		161		58,885
Fred’s, Inc. — Class A		4,872		57,733
Ruby Tuesday, Inc.*		8,807		54,691
VOXX International Corp. — Class A*		7,120		52,830
Express, Inc.*		2,890		51,644
Unifi, Inc.*		1,661		49,514
Marcus Corp.		2,451		47,402
Stage Stores, Inc.		4,430		43,591
Barnes & Noble, Inc.		3,482		42,167
Callaway Golf Co.		4,815		40,205
Arctic Cat, Inc.		1,644		36,464
Stein Mart, Inc.		3,653		35,361
Children’s Place, Inc.		612		35,294
Genesco, Inc.*		484		27,622
Movado Group, Inc.		980		25,313
Total Consumer, Cyclical				2,004,745
Financial - 11.1%
Stewart Information Services Corp.		2,942		120,357
United Fire Group, Inc.		3,364		117,908
Employers Holdings, Inc.		4,103		91,456
Selective Insurance Group, Inc.		2,766		85,912
Infinity Property & Casualty Corp.		1,046		84,245
Astoria Financial Corp.		4,701		75,686
Navigators Group, Inc.*		952		74,237
Horace Mann Educators Corp.		2,045		67,935
Forestar Group, Inc.*		3,870		50,891
Provident Financial Services, Inc.		2,318		45,201
Calamos Asset Management, Inc. — Class A		4,579		43,409

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Wintrust Financial Corp.		757	$	40,446
Safety Insurance Group, Inc.		701		37,959
First BanCorp*		10,005		35,618
OFG Bancorp		4,067		35,505
ProAssurance Corp.		616		30,227
Central Pacific Financial Corp.		1,271		26,653
Old National Bancorp		1,868		26,021
Capstead Mortgage Corp.		2,455		24,280
Total Financial				1,113,946
Energy - 9.5%
Green Plains, Inc.		4,737		92,182
Matrix Service Co.*		3,930		88,307
TETRA Technologies, Inc.*		13,620		80,494
Basic Energy Services, Inc.*		19,708		65,036
Northern Oil and Gas, Inc.*		13,707		60,585
Pioneer Energy Services Corp.*		26,435		55,514
Gulf Island Fabrication, Inc.		5,245		55,230
SEACOR Holdings, Inc.*		912		54,547
PDC Energy, Inc.*		928		49,193
Unit Corp.*		3,700		41,662
Cloud Peak Energy, Inc.*		13,495		35,492
Tesco Corp.		4,530		32,344
CARBO Ceramics, Inc.		1,684		31,979
Newpark Resources, Inc.*		5,807		29,732
Geospace Technologies Corp.*		2,089		28,849
FutureFuel Corp.		2,818		27,842
Exterran Holdings, Inc.		1,389		25,002
Rex Energy Corp.*		11,750		24,323
Stone Energy Corp.*		4,243		21,045
Gulfmark Offshore, Inc. — Class A		3,386		20,688
Bristow Group, Inc.		475		12,426
ION Geophysical Corp.*		29,522		11,514
Penn Virginia Corp.*		14,685		7,783
Total Energy				951,769
Technology - 6.4%
Insight Enterprises, Inc.*		4,697		121,417
SYNNEX Corp.		1,218		103,603
Digi International, Inc.*		7,891		93,035
Ciber, Inc.*		27,809		88,432
ManTech International Corp. — Class A		2,300		59,110
CACI International, Inc. — Class A*		745		55,108
Sykes Enterprises, Inc.*		1,902		48,501
Engility Holdings, Inc.		1,806		46,559
Cohu, Inc.		3,051		30,083
Total Technology				645,848
Basic Materials - 5.7%
OM Group, Inc.		3,121		102,649
Kraton Performance Polymers, Inc.*		5,168		92,507
Stepan Co.		2,130		88,629
Kaiser Aluminum Corp.		755		60,589
A. Schulman, Inc.		1,753		56,920
Materion Corp.		1,688		50,674
PH Glatfelter Co.		2,477		42,654
American Vanguard Corp.		2,698		31,189
Koppers Holdings, Inc.		1,298		26,181
Innospec, Inc.		520		24,185
Total Basic Materials				576,177
Communications - 4.0%
Liquidity Services, Inc.*		13,048		96,424
Scholastic Corp.		1,858		72,388
Blucora, Inc.*		4,780		65,820
Anixter International, Inc.*		850		49,113
Harte-Hanks, Inc.		11,481		40,528
Spok Holdings, Inc.		1,939		31,916
NETGEAR, Inc.*		919		26,808
Black Box Corp.		1,114		16,420
Total Communications				399,417
Utilities - 0.5%
Laclede Group, Inc.		523		28,519
Avista Corp.		780		25,935
Total Utilities				54,454
Total Common Stocks
(Cost $7,946,832)				10,053,286

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
S&P SMALLCAP 600® PURE VALUE FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.7%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	38,159	$	38,159
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		14,606		14,606
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		13,708		13,708
Total Repurchase Agreements
(Cost $66,473)				66,473
Total Investments - 100.7%
(Cost $8,013,305)			$	10,119,759
Other Assets & Liabilities, net - (0.7)%				(70,939	)
Total Net Assets - 100.0%			$	10,048,820

*	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 Sector Classification in Other Information section.

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $7,946,832)	$	10,053,286
Repurchase agreements, at value (cost $66,473)		66,473
Total investments (cost $8,013,305)		10,119,759
Receivables:
Securities sold		957,270
Dividends		5,449
Fund shares sold		1,922
Total assets		11,084,400
Liabilities:
Payable for:
Fund shares redeemed		1,009,555
Management fees		9,584
Distribution and service fees		4,510
Transfer agent and administrative fees		3,195
Portfolio accounting fees		1,278
Miscellaneous		7,458
Total liabilities		1,035,580
Commitments and contingent liabilities (Note 12)		—
Net assets	$	10,048,820
Net assets consist of:
Paid in capital	$	36,870,956
Accumulated net investment loss		(44,283	)
Accumulated net realized loss on investments		(28,884,307	)
Net unrealized appreciation on investments		2,106,454
Net assets	$	10,048,820
A-Class:
Net assets	$	1,627,915
Capital shares outstanding		75,208
Net asset value per share	$	21.65
Maximum offering price per share (Net asset value divided by 95.25%)	$	22.73
C-Class:
Net assets	$	1,951,007
Capital shares outstanding		102,524
Net asset value per share	$	19.03
H-Class:
Net assets	$	6,469,898
Capital shares outstanding		300,071
Net asset value per share	$	21.56

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $380)	$	93,828
Income from securities lending, net		7,211
Interest		22
Total investment income		101,061
Expenses:
Management fees		68,187
Transfer agent and administrative fees		22,729
Distribution and service fees:
A-Class		2,584
C-Class		13,675
H-Class		16,726
Portfolio accounting fees		9,091
Custodian fees		1,045
Trustees’ fees*		601
Line of credit fees		45
Miscellaneous		10,661
Total expenses		145,344
Net investment loss		(44,283	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(713,664	)
Net realized loss		(713,664	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,212,464	)
Net change in unrealized appreciation (depreciation)		(1,212,464	)
Net realized and unrealized loss		(1,926,128	)
Net decrease in net assets resulting from operations	$	(1,970,411	)

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

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(44,283	)	$	(30,655	)
Net realized gain (loss) on investments		(713,664	)		2,268,375
Net change in unrealized appreciation (depreciation) on investments		(1,212,464	)		(1,503,522	)
Net increase (decrease) in net assets resulting from operations		(1,970,411	)		734,198
Capital share transactions:
Proceeds from sale of shares
A-Class		2,397,225			3,277,688
C-Class		578,257			2,725,130
H-Class		28,187,819			108,245,422
Cost of shares redeemed
A-Class		(2,025,481	)		(2,703,495	)
C-Class		(1,282,280	)		(4,064,150	)
H-Class		(31,884,863	)		(120,076,906	)
Net decrease from capital share transactions		(4,029,323	)		(12,596,311	)
Net decrease in net assets		(5,999,734	)		(11,862,113	)
Net assets:
Beginning of period		16,048,554			27,910,667
End of period	$	10,048,820		$	16,048,554
Accumulated net investment loss at end of period	$	(44,283	)	$	—
Capital share activity:
Shares sold
A-Class		95,639			133,032
C-Class		25,289			123,385
H-Class		1,206,346			4,385,027
Shares redeemed
A-Class		(82,113	)		(110,967	)
C-Class		(58,096	)		(185,935	)
H-Class		(1,348,754	)		(4,818,402	)
Net decrease in shares		(161,689	)		(473,860	)

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	25.81		$	25.66		$	19.55		$	17.07		$	17.42		$	19.60
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.03	)		(.09	)		(.01	)		(.12	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(4.11	)		.18			6.20			2.49			(.23	)		1.20
Total from investment operations		(4.16	)		.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	$	21.65		$	25.81		$	25.66		$	19.55		$	17.07		$	17.42
Total Returnc		(16.12	%)		0.58	%		31.25	%		14.53	%		(2.01	%)		6.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,628		$	1,592		$	1,016		$	1,551		$	961		$	8,845
Ratios to average net assets:
Net investment income (loss)		(0.42	%)		(0.10	%)		(0.39	%)		(0.08	%)		(0.71	%)		(0.73	%)
Total expenses		1.49	%		1.50	%		1.52	%		1.51	%		1.53	%		1.53	%
Portfolio turnover rate		154	%		579	%		658	%		655	%		744	%		692	%

C-Class	Period Ended September 30, 2015a			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	$	22.78		$	22.81		$	17.51		$	15.40		$	15.85		$	18.27
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.19	)		(.22	)		(.13	)		(.20	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		(3.62	)		.16			5.52			2.24			(.25	)		1.06
Total from investment operations		(3.75	)		(.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	$	19.03		$	22.78		$	22.81		$	17.51		$	15.40		$	15.85
Total Returnc		(16.46	%)		(0.13	%)		30.27	%		13.70	%		(2.84	%)		6.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,951		$	3,082		$	4,514		$	3,932		$	1,955		$	2,243
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(0.84	%)		(1.10	%)		(0.84	%)		(1.39	%)		(1.37	%)
Total expenses		2.24	%		2.25	%		2.27	%		2.26	%		2.26	%		2.28	%
Portfolio turnover rate		154	%		579	%		658	%		655	%		744	%		692	%

50 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			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	$	25.71		$	25.55		$	19.47		$	17.00		$	17.38		$	19.57
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.01	)		(.06	)		(.06	)		(.11	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(4.11	)		.17			6.14			2.53			(.27	)		1.17
Total from investment operations		(4.15	)		.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	$	21.56		$	25.71		$	25.55		$	19.47		$	17.00		$	17.38
Total Returnc		(16.14	%)		0.63	%		31.23	%		14.53	%		(2.19	%)		6.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,470		$	11,374		$	22,380		$	30,743		$	24,298		$	15,980
Ratios to average net assets:
Net investment income (loss)		(0.35	%)		(0.03	%)		(0.25	%)		(0.32	%)		(0.69	%)		(0.56	%)
Total expenses		1.49	%		1.50	%		1.53	%		1.51	%		1.49	%		1.54	%
Portfolio turnover rate		154	%		579	%		658	%		655	%		744	%		692	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 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”).

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	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Country	% of Common Stocks			Value
United Kingdom		34	%	$	1,243,383
Switzerland		22	%		795,528
Germany		15	%		537,487
France		13	%		454,094
Spain		5	%		176,480
Netherlands		3	%		115,508
Denmark		3	%		102,351
Other		5	%		186,342
Total Common Stocks		100	%	$	3,611,173

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	10.0%
Nestle S.A. ADR	4.1%
Novartis AG ADR	4.0%
Roche Holding AG ADR	3.2%
HSBC Holdings plc ADR	2.6%
Sanofi ADR	2.0%
Total S.A. ADR	1.9%
Bayer AG ADR	1.8%
Novo Nordisk A/S ADR	1.8%
British American Tobacco plc ADR	1.8%
Top Ten Total	33.2%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 62.9%
Consumer, Non-cyclical - 27.2%
Nestle S.A. ADR		3,126	$	235,200
Novartis AG ADR		2,506		230,352
Roche Holding AG ADR		5,510		181,555
Sanofi ADR		2,367		112,361
Bayer AG ADR		818		104,737
Novo Nordisk A/S ADR		1,887		102,351
British American Tobacco plc ADR		919		101,164
GlaxoSmithKline plc ADR		2,408		92,588
Anheuser-Busch InBev S.A. ADR		764		81,228
AstraZeneca plc ADR		2,490		79,232
Diageo plc ADR		613		66,075
Unilever N.V. — Class Y		1,531		61,546
Reckitt Benckiser Group plc ADR		3,257		59,440
Unilever plc ADR		1,287		52,484
Total Consumer, Non-cyclical				1,560,313
Financial - 15.0%
HSBC Holdings plc ADR		3,886		147,202
Banco Santander S.A. ADR		13,909		73,440
Allianz SE ADR		4,538		70,929
Lloyds Banking Group plc ADR		15,018		69,083
BNP Paribas S.A. ADR		2,164		64,011
UBS Group AG		3,411		63,172
Barclays plc ADR		4,124		60,953
ING Groep N.V. ADR		3,819		53,962
Prudential plc ADR		1,265		53,307
Banco Bilbao Vizcaya Argentaria S.A. ADR		6,144		51,425
AXA S.A. ADR		2,070		50,363
Zurich Insurance Group AG ADR*		1,467		36,030
Deutsche Bank AG		1,273		34,320
Credit Suisse Group AG ADR*		1,348		32,392
Total Financial				860,589
Energy - 6.7%
Total S.A. ADR		2,437		108,957
BP plc ADR		2,994		91,497
Royal Dutch Shell plc — Class A ADR		1,928		91,368
BG Group plc ADR		3,340		48,664
Eni SpA ADR		1,337		41,942
Total Energy				382,428
Communications - 4.2%
Vodafone Group plc ADR		2,615		83,000
Deutsche Telekom AG ADR		3,140		55,798
BT Group plc ADR		828		52,785
Telefonica S.A. ADR		4,287		51,615
Total Communications				243,198
Consumer, Cyclical - 2.8%
Daimler AG ADR		994		72,403
LVMH Moet Hennessy Louis Vuitton SE ADR		1,347		45,811
Cie Financiere Richemont S.A. ADR		5,172		40,135
Total Consumer, Cyclical				158,349
Basic Materials - 2.6%
BASF SE ADR		905		69,151
Rio Tinto plc ADR		1,206		40,787
Air Liquide S.A. ADR		1,699		40,147
Total Basic Materials				150,085
Industrial - 2.4%
Siemens AG ADR		766		68,404
ABB Ltd. ADR*		2,256		39,864
Schneider Electric SE ADR		2,902		32,444
Total Industrial				140,712
Technology - 1.1%
SAP SE ADR		953		61,745
Utilities - 0.9%
National Grid plc ADR		772		53,754
Total Common Stocks
(Cost $3,496,738)				3,611,173
MUTUAL FUNDS† - 10.0%
Guggenheim Strategy Fund I1		23,153		576,039
Total Mutual Funds
(Cost $576,169)				576,039

	Face Amount
REPURCHASE AGREEMENTS††,2 - 28.7%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	944,803		944,803
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		361,639		361,639
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		339,393		339,393
Total Repurchase Agreements
(Cost $1,645,835)				1,645,835
Total Investments - 101.6%
(Cost $5,718,742)			$	5,833,047
Other Assets & Liabilities, net - (1.6)%				(89,440	)
Total Net Assets - 100.0%			$	5,743,607

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
EUROPE 1.25x STRATEGY FUND

	Contracts		Unrealized Loss
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2015 Euro FX Futures Contracts (Aggregate Value of Contracts $3,496,250)		25	$	(9,232	)
EQUITY FUTURES CONTRACTS PURCHASED††
December 2015 STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $3,546,539)		107	$	(36,486	)

*	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	Affiliated issuer — See Note 10.
2	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $3,496,738)	$	3,611,173
Investments in affiliated issuers, at value (cost $576,169)		576,039
Repurchase agreements, at value (cost $1,645,835)		1,645,835
Total investments (cost $5,718,742)		5,833,047
Foreign currency, at value (cost $19,157)		19,157
Segregated cash with broker		658,326
Receivables:
Variation margin		70,410
Fund shares sold		54,285
Dividends		31,435
Foreign taxes reclaim		7,874
Swap settlement		1,009
Interest		2
Total assets		6,675,545
Liabilities:
Overdraft due to custodian bank		19,233
Payable for:
Fund shares redeemed		896,734
Management fees		5,727
Distribution and service fees		2,238
Transfer agent and administrative fees		1,591
Securities purchased		1,035
Portfolio accounting fees		636
Miscellaneous		4,744
Total liabilities		931,938
Commitments and contingent liabilities (Note 12)		—
Net assets	$	5,743,607
Net assets consist of:
Paid in capital	$	20,606,916
Undistributed net investment income		76,348
Accumulated net realized loss on investments		(15,008,386	)
Net unrealized appreciation on investments		68,729
Net assets	$	5,743,607
A-Class:
Net assets	$	1,250,004
Capital shares outstanding		89,727
Net asset value per share	$	13.93
Maximum offering price per share (Net asset value divided by 95.25%)	$	14.62
C-Class:
Net assets	$	471,639
Capital shares outstanding		38,358
Net asset value per share	$	12.30
H-Class:
Net assets	$	4,021,964
Capital shares outstanding		291,138
Net asset value per share	$	13.81

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $10,498)	$	124,461
Dividends from securities of affiliated issuers		12,591
Interest		891
Income from securities lending, net		183
Total investment income		138,126
Expenses:
Management fees		65,681
Transfer agent and administrative fees		18,245
Distribution and service fees:
A-Class		1,873
C-Class		6,191
H-Class		14,824
Portfolio accounting fees		7,298
Custodian fees		840
Trustees’ fees*		427
Line of credit fees		36
Miscellaneous		9,780
Total expenses		125,195
Net investment income		12,931
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(809,555	)
Investments in affiliated issuers		71
Futures contracts		(2,412,491	)
Foreign currency		16,914
Net realized loss		(3,205,061	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(471,498	)
Investments in affiliated issuers		(130	)
Futures contracts		115,316
Foreign currency		(690	)
Net change in unrealized appreciation (depreciation)		(357,002	)
Net realized and unrealized loss		(3,562,063	)
Net decrease in net assets resulting from operations	$	(3,549,132	)

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

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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	12,931		$	62,790
Net realized gain (loss) on investments		(3,205,061	)		201,415
Net change in unrealized appreciation (depreciation) on investments		(357,002	)		(1,066,510	)
Net decrease in net assets resulting from operations		(3,549,132	)		(802,305	)
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		12,646,711			10,994,698
C-Class		7,848,579			18,931,297
H-Class		166,022,932			200,800,044
Distributions reinvested
A-Class		—			2,063
C-Class		—			1,530
H-Class		—			21,551
Cost of shares redeemed
A-Class		(12,467,742	)		(12,260,495	)
C-Class		(8,287,591	)		(18,280,475	)
H-Class		(168,378,058	)		(202,112,879	)
Net decrease from capital share transactions		(2,615,169	)		(1,902,666	)
Net decrease in net assets		(6,164,301	)		(2,731,406	)
Net assets:
Beginning of period		11,907,908			14,639,314
End of period	$	5,743,607		$	11,907,908
Undistributed net investment income at end of period	$	76,348		$	63,417
Capital share activity:
Shares sold
A-Class		810,964			706,168
C-Class		562,131			1,263,133
H-Class		10,569,339			12,265,910
Shares issued from reinvestment of distributions
A-Class		—			126
C-Class		—			105
H-Class		—			1,328
Shares redeemed
A-Class		(796,145	)		(778,025	)
C-Class		(598,085	)		(1,223,396	)
H-Class		(10,908,637	)		(12,306,127	)
Net decrease in shares		(360,433	)		(70,778	)

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	15.55		$	17.40		$	14.16		$	12.57		$	14.06		$	14.18
Income (loss) from investment operations:
Net investment income (loss)b		—	e		.05			.16			(.03	)		.10			.08
Net gain (loss) on investments (realized and unrealized)		(1.62	)		(1.85	)		3.08			1.65			(1.59	)		(.20	)
Total from investment operations		(1.62	)		(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	$	13.93		$	15.55		$	17.40		$	14.16		$	12.57		$	14.06
Total Returnc		(10.42	%)		(10.33	%)		22.88	%		12.92	%		(10.60	%)		(0.85	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,250		$	1,165		$	2,551		$	3,916		$	694		$	455
Ratios to average net assets:
Net investment income (loss)		—	f		0.33	%		1.00	%		(0.23	%)		0.77	%		0.66	%
Total expensesd		1.66	%		1.72	%		1.72	%		1.67	%		1.67	%		1.69	%
Portfolio turnover rate		618	%		608	%		654	%		903	%		318	%		515	%

C-Class	Period Ended September 30, 2015a			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	$	13.77		$	15.52		$	12.89		$	11.53		$	12.97		$	13.17
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.08	)		(.07	)		(.10	)		—	e		.03
Net gain (loss) on investments (realized and unrealized)		(1.42	)		(1.62	)		2.70			1.49			(1.44	)		(.23	)
Total from investment operations		(1.47	)		(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	$	12.30		$	13.77		$	15.52		$	12.89		$	11.53		$	12.97
Total Returnc		(10.68	%)		(10.94	%)		20.40	%		12.09	%		(11.10	%)		(1.52	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	472		$	1,023		$	535		$	402		$	439		$	638
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.50	%)		(0.48	%)		(0.83	%)		0.03	%		0.22	%
Total expensesd		2.40	%		2.48	%		2.47	%		2.42	%		2.43	%		2.43	%
Portfolio turnover rate		618	%		608	%		654	%		903	%		318	%		515	%

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	15.42		$	17.26		$	14.20		$	12.59		$	14.06		$	14.20
Income (loss) from investment operations:
Net investment income (loss)b		.02			.10			.03			(.02	)		.16			.09	��
Net gain (loss) on investments (realized and unrealized)		(1.63	)		(1.89	)		3.03			1.66			(1.63	)		(.23	)
Total from investment operations		(1.61	)		(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	$	13.81		$	15.42		$	17.26		$	14.20		$	12.59		$	14.06
Total Returnc		(10.44	%)		(10.36	%)		21.55	%		13.06	%		(10.46	%)		(0.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,022		$	9,719		$	11,553		$	10,752		$	7,759		$	23,238
Ratios to average net assets:
Net investment income (loss)		0.29	%		0.62	%		0.19	%		(0.18	%)		1.22	%		0.70	%
Total expensesd		1.65	%		1.72	%		1.71	%		1.67	%		1.68	%		1.69	%
Portfolio turnover rate		618	%		608	%		654	%		903	%		318	%		515	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net investment income is less than $0.01 per share.
f	Net investment income is less than 0.01%.

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

FUND PROFILE (Unaudited) September 30, 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 (the “underlying index”).

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	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.

