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)

702 King Farm Boulevard, Suite 200Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds702 King Farm Boulevard, Suite 200Rockville, 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, 2017

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:

9.30.2017

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

GuggenheimInvestments.com RSECF-SEMI-0917x0318

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	17
BIOTECHNOLOGY FUND	25
CONSUMER PRODUCTS FUND	32
ELECTRONICS FUND	41
ENERGY FUND	48
ENERGY SERVICES FUND	57
FINANCIAL SERVICES FUND	64
HEALTH CARE FUND	75
INTERNET FUND	83
LEISURE FUND	91
PRECIOUS METALS FUND	99
REAL ESTATE FUND	106
RETAILING FUND	114
TECHNOLOGY FUND	121
TELECOMMUNICATIONS FUND	130
TRANSPORTATION FUND	137
UTILITIES FUND	144
NOTES TO FINANCIAL STATEMENTS	152
OTHER INFORMATION	162
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	165
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	169

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2017

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semiannual shareholder report for 18 of our sector funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2017.

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,

Security Investors, LLC
October 31, 2017

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.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

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

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2017

Over the past few months, the equity markets have faced massive hurricanes in the South, rising tensions with North Korea and ongoing uncertainty surrounding domestic policy. Despite it all, the major stock indices continue to trade at or near record levels. The market’s resiliency seems to underscore that, at the end of the day, it’s fundamentals that drive equity markets and not political headlines or geopolitical tensions.

A noticeable shift in market sentiment during the third quarter led to a rotation into cyclical and small capitalization stocks. Value factors also began to outperform in September, a significant change from year-to-date performance. From a macro standpoint, the primary drivers of the value trade include rising inflationary expectations, economic growth and the prospects of tax reform.

Outside the U.S., both the European and emerging markets outperformed the Standard & Poor’s 500^® (“S&P 500”) Index* on a dollar denominated basis. Renewed interest in both regions reflected attractive relative valuation and the synchronized global economic expansion.

Assuming no major geopolitical or other unforeseen shocks, we expect the U.S. economy will grow by between 2.0–2.5% in real terms in 2017 and 2018, supported by a strong labor market at home, a synchronized upswing in the global economy, and favorable financial conditions. Risks to our growth outlook are to the upside if Washington delivers on promises to cut taxes. Third quarter economic data was less distorted by the recent hurricanes than expected, and rebuilding efforts should be a positive for growth heading into 2018.

The labor market is steadily tightening, as seen in the drop in the unemployment rate to a cycle low of 4.2% in September, underscoring the robust—and unsustainable—underlying trend in hiring. Leading indicators, including hiring intentions surveys, point to further declines in the unemployment rate. Meanwhile, inflation continues to be well below the U.S. Federal Reserve’s (the “Fed”) 2% longer-run goal, with core personal consumption expenditure inflation coming in at 1.3% in September. However, inflation lags Gross Domestic Product (“GDP”) growth by about six quarters; because growth has accelerated over the past year, and the dollar has depreciated, inflation will likely move closer to 2% by the second quarter of 2018.

The firming U.S. economy, coupled with synchronized global growth and stabilization in the U.S. dollar, is likely to be supportive of the U.S. earnings environment. On the valuation front, while elevated relative to long-term averages, multiples still remain well below extreme levels. Economic and financial conditions are supportive enough for the Fed to continue to resume a quarterly pattern of rate increases in December, and to begin balance sheet normalization this year. Interest rates are expected to remain supportive of risk assets.

For the six months ended September 30, 2017, the S&P 500 returned 7.71%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 10.99%. The return of the MSCI Emerging Markets Index* was 14.66%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.31% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 4.19%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.47% 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.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

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, 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, 2017 and ending September 30, 2017.

The following tables illustrate the Funds’ 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 fifth 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 the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), 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, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.39%	6.90%	$1,000.00	$1,069.00	$7.21
A-Class	1.64%	6.78%	1,000.00	1,067.80	8.50
C-Class	2.39%	6.38%	1,000.00	1,063.80	12.36
H-Class	1.64%	6.76%	1,000.00	1,067.60	8.50
Basic Materials Fund
Investor Class	1.40%	7.28%	1,000.00	1,072.80	7.27
A-Class	1.65%	7.16%	1,000.00	1,071.60	8.57
C-Class	2.40%	6.74%	1,000.00	1,067.40	12.44
H-Class	1.65%	7.13%	1,000.00	1,071.30	8.57
Biotechnology Fund
Investor Class	1.38%	16.82%	1,000.00	1,168.20	7.50
A-Class	1.63%	16.68%	1,000.00	1,166.80	8.85
C-Class	2.38%	16.25%	1,000.00	1,162.50	12.90
H-Class	1.63%	16.67%	1,000.00	1,166.70	8.85
Consumer Products Fund
Investor Class	1.39%	(0.70%)	1,000.00	993.00	6.94
A-Class	1.64%	(0.82%)	1,000.00	991.80	8.19
C-Class	2.39%	(1.19%)	1,000.00	988.10	11.91
H-Class	1.64%	(0.83%)	1,000.00	991.70	8.19
Electronics Fund
Investor Class	1.39%	12.59%	1,000.00	1,125.90	7.41
A-Class	1.64%	12.45%	1,000.00	1,124.50	8.73
C-Class	2.39%	12.03%	1,000.00	1,120.30	12.70
H-Class	1.64%	12.45%	1,000.00	1,124.50	8.73
Energy Fund
Investor Class	1.39%	(5.73%)	1,000.00	942.70	6.77
A-Class	1.64%	(5.84%)	1,000.00	941.60	7.98
C-Class	2.39%	(6.19%)	1,000.00	938.10	11.61
H-Class	1.64%	(5.85%)	1,000.00	941.50	7.98
Energy Services Fund
Investor Class	1.39%	(14.52%)	1,000.00	854.80	6.46
A-Class	1.64%	(14.61%)	1,000.00	853.90	7.62
C-Class	2.39%	(14.94%)	1,000.00	850.60	11.09
H-Class	1.64%	(14.69%)	1,000.00	853.10	7.62
Financial Services Fund
Investor Class	1.39%	7.31%	1,000.00	1,073.10	7.22
A-Class	1.64%	7.16%	1,000.00	1,071.60	8.52
C-Class	2.39%	6.77%	1,000.00	1,067.70	12.39
H-Class	1.64%	7.19%	1,000.00	1,071.90	8.52
Health Care Fund
Investor Class	1.39%	10.50%	1,000.00	1,105.00	7.33
A-Class	1.64%	10.37%	1,000.00	1,103.70	8.65
C-Class	2.39%	9.92%	1,000.00	1,099.20	12.58
H-Class	1.64%	10.32%	1,000.00	1,103.20	8.65

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Internet Fund
Investor Class	1.39%	15.24%	$1,000.00	$1,152.40	$7.50
A-Class	1.64%	15.11%	1,000.00	1,151.10	8.84
C-Class	2.39%	14.68%	1,000.00	1,146.80	12.86
H-Class	1.64%	15.11%	1,000.00	1,151.10	8.84
Leisure Fund
Investor Class	1.39%	3.51%	1,000.00	1,035.10	7.09
A-Class	1.64%	3.38%	1,000.00	1,033.80	8.36
C-Class	2.39%	2.99%	1,000.00	1,029.90	12.16
H-Class	1.64%	3.39%	1,000.00	1,033.90	8.36
Precious Metals Fund
Investor Class	1.29%	(1.64%)	1,000.00	983.60	6.41
A-Class	1.54%	(1.78%)	1,000.00	982.20	7.65
C-Class	2.29%	(2.15%)	1,000.00	978.50	11.36
H-Class	1.54%	(1.83%)	1,000.00	981.70	7.65
Real Estate Fund
A-Class	1.64%	1.97%	1,000.00	1,019.70	8.30
C-Class	2.39%	1.59%	1,000.00	1,015.90	12.08
H-Class	1.64%	1.98%	1,000.00	1,019.80	8.30
Retailing Fund
Investor Class	1.39%	1.68%	1,000.00	1,016.80	7.03
A-Class	1.64%	1.57%	1,000.00	1,015.70	8.29
C-Class	2.39%	1.23%	1,000.00	1,012.30	12.06
H-Class	1.64%	1.57%	1,000.00	1,015.70	8.29
Technology Fund
Investor Class	1.39%	13.28%	1,000.00	1,132.80	7.43
A-Class	1.64%	13.12%	1,000.00	1,131.20	8.76
C-Class	2.39%	12.72%	1,000.00	1,127.20	12.74
H-Class	1.64%	13.12%	1,000.00	1,131.20	8.76
Telecommunications Fund
Investor Class	1.40%	(0.33%)	1,000.00	996.70	7.01
A-Class	1.65%	(0.45%)	1,000.00	995.50	8.25
C-Class	2.40%	(0.82%)	1,000.00	991.80	11.98
H-Class	1.64%	(0.44%)	1,000.00	995.60	8.20
Transportation Fund
Investor Class	1.39%	11.98%	1,000.00	1,119.80	7.39
A-Class	1.64%	11.84%	1,000.00	1,118.40	8.71
C-Class	2.39%	11.41%	1,000.00	1,114.10	12.67
H-Class	1.64%	11.80%	1,000.00	1,118.00	8.71
Utilities Fund
Investor Class	1.39%	4.80%	1,000.00	1,048.00	7.14
A-Class	1.64%	4.67%	1,000.00	1,046.70	8.41
C-Class	2.39%	4.27%	1,000.00	1,042.70	12.24
H-Class	1.64%	4.67%	1,000.00	1,046.70	8.41

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.39%	5.00%	$1,000.00	$1,018.10	$7.03
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
Basic Materials Fund
Investor Class	1.40%	5.00%	1,000.00	1,018.05	7.08
A-Class	1.65%	5.00%	1,000.00	1,016.80	8.34
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
Biotechnology Fund
Investor Class	1.38%	5.00%	1,000.00	1,018.15	6.98
A-Class	1.63%	5.00%	1,000.00	1,016.90	8.24
C-Class	2.38%	5.00%	1,000.00	1,013.14	12.01
H-Class	1.63%	5.00%	1,000.00	1,016.90	8.24
Consumer Products Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Electronics Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Energy Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Energy Services Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Financial Services Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Health Care Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Internet Fund
Investor Class	1.39%	5.00%	$1,000.00	$1,018.10	$7.03
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
Leisure Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Precious Metals Fund
Investor Class	1.29%	5.00%	1,000.00	1,018.60	6.53
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
Real Estate 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
Retailing Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Technology Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Telecommunications Fund
Investor Class	1.40%	5.00%	1,000.00	1,018.05	7.08
A-Class	1.65%	5.00%	1,000.00	1,016.80	8.34
C-Class	2.40%	5.00%	1,000.00	1,013.04	12.11
H-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
Transportation Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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
Utilities Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
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

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, 2017 to September 30, 2017.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
Wells Fargo & Co.	4.1%
JPMorgan Chase & Co.	4.0%
Citigroup, Inc.	4.0%
Bank of America Corp.	4.0%
U.S. Bancorp	3.1%
PNC Financial Services Group, Inc.	2.6%
Bank of New York Mellon Corp.	2.4%
Capital One Financial Corp.	2.1%
BB&T Corp.	2.1%
State Street Corp.	1.9%
Top Ten Total	30.3%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	6.90%	33.13%	12.64%	(0.93%)
A-Class Shares	6.78%	32.80%	12.37%	(1.21%)
A-Class Shares with sales charge‡	1.71%	26.49%	11.28%	(1.69%)
C-Class Shares	6.38%	31.82%	11.52%	(1.90%)
C-Class Shares with CDSC§	5.38%	30.82%	11.52%	(1.90%)
H-Class Shares**	6.76%	32.82%	12.25%	(1.36%)
S&P 500 Financials Index	9.71%	36.21%	17.62%	1.34%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
BANKING FUND

	Shares		Value
COMMON STOCKS† - 97.9%
Banks - 93.0%
Wells Fargo & Co.		26,254	$	1,447,907
JPMorgan Chase & Co.		14,777		1,411,350
Citigroup, Inc.		19,320		1,405,337
Bank of America Corp.		55,388		1,403,532
U.S. Bancorp		19,940		1,068,585
PNC Financial Services Group, Inc.		6,628		893,256
Bank of New York Mellon Corp.		15,885		842,223
Capital One Financial Corp.		8,610		728,923
BB&T Corp.		15,292		717,806
State Street Corp.		6,768		646,615
SunTrust Banks, Inc.		10,265		613,539
M&T Bank Corp.		3,461		557,359
Fifth Third Bancorp		18,603		520,512
Northern Trust Corp.		5,552		510,395
Regions Financial Corp.		33,429		509,124
KeyCorp		26,915		506,540
Citizens Financial Group, Inc.		13,014		492,840
First Republic Bank		4,425		462,236
Huntington Bancshares, Inc.		32,025		447,069
Comerica, Inc.		5,539		422,404
Banco Bradesco S.A. ADR		35,316		390,948
Royal Bank of Canada		4,799		371,203
Deutsche Bank AG		21,430		370,310
Toronto-Dominion Bank		6,463		363,673
HSBC Holdings plc ADR		7,332		362,274
Zions Bancorporation		7,574		357,341
SVB Financial Group*		1,902		355,845
ICICI Bank Ltd. ADR		41,359		354,033
ING Groep N.V. ADR1		19,066		351,196
Credit Suisse Group AG ADR*		21,753		343,697
Canadian Imperial Bank of Commerce		3,916		342,728
Bank of Nova Scotia		5,285		339,561
HDFC Bank Ltd. ADR		3,446		332,091
East West Bancorp, Inc.		5,492		328,312
Bank of Montreal		4,315		326,689
Signature Bank*		2,407		308,192
Popular, Inc.		8,031		288,634
PacWest Bancorp		5,593		282,502
Western Alliance Bancorporation*		5,146		273,150
Cullen/Frost Bankers, Inc.		2,859		271,376
BOK Financial Corp.		3,038		270,625
Bank of the Ozarks		5,627		270,377
Commerce Bancshares, Inc.		4,656		268,977
Synovus Financial Corp.		5,702		262,634
Pinnacle Financial Partners, Inc.		3,741		250,460
FNB Corp.		17,821		250,029
Webster Financial Corp.		4,699		246,932
Prosperity Bancshares, Inc.		3,712		243,990
First Horizon National Corp.		12,705		243,301
Wintrust Financial Corp.		3,088		241,821
IBERIABANK Corp.		2,932		240,864
Hancock Holding Co.		4,799		232,512
Umpqua Holdings Corp.		11,917		232,501
Texas Capital Bancshares, Inc.*		2,675		229,515
First Citizens BancShares, Inc. — Class A		607		226,951
Home BancShares, Inc.		8,941		225,492
BankUnited, Inc.		6,309		224,411
United Bankshares, Inc.		5,944		220,820
UMB Financial Corp.		2,922		217,660
Bank of Hawaii Corp.		2,563		213,652
MB Financial, Inc.		4,708		211,954
Chemical Financial Corp.		4,028		210,503
Valley National Bancorp		17,447		210,236
Associated Banc-Corp.		8,660		210,005
Fulton Financial Corp.		10,868		203,775
Cathay General Bancorp		5,015		201,603
Glacier Bancorp, Inc.		5,304		200,279
First Financial Bankshares, Inc.		4,373		197,660
TCF Financial Corp.		11,359		193,557
BancorpSouth, Inc.		5,932		190,121
CVB Financial Corp.		7,768		187,753
South State Corp.		2,035		183,252
International Bancshares Corp.		4,533		181,773
Great Western Bancorp, Inc.		4,385		181,013
Old National Bancorp		9,889		180,969
Columbia Banking System, Inc.		4,203		176,988
Hope Bancorp, Inc.		9,866		174,727
First Midwest Bancorp, Inc.		7,258		169,982
Trustmark Corp.		5,113		169,343
United Community Banks, Inc.		5,825		166,246
FCB Financial Holdings, Inc. — Class A*		3,416		164,993
ServisFirst Bancshares, Inc.		4,228		164,258
Capital Bank Financial Corp. — Class A		3,968		162,886
Independent Bank Corp.		2,153		160,721
Banner Corp.		2,610		159,941
Ameris Bancorp		3,216		154,368
LegacyTexas Financial Group, Inc.		3,846		153,532
Simmons First National Corp. — Class A		2,599		150,482
Westamerica Bancorporation		2,340		139,324
Boston Private Financial Holdings, Inc.		8,130		134,552
Total Banks				32,481,627
Savings & Loans - 3.2%
People’s United Financial, Inc.		15,867		287,828
New York Community Bancorp, Inc.		21,881		282,046
Investors Bancorp, Inc.		16,727		228,156
Sterling Bancorp		8,485		209,155
Banc of California, Inc.1		5,558		115,329
Total Savings & Loans				1,122,514
Insurance - 0.9%
Voya Financial, Inc.		7,485		298,577
DIVERSIFIED FINANCIAL SERVICES - 0.8%
CIT Group, Inc.		5,828		285,863
Total Common Stocks
(Cost $30,297,699)				34,188,581

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
BANKING FUND

	Shares		Value
PREFERRED STOCKS† - 1.2%
Banks - 1.2%
Itau Unibanco Holding S.A. ADR		30,564	$	418,727
Total Preferred Stocks
(Cost $332,892)				418,727

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00%  due 10/02/17	$	83,720	83,720
Bank of America Merrill Lynch issued 09/29/17 at 1.05%  due 10/02/17		41,860	41,860
HSBC Securities, Inc. issued 09/29/17 at 0.91%  due 10/02/17		41,828	41,828
Total Repurchase Agreements
(Cost $167,408)			167,408

	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.6%
First American Government Obligations Fund — Class Z, 0.89%4		202,481		202,481
Total Securities Lending Collateral
(Cost $202,481)				202,481
Total Investments - 100.2%
(Cost $31,000,480)			$	34,977,197
Other Assets & Liabilities, net - (0.2)%				(73,596	)
Total Net Assets - 100.0%			$	34,903,601

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	34,188,581	$	—	$	—	$	34,188,581
Preferred Stocks		418,727		—		—		418,727
Repurchase Agreement		—		167,408		—		167,408
Securities Lending Collateral		202,481		—		—		202,481
Total Assets	$	34,809,789	$	167,408	$	—	$	34,977,197

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $198,823 of securities loaned (cost $30,833,072)	$	34,809,789
Repurchase agreements, at value (cost $167,408)		167,408
Cash		1,974
Receivables:
Fund shares sold		512,867
Dividends		42,159
Foreign taxes reclaim		4,119
Securities lending income		94
Interest		9
Total assets		35,538,419
Liabilities:
Payable for:
Securities purchased		321,519
Return of securities loaned		202,481
Fund shares redeemed		65,036
Management fees		25,255
Transfer agent and administrative fees		7,428
Distribution and service fees		5,110
Portfolio accounting fees		2,971
Miscellaneous		5,018
Total liabilities		634,818
Commitments and contingent liabilities (Note 10)		—
Net assets	$	34,903,601
Net assets consist of:
Paid in capital	$	44,012,629
Undistributed net investment income		385,117
Accumulated net realized loss on investments		(13,470,862	)
Net unrealized appreciation on investments		3,976,717
Net assets	$	34,903,601
Investor Class:
Net assets	$	24,074,075
Capital shares outstanding		292,999
Net asset value per share	$	82.16
A-Class:
Net assets	$	4,077,841
Capital shares outstanding		54,247
Net asset value per share	$	75.17
Maximum offering price per share (Net asset value divided by 95.25%)	$	78.92
C-Class:
Net assets	$	4,151,191
Capital shares outstanding		60,998
Net asset value per share	$	68.05
H-Class:
Net assets	$	2,600,494
Capital shares outstanding		35,505
Net asset value per share	$	73.24

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $7,468)		482,415
Interest		804
Income from securities lending, net		1,534
Total investment income		484,753
Expenses:
Management fees		183,079
Distribution and service fees:
A-Class		5,680
C-Class		23,703
H-Class		8,447
Transfer agent and administrative fees		53,847
Registration fees		37,167
Portfolio accounting fees		21,538
Custodian fees		3,077
Trustees’ fees*		3,001
Line of credit fees		500
Miscellaneous		(2,118	)
Total expenses		337,921
Net investment income		146,832
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		11,458,249
Net realized gain		11,458,249
Net change in unrealized appreciation (depreciation) on:
Investments		(8,558,814	)
Net change in unrealized appreciation (depreciation)		(8,558,814	)
Net realized and unrealized gain		2,899,435
Net increase in net assets resulting from operations	$	3,046,267

* 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	146,832		$	238,285
Net realized gain on investments		11,458,249			1,464,242
Net change in unrealized appreciation (depreciation) on investments		(8,558,814	)		8,815,507
Net increase in net assets resulting from operations		3,046,267			10,518,034
Distributions to shareholders from:
Net investment income
Investor Class		—			(184,641	)
A-Class		—			(30,326	)
C-Class		—			(19,058	)
H-Class		—			(35,023	)
Total distributions to shareholders		—			(269,048	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		95,434,434			231,950,491
A-Class		4,138,848			12,517,711
C-Class		2,092,653			5,972,804
H-Class		204,220,706			248,740,610
Distributions reinvested
Investor Class		—			183,226
A-Class		—			20,961
C-Class		—			18,821
H-Class		—			35,011
Cost of shares redeemed
Investor Class		(113,780,855	)		(205,535,966	)
A-Class		(6,206,313	)		(8,453,891	)
C-Class		(3,820,964	)		(4,560,750	)
H-Class		(211,730,004	)		(242,259,106	)
Net increase (decrease) from capital share transactions		(29,651,495	)		38,629,922
Net increase (decrease) in net assets		(26,605,228	)		48,878,908
Net assets:
Beginning of period		61,508,829			12,629,921
End of period	$	34,903,601		$	61,508,829
Undistributed net investment income at end of period	$	385,117		$	238,285
Capital share activity:
Shares sold
Investor Class		1,226,476			3,510,748
A-Class		58,317			195,570
C-Class		32,688			105,363
H-Class		3,042,590			4,361,031
Shares issued from reinvestment of distributions
Investor Class		—			2,544
A-Class		—			317
C-Class		—			313
H-Class		—			544
Shares redeemed
Investor Class		(1,473,059	)		(3,102,087	)
A-Class		(88,344	)		(128,613	)
C-Class		(59,753	)		(85,128	)
H-Class		(3,130,505	)		(4,265,233	)
Net increase (decrease) in shares		(391,590	)		595,369

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	76.86		$	56.13		$	62.71		$	63.60		$	52.58		$	46.75
Income (loss) from investment operations:
Net investment income (loss)b		.33			.53			.68			.51			.54			.54
Net gain (loss) on investments (realized and unrealized)		4.97			20.51			(6.97	)		(.98	)		11.09			5.44
Total from investment operations		5.30			21.04			(6.29	)		(.47	)		11.63			5.98
Less distributions from:
Net investment income		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Total distributions		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Net asset value, end of period	$	82.16		$	76.86		$	56.13		$	62.71		$	63.60		$	52.58
Total Returnc		6.90	%		37.53	%		(10.10	%)		(0.73	%)		22.17	%		12.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,074		$	41,473		$	7,206		$	43,989		$	11,241		$	8,915
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.74	%		1.07	%		0.82	%		0.92	%		1.16	%
Total expenses		1.39	%		1.38	%		1.34	%		1.34	%		1.37	%		1.35	%
Portfolio turnover rate		612	%		907	%		514	%		583	%		481	%		382	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	70.41		$	51.55		$	57.76		$	58.75		$	48.74		$	43.45
Income (loss) from investment operations:
Net investment income (loss)b		.22			.33			.40			.26			.39			.36
Net gain (loss) on investments (realized and unrealized)		4.54			18.84			(6.32	)		(.83	)		10.23			5.08
Total from investment operations		4.76			19.17			(5.92	)		(.57	)		10.62			5.44
Less distributions from:
Net investment income		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Total distributions		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Net asset value, end of period	$	75.17		$	70.41		$	51.55		$	57.76		$	58.75		$	48.74
Total Returnc		6.78	%		37.21	%		(10.31	%)		(0.98	%)		21.84	%		12.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,078		$	5,934		$	876		$	1,054		$	8,305		$	2,103
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.51	%		0.69	%		0.45	%		0.71	%		0.88	%
Total expenses		1.64	%		1.63	%		1.59	%		1.60	%		1.62	%		1.59	%
Portfolio turnover rate		612	%		907	%		514	%		583	%		481	%		382	%

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	63.98		$	47.22		$	53.34		$	54.69		$	45.74		$	41.09
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.05	)		.03			(.14	)		(.05	)		.01
Net gain (loss) on investments (realized and unrealized)		4.11			17.12			(5.86	)		(.79	)		9.61			4.79
Total from investment operations		4.07			17.07			(5.83	)		(.93	)		9.56			4.80
Less distributions from:
Net investment income		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Total distributions		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Net asset value, end of period	$	68.05		$	63.98		$	47.22		$	53.34		$	54.69		$	45.74
Total Returnc		6.38	%		36.18	%		(10.99	%)		(1.71	%)		20.95	%		11.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,151		$	5,634		$	3,188		$	3,131		$	4,307		$	4,036
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		(0.09	%)		0.05	%		(0.26	%)		(0.10	%)		0.02	%
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		612	%		907	%		514	%		583	%		481	%		382	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	68.61		$	50.22		$	56.30		$	57.40		$	47.71		$	42.63
Income (loss) from investment operations:
Net investment income (loss)b		.20			.29			.33			(.01	)		.23			.17
Net gain (loss) on investments (realized and unrealized)		4.43			18.41			(6.12	)		(.67	)		10.07			5.06
Total from investment operations		4.63			18.70			(5.79	)		(.68	)		10.30			5.23
Less distributions from:
Net investment income		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Total distributions		—			(.31	)		(.29	)		(.42	)		(.61	)		(.15	)
Net asset value, end of period	$	73.24		$	68.61		$	50.22		$	56.30		$	57.40		$	47.71
Total Returnc		6.76	%		37.26	%		(10.34	%)		(1.19	%)		21.64	%		12.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,600		$	8,467		$	1,360		$	847		$	540		$	4,235
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.45	%		0.57	%		(0.02	%)		0.44	%		0.38	%
Total expenses		1.64	%		1.63	%		1.68	%		1.85	%		1.87	%		1.86	%
Portfolio turnover rate		612	%		907	%		514	%		583	%		481	%		382	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	May 3, 2001
H-Class	April 14, 1998

Ten Largest Holdings (% of Total Net Assets)
DowDuPont, Inc.	4.4%
Monsanto Co.	2.6%
Praxair, Inc.	2.3%
LyondellBasell Industries N.V. — Class A	2.2%
Ecolab, Inc.	2.1%
Sherwin-Williams Co.	2.1%
Air Products & Chemicals, Inc.	2.0%
PPG Industries, Inc.	1.8%
International Paper Co.	1.7%
Freeport-McMoRan, Inc.	1.7%
Top Ten Total	22.9%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	7.28%	17.91%	5.03%	2.58%
A-Class Shares	7.16%	17.61%	4.77%	2.32%
A-Class Shares with sales charge‡	2.07%	12.03%	3.75%	1.83%
C-Class Shares	6.74%	16.74%	3.99%	1.55%
C-Class Shares with CDSC§	5.74%	15.74%	3.99%	1.55%
H-Class Shares**	7.13%	17.60%	4.62%	2.12%
S&P 500 Materials Index	9.41%	21.26%	11.29%	5.47%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Chemicals - 44.2%
DowDuPont, Inc.		52,489	$	3,633,814
Monsanto Co.		17,546		2,102,363
Praxair, Inc.		13,222		1,847,643
LyondellBasell Industries N.V. — Class A		18,185		1,801,224
Sherwin-Williams Co.		4,766		1,706,419
Air Products & Chemicals, Inc.		10,798		1,632,874
PPG Industries, Inc.		13,920		1,512,547
Albemarle Corp.		8,149		1,110,790
Celanese Corp. — Class A		10,533		1,098,276
Eastman Chemical Co.		11,868		1,073,935
FMC Corp.		10,730		958,296
International Flavors & Fragrances, Inc.		6,591		941,920
Westlake Chemical Corp.		11,160		927,284
Chemours Co.		17,014		861,079
Mosaic Co.		37,823		816,599
CF Industries Holdings, Inc.		23,120		812,899
Potash Corporation of Saskatchewan, Inc.		40,375		776,815
Axalta Coating Systems Ltd.*		26,475		765,657
RPM International, Inc.		14,777		758,651
Huntsman Corp.		26,158		717,252
Olin Corp.		20,617		706,132
NewMarket Corp.		1,606		683,755
Methanex Corp.		12,670		637,301
WR Grace & Co.		8,756		631,745
Valvoline, Inc.		26,383		618,681
Agrium, Inc.		5,533		593,193
Ashland Global Holdings, Inc.		8,852		578,832
Cabot Corp.		9,828		548,402
PolyOne Corp.		13,312		532,879
Sensient Technologies Corp.		6,820		524,594
Platform Specialty Products Corp.*		45,440		506,656
Ingevity Corp.*		7,799		487,204
HB Fuller Co.		8,380		486,543
Balchem Corp.		5,860		476,359
Minerals Technologies, Inc.		6,375		450,394
GCP Applied Technologies, Inc.*		13,700		420,590
Tronox Ltd. — Class A		19,700		415,670
Kraton Corp.*		9,000		363,960
Innospec, Inc.		5,900		363,735
A. Schulman, Inc.		8,900		303,935
Total Chemicals				36,186,897
Mining - 19.6%
Freeport-McMoRan, Inc.*		97,556		1,369,685
Newmont Mining Corp.		33,533		1,257,823
Barrick Gold Corp.		76,775		1,235,310
Rio Tinto plc ADR		21,275		1,003,967
Goldcorp, Inc.		70,694		916,194
Alcoa Corp.*		17,719		826,060
BHP Billiton Ltd. ADR1		19,115		774,731
Teck Resources Ltd. — Class B		35,341		745,342
Randgold Resources Ltd. ADR1		7,604		742,607
Agnico Eagle Mines Ltd.		15,240		689,000
Royal Gold, Inc.		7,701		662,594
Wheaton Precious Metals Corp.		34,474		658,109
Pan American Silver Corp.		37,959		647,201
Franco-Nevada Corp.		8,282		641,689
AngloGold Ashanti Ltd. ADR		65,541		608,876
SSR Mining, Inc.*		52,300		554,903
First Majestic Silver Corp.*,1		77,239		528,315
Compass Minerals International, Inc.1		6,368		413,283
Hecla Mining Co.		79,831		400,752
Kaiser Aluminum Corp.		3,857		397,811
Coeur Mining, Inc.*		37,977		349,009
Tahoe Resources, Inc.		59,268		312,342
Century Aluminum Co.*		18,708		310,179
Total Mining				16,045,782
Packaging & Containers - 11.3%
Ball Corp.		26,368		1,088,998
WestRock Co.		18,769		1,064,765
Packaging Corporation of America		8,014		919,046
Sealed Air Corp.		19,443		830,605
Crown Holdings, Inc.*		13,334		796,306
Berry Global Group, Inc.*		13,837		783,866
Sonoco Products Co.		12,830		647,274
Graphic Packaging Holding Co.		44,428		619,771
Owens-Illinois, Inc.*		22,968		577,875
Bemis Company, Inc.1		11,866		540,734
Silgan Holdings, Inc.		17,700		520,911
Greif, Inc. — Class A		8,600		503,444
KapStone Paper and Packaging Corp.		18,090		388,754
Total Packaging & Containers				9,282,349
Iron & Steel - 9.7%
Vale S.A. ADR		131,238		1,321,566
Nucor Corp.		22,329		1,251,316
Steel Dynamics, Inc.1		24,755		853,305
ArcelorMittal*,1		30,071		774,629
Reliance Steel & Aluminum Co.		9,033		688,044
United States Steel Corp.		23,429		601,188
Carpenter Technology Corp.		9,688		465,315
Allegheny Technologies, Inc.*,1		19,419		464,114
Commercial Metals Co.		23,291		443,228
Cleveland-Cliffs, Inc.*		61,014		436,250
AK Steel Holding Corp.*,1		66,420		371,288
Schnitzer Steel Industries, Inc. — Class A		9,230		259,825
Total Iron & Steel				7,930,068
Building Materials - 6.6%
Vulcan Materials Co.		9,723		1,162,871
Martin Marietta Materials, Inc.		5,049		1,041,255
Cemex SAB de CV ADR*		92,120		836,450
Eagle Materials, Inc.		5,861		625,369
Summit Materials, Inc. — Class A*		17,107		547,937
Louisiana-Pacific Corp.*		20,053		543,035
Boise Cascade Co.*		9,700		338,530
US Concrete, Inc.*,1		4,420		337,246
Total Building Materials				5,432,693

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
BASIC MATERIALS FUND

	Shares		Value
Forest Products & Paper - 2.3%
International Paper Co.		24,223	$	1,376,350
Domtar Corp.		10,881		472,127
Total Forest Products & Paper				1,848,477
Commercial Services - 2.2%
Ecolab, Inc.		13,504		1,736,749
Miscellaneous Manufacturing - 1.4%
AptarGroup, Inc.		7,714		665,795
Trinseo S.A.		7,030		471,713
Total Miscellaneous Manufacturing				1,137,508
Household Products & Housewares - 1.0%
Avery Dennison Corp.		8,655		851,133
Housewares - 0.8%
Scotts Miracle-Gro Co. — Class A		7,140		695,008
Metal Fabricate & Hardware - 0.6%
Worthington Industries, Inc.		10,100		464,600
Total Common Stocks
(Cost $68,163,810)				81,611,264
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.0%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	413,455		413,455
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		206,728		206,728
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		206,569		206,569
Total Repurchase Agreements
(Cost $826,752)				826,752

	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.8%
First American Government Obligations Fund — Class Z, 0.89%4		3,088,603		3,088,603
Total Securities Lending Collateral
(Cost $3,088,603)				3,088,603
Total Investments - 104.5%
(Cost $72,079,165)			$	85,526,619
Other Assets & Liabilities, net - (4.5)%				(3,674,019	)
Total Net Assets - 100.0%			$	81,852,600

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
BASIC MATERIALS FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	81,611,264	$	—	$	—	$	81,611,264
Repurchase Agreements		—		826,752		—		826,752
Securities Lending Collateral		3,088,603		—		—		3,088,603
Total Assets	$	84,699,867	$	826,752	$	—	$	85,526,619

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $3,008,496 of securities loaned (cost $71,252,413)	$	84,699,867
Repurchase agreements, at value (cost $826,752)		826,752
Cash		5,991
Receivables:
Securities sold		1,582,944
Fund shares sold		185,947
Dividends		76,137
Securities lending income		690
Foreign taxes reclaim		339
Interest		45
Total assets		87,378,712
Liabilities:
Payable for:
Return of securities loaned		3,088,603
Fund shares redeemed		2,169,660
Deferred foreign capital gain taxes		156,725
Management fees		56,051
Transfer agent and administrative fees		16,485
Distribution and service fees		8,620
Portfolio accounting fees		6,594
Miscellaneous		23,374
Total liabilities		5,526,112
Commitments and contingent liabilities (Note 10)		—
Net assets	$	81,852,600
Net assets consist of:
Paid in capital	$	77,163,236
Accumulated net investment loss		(63,432	)
Accumulated net realized loss on investments		(8,694,658	)
Net unrealized appreciation on investments		13,447,454
Net assets	$	81,852,600
Investor Class:
Net assets	$	57,477,730
Capital shares outstanding		960,200
Net asset value per share	$	59.86
A-Class:
Net assets	$	9,338,564
Capital shares outstanding		165,990
Net asset value per share	$	56.26
Maximum offering price per share (Net asset value divided by 95.25%)	$	59.07
C-Class:
Net assets	$	5,360,990
Capital shares outstanding		106,832
Net asset value per share	$	50.18
H-Class:
Net assets	$	9,675,316
Capital shares outstanding		177,331
Net asset value per share	$	54.56

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $9,626)	$	664,919
Interest		2,389
Income from securities lending, net		5,189
Total investment income		672,497
Expenses:
Management fees		356,850
Distribution and service fees:
A-Class		14,806
C-Class		27,009
H-Class		12,064
Transfer agent and administrative fees		104,955
Registration fees		50,514
Portfolio accounting fees		41,982
Custodian fees		5,676
Trustees’ fees*		4,054
Tax expense		2,039
Line of credit fees		122
Miscellaneous		19,963
Total expenses		640,034
Net investment income		32,463
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		7,454,388
Net realized gain		7,454,388
Net change in unrealized appreciation (depreciation) on:
Investments		(2,070,797	)
Net change in unrealized appreciation (depreciation)		(2,070,797	)
Net realized and unrealized gain		5,383,591
Net increase in net assets resulting from operations	$	5,416,054

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	32,463		$	206,434
Net realized gain on investments		7,454,388			9,183,264
Net change in unrealized appreciation (depreciation) on investments		(2,070,797	)		5,660,263
Net increase in net assets resulting from operations		5,416,054			15,049,961
Distributions to shareholders from:
Net investment income
Investor Class		—			(445,649	)
A-Class		—			(129,410	)
C-Class		—			(50,406	)
H-Class		—			(44,931	)
Total distributions to shareholders		—			(670,396	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		75,396,810			366,654,182
A-Class		7,792,009			60,038,778
C-Class		1,531,442			7,777,261
H-Class		38,717,835			46,556,397
Distributions reinvested
Investor Class		—			442,343
A-Class		—			124,774
C-Class		—			47,851
H-Class		—			44,870
Cost of shares redeemed
Investor Class		(78,248,330	)		(349,084,142	)
A-Class		(15,513,511	)		(50,808,000	)
C-Class		(2,350,826	)		(5,202,949	)
H-Class		(37,998,291	)		(43,707,838	)
Net increase (decrease) from capital share transactions		(10,672,862	)		32,883,527
Net increase (decrease) in net assets		(5,256,808	)		47,263,092
Net assets:
Beginning of period		87,109,408			39,846,316
End of period	$	81,852,600		$	87,109,408
Accumulated net investment loss at end of period	$	(63,432	)	$	(95,895	)
Capital share activity:
Shares sold
Investor Class		1,319,652			7,143,060
A-Class		145,154			1,268,197
C-Class		31,671			179,237
H-Class		759,798			1,009,782
Shares issued from reinvestment of distributions
Investor Class		—			8,544
A-Class		—			2,559
C-Class		—			1,093
H-Class		—			949
Shares redeemed
Investor Class		(1,380,064	)		(6,809,481	)
A-Class		(291,197	)		(1,056,076	)
C-Class		(48,923	)		(119,321	)
H-Class		(741,322	)		(915,003	)
Net increase (decrease) in shares		(205,231	)		713,540

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	55.71		$	45.18		$	50.18		$	52.53		$	49.94		$	49.80
Income (loss) from investment operations:
Net investment income (loss)b		.06			.18			.26			.29			.32			.46
Net gain (loss) on investments (realized and unrealized)		4.09			10.92			(4.39	)		(2.26	)		2.58			(.15	)
Total from investment operations		4.15			11.10			(4.13	)		(1.97	)		2.90			.31
Less distributions from:
Net investment income		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Total distributions		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Net asset value, end of period	$	59.86		$	55.71		$	45.18		$	50.18		$	52.53		$	49.94
Total Returnc		7.28	%		24.65	%		(8.07	%)		(3.77	%)		5.84	%		0.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	57,478		$	56,854		$	30,653		$	46,509		$	33,687		$	36,012
Ratios to average net assets:
Net investment income (loss)		0.21	%		0.35	%		0.55	%		0.56	%		0.66	%		0.95	%
Total expenses		1.40	%		1.37	%		1.35	%		1.34	%		1.38	%		1.36	%
Portfolio turnover rate		97	%		361	%		471	%		358	%		349	%		251	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	52.42		$	42.65		$	47.54		$	49.93		$	47.60		$	47.58
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		.03			.10			.13			.22			.32
Net gain (loss) on investments (realized and unrealized)		3.85			10.31			(4.12	)		(2.14	)		2.42			(.13	)
Total from investment operations		3.84			10.34			(4.02	)		(2.01	)		2.64			.19
Less distributions from:
Net investment income		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Total distributions		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Net asset value, end of period	$	56.26		$	52.42		$	42.65		$	47.54		$	49.93		$	47.60
Total Returnc		7.16	%		24.33	%		(8.29	%)		(4.05	%)		5.58	%		0.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,339		$	16,355		$	4,152		$	6,194		$	13,347		$	11,104
Ratios to average net assets:
Net investment income (loss)		(0.04	%)		0.06	%		0.24	%		0.27	%		0.47	%		0.69	%
Total expenses		1.65	%		1.62	%		1.60	%		1.60	%		1.63	%		1.61	%
Portfolio turnover rate		97	%		361	%		471	%		358	%		349	%		251	%

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	46.93		$	38.52		$	43.36		$	45.91		$	44.12		$	44.45
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.29	)		(.17	)		(.23	)		(.15	)		(.03	)
Net gain (loss) on investments (realized and unrealized)		3.44			9.27			(3.80	)		(1.94	)		2.25			(.13	)
Total from investment operations		3.25			8.98			(3.97	)		(2.17	)		2.10			(.16	)
Less distributions from:
Net investment income		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Total distributions		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Net asset value, end of period	$	50.18		$	46.93		$	38.52		$	43.36		$	45.91		$	44.12
Total Returnc		6.74	%		23.41	%		(8.98	%)		(4.76	%)		4.80	%		(0.35	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,361		$	5,824		$	2,430		$	3,133		$	5,150		$	6,666
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(0.66	%)		(0.43	%)		(0.49	%)		(0.34	%)		(0.07	%)
Total expenses		2.40	%		2.37	%		2.35	%		2.35	%		2.38	%		2.36	%
Portfolio turnover rate		97	%		361	%		471	%		358	%		349	%		251	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	50.84		$	41.37		$	46.19		$	48.64		$	46.50		$	46.61
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		.01			.09			—	d		.08			.19
Net gain (loss) on investments (realized and unrealized)		3.74			10.03			(4.04	)		(2.07	)		2.37			(.13	)
Total from investment operations		3.72			10.04			(3.95	)		(2.07	)		2.45			.06
Less distributions from:
Net investment income		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Total distributions		—			(.57	)		(.87	)		(.38	)		(.31	)		(.17	)
Net asset value, end of period	$	54.56		$	50.84		$	41.37		$	46.19		$	48.64		$	46.50
Total Returnc		7.13	%		24.36	%		(8.36	%)		(4.30	%)		5.31	%		0.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,675		$	8,077		$	2,612		$	2,073		$	2,678		$	3,616
Ratios to average net assets:
Net investment income (loss)		(0.06	%)		0.03	%		0.24	%		—	f		0.18	%		0.43	%
Total expenses		1.65	%		1.62	%		1.64	%		1.85	%		1.88	%		1.86	%
Portfolio turnover rate		97	%		361	%		471	%		358	%		349	%		251	%

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net investment income (loss) is less than $0.01 per share.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
f	Less than 0.01%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
Amgen, Inc.	5.6%
AbbVie, Inc.	5.5%
Celgene Corp.	5.3%
Gilead Sciences, Inc.	4.9%
Biogen, Inc.	3.8%
Regeneron Pharmaceuticals, Inc.	3.7%
Shire plc ADR	3.3%
Vertex Pharmaceuticals, Inc.	3.1%
Alexion Pharmaceuticals, Inc.	2.7%
Illumina, Inc.	2.6%
Top Ten Total	40.5%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	16.82%	19.23%	18.01%	15.17%
A-Class Shares	16.68%	18.94%	17.72%	14.88%
A-Class Shares with sales charge‡	11.14%	13.29%	16.58%	14.32%
C-Class Shares	16.25%	18.07%	16.84%	14.04%
C-Class Shares with CDSC§	15.25%	17.07%	16.84%	14.04%
H-Class Shares**	16.67%	18.95%	17.55%	14.66%
S&P 500 Health Care Index	11.01%	15.49%	17.30%	10.86%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Biotechnology - 63.9%
Amgen, Inc.		120,899	$	22,541,620
Celgene Corp.*		147,479		21,505,389
Gilead Sciences, Inc.		246,365		19,960,493
Biogen, Inc.*		49,475		15,491,613
Regeneron Pharmaceuticals, Inc.*		33,512		14,983,885
Vertex Pharmaceuticals, Inc.*		83,387		12,678,159
Alexion Pharmaceuticals, Inc.*		78,962		11,077,579
Illumina, Inc.*		51,697		10,298,042
Incyte Corp.*		85,917		10,029,951
Alnylam Pharmaceuticals, Inc.*,1		72,271		8,491,120
BioMarin Pharmaceutical, Inc.*		84,762		7,888,799
Kite Pharma, Inc.*		32,534		5,849,939
Seattle Genetics, Inc.*		101,027		5,496,879
Exelixis, Inc.*		214,167		5,189,266
Bio-Rad Laboratories, Inc. — Class A*		23,182		5,151,504
Bioverativ, Inc.*		89,547		5,110,447
Exact Sciences Corp.*		108,444		5,109,881
United Therapeutics Corp.*		39,946		4,681,272
Charles River Laboratories International, Inc.*		43,218		4,668,408
Bluebird Bio, Inc.*		33,220		4,562,767
Ionis Pharmaceuticals, Inc.*		86,641		4,392,699
Puma Biotechnology, Inc.*		35,210		4,216,398
Spark Therapeutics, Inc.*		43,020		3,835,663
Prothena Corporation plc*,1		58,533		3,791,182
Medicines Co.*,1		101,908		3,774,672
Juno Therapeutics, Inc.*		83,350		3,739,081
Sage Therapeutics, Inc.*		54,620		3,402,826
Ligand Pharmaceuticals, Inc. — Class B*,1		24,635		3,354,055
Myriad Genetics, Inc.*		89,596		3,241,583
Halozyme Therapeutics, Inc.*		176,675		3,068,845
Intrexon Corp.*,1		159,720		3,036,277
Ultragenyx Pharmaceutical, Inc.*		57,006		3,036,140
Esperion Therapeutics, Inc.*		45,837		2,297,350
Five Prime Therapeutics, Inc.*		56,031		2,292,228
Acorda Therapeutics, Inc.*		96,491		2,282,012
Intercept Pharmaceuticals, Inc.*,1		39,060		2,267,042
Acceleron Pharma, Inc.*		59,660		2,226,511
Dynavax Technologies Corp.*		99,800		2,145,700
AMAG Pharmaceuticals, Inc.*		76,401		1,409,598
Total Biotechnology				258,576,875
Pharmaceuticals - 29.8%
AbbVie, Inc.		249,634		22,182,477
Shire plc ADR		86,180		13,197,605
TESARO, Inc.*		46,513		6,004,828
Jazz Pharmaceuticals plc*		34,060		4,981,275
Neurocrine Biosciences, Inc.*		78,221		4,793,383
Alkermes plc*		93,978		4,777,842
PRA Health Sciences, Inc.*		60,730		4,625,804
Clovis Oncology, Inc.*		55,900		4,606,160
ACADIA Pharmaceuticals, Inc.*		113,108		4,260,778
Akorn, Inc.*		125,093		4,151,837
Avexis, Inc.*,1		40,440		3,911,761
Nektar Therapeutics*		160,647		3,855,528
Portola Pharmaceuticals, Inc.*		67,835		3,665,125
Agios Pharmaceuticals, Inc.*		52,248		3,487,554
Amicus Therapeutics, Inc.*,1		224,610		3,387,119
Horizon Pharma plc*		247,636		3,140,024
Sarepta Therapeutics, Inc.*		68,900		3,125,304
Radius Health, Inc.*,1		79,393		3,060,600
Ironwood Pharmaceuticals, Inc. — Class A*		193,501		3,051,511
Array BioPharma, Inc.*		247,150		3,039,945
Global Blood Therapeutics, Inc.*		85,875		2,666,419
Pacira Pharmaceuticals, Inc.*		65,540		2,461,027
Impax Laboratories, Inc.*		113,707		2,308,252
Heron Therapeutics, Inc.*,1		132,650		2,142,298
Eagle Pharmaceuticals, Inc.*,1		32,160		1,918,022
Cara Therapeutics, Inc.*,1		100,700		1,378,583
Total Pharmaceuticals				120,181,061
Healthcare-Products - 2.6%
Bio-Techne Corp.		35,452		4,285,792
QIAGEN N.V.*		120,517		3,796,286
MiMedx Group, Inc.*,1		200,575		2,382,831
Total Healthcare-Products				10,464,909
Healthcare-Services - 2.3%
Quintiles IMS Holdings, Inc.*		99,644		9,473,155
Commercial Services - 1.2%
Incorporated Research Holdings, Inc. — Class A*		91,710		4,796,433
Total Common Stocks
(Cost $234,323,789)				403,492,433
RIGHTS††† - 0.0%
Chelsea Therapeutics International
Expires 12/31/17*,5		231,107		—
Dyax Corp.
Expires 01/25/18*,5		167,165		—
Clinical Data, Inc.
Expires 12/31/20*,5		24,000		—
Total Rights
(Cost $17,304)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
BIOTECHNOLOGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.2%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	308,553	$	308,553
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		154,277		154,277
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		154,158		154,158
Total Repurchase Agreements
(Cost $616,988)				616,988

	Shares
SECURITIES LENDING COLLATERAL†,3 - 5.7%
First American Government Obligations Fund — Class Z, 0.89%4		22,839,008		22,839,008
Total Securities Lending Collateral
(Cost $22,839,008)				22,839,008
Total Investments - 105.7%
(Cost $257,797,089)			$	426,948,429
Other Assets & Liabilities, net - (5.7)%				(23,196,103	)
Total Net Assets - 100.0%			$	403,752,326

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
5	Security was fair valued by the valuation committee at September 30, 2017. The total market value of fair valued securities amounts to $0, (cost $17,304) or 0.0% of total net assets.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	403,492,433	$	—	$	—		$	403,492,433
Repurchase Agreements		—		616,988		—			616,988
Rights		—		—		—	*		—
Securities Lending Collateral		22,839,008		—		—			22,839,008
Total Assets	$	426,331,441	$	616,988	$	—		$	426,948,429

* Market value of securities is $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $22,326,563 of securities loaned (cost $257,180,101)	$	426,331,441
Repurchase agreements, at value (cost $616,988)		616,988
Receivables:
Fund shares sold		812,001
Securities lending income		13,562
Dividends		12,564
Interest		34
Total assets		427,786,590
Liabilities:
Payable for:
Return of securities loaned		22,839,008
Fund shares redeemed		643,652
Management fees		276,561
Transfer agent and administrative fees		81,341
Distribution and service fees		34,251
Portfolio accounting fees		29,539
Miscellaneous		129,912
Total liabilities		24,034,264
Commitments and contingent liabilities (Note 10)		—
Net assets	$	403,752,326
Net assets consist of:
Paid in capital	$	219,223,180
Accumulated net investment loss		(1,772,095	)
Accumulated net realized gain on investments		17,149,901
Net unrealized appreciation on investments		169,151,340
Net assets	$	403,752,326
Investor Class:
Net assets	$	308,235,904
Capital shares outstanding		3,309,959
Net asset value per share	$	93.12
A-Class:
Net assets	$	36,580,793
Capital shares outstanding		422,806
Net asset value per share	$	86.52
Maximum offering price per share (Net asset value divided by 95.25%)	$	90.83
C-Class:
Net assets	$	23,578,385
Capital shares outstanding		301,238
Net asset value per share	$	78.27
H-Class:
Net assets	$	35,357,244
Capital shares outstanding		419,936
Net asset value per share	$	84.20

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	1,289,980
Interest		8,217
Income from securities lending, net		67,298
Total investment income		1,365,495
Expenses:
Management fees		1,498,972
Distribution and service fees:
A-Class		46,963
C-Class		109,477
H-Class		37,990
Transfer agent and administrative fees		440,872
Registration fees		173,839
Portfolio accounting fees		163,597
Custodian fees		23,221
Trustees’ fees*		13,403
Line of credit fees		18
Miscellaneous		126,453
Total expenses		2,634,805
Net investment loss		(1,269,310	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		29,531,787
Net realized gain		29,531,787
Net change in unrealized appreciation (depreciation) on:
Investments		24,749,893
Net change in unrealized appreciation (depreciation)		24,749,893
Net realized and unrealized gain		54,281,680
Net increase in net assets resulting from operations	$	53,012,370

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,269,310	)	$	(3,016,948	)
Net realized gain on investments		29,531,787			33,962,436
Net change in unrealized appreciation (depreciation) on investments		24,749,893			16,030,019
Net increase in net assets resulting from operations		53,012,370			46,975,507
Capital share transactions:
Proceeds from sale of shares
Investor Class		158,890,316			566,789,465
A-Class		8,675,161			12,173,169
C-Class		2,415,471			6,487,269
H-Class		126,040,381			248,519,397
Cost of shares redeemed
Investor Class		(129,712,544	)		(624,179,693	)
A-Class		(14,685,381	)		(30,279,707	)
C-Class		(3,143,895	)		(15,081,301	)
H-Class		(113,507,621	)		(258,314,588	)
Net increase (decrease) from capital share transactions		34,971,888			(93,885,989	)
Net increase (decrease) in net assets		87,984,258			(46,910,482	)
Net assets:
Beginning of period		315,768,068			362,678,550
End of period	$	403,752,326		$	315,768,068
Accumulated net investment loss at end of period	$	(1,772,095	)	$	(502,785	)
Capital share activity:
Shares sold
Investor Class		1,840,723			7,604,195
A-Class		109,947			171,354
C-Class		33,479			102,310
H-Class		1,705,439			3,763,839
Shares redeemed
Investor Class		(1,523,890	)		(8,424,736	)
A-Class		(184,030	)		(438,604	)
C-Class		(44,036	)		(239,863	)
H-Class		(1,553,058	)		(3,937,371	)
Net increase (decrease) in shares		384,574			(1,398,876	)

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	79.72		$	68.30		$	93.63		$	68.47		$	48.97		$	36.90
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.57	)		(.75	)		(.27	)		(.51	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		13.66			11.99			(23.30	)		28.59			20.01			12.47
Total from investment operations		13.40			11.42			(24.05	)		28.32			19.50			12.07
Less distributions from:
Net realized gains		—			—			(1.28	)		(3.16	)		—			—
Total distributions		—			—			(1.28	)		(3.16	)		—			—
Net asset value, end of period	$	93.12		$	79.72		$	68.30		$	93.63		$	68.47		$	48.97
Total Returnc		16.82	%		16.71	%		(25.98	%)		42.19	%		39.82	%		32.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	308,236		$	238,614		$	260,476		$	498,068		$	313,324		$	171,844
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.76	%)		(0.84	%)		(0.34	%)		(0.82	%)		(0.98	%)
Total expenses		1.38	%		1.37	%		1.32	%		1.33	%		1.36	%		1.35	%
Portfolio turnover rate		53	%		207	%		83	%		107	%		119	%		197	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	74.16		$	63.69		$	87.63		$	64.41		$	46.18		$	34.88
Income (loss) from investment operations:
Net investment income (loss)b		(.34	)		(.70	)		(.91	)		(.44	)		(.62	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		12.70			11.17			(21.75	)		26.82			18.85			11.78
Total from investment operations		12.36			10.47			(22.66	)		26.38			18.23			11.30
Less distributions from:
Net realized gains		—			—			(1.28	)		(3.16	)		—			—
Total distributions		—			—			(1.28	)		(3.16	)		—			—
Net asset value, end of period	$	86.52		$	74.16		$	63.69		$	87.63		$	64.41		$	46.18
Total Returnc		16.68	%		16.42	%		(26.17	%)		41.83	%		39.48	%		32.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	36,581		$	36,849		$	48,672		$	89,260		$	51,270		$	26,391
Ratios to average net assets:
Net investment income (loss)		(0.85	%)		(1.01	%)		(1.09	%)		(0.59	%)		(1.07	%)		(1.21	%)
Total expenses		1.63	%		1.61	%		1.57	%		1.58	%		1.61	%		1.61	%
Portfolio turnover rate		53	%		207	%		83	%		107	%		119	%		197	%

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	67.34		$	58.27		$	80.88		$	60.10		$	43.41		$	33.04
Income (loss) from investment operations:
Net investment income (loss)b		(.58	)		(1.11	)		(1.40	)		(.92	)		(.99	)		(.73	)
Net gain (loss) on investments (realized and unrealized)		11.51			10.18			(19.93	)		24.86			17.68			11.10
Total from investment operations		10.93			9.07			(21.33	)		23.94			16.69			10.37
Less distributions from:
Net realized gains		—			—			(1.28	)		(3.16	)		—			—
Total distributions		—			—			(1.28	)		(3.16	)		—			—
Net asset value, end of period	$	78.27		$	67.34		$	58.27		$	80.88		$	60.10		$	43.41
Total Returnc		16.25	%		15.55	%		(26.72	%)		40.75	%		38.45	%		31.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,578		$	20,997		$	26,185		$	41,424		$	27,170		$	13,677
Ratios to average net assets:
Net investment income (loss)		(1.61	%)		(1.76	%)		(1.84	%)		(1.34	%)		(1.82	%)		(1.96	%)
Total expenses		2.38	%		2.36	%		2.33	%		2.33	%		2.36	%		2.36	%
Portfolio turnover rate		53	%		207	%		83	%		107	%		119	%		197	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	72.16		$	62.00		$	85.38		$	62.98		$	45.27		$	34.27
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.70	)		(.96	)		(.61	)		(.74	)		(.56	)
Net gain (loss) on investments (realized and unrealized)		12.34			10.86			(21.14	)		26.17			18.45			11.56
Total from investment operations		12.04			10.16			(22.10	)		25.56			17.71			11.00
Less distributions from:
Net realized gains		—			—			(1.28	)		(3.16	)		—			—
Total distributions		—			—			(1.28	)		(3.16	)		—			—
Net asset value, end of period	$	84.20		$	72.16		$	62.00		$	85.38		$	62.98		$	45.27
Total Returnc		16.67	%		16.39	%		(26.22	%)		41.49	%		39.12	%		32.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,357		$	19,308		$	27,346		$	63,196		$	37,978		$	22,486
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(1.04	%)		(1.17	%)		(0.84	%)		(1.32	%)		(1.46	%)
Total expenses		1.63	%		1.61	%		1.65	%		1.83	%		1.86	%		1.86	%
Portfolio turnover rate		53	%		207	%		83	%		107	%		119	%		197	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	July 24, 2001
H-Class	August 17, 1998

Ten Largest Holdings (% of Total Net Assets)
Procter & Gamble Co.	5.1%
Coca-Cola Co.	4.7%
Philip Morris International, Inc.	4.3%
PepsiCo, Inc.	4.3%
Altria Group, Inc.	3.9%
Kraft Heinz Co.	3.3%
Colgate-Palmolive Co.	2.7%
Mondelez International, Inc. — Class A	2.7%
Kimberly-Clark Corp.	2.2%
Estee Lauder Companies, Inc. — Class A	2.1%
Top Ten Total	35.3%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(0.70%)	2.61%	11.79%	9.11%
A-Class Shares	(0.82%)	2.35%	11.50%	8.85%
A-Class Shares with sales charge‡	(5.53%)	(2.51%)	10.42%	8.32%
C-Class Shares	(1.19%)	1.58%	10.67%	8.03%
C-Class Shares with CDSC§	(2.17%)	0.59%	10.67%	8.03%
H-Class Shares**	(0.83%)	2.34%	11.34%	8.64%
S&P 500 Consumer Staples Index	0.20%	4.42%	11.46%	9.79%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Staples Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Food - 39.6%
Kraft Heinz Co.		107,593	$	8,343,838
Mondelez International, Inc. — Class A		169,190		6,879,266
Sysco Corp.		86,766		4,681,027
Tyson Foods, Inc. — Class A		65,221		4,594,820
General Mills, Inc.		88,673		4,589,714
Hershey Co.		37,657		4,111,015
Kellogg Co.		62,231		3,881,347
Hormel Foods Corp.		114,229		3,671,320
Kroger Co.		180,283		3,616,477
Campbell Soup Co.		71,977		3,369,963
McCormick & Company, Inc.		31,116		3,193,746
Conagra Brands, Inc.		93,478		3,153,948
JM Smucker Co.		27,673		2,903,728
Ingredion, Inc.		20,647		2,490,854
BRF S.A. ADR*,1		160,700		2,315,687
Pilgrim’s Pride Corp.*		80,289		2,281,010
Lamb Weston Holdings, Inc.		48,510		2,274,634
Pinnacle Foods, Inc.		39,500		2,258,215
Blue Buffalo Pet Products, Inc.*,1		76,519		2,169,314
Post Holdings, Inc.*		24,200		2,136,134
US Foods Holding Corp.*		79,200		2,114,640
Hain Celestial Group, Inc.*		43,525		1,791,054
Flowers Foods, Inc.		91,982		1,730,181
TreeHouse Foods, Inc.*		25,491		1,726,505
Snyder’s-Lance, Inc.		44,600		1,701,044
Sanderson Farms, Inc.		9,998		1,614,877
Lancaster Colony Corp.		13,052		1,567,806
Sprouts Farmers Market, Inc.*		78,800		1,479,076
Darling Ingredients, Inc.*		83,464		1,462,289
Performance Food Group Co.*		51,100		1,443,575
J&J Snack Foods Corp.		10,500		1,378,650
Fresh Del Monte Produce, Inc.		29,200		1,327,432
B&G Foods, Inc.1		40,131		1,278,172
Cal-Maine Foods, Inc.*,1		29,800		1,224,780
Hostess Brands, Inc.*		85,300		1,165,198
United Natural Foods, Inc.*,1		27,630		1,149,132
Calavo Growers, Inc.		13,800		1,010,160
SpartanNash Co.		33,700		888,669
Dean Foods Co.		78,663		855,853
SUPERVALU, Inc.*		38,000		826,500
Total Food				100,651,650
Beverages - 23.0%
Coca-Cola Co.		262,940		11,834,930
PepsiCo, Inc.		97,905		10,909,554
Constellation Brands, Inc. — Class A		26,405		5,266,477
Monster Beverage Corp.*		86,617		4,785,589
Brown-Forman Corp. — Class B		71,356		3,874,631
Molson Coors Brewing Co. — Class B		43,858		3,580,567
Dr Pepper Snapple Group, Inc.		38,498		3,405,918
Anheuser-Busch InBev S.A. ADR		27,390		3,267,627
Coca-Cola European Partners plc		66,354		2,761,653
Diageo plc ADR		17,090		2,258,102
Fomento Economico Mexicano SAB de CV ADR		22,983		2,195,566
National Beverage Corp.		16,614		2,060,967
Coca-Cola Bottling Company Consolidated		5,700		1,229,775
Boston Beer Company, Inc. — Class A*,1		7,532		1,176,498
Total Beverages				58,607,854
Agriculture - 13.8%
Philip Morris International, Inc.		99,294		11,022,628
Altria Group, Inc.		154,801		9,817,479
Archer-Daniels-Midland Co.		97,035		4,124,958
British American Tobacco plc ADR		62,967		3,932,289
Bunge Ltd.		39,044		2,711,996
Vector Group Ltd.		69,169		1,415,881
Universal Corp.		18,000		1,031,400
Andersons, Inc.		25,100		859,675
Total Agriculture				34,916,306
Cosmetics & Personal Care - 13.2%
Procter & Gamble Co.		142,774		12,989,578
Colgate-Palmolive Co.		95,516		6,958,341
Estee Lauder Companies, Inc. — Class A1		49,567		5,345,305
Coty, Inc. — Class A		177,855		2,939,943
Unilever N.V. — Class Y		45,551		2,689,331
Edgewell Personal Care Co.*		24,188		1,760,161
e.l.f. Beauty, Inc.*,1		41,500		935,825
Total Cosmetics & Personal Care				33,618,484
Household Products & Housewares - 6.6%
Kimberly-Clark Corp.		47,190		5,553,319
Clorox Co.		27,224		3,591,118
Church & Dwight Company, Inc.		61,844		2,996,342
Spectrum Brands Holdings, Inc.		20,700		2,192,544
Central Garden & Pet Co. — Class A*		33,900		1,260,741
WD-40 Co.		9,700		1,085,430
Total Household Products & Housewares				16,679,494
Retail - 1.3%
Casey’s General Stores, Inc.		16,523		1,808,443
Nu Skin Enterprises, Inc. — Class A		24,830		1,526,548
Total Retail				3,334,991
Pharmaceuticals - 0.9%
Herbalife Ltd.*		32,375		2,195,996
Holding Companies-Diversified - 0.6%
HRG Group, Inc.*		101,200		1,579,732
Electrical Components & Equipment - 0.6%
Energizer Holdings, Inc.		31,335		1,442,977
Total Common Stocks
(Cost $178,371,800)				253,027,484

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
CONSUMER PRODUCTS FUND

	Shares		Value
RIGHTS††† - 0.0%
PDC
Expires 10/19/17*		93,765	$	—
Casa Ley
Expires 01/17/19*		93,765		—
Total Rights
(Cost $23,055)				—

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	319,560	319,560
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		159,780	159,780
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		159,658	159,658
Total Repurchase Agreements
(Cost $638,998)			638,998

	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.8%
First American Government Obligations Fund — Class Z, 0.89%4		4,523,114		4,523,114
Total Securities Lending Collateral
(Cost $4,523,114)				4,523,114
Total Investments - 101.7%
(Cost $183,556,967)			$	258,189,596
Other Assets & Liabilities, net - (1.7)%				(4,346,855	)
Total Net Assets - 100.0%			$	253,842,741

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
CONSUMER PRODUCTS FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	253,027,484	$	—	$	—		$	253,027,484
Repurchase Agreement		—		638,998		—			638,998
Rights		—		—		—	*		—
Securities Lending Collateral		4,523,114		—		—			4,523,114
Total Assets	$	257,550,598	$	638,998	$	—		$	258,189,596

* Market value of securities is $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $4,468,128 of securities loaned (cost $182,917,969)	$	257,550,598
Repurchase agreements, at value (cost $638,998)		638,998
Receivables:
Dividends		603,389
Fund shares sold		174,565
Foreign taxes reclaim		25,954
Securities lending income		3,403
Interest		35
Total assets		258,996,942
Liabilities:
Payable for:
Return of securities loaned		4,523,114
Fund shares redeemed		249,947
Management fees		181,486
Transfer agent and administrative fees		53,378
Distribution and service fees		31,104
Portfolio accounting fees		21,150
Miscellaneous		94,022
Total liabilities		5,154,201
Commitments and contingent liabilities (Note 10)		—
Net assets	$	253,842,741
Net assets consist of:
Paid in capital	$	167,337,518
Undistributed net investment income		2,088,737
Accumulated net realized gain on investments		9,783,857
Net unrealized appreciation on investments		74,632,629
Net assets	$	253,842,741
Investor Class:
Net assets	$	181,507,339
Capital shares outstanding		2,766,806
Net asset value per share	$	65.60
A-Class:
Net assets	$	34,572,351
Capital shares outstanding		569,505
Net asset value per share	$	60.71
Maximum offering price per share (Net asset value divided by 95.25%)	$	63.73
C-Class:
Net assets	$	25,263,660
Capital shares outstanding		473,494
Net asset value per share	$	53.36
H-Class:
Net assets	$	12,499,391
Capital shares outstanding		213,089
Net asset value per share	$	58.66

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $2,991)	$	3,314,850
Interest		4,921
Income from securities lending, net		61,678
Other income		1,593
Total investment income		3,383,042
Expenses:
Management fees		1,280,570
Distribution and service fees:
A-Class		47,748
C-Class		137,922
H-Class		34,060
Transfer agent and administrative fees		376,637
Registration fees		149,672
Portfolio accounting fees		144,327
Custodian fees		19,956
Trustees’ fees*		13,605
Line of credit fees		98
Miscellaneous		104,287
Total expenses		2,308,882
Net investment income		1,074,160
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		13,896,698
Net realized gain		13,896,698
Net change in unrealized appreciation (depreciation) on:
Investments		(17,081,117	)
Net change in unrealized appreciation (depreciation)		(17,081,117	)
Net realized and unrealized loss		(3,184,419	)
Net decrease in net assets resulting from operations	$	(2,110,259	)

* 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.

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,074,160		$	2,717,518
Net realized gain on investments		13,896,698			30,636,934
Net change in unrealized appreciation (depreciation) on investments		(17,081,117	)		(15,544,633	)
Net increase (decrease) in net assets resulting from operations		(2,110,259	)		17,809,819
Distributions to shareholders from:
Net investment income
Investor Class		—			(2,259,234	)
A-Class		—			(473,017	)
C-Class		—			(350,535	)
H-Class		—			(619,330	)
Net realized gains
Investor Class		—			(1,131,947	)
A-Class		—			(236,997	)
C-Class		—			(175,629	)
H-Class		—			(310,304	)
Total distributions to shareholders		—			(5,556,993	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		83,627,217			276,892,039
A-Class		4,228,473			33,790,536
C-Class		2,286,879			16,171,468
H-Class		67,133,878			114,109,709
Distributions reinvested
Investor Class		—			3,294,770
A-Class		—			587,359
C-Class		—			490,705
H-Class		—			886,577
Cost of shares redeemed
Investor Class		(108,329,430	)		(357,313,404	)
A-Class		(9,672,111	)		(49,406,491	)
C-Class		(5,105,985	)		(12,830,920	)
H-Class		(89,936,948	)		(146,843,066	)
Net decrease from capital share transactions		(55,768,027	)		(120,170,718	)
Net decrease in net assets		(57,878,286	)		(107,917,892	)
Net assets:
Beginning of period		311,721,027			419,638,919
End of period	$	253,842,741		$	311,721,027
Undistributed net investment income at end of period	$	2,088,737		$	1,014,577

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		1,252,644			4,295,268
A-Class		68,455			566,319
C-Class		42,112			304,356
H-Class		1,141,475			2,015,223
Shares issued from reinvestment of distributions
Investor Class		—			54,119
A-Class		—			10,403
C-Class		—			9,824
H-Class		—			16,250
Shares redeemed
Investor Class		(1,629,486	)		(5,607,116	)
A-Class		(156,869	)		(835,458	)
C-Class		(94,154	)		(245,971	)
H-Class		(1,526,595	)		(2,596,061	)
Net decrease in shares		(902,418	)		(2,012,844	)

38 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	66.06		$	62.84		$	58.55		$	52.08		$	47.79		$	40.19
Income (loss) from investment operations:
Net investment income (loss)b		.28			.51			.61			.71			.46			.57
Net gain (loss) on investments (realized and unrealized)		(.74	)		3.58			4.92			6.44			5.81			7.14
Total from investment operations		(.46	)		4.09			5.53			7.15			6.27			7.71
Less distributions from:
Net investment income		—			(.58	)		(.49	)		(.24	)		(.46	)		(.11	)
Net realized gains		—			(.29	)		(.75	)		(.44	)		(1.52	)		—
Total distributions		—			(.87	)		(1.24	)		(.68	)		(1.98	)		(.11	)
Net asset value, end of period	$	65.60		$	66.06		$	62.84		$	58.55		$	52.08		$	47.79
Total Returnc		(0.70	%)		6.62	%		9.65	%		13.77	%		13.24	%		19.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	181,507		$	207,683		$	276,578		$	222,954		$	102,231		$	181,945
Ratios to average net assets:
Net investment income (loss)		0.85	%		0.79	%		1.03	%		1.27	%		0.91	%		1.38	%
Total expenses		1.39	%		1.36	%		1.34	%		1.34	%		1.37	%		1.35	%
Portfolio turnover rate		46	%		75	%		104	%		87	%		112	%		230	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	61.21		$	58.43		$	54.66		$	48.79		$	45.00		$	37.93
Income (loss) from investment operations:
Net investment income (loss)b		.19			.33			.45			.48			.33			.44
Net gain (loss) on investments (realized and unrealized)		(.69	)		3.32			4.56			6.07			5.44			6.74
Total from investment operations		(.50	)		3.65			5.01			6.55			5.77			7.18
Less distributions from:
Net investment income		—			(.58	)		(.49	)		(.24	)		(.46	)		(.11	)
Net realized gains		—			(.29	)		(.75	)		(.44	)		(1.52	)		—
Total distributions		—			(.87	)		(1.24	)		(.68	)		(1.98	)		(.11	)
Net asset value, end of period	$	60.71		$	61.21		$	58.43		$	54.66		$	48.79		$	45.00
Total Returnc		(0.82	%)		6.35	%		9.38	%		13.47	%		12.95	%		18.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,572		$	40,272		$	53,560		$	32,762		$	25,538		$	21,604
Ratios to average net assets:
Net investment income (loss)		0.60	%		0.56	%		0.82	%		0.92	%		0.70	%		1.12	%
Total expenses		1.64	%		1.62	%		1.60	%		1.60	%		1.62	%		1.60	%
Portfolio turnover rate		46	%		75	%		104	%		87	%		112	%		230	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	54.00		$	52.04		$	49.18		$	44.29		$	41.32		$	35.11
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.10	)		.03			.09			(.01	)		.13
Net gain (loss) on investments (realized and unrealized)		(.60	)		2.93			4.07			5.48			4.96			6.19
Total from investment operations		(.64	)		2.83			4.10			5.57			4.95			6.32
Less distributions from:
Net investment income		—			(.58	)		(.49	)		(.24	)		(.46	)		(.11	)
Net realized gains		—			(.29	)		(.75	)		(.44	)		(1.52	)		—
Total distributions		—			(.87	)		(1.24	)		(.68	)		(1.98	)		(.11	)
Net asset value, end of period	$	53.36		$	54.00		$	52.04		$	49.18		$	44.29		$	41.32
Total Returnc		(1.19	%)		5.55	%		8.57	%		12.62	%		12.11	%		18.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,264		$	28,380		$	23,799		$	17,717		$	14,125		$	11,699
Ratios to average net assets:
Net investment income (loss)		(0.14	%)		(0.20	%)		0.05	%		0.20	%		(0.02	%)		0.37	%
Total expenses		2.39	%		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		46	%		75	%		104	%		87	%		112	%		230	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	59.15		$	56.50		$	52.94		$	47.39		$	43.87		$	37.08
Income (loss) from investment operations:
Net investment income (loss)b		.21			.31			.39			.37			.24			.35
Net gain (loss) on investments (realized and unrealized)		(.70	)		3.21			4.41			5.86			5.26			6.55
Total from investment operations		(.49	)		3.52			4.80			6.23			5.50			6.90
Less distributions from:
Net investment income		—			(.58	)		(.49	)		(.24	)		(.46	)		(.11	)
Net realized gains		—			(.29	)		(.75	)		(.44	)		(1.52	)		—
Total distributions		—			(.87	)		(1.24	)		(.68	)		(1.98	)		(.11	)
Net asset value, end of period	$	58.66		$	59.15		$	56.50		$	52.94		$	47.39		$	43.87
Total Returnc		(0.83	%)		6.35	%		9.29	%		13.19	%		12.66	%		18.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,499		$	35,387		$	65,702		$	49,751		$	27,162		$	10,148
Ratios to average net assets:
Net investment income (loss)		0.72	%		0.54	%		0.72	%		0.74	%		0.51	%		0.93	%
Total expenses		1.64	%		1.61	%		1.66	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		46	%		75	%		104	%		87	%		112	%		230	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	March 26, 2001
H-Class	April 2, 1998

Ten Largest Holdings (% of Total Net Assets)
Intel Corp.	7.5%
NVIDIA Corp.	5.9%
Broadcom Ltd.	5.6%
Texas Instruments, Inc.	5.5%
QUALCOMM, Inc.	5.0%
Applied Materials, Inc.	4.3%
Micron Technology, Inc.	3.7%
Analog Devices, Inc.	3.2%
Lam Research Corp.	3.1%
Microchip Technology, Inc.	2.5%
Top Ten Total	46.3%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	12.59%	29.54%	22.00%	6.11%
A-Class Shares	12.45%	29.21%	21.71%	5.83%
A-Class Shares with sales charge‡	7.11%	23.07%	20.53%	5.31%
C-Class Shares	12.03%	28.25%	20.77%	5.07%
C-Class Shares with CDSC§	11.03%	27.25%	20.77%	5.07%
H-Class Shares**	12.45%	29.22%	21.49%	5.65%
S&P 500 Information Technology Index	13.14%	28.88%	17.44%	10.94%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Semiconductors - 93.8%
Intel Corp.		63,612	$	2,422,345
NVIDIA Corp.		10,582		1,891,744
Broadcom Ltd.		7,382		1,790,430
Texas Instruments, Inc.		19,567		1,753,986
QUALCOMM, Inc.		31,072		1,610,772
Applied Materials, Inc.		26,274		1,368,613
Micron Technology, Inc.*		30,469		1,198,346
Analog Devices, Inc.		11,862		1,022,149
Lam Research Corp.		5,310		982,562
Microchip Technology, Inc.		8,924		801,197
Xilinx, Inc.		10,762		762,272
Skyworks Solutions, Inc.		7,358		749,780
KLA-Tencor Corp.		7,046		746,876
Maxim Integrated Products, Inc.		13,862		661,356
Advanced Micro Devices, Inc.*		50,769		647,305
NXP Semiconductor N.V.*		5,647		638,619
Taiwan Semiconductor Manufacturing Company Ltd. ADR		15,704		589,685
Qorvo, Inc.*		7,436		525,576
Marvell Technology Group Ltd.		29,057		520,120
ON Semiconductor Corp.*		27,974		516,680
Teradyne, Inc.		13,194		492,004
ASML Holding N.V. — Class G		2,852		488,262
Microsemi Corp.*		8,765		451,222
MKS Instruments, Inc.		4,356		411,424
STMicroelectronics N.V. — Class Y		21,100		409,762
Cypress Semiconductor Corp.		26,791		402,401
Silicon Motion Technology Corp. ADR1		8,330		400,090
Mellanox Technologies Ltd.*		8,309		391,769
Cavium, Inc.*		5,853		385,947
Monolithic Power Systems, Inc.		3,551		378,359
Entegris, Inc.*		12,391		357,480
Silicon Laboratories, Inc.*		4,133		330,227
Cirrus Logic, Inc.*		6,005		320,187
Integrated Device Technology, Inc.*		11,827		314,362
MACOM Technology Solutions Holdings, Inc.*		7,012		312,805
Semtech Corp.*		8,069		302,991
Amkor Technology, Inc.*		27,750		292,763
Power Integrations, Inc.		3,639		266,375
Cabot Microelectronics Corp.		3,278		262,011
Ambarella, Inc.*,1		5,342		261,811
Brooks Automation, Inc.		8,390		254,720
MaxLinear, Inc. — Class A*		10,210		242,488
Inphi Corp.*		5,930		235,362
Rambus, Inc.*		16,402		218,967
Synaptics, Inc.*		5,263		206,204
Xperi Corp.		7,616		192,685
Veeco Instruments, Inc.*		8,320		178,048
Impinj, Inc.*,1		4,160		173,098
Total Semiconductors				30,134,237
Electrical Components & Equipment - 1.6%
Advanced Energy Industries, Inc.*		4,042		326,432
SunPower Corp. — Class A*,1		24,135		175,944
Total Electrical Components & Equipment				502,376
Energy-Alternate Sources - 1.2%
First Solar, Inc.*		8,433		386,906
Chemicals - 1.1%
Versum Materials, Inc.		9,470		367,625
Building Materials - 1.0%
Cree, Inc.*		11,368		320,464
Telecommunications - 0.8%
Acacia Communications, Inc.*,1		5,682		267,622
Total Common Stocks
(Cost $25,657,344)				31,979,230
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	86,334		86,334
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		43,167		43,167
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		43,134		43,134
Total Repurchase Agreements
(Cost $172,635)				172,635
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.6%
First American Government Obligations Fund — Class Z, 0.89%4		818,235		818,235
Total Securities Lending Collateral
(Cost $818,235)				818,235
Total Investments - 102.6%
(Cost $26,648,214)			$	32,970,100
Other Assets & Liabilities, net - (2.6)%				(822,642	)
Total Net Assets - 100.0%			$	32,147,458

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
ELECTRONICS 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	31,979,230	$	—	$	—	$	31,979,230
Repurchase Agreement		—		172,635		—		172,635
Securities Lending Collateral		818,235		—		—		818,235
Total Assets	$	32,797,465	$	172,635	$	—	$	32,970,100

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $805,663 of securities loaned (cost $26,475,579)	$	32,797,465
Repurchase agreements, at value (cost $172,635)		172,635
Cash		7,611
Receivables:
Fund shares sold		24,940
Dividends		6,892
Securities lending income		3,665
Interest		10
Total assets		33,013,218
Liabilities:
Payable for:
Return of securities loaned		818,235
Management fees		20,131
Transfer agent and administrative fees		5,921
Fund shares redeemed		5,160
Distribution and service fees		3,021
Portfolio accounting fees		2,368
Miscellaneous		10,924
Total liabilities		865,760
Commitments and contingent liabilities (Note 10)		—
Net assets	$	32,147,458
Net assets consist of:
Paid in capital	$	23,635,742
Undistributed net investment income		18,721
Accumulated net realized gain on investments		2,171,109
Net unrealized appreciation on investments		6,321,886
Net assets	$	32,147,458
Investor Class:
Net assets	$	22,921,013
Capital shares outstanding		185,086
Net asset value per share	$	123.84
A-Class:
Net assets	$	2,346,973
Capital shares outstanding		20,258
Net asset value per share	$	115.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	121.63
C-Class:
Net assets	$	2,115,721
Capital shares outstanding		20,114
Net asset value per share	$	105.19
H-Class:
Net assets	$	4,763,751
Capital shares outstanding		42,225
Net asset value per share	$	112.82

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	383,576
Interest		1,089
Income from securities lending, net		46,294
Total investment income		430,959
Expenses:
Management fees		246,863
Distribution and service fees:
A-Class		5,035
C-Class		11,864
H-Class		18,811
Transfer agent and administrative fees		72,606
Registration fees		41,615
Portfolio accounting fees		29,042
Custodian fees		4,028
Trustees’ fees*		3,218
Line of credit fees		493
Miscellaneous		6,495
Total expenses		440,070
Net investment loss		(9,111	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,997,218
Net realized gain		10,997,218
Net change in unrealized appreciation (depreciation) on:
Investments		(7,674,237	)
Net change in unrealized appreciation (depreciation)		(7,674,237	)
Net realized and unrealized gain		3,322,981
Net increase in net assets resulting from operations	$	3,313,870