Largest Holding (% of Total Net Assets)
Guggenheim Strategy Fund I	33.6%
Total	33.6%

“Largest Holding” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 59

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 33.6%
Guggenheim Strategy Fund I1		53,358	$	1,327,535
Total Mutual Funds
(Cost $1,327,210)				1,327,535

	Face Amount
REPURCHASE AGREEMENTS††,2 - 44.6%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	1,012,899		1,012,899
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		387,704		387,704
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		363,855		363,855
Total Repurchase Agreements
(Cost $1,764,458)				1,764,458
Total Investments - 78.2%
(Cost $3,091,668)			$	3,091,993
Other Assets & Liabilities, net - 21.8%				862,226
Total Net Assets - 100.0%			$	3,954,219

	Contracts		Unrealized Gain (Loss)
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2015 Japanese Yen Futures Contracts (Aggregate Value of Contracts $7,926,800)		76	$	32,803
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 Nikkei-225 (CME) Index Futures Contracts (Aggregate Value of Contracts $7,920,000)		90	$	(158,719	)

†	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 10.
2	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in affiliated issuers, at value (cost $1,327,210)	$	1,327,535
Repurchase agreements, at value (cost $1,764,458)		1,764,458
Total investments (cost $3,091,668)		3,091,993
Segregated cash with broker		444,000
Receivables:
Fund shares sold		327,258
Variation margin		113,071
Swap settlement		1,225
Dividends		736
Interest		2
Total assets		3,978,285
Liabilities:
Payable for:
Fund shares redeemed		13,966
Management fees		2,834
Legal fees		2,602
Distribution and service fees		1,015
Transfer agent and administrative fees		945
Securities purchased		727
Portfolio accounting fees		378
Miscellaneous		1,599
Total liabilities		24,066
Commitments and contingent liabilities (Note 12)		—
Net assets	$	3,954,219
Net assets consist of:
Paid in capital	$	8,138,564
Accumulated net investment loss		(72,170	)
Accumulated net realized loss on investments		(3,986,584	)
Net unrealized depreciation on investments		(125,591	)
Net assets	$	3,954,219
A-Class:
Net assets	$	775,931
Capital shares outstanding		39,785
Net asset value per share	$	19.50
Maximum offering price per share (Net asset value divided by 95.25%)	$	20.47
C-Class:
Net assets	$	204,727
Capital shares outstanding		11,042
Net asset value per share	$	18.54
H-Class:
Net assets	$	2,973,561
Capital shares outstanding		151,922
Net asset value per share	$	19.57

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	16,064
Interest		1,612
Total investment income		17,676
Expenses:
Management fees		45,050
Transfer agent and administrative fees		15,016
Distribution and service fees:
A-Class		1,393
C-Class		1,350
H-Class		13,286
Portfolio accounting fees		6,007
Custodian fees		691
Trustees’ fees*		332
Line of credit fees		55
Miscellaneous		6,666
Total expenses		89,846
Net investment loss		(72,170	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(196	)
Investments in affiliated issuers		3,000
Futures contracts		(2,132,250	)
Net realized loss		(2,129,446	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,831	)
Investments in affiliated issuers		325
Futures contracts		(139,488	)
Net change in unrealized appreciation (depreciation)		(141,994	)
Net realized and unrealized loss		(2,271,440	)
Net decrease in net assets resulting from operations	$	(2,343,610	)

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

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(72,170	)	$	(68,249	)
Net realized loss on investments		(2,129,446	)		(181,521	)
Net change in unrealized appreciation (depreciation) on investments		(141,994	)		(249,399	)
Net decrease in net assets resulting from operations		(2,343,610	)		(499,169	)
Capital share transactions:
Proceeds from sale of shares
A-Class		10,751,248			14,492,697
C-Class		5,294,470			10,475,739
H-Class		147,892,554			76,998,182
Cost of shares redeemed
A-Class		(10,444,527	)		(14,473,442	)
C-Class		(5,358,920	)		(10,254,244	)
H-Class		(159,462,650	)		(62,946,467	)
Net increase (decrease) from capital share transactions		(11,327,825	)		14,292,465
Net increase (decrease) in net assets		(13,671,435	)		13,793,296
Net assets:
Beginning of period		17,625,654			3,832,358
End of period	$	3,954,219		$	17,625,654
Accumulated net investment loss at end of period	$	(72,170	)	$	—
Capital share activity:
Shares sold
A-Class		451,554			736,387
C-Class		232,295			545,198
H-Class		6,190,254			3,746,308
Shares redeemed
A-Class		(430,952	)		(749,545	)
C-Class		(235,520	)		(536,530	)
H-Class		(6,759,560	)		(3,185,268	)
Net increase (decrease) in shares		(551,929	)		556,550

62 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			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	$	23.29		$	19.31		$	17.39		$	15.45		$	14.95		$	16.49
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.25	)		(.31	)		(.20	)		(.22	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(3.65	)		4.23			2.23			2.14			.72			(1.30	)
Total from investment operations		(3.79	)		3.98			1.92			1.94			.50			(1.54	)
Net asset value, end of period	$	19.50		$	23.29		$	19.31		$	17.39		$	15.45		$	14.95
Total Returnc		(16.27	%)		20.61	%		11.04	%		12.56	%		3.34	%		(9.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	776		$	447		$	624		$	2,025		$	1,428		$	5,931
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.27	%)		(1.50	%)		(1.40	%)		(1.49	%)		(1.45	%)
Total expensesd		1.48	%		1.54	%		1.52	%		1.51	%		1.51	%		1.55	%
Portfolio turnover rate		304	%		405	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			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	$	22.23		$	18.49		$	16.76		$	14.99		$	14.60		$	16.23
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.39	)		(.43	)		(.29	)		(.31	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		(3.47	)		4.13			2.16			2.06			.70			(1.32	)
Total from investment operations		(3.69	)		3.74			1.73			1.77			.39			(1.63	)
Net asset value, end of period	$	18.54		$	22.23		$	18.49		$	16.76		$	14.99		$	14.60
Total Returnc		(16.60	%)		20.23	%		10.32	%		11.81	%		2.67	%		(10.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	205		$	317		$	104		$	246		$	140		$	189
Ratios to average net assets:
Net investment income (loss)		(1.92	%)		(2.04	%)		(2.25	%)		(2.15	%)		(2.23	%)		(2.18	%)
Total expensesd		2.23	%		2.30	%		2.27	%		2.25	%		2.26	%		2.29	%
Portfolio turnover rate		304	%		405	%		—			—			—			—

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			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	$	23.38		$	19.38		$	17.44		$	15.49		$	14.98		$	16.48
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.26	)		(.30	)		(.20	)		(.22	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		(3.67	)		4.26			2.24			2.15			.73			(1.27	)
Total from investment operations		(3.81	)		4.00			1.94			1.95			.51			(1.50	)
Net asset value, end of period	$	19.57		$	23.38		$	19.38		$	17.44		$	15.49		$	14.98
Total Returnc		(16.30	%)		20.64	%		11.12	%		12.59	%		3.40	%		(9.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,974		$	16,862		$	3,104		$	9,020		$	4,574		$	5,356
Ratios to average net assets:
Net investment income (loss)		(1.18	%)		(1.28	%)		(1.50	%)		(1.40	%)		(1.48	%)		(1.44	%)
Total expensesd		1.48	%		1.54	%		1.52	%		1.50	%		1.51	%		1.54	%
Portfolio turnover rate		304	%		405	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 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.

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	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.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	21.7%
Guggenheim Strategy Fund II	21.0%
Total	42.7%

“Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 42.7%
Guggenheim Strategy Fund I1		254,789	$	6,339,151
Guggenheim Strategy Fund II1		246,824		6,133,582
Total Mutual Funds
(Cost $12,471,021)				12,472,733

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 20.5%
Federal Home Loan Bank2
0.15% due 12/02/15	$	3,000,000		2,999,433
0.36% due 06/01/16		3,000,000		2,994,816
Total Federal Home Loan Bank				5,994,249
Total Federal Agency Discount Notes
(Cost $5,991,905)				5,994,249
REPURCHASE AGREEMENTS††,3 - 54.2%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		9,096,712		9,096,712
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		3,481,922		3,481,922
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		3,267,736		3,267,736
Total Repurchase Agreements
(Cost $15,846,370)				15,846,370
Total Investments - 117.4%
(Cost $34,309,296)			$	34,313,352
Other Assets & Liabilities, net - (17.4)%				(5,081,184	)
Total Net Assets - 100.0%			$	29,232,168

	Contracts		Unrealized Gain
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2015 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $50,234,820)		521	$	270,134

	Units
OTC CURRENCY INDEX SWAP AGREEMENTS††
Goldman Sachs International November 2015 U.S. Dollar Index Swap, Terminating 11/16/154 (Notional Value $8,086,184)		83,948	$	51,439

†	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 10.
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 U.S. Dollar Index +/- financing at a variable rate.
	See Sector Classification in Other Information section.

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $5,991,905)	$	5,994,249
Investments in affiliated issuers, at value (cost $12,471,021)		12,472,733
Repurchase agreements, at value (cost $15,846,370)		15,846,370
Total investments (cost $34,309,296)		34,313,352
Segregated cash with broker		1,890,822
Unrealized appreciation on swap agreements		51,439
Receivables:
Variation margin		222,467
Fund shares sold		79,064
Dividends		5,274
Interest		17
Total assets		36,562,435
Liabilities:
Payable for:
Securities purchased		7,005,274
Swap settlement		145,578
Fund shares redeemed		69,953
Management fees		19,516
Distribution and service fees		6,603
Transfer agent and administrative fees		5,421
Portfolio accounting fees		2,168
Miscellaneous		75,754
Total liabilities		7,330,267
Commitments and contingent liabilities (Note 12)		—
Net assets	$	29,232,168
Net assets consist of:
Paid in capital	$	38,253,441
Accumulated net investment loss		(951,131	)
Accumulated net realized loss on investments		(8,395,771	)
Net unrealized appreciation on investments		325,629
Net assets	$	29,232,168
A-Class:
Net assets	$	4,616,342
Capital shares outstanding		88,487
Net asset value per share	$	52.17
Maximum offering price per share (Net asset value divided by 95.25%)	$	54.77
C-Class:
Net assets	$	1,941,992
Capital shares outstanding		40,411
Net asset value per share	$	48.06
H-Class:
Net assets	$	22,673,834
Capital shares outstanding		436,384
Net asset value per share	$	51.96

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	195,696
Interest		14,946
Total investment income		210,642
Expenses:
Management fees		372,679
Transfer agent and administrative fees		103,522
Distribution and service fees:
A-Class		9,400
C-Class		12,603
H-Class		90,971
Portfolio accounting fees		41,409
Registration fees		38,658
Custodian fees		5,327
Trustees’ fees*		3,677
Line of credit fees		1,704
Miscellaneous		25,859
Total expenses		705,809
Net investment loss		(495,167	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,673
Investments in affiliated issuers		63,623
Swap agreements		29,057
Futures contracts		(16,661,913	)
Net realized loss		(16,567,560	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(33,845	)
Investments in affiliated issuers		(31,930	)
Swap agreements		(1,913,017	)
Futures contracts		3,422,494
Net change in unrealized appreciation (depreciation)		1,443,702
Net realized and unrealized loss		(15,123,858	)
Net decrease in net assets resulting from operations	$	(15,619,025	)

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

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(495,167	)	$	(1,079,027	)
Net realized gain (loss) on investments		(16,567,560	)		42,278,489
Net change in unrealized appreciation (depreciation) on investments		1,443,702			(1,273,849	)
Net increase (decrease) in net assets resulting from operations		(15,619,025	)		39,925,613
Capital share transactions:
Proceeds from sale of shares
A-Class		32,502,233			67,660,509
C-Class		8,200,083			13,335,647
H-Class		290,410,171			803,295,701
Cost of shares redeemed
A-Class		(41,780,532	)		(61,334,808	)
C-Class		(9,829,772	)		(12,659,892	)
H-Class		(412,349,527	)		(687,933,691	)
Net increase (decrease) from capital share transactions		(132,847,344	)		122,363,466
Net increase (decrease) in net assets		(148,466,369	)		162,289,079
Net assets:
Beginning of period		177,698,537			15,409,458
End of period	$	29,232,168		$	177,698,537
Accumulated net investment loss at end of period	$	(951,131	)	$	(455,964	)
Capital share activity:
Shares sold
A-Class		613,873			1,496,935
C-Class		167,198			313,093
H-Class		5,461,923			17,612,624
Shares redeemed
A-Class		(808,185	)		(1,306,603	)
C-Class		(201,200	)		(297,401	)
H-Class		(7,872,559	)		(15,021,156	)
Net increase (decrease) in shares		(2,638,950	)		2,797,492

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	55.75		$	38.36		$	42.75		$	40.35		$	40.39		$	49.15
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.56	)		(.69	)		(.63	)		(.66	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		(3.27	)		17.95			(3.70	)		3.03			.62			(8.01	)
Total from investment operations		(3.58	)		17.39			(4.39	)		2.40			(.04	)		(8.76	)
Net asset value, end of period	$	52.17		$	55.75		$	38.36		$	42.75		$	40.35		$	40.39
Total Returnc		(6.42	%)		45.33	%		(10.27	%)		5.95	%		(0.07	%)		(17.83	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,616		$	15,765		$	3,547		$	10,427		$	6,875		$	6,115
Ratios to average net assets:
Net investment income (loss)		(1.18	%)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)
Total expensesd		1.68	%		1.68	%		1.74	%		1.66	%		1.68	%		1.71	%
Portfolio turnover rate		145	%		299	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	51.55		$	35.74		$	40.15		$	38.14		$	38.48		$	47.21
Income (loss) from investment operations:
Net investment income (loss)b		(.47	)		(.81	)		(.94	)		(.90	)		(.90	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		(3.02	)		16.62			(3.47	)		2.91			.56			(7.68	)
Total from investment operations		(3.49	)		15.81			(4.41	)		2.01			(.34	)		(8.73	)
Net asset value, end of period	$	48.06		$	51.55		$	35.74		$	40.15		$	38.14		$	38.48
Total Returnc		(6.77	%)		44.24	%		(10.96	%)		5.27	%		(0.94	%)		(18.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,942		$	3,836		$	2,099		$	3,530		$	4,091		$	4,028
Ratios to average net assets:
Net investment income (loss)		(1.90	%)		(1.96	%)		(2.48	%)		(2.29	%)		(2.36	%)		(2.29	%)
Total expensesd		2.44	%		2.44	%		2.50	%		2.42	%		2.44	%		2.46	%
Portfolio turnover rate		145	%		299	%		—			—			—			—

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e			Year Ended March 31, 2011e
Per Share Data
Net asset value, beginning of period	$	55.53		$	38.21		$	42.60		$	40.17		$	40.20		$	48.92
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.56	)		(.69	)		(.63	)		(.66	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		(3.26	)		17.88			(3.70	)		3.06			.63			(7.97	)
Total from investment operations		(3.57	)		17.32			(4.39	)		2.43			(.03	)		(8.72	)
Net asset value, end of period	$	51.96		$	55.53		$	38.21		$	42.60		$	40.17		$	40.20
Total Returnc		(6.43	%)		45.33	%		(10.31	%)		6.05	%		(0.07	%)		(17.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,674		$	158,098		$	9,764		$	11,979		$	21,982		$	20,733
Ratios to average net assets:
Net investment income (loss)		(1.17	%)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)
Total expensesd		1.68	%		1.68	%		1.74	%		1.66	%		1.69	%		1.72	%
Portfolio turnover rate		145	%		299	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 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.

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	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.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	23.7%
Guggenheim Strategy Fund I	21.0%
Total	44.7%

“Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 71

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 44.6%
Guggenheim Strategy Fund II1		73,766	$	1,833,074
Guggenheim Strategy Fund I1		65,074		1,619,043
Total Mutual Funds
(Cost $3,453,855)				3,452,117

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 6.5%
Freddie Mac2
0.15% due 12/04/15	$	500,000		499,902
Total Federal Agency Discount Notes
(Cost $499,867)				499,902
REPURCHASE AGREEMENTS††,3 - 54.0%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		2,392,869		2,392,869
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		915,912		915,912
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		859,570		859,570
Total Repurchase Agreements
(Cost $4,168,351)				4,168,351
Total Investments - 105.1%
(Cost $8,122,073)			$	8,120,370
Other Assets & Liabilities, net - (5.1)%				(396,692	)
Total Net Assets - 100.0%			$	7,723,678

	Contracts		Unrealized Loss
CURRENCY FUTURES CONTRACTS SOLD SHORT†
December 2015 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $12,823,860)		133	$	(28,136	)

	Units
OTC CURRENCY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International November 2015 U.S. Dollar Index Swap, Terminating 11/16/154 (Notional Value $2,656,559)		27,580	$	(11,035	)

†	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 10.
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.
4	Total Return based on U.S. Dollar Index +/- financing at a variable rate.
	See Sector Classification in Other Information section.

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WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $499,867)	$	499,902
Investments in affiliated issuers, at value (cost $3,453,855)		3,452,117
Repurchase agreements, at value (cost $4,168,351)		4,168,351
Total investments (cost $8,122,073)		8,120,370
Segregated cash with broker		489,331
Receivables:
Fund shares sold		300,212
Dividends		1,692
Swap settlement		1,519
Interest		4
Total assets		8,913,128
Liabilities:
Unrealized depreciation on swap agreements		11,035
Payable for:
Securities purchased		1,001,698
Fund shares redeemed		104,185
Variation margin		55,983
Management fees		5,344
Distribution and service fees		1,822
Transfer agent and administrative fees		1,485
Portfolio accounting fees		594
Miscellaneous		7,304
Total liabilities		1,189,450
Commitments and contingent liabilities (Note 12)		—
Net assets	$	7,723,678
Net assets consist of:
Paid in capital	$	25,578,479
Accumulated net investment loss		(36,133	)
Accumulated net realized loss on investments		(17,777,794	)
Net unrealized depreciation on investments		(40,874	)
Net assets	$	7,723,678
A-Class:
Net assets	$	2,837,065
Capital shares outstanding		231,771
Net asset value per share	$	12.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	12.85
C-Class:
Net assets	$	888,954
Capital shares outstanding		79,430
Net asset value per share	$	11.19
H-Class:
Net assets	$	3,997,659
Capital shares outstanding		327,264
Net asset value per share	$	12.22

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of affiliated issuers	$	12,418
Interest		742
Total investment income		13,160
Expenses:
Management fees		25,435
Transfer agent and administrative fees		7,066
Distribution and service fees:
A-Class		1,492
C-Class		2,345
H-Class		4,987
Portfolio accounting fees		2,826
Custodian fees		326
Trustees’ fees*		177
Miscellaneous		4,640
Total expenses		49,294
Net investment loss		(36,134	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(1,953	)
Swap agreements		46,883
Futures contracts		(14,798	)
Net realized gain		30,132
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(586	)
Investments in affiliated issuers		(1,738	)
Swap agreements		(17,934	)
Futures contracts		(80,748	)
Net change in unrealized appreciation (depreciation)		(101,006	)
Net realized and unrealized loss		(70,874	)
Net decrease in net assets resulting from operations	$	(107,008	)

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

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WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(36,134	)	$	(87,166	)
Net realized gain (loss) on investments		30,132			(2,630,844	)
Net change in unrealized appreciation (depreciation) on investments		(101,006	)		110,616
Net decrease in net assets resulting from operations		(107,008	)		(2,607,394	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,410,335			13,033,004
C-Class		4,964,621			1,510,966
H-Class		26,952,817			51,409,264
Cost of shares redeemed
A-Class		(2,985,461	)		(13,313,243	)
C-Class		(4,201,996	)		(1,961,174	)
H-Class		(26,631,186	)		(51,148,755	)
Net increase (decrease) from capital share transactions		3,509,130			(469,938	)
Net increase (decrease) in net assets		3,402,122			(3,077,332	)
Net assets:
Beginning of period		4,321,556			7,398,888
End of period	$	7,723,678		$	4,321,556
Accumulated net investment loss/Undistributed net investment income at end of period	$	(36,133	)	$	1
Capital share activity:
Shares sold
A-Class		432,592			799,412
C-Class		431,688			119,140
H-Class		2,177,588			3,382,831
Shares redeemed
A-Class		(243,964	)		(819,501	)
C-Class		(367,293	)		(153,809	)
H-Class		(2,160,611	)		(3,378,114	)
Net increase (decrease) in shares		270,000			(50,041	)

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WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	11.78		$	17.86		$	16.95		$	18.95		$	20.34		$	17.98
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.20	)		(.30	)		(.28	)		(.33	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		.54			(5.88	)		1.21			(1.72	)		(1.06	)		2.64
Total from investment operations		.46			(6.08	)		.91			(2.00	)		(1.39	)		2.36
Net asset value, end of period	$	12.24		$	11.78		$	17.86		$	16.95		$	18.95		$	20.34
Total Returnc		3.90	%		(34.04	%)		5.37	%		(10.55	%)		(6.83	%)		13.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,837		$	508		$	1,129		$	1,346		$	2,881		$	5,576
Ratios to average net assets:
Net investment income (loss)		(1.25	%)		(1.23	%)		(1.73	%)		(1.53	%)		(1.62	%)		(1.54	%)
Total expensesd		1.69	%		1.70	%		1.75	%		1.65	%		1.70	%		1.71	%
Portfolio turnover rate		125	%		219	%		—			—			—			—

C-Class	Period Ended September 30, 2015a			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	$	10.81		$	16.51		$	15.79		$	17.79		$	19.23		$	17.12
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.29	)		(.40	)		(.38	)		(.44	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		.49			(5.41	)		1.12			(1.62	)		(1.00	)		2.50
Total from investment operations		.38			(5.70	)		.72			(2.00	)		(1.44	)		2.11
Net asset value, end of period	$	11.19		$	10.81		$	16.51		$	15.79		$	17.79		$	19.23
Total Returnc		3.52	%		(34.52	%)		4.56	%		(11.24	%)		(7.49	%)		12.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	889		$	163		$	821		$	1,687		$	2,826		$	3,963
Ratios to average net assets:
Net investment income (loss)		(1.95	%)		(1.94	%)		(2.49	%)		(2.27	%)		(2.36	%)		(2.29	%)
Total expensesd		2.43	%		2.46	%		2.52	%		2.39	%		2.44	%		2.46	%
Portfolio turnover rate		125	%		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	Period Ended September 30, 2015a			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	$	11.77		$	17.83		$	16.93		$	18.93		$	20.32		$	17.96
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.19	)		(.30	)		(.27	)		(.32	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		.52			(5.87	)		1.20			(1.73	)		(1.07	)		2.64
Total from investment operations		.45			(6.06	)		.90			(2.00	)		(1.39	)		2.36
Net asset value, end of period	$	12.22		$	11.77		$	17.83		$	16.93		$	18.93		$	20.32
Total Returnc		3.82	%		(33.99	%)		5.32	%		(10.57	%)		(6.84	%)		13.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,998		$	3,651		$	5,449		$	10,058		$	13,551		$	23,432
Ratios to average net assets:
Net investment income (loss)		(1.21	%)		(1.20	%)		(1.74	%)		(1.52	%)		(1.61	%)		(1.54	%)
Total expensesd		1.68	%		1.70	%		1.76	%		1.64	%		1.69	%		1.71	%
Portfolio turnover rate		125	%		219	%		—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (“1940 Act”), as an 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, 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. At September 30, 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, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (the “Funds”), each a non-diversified investment company. 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 (Unaudited)(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.

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, provided such amounts approximate 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. 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. 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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 and Derivatives

As part of its investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a 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 Funds may utilize derivatives for the following purposes:

Index Exposure - the use of an instrument to obtain exposure to a listed or other type of index.

Leverage - gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity - the ability to buy or sell exposure with little price/market impact.

For those Funds whose investment strategy consistently involves applying leverage, the value of the Funds’ shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. 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.

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

Swaps

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 or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. 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.

Currency swaps enable a Fund to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involves the exchange of the principal and interest in one currency for the principal and interest in another currency. As in other types of OTC swaps, the Fund may be at risk due to the counterparty’s inability to perform.

Futures

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 a 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 Statements of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the volume of derivative instruments for the period ended September 30, 2015:

	Average Notional
Fund	Long		Short
Europe 1.25x Strategy Fund*	$	6,551,129	$	—
Japan 2x Strategy Fund*		20,747,775		—
Strengthening Dollar 2x Strategy Fund		188,866,887		—
Weakening Dollar 2x Strategy Fund		—		11,861,344

* These Funds utilize a combination of currency and/or financial derivatives to obtain exposure to their benchmark. The gross derivative instrument exposure is $13,188,023 and $41,533,103 for the Europe 1.25x Strategy Fund and the Japan 2x Strategy Fund, respectively.

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 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 September 30, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2015
Japan 2x Strategy Fund	$	—	$	32,803	$	—	$	32,803
Strengthening Dollar 2x Strategy Fund		—		270,134		51,439		321,573

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2015
Europe 1.25x Strategy Fund	$	36,486	$	9,232	$	—	$	45,718
Japan 2x Strategy Fund		158,719		—		—		158,719
Weakening Dollar 2x Strategy Fund		—		28,136		11,035		39,171

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2015:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Futures Currency Contracts			Swaps Currency Contracts		Total
Europe 1.25x Strategy Fund	$	(4,021,616	)	$	1,609,125		$	—	$	(2,412,491	)
Japan 2x Strategy Fund		(1,732,671	)		(399,579	)		—		(2,132,250	)
Strengthening Dollar 2x Strategy Fund					(16,661,913	)		29,057		(16,632,856	)
Weakening Dollar 2x Strategy Fund		—			(14,798	)		46,883		32,085

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Futures Currency Contracts			Swaps Currency Contracts			Total
Europe 1.25x Strategy Fund	$	55,222		$	60,094		$	—		$	115,316
Japan 2x Strategy Fund		(95,702	)		(43,786	)		—			(139,488	)
Strengthening Dollar 2x Strategy Fund		—			3,422,494			(1,913,017	)		1,509,477
Weakening Dollar 2x Strategy Fund		—			(80,748	)		(17,934	)		(98,682	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds.

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.