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(9,111	)	$	27,832
Net realized gain on investments		10,997,218			1,912,633
Net change in unrealized appreciation (depreciation) on investments		(7,674,237	)		8,829,509
Net increase in net assets resulting from operations		3,313,870			10,769,974
Capital share transactions:
Proceeds from sale of shares
Investor Class		79,265,685			256,339,415
A-Class		3,439,024			11,788,211
C-Class		1,379,847			4,290,342
H-Class		133,818,979			135,688,569
Cost of shares redeemed
Investor Class		(110,414,692	)		(221,085,468	)
A-Class		(5,843,991	)		(9,887,302	)
C-Class		(2,058,663	)		(2,834,033	)
H-Class		(152,572,583	)		(125,204,966	)
Net increase (decrease) from capital share transactions		(52,986,394	)		49,094,768
Net increase (decrease) in net assets		(49,672,524	)		59,864,742
Net assets:
Beginning of period		81,819,982			21,955,240
End of period	$	32,147,458		$	81,819,982
Undistributed net investment income at end of period	$	18,721		$	27,832
Capital share activity:
Shares sold
Investor Class		690,289			2,814,942
A-Class		32,826			134,060
C-Class		14,090			53,496
H-Class		1,309,827			1,726,169
Shares redeemed
Investor Class		(975,405	)		(2,445,893	)
A-Class		(55,354	)		(114,387	)
C-Class		(21,193	)		(36,554	)
H-Class		(1,498,172	)		(1,647,057	)
Net increase (decrease) in shares		(503,092	)		484,776

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	110.00		$	81.23		$	83.54		$	69.82		$	52.11		$	55.09
Income (loss) from investment operations:
Net investment income (loss)b		.05			.15			.02			.29			(.04	)		.22
Net gain (loss) on investments (realized and unrealized)		13.79			28.62			(2.20	)		13.43			17.79			(3.20	)
Total from investment operations		13.84			28.77			(2.18	)		13.72			17.75			(2.98	)
Less distributions from:
Net investment income		—			—			(.13	)		—			(.04	)		—
Total distributions		—			—			(.13	)		—			(.04	)		—
Net asset value, end of period	$	123.84		$	110.00		$	81.23		$	83.54		$	69.82		$	52.11
Total Returnc		12.59	%		35.41	%		(2.61	%)		19.65	%		34.07	%		(5.41	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,921		$	51,722		$	8,217		$	18,144		$	9,655		$	2,942
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.16	%		0.02	%		0.38	%		(0.07	%)		0.45	%
Total expenses		1.39	%		1.38	%		1.34	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		280	%		643	%		769	%		562	%		1,436	%		1,640	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	103.03		$	76.25		$	78.62		$	65.87		$	49.29		$	52.23
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.18	)		(.20	)		(.17	)		(.33	)		.24
Net gain (loss) on investments (realized and unrealized)		12.86			26.96			(2.04	)		12.92			16.95			(3.18	)
Total from investment operations		12.82			26.78			(2.24	)		12.75			16.62			(2.94	)
Less distributions from:
Net investment income		—			—			(.13	)		—			(.04	)		—
Total distributions		—			—			(.13	)		—			(.04	)		—
Net asset value, end of period	$	115.85		$	103.03		$	76.25		$	78.62		$	65.87		$	49.29
Total Returnc		12.45	%		35.11	%		(2.84	%)		19.36	%		33.72	%		(5.63	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,347		$	4,408		$	1,762		$	1,680		$	5,329		$	299
Ratios to average net assets:
Net investment income (loss)		(0.07	%)		(0.19	%)		(0.26	%)		(0.24	%)		(0.59	%)		0.51	%
Total expenses		1.64	%		1.63	%		1.60	%		1.61	%		1.62	%		1.60	%
Portfolio turnover rate		280	%		643	%		769	%		562	%		1,436	%		1,640	%

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	93.90		$	70.02		$	72.76		$	61.40		$	46.32		$	49.50
Income (loss) from investment operations:
Net investment income (loss)b		(.42	)		(.69	)		(.63	)		(.35	)		(.54	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		11.71			24.57			(1.98	)		11.71			15.66			(3.00	)
Total from investment operations		11.29			23.88			(2.61	)		11.36			15.12			(3.18	)
Less distributions from:
Net investment income		—			—			(.13	)		—			(.04	)		—
Total distributions		—			—			(.13	)		—			(.04	)		—
Net asset value, end of period	$	105.19		$	93.90		$	70.02		$	72.76		$	61.40		$	46.32
Total Returnc		12.03	%		34.09	%		(3.58	%)		18.50	%		32.65	%		(6.44	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,116		$	2,556		$	719		$	1,280		$	1,043		$	667
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(0.85	%)		(0.91	%)		(0.55	%)		(1.03	%)		(0.41	%)
Total expenses		2.39	%		2.38	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		280	%		643	%		769	%		562	%		1,436	%		1,640	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	100.33		$	74.32		$	76.66		$	64.40		$	48.33		$	51.40
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.08	)		(.30	)		.06			(.17	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		12.59			26.09			(1.91	)		12.20			16.28			(2.95	)
Total from investment operations		12.49			26.01			(2.21	)		12.26			16.11			(3.07	)
Less distributions from:
Net investment income		—			—			(.13	)		—			(.04	)		—
Total distributions		—			—			(.13	)		—			(.04	)		—
Net asset value, end of period	$	112.82		$	100.33		$	74.32		$	76.66		$	64.40		$	48.33
Total Returnc		12.45	%		34.98	%		(2.88	%)		19.04	%		33.34	%		(5.97	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,764		$	23,134		$	11,257		$	6,285		$	3,577		$	1,288
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.09	%)		(0.40	%)		0.09	%		(0.29	%)		(0.26	%)
Total expenses		1.64	%		1.63	%		1.74	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		280	%		643	%		769	%		562	%		1,436	%		1,640	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	May 5, 1998

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	6.0%
Chevron Corp.	4.8%
Schlumberger Ltd.	3.2%
ConocoPhillips	2.6%
EOG Resources, Inc.	2.4%
Occidental Petroleum Corp.	2.3%
Phillips 66	2.3%
Kinder Morgan, Inc.	2.1%
Halliburton Co.	2.1%
Baker Hughes a GE Co.	2.0%
Top Ten Total	29.8%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(5.73%)	(6.00%)	(4.39%)	(2.77%)
A-Class Shares	(5.84%)	(6.23%)	(4.60%)	(3.01%)
A-Class Shares with sales charge‡	(10.31%)	(10.68%)	(5.53%)	(3.48%)
C-Class Shares	(6.19%)	(6.96%)	(5.35%)	(3.74%)
C-Class Shares with CDSC§	(7.13%)	(7.89%)	(5.35%)	(3.74%)
H-Class Shares**	(5.85%)	(6.28%)	(4.78%)	(3.21%)
S&P 500 Energy Index	0.05%	0.16%	1.02%	1.00%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

48 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Oil & Gas - 71.8%
Exxon Mobil Corp.		27,852	$	2,283,306
Chevron Corp.		15,455		1,815,962
ConocoPhillips		19,651		983,533
EOG Resources, Inc.		9,419		911,194
Occidental Petroleum Corp.		13,482		865,679
Phillips 66		9,363		857,744
Valero Energy Corp.		9,671		743,990
Anadarko Petroleum Corp.		13,851		676,621
Marathon Petroleum Corp.		11,993		672,567
Pioneer Natural Resources Co.		4,156		613,176
Devon Energy Corp.		14,785		542,757
Concho Resources, Inc.*		4,023		529,910
Apache Corp.		11,400		522,120
Hess Corp.		10,219		479,169
Andeavor		4,608		475,315
Continental Resources, Inc.*		12,129		468,301
Noble Energy, Inc.		16,095		456,454
Marathon Oil Corp.		31,698		429,825
Cabot Oil & Gas Corp. — Class A		15,800		422,650
Equities Corp.		6,247		407,554
Petroleo Brasileiro S.A. ADR*		39,548		397,062
Cimarex Energy Co.		3,490		396,708
Transocean Ltd.*,1		36,781		395,764
BP plc ADR		10,243		393,638
Royal Dutch Shell plc — Class A ADR		6,470		391,953
Diamondback Energy, Inc.*		3,802		372,444
Parsley Energy, Inc. — Class A*		13,746		362,070
Encana Corp.		29,997		353,365
Suncor Energy, Inc.		9,591		335,973
Ensco plc — Class A1		54,229		323,747
HollyFrontier Corp.		8,784		315,960
RSP Permian, Inc.*		8,839		305,741
Newfield Exploration Co.*		10,227		303,435
Antero Resources Corp.*		15,042		299,336
Rice Energy, Inc.*		10,341		299,269
Energen Corp.*		5,142		281,165
Helmerich & Payne, Inc.1		5,381		280,404
Range Resources Corp.		14,047		274,900
Centennial Resource Development, Inc. — Class A*,1		15,098		271,311
WPX Energy, Inc.*		23,413		269,250
Patterson-UTI Energy, Inc.		12,282		257,185
Murphy Oil Corp.		9,675		256,968
Canadian Natural Resources Ltd.		7,646		256,065
Chesapeake Energy Corp.*,1		56,288		242,038
Laredo Petroleum, Inc.*		17,506		226,353
Kosmos Energy Ltd.*		27,830		221,527
PDC Energy, Inc.*		4,457		218,527
Matador Resources Co.*		7,953		215,924
Southwestern Energy Co.*		34,755		212,353
PBF Energy, Inc. — Class A1		7,568		208,952
Extraction Oil & Gas, Inc.*		13,212		203,333
Gulfport Energy Corp.*		13,638		195,569
Nabors Industries Ltd.		23,276		187,837
Callon Petroleum Co.*		16,570		186,247
SRC Energy, Inc.*		19,183		185,500
Delek US Holdings, Inc.		6,678		178,503
Oasis Petroleum, Inc.*		19,543		178,232
Whiting Petroleum Corp.*		32,471		177,292
QEP Resources, Inc.*		20,664		177,090
SM Energy Co.1		9,670		171,546
Diamond Offshore Drilling, Inc.*,1		11,426		165,677
Rowan Companies plc — Class A*		12,347		158,659
Statoil ASA ADR		7,830		157,305
Carrizo Oil & Gas, Inc.*		9,157		156,859
Ultra Petroleum Corp.*		17,120		148,430
Halcon Resources Corp.*		18,390		125,052
Atwood Oceanics, Inc.*,1		11,313		106,229
Resolute Energy Corp.*,1		3,541		105,132
California Resources Corp.*,1		8,353		87,372
Sanchez Energy Corp.*,1		16,463		79,352
Total Oil & Gas				27,228,430
Oil & Gas Services - 14.1%
Schlumberger Ltd.		17,241		1,202,732
Halliburton Co.		17,042		784,443
Baker Hughes a GE Co.		20,842		763,234
National Oilwell Varco, Inc.		12,446		444,696
TechnipFMC plc*		11,212		313,039
RPC, Inc.1		11,225		278,268
Core Laboratories N.V.1		2,129		210,132
Oceaneering International, Inc.		7,186		188,776
Keane Group, Inc.*,1		10,768		179,610
McDermott International, Inc.*		23,752		172,677
C&J Energy Services, Inc.*		5,410		162,138
Superior Energy Services, Inc.*		13,887		148,313
Dril-Quip, Inc.*		3,300		145,695
Forum Energy Technologies, Inc.*		8,990		142,941
Oil States International, Inc.*		5,199		131,795
Basic Energy Services, Inc.*,1		5,030		97,079
Total Oil & Gas Services				5,365,568
Pipelines - 9.6%
Kinder Morgan, Inc.		41,760		800,956
Williams Companies, Inc.		20,004		600,320
ONEOK, Inc.		9,807		543,406
Cheniere Energy, Inc.*		8,782		395,541
Targa Resources Corp.		7,985		377,691
Enbridge, Inc.		7,153		299,282
Plains GP Holdings, LP — Class A		13,071		285,863
TransCanada Corp.		3,608		178,343
SemGroup Corp. — Class A		6,190		177,963
Total Pipelines				3,659,365
Coal - 1.6%
CONSOL Energy, Inc.*		14,494		245,528
Peabody Energy Corp.*		6,860		199,009
Arch Coal, Inc. — Class A1		2,204		158,115
Total Coal				602,652

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
ENERGY FUND

	Shares		Value
Mining - 0.9%
US Silica Holdings, Inc.		6,116	$	190,024
Fairmount Santrol Holdings, Inc.*,1		28,142		134,519
Total Mining				324,543
Metal Fabricate & Hardware - 0.5%
Tenaris S.A. ADR		7,195		203,691
Transportation - 0.5%
Golar LNG Ltd.		7,999		180,857
Retail - 0.5%
World Fuel Services Corp.		5,219		176,976
Energy-Alternate Sources - 0.2%
Green Plains, Inc.		3,466		69,840
Total Common Stocks
(Cost $34,484,463)				37,811,922

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	83,489	83,489
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		41,745	41,745
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		41,713	41,713
Total Repurchase Agreements
(Cost $166,947)			166,947

	Shares
SECURITIES LENDING COLLATERAL†,3 - 5.6%
First American Government Obligations Fund — Class Z, 0.89%4		2,136,508		2,136,508
Total Securities Lending Collateral
(Cost $2,136,508)				2,136,508
Total Investments - 105.7%
(Cost $36,787,918)			$	40,115,377
Other Assets & Liabilities, net - (5.7)%				(2,159,987	)
Total Net Assets - 100.0%			$	37,955,390

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
ENERGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	37,811,922	$	—	$	—	$	37,811,922
Repurchase Agreement		—		166,947		—		166,947
Securities Lending Collateral		2,136,508		—		—		2,136,508
Total Assets	$	39,948,430	$	166,947	$	—	$	40,115,377

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $2,067,543 of securities loaned (cost $36,620,971)	$	39,948,430
Repurchase agreements, at value (cost $166,947)		166,947
Cash		271
Receivables:
Fund shares sold		267,828
Dividends		17,254
Securities lending income		1,395
Interest		9
Total assets		40,402,134
Liabilities:
Payable for:
Return of securities loaned		2,136,508
Fund shares redeemed		275,083
Management fees		18,118
Transfer agent and administrative fees		5,329
Distribution and service fees		4,116
Portfolio accounting fees		2,131
Miscellaneous		5,459
Total liabilities		2,446,744
Commitments and contingent liabilities (Note 10)		—
Net assets	$	37,955,390
Net assets consist of:
Paid in capital	$	45,855,263
Undistributed net investment income		437,629
Accumulated net realized loss on investments		(11,664,961	)
Net unrealized appreciation on investments		3,327,459
Net assets	$	37,955,390
Investor Class:
Net assets	$	27,547,418
Capital shares outstanding		371,131
Net asset value per share	$	74.23
A-Class:
Net assets	$	4,064,711
Capital shares outstanding		58,451
Net asset value per share	$	69.54
Maximum offering price per share (Net asset value divided by 95.25%)	$	73.01
C-Class:
Net assets	$	3,791,284
Capital shares outstanding		61,150
Net asset value per share	$	62.00
H-Class:
Net assets	$	2,551,977
Capital shares outstanding		37,819
Net asset value per share	$	67.48

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $4,110)	$	449,796
Interest		568
Income from securities lending, net		5,589
Total investment income		455,953
Expenses:
Management fees		126,192
Distribution and service fees:
A-Class		4,933
C-Class		18,251
H-Class		5,487
Transfer agent and administrative fees		37,115
Registration fees		15,786
Portfolio accounting fees		14,846
Trustees’ fees*		2,128
Custodian fees		2,037
Line of credit fees		39
Miscellaneous		8,417
Total expenses		235,231
Net investment income		220,722
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,893,433	)
Net realized loss		(2,893,433	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,393,712	)
Net change in unrealized appreciation (depreciation)		(1,393,712	)
Net realized and unrealized loss		(4,287,145	)
Net decrease in net assets resulting from operations	$	(4,066,423	)

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	220,722		$	216,907
Net realized gain (loss) on investments		(2,893,433	)		16,836,670
Net change in unrealized appreciation (depreciation) on investments		(1,393,712	)		(7,539,822	)
Net increase (decrease) in net assets resulting from operations		(4,066,423	)		9,513,755
Distributions to shareholders from:
Net investment income
Investor Class		—			(351,546	)
A-Class		—			(49,747	)
C-Class		—			(41,247	)
H-Class		—			(34,258	)
Total distributions to shareholders		—			(476,798	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		54,718,730			493,753,144
A-Class		2,273,179			16,971,738
C-Class		964,116			3,666,194
H-Class		142,441,844			171,920,788
Distributions reinvested
Investor Class		—			348,105
A-Class		—			48,237
C-Class		—			40,264
H-Class		—			34,251
Cost of shares redeemed
Investor Class		(49,819,261	)		(498,261,928	)
A-Class		(2,817,124	)		(19,236,171	)
C-Class		(1,240,143	)		(4,323,277	)
H-Class		(140,651,726	)		(173,329,752	)
Net increase (decrease) from capital share transactions		5,869,615			(8,368,407	)
Net increase in net assets		1,803,192			668,550
Net assets:
Beginning of period		36,152,198			35,483,648
End of period	$	37,955,390		$	36,152,198
Undistributed net investment income at end of period	$	437,629		$	216,907
Capital share activity:
Shares sold
Investor Class		765,198			6,399,342	*
A-Class		33,266			236,733	*
C-Class		16,437			56,272	*
H-Class		2,190,820			2,421,978	*
Shares issued from reinvestment of distributions
Investor Class		—			4,391	*
A-Class		—			648	*
C-Class		—			603	*
H-Class		—			474	*
Shares redeemed
Investor Class		(702,499	)		(6,428,844	)*
A-Class		(42,246	)		(270,062	)*
C-Class		(20,820	)		(65,587	)*
H-Class		(2,188,667	)		(2,432,686	)*
Net increase (decrease) in shares		51,489			(76,738	)*

* Capital share activity for the period presented through March 31, 2017, has been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 9.

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

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, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	78.73		$	66.61		$	92.98		$	118.79		$	104.48		$	98.30
Income (loss) from investment operations:
Net investment income (loss)b		.53			.40			1.12			.84			.60			.48
Net gain (loss) on investments (realized and unrealized)		(5.03	)		12.24			(26.37	)		(26.21	)		13.71			7.58
Total from investment operations		(4.50	)		12.64			(25.25	)		(25.37	)		14.31			8.06
Less distributions from:
Net investment income		—			(.52	)		(.52	)		(.44	)		—			(.28	)
Net realized gains		—			—			(.60	)		—			—			—
Return of capital		—			—			—			—			—			(1.60	)
Total distributions		—			(.52	)		(1.12	)		(.44	)		—			(1.88	)
Net asset value, end of period	$	74.23		$	78.73		$	66.61		$	92.98		$	118.79		$	104.48
Total Returnc		(5.73	%)		18.99	%		(27.30	%)		(21.42	%)		13.71	%		8.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,547		$	24,284		$	22,216		$	28,123		$	35,546		$	49,160
Ratios to average net assets:
Net investment income (loss)		1.49	%		0.52	%		1.38	%		0.72	%		0.55	%		0.52	%
Total expenses		1.39	%		1.37	%		1.35	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		604	%		996	%		595	%		463	%		231	%		248	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	73.86		$	62.67		$	87.76		$	112.30		$	99.06		$	93.54
Income (loss) from investment operations:
Net investment income (loss)b		.47			.23			.76			.48			.32			.32
Net gain (loss) on investments (realized and unrealized)		(4.79	)		11.48			(24.73	)		(24.58	)		12.92			7.08
Total from investment operations		(4.32	)		11.71			(23.97	)		(24.10	)		13.24			7.40
Less distributions from:
Net investment income		—			(.52	)		(.52	)		(.44	)		—			(.28	)
Net realized gains		—			—			(.60	)		—			—			—
Return of capital		—			—			—			—			—			(1.60	)
Total distributions		—			(.52	)		(1.12	)		(.44	)		—			(1.88	)
Net asset value, end of period	$	69.54		$	73.86		$	62.67		$	87.76		$	112.30		$	99.06
Total Returnc		(5.84	%)		18.65	%		(27.46	%)		(21.49	%)		13.37	%		8.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,065		$	4,980		$	6,274		$	4,671		$	6,624		$	5,586
Ratios to average net assets:
Net investment income (loss)		1.40	%		0.31	%		1.02	%		0.43	%		0.30	%		0.38	%
Total expenses		1.64	%		1.62	%		1.60	%		1.60	%		1.62	%		1.60	%
Portfolio turnover rate		604	%		996	%		595	%		463	%		231	%		248	%

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

ENERGY 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	66.10		$	56.55		$	79.93		$	103.21		$	91.72		$	87.40
Income (loss) from investment operations:
Net investment income (loss)b		.18			(.29	)		.08			(.02	)		(.48	)		(.36	)
Net gain (loss) on investments (realized and unrealized)		(4.28	)		10.36			(22.34	)		(22.64	)		11.97			6.56
Total from investment operations		(4.10	)		10.07			(22.26	)		(22.84	)		11.49			6.20
Less distributions from:
Net investment income		—			(.52	)		(.52	)		(.44	)		—			(.28	)
Net realized gains		—			—			(.60	)		—			—			—
Return of capital		—			—			—			—			—			(1.60	)
Total distributions		—			(.52	)		(1.12	)		(.44	)		—			(1.88	)
Net asset value, end of period	$	62.00		$	66.10		$	56.55		$	79.93		$	103.21		$	91.72
Total Returnc		(6.19	%)		17.76	%		(28.01	%)		(22.18	%)		12.52	%		7.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,791		$	4		$	4,198		$	6,754		$	8,357		$	9,693
Ratios to average net assets:
Net investment income (loss)		0.62	%		(0.45	%)		0.15	%		(0.20	%)		(0.52	%)		(0.45	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		604	%		996	%		595	%		463	%		231	%		248	%

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

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.

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d,e			Year Ended March 31, 2015d,e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e
Per Share Data
Net asset value, beginning of period	$	71.68		$	60.90		$	85.36		$	109.61		$	96.92		$	91.78
Income (loss) from investment operations:
Net investment income (loss)b		.72			.02			.40			.28			(.08	)		.04
Net gain (loss) on investments (realized and unrealized)		(4.92	)		11.28			(23.74	)		(24.09	)		12.77			6.98
Total from investment operations		(4.20	)		11.30			(23.34	)		(23.81	)		12.69			7.02
Less distributions from:
Net investment income		—			(.52	)		(.52	)		(.44	)		—			(.28	)
Net realized gains		—			—			(.60	)		—			—			—
Return of capital		—			—			—			—			—			(1.60	)
Total distributions		—			(.52	)		(1.12	)		(.44	)		—			(1.88	)
Net asset value, end of period	$	67.48		$	71.68		$	60.90		$	85.36		$	109.61		$	96.92
Total Returnc		(5.85	%)		18.57	%		(27.53	%)		(21.76	%)		13.08	%		7.92	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,552		$	2,556		$	2,795		$	6,452		$	4,764		$	5,272
Ratios to average net assets:
Net investment income (loss)		2.27	%		0.03	%		0.55	%		0.27	%		(0.09	%)		0.06	%
Total expenses		1.64	%		1.63	%		1.70	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		604	%		996	%		595	%		463	%		231	%		248	%

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 9.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	April 2, 1998

Ten Largest Holdings (% of Total Net Assets)
Schlumberger Ltd.	12.9%
Halliburton Co.	10.0%
Baker Hughes a GE Co.	9.7%
National Oilwell Varco, Inc.	5.7%
Transocean Ltd.	4.0%
Helmerich & Payne, Inc.	3.6%
RPC, Inc.	3.5%
Ensco plc — Class A	3.4%
Patterson-UTI Energy, Inc.	3.3%
TechnipFMC plc	3.2%
Top Ten Total	59.3%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(14.52%)	(9.40%)	(10.59%)	(7.38%)
A-Class Shares	(14.61%)	(9.55%)	(10.80%)	(7.61%)
A-Class Shares with sales charge‡	(18.68%)	(13.84%)	(11.67%)	(8.06%)
C-Class Shares	(14.94%)	(10.26%)	(11.48%)	(8.30%)
C-Class Shares with CDSC§	(15.79%)	(11.15%)	(11.48%)	(8.30%)
H-Class Shares**	(14.69%)	(9.66%)	(10.98%)	(7.82%)
S&P 500 Energy Index	0.05%	0.16%	1.02%	1.00%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 57

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Oil & Gas Services - 69.2%
Schlumberger Ltd.		35,157	$	2,452,553
Halliburton Co.		41,340		1,902,880
Baker Hughes a GE Co.		50,556		1,851,361
National Oilwell Varco, Inc.		30,176		1,078,188
RPC, Inc.1		27,229		675,007
TechnipFMC plc*		22,174		619,098
Core Laboratories N.V.1		4,644		458,363
Oceaneering International, Inc.		17,427		457,807
Keane Group, Inc.*,1		26,135		435,932
McDermott International, Inc.*		57,616		418,868
C&J Energy Services, Inc.*		13,392		401,358
Dril-Quip, Inc.*		8,183		361,279
Superior Energy Services, Inc.*		33,678		359,681
Forum Energy Technologies, Inc.*		21,814		346,843
ProPetro Holding Corp.*		24,040		344,974
Oil States International, Inc.*		12,876		326,407
Helix Energy Solutions Group, Inc.*		39,867		294,617
Basic Energy Services, Inc.*,1		12,457		240,420
Bristow Group, Inc.1		17,625		164,794
Total Oil & Gas Services				13,190,430
Oil & Gas - 23.9%
Transocean Ltd.*,1		71,652		770,975
Helmerich & Payne, Inc.1		13,318		694,001
Ensco plc — Class A1		108,335		646,760
Patterson-UTI Energy, Inc.		29,798		623,970
Nabors Industries Ltd.		56,459		455,624
Diamond Offshore Drilling, Inc.*,1		27,706		401,737
Rowan Companies plc — Class A*		29,955		384,922
Unit Corp.*		15,451		317,982
Atwood Oceanics, Inc.*,1		27,438		257,643
Total Oil & Gas				4,553,614
Mining - 4.1%
US Silica Holdings, Inc.		14,819		460,427
Fairmount Santrol Holdings, Inc.*,1		68,253		326,249
Total Mining				786,676
Metal Fabricate & Hardware - 2.2%
Tenaris S.A. ADR		15,026		425,386
Total Common Stocks
(Cost $16,381,483)				18,956,106

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.3%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		30,332		30,332
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		15,166		15,166
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		15,154		15,154
Total Repurchase Agreements
(Cost $60,652)				60,652
	Shares
SECURITIES LENDING COLLATERAL†,3 - 16.9%
First American Government Obligations Fund — Class Z, 0.89%4		3,214,384		3,214,384
Total Securities Lending Collateral
(Cost $3,214,384)				3,214,384
Total Investments - 116.6%
(Cost $19,656,519)			$	22,231,142
Other Assets & Liabilities, net - (16.6)%				(3,162,316	)
Total Net Assets - 100.0%			$	19,068,826

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
ENERGY SERVICES 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	18,956,106	$	—	$	—	$	18,956,106
Repurchase Agreement		—		60,652		—		60,652
Securities Lending Collateral		3,214,384		—		—		3,214,384
Total Assets	$	22,170,490	$	60,652	$	—	$	22,231,142

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $3,143,621 of securities loaned (cost $19,595,867)	$	22,170,490
Repurchase agreements, at value (cost $60,652)		60,652
Receivables:
Fund shares sold		176,239
Dividends		18,321
Securities lending income		2,237
Interest		3
Total assets		22,427,942
Liabilities:
Payable for:
Return of securities loaned		3,214,384
Fund shares redeemed		128,576
Management fees		9,516
Transfer agent and administrative fees		2,799
Distribution and service fees		2,267
Portfolio accounting fees		1,120
Miscellaneous		454
Total liabilities		3,359,116
Commitments and contingent liabilities (Note 10)		—
Net assets	$	19,068,826
Net assets consist of:
Paid in capital	$	40,173,319
Undistributed net investment income		267,489
Accumulated net realized loss on investments		(23,946,605	)
Net unrealized appreciation on investments		2,574,623
Net assets	$	19,068,826
Investor Class:
Net assets	$	12,834,817
Capital shares outstanding		465,670
Net asset value per share	$	27.56
A-Class:
Net assets	$	1,016,061
Capital shares outstanding		39,157
Net asset value per share	$	25.95
Maximum offering price per share (Net asset value divided by 95.25%)	$	27.24
C-Class:
Net assets	$	2,439,000
Capital shares outstanding		104,485
Net asset value per share	$	23.34
H-Class:
Net assets	$	2,778,948
Capital shares outstanding		110,517
Net asset value per share	$	25.14

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $438)	$	411,854
Interest		472
Income from securities lending, net		7,220
Total investment income		419,546
Expenses:
Management fees		70,285
Distribution and service fees:
A-Class		1,272
C-Class		12,180
H-Class		4,057
Transfer agent and administrative fees		20,672
Registration fees		19,357
Portfolio accounting fees		8,269
Custodian fees		1,244
Trustees’ fees*		1,199
Line of credit fees		112
Miscellaneous		(5,982	)
Total expenses		132,665
Net investment income		286,881
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,510,955	)
Net realized loss		(4,510,955	)
Net change in unrealized appreciation (depreciation) on:
Investments		910,664
Net change in unrealized appreciation (depreciation)		910,664
Net realized and unrealized loss		(3,600,291	)
Net decrease in net assets resulting from operations	$	(3,313,410	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	286,881		$	(57,835	)
Net realized gain (loss) on investments		(4,510,955	)		2,496,264
Net change in unrealized appreciation (depreciation) on investments		910,664			(5,748,250	)
Net decrease in net assets resulting from operations		(3,313,410	)		(3,309,821	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(72,838	)
A-Class		—			(10,527	)
C-Class		—			(24,559	)
H-Class		—			(17,351	)
Total distributions to shareholders		—			(125,275	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		58,686,183			263,468,153
A-Class		1,089,368			8,139,379
C-Class		673,390			2,698,788
H-Class		123,542,632			250,508,623
Distributions reinvested
Investor Class		—			70,070
A-Class		—			10,195
C-Class		—			24,152
H-Class		—			17,345
Cost of shares redeemed
Investor Class		(55,693,016	)		(260,388,533	)
A-Class		(1,188,304	)		(9,647,003	)
C-Class		(1,027,394	)		(2,189,013	)
H-Class		(124,204,266	)		(245,387,042	)
Net increase from capital share transactions		1,878,593			7,325,114
Net increase (decrease) in net assets		(1,434,817	)		3,890,018
Net assets:
Beginning of period		20,503,643			16,613,625
End of period	$	19,068,826		$	20,503,643
Undistributed net investment income/Accumulated net investment loss at end of period	$	267,489		$	(19,392	)
Capital share activity:
Shares sold
Investor Class		2,205,000			8,714,449
A-Class		41,378			268,911
C-Class		29,741			95,397
H-Class		5,233,309			8,533,238
Shares issued from reinvestment of distributions
Investor Class		—			2,229
A-Class		—			344
C-Class		—			899
H-Class		—			603
Shares redeemed
Investor Class		(2,104,005	)		(8,687,119	)
A-Class		(44,845	)		(332,719	)
C-Class		(43,973	)		(81,589	)
H-Class		(5,265,069	)		(8,456,785	)
Net increase in shares		51,536			57,858

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	32.24		$	28.41		$	39.36		$	62.43		$	54.43		$	50.87
Income (loss) from investment operations:
Net investment income (loss)b		.54			.01			.29			.48			.02			(.05	)
Net gain (loss) on investments (realized and unrealized)		(5.22	)		4.07			(10.90	)		(23.55	)		7.98			3.61
Total from investment operations		(4.68	)		4.08			(10.61	)		(23.07	)		8.00			3.56
Less distributions from:
Net investment income		—			(.25	)		(.34	)		—			—			—
Total distributions		—			(.25	)		(.34	)		—			—			—
Net asset value, end of period	$	27.56		$	32.24		$	28.41		$	39.36		$	62.43		$	54.43
Total Returnc		(14.52	%)		14.38	%		(27.05	%)		(36.95	%)		14.70	%		7.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,835		$	11,757		$	9,521		$	16,144		$	33,244		$	26,097
Ratios to average net assets:
Net investment income (loss)		4.05	%		0.03	%		0.83	%		0.86	%		0.03	%		(0.10	%)
Total expenses		1.39	%		1.38	%		1.35	%		1.36	%		1.37	%		1.35	%
Portfolio turnover rate		960	%		1,830	%		1,241	%		494	%		350	%		275	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	30.39		$	26.86		$	37.32		$	59.34		$	51.86		$	48.59
Income (loss) from investment operations:
Net investment income (loss)b		.58			(.14	)		.24			.25			(.13	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		(5.02	)		3.92			(10.36	)		(22.27	)		7.61			3.44
Total from investment operations		(4.44	)		3.78			(10.12	)		(22.02	)		7.48			3.27
Less distributions from:
Net investment income		—			(.25	)		(.34	)		—			—			—
Total distributions		—			(.25	)		(.34	)		—			—			—
Net asset value, end of period	$	25.95		$	30.39		$	26.86		$	37.32		$	59.34		$	51.86
Total Returnc		(14.61	%)		14.09	%		(27.22	%)		(37.11	%)		14.42	%		6.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,016		$	1,295		$	2,849		$	3,545		$	7,557		$	5,535
Ratios to average net assets:
Net investment income (loss)		4.60	%		(0.47	%)		0.73	%		0.47	%		(0.23	%)		(0.37	%)
Total expenses		1.64	%		1.62	%		1.59	%		1.60	%		1.62	%		1.60	%
Portfolio turnover rate		960	%		1,830	%		1,241	%		494	%		350	%		275	%

62 | 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	27.44		$	24.46		$	34.28		$	54.92		$	48.37		$	45.66
Income (loss) from investment operations:
Net investment income (loss)b		.45			(.33	)		(.05	)		(.12	)		(.50	)		(.49	)
Net gain (loss) on investments (realized and unrealized)		(4.55	)		3.56			(9.43	)		(20.52	)		7.05			3.20
Total from investment operations		(4.10	)		3.23			(9.48	)		(20.64	)		6.55			2.71
Less distributions from:
Net investment income		—			(.25	)		(.34	)		—			—			—
Total distributions		—			(.25	)		(.34	)		—			—			—
Net asset value, end of period	$	23.34		$	27.44		$	24.46		$	34.28		$	54.92		$	48.37
Total Returnc		(14.94	%)		13.22	%		(27.76	%)		(37.58	%)		13.54	%		5.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,439		$	3,258		$	2,544		$	3,889		$	8,616		$	8,654
Ratios to average net assets:
Net investment income (loss)		3.91	%		(1.23	%)		(0.16	%)		(0.24	%)		(0.97	%)		(1.11	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.36	%		2.37	%		2.35	%
Portfolio turnover rate		960	%		1,830	%		1,241	%		494	%		350	%		275	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	29.47		$	26.07		$	36.29		$	57.89		$	50.72		$	47.64
Income (loss) from investment operations:
Net investment income (loss)b		.13			(.08	)		.05			.07			(.27	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		(4.46	)		3.73			(9.93	)		(21.67	)		7.44			3.33
Total from investment operations		(4.33	)		3.65			(9.88	)		(21.60	)		7.17			3.08
Less distributions from:
Net investment income		—			(.25	)		(.34	)		—			—			—
Total distributions		—			(.25	)		(.34	)		—			—			—
Net asset value, end of period	$	25.14		$	29.47		$	26.07		$	36.29		$	57.89		$	50.72
Total Returnc		(14.69	%)		14.02	%		(27.31	%)		(37.33	%)		14.14	%		6.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,779		$	4,193		$	1,700		$	1,814		$	4,933		$	9,685
Ratios to average net assets:
Net investment income (loss)		1.03	%		(0.29	%)		0.15	%		0.13	%		(0.50	%)		(0.54	%)
Total expenses		1.64	%		1.62	%		1.67	%		1.86	%		1.87	%		1.85	%
Portfolio turnover rate		960	%		1,830	%		1,241	%		494	%		350	%		275	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	April 6, 1998

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	2.4%
JPMorgan Chase & Co.	2.1%
Wells Fargo & Co.	1.9%
Bank of America Corp.	1.6%
Citigroup, Inc.	1.5%
Goldman Sachs Group, Inc.	1.1%
U.S. Bancorp	1.1%
Morgan Stanley	1.1%
BlackRock, Inc. — Class A	1.0%
American Express Co.	1.0%
Top Ten Total	14.8%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	7.31%	21.80%	12.96%	1.46%
A-Class Shares	7.16%	21.48%	12.68%	1.22%
A-Class Shares with sales charge‡	2.08%	15.71%	11.59%	0.73%
C-Class Shares	6.77%	20.59%	11.85%	0.48%
C-Class Shares with CDSC§	5.77%	19.59%	11.85%	0.48%
H-Class Shares**	7.19%	21.52%	12.54%	1.00%
S&P 500 Financials Index	9.71%	36.21%	17.62%	1.34%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

64 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 98.9%
Banks - 30.3%
JPMorgan Chase & Co.		11,478	$	1,096,263
Wells Fargo & Co.		18,189		1,003,122
Bank of America Corp.		33,587		851,094
Citigroup, Inc.		10,390		755,768
Goldman Sachs Group, Inc.		2,435		577,557
U.S. Bancorp		10,503		562,856
Morgan Stanley		11,490		553,473
PNC Financial Services Group, Inc.		3,515		473,717
Bank of New York Mellon Corp.		8,323		441,285
Capital One Financial Corp.		4,610		390,283
BB&T Corp.		8,006		375,802
State Street Corp.		3,661		349,772
SunTrust Banks, Inc.		5,507		329,153
M&T Bank Corp.		1,940		312,418
Northern Trust Corp.		3,033		278,824
Fifth Third Bancorp		9,815		274,624
Royal Bank of Canada		3,450		266,858
Citizens Financial Group, Inc.		6,875		260,356
Toronto-Dominion Bank		4,587		258,110
HSBC Holdings plc ADR		5,213		257,574
Regions Financial Corp.		16,331		248,721
KeyCorp		13,200		248,424
First Republic Bank		2,367		247,257
Banco Bradesco S.A. ADR		22,277		246,606
Canadian Imperial Bank of Commerce		2,758		241,380
Deutsche Bank AG		13,757		237,721
ICICI Bank Ltd. ADR		26,739		228,886
Credit Suisse Group AG ADR*		14,421		227,852
Comerica, Inc.		2,980		227,255
Huntington Bancshares, Inc.		15,873		221,587
SVB Financial Group*		1,059		198,128
Zions Bancorporation		4,076		192,306
East West Bancorp, Inc.		2,929		175,096
Signature Bank*		1,293		165,556
CIT Group, Inc.		3,135		153,772
Cullen/Frost Bankers, Inc.		1,619		153,675
PacWest Bancorp		2,962		149,611
Commerce Bancshares, Inc.		2,540		146,736
Bank of the Ozarks		3,003		144,294
Synovus Financial Corp.		3,026		139,378
Webster Financial Corp.		2,574		135,264
Pinnacle Financial Partners, Inc.		1,970		131,892
FNB Corp.		9,360		131,321
Prosperity Bancshares, Inc.		1,994		131,066
Wintrust Financial Corp.		1,660		129,995
IBERIABANK Corp.		1,577		129,551
Texas Capital Bancshares, Inc.*		1,509		129,472
First Horizon National Corp.		6,641		127,175
Hancock Holding Co.		2,600		125,970
Umpqua Holdings Corp.		6,270		122,328
UMB Financial Corp.		1,627		121,195
Home BancShares, Inc.		4,770		120,299
United Bankshares, Inc.		3,230		119,995
Chemical Financial Corp.		2,190		114,449
MB Financial, Inc.		2,490		112,100
Fulton Financial Corp.		5,848		109,650
Cathay General Bancorp		2,672		107,414
Total Banks				15,762,286
REITs - 29.9%
American Tower Corp. — Class A		3,172		433,548
Simon Property Group, Inc.1		2,465		396,890
Crown Castle International Corp.		3,668		366,727
Public Storage		1,636		350,088
Equinix, Inc.		775		345,883
Prologis, Inc.		5,096		323,392
AvalonBay Communities, Inc.		1,699		303,136
Weyerhaeuser Co.		8,573		291,739
Equity Residential		4,323		285,015
Welltower, Inc.		4,038		283,791
Ventas, Inc.		4,110		267,684
Digital Realty Trust, Inc.		2,161		255,711
Essex Property Trust, Inc.		984		249,966
Boston Properties, Inc.		2,030		249,446
SBA Communications Corp.*		1,666		239,987
GGP, Inc.		11,504		238,938
Vornado Realty Trust		2,922		224,643
Realty Income Corp.		3,886		222,240
Annaly Capital Management, Inc.		17,432		212,496
Host Hotels & Resorts, Inc.		11,452		211,747
HCP, Inc.		7,277		202,519
Alexandria Real Estate Equities, Inc.		1,670		198,680
Mid-America Apartment Communities, Inc.		1,855		198,262
SL Green Realty Corp.		1,941		196,662
Extra Space Storage, Inc.		2,313		184,855
Regency Centers Corp.		2,959		183,576
Iron Mountain, Inc.		4,718		183,530
Duke Realty Corp.		6,346		182,892
UDR, Inc.		4,763		181,137
Federal Realty Investment Trust		1,432		177,869
AGNC Investment Corp.		7,659		166,047
Kimco Realty Corp.		8,261		161,503
Gaming and Leisure Properties, Inc.		4,349		160,435
Camden Property Trust		1,746		159,672
Macerich Co.		2,872		157,874
Invitation Homes, Inc.1		6,940		157,191
Lamar Advertising Co. — Class A		2,274		155,837
Kilroy Realty Corp.		2,189		155,682
Sun Communities, Inc.		1,800		154,224
Equity LifeStyle Properties, Inc.		1,799		153,059
VEREIT, Inc.		18,434		152,818
Colony NorthStar, Inc. — Class A		11,970		150,343
Apartment Investment & Management Co. — Class A		3,427		150,308
CoreSite Realty Corp.		1,320		147,708
Douglas Emmett, Inc.		3,731		147,076
Forest City Realty Trust, Inc. — Class A		5,761		146,963
American Homes 4 Rent — Class A		6,626		143,850
Omega Healthcare Investors, Inc.1		4,481		142,989
Starwood Property Trust, Inc.		6,452		140,137
National Retail Properties, Inc.		3,357		139,853

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
FINANCIAL SERVICES FUND

	Shares		Value
Liberty Property Trust		3,393	$	139,317
Healthcare Trust of America, Inc. — Class A		4,640		138,272
Park Hotels & Resorts, Inc.		5,010		138,076
American Campus Communities, Inc.		3,073		135,673
Hudson Pacific Properties, Inc.		4,005		134,288
Highwoods Properties, Inc.		2,562		133,455
Brixmor Property Group, Inc.		7,060		132,728
New Residential Investment Corp.		7,908		132,301
DCT Industrial Trust, Inc.		2,271		131,536
CyrusOne, Inc.		2,201		129,705
EPR Properties		1,836		128,043
Starwood Waypoint Homes		3,500		127,295
Medical Properties Trust, Inc.		9,541		125,273
Hospitality Properties Trust		4,320		123,077
Senior Housing Properties Trust		6,249		122,168
STORE Capital Corp.		4,906		122,012
CubeSmart		4,646		120,610
Gramercy Property Trust		3,968		120,032
Cousins Properties, Inc.		12,437		116,162
Life Storage, Inc.		1,409		115,270
Weingarten Realty Investors		3,597		114,169
Spirit Realty Capital, Inc.		13,248		113,535
Equity Commonwealth*		3,720		113,088
Healthcare Realty Trust, Inc.		3,461		111,929
Sunstone Hotel Investors, Inc.		6,877		110,513
Corporate Office Properties Trust		3,221		105,745
GEO Group, Inc.		3,910		105,179
Brandywine Realty Trust		5,930		103,716
CoreCivic, Inc.		3,874		103,707
LaSalle Hotel Properties		3,538		102,673
Taubman Centers, Inc.		2,053		102,034
DDR Corp.		11,071		101,410
Sabra Health Care REIT, Inc.		4,600		100,924
Physicians Realty Trust		5,670		100,529
Pebblebrook Hotel Trust1		2,561		92,555
RLJ Lodging Trust		4,190		92,180
Tanger Factory Outlet Centers, Inc.		3,570		87,179
Education Realty Trust, Inc.		2,426		87,166
DiamondRock Hospitality Co.		7,838		85,826
Uniti Group, Inc.		5,832		85,497
Retail Opportunity Investments Corp.		4,362		82,922
Government Properties Income Trust		4,112		77,182
Washington Prime Group, Inc.		8,743		72,829
CBL & Associates Properties, Inc.1		8,050		67,540
Total REITs				15,571,938
Insurance - 19.7%
Berkshire Hathaway, Inc. — Class B*		6,857		1,257,024
MetLife, Inc.		8,516		442,405
American International Group, Inc.		7,174		440,411
Prudential Financial, Inc.		3,737		397,318
Hartford Financial Services Group, Inc.		6,818		377,922
Marsh & McLennan Companies, Inc.		4,488		376,139
Travelers Companies, Inc.		2,901		355,431
Chubb Ltd.		2,385		339,982
Willis Towers Watson plc		2,183		336,684
Allstate Corp.		3,661		336,483
Aflac, Inc.		4,006		326,048
Progressive Corp.		6,708		324,801
Everest Re Group Ltd.		1,269		289,827
Arch Capital Group Ltd.*		2,941		289,689
Aon plc		1,971		287,963
Markel Corp.*		265		283,015
XL Group Ltd.		6,727		265,380
Principal Financial Group, Inc.		4,012		258,132
Lincoln National Corp.		3,203		235,356
Loews Corp.		4,910		234,993
Cincinnati Financial Corp.		2,717		208,041
Unum Group		3,972		203,088
Reinsurance Group of America, Inc. — Class A		1,370		191,156
American Financial Group, Inc.		1,846		190,969
Arthur J Gallagher & Co.		3,100		190,805
Athene Holding Ltd. — Class A*		3,420		184,133
Torchmark Corp.		2,296		183,887
WR Berkley Corp.		2,562		170,988
Voya Financial, Inc.		4,057		161,834
Brown & Brown, Inc.		3,162		152,377
Assurant, Inc.		1,482		141,561
First American Financial Corp.		2,800		139,916
Old Republic International Corp.		6,712		132,159
MGIC Investment Corp.*		10,420		130,563
Radian Group, Inc.		6,594		123,242
Primerica, Inc.		1,480		120,694
AmTrust Financial Services, Inc.		7,243		97,491
Selective Insurance Group, Inc.		1,160		62,466
Total Insurance				10,240,373
Diversified Financial Services - 13.7%
BlackRock, Inc. — Class A		1,196		534,721
American Express Co.		5,865		530,548
Charles Schwab Corp.		10,538		460,932
CME Group, Inc. — Class A		2,937		398,492
Intercontinental Exchange, Inc.		5,468		375,652
Synchrony Financial		9,878		306,712
TD Ameritrade Holding Corp.		6,216		303,341
Discover Financial Services		4,639		299,123
Franklin Resources, Inc.		6,699		298,172
T. Rowe Price Group, Inc.		3,092		280,290
Interactive Brokers Group, Inc. — Class A		5,760		259,430
Invesco Ltd.		6,413		224,712
Nasdaq, Inc.		2,779		215,567
Raymond James Financial, Inc.		2,453		206,861
E*TRADE Financial Corp.*		4,730		206,275
Ally Financial, Inc.		8,253		200,218
Affiliated Managers Group, Inc.		1,029		195,335
CBOE Holdings, Inc.		1,787		192,335
SEI Investments Co.		3,062		186,966
Ameriprise Financial, Inc.		1,095		162,618
Santander Consumer USA Holdings, Inc.*,1		9,290		142,787
Eaton Vance Corp.		2,834		139,915
Credit Acceptance Corp.*		490		137,283
LPL Financial Holdings, Inc.		2,570		132,535

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
FINANCIAL SERVICES FUND

	Shares		Value
SLM Corp.*		11,447	$	131,297
BGC Partners, Inc. — Class A		8,399		121,534
Navient Corp.		8,064		121,121
Legg Mason, Inc.		2,907		114,274
Federated Investors, Inc. — Class B		3,479		103,326
LendingClub Corp.*		14,048		85,552
WisdomTree Investments, Inc.1		7,113		72,410
Total Diversified Financial Services				7,140,334
Commercial Services - 1.8%
S&P Global, Inc.		2,317		362,171
Moody’s Corp.		2,127		296,100
MarketAxess Holdings, Inc.		940		173,439
LendingTree, Inc.*,1		474		115,869
Total Commercial Services				947,579
Savings & Loans - 1.2%
People’s United Financial, Inc.		8,347		151,415
New York Community Bancorp, Inc.		11,545		148,815
Investors Bancorp, Inc.		8,806		120,114
Washington Federal, Inc.		3,023		101,724
BofI Holding, Inc.*,1		2,835		80,712
Total Savings & Loans				602,780
Real Estate - 0.9%
CBRE Group, Inc. — Class A*		5,444		206,218
Jones Lang LaSalle, Inc.		1,183		146,101
Realogy Holdings Corp.		3,658		120,531
Total Real Estate				472,850
Software - 0.4%
MSCI, Inc. — Class A		1,720		201,068
Holding Companies-Diversified - 0.4%
Leucadia National Corp.		7,358		185,790
Media - 0.3%
FactSet Research Systems, Inc.		957		172,365
Investment Companies - 0.3%
Ares Capital Corp.		9,583		157,065
Total Common Stocks
(Cost $41,913,310)				51,454,428

PREFERRED STOCKS†† - 0.5%
Banks - 0.5%
Itau Unibanco Holding S.A. ADR		19,348		265,068
Total Preferred Stocks
(Cost $173,948)				265,068
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	179,064		179,064
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		89,532		89,532
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		89,464		89,464
Total Repurchase Agreements
(Cost $358,060)				358,060
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.4%
First American Government Obligations Fund — Class Z, 0.89%4		747,201		747,201
Total Securities Lending Collateral
(Cost $747,201)				747,201
Total Investments - 101.5%
(Cost $43,192,519)			$	52,824,757
Other Assets & Liabilities, net - (1.5)%				(762,299	)
Total Net Assets - 100.0%			$	52,062,458

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
FINANCIAL SERVICES 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	51,454,428	$	—	$	—	$	51,454,428
Preferred Stocks		265,068		—		—		265,068
Repurchase Agreements		—		358,060		—		358,060
Securities Lending Collateral		747,201		—		—		747,201
Total Assets	$	52,466,697	$	358,060	$	—	$	52,824,757

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $731,644 of securities loaned (cost $42,834,459)	$	52,466,697
Repurchase agreements, at value (cost $358,060)		358,060
Receivables:
Dividends		109,274
Fund shares sold		52,640
Foreign taxes reclaim		416
Securities lending income		277
Interest		19
Total assets		52,987,383
Liabilities:
Payable for:
Return of securities loaned		747,201
Fund shares redeemed		100,731
Management fees		39,211
Transfer agent and administrative fees		11,533
Portfolio accounting fees		4,613
Distribution and service fees		4,531
Miscellaneous		17,105
Total liabilities		924,925
Commitments and contingent liabilities (Note 10)		—
Net assets	$	52,062,458
Net assets consist of:
Paid in capital	$	46,512,294
Undistributed net investment income		566,663
Accumulated net realized loss on investments		(4,648,737	)
Net unrealized appreciation on investments		9,632,238
Net assets	$	52,062,458
Investor Class:
Net assets	$	38,522,054
Capital shares outstanding		551,165
Net asset value per share	$	69.89
A-Class:
Net assets	$	7,858,781
Capital shares outstanding		119,365
Net asset value per share	$	65.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	69.12
C-Class:
Net assets	$	2,037,637
Capital shares outstanding		34,541
Net asset value per share	$	58.99
H-Class:
Net assets	$	3,643,986
Capital shares outstanding		56,975
Net asset value per share	$	63.96

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $2,297)	$	591,868
Interest		1,169
Income from securities lending, net		2,391
Total investment income		595,428
Expenses:
Management fees		228,888
Distribution and service fees:
A-Class		8,500
C-Class		9,104
H-Class		9,545
Transfer agent and administrative fees		67,320
Registration fees		36,641
Portfolio accounting fees		26,928
Custodian fees		3,696
Trustees’ fees*		2,464
Line of credit fees		97
Miscellaneous		8,635
Total expenses		401,818
Net investment income		193,610
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,608,727
Net realized gain		5,608,727
Net change in unrealized appreciation (depreciation) on:
Investments		(3,029,264	)
Net change in unrealized appreciation (depreciation)		(3,029,264	)
Net realized and unrealized gain		2,579,463
Net increase in net assets resulting from operations	$	2,773,073

* 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 | 69

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	193,610		$	372,885
Net realized gain on investments		5,608,727			1,172,406
Net change in unrealized appreciation (depreciation) on investments		(3,029,264	)		6,199,242
Net increase in net assets resulting from operations		2,773,073			7,744,533
Distributions to shareholders from:
Net investment income
Investor Class		—			(503,291	)
A-Class		—			(14,974	)
C-Class		—			(13,362	)
H-Class		—			(38,626	)
Total distributions to shareholders		—			(570,253	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		81,777,008			181,145,547
A-Class		8,196,189			11,484,050
C-Class		1,853,865			3,885,372
H-Class		34,113,470			67,386,302
Distributions reinvested
Investor Class		—			470,098
A-Class		—			14,646
C-Class		—			13,227
H-Class		—			38,622
Cost of shares redeemed
Investor Class		(83,944,784	)		(163,986,478	)
A-Class		(2,738,639	)		(10,860,355	)
C-Class		(2,201,755	)		(2,920,279	)
H-Class		(49,341,546	)		(52,510,413	)
Net increase (decrease) from capital share transactions		(12,286,192	)		34,160,339
Net increase (decrease) in net assets		(9,513,119	)		41,334,619
Net assets:
Beginning of period		61,575,577			20,240,958
End of period	$	52,062,458		$	61,575,577
Undistributed net investment income at end of period	$	566,664		$	373,053

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		1,210,370			3,001,546	*
A-Class		132,897			206,206	*
C-Class		32,657			76,106	*
H-Class		558,104			1,149,247	*
Shares issued from reinvestment of distributions
Investor Class		—			7,770	*
A-Class		—			256	*
C-Class		—			257	*
H-Class		—			696	*
Shares redeemed
Investor Class		(1,261,228	)		(2,687,599	)*
A-Class		(43,374	)		(196,995	)*
C-Class		(39,191	)		(58,308	)*
H-Class		(807,144	)		(905,056	)*
Net increase (decrease) in shares		(216,908	)		594,126	*

* Capital share activity for the period presented through March 31, 2017, has been restated to reflect a 2:1 share split effective October 31, 2016 — See Note 9.

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

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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	65.14		$	53.90		$	57.78		$	53.05		$	45.33		$	39.23
Income (loss) from investment operations:
Net investment income (loss)b		.27			.55			.77			.46			.39			.38
Net gain (loss) on investments (realized and unrealized)		4.48			11.14			(4.19	)		4.40			7.61			6.00
Total from investment operations		4.75			11.69			(3.42	)		4.86			8.00			6.38
Less distributions from:
Net investment income		—			(.45	)		(.30	)		(.13	)		(.28	)		(.28	)
Net realized gains		—			—			(.16	)		—			—			—
Total distributions		—			(.45	)		(.46	)		(.13	)		(.28	)		(.28	)
Net asset value, end of period	$	69.89		$	65.14		$	53.90		$	57.78		$	53.05		$	45.33
Total Returnc		7.31	%		21.72	%		(5.95	%)		9.17	%		17.67	%		16.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	38,522		$	39,214		$	15,110		$	49,897		$	17,688		$	17,007
Ratios to average net assets:
Net investment income (loss)		0.82	%		0.90	%		1.36	%		0.82	%		0.81	%		0.95	%
Total expenses		1.39	%		1.38	%		1.34	%		1.34	%		1.37	%		1.36	%
Portfolio turnover rate		195	%		389	%		268	%		326	%		414	%		590	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	61.44		$	51.00		$	54.83		$	50.47		$	43.24		$	37.53
Income (loss) from investment operations:
Net investment income (loss)b		.26			.41			.46			.21			.29			.26
Net gain (loss) on investments (realized and unrealized)		4.14			10.48			(3.83	)		4.28			7.22			5.73
Total from investment operations		4.40			10.89			(3.37	)		4.49			7.51			5.99
Less distributions from:
Net investment income		—			(.45	)		(.30	)		(.13	)		(.28	)		(.28	)
Net realized gains		—			—			(.16	)		—			—			—
Total distributions		—			(.45	)		(.46	)		(.13	)		(.28	)		(.28	)
Net asset value, end of period	$	65.84		$	61.44		$	51.00		$	54.83		$	50.47		$	43.24
Total Returnc		7.16	%		21.42	%		(6.17	%)		8.89	%		17.41	%		16.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,859		$	1,834		$	1,039		$	2,734		$	7,698		$	1,826
Ratios to average net assets:
Net investment income (loss)		0.84	%		0.73	%		0.87	%		0.41	%		0.62	%		0.66	%
Total expenses		1.64	%		1.62	%		1.60	%		1.59	%		1.62	%		1.61	%
Portfolio turnover rate		195	%		389	%		268	%		326	%		414	%		590	%

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

FINANCIAL SERVICES 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	55.26		$	46.24		$	50.14		$	46.51		$	40.15		$	35.13
Income (loss) from investment operations:
Net investment income (loss)b		—	d		(.07	)		.11			(.11	)		(.08	)		.02
Net gain (loss) on investments (realized and unrealized)		3.73			9.54			(3.55	)		3.87			6.72			5.28
Total from investment operations		3.73			9.47			(3.44	)		3.76			6.64			5.30
Less distributions from:
Net investment income		—			(.45	)		(.30	)		(.13	)		(.28	)		(.28	)
Net realized gains		—			—			(.16	)		—			—			—
Total distributions		—			(.45	)		(.46	)		(.13	)		(.28	)		(.28	)
Net asset value, end of period	$	58.99		$	55.26		$	46.24		$	50.14		$	46.51		$	40.15
Total Returnc		6.77	%		20.51	%		(6.89	%)		8.08	%		16.58	%		15.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,038		$	2,270		$	1,065		$	1,255		$	1,051		$	1,440
Ratios to average net assets:
Net investment income (loss)		(0.02	%)		(0.13	%)		0.22	%		(0.23	%)		(0.18	%)		0.04	%
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.36	%
Portfolio turnover rate		195	%		389	%		268	%		326	%		414	%		590	%

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

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.

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e				Year Ended March 31, 2016e,f			Year Ended March 31, 2015e,f			Year Ended March 31, 2014e,f			Year Ended March 28, 2013e,f
Per Share Data
Net asset value, beginning of period	$	59.67		$	49.53			$	53.30		$	49.18		$	42.25		$	36.77
Income (loss) from investment operations:
Net investment income (loss)b		.09			.33				.43			.15			.12			.11
Net gain (loss) on investments (realized and unrealized)		4.20			10.26		��		(3.74	)		4.10			7.09			5.65
Total from investment operations		4.29			10.59				(3.31	)		4.25			7.21			5.76
Less distributions from:
Net investment income		—			(.45	)			(.30	)		(.13	)		(.28	)		(.28	)
Net realized gains		—			—				(.16	)		—			—			—
Total distributions		—			(.45	)			(.46	)		(.13	)		(.28	)		(.28	)
Net asset value, end of period	$	63.96		$	59.67			$	49.53		$	53.30		$	49.18		$	42.25
Total Returnc		7.19	%		21.43	%			(6.25	%)		8.63	%		17.10	%		15.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,644		$	18,259			$	3,028		$	4,479		$	4,583		$	7,103
Ratios to average net assets:
Net investment income (loss)		0.29	%		0.58	%			0.83	%		0.28	%		0.26	%		0.29	%
Total expenses		1.64	%		1.63	%			1.65	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		195	%		389	%			268	%		326	%		414	%		590	%

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net investment income is less than $0.01 per share.
e	Share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 31, 2016 — See Note 9.
f	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	March 30, 2001
H-Class	May 11, 1998

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.0%
Pfizer, Inc.	2.3%
UnitedHealth Group, Inc.	2.3%
Merck & Company, Inc.	2.1%
Amgen, Inc.	1.8%
AbbVie, Inc.	1.8%
Celgene Corp.	1.7%
Bristol-Myers Squibb Co.	1.6%
Gilead Sciences, Inc.	1.6%
Eli Lilly & Co.	1.6%
Top Ten Total	19.8%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	10.50%	13.19%	15.12%	9.46%
A-Class Shares	10.37%	12.90%	14.82%	9.20%
A-Class Shares with sales charge‡	5.14%	7.53%	13.71%	8.67%
C-Class Shares	9.92%	12.04%	13.96%	8.40%
C-Class Shares with CDSC§	8.92%	11.08%	13.96%	8.40%
H-Class Shares**	10.32%	12.84%	14.66%	8.99%
S&P 500 Health Care Index	11.01%	15.49%	17.30%	10.86%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 75

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Pharmaceuticals - 34.8%
Johnson & Johnson		23,926	$	3,110,620
Pfizer, Inc.		67,237		2,400,361
Merck & Company, Inc.		33,914		2,171,513
AbbVie, Inc.		20,560		1,826,962
Bristol-Myers Squibb Co.		26,535		1,691,341
Eli Lilly & Co.		19,084		1,632,445
Allergan plc		6,676		1,368,246
Shire plc ADR		7,232		1,107,508
Express Scripts Holding Co.*		16,193		1,025,341
McKesson Corp.		6,387		981,107
Zoetis, Inc.		14,374		916,486
Teva Pharmaceutical Industries Ltd. ADR		49,303		867,733
AstraZeneca plc ADR		23,316		789,946
Cardinal Health, Inc.		11,582		775,067
Jazz Pharmaceuticals plc*		5,078		742,658
AmerisourceBergen Corp. — Class A		8,902		736,641
GlaxoSmithKline plc ADR		17,917		727,430
Endo International plc*		84,343		722,398
Alkermes plc*		14,150		719,386
Novartis AG ADR		8,331		715,216
Perrigo Company plc		8,313		703,695
Novo Nordisk A/S ADR		13,720		660,618
Mylan N.V.*		20,828		653,374
TESARO, Inc.*		3,930		507,363
Neurocrine Biosciences, Inc.*		6,580		403,222
Valeant Pharmaceuticals International, Inc.*		27,114		388,544
PRA Health Sciences, Inc.*		5,070		386,182
Clovis Oncology, Inc.*		4,660		383,984
Premier, Inc. — Class A*		11,330		369,018
Catalent, Inc.*,1		9,000		359,280
ACADIA Pharmaceuticals, Inc.*		9,499		357,827
Mallinckrodt plc*		9,557		357,145
Akorn, Inc.*		10,540		349,823
Nektar Therapeutics*		13,500		324,000
Avexis, Inc.*		3,200		309,536
Portola Pharmaceuticals, Inc.*		5,700		307,971
DexCom, Inc.*		6,115		299,176
Agios Pharmaceuticals, Inc.*		4,392		293,166
Amicus Therapeutics, Inc.*,1		18,584		280,247
Prestige Brands Holdings, Inc.*		5,506		275,796
Sarepta Therapeutics, Inc.*		5,850		265,356
Horizon Pharma plc*		20,488		259,788
Radius Health, Inc.*,1		6,688		257,822
Ironwood Pharmaceuticals, Inc. — Class A*		16,070		253,424
Array BioPharma, Inc.*		20,358		250,403
Owens & Minor, Inc.		7,961		232,461
Global Blood Therapeutics, Inc.*		7,200		223,560
Pacira Pharmaceuticals, Inc.*		5,548		208,327
Supernus Pharmaceuticals, Inc.*		5,200		208,000
Aerie Pharmaceuticals, Inc.*		4,200		204,120
Impax Laboratories, Inc.*		9,537		193,601
Eagle Pharmaceuticals, Inc.*,1		2,740		163,414
Synergy Pharmaceuticals, Inc.*,1		54,040		156,716
Depomed, Inc.*		16,345		94,638
Total Pharmaceuticals				35,970,002
Healthcare-Products - 23.5%
Abbott Laboratories		30,518		1,628,439
Thermo Fisher Scientific, Inc.		7,611		1,440,001
Danaher Corp.		14,585		1,251,101
Stryker Corp.		8,689		1,234,012
Becton Dickinson and Co.		5,930		1,161,984
Medtronic plc		14,935		1,161,495
Intuitive Surgical, Inc.*		1,078		1,127,459
Boston Scientific Corp.*		35,757		1,043,032
Baxter International, Inc.		15,549		975,700
Zimmer Biomet Holdings, Inc.		7,166		839,067
Edwards Lifesciences Corp.*		7,543		824,525
CR Bard, Inc.		2,398		768,559
Align Technology, Inc.*		3,502		652,318
Henry Schein, Inc.*		7,946		651,493
Dentsply Sirona, Inc.		10,662		637,694
IDEXX Laboratories, Inc.*		3,989		620,250
Cooper Companies, Inc.		2,500		592,775
Teleflex, Inc.1		2,330		563,790
Hologic, Inc.*		14,968		549,176
ResMed, Inc.		6,962		535,796
Varian Medical Systems, Inc.*		4,948		495,097
ABIOMED, Inc.*		2,840		478,824
West Pharmaceutical Services, Inc.		4,750		457,235
Hill-Rom Holdings, Inc.		5,030		372,220
Alere, Inc.*		7,155		364,833
Bruker Corp.		12,200		362,950
OPKO Health, Inc.*,1		52,827		362,393
Masimo Corp.*		4,160		360,090
ICU Medical, Inc.*		1,840		341,964
Patterson Companies, Inc.		8,699		336,216
Bio-Techne Corp.		2,770		334,865
Integra LifeSciences Holdings Corp.*		6,490		327,615
VWR Corp.*		9,000		297,990
NuVasive, Inc.*		5,252		291,276
Insulet Corp.*		5,280		290,822
Nevro Corp.*		3,160		287,181
Natus Medical, Inc.*		5,000		187,500
Total Healthcare-Products				24,207,737
Biotechnology - 21.1%
Amgen, Inc.		10,170		1,896,196
Celgene Corp.*		12,225		1,782,649
Gilead Sciences, Inc.		20,305		1,645,110
Biogen, Inc.*		4,139		1,296,003
Regeneron Pharmaceuticals, Inc.*		2,857		1,277,422
Vertex Pharmaceuticals, Inc.*		7,003		1,064,736
Alexion Pharmaceuticals, Inc.*		6,610		927,317
Illumina, Inc.*		4,329		862,337
Incyte Corp.*		7,073		825,702
Alnylam Pharmaceuticals, Inc.*		6,045		710,227
BioMarin Pharmaceutical, Inc.*		7,102		660,983
Kite Pharma, Inc.*		2,792		502,030

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
HEALTH CARE FUND

	Shares		Value
Seattle Genetics, Inc.*		8,497	$	462,322
Bio-Rad Laboratories, Inc. — Class A*		2,010		446,662
Exelixis, Inc.*		17,750		430,083
Bioverativ, Inc.*		7,509		428,539
Exact Sciences Corp.*		9,094		428,509
United Therapeutics Corp.*		3,406		399,149
Bluebird Bio, Inc.*		2,860		392,821
Charles River Laboratories International, Inc.*		3,605		389,412
Ionis Pharmaceuticals, Inc.*		7,148		362,404
Puma Biotechnology, Inc.*		2,970		355,658
FibroGen, Inc.*		6,100		328,180
Medicines Co.*		8,575		317,618
Juno Therapeutics, Inc.*		7,010		314,469
Spark Therapeutics, Inc.*		3,410		304,036
Ligand Pharmaceuticals, Inc. — Class B*,1		2,140		291,361
Sage Therapeutics, Inc.*		4,640		289,072
Myriad Genetics, Inc.*		7,539		272,761
Loxo Oncology, Inc.*		2,800		257,936
Ultragenyx Pharmaceutical, Inc.*		4,840		257,778
Halozyme Therapeutics, Inc.*		14,580		253,255
Intrexon Corp.*,1		13,170		250,362
Esperion Therapeutics, Inc.*		3,900		195,468
Intercept Pharmaceuticals, Inc.*,1		3,360		195,014
Acorda Therapeutics, Inc.*		7,875		186,244
Five Prime Therapeutics, Inc.*		4,520		184,913
Alder Biopharmaceuticals, Inc.*		14,220		174,195
AMAG Pharmaceuticals, Inc.*		6,410		118,265
Total Biotechnology				21,737,198
Healthcare-Services - 14.7%
UnitedHealth Group, Inc.		12,012		2,352,550
Anthem, Inc.		6,554		1,244,474
Aetna, Inc.		7,629		1,213,087
Cigna Corp.		6,296		1,176,974
Humana, Inc.		4,202		1,023,733
HCA Healthcare, Inc.*		11,674		929,134
Quintiles IMS Holdings, Inc.*		8,150		774,821
Centene Corp.*		6,903		668,003
Laboratory Corporation of America Holdings*		4,287		647,208
Quest Diagnostics, Inc.		6,269		587,029
DaVita, Inc.*		9,636		572,282
Universal Health Services, Inc. — Class B		5,029		557,917
WellCare Health Plans, Inc.*		2,740		470,568
Envision Healthcare Corp.*		8,813		396,144
HealthSouth Corp.		7,870		364,775
MEDNAX, Inc.*		8,216		354,274
Acadia Healthcare Company, Inc.*,1		7,140		341,006
Molina Healthcare, Inc.*		4,906		337,337
LifePoint Health, Inc.*		4,640		268,656
Amedisys, Inc.*		4,100		229,436
Magellan Health, Inc.*		2,650		228,695
Brookdale Senior Living, Inc. — Class A*		21,544		228,366
Tenet Healthcare Corp.*,1		13,090		215,069
Total Healthcare-Services				15,181,538
Electronics - 2.4%
Agilent Technologies, Inc.		11,854		761,027
Mettler-Toledo International, Inc.*,1		1,100		688,776
Waters Corp.*		3,261		585,415
PerkinElmer, Inc.		6,751		465,616
Total Electronics				2,500,834
Software - 2.2%
Cerner Corp.*		11,227		800,710
Veeva Systems, Inc. — Class A*		8,612		485,803
Medidata Solutions, Inc.*		4,685		365,711
athenahealth, Inc.*,1		2,920		363,131
Allscripts Healthcare Solutions, Inc.*		19,214		273,415
Total Software				2,288,770
Commercial Services - 1.0%
Incorporated Research Holdings, Inc. — Class A*		7,682		401,769
PAREXEL International Corp.*		4,142		364,827
HealthEquity, Inc.*		5,970		301,963
Total Commercial Services				1,068,559
Total Common Stocks
(Cost $91,860,874)				102,954,638
RIGHTS††† - 0.0%
Dyax Corp.
Expires 01/25/18*		5,700		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	297,347		297,347
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		148,673		148,673
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		148,559		148,559
Total Repurchase Agreements
(Cost $594,579)				594,579

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
HEALTH CARE FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 2.5%
First American Government Obligations Fund — Class Z, 0.89%4		2,547,280	$	2,547,280
Total Securities Lending Collateral
(Cost $2,547,280)				2,547,280
Total Investments - 102.8%
(Cost $95,002,733)			$	106,096,497
Other Assets & Liabilities, net - (2.8)%				(2,872,782	)
Total Net Assets - 100.0%			$	103,223,715

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	102,954,638	$	—	$	—		$	102,954,638
Repurchase Agreement		—		594,579		—			594,579
Rights		—		—		—	*		—
Securities Lending Collateral		2,547,280		—		—			2,547,280
Total Assets	$	105,501,918	$	594,579	$	—		$	106,096,497

* Security has market value of $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $2,506,523 of securities loaned (cost $94,408,154)	$	105,501,918
Repurchase agreements, at value (cost $594,579)		594,579
Receivables:
Fund shares sold		185,510
Dividends		54,574
Foreign taxes reclaim		2,846
Securities lending income		1,317
Interest		33
Total assets		106,340,777
Liabilities:
Payable for:
Return of securities loaned		2,547,280
Fund shares redeemed		427,603
Management fees		68,377
Transfer agent and administrative fees		20,111
Distribution and service fees		9,592
Portfolio accounting fees		8,044
Miscellaneous		36,055
Total liabilities		3,117,062
Commitments and contingent liabilities (Note 10)		—
Net assets	$	103,223,715
Net assets consist of:
Paid in capital	$	93,439,311
Accumulated net investment loss		(242,415	)
Accumulated net realized loss on investments		(1,066,945	)
Net unrealized appreciation on investments		11,093,764
Net assets	$	103,223,715
Investor Class:
Net assets	$	75,308,422
Capital shares outstanding		2,449,901
Net asset value per share	$	30.74
A-Class:
Net assets	$	5,590,921
Capital shares outstanding		198,164
Net asset value per share	$	28.21
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.62
C-Class:
Net assets	$	6,116,113
Capital shares outstanding		246,375
Net asset value per share	$	24.82
H-Class:
Net assets	$	16,208,259
Capital shares outstanding		594,232
Net asset value per share	$	27.28

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $376)	$	359,327
Interest		2,035
Income from securities lending, net		5,009
Total investment income		366,371
Expenses:
Management fees		341,572
Distribution and service fees:
A-Class		5,999
C-Class		27,749
H-Class		15,916
Transfer agent and administrative fees		100,462
Portfolio accounting fees		40,184
Registration fees		32,344
Custodian fees		5,180
Trustees’ fees*		2,065
Line of credit fees		17
Miscellaneous		37,298
Total expenses		608,786
Net investment loss		(242,415	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,400,810
Net realized gain		1,400,810
Net change in unrealized appreciation (depreciation) on:
Investments		4,858,801
Net change in unrealized appreciation (depreciation)		4,858,801
Net realized and unrealized gain		6,259,611
Net increase in net assets resulting from operations	$	6,017,196

* 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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(242,415	)	$	(282,561	)
Net realized gain on investments		1,400,810			19,553,389
Net change in unrealized appreciation (depreciation) on investments		4,858,801			(16,329,099	)
Net increase in net assets resulting from operations		6,017,196			2,941,729
Distributions to shareholders from:
Net realized gains
Investor Class		—			(2,956,545	)
A-Class		—			(740,095	)
C-Class		—			(877,583	)
H-Class		—			(1,278,405	)
Total distributions to shareholders		—			(5,852,628	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		146,890,174			365,602,869
A-Class		3,149,211			11,961,380
C-Class		2,691,454			3,938,169
H-Class		87,905,888			26,745,003
Distributions reinvested
Investor Class		—			2,909,276
A-Class		—			638,573
C-Class		—			867,742
H-Class		—			1,278,332
Cost of shares redeemed
Investor Class		(112,749,486	)		(375,451,784	)
A-Class		(2,622,832	)		(14,203,527	)
C-Class		(2,028,728	)		(7,750,196	)
H-Class		(76,891,214	)		(27,362,966	)
Net increase (decrease) from capital share transactions		46,344,467			(10,827,129	)
Net increase (decrease) in net assets		52,361,663			(13,738,028	)
Net assets:
Beginning of period		50,862,052			64,600,080
End of period	$	103,223,715		$	50,862,052
Accumulated net investment loss at end of period	$	(242,415	)	$	—
Capital share activity:
Shares sold
Investor Class		4,958,518			12,706,162
A-Class		113,895			436,251
C-Class		112,227			163,495
H-Class		3,317,216			1,045,237
Shares issued from reinvestment of distributions
Investor Class		—			111,467
A-Class		—			26,596
C-Class		—			40,816
H-Class		—			55,053
Shares redeemed
Investor Class		(3,819,533	)		(13,065,375	)
A-Class		(96,680	)		(522,147	)
C-Class		(85,496	)		(327,952	)
H-Class		(2,917,481	)		(1,108,171	)
Net increase (decrease) in shares		1,582,666			(438,568	)

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	27.82		$	28.65		$	35.83		$	27.76		$	22.35		$	18.83
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.10	)		(.04	)		(.07	)		(.03	)		.09
Net gain (loss) on investments (realized and unrealized)		2.99			2.79			(5.11	)		8.50			7.00			3.48
Total from investment operations		2.92			2.69			(5.15	)		8.43			6.97			3.57
Less distributions from:
Net investment income		—			—			—			—			(.03	)		(.05	)
Net realized gains		—			(3.52	)		(2.03	)		(.36	)		(1.53	)		—
Total distributions		—			(3.52	)		(2.03	)		(.36	)		(1.56	)		(.05	)
Net asset value, end of period	$	30.74		$	27.82		$	28.65		$	35.83		$	27.76		$	22.35
Total Returnc		10.50	%		10.20	%		(14.82	%)		30.51	%		31.70	%		18.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	75,308		$	36,468		$	44,663		$	175,397		$	98,209		$	104,525
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		(0.36	%)		(0.11	%)		(0.23	%)		(0.12	%)		0.45	%
Total expenses		1.39	%		1.37	%		1.34	%		1.34	%		1.37	%		1.35	%
Portfolio turnover rate		199	%		699	%		249	%		176	%		277	%		266	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	25.56		$	26.68		$	33.60		$	26.11		$	21.15		$	17.87
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.17	)		(.13	)		(.14	)		(.09	)		.04
Net gain (loss) on investments (realized and unrealized)		2.75			2.57			(4.76	)		7.99			6.61			3.29
Total from investment operations		2.65			2.40			(4.89	)		7.85			6.52			3.33
Less distributions from:
Net investment income		—			—			—			—			(.03	)		(.05	)
Net realized gains		—			(3.52	)		(2.03	)		(.36	)		(1.53	)		—
Total distributions		—			(3.52	)		(2.03	)		(.36	)		(1.56	)		(.05	)
Net asset value, end of period	$	28.21		$	25.56		$	26.68		$	33.60		$	26.11		$	21.15
Total Returnc		10.37	%		9.85	%		(15.04	%)		30.21	%		31.36	%		18.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,591		$	4,626		$	6,410		$	28,704		$	7,909		$	3,660
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(0.62	%)		(0.42	%)		(0.47	%)		(0.37	%)		0.20	%
Total expenses		1.64	%		1.62	%		1.59	%		1.59	%		1.62	%		1.60	%
Portfolio turnover rate		199	%		699	%		249	%		176	%		277	%		266	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	22.58		$	24.13		$	30.82		$	24.16		$	19.81		$	16.86
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.33	)		(.33	)		(.33	)		(.26	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		2.41			2.30			(4.33	)		7.35			6.17			3.09
Total from investment operations		2.24			1.97			(4.66	)		7.02			5.91			3.00
Less distributions from:
Net investment income		—			—			—			—			(.03	)		(.05	)
Net realized gains		—			(3.52	)		(2.03	)		(.36	)		(1.53	)		—
Total distributions		—			(3.52	)		(2.03	)		(.36	)		(1.56	)		(.05	)
Net asset value, end of period	$	24.82		$	22.58		$	24.13		$	30.82		$	24.16		$	19.81
Total Returnc		9.92	%		9.07	%		(15.67	%)		29.21	%		30.38	%		17.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,116		$	4,959		$	8,284		$	11,551		$	7,318		$	4,589
Ratios to average net assets:
Net investment income (loss)		(1.46	%)		(1.37	%)		(1.17	%)		(1.24	%)		(1.14	%)		(0.53	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.34	%		2.37	%		2.35	%
Portfolio turnover rate		199	%		699	%		249	%		176	%		277	%		266	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	24.72		$	25.91		$	32.71		$	25.49		$	20.73		$	17.55
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.16	)		(.14	)		(.21	)		(.15	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		2.66			2.49			(4.63	)		7.79			6.47			3.29
Total from investment operations		2.56			2.33			(4.77	)		7.58			6.32			3.23
Less distributions from:
Net investment income		—			—			—			—			(.03	)		(.05	)
Net realized gains		—			(3.52	)		(2.03	)		(.36	)		(1.53	)		—
Total distributions		—			(3.52	)		(2.03	)		(.36	)		(1.56	)		(.05	)
Net asset value, end of period	$	27.28		$	24.72		$	25.91		$	32.71		$	25.49		$	20.73
Total Returnc		10.32	%		9.87	%		(15.08	%)		29.89	%		31.03	%		18.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,208		$	4,809		$	5,244		$	50,135		$	38,480		$	3,605
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(0.62	%)		(0.44	%)		(0.73	%)		(0.62	%)		(0.31	%)
Total expenses		1.64	%		1.62	%		1.71	%		1.85	%		1.87	%		1.86	%
Portfolio turnover rate		199	%		699	%		249	%		176	%		277	%		266	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class	April 6, 2000

Ten Largest Holdings (% of Total Net Assets)
Alphabet, Inc. — Class A	6.4%
Facebook, Inc. — Class A	5.3%
Amazon.com, Inc.	5.0%
Cisco Systems, Inc.	3.2%
Alibaba Group Holding Ltd. ADR	2.9%
Broadcom Ltd.	2.4%
Priceline Group, Inc.	2.4%
Time Warner, Inc.	2.2%
QUALCOMM, Inc.	2.2%
PayPal Holdings, Inc.	2.1%
Top Ten Total	34.1%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	15.24%	22.71%	18.13%	9.50%
A-Class Shares	15.11%	22.40%	17.83%	9.22%
A-Class Shares with sales charge‡	9.64%	16.59%	16.69%	8.69%
C-Class Shares	14.68%	21.49%	16.94%	8.41%
C-Class Shares with CDSC§	13.68%	20.49%	16.94%	8.41%
H-Class Shares**	15.11%	22.43%	17.65%	9.01%
S&P 500 Information Technology Index	13.14%	28.88%	17.44%	10.94%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 83

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Internet - 51.3%
Alphabet, Inc. — Class A*		5,239	$	5,101,319
Facebook, Inc. — Class A*		25,010		4,273,459
Amazon.com, Inc.*		4,200		4,037,670
Alibaba Group Holding Ltd. ADR*		13,380		2,310,860
Priceline Group, Inc.*		1,032		1,889,406
Netflix, Inc.*		9,086		1,647,746
Baidu, Inc. ADR*		6,057		1,500,258
eBay, Inc.*		30,968		1,191,029
JD.com, Inc. ADR*		29,722		1,135,380
Ctrip.com International Ltd. ADR*		18,473		974,266
Expedia, Inc.		6,468		931,004
Symantec Corp.		25,162		825,565
YY, Inc. ADR*		8,691		754,205
MercadoLibre, Inc.		2,840		735,361
Wix.com Ltd.*		9,860		708,441
Weibo Corp. ADR*		7,145		706,926
SINA Corp.*		6,090		698,219
Shopify, Inc. — Class A*		5,990		697,775
Palo Alto Networks, Inc.*		4,663		671,938
VeriSign, Inc.*		6,013		639,723
Twitter, Inc.*		37,567		633,755
58.com, Inc. ADR*		9,683		611,385
Vipshop Holdings Ltd. ADR*		69,545		611,301
IAC/InterActiveCorp*		4,917		578,141
F5 Networks, Inc.*		4,547		548,186
Zillow Group, Inc. — Class A*		13,123		526,888
Zillow Group, Inc. — Class C*		13,103		526,872
GoDaddy, Inc. — Class A*		11,830		514,723
TripAdvisor, Inc.*,1		10,980		445,019
Match Group, Inc.*,1		18,941		439,242
GrubHub, Inc.*		7,695		405,219
Wayfair, Inc. — Class A*		5,983		403,254
Stamps.com, Inc.*		1,852		375,308
Yelp, Inc. — Class A*		8,418		364,499
Liberty Expedia Holdings, Inc. — Class A*		6,498		345,109
Cogent Communications Holdings, Inc.		6,086		297,605
Trade Desk, Inc. — Class A*		4,670		287,252
Cars.com, Inc.*,1		9,800		260,778
Pandora Media, Inc.*,1		33,573		258,512
Etsy, Inc.*		14,928		251,985
Shutterfly, Inc.*		4,972		241,043
TrueCar, Inc.*,1		14,467		228,434
Blucora, Inc.*		8,600		217,580
NIC, Inc.		12,050		206,658
Shutterstock, Inc.*		6,128		204,001
Total Internet				41,213,299
Telecommunications - 12.2%
Cisco Systems, Inc.		76,019		2,556,519
Arista Networks, Inc.*		3,966		751,993
Motorola Solutions, Inc.		8,693		737,775
Juniper Networks, Inc.		22,904		637,418
CommScope Holding Company, Inc.*		14,776		490,711
LogMeIn, Inc.		4,238		466,392
ARRIS International plc*		16,130		459,544
Ubiquiti Networks, Inc.*,1		7,716		432,250
ViaSat, Inc.*,1		6,020		387,206
Ciena Corp.*		16,599		364,680
Finisar Corp.*		15,172		336,363
InterDigital, Inc.		4,402		324,648
Acacia Communications, Inc.*,1		6,088		286,745
Viavi Solutions, Inc.*		29,611		280,120
NETGEAR, Inc.*		5,165		245,854
Infinera Corp.*		26,748		237,255
Oclaro, Inc.*,1		26,566		229,265
Extreme Networks, Inc.*		18,805		223,591
ADTRAN, Inc.		9,065		217,560
Gogo, Inc.*,1		8,123		95,933
Total Telecommunications				9,761,822
Software - 11.9%
salesforce.com, Inc.*		16,810		1,570,389
Intuit, Inc.		8,197		1,165,122
NetEase, Inc. ADR		3,915		1,032,816
Red Hat, Inc.*		7,800		864,708
Momo, Inc. ADR*		22,544		706,529
Citrix Systems, Inc.*		8,597		660,422
Akamai Technologies, Inc.*		11,629		566,565
Veeva Systems, Inc. — Class A*		9,629		543,172
j2 Global, Inc.		4,943		365,189
Box, Inc. — Class A*		17,072		329,831
New Relic, Inc.*		6,390		318,222
2U, Inc.*		5,580		312,703
Allscripts Healthcare Solutions, Inc.*		21,905		311,708
Twilio, Inc. — Class A*,1		10,260		306,261
Cornerstone OnDemand, Inc.*		6,893		279,925
SPS Commerce, Inc.*		3,370		191,113
Total Software				9,524,675
Diversified Financial Services - 5.0%
Charles Schwab Corp.		35,629		1,558,412
TD Ameritrade Holding Corp.		20,790		1,014,552
E*TRADE Financial Corp.*		16,067		700,682
BGC Partners, Inc. — Class A		28,364		410,427
LendingClub Corp.*		50,464		307,326
Total Diversified Financial Services				3,991,399
Commercial Services - 4.7%
PayPal Holdings, Inc.*		26,526		1,698,460
Cimpress N.V.*		6,640		648,462
CoStar Group, Inc.*		2,182		585,322
Live Nation Entertainment, Inc.*		13,334		580,696
NutriSystem, Inc.		4,756		265,860
Total Commercial Services				3,778,800
Semiconductors - 4.5%
Broadcom Ltd.		7,914		1,919,462
QUALCOMM, Inc.		33,241		1,723,213
Total Semiconductors				3,642,675

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
INTERNET FUND

	Shares		Value
Computers - 3.8%
BlackBerry Ltd.*		72,280	$	808,090
Check Point Software Technologies Ltd.*		7,055		804,411
Brocade Communications Systems, Inc.		36,005		430,260
Nutanix, Inc. — Class A*		16,506		369,569
Lumentum Holdings, Inc.*		6,310		342,949
NetScout Systems, Inc.*		10,261		331,943
Total Computers				3,087,222
Media - 2.2%
Time Warner, Inc.		17,124		1,754,354
REITs - 1.4%
Equinix, Inc.		2,603		1,161,719
Aerospace & Defense - 1.0%
Harris Corp.		5,998		789,817
Retail - 0.6%
HSN, Inc.		7,078		276,396
PetMed Express, Inc.		4,500		149,175
Total Retail				425,571
Electronics - 0.3%
Applied Optoelectronics, Inc.*,1		3,703		239,473
Leisure Time - 0.2%
Liberty TripAdvisor Holdings, Inc. — Class A*		14,318		176,827
Total Common Stocks
(Cost $65,737,924)				79,547,653

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		296,770		296,769
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		148,385		148,385
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		148,271		148,271
Total Repurchase Agreements
(Cost $593,425)				593,425
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.6%
First American Government Obligations Fund — Class Z, 0.89%4		2,097,250		2,097,250
Total Securities Lending Collateral
(Cost $2,097,250)				2,097,250
Total Investments - 102.4%
(Cost $68,428,599)			$	82,238,328
Other Assets & Liabilities, net - (2.4)%				(1,946,519	)
Total Net Assets - 100.0%			$	80,291,809

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	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 | 85

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INTERNET FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	79,547,653	$	—	$	—	$	79,547,653
Repurchase Agreement		—		593,425		—		593,425
Securities Lending Collateral		2,097,250		—		—		2,097,250
Total Assets	$	81,644,904	$	593,425	$	—	$	82,238,328

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $2,033,122 of securities loaned (cost $67,835,174)	$	81,644,903
Repurchase agreements, at value (cost $593,425)		593,425
Cash		8,276
Receivables:
Fund shares sold		300,637
Securities lending income		7,971
Dividends		6,296
Interest		33
Total assets		82,561,541
Liabilities:
Payable for:
Return of securities loaned		2,097,250
Management fees		56,867
Fund shares redeemed		56,068
Transfer agent and administrative fees		16,725
Portfolio accounting fees		6,690
Distribution and service fees		6,611
Miscellaneous		29,521
Total liabilities		2,269,732
Commitments and contingent liabilities (Note 10)		—
Net assets	$	80,291,809
Net assets consist of:
Paid in capital	$	69,992,650
Accumulated net investment loss		(343,967	)
Accumulated net realized loss on investments		(3,166,603	)
Net unrealized appreciation on investments		13,809,729
Net assets	$	80,291,809
Investor Class:
Net assets	$	57,537,021
Capital shares outstanding		523,691
Net asset value per share	$	109.87
A-Class:
Net assets	$	3,584,264
Capital shares outstanding		34,694
Net asset value per share	$	103.31
Maximum offering price per share (Net asset value divided by 95.25%)	$	108.46
C-Class:
Net assets	$	2,918,233
Capital shares outstanding		31,594
Net asset value per share	$	92.37
H-Class:
Net assets	$	16,252,291
Capital shares outstanding		161,964
Net asset value per share	$	100.35

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $919)	$	171,142
Interest		1,554
Income from securities lending, net		32,268
Total investment income		204,963
Expenses:
Management fees		242,647
Distribution and service fees:
A-Class		3,537
C-Class		13,029
H-Class		12,918
Transfer agent and administrative fees		71,367
Portfolio accounting fees		28,546
Custodian fees		3,584
Trustees’ fees*		1,384
Line of credit fees		371
Miscellaneous		49,574
Total expenses		426,957
Net investment loss		(221,994	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		754,368
Net realized gain		754,368
Net change in unrealized appreciation (depreciation) on:
Investments		6,907,857
Net change in unrealized appreciation (depreciation)		6,907,857
Net realized and unrealized gain		7,662,225
Net increase in net assets resulting from operations	$	7,440,231

* 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 | 87

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(221,994	)	$	(255,868	)
Net realized gain on investments		754,368			6,746,908
Net change in unrealized appreciation (depreciation) on investments		6,907,857			(1,908,519	)
Net increase in net assets resulting from operations		7,440,231			4,582,521
Capital share transactions:
Proceeds from sale of shares
Investor Class		88,930,552			156,156,448
A-Class		2,735,599			14,112,884
C-Class		1,729,285			2,667,685
H-Class		48,753,647			24,642,372
Cost of shares redeemed
Investor Class		(54,163,949	)		(166,115,723	)
A-Class		(1,647,392	)		(14,079,122	)
C-Class		(1,476,089	)		(3,621,718	)
H-Class		(36,523,936	)		(29,999,192	)
Net increase (decrease) from capital share transactions		48,337,717			(16,236,366	)
Net increase (decrease) in net assets		55,777,948			(11,653,845	)
Net assets:
Beginning of period		24,513,861			36,167,706
End of period	$	80,291,809		$	24,513,861
Accumulated net investment loss at end of period	$	(343,967	)	$	(121,973	)
Capital share activity:
Shares sold
Investor Class		853,753			1,807,372
A-Class		27,953			181,366
C-Class		19,694			36,275
H-Class		509,498			326,408
Shares redeemed
Investor Class		(515,409	)		(1,935,644	)
A-Class		(17,095	)		(182,044	)
C-Class		(16,916	)		(49,537	)
H-Class		(374,875	)		(398,950	)
Net increase (decrease) in shares		486,604			(214,754	)

88 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	95.33		$	77.91		$	77.87		$	75.05		$	55.46		$	51.90
Income (loss) from investment operations:
Net investment income (loss)b		(.35	)		(.60	)		(.41	)		(.49	)		(.62	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		14.89			18.02			.78			5.27			20.53			5.26
Total from investment operations		14.54			17.42			.37			4.78			19.91			4.82
Less distributions from:
Net realized gains		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Total distributions		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Net asset value, end of period	$	109.87		$	95.33		$	77.91		$	77.87		$	75.05		$	55.46
Total Returnc		15.24	%		22.36	%		0.46	%		6.40	%		35.93	%		9.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	57,537		$	17,670		$	24,435		$	8,328		$	26,828		$	6,109
Ratios to average net assets:
Net investment income (loss)		(0.67	%)		(0.70	%)		(0.52	%)		(0.64	%)		(0.87	%)		(0.87	%)
Total expenses		1.39	%		1.37	%		1.35	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		136	%		518	%		520	%		495	%		472	%		442	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	89.75		$	73.54		$	73.71		$	71.32		$	52.85		$	49.63
Income (loss) from investment operations:
Net investment income (loss)b		(.43	)		(.76	)		(.69	)		(.61	)		(.79	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		13.99			16.97			.85			4.96			19.58			5.00
Total from investment operations		13.56			16.21			.16			4.35			18.79			4.48
Less distributions from:
Net realized gains		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Total distributions		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Net asset value, end of period	$	103.31		$	89.75		$	73.54		$	73.71		$	71.32		$	52.85
Total Returnc		15.11	%		22.04	%		0.20	%		6.12	%		35.58	%		9.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,584		$	2,139		$	1,803		$	2,022		$	12,566		$	1,192
Ratios to average net assets:
Net investment income (loss)		(0.87	%)		(0.95	%)		(0.92	%)		(0.86	%)		(1.12	%)		(1.08	%)
Total expenses		1.64	%		1.62	%		1.60	%		1.61	%		1.62	%		1.60	%
Portfolio turnover rate		136	%		518	%		520	%		495	%		472	%		442	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	80.55		$	66.49		$	67.17		$	65.64		$	49.03		$	46.50
Income (loss) from investment operations:
Net investment income (loss)b		(.71	)		(1.24	)		(1.03	)		(1.11	)		(1.16	)		(.85	)
Net gain (loss) on investments (realized and unrealized)		12.53			15.30			.68			4.60			18.09			4.64
Total from investment operations		11.82			14.06			(.35	)		3.49			16.93			3.79
Less distributions from:
Net realized gains		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Total distributions		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Net asset value, end of period	$	92.37		$	80.55		$	66.49		$	67.17		$	65.64		$	49.03
Total Returnc		14.68	%		21.13	%		(0.54	%)		5.34	%		34.56	%		8.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,918		$	2,321		$	2,798		$	2,436		$	4,655		$	1,111
Ratios to average net assets:
Net investment income (loss)		(1.61	%)		(1.71	%)		(1.53	%)		(1.68	%)		(1.85	%)		(1.91	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		136	%		518	%		520	%		495	%		472	%		442	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	87.18		$	71.40		$	71.64		$	69.58		$	51.70		$	48.71
Income (loss) from investment operations:
Net investment income (loss)b		(.48	)		(.78	)		(.72	)		(.78	)		(1.07	)		(.64	)
Net gain (loss) on investments (realized and unrealized)		13.65			16.56			.81			4.80			19.27			4.89
Total from investment operations		13.17			15.78			.09			4.02			18.20			4.25
Less distributions from:
Net realized gains		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Total distributions		—			—			(.33	)		(1.96	)		(.32	)		(1.26	)
Net asset value, end of period	$	100.35		$	87.18		$	71.40		$	71.64		$	69.58		$	51.70
Total Returnc		15.11	%		22.09	%		0.11	%		5.80	%		35.23	%		9.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,252		$	2,384		$	7,132		$	1,830		$	11,814		$	552
Ratios to average net assets:
Net investment income (loss)		(0.98	%)		(1.03	%)		(0.97	%)		(1.12	%)		(1.53	%)		(1.36	%)
Total expenses		1.64	%		1.62	%		1.67	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		136	%		518	%		520	%		495	%		472	%		442	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	May 3, 2001
H-Class	June 3, 1998

Ten Largest Holdings (% of Total Net Assets)
Comcast Corp. — Class A	3.7%
Walt Disney Co.	3.3%
Philip Morris International, Inc.	3.3%
McDonald's Corp.	3.0%
Altria Group, Inc.	3.0%
Charter Communications, Inc. — Class A	2.8%
Time Warner, Inc.	2.4%
Starbucks Corp.	2.3%
Twenty-First Century Fox, Inc. — Class A	1.9%
Las Vegas Sands Corp.	1.8%
Top Ten Total	27.5%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	3.51%	18.24%	14.66%	7.26%
A-Class Shares	3.38%	17.93%	14.37%	6.99%
A-Class Shares with sales charge‡	(1.53%)	12.33%	13.26%	6.47%
C-Class Shares	2.99%	17.06%	13.52%	6.18%
C-Class Shares with CDSC§	1.99%	16.06%	13.52%	6.18%
H-Class Shares**	3.39%	17.95%	14.22%	6.80%
S&P 500 Consumer Discretionary Index	3.21%	14.52%	15.93%	11.28%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 91

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Media - 29.4%
Comcast Corp. — Class A		16,160	$	621,836
Walt Disney Co.		5,707		562,539
Charter Communications, Inc. — Class A*		1,276		463,724
Time Warner, Inc.		3,906		400,170
Twenty-First Century Fox, Inc. — Class A		11,839		312,313
DISH Network Corp. — Class A*		4,336		235,141
Sirius XM Holdings, Inc.1		41,610		229,687
CBS Corp. — Class B		3,895		225,910
Liberty Broadband Corp. — Class C*		1,879		179,069
Discovery Communications, Inc. — Class A*		7,421		157,993
Viacom, Inc. — Class B		5,662		157,630
Scripps Networks Interactive, Inc. — Class A		1,744		149,792
News Corp. — Class A		9,545		126,567
Grupo Televisa SAB ADR		5,030		124,090
Cable One, Inc.		130		93,876
Sinclair Broadcast Group, Inc. — Class A		2,890		92,625
AMC Networks, Inc. — Class A*		1,520		88,874
Tribune Media Co. — Class A		2,090		85,397
Nexstar Media Group, Inc. — Class A		1,309		81,551
TEGNA, Inc.		6,079		81,033
New York Times Co. — Class A		4,070		79,772
Meredith Corp.		1,270		70,485
World Wrestling Entertainment, Inc. — Class A		2,560		60,288
EW Scripps Co. — Class A*		3,090		59,050
MSG Networks, Inc. — Class A*		2,680		56,816
Gray Television, Inc.*		3,330		52,281
Time, Inc.		3,735		50,423
Scholastic Corp.		1,320		49,104
Total Media				4,948,036
Retail - 17.4%
McDonald’s Corp.		3,209		502,787
Starbucks Corp.		7,204		386,927
Yum! Brands, Inc.		2,931		215,751
Yum China Holdings, Inc.*		4,431		177,107
Restaurant Brands International, Inc.		2,231		142,516
Domino’s Pizza, Inc.1		684		135,808
Darden Restaurants, Inc.		1,723		135,738
Chipotle Mexican Grill, Inc. — Class A*		428		131,751
Dunkin’ Brands Group, Inc.		1,869		99,207
Wendy’s Co.		5,505		85,493
Cracker Barrel Old Country Store, Inc.1		560		84,907
Texas Roadhouse, Inc. — Class A		1,683		82,703
Jack in the Box, Inc.		770		78,478
Papa John’s International, Inc.		1,034		75,554
Dave & Buster’s Entertainment, Inc.*		1,346		70,638
Cheesecake Factory, Inc.		1,530		64,444
Bloomin’ Brands, Inc.		3,272		57,587
Buffalo Wild Wings, Inc.*		543		57,395
Brinker International, Inc.1		1,714		54,608
Shake Shack, Inc. — Class A*		1,510		50,177
Sonic Corp.		1,859		47,312
Wingstop, Inc.1		1,312		43,624
Red Robin Gourmet Burgers, Inc.*		630		42,210
DineEquity, Inc.		910		39,112
BJ’s Restaurants, Inc.*,1		1,260		38,367
Fiesta Restaurant Group, Inc.*		1,820		34,580
Total Retail				2,934,781
Lodging - 12.2%
Las Vegas Sands Corp.		4,777		306,492
Marriott International, Inc. — Class A		2,547		280,832
Hilton Worldwide Holdings, Inc.		3,020		209,739
MGM Resorts International		5,930		193,259
Wynn Resorts Ltd.		1,141		169,918
Melco Resorts & Entertainment Ltd. ADR		6,983		168,430
Wyndham Worldwide Corp.		1,361		143,463
Hyatt Hotels Corp. — Class A*		1,970		121,726
Hilton Grand Vacations, Inc.*		2,337		90,278
Choice Hotels International, Inc.		1,330		84,987
ILG, Inc.		3,064		81,901
Boyd Gaming Corp.		2,925		76,196
Caesars Entertainment Corp.*,1		4,890		65,282
La Quinta Holdings, Inc.*		3,638		63,665
Total Lodging				2,056,168
Entertainment - 9.0%
IMAX Corp.*		6,100		138,164
Vail Resorts, Inc.1		580		132,310
Lions Gate Entertainment Corp. — Class A*		3,595		120,253
International Game Technology plc		4,180		102,619
Six Flags Entertainment Corp.		1,660		101,160
Madison Square Garden Co. — Class A*		463		99,128
Scientific Games Corp. — Class A*		2,073		95,047
Cinemark Holdings, Inc.		2,476		89,656
Marriott Vacations Worldwide Corp.		671		83,560
Churchill Downs, Inc.		385		79,387
Red Rock Resorts, Inc. — Class A		3,137		72,653
Regal Entertainment Group — Class A1		4,320		69,120
Penn National Gaming, Inc.*		2,727		63,785
Eldorado Resorts, Inc.*		2,405		61,688
International Speedway Corp. — Class A		1,550		55,800
Pinnacle Entertainment, Inc.*		2,486		52,977
AMC Entertainment Holdings, Inc. — Class A1		3,570		52,479
SeaWorld Entertainment, Inc.*,1		3,790		49,232
Total Entertainment				1,519,018
Leisure Time - 8.7%
Carnival Corp.		4,529		292,437
Carnival plc ADR		4,510		290,805
Royal Caribbean Cruises Ltd.		1,812		214,794
Norwegian Cruise Line Holdings Ltd.*		2,770		149,719
Harley-Davidson, Inc.		2,589		124,816
Polaris Industries, Inc.1		1,020		106,723
Brunswick Corp.		1,805		101,026
Planet Fitness, Inc. — Class A		2,680		72,306

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
LEISURE FUND

	Shares		Value
Vista Outdoor, Inc.*		2,268	$	52,028
Callaway Golf Co.		3,580		51,659
Total Leisure Time				1,456,313
Agriculture - 8.1%
Philip Morris International, Inc.		5,062		561,932
Altria Group, Inc.		7,892		500,511
British American Tobacco plc ADR		2,703		168,802
Vector Group Ltd.		3,526		72,170
Universal Corp.		919		52,659
Total Agriculture				1,356,074
Beverages - 5.8%
Constellation Brands, Inc. — Class A		1,346		268,460
Brown-Forman Corp. — Class B		3,638		197,543
Molson Coors Brewing Co. — Class B		2,235		182,465
Anheuser-Busch InBev S.A. ADR		1,253		149,483
Diageo plc ADR		900		118,917
Boston Beer Company, Inc. — Class A*		390		60,918
Total Beverages				977,786
Software - 4.2%
Activision Blizzard, Inc.		4,663		300,810
Electronic Arts, Inc.*		2,229		263,156
Take-Two Interactive Software, Inc.*		1,409		144,042
Total Software				708,008
Toys, Games & Hobbies - 1.5%
Hasbro, Inc.		1,612		157,444
Mattel, Inc.1		6,669		103,236
Total Toys, Games & Hobbies				260,680
Food Service - 0.8%
Aramark		3,416		138,724
Commercial Services - 0.8%
Live Nation Entertainment, Inc.*		3,041		132,436
REITs - 0.6%
Park Hotels & Resorts, Inc.		3,815		105,141
Miscellaneous Manufacturing - 0.6%
American Outdoor Brands Corp.*		3,150		48,038
Sturm Ruger & Company, Inc.1		870		44,979
Total Miscellaneous Manufacturing				93,017
Internet - 0.4%
Cars.com, Inc.*,1		2,233		59,420
Food - 0.3%
Bob Evans Farms, Inc.		700		54,257
Total Common Stocks
(Cost $12,584,765)				16,799,859
RIGHTS†† - 0.0%
Nexstar Media Group CVR
Expires 01/18/19*		8,160		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	70,737		70,737
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		35,369		35,369
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		35,342		35,342
Total Repurchase Agreements
(Cost $141,448)				141,448
	Shares
SECURITIES LENDING COLLATERAL†,3 - 6.2%
First American Government Obligations Fund — Class Z, 0.89%4		1,040,423		1,040,423
Total Securities Lending Collateral
(Cost $1,040,423)				1,040,423
Total Investments - 106.8%
(Cost $13,766,636)			$	17,981,730
Other Assets & Liabilities, net - (6.8)%				(1,150,971	)
Total Net Assets - 100.0%			$	16,830,759

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
LEISURE 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.
†††	Value determined based on Level 3 inputs — See Note 4.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	CVR — Contingent Value Rights
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	16,799,859	$	—	$	—		$	16,799,859
Repurchase Agreement		—		141,448		—			141,448
Rights		—		—		—	*		—
Securities Lending Collateral		1,040,423		—		—			1,040,423
Total Assets	$	17,840,282	$	141,448	$	—		$	17,981,730

* Market value of security is $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $1,014,960 of securities loaned (cost $13,625,188)	$	17,840,282
Repurchase agreements, at value (cost $141,448)		141,448
Receivables:
Securities sold		2,339,536
Dividends		32,624
Fund shares sold		32,142
Foreign taxes reclaim		3,881
Securities lending income		858
Interest		8
Total assets		20,390,779
Liabilities:
Payable for:
Fund shares redeemed		2,488,405
Return of securities loaned		1,040,423
Management fees		13,588
Transfer agent and administrative fees		3,996
Distribution and service fees		2,109
Portfolio accounting fees		1,599
Miscellaneous		9,900
Total liabilities		3,560,020
Commitments and contingent liabilities (Note 10)		—
Net assets	$	16,830,759
Net assets consist of:
Paid in capital	$	9,598,754
Undistributed net investment income		541,606
Accumulated net realized gain on investments		2,475,305
Net unrealized appreciation on investments		4,215,094
Net assets	$	16,830,759
Investor Class:
Net assets	$	11,693,400
Capital shares outstanding		159,218
Net asset value per share	$	73.44
A-Class:
Net assets	$	1,992,950
Capital shares outstanding		29,193
Net asset value per share	$	68.27
Maximum offering price per share (Net asset value divided by 95.25%)	$	71.67
C-Class:
Net assets	$	1,684,581
Capital shares outstanding		27,159
Net asset value per share	$	62.03
H-Class:
Net assets	$	1,459,828
Capital shares outstanding		21,931
Net asset value per share	$	66.56

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $744)	$	361,062
Interest		791
Income from securities lending, net		11,006
Total investment income		372,859
Expenses:
Management fees		169,807
Distribution and service fees:
A-Class		4,030
C-Class		8,860
H-Class		11,278
Transfer agent and administrative fees		49,943
Portfolio accounting fees		19,977
Custodian fees		2,581
Trustees’ fees*		2,367
Line of credit fees		159
Miscellaneous		33,074
Total expenses		302,076
Net investment income		70,783
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,820,745
Net realized gain		3,820,745
Net change in unrealized appreciation (depreciation) on:
Investments		(1,661,067	)
Net change in unrealized appreciation (depreciation)		(1,661,067	)
Net realized and unrealized gain		2,159,678
Net increase in net assets resulting from operations	$	2,230,461

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	70,783		$	162,023
Net realized gain on investments		3,820,745			6,743,496
Net change in unrealized appreciation (depreciation) on investments		(1,661,067	)		(1,727,882	)
Net increase in net assets resulting from operations		2,230,461			5,177,637
Distributions to shareholders from:
Net investment income
Investor Class		—			(79,568	)
A-Class		—			(31,053	)
C-Class		—			(6,507	)
H-Class		—			(14,627	)
Total distributions to shareholders		—			(131,755	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		62,974,266			73,417,889
A-Class		4,694,942			17,978,158
C-Class		654,573			303,924
H-Class		31,746,509			38,389,308
Distributions reinvested
Investor Class		—			77,283
A-Class		—			29,016
C-Class		—			6,322
H-Class		—			14,567
Cost of shares redeemed
Investor Class		(67,169,521	)		(77,077,573	)
A-Class		(4,979,469	)		(24,564,037	)
C-Class		(352,219	)		(505,982	)
H-Class		(34,658,375	)		(49,153,554	)
Net decrease from capital share transactions		(7,089,294	)		(21,084,679	)
Net decrease in net assets		(4,858,833	)		(16,038,797	)
Net assets:
Beginning of period		21,689,592			37,728,389
End of period	$	16,830,759		$	21,689,592
Undistributed net investment income at end of period	$	541,606		$	470,823
Capital share activity:
Shares sold
Investor Class		872,411			1,144,896
A-Class		69,911			304,282
C-Class		10,804			5,480
H-Class		486,736			661,870
Shares issued from reinvestment of distributions
Investor Class		—			1,225
A-Class		—			494
C-Class		—			118
H-Class		—			254
Shares redeemed
Investor Class		(916,325	)		(1,190,262	)
A-Class		(73,736	)		(411,259	)
C-Class		(5,680	)		(9,257	)
H-Class		(523,354	)		(840,148	)
Net decrease in shares		(79,233	)		(332,307	)

96 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	70.95		$	61.36		$	60.75		$	55.81		$	44.93		$	36.94
Income (loss) from investment operations:
Net investment income (loss)b		.19			.52			.22			.52			.20			.36
Net gain (loss) on investments (realized and unrealized)		2.30			9.38			.82			5.64			10.95			7.66
Total from investment operations		2.49			9.90			1.04			6.16			11.15			8.02
Less distributions from:
Net investment income		—			(.31	)		(.32	)		(.12	)		(.27	)		(.03	)
Net realized gains		—			—			(.11	)		(1.10	)		—			—
Total distributions		—			(.31	)		(.43	)		(1.22	)		(.27	)		(.03	)
Net asset value, end of period	$	73.44		$	70.95		$	61.36		$	60.75		$	55.81		$	44.93
Total Returnc		3.51	%		16.20	%		1.72	%		11.15	%		24.83	%		21.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,693		$	14,413		$	15,173		$	48,494		$	24,139		$	22,005
Ratios to average net assets:
Net investment income (loss)		0.52	%		0.81	%		0.35	%		0.89	%		0.39	%		0.92	%
Total expenses		1.39	%		1.38	%		1.34	%		1.34	%		1.37	%		1.35	%
Portfolio turnover rate		217	%		352	%		339	%		343	%		265	%		517	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	66.03		$	57.27		$	56.88		$	52.46		$	42.35		$	34.91
Income (loss) from investment operations:
Net investment income (loss)b		.08			.23			.08			.38			.04			.29
Net gain (loss) on investments (realized and unrealized)		2.16			8.84			.74			5.26			10.34			7.18
Total from investment operations		2.24			9.07			.82			5.64			10.38			7.47
Less distributions from:
Net investment income		—			(.31	)		(.32	)		(.12	)		(.27	)		(.03	)
Net realized gains		—			—			(.11	)		(1.10	)		—			—
Total distributions		—			(.31	)		(.43	)		(1.22	)		(.27	)		(.03	)
Net asset value, end of period	$	68.27		$	66.03		$	57.27		$	56.88		$	52.46		$	42.35
Total Returnc		3.38	%		15.91	%		1.45	%		10.86	%		24.53	%		21.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,993		$	2,180		$	7,990		$	10,703		$	1,778		$	1,409
Ratios to average net assets:
Net investment income (loss)		0.25	%		0.40	%		0.15	%		0.69	%		0.09	%		0.80	%
Total expenses		1.64	%		1.62	%		1.60	%		1.58	%		1.62	%		1.60	%
Portfolio turnover rate		217	%		352	%		339	%		343	%		265	%		517	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	60.23		$	52.65		$	52.72		$	49.07		$	39.92		$	33.16
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.18	)		(.28	)		(.19	)		(.27	)		.01
Net gain (loss) on investments (realized and unrealized)		1.98			8.07			.64			5.06			9.69			6.78
Total from investment operations		1.80			7.89			.36			4.87			9.42			6.79
Less distributions from:
Net investment income		—			(.31	)		(.32	)		(.12	)		(.27	)		(.03	)
Net realized gains		—			—			(.11	)		(1.10	)		—			—
Total distributions		—			(.31	)		(.43	)		(1.22	)		(.27	)		(.03	)
Net asset value, end of period	$	62.03		$	60.23		$	52.65		$	52.72		$	49.07		$	39.92
Total Returnc		2.99	%		15.05	%		0.69	%		10.04	%		23.61	%		20.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,685		$	1,327		$	1,353		$	1,590		$	1,460		$	928
Ratios to average net assets:
Net investment income (loss)		(0.57	%)		(0.33	%)		(0.54	%)		(0.37	%)		(0.59	%)		0.03	%
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		217	%		352	%		339	%		343	%		265	%		517	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	64.38		$	55.85		$	55.50		$	51.31		$	41.54		$	34.33
Income (loss) from investment operations:
Net investment income (loss)b		.03			.20			.27			.30			(.11	)		.29
Net gain (loss) on investments (realized and unrealized)		2.15			8.64			.51			5.11			10.15			6.95
Total from investment operations		2.18			8.84			.78			5.41			10.04			7.24
Less distributions from:
Net investment income		—			(.31	)		(.32	)		(.12	)		(.27	)		(.03	)
Net realized gains		—			—			(.11	)		(1.10	)		—			—
Total distributions		—			(.31	)		(.43	)		(1.22	)		(.27	)		(.03	)
Net asset value, end of period	$	66.56		$	64.38		$	55.85		$	55.50		$	51.31		$	41.54
Total Returnc		3.39	%		15.90	%		1.41	%		10.66	%		24.18	%		21.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,460		$	3,770		$	13,212		$	7,074		$	3,115		$	1,241
Ratios to average net assets:
Net investment income (loss)		0.10	%		0.34	%		0.49	%		0.55	%		(0.23	%)		0.80	%
Total expenses		1.64	%		1.63	%		1.64	%		1.83	%		1.87	%		1.85	%
Portfolio turnover rate		217	%		352	%		339	%		343	%		265	%		517	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 27, 2001
H-Class	August 1, 2003

Ten Largest Holdings (% of Total Net Assets)
Freeport-McMoRan, Inc.	6.8%
Newmont Mining Corp.	6.2%
Barrick Gold Corp.	6.0%
Franco-Nevada Corp.	5.1%
Goldcorp, Inc.	4.6%
Agnico Eagle Mines Ltd.	4.4%
VanEck Vectors Junior Gold Miners ETF	4.2%
Randgold Resources Ltd. ADR	4.1%
Wheaton Precious Metals Corp.	4.0%
Royal Gold, Inc.	3.3%
Top Ten Total	48.7%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(1.64%)	(13.85%)	(13.69%)	(6.29%)
A-Class Shares	(1.78%)	(14.09%)	(13.93%)	(6.54%)
A-Class Shares with sales charge‡	(6.45%)	(18.17%)	(14.77%)	(6.99%)
C-Class Shares	(2.15%)	(14.73%)	(14.55%)	(7.23%)
C-Class Shares with CDSC§	(3.12%)	(15.55%)	(14.55%)	(7.23%)
H-Class Shares**	(1.83%)	(14.15%)	(14.06%)	(6.72%)
S&P 500 Materials Index	9.41%	21.26%	11.29%	5.47%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.6%
Mining - 95.6%
Freeport-McMoRan, Inc.*		380,186	$	5,337,812
Newmont Mining Corp.		130,749		4,904,396
Barrick Gold Corp.		292,683		4,709,269
Franco-Nevada Corp.		51,805		4,013,851
Goldcorp, Inc.		279,698		3,624,886
Agnico Eagle Mines Ltd.		76,070		3,439,125
Randgold Resources Ltd. ADR1		32,983		3,221,120
Wheaton Precious Metals Corp.		166,302		3,174,705
Royal Gold, Inc.		30,031		2,583,867
Kinross Gold Corp.*		538,274		2,282,282
Cia de Minas Buenaventura S.A.A. ADR		165,396		2,115,415
AngloGold Ashanti Ltd. ADR		220,908		2,052,235
Gold Fields Ltd. ADR		465,781		2,007,516
B2Gold Corp.*		641,832		1,797,130
Pan American Silver Corp.		103,920		1,771,836
IAMGOLD Corp.*		282,211		1,721,487
Yamana Gold, Inc.		635,728		1,684,679
Sibanye-Stillwater ADR1		360,656		1,608,526
Hecla Mining Co.		310,852		1,560,477
Alamos Gold, Inc. — Class A		228,630		1,545,539
Osisko Gold Royalties Ltd.		117,750		1,520,153
New Gold, Inc.*		396,089		1,469,490
Pretium Resources, Inc.*,1		152,816		1,415,076
Coeur Mining, Inc.*		147,715		1,357,501
Eldorado Gold Corp.		593,401		1,305,482
Novagold Resources, Inc.*,1		311,949		1,285,230
SSR Mining, Inc.*		116,764		1,238,866
Tahoe Resources, Inc.		230,853		1,216,595
First Majestic Silver Corp.*,1		162,625		1,112,355
MAG Silver Corp.*		90,022		1,010,947
Sandstorm Gold Ltd.*		214,431		973,517
Seabridge Gold, Inc.*,1		73,982		902,580
Klondex Mines Ltd.*		243,802		887,439
Harmony Gold Mining Company Ltd. ADR		478,169		875,049
Fortuna Silver Mines, Inc.*		196,958		862,676
McEwen Mining, Inc.*,1		380,813		742,585
Richmont Mines, Inc.*		78,034		729,618
Endeavour Silver Corp.*,1		237,870		566,131
Gold Resource Corp.		136,559		512,096
AuRico Metals, Inc.*		5		5
Total Mining				75,139,544
Total Common Stocks
(Cost $67,364,006)				75,139,544
EXCHANGE-TRADED FUNDS† - 4.2%
VanEck Vectors Junior Gold Miners ETF		97,688		3,281,340
Total Exchange-Traded Funds
(Cost $3,011,694)				3,281,340
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.3%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	499,897		499,897
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		249,948		249,948
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		249,757		249,757
Total Repurchase Agreements
(Cost $999,602)				999,602
	Shares
SECURITIES LENDING COLLATERAL†,3 - 9.3%
First American Government Obligations Fund — Class Z, 0.89%4		7,312,958		7,312,958
Total Securities Lending Collateral
(Cost $7,312,958)				7,312,958
Total Investments - 110.4%
(Cost $78,688,260)			$	86,733,444
Other Assets & Liabilities, net - (10.4)%				(8,164,502	)
Total Net Assets - 100.0%			$	78,568,942

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
PRECIOUS METALS 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	75,139,544	$	—	$	—	$	75,139,544
Exchange-Traded Funds		3,281,340		—		—		3,281,340
Repurchase Agreements		—		999,602		—		999,602
Securities Lending Collateral		7,312,958		—		—		7,312,958
Total Assets	$	85,733,842	$	999,602	$	—	$	86,733,444

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $6,896,652 of securities loaned (cost $77,688,658)	$	85,733,842
Repurchase agreements, at value (cost $999,602)		999,602
Receivables:
Fund shares sold		173,579
Securities lending income		7,431
Dividends		6,782
Foreign taxes reclaim		827
Interest		55
Total assets		86,922,118
Liabilities:
Payable for:
Return of securities loaned		7,312,958
Deferred foreign capital gain taxes		519,144
Fund shares redeemed		412,961
Management fees		50,206
Transfer agent and administrative fees		16,735
Distribution and service fees		9,577
Portfolio accounting fees		6,694
Miscellaneous		24,898
Total liabilities		8,353,176
Commitments and contingent liabilities (Note 10)		—
Net assets	$	78,568,942
Net assets consist of:
Paid in capital	$	116,436,652
Accumulated net investment loss		(490,832	)
Accumulated net realized loss on investments		(45,422,062	)
Net unrealized appreciation on investments		8,045,184
Net assets	$	78,568,942
Investor Class:
Net assets	$	55,922,973
Capital shares outstanding		1,830,579
Net asset value per share	$	30.55
A-Class:
Net assets	$	12,537,637
Capital shares outstanding		428,074
Net asset value per share	$	29.29
Maximum offering price per share (Net asset value divided by 95.25%)	$	30.75
C-Class:
Net assets	$	6,937,870
Capital shares outstanding		271,788
Net asset value per share	$	25.53
H-Class:
Net assets	$	3,170,462
Capital shares outstanding		111,555
Net asset value per share	$	28.42

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $19,182)	$	188,693
Interest		3,367
Income from securities lending, net		42,655
Total investment income		234,715
Expenses:
Management fees		253,039
Distribution and service fees:
A-Class		13,385
C-Class		36,406
H-Class		5,227
Transfer agent and administrative fees		84,347
Portfolio accounting fees		33,738
Registration fees		30,623
Custodian fees		4,437
Trustees’ fees*		2,849
Line of credit fees		422
Miscellaneous		26,611
Total expenses		491,084
Net investment loss		(256,369	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,483,507
Net realized gain		9,483,507
Net change in unrealized appreciation (depreciation) on:
Investments		(12,783,750	)
Net change in unrealized appreciation (depreciation)		(12,783,750	)
Net realized and unrealized loss		(3,300,243	)
Net decrease in net assets resulting from operations	$	(3,556,612	)

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(256,369	)	$	(761,327	)
Net realized gain on investments		9,483,507			10,615,182
Net change in unrealized appreciation (depreciation) on investments		(12,783,750	)		(1,934,542	)
Net increase (decrease) in net assets resulting from operations		(3,556,612	)		7,919,313
Distributions to shareholders from:
Net investment income
Investor Class		—			(2,205,828	)
A-Class		—			(423,349	)
C-Class		—			(340,156	)
H-Class		—			(148,234	)
Total distributions to shareholders		—			(3,117,567	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		184,146,378			617,795,119
A-Class		5,018,798			28,200,735
C-Class		1,364,801			9,381,549
H-Class		89,010,798			78,064,423
Distributions reinvested
Investor Class		—			2,149,219
A-Class		—			409,011
C-Class		—			335,809
H-Class		—			147,702
Cost of shares redeemed
Investor Class		(170,502,574	)		(629,758,275	)
A-Class		(4,396,934	)		(20,496,890	)
C-Class		(1,903,445	)		(9,377,725	)
H-Class		(86,788,819	)		(77,888,581	)
Net increase (decrease) from capital share transactions		15,949,003			(1,037,904	)
Net increase in net assets		12,392,391			3,763,842
Net assets:
Beginning of period		66,176,551			62,412,709
End of period	$	78,568,942		$	66,176,551
Accumulated net investment loss at end of period	$	(490,832	)	$	(234,463	)
Capital share activity:
Shares sold
Investor Class		5,938,242			17,910,788
A-Class		172,375			836,189
C-Class		52,013			313,607
H-Class		3,132,359			2,469,224
Shares issued from reinvestment of distributions
Investor Class		—			70,420
A-Class		—			13,945
C-Class		—			13,051
H-Class		—			5,186
Shares redeemed
Investor Class		(5,519,905	)		(18,370,925	)
A-Class		(152,735	)		(582,330	)
C-Class		(74,084	)		(324,703	)
H-Class		(3,123,645	)		(2,471,225	)
Net increase (decrease) in shares		424,620			(116,773	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	30.82		$	27.37		$	25.11		$	35.78		$	51.65		$	65.73
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.23	)		(.07	)		.01			.36			.34
Net gain (loss) on investments (realized and unrealized)		(.18	)		4.85			2.44			(9.88	)		(16.06	)		(12.12	)
Total from investment operations		(.27	)		4.62			2.37			(9.87	)		(15.70	)		(11.78	)
Less distributions from:
Net investment income		—			(1.17	)		(.11	)		(.80	)		(.17	)		(.10	)
Net realized gains		—			—			—			—			—			(2.20	)
Total distributions		—			(1.17	)		(.11	)		(.80	)		(.17	)		(2.30	)
Net asset value, end of period	$	30.55		$	30.82		$	27.37		$	25.11		$	35.78		$	51.65
Total Returnc		(1.64	%)		16.91	%		9.67	%		(27.88	%)		(30.37	%)		(18.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,923		$	43,530		$	49,321		$	30,528		$	42,846		$	71,386
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.67	%)		(0.31	%)		0.04	%		0.96	%		0.55	%
Total expensesd		1.29	%		1.27	%		1.25	%		1.25	%		1.27	%		1.25	%
Portfolio turnover rate		265	%		508	%		797	%		371	%		348	%		206	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	29.59		$	26.39		$	24.28		$	34.75		$	50.28		$	64.21
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.27	)		(.12	)		(.10	)		.16			.21
Net gain (loss) on investments (realized and unrealized)		(.17	)		4.64			2.34			(9.57	)		(15.52	)		(11.84	)
Total from investment operations		(.30	)		4.37			2.22			(9.67	)		(15.36	)		(11.63	)
Less distributions from:
Net investment income		—			(1.17	)		(.11	)		(.80	)		(.17	)		(.10	)
Net realized gains		—			—			—			—			—			(2.20	)
Total distributions		—			(1.17	)		(.11	)		(.80	)		(.17	)		(2.30	)
Net asset value, end of period	$	29.29		$	29.59		$	26.39		$	24.28		$	34.75		$	50.28
Total Returnc		(1.78	%)		16.59	%		9.38	%		(28.13	%)		(30.52	%)		(18.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,538		$	12,085		$	3,711		$	4,928		$	5,235		$	5,988
Ratios to average net assets:
Net investment income (loss)		(0.85	%)		(0.82	%)		(0.54	%)		(0.29	%)		0.45	%		0.35	%
Total expensesd		1.54	%		1.52	%		1.50	%		1.50	%		1.52	%		1.50	%
Portfolio turnover rate		265	%		508	%		797	%		371	%		348	%		206	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	25.89		$	23.38		$	21.67		$	31.34		$	45.72		$	59.02
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.46	)		(.26	)		(.29	)		(.07	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		(.15	)		4.14			2.08			(8.58	)		(14.14	)		(10.77	)
Total from investment operations		(.36	)		3.68			1.82			(8.87	)		(14.21	)		(11.00	)
Less distributions from:
Net investment income		—			(1.17	)		(.11	)		(.80	)		(.17	)		(.10	)
Net realized gains		—			—			—			—			—			(2.20	)
Total distributions		—			(1.17	)		(.11	)		(.80	)		(.17	)		(2.30	)
Net asset value, end of period	$	25.53		$	25.89		$	23.38		$	21.67		$	31.34		$	45.72
Total Returnc		(2.15	%)		15.76	%		8.66	%		(28.64	%)		(31.05	%)		(19.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,938		$	7,607		$	6,825		$	5,590		$	9,250		$	18,608
Ratios to average net assets:
Net investment income (loss)		(1.62	%)		(1.59	%)		(1.34	%)		(0.99	%)		(0.22	%)		(0.42	%)
Total expensesd		2.29	%		2.27	%		2.25	%		2.25	%		2.27	%		2.25	%
Portfolio turnover rate		265	%		508	%		797	%		371	%		348	%		206	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	28.73		$	25.64		$	23.64		$	33.92		$	49.20		$	63.02
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.31	)		(.11	)		(.14	)		.12			(.02	)
Net gain (loss) on investments (realized and unrealized)		(.18	)		4.57			2.22			(9.34	)		(15.23	)		(11.50	)
Total from investment operations		(.31	)		4.26			2.11			(9.48	)		(15.11	)		(11.52	)
Less distributions from:
Net investment income		—			(1.17	)		(.11	)		(.80	)		(.17	)		(.10	)
Net realized gains		—			—			—			—			—			(2.20	)
Total distributions		—			(1.17	)		(.11	)		(.80	)		(.17	)		(2.30	)
Net asset value, end of period	$	28.42		$	28.73		$	25.64		$	23.64		$	33.92		$	49.20
Total Returnc		(1.83	%)		16.65	%		9.17	%		(28.24	%)		(30.71	%)		(18.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,170		$	2,954		$	2,556		$	8,400		$	4,009		$	3,148
Ratios to average net assets:
Net investment income (loss)		(0.90	%)		(0.94	%)		(0.53	%)		(0.45	%)		0.34	%		(0.04	%)
Total expensesd		1.54	%		1.52	%		1.59	%		1.75	%		1.77	%		1.75	%
Portfolio turnover rate		265	%		508	%		797	%		371	%		348	%		206	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
American Tower Corp. — Class A	2.2%
Simon Property Group, Inc.	2.0%
Crown Castle International Corp.	1.9%
Equinix, Inc.	1.8%
Public Storage	1.7%
Prologis, Inc.	1.6%
Equity Residential	1.4%
Weyerhaeuser Co.	1.4%
Welltower, Inc.	1.4%
AvalonBay Communities, Inc.	1.4%
Top Ten Total	16.8%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	1.97%	2.62%	7.00%	2.70%
A-Class Shares with sales charge‡	(2.87%)	(2.25%)	5.97%	2.20%
C-Class Shares	1.59%	1.84%	6.20%	1.90%
C-Class Shares with CDSC§	0.59%	0.89%	6.20%	1.90%
H-Class Shares	1.98%	2.63%	6.98%	2.68%
MSCI U.S. REIT Index	2.59%	0.54%	9.58%	5.79%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

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

106 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
REITs - 96.1%
REITs-Diversified - 24.7 %
American Tower Corp. — Class A		5,223	$	713,879
Crown Castle International Corp.		5,962		596,080
Equinix, Inc.		1,277		569,924
Weyerhaeuser Co.		13,568		461,719
Digital Realty Trust, Inc.		3,476		411,315
SBA Communications Corp.*		2,725		392,536
Vornado Realty Trust		4,726		363,335
Duke Realty Corp.		10,023		288,863
Gaming and Leisure Properties, Inc.		7,189		265,202
Lamar Advertising Co. — Class A		3,787		259,523
WP Carey, Inc.		3,670		247,321
Colony NorthStar, Inc. — Class A		18,492		232,260
Forest City Realty Trust, Inc. — Class A		9,092		231,937
CoreSite Realty Corp.		1,926		215,519
New Residential Investment Corp.		12,602		210,831
EPR Properties		2,981		207,895
STORE Capital Corp.		7,959		197,940
Outfront Media, Inc.		7,707		194,062
Rayonier, Inc.		6,458		186,572
PS Business Parks, Inc.		1,353		180,626
Cousins Properties, Inc.		19,175		179,095
GEO Group, Inc.		6,450		173,505
CoreCivic, Inc.		6,280		168,116
Retail Properties of America, Inc. — Class A		11,859		155,709
STAG Industrial, Inc.		5,498		151,030
Washington Real Estate Investment Trust		4,602		150,762
Lexington Realty Trust		14,130		144,409
Potlatch Corp.		2,670		136,170
Uniti Group, Inc.		9,237		135,414
American Assets Trust, Inc.		3,241		128,895
Total REITs-Diversified				7,950,444
REITs-Office Property - 11.7%
Boston Properties, Inc.		3,365		413,491
SL Green Realty Corp.		3,034		307,405
Alexandria Real Estate Equities, Inc.		2,581		307,062
Kilroy Realty Corp.		3,517		250,129
VEREIT, Inc.		30,127		249,753
Douglas Emmett, Inc.		6,071		239,319
Hudson Pacific Properties, Inc.		6,599		221,264
Highwoods Properties, Inc.		4,188		218,153
Equity Commonwealth*		6,013		182,795
Paramount Group, Inc.1		11,016		176,256
Corporate Office Properties Trust		5,242		172,095
Empire State Realty Trust, Inc. — Class A		8,310		170,687
Brandywine Realty Trust		9,358		163,671
Piedmont Office Realty Trust, Inc. — Class A		7,971		160,695
Columbia Property Trust, Inc.		7,102		154,611
Mack-Cali Realty Corp.		5,915		140,245
Government Properties Income Trust		6,794		127,523
New York REIT, Inc.*		14,059		110,363
Total REITs-Office Property				3,765,517
REITs-Apartments - 10.9 %
Equity Residential		7,027		463,290
AvalonBay Communities, Inc.		2,561		456,934
Essex Property Trust, Inc.		1,549		393,492
Mid-America Apartment Communities, Inc.		3,096		330,900
UDR, Inc.		7,872		299,372
Camden Property Trust		2,843		259,992
Invitation Homes, Inc.1		11,030		249,830
Apartment Investment & Management Co. — Class A		5,555		243,642
American Homes 4 Rent — Class A		10,499		227,933
American Campus Communities, Inc.		4,999		220,706
Starwood Waypoint Homes		5,748		209,055
Education Realty Trust, Inc.		4,035		144,978
Total REITs-Apartments				3,500,124
REITs-Health Care - 9.2%
Welltower, Inc.		6,556		460,756
Ventas, Inc.		6,768		440,800
HCP, Inc.		11,574		322,104
Omega Healthcare Investors, Inc.1		7,250		231,348
Healthcare Trust of America, Inc. — Class A		7,623		227,165
Medical Properties Trust, Inc.		15,143		198,828
Senior Housing Properties Trust		9,991		195,324
Healthcare Realty Trust, Inc.		5,674		183,497
Sabra Health Care REIT, Inc.		7,561		165,888
Physicians Realty Trust		8,983		159,269
National Health Investors, Inc.		2,059		159,140
Quality Care Properties, Inc.*		7,603		117,847
CareTrust REIT, Inc.		5,870		111,765
Total REITs-Health Care				2,973,731
REITs-Hotels - 7.0%
Host Hotels & Resorts, Inc.		17,496		323,501
MGM Growth Properties LLC — Class A1		8,165		246,665
Park Hotels & Resorts, Inc.		8,160		224,890
Hospitality Properties Trust		7,116		202,735
Apple Hospitality REIT, Inc.		9,818		185,658
Sunstone Hotel Investors, Inc.		10,836		174,135
Ryman Hospitality Properties, Inc.		2,721		170,035
LaSalle Hotel Properties		5,838		169,419
RLJ Lodging Trust		6,920		152,241
Pebblebrook Hotel Trust1		4,105		148,355
DiamondRock Hospitality Co.		12,418		135,977
Summit Hotel Properties, Inc.		7,640		122,164
Total REITs-Hotels				2,255,775
REITs-Shopping Centers - 6.3%
Regency Centers Corp.		4,873		302,321
Federal Realty Investment Trust		2,145		266,430
Kimco Realty Corp.		13,113		256,359
Brixmor Property Group, Inc.		11,270		211,876
Weingarten Realty Investors		5,863		186,092

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
REAL ESTATE FUND

	Shares		Value
DDR Corp.		17,102	$	156,654
Urban Edge Properties		6,212		149,833
Acadia Realty Trust		4,958		141,898
Retail Opportunity Investments Corp.		7,077		134,534
Kite Realty Group Trust		5,992		121,338
Ramco-Gershenson Properties Trust		7,069		91,968
Total REITs-Shopping Centers				2,019,303
REITs-Regional Malls - 5.8%
Simon Property Group, Inc.		4,083		657,403
GGP, Inc.		17,550		364,514
Macerich Co.		4,718		259,348
Taubman Centers, Inc.		3,228		160,432
Tanger Factory Outlet Centers, Inc.		5,815		142,002
Washington Prime Group, Inc.		13,778		114,771
CBL & Associates Properties, Inc.1		12,741		106,897
Pennsylvania Real Estate Investment Trust		7,630		80,039
Total REITs-Regional Malls				1,885,406
REITs-Mortgage - 5.8 %
Annaly Capital Management, Inc.		26,922		328,179
AGNC Investment Corp.		12,181		264,084
Starwood Property Trust, Inc.		10,210		221,761
Chimera Investment Corp.		9,167		173,440
Two Harbors Investment Corp.		16,820		169,546
MFA Financial, Inc.		19,203		168,218
Blackstone Mortgage Trust, Inc. — Class A		5,295		164,251
Invesco Mortgage Capital, Inc.		7,878		134,950
Apollo Commercial Real Estate Finance, Inc.		7,252		131,334
CYS Investments, Inc.		12,123		104,743
Total REITs-Mortgage				1,860,506
REITs-Warehouse/Industries - 5.7 %
Prologis, Inc.		8,080		512,756
Liberty Property Trust		5,504		225,994
CyrusOne, Inc.		3,674		216,509
DCT Industrial Trust, Inc.		3,687		213,551
Gramercy Property Trust		6,542		197,896
First Industrial Realty Trust, Inc.		5,734		172,536
EastGroup Properties, Inc.1		1,829		161,171
QTS Realty Trust, Inc. — Class A		2,861		149,802
Total REITs-Warehouse/Industries				1,850,215
REITs-Storage - 4.7%
Public Storage		2,589		554,019
Iron Mountain, Inc.		7,748		301,397
Extra Space Storage, Inc.		3,753		299,940
CubeSmart		7,648		198,542
Life Storage, Inc.		2,118		173,274
Total REITs-Storage				1,527,172
REITs-Single Tenant - 2.8 %
Realty Income Corp.		6,376		364,643
National Retail Properties, Inc.		5,519		229,922
Spirit Realty Capital, Inc.		20,415		174,957
Select Income REIT		5,886		137,850
Total REITs-Single Tenant				907,372
REITs-Manufactured Homes -1.5%
Equity LifeStyle Properties, Inc.		2,991		254,474
Sun Communities, Inc.		2,835		242,903
Total REITs-Manufactured Homes				497,377
Total REITs				30,992,942
Real Estate - 3.4%
Real Estate Management/Services - 2.7%
CBRE Group, Inc. — Class A*		8,577		324,897
Jones Lang LaSalle, Inc.		1,747		215,755
Realogy Holdings Corp.		5,993		197,469
Kennedy-Wilson Holdings, Inc.		7,347		136,287
Total Real Estate Management/Services				874,408
Real Estate Operations/Development - 0.7%
Howard Hughes Corp.*		1,842		217,227
Total Real Estate				1,091,635
Total Common Stocks
(Cost $30,669,247)				32,084,577
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	83,250		83,250
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		41,624		41,624
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		41,592		41,592
Total Repurchase Agreements
(Cost $166,466)				166,466
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.2%
First American Government Obligations Fund — Class Z, 0.89%4		708,933		708,933
Total Securities Lending Collateral
(Cost $708,933)				708,933
Total Investments - 102.2%
(Cost $31,544,646)			$	32,959,976
Other Assets & Liabilities, net - (2.2)%				(697,492	)
Total Net Assets - 100.0%			$	32,262,484

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
REAL ESTATE 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	32,084,577	$	—	$	—	$	32,084,577
Repurchase Agreements		—		166,466		—		166,466
Securities Lending Collateral		708,933		—		—		708,933
Total Assets	$	32,793,510	$	166,466	$	—	$	32,959,976

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $689,315 of securities loaned (cost $31,378,180)	$	32,793,511
Repurchase agreements, at value (cost $166,466)		166,466
Cash		780
Receivables:
Securities sold		396,282
Fund shares sold		212,709
Dividends		174,653
Securities lending income		52
Interest		9
Total assets		33,744,462
Liabilities:
Payable for:
Return of securities loaned		708,933
Fund shares redeemed		661,985
Securities purchased		59,118
Management fees		24,444
Distribution and service fees		7,933
Transfer agent and administrative fees		7,189
Portfolio accounting fees		2,876
Miscellaneous		9,500
Total liabilities		1,481,978
Commitments and contingent liabilities (Note 10)		—
Net assets	$	32,262,484
Net assets consist of:
Paid in capital	$	37,220,644
Undistributed net investment income		302,619
Accumulated net realized loss on investments		(6,676,109	)
Net unrealized appreciation on investments		1,415,330
Net assets	$	32,262,484
A-Class:
Net assets	$	6,928,300
Capital shares outstanding		180,914
Net asset value per share	$	38.30
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.20
C-Class:
Net assets	$	1,198,545
Capital shares outstanding		35,457
Net asset value per share	$	33.80
H-Class:
Net assets	$	24,135,639
Capital shares outstanding		631,949
Net asset value per share	$	38.19

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $236)	$	533,131
Interest		508
Income from securities lending, net		353
Total investment income		533,992
Expenses:
Management fees		104,512
Distribution and service fees:
A-Class		9,977
C-Class		5,185
H-Class		19,466
Transfer agent and administrative fees		30,739
Portfolio accounting fees		12,295
Custodian fees		1,565
Trustees’ fees*		486
Line of credit fees		97
Miscellaneous		21,410
Total expenses		205,732
Net investment income		328,260
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(263,562	)
Net realized loss		(263,562	)
Net change in unrealized appreciation (depreciation) on:
Investments		169,697
Net change in unrealized appreciation (depreciation)		169,697
Net realized and unrealized loss		(93,865	)
Net increase in net assets resulting from operations	$	234,395

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

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

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	328,260		$	289,865
Net realized gain (loss) on investments		(263,562	)		9,807,974
Net change in unrealized appreciation (depreciation) on investments		169,697			(5,277,557	)
Net increase in net assets resulting from operations		234,395			4,820,282
Distributions to shareholders from:
Net investment income
A-Class		—			(210,089	)
C-Class		—			(95,358	)
H-Class		—			(528,698	)
Total distributions to shareholders		—			(834,145	)
Capital share transactions:
Proceeds from sale of shares
A-Class		24,774,022			13,401,514
C-Class		1,378,757			6,904,190
H-Class		160,649,830			489,324,519
Distributions reinvested
A-Class		—			203,192
C-Class		—			93,788
H-Class		—			527,824
Cost of shares redeemed
A-Class		(19,828,363	)		(21,614,444	)
C-Class		(1,190,897	)		(7,926,493	)
H-Class		(142,838,707	)		(521,490,995	)
Net increase (decrease) from capital share transactions		22,944,642			(40,576,905	)
Net increase (decrease) in net assets		23,179,037			(36,590,768	)
Net assets:
Beginning of period		9,083,447			45,674,215
End of period	$	32,262,484		$	9,083,447
Undistributed net investment income/Accumulated net investment loss at end of period	$	302,619		$	(25,641	)
Capital share activity:
Shares sold
A-Class		652,853			349,580
C-Class		40,847			198,544
H-Class		4,234,711			12,883,150
Shares issued from reinvestment of distributions
A-Class		—			5,852
C-Class		—			3,040
H-Class		—			15,242
Shares redeemed
A-Class		(518,868	)		(555,720	)
C-Class		(35,403	)		(229,590	)
H-Class		(3,771,583	)		(13,656,756	)
Net increase (decrease) in shares		602,557			(986,658	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	37.55		$	37.31		$	38.34		$	33.47		$	34.43		$	30.27
Income (loss) from investment operations:
Net investment income (loss)b		.40			.34			.65			.42			.65			.58
Net gain (loss) on investments (realized and unrealized)		.35			2.15			(1.24	)		4.77			(.14	)		4.18
Total from investment operations		.75			2.49			(.59	)		5.19			.51			4.76
Less distributions from:
Net investment income		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Total distributions		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Net asset value, end of period	$	38.30		$	37.55		$	37.31		$	38.34		$	33.47		$	34.43
Total Returnc		1.97	%		7.17	%		(1.46	%)		15.58	%		1.86	%		16.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,928		$	1,762		$	9,223		$	6,329		$	4,124		$	12,495
Ratios to average net assets:
Net investment income (loss)		2.10	%		0.89	%		1.82	%		1.13	%		1.92	%		1.82	%
Total expenses		1.64	%		1.63	%		1.62	%		1.60	%		1.65	%		1.61	%
Portfolio turnover rate		547	%		1,060	%		880	%		599	%		788	%		699	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	33.28		$	33.56		$	34.81		$	30.64		$	31.89		$	28.29
Income (loss) from investment operations:
Net investment income (loss)b		.11			.19			.22			.23			.29			.27
Net gain (loss) on investments (realized and unrealized)		.41			1.78			(1.03	)		4.26			(.07	)		3.93
Total from investment operations		.52			1.97			(.81	)		4.49			.22			4.20
Less distributions from:
Net investment income		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Total distributions		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Net asset value, end of period	$	33.80		$	33.28		$	33.56		$	34.81		$	30.64		$	31.89
Total Returnc		1.59	%		6.37	%		(2.25	%)		14.73	%		1.09	%		15.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,199		$	999		$	1,947		$	2,937		$	2,497		$	2,910
Ratios to average net assets:
Net investment income (loss)		0.63	%		0.56	%		0.69	%		0.70	%		0.93	%		0.92	%
Total expenses		2.39	%		2.38	%		2.36	%		2.35	%		2.38	%		2.35	%
Portfolio turnover rate		547	%		1,060	%		880	%		599	%		788	%		699	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	37.45		$	37.21		$	38.25		$	33.40		$	34.38		$	30.23
Income (loss) from investment operations:
Net investment income (loss)b		.59			.27			.71			.48			.52			.46
Net gain (loss) on investments (realized and unrealized)		.15			2.22			(1.31	)		4.69			(.03	)		4.29
Total from investment operations		.74			2.49			(.60	)		5.17			.49			4.75
Less distributions from:
Net investment income		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Total distributions		—			(2.25	)		(.44	)		(.32	)		(1.47	)		(.60	)
Net asset value, end of period	$	38.19		$	37.45		$	37.21		$	38.25		$	33.40		$	34.38
Total Returnc		1.98	%		7.18	%		(1.49	%)		15.55	%		1.84	%		15.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,136		$	6,322		$	34,504		$	37,625		$	19,753		$	10,273
Ratios to average net assets:
Net investment income (loss)		3.10	%		0.70	%		1.97	%		1.32	%		1.52	%		1.45	%
Total expenses		1.64	%		1.62	%		1.62	%		1.60	%		1.64	%		1.60	%
Portfolio turnover rate		547	%		1,060	%		880	%		599	%		788	%		699	%

a	Unaudited figures for the period ended September 30, 2017. 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 | 113

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	May 9, 2001
H-Class	April 21, 1998

Ten Largest Holdings (% of Total Net Assets)
Amazon.com, Inc.	7.4%
Wal-Mart Stores, Inc.	5.5%
Home Depot, Inc.	4.9%
Priceline Group, Inc.	3.4%
Walgreens Boots Alliance, Inc.	3.2%
CVS Health Corp.	3.1%
Netflix, Inc.	3.1%
Costco Wholesale Corp.	3.0%
Lowe's Companies, Inc.	2.9%
TJX Companies, Inc.	2.5%
Top Ten Total	39.0%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	1.68%	3.26%	8.64%	7.31%
A-Class Shares	1.57%	3.03%	8.41%	7.08%
A-Class Shares with sales charge‡	(3.26%)	(1.86%)	7.36%	6.56%
C-Class Shares	1.23%	2.26%	7.57%	6.26%
C-Class Shares with CDSC§	0.23%	1.26%	7.57%	6.26%
H-Class Shares**	1.57%	3.07%	8.26%	6.89%
S&P 500 Consumer Discretionary Index	3.21%	14.52%	15.93%	11.28%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

114 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Retail - 70.9%
Wal-Mart Stores, Inc.		9,739	$	761,006
Home Depot, Inc.		4,195		686,135
Walgreens Boots Alliance, Inc.		5,723		441,930
CVS Health Corp.		5,348		434,899
Costco Wholesale Corp.		2,539		417,132
Lowe’s Companies, Inc.		5,061		404,576
TJX Companies, Inc.		4,657		343,361
Target Corp.		4,645		274,101
Ross Stores, Inc.		4,006		258,667
Dollar General Corp.		3,020		244,771
Dollar Tree, Inc.*		2,647		229,813
O’Reilly Automotive, Inc.*		1,024		220,539
Best Buy Company, Inc.		3,756		213,942
AutoZone, Inc.*		341		202,933
Genuine Parts Co.		2,043		195,413
CarMax, Inc.*		2,503		189,752
Ulta Beauty, Inc.*		825		186,500
Tiffany & Co.		1,842		169,059
L Brands, Inc.		4,052		168,604
Gap, Inc.		5,561		164,216
Tractor Supply Co.		2,225		140,820
Nordstrom, Inc.		2,970		140,036
Kohl’s Corp.		2,945		134,439
Advance Auto Parts, Inc.		1,345		133,424
Burlington Stores, Inc.*		1,374		131,162
Macy’s, Inc.		5,819		126,971
AutoNation, Inc.*,1		2,268		107,639
Foot Locker, Inc.		2,991		105,343
Williams-Sonoma, Inc.1		2,074		103,410
Penske Automotive Group, Inc.		2,126		101,134
Signet Jewelers Ltd.1		1,511		100,557
Michaels Companies, Inc.*		4,638		99,578
Five Below, Inc.*		1,690		92,747
Lithia Motors, Inc. — Class A		730		87,826
Dick’s Sporting Goods, Inc.		3,172		85,676
Ollie’s Bargain Outlet Holdings, Inc.*		1,811		84,030
Urban Outfitters, Inc.*		3,497		83,578
Bed Bath & Beyond, Inc.		3,510		82,380
American Eagle Outfitters, Inc.		5,699		81,496
PriceSmart, Inc.		912		81,396
Big Lots, Inc.		1,518		81,319
Sally Beauty Holdings, Inc.*		3,880		75,970
Office Depot, Inc.		16,297		73,988
GameStop Corp. — Class A		3,512		72,558
Children’s Place, Inc.		609		71,953
HSN, Inc.		1,814		70,837
DSW, Inc. — Class A		3,189		68,500
Guess?, Inc.1		3,703		63,062
Dillard’s, Inc. — Class A1		1,113		62,406
Group 1 Automotive, Inc.		826		59,852
Chico’s FAS, Inc.		6,341		56,752
Asbury Automotive Group, Inc.*		890		54,379
Lumber Liquidators Holdings, Inc.*		1,386		54,026
J.C. Penney Company, Inc.*		13,232		50,414
Conn’s, Inc.*		1,758		49,488
RH*,1		692		48,661
Abercrombie & Fitch Co. — Class A		3,273		47,262
Sears Holdings Corp.*		6,320		46,136
Tailored Brands, Inc.1		2,830		40,865
Finish Line, Inc. — Class A1		3,277		39,422
Genesco, Inc.*		1,474		39,208
PetMed Express, Inc.		1,170		38,786
Express, Inc.*		5,565		37,619
Tile Shop Holdings, Inc.		2,912		36,982
GNC Holdings, Inc. — Class A1		4,034		35,661
Zumiez, Inc.*		1,797		32,526
Francesca’s Holdings Corp.*		3,808		28,027
Pier 1 Imports, Inc.		6,669		27,943
Hibbett Sports, Inc.*		1,881		26,804
Fred’s, Inc. — Class A1		3,506		22,579
Big 5 Sporting Goods Corp.		2,701		20,663
Total Retail				9,845,639
Internet - 22.8%
Amazon.com, Inc.*		1,079		1,037,296
Priceline Group, Inc.*		261		477,844
Netflix, Inc.*		2,339		424,178
JD.com, Inc. ADR*		6,507		248,567
Expedia, Inc.		1,670		240,380
Ctrip.com International Ltd. ADR*		3,768		198,724
TripAdvisor, Inc.*,1		2,832		114,781
Vipshop Holdings Ltd. ADR*		12,552		110,332
Wayfair, Inc. — Class A*		1,542		103,931
Liberty Expedia Holdings, Inc. — Class A*		1,672		88,800
Etsy, Inc.*		3,868		65,292
Shutterfly, Inc.*		1,287		62,394
Total Internet				3,172,519
Distribution & Wholesale - 2.4%
LKQ Corp.*		4,615		166,094
Pool Corp.		966		104,492
Core-Mark Holding Company, Inc.		1,960		62,994
Total Distribution & Wholesale				333,580
Commercial Services - 1.9%
Aaron’s, Inc.		2,101		91,667
Monro, Inc.		1,248		69,950
NutriSystem, Inc.		1,242		69,428
Rent-A-Center, Inc.		3,250		37,310
Total Commercial Services				268,355
Oil & Gas - 0.6%
Murphy USA, Inc.*		1,171		80,799
Home Furnishings - 0.4%
Select Comfort Corp.*		1,942		60,299

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
RETAILING FUND

	Shares		Value
Leisure Time - 0.3%
Liberty TripAdvisor Holdings, Inc. — Class A*		3,712	$	45,843
Total Common Stocks
(Cost $10,771,427)				13,807,034

	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.1%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	75,526	75,526
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		37,763	37,763
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		37,734	37,734
Total Repurchase Agreements
(Cost $151,023)			151,023

	Shares
SECURITIES LENDING COLLATERAL†,3 - 5.3%
First American Government Obligations Fund — Class Z, 0.89%4		729,872		729,872
Total Securities Lending Collateral
(Cost $729,872)				729,872
Total Investments - 105.7%
(Cost $11,652,322)			$	14,687,929
Other Assets & Liabilities, net - (5.7)%				(790,275	)
Total Net Assets - 100.0%			$	13,897,654

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	13,807,034	$	—	$	—	$	13,807,034
Repurchase Agreements		—		151,023		—		151,023
Securities Lending Collateral		729,872		—		—		729,872
Total Assets	$	14,536,906	$	151,023	$	—	$	14,687,929

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $703,612 of securities loaned (cost $11,501,299)	$	14,536,906
Repurchase agreements, at value (cost $151,023)		151,023
Receivables:
Securities sold		4,017,456
Fund shares sold		180,049
Dividends		9,296
Securities lending income		1,322
Interest		8
Total assets		18,896,060
Liabilities:
Payable for:
Fund shares redeemed		4,241,452
Return of securities loaned		729,872
Management fees		13,775
Transfer agent and administrative fees		4,051
Distribution and service fees		1,756
Portfolio accounting fees		1,621
Miscellaneous		5,879
Total liabilities		4,998,406
Commitments and contingent liabilities (Note 10)		—
Net assets	$	13,897,654
Net assets consist of:
Paid in capital	$	13,578,828
Undistributed net investment income		54,126
Accumulated net realized loss on investments		(2,770,907	)
Net unrealized appreciation on investments		3,035,607
Net assets	$	13,897,654
Investor Class:
Net assets	$	10,818,835
Capital shares outstanding		397,372
Net asset value per share	$	27.23
A-Class:
Net assets	$	1,190,838
Capital shares outstanding		46,077
Net asset value per share	$	25.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	27.13
C-Class:
Net assets	$	1,507,337
Capital shares outstanding		65,249
Net asset value per share	$	23.10
H-Class:
Net assets	$	380,644
Capital shares outstanding		15,095
Net asset value per share	$	25.22

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $842)	$	178,431
Interest		385
Income from securities lending, net		15,766
Total investment income		194,582
Expenses:
Management fees		78,048
Distribution and service fees:
A-Class		1,508
C-Class		8,028
H-Class		3,149
Transfer agent and administrative fees		22,955
Registration fees		13,327
Portfolio accounting fees		9,182
Custodian fees		1,260
Trustees’ fees*		867
Line of credit fees		115
Miscellaneous		2,017
Total expenses		140,456
Net investment income		54,126
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		406,319
Net realized gain		406,319
Net change in unrealized appreciation (depreciation) on:
Investments		(383,368	)
Net change in unrealized appreciation (depreciation)		(383,368	)
Net realized and unrealized gain		22,951
Net increase in net assets resulting from operations	$	77,077

* 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 | 117

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	54,126		$	(15,106	)
Net realized gain on investments		406,319			4,196,154
Net change in unrealized appreciation (depreciation) on investments		(383,368	)		(4,955,206	)
Net increase (decrease) in net assets resulting from operations		77,077			(774,158	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		53,022,275			118,388,461
A-Class		1,245,663			2,184,386
C-Class		581,100			1,975,138
H-Class		136,732,869			44,643,931
Cost of shares redeemed
Investor Class		(50,806,653	)		(119,709,090	)
A-Class		(1,285,960	)		(7,079,757	)
C-Class		(682,027	)		(2,867,907	)
H-Class		(136,712,776	)		(47,551,893	)
Net increase (decrease) from capital share transactions		2,094,491			(10,016,731	)
Net increase (decrease) in net assets		2,171,568			(10,790,889	)
Net assets:
Beginning of period		11,726,086			22,516,975
End of period	$	13,897,654		$	11,726,086
Undistributed net investment income at end of period	$	54,126		$	—
Capital share activity:
Shares sold
Investor Class		1,973,011			4,468,767
A-Class		48,636			86,254
C-Class		25,060			87,780
H-Class		5,625,475			1,886,660
Shares redeemed
Investor Class		(1,892,991	)		(4,531,899	)
A-Class		(50,381	)		(284,154	)
C-Class		(29,949	)		(126,634	)
H-Class		(5,626,916	)		(2,006,027	)
Net increase (decrease) in shares		71,946			(419,253	)

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	26.78		$	26.98		$	28.13		$	23.54		$	19.62		$	17.45
Income (loss) from investment operations:
Net investment income (loss)b		.10			.03			(.03	)		.11			—	c		.09
Net gain (loss) on investments (realized and unrealized)		.35			(.23	)		(1.10	)		4.48			3.92			2.08
Total from investment operations		.45			(.20	)		(1.13	)		4.59			3.92			2.17
Less distributions from:
Net investment income		—			—			(.02	)		—			—			—
Total distributions		—			—			(.02	)		—			—			—
Net asset value, end of period	$	27.23		$	26.78		$	26.98		$	28.13		$	23.54		$	19.62
Total Returnd		1.68	%		(0.74	%)		(4.01	%)		19.50	%		19.98	%		12.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,819		$	8,497		$	10,265		$	46,283		$	65,195		$	14,671
Ratios to average net assets:
Net investment income (loss)		0.78	%		0.10	%		(0.10	%)		0.42	%		0.01	%		0.51	%
Total expenses		1.39	%		1.37	%		1.34	%		1.33	%		1.37	%		1.35	%
Portfolio turnover rate		1,106	%		887	%		238	%		395	%		671	%		472	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	25.44		$	25.69		$	26.85		$	22.48		$	18.79		$	16.77
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.08	)		(.09	)		.06			(.09	)		.03
Net gain (loss) on investments (realized and unrealized)		.37			(.17	)		(1.05	)		4.31			3.78			1.99
Total from investment operations		.40			(.25	)		(1.14	)		4.37			3.69			2.02
Less distributions from:
Net investment income		—			—			(.02	)		—			—			—
Total distributions		—			—			(.02	)		—			—			—
Net asset value, end of period	$	25.84		$	25.44		$	25.69		$	26.85		$	22.48		$	18.79
Total Returnd		1.57	%		(0.97	%)		(4.24	%)		19.44	%		19.64	%		12.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,191		$	1,217		$	6,313		$	19,502		$	2,049		$	1,500
Ratios to average net assets:
Net investment income (loss)		0.21	%		(0.34	%)		(0.36	%)		0.25	%		(0.42	%)		0.20	%
Total expenses		1.64	%		1.62	%		1.60	%		1.58	%		1.62	%		1.59	%
Portfolio turnover rate		1,106	%		887	%		238	%		395	%		671	%		472	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	22.83		$	23.23		$	24.46		$	20.64		$	17.40		$	15.62
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.23	)		(.24	)		(.19	)		(.23	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		.33			(.17	)		(.97	)		4.01			3.47			1.84
Total from investment operations		.27			(.40	)		(1.21	)		3.82			3.24			1.78
Less distributions from:
Net investment income		—			—			(.02	)		—			—			—
Total distributions		—			—			(.02	)		—			—			—
Net asset value, end of period	$	23.10		$	22.83		$	23.23		$	24.46		$	20.64		$	17.40
Total Returnd		1.23	%		(1.76	%)		(4.94	%)		18.51	%		18.62	%		11.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,507		$	1,601		$	2,532		$	3,455		$	2,503		$	1,831
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(1.00	%)		(1.04	%)		(0.88	%)		(1.16	%)		(0.39	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.34	%		2.37	%		2.35	%
Portfolio turnover rate		1,106	%		887	%		238	%		395	%		671	%		472	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	24.83		$	25.07		$	26.22		$	22.00		$	18.45		$	16.45
Income (loss) from investment operations:
Net investment income (loss)b		.06			(—	)c		(.11	)		.01			(.14	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		.33			(.24	)		(1.02	)		4.21			3.69			2.01
Total from investment operations		.39			(.24	)		(1.13	)		4.22			3.55			2.00
Less distributions from:
Net investment income		—			—			(.02	)		—			—			—
Total distributions		—			—			(.02	)		—			—			—
Net asset value, end of period	$	25.22		$	24.83		$	25.07		$	26.22		$	22.00		$	18.45
Total Returnd		1.57	%		(0.96	%)		(4.31	%)		19.18	%		19.24	%		12.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	381		$	411		$	3,407		$	8,871		$	5,391		$	2,454
Ratios to average net assets:
Net investment income (loss)		0.48	%		(—	)f		(0.44	%)		0.05	%		(0.64	%)		(0.05	%)
Total expenses		1.64	%		1.62	%		1.71	%		1.83	%		1.87	%		1.85	%
Portfolio turnover rate		1,106	%		887	%		238	%		395	%		671	%		472	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.
f	Less than (0.01)%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 18, 2001
H-Class	April 29, 1998

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.4%
Alphabet, Inc. — Class A	3.2%
Microsoft Corp.	2.8%
Facebook, Inc. — Class A	2.6%
Visa, Inc. — Class A	1.8%
Intel Corp.	1.6%
Cisco Systems, Inc.	1.6%
Oracle Corp.	1.6%
Mastercard, Inc. — Class A	1.4%
International Business Machines Corp.	1.4%
Top Ten Total	21.4%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	13.28%	25.31%	16.00%	7.07%
A-Class Shares	13.12%	24.99%	15.71%	6.76%
A-Class Shares with sales charge‡	7.74%	19.06%	14.59%	6.24%
C-Class Shares	12.72%	24.08%	14.85%	6.00%
C-Class Shares with CDSC§	11.72%	23.08%	14.85%	6.00%
H-Class Shares**	13.12%	25.02%	15.57%	6.58%
S&P 500 Information Technology Index	13.14%	28.88%	17.44%	10.94%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 121