82 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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 period ended September 30, 2015, GFD retained sales charges of $203,762 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 (Unaudited)(continued)

The following table summarizes the inputs used to value the Funds’ investments at September 30, 2015, see the Schedule of Investments for more details on the classification of securities:

	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	$	163,079,891	$	—	$	968,539	$	—	$	—	$	164,048,430
S&P 500® Pure Value Fund		55,913,380		—		163,793		—		—		56,077,173
S&P MidCap 400® Pure Growth Fund		173,640,798		—		1,096,208		—		—		174,737,006
S&P MidCap 400® Pure Value Fund		6,441,176		—		43,204		—		—		6,484,380
S&P SmallCap 600® Pure Growth Fund		37,678,065		—		489,318		—		—		38,167,383
S&P SmallCap 600® Pure Value Fund		10,053,286		—		66,473		—		—		10,119,759
Europe 1.25x Strategy Fund		4,187,212		—		1,645,835		—		—		5,833,047
Japan 2x Strategy Fund		1,327,535		32,803		1,764,458		—		—		3,124,796
Strengthening Dollar 2x Strategy Fund		12,472,733		270,134		21,840,619		51,439		—		34,634,925
Weakening Dollar 2x Strategy Fund		3,452,117		—		4,668,253		—		—		8,120,370
Liabilities
Europe 1.25x Strategy Fund	$	—	$	9,232	$	—	$	36,486	$	—	$	45,718
Japan 2x Strategy Fund		—		158,719		—		—		—		158,719
Weakening Dollar 2x Strategy Fund		—		28,136		—		11,035		—		39,171

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 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 September 30, 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
0.04%					0.00%
Due 10/01/15	$	415,000,000	$	415,000,461	05/15/40	$	877,378,500	$	423,300,031
Royal Bank of Canada Capital Markets					U.S. Treasury Note
0.03%					1.75%
Due 10/01/15		158,848,348		158,848,480	05/15/23		161,563,300		162,025,380
UMB Financial Corp.					U.S. Treasury Notes
0.04%					1.00% - 3.25%
Due 10/01/15		149,076,968		149,077,134	09/30/16 - 12/31/16		147,857,500		152,058,562

84 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

6. Portfolio Securities Loaned

During the period ended September 30, 2015, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of September 30, 2015, all Funds had ceased participation in securities lending.

7. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP.

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	51,439	$	—	$	51,439	$	—	$	—	$	51,439

								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
Weakening Dollar 2x Strategy Fund	Swap currency contracts	$	11,035	$	—	$	11,035	$	—	$	—	$	11,035

¹ Exchange-traded futures are excluded from these reported amounts.

8. 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.

86 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 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 Name	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
S&P 500® Pure Growth Fund	$	155,046,039	$	16,553,837	$	(7,551,446	)	$	9,002,391
S&P 500® Pure Value Fund		58,463,473		1,123,320		(3,509,619	)		(2,386,299	)
S&P MidCap 400® Pure Growth Fund		165,329,631		21,522,437		(12,115,062	)		9,407,375
S&P MidCap 400® Pure Value Fund		6,701,316		253,531		(470,466	)		(216,935	)
S&P SmallCap 600® Pure Growth Fund		38,571,710		2,543,414		(2,947,741	)		(404,327	)
S&P SmallCap 600® Pure Value Fund		11,304,372		—		(1,184,613	)		(1,184,613	)
Europe 1.25x Strategy Fund		6,047,982		40,385		(255,320	)		(214,935	)
Japan 2x Strategy Fund		3,094,029		—		(2,036	)		(2,036	)
Strengthening Dollar 2x Strategy Fund		34,309,296		5,527		(1,471	)		4,056
Weakening Dollar 2x Strategy Fund		8,122,073		44		(1,747	)		(1,703	)

9. Securities Transactions

For the period ended September 30, 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	$	183,852,651	$	158,065,130
S&P 500® Pure Value Fund		96,158,906		102,673,219
S&P MidCap 400® Pure Growth Fund		94,224,648		97,116,722
S&P MidCap 400® Pure Value Fund		21,305,976		27,149,172
S&P SmallCap 600® Pure Growth Fund		83,006,768		98,008,143
S&P SmallCap 600® Pure Value Fund		28,231,854		32,145,779
Europe 1.25x Strategy Fund		46,189,880		45,700,901
Japan 2x Strategy Fund		9,816,055		9,900,000
Strengthening Dollar 2x Strategy Fund		45,445,614		84,800,000
Weakening Dollar 2x Strategy Fund		4,912,424		2,800,000

10. Affiliated 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, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance 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 available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180414001107/gug60774-ncsr.htm.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Transactions during the period ended September 30, 2015 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/15		Additions		Reductions			Value 09/30/15		Shares 09/30/15		Investment Income		Realized Gain (Loss)
Europe 1.25x Strategy Fund
Guggenheim Strategy Fund I	$	—	$	15,612,591	$	(15,100,000	)	$	576,039		23,153	$	12,591	$	71
Japan 2x Strategy Fund
Guggenheim Strategy Fund I		—		9,816,055		(9,900,000	)		1,327,535		53,358		16,064		3,000
Strengthening Dollar 2x Strategy Fund
Guggenheim Strategy Fund I		—		31,332,364		(51,500,000	)		6,339,151		254,789		82,481		42,553
Guggenheim Strategy Fund II		25,333,425		14,113,250		(33,300,000	)		6,133,582		246,824		113,215		21,070
		25,333,425		45,445,614		(84,800,000	)		12,472,733				195,696		63,623
Weakening Dollar 2x Strategy Fund
Guggenheim Strategy Fund I		—		2,454,678		(1,500,000	)		1,619,043		65,074		4,671		(846	)
Guggenheim Strategy Fund II		—		2,457,746		(1,300,000	)		1,833,074		73,766		7,747		(1,107	)
		—		4,912,424		(2,800,000	)		3,452,117				12,418		(1,953	)

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 12, 2016. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2015. The Funds did not have any borrowings under this agreement at September 30, 2015.

The average daily balances borrowed for the period ended September 30, 2015, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	77,459
S&P 500® Pure Value Fund		22,195
S&P Mid Cap 400® Growth Fund		74,836
S&P Mid Cap 400® Value Fund		3,179
S&P SmallCap 600® Pure Growth Fund		32,819
S&P SmallCap 600® Pure Value Fund		7,043
Europe 1.5x Strategy Fund		5,678
Japan 2x Strategy Fund		8,634
Strengthening Dollar 2x Strategy Fund		268,207

12. Legal Proceedings

Tribune Company

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

88 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 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 motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. The Court has not yet issued a decision on the motion to dismiss. Discovery has commenced in these lawsuits.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 89

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

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

90 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Proxy Voting Information

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

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

Sector Classification

Information in the “Schedule of Investments” is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of the Trust, including the Independent Trustees, attended an in-person meeting held on May 18, 2015, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust except for the Dow Jones Industrial Average^® Fund (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 28, 2015 (together, with the May 18 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar

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OTHER INFORMATION (Unaudited)(continued)

funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

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

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies, brokerage practices, and the adequacy of its compliance systems and processes. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board considered information regarding the Advisor’s profit margin as reflected in the Advisor’s profitability analysis, as well as information provided by the Advisor concerning the methodology used to allocate various expenses among the individual Funds in determining the Advisor’s profitability. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among

92 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, 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, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or 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).	224	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 from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	133	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	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 from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 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 Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	133	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	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.

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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.

96 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

Opt Out Provisions

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 97

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information

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

We’ll Keep You Informed

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

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9.30.2015

Rydex Funds Semi-Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

ROTCF-SEMI-0915x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NASDAQ-100® FUND	8
NOTES TO FINANCIAL STATEMENTS	23
OTHER INFORMATION	42
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	47
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	52

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2015

Dear Shareholder:

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

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

Sincerely,

Donald C. Cacciapaglia
President
October 31, 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.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2015

At the end of the period, the underlying U.S. economy continued to maintain its strong footing. A market correction that began in August persisted through the end of the period; September and October are historically difficult times for the stock market, and by extension, risk assets of any kind, including credit.

Markets had been performing solidly for most of the period. Growth mid-year bounced back from a weather-induced slowdown in the first quarter, with GDP increasing 3.9% for the second quarter. The labor and housing markets continued to strengthen, and the drop in gas prices was acting as a tax cut, which was expected to increase consumer spending power going into the holiday season. Even though labor markets are moving toward full employment, questions remain about the viability of sustained economic expansion in the U.S. In particular, there is debate about the net effect of declining energy prices and a stronger dollar. These are both positive for the U.S. consumer, but low oil prices hurt the U.S. energy industry and a strong dollar is challenging for U.S. manufacturers. In addition, oil prices and the strong dollar exert a downward pressure on inflation, and a risk of deflation is a negative for the economy.

At the same time, currency devaluation, particularly in Japan and the euro zone, is putting pressure on countries to devalue to improve export competitiveness. Those countries slow to devalue, like China, are feeling economic pressure at home, driving down asset prices, and increasing deflationary pressures, escalating the risk of financial contagion abroad. China may have to devalue the renminbi further due to continued slowing in the economy. Combined with the tepid expansion in both Europe and Japan, the pressure will be for central banks there to increase easing measures.

The U.S. Federal Reserve (the Fed) is hard pressed to justify a rate increase based on its self-prescribed metrics, which include rising inflation and an improved employment situation with clearly rising wages. At best, policymakers can argue that the prospects for wage growth and inflation are improving, but clear evidence is lacking.

A preemptive rate increase seems risky and opens the Fed to potential criticism given the fragility in financial markets and the prospect that rising U.S. rates could further strengthen the dollar and also potentially exacerbate foreign economic turbulence. While prices and wages remain tame, the risk of another asset bubble is increasing. The longer policy remains highly accommodative, the greater the likelihood that asset classes including commercial real estate, equities, or certain categories of bonds could become overvalued.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2015

At period end, the risk of financial contagion remained high, which could result in central banks providing additional liquidity or delaying rate increases. Use of the monetary printing press is a handy tool to prop up asset prices and temporarily spur economic growth, which is the main reason a recession does not appear to be on the horizon for either the G-7 nations or China. It’s also worth noting that there has never been a recession in the post-war period without the Fed first raising interest rates, after which it typically takes several years for a recession to be induced.

For the six months ended September 30, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.18%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -8.66%. The return of the MSCI Emerging Markets Index* was -19.28%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a -0.47% return for the period, while the Barclays U.S. Corporate High Yield Index* returned -4.85%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.02% for the six-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.

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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar (“USD”)-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 USD-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.

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.

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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2015 and ending September 30, 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 RYDEX FUNDS SEMI-ANNUAL REPORT | 5

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.

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.24%	(3.47%)	$ 1,000.00	$ 965.30	$ 6.11
Advisor Class	1.63%	(3.64%)	1,000.00	963.60	8.02
A-Class	1.49%	(3.62%)	1,000.00	963.80	7.34
C-Class	2.24%	(3.94%)	1,000.00	960.60	11.01
H-Class	1.48%	(3.66%)	1,000.00	963.40	7.28
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.24%	5.00%	$ 1,000.00	$ 1,018.85	$ 6.28
Advisor Class	1.63%	5.00%	1,000.00	1,016.90	8.24
A-Class	1.49%	5.00%	1,000.00	1,017.60	7.54
C-Class	2.24%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.48%	5.00%	1,000.00	1,017.65	7.49

1	Annualized and excludes expenses of the underlying funds in which the Fund invests.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2015 to September 30, 2015.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

FUND PROFILE (Unaudited) September 30, 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”).

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.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)(concluded) September 30, 2015

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	21.4%
Apple, Inc.	7.7%
Guggenheim Strategy Fund II	5.6%
Microsoft Corp.	4.3%
Amazon.com, Inc.	2.9%
Google, Inc. — Class C	2.6%
Facebook, Inc. — Class A	2.5%
Google, Inc. — Class A	2.3%
Gilead Sciences, Inc.	1.8%
Intel Corp.	1.8%
Top Ten Total	52.9%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 58.4%
Technology - 22.0%
Apple, Inc.		559,877	$	61,754,434
Microsoft Corp.		785,220		34,753,837
Intel Corp.		466,735		14,067,392
QUALCOMM, Inc.		154,256		8,288,175
Texas Instruments, Inc.		100,768		4,990,031
Adobe Systems, Inc.*		48,857		4,017,022
Cognizant Technology Solutions Corp. — Class A*		59,842		3,746,708
Avago Technologies Ltd.		25,499		3,187,630
Broadcom Corp. — Class A		54,881		2,822,530
Intuit, Inc.		27,064		2,401,930
Activision Blizzard, Inc.		71,573		2,210,889
NXP Semiconductor N.V.*		24,716		2,152,022
Electronic Arts, Inc.*		30,606		2,073,557
Cerner Corp.*		33,878		2,031,325
Fiserv, Inc.*		23,030		1,994,628
Western Digital Corp.		22,620		1,796,933
Analog Devices, Inc.		30,796		1,737,202
Applied Materials, Inc.		117,873		1,731,554
Paychex, Inc.		35,462		1,689,055
Micron Technology, Inc.*		106,369		1,593,408
Skyworks Solutions, Inc.		18,726		1,576,916
Altera Corp.		29,696		1,487,176
Check Point Software Technologies Ltd.*		17,756		1,408,583
Seagate Technology plc		29,653		1,328,454
NVIDIA Corp.		52,918		1,304,429
Akamai Technologies, Inc.*		17,534		1,210,898
CA, Inc.		43,326		1,182,800
Citrix Systems, Inc.*		15,777		1,093,031
SanDisk Corp.		20,071		1,090,457
Xilinx, Inc.		25,394		1,076,706
Lam Research Corp.		15,530		1,014,575
Autodesk, Inc.*		22,208		980,261
Linear Technology Corp.		23,539		949,799
NetApp, Inc.		29,461		872,046
KLA-Tencor Corp.		15,466		773,300
Total Technology				176,389,693
Communications - 19.1%
Amazon.com, Inc.*		45,918		23,504,965
Google, Inc. — Class C*		33,766		20,543,910
Facebook, Inc. — Class A*		221,855		19,944,765
Google, Inc. — Class A*		28,460		18,168,010
Cisco Systems, Inc.		499,318		13,107,098
Comcast Corp. — Class A		207,624		11,809,652
Priceline Group, Inc.*		4,978		6,157,089
Netflix, Inc.*		41,824		4,318,746
Baidu, Inc. ADR*		27,201		3,737,689
Twenty-First Century Fox, Inc. — Class A		119,868		3,234,038
eBay, Inc.*		119,602		2,923,073
Yahoo!, Inc.*		92,423		2,671,949
Liberty Global plc*		60,051		2,463,292
Twenty-First Century Fox, Inc. — Class B		78,396		2,122,180
JD.com, Inc. ADR*		79,581		2,073,881
Comcast Corp. — Class A		36,149		2,069,169
Sirius XM Holdings, Inc.*		522,621		1,954,603
Charter Communications, Inc. — Class A*		10,999		1,934,174
Viacom, Inc. — Class B		34,113		1,471,976
Symantec Corp.		67,170		1,307,800
DISH Network Corp. — Class A*		22,062		1,287,097
Vodafone Group plc ADR		39,139		1,242,272
Liberty Global plc — Class A*		24,791		1,064,526
TripAdvisor, Inc.*		12,890		812,328
Liberty Media Corp. — Class C*		21,950		756,397
VimpelCom Ltd. ADR		172,471		709,718
Discovery Communications, Inc. — Class C*		26,928		654,081
Liberty Ventures*		13,225		533,629
Discovery Communications, Inc. — Class A*		14,658		381,548
Liberty Media Corp. — Class A*		10,021		357,950
Liberty Global plc LiLAC — Class C*		3,022		103,473

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NASDAQ-100® FUND

	Shares		Value
Liberty Global plc LiLAC — Class A*		1,239	$	41,742
Total Communications				153,462,820
Consumer, Non-cyclical - 11.1%
Gilead Sciences, Inc.		144,085		14,147,707
Amgen, Inc.		74,443		10,296,956
Kraft Heinz Co.		119,073		8,404,172
Celgene Corp.*		77,613		8,395,398
Biogen, Inc.*		23,088		6,737,309
Mondelez International, Inc. — Class A		158,194		6,623,583
Express Scripts Holding Co.*		66,341		5,370,967
Regeneron Pharmaceuticals, Inc.*		9,988		4,645,818
Automatic Data Processing, Inc.		45,732		3,675,024
Alexion Pharmaceuticals, Inc.*		22,203		3,472,327
Monster Beverage Corp.*		20,175		2,726,450
Vertex Pharmaceuticals, Inc.*		24,020		2,501,443
Illumina, Inc.*		14,206		2,497,699
Mylan N.V.*		48,259		1,942,907
Intuitive Surgical, Inc.*		3,634		1,670,114
BioMarin Pharmaceutical, Inc.*		15,816		1,665,741
Verisk Analytics, Inc. — Class A*		16,541		1,222,545
Whole Foods Market, Inc.		35,134		1,111,991
Henry Schein, Inc.*		8,188		1,086,711
Keurig Green Mountain, Inc.		15,125		788,618
Total Consumer, Non-cyclical				88,983,480
Consumer, Cyclical - 5.6%
Walgreens Boots Alliance, Inc.		107,237		8,911,395
Starbucks Corp.		145,715		8,282,441
Costco Wholesale Corp.		43,148		6,237,906
Tesla Motors, Inc.*		12,747		3,166,355
American Airlines Group, Inc.		65,957		2,561,110
O’Reilly Automotive, Inc.*		9,759		2,439,750
Ross Stores, Inc.		40,386		1,957,509
PACCAR, Inc.		34,850		1,818,125
Marriott International, Inc. — Class A		26,104		1,780,293
Dollar Tree, Inc.*		23,040		1,535,846
Tractor Supply Co.		13,334		1,124,322
Liberty Interactive Corporation QVC Group — Class A*		42,385		1,111,759
Fastenal Co.		28,488		1,042,946
Bed Bath & Beyond, Inc.*		16,650		949,383
Staples, Inc.		63,183		741,137
Mattel, Inc.		33,244		700,119
Wynn Resorts Ltd.		9,969		529,553
Total Consumer, Cyclical				44,889,949
Industrial - 0.6%
SBA Communications Corp. — Class A*		12,538		1,313,230
Stericycle, Inc.*		8,329		1,160,313
CH Robinson Worldwide, Inc.		13,922		943,633
Expeditors International of Washington, Inc.		18,571		873,766
Garmin Ltd.		18,746		672,606
Total Industrial				4,963,548
Total Common Stocks
(Cost $226,265,725)				468,689,490
MUTUAL FUNDS†,1 - 27.0%
Guggenheim Strategy Fund I		6,914,632		172,036,053
Guggenheim Strategy Fund II		1,810,986		45,002,990
Total Mutual Funds
(Cost $217,023,323)				217,039,043

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
NASDAQ-100® FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 5.0%
Federal Home Loan Bank2
0.14% due 12/04/15	$	21,500,000	$	21,495,786
0.09% due 10/05/15		3,000,000		2,999,970
0.19% due 01/20/16		1,000,000		999,599
Total Federal Home Loan Bank				25,495,355
Fannie Mae3
0.14% due 01/06/16		15,000,000		14,994,750
Total Federal Agency Discount Notes
(Cost $40,488,182)				40,490,105
FEDERAL AGENCY NOTES†† - 3.6%
Federal Farm Credit Bank2
0.18% due 11/22/164		10,000,000		9,999,180
0.18% due 08/01/174		9,000,000		8,994,519
Total Federal Farm Credit Bank				18,993,699
Fannie Mae3
0.20% due 09/08/17		10,000,000		9,996,620
Total Federal Agency Notes
(Cost $29,002,106)				28,990,319
REPURCHASE AGREEMENTS††,5 - 2.3%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15		10,571,850		10,571,850
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		4,046,556		4,046,556
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		3,797,637		3,797,637
Total Repurchase Agreements
(Cost $18,416,043)				18,416,043
Total Investments - 96.3%
(Cost $531,195,379)			$	773,625,000
Other Assets & Liabilities, net - 3.7%				29,718,665
Total Net Assets - 100.0%			$	803,343,665

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $58,105,010)		698	$	(678,452	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Barclays Bank plc October 2015 NASDAQ-100 Index Swap, Terminating 10/30/156 (Notional Value $213,458,337)		51,054	$	3,907,115
Goldman Sachs International October 2015 NASDAQ-100 Index Swap, Terminating 10/27/156 (Notional Value $45,422,180)		10,864		842,942
Credit Suisse Capital, LLC October 2015 NASDAQ-100 Index Swap, Terminating 10/27/156 (Notional Value $17,197,221)		4,113		(178,880	)
(Total Notional Value $276,077,738)			$	4,571,177

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
NASDAQ-100® FUND

*	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	Affiliated issuer — See Note 10.
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	Variable rate security. Rate indicated is rate effective at September 30, 2015.
5	Repurchase Agreements — See Note 5.
6	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

NASDAQ-100^® FUND

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $295,756,013)	$	538,169,914
Investments in affiliated issuers, at value (cost $217,023,323)		217,039,043
Repurchase agreements, at value (cost $18,416,043)		18,416,043
Total investments (cost $531,195,379)		773,625,000
Segregated cash with broker		36,135,988
Unrealized appreciation on swap agreements		4,750,057
Receivables:
Securities sold		11,000,000
Fund shares sold		3,733,996
Variation margin		1,221,500
Dividends		304,926
Swap settlement		229,740
Interest		3,223
Foreign taxes reclaim		1,756
Total assets		831,006,186
Liabilities:
Overdraft due to custodian bank		8,296,195
Unrealized depreciation on swap agreements		178,880
Payable for:
Fund shares redeemed		17,835,674
Management fees		496,591
Securities purchased		201,550
Transfer agent and administrative fees		165,530
Distribution and service fees		48,953
Portfolio accounting fees		47,604
Miscellaneous		391,544
Total liabilities		27,662,521
Commitments and contingent liabilities (Note 12)		—
Net assets	$	803,343,665
Net assets consist of:
Paid in capital	$	422,623,751
Accumulated net investment loss		(1,592,584	)
Accumulated net realized gain on investments		135,990,152
Net unrealized appreciation on investments		246,322,346
Net assets	$	803,343,665
Investor Class:
Net assets	$	642,692,320
Capital shares outstanding		26,233,313
Net asset value per share	$	24.50
Advisor Class:
Net assets	$	20,551,341
Capital shares outstanding		924,703
Net asset value per share	$	22.22
A-Class:
Net assets	$	98,943,612
Capital shares outstanding		4,317,235
Net asset value per share	$	22.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.06
C-Class:
Net assets	$	33,583,747
Capital shares outstanding		1,618,794
Net asset value per share	$	20.75
H-Class:
Net assets	$	7,572,645
Capital shares outstanding		330,796
Net asset value per share	$	22.89

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

STATEMENT OF OPERATIONS (Unaudited)

NASDAQ-100^® FUND

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers	$	3,484,703
Dividends from securities of affiliated issuers		1,117,810
Interest		34,040
Income from securities lending, net		9,022
Total investment income		4,645,575
Expenses:
Management fees		3,539,366
Transfer agent and administrative fees		1,179,789
Distribution and service fees:
Advisor Class		70,388
A-Class		92,619
C-Class		169,143
H-Class		64,619
Portfolio accounting fees		310,775
Registration fees		328,368
Custodian fees		54,245
Trustees’ fees*		31,363
Line of credit fees		7,404
Miscellaneous		390,080
Total expenses		6,238,159
Net investment loss		(1,592,584	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		148,990,837
Investments in affiliated issuers		(62,217	)
Swap agreements		(7,100,320	)
Futures contracts		(5,233,413	)
Net realized gain		136,594,887
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(165,717,016	)
Investments in affiliated issuers		(223,276	)
Swap agreements		4,463,482
Futures contracts		(1,713,548	)
Net change in unrealized appreciation (depreciation)		(163,190,358	)
Net realized and unrealized loss		(26,595,471	)
Net decrease in net assets resulting from operations	$	(28,188,055	)

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

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

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,592,584	)	$	(1,194,397	)
Net realized gain on investments		136,594,887			105,677,408
Net change in unrealized appreciation (depreciation) on investments		(163,190,358	)		63,640,660
Net increase (decrease) in net assets resulting from operations		(28,188,055	)		168,123,671
Distributions to shareholders from:
Net realized gains
Investor Class		—			(11,799,003	)
Advisor Class		—			(844,563	)
A-Class		—			(713,323	)
C-Class		—			(455,105	)
H-Class		—			(13,134	)*
Total distributions to shareholders		—			(13,825,128	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		471,539,917			1,029,136,798
Advisor Class		94,137,245			977,291,285
A-Class		265,177,473			126,142,545
C-Class		9,639,067			31,988,339
H-Class		777,316,034			1,146,379,957	*
Distributions reinvested
Investor Class		—			10,894,558
Advisor Class		—			841,695
A-Class		—			687,698
C-Class		—			439,832
H-Class		—			13,134	*
Cost of shares redeemed
Investor Class		(571,537,564	)		(1,013,748,379	)
Advisor Class		(139,879,099	)		(984,316,693	)
A-Class		(230,124,135	)		(83,648,854	)
C-Class		(6,831,777	)		(22,518,343	)
H-Class		(789,318,514	)		(1,132,744,353	)*
Net increase (decrease) from capital share transactions		(119,881,353	)		86,839,219
Net increase (decrease) in net assets		(148,069,408	)		241,137,762
Net assets:
Beginning of period		951,413,073			710,275,311
End of period	$	803,343,665		$	951,413,073
Accumulated net investment loss at end of period	$	(1,592,584	)	$	—

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

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

NASDAQ-100^® FUND

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
Investor Class		18,214,455			43,087,905
Advisor Class		4,005,492			47,220,519
A-Class		11,175,907			5,505,586
C-Class		438,741			1,558,513
H-Class		32,811,555			49,097,507	*
Shares issued from reinvestment of distributions
Investor Class		—			438,589
Advisor Class		—			37,226
A-Class		—			29,528
C-Class		—			20,727
H-Class		—			563	*
Shares redeemed
Investor Class		(22,290,086	)		(42,808,208	)
Advisor Class		(5,986,254	)		(46,232,015	)
A-Class		(9,837,006	)		(3,638,949	)
C-Class		(316,350	)		(1,123,559	)
H-Class		(32,986,214	)		(48,592,615	)*
Net increase (decrease) in shares		(4,769,760	)		4,601,317

* Since commencement of operations: September 18, 2014.

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

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	Period Ended Sept. 30, 2015a			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	$	25.38		$	21.38		$	18.38		$	17.92		$	15.23		$	12.83
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.01	)		.02			.02			(.05	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(.85	)		4.39			5.01			.44			2.74			2.47
Total from investment operations		(.88	)		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	$	24.50		$	25.38		$	21.38		$	18.38		$	17.92		$	15.23
Total Returnc		(3.47	%)		20.53	%		27.74	%		2.57	%		17.66	%		18.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	642,692		$	769,257		$	632,598		$	461,269		$	770,626		$	579,925
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(0.05	%)		0.10	%		0.13	%		(0.34	%)		(0.50	%)
Total expensesd		1.24	%		1.26	%		1.29	%		1.26	%		1.27	%		1.31	%
Portfolio turnover rate		81	%		267	%		141	%		94	%		94	%		39	%

18 | THE RYDEX FUNDS SEMI-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	Period Ended Sept. 30, 2015a			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	$	23.06		$	19.55		$	17.04		$	16.70		$	14.27		$	12.09
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.11	)		(.01	)		(.08	)		(.13	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		(.77	)		4.00			4.55			.42			2.56			2.30
Total from investment operations		(.84	)		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	$	22.22		$	23.06		$	19.55		$	17.04		$	16.70		$	14.27
Total Returnc		(3.64	%)		19.94	%		27.02	%		2.04	%		17.03	%		18.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,551		$	67,002		$	36,751		$	16,930		$	65,970		$	120,277
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.53	%)		(0.05	%)		(0.51	%)		(0.87	%)		(1.00	%)
Total expensesd		1.63	%		1.75	%		1.79	%		1.75	%		1.76	%		1.80	%
Portfolio turnover rate		81	%		267	%		141	%		94	%		94	%		39	%

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

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	Period Ended Sept. 30, 2015a			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	$	23.78		$	20.10		$	17.42		$	17.03		$	14.52		$	12.27
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.06	)		(.03	)		(.02	)		(.09	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(.80	)		4.12			4.74			.41			2.60			2.36
Total from investment operations		(.86	)		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	$	22.92		$	23.78		$	20.10		$	17.42		$	17.03		$	14.52
Total Returnc		(3.62	%)		20.24	%		27.42	%		2.29	%		17.29	%		18.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	98,944		$	70,821		$	21,751		$	23,656		$	14,553		$	19,806
Ratios to average net assets:
Net investment income (loss)		(0.46	%)		(0.29	%)		(0.14	%)		(0.09	%)		(0.61	%)		(0.81	%)
Total expensesd		1.49	%		1.50	%		1.54	%		1.52	%		1.53	%		1.56	%
Portfolio turnover rate		81	%		267	%		141	%		94	%		94	%		39	%

20 | THE RYDEX FUNDS SEMI-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	Period Ended Sept. 30, 2015a			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	$	21.60		$	18.42		$	16.22		$	15.97		$	13.72		$	11.67
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.21	)		(.16	)		(.13	)		(.19	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(.71	)		3.77			4.39			.38			2.44			2.24
Total from investment operations		(.85	)		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	$	20.75		$	21.60		$	18.42		$	16.22		$	15.97		$	13.72
Total Returnc		(3.94	%)		19.37	%		26.46	%		1.57	%		16.40	%		17.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,584		$	32,324		$	19,175		$	13,015		$	15,177		$	11,864
Ratios to average net assets:
Net investment income (loss)		(1.25	%)		(1.05	%)		(0.89	%)		(0.84	%)		(1.35	%)		(1.52	%)
Total expensesd		2.24	%		2.25	%		2.29	%		2.26	%		2.27	%		2.31	%
Portfolio turnover rate		81	%		267	%		141	%		94	%		94	%		39	%

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

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 Sept. 30, 2015a			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	23.76		$	22.91
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		.01
Net gain (loss) on investments (realized and unrealized)		(.77	)		1.22
Total from investment operations		(.87	)		1.23
Less distributions from:
Net realized gains		—			(.38	)
Total distributions		—			(.38	)
Net asset value, end of period	$	22.89		$	23.76
Total Returnc		(3.66	%)		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,573		$	12,009
Ratios to average net assets:
Net investment income (loss)		(0.79	%)		0.07	%
Total expensesd		1.48	%		1.47	%
Portfolio turnover rate		81	%		267	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	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 and has not been annualized.
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 commencement of operations of the class.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an 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, P-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. At September 30, 2015, the Trust consisted of fifty-two funds (the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”), a non-diversified investment company. 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 SEMI-ANNUAL REPORT | 23

NOTES TO FINANCIAL STATEMENTS (Unaudited)(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

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(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.

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, provided such amounts approximate 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 RYDEX FUNDS SEMI-ANNUAL REPORT | 25

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the effective rates paid at the time of purchase by the Fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

C. Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

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

26 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

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

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

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

I. Under the Fund’s organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

2. Financial Instruments and Derivatives

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. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a 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 may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Liquidity: the ability to buy or sell exposure with little price/market impact.

During the period ended September 30, 2015, the Fund sought to possess liquidity and gain exposure to its respective benchmark by investing in financial-linked derivative instruments, including swap agreements and futures. The following table represents the average notional amount of derivative instruments outstanding (excluding any non-derivative positions) on a quarterly basis:

	Average Notional
Fund	Long
NASDAQ-100® Fund	$	357,374,905

Swaps

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 or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. Additionally, there is no

28 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A Fund utilizing a total return index swap 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 if the underlying index declines in value.

Futures

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 a 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.

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Fund’s Statement of Assets and Liabilities as of September 30, 2015:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation margin
	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at September 30, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2015
NASDAQ-100® Fund	$	—	$	4,750,057	$	4,750,057

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2015
NASDAQ-100® Fund	$	678,452	$	178,880	$	857,332

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statement of Operations for the period ended September 30, 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 period ended September 30, 2015:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Total
NASDAQ-100® Fund	$	(5,233,413	)	$	(7,100,320	)	$	(12,333,733	)

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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	$	(1,713,548	)	$	4,463,482	$	2,749,934

In conjunction with the use 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 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%

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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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. Effective July 10, 2015, Advisor Class shares ceased charging the shareholder servicing fee.

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 period ended September 30, 2015, GFD retained sales charges of $203,762 relating to sales of A-Class shares of the Trust.

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

4. Fair Value Measurement

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

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

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

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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 September 30, 2015, see the Schedule of Investments for more details on the classification of securities.

	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	$	685,728,533	$	—	$	87,896,467	$	4,750,057	$	—	$	778,375,057
Liabilities
NASDAQ-100® Fund	$	—	$	678,452	$	—	$	178,880	$	—	$	857,332

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 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.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 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
0.04%					0.00%
Due 10/01/15	$	415,000,000	$	415,000,461	05/15/40	$	877,378,500	$	423,300,031
Royal Bank of Canada Capital Markets					U.S. Treasury Note
0.03%					1.75%
Due 10/01/15		158,848,348		158,848,480	05/15/23		161,563,300		162,025,380
UMB Financial Corp.					U.S. Treasury Notes
0.04%					1.00% - 3.25%
Due 10/01/15		149,076,968		149,077,134	09/30/16 - 12/31/16		147,857,500		152,058,562

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

During the period ended September 30, 2015, the Fund lent its securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of September 30, 2015, the Fund ceased participation in securities lending.

7. 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.

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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.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statement of Assets and Liabilities in conformity with U.S. GAAP.

								Gross Amounts Not Offset in the Statement of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statement of Assets and Liabilities		Net Amount of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	4,750,057	$	—	$	4,750,057	$	—	$	—	$	4,750,057

								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	$	178,880	$	—	$	178,880	$	—	$	178,880	$	—

¹ Exchange-traded futures are excluded from these reported amounts.

8. Federal Income Tax Information

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

Tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken, or to be taken, on Federal income tax returns for all open tax

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

At September 30, 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	$	548,227,184	$	231,669,743	$	(6,271,927	)	$	225,397,816

9. Securities Transactions

For the period ended September 30, 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	$	656,643,118	$	775,019,577

10. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Fund may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance 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 available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180414001107/gug60774-ncsr.htm.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Transactions during the period ended September 30, 2015 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/15		Additions		Reductions			Value 09/30/15		Shares 09/30/15		Investment Income		Realized Loss
NASDAQ-100® Fund
Guggenheim Strategy Fund I	$	139,227,564	$	276,486,073	$	(243,500,000	)	$	172,036,053		6,914,632	$	934,661	$	(42,375	)
Guggenheim Strategy Fund II		—		69,732,934		(28,600,00	)		45,002,990		1,810,986		183,149		(19,842	)
	$	139,227,564	$	346,219,007	$	(272,100,000	)	$	217,039,043			$	1,117,810	$	(62,217	)

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 12, 2016. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2015. On September 30, 2015, the Fund borrowed $8,311,000 under this agreement.

Fund	Average Daily Balance
NASDAQ-100® Fund	$	1,210,573

12. Legal Proceedings

Tribune Company

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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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”).

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. The Court has not yet issued a decision on the motion to dismiss. 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.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

13. Subsequent Event

Conversion of Advisor Class Shares and Class H Shares

Effective following the close of business on September 30, 2015, all outstanding Advisor Class shares of the NASDAQ-100^® Fund will be converted into Class H shares of the Fund and the Fund will no longer offer Advisor Class shares. The conversion of all outstanding Advisor Class shares will be effected by exchanging shareholders’ Advisor Class shares for Class H shares. Advisor Class shareholders of the Fund will receive Class H shares of the Fund with a value equal to the value of their investment in Advisor Class shares of the Fund on September 30, 2015. No shareholder action is required to effect the conversion of the Fund’s Advisor Class shares into Class H shares.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

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

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

Sector Classification

Information in the “Schedule of Investments” is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of the Trust, including the Independent Trustees, attended an in-person meeting held on May 18, 2015, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust except for the Dow Jones Industrial Average^® Fund (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement

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OTHER INFORMATION (Unaudited)(continued)

for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 28, 2015 (together, with the May 18 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

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OTHER INFORMATION (Unaudited)(continued)

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

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies, brokerage practices, and the adequacy of its compliance systems and processes. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one-, three-, and five-year performance for the Fund compared to that

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OTHER INFORMATION (Unaudited)(continued)

of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board considered information regarding the Advisor’s profit margin as reflected in the Advisor’s profitability analysis, as well as information provided by the Advisor concerning the methodology used to allocate various expenses among the individual Funds in determining the Advisor’s profitability. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, 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, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing

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OTHER INFORMATION (Unaudited)(concluded)

services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

46 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or 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).	224	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 from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

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 from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	133	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	133	None.

48 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	133	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	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).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 49

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).

50 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
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 SEMI-ANNUAL REPORT | 51

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

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

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.

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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9.30.2015

Rydex Funds Semi-Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity Fund

Guggenheim Event Driven and Distressed Strategies Fund

Rydex International Equity Funds

Rydex Emerging Markets 2x Strategy Fund

Rydex Inverse Emerging Markets 2x Strategy Fund

Rydex Fixed Income Fund

Rydex Emerging Markets Bond Strategy Fund

RSTF-SEMI-0915x0316 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
LONG SHORT EQUITY FUND	9
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND	20
EMERGING MARKETS 2x STRATEGY FUND	33
INVERSE EMERGING MARKETS 2x STRATEGY FUND	40
EMERGING MARKETS BOND STRATEGY FUND	46
NOTES TO FINANCIAL STATEMENTS	52
OTHER INFORMATION	67
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	70
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	73

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2015

Dear Shareholder:

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

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

Sincerely,

Donald C. Cacciapaglia
President
October 31, 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.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2015

At the end of the period, the underlying U.S. economy continued to maintain its strong footing. A market correction that began in August persisted through the end of the period; September and October are historically difficult times for the stock market, and by extension, risk assets of any kind, including credit.

Markets had been performing solidly for most of the period. Growth mid-year bounced back from a weather-induced slowdown in the first quarter, with GDP increasing 3.9% for the second quarter. The labor and housing markets continued to strengthen, and the drop in gas prices was acting as a tax cut, which was expected to increase consumer spending power going into the holiday season. Even though labor markets are moving toward full employment, questions remain about the viability of sustained economic expansion in the U.S. In particular, there is debate about the net effect of declining energy prices and a stronger dollar. These are both positive for the U.S. consumer, but low oil prices hurt the U.S. energy industry and a strong dollar is challenging for U.S. manufacturers. In addition, oil prices and the strong dollar exert a downward pressure on inflation, and a risk of deflation is a negative for the economy.

At the same time, currency devaluation, particularly in Japan and the euro zone, is putting pressure on countries to devalue to improve export competitiveness. Those countries slow to devalue, like China, are feeling economic pressure at home, driving down asset prices, and increasing deflationary pressures, escalating the risk of financial contagion abroad. China may have to devalue the renminbi further due to continued slowing in the economy. Combined with the tepid expansion in both Europe and Japan, the pressure will be for central banks there to increase easing measures.

The U.S. Federal Reserve (the Fed) is hard pressed to justify a rate increase based on its self-prescribed metrics, which include rising inflation and an improved employment situation with clearly rising wages. At best, policymakers can argue that the prospects for wage growth and inflation are improving, but clear evidence is lacking.

A preemptive rate increase seems risky and opens the Fed to potential criticism given the fragility in financial markets and the prospect that rising U.S. rates could further strengthen the dollar and also potentially exacerbate foreign economic turbulence. While prices and wages remain tame, the risk of another asset bubble is increasing. The longer policy remains highly accommodative, the greater the likelihood that asset classes including commercial real estate, equities, or certain categories of bonds could become overvalued.

At period end, the risk of financial contagion remained high, which could result in central banks providing additional liquidity or delaying rate increases. Use of the monetary printing press is a handy tool to prop up asset prices and temporarily spur economic growth, which is the main reason a recession does not appear to be on the horizon for either the G-7 nations or China. It’s also worth noting that there has never been a recession in the post-war period without the Fed first raising interest rates, after which it typically takes several years for a recession to be induced.

For the six months ended September 30, 2015, the Standard & Poor’s 500^® (“S&P 500”) Index* returned -6.18%. The Morgan Stanley Capital International (“MSCI”) Europe-Australasia-Far East (“EAFE”) Index* returned -8.66%. The return of the MSCI Emerging Markets Index* was -19.28%.

In the bond market, the Barclays U.S. Aggregate Bond Index* posted a -0.47% return for the period, while the Barclays U.S. Corporate High Yield Index* returned -4.85%. The return of the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.02% for the six-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 SEMI-ANNUAL REPORT | 3

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

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.

Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar (“USD”)-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 USD-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.

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.

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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Rydex Emerging Markets 2x Strategy Fund and Rydex Inverse Emerging Markets 2x Strategy Fund described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

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

An Example of Compounding

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2015 and ending September 30, 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 SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	2.43%	(3.40%)	$ 1,000.00	$ 966.00	$ 11.98
C-Class	3.12%	(3.76%)	1,000.00	962.40	15.35
P-Class	2.38%	(3.39%)	1,000.00	966.10	11.73
Institutional Class	2.14%	(3.30%)	1,000.00	967.00	10.55
Event Driven and Distressed Strategies Fund
A-Class	1.89%	(6.11%)	1,000.00	938.90	9.19
C-Class	2.64%	(6.45%)	1,000.00	935.50	12.81
P-Class	1.89%	(6.11%)	1,000.00	938.90	9.19
Institutional Class	1.64%	(5.96%)	1,000.00	940.40	7.98
Emerging Markets 2x Strategy Fund
A-Class	1.73%	(36.78%)	1,000.00	632.20	7.08
C-Class	2.45%	(37.06%)	1,000.00	629.40	10.01
H-Class	1.72%	(36.84%)	1,000.00	631.60	7.04
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.71%	37.44%	1,000.00	1,374.40	10.18
C-Class	2.47%	36.87%	1,000.00	1,368.70	14.67
H-Class	1.73%	36.90%	1,000.00	1,369.00	10.27
Emerging Markets Bond Strategy Fund
A-Class	1.53%	(3.34%)	1,000.00	966.60	7.54
C-Class	2.29%	(3.68%)	1,000.00	963.20	11.27
H-Class	1.52%	(3.30%)	1,000.00	967.00	7.50

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2015	Ending Account Value September 30, 2015	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	2.43%	5.00%	$ 1,000.00	$ 1,012.89	$ 12.26
C-Class	3.12%	5.00%	1,000.00	1,009.43	15.72
P-Class	2.38%	5.00%	1,000.00	1,013.14	12.01
Institutional Class	2.14%	5.00%	1,000.00	1,014.34	10.81
Event Driven and Distressed Strategies Fund
A-Class	1.89%	5.00%	1,000.00	1,015.59	9.55
C-Class	2.64%	5.00%	1,000.00	1,011.83	13.31
P-Class	1.89%	5.00%	1,000.00	1,015.59	9.55
Institutional Class	1.64%	5.00%	1,000.00	1,016.85	8.29
Emerging Markets 2x Strategy Fund
A-Class	1.73%	5.00%	1,000.00	1,016.39	8.74
C-Class	2.45%	5.00%	1,000.00	1,012.78	12.36
H-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.47%	5.00%	1,000.00	1,012.68	12.46
H-Class	1.73%	5.00%	1,000.00	1,016.39	8.74
Emerging Markets Bond Strategy Fund
A-Class	1.53%	5.00%	1,000.00	1,017.40	7.74
C-Class	2.29%	5.00%	1,000.00	1,013.59	11.56
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69

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%
P-Class	1.64%
Institutional Class	1.39%

2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2015 to September 30, 2015.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2015

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments 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	March 31, 2004
C-Class	March 22, 2002
P-Class	March 22, 2002
Institutional Class	November 30, 2011

Ten Largest Long Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	5.7%
Molson Coors Brewing Co. — Class B	0.6%
NVR, Inc.	0.6%
White Mountains Insurance Group Ltd.	0.6%
AutoZone, Inc.	0.5%
Murphy USA, Inc.	0.5%
First Niagara Financial Group, Inc.	0.5%
JetBlue Airways Corp.	0.5%
Reynolds American, Inc.	0.5%
Bunge Ltd.	0.5%
Top Ten Total	10.5%

“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 79.1%
Consumer, Non-cyclical - 22.4%
Molson Coors Brewing Co. — Class B1		3,800	$	315,476
Reynolds American, Inc.1		6,224		275,536
Bunge Ltd.1		3,700		271,210
Coca-Cola Co.1		6,700		268,804
Dr Pepper Snapple Group, Inc.1		3,400		268,770
Altria Group, Inc.1		4,935		268,464
H&R Block, Inc.1		7,294		264,043
PepsiCo, Inc.1		2,800		264,040
Total System Services, Inc.1		5,770		262,131
Brown-Forman Corp. — Class B1		2,700		261,630
Teleflex, Inc.1		2,074		257,612
Philip Morris International, Inc.1		3,242		257,188
Monster Beverage Corp.*,1		1,900		256,766
Hill-Rom Holdings, Inc.1		4,862		252,775
Henry Schein, Inc.*,1		1,900		252,168
Gartner, Inc.*,1		3,003		252,042
Flowers Foods, Inc.1		10,174		251,705
ServiceMaster Global Holdings, Inc.*,1		7,500		251,625
Constellation Brands, Inc. — Class A1		2,000		250,420
Sabre Corp.1		9,115		247,746
Coca-Cola Enterprises, Inc.1		5,100		246,585
Macquarie Infrastructure Corp.1		3,300		246,378
Premier, Inc. — Class A*,1		7,163		246,192
MEDNAX, Inc.*,1		3,180		244,192
Service Corporation International1		8,915		241,597
Ingredion, Inc.1		2,734		238,705
Sprouts Farmers Market, Inc.*,1		11,253		237,438
Moody’s Corp.1		2,400		235,680
Pinnacle Foods, Inc.1		5,626		235,617
Regeneron Pharmaceuticals, Inc.*,1		500		232,570
VCA, Inc.*,1		4,298		226,290
Booz Allen Hamilton Holding Corp.1		8,619		225,904
LifePoint Health, Inc.*,1		3,170		224,753
HCA Holdings, Inc.*,1		2,904		224,653
Envision Healthcare Holdings, Inc.*,1		6,000		220,740
Alere, Inc.*,1		4,578		220,431
Acadia Healthcare Company, Inc.*,1		3,299		218,625
Patterson Companies, Inc.1		4,829		208,854
Vertex Pharmaceuticals, Inc.*,1		2,000		208,280
Graham Holdings Co. — Class B1		349		201,373
Pilgrim’s Pride Corp.		9,576		198,989
Archer-Daniels-Midland Co.1		4,605		190,877
Community Health Systems, Inc.*,1		4,340		185,622
Sysco Corp.1		4,300		167,571
BioMarin Pharmaceutical, Inc.*,1		1,554		163,667
ResMed, Inc.1		3,164		161,237
Alnylam Pharmaceuticals, Inc.*,1		1,953		156,943
Medivation, Inc.*,1		3,592		152,660
Puma Biotechnology, Inc.*,1		1,985		149,590
Zoetis, Inc.1		3,391		139,641
Seattle Genetics, Inc.*,1		3,292		126,940
Agios Pharmaceuticals, Inc.*,1		1,474		104,050
Sirona Dental Systems, Inc.*,1		1,013		94,553
Cardinal Health, Inc.1		1,130		86,807
DENTSPLY International, Inc.1		1,038		52,492
Quest Diagnostics, Inc.1		791		48,623
Edwards Lifesciences Corp.*,1		295		41,940
Intercept Pharmaceuticals, Inc.*,1		200		33,172
Hain Celestial Group, Inc.*,1		318		16,409
Gilead Sciences, Inc.1		100		9,818
Total Consumer, Non-cyclical				12,116,609
Financial - 16.6%
White Mountains Insurance Group Ltd.1		400		298,920
First Niagara Financial Group, Inc.1		27,350		279,244
Nasdaq, Inc.1		5,034		268,464
Erie Indemnity Co. — Class A1		3,200		265,408
BankUnited, Inc.1		7,400		264,550
Bank of Hawaii Corp.1		4,100		260,309
American Financial Group, Inc.1		3,767		259,583
Popular, Inc.1		8,573		259,162
BOK Financial Corp.1		4,000		258,840
Intercontinental Exchange, Inc.1		1,100		258,489
Bank of America Corp.1		16,400		255,512
Assured Guaranty Ltd.1		10,217		255,425
MetLife, Inc.1		5,400		254,610
SunTrust Banks, Inc.1		6,600		252,384
Crown Castle International REIT Corp.		3,200		252,384
Comerica, Inc.1		6,100		250,710
CME Group, Inc. — Class A1		2,700		250,398
American National Insurance Co.1		2,560		249,958
Unum Group1		7,700		247,016
Old Republic International Corp.1		15,506		242,514
CBOE Holdings, Inc.1		3,606		241,890
Voya Financial, Inc.1		6,234		241,692
CNA Financial Corp.1		6,800		237,524
Genworth Financial, Inc. — Class A*,1		51,291		236,964
Prudential Financial, Inc.1		3,100		236,251
Associated Banc-Corp.1		13,030		234,149
Lincoln National Corp.1		4,900		232,554
First Republic Bank1		3,700		232,249
Allied World Assurance Company Holdings AG1		6,000		229,020
Citigroup, Inc.1		4,600		228,206
Fifth Third Bancorp1		11,800		223,138
East West Bancorp, Inc.1		5,800		222,836
Aflac, Inc.1		3,700		215,081
Chimera Investment Corp.1		14,878		198,919
People’s United Financial, Inc.1		11,333		178,268
Synovus Financial Corp.1		5,900		174,640
PNC Financial Services Group, Inc.1		1,200		107,040
Torchmark Corp.1		1,700		95,880
Validus Holdings Ltd.1		1,900		85,633
MFA Financial, Inc.1		8,330		56,727
Total Financial				9,092,541