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Software – 23.4%
Microsoft Corp.		36,295	$	2,703,614
Oracle Corp.		30,948		1,496,335
Adobe Systems, Inc.*		6,338		945,503
salesforce.com, Inc.*		9,888		923,737
Activision Blizzard, Inc.		12,102		780,700
VMware, Inc. — Class A*,1		6,668		728,079
Intuit, Inc.		4,831		686,678
Electronic Arts, Inc.*		5,761		680,144
NetEase, Inc. ADR		2,570		677,992
Fidelity National Information Services, Inc.		6,883		642,803
Fiserv, Inc.*		4,756		613,334
Autodesk, Inc.*		4,967		557,595
Paychex, Inc.		8,984		538,681
Workday, Inc. — Class A*		4,990		525,896
ServiceNow, Inc.*		4,350		511,256
Red Hat, Inc.*		4,589		508,737
Momo, Inc. ADR*		15,280		478,875
First Data Corp. — Class A*		26,125		471,295
CA, Inc.		12,733		425,028
Synopsys, Inc.*		4,900		394,597
Citrix Systems, Inc.*		5,048		387,787
Cadence Design Systems, Inc.*		9,695		382,662
Take-Two Interactive Software, Inc.*		3,654		373,548
ANSYS, Inc.*		2,910		357,144
CDK Global, Inc.		5,639		355,765
Broadridge Financial Solutions, Inc.		4,305		347,930
SS&C Technologies Holdings, Inc.		8,500		341,275
Splunk, Inc.*		5,070		336,800
Akamai Technologies, Inc.*		6,792		330,906
Jack Henry & Associates, Inc.		3,172		326,050
PTC, Inc.*		5,253		295,639
Tyler Technologies, Inc.*		1,693		295,124
Tableau Software, Inc. — Class A*		3,650		273,349
Ultimate Software Group, Inc.*		1,424		269,990
Paycom Software, Inc.*		3,200		239,872
Aspen Technology, Inc.*		3,800		238,678
Blackbaud, Inc.		2,700		237,060
Nuance Communications, Inc.*		14,870		233,756
j2 Global, Inc.		2,963		218,906
RealPage, Inc.*		5,300		211,470
CommVault Systems, Inc.*		3,130		190,304
Manhattan Associates, Inc.*		4,565		189,767
Verint Systems, Inc.*		4,400		184,140
Twilio, Inc. — Class A*,1		6,010		179,399
Cornerstone OnDemand, Inc.*		4,050		164,471
Synchronoss Technologies, Inc.*		6,000		55,980
Total Software				22,308,651
Semiconductors - 18.9%
Intel Corp.		40,017		1,523,848
NVIDIA Corp.		6,596		1,179,167
Broadcom Ltd.		4,666		1,131,692
Texas Instruments, Inc.		12,247		1,097,821
QUALCOMM, Inc.		19,528		1,012,332
Applied Materials, Inc.		16,490		858,964
Micron Technology, Inc.*		19,155		753,366
Analog Devices, Inc.		7,461		642,914
NXP Semiconductor N.V.*		5,517		623,918
Lam Research Corp.		3,366		622,845
Taiwan Semiconductor Manufacturing Company Ltd. ADR		15,751		591,450
ASML Holding N.V. — Class G		3,200		547,840
Marvell Technology Group Ltd.		30,189		540,383
Microchip Technology, Inc.		5,616		504,204
Xilinx, Inc.		6,743		477,607
Skyworks Solutions, Inc.		4,667		475,567
KLA-Tencor Corp.		4,448		471,488
Maxim Integrated Products, Inc.		8,673		413,789
Advanced Micro Devices, Inc.*		31,877		406,432
IPG Photonics Corp.*		1,955		361,792
Qorvo, Inc.*		4,698		332,055
ON Semiconductor Corp.*		17,511		323,428
Teradyne, Inc.		8,298		309,432
Microsemi Corp.*		5,531		284,736
MKS Instruments, Inc.		2,725		257,376
Cypress Semiconductor Corp.		16,858		253,207
Cavium, Inc.*		3,710		244,637
Monolithic Power Systems, Inc.		2,220		236,541
Entegris, Inc.*		7,720		222,722
Silicon Laboratories, Inc.*		2,610		208,539
Cirrus Logic, Inc.*		3,761		200,537
Integrated Device Technology, Inc.*		7,458		198,234
MACOM Technology Solutions Holdings, Inc.*		4,400		196,284
Ambarella, Inc.*,1		3,435		168,349
Inphi Corp.*		3,800		150,822
Synaptics, Inc.*		3,352		131,331
Total Semiconductors				17,955,649
Internet - 17.3%
Alphabet, Inc. — Class A*		3,111		3,029,242
Facebook, Inc. — Class A*		14,721		2,515,376
Alibaba Group Holding Ltd. ADR*		7,473		1,290,661
Baidu, Inc. ADR*		3,667		908,279
eBay, Inc.*		18,146		697,895
Wix.com Ltd.*		7,000		502,950
Shopify, Inc. — Class A*		4,240		493,918
SINA Corp.*		4,267		489,212
MercadoLibre, Inc.		1,883		487,565
Symantec Corp.		14,851		487,261
Weibo Corp. ADR*,1		4,924		487,181
Snap, Inc. — Class A*,1		32,600		474,004
Palo Alto Networks, Inc.*		2,738		394,546
CDW Corp.		5,788		382,008
Twitter, Inc.*		22,033		371,697
VeriSign, Inc.*		3,484		370,663
IAC/InterActiveCorp*		2,950		346,861
F5 Networks, Inc.*		2,738		330,093
Zillow Group, Inc. — Class C*		7,718		310,341
GoDaddy, Inc. — Class A*		6,960		302,830

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
TECHNOLOGY FUND

	Shares		Value
GrubHub, Inc.*		4,510	$	237,497
Proofpoint, Inc.*		2,620		228,516
Yelp, Inc. — Class A*		4,972		215,288
Stamps.com, Inc.*		1,058		214,404
FireEye, Inc.*,1		10,880		182,458
Trade Desk, Inc. — Class A*		2,800		172,228
Cars.com, Inc.*,1		5,800		154,338
Pandora Media, Inc.*,1		19,734		151,952
Imperva, Inc.*		3,300		143,220
TrueCar, Inc.*,1		8,560		135,162
Total Internet				16,507,646
Computers - 14.5%
Apple, Inc.		20,762		3,199,839
International Business Machines Corp.		9,108		1,321,389
Cognizant Technology Solutions Corp. — Class A		10,186		738,892
Hewlett Packard Enterprise Co.		46,283		680,823
HP, Inc.		33,655		671,754
Western Digital Corp.		6,848		591,667
Accenture plc — Class A		4,287		579,045
DXC Technology Co.		6,556		563,029
Check Point Software Technologies Ltd.*		4,780		545,016
Infosys Ltd. ADR		34,755		507,075
NetApp, Inc.		9,051		396,072
Amdocs Ltd.		5,470		351,830
Seagate Technology plc		10,593		351,370
Leidos Holdings, Inc.		5,893		348,983
Fortinet, Inc.*		7,643		273,925
CSRA, Inc.		8,130		262,355
Brocade Communications Systems, Inc.		21,164		252,910
NCR Corp.*,1		6,431		241,291
Teradata Corp.*		7,045		238,051
MAXIMUS, Inc.		3,628		234,006
Nutanix, Inc. — Class A*		9,680		216,735
Conduent, Inc.*		13,376		209,602
Lumentum Holdings, Inc.*		3,722		202,291
NetScout Systems, Inc.*		6,038		195,329
VeriFone Systems, Inc.*		8,120		164,674
Electronics for Imaging, Inc.*		3,600		153,648
Diebold Nixdorf, Inc.1		6,700		153,095
3D Systems Corp.*,1		9,994		133,820
Total Computers				13,778,516
Commercial Services - 6.3%
PayPal Holdings, Inc.*		15,627		1,000,596
Automatic Data Processing, Inc.		7,269		794,647
FleetCor Technologies, Inc.*		2,950		456,572
Global Payments, Inc.		4,431		421,078
Vantiv, Inc. — Class A*		5,920		417,182
Total System Services, Inc.		5,993		392,542
Gartner, Inc.*		3,075		382,561
Square, Inc. — Class A*		12,330		355,227
CoStar Group, Inc.*		1,300		348,725
Western Union Co.		18,024		346,061
Booz Allen Hamilton Holding Corp.		7,462		279,004
Sabre Corp.		14,380		260,278
Euronet Worldwide, Inc.*		2,660		252,141
WEX, Inc.*		2,190		245,762
Total Commercial Services				5,952,376
Electronics - 5.9%
Corning, Inc.		19,986		597,980
Amphenol Corp. — Class A		6,841		579,022
TE Connectivity Ltd.		6,161		511,733
Trimble, Inc.*		8,904		349,482
Flex Ltd.*		19,997		331,350
Keysight Technologies, Inc.*		7,600		316,616
Arrow Electronics, Inc.*		3,791		304,834
National Instruments Corp.		6,400		269,888
FLIR Systems, Inc.		6,690		260,308
Coherent, Inc.*		1,100		258,687
Avnet, Inc.		6,359		249,909
Jabil, Inc.		8,680		247,814
Tech Data Corp.*		2,753		244,604
Itron, Inc.*		2,700		209,115
Sanmina Corp.*		5,140		190,951
II-VI, Inc.*		4,459		183,488
TTM Technologies, Inc.*		9,350		143,710
Applied Optoelectronics, Inc.*,1		2,203		142,468
Fitbit, Inc. — Class A*		19,300		134,328
Total Electronics				5,526,287
Telecommunications - 5.7%
Cisco Systems, Inc.		44,791		1,506,321
Arista Networks, Inc.*		2,388		452,789
Motorola Solutions, Inc.		5,121		434,619
Juniper Networks, Inc.		13,426		373,646
CommScope Holding Company, Inc.*		8,670		287,931
LogMeIn, Inc.		2,528		278,206
ARRIS International plc*		9,468		269,743
Ubiquiti Networks, Inc.*,1		4,533		253,939
ViaSat, Inc.*,1		3,540		227,693
Ciena Corp.*		9,786		214,998
Finisar Corp.*		8,862		196,471
InterDigital, Inc.		2,601		191,824
Acacia Communications, Inc.*,1		3,652		172,009
Viavi Solutions, Inc.*		17,352		164,150
Gigamon, Inc.*		3,700		155,955
NETGEAR, Inc.*		3,032		144,323
Oclaro, Inc.*,1		15,611		134,723
Total Telecommunications				5,459,340
Diversified Financial Services - 4.1%
Visa, Inc. — Class A		16,591		1,746,038
Mastercard, Inc. — Class A		9,632		1,360,038
Alliance Data Systems Corp.		1,839		407,430
Ellie Mae, Inc.*		2,280		187,256
Blackhawk Network Holdings, Inc.*		4,000		175,200
Total Diversified Financial Services				3,875,962
Electrical Components & Equipment - 0.7%
Littelfuse, Inc.		1,287		252,097
Universal Display Corp.		1,950		251,258

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
TECHNOLOGY FUND

	Shares		Value
Advanced Energy Industries, Inc.*		2,578	$	208,199
Total Electrical Components & Equipment				711,554
Machinery-Diversified - 0.6%
Cognex Corp.		3,090		340,765
Zebra Technologies Corp. — Class A*		2,544		276,228
Total Machinery-Diversified				616,993
Auto Parts & Equipment - 0.5%
Mobileye N.V.*		8,080		502,576
Aerospace & Defense - 0.5%
Harris Corp.		3,576		470,888
Office & Business Equipment - 0.3%
Xerox Corp.		9,951		331,269
Energy-Alternate Sources - 0.3%
First Solar, Inc.*		5,318		243,990
Building Materials - 0.2%
Cree, Inc.*		7,142		201,333
Media - 0.2%
TiVo Corp.		9,056		179,762
Total Common Stocks
(Cost $75,733,463)				94,622,792

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		278,960		278,960
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		139,481		139,481
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		139,374		139,374
Total Repurchase Agreements
(Cost $557,815)				557,815
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.7%
First American Government Obligations Fund — Class Z, 0.89%4		2,560,633		2,560,633
Total Securities Lending Collateral
(Cost $2,560,633)				2,560,633
Total Investments - 102.7%
(Cost $78,851,911)			$	97,741,240
Other Assets & Liabilities, net - (2.7)%				(2,579,798	)
Total Net Assets - 100.0%			$	95,161,442

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
TECHNOLOGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	94,622,792	$	—	$	—	$	94,622,792
Repurchase Agreements		—		557,815		—		557,815
Securities Lending Collateral		2,560,633		—		—		2,560,633
Total Assets	$	97,183,425	$	557,815	$	—	$	97,741,240

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $2,512,291 of securities loaned (cost $78,294,096)	$	97,183,426
Repurchase agreements, at value (cost $557,815)		557,815
Cash		4,926
Receivables:
Fund shares sold		610,977
Dividends		38,008
Securities lending income		4,921
Foreign taxes reclaim		930
Interest		31
Total assets		98,401,034
Liabilities:
Payable for:
Return of securities loaned		2,560,633
Securities purchased		505,375
Management fees		64,806
Fund shares redeemed		35,256
Transfer agent and administrative fees		19,060
Distribution and service fees		12,493
Portfolio accounting fees		7,624
Miscellaneous		34,345
Total liabilities		3,239,592
Commitments and contingent liabilities (Note 10)		—
Net assets	$	95,161,442
Net assets consist of:
Paid in capital	$	74,801,134
Accumulated net investment loss		(271,403	)
Accumulated net realized gain on investments		1,742,381
Net unrealized appreciation on investments		18,889,330
Net assets	$	95,161,442
Investor Class:
Net assets	$	47,546,368
Capital shares outstanding		556,322
Net asset value per share	$	85.47
A-Class:
Net assets	$	6,401,948
Capital shares outstanding		79,998
Net asset value per share	$	80.03
Maximum offering price per share (Net asset value divided by 95.25%)	$	84.02
C-Class:
Net assets	$	4,679,610
Capital shares outstanding		64,234
Net asset value per share	$	72.85
H-Class:
Net assets	$	36,533,516
Capital shares outstanding		466,202
Net asset value per share	$	78.36

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $155)	$	533,462
Interest		2,203
Income from securities lending, net		32,753
Total investment income		568,418
Expenses:
Management fees		404,944
Distribution and service fees:
A-Class		6,526
C-Class		19,709
H-Class		42,689
Transfer agent and administrative fees		119,101
Portfolio accounting fees		47,640
Registration fees		44,820
Custodian fees		6,238
Trustees’ fees*		3,879
Line of credit fees		305
Miscellaneous		35,840
Total expenses		731,691
Net investment loss		(163,273	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,014,566
Net realized gain		5,014,566
Net change in unrealized appreciation (depreciation) on:
Investments		5,872,466
Net change in unrealized appreciation (depreciation)		5,872,466
Net realized and unrealized gain		10,887,032
Net increase in net assets resulting from operations	$	10,723,759

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

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

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(163,273	)	$	(132,224	)
Net realized gain on investments		5,014,566			6,670,155
Net change in unrealized appreciation (depreciation) on investments		5,872,466			4,144,640
Net increase in net assets resulting from operations		10,723,759			10,682,571
Capital share transactions:
Proceeds from sale of shares
Investor Class		82,750,825			164,308,988
A-Class		10,895,784			15,140,469
C-Class		3,017,327			4,835,439
H-Class		67,020,346			59,582,617
Cost of shares redeemed
Investor Class		(95,783,219	)		(138,630,626	)
A-Class		(8,453,263	)		(20,841,622	)
C-Class		(2,000,624	)		(4,264,033	)
H-Class		(56,026,307	)		(42,353,661	)
Net increase from capital share transactions		1,420,869			37,777,571
Net increase in net assets		12,144,628			48,460,142
Net assets:
Beginning of period		83,016,814			34,556,672
End of period	$	95,161,442		$	83,016,814
Accumulated net investment loss at end of period	$	(271,403	)	$	(108,130	)
Capital share activity:
Shares sold
Investor Class		1,022,762			2,453,828
A-Class		144,531			240,039
C-Class		43,999			83,450
H-Class		915,654			989,015
Shares redeemed
Investor Class		(1,195,625	)		(2,090,864	)
A-Class		(111,094	)		(339,864	)
C-Class		(29,310	)		(76,557	)
H-Class		(759,888	)		(711,407	)
Net increase in shares		31,029			547,641

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	75.45		$	60.53		$	61.23		$	55.90		$	43.58		$	42.92
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.09	)		(.06	)		(.10	)		(.09	)		.03
Net gain (loss) on investments (realized and unrealized)		10.10			15.01			(.64	)		5.43			12.41			.63
Total from investment operations		10.02			14.92			(.70	)		5.33			12.32			.66
Net asset value, end of period	$	85.47		$	75.45		$	60.53		$	61.23		$	55.90		$	43.58
Total Returnc		13.28	%		24.63	%		(1.14	%)		9.53	%		28.24	%		1.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	47,546		$	55,016		$	22,167		$	20,458		$	32,858		$	8,325
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.13	%)		(0.10	%)		(0.17	%)		(0.18	%)		0.10	%
Total expenses		1.39	%		1.38	%		1.35	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		140	%		320	%		388	%		280	%		321	%		324	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	70.74		$	56.88		$	57.69		$	52.79		$	41.30		$	40.76
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.25	)		(.14	)		(.21	)		(.23	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		9.43			14.11			(.67	)		5.11			11.72			.63
Total from investment operations		9.29			13.86			(.81	)		4.90			11.49			.54
Net asset value, end of period	$	80.03		$	70.74		$	56.88		$	57.69		$	52.79		$	41.30
Total Returnc		13.12	%		24.37	%		(1.40	%)		9.28	%		27.79	%		1.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,402		$	3,294		$	8,327		$	9,960		$	5,873		$	1,998
Ratios to average net assets:
Net investment income (loss)		(0.38	%)		(0.40	%)		(0.25	%)		(0.39	%)		(0.47	%)		(0.27	%)
Total expenses		1.64	%		1.63	%		1.60	%		1.59	%		1.62	%		1.59	%
Portfolio turnover rate		140	%		320	%		388	%		280	%		321	%		324	%

128 | 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	64.64		$	52.37		$	53.50		$	49.30		$	38.84		$	38.65
Income (loss) from investment operations:
Net investment income (loss)b		(.43	)		(.64	)		(.59	)		(.58	)		(.50	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		8.64			12.91			(.54	)		4.78			10.96			.52
Total from investment operations		8.21			12.27			(1.13	)		4.20			10.46			.19
Net asset value, end of period	$	72.85		$	64.64		$	52.37		$	53.50		$	49.30		$	38.84
Total Returnc		12.72	%		23.41	%		(2.11	%)		8.52	%		26.90	%		0.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,680		$	3,203		$	2,234		$	2,910		$	2,827		$	1,715
Ratios to average net assets:
Net investment income (loss)		(1.24	%)		(1.12	%)		(1.12	%)		(1.13	%)		(1.13	%)		(0.90	%)
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		140	%		320	%		388	%		280	%		321	%		324	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e
Per Share Data
Net asset value, beginning of period	$	69.27		$	55.72		$	56.54		$	51.87		$	40.65		$	40.22
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.30	)		(.23	)		(.37	)		(.27	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		9.26			13.85			(.59	)		5.04			11.49			.55
Total from investment operations		9.09			13.55			(.82	)		4.67			11.22			.43
Net asset value, end of period	$	78.36		$	69.27		$	55.72		$	56.54		$	51.87		$	40.65
Total Returnc		13.12	%		24.32	%		(1.45	%)		9.00	%		27.60	%		1.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	36,534		$	21,504		$	1,829		$	2,831		$	6,915		$	1,286
Ratios to average net assets:
Net investment income (loss)		(0.45	%)		(0.46	%)		(0.42	%)		(0.69	%)		(0.54	%)		(0.33	%)
Total expenses		1.64	%		1.63	%		1.68	%		1.85	%		1.87	%		1.85	%
Portfolio turnover rate		140	%		320	%		388	%		280	%		321	%		324	%

a	Unaudited figures for the period ended September 30, 2017. 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.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 18, 2001
H-Class	April 1, 1998

Ten Largest Holdings (% of Total Net Assets)
AT&T, Inc.	10.5%
Verizon Communications, Inc.	9.0%
Cisco Systems, Inc.	8.0%
QUALCOMM, Inc.	5.4%
T-Mobile US, Inc.	4.5%
Crown Castle International Corp.	3.8%
Sprint Corp.	3.5%
Level 3 Communications, Inc.	2.7%
SBA Communications Corp.	2.5%
Harris Corp.	2.5%
Top Ten Total	52.4%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(0.33%)	3.66%	6.07%	(1.13%)
A-Class Shares	(0.45%)	3.41%	5.78%	(1.37%)
A-Class Shares with sales charge‡	(5.17%)	(1.50%)	4.75%	(1.85%)
C-Class Shares	(0.82%)	2.63%	5.12%	(2.02%)
C-Class Shares with CDSC§	(1.81%)	1.63%	5.12%	(2.02%)
H-Class Shares**	(0.44%)	3.46%	5.62%	(1.56%)
S&P 500 Telecommunication Services Index	(0.75%)	(0.14%)	5.60%	4.15%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Telecommunication Services Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

130 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Telecommunications - 75.7%
AT&T, Inc.		7,532	$	295,029
Verizon Communications, Inc.		5,352		264,871
Cisco Systems, Inc.		6,973		234,503
T-Mobile US, Inc.*		2,123		130,904
Sprint Corp.*		13,384		104,128
Level 3 Communications, Inc.*		1,501		79,988
Arista Networks, Inc.*		363		68,828
Motorola Solutions, Inc.		795		67,472
CenturyLink, Inc.1		3,197		60,423
Juniper Networks, Inc.		2,105		58,582
Vodafone Group plc ADR		1,987		56,550
Zayo Group Holdings, Inc.*		1,490		51,286
CommScope Holding Company, Inc.*		1,359		45,132
EchoStar Corp. — Class A*		748		42,808
ARRIS International plc*		1,483		42,251
America Movil SAB de CV — Class L ADR		2,366		41,997
BCE, Inc.		856		40,086
Ubiquiti Networks, Inc.*,1		708		39,662
China Mobile Ltd. ADR		762		38,534
ViaSat, Inc.*,1		555		35,698
Telephone & Data Systems, Inc.		1,225		34,165
Ciena Corp.*		1,527		33,548
Finisar Corp.*		1,391		30,838
InterDigital, Inc.		400		29,500
Straight Path Communications, Inc. — Class B*		151		27,281
Acacia Communications, Inc.*,1		557		26,235
Shenandoah Telecommunications Co.		701		26,077
Viavi Solutions, Inc.*		2,714		25,674
Vonage Holdings Corp.*		3,085		25,112
Consolidated Communications Holdings, Inc.		1,179		22,495
NETGEAR, Inc.*		470		22,372
Infinera Corp.*		2,451		21,740
Oclaro, Inc.*		2,438		21,040
Extreme Networks, Inc.*		1,723		20,486
ADTRAN, Inc.		830		19,920
Iridium Communications, Inc.*,1		1,831		18,859
Frontier Communications Corp.1		1,401		16,518
Total Telecommunications				2,220,592
REITs - 6.4%
Crown Castle International Corp.		1,126		112,577
SBA Communications Corp.*		514		74,042
Total REITs				186,619
Internet - 5.4%
Palo Alto Networks, Inc.*		430		61,963
F5 Networks, Inc.*		419		50,515
Cogent Communications Holdings, Inc.		556		27,188
8x8, Inc.*		1,443		19,481
Total Internet				159,147
Semiconductors - 5.4%
QUALCOMM, Inc.		3,047		157,957
Computers - 3.4%
Brocade Communications Systems, Inc.		3,304		39,482
Lumentum Holdings, Inc.*		577		31,360
NetScout Systems, Inc.*		939		30,377
Total Computers				101,219
Aerospace & Defense - 2.4%
Harris Corp.		552		72,688
Electronics - 0.8%
Applied Optoelectronics, Inc.*,1		341		22,052
Total Common Stocks
(Cost $2,314,344)				2,920,274
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	9,880		9,880
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		4,940		4,940
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		4,936		4,936
Total Repurchase Agreements
(Cost $19,756)				19,756
	Shares
SECURITIES LENDING COLLATERAL†,3 - 5.0%
First American Government Obligations Fund — Class Z, 0.89%4		147,134		147,134
Total Securities Lending Collateral
(Cost $147,134)				147,134
Total Investments - 105.2%
(Cost $2,481,234)			$	3,087,164
Other Assets & Liabilities, net - (5.2)%				(152,548	)
Total Net Assets - 100.0%			$	2,934,616

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
TELECOMMUNICATIONS 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	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	2,920,274	$	—	$	—	$	2,920,274
Repurchase Agreements		—		19,756		—		19,756
Securities Lending Collateral		147,134		—		—		147,134
Total Assets	$	3,067,408	$	19,756	$	—	$	3,087,164

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $142,540 of securities loaned (cost $2,461,478)	$	3,067,408
Repurchase agreements, at value (cost $19,756)		19,756
Receivables:
Fund shares sold		18,357
Dividends		2,679
Investment adviser		1,237
Securities lending income		512
Foreign taxes reclaim		344
Interest		1
Total assets		3,110,294
Liabilities:
Payable for:
Return of securities loaned		147,134
Securities purchased		26,298
Management fees		2,669
Transfer agent and administrative fees		785
Fund shares redeemed		651
Distribution and service fees		555
Portfolio accounting fees		314
Miscellaneous		(2,728	)
Total liabilities		175,678
Commitments and contingent liabilities (Note 10)		—
Net assets	$	2,934,616
Net assets consist of:
Paid in capital	$	2,053,160
Undistributed net investment income		159,110
Accumulated net realized gain on investments		116,416
Net unrealized appreciation on investments		605,930
Net assets	$	2,934,616
Investor Class:
Net assets	$	1,867,200
Capital shares outstanding		39,069
Net asset value per share	$	47.79
A-Class:
Net assets	$	587,252
Capital shares outstanding		13,298
Net asset value per share	$	44.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	46.36
C-Class:
Net assets	$	293,301
Capital shares outstanding		7,369
Net asset value per share	$	39.80
H-Class:
Net assets	$	186,863
Capital shares outstanding		4,344
Net asset value per share	$	43.02

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $(921))	$	57,757
Interest		50
Income from securities lending, net		3,382
Total investment income		61,189
Expenses:
Management fees		19,252
Distribution and service fees:
A-Class		1,051
C-Class		1,891
H-Class		859
Transfer agent and administrative fees		5,662
Registration fees		4,177
Portfolio accounting fees		2,265
Professional fees		1,964
Trustees’ fees*		742
Custodian fees		360
Line of credit fees		110
Miscellaneous		(2,931	)
Total expenses		35,402
Net investment income		25,787
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,126,950
Net realized gain		1,126,950
Net change in unrealized appreciation (depreciation) on:
Investments		(1,184,959	)
Net change in unrealized appreciation (depreciation)		(1,184,959	)
Net realized and unrealized loss		(58,009	)
Net decrease in net assets resulting from operations	$	(32,222	)

* 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 | 133

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	25,787		$	295,233
Net realized gain on investments		1,126,950			3,661,119
Net change in unrealized appreciation (depreciation) on investments		(1,184,959	)		(781,475	)
Net increase (decrease) in net assets resulting from operations		(32,222	)		3,174,877
Distributions to shareholders from:
Net investment income
Investor Class		—			(148,366	)
A-Class		—			(18,046	)
C-Class		—			(15,410	)
H-Class		—			(59,833	)
Total distributions to shareholders		—			(241,655	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		11,149,787			102,887,896
A-Class		940,638			52,341,342
C-Class		679,769			3,895,441
H-Class		25,505,399			55,785,784
Distributions reinvested
Investor Class		—			147,778
A-Class		—			17,422
C-Class		—			15,386
H-Class		—			59,833
Cost of shares redeemed
Investor Class		(21,701,178	)		(109,831,997	)
A-Class		(1,425,374	)		(54,681,307	)
C-Class		(787,509	)		(3,803,624	)
H-Class		(26,633,927	)		(65,870,500	)
Net decrease from capital share transactions		(12,272,395	)		(19,036,546	)
Net decrease in net assets		(12,304,617	)		(16,103,324	)
Net assets:
Beginning of period		15,239,233			31,342,557
End of period	$	2,934,616		$	15,239,233
Undistributed net investment income at end of period	$	159,110		$	133,323
Capital share activity:
Shares sold
Investor Class		234,522			2,237,261
A-Class		21,365			1,269,793
C-Class		17,106			102,253
H-Class		607,559			1,323,661
Shares issued from reinvestment of distributions
Investor Class		—			3,252
A-Class		—			414
C-Class		—			403
H-Class		—			1,460
Shares redeemed
Investor Class		(456,960	)		(2,426,423	)
A-Class		(32,420	)		(1,284,565	)
C-Class		(19,849	)		(99,349	)
H-Class		(631,290	)		(1,563,493	)
Net decrease in shares		(259,967	)		(435,333	)

134 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	47.95		$	42.91		$	45.56		$	45.51		$	40.76		$	41.52
Income (loss) from investment operations:
Net investment income (loss)b		.35			.49			.44			.72			1.06			.81
Net gain (loss) on investments (realized and unrealized)		(.51	)		5.55			(1.64	)		.63			4.26			(.67	)
Total from investment operations		(.16	)		6.04			(1.20	)		1.35			5.32			.14
Less distributions from:
Net investment income		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Total distributions		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Net asset value, end of period	$	47.79		$	47.95		$	42.91		$	45.56		$	45.51		$	40.76
Total Returnc		(0.33	%)		14.21	%		(2.49	%)		2.93	%		13.12	%		0.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,867		$	12,539		$	19,198		$	1,316		$	2,497		$	2,970
Ratios to average net assets:
Net investment income (loss)		1.46	%		1.09	%		0.97	%		1.55	%		2.47	%		2.06	%
Total expenses		1.40	%		1.38	%		1.34	%		1.36	%		1.38	%		1.35	%
Portfolio turnover rate		651	%		605	%		660	%		804	%		1,271	%		1,550	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	44.39		$	39.88		$	42.63		$	42.74		$	38.44		$	39.27
Income (loss) from investment operations:
Net investment income (loss)b		.21			.32			.58			.58			.72			.72
Net gain (loss) on investments (realized and unrealized)		(.44	)		5.19			(1.88	)		.61			4.15			(.65	)
Total from investment operations		(.23	)		5.51			(1.30	)		1.19			4.87			.07
Less distributions from:
Net investment income		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Total distributions		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Net asset value, end of period	$	44.16		$	44.39		$	39.88		$	42.63		$	42.74		$	38.44
Total Returnc		(0.45	%)		13.88	%		(2.90	%)		2.75	%		12.80	%		0.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	587		$	1,081		$	1,544		$	454		$	2,631		$	553
Ratios to average net assets:
Net investment income (loss)		0.93	%		0.75	%		1.41	%		1.35	%		1.79	%		1.98	%
Total expenses		1.65	%		1.62	%		1.59	%		1.60	%		1.63	%		1.61	%
Portfolio turnover rate		651	%		605	%		660	%		804	%		1,271	%		1,550	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	40.14		$	36.43		$	39.35		$	39.89		$	36.00		$	37.04
Income (loss) from investment operations:
Net investment income (loss)b		.07			.03			(.01	)		.06			.54			.48
Net gain (loss) on investments (realized and unrealized)		(.41	)		4.68			(1.46	)		.70			3.92			(.62	)
Total from investment operations		(.34	)		4.71			(1.47	)		.76			4.46			(.14	)
Less distributions from:
Net investment income		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Total distributions		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Net asset value, end of period	$	39.80		$	40.14		$	36.43		$	39.35		$	39.89		$	36.00
Total Returnc		(0.82	%)		13.05	%		(3.59	%)		1.86	%		12.49	%		(0.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	293		$	406		$	248		$	499		$	271		$	784
Ratios to average net assets:
Net investment income (loss)		0.35	%		0.07	%		(0.03	%)		0.14	%		1.42	%		1.41	%
Total expenses		2.40	%		2.37	%		2.35	%		2.35	%		2.38	%		2.36	%
Portfolio turnover rate		651	%		605	%		660	%		804	%		1,271	%		1,550	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e
Per Share Data
Net asset value, beginning of period	$	43.21		$	38.85		$	41.59		$	41.86		$	37.75		$	38.69
Income (loss) from investment operations:
Net investment income (loss)b		.13			.58			.17			.60			.29			.57
Net gain (loss) on investments (realized and unrealized)		(.32	)		4.78			(1.46	)		.43			4.39			(.61	)
Total from investment operations		(.19	)		5.36			(1.29	)		1.03			4.68			(.04	)
Less distributions from:
Net investment income		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Total distributions		—			(1.00	)		(1.45	)		(1.30	)		(.57	)		(.90	)
Net asset value, end of period	$	43.02		$	43.21		$	38.85		$	41.59		$	41.86		$	37.75
Total Returnc		(0.44	%)		13.94	%		(2.95	%)		2.42	%		12.53	%		(0.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	187		$	1,213		$	10,353		$	151		$	316		$	133
Ratios to average net assets:
Net investment income (loss)		0.61	%		1.44	%		0.44	%		1.40	%		0.74	%		1.59	%
Total expenses		1.64	%		1.62	%		1.64	%		1.86	%		1.88	%		1.86	%
Portfolio turnover rate		651	%		605	%		659	%		804	%		1,271	%		1,550	%

a	Unaudited figures for the period ended September 30, 2017. 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.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	May 14, 2001
H-Class	June 9, 1998

Ten Largest Holdings (% of Total Net Assets)
United Parcel Service, Inc. — Class B	4.7%
Union Pacific Corp.	4.5%
FedEx Corp.	3.6%
General Motors Co.	3.5%
CSX Corp.	3.2%
Tesla, Inc.	3.2%
Ford Motor Co.	3.1%
Norfolk Southern Corp.	2.8%
Southwest Airlines Co.	2.7%
Delta Air Lines, Inc.	2.7%
Top Ten Total	34.0%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	11.98%	27.28%	19.29%	7.90%
A-Class Shares	11.84%	26.95%	19.00%	7.66%
A-Class Shares with sales charge‡	6.52%	20.93%	17.85%	7.14%
C-Class Shares	11.41%	25.98%	18.10%	6.84%
C-Class Shares with CDSC§	10.41%	24.98%	18.10%	6.84%
H-Class Shares**	11.80%	26.93%	18.83%	7.45%
S&P 500 Industrials Index	9.15%	22.35%	16.20%	7.48%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 137

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Transportation - 42.5%
United Parcel Service, Inc. — Class B		21,478	$	2,579,294
Union Pacific Corp.		21,149		2,452,651
FedEx Corp.		8,786		1,981,946
CSX Corp.		32,563		1,766,868
Norfolk Southern Corp.		11,656		1,541,389
J.B. Hunt Transport Services, Inc.		8,339		926,296
Kansas City Southern		7,883		856,724
CH Robinson Worldwide, Inc.		11,216		853,538
Expeditors International of Washington, Inc.		14,044		840,674
Old Dominion Freight Line, Inc.		7,138		785,965
Canadian Pacific Railway Ltd.		4,537		762,352
XPO Logistics, Inc.*		11,112		753,171
Canadian National Railway Co.		8,660		717,481
ZTO Express Cayman, Inc. ADR*,1		41,450		581,958
Schneider National, Inc. — Class B		21,600		546,480
Genesee & Wyoming, Inc. — Class A*		7,381		546,268
Ryder System, Inc.		6,328		535,032
Landstar System, Inc.		5,072		505,425
Kirby Corp.*		7,240		477,478
Knight-Swift Transportation Holdings, Inc.*		11,338		471,112
Werner Enterprises, Inc.		11,337		414,367
Heartland Express, Inc.		15,082		378,257
Forward Air Corp.		5,997		343,208
Atlas Air Worldwide Holdings, Inc.*		4,913		323,275
Saia, Inc.*		5,130		321,395
Hub Group, Inc. — Class A*		7,320		314,394
Air Transport Services Group, Inc.*		11,930		290,376
ArcBest Corp.		7,344		245,657
YRC Worldwide, Inc.*		12,750		175,950
Total Transportation				23,288,981
Airlines - 16.9%
Southwest Airlines Co.		26,203		1,466,843
Delta Air Lines, Inc.		30,410		1,466,370
American Airlines Group, Inc.		25,650		1,218,119
United Continental Holdings, Inc.*		18,172		1,106,311
Alaska Air Group, Inc.		9,917		756,370
JetBlue Airways Corp.*		33,372		618,383
Ryanair Holdings plc ADR*		5,624		592,882
Copa Holdings S.A. — Class A		4,700		585,291
Spirit Airlines, Inc.*,1		11,444		382,344
Allegiant Travel Co. — Class A		2,903		382,325
SkyWest, Inc.		8,652		379,823
Hawaiian Holdings, Inc.*		9,445		354,660
Total Airlines				9,309,721
Auto Parts & Equipment - 15.6%
Lear Corp.		4,928		852,939
Delphi Automotive plc		8,479		834,334
BorgWarner, Inc.		16,130		826,340
Goodyear Tire & Rubber Co.		21,716		722,057
Magna International, Inc.		13,490		720,096
Adient plc		8,373		703,248
Autoliv, Inc.1		5,125		633,450
Visteon Corp.*		4,011		496,441
Dana, Inc.		17,752		496,346
Tenneco, Inc.		7,508		455,510
Dorman Products, Inc.*		5,461		391,117
Cooper-Standard Holdings, Inc.*		3,225		374,003
Cooper Tire & Rubber Co.		9,775		365,585
American Axle & Manufacturing Holdings, Inc.*		20,016		351,881
Gentherm, Inc.*		8,084		300,321
Total Auto Parts & Equipment				8,523,668
Auto Manufacturers - 14.7%
General Motors Co.		47,084		1,901,251
Tesla, Inc.*,1		5,151		1,757,006
Ford Motor Co.		143,731		1,720,460
Fiat Chrysler Automobiles N.V.*		39,272		703,362
Ferrari N.V.		6,266		692,268
Tata Motors Ltd. ADR*		21,231		663,893
Toyota Motor Corp. ADR1		5,233		623,617
Total Auto Manufacturers				8,061,857
Commercial Services - 3.7%
AMERCO		1,680		629,832
Macquarie Infrastructure Corp.		8,532		615,840
Avis Budget Group, Inc.*,1		11,589		441,077
Hertz Global Holdings, Inc.*,1		14,438		322,834
Total Commercial Services				2,009,583
Leisure Time - 2.7%
Harley-Davidson, Inc.		14,879		717,317
LCI Industries		3,700		428,645
Fox Factory Holding Corp.*		7,420		319,802
Total Leisure Time				1,465,764
Home Builders - 1.8%
Thor Industries, Inc.		5,253		661,405
Winnebago Industries, Inc.		6,660		298,035
Total Home Builders				959,440
Electronics - 1.1%
Gentex Corp.		30,163		597,227
Internet - 0.6%
Cars.com, Inc.*,1		12,800		340,608
Total Common Stocks
(Cost $45,607,263)				54,556,849

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
TRANSPORTATION FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	154,981	$	154,981
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		77,491		77,491
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		77,431		77,431
Total Repurchase Agreements
(Cost $309,903)				309,903

	Shares
SECURITIES LENDING COLLATERAL†,3 - 6.4%
First American Government Obligations Fund — Class Z, 0.89%4		3,522,519		3,522,519
Total Securities Lending Collateral
(Cost $3,522,519)				3,522,519
Total Investments - 106.6%
(Cost $49,439,685)			$	58,389,271
Other Assets & Liabilities, net - (6.6)%				(3,608,089	)
Total Net Assets - 100.0%			$	54,781,182

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	54,556,849	$	—	$	—	$	54,556,849
Repurchase Agreements		—		309,903		—		309,903
Securities Lending Collateral		3,522,519		—		—		3,522,519
Total Assets	$	58,079,368	$	309,903	$	—	$	58,389,271

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $3,433,593 of securities loaned (cost $49,129,782)	$	58,079,368
Repurchase agreements, at value (cost $309,903)		309,903
Cash		2,956
Receivables:
Fund shares sold		1,882,003
Dividends		10,441
Securities lending income		776
Foreign taxes reclaim		117
Interest		17
Total assets		60,285,581
Liabilities:
Payable for:
Return of securities loaned		3,522,519
Securities purchased		1,584,827
Fund shares redeemed		336,695
Management fees		32,977
Transfer agent and administrative fees		9,699
Distribution and service fees		4,449
Portfolio accounting fees		3,880
Miscellaneous		9,353
Total liabilities		5,504,399
Commitments and contingent liabilities (Note 10)		—
Net assets	$	54,781,182
Net assets consist of:
Paid in capital	$	43,971,974
Accumulated net investment loss		(11,062	)
Accumulated net realized gain on investments		1,870,684
Net unrealized appreciation on investments		8,949,586
Net assets	$	54,781,182
Investor Class:
Net assets	$	33,814,677
Capital shares outstanding		564,300
Net asset value per share	$	59.92
A-Class:
Net assets	$	11,329,923
Capital shares outstanding		204,686
Net asset value per share	$	55.35
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.11
C-Class:
Net assets	$	1,948,592
Capital shares outstanding		38,083
Net asset value per share	$	51.17
H-Class:
Net assets	$	7,687,990
Capital shares outstanding		142,807
Net asset value per share	$	53.83

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $3,536)	$	267,343
Interest		861
Income from securities lending, net		7,548
Total investment income		275,752
Expenses:
Management fees		157,707
Distribution and service fees:
A-Class		10,277
C-Class		10,712
H-Class		6,698
Transfer agent and administrative fees		46,384
Registration fees		23,355
Portfolio accounting fees		18,553
Custodian fees		2,546
Trustees’ fees*		2,255
Line of credit fees		25
Miscellaneous		7,293
Total expenses		285,805
Net investment loss		(10,053	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,222,505
Net realized gain		5,222,505
Net change in unrealized appreciation (depreciation) on:
Investments		(960,337	)
Net change in unrealized appreciation (depreciation)		(960,337	)
Net realized and unrealized gain		4,262,168
Net increase in net assets resulting from operations	$	4,252,115

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(10,053	)	$	(1,275	)
Net realized gain on investments		5,222,505			5,205,605
Net change in unrealized appreciation (depreciation) on investments		(960,337	)		887,530
Net increase in net assets resulting from operations		4,252,115			6,091,860
Distributions to shareholders from:
Net investment income
Investor Class		—			(75,133	)
A-Class		—			(20,987	)
C-Class		—			(7,137	)
H-Class		—			(15,737	)
Total distributions to shareholders		—			(118,994	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		73,137,021			122,086,249
A-Class		8,515,277			19,099,228
C-Class		1,501,514			4,867,697
H-Class		66,955,178			143,717,449
Distributions reinvested
Investor Class		—			73,847
A-Class		—			20,353
C-Class		—			6,873
H-Class		—			15,696
Cost of shares redeemed
Investor Class		(74,634,604	)		(106,399,464	)
A-Class		(2,998,018	)		(20,440,514	)
C-Class		(2,074,970	)		(5,771,671	)
H-Class		(63,959,914	)		(150,146,386	)
Net increase from capital share transactions		6,441,484			7,129,357
Net increase in net assets		10,693,599			13,102,223
Net assets:
Beginning of period		44,087,583			30,985,360
End of period	$	54,781,182		$	44,087,583
Accumulated net investment loss at end of period	$	(11,062	)	$	(1,009	)
Capital share activity:
Shares sold
Investor Class		1,311,157			2,457,004
A-Class		166,718			417,626
C-Class		31,611			114,437
H-Class		1,348,818			3,310,254
Shares issued from reinvestment of distributions
Investor Class		—			1,486
A-Class		—			443
C-Class		—			161
H-Class		—			351
Shares redeemed
Investor Class		(1,361,845	)		(2,138,529	)
A-Class		(57,839	)		(446,819	)
C-Class		(43,746	)		(138,639	)
H-Class		(1,291,725	)		(3,441,408	)
Net increase in shares		103,149			136,367

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	53.52		$	46.23		$	52.06		$	44.63		$	32.07		$	26.96
Income (loss) from investment operations:
Net investment income (loss)b		.01			.09			.16			.18			(.04	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		6.39			7.37			(5.78	)		7.25			12.60			5.18
Total from investment operations		6.40			7.46			(5.62	)		7.43			12.56			5.11
Less distributions from:
Net investment income		—			(.17	)		(.21	)		—			—			—
Total distributions		—			(.17	)		(.21	)		—			—			—
Net asset value, end of period	$	59.92		$	53.52		$	46.23		$	52.06		$	44.63		$	32.07
Total Returnc		11.98	%		16.14	%		(10.80	%)		16.65	%		39.16	%		18.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,815		$	32,911		$	13,638		$	42,947		$	44,021		$	78,644
Ratios to average net assets:
Net investment income (loss)		0.03	%		0.17	%		0.33	%		0.37	%		(0.09	%)		(0.25	%)
Total expenses		1.39	%		1.38	%		1.34	%		1.35	%		1.37	%		1.37	%
Portfolio turnover rate		315	%		676	%		219	%		247	%		593	%		737	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	49.50		$	42.87		$	48.41		$	41.61		$	29.96		$	25.25
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.06	)		.04			.05			(.11	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		5.87			6.86			(5.37	)		6.75			11.76			4.72
Total from investment operations		5.85			6.80			(5.33	)		6.80			11.65			4.71
Less distributions from:
Net investment income		—			(.17	)		(.21	)		—			—			—
Total distributions		—			(.17	)		(.21	)		—			—			—
Net asset value, end of period	$	55.35		$	49.50		$	42.87		$	48.41		$	41.61		$	29.96
Total Returnc		11.84	%		15.87	%		(11.01	%)		16.34	%		38.89	%		18.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,330		$	4,742		$	5,340		$	15,359		$	12,938		$	4,558
Ratios to average net assets:
Net investment income (loss)		(0.07	%)		(0.12	%)		0.08	%		0.12	%		(0.28	%)		(0.05	%)
Total expenses		1.64	%		1.63	%		1.60	%		1.60	%		1.62	%		1.60	%
Portfolio turnover rate		315	%		676	%		219	%		247	%		593	%		737	%

142 | 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	45.93		$	40.09		$	45.63		$	39.52		$	28.67		$	24.34
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.34	)		(.24	)		(.27	)		(.37	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		5.44			6.35			(5.09	)		6.38			11.22			4.59
Total from investment operations		5.24			6.01			(5.33	)		6.11			10.85			4.33
Less distributions from:
Net investment income		—			(.17	)		(.21	)		—			—			—
Total distributions		—			(.17	)		(.21	)		—			—			—
Net asset value, end of period	$	51.17		$	45.93		$	40.09		$	45.63		$	39.52		$	28.67
Total Returnc		11.41	%		15.00	%		(11.69	%)		15.46	%		37.84	%		17.79	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,949		$	2,306		$	2,977		$	6,405		$	3,734		$	2,727
Ratios to average net assets:
Net investment income (loss)		(0.85	%)		(0.81	%)		(0.57	%)		(0.62	%)		(1.07	%)		(1.06	%)
Total expenses		2.39	%		2.38	%		2.35	%		2.35	%		2.37	%		2.35	%
Portfolio turnover rate		315	%		676	%		219	%		247	%		593	%		737	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	48.15		$	41.71		$	47.12		$	40.61		$	29.32		$	24.76
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.13	)		(.09	)		(.10	)		(.18	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		5.69			6.74			(5.11	)		6.61			11.47			4.71
Total from investment operations		5.68			6.61			(5.20	)		6.51			11.29			4.56
Less distributions from:
Net investment income		—			(.17	)		(.21	)		—			—			—
Total distributions		—			(.17	)		(.21	)		—			—			—
Net asset value, end of period	$	53.83		$	48.15		$	41.71		$	47.12		$	40.61		$	29.32
Total Returnc		11.80	%		15.88	%		(11.04	%)		16.03	%		38.51	%		18.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,688		$	4,127		$	9,031		$	6,249		$	2,583		$	4,483
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		(0.30	%)		(0.20	%)		(0.22	%)		(0.50	%)		(0.57	%)
Total expenses		1.64	%		1.63	%		1.72	%		1.85	%		1.87	%		1.86	%
Portfolio turnover rate		315	%		676	%		219	%		247	%		593	%		737	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	September 1, 2004
C-Class	April 27, 2001
H-Class	April 3, 2000

Ten Largest Holdings (% of Total Net Assets)
NextEra Energy, Inc.	4.2%
Duke Energy Corp.	3.8%
Dominion Energy, Inc.	3.6%
Southern Co.	3.5%
Exelon Corp.	3.0%
PG&E Corp.	3.0%
American Electric Power Company, Inc.	3.0%
Sempra Energy	2.7%
PPL Corp.	2.6%
Public Service Enterprise Group, Inc.	2.5%
Top Ten Total	31.9%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	4.80%	11.29%	10.59%	6.42%
A-Class Shares	4.67%	11.01%	10.32%	6.16%
A-Class Shares with sales charge‡	(0.31%)	5.73%	9.25%	5.64%
C-Class Shares	4.27%	10.20%	9.49%	5.36%
C-Class Shares with CDSC§	3.27%	9.23%	9.49%	5.36%
H-Class Shares**	4.67%	11.04%	10.17%	5.95%
S&P 500 Utilities Index	5.15%	12.03%	11.92%	7.07%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

144 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
UTILITIES FUND

		Shares		Value
COMMON STOCKS† - 99.8%
Electric - 78.2%
NextEra Energy, Inc.			15,318	$	2,244,852
Duke Energy Corp.			24,285		2,037,997
Dominion Energy, Inc.			24,614		1,893,555
Southern Co.			37,345		1,835,133
Exelon Corp.			42,414		1,597,735
PG&E Corp.			23,409		1,593,919
American Electric Power Company, Inc.			22,417		1,574,570
PPL Corp.			36,118		1,370,678
Public Service Enterprise Group, Inc.			28,986		1,340,603
Consolidated Edison, Inc.			16,565		1,336,464
Edison International			17,312		1,335,967
Xcel Energy, Inc.	��		27,654		1,308,587
WEC Energy Group, Inc.			18,704		1,174,237
DTE Energy Co.			10,874		1,167,433
Eversource Energy			19,228		1,162,140
Avangrid, Inc.			22,175		1,051,539
Ameren Corp.			17,636		1,020,066
FirstEnergy Corp.			32,693		1,007,925
Entergy Corp.			13,110		1,001,080
CMS Energy Corp.			20,934		969,663
CenterPoint Energy, Inc.			32,236		941,614
NRG Energy, Inc.			32,724		837,407
Alliant Energy Corp.			19,920		828,074
Pinnacle West Capital Corp.			9,730		822,769
AES Corp.			66,034		727,695
Westar Energy, Inc.			14,634		725,846
OGE Energy Corp.			20,037		721,933
Great Plains Energy, Inc.			22,774		690,052
SCANA Corp.			13,333		646,517
Calpine Corp.*			42,418		625,666
MDU Resources Group, Inc.			22,852		593,009
IDACORP, Inc.			6,510		572,424
Portland General Electric Co.			11,787		537,959
ALLETE, Inc.			6,924		535,156
Black Hills Corp.			7,651		526,924
Hawaiian Electric Industries, Inc.			15,354		512,363
Avista Corp.			9,710		502,687
PNM Resources, Inc.			11,979		482,754
NorthWestern Corp.			7,921		451,022
El Paso Electric Co.			7,467		412,552
MGE Energy, Inc.			6,291		406,399
Dynegy, Inc.*			32,607		319,223
Total Electric					41,444,188
Gas - 16.2%
Sempra Energy			12,516		1,428,451
Atmos Energy Corp.			9,607		805,451
NiSource, Inc.			30,054		769,082
UGI Corp.			16,341		765,739
Vectren Corp.			9,551		628,169
National Fuel Gas Co.			10,039		568,308
WGL Holdings, Inc.			6,713		565,235
ONE Gas, Inc.			7,247		533,669
Spire, Inc.			7,052		526,432
Southwest Gas Holdings, Inc.			6,696		519,744
New Jersey Resources Corp.			12,309		518,824
National Grid plc ADR			7,900		495,409
South Jersey Industries, Inc.			12,617		435,665
Total Gas					8,560,178
Water - 3.9%
American Water Works Company, Inc.			12,755		1,032,007
Aqua America, Inc.			19,871		659,518
California Water Service Group			9,719		370,780
Total Water					2,062,305
Energy-Alternate Sources - 1.5%
TerraForm Power, Inc. — Class A*			31,281		413,535
Pattern Energy Group, Inc.			15,450		372,345
Total Energy-Alternate Sources					785,880
Pipelines - 0.0%
Kinder Morgan, Inc.			1		19
Total Common Stocks
(Cost $48,594,394)					52,852,570
		Face Amount
REPURCHASE AGREEMENTS††,1 - 0.2%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		$	66,001		66,001
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17			33,001		33,001
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17			32,975		32,975
Total Repurchase Agreements
(Cost $131,977)					131,977
Total Investments - 100.0%
(Cost $48,726,371)				$	52,984,547
Other Assets & Liabilities, net - 0.0%					6,661
Total Net Assets - 100.0%				$	52,991,208

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
UTILITIES 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	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	52,852,570	$	—	$	—	$	52,852,570
Repurchase Agreements		—		131,977		—		131,977
Total Assets	$	52,852,570	$	131,977	$	—	$	52,984,547

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there no transfers between levels.

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value (cost $48,594,394)	$	52,852,570
Repurchase agreements, at value (cost $131,977)		131,977
Receivables:
Fund shares sold		255,471
Dividends		124,308
Foreign taxes reclaim		315
Interest		7
Securities lending income		4
Total assets		53,364,652
Liabilities:
Payable for:
Fund shares redeemed		291,230
Management fees		39,199
Transfer agent and administrative fees		11,529
Distribution and service fees		10,177
Portfolio accounting fees		4,612
Miscellaneous		16,697
Total liabilities		373,444
Commitments and contingent liabilities (Note 10)		—
Net assets	$	52,991,208
Net assets consist of:
Paid in capital	$	48,692,994
Undistributed net investment income		352,463
Accumulated net realized loss on investments		(312,425	)
Net unrealized appreciation on investments		4,258,175
Net assets	$	52,991,208
Investor Class:
Net assets	$	26,708,181
Capital shares outstanding		647,764
Net asset value per share	$	41.23
A-Class:
Net assets	$	11,299,619
Capital shares outstanding		296,354
Net asset value per share	$	38.13
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.03
C-Class:
Net assets	$	7,744,221
Capital shares outstanding		238,408
Net asset value per share	$	32.48
H-Class:
Net assets	$	7,239,187
Capital shares outstanding		196,930
Net asset value per share	$	36.76

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	770,451
Interest		978
Income from securities lending, net		75
Total investment income		771,504
Expenses:
Management fees		219,214
Distribution and service fees:
A-Class		11,528
C-Class		41,375
H-Class		7,304
Transfer agent and administrative fees		64,475
Portfolio accounting fees		25,790
Registration fees		21,910
Custodian fees		3,357
Trustees’ fees*		1,770
Line of credit fees		49
Miscellaneous		22,269
Total expenses		419,041
Net investment income		352,463
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,589,968
Net realized gain		3,589,968
Net change in unrealized appreciation (depreciation) on:
Investments		(3,658,675	)
Net change in unrealized appreciation (depreciation)		(3,658,675	)
Net realized and unrealized loss		(68,707	)
Net increase in net assets resulting from operations	$	283,756

* 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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	352,463		$	839,774
Net realized gain on investments		3,589,968			11,894,279
Net change in unrealized appreciation (depreciation) on investments		(3,658,675	)		12,192,043
Net increase in net assets resulting from operations		283,756			542,010
Distributions to shareholders from:
Net investment income
Investor Class		—			(577,820	)
A-Class		—			(127,704	)
C-Class		—			(237,845	)
H-Class		—			(188,129	)
Net realized gains
Investor Class		—			(1,895,220	)
A-Class		—			(418,860	)
C-Class		—			(780,119	)
H-Class		—			(617,055	)
Total distributions to shareholders		—			(4,842,752	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		102,593,235			282,505,858
A-Class		10,270,324			40,059,210
C-Class		1,930,114			6,907,165
H-Class		76,283,279			103,464,307
Distributions reinvested
Investor Class		—			2,434,848
A-Class		—			536,124
C-Class		—			1,004,274
H-Class		—			803,467
Cost of shares redeemed
Investor Class		(99,800,161	)		(307,478,614	)
A-Class		(8,451,998	)		(54,062,337	)
C-Class		(2,809,318	)		(9,547,021	)
H-Class		(74,435,283	)		(105,286,529	)
Net increase (decrease) from capital share transactions		5,580,192			(38,659,248	)
Net increase in net assets		5,863,948			42,959,990
Net assets:
Beginning of period		47,127,259			90,087,249
End of period	$	52,991,208		$	47,127,259
Undistributed net investment income at end of period	$	352,463		$	—

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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		2,516,026			6,973,833
A-Class		266,603			1,063,262
C-Class		59,756			209,067
H-Class		2,091,975			2,848,092
Shares issued from reinvestment of distributions
Investor Class		—			68,472
A-Class		—			16,261
C-Class		—			35,537
H-Class		—			25,290
Shares redeemed
Investor Class		(2,481,264	)		(7,690,866	)
A-Class		(227,227	)		(1,419,071	)
C-Class		(86,821	)		(295,878	)
H-Class		(2,048,187	)		(2,897,377	)
Net increase (decrease) in shares		90,861			(1,063,378	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 149

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	39.34		$	40.23		$	36.98		$	34.01		$	32.71		$	29.13
Income (loss) from investment operations:
Net investment income (loss)b		.32			.59			.73			.84			.78			.74
Net gain (loss) on investments (realized and unrealized)		1.57			2.25			3.09			2.26			1.98			3.96
Total from investment operations		1.89			2.84			3.82			3.10			2.76			4.70
Less distributions from:
Net investment income		—			(.87	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net realized gains		—			(2.86	)		—			—			—			—
Total distributions		—			(3.73	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net asset value, end of period	$	41.23		$	39.34		$	40.23		$	36.98		$	34.01		$	32.71
Total Returnc		4.80	%		8.04	%		10.61	%		9.12	%		8.88	%		16.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26,708		$	24,116		$	50,753		$	55,156		$	95,854		$	42,907
Ratios to average net assets:
Net investment income (loss)		1.59	%		1.47	%		2.00	%		2.31	%		2.38	%		2.45	%
Total expenses		1.39	%		1.38	%		1.35	%		1.35	%		1.40	%		1.35	%
Portfolio turnover rate		281	%		507	%		475	%		384	%		508	%		534	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	36.43		$	37.63		$	34.70		$	32.02		$	30.95		$	27.69
Income (loss) from investment operations:
Net investment income (loss)b		.29			.45			.63			.66			.63			.65
Net gain (loss) on investments (realized and unrealized)		1.41			2.08			2.87			2.15			1.90			3.73
Total from investment operations		1.70			2.53			3.50			2.81			2.53			4.38
Less distributions from:
Net investment income		—			(.87	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net realized gains		—			(2.86	)		—			—			—			—
Total distributions		—			(3.73	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net asset value, end of period	$	38.13		$	36.43		$	37.63		$	34.70		$	32.02		$	30.95
Total Returnc		4.67	%		7.75	%		10.38	%		8.78	%		8.64	%		16.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,300		$	9,362		$	22,448		$	9,782		$	11		$	6,938
Ratios to average net assets:
Net investment income (loss)		1.51	%		1.20	%		1.85	%		1.93	%		2.05	%		2.26	%
Total expenses		1.64	%		1.63	%		1.60	%		1.60	%		1.63	%		1.61	%
Portfolio turnover rate		281	%		507	%		475	%		384	%		508	%		534	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	31.15		$	32.96		$	30.70		$	28.55		$	27.96		$	25.31
Income (loss) from investment operations:
Net investment income (loss)b		.12			.22			.28			.36			.34			.42
Net gain (loss) on investments (realized and unrealized)		1.21			1.70			2.55			1.92			1.71			3.35
Total from investment operations		1.33			1.92			2.83			2.28			2.05			3.77
Less distributions from:
Net investment income		—			(.87	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net realized gains		—			(2.86	)		—			—			—			—
Total distributions		—			(3.73	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net asset value, end of period	$	32.48		$	31.15		$	32.96		$	30.70		$	28.55		$	27.96
Total Returnc		4.27	%		6.97	%		9.55	%		7.99	%		7.83	%		15.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,744		$	8,270		$	10,438		$	8,417		$	8,387		$	7,001
Ratios to average net assets:
Net investment income (loss)		0.74	%		0.69	%		0.94	%		1.18	%		1.22	%		1.62	%
Total expenses		2.39	%		2.37	%		2.35	%		2.35	%		2.38	%		2.36	%
Portfolio turnover rate		281	%		507	%		475	%		384	%		508	%		534	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	35.12		$	36.40		$	33.61		$	31.09		$	30.19		$	27.10
Income (loss) from investment operations:
Net investment income (loss)b		.18			.41			.54			.60			.69			.48
Net gain (loss) on investments (realized and unrealized)		1.46			2.04			2.82			2.05			1.67			3.73
Total from investment operations		1.64			2.45			3.36			2.65			2.36			4.21
Less distributions from:
Net investment income		—			(.87	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net realized gains		—			(2.86	)		—			—			—			—
Total distributions		—			(3.73	)		(.57	)		(.13	)		(1.46	)		(1.12	)
Net asset value, end of period	$	36.76		$	35.12		$	36.40		$	33.61		$	31.09		$	30.19
Total Returnc		4.67	%		7.80	%		10.31	%		8.53	%		8.29	%		16.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,239		$	5,379		$	6,448		$	13,546		$	2,269		$	4,812
Ratios to average net assets:
Net investment income (loss)		0.97	%		1.13	%		1.65	%		1.79	%		2.32	%		1.70	%
Total expenses		1.64	%		1.62	%		1.68	%		1.84	%		1.88	%		1.85	%
Portfolio turnover rate		281	%		507	%		475	%		384	%		508	%		534	%

a	Unaudited figures for the period ended September 30, 2017. 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	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory 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 seven separate classes of shares: Investor 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 require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2017, the Trust consisted of fifty-three 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, 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI 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, 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) Valuation of Investments

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 and/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, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the

152 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used 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 sale 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 sale 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 using methods established or ratified by the Board. 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 market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

(b) Currency Translations

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.

(c) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of dividend income and foreign taxes on capital gains from sales of investments are included with the net realized and unrealized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2017, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(d) Security Transactions

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 153

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(e) Distributions

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

(f) Class Allocations

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

(g) Cash

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, which was 1.06% at September 30, 2017.

(h) Indemnifications

Under the Funds’ organizational documents, the 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.

Note 2 – Fees and Other Transactions with Affiliates

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

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

GI 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.

154 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

For the period ended September 30, 2017, GFD retained sales charges of $98,853 relating to sales of A-Class shares of the Trust.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Trust’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Trust’s securities and cash. For providing the aforementioned services, MUIS is entitled to receive a monthly fee equal to an annual percentage of the Funds’ average daily net assets subject to certain minimum monthly fees and out of pocket expenses.

Note 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, 2017, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Banking Fund	$	34,310,786	$	699,438	$	(33,027	)	$	666,411
Basic Materials Fund		78,602,656		7,494,132		(570,169	)		6,923,963
Biotechnology Fund		284,986,773		146,605,454		(4,643,798	)		141,961,656
Consumer Products Fund		197,534,347		62,218,751		(1,563,502	)		60,655,249
Electronics Fund		29,076,795		3,995,545		(102,240	)		3,893,305
Energy Fund		45,238,915		—		(5,123,538	)		(5,123,538	)
Energy Services Fund		25,341,067		—		(3,109,925	)		(3,109,925	)
Financial Services Fund		48,157,592		4,837,192		(170,027	)		4,667,165
Health Care Fund		104,028,020		3,657,869		(1,589,392	)		2,068,477
Internet Fund		73,123,720		9,331,888		(217,280	)		9,114,608
Leisure Fund		15,658,300		2,560,154		(236,724	)		2,323,430
Precious Metals Fund		103,768,588		—		(17,035,144	)		(17,035,144	)
Real Estate Fund		33,712,060		—		(752,084	)		(752,084	)
Retailing Fund		14,937,771		—		(249,842	)		(249,842	)
Technology Fund		84,089,995		14,112,127		(460,882	)		13,651,245
Telecommunications Fund		2,698,045		392,878		(3,759	)		389,119
Transportation Fund		52,403,175		6,017,438		(31,342	)		5,986,096
Utilities Fund		52,144,514		1,051,116		(211,083	)		840,033

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 155

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 4 – Fair Value Measurement

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

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

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

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

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

The 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.

Note 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 joint account includes other Funds in the Guggenheim complex not covered in this report. 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, 2017, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
BNP Paribas 1.00% Due 10/02/17	$	109,021,803	$	109,030,888	U.S Treasury Note 1.13% 02/28/21	$	113,209,345	$	111,202,284
Bank of America Merrill Lynch 1.05% Due 10/02/17		54,510,901		54,515,671	U.S. Treasury Note 1.63% 05/31/23		56,433,458		55,601,193
HSBC Securities, Inc. 0.91% Due 10/02/17		1,950,547		1,950,695	U.S. Treasury Strips 0.00% 08/15/39		3,667,000		1,989,778

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. GI, acting under the supervision of the Board, 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.

156 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 6 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At September 30, 2017, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
Banking Fund	$	198,823	$	(198,823	)	$	—	$	202,481	$	—	$	202,481
Basic Materials Fund		3,008,496		(3,008,496	)		—		3,088,603		—		3,088,603
Biotechnology Fund		22,326,563		(22,326,563	)		—		22,839,008		—		22,839,008
Consumer Products Fund		4,468,128		(4,468,128	)		—		4,523,114		—		4,523,114
Electronics Fund		805,663		(805,663	)		—		818,235		—		818,235
Energy Fund		2,067,543		(2,067,543	)		—		2,136,508		—		2,136,508
Energy Services Fund		3,143,621		(3,143,621	)		—		3,214,384		—		3,214,384
Financial Services Fund		731,644		(731,644	)		—		747,201		—		747,201
Health Care Fund		2,506,523		(2,506,523	)		—		2,547,280		—		2,547,280
Internet Fund		2,033,122		(2,033,122	)		—		2,097,250		—		2,097,250
Leisure Fund		1,014,960		(1,014,960	)		—		1,040,423		—		1,040,423
Precious Metals Fund		6,896,652		(6,896,652	)		—		7,312,958		—		7,312,958
Real Estate Fund		689,315		(689,315	)		—		708,933		—		708,933
Retailing Fund		703,612		(703,612	)		—		729,872		—		729,872
Technology Fund		2,512,291		(2,512,291	)		—		2,560,633		—		2,560,633
Telecommunications Fund		142,540		(142,540	)		—		147,134		—		147,134
Transportation Fund		3,433,593		(3,433,593	)		—		3,522,519		—		3,522,519

^(a) Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds have securities lending agreements to evaluate potential risks.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 157

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 7 – Securities Transactions

For the period ended September 30, 2017, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Banking Fund	$	267,104,420	$	296,594,306
Basic Materials Fund		81,096,474		92,057,192
Biotechnology Fund		221,101,698		186,015,762
Consumer Products Fund		137,721,280		191,718,445
Electronics Fund		163,417,508		216,072,582
Energy Fund		183,656,065		177,499,386
Energy Services Fund		156,410,841		154,174,729
Financial Services Fund		103,387,023		115,537,476
Health Care Fund		197,149,202		150,533,712
Internet Fund		121,506,012		74,021,850
Leisure Fund		78,595,165		85,516,689
Precious Metals Fund		196,474,013		181,005,748
Real Estate Fund		160,205,846		136,895,924
Retailing Fund		179,984,907		177,889,266
Technology Fund		133,312,446		132,024,809
Telecommunications Fund		34,107,964		46,380,255
Transportation Fund		121,556,091		115,233,559
Utilities Fund		156,928,285		150,909,796

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2017, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Banking Fund	$	11,413,064	$	7,552,192	$	225,367
Basic Materials Fund		8,491,598		6,547,466		(193,174	)
Biotechnology Fund		7,218,540		9,968,733		(58,888	)
Consumer Products Fund		4,728,257		15,169,560		(193,538	)
Electronics Fund		20,981,052		12,982,536		923,546
Energy Fund		30,252,450		20,312,575		(720,976	)
Energy Services Fund		6,775,377		7,717,141		(384,004	)
Financial Services Fund		24,262,821		21,454,838		620,438
Health Care Fund		18,121,012		27,240,975		226,379
Internet Fund		16,840,270		7,711,258		166,824
Leisure Fund		15,504,584		12,628,034		591,927
Precious Metals Fund		10,160,033		7,638,925		226,733
Real Estate Fund		14,119,953		14,827,894		(136,750	)
Retailing Fund		31,690,040		16,763,616		519,851
Technology Fund		18,345,558		24,534,817		991,363
Telecommunications Fund		2,131,720		4,635,087		113,774
Transportation Fund		6,858,168		8,114,242		63,986
Utilities Fund		5,568,550		9,488,044		1,069,528

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 8 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2018. 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 1.92% for the period ended September 30, 2017. The Funds did not have any borrowings outstanding under this agreement at September 30, 2017.

The average daily balances borrowed for the period ended September 30, 2017, were as follows:

Fund	Average Daily Balance
Banking Fund	$	47,552
Basic Materials Fund		10,622
Biotechnology Fund		1,635
Consumer Products Fund		8,602
Electronics Fund		44,179
Energy Fund		3,712
Energy Services Fund		9,906
Financial Services Fund		8,539
Health Care Fund		1,541
Internet Fund		34,179
Leisure Fund		14,281
Precious Metals Fund		41,517
Real Estate Fund		8,641
Retailing Fund		10,096
Technology Fund		27,968
Telecom Fund		9,882
Transportation Fund		2,273
Utilities Fund		4,312

Note 9 – Share Splits

Share splits occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
Energy Fund	November 7, 2016	One-for-Four Reverse Split
Financial Services Fund	October 31, 2016	Two-for-One Share Split

The effect of the reverse share split was to divide the number of outstanding shares of the Energy Fund by its split ratio, resulting in a corresponding increase in the NAV. The effect of the share split was to multiply the number of outstanding shares of the Financial Services Fund by its split ratio, resulting in a corresponding decrease 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 prior to the effective date, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Note 10 – Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

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 or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

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. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but will wait to do so until it has resolved outstanding motions to dismiss filed by other defendants. Accordingly, the timing of the appeal is uncertain.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law.

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”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.) (“Reichman”).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek 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. The Creditor Trust

160 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

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 Bankruptcy 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 Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment. On May 30, 2017, the shareholder defendants filed a motion to remand the proceedings in the Creditor Trust and Reichman Actions to the Bankruptcy Court, for consideration of the collateral estoppel ground for dismissal raised by the Bankruptcy Court’s ruling in the Blavatnik Action. On August 18, 2017, the plaintiff in the Creditor Trust action filed a notice of dismissal of claims brought against defendants who had not answered the Third Amended Complaint. The same day, the plaintiff in the Reichman action filed a notice of dismissal of all claims against named defendants who had not filed an answer and withdrew his request for class certification of a defendant class. On September 5, 2017, the Court entered an order dismissing the Creditor Trust and Reichman actions with prejudice. The Court’s order dismissed the actions as to all defendants as well as to unnamed members of the putative defendant class in the Reichman action.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set. On April 21, 2017, the Bankruptcy Court issued an Opinion and Order After Trial in a related Lyondell litigation (the “Blavatnik Action”) rejecting claims for intentional fraudulent transfer and constructive fraudulent transfer in connection with the 2007 LBO. Based on this related ruling in the Blavatnik Action, the shareholder defendants filed a motion to dismiss the Litigation Trust Action on the grounds of collateral estoppel on May 30, 2017. Although the Bankruptcy Court had not yet ruled on the motion to dismiss, on August 15, 2017, the plaintiff in the Litigation Trust action filed a notice of dismissal of all claims against the defendants who joined the motion to dismiss. On August 18, 2017, the Litigation Trust plaintiff also withdrew his request for class certification of a defendant class in the Litigation Trust action. On September 5, 2017, the Court entered an order dismissing the Litigation Trust action with prejudice. The Court’s order dismissed the action as to all defendants as well as to unnamed members of the putative defendant class.

As a result of the dismissals above, there are no longer claims pending against the Rydex Series Funds related to the Lyondell merger.

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 161

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 https://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 https://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 https://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 Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 25, 2017, 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 Security Investors, LLC (the “Advisor”) applicable to 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, each a series of the Trust (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 26, 2017 (together, with the May 25 meeting, the “Meetings”). The Board considered the materials provided by the Advisor and the review conducted at the April 26 meeting to be an integral part of the Trustees’ deliberations and their process in considering the renewal of the Investment Advisory Agreement.

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 the independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the renewal or approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent 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 substantial commitment to the recruitment and retention of high quality personnel; (c) 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

162 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

for breakpoints at this point in time; (d) each Fund’s overall fees and operating expenses compared with those of similar funds; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors that was 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 for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to such Fund; 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 (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. 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 considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. 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. The Board also discussed the correlation between a Fund’s assets under management and tracking error, noting that a Fund’s ability to replicate an underlying index rather than employ representative sampling depends, in part, upon the Fund’s size. 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 also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 163

OTHER INFORMATION (Unaudited)(concluded)

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 Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under the distribution agreement, Distribution Plans, and Distribution and Shareholder Services Plans 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 affiliate’s 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.

164 | 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: Vice Chairman, Guggenheim Investments (2010-present). Former: President and CEO, certain other funds in the Fund complex (2012-November 2017); Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	226	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle (1959)	Trustee, Member of the Audit Committee, Chairwoman and Member of the Compliance and Risk Oversight Committee, and Member of the Nominating and Governance Committee from 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	133	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Nominating and 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 (3) (2009-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

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
John O. Demaret (1940)	Trustee and Member of the Audit Committee from 1997 to present; Member of the Compliance and Risk Oversight Committee from 2010 to present; Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman and Trustee of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; Member of the Compliance and Risk Oversight Committee from 2015 to present; Member of the Nominating and Governance Committee from 2015 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; and Chairman and Member of the Nominating and 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; Member of the Nominating and 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.
Sandra G. Sponem (1958)	Trustee, Member of the Audit Committee, and Chairwoman and Member of the Investment and Performance Committee from 2016 to present.	Current: Retired Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	133	None.

166 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
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.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2014-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager of Mutual Fund Administration, Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Treasurer and Assistant Treasurer, certain other funds in the Fund Complex (2010-present); Managing Director, Guggenheim Investments (2015-present); Chief Financial Officer, Guggenheim Specialized Products, LLC (2016-present). Former: Managing Director and Director, Transparent Value, LLC (2010-2016); Director, Guggenheim Partners Investment Management, LLC (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	President (November 2017-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (November 2017-present); 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).
Mark E. Mathiasen (1978)	Secretary (November 2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); 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).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (November 2017-Present)	Current: Vice President, Guggenheim Investments (July 2017-present); Assistant Treasurer, certain other funds in the Fund Complex (November 2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (February-June 2017); Senior Analyst of US Fund Administration, HGINA (2014-January 2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

168 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

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 personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

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 Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes 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 Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. 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 your personal 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. In connection with servicing your accounts or 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 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 personal 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 share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

 

9.30.2017

Rydex Funds Semi-Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

Dow Jones Industrial Average^® Fund

Fixed Income Funds

Government Long Bond 1.2x Strategy Fund

Inverse Government Long Bond Strategy Fund

High Yield Strategy Fund

Inverse High Yield Strategy Fund

Money Market Fund

U.S. Government Money Market Fund

GuggenheimInvestments.com RBENF-SEMI-0917x0318

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
NOVA FUND	12
S&P 500® FUND	27
INVERSE S&P 500® STRATEGY FUND	39
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	47
INVERSE NASDAQ-100® STRATEGY FUND	56
MID-CAP 1.5x STRATEGY FUND	64
INVERSE MID-CAP STRATEGY FUND	75
RUSSELL 2000® 1.5x STRATEGY FUND	82
RUSSELL 2000® FUND	108
INVERSE RUSSELL 2000® STRATEGY FUND	134
DOW JONES INDUSTRIAL AVERAGE® FUND	141
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	148
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	158
HIGH YIELD STRATEGY FUND	167
INVERSE HIGH YIELD STRATEGY FUND	175
U.S. GOVERNMENT MONEY MARKET FUND	182
NOTES TO FINANCIAL STATEMENTS	188
OTHER INFORMATION	206
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	209
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	213

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2017

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semiannual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2017.

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,

Security Investors, LLC
October 31, 2017

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.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

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

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

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2017

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2017

Over the past few months, the equity markets have faced massive hurricanes in the South, rising tensions with North Korea and ongoing uncertainty surrounding domestic policy. Despite it all, the major stock indices continue to trade at or near record levels. The market’s resiliency seems to underscore that, at the end of the day, it’s fundamentals that drive equity markets and not political headlines or geopolitical tensions.

A noticeable shift in market sentiment during the third quarter led to a rotation into cyclical and small capitalization stocks. Value factors also began to outperform in September, a significant change from year-to-date performance. From a macro standpoint, the primary drivers of the value trade include rising inflationary expectations, economic growth and the prospects of tax reform.

Outside the U.S., both the European and emerging markets outperformed the Standard & Poor’s 500^®(“S&P 500^®”) Index on a dollar denominated basis. Renewed interest in both regions reflected attractive relative valuation and the synchronized global economic expansion.

Assuming no major geopolitical or other unforeseen shocks, we expect the U.S. economy will grow by between 2.0–2.5% in real terms in 2017 and 2018, supported by a strong labor market at home, a synchronized upswing in the global economy, and favorable financial conditions. Risks to our growth outlook are to the upside if Washington delivers on promises to cut taxes. Third quarter economic data was less distorted by the recent hurricanes than expected, and rebuilding efforts should be a positive for growth heading into 2018.

The labor market is steadily tightening, as seen in the drop in the unemployment rate to a cycle low of 4.2% in September, underscoring the robust—and unsustainable—underlying trend in hiring. Leading indicators, including hiring intentions surveys, point to further declines in the unemployment rate. Meanwhile, inflation continues to be well below the U.S. Federal Reserve’s (the “Fed”) 2% longer-run goal, with core personal consumption expenditure inflation coming in at 1.3% in September. However, inflation lags Gross Domestic Product (“GDP”) growth by about six quarters; because growth has accelerated over the past year, and the dollar has depreciated, inflation will likely move closer to 2% by the second quarter of 2018.

The firming U.S. economy, coupled with synchronized global growth and stabilization in the U.S. dollar, is likely to be supportive of the U.S. earnings environment. On the valuation front, while elevated relative to long-term averages, multiples still remain well below extreme levels. Economic and financial conditions are supportive enough for the Fed to continue to resume a quarterly pattern of rate increases in December, and to begin balance sheet normalization this year. Interest rates are expected to remain supportive of risk assets.

For the six months ended September 30, 2017, S&P 500^® Index* returned 7.71%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 10.99%. The return of the MSCI Emerging Markets Index* was 14.66%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.31% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 4.19%. The return of the Bank of America (“BofA”)Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.47% 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.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2017

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

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.

Dow Jones Industrial Average^® is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

6 | THE RYDEX FUNDS 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, 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, 2017 and ending September 30, 2017.