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
LONG SHORT EQUITY FUND

		Shares		Value
Consumer, Cyclical - 16.5%
NVR, Inc.*,1			200	$	305,045
AutoZone, Inc.*,1			400		289,532
JetBlue Airways Corp.*,1			10,800		278,317
Carnival Corp.1			5,300		263,410
Southwest Airlines Co.1			6,900		262,476
Alaska Air Group, Inc.1			3,300		262,185
Tempur Sealy International, Inc.*,1			3,600		257,148
Norwegian Cruise Line Holdings Ltd.*,1			4,474		256,360
Delta Air Lines, Inc.1			5,700		255,759
Vista Outdoor, Inc.*,1			5,683		252,496
DR Horton, Inc.1			8,472		248,739
Brunswick Corp.1			5,153		246,777
Lennar Corp. — Class A1			5,079		244,452
Choice Hotels International, Inc.1			5,117		243,825
Brinker International, Inc.1			4,600		242,282
Hyatt Hotels Corp. — Class A*,1			5,127		241,482
LKQ Corp.*,1			8,510		241,344
Toll Brothers, Inc.*,1			7,002		239,748
United Continental Holdings, Inc.*,1			4,500		238,725
Extended Stay America, Inc.1			14,214		238,511
Mattel, Inc.1			11,300		237,978
Spirit Airlines, Inc.*,1			5,000		236,500
Mohawk Industries, Inc.*,1			1,300		236,327
Whirlpool Corp.1			1,600		235,616
Sally Beauty Holdings, Inc.*,1			9,900		235,125
International Game Technology plc1			15,300		234,549
MGM Resorts International*,1			12,600		232,470
Genuine Parts Co.1			2,800		232,092
Copa Holdings S.A. — Class A1			5,300		222,229
Harman International Industries, Inc.1			2,300		220,777
Six Flags Entertainment Corp.1			4,790		219,286
Ascena Retail Group, Inc.*,1			15,590		216,857
Visteon Corp.*,1			2,100		212,604
DSW, Inc. — Class A1			7,600		192,356
Wynn Resorts Ltd.			3,500		185,920
PulteGroup, Inc.1			7,600		143,412
Rite Aid Corp.*,1			23,421		142,165
American Airlines Group, Inc.1			2,400		93,192
Leggett & Platt, Inc.1			1,501		61,916
Tupperware Brands Corp.1			893		44,195
Total Consumer, Cyclical					8,944,179
Technology - 9.5%
DST Systems, Inc.1			2,456		258,225
Solera Holdings, Inc.1			4,700		253,800
Xerox Corp.1			26,000		252,980
QUALCOMM, Inc.1			4,700		252,531
Synopsys, Inc.*,1			5,400		249,372
Black Knight Financial Services, Inc. — Class A*,1			7,633		248,454
Genpact Ltd.*,1			10,317		243,584
Amdocs Ltd.1			4,281		243,503
CA, Inc.1			8,884		242,533
Jack Henry & Associates, Inc.1			3,392		236,118
Zynga, Inc. — Class A*,1			102,989		234,815
King Digital Entertainment plc1			17,036		230,666
Leidos Holdings, Inc.1			5,572		230,179
CDK Global, Inc.1			4,800		229,344
Fidelity National Information Services, Inc.1			3,400		228,072
MSCI, Inc. — Class A1			3,800		225,948
Intuit, Inc.1			2,400		213,000
PTC, Inc.*,1			6,500		206,310
Pitney Bowes, Inc.1			10,068		199,850
Workday, Inc. — Class A*,1			2,500		172,150
Microsoft Corp.1			3,100		137,206
Broadridge Financial Solutions, Inc.1			2,051		113,523
ServiceNow, Inc.*,1			1,600		111,120
Electronic Arts, Inc.*,1			1,100		74,525
salesforce.com, Inc.*,1			900		62,487
Dun & Bradstreet Corp.1			327		34,335
NetSuite, Inc.*,1			400		33,560
Total Technology	��				5,218,190
Industrial - 6.9%
AO Smith Corp.1			3,974		259,065
Allegion plc1			4,400		253,704
Expeditors International of Washington, Inc.1			5,380		253,129
Fortune Brands Home & Security, Inc.1			5,300		251,590
Lennox International, Inc.1			2,192		248,419
Masco Corp.1			9,816		247,167
Owens Corning1			5,845		244,964
Vulcan Materials Co.1			2,700		240,839
Garmin Ltd.1			6,600		236,809
USG Corp.*,1			8,600		228,932
Martin Marietta Materials, Inc.1			1,500		227,925
Armstrong World Industries, Inc.*,1			4,700		224,378
Eagle Materials, Inc.1			3,200		218,944
Carlisle Companies, Inc.1			2,500		218,450
BWX Technologies, Inc.1			7,800		205,608
WestRock Co.1			2,300		118,312
Harris Corp.1			800		58,520
Gentex Corp.1			102		1,581
Total Industrial					3,738,336
Communications - 4.0%
Liberty Ventures*,1			6,400		258,239
Amazon.com, Inc.*,1			500		255,945
United States Cellular Corp.*,1			7,200		255,096
Telephone & Data Systems, Inc.1			9,500		237,121
Symantec Corp.1			11,747		228,714
EchoStar Corp. — Class A*,1			4,933		212,267
Sprint Corp.*,1			52,000		199,680
Arista Networks, Inc.*			3,209		196,359
Splunk, Inc.*,1			2,500		138,375
Groupon, Inc. — Class A*,1			39,583		129,041
CommScope Holding Company, Inc.*,1			2,000		60,060
Total Communications					2,170,897

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
LONG SHORT EQUITY FUND

	Shares		Value
Energy - 2.0%
Murphy USA, Inc.*,1		5,200	$	285,740
Valero Energy Corp.1		4,400		264,440
Targa Resources Corp.1		4,100		211,232
Denbury Resources, Inc.1		37,510		91,524
SM Energy Co.1		2,800		89,712
Noble Corporation plc1		7,800		85,098
RPC, Inc.1		4,800		42,480
Total Energy				1,070,226
Basic Materials - 0.6%
Domtar Corp.1		4,117		147,183
LyondellBasell Industries N.V. — Class A1		1,400		116,704
Total Basic Materials				263,887
Diversified - 0.4%
Leucadia National Corp.1		10,858		219,983
Utilities - 0.2%
Ameren Corp.1		2,200		92,994
American Water Works Company, Inc.1		100		5,508
Total Utilities				98,502
Total Common Stocks
(Cost $45,457,411)				42,933,350
MUTUAL FUNDS† - 5.7%
Guggenheim Strategy Fund I2		122,425		3,045,942
Guggenheim Strategy Fund II2		565		14,047
Total Mutual Funds
(Cost $3,070,875)				3,059,989

	Face Amount
REPURCHASE AGREEMENTS††,3 - 8.0%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	2,464,678		2,464,678
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		943,397		943,397
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		885,365		885,365
Total Repurchase Agreements
(Cost $4,293,440)				4,293,440
Total Investments - 92.8%
(Cost $52,821,726)			$	50,286,779
	Shares
COMMON STOCKS SOLD SHORT† - (40.4)%
Utilities - (0.7)%
NRG Energy, Inc.		7,160		(106,326	)
AES Corp.		11,640		(113,956	)
Calpine Corp.*		8,500		(124,100	)
Total Utilities				(344,382	)
Consumer, Non-cyclical - (2.1)%
Estee Lauder Companies, Inc. — Class A		421		(33,966	)
Cooper Companies, Inc.		279		(41,532	)
IDEXX Laboratories, Inc.*		1,340		(99,495	)
AbbVie, Inc.		1,898		(103,270	)
Charles River Laboratories International, Inc.*		1,634		(103,792	)
United Rentals, Inc.*		1,942		(116,617	)
Hertz Global Holdings, Inc.*		7,287		(121,912	)
Live Nation Entertainment, Inc.*		5,200		(125,008	)
SEI Investments Co.		2,600		(125,398	)
Quanta Services, Inc.*		5,418		(131,170	)
Avis Budget Group, Inc.*		3,035		(132,568	)
Total Consumer, Non-cyclical				(1,134,728	)
Technology - (3.5)%
Qorvo, Inc.*		370		(16,669	)
Veeva Systems, Inc. — Class A*		1,092		(25,564	)
Rackspace Hosting, Inc.*		3,208		(79,173	)
Cerner Corp.*		1,673		(100,313	)
Akamai Technologies, Inc.*		1,526		(105,386	)
IPG Photonics Corp.*		1,427		(108,409	)
NCR Corp.*		5,310		(120,803	)
Hewlett-Packard Co.		4,750		(121,648	)
NetApp, Inc.		4,199		(124,290	)
Western Digital Corp.		1,601		(127,183	)
athenahealth, Inc.*		965		(128,683	)
Apple, Inc.		1,174		(129,492	)
Skyworks Solutions, Inc.		1,540		(129,683	)
EMC Corp.		5,419		(130,923	)
Lexmark International, Inc. — Class A		4,530		(131,279	)
SanDisk Corp.		2,429		(131,968	)
Atmel Corp.		16,520		(133,316	)
KLA-Tencor Corp.		2,700		(135,000	)
Total Technology				(1,979,782	)
Consumer, Cyclical - (3.8)%
WESCO International, Inc.*		1,624		(75,467	)
Allison Transmission Holdings, Inc.		3,240		(86,476	)
Ford Motor Co.		6,791		(92,154	)
Macy’s, Inc.		1,821		(93,454	)
Toro Co.		1,380		(97,345	)
Dollar General Corp.		1,425		(103,227	)
HD Supply Holdings, Inc.*		3,819		(109,300	)
Harley-Davidson, Inc.		2,027		(111,282	)
Cabela’s, Inc.*		2,441		(111,310	)
World Fuel Services Corp.		3,297		(118,033	)
MSC Industrial Direct Company, Inc. — Class A		1,950		(119,009	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
LONG SHORT EQUITY FUND

	Shares		Value
Fastenal Co.		3,262	$	(119,422	)
WABCO Holdings, Inc.*		1,140		(119,506	)
Ingram Micro, Inc. — Class A		4,419		(120,374	)
Nordstrom, Inc.		1,682		(120,616	)
Watsco, Inc.		1,033		(122,390	)
Tesla Motors, Inc.*		500		(124,200	)
WW Grainger, Inc.		587		(126,211	)
Advance Auto Parts, Inc.		745		(141,200	)
Total Consumer, Cyclical				(2,110,976	)
Financial - (4.0)%
NorthStar Asset Management Group, Inc.		1,000		(14,360	)
Discover Financial Services		590		(30,674	)
General Growth Properties REIT, Inc.		1,753		(45,525	)
NorthStar Realty Finance Corp.		6,181		(76,335	)
American Express Co.		1,463		(108,452	)
Artisan Partners Asset Management, Inc. — Class A		3,270		(115,202	)
Public Storage REIT		548		(115,973	)
Douglas Emmett, Inc.		4,075		(117,034	)
Federal Realty Investment Trust		866		(118,166	)
Lazard Ltd. — Class A		2,730		(118,209	)
Realty Income REIT Corp.		2,500		(118,475	)
Federated Investors, Inc. — Class B		4,320		(124,848	)
Charles Schwab Corp.		4,410		(125,950	)
TD Ameritrade Holding Corp.		3,960		(126,086	)
Affiliated Managers Group, Inc.*		740		(126,533	)
Air Lease Corp. — Class A		4,147		(128,225	)
T. Rowe Price Group, Inc.		1,850		(128,575	)
Ameriprise Financial, Inc.		1,180		(128,773	)
Eaton Vance Corp.		3,870		(129,335	)
Simon Property Group REIT, Inc.		707		(129,890	)
LPL Financial Holdings, Inc.		3,270		(130,048	)
Total Financial				(2,256,668	)
Basic Materials - (4.5)%
Airgas, Inc.		430		(38,412	)
Huntsman Corp.		8,460		(81,977	)
United States Steel Corp.		8,523		(88,810	)
Allegheny Technologies, Inc.		7,156		(101,472	)
Eastman Chemical Co.		1,590		(102,905	)
Sherwin-Williams Co.		490		(109,162	)
Monsanto Co.		1,299		(110,857	)
Air Products & Chemicals, Inc.		905		(115,460	)
Nucor Corp.		3,080		(115,654	)
Steel Dynamics, Inc.		6,863		(117,906	)
Praxair, Inc.		1,181		(120,297	)
WR Grace & Co.*		1,320		(122,826	)
Reliance Steel & Aluminum Co.		2,298		(124,116	)
Compass Minerals International, Inc.		1,585		(124,216	)
Ecolab, Inc.		1,142		(125,300	)
Tahoe Resources, Inc.		16,268		(125,914	)
Freeport-McMoRan, Inc.		13,214		(128,044	)
Southern Copper Corp.		4,867		(130,046	)
Alcoa, Inc.		13,524		(130,642	)
Newmont Mining Corp.		8,175		(131,372	)
Royal Gold, Inc.		2,800		(131,544	)
Total Basic Materials				(2,376,932	)
Communications - (4.4)%
Gannett Company, Inc.		1,122		(16,527	)
Discovery Communications, Inc. — Class A*		1,360		(35,401	)
Yelp, Inc. — Class A*		2,756		(59,695	)
Google, Inc. — Class C*		100		(60,842	)
Google, Inc. — Class A*		99		(63,199	)
Sirius XM Holdings, Inc.*		18,880		(70,611	)
Frontier Communications Corp.		23,814		(113,117	)
HomeAway, Inc.*		4,291		(113,883	)
eBay, Inc.*		4,675		(114,257	)
Zayo Group Holdings, Inc.*		4,519		(114,602	)
Level 3 Communications, Inc.*		2,657		(116,084	)
CenturyLink, Inc.		4,675		(117,436	)
Scripps Networks Interactive, Inc. — Class A		2,430		(119,532	)
IAC/InterActiveCorp		1,860		(121,402	)
Twitter, Inc.*		4,559		(122,819	)
Facebook, Inc. — Class A*		1,384		(124,422	)
Verizon Communications, Inc.		2,863		(124,569	)
AT&T, Inc.		3,858		(125,693	)
DISH Network Corp. — Class A*		2,180		(127,181	)
Viacom, Inc. — Class B		2,960		(127,724	)
Comcast Corp. — Class A		2,260		(129,363	)
LinkedIn Corp. — Class A*		689		(131,000	)
CDW Corp.		3,316		(135,492	)
Total Communications				(2,384,851	)
Energy - (8.2)%
California Resources Corp.		1,299		(3,377	)
WPX Energy, Inc.*		2,327		(15,405	)
Rice Energy, Inc.*		1,083		(17,501	)
Rowan Companies plc — Class A		1,861		(30,055	)
Whiting Petroleum Corp.*		2,380		(36,343	)
Kinder Morgan, Inc.		1,510		(41,797	)
Cobalt International Energy, Inc.*		7,224		(51,146	)
Cheniere Energy, Inc.*		1,201		(58,008	)
TerraForm Power, Inc. — Class A		5,770		(82,049	)
QEP Resources, Inc.		7,637		(95,692	)
Gulfport Energy Corp.*		3,378		(100,259	)
Murphy Oil Corp.		4,212		(101,930	)
Marathon Oil Corp.		6,742		(103,827	)
Energen Corp.		2,084		(103,908	)
Southwestern Energy Co.*		8,350		(105,962	)
Continental Resources, Inc.*		3,807		(110,289	)
Dril-Quip, Inc.*		1,918		(111,666	)
Range Resources Corp.		3,513		(112,838	)
Anadarko Petroleum Corp.		1,880		(113,533	)
Equities Corp.		1,754		(113,607	)
Hess Corp.		2,276		(113,937	)
Patterson-UTI Energy, Inc.		8,830		(116,026	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
LONG SHORT EQUITY FUND

	Shares		Value
ONEOK, Inc.		3,625	$	(116,725	)
Frank’s International N.V.		7,690		(117,888	)
Apache Corp.		3,020		(118,263	)
Devon Energy Corp.		3,200		(118,688	)
National Oilwell Varco, Inc.		3,173		(119,463	)
Marathon Petroleum Corp.		2,579		(119,485	)
FMC Technologies, Inc.*		3,866		(119,846	)
PBF Energy, Inc. — Class A		4,262		(120,316	)
Concho Resources, Inc.*		1,228		(120,712	)
Spectra Energy Corp.		4,605		(120,973	)
EOG Resources, Inc.		1,670		(121,576	)
Occidental Petroleum Corp.		1,841		(121,782	)
Cimarex Energy Co.		1,200		(122,976	)
Cabot Oil & Gas Corp. — Class A		5,631		(123,094	)
Phillips 66		1,628		(125,096	)
Chevron Corp.		1,591		(125,498	)
Diamondback Energy, Inc.*		1,945		(125,647	)
Noble Energy, Inc.		4,180		(126,152	)
Newfield Exploration Co.*		3,860		(126,994	)
Exxon Mobil Corp.		1,724		(128,180	)
ConocoPhillips		2,714		(130,163	)
Pioneer Natural Resources Co.		1,080		(131,371	)
Total Energy				(4,440,043	)
Industrial - (9.2)%
Flowserve Corp.		1,515		(62,327	)
Avnet, Inc.		1,634		(69,739	)
Xylem, Inc.		2,466		(81,008	)
Golar LNG Ltd.		3,012		(83,975	)
Trimble Navigation Ltd.*		5,315		(87,272	)
Genesee & Wyoming, Inc. — Class A*		1,506		(88,974	)
SBA Communications Corp. — Class A*		1,000		(104,740	)
Norfolk Southern Corp.		1,388		(106,043	)
Ryder System, Inc.		1,452		(107,506	)
AMETEK, Inc.		2,095		(109,610	)
Old Dominion Freight Line, Inc.*		1,800		(109,800	)
Teekay Corp.		3,712		(110,024	)
Union Pacific Corp.		1,250		(110,513	)
Pentair plc		2,195		(112,033	)
SunPower Corp. — Class A*		5,610		(112,424	)
J.B. Hunt Transport Services, Inc.		1,575		(112,455	)
Ingersoll-Rand plc		2,224		(112,912	)
Valmont Industries, Inc.		1,191		(113,014	)
Cummins, Inc.		1,043		(113,249	)
Caterpillar, Inc.		1,733		(113,269	)
Kirby Corp.*		1,862		(115,350	)
Manitowoc Company, Inc.		7,782		(116,730	)
Parker-Hannifin Corp.		1,201		(116,857	)
Crane Co.		2,520		(117,457	)
Landstar System, Inc.		1,856		(117,800	)
GATX Corp.		2,690		(118,764	)
Donaldson Company, Inc.		4,240		(119,059	)
Dover Corp.		2,094		(119,735	)
Deere & Co.		1,620		(119,880	)
Amphenol Corp. — Class A		2,382		(121,387	)
Jacobs Engineering Group, Inc.*		3,250		(121,648	)
Illinois Tool Works, Inc.		1,486		(122,313	)
Stanley Black & Decker, Inc.		1,270		(123,165	)
Kansas City Southern		1,358		(123,415	)
Wabtec Corp.		1,402		(123,446	)
Zebra Technologies Corp. — Class A*		1,620		(124,011	)
Fluor Corp.		2,935		(124,297	)
Middleby Corp.*		1,189		(125,071	)
Snap-on, Inc.		830		(125,280	)
KBR, Inc.		7,611		(126,799	)
Lockheed Martin Corp.		633		(131,227	)
AECOM*		4,901		(134,827	)
AMERCO		347		(136,534	)
Jabil Circuit, Inc.		6,750		(150,997	)
Total Industrial				(4,996,936	)
Total Common Stock Sold Short
(Proceeds $25,743,374)				(22,025,298	)
Total Securities Sold Short- (40.4)%
(Proceeds $25,743,374)			$	(22,025,298	)
Other Assets & Liabilities, net - 47.6%				25,658,605
Total Net Assets - 100.0%			$	53,920,086

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as short security collateral at September 30, 2015.
2	Affiliated issuer — See Note 10.
3	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $45,457,411)	$	42,933,350
Investments in affiliated issuers, at value (cost $3,070,875)		3,059,989
Repurchase agreements, at value (cost $4,293,440)		4,293,440
Total investments (cost $52,821,726)		50,286,779
Segregated cash with broker		25,741,165
Cash		4,232
Receivables:
Dividends		50,650
Fund shares sold		23,981
Foreign taxes reclaim		792
Securities lending income		45
Interest		5
Total assets		76,107,649
Liabilities:
Securities sold short, at value (proceeds $25,743,374)		22,025,298
Payable for:
Management fees		39,556
Fund shares redeemed		37,269
Distribution and service fees		22,162
Transfer agent and administrative fees		10,988
Portfolio accounting fees		4,395
Securities purchased		2,071
Miscellaneous		45,824
Total liabilities		22,187,563
Commitments and contingent liabilities (Note 13)		—
Net assets	$	53,920,086
Net assets consist of:
Paid in capital	$	119,607,243
Accumulated net investment loss		(500,165	)
Accumulated net realized loss on investments		(66,370,121	)
Net unrealized appreciation on investments		1,183,129
Net assets	$	53,920,086
A-Class:
Net assets	$	12,600,830
Capital shares outstanding		807,166
Net asset value per share	$	15.61
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.39
C-Class:
Net assets	$	17,917,748
Capital shares outstanding		1,271,624
Net asset value per share	$	14.09
P-Class
Net assets	$	22,970,314
Capital shares outstanding		1,466,676
Net asset value per share	$	15.66
Institutional Class
Net assets	$	431,194
Capital shares outstanding		27,221
Net asset value per share	$	15.84

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $1,289)	$	315,611
Income from securities lending, net		14,215
Dividends from securities of affiliated issuers		14,123
Interest		791
Total investment income		344,740
Expenses:
Management fees		229,698
Transfer agent and administrative fees		63,805
Distribution and service fees:
A-Class		12,601
C-Class		95,829
P-Class**		26,849
Portfolio accounting fees		25,522
Short sales dividend expense		152,304
Prime broker interest expense		38,253
Custodian fees		3,965
Trustees’ fees*		1,559
Miscellaneous		30,361
Total expenses		680,746
Net investment loss		(336,006	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(64,316	)
Futures contracts		(30,898	)
Securities sold short		(65,370	)
Net realized loss		(160,584	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(4,578,805	)
Investments in affiliated issuers		(10,886	)
Securities sold short		3,226,016
Net change in unrealized appreciation (depreciation)		(1,363,675	)
Net realized and unrealized loss		(1,524,259	)
Net decrease in net assets resulting from operations	$	(1,860,265	)

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(336,006	)	$	(353,812	)
Net realized gain (loss) on investments		(160,584	)		3,614,279
Net change in unrealized appreciation (depreciation) on investments		(1,363,675	)		(437,260	)
Net increase (decrease) in net assets resulting from operations		(1,860,265	)		2,823,207
Capital share transactions:
Proceeds from sale of shares
A-Class		9,501,737			2,265,846
C-Class		190,589			789,638
P-Class*		9,609,660			3,875,899
Institutional Class		149,752			380,674
Cost of shares redeemed
A-Class		(2,567,692	)		(4,148,005	)
C-Class		(1,505,421	)		(4,392,338	)
P-Class*		(5,925,554	)		(14,347,395	)
Institutional Class		(9,497	)		(116,016	)
Net increase (decrease) from capital share transactions		9,443,574			(15,691,697	)
Net increase (decrease) in net assets		7,583,309			(12,868,490	)
Net assets:
Beginning of period		46,336,777			59,205,267
End of period	$	53,920,086		$	46,336,777
Accumulated net investment loss at end of period	$	(500,165	)	$	(164,159	)
Capital share activity:
Shares sold
A-Class		595,041			147,669
C-Class		13,202			58,483
P-Class*		601,733			251,585
Institutional Class		9,354			25,112
Shares redeemed
A-Class		(163,123	)		(273,585	)
C-Class		(104,463	)		(320,706	)
P-Class*		(370,037	)		(953,740	)
Institutional Class		(585	)		(7,468	)
Net increase (decrease) in shares		581,122			(1,072,650	)

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			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	$	16.16		$	15.07		$	13.48		$	13.28		$	14.28		$	12.59
Income (loss) from investment operations:
Net investment income (loss)c		(.08	)		(.06	)		(.13	)		(.05	)		.03			(.04	)
Net gain (loss) on investments (realized and unrealized)		(.47	)		1.15			1.72			.30			(1.03	)		1.73
Total from investment operations		(.55	)		1.09			1.59			.25			(1.00	)		1.69
Less distributions from:
Net investment income		—			—			—			(.05	)		—			—
Total distributions		—			—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—			—	d
Net asset value, end of period	$	15.61		$	16.16		$	15.07		$	13.48		$	13.28		$	14.28
Total Returne		(3.40	%)		7.23	%		11.80	%		1.89	%		(7.00	%)		13.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,601		$	6,063		$	7,552		$	13,106		$	16,510		$	25,447
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(0.42	%)		(0.91	%)		(0.35	%)		0.21	%		(0.33	%)
Total expensesg,h		2.43	%		2.17	%		2.34	%		1.92	%		1.66	%		1.71	%
Portfolio turnover rate		115	%		331	%		256	%		183	%		190	%		231	%

C-Class	Period Ended September 30, 2015a			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	$	14.64		$	13.76		$	12.40		$	12.31		$	13.33		$	11.85
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.16	)		(.24	)		(.14	)		(.07	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(.42	)		1.04			1.60			.28			(.95	)		1.61
Total from investment operations		(.55	)		.88			1.36			.14			(1.02	)		1.48
Less distributions from:
Net investment income		—			—			—			(.05	)		—			—
Total distributions		—			—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—			—	d
Net asset value, end of period	$	14.09		$	14.64		$	13.76		$	12.40		$	12.31		$	13.33
Total Returne		(3.76	%)		6.40	%		10.97	%		1.14	%		(7.65	%)		12.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,918		$	19,952		$	22,354		$	23,554		$	32,503		$	50,381
Ratios to average net assets:
Net investment income (loss)		(1.79	%)		(1.16	%)		(1.79	%)		(1.12	%)		(0.54	%)		(1.08	%)
Total expensesg,h		3.12	%		2.92	%		3.11	%		2.69	%		2.41	%		2.46	%
Portfolio turnover rate		115	%		331	%		256	%		183	%		190	%		231	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (continued)

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

P-Class*	Period Ended September 30, 2015a			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	$	16.21		$	15.12		$	13.53		$	13.33		$	14.32		$	12.63
Income (loss) from investment operations:
Net investment income (loss)c		(.08	)		(.07	)		(.16	)		(.04	)		.03			(.04	)
Net gain (loss) on investments (realized and unrealized)		(.47	)		1.16			1.75			.29			(1.02	)		1.73
Total from investment operations		(.55	)		1.09			1.59			.25			(.99	)		1.69
Less distributions from:
Net investment income		—			—			—			(.05	)		—			—
Total distributions		—			—			—			(.05	)		—			—
Redemption fees collected		—			—			—			—			—			—	d
Net asset value, end of period	$	15.66		$	16.21		$	15.12		$	13.53		$	13.33		$	14.32
Total Returne		(3.39	%)		7.21	%		11.75	%		1.88	%		(6.91	%)		13.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,970		$	20,020		$	29,287		$	26,257		$	54,589		$	87,212
Ratios to average net assets:
Net investment income (loss)		(1.03	%)		(0.43	%)		(1.07	%)		(0.29	%)		0.20	%		(0.31	%)
Total expensesg,h		2.38	%		2.17	%		2.36	%		1.88	%		1.66	%		1.70	%
Portfolio turnover rate		115	%		331	%		256	%		183	%		190	%		231	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Period Ended March 31, 2012b
Per Share Data
Net asset value, beginning of period	$	16.38		$	15.24		$	13.60		$	13.33		$	12.39
Income (loss) from investment operations:
Net investment income (loss)c		(.06	)		(—	)f		(.12	)		(.02	)		.06
Net gain (loss) on investments (realized and unrealized)		(.48	)		1.14			1.76			.31			.88
Total from investment operations		(.54	)		1.14			1.64			.29			.94
Less distributions from:
Net investment income		—			—			—			(.02	)		—
Total distributions		—			—			—			(.02	)		—
Net asset value, end of period	$	15.84		$	16.38		$	15.24		$	13.60		$	13.33
Total Returne		(3.30	%)		7.48	%		12.06	%		2.15	%		7.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	431		$	302		$	12		$	11		$	11
Ratios to average net assets:
Net investment income (loss)		(0.77	%)		(0.01	%)		(0.82	%)		(0.17	%)		1.29	%
Total expensesg,h		2.14	%		1.95	%		2.11	%		1.72	%		1.36	%
Portfolio turnover rate		115	%		331	%		256	%		183	%		190	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: November 30, 2011. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Redemption fees collected are less than $0.01 per share.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
f	Net investment income (loss) is less than $0.01 per share.
g	Does not include expenses of the underlying funds in which the Fund invests.
h	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:

	09/30/15	03/31/15	03/31/14	03/28/13	03/31/12	03/31/11
A-Class	1.64%	1.66%	1.68%	1.65%	1.66%	1.69%
C-Class	2.39%	2.41%	2.42%	2.40%	2.41%	2.44%
P-Class	1.64%	1.66%	1.67%	1.65%	1.66%	1.69%
Institutional Class	1.39%	1.40%	1.42%	1.41%	N/A	N/A

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

FUND PROFILE (Unaudited) September 30, 2015

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

OBJECTIVE: Seeks to achieve capital growth.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments 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
P-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)
Guggenheim Strategy Fund II	25.9%
Guggenheim Strategy Fund I	25.8%
iShares iBoxx $ High Yield Corporate Bond ETF	23.0%
Valeant Pharmaceuticals International, Inc.	0.2%
Royal Bank of Scotland Group plc ADR	0.2%
General Motors Co.	0.2%
Netflix, Inc.	0.2%
HCA Holdings, Inc.	0.1%
T-Mobile US, Inc.	0.1%
Petroleo Brasileiro S.A. ADR	0.1%
Top Ten Total	75.8%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

20 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
COMMON STOCKS† - 8.0%
Consumer, Cyclical - 1.8%
General Motors Co.		440	$	13,208
American Airlines Group, Inc.		190		7,378
L Brands, Inc.		80		7,211
Hilton Worldwide Holdings, Inc.		280		6,423
United Continental Holdings, Inc.*		110		5,836
Royal Caribbean Cruises Ltd.		60		5,345
Dollar Tree, Inc.*		70		4,666
Fiat Chrysler Automobiles N.V.*		350		4,623
Best Buy Company, Inc.		100		3,712
Norwegian Cruise Line Holdings Ltd.*		60		3,438
Liberty Interactive Corporation QVC Group — Class A*		130		3,410
Hanesbrands, Inc.		110		3,184
MGM Resorts International*		160		2,952
DR Horton, Inc.		100		2,936
Jarden Corp.*		60		2,933
Lennar Corp. — Class A		60		2,888
Foot Locker, Inc.		40		2,879
Darden Restaurants, Inc.		40		2,742
LKQ Corp.*		90		2,553
Goodyear Tire & Rubber Co.		80		2,347
Lear Corp.		20		2,176
PVH Corp.		20		2,039
PulteGroup, Inc.		100		1,887
HD Supply Holdings, Inc.*		60		1,717
Toll Brothers, Inc.*		50		1,711
Rite Aid Corp.*		280		1,700
Wynn Resorts Ltd.		30		1,594
Penske Automotive Group, Inc.		30		1,452
Brunswick Corp.		30		1,437
Tempur Sealy International, Inc.*		20		1,429
Michaels Companies, Inc.*		60		1,386
Six Flags Entertainment Corp.		30		1,374
GameStop Corp. — Class A		30		1,236
Scotts Miracle-Gro Co. — Class A		20		1,216
Cedar Fair, LP		20		1,052
Office Depot, Inc.*		160		1,027
Extended Stay America, Inc.		60		1,007
Cinemark Holdings, Inc.		30		974
Choice Hotels International, Inc.		20		953
Sally Beauty Holdings, Inc.*		40		950
Carter’s, Inc.		10		906
Tenneco, Inc.*		20		895
Gaming and Leisure Properties, Inc.		30		891
Vista Outdoor, Inc.*		20		889
Group 1 Automotive, Inc.		10		852
JC Penney Company, Inc.*		90		836
Asbury Automotive Group, Inc.*		10		812
Cooper Tire & Rubber Co.		20		790
AMC Entertainment Holdings, Inc. — Class A		30		756
Regal Entertainment Group — Class A		40		748
Wendy’s Co.		80		692
Sears Holdings Corp.*		30		678
Pinnacle Entertainment, Inc.*		20		677
CST Brands, Inc.		20		673
TRI Pointe Group, Inc.*		50		655
Wolverine World Wide, Inc.		30		649
CalAtlantic Group, Inc.*		80		640
Dana Holding Corp.		40		635
Ferrellgas Partners, LP		30		593
Outerwall, Inc.		10		569
Taylor Morrison Home Corp. — Class A*		30		560
Boyd Gaming Corp.*		30		489
WESCO International, Inc.*		10		465
Men’s Wearhouse, Inc.		10		425
Metaldyne Performance Group, Inc.		20		420
Ryland Group, Inc.		10		408
KB Home		30		407
First Cash Financial Services, Inc.*		10		401
American Axle & Manufacturing Holdings, Inc.*		20		399
Interval Leisure Group, Inc.		20		367
Meritage Homes Corp.*		10		365
DreamWorks Animation SKG, Inc. — Class A*		20		349
Penn National Gaming, Inc.*		20		336
Meritor, Inc.*		30		319
Mobile Mini, Inc.		10		308
Caleres, Inc.		10		305
National CineMedia, Inc.		20		268
MDC Holdings, Inc.		10		262
Navistar International Corp.*		20		254
Conn’s, Inc.*		10		240
M/I Homes, Inc.*		10		236
WCI Communities, Inc.*		10		226
Scientific Games Corp. — Class A*		20		209
William Lyon Homes — Class A*		10		206
Sonic Automotive, Inc. — Class A		10		204
Carmike Cinemas, Inc.*		10		201
Isle of Capri Casinos, Inc.*		10		174
H&E Equipment Services, Inc.		10		167
Beazer Homes USA, Inc.*		10		133
Ruby Tuesday, Inc.*		20		124
Carrols Restaurant Group, Inc.*		10		119
Gol Linhas Aereas Inteligentes S.A. ADR*		100		97
Eldorado Resorts, Inc.*		10		90
Hovnanian Enterprises, Inc. — Class A*		40		71
Titan International, Inc.		10		66
Christopher & Banks Corp.*		10		11
Total Consumer, Cyclical				143,498
Consumer, Non-cyclical - 1.5%
Valeant Pharmaceuticals International, Inc.*		90		16,054
HCA Holdings, Inc.*		120		9,283
Constellation Brands, Inc. — Class A		60		7,513
Fresenius Medical Care AG & Company KGaA ADR		180		7,022

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
ConAgra Foods, Inc.		120	$	4,861
DaVita HealthCare Partners, Inc.*		60		4,340
Endo International plc*		60		4,157
Universal Health Services, Inc. — Class B		30		3,744
Grifols S.A. ADR		120		3,648
Hologic, Inc.*		80		3,130
Sabre Corp.		80		2,174
Quintiles Transnational Holdings, Inc.*		30		2,087
Hertz Global Holdings, Inc.*		120		2,007
WhiteWave Foods Co. — Class A*		50		2,007
Mallinckrodt plc*		30		1,918
Spectrum Brands Holdings, Inc.		20		1,830
United Rentals, Inc.*		30		1,802
Edgewell Personal Care Co.		20		1,631
Centene Corp.*		30		1,627
Service Corporation International		60		1,626
ADT Corp.		50		1,495
Pilgrim’s Pride Corp.		70		1,455
Live Nation Entertainment, Inc.*		60		1,442
ServiceMaster Global Holdings, Inc.*		40		1,342
Acadia Healthcare Company, Inc.*		20		1,325
Avis Budget Group, Inc.*		30		1,310
Community Health Systems, Inc.*		30		1,283
Pinnacle Foods, Inc.		30		1,256
Teleflex, Inc.		10		1,242
Health Net, Inc.*		20		1,204
Post Holdings, Inc.*		20		1,182
HealthSouth Corp.		30		1,151
Tenet Healthcare Corp.*		30		1,108
Hill-Rom Holdings, Inc.		20		1,040
Alere, Inc.*		20		963
RR Donnelley & Sons Co.		60		874
WEX, Inc.*		10		868
WellCare Health Plans, Inc.*		10		862
Horizon Pharma plc*		40		793
TreeHouse Foods, Inc.*		10		778
Amsurg Corp. — Class A*		10		777
Cimpress N.V.*		10		761
B&G Foods, Inc.		20		729
Vector Group Ltd.		32		724
LifePoint Health, Inc.*		10		709
CEB, Inc.		10		684
Sotheby’s		20		640
Owens & Minor, Inc.		20		639
Darling Ingredients, Inc.*		50		562
Deluxe Corp.		10		557
SUPERVALU, Inc.*		70		503
Dean Foods Co.		30		496
Ingles Markets, Inc. — Class A		10		478
Prestige Brands Holdings, Inc.*		10		452
Select Medical Holdings Corp.		40		432
FTI Consulting, Inc.*		10		415
AMAG Pharmaceuticals, Inc.*		10		397
Avon Products, Inc.		110		358
Cardtronics, Inc.*		10		327
Surgical Care Affiliates, Inc.*		10		327
Cott Corp.		30		325
Kindred Healthcare, Inc.		20		315
Diamond Foods, Inc.*		10		309
Revlon, Inc. — Class A*		10		295
ExamWorks Group, Inc.*		10		292
StoneMor Partners, LP		10		273
Rent-A-Center, Inc.		10		243
ACCO Brands Corp.*		30		212
Hanger, Inc.*		10		136
Quad/Graphics, Inc.		10		121
Elizabeth Arden, Inc.*		10		117
Everi Holdings, Inc.*		20		103
Great Lakes Dredge & Dock Corp.*		20		101
BioScrip, Inc.*		20		37
Total Consumer, Non-cyclical				119,280
Communications - 1.2%
Netflix, Inc.*		120		12,391
T-Mobile US, Inc.*		220		8,758
DISH Network Corp. — Class A*		130		7,583
Nokia Oyj ADR		1,050		7,119
Telecom Italia SpA ADR*		500		6,140
Sirius XM Holdings, Inc.*		1,500		5,610
Charter Communications, Inc. — Class A*		30		5,275
Expedia, Inc.		40		4,707
Nielsen Holdings plc		100		4,447
Level 3 Communications, Inc.*		100		4,369
CenturyLink, Inc.		160		4,019
Alcatel-Lucent ADR*		800		2,920
Cablevision Systems Corp. — Class A		80		2,598
VeriSign, Inc.*		30		2,117
CDW Corp.		50		2,043
Zayo Group Holdings, Inc.*		70		1,775
Frontier Communications Corp.		320		1,520
CommScope Holding Company, Inc.*		50		1,501
AMC Networks, Inc. — Class A*		20		1,463
IAC/InterActiveCorp		20		1,305
EchoStar Corp. — Class A*		30		1,291
Starz — Class A*		30		1,120
Tribune Media Co. — Class A		30		1,068
Sinclair Broadcast Group, Inc. — Class A		30		760
Clear Channel Outdoor Holdings, Inc. — Class A*		100		713
United States Cellular Corp.*		20		709
j2 Global, Inc.		10		709
ViaSat, Inc.*		10		643
New York Times Co. — Class A		50		591
Anixter International, Inc.*		10		578
NeuStar, Inc. — Class A*		20		545
Plantronics, Inc.		10		509
Nexstar Broadcasting Group, Inc. — Class A		10		474

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
West Corp.		20	$	448
Media General, Inc.*		30		420
DigitalGlobe, Inc.*		20		380
Bankrate, Inc.*		30		311
Cogent Communications Holdings, Inc.		10		272
Gray Television, Inc.*		20		255
EarthLink Holdings Corp.		30		233
Consolidated Communications Holdings, Inc.		10		193
Cincinnati Bell, Inc.*		60		187
MDC Partners, Inc. — Class A		10		184
Windstream Holdings, Inc.		30		184
General Communication, Inc. — Class A*		10		173
HC2 Holdings, Inc.*		10		70
Cumulus Media, Inc. — Class A*		70		49
Total Communications				100,729
Financial - 0.9%
Royal Bank of Scotland Group plc ADR*		1,620		15,454
Crown Castle International REIT Corp.		90		7,097
Discover Financial Services		120		6,239
Equinix, Inc.		20		5,468
Ally Financial, Inc.*		140		2,853
Icahn Enterprises, LP		40		2,681
CIT Group, Inc.		60		2,402
Unum Group		70		2,245
E*TRADE Financial Corp.*		80		2,106
Credit Acceptance Corp.*		10		1,969
AerCap Holdings N.V.*		50		1,912
Iron Mountain REIT, Inc.		60		1,861
Lazard Ltd. — Class A		40		1,732
Lamar Advertising Co. — Class A		30		1,565
Realogy Holdings Corp.*		40		1,505
Navient Corp.		110		1,237
Synovus Financial Corp.		40		1,184
Howard Hughes Corp.*		10		1,147
First Niagara Financial Group, Inc.		100		1,021
American Capital Ltd.*		80		973
Radian Group, Inc.		60		955
CNO Financial Group, Inc.		50		941
Popular, Inc.		30		907
Corrections Corporation of America		30		886
Outfront Media, Inc.		40		832
Hanover Insurance Group, Inc.		10		777
Medical Properties Trust, Inc.		70		774
CoreLogic, Inc.*		20		745
Kennedy-Wilson Holdings, Inc.		30		665
CyrusOne, Inc.		20		653
Genworth Financial, Inc. — Class A*		140		647
GEO Group, Inc.		20		595
DuPont Fabros Technology, Inc.		20		518
Ryman Hospitality Properties, Inc.		10		492
Sabra Health Care REIT, Inc.		20		464
QTS Realty Trust, Inc. — Class A		10		437
Ladder Capital Corp. — Class A		30		430
Nationstar Mortgage Holdings, Inc.*		30		416
Aircastle Ltd.		20		412
KCG Holdings, Inc. — Class A*		30		329
Potlatch Corp.		10		288
FelCor Lodging Trust, Inc.		40		283
PHH Corp.*		20		282
Ocwen Financial Corp.*		40		268
iStar, Inc.*		20		252
Walter Investment Management Corp.*		10		163
Fly Leasing Ltd. ADR		10		132
Forestar Group, Inc.*		10		132
Enova International, Inc.*		10		102
Total Financial				77,428
Energy - 0.9%
Petroleo Brasileiro S.A. ADR*		1,790		7,787
Williams Companies, Inc.		210		7,738
Energy Transfer Equity, LP		300		6,243
Concho Resources, Inc.*		30		2,948
Tesoro Corp.		30		2,916
Cheniere Energy Partners, LP		100		2,634
MarkWest Energy Partners, LP		60		2,575
ONEOK, Inc.		60		1,932
Antero Resources Corp.*		80		1,693
Newfield Exploration Co.*		50		1,645
Range Resources Corp.		50		1,606
Targa Resources Partners, LP		50		1,452
Chesapeake Energy Corp.		190		1,393
Tesoro Logistics, LP		30		1,350
Equities Midstream Partners, LP		20		1,327
Western Refining, Inc.		30		1,324
Transocean Ltd.		100		1,292
Diamondback Energy, Inc.*		20		1,292
Genesis Energy, LP		30		1,150
Energen Corp.		20		997
Whiting Petroleum Corp.*		60		916
NuStar Energy, LP		20		896
Gulfport Energy Corp.*		30		890
Memorial Resource Development Corp.*		50		879
Boardwalk Pipeline Partners, LP		70		824
CVR Energy, Inc.		20		821
DCP Midstream Partners, LP		30		725
Northern Tier Energy, LP		30		684
Sunoco, LP		20		677
Suburban Propane Partners, LP		20		657
Rice Energy, Inc.*		40		646
SM Energy Co.		20		641
QEP Resources, Inc.		50		627
RSP Permian, Inc.*		30		608
NGL Energy Partners, LP		30		599
CONSOL Energy, Inc.		60		587
Holly Energy Partners, LP		20		581
TerraForm Power, Inc. — Class A		40		569
Laredo Petroleum, Inc.*		60		566

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
PBF Energy, Inc. — Class A		20	$	565
Murphy USA, Inc.*		10		550
PDC Energy, Inc.*		10		530
WPX Energy, Inc.*		80		530
Calumet Specialty Products Partners, LP		20		486
SemGroup Corp. — Class A		10		432
Matador Resources Co.*		20		415
Exterran Holdings, Inc.		20		359
Summit Midstream Partners, LP		20		354
Oasis Petroleum, Inc.*		40		347
Exterran Partners, LP		20		329
Crestwood Midstream Partners, LP		50		309
Carrizo Oil & Gas, Inc.*		10		305
McDermott International, Inc.*		70		301
Precision Drilling Corp.		80		298
Atwood Oceanics, Inc.		20		296
Bristow Group, Inc.		10		262
Ultra Petroleum Corp.*		40		256
Forum Energy Technologies, Inc.*		20		244
Denbury Resources, Inc.		100		244
Rose Rock Midstream, LP		10		243
Western Refining Logistics, LP		10		209
Baytex Energy Corp.		60		192
PBF Logistics, LP		10		172
SunCoke Energy, Inc.		20		156
Vanguard Natural Resources LLC		20		152
CSI Compressco, LP		10		125
Sanchez Energy Corp.*		20		123
BreitBurn Energy Partners, LP		60		122
Eclipse Resources Corp.*		60		117
Unit Corp.*		10		113
SunCoke Energy Partners, LP		10		111
Peabody Energy Corp.		80		110
Natural Resource Partners, LP		40		102
Stone Energy Corp.*		20		99
Memorial Production Partners, LP		20		96
Jones Energy, Inc. — Class A*		20		96
Northern Oil and Gas, Inc.*		20		88
Ocean Rig UDW, Inc.		40		85
Atlas Resource Partners, LP		30		84
Legacy Reserves, LP		20		82
LinnCo LLC		30		81
Parker Drilling Co.*		30		79
Pacific Drilling S.A.*		60		75
Gulfmark Offshore, Inc. — Class A		10		61
W&T Offshore, Inc.		20		60
EV Energy Partners, LP		10		60
Cloud Peak Energy, Inc.*		20		53
Pioneer Energy Services Corp.*		20		42
Rex Energy Corp.*		20		41
Bonanza Creek Energy, Inc.*		10		41
Basic Energy Services, Inc.*		10		33
Bill Barrett Corp.*		10		33
Triangle Petroleum Corp.*		20		28
Seventy Seven Energy, Inc.*		20		28
PetroQuest Energy, Inc.*		20		23
Gastar Exploration, Inc.*		20		23
Comstock Resources, Inc.		10		19
Approach Resources, Inc.*		10		19
Total Energy				75,575
Industrial - 0.7%
TransDigm Group, Inc.*		20		4,247
SBA Communications Corp. — Class A*		40		4,189
Vulcan Materials Co.		40		3,567
Martin Marietta Materials, Inc.		20		3,039
Sealed Air Corp.		60		2,813
Masco Corp.		100		2,518
Ball Corp.		40		2,487
Sensata Technologies Holding N.V.*		50		2,217
Spirit AeroSystems Holdings, Inc. — Class A*		40		1,934
Crown Holdings, Inc.*		40		1,830
Flextronics International Ltd.*		160		1,686
Orbital ATK, Inc.		20		1,437
Owens Corning		30		1,258
Graphic Packaging Holding Co.		90		1,151
Jabil Circuit, Inc.		50		1,119
AECOM*		40		1,100
Huntington Ingalls Industries, Inc.		10		1,072
USG Corp.*		40		1,065
Silgan Holdings, Inc.		20		1,041
Trinity Industries, Inc.		40		907
Berry Plastics Group, Inc.*		30		902
Clean Harbors, Inc.*		20		879
Owens-Illinois, Inc.*		40		829
Zebra Technologies Corp. — Class A*		10		766
Oshkosh Corp.		20		727
Dycom Industries, Inc.*		10		724
XPO Logistics, Inc.*		30		715
Covanta Holding Corp.		40		698
Greif, Inc. — Class A		20		638
Masonite International Corp.*		10		606
Manitowoc Company, Inc.		40		600
Teekay Corp.		20		593
Louisiana-Pacific Corp.*		40		570
Summit Materials, Inc. — Class A*		30		563
Moog, Inc. — Class A*		10		541
Terex Corp.		30		538
EnerSys		10		536
Hillenbrand, Inc.		20		520
Belden, Inc.		10		467
Sanmina Corp.*		20		427
Triumph Group, Inc.		10		421
EnPro Industries, Inc.		10		392
Builders FirstSource, Inc.*		30		380
Headwaters, Inc.*		20		376
Actuant Corp. — Class A		20		368