The following tables illustrate the Funds’ 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 fifth 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 the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), 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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.29%	10.46%	$1,000.00	$1,104.60	$6.81
A-Class	1.54%	10.18%	1,000.00	1,101.80	8.11
C-Class	2.29%	9.95%	1,000.00	1,099.50	12.05
H-Class	1.54%	10.38%	1,000.00	1,103.80	8.12
S&P 500® Fund
A-Class	1.60%	6.83%	1,000.00	1,068.30	8.30
C-Class	2.34%	6.42%	1,000.00	1,064.20	12.11
H-Class	1.60%	6.83%	1,000.00	1,068.30	8.30
Inverse S&P 500® Strategy Fund
Investor Class	1.44%	(6.87%)	1,000.00	931.30	6.97
A-Class	1.69%	(6.99%)	1,000.00	930.10	8.18
C-Class	2.44%	(7.33%)	1,000.00	926.70	11.79
H-Class	1.69%	(6.99%)	1,000.00	930.10	8.18
Monthly Rebalance Nasdaq-100® 2x Strategy Fund
A-Class	1.35%	19.91%	1,000.00	1,199.10	7.44
C-Class	2.10%	19.49%	1,000.00	1,194.90	11.55
H-Class	1.35%	19.90%	1,000.00	1,199.00	7.44
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.48%	(9.47%)	1,000.00	905.30	7.07
A-Class	1.73%	(9.57%)	1,000.00	904.30	8.26
C-Class	2.47%	(9.90%)	1,000.00	901.00	11.82
H-Class	1.73%	(9.59%)	1,000.00	904.10	8.26
Mid-Cap 1.5x Strategy Fund
A-Class	1.70%	6.75%	1,000.00	1,067.50	8.81
C-Class	2.45%	6.35%	1,000.00	1,063.50	12.67
H-Class	1.70%	6.74%	1,000.00	1,067.40	8.81
Inverse Mid-Cap Strategy Fund
A-Class	1.70%	(5.10%)	1,000.00	949.00	8.31
C-Class	2.45%	(5.52%)	1,000.00	944.80	11.94
H-Class	1.70%	(5.10%)	1,000.00	949.00	8.31
Russell 2000® 1.5x Strategy Fund
A-Class	1.74%	11.56%	1,000.00	1,115.60	9.23
C-Class	2.49%	11.13%	1,000.00	1,111.30	13.18
H-Class	1.74%	11.53%	1,000.00	1,115.30	9.23
Russell 2000® Fund
A-Class	1.64%	7.48%	1,000.00	1,074.80	8.53
C-Class	2.39%	7.05%	1,000.00	1,070.50	12.41
H-Class	1.64%	7.47%	1,000.00	1,074.70	8.53
Inverse Russell 2000® Strategy Fund
A-Class	1.74%	(8.04%)	1,000.00	919.60	8.37
C-Class	2.49%	(8.45%)	1,000.00	915.50	11.96
H-Class	1.74%	(8.15%)	1,000.00	918.50	8.37

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.58%	8.93%	$1,000.00	$1,089.30	$8.28
C-Class	2.33%	8.52%	1,000.00	1,085.20	12.18
H-Class	1.58%	8.92%	1,000.00	1,089.20	8.27
Government Long Bond 1.2x Strategy Fund
Investor Class	0.99%	5.10%	1,000.00	1,051.00	5.09
A-Class	1.24%	4.99%	1,000.00	1,049.90	6.37
C-Class	1.99%	4.59%	1,000.00	1,045.90	10.21
H-Class	1.24%	4.97%	1,000.00	1,049.70	6.37
Inverse Government Long Bond Strategy Fund
Investor Class	3.50%	(4.69%)	1,000.00	953.10	17.14
A-Class	3.78%	(4.84%)	1,000.00	951.60	18.49
C-Class	4.50%	(5.19%)	1,000.00	948.10	22.03
H-Class	3.80%	(4.85%)	1,000.00	951.50	18.64
High Yield Strategy Fund
A-Class	1.53%	3.15%	1,000.00	1,031.50	7.79
C-Class	2.28%	2.78%	1,000.00	1,027.80	11.59
H-Class	1.53%	3.16%	1,000.00	1,031.60	7.79
Inverse High Yield Strategy Fund
A-Class	1.54%	(3.03%)	1,000.00	969.70	7.60
C-Class	2.29%	(3.46%)	1,000.00	965.40	11.28
H-Class	1.54%	(3.41%)	1,000.00	965.90	7.59
U.S. Government Money Market Fund
Money Market Class	0.93%	0.04%	1,000.00	1,000.40	4.66

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.29%	5.00%	$1,000.00	$1,018.60	$6.53
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
S&P 500® Fund
A-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
C-Class	2.34%	5.00%	1,000.00	1,013.34	11.81
H-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
Inverse S&P 500® Strategy Fund
Investor Class	1.44%	5.00%	1,000.00	1,017.85	7.28
A-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
C-Class	2.44%	5.00%	1,000.00	1,012.84	12.31
H-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
Monthly Rebalance Nasdaq-100® 2x Strategy Fund
A-Class	1.35%	5.00%	1,000.00	1,018.30	6.83
C-Class	2.10%	5.00%	1,000.00	1,014.54	10.61
H-Class	1.35%	5.00%	1,000.00	1,018.30	6.83
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.65	7.49
A-Class	1.73%	5.00%	1,000.00	1,016.39	8.74
C-Class	2.47%	5.00%	1,000.00	1,012.63	12.51
H-Class	1.73%	5.00%	1,000.00	1,016.39	8.74
Mid-Cap 1.5x Strategy Fund
A-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
C-Class	2.45%	5.00%	1,000.00	1,012.78	12.36
H-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
Inverse Mid-Cap Strategy Fund
A-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
C-Class	2.45%	5.00%	1,000.00	1,012.78	12.36
H-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
Russell 2000® 1.5x Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
Russell 2000® 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 Russell 2000® Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.74%	5.00%	1,000.00	1,016.34	8.80

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
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
H-Class	1.58%	5.00%	1,000.00	1,017.15	7.99
Government Long Bond 1.2x Strategy Fund
Investor Class	0.99%	5.00%	1,000.00	1,020.10	5.01
A-Class	1.24%	5.00%	1,000.00	1,018.85	6.28
C-Class	1.99%	5.00%	1,000.00	1,015.09	10.05
H-Class	1.24%	5.00%	1,000.00	1,018.85	6.28
Inverse Government Long Bond Strategy Fund
Investor Class	3.50%	5.00%	1,000.00	1,007.52	17.61
A-Class	3.78%	5.00%	1,000.00	1,006.12	19.01
C-Class	4.50%	5.00%	1,000.00	1,002.46	22.64
H-Class	3.80%	5.00%	1,000.00	1,005.97	19.16
High Yield Strategy Fund
A-Class	1.53%	5.00%	1,000.00	1,017.40	7.74
C-Class	2.28%	5.00%	1,000.00	1,013.64	11.51
H-Class	1.53%	5.00%	1,000.00	1,017.40	7.74
Inverse High Yield Strategy 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
U.S. Government Money Market Fund
Money Market Class	0.93%	5.00%	1,000.00	1,020.41	4.71

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 1.43%, 1.68%, 2.43% and 1.69% for the Investor Class, A-Class, C-Class, and H-Class, respectively. Excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2017 to September 30, 2017.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
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 II	11.1%
Guggenheim Strategy Fund I	10.6%
Guggenheim Strategy Fund III	6.3%
Apple, Inc.	2.0%
Microsoft Corp.	1.4%
Facebook, Inc. — Class A	1.0%
Amazon.com, Inc.	0.9%
Berkshire Hathaway, Inc. — Class B	0.9%
Johnson & Johnson	0.9%
Exxon Mobil Corp.	0.9%
Top Ten Total	36.0%

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

12 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	10.46%	26.07%	19.24%	7.65%
A-Class Shares	10.18%	25.58%	18.94%	7.38%
A-Class Shares with sales charge‡	4.95%	19.62%	17.78%	6.86%
C-Class Shares	9.95%	24.84%	18.06%	6.59%
C-Class Shares with CDSC§	8.95%	23.84%	18.06%	6.59%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%
		6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares		10.38%	25.87%	12.21%
S&P 500 Index		7.71%	18.61%	9.99%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
NOVA FUND

	Shares		Value
COMMON STOCKS† - 52.5%
Consumer, Non-cyclical - 11.8%
Johnson & Johnson		7,347	$	955,183
Procter & Gamble Co.		6,980		635,041
Pfizer, Inc.		16,336		583,195
UnitedHealth Group, Inc.		2,647		518,416
Merck & Company, Inc.		7,487		479,393
Coca-Cola Co.		10,508		472,964
Philip Morris International, Inc.		4,251		471,904
PepsiCo, Inc.		3,910		435,691
AbbVie, Inc.		4,363		387,696
Amgen, Inc.		1,997		372,340
Altria Group, Inc.		5,252		333,082
Celgene Corp.*		2,141		312,201
Gilead Sciences, Inc.		3,575		289,647
Medtronic plc		3,708		288,370
Bristol-Myers Squibb Co.		4,489		286,129
Abbott Laboratories		4,756		253,779
Eli Lilly & Co.		2,652		226,852
Thermo Fisher Scientific, Inc.		1,095		207,174
PayPal Holdings, Inc.*		3,093		198,044
Allergan plc		915		187,529
Biogen, Inc.*		579		181,296
Colgate-Palmolive Co.		2,411		175,641
Mondelez International, Inc. — Class A		4,127		167,804
Aetna, Inc.		908		144,381
Danaher Corp.		1,673		143,510
Anthem, Inc.		719		136,524
Automatic Data Processing, Inc.		1,216		132,932
Cigna Corp.		689		128,802
Kraft Heinz Co.		1,633		126,639
Stryker Corp.		881		125,120
Becton Dickinson and Co.		623		122,077
Kimberly-Clark Corp.		967		113,797
S&P Global, Inc.		704		110,041
Boston Scientific Corp.*		3,756		109,563
Intuitive Surgical, Inc.*		102		106,680
Vertex Pharmaceuticals, Inc.*		689		104,756
Express Scripts Holding Co.*		1,581		100,109
Humana, Inc.		396		96,477
Constellation Brands, Inc. — Class A		471		93,941
Regeneron Pharmaceuticals, Inc.*		210		93,895
Ecolab, Inc.		713		91,698
McKesson Corp.		575		88,326
Baxter International, Inc.		1,372		86,093
Alexion Pharmaceuticals, Inc.*		611		85,717
Zoetis, Inc.		1,344		85,693
General Mills, Inc.		1,580		81,781
Illumina, Inc.*		399		79,481
Sysco Corp.		1,329		71,700
Estee Lauder Companies, Inc. — Class A		612		65,998
Archer-Daniels-Midland Co.		1,540		65,465
Zimmer Biomet Holdings, Inc.		553		64,751
CR Bard, Inc.		199		63,780
Moody’s Corp.		455		63,341
Edwards Lifesciences Corp.*		578		63,181
HCA Healthcare, Inc.*		791		62,956
Monster Beverage Corp.*		1,135		62,709
Cardinal Health, Inc.		866		57,953
Tyson Foods, Inc. — Class A		791		55,726
Incyte Corp.*		467		54,518
Kroger Co.		2,456		49,267
Clorox Co.		353		46,564
Mylan N.V.*		1,467		46,020
Centene Corp.*		472		45,675
Dr Pepper Snapple Group, Inc.		497		43,970
IHS Markit Ltd.*		994		43,816
Kellogg Co.		680		42,412
Hershey Co.		386		42,140
Laboratory Corporation of America Holdings*		279		42,121
Molson Coors Brewing Co. — Class B		506		41,310
Global Payments, Inc.		417		39,628
Quintiles IMS Holdings, Inc.*		415		39,454
Conagra Brands, Inc.		1,138		38,396
Nielsen Holdings plc		919		38,093
Dentsply Sirona, Inc.		628		37,561
IDEXX Laboratories, Inc.*		239		37,162
Align Technology, Inc.*		197		36,695
AmerisourceBergen Corp. — Class A		443		36,658
Henry Schein, Inc.*		434		35,584
Verisk Analytics, Inc. — Class A*		425		35,356
Equifax, Inc.		330		34,977
Quest Diagnostics, Inc.		373		34,928
Cintas Corp.		234		33,762
McCormick & Company, Inc.		325		33,358
Church & Dwight Company, Inc.		683		33,091
JM Smucker Co.		311		32,633
United Rentals, Inc.*,1		231		32,049
Cooper Companies, Inc.		133		31,536
Gartner, Inc.*		248		30,854
Perrigo Company plc		363		30,728
Total System Services, Inc.		459		30,065
ResMed, Inc.		389		29,937
Brown-Forman Corp. — Class B		536		29,105
Hologic, Inc.*		768		28,178
Universal Health Services, Inc. — Class B		242		26,847
Varian Medical Systems, Inc.*		251		25,115
DaVita, Inc.*		419		24,884
Campbell Soup Co.		531		24,861
Western Union Co.		1,270		24,384
Avery Dennison Corp.		242		23,798
Hormel Foods Corp.		738		23,719
Coty, Inc. — Class A		1,291		21,340
Robert Half International, Inc.		345		17,367
Quanta Services, Inc.*		414		15,471
H&R Block, Inc.		572		15,147
Envision Healthcare Corp.*		331		14,878
Patterson Companies, Inc.		225		8,696
Total Consumer, Non-cyclical				13,289,072

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NOVA FUND

	Shares		Value
Financial - 9.9%
Berkshire Hathaway, Inc. — Class B*		5,267	$	965,545
JPMorgan Chase & Co.		9,633		920,047
Bank of America Corp.		26,859		680,606
Wells Fargo & Co.		12,229		674,429
Citigroup, Inc.		7,458		542,495
Visa, Inc. — Class A		5,008		527,041
Mastercard, Inc. — Class A		2,556		360,907
Goldman Sachs Group, Inc.		984		233,395
U.S. Bancorp		4,350		233,117
Morgan Stanley		3,871		186,466
American Express Co.		2,008		181,644
Chubb Ltd.		1,274		181,609
PNC Financial Services Group, Inc.		1,312		176,818
American Tower Corp. — Class A REIT		1,175		160,598
American International Group, Inc.		2,473		151,817
BlackRock, Inc. — Class A		339		151,564
MetLife, Inc.		2,909		151,123
Bank of New York Mellon Corp.		2,828		149,941
Charles Schwab Corp.		3,262		142,680
Simon Property Group, Inc. REIT		851		137,019
CME Group, Inc. — Class A		930		126,182
Prudential Financial, Inc.		1,169		124,288
Marsh & McLennan Companies, Inc.		1,403		117,585
Capital One Financial Corp.		1,324		112,090
Crown Castle International Corp. REIT		1,112		111,178
Intercontinental Exchange, Inc.		1,611		110,676
BB&T Corp.		2,212		103,831
Aon plc		696		101,686
State Street Corp.		1,023		97,737
Equinix, Inc. REIT		213		95,062
Travelers Companies, Inc.		755		92,503
Prologis, Inc. REIT		1,456		92,398
Allstate Corp.		989		90,899
Aflac, Inc.		1,082		88,064
Public Storage REIT		410		87,736
SunTrust Banks, Inc.		1,314		78,538
Progressive Corp.		1,593		77,133
Welltower, Inc. REIT		1,010		70,983
Weyerhaeuser Co. REIT		2,061		70,136
AvalonBay Communities, Inc. REIT		378		67,443
M&T Bank Corp.		416		66,993
Digital Realty Trust, Inc. REIT		560		66,265
Equity Residential REIT		1,005		66,260
Discover Financial Services		1,019		65,705
Synchrony Financial		2,047		63,559
Ventas, Inc. REIT		975		63,502
Ameriprise Financial, Inc.		410		60,889
T. Rowe Price Group, Inc.		658		59,648
Willis Towers Watson plc		367		56,602
Fifth Third Bancorp		2,016		56,408
KeyCorp		2,976		56,008
Hartford Financial Services Group, Inc.		997		55,264
Northern Trust Corp.		588		54,055
Citizens Financial Group, Inc.		1,370		51,882
Boston Properties, Inc. REIT		422		51,855
Regions Financial Corp.		3,271		49,817
SBA Communications Corp. REIT*		329		47,392
Principal Financial Group, Inc.		735		47,290
Essex Property Trust, Inc. REIT		181		45,979
Lincoln National Corp.		606		44,529
Realty Income Corp. REIT		750		42,893
Huntington Bancshares, Inc.		2,984		41,657
Franklin Resources, Inc.		900		40,059
Invesco Ltd.		1,113		39,000
Host Hotels & Resorts, Inc. REIT		2,026		37,461
Comerica, Inc.		481		36,681
Vornado Realty Trust REIT		472		36,287
Loews Corp.		756		36,182
HCP, Inc. REIT		1,283		35,706
GGP, Inc. REIT		1,714		35,600
Mid-America Apartment Communities, Inc. REIT		311		33,240
CBOE Holdings, Inc.		308		33,150
E*TRADE Financial Corp.*		753		32,838
Unum Group		617		31,547
Cincinnati Financial Corp.		408		31,241
CBRE Group, Inc. — Class A*		823		31,175
Alexandria Real Estate Equities, Inc. REIT		256		30,456
Arthur J Gallagher & Co.		493		30,344
Raymond James Financial, Inc.		351		29,600
Alliance Data Systems Corp.		132		29,245
Affiliated Managers Group, Inc.		153		29,044
Iron Mountain, Inc. REIT		723		28,125
Duke Realty Corp. REIT		974		28,071
XL Group Ltd.		706		27,852
UDR, Inc. REIT		732		27,838
Extra Space Storage, Inc. REIT		344		27,492
SL Green Realty Corp. REIT1		270		27,356
Zions Bancorporation		553		26,091
Everest Re Group Ltd.		112		25,580
Regency Centers Corp. REIT		405		25,126
Nasdaq, Inc.		319		24,745
Federal Realty Investment Trust REIT		198		24,594
Torchmark Corp.		296		23,707
Kimco Realty Corp. REIT		1,165		22,776
Apartment Investment & Management Co. — Class A REIT		430		18,860
People’s United Financial, Inc.		943		17,106
Macerich Co. REIT		298		16,381
Brighthouse Financial, Inc.*		262		15,930
Assurant, Inc.		147		14,041
Navient Corp.		750		11,265
Total Financial				11,111,253
Technology - 7.7%
Apple, Inc.		14,139		2,179,102
Microsoft Corp.		21,083		1,570,473
Intel Corp.		12,863		489,822
Oracle Corp.		8,266		399,661
International Business Machines Corp.		2,372		344,129
NVIDIA Corp.		1,641		293,361

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NOVA FUND

	Shares		Value
Broadcom Ltd.		1,113	$	269,947
Texas Instruments, Inc.		2,710		242,924
Accenture plc — Class A		1,692		228,538
QUALCOMM, Inc.		4,044		209,641
Adobe Systems, Inc.*		1,351		201,542
salesforce.com, Inc.*		1,869		174,602
Applied Materials, Inc.		2,919		152,051
Activision Blizzard, Inc.		2,066		133,278
Micron Technology, Inc.*		3,050		119,957
Cognizant Technology Solutions Corp. — Class A		1,616		117,225
Electronic Arts, Inc.*		845		99,761
Intuit, Inc.		666		94,665
HP, Inc.		4,572		91,257
Analog Devices, Inc.		1,006		86,687
Fidelity National Information Services, Inc.		910		84,985
Lam Research Corp.		445		82,343
Fiserv, Inc.*		575		74,152
Western Digital Corp.		807		69,725
Autodesk, Inc.*		600		67,356
DXC Technology Co.		779		66,901
Hewlett Packard Enterprise Co.		4,497		66,151
Cerner Corp.*		862		61,478
Microchip Technology, Inc.		636		57,100
Red Hat, Inc.*		486		53,878
Paychex, Inc.		876		52,525
Skyworks Solutions, Inc.		503		51,256
Xilinx, Inc.		681		48,235
KLA-Tencor Corp.		429		45,474
Synopsys, Inc.*		411		33,098
NetApp, Inc.		738		32,295
Cadence Design Systems, Inc.*		767		30,273
Citrix Systems, Inc.*		394		30,267
CA, Inc.		865		28,874
ANSYS, Inc.*		232		28,473
Advanced Micro Devices, Inc.*		2,202		28,076
Seagate Technology plc		787		26,105
Qorvo, Inc.*		348		24,597
Akamai Technologies, Inc.*		469		22,850
Xerox Corp.		584		19,441
CSRA, Inc.		447		14,425
Total Technology				8,698,956
Communications - 7.1%
Facebook, Inc. — Class A*		6,489		1,108,775
Amazon.com, Inc.*		1,091		1,048,833
Alphabet, Inc. — Class A*		816		794,556
Alphabet, Inc. — Class C*		826		792,225
AT&T, Inc.		16,808		658,369
Verizon Communications, Inc.		11,167		552,655
Comcast Corp. — Class A		12,876		495,469
Cisco Systems, Inc.		13,687		460,294
Walt Disney Co.		4,225		416,458
Priceline Group, Inc.*		134		245,330
Time Warner, Inc.		2,129		218,116
Netflix, Inc.*		1,182		214,356
Charter Communications, Inc. — Class A*		551		200,244
eBay, Inc.*		2,724		104,765
Twenty-First Century Fox, Inc. — Class A		2,881		76,001
CBS Corp. — Class B		997		57,826
Symantec Corp.		1,682		55,186
Expedia, Inc.		334		48,076
Omnicom Group, Inc.		631		46,738
Level 3 Communications, Inc.*		804		42,845
Motorola Solutions, Inc.		445		37,767
DISH Network Corp. — Class A*		623		33,785
Twenty-First Century Fox, Inc. — Class B		1,202		31,000
Juniper Networks, Inc.		1,041		28,971
CenturyLink, Inc.1		1,504		28,426
Viacom, Inc. — Class B		966		26,893
VeriSign, Inc.*		235		25,002
Scripps Networks Interactive, Inc. — Class A		263		22,589
Interpublic Group of Companies, Inc.		1,077		22,391
F5 Networks, Inc.*		174		20,977
News Corp. — Class A		1,046		13,870
TripAdvisor, Inc.*,1		296		11,997
Discovery Communications, Inc. — Class C*		556		11,265
Discovery Communications, Inc. — Class A*		421		8,963
News Corp. — Class B		333		4,545
Total Communications				7,965,558
Industrial - 5.4%
General Electric Co.		23,700		573,067
Boeing Co.		1,521		386,654
3M Co.		1,633		342,767
Honeywell International, Inc.		2,087		295,812
Union Pacific Corp.		2,191		254,089
United Technologies Corp.		2,033		235,991
United Parcel Service, Inc. — Class B		1,885		226,370
Lockheed Martin Corp.		686		212,859
Caterpillar, Inc.		1,617		201,656
General Dynamics Corp.		762		156,652
FedEx Corp.		676		152,492
Raytheon Co.		795		148,331
Northrop Grumman Corp.		477		137,242
CSX Corp.		2,500		135,650
Illinois Tool Works, Inc.		847		125,322
Emerson Electric Co.		1,751		110,033
Deere & Co.1		876		110,017
Norfolk Southern Corp.		788		104,205
Johnson Controls International plc		2,552		102,819
Eaton Corporation plc		1,218		93,530
Waste Management, Inc.		1,108		86,723
TE Connectivity Ltd.		967		80,319
Corning, Inc.		2,472		73,962
Cummins, Inc.		431		72,421
Amphenol Corp. — Class A		836		70,759
Roper Technologies, Inc.		279		67,909
Parker-Hannifin Corp.		364		63,707
Stanley Black & Decker, Inc.		419		63,256

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NOVA FUND

	Shares		Value
Rockwell Automation, Inc.		351	$	62,552
Ingersoll-Rand plc		694		61,884
Fortive Corp.		835		59,110
Rockwell Collins, Inc.		444		58,035
Agilent Technologies, Inc.		880		56,496
Mettler-Toledo International, Inc.*		70		43,831
Vulcan Materials Co.		362		43,295
Harris Corp.		327		43,059
AMETEK, Inc.		632		41,737
Republic Services, Inc. — Class A		627		41,420
L3 Technologies, Inc.		214		40,324
Ball Corp.		963		39,773
WestRock Co.		695		39,427
Waters Corp.*		219		39,315
Textron, Inc.		725		39,063
Dover Corp.		426		38,932
Martin Marietta Materials, Inc.		172		35,472
Masco Corp.		872		34,017
TransDigm Group, Inc.		132		33,746
Kansas City Southern		289		31,409
Xylem, Inc.		491		30,751
Pentair plc		452		30,718
Expeditors International of Washington, Inc.		495		29,631
Packaging Corporation of America		258		29,587
CH Robinson Worldwide, Inc.		384		29,222
Fortune Brands Home & Security, Inc.		421		28,304
Arconic, Inc.		1,062		26,423
J.B. Hunt Transport Services, Inc.		234		25,993
AO Smith Corp.		401		23,831
Snap-on, Inc.		158		23,544
Allegion plc		260		22,482
Sealed Air Corp.		520		22,214
PerkinElmer, Inc.		302		20,829
Acuity Brands, Inc.		114		19,526
Jacobs Engineering Group, Inc.		329		19,171
Stericycle, Inc.*		234		16,759
Garmin Ltd.		304		16,407
Fluor Corp.		382		16,082
Flowserve Corp.		358		15,247
FLIR Systems, Inc.		375		14,591
Total Industrial				6,028,823
Consumer, Cyclical - 4.5%
Home Depot, Inc.		3,227		527,807
McDonald’s Corp.		2,217		347,359
Wal-Mart Stores, Inc.		4,007		313,107
CVS Health Corp.		2,782		226,232
Starbucks Corp.		3,953		212,316
Costco Wholesale Corp.		1,200		197,148
Walgreens Boots Alliance, Inc.		2,519		194,517
NIKE, Inc. — Class B		3,597		186,504
Lowe’s Companies, Inc.		2,311		184,741
General Motors Co.		3,590		144,964
TJX Companies, Inc.		1,742		128,438
Ford Motor Co.		10,706		128,151
Marriott International, Inc. — Class A		856		94,383
Target Corp.		1,495		88,220
Delta Air Lines, Inc.		1,823		87,905
Southwest Airlines Co.		1,507		84,362
Carnival Corp.		1,116		72,061
Delphi Automotive plc		730		71,832
PACCAR, Inc.		961		69,519
Yum! Brands, Inc.		944		69,488
Ross Stores, Inc.		1,065		68,767
Dollar General Corp.		713		57,789
Newell Brands, Inc.		1,342		57,263
VF Corp.		894		56,832
American Airlines Group, Inc.		1,186		56,323
Dollar Tree, Inc.*		648		56,259
Royal Caribbean Cruises Ltd.		471		55,832
O’Reilly Automotive, Inc.*		241		51,904
MGM Resorts International		1,417		46,180
AutoZone, Inc.*		76		45,228
United Continental Holdings, Inc.*		708		43,103
Mohawk Industries, Inc.*		173		42,819
Best Buy Company, Inc.		726		41,353
Hilton Worldwide Holdings, Inc.		559		38,823
Genuine Parts Co.		402		38,451
CarMax, Inc.*		502		38,057
DR Horton, Inc.		931		37,174
Whirlpool Corp.		200		36,888
Ulta Beauty, Inc.*		160		36,170
Fastenal Co.		788		35,917
Wynn Resorts Ltd.		219		32,613
Coach, Inc.		773		31,136
LKQ Corp.*		845		30,412
Hasbro, Inc.		311		30,376
Wyndham Worldwide Corp.		281		29,620
Lennar Corp. — Class A		556		29,357
L Brands, Inc.		683		28,420
BorgWarner, Inc.		543		27,818
Darden Restaurants, Inc.		343		27,022
PVH Corp.		211		26,599
Alaska Air Group, Inc.		338		25,779
WW Grainger, Inc.		143		25,704
Tiffany & Co.		279		25,607
Hanesbrands, Inc.		998		24,591
Goodyear Tire & Rubber Co.		689		22,909
Harley-Davidson, Inc.		467		22,514
Tractor Supply Co.		347		21,962
Chipotle Mexican Grill, Inc. — Class A*		69		21,240
Kohl’s Corp.		461		21,045
PulteGroup, Inc.		760		20,771
Advance Auto Parts, Inc.		202		20,038
Michael Kors Holdings Ltd.*		415		19,858
Macy’s, Inc.		834		18,198
Gap, Inc.		601		17,748
Leggett & Platt, Inc.		362		17,278
Nordstrom, Inc.		318		14,994
Mattel, Inc.1		938		14,520
Ralph Lauren Corp. — Class A		152		13,420
Foot Locker, Inc.		359		12,644

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NOVA FUND

	Shares		Value
Signet Jewelers Ltd.1		166	$	11,047
Under Armour, Inc. — Class A*,1		506		8,339
Under Armour, Inc. — Class C*,1		510		7,660
Total Consumer, Cyclical				5,071,425
Energy - 3.2%
Exxon Mobil Corp.		11,599		950,885
Chevron Corp.		5,187		609,472
Schlumberger Ltd.		3,803		265,298
ConocoPhillips		3,331		166,717
EOG Resources, Inc.		1,581		152,946
Occidental Petroleum Corp.		2,092		134,327
Halliburton Co.		2,376		109,367
Phillips 66		1,176		107,733
Kinder Morgan, Inc.		5,255		100,791
Valero Energy Corp.		1,208		92,931
Marathon Petroleum Corp.		1,385		77,671
Anadarko Petroleum Corp.		1,534		74,936
Pioneer Natural Resources Co.		466		68,754
Williams Companies, Inc.		2,262		67,883
ONEOK, Inc.		1,039		57,571
Concho Resources, Inc.*		406		53,478
Devon Energy Corp.		1,439		52,826
Apache Corp.		1,043		47,769
Baker Hughes a GE Co.		1,171		42,882
Andeavor		395		40,744
Noble Energy, Inc.		1,331		37,747
National Oilwell Varco, Inc.		1,040		37,159
Hess Corp.		739		34,652
Cabot Oil & Gas Corp. — Class A		1,265		33,839
TechnipFMC plc*		1,202		33,560
Marathon Oil Corp.		2,326		31,541
Equities Corp.		474		30,924
Cimarex Energy Co.		261		29,668
Newfield Exploration Co.*		545		16,170
Helmerich & Payne, Inc.1		297		15,477
Range Resources Corp.		618		12,094
Chesapeake Energy Corp.*,1		2,486		10,690
Total Energy				3,598,502
Utilities - 1.6%
NextEra Energy, Inc.		1,282		187,876
Duke Energy Corp.		1,916		160,790
Dominion Energy, Inc.		1,759		135,319
Southern Co.		2,736		134,447
Exelon Corp.		2,627		98,959
PG&E Corp.		1,404		95,598
American Electric Power Company, Inc.		1,346		94,543
Sempra Energy		687		78,408
PPL Corp.		1,870		70,967
Edison International		892		68,836
Consolidated Edison, Inc.		848		68,417
Xcel Energy, Inc.		1,390		65,775
Public Service Enterprise Group, Inc.		1,384		64,010
WEC Energy Group, Inc.		864		54,242
DTE Energy Co.		491		52,714
Eversource Energy		867		52,401
American Water Works Company, Inc.		488		39,484
Ameren Corp.		664		38,406
Entergy Corp.		491		37,493
FirstEnergy Corp.		1,216		37,489
CMS Energy Corp.		772		35,759
CenterPoint Energy, Inc.		1,180		34,468
Alliant Energy Corp.		633		26,314
Pinnacle West Capital Corp.		305		25,791
NiSource, Inc.		892		22,826
NRG Energy, Inc.		823		21,061
AES Corp.		1,807		19,913
SCANA Corp.		391		18,960
Total Utilities				1,841,266
Basic Materials - 1.3%
DowDuPont, Inc.		6,387		442,171
Monsanto Co.		1,202		144,024
Praxair, Inc.		783		109,416
Air Products & Chemicals, Inc.		596		90,127
LyondellBasell Industries N.V. — Class A		888		87,956
Sherwin-Williams Co.		225		80,559
PPG Industries, Inc.		702		76,279
International Paper Co.		1,130		64,207
Newmont Mining Corp.		1,460		54,765
Freeport-McMoRan, Inc.*		3,683		51,709
Nucor Corp.		874		48,979
Albemarle Corp.		302		41,166
Eastman Chemical Co.		397		35,925
FMC Corp.		367		32,777
International Flavors & Fragrances, Inc.		216		30,869
CF Industries Holdings, Inc.		638		22,432
Mosaic Co.		961		20,748
Total Basic Materials				1,434,109
Diversified - 0.0%
Leucadia National Corp.		867		21,892
Total Common Stocks
(Cost $54,202,809)				59,060,856
MUTUAL FUNDS† - 28.0%
Guggenheim Strategy Fund II2		498,440		12,490,895
Guggenheim Strategy Fund I2		474,053		11,903,479
Guggenheim Strategy Fund III2		279,864		7,007,796
Total Mutual Funds
(Cost $31,171,091)				31,402,170
	Face Amount
FEDERAL AGENCY NOTES†† - 4.5%
Freddie Mac3
1.12% due 01/26/224	$	5,000,000		4,996,440
Total Federal Agency Notes
(Cost $5,000,000)				4,996,440

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NOVA FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 1.3%
U.S. Treasury Bill
1.03% due 12/14/175,6	$	500,000	$	499,029
1.05% due 12/14/175,6		500,000		499,030
1.01% due 12/28/175,6,7		500,000		498,734
Total U.S. Treasury Bills
(Cost $1,496,572)				1,496,793
REPURCHASE AGREEMENTS††,8 - 11.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/177		6,497,395		6,497,395
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/177		3,248,698		3,248,698
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/177		2,403,705		2,403,705
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		762,529		762,529
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		79,972		79,972
Total Repurchase Agreements
(Cost $12,992,299)				12,992,299

	Shares
SECURITIES LENDING COLLATERAL†,9 - 0.2%
First American Government Obligations Fund — Class Z, 0.89%10		210,703		210,703
Total Securities Lending Collateral
(Cost $210,703)				210,703
Total Investments - 98.1%
(Cost $105,073,474)			$	110,159,261
Other Assets & Liabilities, net - 1.9%				2,101,350
Total Net Assets - 100.0%			$	112,260,611

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P 500 Index	1.70	%	At Maturity	10/27/17		11,732	$	29,558,256	$	264,643
BNP Paribas	S&P 500 Index	1.69	%	At Maturity	10/30/17		15,775		39,743,881		194,252
Barclays Bank plc	S&P 500 Index	1.65	%	At Maturity	10/31/17		15,871		39,985,190		143,204
								$	109,287,327	$	602,099

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Affiliated issuer.
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	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
5	Rate indicated is the effective yield at the time of purchase.
6	Zero coupon rate security.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
8	Repurchase Agreements — See Note 6.
9	Securities lending collateral — See Note 7.
10	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investments Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
NOVA FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	59,060,856	$	—	$	—	$	—	$	—	$	59,060,856
Equity Index Swap Agreements		—		—		—		602,099		—		602,099
Federal Agency Notes		—		—		4,996,440		—		—		4,996,440
Mutual Funds		31,402,170		—		—		—		—		31,402,170
Repurchase Agreements		—		—		12,992,299		—		—		12,992,299
Securities Lending Collateral		210,703		—		—		—		—		210,703
U.S. Treasury Bills		—		—		1,496,793		—		—		1,496,793
Total Assets	$	90,673,729	$	—	$	19,485,532	$	602,099	$	—	$	110,761,360

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	12,473,562	$	299,998	$	(900,000	)	$	2,267	$	27,652	$	11,903,479		474,053	$	112,416
Guggenheim Strategy Fund II		12,060,988		400,001		—			—		29,906		12,490,895		498,440		140,114
Guggenheim Strategy Fund III		—		7,000,000		—			—		7,796		7,007,796		279,864		89,221
	$	24,534,550	$	7,699,999	$	(900,000	)	$	2,267	$	65,354	$	31,402,170			$	341,751

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $206,799 of securities loaned (cost $60,910,084)	$	65,764,792
Investments in affiliated issuers, at value (cost $31,171,091)	$	31,402,170
Repurchase agreements, at value (cost $12,992,299)		12,992,299
Cash		500
Segregated cash with broker		1,882,403
Unrealized appreciation on swap agreements		602,099
Receivables:
Fund shares sold		129,428
Dividends		112,319
Interest		10,880
Securities lending income		76
Swap settlement		73
Total assets		112,897,039
Liabilities:
Payable for:
Fund shares redeemed		220,177
Return of securities loaned		210,703
Management fees		80,780
Transfer agent and administrative fees		26,927
Distribution and service fees		14,027
Portfolio accounting fees		10,564
Miscellaneous		73,250
Total liabilities		636,428
Commitments and contingent liabilities (Note 12)		—
Net assets	$	112,260,611
Net assets consist of:
Paid in capital	$	84,443,335
Undistributed net investment income		604,704
Accumulated net realized gain on investments		21,524,686
Net unrealized appreciation on investments		5,687,886
Net assets	$	112,260,611
Investor Class:
Net assets	$	79,251,545
Capital shares outstanding		1,193,035
Net asset value per share	$	66.43
A-Class:
Net assets	$	3,291,493
Capital shares outstanding		53,171
Net asset value per share	$	61.90
Maximum offering price per share (Net asset value divided by 95.25%)	$	64.99
C-Class:
Net assets	$	10,222,982
Capital shares outstanding		183,894
Net asset value per share	$	55.59
H-Class:
Net assets	$	19,494,591
Capital shares outstanding		314,515
Net asset value per share	$	61.98

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

NOVA FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers	$	1,161,364
Dividends from securities of affiliated issuers		341,751
Interest		170,926
Income from securities lending, net		567
Total investment income		1,674,608
Expenses:
Management fees		648,564
Distribution and service fees:
A-Class		12,120
C-Class		50,044
H-Class		32,853
Transfer agent and administrative fees		216,188
Registration fees		108,109
Portfolio accounting fees		82,951
Custodian fees		11,747
Trustees’ fees*		6,756
Line of credit fees		1,121
Miscellaneous		41,302
Total expenses		1,211,755
Net investment income		462,853
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	787,571
Investments in affiliated issuers		2,267
Swap agreements		12,283,082
Futures contracts		2,277,810
Net realized gain		15,350,730
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		3,214,549
Investments in affiliated issuers		65,354
Swap agreements		615,665
Futures contracts		(132,837	)
Net change in unrealized appreciation (depreciation)		3,762,731
Net realized and unrealized gain		19,113,461
Net increase in net assets resulting from operations	$	19,576,314

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

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	462,853		$	141,851
Net realized gain on investments		15,350,730			68,962,667
Net change in unrealized appreciation (depreciation) on investments		3,762,731			(20,720,659	)
Net increase in net assets resulting from operations		19,576,314			48,383,859
Distributions to shareholders from:
Net investment income
Investor Class		—			(28,278	)
A-Class		—			(2,002	)
C-Class		—			(4,396	)
H-Class		—			(1,346	)
Net realized gains
Investor Class		—			(899,670	)
A-Class		—			(63,689	)
C-Class		—			(139,858	)
H-Class		—			(42,826	)
Total distributions to shareholders		—			(1,182,065	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		2,092,563,669			3,038,362,973
A-Class		262,168,167			195,568,022
C-Class		637,088			2,393,360
H-Class		340,460,162			578,220,052
Distributions reinvested
Investor Class		—			871,266
A-Class		—			64,676
C-Class		—			143,560
H-Class		—			44,161
Cost of shares redeemed
Investor Class		(2,106,482,075	)		(3,164,196,094	)
A-Class		(263,656,902	)		(207,737,340	)
C-Class		(1,031,348	)		(5,741,761	)
H-Class		(341,425,012	)		(579,218,274	)
Net decrease from capital share transactions		(16,766,251	)		(141,225,399	)
Net increase (decrease) in net assets		2,810,063			(94,023,605	)
Net assets:
Beginning of period		109,450,548			203,474,153
End of period	$	112,260,611		$	109,450,548
Undistributed net investment income at end of period	$	604,704		$	141,851

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		33,311,004			55,401,102
A-Class		4,473,614			3,848,301
C-Class		12,398			52,915
H-Class		5,815,960			11,361,682
Shares issued from reinvestment of distributions
Investor Class		—			16,298
A-Class		—			1,294
C-Class		—			3,182
H-Class		—			884
Shares redeemed
Investor Class		(33,423,761	)		(57,463,068	)
A-Class		(4,483,243	)		(4,082,490	)
C-Class		(19,837	)		(129,677	)
H-Class		(5,816,962	)		(11,349,648	)
Net decrease in shares		(130,827	)		(2,339,225	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	60.14		$	49.18		$	49.42		$	42.15		$	32.05		$	26.82
Income (loss) from investment operations:
Net investment income (loss)b		.21			.08			.07			.14			.14			.05
Net gain (loss) on investments (realized and unrealized)		6.08			11.56			(.25	)		7.18			9.96			5.21
Total from investment operations		6.29			11.64			(.18	)		7.32			10.10			5.26
Less distributions from:
Net investment income		—			(.02	)		(.06	)		(.05	)		—			(.03	)
Net realized gains		—			(.66	)		—			—			—			—
Total distributions		—			(.68	)		(.06	)		(.05	)		—			(.03	)
Net asset value, end of period	$	66.43		$	60.14		$	49.18		$	49.42		$	42.15		$	32.05
Total Returnc		10.46	%		23.84	%		(0.36	%)		17.36	%		31.51	%		19.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	79,252		$	78,531		$	164,820		$	136,800		$	103,254		$	52,785
Ratios to average net assets:
Net investment income (loss)		0.66	%		0.15	%		0.14	%		0.31	%		0.37	%		0.20	%
Total expensesd		1.29	%		1.28	%		1.25	%		1.27	%		1.28	%		1.26	%
Portfolio turnover rate		1,445	%		1,288	%		619	%		403	%		259	%		137	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	56.18		$	46.08		$	46.40		$	39.67		$	30.23		$	25.38
Income (loss) from investment operations:
Net investment income (loss)b		.16			(.02	)		(.05	)		.02			.05			(.01	)
Net gain (loss) on investments (realized and unrealized)		5.56			10.80			(.21	)		6.76			9.39			4.89
Total from investment operations		5.72			10.78			(.26	)		6.78			9.44			4.88
Less distributions from:
Net investment income		—			(.02	)		(.06	)		(.05	)		—			(.03	)
Net realized gains		—			(.66	)		—			—			—			—
Total distributions		—			(.68	)		(.06	)		(.05	)		—			(.03	)
Net asset value, end of period	$	61.90		$	56.18		$	46.08		$	46.40		$	39.67		$	30.23
Total Returnc		10.18	%		23.57	%		(0.56	%)		17.09	%		31.23	%		19.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,291		$	3,528		$	13,626		$	3,930		$	1,237		$	1,189
Ratios to average net assets:
Net investment income (loss)		0.55	%		(0.05	%)		(0.11	%)		0.05	%		0.14	%		(0.04	%)
Total expensesd		1.54	%		1.53	%		1.51	%		1.52	%		1.53	%		1.50	%
Portfolio turnover rate		1,445	%		1,288	%		619	%		403	%		259	%		137	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	50.57		$	41.86		$	42.50		$	36.62		$	28.11		$	23.77
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.40	)		(.34	)		(.28	)		(.20	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		5.15			9.79			(.24	)		6.21			8.71			4.56
Total from investment operations		5.02			9.39			(.58	)		5.93			8.51			4.37
Less distributions from:
Net investment income		—			(.02	)		(.06	)		(.05	)		—			(.03	)
Net realized gains		—			(.66	)		—			—			—			—
Total distributions		—			(.68	)		(.06	)		(.05	)		—			(.03	)
Net asset value, end of period	$	55.59		$	50.57		$	41.86		$	42.50		$	36.62		$	28.11
Total Returnc		9.95	%		22.60	%		(1.36	%)		16.19	%		30.27	%		18.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,223		$	9,676		$	11,090		$	11,993		$	10,394		$	8,705
Ratios to average net assets:
Net investment income (loss)		(0.51	%)		(0.89	%)		(0.83	%)		(0.70	%)		(0.62	%)		(0.79	%)
Total expensesd		2.29	%		2.27	%		2.26	%		2.27	%		2.28	%		2.25	%
Portfolio turnover rate		1,445	%		1,288	%		619	%		403	%		259	%		137	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 28, 2015e
Per Share Data
Net asset value, beginning of period	$	56.15		$	46.06		$	46.40		$	44.40
Income (loss) from investment operations:
Net investment income (loss)b		.09			(.07	)		(.06	)		.02
Net gain (loss) on investments (realized and unrealized)		5.74			10.84			(.22	)		2.03
Total from investment operations		5.83			10.77			(.28	)		2.05
Less distributions from:
Net investment income		—			(.02	)		(.06	)		(.05	)
Net realized gains		—			(.66	)		—			—
Total distributions		—			(.68	)		(.06	)		(.05	)
Net asset value, end of period	$	61.98		$	56.15		$	46.06		$	46.40
Total Returnc		10.38	%		23.56	%		(0.60	%)		4.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,495		$	17,716		$	13,938		$	1,692
Ratios to average net assets:
Net investment income (loss)		0.31	%		(0.15	%)		(0.14	%)		0.08	%
Total expensesd		1.54	%		1.52	%		1.51	%		1.51	%
Portfolio turnover rate		1,445	%		1,288	%		619	%		403	%

a	Unaudited figures for the period ended September 30, 2017. 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 the commencement of operations of the Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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.	3.1%
Microsoft Corp.	2.2%
Facebook, Inc. — Class A	1.6%
Amazon.com, Inc.	1.5%
Berkshire Hathaway, Inc. — Class B	1.4%
Johnson & Johnson	1.4%
Exxon Mobil Corp.	1.3%
JPMorgan Chase & Co.	1.3%
Alphabet, Inc. — Class A	1.1%
Alphabet, Inc. — Class C	1.1%
Top Ten Total	16.0%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	6.83%	16.63%	12.34%	5.97%
A-Class Shares with sales charge‡	1.76%	11.09%	11.25%	5.45%
C-Class Shares	6.42%	15.77%	11.49%	5.14%
C-Class Shares with CDSC§	5.42%	14.77%	11.49%	5.14%
H-Class Shares	6.83%	16.66%	12.33%	5.98%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 83.4%
Consumer, Non-cyclical - 18.8%
Johnson & Johnson		25,165	$	3,271,701
Procter & Gamble Co.		23,909		2,175,241
Pfizer, Inc.		55,955		1,997,593
UnitedHealth Group, Inc.		9,065		1,775,381
Merck & Company, Inc.		25,644		1,641,985
Coca-Cola Co.		35,993		1,620,046
Philip Morris International, Inc.		14,563		1,616,638
PepsiCo, Inc.		13,394		1,492,493
AbbVie, Inc.		14,946		1,328,102
Amgen, Inc.		6,841		1,275,504
Altria Group, Inc.		17,988		1,140,799
Celgene Corp.*		7,335		1,069,590
Gilead Sciences, Inc.		12,244		992,009
Medtronic plc		12,701		987,756
Bristol-Myers Squibb Co.		15,377		980,130
Abbott Laboratories		16,290		869,234
Eli Lilly & Co.		9,084		777,045
Thermo Fisher Scientific, Inc.		3,752		709,878
PayPal Holdings, Inc.*		10,598		678,591
Allergan plc		3,134		642,313
Biogen, Inc.*		1,982		620,604
Colgate-Palmolive Co.		8,259		601,668
Mondelez International, Inc. — Class A		14,136		574,771
Aetna, Inc.		3,110		494,522
Danaher Corp.		5,732		491,691
Anthem, Inc.		2,462		467,485
Automatic Data Processing, Inc.		4,167		455,536
Cigna Corp.		2,360		441,178
Kraft Heinz Co.		5,597		434,047
Stryker Corp.		3,016		428,332
Becton Dickinson and Co.		2,134		418,157
Kimberly-Clark Corp.		3,313		389,874
S&P Global, Inc.		2,410		376,707
Boston Scientific Corp.*		12,865		375,272
Intuitive Surgical, Inc.*		350		366,058
Vertex Pharmaceuticals, Inc.*		2,363		359,271
Express Scripts Holding Co.*		5,415		342,878
Humana, Inc.		1,355		330,119
Regeneron Pharmaceuticals, Inc.*		720		321,926
Constellation Brands, Inc. — Class A		1,612		321,513
Ecolab, Inc.		2,442		314,066
McKesson Corp.		1,972		302,919
Baxter International, Inc.		4,700		294,925
Alexion Pharmaceuticals, Inc.*		2,093		293,627
Zoetis, Inc.		4,601		293,360
General Mills, Inc.		5,411		280,073
Illumina, Inc.*		1,369		272,705
Sysco Corp.		4,553		245,634
Estee Lauder Companies, Inc. — Class A		2,099		226,356
Archer-Daniels-Midland Co.		5,274		224,198
Zimmer Biomet Holdings, Inc.		1,896		222,003
CR Bard, Inc.		681		218,261
Moody’s Corp.		1,558		216,889
Edwards Lifesciences Corp.*		1,980		216,434
HCA Healthcare, Inc.*		2,709		215,609
Monster Beverage Corp.*		3,889		214,867
Cardinal Health, Inc.		2,967		198,552
Tyson Foods, Inc. — Class A		2,712		191,060
Incyte Corp.*		1,600		186,784
Kroger Co.		8,414		168,785
Clorox Co.		1,210		159,611
Mylan N.V.*		5,028		157,728
Centene Corp.*		1,617		156,477
Dr Pepper Snapple Group, Inc.		1,704		150,753
IHS Markit Ltd.*		3,406		150,136
Kellogg Co.		2,330		145,322
Hershey Co.		1,324		144,541
Laboratory Corporation of America Holdings*		954		144,025
Molson Coors Brewing Co. — Class B		1,731		141,319
Global Payments, Inc.		1,429		135,798
Quintiles IMS Holdings, Inc.*		1,421		135,094
Conagra Brands, Inc.		3,897		131,485
Nielsen Holdings plc		3,149		130,526
Dentsply Sirona, Inc.		2,151		128,651
IDEXX Laboratories, Inc.*		818		127,191
Align Technology, Inc.*		676		125,919
AmerisourceBergen Corp. — Class A		1,520		125,780
Henry Schein, Inc.*		1,488		122,001
Verisk Analytics, Inc. — Class A*		1,457		121,208
Quest Diagnostics, Inc.		1,279		119,766
Equifax, Inc.		1,129		119,663
Cintas Corp.		801		115,568
McCormick & Company, Inc.		1,114		114,341
Church & Dwight Company, Inc.		2,338		113,276
JM Smucker Co.		1,065		111,750
United Rentals, Inc.*,1		792		109,882
Cooper Companies, Inc.		458		108,596
Gartner, Inc.*		849		105,624
Perrigo Company plc		1,244		105,305
Total System Services, Inc.		1,572		102,966
ResMed, Inc.		1,333		102,588
Brown-Forman Corp. — Class B		1,836		99,695
Hologic, Inc.*		2,629		96,458
Universal Health Services, Inc. — Class B		828		91,858
Varian Medical Systems, Inc.*		861		86,152
Campbell Soup Co.		1,819		85,166
DaVita, Inc.*		1,434		85,165
Western Union Co.		4,351		83,539
Avery Dennison Corp.		828		81,426
Hormel Foods Corp.		2,527		81,218
Coty, Inc. — Class A		4,423		73,112
Robert Half International, Inc.		1,183		59,552
Quanta Services, Inc.*		1,417		52,953
H&R Block, Inc.		1,960		51,901
Envision Healthcare Corp.*		1,133		50,928
Patterson Companies, Inc.		772		29,838
Total Consumer, Non-cyclical				45,522,596

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® FUND

	Shares		Value
Financial - 15.7%
Berkshire Hathaway, Inc. — Class B*		18,042	$	3,307,458
JPMorgan Chase & Co.		32,993		3,151,162
Bank of America Corp.		91,998		2,331,230
Wells Fargo & Co.		41,889		2,310,178
Citigroup, Inc.		25,545		1,858,143
Visa, Inc. — Class A		17,152		1,805,076
Mastercard, Inc. — Class A		8,755		1,236,206
Goldman Sachs Group, Inc.		3,374		800,279
U.S. Bancorp		14,900		798,491
Morgan Stanley		13,260		638,734
American Express Co.		6,879		622,274
Chubb Ltd.		4,363		621,946
PNC Financial Services Group, Inc.		4,493		605,522
American Tower Corp. — Class A REIT		4,024		550,000
American International Group, Inc.		8,470		519,973
BlackRock, Inc. — Class A		1,162		519,519
MetLife, Inc.		9,966		517,734
Bank of New York Mellon Corp.		9,687		513,605
Charles Schwab Corp.		11,174		488,751
Simon Property Group, Inc. REIT1		2,915		469,344
CME Group, Inc. — Class A		3,187		432,412
Prudential Financial, Inc.		4,004		425,705
Marsh & McLennan Companies, Inc.		4,806		402,791
Capital One Financial Corp.		4,535		383,933
Crown Castle International Corp. REIT		3,809		380,824
Intercontinental Exchange, Inc.		5,517		379,018
BB&T Corp.		7,577		355,664
Aon plc		2,385		348,449
State Street Corp.		3,506		334,963
Equinix, Inc. REIT		731		326,245
Travelers Companies, Inc.		2,587		316,959
Prologis, Inc. REIT		4,987		316,475
Allstate Corp.		3,388		311,391
Aflac, Inc.		3,705		301,550
Public Storage REIT		1,403		300,228
SunTrust Banks, Inc.		4,499		268,905
Progressive Corp.		5,456		264,180
Welltower, Inc. REIT		3,459		243,099
Weyerhaeuser Co. REIT		7,060		240,252
AvalonBay Communities, Inc. REIT		1,295		231,054
M&T Bank Corp.		1,424		229,321
Digital Realty Trust, Inc. REIT		1,919		227,075
Equity Residential REIT		3,443		226,997
Discover Financial Services		3,491		225,100
Synchrony Financial		7,009		217,629
Ventas, Inc. REIT		3,339		217,469
Ameriprise Financial, Inc.		1,406		208,805
T. Rowe Price Group, Inc.		2,254		204,325
Willis Towers Watson plc		1,259		194,176
Fifth Third Bancorp		6,907		193,258
KeyCorp		10,197		191,908
Hartford Financial Services Group, Inc.		3,416		189,349
Northern Trust Corp.		2,012		184,963
Boston Properties, Inc. REIT		1,447		177,807
Citizens Financial Group, Inc.		4,694		177,762
Regions Financial Corp.		11,206		170,667
SBA Communications Corp. REIT*		1,129		162,632
Principal Financial Group, Inc.		2,520		162,137
Essex Property Trust, Inc. REIT		619		157,245
Lincoln National Corp.		2,077		152,618
Realty Income Corp. REIT		2,570		146,978
Huntington Bancshares, Inc.		10,220		142,671
Franklin Resources, Inc.		3,085		137,313
Invesco Ltd.		3,815		133,678
Host Hotels & Resorts, Inc. REIT		6,939		128,302
Comerica, Inc.		1,649		125,753
Vornado Realty Trust REIT		1,616		124,238
Loews Corp.		2,588		123,862
HCP, Inc. REIT		4,397		122,369
GGP, Inc. REIT		5,872		121,961
Mid-America Apartment Communities, Inc. REIT		1,065		113,827
CBOE Holdings, Inc.		1,057		113,765
E*TRADE Financial Corp.*		2,578		112,427
Unum Group		2,116		108,191
Cincinnati Financial Corp.		1,399		107,121
CBRE Group, Inc. — Class A*		2,819		106,784
Alexandria Real Estate Equities, Inc. REIT		878		104,456
Arthur J Gallagher & Co.		1,689		103,958
Raymond James Financial, Inc.		1,203		101,449
Alliance Data Systems Corp.		453		100,362
Affiliated Managers Group, Inc.		525		99,661
Iron Mountain, Inc. REIT		2,479		96,433
Duke Realty Corp. REIT		3,335		96,115
XL Group Ltd.		2,419		95,430
UDR, Inc. REIT		2,509		95,417
Extra Space Storage, Inc. REIT		1,181		94,386
SL Green Realty Corp. REIT1		927		93,924
Zions Bancorporation		1,895		89,406
Everest Re Group Ltd.		385		87,930
Regency Centers Corp. REIT		1,387		86,049
Nasdaq, Inc.		1,094		84,862
Federal Realty Investment Trust REIT		677		84,090
Torchmark Corp.		1,014		81,211
Kimco Realty Corp. REIT		3,990		78,005
Apartment Investment & Management Co. — Class A REIT		1,472		64,562
People’s United Financial, Inc.		3,229		58,574
Macerich Co. REIT		1,021		56,124
Brighthouse Financial, Inc.*		898		54,598
Assurant, Inc.		505		48,238
Navient Corp.		2,570		38,601
Total Financial				38,064,046
Technology - 12.3%
Apple, Inc.		48,430		7,464,031
Microsoft Corp.		72,218		5,379,520
Intel Corp.		44,058		1,677,728
Oracle Corp.		28,314		1,368,982
International Business Machines Corp.		8,127		1,179,064
NVIDIA Corp.		5,626		1,005,759

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® FUND

	Shares		Value
Broadcom Ltd.		3,812	$	924,562
Texas Instruments, Inc.		9,281		831,949
Accenture plc — Class A		5,795		782,730
QUALCOMM, Inc.		13,853		718,140
Adobe Systems, Inc.*		4,626		690,107
salesforce.com, Inc.*		6,402		598,075
Applied Materials, Inc.		9,999		520,848
Activision Blizzard, Inc.		7,078		456,602
Micron Technology, Inc.*		10,445		410,802
Cognizant Technology Solutions Corp. — Class A		5,538		401,727
Electronic Arts, Inc.*		2,895		341,784
Intuit, Inc.		2,282		324,363
HP, Inc.		15,661		312,594
Analog Devices, Inc.		3,447		297,028
Fidelity National Information Services, Inc.		3,116		291,003
Lam Research Corp.		1,523		281,816
Fiserv, Inc.*		1,973		254,438
Western Digital Corp.		2,764		238,810
Autodesk, Inc.*		2,055		230,694
DXC Technology Co.		2,669		229,214
Hewlett Packard Enterprise Co.		15,401		226,549
Cerner Corp.*		2,954		210,679
Microchip Technology, Inc.		2,182		195,900
Red Hat, Inc.*		1,664		184,471
Paychex, Inc.		2,999		179,820
Skyworks Solutions, Inc.		1,722		175,472
Xilinx, Inc.		2,331		165,105
KLA-Tencor Corp.		1,471		155,926
Synopsys, Inc.*		1,408		113,386
NetApp, Inc.		2,529		110,669
Cadence Design Systems, Inc.*		2,626		103,648
Citrix Systems, Inc.*		1,349		103,630
CA, Inc.		2,963		98,905
ANSYS, Inc.*		794		97,448
Advanced Micro Devices, Inc.*		7,546		96,212
Seagate Technology plc		2,699		89,526
Qorvo, Inc.*		1,193		84,321
Akamai Technologies, Inc.*		1,607		78,293
Xerox Corp.		2,001		66,613
CSRA, Inc.		1,533		49,470
Total Technology				29,798,413
Communications - 11.2%
Facebook, Inc. — Class A*		22,225		3,797,587
Amazon.com, Inc.*		3,739		3,594,488
Alphabet, Inc. — Class A*		2,794		2,720,574
Alphabet, Inc. — Class C*		2,830		2,714,281
AT&T, Inc.		57,568		2,254,938
Verizon Communications, Inc.		38,248		1,892,894
Comcast Corp. — Class A		44,104		1,697,121
Cisco Systems, Inc.		46,880		1,576,574
Walt Disney Co.		14,469		1,426,209
Priceline Group, Inc.*		460		842,177
Time Warner, Inc.		7,293		747,168
Netflix, Inc.*		4,048		734,105
Charter Communications, Inc. — Class A*		1,885		685,047
eBay, Inc.*		9,333		358,947
Twenty-First Century Fox, Inc. — Class A		9,868		260,318
CBS Corp. — Class B		3,414		198,012
Symantec Corp.		5,762		189,051
Expedia, Inc.		1,146		164,955
Omnicom Group, Inc.		2,164		160,287
Level 3 Communications, Inc.*		2,755		146,814
Motorola Solutions, Inc.		1,525		129,427
DISH Network Corp. — Class A*		2,135		115,781
Twenty-First Century Fox, Inc. — Class B		4,118		106,203
Juniper Networks, Inc.		3,566		99,242
CenturyLink, Inc.1		5,153		97,392
Viacom, Inc. — Class B		3,307		92,067
VeriSign, Inc.*		806		85,750
Scripps Networks Interactive, Inc. — Class A		899		77,215
Interpublic Group of Companies, Inc.		3,686		76,632
F5 Networks, Inc.*		596		71,854
News Corp. — Class A		3,584		47,524
TripAdvisor, Inc.*,1		1,015		41,138
Discovery Communications, Inc. — Class C*		1,906		38,616
Discovery Communications, Inc. — Class A*		1,443		30,721
News Corp. — Class B		1,141		15,575
Total Communications				27,286,684
Industrial - 8.5%
General Electric Co.		81,177		1,962,860
Boeing Co.		5,210		1,324,435
3M Co.		5,595		1,174,391
Honeywell International, Inc.		7,147		1,013,015
Union Pacific Corp.		7,505		870,355
United Technologies Corp.		6,965		808,498
United Parcel Service, Inc. — Class B		6,458		775,541
Lockheed Martin Corp.		2,349		728,871
Caterpillar, Inc.		5,541		691,018
General Dynamics Corp.		2,611		536,769
FedEx Corp.		2,314		521,992
Raytheon Co.		2,721		507,684
Northrop Grumman Corp.		1,633		469,847
CSX Corp.		8,564		464,683
Illinois Tool Works, Inc.		2,904		429,676
Emerson Electric Co.		6,001		377,102
Deere & Co.1		2,999		376,645
Norfolk Southern Corp.		2,702		357,312
Johnson Controls International plc		8,742		352,216
Eaton Corporation plc		4,171		320,291
Waste Management, Inc.		3,795		297,035
TE Connectivity Ltd.		3,313		275,178
Corning, Inc.		8,467		253,333
Cummins, Inc.		1,477		248,180
Amphenol Corp. — Class A		2,864		242,409
Roper Technologies, Inc.		958		233,177
Parker-Hannifin Corp.1		1,248		218,425
Stanley Black & Decker, Inc.		1,436		216,793

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® FUND

	Shares		Value
Rockwell Automation, Inc.		1,204	$	214,565
Ingersoll-Rand plc		2,379		212,135
Fortive Corp.		2,860		202,459
Rockwell Collins, Inc.		1,523		199,071
Agilent Technologies, Inc.		3,013		193,435
Mettler-Toledo International, Inc.*,1		240		150,278
Vulcan Materials Co.		1,240		148,304
Harris Corp.		1,123		147,877
AMETEK, Inc.		2,164		142,911
Republic Services, Inc. — Class A		2,146		141,765
L3 Technologies, Inc.		733		138,119
Ball Corp.		3,298		136,207
WestRock Co.		2,382		135,131
Waters Corp.*		748		134,281
Textron, Inc.		2,482		133,730
Dover Corp.		1,459		133,338
Martin Marietta Materials, Inc.		589		121,469
Masco Corp.		2,987		116,523
TransDigm Group, Inc.		453		115,809
Kansas City Southern		988		107,376
Xylem, Inc.		1,683		105,406
Pentair plc		1,548		105,202
Packaging Corporation of America		885		101,492
Expeditors International of Washington, Inc.		1,694		101,403
CH Robinson Worldwide, Inc.		1,316		100,148
Fortune Brands Home & Security, Inc.		1,444		97,080
Arconic, Inc.		3,639		90,538
J.B. Hunt Transport Services, Inc.		800		88,864
AO Smith Corp.		1,373		81,597
Snap-on, Inc.		540		80,465
Allegion plc		891		77,045
Sealed Air Corp.		1,782		76,127
PerkinElmer, Inc.		1,033		71,246
Acuity Brands, Inc.		395		67,656
Jacobs Engineering Group, Inc.		1,128		65,729
Stericycle, Inc.*		799		57,224
Garmin Ltd.		1,040		56,129
Fluor Corp.		1,312		55,235
Flowserve Corp.		1,225		52,173
FLIR Systems, Inc.		1,286		50,038
Total Industrial				20,653,311
Consumer, Cyclical - 7.2%
Home Depot, Inc.		11,053		1,807,830
McDonald’s Corp.		7,595		1,189,986
Wal-Mart Stores, Inc.		13,723		1,072,315
CVS Health Corp.		9,532		775,142
Starbucks Corp.		13,537		727,072
Costco Wholesale Corp.		4,112		675,560
Walgreens Boots Alliance, Inc.		8,628		666,254
NIKE, Inc. — Class B		12,320		638,791
Lowe’s Companies, Inc.		7,916		632,805
General Motors Co.		12,296		496,512
TJX Companies, Inc.		5,965		439,799
Ford Motor Co.		36,670		438,940
Marriott International, Inc. — Class A		2,933		323,392
Target Corp.		5,121		302,190
Delta Air Lines, Inc.		6,246		301,182
Southwest Airlines Co.		5,163		289,025
Carnival Corp.		3,824		246,915
Delphi Automotive plc		2,502		246,197
PACCAR, Inc.		3,294		238,288
Yum! Brands, Inc.		3,233		237,981
Ross Stores, Inc.		3,649		235,616
Dollar General Corp.		2,442		197,924
Newell Brands, Inc.		4,595		196,069
VF Corp.		3,063		194,715
American Airlines Group, Inc.		4,064		192,999
Dollar Tree, Inc.*		2,220		192,740
Royal Caribbean Cruises Ltd.		1,613		191,205
O’Reilly Automotive, Inc.*		825		177,680
MGM Resorts International		4,854		158,192
AutoZone, Inc.*		263		156,514
United Continental Holdings, Inc.*		2,425		147,634
Mohawk Industries, Inc.*		592		146,526
Best Buy Company, Inc.		2,488		141,716
Hilton Worldwide Holdings, Inc.		1,915		132,997
Genuine Parts Co.		1,376		131,614
CarMax, Inc.*		1,718		130,242
DR Horton, Inc.		3,194		127,536
Whirlpool Corp.		684		126,157
Ulta Beauty, Inc.*		546		123,429
Fastenal Co.		2,700		123,066
Wynn Resorts Ltd.		750		111,690
Coach, Inc.		2,650		106,742
LKQ Corp.*		2,896		104,227
Hasbro, Inc.		1,067		104,214
Wyndham Worldwide Corp.		964		101,615
Lennar Corp. — Class A		1,905		100,584
L Brands, Inc.		2,340		97,367
BorgWarner, Inc.		1,860		95,288
Darden Restaurants, Inc.		1,175		92,567
PVH Corp.		726		91,520
WW Grainger, Inc.		492		88,437
Alaska Air Group, Inc.		1,158		88,321
Tiffany & Co.		957		87,833
Hanesbrands, Inc.		3,417		84,195
Goodyear Tire & Rubber Co.		2,360		78,470
Harley-Davidson, Inc.		1,599		77,088
Tractor Supply Co.		1,188		75,189
Chipotle Mexican Grill, Inc. — Class A*		235		72,340
Kohl’s Corp.		1,581		72,173
PulteGroup, Inc.		2,602		71,113
Advance Auto Parts, Inc.		692		68,646
Michael Kors Holdings Ltd.*		1,422		68,043
Macy’s, Inc.		2,856		62,318
Gap, Inc.		2,058		60,773
Leggett & Platt, Inc.		1,240		59,185
Nordstrom, Inc.		1,091		51,441
Mattel, Inc.1		3,213		49,737
Ralph Lauren Corp. — Class A		519		45,823
Foot Locker, Inc.		1,231		43,356

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® FUND

	Shares		Value
Signet Jewelers Ltd.1		567	$	37,734
Under Armour, Inc. — Class A*,1		1,734		28,576
Under Armour, Inc. — Class C*,1		1,745		26,210
Total Consumer, Cyclical				17,373,562
Energy - 5.1%
Exxon Mobil Corp.		39,729		3,256,983
Chevron Corp.		17,768		2,087,740
Schlumberger Ltd.		13,027		908,763
ConocoPhillips		11,410		571,071
EOG Resources, Inc.		5,414		523,750
Occidental Petroleum Corp.		7,169		460,321
Halliburton Co.		8,136		374,500
Phillips 66		4,029		369,097
Kinder Morgan, Inc.		18,001		345,259
Valero Energy Corp.		4,141		318,567
Marathon Petroleum Corp.		4,746		266,156
Anadarko Petroleum Corp.		5,254		256,658
Pioneer Natural Resources Co.		1,595		235,326
Williams Companies, Inc.		7,751		232,608
ONEOK, Inc.		3,562		197,370
Concho Resources, Inc.*		1,394		183,618
Devon Energy Corp.		4,929		180,944
Apache Corp.		3,571		163,552
Baker Hughes a GE Co.		4,013		146,956
Andeavor		1,352		139,459
Noble Energy, Inc.		4,562		129,378
National Oilwell Varco, Inc.		3,563		127,306
Hess Corp.		2,534		118,819
Cabot Oil & Gas Corp. — Class A		4,336		115,988
TechnipFMC plc*		4,118		114,975
Marathon Oil Corp.		7,970		108,073
Equities Corp.		1,625		106,015
Cimarex Energy Co.		893		101,507
Newfield Exploration Co.*		1,868		55,424
Helmerich & Payne, Inc.1		1,018		53,048
Range Resources Corp.		2,117		41,430
Chesapeake Energy Corp.*,1		8,513		36,606
Total Energy				12,327,267
Utilities - 2.6%
NextEra Energy, Inc.		4,389		643,207
Duke Energy Corp.		6,562		550,682
Dominion Energy, Inc.		6,025		463,503
Southern Co.		9,372		460,540
Exelon Corp.		9,002		339,105
PG&E Corp.		4,808		327,377
American Electric Power Company, Inc.		4,612		323,947
Sempra Energy		2,354		268,662
PPL Corp.		6,406		243,108
Edison International		3,055		235,754
Consolidated Edison, Inc.		2,905		234,375
Xcel Energy, Inc.		4,760		225,243
Public Service Enterprise Group, Inc.		4,743		219,364
WEC Energy Group, Inc.		2,959		185,766
DTE Energy Co.		1,682		180,580
Eversource Energy		2,971		179,567
American Water Works Company, Inc.		1,671		135,201
Ameren Corp.		2,275		131,586
Entergy Corp.		1,683		128,514
FirstEnergy Corp.		4,166		128,438
CMS Energy Corp.		2,644		122,470
CenterPoint Energy, Inc.		4,041		118,038
Alliant Energy Corp.		2,166		90,041
Pinnacle West Capital Corp.		1,046		88,450
NiSource, Inc.		3,056		78,203
NRG Energy, Inc.		2,819		72,138
AES Corp.		6,191		68,225
SCANA Corp.		1,340		64,977
Total Utilities				6,307,061
Basic Materials - 2.0%
DowDuPont, Inc.		21,877		1,514,545
Monsanto Co.		4,119		493,539
Praxair, Inc.		2,682		374,783
Air Products & Chemicals, Inc.		2,043		308,942
LyondellBasell Industries N.V. — Class A		3,043		301,409
Sherwin-Williams Co.		771		276,049
PPG Industries, Inc.		2,405		261,327
International Paper Co.		3,871		219,950
Newmont Mining Corp.		5,000		187,550
Freeport-McMoRan, Inc.*		12,616		177,129
Nucor Corp.		2,995		167,840
Albemarle Corp.		1,036		141,217
Eastman Chemical Co.		1,358		122,885
FMC Corp.		1,258		112,352
International Flavors & Fragrances, Inc.		740		105,753
CF Industries Holdings, Inc.		2,187		76,895
Mosaic Co.		3,291		71,053
Total Basic Materials				4,913,218
Diversified - 0.0%
Leucadia National Corp.		2,969		74,967
Total Common Stocks
(Cost $171,483,323)				202,321,125
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 6.2%
Fannie Mae2
0.71% due 10/02/173,4	$	15,000,000		14,999,604
Total Federal Agency Discount Notes
(Cost $14,999,604)				14,999,604
FEDERAL AGENCY NOTES†† - 1.3%
Federal Home Loan Bank5
1.00% due 10/26/186		3,105,000		3,101,963
Total Federal Agency Notes
(Cost $3,105,000)				3,101,963

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,7 - 9.4%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/178	$	11,459,642	$	11,459,642
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/178		5,729,821		5,729,821
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/178		3,409,355		3,409,355
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		2,096,225		2,096,225
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		219,847		219,847
Total Repurchase Agreements
(Cost $22,914,890)				22,914,890

	Shares
SECURITIES LENDING COLLATERAL†,9 - 0.5%
First American Government Obligations Fund — Class Z, 0.89%10		1,279,576	$	1,279,576
Total Securities Lending Collateral
(Cost $1,279,576)				1,279,576
Total Investments - 100.8%
(Cost $213,782,393)			$	244,617,158
Other Assets & Liabilities, net - (0.8)%				(2,051,076	)
Total Net Assets - 100.0%			$	242,566,082

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Gain
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts		18	Dec 2017	$	2,263,950	$	4,118

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P 500 Index	1.70	%	At Maturity	10/27/17		9,297	$	23,422,732	$	212,106
BNP Paribas	S&P 500 Index	1.69	%	At Maturity	10/30/17		5,201		13,102,593		65,784
Barclays Bank plc	S&P 500 Index	1.65	%	At Maturity	10/31/17		589		1,484,897		5,318
								$	38,010,222	$	283,208

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
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	Rate indicated is the effective yield at the time of purchase.
4	Zero coupon rate security.
5	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
6	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
7	Repurchase Agreements — See Note 6.
8	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
9	Securities lending collateral — See Note 7.
10	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P 500® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	202,321,125	$	—	$	—	$	—	$	—	$	202,321,125
Equity Futures Contracts		—		4,118		—		—		—		4,118
Equity Index Swap Agreements		—		—		—		283,208		—		283,208
Federal Agency Discount Notes		—		—		14,999,604		—		—		14,999,604
Federal Agency Notes		—		—		3,101,963		—		—		3,101,963
Repurchase Agreements		—		—		22,914,890		—		—		22,914,890
Securities Lending Collateral		1,279,576		—		—		—		—		1,279,576
Total Assets	$	203,600,701	$	4,118	$	41,016,457	$	283,208	$	—	$	244,904,484

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $1,253,573 of securities loaned (cost $190,867,503)	$	221,702,268
Repurchase agreements, at value (cost $22,914,890)		22,914,890
Cash		6,134
Segregated cash with broker		360,000
Unrealized appreciation on swap agreements		283,208
Receivables:
Fund shares sold		10,123,810
Dividends		208,946
Swap settlement		25,350
Interest		6,880
Variation margin		4,118
Securities lending income		451
Total assets		255,636,055
Liabilities:
Payable for:
Fund shares redeemed		6,826,514
Securities purchased		4,490,607
Return of securities loaned		1,279,576
Management fees		145,547
Distribution and service fees		59,641
Transfer agent and administrative fees		48,516
Portfolio accounting fees		29,110
Miscellaneous		190,462
Total liabilities		13,069,973
Commitments and contingent liabilities (Note 12)		—
Net assets	$	242,566,082
Net assets consist of:
Paid in capital	$	188,891,093
Undistributed net investment income		418,009
Accumulated net realized gain on investments		22,134,889
Net unrealized appreciation on investments		31,122,091
Net assets	$	242,566,082
A-Class:
Net assets	$	33,886,995
Capital shares outstanding		696,880
Net asset value per share	$	48.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	51.06
C-Class:
Net assets	$	18,258,198
Capital shares outstanding		412,208
Net asset value per share	$	44.29
H-Class:
Net assets	$	190,420,889
Capital shares outstanding		3,916,540
Net asset value per share	$	48.62

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	2,291,119
Interest		111,043
Income from securities lending, net		3,129
Total investment income		2,405,291
Expenses:
Management fees		900,418
Distribution and service fees:
A-Class		38,386
C-Class		95,517
H-Class		237,876
Transfer agent and administrative fees		300,140
Portfolio accounting fees		180,085
Registration fees		136,223
Custodian fees		16,151
Trustees’ fees*		12,552
Line of credit fees		20
Miscellaneous		69,914
Total expenses		1,987,282
Net investment income		418,009
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		33,940,010
Swap agreements		(1,982	)
Futures contracts		178,020
Net realized gain		34,116,048
Net change in unrealized appreciation (depreciation) on:
Investments		(18,991,821	)
Swap agreements		234,679
Futures contracts		382
Net change in unrealized appreciation (depreciation)		(18,756,760	)
Net realized and unrealized gain		15,359,288
Net increase in net assets resulting from operations	$	15,777,297

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

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

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	418,009		$	281,043
Net realized gain on investments		34,116,048			45,881,302
Net change in unrealized appreciation (depreciation) on investments		(18,756,760	)		(9,583,790	)
Net increase in net assets resulting from operations		15,777,297			36,578,555
Distributions to shareholders from:
Net investment income
A-Class		—			(29,671	)
C-Class		—			(28,356	)
H-Class		—			(293,993	)
Net realized gains
A-Class		—			(174,898	)
C-Class		—			(167,151	)
H-Class		—			(1,732,984	)
Total distributions to shareholders		—			(2,427,053	)
Capital share transactions:
Proceeds from sale of shares
A-Class		82,355,426			109,316,182
C-Class		3,134,845			22,735,429
H-Class		511,861,673			1,205,465,115
Distributions reinvested
A-Class		—			193,648
C-Class		—			186,917
H-Class		—			2,014,895
Cost of shares redeemed
A-Class		(71,350,297	)		(131,672,483	)
C-Class		(6,976,045	)		(20,167,745	)
H-Class		(560,871,553	)		(1,238,468,770	)
Net decrease from capital share transactions		(41,845,951	)		(50,396,812	)
Net decrease in net assets		(26,068,654	)		(16,245,310	)
Net assets:
Beginning of period		268,634,736			284,880,046
End of period	$	242,566,082		$	268,634,736
Undistributed net investment income at end of period	$	418,009		$	—
Capital share activity:
Shares sold
A-Class		1,782,804			2,539,581
C-Class		73,626			592,763
H-Class		10,868,535			28,720,011
Shares issued from reinvestment of distributions
A-Class		—			4,549
C-Class		—			4,790
H-Class		—			47,342
Shares redeemed
A-Class		(1,546,391	)		(3,082,299	)
C-Class		(164,319	)		(521,111	)
H-Class		(11,934,020	)		(29,543,485	)
Net decrease in shares		(919,765	)		(1,237,859	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	45.52		$	39.85		$	41.40		$	37.78		$	31.55		$	28.20
Income (loss) from investment operations:
Net investment income (loss)b		.09			.06			.03			.04			.07			.06
Net gain (loss) on investments (realized and unrealized)		3.02			5.97			—			4.08			6.20			3.36
Total from investment operations		3.11			6.03			.03			4.12			6.27			3.42
Less distributions from:
Net investment income		—			(.05	)		(.01	)		(.02	)		(.04	)		(.07	)
Net realized gains		—			(.31	)		(1.57	)		(.48	)		—			—
Total distributions		—			(.36	)		(1.58	)		(.50	)		(.04	)		(.07	)
Net asset value, end of period	$	48.63		$	45.52		$	39.85		$	41.40		$	37.78		$	31.55
Total Returnc		6.83	%		15.17	%		0.08	%		10.90	%		19.87	%		12.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,887		$	20,960		$	39,793		$	28,022		$	28,028		$	12,014
Ratios to average net assets:
Net investment income (loss)		0.38	%		0.14	%		0.02	%		0.11	%		0.19	%		0.22	%
Total expenses		1.60	%		1.57	%		1.55	%		1.59	%		1.57	%		1.50	%
Portfolio turnover rate		97	%		133	%		181	%		256	%		157	%		76	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	41.62		$	36.74		$	38.58		$	35.51		$	29.87		$	26.91
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.22	)		(.26	)		(.23	)		(.19	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		2.75			5.46			—			3.80			5.87			3.17
Total from investment operations		2.67			5.24			(.26	)		3.57			5.68			3.03
Less distributions from:
Net investment income		—			(.05	)		(.01	)		(.02	)		(.04	)		(.07	)
Net realized gains		—			(.31	)		(1.57	)		(.48	)		—			—
Total distributions		—			(.36	)		(1.58	)		(.50	)		(.04	)		(.07	)
Net asset value, end of period	$	44.29		$	41.62		$	36.74		$	38.58		$	35.51		$	29.87
Total Returnc		6.42	%		14.33	%		(0.67	%)		10.04	%		19.01	%		11.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,258		$	20,931		$	15,667		$	20,977		$	16,182		$	10,231
Ratios to average net assets:
Net investment income (loss)		(0.37	%)		(0.57	%)		(0.70	%)		(0.62	%)		(0.59	%)		(0.52	%)
Total expenses		2.34	%		2.33	%		2.31	%		2.34	%		2.32	%		2.28	%
Portfolio turnover rate		97	%		133	%		181	%		256	%		157	%		76	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	45.51		$	39.84		$	41.40		$	37.78		$	31.55		$	28.20
Income (loss) from investment operations:
Net investment income (loss)b		.10			.07			.03			.05			.05			.07
Net gain (loss) on investments (realized and unrealized)		3.01			5.96			(.01	)		4.07			6.22			3.35
Total from investment operations		3.11			6.03			.02			4.12			6.27			3.42
Less distributions from:
Net investment income		—			(.05	)		(.01	)		(.02	)		(.04	)		(.07	)
Net realized gains		—			(.31	)		(1.57	)		(.48	)		—			—
Total distributions		—			(.36	)		(1.58	)		(.50	)		(.04	)		(.07	)
Net asset value, end of period	$	48.62		$	45.51		$	39.84		$	41.40		$	37.78		$	31.55
Total Returnc		6.83	%		15.20	%		0.06	%		10.90	%		19.87	%		12.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	190,421		$	226,744		$	229,420		$	254,610		$	255,912		$	265,358
Ratios to average net assets:
Net investment income (loss)		0.42	%		0.16	%		0.07	%		0.12	%		0.15	%		0.24	%
Total expenses		1.60	%		1.58	%		1.55	%		1.58	%		1.56	%		1.50	%
Portfolio turnover rate		97	%		133	%		181	%		256	%		157	%		76	%

a	Unaudited figures for the period ended September 30, 2017. 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.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
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 II	11.5%
Guggenheim Strategy Fund I	9.3%
Total	20.8%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(6.87%)	(15.55%)	(14.18%)	(10.74%)
A-Class Shares	(6.99%)	(15.75%)	(14.39%)	(10.97%)
A-Class Shares with sales charge‡	(11.41%)	(19.76%)	(15.23%)	(11.40%)
C-Class Shares	(7.33%)	(16.39%)	(15.04%)	(11.64%)
C-Class Shares with CDSC§	(8.26%)	(17.23%)	(15.04%)	(11.64%)
S&P 500 Index	7.71%	18.61%	14.22%	7.44%
		6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares		(6.99%)	(15.82%)	(10.91%)
S&P 500 Index		7.71%	18.61%	9.99%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 20.8%
Guggenheim Strategy Fund II1		310,783	$	7,788,224
Guggenheim Strategy Fund I1		252,188		6,332,444
Total Mutual Funds
(Cost $13,966,032)				14,120,668

	Face Amount
FEDERAL AGENCY NOTES†† - 69.2%
Freddie Mac2
1.75% due 10/26/223	$	7,500,000	7,500,000
0.80% due 10/27/17		7,500,000	7,498,680
1.19% due 08/22/223		7,000,000	6,990,046
1.00% due 10/28/193		5,000,000	4,998,185
1.24% due 04/25/223		4,286,000	4,285,559
Total Freddie Mac			31,272,470
Federal Home Loan Bank4
1.19% due 09/13/223		10,000,000	9,996,119
1.00% due 10/26/183		5,000,000	4,995,110
Total Federal Home Loan Bank			14,991,229
Federal Farm Credit Bank4
1.26% (1 Month LIBOR + 3.5 bps) due 12/08/175		600,000	600,218
Total Federal Agency Notes
(Cost $46,885,297)			46,863,917

U.S. TREASURY BILLS†† - 1.5%
U.S. Treasury Bill
1.05% due 12/14/176,7,8	500,000		499,029
1.01% due 12/28/177,8,9	500,000		498,734
Total U.S. Treasury Bills
(Cost $997,635)			997,763
REPURCHASE AGREEMENTS††,10 - 20.8%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/179	7,067,511		7,067,511
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/179	3,533,755		3,533,755
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/179	2,209,205		2,209,205
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	1,196,368		1,196,368
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	125,472		125,472
Total Repurchase Agreements
(Cost $14,132,311)			14,132,311
Total Investments - 112.3%
(Cost $75,981,275)		$	76,114,659
Other Assets & Liabilities, net - (12.3)%			(8,329,196	)
Total Net Assets - 100.0%		$	67,785,463

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Equity Futures Contracts Sold Short†
S&P 500 Index Mini Futures Contracts		138	Dec 2017	$	17,356,950	$	(104,260	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Loss
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	S&P 500 Index	1.50	%	At Maturity	10/31/17		1,458	$	3,672,774	$	(13,299	)
Goldman Sachs International	S&P 500 Index	1.60	%	At Maturity	10/27/17		6,913		17,416,327		(122,354	)
BNP Paribas	S&P 500 Index	1.19	%	At Maturity	10/30/17		11,713		29,508,321		(147,321	)
								$	50,597,422	$	(282,974	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
INVERSE S&P 500® STRATEGY FUND

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
4	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
5	Variable rate security. Rate indicated is rate effective at September 30, 2017.
6	All or a portion of this security is pledged as futures collateral at September 30, 2017.
7	Rate indicated is the effective yield at the time of purchase.
8	Zero coupon rate security.
9	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
10	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Federal Agency Notes	$	—	$	—	$	46,863,917	$	—	$	—	$	46,863,917
Mutual Funds		14,120,668		—		—		—		—		14,120,668
Repurchase Agreements		—		—		14,132,311		—		—		14,132,311
U.S. Treasury Bills		—		—		997,763		—		—		997,763
Total Assets	$	14,120,668	$	—	$	61,993,991	$	—	$	—	$	76,114,659
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts	$	—	$	104,260	$	—	$	—	$	—	$	104,260
Equity Index Swap Agreements		—		—		—		282,974		—		282,974
Total Liabilities	$	—	$	104,260	$	—	$	282,974	$	—	$	387,234

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE S&P 500® STRATEGY FUND

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	6,317,313	$	—	$	—	$	—	$	15,131	$	6,332,444		252,188	$	56,600
Guggenheim Strategy Fund II		7,769,577		—		—		—		18,647		7,788,224		310,783		87,523
	$	14,086,890	$	—	$	—	$	—	$	33,778	$	14,120,668			$	144,123