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
SPX FLOW, Inc.*		10	$	344
Aerojet Rocketdyne Holdings, Inc.*		20		324
MasTec, Inc.*		20		317
Trinseo S.A.*		10		253
Boise Cascade Co.*		10		252
Martin Midstream Partners, LP		10		244
Ply Gem Holdings, Inc.*		20		234
NCI Building Systems, Inc.*		20		211
Briggs & Stratton Corp.		10		193
Gibraltar Industries, Inc.*		10		184
Harsco Corp.		20		181
Tutor Perini Corp.*		10		165
Griffon Corp.		10		158
LSB Industries, Inc.*		10		153
Era Group, Inc.*		10		150
Navios Maritime Acquisition Corp.		40		141
Hornbeck Offshore Services, Inc.*		10		135
SPX Corp.		10		119
General Cable Corp.		10		119
Kratos Defense & Security Solutions, Inc.*		20		84
Navios Maritime Holdings, Inc.		30		75
Casella Waste Systems, Inc. — Class A*		10		58
AM Castle & Co.*		10		22
Total Industrial				59,569
Technology - 0.4%
Activision Blizzard, Inc.		200		6,177
NXP Semiconductor N.V.*		70		6,095
Micron Technology, Inc.*		310		4,644
Freescale Semiconductor Ltd.*		90		3,292
IHS, Inc. — Class A*		20		2,320
SS&C Technologies Holdings, Inc.		30		2,101
MSCI, Inc. — Class A		30		1,784
Nuance Communications, Inc.*		90		1,473
Open Text Corp.		30		1,343
Brocade Communications Systems, Inc.		120		1,246
NCR Corp.*		50		1,138
Solera Holdings, Inc.		20		1,080
Leidos Holdings, Inc.		20		826
ACI Worldwide, Inc.*		30		634
Entegris, Inc.*		40		528
MedAssets, Inc.*		20		401
Amkor Technology, Inc.*		70		314
Unisys Corp.*		10		119
Magnachip Semiconductor Corp.*		10		66
Total Technology				35,581
Utilities - 0.3%
Exelon Corp.		240		7,128
PPL Corp.		190		6,249
FirstEnergy Corp.		120		3,757
AES Corp.		190		1,860
Calpine Corp.*		100		1,459
NRG Energy, Inc.		90		1,337
AmeriGas Partners, LP		30		1,246
Dynegy, Inc.*		40		827
NRG Yield, Inc. — Class A		50		558
Global Partners, LP		10		283
Total Utilities				24,704
Basic Materials - 0.3%
Alcoa, Inc.		360		3,477
ArcelorMittal		470		2,420
Celanese Corp. — Class A		40		2,367
Ashland, Inc.		20		2,012
WR Grace & Co.*		20		1,861
Steel Dynamics, Inc.		70		1,202
Compass Minerals International, Inc.		10		784
Platform Specialty Products Corp.*		60		759
Huntsman Corp.		70		678
Eldorado Gold Corp.		210		675
PolyOne Corp.		20		587
Chemtura Corp.*		20		572
Kinross Gold Corp.*		330		568
Clearwater Paper Corp.*		10		473
Allegheny Technologies, Inc.		30		425
United States Steel Corp.		40		416
Commercial Metals Co.		30		407
New Gold, Inc.*		150		341
Olin Corp.		20		336
A. Schulman, Inc.		10		325
Axiall Corp.		20		314
Resolute Forest Products, Inc.*		30		249
Hecla Mining Co.		110		217
Koppers Holdings, Inc.		10		202
Mercer International, Inc.		20		201
IAMGOLD Corp.*		120		196
Constellium N.V. — Class A*		30		182
Kraton Performance Polymers, Inc.*		10		179
PH Glatfelter Co.		10		172
Tronox Ltd. — Class A		30		131
AK Steel Holding Corp.*		50		121
Rentech Nitrogen Partners, LP		10		118
Coeur Mining, Inc.*		40		113
Cliffs Natural Resources, Inc.		40		98
Century Aluminum Co.*		20		92
Horsehead Holding Corp.*		20		61
Total Basic Materials				23,331
Diversified - 0.0%
Leucadia National Corp.		100		2,026
HRG Group, Inc.*		60		704
Total Diversified				2,730
Total Common Stocks
(Cost $704,365)				662,425

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 23.0%
iShares iBoxx $ High Yield Corporate Bond ETF		22,700	$	1,890,682
Total Exchange-Traded Funds
(Cost $1,984,812)				1,890,682
MUTUAL FUNDS† - 51.6%
Guggenheim Strategy Fund II1		85,864		2,133,721
Guggenheim Strategy Fund I1		85,389		2,124,478
Total Mutual Funds
(Cost $4,271,347)				4,258,199

	Face Amount
REPURCHASE AGREEMENTS††,2 - 2.4%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	111,798		111,798
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		42,792		42,792
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		40,160		40,160
Total Repurchase Agreements
(Cost $194,750)				194,750
Total Investments - 85.0%
(Cost $7,155,274)			$	7,006,056
Other Assets & Liabilities, net - 15.0%				1,240,200
Total Net Assets - 100.0%			$	8,246,256

	Contracts		Unrealized Gain (Loss)
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $3,254,344)		27	$	19,999
EQUITY FUTURES CONTRACTS PURCHASED†
December 2015 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $766,640)		7	$	(38,202	)

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse International LLC March 2016 Credit Suisse Merger Arbitrage Liquid Index Swap, Terminating 03/18/163 (Notional Value $5,834,545)		5,341	$	(42,404	)

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS PROTECTION SOLD††,4
Index	Counterparty	Protection Premium Rate	Maturity Date	Notional Principal	Notional Value	Upfront Premiums Received	Unrealized Depreciation
CDX.HY-25 Index	Barclays Bank plc	5.00%	12/20/20	$ 1,000,000	$ (999,362)	$ (554)	$ (84)
CDX.HY-25 Index	Goldman Sachs International	5.00%	12/20/20	3,300,000	(3,297,894)	(1,827)	(278)

*	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	Affiliated issuer — See Note 10.
2	Repurchase Agreements — See Note 5.
3	Total Return based on Credit Suisse Merger Arbitrage Liquid Index +/- financing at a variable rate.
4	Credit Default Swaps — See Note 2.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments in unaffiliated issuers, at value (cost $2,689,177)	$	2,553,107
Investments in affiliated issuers, at value (cost $4,271,347)		4,258,199
Repurchase agreements, at value (cost $194,750)		194,750
Total investments (cost $7,155,274)		7,006,056
Segregated cash with broker		1,323,080
Receivables:
Variation margin		11,338
Protection fees on credit default swaps		5,973
Dividends		4,448
Investment adviser		679
Foreign taxes reclaim		54
Fund shares sold		24
Total assets		8,351,652
Liabilities:
Unrealized depreciation on swap agreements		42,766
Unamortized upfront premiums received on credit default swaps		2,381
Payable for:
Fund shares redeemed		35,751
Management fees		6,302
Securities purchased		4,125
Transfer agent and administrative fees		1,750
Distribution and service fees		1,576
Portfolio accounting fees		700
Miscellaneous		10,045
Total liabilities		105,396
Commitments and contingent liabilities (Note 13)		—
Net assets	$	8,246,256
Net assets consist of:
Paid in capital	$	9,109,782
Undistributed net investment income		117,062
Accumulated net realized loss on investments		(770,401	)
Net unrealized depreciation on investments		(210,187	)
Net assets	$	8,246,256
A-Class:
Net assets	$	953,465
Capital shares outstanding		37,863
Net asset value per share	$	25.18
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.44
C-Class:
Net assets	$	946,236
Capital shares outstanding		39,301
Net asset value per share	$	24.08
P-Class:
Net assets	$	2,438,186
Capital shares outstanding		96,820
Net asset value per share	$	25.18
Institutional Class
Net assets	$	3,908,369
Capital shares outstanding		152,989
Net asset value per share	$	25.55

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $151)	$	63,203
Dividends from securities of affiliated issuers		20,225
Income from securities lending, net		827
Interest		116
Total investment income		84,371
Expenses:
Management fees		42,577
Transfer agent and administrative fees		11,827
Distribution and service fees:
A-Class		1,472
C-Class		5,623
P-Class**		4,051
Portfolio accounting fees		4,731
Licensing fees		16,558
Custodian fees		544
Trustees’ fees*		326
Miscellaneous		5,295
Total expenses		93,004
Less:
Expenses waived by Adviser		(4,488	)
Net expenses		88,516
Net investment loss		(4,145	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		3,456
Swap agreements		(174,574	)
Futures contracts		33,617
Net realized loss		(137,501	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(286,400	)
Investments in affiliated issuers		(13,148	)
Swap agreements		(58,356	)
Futures contracts		(74,358	)
Net change in unrealized appreciation (depreciation)		(432,262	)
Net realized and unrealized loss		(569,763	)
Net decrease in net assets resulting from operations	$	(573,908	)

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(4,145	)	$	(122,551	)
Net realized loss on investments		(137,501	)		(459,938	)
Net change in unrealized appreciation (depreciation) on investments		(432,262	)		317,978
Net decrease in net assets resulting from operations		(573,908	)		(264,511	)
Distributions to shareholders from:
Net investment income
A-Class		—			(3,504	)
C-Class		—			(3,120	)
P-Class*		—			(7,993	)
Institutional Class		—			(7,317	)
Net realized gains
A-Class		—			(66,854	)
C-Class		—			(59,527	)
P-Class*		—			(152,483	)
Institutional Class		—			(139,593	)
Total distributions to shareholders		—			(440,391	)
Capital share transactions:
Proceeds from sale of shares
A-Class		117,262			2,380,986
C-Class		13,938			524,109
P-Class*		426,052			2,315,469
Institutional Class		1,407,586			3,241,410
Distributions reinvested
A-Class		—			58,305
C-Class		—			61,687
P-Class*		—			157,641
Institutional Class		—			146,099
Cost of shares redeemed
A-Class		(468,697	)		(5,215,772	)
C-Class		(229,741	)		(517,330	)
P-Class*		(1,116,195	)		(5,658,844	)
Institutional Class		(994,495	)		(465,399	)
Net decrease from capital share transactions		(844,290	)		(2,971,639	)
Net decrease in net assets		(1,418,198	)		(3,676,541	)
Net assets:
Beginning of period		9,664,454			13,340,995
End of period	$	8,246,256		$	9,664,454
Undistributed net investment income at end of period	$	117,062		$	121,207

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Capital share activity:
Shares sold
A-Class		4,390			85,090
C-Class		548			19,302
P-Class*		15,852			83,244
Institutional Class		52,461			115,101
Shares issued from reinvestment of distributions
A-Class		—			2,286
C-Class		—			2,515
P-Class*		—			6,180
Institutional Class		—			5,658
Shares redeemed
A-Class		(17,645	)		(187,661	)
C-Class		(9,046	)		(19,532	)
P-Class*		(42,743	)		(205,278	)
Institutional Class		(37,314	)		(16,890	)
Net decrease in shares		(33,497	)		(109,985	)

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	26.82		$	28.42		$	27.56		$	25.37		$	26.86		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.01	)		(.31	)		(.49	)		(.21	)		(.37	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(1.63	)		(.09	)		3.09			2.40			(.36	)		4.27
Total from investment operations		(1.64	)		(.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	$	25.18		$	26.82		$	28.42		$	27.56		$	25.37		$	26.86
Total Returnd		(6.11	%)		(1.18	%)		9.58	%		8.63	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	953		$	1,371		$	4,303		$	2,080		$	2,595		$	11,591
Ratios to average net assets:
Net investment income (loss)		(0.08	%)		(1.10	%)		(1.73	%)		(0.80	%)		(1.43	%)		(1.65	%)
Total expensese		1.98	%		2.01	%		2.02	%		2.03	%		1.93	%		2.03	%
Net expensesf		1.89	%		1.90	%		1.90	%		1.91	%		1.85	%		1.89	%
Portfolio turnover rate		21	%		107	%		161	%		228	%		513	%		—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	25.74		$	27.53		$	26.95		$	24.99		$	26.67		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.11	)		(.45	)		(.67	)		(.43	)		(.52	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		(1.55	)		(.14	)		2.99			2.39			(.40	)		4.23
Total from investment operations		(1.66	)		(.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	$	24.08		$	25.74		$	27.53		$	26.95		$	24.99		$	26.67
Total Returnd		(6.45	%)		(1.92	%)		8.74	%		7.89	%		(3.38	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	946		$	1,230		$	1,253		$	1,038		$	1,022		$	1,363
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(1.68	%)		(2.45	%)		(1.67	%)		(2.04	%)		(2.42	%)
Total expensese		2.73	%		2.75	%		2.77	%		2.79	%		2.66	%		2.79	%
Net expensesf		2.64	%		2.65	%		2.65	%		2.66	%		2.60	%		2.65	%
Portfolio turnover rate		21	%		107	%		161	%		228	%		513	%		—

30 | THE RYDEX FUNDS SEMI-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.

P-Class*	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	26.82		$	28.42		$	27.57		$	25.37		$	26.86		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.01	)		(.29	)		(.49	)		(.23	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(1.63	)		(.11	)		3.08			2.43			(.39	)		4.27
Total from investment operations		(1.64	)		(.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	$	25.18		$	26.82		$	28.42		$	27.57		$	25.37		$	26.86
Total Returnd		(6.11	%)		(1.18	%)		9.54	%		8.67	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,438		$	3,318		$	6,809		$	6,134		$	6,183		$	8,886
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		(1.05	%)		(1.72	%)		(0.88	%)		(1.33	%)		(1.67	%)
Total expensese		1.98	%		2.01	%		2.02	%		2.03	%		1.91	%		2.04	%
Net expensesf		1.89	%		1.90	%		1.90	%		1.91	%		1.85	%		1.90	%
Portfolio turnover rate		21	%		107	%		161	%		228	%		513	%		—

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	27.17		$	28.71		$	27.76		$	25.49		$	26.91		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		.02			(.16	)		(.42	)		(.19	)		(.23	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(1.64	)		(.18	)		3.11			2.46			(.43	)		4.26
Total from investment operations		(1.62	)		(.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	$	25.55		$	27.17		$	28.71		$	27.76		$	25.49		$	26.91
Total Returnd		(5.96	%)		(0.96	%)		9.84	%		8.91	%		(2.34	%)		16.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,908		$	3,746		$	975		$	891		$	329		$	59
Ratios to average net assets:
Net investment income (loss)		0.13	%		(0.57	%)		(1.46	%)		(0.70	%)		(0.90	%)		(1.42	%)
Total expensese		1.73	%		1.75	%		1.77	%		1.80	%		1.61	%		1.79	%
Net expensesf		1.64	%		1.65	%		1.65	%		1.67	%		1.58	%		1.65	%
Portfolio turnover rate		21	%		107	%		161	%		228	%		513	%		—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: June 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.
f	Net expense information reflects the expense ratios after expense waivers.
*	H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 14.

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

FUND PROFILE (Unaudited) September 30, 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.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

Ten Largest Holdings (% of Total Net Assets)
Taiwan Semiconductor Manufacturing Company Ltd. ADR	4.0%
Alibaba Group Holding Ltd. ADR	3.4%
China Mobile Ltd. ADR	3.4%
Infosys Ltd. ADR	2.0%
Baidu, Inc. ADR	2.0%
America Movil SAB de CV — Class L ADR	1.4%
China Life Insurance Company Ltd. ADR	1.3%
HDFC Bank Ltd. ADR	1.3%
JD.com, Inc. ADR	1.2%
Ambev S.A. ADR	1.1%
Top Ten Total	21.1%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

COUNTRY DIVERSIFICATION

At September 30, 2015, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks			Value
China		31	%	$	329,488
Brazil		14	%		154,371
Taiwan, Province of China		14	%		145,827
India		12	%		129,701
Hong Kong		9	%		102,543
Republic of Korea		8	%		87,995
Mexico		8	%		85,396
Other		4	%		43,211
Total Common Stocks		100	%	$	1,078,532

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 33

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 39.4%
Communications - 15.4%
Alibaba Group Holding Ltd. ADR*		1,580	$	93,172
China Mobile Ltd. ADR		1,550		92,226
Baidu, Inc. ADR*		389		53,452
America Movil SAB de CV — Class L ADR		2,388		39,522
JD.com, Inc. ADR*		1,227		31,976
Chunghwa Telecom Company Ltd. ADR		535		16,168
Grupo Televisa SAB ADR		616		16,028
Ctrip.com International Ltd. ADR*		200		12,636
Telekomunikasi Indonesia Persero Tbk PT ADR		348		12,406
SK Telecom Company Ltd. ADR		501		12,224
China Unicom Hong Kong Ltd. ADR		808		10,318
China Telecom Corporation Ltd. ADR		195		9,469
Vipshop Holdings Ltd. ADR*		435		7,308
Qihoo 360 Technology Company Ltd. ADR*		138		6,601
Telefonica Brasil S.A. ADR		661		6,035
Total Communications				419,541
Technology - 7.5%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		5,254		109,020
Infosys Ltd. ADR		2,811		53,662
NetEase, Inc. ADR		103		12,372
Wipro Ltd. ADR		826		10,152
Advanced Semiconductor Engineering, Inc. ADR		1,768		9,706
Siliconware Precision Industries Company Ltd. ADR		877		5,512
United Microelectronics Corp. ADR		3,346		5,421
Total Technology				205,845
Financial - 6.4%
China Life Insurance Company Ltd. ADR		2,095		36,411
HDFC Bank Ltd. ADR		576		35,188
Itau Unibanco Holding S.A. ADR		4,274		28,294
Shinhan Financial Group Company Ltd. ADR		667		23,212
Banco Bradesco S.A. ADR		3,553		19,044
ICICI Bank Ltd. ADR		2,001		16,768
KB Financial Group, Inc. ADR		544		15,988
Total Financial				174,905
Energy - 4.0%
CNOOC Ltd. ADR		226		23,296
China Petroleum & Chemical Corp. ADR		359		22,093
PetroChina Company Ltd. ADR		297		20,701
Sasol Ltd. ADR		714		19,864
Petroleo Brasileiro S.A. Pref ADR*		2,878		10,591
Petroleo Brasileiro S.A. ADR*		2,095		9,113
YPF S.A. ADR		271		4,127
Total Energy				109,785
Consumer, Non-cyclical - 2.6%
Ambev S.A. ADR		6,192		30,340
Fomento Economico Mexicano SAB de CV ADR		186		16,601
BRF S.A. ADR		921		16,385
Dr Reddy’s Laboratories Ltd. ADR		118		7,541
Total Consumer, Non-cyclical				70,867
Basic Materials - 1.6%
POSCO ADR		452		15,829
Ultrapar Participacoes S.A. ADR		611		10,216
Vale S.A. Pref ADR		2,853		9,557
Vale S.A. ADR		2,128		8,938
Total Basic Materials				44,540
Industrial - 0.9%
Cemex SAB de CV ADR*		1,895		13,246
LG Display Company Ltd. ADR		624		5,928
Embraer S.A. ADR		229		5,858
Total Industrial				25,032
Utilities - 0.8%
Korea Electric Power Corp. ADR		723		14,814
Enersis S.A. ADR		539		6,813
Total Utilities				21,627
Consumer, Cyclical - 0.2%
Tata Motors Ltd. ADR*		284		6,390
Total Common Stocks
(Cost $1,077,570)				1,078,532

	Face Amount
REPURCHASE AGREEMENTS††,1 - 77.9%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	1,222,798		1,222,798
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		468,047		468,047
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		439,255		439,255
Total Repurchase Agreements
(Cost $2,130,100)				2,130,100
Total Investments - 117.3%
(Cost $3,207,670)			$	3,208,632
Other Assets & Liabilities, net - (17.3)%				(473,097	)
Total Net Assets - 100.0%			$	2,735,535

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2015
EMERGING MARKETS 2x STRATEGY FUND

	Units		Unrealized Gain
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2015 Bank of New York Mellon Emerging Markets 50 ADR Index Swap, Terminating 10/26/152 (Notional Value $4,437,676)		2,499	$	158,090

*	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.
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 Sector Classification in Other Information section.

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $1,077,570)	$	1,078,532
Repurchase agreements, at value (cost $2,130,100)		2,130,100
Total investments (cost $3,207,670)		3,208,632
Segregated cash with broker		1,152,249
Unrealized appreciation on swap agreements		158,090
Cash		255
Receivables:
Fund shares sold		646,217
Swap settlement		109,526
Dividends		2,860
Foreign taxes reclaim		147
Interest		2
Total assets		5,277,978
Liabilities:
Payable for:
Fund shares redeemed		2,536,563
Management fees		2,426
Distribution and service fees		904
Transfer agent and administrative fees		674
Portfolio accounting fees		404
Miscellaneous		1,472
Total liabilities		2,542,443
Commitments and contingent liabilities (Note 13)		—
Net assets	$	2,735,535
Net assets consist of:
Paid in capital	$	18,860,417
Undistributed net investment income		22,606
Accumulated net realized loss on investments		(16,306,540	)
Net unrealized appreciation on investments		159,052
Net assets	$	2,735,535
A-Class:
Net assets	$	247,944
Capital shares outstanding		6,484
Net asset value per share	$	38.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.15
C-Class:
Net assets	$	269,819
Capital shares outstanding		7,222
Net asset value per share	$	37.36
H-Class:
Net assets	$	2,217,772
Capital shares outstanding		57,959
Net asset value per share	$	38.26

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends (net of foreign withholding tax of $6,538)	$	85,246
Income from securities lending, net		957
Interest		503
Total investment income		86,706
Expenses:
Management fees		59,996
Transfer agent and administrative fees		16,666
Distribution and service fees:
A-Class		993
C-Class		3,654
H-Class		14,761
Portfolio accounting fees		10,000
Registration fees		8,011
Custodian fees		806
Trustees’ fees*		562
Line of credit fees		61
Miscellaneous		1,800
Total expenses		117,310
Net investment loss		(30,604	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,446,519	)
Swap agreements		(3,133,418	)
Futures contracts		(227,284	)
Net realized loss		(4,807,221	)
Net change in unrealized appreciation (depreciation) on:
Investments		(54,478	)
Swap agreements		86,565
Futures contracts		11
Net change in unrealized appreciation (depreciation)		32,098
Net realized and unrealized loss		(4,775,123	)
Net decrease in net assets resulting from operations	$	(4,805,727	)

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

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(30,604	)	$	76,506
Net realized loss on investments		(4,807,221	)		(8,079,092	)
Net change in unrealized appreciation (depreciation) on investments		32,098			(353,133	)
Net decrease in net assets resulting from operations		(4,805,727	)		(8,355,719	)
Capital share transactions:
Proceeds from sale of shares
A-Class		28,192,077			34,963,639
C-Class		13,684,609			43,038,252
H-Class		230,933,953			445,957,288
Cost of shares redeemed
A-Class		(28,371,231	)		(35,480,152	)
C-Class		(14,469,180	)		(42,085,644	)
H-Class		(226,233,863	)		(440,104,061	)
Net increase from capital share transactions		3,736,365			6,289,322
Net decrease in net assets		(1,069,362	)		(2,066,397	)
Net assets:
Beginning of period		3,804,897			5,871,294
End of period	$	2,735,535		$	3,804,897
Undistributed net investment income at end of period	$	22,606		$	53,210
Capital share activity:
Shares sold
A-Class		477,199			525,431
C-Class		233,908			596,138
H-Class		3,918,531			6,042,313
Shares redeemed
A-Class		(477,022	)		(530,350	)
C-Class		(248,368	)		(580,699	)
H-Class		(3,895,816	)		(6,078,169	)
Net increase (decrease) in shares		8,432			(25,336	)

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014g			Year Ended March 28, 2013g			Year Ended March 31, 2012g			Period Ended March 31, 2011b,g
Per Share Data
Net asset value, beginning of period	$	60.50		$	66.27		$	73.59		$	87.40		$	134.76		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		.11			(.37	)		(.54	)		(.35	)		(—	)f		(.65	)
Net gain (loss) on investments (realized and unrealized)		(22.37	)		(5.40	)		(6.78	)		(13.46	)		(41.76	)		10.41
Total from investment operations		(22.26	)		(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	$	38.24		$	60.50		$	66.27		$	73.59		$	87.40		$	134.76
Total Returnd		(36.78	%)		(8.72	%)		(9.96	%)		(15.79	%)		(30.00	%)		7.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	248		$	382		$	744		$	106		$	363		$	992
Ratios to average net assets:
Net investment income (loss)		0.37	%		(0.53	%)		(0.82	%)		(0.51	%)		(0.01	%)		(1.42	%)
Total expenses		1.73	%		1.75	%		1.81	%		1.88	%		1.77	%		1.85	%
Net expensese		1.73	%		1.75	%		1.76	%		1.75	%		1.69	%		1.73	%
Portfolio turnover rate		2,423	%		1,085	%		1,412	%		730	%		883	%		58	%

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014g			Year Ended March 28, 2013g			Year Ended March 31, 2012g			Period Ended March 31, 2011b,g
Per Share Data
Net asset value, beginning of period	$	59.37		$	65.46		$	72.92		$	87.31		$	134.13		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		(.33	)		(.73	)		(1.04	)		(1.25	)		(.90	)		(1.55	)
Net gain (loss) on investments (realized and unrealized)		(21.68	)		(5.36	)		(6.42	)		(13.14	)		(40.32	)		10.68
Total from investment operations		(22.01	)		(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	$	37.36		$	59.37		$	65.46		$	72.92		$	87.31		$	134.13
Total Returnd		(37.06	%)		(9.32	%)		(10.21	%)		(16.49	%)		(29.75	%)		7.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	270		$	1,287		$	409		$	108		$	62		$	726
Ratios to average net assets:
Net investment income (loss)		(1.07	%)		(0.99	%)		(1.73	%)		(1.61	%)		(0.87	%)		(1.98	%)
Total expenses		2.45	%		2.48	%		2.66	%		2.59	%		2.54	%		2.60	%
Net expensese		2.45	%		2.48	%		2.61	%		2.46	%		2.46	%		2.49	%
Portfolio turnover rate		2,423	%		1,085	%		1,412	%		730	%		883	%		58	%