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $47,882,932)	$	47,861,680
Investments in affiliated issuers, at value (cost $13,966,032)	$	14,120,668
Repurchase agreements, at value (cost $14,132,311)		14,132,311
Segregated cash with broker		309,288
Receivables:
Interest		96,020
Fund shares sold		64,174
Dividends		24,166
Total assets		76,608,307
Liabilities:
Unrealized depreciation on swap agreements		282,974
Payable for:
Securities purchased		7,500,000
Fund shares redeemed		831,246
Variation margin		70,366
Management fees		53,160
Swap settlement		25,278
Transfer agent and administrative fees		14,767
Portfolio accounting fees		5,907
Distribution and service fees		5,613
Miscellaneous		33,533
Total liabilities		8,822,844
Commitments and contingent liabilities (Note 12)		—
Net assets	$	67,785,463
Net assets consist of:
Paid in capital	$	433,692,555
Accumulated net investment loss		(304,944	)
Accumulated net realized loss on investments		(365,348,298	)
Net unrealized depreciation on investments		(253,850	)
Net assets	$	67,785,463
Investor Class:
Net assets	$	55,249,905
Capital shares outstanding		843,287
Net asset value per share	$	65.52
A-Class:
Net assets	$	5,702,680
Capital shares outstanding		94,013
Net asset value per share	$	60.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	63.69
C-Class:
Net assets	$	4,013,683
Capital shares outstanding		73,003
Net asset value per share	$	54.98
H-Class:
Net assets	$	2,819,195
Capital shares outstanding		46,473
Net asset value per share	$	60.66

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	144,123
Interest		321,590
Total investment income		465,713
Expenses:
Management fees		375,741
Distribution and service fees:
A-Class		7,720
C-Class		29,626
H-Class		7,804
Transfer agent and administrative fees		104,372
Portfolio accounting fees		41,749
Registration fees		38,357
Custodian fees		5,492
Trustees’ fees*		3,667
Line of credit fees		57
Miscellaneous		33,377
Total expenses		647,962
Net investment loss		(182,249	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(482	)
Swap agreements		(5,885,011	)
Futures contracts		(282,771	)
Net realized loss		(6,168,264	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		12,716
Investments in affiliated issuers		33,778
Swap agreements		309,832
Futures contracts		(110,103	)
Net change in unrealized appreciation (depreciation)		246,223
Net realized and unrealized loss		(5,922,041	)
Net decrease in net assets resulting from operations	$	(6,104,290	)

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

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(182,249	)	$	(1,061,768	)
Net realized loss on investments		(6,168,264	)		(22,072,461	)
Net change in unrealized appreciation (depreciation) on investments		246,223			824,680
Net decrease in net assets resulting from operations		(6,104,290	)		(22,309,549	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		29,638,488			216,913,681
A-Class		3,131,332			40,603,523
C-Class		3,116,981			14,721,850
H-Class		28,368,309			74,772,925
Cost of shares redeemed
Investor Class		(46,121,872	)		(276,226,585	)
A-Class		(3,296,358	)		(41,519,960	)
C-Class		(5,435,708	)		(16,239,943	)
H-Class		(27,863,664	)		(77,726,210	)
Net decrease from capital share transactions		(18,462,492	)		(64,700,719	)
Net decrease in net assets		(24,566,782	)		(87,010,268	)
Net assets:
Beginning of period		92,352,245			179,362,513
End of period	$	67,785,463		$	92,352,245
Accumulated net investment loss at end of period	$	(304,944	)	$	(122,695	)
Capital share activity:
Shares sold
Investor Class		434,796			2,775,050	*
A-Class		49,089			543,016	*
C-Class		53,156			232,771	*
H-Class		445,489			1,020,456	*
Shares redeemed
Investor Class		(677,506	)		(3,537,019	)*
A-Class		(52,157	)		(565,804	)*
C-Class		(94,087	)		(249,423	)*
H-Class		(442,819	)		(1,071,490	)*
Net decrease in shares		(284,039	)		(852,443	)*

* Capital share activity for the periods presented through March 31, 2017 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

44 | 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, 2017a			Year Ended March 31, 2017 f			Year Ended March 31, 2016 f			Year Ended March 31, 2015 f			Year Ended March 31, 2014 f			Year Ended March 28, 2013 f
Per Share Data
Net asset value, beginning of period	$	70.35		$	83.09		$	87.54		$	100.90		$	126.16		$	147.65
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.55	)		(.78	)		(1.02	)		(1.50	)		(1.80	)
Net gain (loss) on investments (realized and unrealized)		(4.72	)		(12.19	)		(3.67	)		(12.34	)		(23.76	)		(19.69	)
Total from investment operations		(4.83	)		(12.74	)		(4.45	)		(13.36	)		(25.26	)		(21.49	)
Net asset value, end of period	$	65.52		$	70.35		$	83.09		$	87.54		$	100.90		$	126.16
Total Returnc		(6.87	%)		(15.34	%)		(5.07	%)		(13.26	%)		(20.02	%)		(14.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,250		$	76,404		$	153,544		$	60,745		$	79,172		$	106,158
Ratios to average net assets:
Net investment income (loss)		(0.33	%)		(0.70	%)		(0.91	%)		(1.07	%)		(1.35	%)		(1.27	%)
Total expensesd		1.44	%		1.42	%		1.41	%		1.41	%		1.42	%		1.41	%
Portfolio turnover rate		41	%		114	%		63	%		103	%		—			—

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 f			Year Ended March 31, 2016 f			Year Ended March 31, 2015 f			Year Ended March 31, 2014 f			Year Ended March 28, 2013 f
Per Share Data
Net asset value, beginning of period	$	65.22		$	77.21		$	81.54		$	94.27		$	118.13		$	138.59
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.70	)		(.96	)		(1.14	)		(1.68	)		(2.04	)
Net gain (loss) on investments (realized and unrealized)		(4.38	)		(11.29	)		(3.37	)		(11.59	)		(22.18	)		(18.42	)
Total from investment operations		(4.56	)		(11.99	)		(4.33	)		(12.73	)		(23.86	)		(20.46	)
Net asset value, end of period	$	60.66		$	65.22		$	77.21		$	81.54		$	94.27		$	118.13
Total Returnc		(6.99	%)		(15.54	%)		(5.30	%)		(13.49	%)		(20.21	%)		(14.76	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,703		$	6,331		$	9,256		$	4,758		$	5,468		$	5,912
Ratios to average net assets:
Net investment income (loss)		(0.57	%)		(0.96	%)		(1.18	%)		(1.32	%)		(1.58	%)		(1.52	%)
Total expensesd		1.69	%		1.67	%		1.66	%		1.66	%		1.68	%		1.65	%
Portfolio turnover rate		41	%		114	%		63	%		103	%		—			—

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 f			Year Ended March 31, 2016 f			Year Ended March 31, 2015 f			Year Ended March 31, 2014 f			Year Ended March 28, 2013 f
Per Share Data
Net asset value, beginning of period	$	59.34		$	70.79		$	75.34		$	87.73		$	110.78		$	130.97
Income (loss) from investment operations:
Net investment income (loss)b		(.39	)		(1.12	)		(1.44	)		(1.68	)		(2.28	)		(2.88	)
Net gain (loss) on investments (realized and unrealized)		(3.97	)		(10.33	)		(3.11	)		(10.71	)		(20.77	)		(17.31	)
Total from investment operations		(4.36	)		(11.45	)		(4.55	)		(12.39	)		(23.05	)		(20.19	)
Net asset value, end of period	$	54.98		$	59.34		$	70.79		$	75.34		$	87.73		$	110.78
Total Returnc		(7.33	%)		(16.20	%)		(6.05	%)		(14.09	%)		(20.80	%)		(15.44	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,014		$	6,760		$	9,244		$	5,121		$	6,177		$	7,041
Ratios to average net assets:
Net investment income (loss)		(1.34	%)		(1.69	%)		(1.93	%)		(2.07	%)		(2.34	%)		(2.27	%)
Total expensesd		2.44	%		2.42	%		2.41	%		2.41	%		2.42	%		2.40	%
Portfolio turnover rate		41	%		114	%		63	%		103	%		—			—

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 f			Year Ended March 31, 2016 f			Period Ended March 31, 2015e,f
Per Share Data
Net asset value, beginning of period	$	65.22		$	77.17		$	81.54		$	86.10
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.70	)		(.90	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(4.37	)		(11.25	)		(3.47	)		(4.02	)
Total from investment operations		(4.56	)		(11.95	)		(4.37	)		(4.56	)
Net asset value, end of period	$	60.66		$	65.22		$	77.17		$	81.54
Total Returnc		(6.99	%)		(15.47	%)		(5.37	%)		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,819		$	2,857		$	7,319		$	13,085
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		(0.96	%)		(1.08	%)		(1.27	%)
Total expensesd		1.69	%		1.67	%		1.67	%		1.60	%
Portfolio turnover rate		41	%		114	%		63	%		103	%

a	Unaudited figures for the period ended September 30, 2017. 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 is for the entire period of the Fund, not since the commencement of operations of the class.
f	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Apple, Inc.	7.2%
Guggenheim Strategy Fund II	6.8%
Guggenheim Strategy Fund I	6.7%
Microsoft Corp.	5.2%
Amazon.com, Inc.	4.2%
Facebook, Inc. — Class A	3.7%
Alphabet, Inc. — Class C	3.0%
Alphabet, Inc. — Class A	2.6%
Comcast Corp. — Class A	1.6%
Intel Corp.	1.6%
Top Ten Total	42.6%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	Since Inception (11/28/14)
A-Class Shares	19.91%	48.47%	25.43%
A-Class Shares with sales charge‡	14.21%	41.43%	23.30%
C-Class Shares	19.49%	47.36%	24.41%
C-Class Shares with CDSC§	18.49%	46.36%	24.41%
H-Class Shares	19.90%	48.42%	26.49%
NASDAQ-100 Index	10.61%	24.08%	13.32%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 61.7%
Technology - 23.5%
Apple, Inc.		15,318	$	2,360,810
Microsoft Corp.		22,842		1,701,501
Intel Corp.		13,935		530,644
NVIDIA Corp.		1,779		318,032
Broadcom Ltd.		1,206		292,503
Texas Instruments, Inc.		2,936		263,183
QUALCOMM, Inc.		4,377		226,904
Adobe Systems, Inc.*		1,463		218,250
Applied Materials, Inc.		3,163		164,761
Activision Blizzard, Inc.		2,239		144,438
Micron Technology, Inc.*		3,304		129,946
Cognizant Technology Solutions Corp. — Class A		1,752		127,090
Electronic Arts, Inc.*		916		108,143
Intuit, Inc.		760		108,026
Analog Devices, Inc.		1,090		93,925
Lam Research Corp.		482		89,189
Fiserv, Inc.*		624		80,471
Western Digital Corp.		874		75,514
Autodesk, Inc.*		650		72,969
Cerner Corp.*		983		70,108
Paychex, Inc.		1,066		63,917
Microchip Technology, Inc.		690		61,948
NetEase, Inc. ADR		225		59,357
Skyworks Solutions, Inc.		545		55,536
Check Point Software Technologies Ltd.*		485		55,300
Xilinx, Inc.		737		52,202
KLA-Tencor Corp.		465		49,290
CA, Inc.		1,249		41,692
Maxim Integrated Products, Inc.		836		39,886
Citrix Systems, Inc.*		449		34,492
Seagate Technology plc		854		28,327
Akamai Technologies, Inc.*		508		24,750
Total Technology				7,743,104
Communications - 22.8%
Amazon.com, Inc.*		1,425		1,369,925
Facebook, Inc. — Class A*		7,030		1,201,216
Alphabet, Inc. — Class C*		1,031		988,842
Alphabet, Inc. — Class A*		884		860,768
Comcast Corp. — Class A		13,950		536,796
Cisco Systems, Inc.		14,828		498,665
Charter Communications, Inc. — Class A*		765		278,016
Priceline Group, Inc.*		145		265,469
Netflix, Inc.*		1,280		232,128
Baidu, Inc. ADR*		817		202,363
T-Mobile US, Inc.*		2,465		151,992
eBay, Inc.*		3,174		122,072
JD.com, Inc. ADR*		2,722		103,980
Twenty-First Century Fox, Inc. — Class A		3,121		82,332
Sirius XM Holdings, Inc.1		13,680		75,514
Ctrip.com International Ltd. ADR*		1,358		71,621
Twenty-First Century Fox, Inc. — Class B		2,368		61,071
Symantec Corp.		1,822		59,780
Expedia, Inc.		412		59,303
Liberty Global plc — Class C*		1,766		57,748
Vodafone Group plc ADR		1,378		39,218
DISH Network Corp. — Class A*		675		36,605
MercadoLibre, Inc.		131		33,920
Viacom, Inc. — Class B		1,046		29,121
Liberty Global plc — Class A*		669		22,686
Liberty Ventures*		241		13,870
Discovery Communications, Inc. — Class C*		648		13,128
Discovery Communications, Inc. — Class A*		457		9,730
Liberty Global plc LiLAC — Class C*		358		8,341
Liberty Global plc LiLAC — Class A*		144		3,421
Total Communications				7,489,641
Consumer, Non-cyclical - 10.0%
Amgen, Inc.		2,164		403,479
Celgene Corp.*		2,320		338,302
Gilead Sciences, Inc.		3,873		313,790
Kraft Heinz Co.		3,613		280,188
PayPal Holdings, Inc.*		3,566		228,330
Biogen, Inc.*		627		196,326
Mondelez International, Inc. — Class A		4,471		181,791
Automatic Data Processing, Inc.		1,318		144,084
Regeneron Pharmaceuticals, Inc.*		312		139,501
Intuitive Surgical, Inc.*		111		116,093
Vertex Pharmaceuticals, Inc.*		748		113,726
Express Scripts Holding Co.*		1,713		108,468
Monster Beverage Corp.*		1,685		93,096
Alexion Pharmaceuticals, Inc.*		662		92,872
Illumina, Inc.*		433		86,254
Incyte Corp.*		610		71,211
Mylan N.V.*		1,590		49,878
BioMarin Pharmaceutical, Inc.*		520		48,396
Cintas Corp.		313		45,160
Dentsply Sirona, Inc.		681		40,731
Verisk Analytics, Inc. — Class A*		488		40,597
IDEXX Laboratories, Inc.*		259		40,272
Henry Schein, Inc.*		469		38,453
Shire plc ADR		216		33,078
Hologic, Inc.*		832		30,526
Total Consumer, Non-cyclical				3,274,602
Consumer, Cyclical - 4.8%
Walgreens Boots Alliance, Inc.		3,174		245,095
Starbucks Corp.		4,282		229,986
Costco Wholesale Corp.		1,301		213,741
Tesla, Inc.*,1		495		168,845
Marriott International, Inc. — Class A		1,104		121,727
PACCAR, Inc.		1,042		75,378
Ross Stores, Inc.		1,154		74,514
American Airlines Group, Inc.		1,444		68,576
Dollar Tree, Inc.*		702		60,948
O’Reilly Automotive, Inc.*		261		56,212
Wynn Resorts Ltd.		304		45,272
Ulta Beauty, Inc.*		182		41,143

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Fastenal Co.		854	$	38,925
Norwegian Cruise Line Holdings Ltd.*		677		36,592
Hasbro, Inc.		371		36,235
Liberty Interactive Corporation QVC Group — Class A*		1,251		29,486
Tractor Supply Co.		376		23,797
Mattel, Inc.		1,016		15,728
Total Consumer, Cyclical				1,582,200
Industrial - 0.6%
CSX Corp.		2,709		146,990
J.B. Hunt Transport Services, Inc.		325		36,101
Total Industrial				183,091
Total Common Stocks
(Cost $18,260,837)				20,272,638
MUTUAL FUNDS† - 13.5%
Guggenheim Strategy Fund II2		88,784		2,224,922
Guggenheim Strategy Fund I2		88,606		2,224,893
Total Mutual Funds
(Cost $4,427,002)				4,449,815

	Face Amount
U.S. TREASURY BILLS†† - 3.0%
U.S. Treasury Bill
1.01% due 12/28/173,4,5	$	1,000,000	997,469
Total U.S. Treasury Bills
(Cost $997,439)			997,469

REPURCHASE AGREEMENTS††,6 - 14.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/173	2,380,873	2,380,873
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/173	1,190,436	1,190,436
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/173	846,705	846,704
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	310,277	310,277
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	32,541	32,541
Total Repurchase Agreements
(Cost $4,760,831)		4,760,831

	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.4%
First American Government Obligations Fund — Class Z, 0.89%8		147,573		147,573
Total Securities Lending Collateral
(Cost $147,573)				147,573
Total Investments - 93.1%
(Cost $28,593,682)			$	30,628,326
Other Assets & Liabilities, net - 6.9%				2,260,922
Total Net Assets - 100.0%			$	32,889,248

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
Barclays Bank plc	NASDAQ-100 Index	1.70	%	At Maturity	10/31/17		5,118	$	30,599,813	$	232,293
Goldman Sachs International	NASDAQ-100 Index	1.80	%	At Maturity	10/27/17		2,115		12,645,812		206,284
BNP Paribas	NASDAQ-100 Index	1.74	%	At Maturity	10/30/17		383		2,287,366		15,613
								$	45,532,991	$	454,190

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY 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	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
4	Rate indicated is the effective yield at the time of purchase.
5	Zero coupon rate security.
6	Repurchase Agreements — See Note 6.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	20,272,638	$	—	$	—	$	—	$	20,272,638
Equity Index Swap Agreements		—		—		454,190		—		454,190
Mutual Funds		4,449,815		—		—		—		4,449,815
Repurchase Agreements		—		4,760,831		—		—		4,760,831
Securities Lending Collateral		147,573		—		—		—		147,573
U.S. Treasury Bills		—		997,469		—		—		997,469
Total Assets	$	24,870,026	$	5,758,300	$	454,190	$	—	$	31,082,516

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	1,719,776	$	500,000	$	—	$	—	$	5,117	$	2,224,893		88,606	$	18,445
Guggenheim Strategy Fund II		1,719,595		500,000		—		—		5,327		2,224,922		88,784		23,023
	$	3,439,371	$	1,000,000	$	—	$	—	$	10,444	$	4,449,815			$	41,468

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $144,808 of securities loaned (cost $19,405,849)	$	21,417,680
Investments in affiliated issuers, at value (cost $4,427,002)		4,449,815
Repurchase agreements, at value (cost $4,760,831)		4,760,831
Cash		1,411
Segregated cash with broker		2,054,664
Unrealized appreciation on swap agreements		454,190
Receivables:
Dividends		11,770
Investment adviser		11,494
Fund shares sold		11,314
Swap settlement		4,726
Interest		265
Securities lending income		67
Total assets		33,178,227
Liabilities:
Payable for:
Return of securities loaned		147,572
Fund shares redeemed		80,241
Management fees		26,730
Distribution and service fees		7,676
Transfer agent and administrative fees		7,425
Portfolio accounting fees		2,970
Miscellaneous		16,365
Total liabilities		288,979
Commitments and contingent liabilities (Note 12)		—
Net assets	$	32,889,248
Net assets consist of:
Paid in capital	$	120,241,916
Accumulated net investment loss		(81,783	)
Accumulated net realized loss on investments		(89,759,719	)
Net unrealized appreciation on investments		2,488,834
Net assets	$	32,889,248
A-Class:
Net assets	$	1,703,404
Capital shares outstanding		17,909
Net asset value per share	$	95.11
Maximum offering price per share (Net asset value divided by 95.25%)	$	99.85
C-Class:
Net assets	$	396,140
Capital shares outstanding		4,262
Net asset value per share	$	92.95
H-Class:
Net assets	$	30,789,704
Capital shares outstanding		316,035
Net asset value per share	$	97.42

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $72)	$	122,349
Dividends from securities of affiliated issuers		41,468
Interest		35,487
Income from securities lending, net		840
Total investment income		200,144
Expenses:
Management fees		170,124
Distribution and service fees:
A-Class		1,161
C-Class		1,139
H-Class		45,811
Transfer agent and administrative fees		47,257
Portfolio accounting fees		18,903
Registration fees		17,653
Custodian fees		2,474
Trustees’ fees*		1,533
Line of credit fees		4
Miscellaneous		21,907
Total expenses		327,966
Less:
Expenses waived by Adviser		(71,933	)
Net expenses		256,033
Net investment loss		(55,889	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,257,190
Swap agreements		4,159,164
Futures contracts		107,907
Net realized gain		5,524,261
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(222,775	)
Investments in affiliated issuers		10,444
Swap agreements		338,354
Futures contracts		(8,109	)
Net change in unrealized appreciation (depreciation)		117,914
Net realized and unrealized gain		5,642,175
Net increase in net assets resulting from operations	$	5,586,286

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

52 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(55,889	)	$	(81,109	)
Net realized gain on investments		5,524,261			1,489,138
Net change in unrealized appreciation (depreciation) on investments		117,914			2,207,612
Net increase in net assets resulting from operations		5,586,286			3,615,641
Capital share transactions:
Proceeds from sale of shares
A-Class		1,287,751			1,029,778
C-Class		634,776			434,997
H-Class		51,632,170			92,047,101
Cost of shares redeemed
A-Class		(722,002	)		(464,494	)
C-Class		(356,432	)		(380,929	)
H-Class		(54,845,960	)		(71,098,351	)
Net increase (decrease) from capital share transactions		(2,369,697	)		21,568,102
Net increase in net assets		3,216,589			25,183,743
Net assets:
Beginning of period		29,672,659			4,488,916
End of period	$	32,889,248		$	29,672,659
Accumulated net investment loss at end of period	$	(81,783	)	$	(25,894	)
Capital share activity:
Shares sold
A-Class		14,025			15,538
C-Class		7,276			5,962
H-Class		557,448			1,422,966
Shares redeemed
A-Class		(8,855	)		(7,319	)
C-Class		(4,164	)		(5,237	)
H-Class		(593,078	)		(1,146,939	)
Net increase (decrease) in shares		(27,348	)		284,971

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	79.32		$	54.45		$	51.68		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.14	)		(.18	)		(.27	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		15.93			25.05			3.04			1.75
Total from investment operations		15.79			24.87			2.77			1.68
Net asset value, end of period	$	95.11		$	79.32		$	54.45		$	51.68
Total Returnf		19.91	%		45.65	%		5.38	%		3.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,703		$	1,010		$	246		$	465
Ratios to average net assets:
Net investment income (loss)		(0.32	%)		(0.28	%)		(0.48	%)		(0.39	%)
Total expensesd		1.73	%		1.72	%		1.70	%		1.63	%
Net expensese,g		1.35	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		191	%		259	%		551	%		84	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	77.79		$	53.80		$	51.55		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.48	)		(.73	)		(.56	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		15.64			24.72			2.81			1.74
Total from investment operations		15.16			23.99			2.25			1.55
Net asset value, end of period	$	92.95		$	77.79		$	53.80		$	51.55
Total Returnf		19.49	%		44.52	%		4.40	%		3.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	396		$	89		$	23		$	14
Ratios to average net assets:
Net investment income (loss)		(1.09	%)		(1.10	%)		(1.04	%)		(1.13	%)
Total expensesd		2.48	%		2.47	%		2.51	%		2.43	%
Net expensese,g		2.10	%		2.10	%		2.17	%		2.13	%
Portfolio turnover rate		191	%		259	%		551	%		84	%

54 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	81.25		$	55.79		$	51.57		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.23	)		(.17	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		16.30			25.69			4.39			1.67
Total from investment operations		16.17			25.46			4.22			1.57
Net asset value, end of period	$	97.42		$	81.25		$	55.79		$	51.57
Total Returnf		19.90	%		45.64	%		8.18	%		3.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	30,790		$	28,573		$	4,220		$	342,658
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.35	%)		(0.30	%)		(0.60	%)
Total expensesd		1.73	%		1.72	%		1.67	%		1.64	%
Net expensese,g		1.35	%		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		191	%		259	%		551	%		84	%

a	Unaudited figures for the period ended September 30, 2017. 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.
g	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the period ended September 30, 2017 and the years ended March 31 would be:

	9/30/17	3/31/17	3/31/16	3/31/15
A-Class	1.35%	1.35%	1.35%	1.35%
C-Class	2.10%	2.10%	2.10%	2.10%
H-Class	1.35%	1.35%	1.35%	1.35%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
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 II	24.3%
Guggenheim Strategy Fund I	24.2%
Total	48.5%

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

56 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(9.47%)	(19.39%)	(17.16%)	(15.06%)
A-Class Shares	(9.57%)	(19.62%)	(17.19%)	(15.18%)
A-Class Shares with sales charge‡	(13.87%)	(23.43%)	(17.99%)	(15.60%)
C-Class Shares	(9.90%)	(20.19%)	(18.05%)	(15.93%)
C-Class Shares with CDSC§	(10.80%)	(20.99%)	(18.05%)	(15.93%)
NASDAQ-100 Index	10.61%	24.08%	17.91%	12.24%
		6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares		(9.59%)	(19.60%)	(14.91%)
NASDAQ-100 Index		10.61%	24.08%	14.60%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 57

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 48.5%
Guggenheim Strategy Fund II1		104,998	$	2,631,243
Guggenheim Strategy Fund I1		104,616		2,626,915
Total Mutual Funds
(Cost $5,211,634)				5,258,158

	Face Amount
REPURCHASE AGREEMENTS††,2 - 62.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/173	$	3,399,071	3,399,071
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/173		1,699,535	1,699,535

RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/173	1,032,293		1,032,293
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	602,727		602,727
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	63,212		63,212
Total Repurchase Agreements
(Cost $6,796,838)			6,796,838
Total Investments - 111.2%
(Cost $12,008,472)		$	12,054,996
Other Assets & Liabilities, net - (11.2)%			(1,209,161	)
Total Net Assets - 100.0%		$	10,845,835

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Equity Futures Contracts Sold Short†
NASDAQ-100 Index Mini Futures Contracts		3	Dec 2017	$	358,860	$	(192	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Loss
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	NASDAQ-100 Index	1.55	%	At Maturity	10/31/17		306	$	1,828,586	$	(13,964	)
BNP Paribas	NASDAQ-100 Index	1.24	%	At Maturity	10/30/17		444		2,655,284		(18,208	)
Goldman Sachs International	NASDAQ-100 Index	1.50	%	At Maturity	10/27/17		989		5,911,294		(96,510	)
								$	10,395,164	$	(128,682	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE NASDAQ-100® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	5,258,158	$	—	$	—	$	—	$	—	$	5,258,158
Repurchase Agreements		—		—		6,796,838		—		—		6,796,838
Total Assets	$	5,258,158	$	—	$	6,796,838	$	—	$	—	$	12,054,996
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts	$	—	$	192	$	—	$	—	$	—	$	192
Equity Index Swap Agreements		—		—		—		128,682		—		128,682
Total Liabilities	$	—	$	192	$	—	$	128,682	$	—	$	128,874

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	2,620,638	$	—	$	—	$	—	$	6,277	$	2,626,915		104,616	$	23,481
Guggenheim Strategy Fund II		2,624,943		—		—		—		6,300		2,631,243		104,998		29,569
	$	5,245,581	$	—	$	—	$	—	$	12,577	$	5,258,158			$	53,050

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in affiliated issuers, at value (cost $5,211,634)	$	5,258,158
Repurchase agreements, at value (cost $6,796,838)		6,796,838
Segregated cash with broker		113,501
Receivables:
Fund shares sold		111,492
Dividends		8,920
Interest		378
Total assets		12,289,287
Liabilities:
Unrealized depreciation on swap agreements		128,682
Payable for:
Fund shares redeemed		1,265,372
Swap settlement		25,546
Management fees		8,919
Variation margin		2,550
Transfer agent and administrative fees		2,477
Distribution and service fees		1,760
Portfolio accounting fees		991
Miscellaneous		7,155
Total liabilities		1,443,452
Commitments and contingent liabilities (Note 12)		—
Net assets	$	10,845,835
Net assets consist of:
Paid in capital	$	65,396,919
Accumulated net investment loss		(20,897	)
Accumulated net realized loss on investments		(54,447,837	)
Net unrealized depreciation on investments		(82,350	)
Net assets	$	10,845,835
Investor Class:
Net assets	$	6,173,855
Capital shares outstanding		87,801
Net asset value per share	$	70.32
A-Class:
Net assets	$	2,870,511
Capital shares outstanding		41,971
Net asset value per share	$	68.39
Maximum offering price per share (Net asset value divided by 95.25%)	$	71.80
C-Class:
Net assets	$	1,188,197
Capital shares outstanding		20,219
Net asset value per share	$	58.77
H-Class:
Net assets	$	613,272
Capital shares outstanding		9,098
Net asset value per share	$	67.41

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	53,050
Interest		29,143
Total investment income		82,193
Expenses:
Management fees		51,340
Distribution and service fees:
A-Class		3,289
C-Class		6,118
H-Class		971
Transfer agent and administrative fees		14,261
Portfolio accounting fees		5,705
Registration fees		5,430
Custodian fees		756
Trustees’ fees*		488
Line of credit fees		3
Miscellaneous		6,190
Total expenses		94,551
Net investment loss		(12,358	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		8,382
Swap agreements		(931,799	)
Futures contracts		(88,114	)
Net realized loss		(1,011,531	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,713	)
Investments in affiliated issuers		12,577
Swap agreements		(64,595	)
Futures contracts		6,915
Net change in unrealized appreciation (depreciation)		(47,816	)
Net realized and unrealized loss		(1,059,347	)
Net decrease in net assets resulting from operations	$	(1,071,705	)

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

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(12,358	)	$	(180,441	)
Net realized loss on investments		(1,011,531	)		(6,273,609	)
Net change in unrealized appreciation (depreciation) on investments		(47,816	)		1,287,438
Net decrease in net assets resulting from operations		(1,071,705	)		(5,166,612	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		61,359,774			68,630,748
A-Class		1,224,514			196,691,141
C-Class		297,923			4,397,242
H-Class		17,782,389			37,021,976
Cost of shares redeemed
Investor Class		(60,819,949	)		(72,329,507	)
A-Class		(727,343	)		(246,743,211	)
C-Class		(225,224	)		(4,285,878	)
H-Class		(17,593,355	)		(36,110,405	)
Net increase (decrease) from capital share transactions		1,298,729			(52,727,894	)
Net increase (decrease) in net assets		227,024			(57,894,506	)
Net assets:
Beginning of period		10,618,811			68,513,317
End of period	$	10,845,835		$	10,618,811
Accumulated net investment loss at end of period	$	(20,897	)	$	(8,539	)
Capital share activity:
Shares sold
Investor Class		828,620			780,223	*
A-Class		16,999			2,137,082	*
C-Class		4,839			59,951	*
H-Class		256,025			412,562	*
Shares redeemed
Investor Class		(821,743	)		(822,276	)*
A-Class		(9,745	)		(2,686,864	)*
C-Class		(3,731	)		(58,648	)*
H-Class		(253,101	)		(409,102	)*
Net increase (decrease) in shares		18,163			(587,072	)*

* Capital share activity for the periods presented through March 31, 2017 has been restated to reflect a 1:4 reverse split effective November 4, 2016 — See Note 11.

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017g			Year Ended March 31, 2016 g			Year Ended March 31, 2015 g			Year Ended March 31, 2014 f,g			Year Ended March 28, 2013 f,g
Per Share Data
Net asset value, beginning of period	$	77.68		$	96.42		$	105.47		$	132.37		$	175.63		$	187.81
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.51	)		(1.08	)		(1.32	)		(2.16	)		(2.40	)
Net gain (loss) on investments (realized and unrealized)		(7.35	)		(18.23	)		(7.97	)		(25.58	)		(41.10	)		(9.78	)
Total from investment operations		(7.36	)		(18.74	)		(9.05	)		(26.90	)		(43.26	)		(12.18	)
Net asset value, end of period	$	70.32		$	77.68		$	96.42		$	105.47		$	132.37		$	175.63
Total Returnc		(9.47	%)		(19.42	%)		(8.61	%)		(20.31	%)		(24.62	%)		(6.50	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,174		$	6,286		$	11,857		$	6,821		$	6,865		$	7,709
Ratios to average net assets:
Net investment income (loss)		(0.04	%)		(0.57	%)		(1.04	%)		(1.14	%)		(1.44	%)		(1.32	%)
Total expensesd		1.48	%		1.46	%		1.44	%		1.46	%		1.46	%		1.44	%
Portfolio turnover rate		—			486	%		1,674	%		149	%		—			—

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 g			Year Ended March 31, 2016 g			Year Ended March 31, 2015 g			Year Ended March 31, 2014 f,g			Year Ended March 28, 2013 f,g
Per Share Data
Net asset value, beginning of period	$	75.63		$	94.01		$	101.76		$	127.98		$	170.45		$	183.06
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(1.00	)		(1.32	)		(1.48	)		(2.40	)		(2.80	)
Net gain (loss) on investments (realized and unrealized)		(7.14	)		(17.38	)		(6.43	)		(24.74	)		(40.07	)		(9.81	)
Total from investment operations		(7.24	)		(18.38	)		(7.75	)		(26.22	)		(42.47	)		(12.61	)
Net asset value, end of period	$	68.39		$	75.63		$	94.01		$	101.76		$	127.98		$	170.45
Total Returnc		(9.57	%)		(19.54	%)		(7.63	%)		(20.50	%)		(24.88	%)		(6.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,871		$	2,626		$	54,948		$	570		$	372		$	183
Ratios to average net assets:
Net investment income (loss)		(0.28	%)		(1.08	%)		(1.36	%)		(1.35	%)		(1.69	%)		(1.56	%)
Total expensesd		1.73	%		1.70	%		1.69	%		1.71	%		1.71	%		1.68	%
Portfolio turnover rate		—			486	%		1,674	%		149	%		—			—

62 | 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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 g			Year Ended March 31, 2016 g			Year Ended March 31, 2015 g			Year Ended March 31, 2014 f,g			Year Ended March 28, 2013, f,g
Per Share Data
Net asset value, beginning of period	$	65.23		$	81.79		$	90.32		$	114.51		$	153.69		$	166.31
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(1.14	)		(1.80	)		(2.12	)		(3.20	)		(3.80	)
Net gain (loss) on investments (realized and unrealized)		(6.15	)		(15.42	)		(6.73	)		(22.07	)		(35.98	)		(8.82	)
Total from investment operations		(6.46	)		(16.56	)		(8.53	)		(24.19	)		(39.18	)		(12.62	)
Net asset value, end of period	$	58.77		$	65.23		$	81.79		$	90.32		$	114.51		$	153.69
Total Returnc		(9.90	%)		(20.26	%)		(9.43	%)		(21.13	%)		(25.44	%)		(7.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,188		$	1,247		$	1,457		$	998		$	561		$	678
Ratios to average net assets:
Net investment income (loss)		(1.02	%)		(1.51	%)		(2.09	%)		(2.12	%)		(2.44	%)		(2.32	%)
Total expensesd		2.47	%		2.46	%		2.44	%		2.46	%		2.46	%		2.44	%
Portfolio turnover rate		—			486	%		1,674	%		149	%		—			—

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017 g			Year Ended March 31, 2016 g			Period Ended March 31, 2015e, g
Per Share Data
Net asset value, beginning of period	$	74.56		$	92.82		$	101.76		$	110.00
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.86	)		(1.16	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		(7.05	)		(17.40	)		(7.78	)		(7.44	)
Total from investment operations		(7.15	)		(18.26	)		(8.94	)		(8.24	)
Net asset value, end of period	$	67.41		$	74.56		$	92.82		$	101.76
Total Returnc		(9.59	%)		(19.65	%)		(8.80	%)		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	613		$	460		$	252		$	335
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.95	%)		(1.18	%)		(1.35	%)
Total expensesd		1.73	%		1.70	%		1.70	%		1.68	%
Portfolio turnover rate		—			486	%		1,674	%		149	%

a	Unaudited figures for the period ended September 30, 2017. 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 is for the entire period of the Fund, not since the commencement of operations of the class.
f	Reverse share split — Per share amounts for the periods presented through March 31, 2014, have been restated to reflect a 1:5 reverse share split effective February 21, 2014.
g	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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 II	33.4%
Guggenheim Strategy Fund I	23.8%
Teleflex, Inc.	0.1%
Take-Two Interactive Software, Inc.	0.1%
MSCI, Inc. — Class A	0.1%
Huntington Ingalls Industries, Inc.	0.1%
Trimble, Inc.	0.1%
NVR, Inc.	0.1%
SVB Financial Group	0.1%
Domino's Pizza, Inc.	0.1%
Top Ten Total	58.0%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	6.75%	24.67%	19.23%	8.92%
A-Class Shares with sales charge‡	1.68%	18.74%	18.07%	8.39%
C-Class Shares	6.35%	23.78%	18.35%	8.12%
C-Class Shares with CDSC§	5.35%	22.78%	18.35%	8.12%
H-Class Shares	6.74%	24.76%	19.30%	8.96%
S&P MidCap 400 Index	5.26%	17.52%	14.43%	9.00%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

64 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 15.3%
Financial - 3.9%
SVB Financial Group*		91	$	17,025
Reinsurance Group of America, Inc. — Class A		112		15,627
Alleghany Corp.*		27		14,958
East West Bancorp, Inc.		250		14,945
Camden Property Trust REIT		152		13,901
SEI Investments Co.		227		13,860
American Financial Group, Inc.		119		12,311
Signature Bank*		95		12,164
Kilroy Realty Corp. REIT		170		12,090
WR Berkley Corp.		166		11,079
New York Community Bancorp, Inc.		846		10,905
Omega Healthcare Investors, Inc. REIT1		341		10,881
Janus Henderson Group plc		312		10,870
National Retail Properties, Inc. REIT		258		10,748
PacWest Bancorp		208		10,506
Liberty Property Trust REIT		255		10,470
Douglas Emmett, Inc. REIT		265		10,446
American Campus Communities, Inc. REIT		236		10,419
Bank of the Ozarks		210		10,091
Lamar Advertising Co. — Class A REIT		145		9,937
Eaton Vance Corp.		199		9,825
Brown & Brown, Inc.		201		9,686
Synovus Financial Corp.		210		9,673
Jones Lang LaSalle, Inc.		78		9,633
First American Financial Corp.		192		9,594
Cullen/Frost Bankers, Inc.		101		9,587
Sterling Bancorp		387		9,540
RenaissanceRe Holdings Ltd.		70		9,460
DCT Industrial Trust, Inc. REIT		161		9,325
Highwoods Properties, Inc. REIT		179		9,324
CyrusOne, Inc. REIT		158		9,311
Commerce Bancshares, Inc.		155		8,954
Pinnacle Financial Partners, Inc.		128		8,570
SLM Corp.*		747		8,568
Webster Financial Corp.		159		8,355
Old Republic International Corp.		424		8,349
Medical Properties Trust, Inc. REIT		630		8,272
Hospitality Properties Trust REIT		284		8,091
Senior Housing Properties Trust REIT		411		8,035
Prosperity Bancshares, Inc.		120		7,888
FNB Corp.		559		7,843
First Horizon National Corp.		405		7,756
EPR Properties REIT		111		7,741
Wintrust Financial Corp.		97		7,596
Umpqua Holdings Corp.		381		7,433
Texas Capital Bancshares, Inc.*		86		7,379
Hancock Holding Co.		147		7,122
Hanover Insurance Group, Inc.		73		7,076
Healthcare Realty Trust, Inc. REIT		214		6,921
Home BancShares, Inc.		273		6,885
CNO Financial Group, Inc.		293		6,839
Cousins Properties, Inc. REIT		727		6,790
United Bankshares, Inc.		182		6,761
Life Storage, Inc. REIT		81		6,627
CoreSite Realty Corp. REIT		59		6,602
Weingarten Realty Investors REIT		207		6,570
MB Financial, Inc.		145		6,528
Rayonier, Inc. REIT		223		6,442
Chemical Financial Corp.		123		6,428
Primerica, Inc.		78		6,361
Associated Banc-Corp.		262		6,354
Stifel Financial Corp.		118		6,308
First Industrial Realty Trust, Inc. REIT		207		6,229
Bank of Hawaii Corp.		74		6,169
Sabra Health Care REIT, Inc. REIT		277		6,077
Legg Mason, Inc.		151		5,936
GEO Group, Inc. REIT		215		5,784
LaSalle Hotel Properties REIT		196		5,688
Fulton Financial Corp.		303		5,681
UMB Financial Corp.		76		5,661
Corporate Office Properties Trust REIT		172		5,647
JBG SMITH Properties REIT*		162		5,542
CoreCivic, Inc. REIT		205		5,488
Cathay General Bancorp		131		5,266
Taubman Centers, Inc. REIT		105		5,219
Washington Federal, Inc.		154		5,182
TCF Financial Corp.		297		5,061
Federated Investors, Inc. — Class B		165		4,901
BancorpSouth, Inc.		147		4,711
Education Realty Trust, Inc. REIT		127		4,563
Kemper Corp.		84		4,452
Urban Edge Properties REIT		183		4,414
Aspen Insurance Holdings Ltd.		104		4,202
Uniti Group, Inc. REIT		285		4,178
Tanger Factory Outlet Centers, Inc. REIT		164		4,005
Trustmark Corp.		117		3,875
International Bancshares Corp.		94		3,769
Alexander & Baldwin, Inc.		80		3,706
Mack-Cali Realty Corp. REIT		155		3,675
Mercury General Corp.		63		3,571
Potlatch Corp. REIT		70		3,570
Genworth Financial, Inc. — Class A*		864		3,326
Washington Prime Group, Inc. REIT		322		2,682
Quality Care Properties, Inc. REIT*		162		2,511
Total Financial				731,883
Industrial - 2.9%
Huntington Ingalls Industries, Inc.		79		17,889
Trimble, Inc.*		438		17,191
Cognex Corp.		150		16,542
IDEX Corp.		132		16,034
Keysight Technologies, Inc.*		321		13,372
Orbital ATK, Inc.1		100		13,316
Old Dominion Freight Line, Inc.		118		12,993
Arrow Electronics, Inc.*		153		12,303
Graco, Inc.1		97		11,998
Lennox International, Inc.		66		11,812
Wabtec Corp.		148		11,211
Hubbell, Inc.		95		11,022
Carlisle Companies, Inc.		109		10,932

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Oshkosh Corp.		130	$	10,730
Donaldson Company, Inc.		227		10,428
Nordson Corp.		88		10,428
Coherent, Inc.*		43		10,112
Zebra Technologies Corp. — Class A*		92		9,989
AECOM*		271		9,975
Lincoln Electric Holdings, Inc.		107		9,809
Gentex Corp.		494		9,781
Teledyne Technologies, Inc.*		61		9,710
AptarGroup, Inc.		109		9,408
Knight-Swift Transportation Holdings, Inc.*		221		9,183
Eagle Materials, Inc.		84		8,963
Jabil, Inc.		310		8,851
Sonoco Products Co.		172		8,678
AGCO Corp.		114		8,410
Avnet, Inc.		213		8,371
Trinity Industries, Inc.		262		8,358
Curtiss-Wright Corp.		76		7,945
Genesee & Wyoming, Inc. — Class A*		106		7,845
National Instruments Corp.		185		7,801
Ryder System, Inc.		92		7,779
Littelfuse, Inc.		39		7,639
Woodward, Inc.		96		7,451
Landstar System, Inc.		73		7,274
Bemis Company, Inc.1		157		7,154
Owens-Illinois, Inc.*		282		7,095
EMCOR Group, Inc.		102		7,076
Crane Co.		88		7,039
Louisiana-Pacific Corp.*		251		6,797
ITT, Inc.		152		6,729
Terex Corp.		147		6,618
SYNNEX Corp.		50		6,326
Valmont Industries, Inc.		39		6,166
Kirby Corp.*		93		6,133
Regal Beloit Corp.		77		6,083
Belden, Inc.		73		5,879
Timken Co.		119		5,777
Kennametal, Inc.		140		5,648
Tech Data Corp.*		60		5,331
EnerSys		75		5,188
Clean Harbors, Inc.*		90		5,103
Energizer Holdings, Inc.		107		4,927
Cree, Inc.*		169		4,764
KLX, Inc.*		89		4,711
MSA Safety, Inc.		59		4,691
Dycom Industries, Inc.*		54		4,638
Vishay Intertechnology, Inc.		232		4,362
KBR, Inc.		242		4,327
Esterline Technologies Corp.*		46		4,147
GATX Corp.		67		4,125
Granite Construction, Inc.		69		3,999
Silgan Holdings, Inc.		128		3,767
Worthington Industries, Inc.		77		3,542
Werner Enterprises, Inc.		78		2,851
Greif, Inc. — Class A		45		2,634
Knowles Corp.*		155		2,367
Total Industrial				557,527
Consumer, Non-cyclical - 2.2%
Teleflex, Inc.		78		18,874
Ingredion, Inc.		124		14,960
ManpowerGroup, Inc.		115		13,549
WellCare Health Plans, Inc.*		77		13,224
STERIS plc		147		12,995
West Pharmaceutical Services, Inc.		128		12,321
ABIOMED, Inc.*		73		12,308
MarketAxess Holdings, Inc.		65		11,993
Lamb Weston Holdings, Inc.		253		11,863
Service Corporation International		324		11,178
Bioverativ, Inc.*		187		10,672
Live Nation Entertainment, Inc.*		232		10,104
Post Holdings, Inc.*		114		10,063
Charles River Laboratories International, Inc.*		82		8,858
United Therapeutics Corp.*		75		8,789
Catalent, Inc.*,1		216		8,623
Hill-Rom Holdings, Inc.		114		8,436
HealthSouth Corp.		171		7,926
Bio-Techne Corp.		65		7,858
Bio-Rad Laboratories, Inc. — Class A*		35		7,778
WEX, Inc.*		69		7,743
Rollins, Inc.		166		7,659
Hain Celestial Group, Inc.*		179		7,366
Brink’s Co.		87		7,330
Edgewell Personal Care Co.*		99		7,204
Masimo Corp.*		83		7,184
MEDNAX, Inc.*		162		6,985
CoreLogic, Inc.*		146		6,748
Acadia Healthcare Company, Inc.*		141		6,734
TreeHouse Foods, Inc.*		99		6,705
Sabre Corp.		361		6,534
Mallinckrodt plc*		168		6,278
Deluxe Corp.		84		6,129
Flowers Foods, Inc.		319		6,000
Sanderson Farms, Inc.		35		5,653
Snyder’s-Lance, Inc.		147		5,607
Akorn, Inc.*		162		5,377
LivaNova plc*		75		5,255
Molina Healthcare, Inc.*		76		5,226
Incorporated Research Holdings, Inc. — Class A*		97		5,073
NuVasive, Inc.*		88		4,880
Avis Budget Group, Inc.*		126		4,796
Aaron’s, Inc.		108		4,712
Graham Holdings Co. — Class B		8		4,681
Prestige Brands Holdings, Inc.*		92		4,608
Helen of Troy Ltd.*		47		4,554
Sprouts Farmers Market, Inc.*		218		4,092
Lancaster Colony Corp.		34		4,084
LifePoint Health, Inc.*		69		3,995
Adtalem Global Education, Inc.		107		3,836

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Globus Medical, Inc. — Class A*		125	$	3,715
United Natural Foods, Inc.*		88		3,660
Halyard Health, Inc.*		81		3,647
Owens & Minor, Inc.		106		3,095
Sotheby’s*		65		2,997
Endo International plc*		348		2,981
Boston Beer Company, Inc. — Class A*		15		2,343
Tenet Healthcare Corp.*		140		2,300
Avon Products, Inc.*		761		1,773
Dean Foods Co.		157		1,708
Tootsie Roll Industries, Inc.		33		1,254
Total Consumer, Non-cyclical				424,873
Consumer, Cyclical - 1.8%
NVR, Inc.*		6		17,130
Domino’s Pizza, Inc.1		84		16,678
Copart, Inc.*		347		11,926
Toro Co.		187		11,606
Toll Brothers, Inc.		263		10,907
Thor Industries, Inc.		85		10,702
Polaris Industries, Inc.1	��	101		10,568
JetBlue Airways Corp.*		569		10,544
Brunswick Corp.		154		8,619
Watsco, Inc.		53		8,537
Six Flags Entertainment Corp.		137		8,350
Dunkin’ Brands Group, Inc.		156		8,280
Carter’s, Inc.		83		8,196
Pool Corp.		71		7,680
Casey’s General Stores, Inc.		66		7,224
Dana, Inc.		250		6,990
Scotts Miracle-Gro Co. — Class A		71		6,911
Williams-Sonoma, Inc.1		138		6,881
Cinemark Holdings, Inc.		183		6,626
Cracker Barrel Old Country Store, Inc.1		42		6,368
MSC Industrial Direct Company, Inc. — Class A		78		5,894
Bed Bath & Beyond, Inc.		249		5,844
Skechers U.S.A., Inc. — Class A*		232		5,821
Texas Roadhouse, Inc. — Class A		113		5,553
Tupperware Brands Corp.		88		5,440
AutoNation, Inc.*,1		113		5,363
Nu Skin Enterprises, Inc. — Class A		86		5,287
Jack in the Box, Inc.		51		5,198
Tempur Sealy International, Inc.*		79		5,097
Wendy’s Co.		316		4,907
ILG, Inc.		183		4,892
CalAtlantic Group, Inc.		132		4,835
Churchill Downs, Inc.		22		4,536
Sally Beauty Holdings, Inc.*		227		4,445
American Eagle Outfitters, Inc.		291		4,161
Big Lots, Inc.		77		4,125
Michaels Companies, Inc.*		191		4,101
Office Depot, Inc.		897		4,072
World Fuel Services Corp.		119		4,035
Dick’s Sporting Goods, Inc.		147		3,970
Deckers Outdoor Corp.*		55		3,763
Herman Miller, Inc.		104		3,733
TRI Pointe Group, Inc.*		262		3,618
GameStop Corp. — Class A		175		3,616
KB Home		144		3,473
Urban Outfitters, Inc.*		141		3,370
Cooper Tire & Rubber Co.		90		3,366
Papa John’s International, Inc.		46		3,361
Cheesecake Factory, Inc.		76		3,201
HNI Corp.		76		3,152
Buffalo Wild Wings, Inc.*		27		2,854
Brinker International, Inc.		85		2,708
HSN, Inc.		55		2,148
Dillard’s, Inc. — Class A		36		2,019
International Speedway Corp. — Class A		43		1,548
Total Consumer, Cyclical				334,229
Technology - 1.7%
Take-Two Interactive Software, Inc.*		184		18,811
MSCI, Inc. — Class A		156		18,236
Broadridge Financial Solutions, Inc.		202		16,326
Leidos Holdings, Inc.		246		14,569
CDK Global, Inc.		228		14,385
Jack Henry & Associates, Inc.		134		13,774
Teradyne, Inc.		342		12,753
IPG Photonics Corp.*		65		12,029
PTC, Inc.*		200		11,256
Tyler Technologies, Inc.*		60		10,459
Microsemi Corp.*		200		10,296
Fortinet, Inc.*		262		9,391
Ultimate Software Group, Inc.*		49		9,290
Cypress Semiconductor Corp.		575		8,637
Brocade Communications Systems, Inc.		716		8,556
Medidata Solutions, Inc.*		101		7,884
NCR Corp.*		210		7,879
Dun & Bradstreet Corp.		64		7,450
Fair Isaac Corp.		53		7,447
Teradata Corp.*		218		7,366
Blackbaud, Inc.		83		7,287
MAXIMUS, Inc.		112		7,224
Monolithic Power Systems, Inc.		66		7,032
j2 Global, Inc.		84		6,206
Integrated Device Technology, Inc.*		231		6,140
Silicon Laboratories, Inc.*		74		5,913
Cirrus Logic, Inc.*		110		5,865
DST Systems, Inc.		105		5,762
Science Applications International Corp.		76		5,081
NetScout Systems, Inc.*		155		5,014
Manhattan Associates, Inc.*		119		4,947
ACI Worldwide, Inc.*		204		4,647
Pitney Bowes, Inc.		323		4,525
Allscripts Healthcare Solutions, Inc.*		313		4,454
CommVault Systems, Inc.*		73		4,438
Convergys Corp.		161		4,168
VeriFone Systems, Inc.*		194		3,934
Acxiom Corp.*		138		3,400
Diebold Nixdorf, Inc.1		131		2,993
3D Systems Corp.*,1		197		2,638

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Synaptics, Inc.*		58	$	2,272
Total Technology				330,734
Utilities - 0.8%
Atmos Energy Corp.		184		15,426
UGI Corp.		300		14,057
OGE Energy Corp.		346		12,467
Westar Energy, Inc.		246		12,202
Great Plains Energy, Inc.		373		11,302
Aqua America, Inc.		307		10,189
Vectren Corp.		144		9,471
MDU Resources Group, Inc.		338		8,771
National Fuel Gas Co.		148		8,378
IDACORP, Inc.		87		7,650
WGL Holdings, Inc.		89		7,494
ONE Gas, Inc.		90		6,628
Black Hills Corp.		93		6,405
Southwest Gas Holdings, Inc.		82		6,365
New Jersey Resources Corp.		150		6,323
Hawaiian Electric Industries, Inc.		188		6,274
PNM Resources, Inc.		138		5,561
NorthWestern Corp.		84		4,783
Total Utilities				159,746
Basic Materials - 0.8%
Chemours Co.		320		16,195
Steel Dynamics, Inc.		415		14,306
RPM International, Inc.		231		11,860
Olin Corp.		288		9,864
Royal Gold, Inc.		113		9,723
Reliance Steel & Aluminum Co.		126		9,597
Valvoline, Inc.		351		8,231
United States Steel Corp.		302		7,749
Versum Materials, Inc.		188		7,298
Ashland Global Holdings, Inc.		108		7,062
NewMarket Corp.		16		6,812
Cabot Corp.		108		6,026
Sensient Technologies Corp.		76		5,846
PolyOne Corp.		142		5,684
Domtar Corp.		108		4,686
Allegheny Technologies, Inc.*,1		188		4,493
Minerals Technologies, Inc.		61		4,310
Carpenter Technology Corp.		81		3,890
Compass Minerals International, Inc.1		59		3,829
Commercial Metals Co.		200		3,806
Total Basic Materials				151,267
Energy - 0.7%
HollyFrontier Corp.		307		11,042
Energen Corp.*		168		9,186
WPX Energy, Inc.*		689		7,924
Patterson-UTI Energy, Inc.		369		7,727
Core Laboratories N.V.		76		7,501
Murphy Oil Corp.		281		7,463
Transocean Ltd.*,1		677		7,285
First Solar, Inc.*		141		6,469
CONSOL Energy, Inc.*		358		6,065
Southwestern Energy Co.*		881		5,383
PBF Energy, Inc. — Class A1		190		5,246
Oceaneering International, Inc.		170		4,466
Matador Resources Co.*		154		4,181
Gulfport Energy Corp.*		285		4,087
Murphy USA, Inc.*		58		4,002
Nabors Industries Ltd.		495		3,995
Callon Petroleum Co.*		346		3,889
QEP Resources, Inc.*		416		3,565
Ensco plc — Class A1		526		3,140
SM Energy Co.		177		3,140
Dril-Quip, Inc.*		65		2,870
Superior Energy Services, Inc.*		265		2,830
NOW, Inc.*		186		2,569
Rowan Companies plc — Class A*		197		2,531
Diamond Offshore Drilling, Inc.*,1		112		1,624
Total Energy				128,180
Communications - 0.5%
FactSet Research Systems, Inc.		68		12,247
LogMeIn, Inc.		91		10,014
ARRIS International plc*		305		8,689
ViaSat, Inc.*		93		5,982
Cable One, Inc.		8		5,777
Ciena Corp.*		245		5,383
AMC Networks, Inc. — Class A*		90		5,262
TEGNA, Inc.		372		4,959
Telephone & Data Systems, Inc.		159		4,435
InterDigital, Inc.		60		4,425
New York Times Co. — Class A		218		4,273
John Wiley & Sons, Inc. — Class A		77		4,120
Meredith Corp.		68		3,774
Cars.com, Inc.*,1		124		3,300
Plantronics, Inc.		58		2,565
Frontier Communications Corp.1		136		1,603
Total Communications				86,808
Total Common Stocks
(Cost $2,438,648)				2,905,247
MUTUAL FUNDS† - 57.2%
Guggenheim Strategy Fund II2		252,521		6,328,172
Guggenheim Strategy Fund I2		179,871		4,516,572
Total Mutual Funds
(Cost $10,790,238)				10,844,744

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 10.6%
Farmer Mac3
1.47% (Fed Funds Effective Rate + 32 bps) due 01/25/184	$	1,000,000	$	1,001,157
Federal Home Loan Bank3
1.00% due 10/26/185		1,000,000		999,022
Total Federal Agency Notes
(Cost $1,999,957)				2,000,179
REPURCHASE AGREEMENTS††,6 - 14.4%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/177		1,362,995		1,362,995
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/177		681,497		681,497
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/177		563,418		563,418
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		106,397		106,397
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		11,159		11,159
Total Repurchase Agreements
(Cost $2,725,466)				2,725,466

	Shares
SECURITIES LENDING COLLATERAL†,8 - 0.5%
First American Government Obligations Fund — Class Z, 0.89%9		88,755		88,755
Total Securities Lending Collateral
(Cost $88,755)				88,755
Total Investments - 98.0%
(Cost $18,043,064)			$	18,564,391
Other Assets & Liabilities, net - 2.0%				383,713
Total Net Assets - 100.0%			$	18,948,104

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P MidCap 400 Index	1.55	%	At Maturity	10/27/17		3,686	$	6,619,621	$	84,865
BNP Paribas	S&P MidCap 400 Index	1.59	%	At Maturity	10/30/17		9,685		17,394,116		61,353
Barclays Bank plc	S&P MidCap 400 Index	1.55	%	At Maturity	10/31/17		902		1,620,556		2,159
								$	25,634,293	$	148,377

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Affiliated issuer.
3	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
4	Variable rate security. Rate indicated is rate effective at September 30, 2017.
5	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
6	Repurchase Agreements — See Note 6.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7 day yield as of September 30, 2017.
	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 | 69

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
MID-CAP 1.5x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	2,905,247	$	—	$	—	$	—	$	2,905,247
Equity Index Swap Agreements		—		—		148,377		—		148,377
Federal Agency Notes		—		2,000,179		—		—		2,000,179
Mutual Funds		10,844,744		—		—		—		10,844,744
Repurchase Agreements		—		2,725,466		—		—		2,725,466
Securities Lending Collateral		88,755		—		—		—		88,755
Total Assets	$	13,838,746	$	4,725,645	$	148,377	$	—	$	18,712,768

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized			Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	8,803,108	$	—	$	(4,299,999	)	$	17,992	$	(4,529	)	$	4,516,572		179,871	$	58,104
Guggenheim Strategy Fund II		10,160,083		—		(3,850,000	)		10,631		7,458			6,328,172		252,521		97,190
	$	18,963,191	$	—	$	(8,149,999	)	$	28,623	$	2,929		$	10,844,744			$	155,294

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $87,067 of securities loaned (cost $4,527,360)	$	4,994,181
Investments in affiliated issuers, at value (cost $10,790,238)	$	10,844,744
Repurchase agreements, at value (cost $2,725,466)		2,725,466
Cash		56
Segregated cash with broker		303,104
Unrealized appreciation on swap agreements		148,377
Receivables:
Fund shares sold		98,361
Dividends		21,427
Securities sold		9,982
Interest		4,741
Securities lending income		59
Total assets		19,150,498
Liabilities:
Payable for:
Return of securities loaned		88,755
Fund shares redeemed		72,598
Securities purchased		17,888
Management fees		13,785
Distribution and service fees		7,119
Transfer agent and administrative fees		3,829
Portfolio accounting fees		1,532
Miscellaneous		(3,112	)
Total liabilities		202,394
Commitments and contingent liabilities (Note 12)		—
Net assets	$	18,948,104
Net assets consist of:
Paid in capital	$	15,511,251
Accumulated net investment loss		(25,359	)
Accumulated net realized gain on investments		2,792,508
Net unrealized appreciation on investments		669,704
Net assets	$	18,948,104
A-Class:
Net assets	$	989,384
Capital shares outstanding		11,600
Net asset value per share	$	85.29
Maximum offering price per share (Net asset value divided by 95.25%)	$	89.54
C-Class:
Net assets	$	5,538,689
Capital shares outstanding		73,964
Net asset value per share	$	74.88
H-Class:
Net assets	$	12,420,031
Capital shares outstanding		145,022
Net asset value per share	$	85.64

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $16)	$	26,546
Dividends from securities of affiliated issuers		155,294
Interest		24,309
Income from securities lending, net		313
Total investment income		206,462
Expenses:
Management fees		109,555
Distribution and service fees:
A-Class		1,898
C-Class		33,601
H-Class		20,134
Transfer agent and administrative fees		30,432
Registration fees		20,894
Portfolio accounting fees		12,173
Trustees’ fees*		3,052
Custodian fees		1,917
Line of credit fees		210
Miscellaneous		(2,045	)
Total expenses		231,821
Net investment loss		(25,359	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(31,959	)
Investments in affiliated issuers		28,623
Swap agreements		1,537,947
Futures contracts		58,899
Net realized gain		1,593,510
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		154,660
Investments in affiliated issuers		2,929
Swap agreements		(361,039	)
Futures contracts		(8,303	)
Net change in unrealized appreciation (depreciation)		(211,753	)
Net realized and unrealized gain		1,381,757
Net increase in net assets resulting from operations	$	1,356,398

* 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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(25,359	)	$	(340,190	)
Net realized gain on investments		1,593,510			11,668,465
Net change in unrealized appreciation (depreciation) on investments		(211,753	)		(851,968	)
Net increase in net assets resulting from operations		1,356,398			10,476,307
Distributions to shareholders from:
Net realized gains
A-Class		—			(5,668	)
C-Class		—			(15,978	)
H-Class		—			(693,678	)
Total distributions to shareholders		—			(715,324	)
Capital share transactions:
Proceeds from sale of shares
A-Class		976,810			59,054,189
C-Class		89,070			2,596,544
H-Class		41,004,396			992,509,796
Distributions reinvested
A-Class		—			3,889
C-Class		—			15,931
H-Class		—			252,871
Cost of shares redeemed
A-Class		(1,996,946	)		(58,826,949	)
C-Class		(2,640,291	)		(1,331,076	)
H-Class		(49,566,978	)		(994,594,368	)
Net decrease from capital share transactions		(12,133,939	)		(319,173	)
Net increase (decrease) in net assets		(10,777,541	)		9,441,810
Net assets:
Beginning of period		29,725,645			20,283,835
End of period	$	18,948,104		$	29,725,645
Accumulated net investment loss at end of period	$	(25,359	)	$	—
Capital share activity:
Shares sold
A-Class		12,017			822,566
C-Class		1,265			43,403
H-Class		504,405			13,926,583
Shares issued from reinvestment of distributions
A-Class		—			53
C-Class		—			245
H-Class		—			3,418
Shares redeemed
A-Class		(24,638	)		(828,877	)
C-Class		(36,930	)		(21,601	)
H-Class		(609,539	)		(13,899,912	)
Net increase (decrease) in shares		(153,420	)		45,878

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	79.90		$	61.64		$	67.32		$	58.48		$	45.07		$	36.23
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(.09	)		(.47	)		(.41	)		(.35	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		5.39			18.50			(4.81	)		9.45			13.76			9.00
Total from investment operations		5.39			18.41			(5.28	)		9.04			13.41			8.84
Less distributions from:
Net realized gains		—			(.15	)		(.40	)		(.20	)		—			—
Total distributions		—			(.15	)		(.40	)		(.20	)		—			—
Net asset value, end of period	$	85.29		$	79.90		$	61.64		$	67.32		$	58.48		$	45.07
Total Returnd		6.75	%		29.88	%		(7.86	%)		15.50	%		29.75	%		24.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	989		$	1,935		$	1,879		$	5,330		$	2,632		$	2,199
Ratios to average net assets:
Net investment income (loss)		—			(0.13	%)		(0.75	%)		(0.66	%)		(0.68	%)		(0.43	%)
Total expensese		1.70	%		1.68	%		1.65	%		1.64	%		1.67	%		1.66	%
Portfolio turnover rate		21	%		1,216	%		1,506	%		598	%		563	%		447	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	70.42		$	54.73		$	60.27		$	52.77		$	40.97		$	33.18
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.65	)		(.78	)		(.76	)		(.64	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		4.73			16.49			(4.36	)		8.46			12.44			8.20
Total from investment operations		4.46			15.84			(5.14	)		7.70			11.80			7.79
Less distributions from:
Net realized gains		—			(.15	)		(.40	)		(.20	)		—			—
Total distributions		—			(.15	)		(.40	)		(.20	)		—			—
Net asset value, end of period	$	74.88		$	70.42		$	54.73		$	60.27		$	52.77		$	40.97
Total Returnd		6.35	%		28.94	%		(8.55	%)		14.63	%		28.80	%		23.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,539		$	7,720		$	4,794		$	4,615		$	4,549		$	5,107
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(1.05	%)		(1.41	%)		(1.39	%)		(1.40	%)		(1.23	%)
Total expensese		2.45	%		2.42	%		2.40	%		2.40	%		2.42	%		2.40	%
Portfolio turnover rate		21	%		1,216	%		1,506	%		598	%		563	%		447	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	80.23		$	61.85		$	67.45		$	58.56		$	45.13		$	36.27
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(.37	)		(.57	)		(.29	)		(.34	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		5.41			18.90			(4.63	)		9.38			13.77			9.01
Total from investment operations		5.41			18.53			(5.20	)		9.09			13.43			8.86
Less distributions from:
Net realized gains		—			(.15	)		(.40	)		(.20	)		—			—
Total distributions		—			(.15	)		(.40	)		(.20	)		—			—
Net asset value, end of period	$	85.64		$	80.23		$	61.85		$	67.45		$	58.56		$	45.13
Total Returnd		6.74	%		29.97	%		(7.73	%)		15.56	%		29.76	%		24.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,420		$	20,071		$	13,611		$	16,433		$	19,413		$	57,067
Ratios to average net assets:
Net investment income (loss)		—			(0.50	%)		(0.93	%)		(0.47	%)		(0.66	%)		(0.41	%)
Total expensese		1.70	%		1.68	%		1.66	%		1.66	%		1.68	%		1.67	%
Portfolio turnover rate		21	%		1,216	%		1,506	%		598	%		563	%		447	%

a	Unaudited figures for the period ended September 30, 2017. 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 is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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	4.6%
Guggenheim Strategy Fund II	4.6%
Total	9.2%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	(5.10%)	(15.54%)	(15.01%)	(13.24%)
A-Class Shares with sales charge‡	(9.60%)	(19.56%)	(15.84%)	(13.66%)
C-Class Shares	(5.52%)	(16.23%)	(15.67%)	(13.91%)
C-Class Shares with CDSC§	(6.47%)	(17.07%)	(15.67%)	(13.91%)
H-Class Shares	(5.10%)	(15.55%)	(15.00%)	(13.24%)
S&P MidCap 400 Index	5.26%	17.52%	14.43%	9.00%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 75

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 9.2%
Guggenheim Strategy Fund I1		5,440	$	136,598
Guggenheim Strategy Fund II1		5,446		136,467
Total Mutual Funds
(Cost $270,358)				273,065

	Face Amount
REPURCHASE AGREEMENTS††,2 - 80.3%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/173	$	1,184,085	1,184,085
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/173		592,042	592,042

RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/173	298,189		298,189
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	265,549		265,549
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	27,850		27,850
Total Repurchase Agreements
(Cost $2,367,715)			2,367,715
Total Investments - 89.5%
(Cost $2,638,073)		$	2,640,780
Other Assets & Liabilities, net - 10.5%			308,949
Total Net Assets - 100.0%		$	2,949,729

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Equity Futures Contracts Sold Short†
S&P MidCap 400 Index Mini Futures Contracts		11	Dec 2017	$	1,974,500	$	(1,490	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Received		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Loss
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	S&P MidCap 400 Index	1.40	%	At Maturity	10/31/17		26	$	46,089	$	(63	)
BNP Paribas	S&P MidCap 400 Index	1.09	%	At Maturity	10/30/17		242		434,125		(914	)
Goldman Sachs International	S&P MidCap 400 Index	1.25	%	At Maturity	10/27/17		280		503,656		(6,465	)
								$	983,870	$	(7,442	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE MID-CAP STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	273,065	$	—	$	—	$	—	$	—	$	273,065
Repurchase Agreements		—		—		2,367,715		—		—		2,367,715
Total Assets	$	273,065	$	—	$	2,367,715	$	—	$	—	$	2,640,780
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts	$	—	$	1,490	$	—	$	—	$	—	$	1,490
Equity Index Swap Agreements		—		—		—		7,442		—		7,442
Total Liabilities	$	—	$	1,490	$	—	$	7,442	$	—	$	8,932

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	136,272	$	—	$	—	$	—	$	326	$	136,598		5,440	$	1,221
Guggenheim Strategy Fund II		136,140		—		—		—		327		136,467		5,446		1,534
	$	272,412	$	—	$	—	$	—	$	653	$	273,065			$	2,755

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in affiliated issuers, at value (cost $270,358)	$	273,065
Repurchase agreements, at value (cost $2,367,715)		2,367,715
Segregated cash with broker		316,000
Receivables:
Fund shares sold		5,085
Dividends		463
Interest		131
Total assets		2,962,459
Liabilities:
Unrealized depreciation on swap agreements		7,442
Payable for:
Fund shares redeemed		2,895
Variation margin		1,100
Management fees		592
Distribution and service fees		170
Transfer agent and administrative fees		164
Portfolio accounting fees		66
Miscellaneous		301
Total liabilities		12,730
Commitments and contingent liabilities (Note 12)		—
Net assets	$	2,949,729
Net assets consist of:
Paid in capital	$	15,502,053
Accumulated net investment loss		(5,166	)
Accumulated net realized loss on investments		(12,540,933	)
Net unrealized depreciation on investments		(6,225	)
Net assets	$	2,949,729
A-Class:
Net assets	$	74,541
Capital shares outstanding		3,153
Net asset value per share	$	23.64
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.82
C-Class:
Net assets	$	2,000
Capital shares outstanding		94
Net asset value per share	$	21.21
H-Class:
Net assets	$	2,873,188
Capital shares outstanding		121,611
Net asset value per share	$	23.63

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	2,755
Interest		742
Total investment income		3,497
Expenses:
Management fees		3,120
Distribution and service fees:
A-Class		137
C-Class		137
H-Class		695
Transfer agent and administrative fees		867
Registration fees		409
Portfolio accounting fees		347
Custodian fees		47
Trustees’ fees*		41
Miscellaneous		183
Total expenses		5,983
Net investment loss		(2,486	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(38,800	)
Futures contracts		(180	)
Net realized loss		(38,980	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		653
Swap agreements		(2,426	)
Futures contracts		(1,490	)
Net change in unrealized appreciation (depreciation)		(3,263	)
Net realized and unrealized loss		(42,243	)
Net decrease in net assets resulting from operations	$	(44,729	)

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

78 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(2,486	)	$	(21,588	)
Net realized loss on investments		(38,980	)		(507,421	)
Net change in unrealized appreciation (depreciation) on investments		(3,263	)		57,862
Net decrease in net assets resulting from operations		(44,729	)		(471,147	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,031,843			1,671,153
C-Class		12,884			106,446
H-Class		3,282,425			22,574,011
Cost of shares redeemed
A-Class		(1,173,257	)		(1,524,458	)
C-Class		(46,109	)		(288,863	)
H-Class		(982,129	)		(24,262,478	)
Net increase (decrease) from capital share transactions		2,125,657			(1,724,189	)
Net increase (decrease) in net assets		2,080,928			(2,195,336	)
Net assets:
Beginning of period		868,801			3,064,137
End of period	$	2,949,729		$	868,801
Accumulated net investment loss at end of period	$	(5,166	)	$	(2,680	)
Capital share activity:
Shares sold
A-Class		41,582			64,427
C-Class		566			4,126
H-Class		137,179			826,452
Shares redeemed
A-Class		(47,516	)		(58,952	)
C-Class		(2,096	)		(12,294	)
H-Class		(39,898	)		(889,460	)
Net increase (decrease) in shares		89,817			(65,701	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	24.92		$	30.70		$	30.76		$	35.55		$	44.64		$	54.64
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.28	)		(.38	)		(.48	)		(.64	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		(1.19	)		(5.50	)		.32			(4.31	)		(8.45	)		(9.16	)
Total from investment operations		(1.28	)		(5.78	)		(.06	)		(4.79	)		(9.09	)		(10.00	)
Net asset value, end of period	$	23.64		$	24.92		$	30.70		$	30.76		$	35.55		$	44.64
Total Returnc		(5.10	%)		(18.89	%)		(0.16	%)		(13.47	%)		(20.36	%)		(18.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	75		$	226		$	111		$	47		$	93		$	26
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(1.02	%)		(1.18	%)		(1.40	%)		(1.65	%)		(1.52	%)
Total expensesd		1.70	%		1.68	%		1.65	%		1.66	%		1.67	%		1.64	%
Portfolio turnover rate		—			120	%		199	%		38	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	22.46		$	27.89		$	28.16		$	32.78		$	41.49		$	51.18
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.48	)		(.59	)		(.67	)		(.90	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(1.09	)		(4.95	)		.32			(3.95	)		(7.81	)		(8.55	)
Total from investment operations		(1.25	)		(5.43	)		(.27	)		(4.62	)		(8.71	)		(9.69	)
Net asset value, end of period	$	21.21		$	22.46		$	27.89		$	28.16		$	32.78		$	41.49
Total Returnc		(5.52	%)		(19.51	%)		(0.96	%)		(14.09	%)		(20.99	%)		(18.93	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2		$	36		$	273		$	89		$	131		$	216
Ratios to average net assets:
Net investment income (loss)		(1.45	%)		(1.85	%)		(2.00	%)		(2.13	%)		(2.40	%)		(2.29	%)
Total expensesd		2.45	%		2.42	%		2.41	%		2.41	%		2.42	%		2.40	%
Portfolio turnover rate		—			120	%		199	%		38	%		—			—

80 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	24.90		$	30.69		$	30.70		$	35.49		$	44.59		$	54.57
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.31	)		(.42	)		(.47	)		(.66	)		(.81	)
Net gain (loss) on investments (realized and unrealized)		(1.19	)		(5.48	)		.41			(4.32	)		(8.44	)		(9.17	)
Total from investment operations		(1.27	)		(5.79	)		(.01	)		(4.79	)		(9.10	)		(9.98	)
Net asset value, end of period	$	23.63		$	24.90		$	30.69		$	30.70		$	35.49		$	44.59
Total Returnc		(5.10	%)		(18.87	%)		(0.07	%)		(13.47	%)		(20.39	%)		(18.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,873		$	606		$	2,680		$	3,015		$	3,825		$	1,409
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(1.10	%)		(1.32	%)		(1.38	%)		(1.65	%)		(1.53	%)
Total expensesd		1.70	%		1.67	%		1.65	%		1.65	%		1.67	%		1.65	%
Portfolio turnover rate		—			120	%		199	%		38	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 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 | 81

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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 II	18.0%
Guggenheim Strategy Fund I	15.1%
Kite Pharma, Inc.	0.1%
Bluebird Bio, Inc.	0.1%
Exact Sciences Corp.	0.1%
Knight-Swift Transportation Holdings, Inc.	0.1%
MKS Instruments, Inc.	0.1%
Catalent, Inc.	0.1%
Aspen Technology, Inc.	0.1%
MGIC Investment Corp.	0.1%
Top Ten Total	33.9%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	11.56%	29.57%	18.05%	7.28%
A-Class Shares with sales charge‡	6.26%	23.42%	16.91%	6.76%
C-Class Shares	11.13%	28.59%	17.17%	6.46%
C-Class Shares with CDSC§	10.13%	27.59%	17.17%	6.46%
H-Class Shares	11.53%	29.40%	18.04%	7.26%
Russell 2000 Index	8.27%	20.74%	17.08%	9.90%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

82 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 24.3%
Financial - 6.2%
MGIC Investment Corp.*		458	$	5,738
Starwood Waypoint Homes REIT		156		5,673
Gramercy Property Trust REIT		187		5,656
Umpqua Holdings Corp.		274		5,345
Wintrust Financial Corp.		68		5,324
Texas Capital Bancshares, Inc.*		61		5,233
IBERIABANK Corp.		63		5,174
Hancock Holding Co.		104		5,038
Radian Group, Inc.		269		5,027
CNO Financial Group, Inc.		211		4,924
Home BancShares, Inc.		194		4,899
Healthcare Realty Trust, Inc. REIT		150		4,850
Cousins Properties, Inc. REIT		518		4,837
Primerica, Inc.		57		4,647
RLJ Lodging Trust REIT		210		4,609
United Bankshares, Inc.		124		4,607
MB Financial, Inc.		101		4,547
Chemical Financial Corp.		87		4,547
Sunstone Hotel Investors, Inc. REIT		273		4,386
Stifel Financial Corp.		82		4,384
Investors Bancorp, Inc.		321		4,377
First Industrial Realty Trust, Inc. REIT		144		4,332
Sabra Health Care REIT, Inc. REIT		196		4,299
UMB Financial Corp.		56		4,171
LaSalle Hotel Properties REIT		142		4,120
GEO Group, Inc. REIT		152		4,088
Sterling Bancorp		163		4,017
Essent Group Ltd.*		99		4,010
Fulton Financial Corp.		211		3,956
Valley National Bancorp		320		3,856
Evercore, Inc. — Class A		48		3,852
Selective Insurance Group, Inc.		71		3,823
Physicians Realty Trust REIT		214		3,794
National Health Investors, Inc. REIT		49		3,787
Cathay General Bancorp		93		3,739
Washington Federal, Inc.		111		3,734
EastGroup Properties, Inc. REIT		42		3,701
Glacier Bancorp, Inc.		95		3,587
First Financial Bankshares, Inc.		78		3,526
Ellie Mae, Inc.*		42		3,449
BancorpSouth, Inc.		107		3,429
Ryman Hospitality Properties, Inc. REIT		54		3,374
First Citizens BancShares, Inc. — Class A		9		3,365
PS Business Parks, Inc. REIT		25		3,338
Community Bank System, Inc.		60		3,315
Education Realty Trust, Inc. REIT		92		3,306
South State Corp.		35		3,152
CVB Financial Corp.		129		3,118
Enstar Group Ltd.*		14		3,113
Washington Real Estate Investment Trust REIT		95		3,112
American Equity Investment Life Holding Co.		107		3,112
Old National Bancorp		166		3,038
QTS Realty Trust, Inc. — Class A REIT		58		3,037
Pebblebrook Hotel Trust REIT1		84		3,036
Columbia Banking System, Inc.		72		3,032
STAG Industrial, Inc. REIT		110		3,022
Great Western Bancorp, Inc.		73		3,013
Acadia Realty Trust REIT		105		3,005
WageWorks, Inc.*		49		2,974
First Midwest Bancorp, Inc.		126		2,951
Blackhawk Network Holdings, Inc.*		67		2,935
Urban Edge Properties REIT		121		2,919
Hope Bancorp, Inc.		161		2,851
Xenia Hotels & Resorts, Inc. REIT		134		2,821
Lexington Realty Trust REIT		269		2,749
Trustmark Corp.		83		2,749
DiamondRock Hospitality Co. REIT		248		2,716
RLI Corp.		47		2,696
Alexander & Baldwin, Inc.		58		2,688
International Bancshares Corp.		67		2,687
Mack-Cali Realty Corp. REIT		112		2,656
Eagle Bancorp, Inc.*		39		2,615
Kemper Corp.		49		2,597
Banner Corp.		42		2,574
Potlatch Corp. REIT		50		2,550
Retail Opportunity Investments Corp. REIT		133		2,528
United Community Banks, Inc.		88		2,512
Financial Engines, Inc.		72		2,502
Astoria Financial Corp.		115		2,472
Independent Bank Corp.		33		2,463
Rexford Industrial Realty, Inc. REIT		86		2,461
Bank of NT Butterfield & Son Ltd.		67		2,455
Hilltop Holdings, Inc.		93		2,418
LendingClub Corp.*		394		2,399
Genworth Financial, Inc. — Class A*		623		2,399
Invesco Mortgage Capital, Inc. REIT		139		2,381
LegacyTexas Financial Group, Inc.		59		2,355
Capitol Federal Financial, Inc.		159		2,336
Apollo Commercial Real Estate Finance, Inc. REIT		129		2,336
TowneBank		69		2,312
Renasant Corp.		53		2,274
LTC Properties, Inc. REIT		48		2,255
ServisFirst Bancshares, Inc.		58		2,253
Argo Group International Holdings Ltd.		36		2,214
Simmons First National Corp. — Class A		38		2,200
First Merchants Corp.		51		2,189
Government Properties Income Trust REIT		116		2,177
Terreno Realty Corp. REIT		60		2,171
Ameris Bancorp		45		2,160
BofI Holding, Inc.*,1		75		2,135
WesBanco, Inc.		52		2,133
Kite Realty Group Trust REIT		103		2,086
FCB Financial Holdings, Inc. — Class A*		43		2,077
Northwest Bancshares, Inc.		118		2,038
Provident Financial Services, Inc.		76		2,027
Summit Hotel Properties, Inc. REIT		126		2,015
Waddell & Reed Financial, Inc. — Class A		100		2,007

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Horace Mann Educators Corp.		51	$	2,007
American Assets Trust, Inc. REIT		50		1,989
First Financial Bancorp		76		1,987
Chesapeake Lodging Trust REIT		73		1,969
NBT Bancorp, Inc.		53		1,946
Washington Prime Group, Inc. REIT		232		1,933
Kennedy-Wilson Holdings, Inc.		103		1,911
Union Bankshares Corp.		54		1,906
Berkshire Hills Bancorp, Inc.		49		1,899
Four Corners Property Trust, Inc. REIT		75		1,869
WSFS Financial Corp.		38		1,853
Westamerica Bancorporation		31		1,846
Select Income REIT REIT		78		1,827
Artisan Partners Asset Management, Inc. — Class A		56		1,826
Employers Holdings, Inc.		40		1,818
Quality Care Properties, Inc. REIT*		117		1,814
Pacific Premier Bancorp, Inc.*		48		1,812
CenterState Bank Corp.		67		1,796
Global Net Lease, Inc. REIT		82		1,795
HFF, Inc. — Class A		45		1,780
Walker & Dunlop, Inc.*		34		1,779
CBL & Associates Properties, Inc. REIT1		208		1,745
Park National Corp.		16		1,728
Boston Private Financial Holdings, Inc.		103		1,705
CareTrust REIT, Inc. REIT		89		1,695
First Commonwealth Financial Corp.		119		1,681
Agree Realty Corp. REIT		34		1,669
S&T Bancorp, Inc.		42		1,662
Moelis & Co. — Class A		38		1,636
PRA Group, Inc.*		57		1,633
Kearny Financial Corp.		106		1,627
CYS Investments, Inc. REIT		188		1,624
Tompkins Financial Corp.		18		1,551
Redwood Trust, Inc. REIT		95		1,548
Heartland Financial USA, Inc.		31		1,531
Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		62		1,511
Third Point Reinsurance Ltd.*		95		1,482
Capital Bank Financial Corp. — Class A		36		1,478
First Busey Corp.		47		1,474
Lakeland Financial Corp.		30		1,462
Navigators Group, Inc.		25		1,459
WisdomTree Investments, Inc.1		143		1,456
Brookline Bancorp, Inc.		93		1,442
Seritage Growth Properties REIT1		31		1,428
Beneficial Bancorp, Inc.		86		1,428
PennyMac Mortgage Investment Trust REIT		82		1,426
AmTrust Financial Services, Inc.		105		1,413
RE/MAX Holdings, Inc. — Class A		22		1,398
Monmouth Real Estate Investment Corp. REIT		86		1,392
Franklin Street Properties Corp. REIT		130		1,381
Safety Insurance Group, Inc.		18		1,373
OM Asset Management plc		92		1,373
City Holding Co.		19		1,366
MBIA, Inc.*		156		1,357
ARMOUR Residential REIT, Inc. REIT		50		1,345
AMERISAFE, Inc.		23		1,339
FNFV Group*		78		1,338
National Storage Affiliates Trust REIT		55		1,333
Encore Capital Group, Inc.*		30		1,329
Independent Bank Group, Inc.		22		1,327
State Bank Financial Corp.		46		1,318
Aircastle Ltd.		59		1,315
Southside Bancshares, Inc.		35		1,273
Alexander’s, Inc. REIT		3		1,272
Ramco-Gershenson Properties Trust REIT		97		1,262
Sandy Spring Bancorp, Inc.		30		1,243
United Fire Group, Inc.		27		1,237
Infinity Property & Casualty Corp.		13		1,225
First Interstate BancSystem, Inc. — Class A		32		1,224
Nelnet, Inc. — Class A		24		1,212
Universal Health Realty Income Trust REIT		16		1,208
Hanmi Financial Corp.		39		1,207
First BanCorp*		235		1,203
Ladder Capital Corp. — Class A REIT		87		1,199
Parkway, Inc. REIT		52		1,198
BancFirst Corp.		21		1,192
Central Pacific Financial Corp.		37		1,191
Enterprise Financial Services Corp.		28		1,186
InfraREIT, Inc. REIT		53		1,186
Seacoast Banking Corporation of Florida*		49		1,171
Tier REIT, Inc. REIT		60		1,158
National General Holdings Corp.		60		1,147
Lakeland Bancorp, Inc.		56		1,142
Customers Bancorp, Inc.*		35		1,142
Capstead Mortgage Corp. REIT		118		1,139
United Financial Bancorp, Inc.		62		1,134
Banc of California, Inc.1		54		1,121
James River Group Holdings Ltd.		27		1,120
St. Joe Co.*		59		1,112
National Bank Holdings Corp. — Class A		31		1,106
MTGE Investment Corp. REIT		57		1,106
Meridian Bancorp, Inc.		59		1,100
Houlihan Lokey, Inc.		28		1,096
MainSource Financial Group, Inc.		30		1,076
OceanFirst Financial Corp.		39		1,072
Piper Jaffray Cos.		18		1,068
First Bancorp1		31		1,067
Cohen & Steers, Inc.		27		1,066
Heritage Financial Corp.		36		1,062
TriCo Bancshares		26		1,060
Univest Corporation of Pennsylvania		33		1,056
National Western Life Group, Inc. — Class A		3		1,047
Flushing Financial Corp.		35		1,040
Washington Trust Bancorp, Inc.		18		1,031
Stock Yards Bancorp, Inc.		27		1,026
1st Source Corp.		20		1,016
iStar, Inc. REIT*		86		1,015
TrustCo Bank Corp. NY		114		1,015

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Chatham Lodging Trust REIT		47	$	1,002
German American Bancorp, Inc.		26		989
Ambac Financial Group, Inc.*		57		984
Stewart Information Services Corp.		26		982
Getty Realty Corp. REIT		34		973
FBL Financial Group, Inc. — Class A		13		969
Preferred Bank/Los Angeles CA		16		966
Flagstar Bancorp, Inc.*		27		958
Easterly Government Properties, Inc. REIT		46		951
New Senior Investment Group, Inc. REIT		102		933
Community Trust Bancorp, Inc.		20		930
Investment Technology Group, Inc.		42		930
Virtus Investment Partners, Inc.		8		928
CoBiz Financial, Inc.		47		923
Universal Insurance Holdings, Inc.		40		920
Bryn Mawr Bank Corp.		21		920
Northfield Bancorp, Inc.		53		920
Investors Real Estate Trust REIT		150		917
ConnectOne Bancorp, Inc.		37		910
PHH Corp.*		65		905
Hersha Hospitality Trust REIT		48		896
First of Long Island Corp.		29		883
Pennsylvania Real Estate Investment Trust REIT		84		881
NMI Holdings, Inc. — Class A*		71		880
Independence Realty Trust, Inc. REIT		86		875
Camden National Corp.		20		873
Saul Centers, Inc. REIT		14		867
Meta Financial Group, Inc.		11		862
NorthStar Realty Europe Corp. REIT		67		858
Diamond Hill Investment Group, Inc.		4		849
New York Mortgage Trust, Inc. REIT		138		849
PJT Partners, Inc. — Class A		22		843
Dime Community Bancshares, Inc.		39		839
Cass Information Systems, Inc.		13		825
Forestar Group, Inc.*		52		825
Oritani Financial Corp.		49		823
CU Bancorp*		21		814
HomeStreet, Inc.*		30		810
Guaranty Bancorp		29		806
First Potomac Realty Trust REIT		72		802
Greenlight Capital Re Ltd. — Class A*		37		801
Federal Agricultural Mortgage Corp. — Class C		11		800
Park Sterling Corp.		64		795
Horizon Bancorp		27		788
Urstadt Biddle Properties, Inc. — Class A REIT		36		781
Bridge Bancorp, Inc.		23		781
Kinsale Capital Group, Inc.		18		777
Armada Hoffler Properties, Inc. REIT		55		760
State National Companies, Inc.		36		756
Trupanion, Inc.*		28		739
International. FCStone, Inc.*		19		728
Pacific Continental Corp.		27		728
Great Southern Bancorp, Inc.		13		723
Peapack Gladstone Financial Corp.		21		709
Maiden Holdings Ltd.		89		708
Peoples Bancorp, Inc.		21		705
Anworth Mortgage Asset Corp. REIT		117		703
Preferred Apartment Communities, Inc. — Class A REIT		37		699
Mercantile Bank Corp.		20		698
Gladstone Commercial Corp. REIT		31		690
Nicolet Bankshares, Inc.*		12		690
Altisource Residential Corp. REIT		62		689
QCR Holdings, Inc.		15		683
Westwood Holdings Group, Inc.		10		673
Nationstar Mortgage Holdings, Inc.*		36		669
World Acceptance Corp.*		8		663
AG Mortgage Investment Trust, Inc. REIT		34		654
Carolina Financial Corp.		18		646
Heritage Commerce Corp.		45		640
Green Bancorp, Inc.*		27		639
Fidelity Southern Corp.		27		638
Ashford Hospitality Trust, Inc. REIT		95		634
First Defiance Financial Corp.		12		630
First Foundation, Inc.*		35		626
First Financial Corp.		13		619
TriState Capital Holdings, Inc.*		27		618
Triumph Bancorp, Inc.*		19		613
First Community Bancshares, Inc.		21		611
Southwest Bancorp, Inc.		22		606
Waterstone Financial, Inc.		31		605
FB Financial Corp.*		16		604
Midland States Bancorp, Inc.		19		602
Opus Bank*		25		600
CatchMark Timber Trust, Inc. — Class A REIT		47		593
Whitestone REIT — Class B REIT		45		587
Live Oak Bancshares, Inc.		25		586
Cedar Realty Trust, Inc. REIT		103		579
United Community Financial Corp.		60		576
Cowen, Inc. — Class A*		32		570
Independent Bank Corp.		25		566
Community Healthcare Trust, Inc. REIT		21		566
Bar Harbor Bankshares		18		564
Greenhill & Company, Inc.		34		564
Blue Hills Bancorp, Inc.		29		557
National Commerce Corp.*		13		556
Republic First Bancorp, Inc.*		60		555
People’s Utah Bancorp		17		552
Enova International, Inc.*		41		551
Marcus & Millichap, Inc.*		20		540
HomeTrust Bancshares, Inc.*		21		539
CorEnergy Infrastructure Trust, Inc. REIT		15		530
UMH Properties, Inc. REIT		34		529
Bank Mutual Corp.		52		528
State Auto Financial Corp.		20		525
Western Asset Mortgage Capital Corp. REIT		50		524
NexPoint Residential Trust, Inc. REIT		22		522
Access National Corp.		18		516

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Allegiance Bancshares, Inc.*		14	$	515
Bancorp, Inc.*		61		504
Virtu Financial, Inc. — Class A1		31		502
Franklin Financial Network, Inc.*		14		499
City Office REIT, Inc. REIT		36		496
Arrow Financial Corp.		14		495
CNB Financial Corp.		18		492
Financial Institutions, Inc.		17		490
Veritex Holdings, Inc.*		18		485
OFG Bancorp		53		485
Old Second Bancorp, Inc.		36		484
Bank of Marin Bancorp		7		480
MidWestOne Financial Group, Inc.		14		473
Atlantic Capital Bancshares, Inc.*		26		472
Republic Bancorp, Inc. — Class A		12		467
Farmers National Banc Corp.		31		467
West Bancorporation, Inc.		19		464
Equity Bancshares, Inc. — Class A*		13		463
RMR Group, Inc. — Class A		9		462
First Mid-Illinois Bancshares, Inc.		12		461
R1 RCM, Inc.*		124		460
NewStar Financial, Inc.		39		458
Hamilton Lane, Inc. — Class A		17		456
First Connecticut Bancorp, Inc.		17		455
eHealth, Inc.*		19		454
Ocwen Financial Corp.*		131		451
Southern National Bancorp of Virginia, Inc.		26		442
Ares Commercial Real Estate Corp. REIT		33		439
One Liberty Properties, Inc. REIT		18		438
Enterprise Bancorp, Inc.		12		436
Fidelity & Guaranty Life		14		435
Sierra Bancorp		16		434
Peoples Financial Services Corp.		9		430
WashingtonFirst Bankshares, Inc.		12		427
Global Indemnity Ltd*		10		424
MedEquities Realty Trust, Inc. REIT		36		423
Heritage Insurance Holdings, Inc.1		32		423
Citizens, Inc.*,1		57		419
Clifton Bancorp, Inc.		25		418
Orchid Island Capital, Inc. REIT		41		418
PCSB Financial Corp.*		22		415
Dynex Capital, Inc. REIT		57		414
American National Bankshares, Inc.		10		412
Resource Capital Corp. REIT		37		399
First Bancorp, Inc.		13		394
HCI Group, Inc.		10		383
Hingham Institution for Savings		2		381
Farmers Capital Bank Corp.		9		378
Western New England Bancorp, Inc.		34		371
Farmers & Merchants Bancorp Incorporated/Archbold OH		10		365
Ladenburg Thalmann Financial Services, Inc.		126		363
Altisource Portfolio Solutions S.A.*,1		14		362
FRP Holdings, Inc.*		8		362
Farmland Partners, Inc. REIT		40		362
National Bankshares, Inc.		8		360
Investors Title Co.		2		358
Arlington Asset Investment Corp. — Class A		28		356
Citizens & Northern Corp.		14		344
United Insurance Holdings Corp.		21		342
PennyMac Financial Services, Inc. — Class A*		19		338
Capital City Bank Group, Inc.		14		336
Safeguard Scientifics, Inc.*		25		334
Summit Financial Group, Inc.		13		334
First Bancshares, Inc.		11		332
Sutherland Asset Management Corp. REIT		21		330
Ames National Corp.		11		328
Macatawa Bank Corp.		32		328
Redfin Corp.*		13		326
Sun Bancorp, Inc.		13		323
Century Bancorp, Inc. — Class A		4		320
Marlin Business Services Corp.		11		316
Regional Management Corp.*		13		315
Northrim BanCorp, Inc.		9		315
Ashford Hospitality Prime, Inc. REIT		33		314
Bluerock Residential Growth REIT, Inc. REIT		28		310
EMC Insurance Group, Inc.		11		310
MutualFirst Financial, Inc.		8		308
Codorus Valley Bancorp, Inc.		10		307
HarborOne Bancorp, Inc.*		16		301
Consolidated-Tomoka Land Co.		5		300
BSB Bancorp, Inc.*		10		300
Home Bancorp, Inc.		7		293
Southern Missouri Bancorp, Inc.		8		292
Southern First Bancshares, Inc.*		8		291
Central Valley Community Bancorp		13		290
GAIN Capital Holdings, Inc.		45		288
BankFinancial Corp.		18		286
Territorial Bancorp, Inc.		9		284
Paragon Commercial Corp.*		5		282
On Deck Capital, Inc.*		60		280
Old Line Bancshares, Inc.		10		280
Penns Woods Bancorp, Inc.		6		279
Charter Financial Corp.		15		278
TPG RE Finance Trust, Inc. REIT		14		277
KKR Real Estate Finance Trust, Inc.1		13		274
Cherry Hill Mortgage Investment Corp. REIT		15		272
Civista Bancshares, Inc.		12		268
Great Ajax Corp. REIT		19		268
Shore Bancshares, Inc.		16		266
Premier Financial Bancorp, Inc.		12		261
Evans Bancorp, Inc.		6		259
Bankwell Financial Group, Inc.		7		259
First Internet Bancorp		8		258
Bear State Financial, Inc.		25		257
Cadence BanCorp*		11		252
Timberland Bancorp, Inc.		8		251

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Community Bankers Trust Corp.*		27	$	248
Baldwin & Lyons, Inc. — Class B		11		248
Jernigan Capital, Inc. REIT		12		247
Atlas Financial Holdings, Inc.*		13		246
Safety Income and Growth, Inc. REIT		13		242
Union Bankshares, Inc.		5		242
Investar Holding Corp.		10		241
MBT Financial Corp.		22		241
FNB Bancorp		7		237
Northeast Bancorp		9		235
Federated National Holding Co.		15		234
NI Holdings, Inc.*		13		233
LCNB Corp.		11		230
Bank of Commerce Holdings		20		230
Howard Bancorp, Inc.*		11		230
Norwood Financial Corp.		8		229
Pzena Investment Management, Inc. — Class A		21		229
First Business Financial Services, Inc.		10		228
Independence Holding Co.		9		227
WMIH Corp.*		239		227
Granite Point Mortgage Trust, Inc. REIT		12		225
Orrstown Financial Services, Inc.		9		224
First Northwest Bancorp*		13		222
C&F Financial Corp.		4		220
Owens Realty Mortgage, Inc. REIT		12		219
SmartFinancial, Inc.*		9		217
Capstar Financial Holdings, Inc.*		11		215
Associated Capital Group, Inc. — Class A		6		214
Malvern Bancorp, Inc.*		8		214
Peoples Bancorp of North Carolina, Inc.		6		214
Stratus Properties, Inc.		7		212
Riverview Bancorp, Inc.		25		210
SI Financial Group, Inc.		14		209
Sunshine Bancorp, Inc.*		9		209
Commerce Union Bancshares, Inc.		9		209
Oppenheimer Holdings, Inc. — Class A		12		208
Health Insurance Innovations, Inc. — Class A*		14		203
Entegra Financial Corp.*		8		200
Hallmark Financial Services, Inc.*		17		197
Xenith Bankshares, Inc.*		6		195
ACNB Corp.		7		194
Clipper Realty, Inc. REIT		18		193
Chemung Financial Corp.		4		188
Tiptree, Inc. — Class A		30		188
Prudential Bancorp, Inc.		10		185
Middlefield Banc Corp.		4		184
Ohio Valley Banc Corp.		5		182
ASB Bancorp, Inc.*		4		180
County Bancorp, Inc.		6		180
Crawford & Co. — Class B		15		179
Kingstone Companies, Inc.		11		179
GAMCO Investors, Inc. — Class A		6		179
Two River Bancorp		9		178
Unity Bancorp, Inc.		9		178
Donegal Group, Inc. — Class A		11		177
Community Financial Corp.		5		177
Pacific Mercantile Bancorp*		19		174
ESSA Bancorp, Inc.		11		173
Byline Bancorp, Inc.*		8		170
First Financial Northwest, Inc.		10		170
Impac Mortgage Holdings, Inc.*		13		170
BCB Bancorp, Inc.		12		167
Global Medical REIT, Inc.		18		162
Provident Financial Holdings, Inc.		8		157
Parke Bancorp, Inc.		7		155
Trinity Place Holdings, Inc.*		22		154
United Security Bancshares		16		152
Ellington Residential Mortgage REIT REIT		10		145
DNB Financial Corp.		4		141
First Guaranty Bancshares, Inc.		5		135
MidSouth Bancorp, Inc.		11		133
Silvercrest Asset Management Group, Inc. — Class A		9		131
Old Point Financial Corp.		4		130
Greene County Bancorp, Inc.		4		120
Provident Bancorp, Inc.*		5		116
Blue Capital Reinsurance Holdings Ltd.		7		115
Maui Land & Pineapple Company, Inc.*		8		112
Elevate Credit, Inc.*		18		110
Guaranty Bancshares, Inc.		3		96
RAIT Financial Trust REIT		113		82
Transcontinental Realty Investors, Inc.*		3		82
Oconee Federal Financial Corp.		2		56
California First National Bancorp		3		54
Medley Management, Inc. — Class A		7		43
Griffin Industrial Realty, Inc.		1		36
Fifth Street Asset Management, Inc.		9		35
Total Financial				640,027
Consumer, Non-cyclical - 5.3%
Kite Pharma, Inc.*		60		10,788
Bluebird Bio, Inc.*		55		7,553
Exact Sciences Corp.*		144		6,784
Catalent, Inc.*,1		155		6,187
HealthSouth Corp.		120		5,561
PAREXEL International Corp.*		62		5,460
Grand Canyon Education, Inc.*		58		5,267
Healthcare Services Group, Inc.		89		4,802
Brink’s Co.		57		4,802
Masimo Corp.*		55		4,760
PRA Health Sciences, Inc.*		60		4,569
Nektar Therapeutics*		184		4,415
Clovis Oncology, Inc.*		53		4,367
FibroGen, Inc.*		81		4,357
Deluxe Corp.		59		4,305
LivaNova plc*		60		4,204
Puma Biotechnology, Inc.*		35		4,190
Cantel Medical Corp.		44		4,143
Snyder’s-Lance, Inc.		107		4,082
Sanderson Farms, Inc.		25		4,038
Insulet Corp.*		72		3,966

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Chemed Corp.		19	$	3,839
Integra LifeSciences Holdings Corp.*		76		3,836
Molina Healthcare, Inc.*		54		3,713
Portola Pharmaceuticals, Inc.*		67		3,620
Neogen Corp.*		46		3,563
Avis Budget Group, Inc.*		93		3,540
Darling Ingredients, Inc.*		202		3,539
Incorporated Research Holdings, Inc. — Class A*		67		3,504
Aaron’s, Inc.		79		3,447
NuVasive, Inc.*		62		3,439
Ligand Pharmaceuticals, Inc. — Class B*		25		3,403
On Assignment, Inc.*		63		3,382
Wright Medical Group N.V.*		130		3,363
ICU Medical, Inc.*		18		3,345
Blueprint Medicines Corp.*		48		3,344
Helen of Troy Ltd.*		34		3,295
Sarepta Therapeutics, Inc.*		72		3,266
Prestige Brands Holdings, Inc.*		65		3,256
Penumbra, Inc.*		36		3,251
Nevro Corp.*		35		3,181
Medicines Co.*		85		3,148
HealthEquity, Inc.*		62		3,136
Amicus Therapeutics, Inc.*		202		3,046
Prothena Corporation plc*		47		3,044
Cimpress N.V.*		31		3,027
Spark Therapeutics, Inc.*		33		2,942
Performance Food Group Co.*		104		2,938
Haemonetics Corp.*		65		2,917
Avexis, Inc.*		30		2,902
Lancaster Colony Corp.		24		2,883
ABM Industries, Inc.		69		2,878
Myriad Genetics, Inc.*		79		2,858
Insmed, Inc.*		91		2,840
Green Dot Corp. — Class A*		56		2,776
Adtalem Global Education, Inc.		77		2,760
Advisory Board Co.*		50		2,681
AMN Healthcare Services, Inc.*		58		2,651
Ironwood Pharmaceuticals, Inc. — Class A*		167		2,634
United Natural Foods, Inc.*		63		2,620
Array BioPharma, Inc.*		213		2,620
Sage Therapeutics, Inc.*		42		2,617
Globus Medical, Inc. — Class A*		88		2,615
Magellan Health, Inc.*		30		2,589
B&G Foods, Inc.1		81		2,580
Loxo Oncology, Inc.*		28		2,579
Halyard Health, Inc.*		57		2,567
Ultragenyx Pharmaceutical, Inc.*		48		2,556
Select Medical Holdings Corp.*		133		2,554
Horizon Pharma plc*		201		2,549
Merit Medical Systems, Inc.*		60		2,541
Halozyme Therapeutics, Inc.*		146		2,536
J&J Snack Foods Corp.		19		2,495
Korn/Ferry International		63		2,484
Vector Group Ltd.		121		2,471
Matthews International Corp. — Class A		39		2,428
Travelport Worldwide Ltd.		154		2,418
Supernus Pharmaceuticals, Inc.*		59		2,360
Monro, Inc.1		40		2,242
Teladoc, Inc.*,1		67		2,221
Sotheby’s*		48		2,213
NxStage Medical, Inc.*		80		2,208
Cambrex Corp.*		40		2,200
Owens & Minor, Inc.		75		2,190
Corcept Therapeutics, Inc.*		113		2,181
NutriSystem, Inc.		37		2,068
HMS Holdings Corp.*		104		2,065
Insperity, Inc.		23		2,024
Inogen, Inc.*		21		1,997
Integer Holdings Corp.*		39		1,995
Amedisys, Inc.*		35		1,959
LendingTree, Inc.*,1		8		1,956
Aerie Pharmaceuticals, Inc.*		40		1,944
WD-40 Co.		17		1,902
Fresh Del Monte Produce, Inc.		41		1,864
Bob Evans Farms, Inc.		24		1,860
Impax Laboratories, Inc.*		91		1,847
Pacira Pharmaceuticals, Inc.*		49		1,840
Tivity Health, Inc.*		45		1,836
FTI Consulting, Inc.*		51		1,809
CONMED Corp.1		34		1,784
Universal Corp.		31		1,776
Radius Health, Inc.*,1		46		1,773
Repligen Corp.*		46		1,763
Immunomedics, Inc.*		126		1,761
Theravance Biopharma, Inc.*		51		1,746
National Beverage Corp.		14		1,737
Boston Beer Company, Inc. — Class A*		11		1,718
TriNet Group, Inc.*		51		1,715
Momenta Pharmaceuticals, Inc.*		91		1,684
Tenet Healthcare Corp.*		101		1,659
Emergent BioSolutions, Inc.*		41		1,658
Central Garden & Pet Co. — Class A*		44		1,636
Cal-Maine Foods, Inc.*		39		1,603
ACCO Brands Corp.*		134		1,595
Dynavax Technologies Corp.*		74		1,591
Paylocity Holding Corp.*		32		1,562
Varex Imaging Corp.*		46		1,557
OraSure Technologies, Inc.*		69		1,553
MiMedx Group, Inc.*		129		1,533
Viad Corp.		25		1,523
Sangamo Therapeutics, Inc.*		101		1,515
Natus Medical, Inc.*		40		1,500
Hertz Global Holdings, Inc.*,1		67		1,498
Acceleron Pharma, Inc.*		40		1,493
Quidel Corp.*		34		1,491
Weight Watchers International, Inc.*		34		1,481
Herc Holdings, Inc.*		30		1,474
Calavo Growers, Inc.		20		1,464
Novocure Ltd.*,1		72		1,429
Global Blood Therapeutics, Inc.*		46		1,428

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
LHC Group, Inc.*		20	$	1,418
Five Prime Therapeutics, Inc.*		34		1,391
Spectrum Pharmaceuticals, Inc.*		97		1,365
Hostess Brands, Inc.*		99		1,352
Atrion Corp.		2		1,344
Ensign Group, Inc.		59		1,333
Innoviva, Inc.*		94		1,327
McGrath RentCorp		30		1,313
Cardtronics plc — Class A*		57		1,312
Dermira, Inc.*		48		1,296
Coca-Cola Bottling Company Consolidated		6		1,295
Acorda Therapeutics, Inc.*		54		1,277
Analogic Corp.		15		1,256
Dean Foods Co.		113		1,229
Arena Pharmaceuticals, Inc.*		48		1,224
Diplomat Pharmacy, Inc.*		59		1,222
SpartanNash Co.		46		1,213
Abaxis, Inc.		27		1,206
EVERTEC, Inc.		75		1,189
Glaukos Corp.*		36		1,188
ICF International, Inc.*		22		1,187
Retrophin, Inc.*		47		1,170
TrueBlue, Inc.*		52		1,167
BioTelemetry, Inc.*		35		1,155
Strayer Education, Inc.		13		1,135
Andersons, Inc.		33		1,130
Alarm.com Holdings, Inc.*		25		1,130
REGENXBIO, Inc.*		34		1,120
Omeros Corp.*		51		1,103
Xencor, Inc.*		48		1,100
Cardiovascular Systems, Inc.*		39		1,098
Zogenix, Inc.*		31		1,087
PharMerica Corp.*		37		1,084
Akebia Therapeutics, Inc.*		55		1,082
Aimmune Therapeutics, Inc.*		43		1,066
K2M Group Holdings, Inc.*		50		1,061
Esperion Therapeutics, Inc.*		21		1,053
Anika Therapeutics, Inc.*		18		1,044
Orthofix International N.V.*		22		1,040
Luminex Corp.		51		1,037
Editas Medicine, Inc.*		43		1,032
Intersect ENT, Inc.*		33		1,028
CBIZ, Inc.*		63		1,024
SUPERVALU, Inc.*		47		1,022
TherapeuticsMD, Inc.*,1		192		1,016
ZIOPHARM Oncology, Inc.*		161		989
Capella Education Co.		14		982
Navigant Consulting, Inc.*		58		981
PTC Therapeutics, Inc.*		49		980
Epizyme, Inc.*		51		972
MGP Ingredients, Inc.		16		970
Vanda Pharmaceuticals, Inc.*		54		967
Alder Biopharmaceuticals, Inc.*		77		943
MyoKardia, Inc.*		22		943
Kelly Services, Inc. — Class A		37		928
Huron Consulting Group, Inc.*		27		926
US Physical Therapy, Inc.		15		922
Heron Therapeutics, Inc.*		57		921
CryoLife, Inc.*		40		908
Community Health Systems, Inc.*		118		906
RR Donnelley & Sons Co.		87		896
Enanta Pharmaceuticals, Inc.*		19		889
iRhythm Technologies, Inc.*		17		882
Quad/Graphics, Inc.		39		882
National Healthcare Corp.		14		876
Career Education Corp.*		84		873
AtriCure, Inc.*		39		872
SP Plus Corp.*		22		869
Inter Parfums, Inc.		21		866
Almost Family, Inc.*		16		859
Phibro Animal Health Corp. — Class A		23		852
Flexion Therapeutics, Inc.*		35		846
Synergy Pharmaceuticals, Inc.*		281		815
USANA Health Sciences, Inc.*		14		808
Landauer, Inc.		12		808
Tootsie Roll Industries, Inc.		21		798
ImmunoGen, Inc.*		104		796
AMAG Pharmaceuticals, Inc.*		43		793
Amphastar Pharmaceuticals, Inc.*		44		786
Medifast, Inc.		13		772
Genomic Health, Inc.*		24		770
AngioDynamics, Inc.*		45		769
NeoGenomics, Inc.*		69		768
K12, Inc.*		43		767
Ignyta, Inc.*		62		766
La Jolla Pharmaceutical Co.*		22		765
MacroGenics, Inc.*		41		758
Providence Service Corp.*		14		757
Revance Therapeutics, Inc.*		27		744
RPX Corp.*		56		744
Accelerate Diagnostics, Inc.*		33		741
John B Sanfilippo & Son, Inc.		11		740
Cytokinetics, Inc.*		51		740
Meridian Bioscience, Inc.		51		729
Paratek Pharmaceuticals, Inc.*		29		728
Foundation Medicine, Inc.*,1		18		724
Keryx Biopharmaceuticals, Inc.*,1		101		717
SciClone Pharmaceuticals, Inc.*		64		717
Kindred Healthcare, Inc.		105		714
Heska Corp.*		8		705
Cutera, Inc.*		17		703
TG Therapeutics, Inc.*		59		699
Triple-S Management Corp. — Class B*		29		687
LSC Communications, Inc.		41		677
LeMaitre Vascular, Inc.		18		674
PDL BioPharma, Inc.*		197		668
Pacific Biosciences of California, Inc.*		127		667
Eagle Pharmaceuticals, Inc.*,1		11		656
Achillion Pharmaceuticals, Inc.*		146		656
CytomX Therapeutics, Inc.*		36		654
CorVel Corp.*		12		653
Lexicon Pharmaceuticals, Inc.*,1		53		651

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Intra-Cellular Therapies, Inc.*		41	$	647
Lannett Company, Inc.*,1		35		646
Aclaris Therapeutics, Inc.*		25		645
Coherus Biosciences, Inc.*		48		641
Progenics Pharmaceuticals, Inc.*		87		640
Laureate Education, Inc. — Class A*		44		640
AxoGen, Inc.*		33		639
STAAR Surgical Co.*		51		635
Invacare Corp.		40		630
Cross Country Healthcare, Inc.*		43		612
Ennis, Inc.		31		609
Rent-A-Center, Inc.1		53		608
Everi Holdings, Inc.*		79		600
Calithera Biosciences, Inc.*		38		599
Assembly Biosciences, Inc.*		17		594
Lantheus Holdings, Inc.*		33		587
e.l.f. Beauty, Inc.*,1		26		586
Kforce, Inc.		29		586
MoneyGram International, Inc.*		36		580
CAI International, Inc.*		19		576
Achaogen, Inc.*		36		574
Antares Pharma, Inc.*		177		573
Textainer Group Holdings Ltd.*		33		566
Aduro Biotech, Inc.*		51		543
Enzo Biochem, Inc.*		51		534
Audentes Therapeutics, Inc.*		19		532
Inovio Pharmaceuticals, Inc.*		83		526
ANI Pharmaceuticals, Inc.*		10		525
AnaptysBio, Inc.*		15		524
Weis Markets, Inc.		12		522
GenMark Diagnostics, Inc.*		54		520
RadNet, Inc.*		45		520
BioCryst Pharmaceuticals, Inc.*		99		519
Atara Biotherapeutics, Inc.*		31		513
Abeona Therapeutics, Inc.*		30		512
Iovance Biotherapeutics, Inc.*		66		512
Barrett Business Services, Inc.		9		509
Rockwell Medical, Inc.*		59		505
Central Garden & Pet Co.*		13		505
Forrester Research, Inc.		12		502
Resources Connection, Inc.		36		500
Akcea Therapeutics, Inc.*		18		498
Surmodics, Inc.*		16		496
Natera, Inc.*		38		490
Heidrick & Struggles International, Inc.		23		486
Carriage Services, Inc. — Class A		19		486
Team, Inc.*		36		481
Oxford Immunotec Global plc*		28		470
Emerald Expositions Events, Inc.		20		465
Chefs’ Warehouse, Inc.*		24		463
Ingles Markets, Inc. — Class A		18		463
Karyopharm Therapeutics, Inc.*		42		461
Endologix, Inc.*		102		455
National Research Corp. — Class A		12		452
Cara Therapeutics, Inc.*,1		33		452
Invitae Corp.*		48		450
Omega Protein Corp.		27		450
Biohaven Pharmaceutical Holding Company Ltd.*		12		449
Intellia Therapeutics, Inc.*		18		447
B. Riley Financial, Inc.		26		443
Hackett Group, Inc.		29		441
Vectrus, Inc.*		14		432
Exactech, Inc.*,1		13		428
Celldex Therapeutics, Inc.*		149		426
Seres Therapeutics, Inc.*		26		417
CRA International, Inc.		10		411
Depomed, Inc.*		70		405
Agenus, Inc.*		91		401
Geron Corp.*		184		401
Accuray, Inc.*		100		400
American Public Education, Inc.*		19		400
Novavax, Inc.*		349		398
BioScrip, Inc.*		144		396
Corbus Pharmaceuticals Holdings, Inc.*		55		393
Bellicum Pharmaceuticals, Inc.*		34		393
Capital Senior Living Corp.*		31		389
Rigel Pharmaceuticals, Inc.*		153		389
Adamas Pharmaceuticals, Inc.*,1		18		381
Tejon Ranch Co.*		18		380
Voyager Therapeutics, Inc.*		18		371
Civitas Solutions, Inc.*		20		369
Primo Water Corp.*		31		367
Farmer Brothers Co.*		11		361
NanoString Technologies, Inc.*		22		356
Sucampo Pharmaceuticals, Inc. — Class A*,1		30		354
Cerus Corp.*		128		349
Limoneira Co.		15		348
CSS Industries, Inc.		12		346
Revlon, Inc. — Class A*		14		344
Teligent, Inc.*		51		342
Reata Pharmaceuticals, Inc. — Class A*		11		342
Tactile Systems Technology, Inc.*,1		11		340
Great Lakes Dredge & Dock Corp.*		70		340
Cadiz, Inc.*		26		330
SEACOR Marine Holdings, Inc.*		21		328
WaVe Life Sciences Ltd.*		15		326
BioSpecifics Technologies Corp.*		7		326
ServiceSource International, Inc.*		94		325
Concert Pharmaceuticals, Inc.*		22		325
Addus HomeCare Corp.*		9		318
Tetraphase Pharmaceuticals, Inc.*		46		315
Stemline Therapeutics, Inc.*		28		311
Seneca Foods Corp. — Class A*		9		311
Aratana Therapeutics, Inc.*		50		307
RTI Surgical, Inc.*		67		305
Chimerix, Inc.*		57		299
Durect Corp.*		169		299
Idera Pharmaceuticals, Inc.*		133		297
Utah Medical Products, Inc.		4		294
Collegium Pharmaceutical, Inc.*		28		294

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Willdan Group, Inc.*		9	$	292
Amplify Snack Brands, Inc.*,1		41		291
Medpace Holdings, Inc.*		9		287
Acacia Research Corp.*		62		282
Craft Brew Alliance, Inc.*		16		281
Jounce Therapeutics, Inc.*,1		18		280
Sientra, Inc.*		18		277
Entellus Medical, Inc.*		15		277
Neff Corp. — Class A*		11		275
NewLink Genetics Corp.*		27		275
Organovo Holdings, Inc.*		122		271
Kura Oncology, Inc.*		18		269
Edge Therapeutics, Inc.*		25		268
Insys Therapeutics, Inc.*		30		266
Corium International, Inc.*		24		266
BioTime, Inc.*		93		264
Veracyte, Inc.*		30		263
Athersys, Inc.*		126		260
Selecta Biosciences, Inc.*		14		256
MediciNova, Inc.*		40		255
Axovant Sciences Ltd.*		37		255
Care.com, Inc.*		16		254
G1 Therapeutics, Inc.*		10		249
Pieris Pharmaceuticals, Inc.*		43		248
Village Super Market, Inc. — Class A		10		247
Calyxt, Inc.*		10		245
FONAR Corp.*		8		244
Franklin Covey Co.*		12		244
Surgery Partners, Inc.*		23		238
Minerva Neurosciences, Inc.*		31		236
Ardelyx, Inc.*		42		235
Merrimack Pharmaceuticals, Inc.		16		230
Kala Pharmaceuticals, Inc.*		10		228
Madrigal Pharmaceuticals, Inc.*		5		225
Catalyst Pharmaceuticals, Inc.*		89		224
Pulse Biosciences, Inc.*		12		223
ChemoCentryx, Inc.*		30		223
Syros Pharmaceuticals, Inc.*		15		221
Bridgepoint Education, Inc.*		23		221
Smart & Final Stores, Inc.*		28		220
Neos Therapeutics, Inc.*		24		220
Clearside Biomedical, Inc.*		25		219
Immune Design Corp.*		21		217
Collectors Universe, Inc.		9		216
Natural Health Trends Corp.		9		215
Curis, Inc.*		144		215
Protagonist Therapeutics, Inc.*		12		212
ViewRay, Inc.*		36		207
Ra Pharmaceuticals, Inc.*		14		204
Kindred Biosciences, Inc.*		26		204
NantKwest, Inc.*		37		203
ARC Document Solutions, Inc.*		49		200
Cempra, Inc.*		59		192
Advaxis, Inc.*		45		188
Anavex Life Sciences Corp.*		45		186
Strongbridge Biopharma plc*		27		186
Fate Therapeutics, Inc.*		47		186
Ascent Capital Group, Inc. — Class A*		14		183
Fortress Biotech, Inc.*		41		181
American Renal Associates Holdings, Inc.*		12		180
Corvus Pharmaceuticals, Inc.*		11		175
Ocular Therapeutix, Inc.*		28		173
ConforMIS, Inc.*		49		172
Cascadian Therapeutics, Inc.*		42		172
Trevena, Inc.*		67		171
Conatus Pharmaceuticals, Inc.*		31		170
Quotient Ltd.*		34		168
Information Services Group, Inc.*		40		161
Athenex, Inc.*		9		158
Recro Pharma, Inc.*		17		153
BG Staffing, Inc.		9		149
Dova Pharmaceuticals, Inc.*		6		146
AAC Holdings, Inc.*		14		139
Miragen Therapeutics, Inc.*		15		137
Alico, Inc.		4		137
Nymox Pharmaceutical Corp.*		35		134
Novelion Therapeutics, Inc.*		19		134
Sienna Biopharmaceuticals, Inc.*		6		134
Nature’s Sunshine Products, Inc.		13		132
Syndax Pharmaceuticals, Inc.*		11		129
Tocagen, Inc.*		10		125
Zynerba Pharmaceuticals, Inc.*		14		117
Liberty Tax, Inc.		8		115
Otonomy, Inc.*		35		114
Cambium Learning Group, Inc.*		17		113
Asterias Biotherapeutics, Inc.*		33		112
XBiotech, Inc.*		25		109
Obalon Therapeutics, Inc.*		11		105
VBI Vaccines, Inc.*		27		104
Pendrell Corp.*		15		102
Turning Point Brands, Inc.*		6		102
Versartis, Inc.*		40		98
Viveve Medical, Inc.*		18		94
Matinas BioPharma Holdings, Inc.*		65		86
Natural Grocers by Vitamin Cottage, Inc.*		12		67
vTv Therapeutics, Inc. — Class A*		9		54
Lifeway Foods, Inc.*		6		53
Genesis Healthcare, Inc.*		46		53
Genocea Biosciences, Inc.*		36		53
Ovid therapeutics, Inc.*		6		51
CPI Card Group, Inc.		26		31
Oncocyte Corp.*		4		30
Total Consumer, Non-cyclical				548,216
Industrial - 3.5%
Knight-Swift Transportation Holdings, Inc.*		155		6,431
Curtiss-Wright Corp.		54		5,645
Littelfuse, Inc.		28		5,484
Woodward, Inc.		66		5,122
EMCOR Group, Inc.		73		5,064
Louisiana-Pacific Corp.*		180		4,875
SYNNEX Corp.		36		4,554

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Barnes Group, Inc.		62	$	4,368
Summit Materials, Inc. — Class A*		133		4,260
Belden, Inc.		51		4,107
Kennametal, Inc.		99		3,994
Advanced Energy Industries, Inc.*		49		3,957
John Bean Technologies Corp.		39		3,944
Tech Data Corp.*		43		3,821
MasTec, Inc.*		82		3,805
EnerSys		54		3,735
Trinseo S.A.		55		3,691
RBC Bearings, Inc.*		28		3,503
Generac Holdings, Inc.*		75		3,445
Cree, Inc.*		121		3,411
KLX, Inc.*		64		3,388
Sanmina Corp.*		91		3,381
Moog, Inc. — Class A*		40		3,337
Tetra Tech, Inc.		71		3,304
Rexnord Corp.*		129		3,277
Dycom Industries, Inc.*		38		3,263
MSA Safety, Inc.		41		3,260
Itron, Inc.*		42		3,253
Trex Company, Inc.*		36		3,243
KBR, Inc.		178		3,183
Vishay Intertechnology, Inc.		167		3,140
Applied Industrial Technologies, Inc.		47		3,092
II-VI, Inc.*		75		3,086
Hillenbrand, Inc.		78		3,030
GATX Corp.		49		3,017
Aerojet Rocketdyne Holdings, Inc.*		86		3,011
TopBuild Corp.*		46		2,998
Rogers Corp.*		22		2,932
Esterline Technologies Corp.*		32		2,885
Granite Construction, Inc.		49		2,840
Golar LNG Ltd.		118		2,668
Masonite International Corp.*		37		2,560
Franklin Electric Company, Inc.		57		2,556
Simpson Manufacturing Company, Inc.		52		2,550
Worthington Industries, Inc.		55		2,530
Proto Labs, Inc.*		31		2,489
Universal Forest Products, Inc.		25		2,454
Mueller Industries, Inc.		70		2,447
Mueller Water Products, Inc. — Class A		189		2,419
JELD-WEN Holding, Inc.*		67		2,380
Exponent, Inc.		32		2,365
Watts Water Technologies, Inc. — Class A		34		2,353
KapStone Paper and Packaging Corp.		108		2,321
Plexus Corp.*		41		2,299
Brady Corp. — Class A		58		2,201
Builders FirstSource, Inc.*		120		2,159
Werner Enterprises, Inc.		59		2,156
Covanta Holding Corp.		145		2,153
Forward Air Corp.		37		2,118
Benchmark Electronics, Inc.*		62		2,117
EnPro Industries, Inc.		26		2,094
Chicago Bridge & Iron Company N.V.1		124		2,083
Harsco Corp.*		99		2,069
Albany International Corp. — Class A		36		2,065
OSI Systems, Inc.*		22		2,010
SPX FLOW, Inc.*		51		1,967
Saia, Inc.*		31		1,942
Atlas Air Worldwide Holdings, Inc.*		29		1,908
Kaman Corp.		34		1,897
Actuant Corp. — Class A		74		1,894
Greif, Inc. — Class A		32		1,873
Methode Electronics, Inc.		44		1,863
ESCO Technologies, Inc.		31		1,858
Triumph Group, Inc.		60		1,785
TTM Technologies, Inc.*		115		1,768
Patrick Industries, Inc.*		21		1,766
AAON, Inc.		51		1,758
Air Transport Services Group, Inc.*		72		1,752
Novanta, Inc.*		40		1,744
Altra Industrial Motion Corp.		36		1,732
Hub Group, Inc. — Class A*		40		1,718
Standex International Corp.		16		1,699
Apogee Enterprises, Inc.		35		1,689
Boise Cascade Co.*		48		1,675
Badger Meter, Inc.		34		1,666
Knowles Corp.*		109		1,664
Greenbrier Companies, Inc.		34		1,637
Fabrinet*		44		1,631
AZZ, Inc.		33		1,607
Comfort Systems USA, Inc.		45		1,607
Cubic Corp.		31		1,581
Sun Hydraulics Corp.		29		1,566
Federal Signal Corp.		73		1,553
Chart Industries, Inc.*		39		1,530
US Concrete, Inc.*,1		20		1,526
SPX Corp.*		52		1,526
Astec Industries, Inc.		27		1,512
TriMas Corp.*		56		1,512
Fitbit, Inc. — Class A*		216		1,503
Matson, Inc.		53		1,494
Applied Optoelectronics, Inc.*,1		23		1,487
Heartland Express, Inc.		59		1,480
Axon Enterprise, Inc.*,1		65		1,474
AAR Corp.		39		1,473
Raven Industries, Inc.		45		1,458
Tennant Co.		22		1,456
US Ecology, Inc.		27		1,453
GoPro, Inc. — Class A*		131		1,442
Manitowoc Company, Inc.*		158		1,422
Primoris Services Corp.		48		1,412
Multi-Color Corp.		17		1,393
Aerovironment, Inc.*		25		1,353
Advanced Disposal Services, Inc.*		53		1,335
Tutor Perini Corp.*		46		1,306
Alamo Group, Inc.		12		1,288
Kadant, Inc.		13		1,281
Argan, Inc.		19		1,278
Continental Building Products, Inc.*		48		1,248
Gibraltar Industries, Inc.*		40		1,246

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
KEMET Corp.*		57	$	1,204
Lydall, Inc.*		21		1,203
Briggs & Stratton Corp.		51		1,199
Lindsay Corp.		13		1,195
Encore Wire Corp.		26		1,164
Kratos Defense & Security Solutions, Inc.*		89		1,164
Sturm Ruger & Company, Inc.		22		1,137
General Cable Corp.		60		1,131
Milacron Holdings Corp.*		66		1,113
CIRCOR International, Inc.		20		1,089
Ship Finance International Ltd.1		75		1,088
ArcBest Corp.		32		1,070
American Outdoor Brands Corp.*		69		1,052
AVX Corp.		57		1,039
Schneider National, Inc. — Class B		40		1,012
Marten Transport Ltd.		49		1,007
Chase Corp.		9		1,003
Hyster-Yale Materials Handling, Inc.		13		994
Quanex Building Products Corp.		43		987
NN, Inc.		34		986
CTS Corp.		40		964
Aegion Corp. — Class A*		41		954
Casella Waste Systems, Inc. — Class A*		49		921
Global Brass & Copper Holdings, Inc.		27		913
PGT Innovations, Inc.*		61		912
Columbus McKinnon Corp.		24		909
Scorpio Tankers, Inc.		259		888
Control4 Corp.*		30		884
GasLog Ltd.		50		873
Advanced Drainage Systems, Inc.		43		871
Caesarstone Ltd.*		28		834
TimkenSteel Corp.*		49		809
Astronics Corp.*		27		803
Atkore International Group, Inc.*		41		800
Griffon Corp.		36		799
FARO Technologies, Inc.*		20		765
NCI Building Systems, Inc.*		49		764
Gorman-Rupp Co.		22		717
Kimball Electronics, Inc.*		33		714
International Seaways, Inc.*		36		709
Stoneridge, Inc.*		34		674
Nordic American Tankers Ltd.		124		662
Echo Global Logistics, Inc.*		34		641
National Presto Industries, Inc.		6		639
VSE Corp.		11		625
Insteel Industries, Inc.		23		601
DXP Enterprises, Inc.*		19		598
Teekay Corp.		67		598
Mesa Laboratories, Inc.		4		597
Ichor Holdings Ltd.*		22		590
Myers Industries, Inc.		28		587
MYR Group, Inc.*		20		583
YRC Worldwide, Inc.*		42		580
Tredegar Corp.		32		576
Haynes International, Inc.		16		575
Frontline Ltd.		95		574
NV5 Global, Inc.*		10		547
Electro Scientific Industries, Inc.*		39		543
SunPower Corp. — Class A*,1		74		539
ZAGG, Inc.*		34		536
Scorpio Bulkers, Inc.*		73		515
Park-Ohio Holdings Corp.		11		502
Vicor Corp.*		21		496
Sterling Construction Company, Inc.*		32		487
NVE Corp.		6		474
GP Strategies Corp.*		15		463
Ply Gem Holdings, Inc.*		27		460
Armstrong Flooring, Inc.*		29		457
Greif, Inc. — Class B		7		450
Park Electrochemical Corp.		24		444
Covenant Transportation Group, Inc. — Class A*		15		435
Mistras Group, Inc.*		21		431
Ducommun, Inc.*		13		417
Heritage-Crystal Clean, Inc.*		18		392
DHT Holdings, Inc.		96		382
Bel Fuse, Inc. — Class B		12		374
Energy Recovery, Inc.*		45		356
Roadrunner Transportation Systems, Inc.*		37		353
Hudson Technologies, Inc.*		45		351
American Railcar Industries, Inc.		9		347
Hurco Companies, Inc.		8		333
Powell Industries, Inc.		11		330
Daseke, Inc.*		25		326
CECO Environmental Corp.		37		313
FreightCar America, Inc.		15		293
Vishay Precision Group, Inc.*		12		293
Energous Corp.*		23		291
Omega Flex, Inc.		4		287
Advanced Emissions Solutions, Inc.		26		285
Ardmore Shipping Corp.*		34		281
Sparton Corp.*		12		279
Costamare, Inc.		45		278
Layne Christensen Co.*		22		276
Olympic Steel, Inc.		12		264
Gener8 Maritime, Inc.*		58		262
LB Foster Co. — Class A*		11		250
Graham Corp.		12		250
Teekay Tankers Ltd. — Class A		151		245
Radiant Logistics, Inc.*		46		244
MicroVision, Inc.*		84		234
Hardinge, Inc.		15		229
Northwest Pipe Co.*		12		228
UFP Technologies, Inc.*		8		225
Orion Group Holdings, Inc.*		34		223
Eagle Bulk Shipping, Inc.*		48		217
LSB Industries, Inc.*		27		214
Universal Logistics Holdings, Inc.		10		205
Intevac, Inc.*		24		203
Allied Motion Technologies, Inc.		8		203
Lawson Products, Inc.*		8		202
Eastern Co.		7		201

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Babcock & Wilcox Enterprises, Inc.*		60	$	200
Hill International, Inc.*		42		200
LSI Industries, Inc.		30		198
Core Molding Technologies, Inc.		9		197
Iteris, Inc.*		29		193
Ampco-Pittsburgh Corp.		11		191
IES Holdings, Inc.*		11		190
AquaVenture Holdings Ltd.*		14		189
Twin Disc, Inc.*		10		186
Navios Maritime Holdings, Inc.*		111		185
Fluidigm Corp.*		36		181
Gencor Industries, Inc.*		10		177
Safe Bulkers, Inc.*,1		59		162
Pure Cycle Corp.*		21		158
Dorian LPG Ltd.*		23		157
Overseas Shipholding Group, Inc. — Class A*		56		147
CyberOptics Corp.*		9		146
Napco Security Technologies, Inc.*		15		146
Aqua Metals, Inc.*		21		144
Handy & Harman Ltd.*		4		130
Navios Maritime Acquisition Corp.		102		124
Genco Shipping & Trading Ltd.*		9		104
Revolution Lighting Technologies, Inc.*,1		16		104
Forterra, Inc.*		23		104
Willis Lease Finance Corp.*		4		98
NL Industries, Inc.*		10		92
Akoustis Technologies, Inc.*		11		72
Nordic American Offshore Ltd.		5		7
Total Industrial				364,677
Consumer, Cyclical - 2.8%
Dana, Inc.		179		5,004
Texas Roadhouse, Inc. — Class A		82		4,030
Tenneco, Inc.		65		3,943
Beacon Roofing Supply, Inc.*		75		3,843
FirstCash, Inc.		59		3,727
Five Below, Inc.*		67		3,678
Jack in the Box, Inc.		36		3,670
Churchill Downs, Inc.		17		3,506
ILG, Inc.		131		3,502
Lithia Motors, Inc. — Class A		29		3,489
Cracker Barrel Old Country Store, Inc.1		23		3,487
LCI Industries		30		3,475
Wolverine World Wide, Inc.		117		3,374
Marriott Vacations Worldwide Corp.		27		3,363
Steven Madden Ltd.*		73		3,160
Anixter International, Inc.*		36		3,059
Scientific Games Corp. — Class A*		65		2,980
Big Lots, Inc.		55		2,946
UniFirst Corp.		19		2,878
Office Depot, Inc.		634		2,878
American Eagle Outfitters, Inc.		201		2,874
Planet Fitness, Inc. — Class A		105		2,833
Ollie’s Bargain Outlet Holdings, Inc.*		60		2,784
Dave & Buster’s Entertainment, Inc.*		53		2,781
SkyWest, Inc.		63		2,766
Navistar International Corp.*		62		2,733
Meritor, Inc.*		104		2,705
Boyd Gaming Corp.		103		2,683
Deckers Outdoor Corp.*		39		2,668
Herman Miller, Inc.		73		2,621
Cooper-Standard Holdings, Inc.*		22		2,551
KB Home		105		2,532
TRI Pointe Group, Inc.*		183		2,527
Papa John’s International, Inc.		34		2,484
Children’s Place, Inc.		21		2,481
Hawaiian Holdings, Inc.*		66		2,478
Cooper Tire & Rubber Co.		66		2,468
iRobot Corp.*		32		2,466
Penn National Gaming, Inc.*		105		2,456
SiteOne Landscape Supply, Inc.*		42		2,440
Dorman Products, Inc.*		34		2,435
PriceSmart, Inc.		27		2,410
Cheesecake Factory, Inc.		55		2,317
HNI Corp.		54		2,239
Columbia Sportswear Co.		36		2,217
Meritage Homes Corp.*		48		2,131
Buffalo Wild Wings, Inc.*		20		2,114
Bloomin’ Brands, Inc.		113		1,989
Allegiant Travel Co. — Class A		15		1,976
Red Rock Resorts, Inc. — Class A		84		1,945
Taylor Morrison Home Corp. — Class A*		87		1,918
Brinker International, Inc.1		60		1,912
Fox Factory Holding Corp.*		44		1,896
Group 1 Automotive, Inc.		26		1,884
Mobile Mini, Inc.		54		1,861
American Axle & Manufacturing Holdings, Inc.*		103		1,811
Core-Mark Holding Company, Inc.		56		1,800
La Quinta Holdings, Inc.*		101		1,768
Triton International Ltd.*		53		1,764
RH*,1		25		1,758
Installed Building Products, Inc.*		27		1,750
Winnebago Industries, Inc.		39		1,745
DSW, Inc. — Class A		81		1,740
BMC Stock Holdings, Inc.*		81		1,729
MDC Holdings, Inc.		51		1,694
Interface, Inc. — Class A		77		1,686
Callaway Golf Co.		116		1,674
Gentherm, Inc.*		45		1,672
Rush Enterprises, Inc. — Class A*		36		1,666
Wabash National Corp.		73		1,666
American Woodmark Corp.*		17		1,636
Steelcase, Inc. — Class A		106		1,632
IMAX Corp.*		72		1,631
Vista Outdoor, Inc.*		71		1,629
La-Z-Boy, Inc.		60		1,614
Caleres, Inc.		52		1,587
Select Comfort Corp.*		51		1,584
G-III Apparel Group Ltd.*		54		1,567
HSN, Inc.		40		1,562
Belmond Ltd. — Class A*		111		1,515

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Cavco Industries, Inc.*		10	$	1,476
J.C. Penney Company, Inc.*		384		1,463
Eldorado Resorts, Inc.*		57		1,462
Chico’s FAS, Inc.		159		1,423
Pinnacle Entertainment, Inc.*		66		1,406
Asbury Automotive Group, Inc.*		23		1,405
Lumber Liquidators Holdings, Inc.*		35		1,364
ScanSource, Inc.*		30		1,310
Standard Motor Products, Inc.		27		1,303
Sonic Corp.		51		1,298
Caesars Acquisition Co. — Class A*		60		1,287
Oxford Industries, Inc.		20		1,271
Guess?, Inc.		74		1,260
Abercrombie & Fitch Co. — Class A		84		1,213
GMS, Inc.*		34		1,204
Knoll, Inc.		60		1,200
Wingstop, Inc.1		36		1,197
Modine Manufacturing Co.*		62		1,194
Camping World Holdings, Inc. — Class A		29		1,181
Universal Electronics, Inc.*		18		1,141
H&E Equipment Services, Inc.		39		1,139
International Speedway Corp. — Class A		31		1,116
Liberty TripAdvisor Holdings, Inc. — Class A*		90		1,112
SeaWorld Entertainment, Inc.*,1		85		1,104
Red Robin Gourmet Burgers, Inc.*		16		1,072
Dillard’s, Inc. — Class A1		19		1,065
Douglas Dynamics, Inc.		27		1,064
Denny’s Corp.*		85		1,058
LGI Homes, Inc.*		21		1,020
Ethan Allen Interiors, Inc.		31		1,004
AMC Entertainment Holdings, Inc. — Class A1		68		1,000
Caesars Entertainment Corp.*,1		71		948
DineEquity, Inc.		21		903
Shake Shack, Inc. — Class A*		27		897
Kimball International, Inc. — Class B		45		890
Crocs, Inc.*,1		91		883
Tailored Brands, Inc.1		60		866
PetMed Express, Inc.		25		829
M/I Homes, Inc.*		30		802
BJ’s Restaurants, Inc.*		26		792
Ruth’s Hospitality Group, Inc.		37		775
GNC Holdings, Inc. — Class A1		83		734
Beazer Homes USA, Inc.*		39		731
Unifi, Inc.*		20		713
Malibu Boats, Inc. — Class A*		22		696
William Lyon Homes — Class A*		30		690
Tower International, Inc.		25		680
Motorcar Parts of America, Inc.*		23		678
Sonic Automotive, Inc. — Class A		33		673
Hooker Furniture Corp.		14		669
Conn’s, Inc.*		23		647
Express, Inc.*		95		642
Wesco Aircraft Holdings, Inc.*		68		639
Genesco, Inc.*		24		638
Marcus Corp.		23		637
Del Taco Restaurants, Inc.*		41		629
Regis Corp.*		44		628
Nautilus, Inc.*		37		625
Titan International, Inc.		61		619
Fiesta Restaurant Group, Inc.*		32		608
Essendant, Inc.		46		606
Haverty Furniture Companies, Inc.		23		601
Buckle, Inc.1		35		590
Finish Line, Inc. — Class A1		49		589
EZCORP, Inc. — Class A*		61		580
Century Communities, Inc.*		23		568
Horizon Global Corp.*		32		564
Barnes & Noble, Inc.		74		562
Tile Shop Holdings, Inc.		42		533
Movado Group, Inc.		19		532
National CineMedia, Inc.		76		530
Ascena Retail Group, Inc.*		213		522
Monarch Casino & Resort, Inc.*		13		514
MarineMax, Inc.*		31		513
Johnson Outdoors, Inc. — Class A		7		513
Superior Industries International, Inc.		30		500
Acushnet Holdings Corp.1		28		497
Bassett Furniture Industries, Inc.		13		490
Fossil Group, Inc.*,1		52		485
Spartan Motors, Inc.		43		475
Eros International plc*		33		472
Freshpet, Inc.*		30		470
MCBC Holdings, Inc.*		23		469
Carrols Restaurant Group, Inc.*		43		469
Daktronics, Inc.		44		465
Party City Holdco, Inc.*		34		461
Flexsteel Industries, Inc.		9		456
Veritiv Corp.*		14		455
PICO Holdings, Inc.*		27		451
REV Group, Inc.		15		431
Culp, Inc.		13		426
Pier 1 Imports, Inc.		101		423
PC Connection, Inc.		15		423
Chuy’s Holdings, Inc.*		20		421
Zumiez, Inc.*		23		416
Cato Corp. — Class A1		30		397
Winmark Corp.		3		395
Del Frisco’s Restaurant Group, Inc.*		27		393
Miller Industries, Inc.		14		391
Hibbett Sports, Inc.*		27		385
Perry Ellis International, Inc.*		16		379
America’s Car-Mart, Inc.*		9		370
Systemax, Inc.		14		370
Citi Trends, Inc.		18		358
Titan Machinery, Inc.*		23		357
Iconix Brand Group, Inc.*		62		353
Potbelly Corp.*		28		347
Shoe Carnival, Inc.1		15		336
Biglari Holdings, Inc.*		1		333
Francesca’s Holdings Corp.*		45		331

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
			��
Reading International, Inc. — Class A*		21	$	330
Habit Restaurants, Inc. — Class A*		25		326
Golden Entertainment, Inc.*		13		317
El Pollo Loco Holdings, Inc.*		26		316
Barnes & Noble Education, Inc.*		48		312
Rush Enterprises, Inc. — Class B*		7		305
Speedway Motorsports, Inc.		14		298
Hovnanian Enterprises, Inc. — Class A*		153		295
Zoe’s Kitchen, Inc.*		23		290
Fred’s, Inc. — Class A1		45		290
Bojangles’, Inc.*		21		284
Drive Shack, Inc.		77		278
Green Brick Partners, Inc.*		28		277
AV Homes, Inc.*		16		274
RCI Hospitality Holdings, Inc.		11		272
Lindblad Expeditions Holdings, Inc.*		25		268
Libbey, Inc.		27		250
PetIQ, Inc.*		9		244
Duluth Holdings, Inc. — Class B*		12		243
Nexeo Solutions, Inc.*		32		234
Superior Uniform Group, Inc.		10		229
Kirkland’s, Inc.*		20		229
Commercial Vehicle Group, Inc.*		31		228
Weyco Group, Inc.		8		227
Foundation Building Materials, Inc.*		16		226
Nathan’s Famous, Inc.*		3		222
Vera Bradley, Inc.*		25		220
Lifetime Brands, Inc.		12		220
VOXX International Corp. — Class A*		25		214
Century Casinos, Inc.*		26		213
Huttig Building Products, Inc.*		29		205
Big 5 Sporting Goods Corp.1		26		199
Sportsman’s Warehouse Holdings, Inc.*,1		44		198
Clarus Corp.*		26		195
Delta Apparel, Inc.*		9		194
Tilly’s, Inc. — Class A		16		192
J Alexander’s Holdings, Inc.*		16		186
Blue Bird Corp.*		9		185
New Home Company, Inc.*		16		179
Escalade, Inc.		13		177
Red Lion Hotels Corp.*		20		173
PCM, Inc.*		12		168
Marine Products Corp.		10		161
At Home Group, Inc.*		7		160
Ruby Tuesday, Inc.*		73		156
Build-A-Bear Workshop, Inc. — Class A*		17		156
J. Jill, Inc.*,1		14		152
Fogo De Chao, Inc.*		12		149
Sequential Brands Group, Inc.*		49		147
Castle Brands, Inc.*,1		108		145
Vitamin Shoppe, Inc.*		27		144
Boot Barn Holdings, Inc.*,1		16		142
Gaia, Inc.*		11		132
EnviroStar, Inc.		4		111
Sears Holdings Corp.*		15		110
Empire Resorts, Inc.*		4		89
Container Store Group, Inc.*		20		84
Inspired Entertainment, Inc.*		5		66
Noodles & Co.*		14		62
CompX International, Inc.		3		46
Total Consumer, Cyclical				289,781
Technology - 2.5%
MKS Instruments, Inc.		66		6,233
Aspen Technology, Inc.*		93		5,842
Medidata Solutions, Inc.*		69		5,387
EPAM Systems, Inc.*		61		5,363
Fair Isaac Corp.		38		5,339
Monolithic Power Systems, Inc.		49		5,220
MAXIMUS, Inc.		79		5,095
Blackbaud, Inc.		58		5,092
Entegris, Inc.*		175		5,049
Paycom Software, Inc.*		60		4,498
Integrated Device Technology, Inc.*		165		4,386
j2 Global, Inc.		58		4,285
Cirrus Logic, Inc.*		79		4,212
CACI International, Inc. — Class A*		30		4,180
Lumentum Holdings, Inc.*		75		4,076
Silicon Laboratories, Inc.*		51		4,075
Science Applications International Corp.		54		3,610
HubSpot, Inc.*		41		3,446
NetScout Systems, Inc.*		106		3,429
ACI Worldwide, Inc.*		144		3,280
Verint Systems, Inc.*		77		3,222
Allscripts Healthcare Solutions, Inc.*		225		3,202
2U, Inc.*		54		3,026
Semtech Corp.*		80		3,004
Convergys Corp.		115		2,977
Mercury Systems, Inc.*		57		2,957
CommVault Systems, Inc.*		48		2,918
RealPage, Inc.*		73		2,913
VeriFone Systems, Inc.*		138		2,799
Envestnet, Inc.*		53		2,703
Power Integrations, Inc.		36		2,635
Cornerstone OnDemand, Inc.*		64		2,599
Pegasystems, Inc.		45		2,594
Brooks Automation, Inc.		84		2,550
Cabot Microelectronics Corp.		31		2,478
Electronics for Imaging, Inc.*		58		2,475
ExlService Holdings, Inc.*		41		2,391
Acxiom Corp.*		97		2,390
Twilio, Inc. — Class A*,1		77		2,298
Omnicell, Inc.*		45		2,297
Progress Software Corp.		59		2,252
MACOM Technology Solutions Holdings, Inc.*		50		2,231
Diebold Nixdorf, Inc.1		94		2,148
Inphi Corp.*		52		2,064
Insight Enterprises, Inc.*		44		2,020
Qualys, Inc.*		39		2,020
Ambarella, Inc.*,1		40		1,960
Ebix, Inc.		30		1,958
Callidus Software, Inc.*		79		1,947

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
BroadSoft, Inc.*		38	$	1,911
Box, Inc. — Class A*		97		1,874
Pure Storage, Inc. — Class A*		116		1,855
Rambus, Inc.*		138		1,842
3D Systems Corp.*,1		135		1,808
New Relic, Inc.*		36		1,793
MaxLinear, Inc. — Class A*		75		1,781
Synaptics, Inc.*		42		1,646
CSG Systems International, Inc.		41		1,644
Cotiviti Holdings, Inc.*		45		1,619
Bottomline Technologies de, Inc.*		49		1,560
Five9, Inc.*		65		1,554
Nutanix, Inc. — Class A*,1		69		1,545
MicroStrategy, Inc. — Class A*		12		1,533
XPERI CORP.		60		1,518
FormFactor, Inc.*		89		1,500
Diodes, Inc.*		48		1,437
Sykes Enterprises, Inc.*		49		1,429
ManTech International Corp. — Class A		32		1,413
Stratasys Ltd.*		61		1,410
MINDBODY, Inc. — Class A*		52		1,344
Amkor Technology, Inc.*		126		1,329
Inovalon Holdings, Inc. — Class A*		77		1,313
Virtusa Corp.*		34		1,285
Ultra Clean Holdings, Inc.*		41		1,255
Veeco Instruments, Inc.*		58		1,241
SPS Commerce, Inc.*		21		1,191
Coupa Software, Inc.*		37		1,153
Evolent Health, Inc. — Class A*,1		64		1,139
MTS Systems Corp.		21		1,122
CEVA, Inc.*		26		1,113
Vocera Communications, Inc.*		35		1,098
Super Micro Computer, Inc.*		49		1,083
Axcelis Technologies, Inc.*		37		1,012
Quality Systems, Inc.*		64		1,007
Hortonworks, Inc.*		59		1,000
Rudolph Technologies, Inc.*		38		999
Monotype Imaging Holdings, Inc.		51		982
Cray, Inc.*		50		973
Varonis Systems, Inc.*		23		964
Impinj, Inc.*,1		22		915
LivePerson, Inc.*		67		908
Donnelley Financial Solutions, Inc.*		41		884
Instructure, Inc.*		26		862
Nanometrics, Inc.*		29		835
Silver Spring Networks, Inc.*		51		825
Syntel, Inc.*		41		806
Lattice Semiconductor Corp.*		152		792
Cohu, Inc.		33		787
PROS Holdings, Inc.*		32		772
CommerceHub, Inc.*		36		769
Engility Holdings, Inc.*		22		763
Barracuda Networks, Inc.*		31		751
IXYS Corp.*		31		735
Photronics, Inc.*		82		726
TeleTech Holdings, Inc.		17		710
SMART Global Holdings, Inc.*		25		670
Carbonite, Inc.*		30		660
Xcerra Corp.*		67		660
Blackline, Inc.*		19		648
Workiva, Inc.*		31		646
InnerWorkings, Inc.*		57		641
Benefitfocus, Inc.*,1		19		639
MuleSoft, Inc. — Class A*		30		604
Actua Corp.*		38		581
Everbridge, Inc.*		21		555
Appfolio, Inc. — Class A*		11		527
Unisys Corp.*		62		527
PDF Solutions, Inc.*		34		527
Bazaarvoice, Inc.*		103		510
Synchronoss Technologies, Inc.*		53		494
Glu Mobile, Inc.*,1		129		485
KeyW Holding Corp.*,1		59		449
Digimarc Corp.*		12		439
Model N, Inc.*		29		434
AXT, Inc.*		46		421
Computer Programs & Systems, Inc.		14		414
QAD, Inc. — Class A		12		412
Exa Corp.*		17		411
Apptio, Inc. — Class A*		22		406
Alpha & Omega Semiconductor Ltd.*		24		396
CommerceHub, Inc.*		17		384
American Software, Inc. — Class A		33		375
Mitek Systems, Inc.*		39		371
pdvWireless, Inc.*		12		358
DSP Group, Inc.*		27		351
Castlight Health, Inc. — Class B*		80		344
Digi International, Inc.*		32		339
Presidio, Inc.*		23		325
Kopin Corp.*		76		317
Brightcove, Inc.*		43		310
DMC Global, Inc.		18		304
USA Technologies, Inc.*		48		300
Sigma Designs, Inc.*		47		296
Tabula Rasa HealthCare, Inc.*		11		294
Immersion Corp.*		36		294
Cloudera, Inc.*,1		17		283
EMCORE Corp.*		33		271
MobileIron, Inc.*		68		252
Maxwell Technologies, Inc.*		45		231
Agilysys, Inc.*		19		227
Alteryx, Inc. — Class A*		11		224
Planet Payment, Inc.*		52		223
Rosetta Stone, Inc.*		21		214
Quantum Corp.*		34		208
Simulations Plus, Inc.		13		202
Park City Group, Inc.*		16		194
Amber Road, Inc.*		25		192
Upland Software, Inc.*		9		190
Avid Technology, Inc.*		41		186
ExOne Co.*		15		170
Pixelworks, Inc.*		35		165

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Eastman Kodak Co.*		21	$	154
StarTek, Inc.*		13		153
Veritone, Inc.*		3		136
GSI Technology, Inc.*		18		131
SecureWorks Corp. — Class A*		10		124
Cogint, Inc.*		25		123
NantHealth, Inc.*		22		91
Radisys Corp.*		45		62
Majesco*		7		35
Total Technology				255,799
Communications - 1.5%
GrubHub, Inc.*		107		5,634
Proofpoint, Inc.*		53		4,622
ViaSat, Inc.*		66		4,244
Yelp, Inc. — Class A*		96		4,156
Ciena Corp.*		176		3,866
Stamps.com, Inc.*		19		3,849
Zendesk, Inc.*		121		3,522
Nexstar Media Group, Inc. — Class A		56		3,490
RingCentral, Inc. — Class A*		77		3,215
InterDigital, Inc.		42		3,097
Finisar Corp.*		138		3,058
New York Times Co. — Class A		156		3,058
Sinclair Broadcast Group, Inc. — Class A		90		2,885
TiVo Corp.		145		2,878
Meredith Corp.		49		2,720
DigitalGlobe, Inc.*		76		2,679
Viavi Solutions, Inc.*		283		2,677
Cogent Communications Holdings, Inc.		51		2,494
Etsy, Inc.*		143		2,414
Cars.com, Inc.*,1		89		2,368
Groupon, Inc. — Class A*		421		2,189
Straight Path Communications, Inc. — Class B*		12		2,168
Shenandoah Telecommunications Co.		58		2,158
Shutterfly, Inc.*		42		2,036
Vonage Holdings Corp.*		247		2,011
NETGEAR, Inc.*		40		1,904
Gigamon, Inc.*		45		1,897
Plantronics, Inc.		41		1,813
Trade Desk, Inc. — Class A*		29		1,784
Imperva, Inc.*		41		1,779
Oclaro, Inc.*,1		204		1,761
Chegg, Inc.*		116		1,721
Time, Inc.		123		1,661
Extreme Networks, Inc.*		135		1,605
MSG Networks, Inc. — Class A*		75		1,590
Q2 Holdings, Inc.*		38		1,583
Infinera Corp.*		178		1,579
ePlus, Inc.*		17		1,572
Ubiquiti Networks, Inc.*,1		28		1,569
Consolidated Communications Holdings, Inc.		81		1,545
Houghton Mifflin Harcourt Co.*		128		1,542
8x8, Inc.*		110		1,485
ADTRAN, Inc.		60		1,440
Quotient Technology, Inc.*		91		1,424
EW Scripps Co. — Class A*		71		1,357
NIC, Inc.		79		1,355
General Communication, Inc. — Class A*		33		1,346
TrueCar, Inc.*		85		1,342
Scholastic Corp.		35		1,302
Blucora, Inc.*		51		1,290
Gannett Company, Inc.		142		1,278
Gray Television, Inc.*		80		1,256
West Corp.		53		1,244
GTT Communications, Inc.*		38		1,203
Web.com Group, Inc.*		47		1,175
Frontier Communications Corp.1		97		1,144
World Wrestling Entertainment, Inc. — Class A		48		1,130
Acacia Communications, Inc.*,1		23		1,083
Iridium Communications, Inc.*,1		104		1,071
Liberty Media Corporation-Liberty Braves — Class C*		42		1,061
Cincinnati Bell, Inc.*		51		1,012
CalAmp Corp.*		43		1,000
Boingo Wireless, Inc.*		45		962
New Media Investment Group, Inc.		63		932
Globalstar, Inc.*		549		895
ORBCOMM, Inc.*		81		848
Perficient, Inc.*		43		846
Gogo, Inc.*,1		71		839
Bankrate, Inc.*		58		809
Loral Space & Communications, Inc.*		16		792
Shutterstock, Inc.*		23		766
MDC Partners, Inc. — Class A*		68		748
HealthStream, Inc.*		32		748
Tucows, Inc. — Class A*		12		703
ATN International, Inc.		13		685
Overstock.com, Inc.*		21		624
Angie’s List, Inc.*		50		623
Endurance International Group Holdings, Inc.*		72		590
XO Group, Inc.*		30		590
Comtech Telecommunications Corp.		28		575
Lumos Networks Corp.*		27		484
Entravision Communications Corp. — Class A		82		467
Rapid7, Inc.*		26		458
A10 Networks, Inc.*		60		454
Sonus Networks, Inc.*		59		451
VASCO Data Security International, Inc.*		37		446
Quantenna Communications, Inc.*		26		437
Internap Corp.*		99		431
Windstream Holdings, Inc.		235		416
Central European Media Enterprises Ltd. — Class A*		102		413
Okta, Inc.*,1		14		395
WideOpenWest, Inc.*		26		392
Entercom Communications Corp. — Class A1		34		389
Spok Holdings, Inc.		25		384

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Limelight Networks, Inc.*		93	$	369
tronc, Inc.*		25		363
ChannelAdvisor Corp.*		31		357
QuinStreet, Inc.*		45		331
Zix Corp.*		67		328
1-800-Flowers.com, Inc. — Class A*		32		315
Liberty Media Corporation-Liberty Braves — Class A*		12		304
Harmonic, Inc.*		98		299
Meet Group, Inc.*		82		298
IDT Corp. — Class B		21		296
RigNet, Inc.*		17		292
TechTarget, Inc.*		24		287
Carvana Co.*		19		279
FTD Companies, Inc.*		21		274
Preformed Line Products Co.		4		269
Calix, Inc.*		53		268
HC2 Holdings, Inc.*		50		264
VirnetX Holding Corp.*		63		246
Telenav, Inc.*		38		241
KVH Industries, Inc.*		20		239
Hawaiian Telcom Holdco, Inc.*		8		239
Saga Communications, Inc. — Class A		5		228
Hemisphere Media Group, Inc.*		19		227
NeoPhotonics Corp.*		40		222
Ooma, Inc.*		21		222
Daily Journal Corp.*		1		219
Global Eagle Entertainment, Inc.*		63		215
Rubicon Project, Inc.*		55		214
Intelsat S.A.*		45		212
Lands’ End, Inc.*		16		211
Clear Channel Outdoor Holdings, Inc. — Class A		44		205
Yext, Inc.*		15		199
Reis, Inc.		11		198
Clearfield, Inc.*		14		190
Liquidity Services, Inc.*		32		189
Aerohive Networks, Inc.*		39		160
Corindus Vascular Robotics, Inc.*		104		158
DHI Group, Inc.*		60		156
RealNetworks, Inc.*		30		144
Townsquare Media, Inc. — Class A*		11		110
Leaf Group Ltd.*		15		104
Salem Media Group, Inc. — Class A		14		92
Ominto, Inc.*		17		77
Beasley Broadcast Group, Inc. — Class A		6		70
Value Line, Inc.		1		18
Total Communications				160,181
Energy - 0.9%
PDC Energy, Inc.*		82		4,021
Matador Resources Co.*		111		3,015
Callon Petroleum Co.*		248		2,788
Oasis Petroleum, Inc.*		292		2,663
Delek US Holdings, Inc.		96		2,566
McDermott International, Inc.*		351		2,551
SRC Energy, Inc.*		247		2,388
SemGroup Corp. — Class A		82		2,358
Ensco plc — Class A1		377		2,251
Peabody Energy Corp.*		76		2,205
Pattern Energy Group, Inc.		87		2,096
Ultra Petroleum Corp.*		241		2,089
Dril-Quip, Inc.*		47		2,074
Superior Energy Services, Inc.*		189		2,019
MRC Global, Inc.*		111		1,941
Arch Coal, Inc. — Class A		27		1,937
Rowan Companies plc — Class A*		144		1,850
NOW, Inc.*		133		1,837
C&J Energy Services, Inc.*		57		1,708
Carrizo Oil & Gas, Inc.*		95		1,627
Oil States International, Inc.*		63		1,597
Noble Corporation plc*		302		1,389
Forum Energy Technologies, Inc.*		85		1,352
Unit Corp.*		65		1,338
TerraForm Power, Inc. — Class A*		99		1,309
Helix Energy Solutions Group, Inc.*		173		1,278
Exterran Corp.*		40		1,264
Diamond Offshore Drilling, Inc.*,1		80		1,160
Archrock, Inc.		87		1,092
Newpark Resources, Inc.*		108		1,080
Halcon Resources Corp.*		158		1,074
SEACOR Holdings, Inc.*		21		968
Jagged Peak Energy, Inc.*,1		70		956
Green Plains, Inc.		47		947
Atwood Oceanics, Inc.*,1		95		892
SandRidge Energy, Inc.*		43		864
Par Pacific Holdings, Inc.*		40		832
Bonanza Creek Energy, Inc.*		25		825
Ring Energy, Inc.*		56		811
Resolute Energy Corp.*		27		802
Tellurian, Inc.*		68		726
Plug Power, Inc.*,1		277		723
SunCoke Energy, Inc.*		79		722
Penn Virginia Corp.*		18		720
Thermon Group Holdings, Inc.*		40		720
Stone Energy Corp.*		24		697
Denbury Resources, Inc.*		492		659
REX American Resources Corp.*		7		657
Keane Group, Inc.*		39		651
Renewable Energy Group, Inc.*		48		583
Sunrun, Inc.*		105		583
California Resources Corp.*		53		554
TerraForm Global, Inc. — Class A*		111		527
Warrior Met Coal, Inc.		21		495
CVR Energy, Inc.1		19		492
FutureFuel Corp.		31		488
Matrix Service Co.*		32		486
Frank’s International N.V.		61		471
Panhandle Oil and Gas, Inc. — Class A		19		452
ProPetro Holding Corp.*		31		445
NACCO Industries, Inc. — Class A		5		429
Natural Gas Services Group, Inc.*		15		426
Basic Energy Services, Inc.*,1		22		425
Sanchez Energy Corp.*		88		424