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014g			Year Ended March 28, 2013g			Year Ended March 31, 2012g			Period Ended March 31, 2011b,g
Per Share Data
Net asset value, beginning of period	$	60.61		$	66.37		$	73.87		$	87.74		$	134.69		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		(.15	)		.20			(.34	)		(.35	)		(.35	)		(.55	)
Net gain (loss) on investments (realized and unrealized)		(22.20	)		(5.96	)		(7.16	)		(13.52	)		(41.00	)		10.24
Total from investment operations		(22.35	)		(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	$	38.26		$	60.61		$	66.37		$	73.87		$	87.74		$	134.69
Total Returnd		(36.84	%)		(8.71	%)		(10.19	%)		(15.78	%)		(29.70	%)		7.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,218		$	2,136		$	4,719		$	2,087		$	4,713		$	3,705
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		0.25	%		(0.51	%)		(0.49	%)		(0.37	%)		(1.05	%)
Total expenses		1.72	%		1.75	%		1.80	%		1.83	%		1.77	%		1.85	%
Net expensese		1.72	%		1.75	%		1.74	%		1.69	%		1.69	%		1.74	%
Portfolio turnover rate		2,423	%		1,085	%		1,412	%		730	%		883	%		58	%

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after expense waivers.
f	Net investment income (loss) is less than $0.01 per share.
g	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 12 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 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.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

40 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 76.4%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	29,546,056	$	29,546,056
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		11,309,259		11,309,259
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		10,613,582		10,613,582
Total Repurchase Agreements
(Cost $51,468,897)				51,468,897
Total Investments - 76.4%
(Cost $51,468,897)			$	51,468,897
Other Assets & Liabilities, net - 23.6%				15,879,830
Total Net Assets - 100.0%			$	67,348,727

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2015 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $6,520,800)		165	$	159,364

	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International October 2015 Bank of New York Mellon Emerging Markets 50 ADR Index Swap, Terminating 10/26/152 (Notional Value $128,074,766)		72,120	$	(4,570,113	)

†	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 Sector Classification in Other Information section.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Repurchase agreements, at value (cost $51,468,897)		51,468,897
Segregated cash with broker		22,088,121
Receivables:
Fund shares sold		60,711
Interest		54
Total assets		73,617,783
Liabilities:
Unrealized depreciation on swap agreements		4,570,113
Payable for:
Fund shares redeemed		874,199
Swap settlement		546,979
Variation margin		191,424
Management fees		43,547
Distribution and service fees		13,033
Transfer agent and administrative fees		12,096
Portfolio accounting fees		7,258
Miscellaneous		10,407
Total liabilities		6,269,056
Commitments and contingent liabilities (Note 13)		—
Net assets	$	67,348,727
Net assets consist of:
Paid in capital	$	77,785,880
Accumulated net investment loss		(225,451	)
Accumulated net realized loss on investments		(5,800,953	)
Net unrealized depreciation on investments		(4,410,749	)
Net assets	$	67,348,727
A-Class:
Net assets	$	390,349
Capital shares outstanding		16,827
Net asset value per share	$	23.20
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.36
C-Class:
Net assets	$	676,153
Capital shares outstanding		28,459
Net asset value per share	$	23.76
H-Class:
Net assets	$	66,282,225
Capital shares outstanding		2,881,984
Net asset value per share	$	23.00

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Interest	$	1,993
Total investment income		1,993
Expenses:
Management fees		61,178
Transfer agent and administrative fees		16,994
Distribution and service fees:
A-Class		174
C-Class		4,247
H-Class		15,760
Portfolio accounting fees		10,197
Custodian fees		821
Trustees’ fees*		315
Miscellaneous		11,196
Total expenses		120,882
Net investment loss		(118,889	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		7,230,226
Futures contracts		(831,660	)
Net realized gain		6,398,566
Net change in unrealized appreciation (depreciation) on:
Swap agreements		(4,094,307	)
Futures contracts		266,271
Net change in unrealized appreciation (depreciation)		(3,828,036	)
Net realized and unrealized gain		2,570,530
Net increase in net assets resulting from operations	$	2,451,641

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

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(118,889	)	$	(211,160	)
Net realized gain (loss) on investments		6,398,566			(6,625,291	)
Net change in unrealized appreciation (depreciation) on investments		(3,828,036	)		74,346
Net increase (decrease) in net assets resulting from operations		2,451,641			(6,762,105	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,675,886			11,215,785
C-Class		18,998,117			33,937,543
H-Class		122,848,029			297,810,126
Cost of shares redeemed
A-Class		(1,384,776	)		(15,735,897	)
C-Class		(18,726,813	)		(34,133,165	)
H-Class		(81,768,452	)		(274,012,457	)
Net increase from capital share transactions		41,641,991			19,081,935
Net increase in net assets		44,093,632			12,319,830
Net assets:
Beginning of period		23,255,095			10,935,265
End of period	$	67,348,727		$	23,255,095
Accumulated net investment loss at end of period	$	(225,451	)	$	(106,562	)
Capital share activity:
Shares sold
A-Class		101,426			737,908
C-Class		1,045,675			2,098,236
H-Class		6,068,607			18,525,000
Shares redeemed
A-Class		(88,272	)		(999,205	)
C-Class		(1,023,106	)		(2,106,091	)
H-Class		(4,561,111	)		(17,467,759	)
Net increase in shares		1,543,219			788,089

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	16.87		$	18.34		$	19.23		$	19.29		$	21.15		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.16	)		(.29	)		(.35	)		(.33	)		(.39	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		6.49			(1.18	)		(.54	)		.27			(1.47	)		(3.69	)
Total from investment operations		6.33			(1.47	)		(.89	)		(.06	)		(1.86	)		(3.85	)
Net asset value, end of period	$	23.20		$	16.87		$	18.34		$	19.23		$	19.29		$	21.15
Total Returnd		37.44	%		(7.96	%)		(4.63	%)		(0.26	%)		(8.84	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	390		$	62		$	4,859		$	258		$	8		$	34
Ratios to average net assets:
Net investment income (loss)		(1.68	%)		(1.74	%)		(1.74	%)		(1.60	%)		(1.66	%)		(1.61	%)
Total expenses		1.71	%		1.75	%		1.78	%		1.85	%		1.78	%		1.85	%
Net expensese		1.71	%		1.75	%		1.75	%		1.71	%		1.69	%		1.73	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	17.37		$	19.03		$	20.07		$	20.25		$	21.33		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.22	)		(.39	)		(.52	)		(.49	)		(.55	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		6.61			(1.27	)		(.52	)		.31			(.53	)		(3.42	)
Total from investment operations		6.39			(1.66	)		(1.04	)		(.18	)		(1.08	)		(3.67	)
Net asset value, end of period	$	23.76		$	17.37		$	19.03		$	20.07		$	20.25		$	21.33
Total Returnd		36.87	%		(8.78	%)		(5.23	%)		(0.84	%)		(5.06	%)f		(14.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	676		$	102		$	262		$	115		$	1,261		$	15
Ratios to average net assets:
Net investment income (loss)		(2.44	%)		(2.47	%)		(2.44	%)		(2.41	%)		(2.41	%)		(2.37	%)
Total expenses		2.47	%		2.48	%		2.48	%		2.65	%		2.53	%		2.57	%
Net expensese		2.47	%		2.48	%		2.46	%		2.51	%		2.44	%		2.46	%
Portfolio turnover rate		—			—			—			—			—			—

44 | THE RYDEX FUNDS SEMI-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	Period Ended September 30, 2015a			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Period Ended March 31, 2011b
Per Share Data
Net asset value, beginning of period	$	16.80		$	18.33		$	19.22		$	19.29		$	21.15		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.18	)		(.28	)		(.35	)		(.33	)		(.38	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		6.38			(1.25	)		(.54	)		.26			(1.48	)		(3.69	)
Total from investment operations		6.20			(1.53	)		(.89	)		(.07	)		(1.86	)		(3.85	)
Net asset value, end of period	$	23.00		$	16.80		$	18.33		$	19.22		$	19.29		$	21.15
Total Returnd		36.90	%		(8.35	%)		(4.63	%)		(0.36	%)		(8.79	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	66,282		$	23,091		$	5,815		$	1,942		$	2,215		$	2,892
Ratios to average net assets:
Net investment income (loss)		(1.70	%)		(1.71	%)		(1.74	%)		(1.56	%)		(1.67	%)		(1.63	%)
Total expenses		1.73	%		1.73	%		1.78	%		1.82	%		1.79	%		1.85	%
Net expensese		1.73	%		1.73	%		1.76	%		1.68	%		1.70	%		1.74	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after expense waivers.
f	Generally, the performance of the Fund’s C-Class shares will underperform the Fund’s H-Class shares and A-Class shares due to the C-Class shares’ higher expense ratio. However, the performance of the Fund’s C-Class shares is greater than that of the H-Class shares and A-Class shares due to the impact large redemptions of C-Class shares had on the expense accruals for C-Class shares. The effect of the expense accruals on the performance of the C-Class shares of the Fund was magnified by the small asset base of the C-Class shares.

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

FUND PROFILE (Unaudited) September 30, 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.

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	9.3%
iShares JP Morgan USD Emerging Markets Bond ETF	9.2%
Total	18.5%

“Largest Holdings” exclude any temporary cash or derivative investments.

46 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2015
EMERGING MARKETS BOND STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 18.5%
PowerShares Emerging Markets Sovereign Debt Portfolio		716	$	19,640
iShares JP Morgan USD Emerging Markets Bond ETF		183		19,471
Total Exchange-Traded Funds
(Cost $39,954)				39,111

	Face Amount
REPURCHASE AGREEMENTS††,1 - 46.7%
HSBC Group issued 09/30/15 at 0.04% due 10/01/15	$	56,767		56,767
Royal Bank of Canada issued 09/30/15 at 0.03% due 10/01/15		21,729		21,729
UMB Financial Corp. issued 09/30/15 at 0.04% due 10/01/15		20,392		20,392
Total Repurchase Agreements
(Cost $98,888)				98,888
Total Investments - 65.2%
(Cost $138,842)			$	137,999
Other Assets & Liabilities, net - 34.8%				73,680
Total Net Assets - 100.0%			$	211,680

	Contracts		Unrealized Gain (Loss)
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2015 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $128,766)		1	$	1,405
December 2015 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $120,531)		1		(17	)
(Total Aggregate Value of Contracts $249,297)			$	1,388

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-24 Index	Barclays Bank plc	1.00	%	12/20/20	$	350,000	$	(304,593	)	$	(40,025	)	$	(5,382	)

†	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 2.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2015

Assets:
Investments, at value (cost $39,954)	$	39,111
Repurchase agreements, at value (cost $98,888)		98,888
Total investments (cost $138,842)		137,999
Segregated cash with broker		76,474
Receivables:
Securities sold		42,723
Interest		97
Total assets		257,293
Liabilities:
Unamortized upfront premiums received on credit default swaps		40,025
Unrealized depreciation on swap agreements		5,382
Payable for:
Management fees		141
Distribution and service fees		69
Variation margin		64
Transfer agent and administrative fees		47
Portfolio accounting fees		29
Miscellaneous		(144	)
Total liabilities		45,613
Commitments and contingent liabilities (Note 13)		—
Net assets	$	211,680
Net assets consist of:
Paid in capital	$	702,879
Undistributed net investment income		3,272
Accumulated net realized loss on investments		(489,634	)
Net unrealized depreciation on investments		(4,837	)
Net assets	$	211,680
A-Class:
Net assets	$	46,277
Capital shares outstanding		2,349
Net asset value per share	$	19.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	20.68
C-Class:
Net assets	$	40,629
Capital shares outstanding		2,100
Net asset value per share	$	19.35
H-Class:
Net assets	$	124,774
Capital shares outstanding		6,360
Net asset value per share	$	19.62

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2015

Investment Income:
Dividends	$	759
Interest		48
Total investment income		807
Expenses:
Management fees		1,244
Transfer agent and administrative fees		415
Distribution and service fees:
A-Class		49
C-Class		165
H-Class		327
Portfolio accounting fees		250
Registration fees		608
Professional fees		297
Trustees’ fees*		35
Custodian fees		19
Miscellaneous		(763	)
Total expenses		2,646
Net investment loss		(1,839	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,466	)
Swap agreements		(5,673	)
Futures contracts		(2,559	)
Net realized loss		(9,698	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,433	)
Swap agreements		(4,510	)
Futures contracts		594
Net change in unrealized appreciation (depreciation)		(5,349	)
Net realized and unrealized loss		(15,047	)
Net decrease in net assets resulting from operations	$	(16,886	)

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

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2015 (Unaudited)			Year Ended March 31, 2015
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,839	)	$	(78,087	)
Net realized loss on investments		(9,698	)		(201,722	)
Net change in unrealized appreciation (depreciation) on investments		(5,349	)		(39,251	)
Net decrease in net assets resulting from operations		(16,886	)		(319,060	)
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		15,320			18,252,568
C-Class		17,553			1,144,653
H-Class		846,778			3,651,528
Distributions reinvested
A-Class		—			6,103
C-Class		—			2,377
H-Class		—			33,679
Cost of shares redeemed
A-Class		(6,301	)		(18,413,103	)
C-Class		(8,976	)		(1,123,838	)
H-Class		(861,383	)		(8,907,076	)
Net increase (decrease) from capital share transactions		2,991			(5,353,109	)
Net decrease in net assets		(13,895	)		(5,863,294	)
Net assets:
Beginning of period		225,575			6,088,869
End of period	$	211,680		$	225,575
Undistributed net investment income at end of period	$	3,272		$	5,111
Capital share activity:
Shares sold
A-Class		751			689,810
C-Class		870			44,326
H-Class		41,201			149,092
Shares issued from reinvestment of distributions
A-Class		—			297
C-Class		—			117
H-Class		—			1,645
Shares redeemed
A-Class		(304	)		(708,041	)
C-Class		(440	)		(43,173	)
H-Class		(42,395	)		(364,753	)
Net decrease in shares		(317	)		(230,680	)

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Period Ended March 31, 2014b
Per Share Data
Net asset value, beginning of period	$	20.38		$	25.17		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.11	)		(.36	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(.57	)		(.94	)		.38
Total from investment operations		(.68	)		(1.30	)		.17
Less distributions from:
Net investment income		—			(3.49	)		—
Total distributions		—			(3.49	)		—
Net asset value, end of period	$	19.70		$	20.38		$	25.17
Total Returne		(3.34	%)		(5.31	%)		0.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46		$	39		$	499
Ratios to average net assets:
Net investment income (loss)		(1.04	%)		(1.50	%)		(1.78	%)
Total expensesd		1.53	%		1.71	%		1.83	%
Portfolio turnover rate		210	%		655	%		—

C-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Period Ended March 31, 2014b
Per Share Data
Net asset value, beginning of period	$	20.08		$	25.09		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.18	)		(.45	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(.55	)		(1.07	)		.37
Total from investment operations		(.73	)		(1.52	)		.09
Less distributions from:
Net investment income		—			(3.49	)		—
Total distributions		—			(3.49	)		—
Net asset value, end of period	$	19.35		$	20.08		$	25.09
Total Returne		(3.68	%)		(6.19	%)		0.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41		$	34		$	10
Ratios to average net assets:
Net investment income (loss)		(1.81	%)		(1.85	%)		(2.34	%)
Total expensesd		2.29	%		2.24	%		2.39	%
Portfolio turnover rate		210	%		655	%		—

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2015a			Year Ended March 31, 2015			Period Ended March 31, 2014b
Per Share Data
Net asset value, beginning of period	$	20.29		$	25.18		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.11	)		(.39	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(.56	)		(1.01	)		.37
Total from investment operations		(.67	)		(1.40	)		.18
Less distributions from:
Net investment income		—			(3.49	)		—
Total distributions		—			(3.49	)		—
Net asset value, end of period	$	19.62		$	20.29		$	25.18
Total Returne		(3.30	%)		(5.74	%)		0.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	125		$	153		$	5,580
Ratios to average net assets:
Net investment income (loss)		(1.03	%)		(1.64	%)		(1.62	%)
Total expensesd		1.52	%		1.74	%		1.64	%
Portfolio turnover rate		210	%		655	%		—

a	Unaudited figures for the period ended September 30, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 8, 2013. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Total return does not reflect the impact of any applicable sales charge and has not been annualized.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an 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, P-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. At September 30, 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”), each a non-diversifed investment company. Only A-Class, C-Class, H-Class, P-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 September 30, 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.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, provided such amounts approximate 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).

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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

C. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

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

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

Reported net realized foreign exchange gains and 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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 and Derivatives

As part of its 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. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Short Sales

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.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a 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 Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For those Funds whose investment strategy consistently involves applying leverage, the value of the Funds’ shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. 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 (Unaudited)(continued)

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 average notional amount of derivative instruments outstanding (excluding any non-derivative positions) on a quarterly basis:

	Average Notional
Fund	Long		Short
Long Short Equity Fund	$	256,344	$	128,250
Event Driven and Distressed Strategies Fund*		12,523,980		—
Emerging Markets 2x Strategy Fund		13,094,614		—
Inverse Emerging Markets 2x Strategy Fund		—		90,519,507
Emerging Markets Bond Strategy Fund*		323,774		—

* These Funds utilize a combination of currency and/or financial-linked derivatives to obtain exposure to their benchmarks. The gross long derivative average notional is $17,487,630 and $599,102 for the Event Driven and Distressed Strategies Fund and Emerging Markets Bond Strategy Fund, respectively.

Swaps

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 or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. 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.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A Fund utilizing a total return index swap 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 if the underlying index declines in value.

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. 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. 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.

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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 26 and 47 included in the Schedules of Investments summarizes the information with regard to sold protection on credit default swap contracts as of September 30, 2015.

Futures

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 a 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.

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 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 September 30, 2015:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2015
Event Driven and Distressed Strategies Fund	$	—	$	—	$	19,999	$	—	$	19,999
Emerging Markets 2x Strategy Fund		—		158,090		—		—		158,090
Inverse Emerging Markets 2x Strategy Fund		159,364		—		—		—		159,364
Emerging Markets Bond Strategy Fund		—		—		1,405		—		1,405

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2015
Event Driven and Distressed Strategies Fund	$	38,202	$	42,404	$	—	$	362	$	80,968
Inverse Emerging Markets 2x Strategy Fund		—		4,570,113		—		—		4,570,113
Emerging Markets Bond Strategy Fund		—		—		17		5,382		5,399

* 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.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 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

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 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	$	(30,898	)	$	—		$	—		$	—		$	(30,898	)
Event Driven and Distressed Strategies Fund		(15,350	)		(33,254	)		48,967			(141,320	)		(140,957	)
Emerging Markets 2x Strategy Fund		(227,284	)		(3,133,418	)		—			—			(3,360,702	)
Inverse Emerging Markets 2x Strategy Fund		(831,660	)		7,230,226			—			—			6,398,566
Emerging Markets Bond Strategy Fund		—			—			(2,559	)		(5,673	)		(8,232	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts			Swaps Credit Default Contracts			Total
Event Driven and Distressed Strategies Fund	$	(61,573	)	$	(40,364	)	$	(12,785	)	$	(17,992	)	$	(132,714	)
Emerging Markets 2x Strategy Fund		11			86,565			—			—			86,576
Inverse Emerging Markets 2x Strategy Fund		266,271			(4,094,307	)		—			—			(3,828,036	)
Emerging Markets Bond Strategy Fund		—			—			594			(4,510	)		(3,916	)

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 repurchase agreements allocated to the Funds.

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. A Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency risk may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

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

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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.

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%

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(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 Plan applicable to A-Class shares, H-Class shares and P-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, P-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 period ended September 30, 2015, GFD retained sales charges of $203,762 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 September 30, 2015. See the Schedules of Investments for more details on the classification of securities.

	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	$	45,993,339	$	—	$	4,293,440	$	—	$	—	$	50,286,779
Event Driven and Distressed Strategies Fund		6,811,306		19,999		194,750		—		—		7,026,055
Emerging Markets 2x Strategy Fund		1,078,532		—		2,130,100		158,090		—		3,366,722
Inverse Emerging Markets 2x Strategy Fund		—		159,364		51,468,897		—		—		51,628,261
Emerging Markets Bond Strategy Fund		39,111		1,405		98,888		—		—		139,404
Liabilities
Long Short Equity Fund	$	22,025,298	$	—	$	—	$	—	$	—	$	22,025,298
Event Driven and Distressed Strategies Fund		—		38,202		—		42,766		—		80,968
Inverse Emerging Markets 2x Strategy Fund		—		—		—		4,570,113		—		4,570,113
Emerging Markets Bond Strategy Fund		—		17		—		5,382		—		5,399

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 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 September 30, 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
0.04%					0.00%
Due 10/01/15	$	415,000,000	$	415,000,461	05/15/40	$	877,378,500	$	423,300,031
Royal Bank of Canada Capital Markets					U.S. Treasury Note
0.03%					1.75%
Due 10/01/15		158,848,348		158,848,480	05/15/23		161,563,300		162,025,380
UMB Financial Corp.					U.S. Treasury Notes
0.04%					1.00% - 3.25%
Due 10/01/15		149,076,968		149,077,134	09/30/16 - 12/31/16		147,857,500		152,058,562

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

During the period ended September 30, 2015, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of September 30, 2015, all Funds had ceased participation in securities lending.

7. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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	$	158,090	$	—		$	158,090	$	—	$	—	$	158,090

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									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	$	42,404	$	—		$	42,404	$	—	$	42,404	$	—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		4,570,113		—			4,570,113		—		4,570,113		—

¹ Exchange-traded futures and centrally cleared swaps are excluded from these reported amounts.

8. 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.

At September 30, 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	$	52,874,426	$	1,078,223	$	(3,665,870	)	$	(2,587,647	)
Event Driven and Distressed Strategies Fund		7,175,064		49,637		(218,645	)		(169,008	)
Emerging Markets 2x Strategy Fund		3,584,721		—		(376,089	)		(376,089	)
Inverse Emerging Markets 2x Strategy Fund		51,468,897		—		—			—
Emerging Markets Bond Strategy Fund		138,842		—		(843	)		(843	)

9. Securities Transactions

For the period ended September 30, 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	$	32,587,018	$	38,478,131
Event Driven and Distressed Strategies Fund		2,686,718		1,378,189
Emerging Markets 2x Strategy Fund		131,478,161		130,317,475
Emerging Markets Bond Strategy Fund		70,730		78,112

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

10. Affiliated 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, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance 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 available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180414001107/gug60774-ncsr.htm.

Transactions during the period ended September 30, 2015 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/15		Additions		Reductions		Value 09/30/15		Shares 09/30/15		Investment Income
Long Short Equity Fund
Guggenheim Strategy Fund I	$	—	$	14,024	$	—	$	3,045,942		122,425	$	14,023
Guggenheim Strategy Fund II		—		103		—		14,047		565		100
	$	—	$	14,127	$	—	$	3,059,989			$	14,123
Event Driven and Distressed Strategies Fund
Guggenheim Strategy Fund I	$	—	$	1,007,703	$	—	$	2,124,478		85,389	$	7,703
Guggenheim Strategy Fund II		—		1,012,522		—		2,133,721		85,864		12,522
	$	—	$	2,020,225	$	—	$	4,258,199			$	20,225

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 12, 2016. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2015. The Funds did not have any borrowings under this agreement at September 30, 2015.

The average daily balances borrowed for the period ended September 30, 2015, were as follows:

Fund	Average Daily Balance
Emerging Markets 2x Strategy Fund	$	9,583

12. Reverse Share Split

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.

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13. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one 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 (Unaudited)(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 motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. The Court has not yet issued a decision on the motion to dismiss. 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.

14. H-Class Shares Redesignated as P-Class Shares

Effective following the close of business on April 30, 2015, (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”) were redesignated as P-Class shares, and the Funds will no longer offer H-Class shares.

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 reserve the right to modify their minimum investment amount and account balance requirements at any time, with or without prior notice to you.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

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

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

Sector Classification

Information in the “Schedule of Investments” is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

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.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of the Trust, including the Independent Trustees, attended an in-person meeting held on May 18, 2015, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust except for the Dow Jones Industrial Average^® Fund (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 28, 2015 (together, with the May 18 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar

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OTHER INFORMATION (Unaudited)(continued)

funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

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

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies, brokerage practices, and the adequacy of its compliance systems and processes. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board also considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board considered information regarding the Advisor’s profit margin as reflected in the Advisor’s profitability analysis, as well as information provided by the Advisor concerning the methodology used to allocate various expenses among the individual Funds in determining the Advisor’s profitability. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among

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OTHER INFORMATION (Unaudited)(concluded)

most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, 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, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

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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 visiting guggenheiminvestments.com or 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).	224	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 from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	133	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	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 from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 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 Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	133	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	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.

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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.

72 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

Opt Out Provisions

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 73

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.

74 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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Item 2. Code of Ethics.

Not applicable at this time.

Item 3. Audit Committee Financial Expert.

Not applicable at this time.

Item 4. Principal Accountant Fees and Services.

Not applicable at this time.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s President (principal executive officer) and Treasurer (principal financial officer) have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

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

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

SIGNATURES

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

(Registrant)	Rydex Series Funds
By (Signature and Title)*	/s/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President and Chief Executive Officer
Date	December 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	December 9, 2015
By (Signature and Title)*	/s/ Nikolaos Bonos
	Nikolaos Bonos, Vice President and Treasurer
Date	December 9, 2015

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