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Clean Energy Fuels Corp.*		168	$	417
TETRA Technologies, Inc.*		141		403
Bill Barrett Corp.*		94		403
Bristow Group, Inc.1		40		374
Energy XXI Gulf Coast, Inc.*		36		372
Abraxas Petroleum Corp.*		188		353
W&T Offshore, Inc.*,1		115		351
NCS Multistage Holdings, Inc.*		14		337
Cloud Peak Energy, Inc.*		91		333
WildHorse Resource Development Corp.*,1		25		333
Trecora Resources*		24		319
Flotek Industries, Inc.*		68		316
Tesco Corp.*		58		316
TPI Composites, Inc.*		13		290
Geospace Technologies Corp.*		16		285
Pacific Ethanol, Inc.*		51		283
Eclipse Resources Corp.*		108		270
Era Group, Inc.*		24		269
CARBO Ceramics, Inc.*		28		242
Pioneer Energy Services Corp.*		94		240
Lilis Energy, Inc.*		53		237
Isramco, Inc.*		2		232
Evolution Petroleum Corp.		31		223
SilverBow Resources, Inc.*		9		221
Midstates Petroleum Company, Inc.*		14		218
Gulf Island Fabrication, Inc.		17		216
Solaris Oilfield Infrastructure, Inc. — Class A*		12		209
Gastar Exploration, Inc.*		217		191
Parker Drilling Co.*		167		184
Willbros Group, Inc.*		54		174
Key Energy Services, Inc.*,1		13		171
Mammoth Energy Services, Inc.*		10		169
PHI, Inc.*		14		165
Independence Contract Drilling, Inc.*		42		160
EP Energy Corp. — Class A*		47		153
Contango Oil & Gas Co.*		30		151
Approach Resources, Inc.*,1		53		133
Earthstone Energy, Inc. — Class A*		12		132
Adams Resources & Energy, Inc.		3		125
Hallador Energy Co.		20		114
Vivint Solar, Inc.*		32		109
Jones Energy, Inc. — Class A*		56		108
Select Energy Services, Inc. — Class A*		5		80
Westmoreland Coal Co.*		23		59
Ramaco Resources, Inc.*		8		53
Rosehill Resources, Inc.*		3		25
Cobalt International Energy, Inc.*		1		1
EXCO Resources, Inc.*		1		1
Total Energy				91,889
Basic Materials - 0.8%
Sensient Technologies Corp.		54		4,154
PolyOne Corp.		100		4,003
HB Fuller Co.		63		3,658
Ingevity Corp.*		52		3,248
Allegheny Technologies, Inc.*,1		135		3,227
Balchem Corp.		39		3,170
US Silica Holdings, Inc.		101		3,137
Minerals Technologies, Inc.		43		3,038
Compass Minerals International, Inc.1		43		2,790
Carpenter Technology Corp.		58		2,786
Commercial Metals Co.		143		2,721
GCP Applied Technologies, Inc.*		88		2,702
Cleveland-Cliffs, Inc.*		369		2,638
Hecla Mining Co.		487		2,445
Quaker Chemical Corp.		16		2,367
Ferro Corp.*		104		2,319
AK Steel Holding Corp.*		391		2,186
Kaiser Aluminum Corp.		21		2,166
Coeur Mining, Inc.*		224		2,059
Stepan Co.		24		2,008
Innospec, Inc.		29		1,788
Neenah Paper, Inc.		20		1,711
Tronox Ltd. — Class A		81		1,709
Schweitzer-Mauduit International, Inc.		37		1,534
Kraton Corp.*		37		1,496
AdvanSix, Inc.*		37		1,471
Calgon Carbon Corp.		63		1,348
Deltic Timber Corp.		14		1,238
A. Schulman, Inc.		36		1,229
Koppers Holdings, Inc.*		26		1,200
Innophos Holdings, Inc.		24		1,181
Materion Corp.		25		1,079
PH Glatfelter Co.		53		1,031
Century Aluminum Co.*		62		1,028
Clearwater Paper Corp.*		20		985
Fairmount Santrol Holdings, Inc.*,1		192		918
Schnitzer Steel Industries, Inc. — Class A		32		901
American Vanguard Corp.		36		824
CSW Industrials, Inc.*		18		798
Klondex Mines Ltd.*		217		790
Rayonier Advanced Materials, Inc.		53		726
Kronos Worldwide, Inc.		28		639
KMG Chemicals, Inc.		11		604
OMNOVA Solutions, Inc.*		54		591
Intrepid Potash, Inc.*		116		506
Hawkins, Inc.		12		490
Landec Corp.*		33		427
Aceto Corp.		36		404
Oil-Dri Corporation of America		7		343
Codexis, Inc.*		50		333
Gold Resource Corp.		65		244
Uranium Energy Corp.*		169		233
Ryerson Holding Corp.*		20		217
Verso Corp. — Class A*		41		209
AgroFresh Solutions, Inc.*,1		27		190
Smart Sand, Inc.*		27		183
Orchids Paper Products Co.1		12		169
United States Lime & Minerals, Inc.		2		168
Shiloh Industries, Inc.*		11		114
Valhi, Inc.		31		75
Total Basic Materials				87,946

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Utilities - 0.8%
IDACORP, Inc.		63	$	5,541
WGL Holdings, Inc.		63		5,304
Portland General Electric Co.		111		5,066
ALLETE, Inc.		63		4,869
ONE Gas, Inc.		65		4,786
Southwest Gas Holdings, Inc.		59		4,580
Black Hills Corp.		66		4,545
New Jersey Resources Corp.		107		4,510
Spire, Inc.		58		4,330
Avista Corp.		79		4,090
PNM Resources, Inc.		100		4,030
South Jersey Industries, Inc.		99		3,418
NorthWestern Corp.		60		3,416
Ormat Technologies, Inc.		49		2,991
MGE Energy, Inc.		44		2,842
El Paso Electric Co.		50		2,763
Northwest Natural Gas Co.		35		2,254
California Water Service Group		59		2,252
American States Water Co.		45		2,216
Otter Tail Corp.		48		2,081
NRG Yield, Inc. — Class C		79		1,525
Chesapeake Utilities Corp.		19		1,487
Dynegy, Inc.*		137		1,341
SJW Group1		21		1,189
Unitil Corp.		17		841
NRG Yield, Inc. — Class A		44		835
Connecticut Water Service, Inc.		14		830
Middlesex Water Co.		19		746
York Water Co.		16		542
Artesian Resources Corp. — Class A		10		378
Atlantic Power Corp.*		142		348
Consolidated Water Company Ltd.		18		230
RGC Resources, Inc.		8		229
Spark Energy, Inc. — Class A		14		210
Ameresco, Inc. — Class A*		23		179
Global Water Resources, Inc.		12		113
Genie Energy Ltd. — Class B		17		111
Total Utilities				87,018
Diversified - 0.0%
HRG Group, Inc.*		146		2,279
Wins Finance Holdings, Inc.*,††		1		12
Total Diversified				2,291
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		37		1,089
Total Common Stocks
(Cost $2,087,630)				2,528,914
WARRANTS†† - 0.0%
Imperial Holdings, Inc. $10.75, 10/06/19		4		—
Total Warrants
(Cost $—)				—
RIGHTS††† - 0.0%
Omthera Pharmaceuticals, Inc.
Expires 12/31/202		57		—
Tobira Therapeutics, Inc.
Expires 11/02/182		14		—
Dyax Corp.
Expires 01/25/182		714		—
Nexstar Media Group, Inc.
Expires 01/18/192		85		—
Total Rights
(Cost $—)				—
MUTUAL FUNDS† - 33.1
Guggenheim Strategy Fund II3		74,669		1,871,208
Guggenheim Strategy Fund I3		62,515		1,569,740
Total Mutual Funds
(Cost $3,425,858)				3,440,948

	Face Amount
REPURCHASE AGREEMENTS††,4 - 39.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/175	$	2,061,573		2,061,573
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/175		1,030,787		1,030,787
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/175		582,927		582,927
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		404,633		404,633
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		42,437		42,437
Total Repurchase Agreements
(Cost $4,122,357)				4,122,357
SECURITIES LENDING COLLATERAL†,6 - 0.8%
First American Government Obligations Fund — Class Z, 0.89%7		80,822		80,822
Total Securities Lending Collateral
(Cost $80,822)				80,822
Total Investments - 97.9%
(Cost $9,716,667)			$	10,173,041
Other Assets & Liabilities, net - 2.1%				220,412
Total Net Assets - 100.0%			$	10,393,453

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
Goldman Sachs International	Russell 2000 Index	1.05	%	At Maturity	10/27/17		2,621	$	3,907,890	$	77,752
BNP Paribas	Russell 2000 Index	1.24	%	At Maturity	10/30/17		3,449		5,142,271		23,067
Barclays Bank plc	Russell 2000 Index	1.20	%	At Maturity	10/31/17		2,687		4,006,261		5,656
								$	13,056,422	$	106,475

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2017. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Affiliated issuer.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
6	Securities lending collateral — See Note 7.
7	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs			Level 2 – Other*		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	2,528,902	$	12		$	—	$	—		$	2,528,914
Equity Index Swap Agreements		—		—			106,475		—			106,475
Mutual Funds		3,440,948		—			—		—			3,440,948
Repurchase Agreements		—		4,122,357			—		—			4,122,357
Rights		—		—			—		—	**		—
Securities Lending Collateral		80,822		—			—		—			80,822
Warrants		—		—	**		—		—			—
Total Assets	$	6,050,672	$	4,122,369		$	106,475	$	—		$	10,279,516

*	Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.
**	Security has a market value of $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, Russell 2000^® 1.5x Strategy Fund had a security with the total value of $12 transfer out of Level 1 into Level 2 due to changes in security’s valuation methods using observable market inputs. There were no other transfers between levels.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
RUSSELL 2000® 1.5x STRATEGY FUND

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	3,064,195	$	—	$	(1,500,000	)	$	4,785	$	760	$	1,569,740		62,515	$	24,543
Guggenheim Strategy Fund II		3,364,931		—		(1,500,000	)		4,794		1,483		1,871,208		74,669		34,426
	$	6,429,126	$	—	$	(3,000,000	)	$	9,579	$	2,243	$	3,440,948			$	58,969

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $78,627 of securities loaned (cost $2,168,452)	$	2,609,736
Investments in affiliated issuers, at value (cost $3,425,858)		3,440,948
Repurchase agreements, at value (cost $4,122,357)		4,122,357
Cash		557
Segregated cash with broker		240,000
Unrealized appreciation on swap agreements		106,475
Receivables:
Dividends		8,264
Fund shares sold		1,300
Interest		229
Securities lending income		157
Total assets		10,530,023
Liabilities:
Payable for:
Return of securities loaned		80,821
Fund shares redeemed		40,110
Management fees		7,052
Distribution and service fees		2,810
Transfer agent and administrative fees		1,959
Portfolio accounting fees		784
Miscellaneous		3,034
Total liabilities		136,570
Commitments and contingent liabilities (Note 12)		—
Net assets	$	10,393,453
Net assets consist of:
Paid in capital	$	10,809,062
Accumulated net investment loss		(50,591	)
Accumulated net realized loss on investments		(927,867	)
Net unrealized appreciation on investments		562,849
Net assets	$	10,393,453
A-Class:
Net assets	$	1,391,219
Capital shares outstanding		22,275
Net asset value per share	$	62.46
Maximum offering price per share (Net asset value divided by 95.25%)	$	65.57
C-Class:
Net assets	$	1,469,750
Capital shares outstanding		27,421
Net asset value per share	$	53.60
H-Class:
Net assets	$	7,532,484
Capital shares outstanding		120,896
Net asset value per share	$	62.31

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $10)	$	12,930
Dividends from securities of affiliated issuers		58,969
Interest		12,766
Income from securities lending, net		927
Total investment income		85,592
Expenses:
Management fees		51,639
Distribution and service fees:
A-Class		1,488
C-Class		7,135
H-Class		11,073
Transfer agent and administrative fees		14,344
Registration fees		8,043
Portfolio accounting fees		5,738
Trustees’ fees*		1,105
Custodian fees		845
Line of credit fees		10
Miscellaneous		3,818
Total expenses		105,238
Net investment loss		(19,646	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		28,049
Investments in affiliated issuers		9,579
Swap agreements		1,826,980
Futures contracts		247,848
Net realized gain		2,112,456
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		161,905
Investments in affiliated issuers		2,243
Swap agreements		(93,719	)
Futures contracts		(41,565	)
Net change in unrealized appreciation (depreciation)		28,864
Net realized and unrealized gain		2,141,320
Net increase in net assets resulting from operations	$	2,121,674

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

104 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(19,646	)	$	(250,197	)
Net realized gain (loss) on investments		2,112,456			(1,534,818	)
Net change in unrealized appreciation (depreciation) on investments		28,864			(242,307	)
Net increase (decrease) in net assets resulting from operations		2,121,674			(2,027,322	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(89,296	)
C-Class		—			(161,707	)
H-Class		—			(799,962	)
Total distributions to shareholders		—			(1,050,965	)
Capital share transactions:
Proceeds from sale of shares
A-Class		312,925			1,237,997
C-Class		511			155,476
H-Class		103,302,304			656,240,773
Distributions reinvested
A-Class		—			83,282
C-Class		—			159,867
H-Class		—			795,517
Cost of shares redeemed
A-Class		(235,166	)		(832,386	)
C-Class		(174,975	)		(442,235	)
H-Class		(106,046,562	)		(653,076,024	)
Net increase (decrease) from capital share transactions		(2,840,963	)		4,322,267
Net increase (decrease) in net assets		(719,289	)		1,243,980
Net assets:
Beginning of period		11,112,742			9,868,762
End of period	$	10,393,453		$	11,112,742
Accumulated net investment loss at end of period	$	(50,591	)	$	(30,945	)
Capital share activity:
Shares sold
A-Class		5,432			24,980
C-Class		10			3,593
H-Class		1,887,911			12,853,203
Shares issued from reinvestment of distributions
A-Class		—			1,620
C-Class		—			3,600
H-Class		—			15,495
Shares redeemed
A-Class		(4,086	)		(16,769	)
C-Class		(3,554	)		(9,755	)
H-Class		(1,918,241	)		(12,897,361	)
Net decrease in shares		(32,528	)		(21,394	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	55.99		$	44.78		$	58.05		$	53.23		$	39.32		$	32.20
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.32	)		(.43	)		(.39	)		(.37	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		6.51			16.87			(9.03	)		5.41			14.28			7.28
Total from investment operations		6.47			16.55			(9.46	)		5.02			13.91			7.12
Less distributions from:
Net realized gains		—			(5.34	)		(3.81	)		(.20	)		—			—
Total distributions		—			(5.34	)		(3.81	)		(.20	)		—			—
Net asset value, end of period	$	62.46		$	55.99		$	44.78		$	58.05		$	53.23		$	39.32
Total Returnc		11.56	%		38.01	%		(16.75	%)		9.48	%		35.38	%		22.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,391		$	1,172		$	497		$	627		$	614		$	392
Ratios to average net assets:
Net investment income (loss)		(0.16	%)		(0.62	%)		(0.85	%)		(0.74	%)		(0.78	%)		(0.51	%)
Total expensesd		1.74	%		1.73	%		1.70	%		1.70	%		1.72	%		1.71	%
Portfolio turnover rate		49	%		1,315	%		971	%		830	%		472	%		527	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	48.24		$	39.44		$	52.01		$	48.08		$	35.78		$	29.52
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.63	)		(.73	)		(.70	)		(.65	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		5.58			14.77			(8.03	)		4.83			12.95			6.60
Total from investment operations		5.36			14.14			(8.76	)		4.13			12.30			6.26
Less distributions from:
Net realized gains		—			(5.34	)		(3.81	)		(.20	)		—			—
Total distributions		—			(5.34	)		(3.81	)		(.20	)		—			—
Net asset value, end of period	$	53.60		$	48.24		$	39.44		$	52.01		$	48.08		$	35.78
Total Returnc		11.13	%		36.98	%		(17.36	%)		8.64	%		34.38	%		21.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,470		$	1,494		$	1,322		$	1,800		$	1,864		$	1,685
Ratios to average net assets:
Net investment income (loss)		(0.91	%)		(1.41	%)		(1.62	%)		(1.49	%)		(1.55	%)		(1.15	%)
Total expensesd		2.49	%		2.47	%		2.45	%		2.45	%		2.47	%		2.46	%
Portfolio turnover rate		49	%		1,315	%		971	%		830	%		472	%		527	%

106 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	55.86		$	44.75		$	57.94		$	53.13		$	39.24		$	32.13
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.51	)		(.51	)		(.40	)		(.37	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		6.53			16.96			(8.87	)		5.41			14.26			7.19
Total from investment operations		6.45			16.45			(9.38	)		5.01			13.89			7.11
Less distributions from:
Net realized gains		—			(5.34	)		(3.81	)		(.20	)		—			—
Total distributions		—			(5.34	)		(3.81	)		(.20	)		—			—
Net asset value, end of period	$	62.31		$	55.86		$	44.75		$	57.94		$	53.13		$	39.24
Total Returnc		11.53	%		37.80	%		(16.63	%)		9.48	%		35.40	%		22.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,532		$	8,447		$	8,049		$	18,596		$	19,056		$	44,955
Ratios to average net assets:
Net investment income (loss)		(0.28	%)		(0.98	%)		(1.01	%)		(0.76	%)		(0.81	%)		(0.25	%)
Total expensesd		1.74	%		1.73	%		1.70	%		1.70	%		1.72	%		1.71	%
Portfolio turnover rate		49	%		1,315	%		971	%		830	%		472	%		527	%

a	Unaudited figures for the period ended September 30, 2017. 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 | 107

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Kite Pharma, Inc.	0.3%
Bluebird Bio, Inc.	0.2%
Exact Sciences Corp.	0.2%
Knight-Swift Transportation Holdings, Inc.	0.2%
MKS Instruments, Inc.	0.2%
Catalent, Inc.	0.2%
Aspen Technology, Inc.	0.2%
Starwood Waypoint Homes	0.2%
MGIC Investment Corp.	0.2%
Curtiss-Wright Corp.	0.2%
Top Ten Total	2.1%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	7.48%	18.81%	11.84%	6.08%
A-Class Shares with sales charge‡	2.38%	13.16%	10.76%	5.57%
C-Class Shares	7.05%	17.92%	10.99%	5.23%
C-Class Shares with CDSC§	6.05%	16.92%	10.99%	5.23%
H-Class Shares	7.47%	18.84%	11.81%	6.06%
Russell 2000 Index	8.27%	20.74%	17.08%	9.90%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

108 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 77.4%
Financial - 19.5%
Starwood Waypoint Homes REIT		3,167	$	115,183
MGIC Investment Corp.*		9,175		114,962
Gramercy Property Trust REIT		3,749		113,407
Wintrust Financial Corp.		1,375		107,675
Umpqua Holdings Corp.		5,489		107,089
Texas Capital Bancshares, Inc.*		1,235		105,962
IBERIABANK Corp.		1,253		102,933
Hancock Holding Co.		2,089		101,211
Radian Group, Inc.		5,369		100,346
Home BancShares, Inc.		3,902		98,409
Healthcare Realty Trust, Inc. REIT		3,040		98,314
CNO Financial Group, Inc.		4,184		97,654
Cousins Properties, Inc. REIT		10,360		96,762
RLJ Lodging Trust REIT		4,204		92,494
United Bankshares, Inc.		2,479		92,094
Primerica, Inc.		1,129		92,069
Chemical Financial Corp.		1,756		91,768
MB Financial, Inc.		2,008		90,399
Sunstone Hotel Investors, Inc. REIT		5,592		89,863
First Industrial Realty Trust, Inc. REIT		2,948		88,705
Stifel Financial Corp.		1,651		88,261
Investors Bancorp, Inc.		6,425		87,636
Sabra Health Care REIT, Inc.		3,941		86,466
UMB Financial Corp.		1,122		83,577
LaSalle Hotel Properties REIT		2,820		81,836
Essent Group Ltd.*		2,016		81,647
GEO Group, Inc. REIT		3,033		81,588
Sterling Bancorp		3,266		80,506
Fulton Financial Corp.		4,249		79,668
Physicians Realty Trust REIT		4,461		79,094
Evercore, Inc. — Class A		969		77,761
Valley National Bancorp		6,400		77,119
Selective Insurance Group, Inc.		1,426		76,789
National Health Investors, Inc. REIT		984		76,053
Cathay General Bancorp		1,888		75,897
Washington Federal, Inc.		2,191		73,727
EastGroup Properties, Inc. REIT		833		73,404
Glacier Bancorp, Inc.		1,939		73,216
First Financial Bankshares, Inc.		1,572		71,053
Ellie Mae, Inc.*		839		68,907
First Citizens BancShares, Inc. — Class A		184		68,796
Ryman Hospitality Properties, Inc. REIT		1,096		68,489
BancorpSouth, Inc.		2,132		68,331
Community Bank System, Inc.		1,216		67,184
Education Realty Trust, Inc. REIT		1,822		65,464
PS Business Parks, Inc. REIT		490		65,415
South State Corp.		716		64,476
STAG Industrial, Inc. REIT		2,301		63,208
Washington Real Estate Investment Trust REIT		1,913		62,670
American Equity Investment Life Holding Co.		2,144		62,347
QTS Realty Trust, Inc. — Class A REIT		1,186		62,099
Enstar Group Ltd.*		279		62,036
CVB Financial Corp.		2,565		61,996
Pebblebrook Hotel Trust REIT1		1,706		61,655
Old National Bancorp		3,329		60,921
Columbia Banking System, Inc.		1,442		60,723
Great Western Bancorp, Inc.		1,467		60,558
WageWorks, Inc.*		985		59,790
Blackhawk Network Holdings, Inc.*		1,355		59,349
First Midwest Bancorp, Inc.		2,530		59,253
Acadia Realty Trust REIT		2,055		58,814
Urban Edge Properties REIT		2,420		58,370
Hope Bancorp, Inc.		3,215		56,938
Xenia Hotels & Resorts, Inc. REIT		2,667		56,140
Trustmark Corp.		1,672		55,377
Lexington Realty Trust REIT		5,367		54,851
RLI Corp.		955		54,779
International Bancshares Corp.		1,357		54,416
DiamondRock Hospitality Co. REIT		4,956		54,268
Alexander & Baldwin, Inc.		1,157		53,603
Mack-Cali Realty Corp. REIT		2,243		53,182
Eagle Bancorp, Inc.*		781		52,366
Kemper Corp.		982		52,046
Potlatch Corp. REIT		1,002		51,102
Retail Opportunity Investments Corp. REIT		2,683		51,004
Financial Engines, Inc.		1,450		50,388
United Community Banks, Inc.		1,753		50,031
Rexford Industrial Realty, Inc. REIT		1,748		50,028
Banner Corp.		816		50,004
Astoria Financial Corp.		2,305		49,558
Independent Bank Corp.		661		49,344
Bank of NT Butterfield & Son Ltd.		1,333		48,841
LendingClub Corp.*		7,879		47,983
Genworth Financial, Inc. — Class A*		12,457		47,959
Invesco Mortgage Capital, Inc. REIT		2,786		47,724
Apollo Commercial Real Estate Finance, Inc. REIT		2,622		47,484
Hilltop Holdings, Inc.		1,816		47,216
TowneBank		1,401		46,934
Capitol Federal Financial, Inc.		3,183		46,790
LegacyTexas Financial Group, Inc.		1,171		46,746
Terreno Realty Corp. REIT		1,272		46,021
Renasant Corp.		1,070		45,903
LTC Properties, Inc. REIT		975		45,806
Simmons First National Corp. — Class A		769		44,525
ServisFirst Bancshares, Inc.		1,146		44,522
Argo Group International Holdings Ltd.		718		44,157
Government Properties Income Trust REIT		2,343		43,978
First Merchants Corp.		1,015		43,574
Ameris Bancorp		900		43,200
WesBanco, Inc.		1,043		42,784
BofI Holding, Inc.*,1		1,486		42,306
FCB Financial Holdings, Inc. — Class A*		872		42,118
Kite Realty Group Trust REIT		2,052		41,553
Summit Hotel Properties, Inc. REIT		2,569		41,078
Provident Financial Services, Inc.		1,528		40,752
Northwest Bancshares, Inc.		2,345		40,498
Waddell & Reed Financial, Inc. — Class A		2,013		40,401

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
First Financial Bancorp		1,527	$	39,931
Horace Mann Educators Corp.		1,013		39,862
American Assets Trust, Inc. REIT		1,001		39,810
Chesapeake Lodging Trust REIT		1,466		39,538
NBT Bancorp, Inc.		1,057		38,813
Washington Prime Group, Inc. REIT		4,621		38,493
Berkshire Hills Bancorp, Inc.		990		38,363
Kennedy-Wilson Holdings, Inc.		2,062		38,249
Four Corners Property Trust, Inc. REIT		1,528		38,078
Union Bankshares Corp.		1,069		37,736
Westamerica Bancorporation		631		37,570
Select Income REIT		1,569		36,746
Pacific Premier Bancorp, Inc.*		971		36,655
WSFS Financial Corp.		749		36,514
Global Net Lease, Inc. REIT		1,659		36,316
Quality Care Properties, Inc. REIT*		2,342		36,301
Walker & Dunlop, Inc.*		688		36,003
HFF, Inc. — Class A		910		36,000
Artisan Partners Asset Management, Inc. — Class A		1,103		35,958
Employers Holdings, Inc.		788		35,815
CenterState Bank Corp.		1,336		35,805
Park National Corp.		331		35,745
CareTrust REIT, Inc.		1,868		35,567
CBL & Associates Properties, Inc. REIT1		4,177		35,045
Boston Private Financial Holdings, Inc.		2,066		34,192
First Commonwealth Financial Corp.		2,397		33,870
S&T Bancorp, Inc.		852		33,722
Agree Realty Corp. REIT		687		33,718
Moelis & Co. — Class A		774		33,321
PRA Group, Inc.*		1,138		32,604
CYS Investments, Inc. REIT		3,753		32,426
Kearny Financial Corp.		2,104		32,296
Tompkins Financial Corp.		363		31,269
Redwood Trust, Inc. REIT		1,898		30,918
Heartland Financial USA, Inc.		608		30,035
Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		1,224		29,829
Navigators Group, Inc.		510		29,759
Third Point Reinsurance Ltd.*		1,902		29,671
Capital Bank Financial Corp. — Class A		720		29,556
First Busey Corp.		940		29,478
Lakeland Financial Corp.		599		29,183
WisdomTree Investments, Inc.1		2,857		29,084
Brookline Bancorp, Inc.		1,860		28,830
Seritage Growth Properties REIT1		622		28,656
Beneficial Bancorp, Inc.		1,715		28,469
AmTrust Financial Services, Inc.		2,113		28,441
PennyMac Mortgage Investment Trust REIT		1,635		28,433
RE/MAX Holdings, Inc. — Class A		441		28,026
OM Asset Management plc		1,867		27,856
Monmouth Real Estate Investment Corp. REIT		1,719		27,831
Safety Insurance Group, Inc.		362		27,621
AMERISAFE, Inc.		473		27,529
Franklin Street Properties Corp. REIT		2,590		27,506
ARMOUR Residential REIT, Inc.		1,016		27,330
City Holding Co.		376		27,038
MBIA, Inc.*		3,106		27,022
State Bank Financial Corp.		929		26,616
National Storage Affiliates Trust REIT		1,098		26,616
Encore Capital Group, Inc.*		595		26,359
Independent Bank Group, Inc.		437		26,351
Aircastle Ltd.		1,179		26,280
FNFV Group*		1,531		26,257
Ladder Capital Corp. — Class A REIT		1,891		26,058
Ramco-Gershenson Properties Trust REIT		1,948		25,343
Seacoast Banking Corporation of Florida*		1,057		25,252
Infinity Property & Casualty Corp.		267		25,151
Nelnet, Inc. — Class A		494		24,947
Southside Bancshares, Inc.		686		24,943
First Interstate BancSystem, Inc. — Class A		645		24,671
First BanCorp*		4,759		24,366
United Fire Group, Inc.		531		24,330
Houlihan Lokey, Inc.		620		24,261
Sandy Spring Bancorp, Inc.		584		24,201
Hanmi Financial Corp.		781		24,172
Parkway, Inc. REIT		1,049		24,158
Central Pacific Financial Corp.		738		23,749
Universal Health Realty Income Trust REIT		314		23,704
Enterprise Financial Services Corp.		558		23,631
BancFirst Corp.		416		23,608
InfraREIT, Inc.		1,052		23,533
National General Holdings Corp.		1,216		23,238
James River Group Holdings Ltd.		557		23,104
United Financial Bancorp, Inc.		1,253		22,917
Tier REIT, Inc.		1,182		22,813
Capstead Mortgage Corp. REIT		2,363		22,803
Customers Bancorp, Inc.*		698		22,769
Lakeland Bancorp, Inc.		1,112		22,685
St. Joe Co.*		1,193		22,488
Alexander’s, Inc. REIT		53		22,477
Banc of California, Inc.1		1,077		22,348
Meridian Bancorp, Inc.		1,186		22,119
MTGE Investment Corp. REIT		1,134		22,000
National Bank Holdings Corp. — Class A		616		21,985
MainSource Financial Group, Inc.		612		21,946
Getty Realty Corp. REIT		767		21,944
Heritage Financial Corp.		729		21,506
OceanFirst Financial Corp.		781		21,470
Washington Trust Bancorp, Inc.		371		21,240
Piper Jaffray Cos.		356		21,129
Cohen & Steers, Inc.		529		20,890
First Bancorp1		606		20,852
TriCo Bancshares		506		20,620
Univest Corporation of Pennsylvania		643		20,576
Stock Yards Bancorp, Inc.		541		20,558
Flushing Financial Corp.		688		20,447
Chatham Lodging Trust REIT		957		20,403
TrustCo Bank Corp. NY		2,289		20,372
iStar, Inc. REIT*		1,725		20,355
1st Source Corp.		399		20,269

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
German American Bancorp, Inc.		525	$	19,966
Stewart Information Services Corp.		522		19,711
National Western Life Group, Inc. — Class A		56		19,544
Preferred Bank/Los Angeles CA		322		19,433
Ambac Financial Group, Inc.*		1,125		19,418
Virtus Investment Partners, Inc.		166		19,264
Easterly Government Properties, Inc. REIT		921		19,037
Flagstar Bancorp, Inc.*		528		18,733
New Senior Investment Group, Inc. REIT		2,034		18,611
CoBiz Financial, Inc.		943		18,521
Northfield Bancorp, Inc.		1,066		18,495
ConnectOne Bancorp, Inc.		748		18,401
FBL Financial Group, Inc. — Class A		245		18,253
Investors Real Estate Trust REIT		2,987		18,251
PHH Corp.*		1,308		18,220
Bryn Mawr Bank Corp.		415		18,177
Universal Insurance Holdings, Inc.		785		18,055
Investment Technology Group, Inc.		814		18,022
Hersha Hospitality Trust REIT		961		17,942
Pennsylvania Real Estate Investment Trust REIT		1,696		17,791
Community Trust Bancorp, Inc.		381		17,717
First of Long Island Corp.		579		17,631
NMI Holdings, Inc. — Class A*		1,412		17,509
Independence Realty Trust, Inc. REIT		1,720		17,492
Meta Financial Group, Inc.		222		17,405
NorthStar Realty Europe Corp. REIT		1,349		17,281
PJT Partners, Inc. — Class A		448		17,163
Cass Information Systems, Inc.		270		17,129
Saul Centers, Inc. REIT		276		17,087
New York Mortgage Trust, Inc. REIT		2,761		16,980
Dime Community Bancshares, Inc.		785		16,878
Diamond Hill Investment Group, Inc.		79		16,776
Camden National Corp.		379		16,540
Oritani Financial Corp.		980		16,464
HomeStreet, Inc.*		609		16,443
Guaranty Bancorp		582		16,180
Greenlight Capital Re Ltd. — Class A*		747		16,173
First Potomac Realty Trust REIT		1,439		16,030
Urstadt Biddle Properties, Inc. — Class A REIT		732		15,884
Park Sterling Corp.		1,278		15,873
CU Bancorp*		409		15,859
Federal Agricultural Mortgage Corp. — Class C		218		15,857
Bridge Bancorp, Inc.		467		15,855
Kinsale Capital Group, Inc.		358		15,455
Horizon Bancorp		528		15,402
State National Companies, Inc.		730		15,323
Armada Hoffler Properties, Inc. REIT		1,108		15,301
Preferred Apartment Communities, Inc. — Class A REIT		804		15,180
Gladstone Commercial Corp. REIT		676		15,055
Great Southern Bancorp, Inc.		269		14,970
Trupanion, Inc.*,1		556		14,684
Pacific Continental Corp.		537		14,472
International. FCStone, Inc.*		375		14,370
Peapack Gladstone Financial Corp.		422		14,238
Maiden Holdings Ltd.		1,776		14,119
Anworth Mortgage Asset Corp. REIT		2,348		14,111
Triumph Bancorp, Inc.*		434		13,997
Mercantile Bank Corp.		399		13,925
Peoples Bancorp, Inc.		407		13,671
Altisource Residential Corp. REIT		1,229		13,654
QCR Holdings, Inc.		300		13,650
Westwood Holdings Group, Inc.		201		13,521
Nationstar Mortgage Holdings, Inc.*		725		13,463
Forestar Group, Inc.*		836		13,259
Live Oak Bancshares, Inc.		563		13,202
AG Mortgage Investment Trust, Inc. REIT		682		13,122
First Foundation, Inc.*		722		12,917
First Defiance Financial Corp.		246		12,913
Carolina Financial Corp.		357		12,809
Heritage Commerce Corp.		897		12,764
Fidelity Southern Corp.		539		12,742
Ashford Hospitality Trust, Inc. REIT		1,905		12,706
TriState Capital Holdings, Inc.*		553		12,664
Nicolet Bankshares, Inc.*		219		12,599
Green Bancorp, Inc.*		528		12,487
First Financial Corp.		262		12,471
Waterstone Financial, Inc.		633		12,344
Opus Bank*		514		12,336
FB Financial Corp.*		323		12,184
Midland States Bancorp, Inc.		384		12,165
National Commerce Corp.*		283		12,112
World Acceptance Corp.*,1		146		12,102
CatchMark Timber Trust, Inc. — Class A REIT		959		12,093
Southwest Bancorp, Inc.		438		12,067
Whitestone REIT — Class B REIT		923		12,045
First Community Bancshares, Inc.		411		11,964
Bar Harbor Bankshares		373		11,697
United Community Financial Corp.		1,213		11,645
UMH Properties, Inc. REIT		748		11,631
Cedar Realty Trust, Inc. REIT		2,047		11,504
Community Healthcare Trust, Inc. REIT		426		11,485
Cowen, Inc. — Class A*		642		11,428
Independent Bank Corp.		503		11,393
Blue Hills Bancorp, Inc.		590		11,328
Greenhill & Company, Inc.		679		11,271
Republic First Bancorp, Inc.*		1,207		11,165
Enova International, Inc.*		819		11,016
Orchid Island Capital, Inc. REIT		1,073		10,934
People’s Utah Bancorp		335		10,871
Veritex Holdings, Inc.*		401		10,811
Marcus & Millichap, Inc.*		397		10,715
Bank Mutual Corp.		1,051		10,668
Western Asset Mortgage Capital Corp. REIT		1,012		10,596
HomeTrust Bancshares, Inc.*		413		10,593
Access National Corp.		368		10,547
Allegiance Bancshares, Inc.*		284		10,451

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
CorEnergy Infrastructure Trust, Inc. REIT		295	$	10,428
Franklin Financial Network, Inc.*		292		10,410
State Auto Financial Corp.		394		10,335
Financial Institutions, Inc.		358		10,310
Bank of Marin Bancorp		148		10,138
NexPoint Residential Trust, Inc. REIT		426		10,109
City Office REIT, Inc.		732		10,080
Arrow Financial Corp.		293		10,075
Bancorp, Inc.*		1,218		10,073
CNB Financial Corp.		366		9,999
Virtu Financial, Inc. — Class A1		611		9,898
OFG Bancorp		1,072		9,809
Old Second Bancorp, Inc.		717		9,644
West Bancorporation, Inc.		393		9,589
First Mid-Illinois Bancshares, Inc.		249		9,562
Equity Bancshares, Inc. — Class A*		264		9,393
Farmers National Banc Corp.		624		9,391
Atlantic Capital Bancshares, Inc.*		517		9,384
Hamilton Lane, Inc. — Class A		349		9,371
First Connecticut Bancorp, Inc.		349		9,336
MidWestOne Financial Group, Inc.		276		9,318
Republic Bancorp, Inc. — Class A		239		9,295
R1 RCM, Inc.*		2,484		9,216
eHealth, Inc.*		385		9,198
Southern National Bancorp of Virginia, Inc.		531		9,022
Ocwen Financial Corp.*		2,621		9,016
NewStar Financial, Inc.		764		8,969
RMR Group, Inc. — Class A		174		8,935
Ares Commercial Real Estate Corp. REIT		664		8,838
WashingtonFirst Bankshares, Inc.		248		8,826
Fidelity & Guaranty Life		283		8,787
One Liberty Properties, Inc. REIT		357		8,697
Global Indemnity Ltd*		205		8,692
Heritage Insurance Holdings, Inc.1		644		8,507
Enterprise Bancorp, Inc.		234		8,497
Citizens, Inc.*		1,154		8,482
PCSB Financial Corp.*		448		8,449
MedEquities Realty Trust, Inc. REIT		710		8,343
American National Bankshares, Inc.		202		8,322
United Insurance Holdings Corp.		510		8,313
Dynex Capital, Inc. REIT		1,143		8,310
Sierra Bancorp		303		8,226
Clifton Bancorp, Inc.		491		8,210
Peoples Financial Services Corp.		170		8,126
Resource Capital Corp. REIT		748		8,063
Farmers & Merchants Bancorp Incorporated/Archbold OH		220		8,019
First Bancorp, Inc.		253		7,668
Farmers Capital Bank Corp.		182		7,653
HCI Group, Inc.		199		7,612
National Bankshares, Inc.		168		7,552
Western New England Bancorp, Inc.		685		7,467
FRP Holdings, Inc.*		162		7,331
Arlington Asset Investment Corp. — Class A		573		7,294
Ladenburg Thalmann Financial Services, Inc.		2,518		7,252
Farmland Partners, Inc. REIT		802		7,250
Altisource Portfolio Solutions S.A.*		278		7,192
Citizens & Northern Corp.		291		7,147
PennyMac Financial Services, Inc. — Class A*		394		7,013
Summit Financial Group, Inc.		269		6,903
Sutherland Asset Management Corp. REIT		436		6,845
Jernigan Capital, Inc. REIT		327		6,720
Safeguard Scientifics, Inc.*		502		6,701
Redfin Corp.*		266		6,674
Sun Bancorp, Inc.		266		6,610
Macatawa Bank Corp.		643		6,597
Capital City Bank Group, Inc.		274		6,579
Investors Title Co.		36		6,447
First Bancshares, Inc.		210		6,332
Ames National Corp.		212		6,328
Bluerock Residential Growth REIT, Inc.		569		6,293
Marlin Business Services Corp.		218		6,268
Ashford Hospitality Prime, Inc. REIT		657		6,242
BSB Bancorp, Inc.*		207		6,200
Codorus Valley Bancorp, Inc.		201		6,173
Southern Missouri Bancorp, Inc.		168		6,130
Regional Management Corp.*		253		6,125
EMC Insurance Group, Inc.		217		6,109
Hingham Institution for Savings		32		6,089
Home Bancorp, Inc.		145		6,064
HarborOne Bancorp, Inc.*		322		6,057
Territorial Bancorp, Inc.		191		6,030
Southern First Bancshares, Inc.*		164		5,961
Old Line Bancshares, Inc.		211		5,908
Paragon Commercial Corp.*		104		5,872
Northrim BanCorp, Inc.		168		5,872
MutualFirst Financial, Inc.		152		5,844
Consolidated-Tomoka Land Co.		97		5,827
Century Bancorp, Inc. — Class A		72		5,767
GAIN Capital Holdings, Inc.		896		5,725
On Deck Capital, Inc.*		1,222		5,707
Charter Financial Corp.		305		5,652
BankFinancial Corp.		354		5,625
KKR Real Estate Finance Trust, Inc.1		264		5,555
Bankwell Financial Group, Inc.		149		5,504
Civista Bancshares, Inc.		246		5,496
Great Ajax Corp. REIT		389		5,481
Central Valley Community Bancorp		245		5,464
TPG RE Finance Trust, Inc. REIT		275		5,437
Penns Woods Bancorp, Inc.		114		5,298
Bear State Financial, Inc.		514		5,274
Cherry Hill Mortgage Investment Corp. REIT		291		5,267
Baldwin & Lyons, Inc. — Class B		231		5,209
Shore Bancshares, Inc.		310		5,162
Premier Financial Bancorp, Inc.		233		5,077
Cadence BanCorp*		216		4,951
First Internet Bancorp		153		4,942

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Atlas Financial Holdings, Inc.*		261	$	4,933
Evans Bancorp, Inc.		114		4,925
Community Bankers Trust Corp.*		532		4,894
Investar Holding Corp.		202		4,868
MBT Financial Corp.		442		4,840
Timberland Bancorp, Inc.		154		4,826
Safety Income and Growth, Inc. REIT		257		4,790
Northeast Bancorp		180		4,707
Granite Point Mortgage Trust, Inc. REIT		250		4,683
Union Bankshares, Inc.		96		4,646
First Business Financial Services, Inc.		204		4,641
LCNB Corp.		220		4,609
Orrstown Financial Services, Inc.		184		4,582
Federated National Holding Co.		293		4,574
NI Holdings, Inc.*		255		4,565
Pzena Investment Management, Inc. — Class A		419		4,563
Howard Bancorp, Inc.*		218	��	4,556
WMIH Corp.*		4,794		4,554
Owens Realty Mortgage, Inc. REIT		248		4,516
C&F Financial Corp.		81		4,455
Riverview Bancorp, Inc.		530		4,452
FNB Bancorp		131		4,444
Associated Capital Group, Inc. — Class A		124		4,427
Stratus Properties, Inc.		146		4,424
Bank of Commerce Holdings		384		4,416
MidSouth Bancorp, Inc.		361		4,350
Norwood Financial Corp.		143		4,349
SmartFinancial, Inc.*		177		4,259
First Northwest Bancorp*		249		4,258
Malvern Bancorp, Inc.*		159		4,253
Sunshine Bancorp, Inc.*		183		4,253
Health Insurance Innovations, Inc. — Class A*		292		4,234
Oppenheimer Holdings, Inc. — Class A		243		4,216
Capstar Financial Holdings, Inc.*		213		4,171
SI Financial Group, Inc.		278		4,156
Xenith Bankshares, Inc.*		127		4,128
ACNB Corp.		148		4,100
Global Medical REIT, Inc.		450		4,041
Commerce Union Bancshares, Inc.		172		3,987
Clipper Realty, Inc. REIT		370		3,963
Entegra Financial Corp.*		156		3,892
Hallmark Financial Services, Inc.*		335		3,889
Tiptree, Inc. — Class A		619		3,869
Unity Bancorp, Inc.		191		3,782
Independence Holding Co.		149		3,762
Peoples Bancorp of North Carolina, Inc.		105		3,740
Prudential Bancorp, Inc.		201		3,725
Chemung Financial Corp.		79		3,721
Ohio Valley Banc Corp.		101		3,676
Kingstone Companies, Inc.		225		3,668
Crawford & Co. — Class B		296		3,540
Two River Bancorp		178		3,528
Donegal Group, Inc. — Class A		218		3,516
Pacific Mercantile Bancorp*		383		3,504
First Financial Northwest, Inc.		206		3,500
Byline Bancorp, Inc.*		164		3,487
County Bancorp, Inc.		116		3,486
Community Financial Corp.		98		3,466
ESSA Bancorp, Inc.		220		3,454
GAMCO Investors, Inc. — Class A		113		3,363
BCB Bancorp, Inc.		235		3,278
Ellington Residential Mortgage REIT		224		3,252
Parke Bancorp, Inc.		144		3,197
ASB Bancorp, Inc.*		70		3,157
Trinity Place Holdings, Inc.*		449		3,152
Impac Mortgage Holdings, Inc.*		240		3,134
United Security Bancshares		323		3,069
Middlefield Banc Corp.		65		2,997
Provident Financial Holdings, Inc.		149		2,920
Old Point Financial Corp.		90		2,916
DNB Financial Corp.		77		2,710
First Guaranty Bancshares, Inc.		97		2,613
Silvercrest Asset Management Group, Inc. — Class A		177		2,575
Provident Bancorp, Inc.*		109		2,523
Blue Capital Reinsurance Holdings Ltd.		146		2,402
Maui Land & Pineapple Company, Inc.*		166		2,316
Greene County Bancorp, Inc.		75		2,254
Elevate Credit, Inc.*		357		2,181
RBB Bancorp*		94		2,152
RAIT Financial Trust REIT		2,275		1,661
Guaranty Bancshares, Inc.		51		1,631
Transcontinental Realty Investors, Inc.*		42		1,142
California First National Bancorp		55		996
Oconee Federal Financial Corp.		31		869
Medley Management, Inc. — Class A		134		824
Fifth Street Asset Management, Inc.		175		683
Griffin Industrial Realty, Inc.		17		618
Total Financial				12,854,698
Consumer, Non-cyclical - 16.8%
Kite Pharma, Inc.*		1,211		217,751
Bluebird Bio, Inc.*		1,132		155,481
Exact Sciences Corp.*		2,913		137,262
Catalent, Inc.*,1		3,117		124,430
HealthSouth Corp.		2,440		113,093
PAREXEL International Corp.*		1,246		109,748
Grand Canyon Education, Inc.*		1,162		105,533
Masimo Corp.*		1,111		96,167
Brink’s Co.		1,136		95,708
Healthcare Services Group, Inc.1		1,765		95,257
PRA Health Sciences, Inc.*		1,211		92,241
Clovis Oncology, Inc.*		1,088		89,650
FibroGen, Inc.*		1,641		88,286
Nektar Therapeutics*		3,671		88,103
Deluxe Corp.		1,201		87,625
Puma Biotechnology, Inc.*		712		85,262
Cantel Medical Corp.		901		84,846
LivaNova plc*		1,203		84,281
Snyder’s-Lance, Inc.		2,132		81,313
Sanderson Farms, Inc.		499		80,598

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Integra LifeSciences Holdings Corp.*		1,576	$	79,555
Insulet Corp.*		1,440		79,315
Chemed Corp.		390		78,800
Molina Healthcare, Inc.*		1,091		75,017
Portola Pharmaceuticals, Inc.*		1,367		73,858
Darling Ingredients, Inc.*		4,067		71,254
Neogen Corp.*		919		71,185
Incorporated Research Holdings, Inc. — Class A*		1,353		70,762
Avis Budget Group, Inc.*		1,856		70,639
NuVasive, Inc.*		1,258		69,769
ICU Medical, Inc.*		373		69,322
Ligand Pharmaceuticals, Inc. — Class B*		508		69,164
Aaron’s, Inc.		1,570		68,499
On Assignment, Inc.*		1,258		67,529
Blueprint Medicines Corp.*		962		67,023
Wright Medical Group N.V.*		2,590		67,003
Sarepta Therapeutics, Inc.*		1,466		66,498
Prestige Brands Holdings, Inc.*		1,321		66,169
Penumbra, Inc.*		726		65,558
Helen of Troy Ltd.*		675		65,408
Medicines Co.*		1,709		63,301
HealthEquity, Inc.*		1,234		62,416
Nevro Corp.*		686		62,344
Amicus Therapeutics, Inc.*,1		4,093		61,722
Prothena Corporation plc*,1		951		61,596
Cimpress N.V.*		619		60,452
Avexis, Inc.*		619		59,876
Performance Food Group Co.*		2,114		59,721
Spark Therapeutics, Inc.*		661		58,935
Haemonetics Corp.*		1,298		58,241
ABM Industries, Inc.		1,385		57,768
Myriad Genetics, Inc.*		1,591		57,562
Insmed, Inc.*		1,840		57,426
Green Dot Corp. — Class A*		1,132		56,125
Lancaster Colony Corp.		466		55,976
Adtalem Global Education, Inc.		1,542		55,281
Advisory Board Co.*		1,001		53,679
AMN Healthcare Services, Inc.*		1,169		53,423
Sage Therapeutics, Inc.*		856		53,329
Ironwood Pharmaceuticals, Inc. — Class A*		3,335		52,593
Array BioPharma, Inc.*		4,274		52,570
United Natural Foods, Inc.*		1,257		52,279
Ultragenyx Pharmaceutical, Inc.*		980		52,195
Halyard Health, Inc.*		1,158		52,145
Loxo Oncology, Inc.*		566		52,140
Globus Medical, Inc. — Class A*		1,747		51,921
B&G Foods, Inc.1		1,628		51,852
Halozyme Therapeutics, Inc.*		2,956		51,346
Horizon Pharma plc*		4,044		51,278
Select Medical Holdings Corp.*		2,660		51,072
Merit Medical Systems, Inc.*		1,205		51,032
Magellan Health, Inc.*		589		50,831
Korn/Ferry International		1,268		49,997
Vector Group Ltd.		2,432		49,783
J&J Snack Foods Corp.		373		48,975
Travelport Worldwide Ltd.		3,076		48,293
Matthews International Corp. — Class A		775		48,244
Supernus Pharmaceuticals, Inc.*		1,173		46,920
NxStage Medical, Inc.*		1,608		44,381
Cambrex Corp.*		805		44,275
Teladoc, Inc.*,1		1,333		44,189
Monro, Inc.1		786		44,055
Owens & Minor, Inc.		1,506		43,975
Corcept Therapeutics, Inc.*		2,258		43,579
Sotheby’s*		944		43,528
HMS Holdings Corp.*		2,078		41,269
NutriSystem, Inc.		736		41,142
Inogen, Inc.*		422		40,132
Insperity, Inc.		449		39,512
Aerie Pharmaceuticals, Inc.*		813		39,512
Amedisys, Inc.*		706		39,508
Integer Holdings Corp.*		768		39,283
LendingTree, Inc.*,1		158		38,623
WD-40 Co.		342		38,270
Bob Evans Farms, Inc.		491		38,057
Tivity Health, Inc.*		905		36,924
Impax Laboratories, Inc.*		1,818		36,905
Pacira Pharmaceuticals, Inc.*		973		36,536
Fresh Del Monte Produce, Inc.		803		36,504
National Beverage Corp.		291		36,098
CONMED Corp.1		680		35,680
Repligen Corp.*		930		35,638
Radius Health, Inc.*,1		922		35,543
Theravance Biopharma, Inc.*		1,034		35,404
Immunomedics, Inc.*		2,532		35,397
Universal Corp.		613		35,125
FTI Consulting, Inc.*		976		34,628
TriNet Group, Inc.*		1,025		34,461
Momenta Pharmaceuticals, Inc.*		1,819		33,652
Emergent BioSolutions, Inc.*		830		33,574
Boston Beer Company, Inc. — Class A*		212		33,114
Tenet Healthcare Corp.*,1		2,014		33,090
Central Garden & Pet Co. — Class A*		874		32,504
Dynavax Technologies Corp.*		1,508		32,422
ACCO Brands Corp.*		2,679		31,880
Cal-Maine Foods, Inc.*,1		770		31,647
Varex Imaging Corp.*		933		31,573
OraSure Technologies, Inc.*		1,402		31,545
Paylocity Holding Corp.*		644		31,440
MiMedx Group, Inc.*,1		2,601		30,900
Sangamo Therapeutics, Inc.*		2,054		30,810
Viad Corp.		501		30,511
Hertz Global Holdings, Inc.*,1		1,356		30,320
Weight Watchers International, Inc.*		693		30,180
Quidel Corp.*		687		30,132
Natus Medical, Inc.*		803		30,113
Acceleron Pharma, Inc.*		794		29,632
Herc Holdings, Inc.*		600		29,478
Calavo Growers, Inc.		397		29,060
Novocure Ltd.*,1		1,430		28,386

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Global Blood Therapeutics, Inc.*		914	$	28,380
LHC Group, Inc.*		390		27,659
Five Prime Therapeutics, Inc.*		673		27,532
Spectrum Pharmaceuticals, Inc.*		1,929		27,141
Hostess Brands, Inc.*		1,983		27,088
Ensign Group, Inc.		1,193		26,950
Innoviva, Inc.*		1,880		26,546
Analogic Corp.		311		26,046
Cardtronics plc — Class A*		1,129		25,978
Dermira, Inc.*		944		25,488
Acorda Therapeutics, Inc.*		1,073		25,376
McGrath RentCorp		580		25,375
Coca-Cola Bottling Company Consolidated		117		25,243
Arena Pharmaceuticals, Inc.*		974		24,837
SpartanNash Co.		930		24,524
Dean Foods Co.		2,252		24,502
Diplomat Pharmacy, Inc.*		1,183		24,500
Abaxis, Inc.		543		24,245
ICF International, Inc.*		444		23,954
Omeros Corp.*		1,102		23,825
EVERTEC, Inc.		1,499		23,759
Retrophin, Inc.*		947		23,571
Atrion Corp.		35		23,520
Glaukos Corp.*		709		23,397
TrueBlue, Inc.*		1,027		23,056
BioTelemetry, Inc.*		696		22,968
Strayer Education, Inc.		263		22,952
Andersons, Inc.		668		22,879
Alarm.com Holdings, Inc.*		503		22,726
REGENXBIO, Inc.*		682		22,472
Cardiovascular Systems, Inc.*		791		22,267
Akebia Therapeutics, Inc.*		1,109		21,814
K2M Group Holdings, Inc.*		1,021		21,655
PharMerica Corp.*		738		21,623
Aimmune Therapeutics, Inc.*		872		21,617
Xencor, Inc.*		943		21,614
Zogenix, Inc.*		614		21,521
Esperion Therapeutics, Inc.*		420		21,050
SUPERVALU, Inc.*		950		20,663
Anika Therapeutics, Inc.*		356		20,648
CBIZ, Inc.*		1,267		20,589
Luminex Corp.		1,010		20,533
TherapeuticsMD, Inc.*,1		3,866		20,451
MyoKardia, Inc.*		476		20,397
Orthofix International N.V.*		426		20,129
Editas Medicine, Inc.*		837		20,096
Intersect ENT, Inc.*		643		20,029
Capella Education Co.		285		19,993
ZIOPHARM Oncology, Inc.*		3,254		19,980
Navigant Consulting, Inc.*		1,168		19,763
Vanda Pharmaceuticals, Inc.*		1,091		19,529
Epizyme, Inc.*		1,022		19,469
MGP Ingredients, Inc.		320		19,402
Alder Biopharmaceuticals, Inc.*		1,570		19,233
Kelly Services, Inc. — Class A		756		18,968
Huron Consulting Group, Inc.*		543		18,625
US Physical Therapy, Inc.		300		18,435
Heron Therapeutics, Inc.*,1		1,125		18,169
Community Health Systems, Inc.*		2,357		18,102
CryoLife, Inc.*		796		18,069
Enanta Pharmaceuticals, Inc.*		384		17,971
RR Donnelley & Sons Co.		1,738		17,901
AtriCure, Inc.*		795		17,784
iRhythm Technologies, Inc.*		342		17,743
Inter Parfums, Inc.		428		17,655
Quad/Graphics, Inc.		777		17,568
Career Education Corp.*		1,676		17,414
National Healthcare Corp.		278		17,394
Phibro Animal Health Corp. — Class A		469		17,376
SP Plus Corp.*		431		17,025
Almost Family, Inc.*		316		16,969
Flexion Therapeutics, Inc.*		687		16,612
USANA Health Sciences, Inc.*		287		16,560
Synergy Pharmaceuticals, Inc.*,1		5,617		16,289
Amphastar Pharmaceuticals, Inc.*		899		16,065
AMAG Pharmaceuticals, Inc.*		869		16,033
ImmunoGen, Inc.*		2,085		15,950
PTC Therapeutics, Inc.*		797		15,948
Tootsie Roll Industries, Inc.		419		15,922
Keryx Biopharmaceuticals, Inc.*,1		2,218		15,748
Genomic Health, Inc.*		489		15,692
Medifast, Inc.		262		15,555
MacroGenics, Inc.*		840		15,523
AngioDynamics, Inc.*		905		15,466
NeoGenomics, Inc.*		1,382		15,382
Providence Service Corp.*		284		15,359
Revance Therapeutics, Inc.*		556		15,318
Ignyta, Inc.*		1,238		15,289
Landauer, Inc.		225		15,143
La Jolla Pharmaceutical Co.*		433		15,060
K12, Inc.*		844		15,057
Cytokinetics, Inc.*		1,029		14,921
RPX Corp.*		1,119		14,860
Paratek Pharmaceuticals, Inc.*		590		14,809
Meridian Bioscience, Inc.		1,032		14,758
Accelerate Diagnostics, Inc.*		645		14,480
Aclaris Therapeutics, Inc.*		560		14,454
Foundation Medicine, Inc.*		359		14,432
SciClone Pharmaceuticals, Inc.*		1,286		14,403
John B Sanfilippo & Son, Inc.		212		14,270
TG Therapeutics, Inc.*		1,202		14,244
Kindred Healthcare, Inc.		2,079		14,137
Heska Corp.*		160		14,094
LeMaitre Vascular, Inc.		372		13,920
Triple-S Management Corp. — Class B*		579		13,711
LSC Communications, Inc.		828		13,670
Cutera, Inc.*		328		13,563
Achaogen, Inc.*		846		13,494
Pacific Biosciences of California, Inc.*		2,567		13,477
Lantheus Holdings, Inc.*		756		13,457
PDL BioPharma, Inc.*		3,939		13,353
Intra-Cellular Therapies, Inc.*		836		13,192

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Lexicon Pharmaceuticals, Inc.*,1		1,067	$	13,113
CytomX Therapeutics, Inc.*		720		13,082
AxoGen, Inc.*		676		13,081
Achillion Pharmaceuticals, Inc.*		2,898		13,012
Progenics Pharmaceuticals, Inc.*		1,752		12,895
Lannett Company, Inc.*,1		697		12,860
Laureate Education, Inc. — Class A*		881		12,819
Inovio Pharmaceuticals, Inc.*		2,018		12,794
Coherus Biosciences, Inc.*		950		12,683
STAAR Surgical Co.*		1,013		12,612
CorVel Corp.*		230		12,512
Cross Country Healthcare, Inc.*		877		12,480
Invacare Corp.		787		12,395
Ennis, Inc.		620		12,183
Rent-A-Center, Inc.1		1,061		12,180
Eagle Pharmaceuticals, Inc.*,1		204		12,167
GenMark Diagnostics, Inc.*		1,263		12,163
Assembly Biosciences, Inc.*		347		12,117
Everi Holdings, Inc.*		1,577		11,969
Calithera Biosciences, Inc.*		759		11,954
Kforce, Inc.		581		11,736
MoneyGram International, Inc.*		721		11,615
CAI International, Inc.*		383		11,613
e.l.f. Beauty, Inc.*,1		513		11,568
Antares Pharma, Inc.*		3,559		11,531
Textainer Group Holdings Ltd.*		672		11,525
Aduro Biotech, Inc.*		1,076		11,459
Enzo Biochem, Inc.*		1,020		10,679
Audentes Therapeutics, Inc.*		378		10,588
RadNet, Inc.*		916		10,580
ANI Pharmaceuticals, Inc.*		199		10,446
Atara Biotherapeutics, Inc.*		631		10,443
Forrester Research, Inc.		249		10,421
BioCryst Pharmaceuticals, Inc.*		1,983		10,391
AnaptysBio, Inc.*		297		10,380
Weis Markets, Inc.		237		10,310
Akcea Therapeutics, Inc.*		371		10,266
Abeona Therapeutics, Inc.*		600		10,230
Central Garden & Pet Co.*		262		10,176
Rockwell Medical, Inc.*		1,187		10,161
Iovance Biotherapeutics, Inc.*		1,309		10,145
Surmodics, Inc.*		324		10,044
Natera, Inc.*		778		10,028
Barrett Business Services, Inc.		175		9,893
Resources Connection, Inc.		709		9,855
Carriage Services, Inc. — Class A		381		9,754
Biohaven Pharmaceutical Holding Company Ltd.*		260		9,719
Team, Inc.*		725		9,679
Heidrick & Struggles International, Inc.		455		9,623
Oxford Immunotec Global plc*		560		9,408
Chefs’ Warehouse, Inc.*		486		9,380
Invitae Corp.*		992		9,295
Karyopharm Therapeutics, Inc.*		837		9,190
Omega Protein Corp.		546		9,091
Endologix, Inc.*		2,037		9,085
Cara Therapeutics, Inc.*,1		662		9,063
Emerald Expositions Events, Inc.		388		9,017
Hackett Group, Inc.		592		8,992
Ingles Markets, Inc. — Class A		349		8,969
B. Riley Financial, Inc.		524		8,934
National Research Corp. — Class A		234		8,822
Exactech, Inc.*,1		265		8,732
Intellia Therapeutics, Inc.*		351		8,722
Reata Pharmaceuticals, Inc. — Class A*		280		8,708
Tetraphase Pharmaceuticals, Inc.*		1,261		8,625
Celldex Therapeutics, Inc.*		2,997		8,571
CRA International, Inc.		207		8,497
Vectrus, Inc.*		271		8,358
American Public Education, Inc.*		392		8,252
NanoString Technologies, Inc.*		510		8,242
Depomed, Inc.*		1,413		8,181
Seres Therapeutics, Inc.*		507		8,132
Agenus, Inc.*		1,831		8,075
Accuray, Inc.*		2,017		8,068
Geron Corp.*		3,682		8,027
Novavax, Inc.*		6,973		7,949
BioScrip, Inc.*		2,877		7,912
Rigel Pharmaceuticals, Inc.*		3,111		7,902
Corbus Pharmaceuticals Holdings, Inc.*		1,097		7,844
Bellicum Pharmaceuticals, Inc.*		673		7,773
Tejon Ranch Co.*		368		7,765
Adamas Pharmaceuticals, Inc.*		363		7,685
Capital Senior Living Corp.*		608		7,630
Voyager Therapeutics, Inc.*		361		7,433
Primo Water Corp.*		627		7,430
Civitas Solutions, Inc.*		398		7,343
Kura Oncology, Inc.*		480		7,176
Revlon, Inc. — Class A*		292		7,169
Sucampo Pharmaceuticals, Inc. — Class A*,1		599		7,068
Farmer Brothers Co.*		215		7,063
Tactile Systems Technology, Inc.*,1		226		6,995
Cerus Corp.*		2,555		6,975
Limoneira Co.		299		6,928
Teligent, Inc.*		1,018		6,831
Great Lakes Dredge & Dock Corp.*		1,407		6,824
Corium International, Inc.*		603		6,681
Cadiz, Inc.*		518		6,579
Concert Pharmaceuticals, Inc.*		444		6,549
Addus HomeCare Corp.*		185		6,531
BioSpecifics Technologies Corp.*		140		6,513
ServiceSource International, Inc.*		1,877		6,494
WaVe Life Sciences Ltd.*		294		6,395
CSS Industries, Inc.		221		6,369
Selecta Biosciences, Inc.*		345		6,296
SEACOR Marine Holdings, Inc.*		402		6,287
Utah Medical Products, Inc.		85		6,252
Stemline Therapeutics, Inc.*		559		6,205
RTI Surgical, Inc.*		1,353		6,156
Aratana Therapeutics, Inc.*		1,003		6,148
Willdan Group, Inc.*		187		6,070

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Chimerix, Inc.*		1,154	$	6,059
Durect Corp.*		3,396		6,011
Seneca Foods Corp. — Class A*		174		6,003
Idera Pharmaceuticals, Inc.*		2,674		5,963
Collegium Pharmaceutical, Inc.*		561		5,885
Amplify Snack Brands, Inc.*,1		820		5,814
Medpace Holdings, Inc.*		177		5,646
Jounce Therapeutics, Inc.*,1		359		5,593
Acacia Research Corp.*		1,226		5,578
Entellus Medical, Inc.*		300		5,538
Axovant Sciences Ltd.*,1		803		5,525
NewLink Genetics Corp.*		542		5,518
Craft Brew Alliance, Inc.*		314		5,511
Organovo Holdings, Inc.*		2,482		5,510
Minerva Neurosciences, Inc.*		720		5,472
Sientra, Inc.*		354		5,452
Neos Therapeutics, Inc.*		594		5,435
BioTime, Inc.*		1,875		5,325
Insys Therapeutics, Inc.*		595		5,284
Edge Therapeutics, Inc.*		492		5,279
Care.com, Inc.*		332		5,275
MediciNova, Inc.*		823		5,243
Athersys, Inc.*		2,529		5,210
Veracyte, Inc.*		587		5,148
Neff Corp. — Class A*		200		5,000
Calyxt, Inc.*		201		4,922
Pieris Pharmaceuticals, Inc.*		851		4,902
Kindred Biosciences, Inc.*		623		4,891
Village Super Market, Inc. — Class A		197		4,874
Franklin Covey Co.*		240		4,872
G1 Therapeutics, Inc.*		195		4,854
Surgery Partners, Inc.*		467		4,833
Merrimack Pharmaceuticals, Inc.		319		4,635
Madrigal Pharmaceuticals, Inc.*		103		4,633
Ardelyx, Inc.*		827		4,631
Kala Pharmaceuticals, Inc.*		202		4,614
FONAR Corp.*		151		4,606
Syros Pharmaceuticals, Inc.*		310		4,563
ChemoCentryx, Inc.*		605		4,489
Clearside Biomedical, Inc.*		512		4,475
Catalyst Pharmaceuticals, Inc.*		1,772		4,465
Smart & Final Stores, Inc.*		566		4,443
Collectors Universe, Inc.		185		4,434
Bridgepoint Education, Inc.*		461		4,426
Immune Design Corp.*		422		4,368
ViewRay, Inc.*		757		4,360
Natural Health Trends Corp.		182		4,350
Curis, Inc.*		2,871		4,278
Ra Pharmaceuticals, Inc.*		291		4,249
Pulse Biosciences, Inc.*		226		4,206
NantKwest, Inc.*		756		4,143
Protagonist Therapeutics, Inc.*		232		4,099
ARC Document Solutions, Inc.*		990		4,049
Cempra, Inc.*		1,187		3,858
Advaxis, Inc.*		904		3,779
Anavex Life Sciences Corp.*		907		3,755
Strongbridge Biopharma plc*		543		3,747
Fate Therapeutics, Inc.*		944		3,738
Fortress Biotech, Inc.*		816		3,607
American Renal Associates Holdings, Inc.*		240		3,593
Ascent Capital Group, Inc. — Class A*		273		3,560
Trevena, Inc.*		1,389		3,542
ConforMIS, Inc.*		993		3,495
Conatus Pharmaceuticals, Inc.*		634		3,481
Cascadian Therapeutics, Inc.*		849		3,472
Ocular Therapeutix, Inc.*		558		3,448
Corvus Pharmaceuticals, Inc.*		209		3,331
Quotient Ltd.*		662		3,264
Information Services Group, Inc.*		803		3,228
Syndax Pharmaceuticals, Inc.*		266		3,112
Dova Pharmaceuticals, Inc.*		127		3,084
Athenex, Inc.*		173		3,029
Recro Pharma, Inc.*		337		3,026
Nymox Pharmaceutical Corp.*		753		2,876
Miragen Therapeutics, Inc.*		313		2,864
BG Staffing, Inc.		171		2,830
AAC Holdings, Inc.*		284		2,820
Sienna Biopharmaceuticals, Inc.*		125		2,781
Nature’s Sunshine Products, Inc.		266		2,700
Novelion Therapeutics, Inc.*		375		2,636
Alico, Inc.		77		2,630
Tocagen, Inc.*		208		2,592
Liberty Tax, Inc.		170		2,448
Zynerba Pharmaceuticals, Inc.*		282		2,358
Asterias Biotherapeutics, Inc.*		668		2,271
Otonomy, Inc.*		698		2,269
Cambium Learning Group, Inc.*		342		2,267
Mersana Therapeutics, Inc.*		125		2,161
Turning Point Brands, Inc.*		125		2,125
XBiotech, Inc.*		478		2,089
VBI Vaccines, Inc.*		537		2,067
Obalon Therapeutics, Inc.*		213		2,030
Pendrell Corp.*		296		2,022
Versartis, Inc.*		808		1,980
Viveve Medical, Inc.*		371		1,944
Matinas BioPharma Holdings, Inc.*		1,307		1,725
Aileron Therapeutics, Inc.*		126		1,686
Natural Grocers by Vitamin Cottage, Inc.*		223		1,244
Ovid therapeutics, Inc.*		125		1,071
Genesis Healthcare, Inc.*		923		1,071
vTv Therapeutics, Inc. — Class A*		176		1,052
Genocea Biosciences, Inc.*		709		1,035
Lifeway Foods, Inc.*		116		1,032
Oncocyte Corp.*		95		717
CPI Card Group, Inc.		506		597
Total Consumer, Non-cyclical				11,030,754
Industrial - 11.1%
Knight-Swift Transportation Holdings, Inc.*		3,109		129,185
Curtiss-Wright Corp.		1,095		114,471
Littelfuse, Inc.		558		109,300
Woodward, Inc.		1,320		102,444

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
EMCOR Group, Inc.		1,461	$	101,363
Louisiana-Pacific Corp.*		3,604		97,597
SYNNEX Corp.		719		90,960
Barnes Group, Inc.		1,245		87,697
Summit Materials, Inc. — Class A*		2,652		84,944
Belden, Inc.		1,043		83,992
Kennametal, Inc.		1,989		80,237
Advanced Energy Industries, Inc.*		984		79,468
John Bean Technologies Corp.		778		78,656
Tech Data Corp.*		869		77,211
MasTec, Inc.*		1,650		76,560
EnerSys		1,081		74,773
Trinseo S.A.		1,100		73,810
RBC Bearings, Inc.*		573		71,710
Generac Holdings, Inc.*		1,525		70,043
Sanmina Corp.*		1,856		68,950
Cree, Inc.*		2,420		68,220
KLX, Inc.*		1,282		67,856
Tetra Tech, Inc.		1,417		65,962
Trex Company, Inc.*		732		65,931
Moog, Inc. — Class A*		790		65,910
MSA Safety, Inc.		826		65,676
Itron, Inc.*		847		65,600
Rexnord Corp.*		2,580		65,558
Dycom Industries, Inc.*		747		64,152
Vishay Intertechnology, Inc.		3,337		62,736
Applied Industrial Technologies, Inc.		949		62,444
KBR, Inc.		3,485		62,312
II-VI, Inc.*		1,503		61,848
Hillenbrand, Inc.		1,569		60,956
Aerojet Rocketdyne Holdings, Inc.*		1,713		59,972
TopBuild Corp.*		915		59,631
Rogers Corp.*		447		59,576
GATX Corp.		957		58,913
Esterline Technologies Corp.*		649		58,507
Granite Construction, Inc.		984		57,023
Golar LNG Ltd.		2,381		53,834
Franklin Electric Company, Inc.		1,148		51,488
Worthington Industries, Inc.		1,115		51,290
Masonite International Corp.*		737		51,000
Simpson Manufacturing Company, Inc.		1,021		50,070
Mueller Industries, Inc.		1,411		49,314
Proto Labs, Inc.*		614		49,304
Mueller Water Products, Inc. — Class A		3,819		48,883
Universal Forest Products, Inc.		496		48,687
JELD-WEN Holding, Inc.*		1,358		48,236
Watts Water Technologies, Inc. — Class A		690		47,748
Exponent, Inc.		635		46,927
Plexus Corp.*		832		46,659
KapStone Paper and Packaging Corp.		2,154		46,289
Brady Corp. — Class A		1,151		43,680
Werner Enterprises, Inc.		1,181		43,166
Covanta Holding Corp.		2,904		43,124
Builders FirstSource, Inc.*		2,397		43,122
Forward Air Corp.		744		42,579
Benchmark Electronics, Inc.*		1,239		42,312
EnPro Industries, Inc.		524		42,198
Chicago Bridge & Iron Company N.V.1		2,497		41,950
Harsco Corp.*		1,992		41,633
Albany International Corp. — Class A		711		40,811
SPX FLOW, Inc.*		1,026		39,563
OSI Systems, Inc.*		431		39,380
Saia, Inc.*		627		39,282
Kaman Corp.		684		38,154
Atlas Air Worldwide Holdings, Inc.*		577		37,967
ESCO Technologies, Inc.		631		37,828
Actuant Corp. — Class A		1,476		37,786
Methode Electronics, Inc.		887		37,564
Greif, Inc. — Class A		633		37,056
Triumph Group, Inc.		1,210		35,998
Air Transport Services Group, Inc.*		1,456		35,439
AAON, Inc.		1,026		35,371
TTM Technologies, Inc.*		2,289		35,182
Hub Group, Inc. — Class A*		809		34,747
Novanta, Inc.*		793		34,575
Altra Industrial Motion Corp.		710		34,151
Badger Meter, Inc.		695		34,055
Apogee Enterprises, Inc.		701		33,830
Patrick Industries, Inc.*		401		33,724
Boise Cascade Co.*		958		33,434
Knowles Corp.*		2,184		33,350
Fabrinet*		899		33,317
Standex International Corp.		312		33,134
Greenbrier Companies, Inc.1		678		32,646
Comfort Systems USA, Inc.		913		32,594
Cubic Corp.		625		31,875
Sun Hydraulics Corp.		585		31,590
AZZ, Inc.		643		31,314
Federal Signal Corp.		1,462		31,111
SPX Corp.*		1,055		30,954
TriMas Corp.*		1,128		30,456
Fitbit, Inc. — Class A*		4,327		30,116
AAR Corp.		797		30,111
Matson, Inc.		1,061		29,899
Chart Industries, Inc.*		759		29,776
Astec Industries, Inc.		528		29,573
Applied Optoelectronics, Inc.*,1		455		29,425
Heartland Express, Inc.		1,171		29,369
Axon Enterprise, Inc.*,1		1,292		29,290
GoPro, Inc. — Class A*,1		2,648		29,154
US Ecology, Inc.		541		29,106
Raven Industries, Inc.		896		29,030
Tennant Co.		437		28,929
US Concrete, Inc.*		377		28,765
Primoris Services Corp.		977		28,743
Manitowoc Company, Inc.*		3,159		28,431
Aerovironment, Inc.*		520		28,142
Multi-Color Corp.		339		27,781
Advanced Disposal Services, Inc.*		1,083		27,281
Kadant, Inc.		269		26,510
Tutor Perini Corp.*		927		26,327
Continental Building Products, Inc.*		979		25,454

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Alamo Group, Inc.		235	$	25,232
KEMET Corp.*		1,161		24,532
Gibraltar Industries, Inc.*		787		24,515
Briggs & Stratton Corp.		1,034		24,299
Argan, Inc.		360		24,210
Lindsay Corp.		260		23,894
Lydall, Inc.*		414		23,722
Kratos Defense & Security Solutions, Inc.*		1,775		23,217
General Cable Corp.		1,220		22,997
Milacron Holdings Corp.*		1,347		22,710
Encore Wire Corp.		502		22,477
CIRCOR International, Inc.		409		22,262
Sturm Ruger & Company, Inc.1		425		21,973
Ship Finance International Ltd.1		1,482		21,489
ArcBest Corp.		642		21,475
AVX Corp.		1,142		20,819
Schneider National, Inc. — Class B		807		20,417
Columbus McKinnon Corp.		537		20,336
American Outdoor Brands Corp.*		1,331		20,298
Marten Transport Ltd.		966		19,851
Chase Corp.		177		19,718
Hyster-Yale Materials Handling, Inc.		256		19,569
Quanex Building Products Corp.1		851		19,530
NN, Inc.		671		19,459
CTS Corp.		792		19,087
Aegion Corp. — Class A*		812		18,903
Casella Waste Systems, Inc. — Class A*		969		18,217
Global Brass & Copper Holdings, Inc.		537		18,151
Scorpio Tankers, Inc.		5,254		18,021
PGT Innovations, Inc.*		1,199		17,925
Control4 Corp.*		605		17,823
Advanced Drainage Systems, Inc.		875		17,719
GasLog Ltd.		1,012		17,659
Caesarstone Ltd.*		562		16,748
TimkenSteel Corp.*		982		16,203
Griffon Corp.		726		16,117
Atkore International Group, Inc.*		813		15,862
Astronics Corp.*		531		15,797
FARO Technologies, Inc.*		411		15,721
NCI Building Systems, Inc.*		990		15,444
International Seaways, Inc.*		729		14,361
Gorman-Rupp Co.1		437		14,233
Kimball Electronics, Inc.*		657		14,224
Nordic American Tankers Ltd.		2,477		13,227
Stoneridge, Inc.*		667		13,213
National Presto Industries, Inc.		123		13,093
Echo Global Logistics, Inc.*		669		12,611
DXP Enterprises, Inc.*		390		12,281
VSE Corp.		214		12,168
Myers Industries, Inc.		573		12,004
Ichor Holdings Ltd.*		447		11,980
Mesa Laboratories, Inc.		80		11,946
Teekay Corp.		1,337		11,939
Insteel Industries, Inc.		451		11,776
MYR Group, Inc.*		396		11,539
Tredegar Corp.		640		11,520
Frontline Ltd.		1,907		11,518
YRC Worldwide, Inc.*		818		11,288
Electro Scientific Industries, Inc.*		793		11,039
Haynes International, Inc.		307		11,024
SunPower Corp. — Class A*,1		1,480		10,789
NV5 Global, Inc.*		196		10,711
ZAGG, Inc.*		673		10,600
Scorpio Bulkers, Inc.*		1,455		10,258
Park-Ohio Holdings Corp.		218		9,941
Vicor Corp.*		415		9,794
Sterling Construction Company, Inc.*		640		9,747
GP Strategies Corp.*		311		9,594
Ply Gem Holdings, Inc.*		550		9,378
NVE Corp.		118		9,318
Armstrong Flooring, Inc.*		577		9,088
Greif, Inc. — Class B		139		8,931
Park Electrochemical Corp.		477		8,825
Mistras Group, Inc.*		428		8,774
Covenant Transportation Group, Inc. — Class A*		294		8,520
DHT Holdings, Inc.		2,117		8,426
Ducommun, Inc.*		261		8,365
Costamare, Inc.		1,244		7,688
Heritage-Crystal Clean, Inc.*		351		7,634
Bel Fuse, Inc. — Class B		238		7,426
Roadrunner Transportation Systems, Inc.*		757		7,214
Energy Recovery, Inc.*		898		7,094
Hudson Technologies, Inc.*		908		7,091
American Railcar Industries, Inc.1		180		6,948
Daseke, Inc.*		507		6,616
Powell Industries, Inc.		218		6,538
Hurco Companies, Inc.		152		6,323
CECO Environmental Corp.		740		6,260
Vishay Precision Group, Inc.*		252		6,149
Energous Corp.*		466		5,900
FreightCar America, Inc.		301		5,888
Ardmore Shipping Corp.*		695		5,734
Advanced Emissions Solutions, Inc.		522		5,726
Layne Christensen Co.*		447		5,610
Sparton Corp.*		239		5,547
MicroVision, Inc.*		1,912		5,315
Gener8 Maritime, Inc.*		1,169		5,272
Omega Flex, Inc.		72		5,172
Olympic Steel, Inc.		228		5,016
Radiant Logistics, Inc.*		927		4,922
Graham Corp.		236		4,916
Teekay Tankers Ltd. — Class A		3,021		4,894
LB Foster Co. — Class A*		206		4,687
UFP Technologies, Inc.*		160		4,496
Northwest Pipe Co.*		236		4,489
Orion Group Holdings, Inc.*		671		4,402
Hardinge, Inc.		286		4,367
Eagle Bulk Shipping, Inc.*		952		4,313
LSB Industries, Inc.*		539		4,280
Universal Logistics Holdings, Inc.		207		4,233
Allied Motion Technologies, Inc.		164		4,156

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Intevac, Inc.*		489	$	4,132
Babcock & Wilcox Enterprises, Inc.*		1,212		4,036
Hill International, Inc.*		845		4,014
Lawson Products, Inc.*		159		4,007
Core Molding Technologies, Inc.		182		3,993
LSI Industries, Inc.		600		3,966
Eastern Co.		138		3,961
Twin Disc, Inc.*		211		3,927
Iteris, Inc.*		590		3,924
AquaVenture Holdings Ltd.*		287		3,875
Ampco-Pittsburgh Corp.		215		3,741
IES Holdings, Inc.*		215		3,720
Navios Maritime Holdings, Inc.*		2,224		3,714
Fluidigm Corp.*		728		3,669
Gencor Industries, Inc.*		201		3,548
Safe Bulkers, Inc.*,1		1,219		3,340
Dorian LPG Ltd.*		468		3,192
Pure Cycle Corp.*		424		3,180
Overseas Shipholding Group, Inc. — Class A*		1,122		2,951
Napco Security Technologies, Inc.*		295		2,862
Aqua Metals, Inc.*		412		2,822
CyberOptics Corp.*		170		2,763
Navios Maritime Acquisition Corp.		2,043		2,492
Handy & Harman Ltd.*		73		2,376
Genco Shipping & Trading Ltd.*		190		2,202
Willis Lease Finance Corp.*		85		2,090
Forterra, Inc.*		462		2,079
Revolution Lighting Technologies, Inc.*,1		305		1,983
NL Industries, Inc.*		207		1,894
Akoustis Technologies, Inc.*		226		1,474
Nordic American Offshore Ltd.		63		89
Total Industrial				7,305,870
Consumer, Cyclical - 8.9%
Dana, Inc.		3,603		100,741
Texas Roadhouse, Inc. — Class A		1,658		81,475
Tenneco, Inc.		1,323		80,266
Beacon Roofing Supply, Inc.*		1,497		76,722
Jack in the Box, Inc.		729		74,301
FirstCash, Inc.		1,176		74,265
Five Below, Inc.*		1,339		73,484
Cracker Barrel Old Country Store, Inc.1		476		72,171
ILG, Inc.		2,635		70,433
Lithia Motors, Inc. — Class A		583		70,141
LCI Industries		601		69,626
Churchill Downs, Inc.		334		68,872
Marriott Vacations Worldwide Corp.		543		67,620
Wolverine World Wide, Inc.		2,338		67,452
Steven Madden Ltd.*		1,464		63,391
Anixter International, Inc.*		719		61,116
Scientific Games Corp. — Class A*		1,319		60,476
Big Lots, Inc.		1,100		58,927
Planet Fitness, Inc. — Class A		2,143		57,818
Office Depot, Inc.		12,690		57,613
American Eagle Outfitters, Inc.		4,020		57,486
UniFirst Corp.		379		57,418
SkyWest, Inc.		1,257		55,182
Ollie’s Bargain Outlet Holdings, Inc.*		1,179		54,706
Navistar International Corp.*		1,232		54,294
Dave & Buster’s Entertainment, Inc.*		1,029		54,002
Meritor, Inc.*		2,075		53,971
Boyd Gaming Corp.		2,059		53,637
Deckers Outdoor Corp.*		783		53,565
Herman Miller, Inc.		1,478		53,060
TRI Pointe Group, Inc.*		3,717		51,331
iRobot Corp.*		655		50,475
Children’s Place, Inc.		427		50,450
Cooper-Standard Holdings, Inc.*		435		50,447
KB Home		2,079		50,144
Papa John’s International, Inc.		675		49,322
Hawaiian Holdings, Inc.*		1,313		49,303
Cooper Tire & Rubber Co.		1,316		49,218
Penn National Gaming, Inc.*		2,099		49,096
SiteOne Landscape Supply, Inc.*		841		48,862
PriceSmart, Inc.		547		48,820
Dorman Products, Inc.*		679		48,630
Cheesecake Factory, Inc.		1,112		46,837
HNI Corp.		1,094		45,368
Columbia Sportswear Co.		723		44,522
Meritage Homes Corp.*		954		42,358
Allegiant Travel Co. — Class A		314		41,354
Buffalo Wild Wings, Inc.*		384		40,589
Bloomin’ Brands, Inc.		2,297		40,427
Taylor Morrison Home Corp. — Class A*		1,768		38,984
Red Rock Resorts, Inc. — Class A		1,683		38,978
Brinker International, Inc.1		1,219		38,837
Mobile Mini, Inc.		1,089		37,516
Fox Factory Holding Corp.*		868		37,411
American Axle & Manufacturing Holdings, Inc.*		2,071		36,408
Core-Mark Holding Company, Inc.		1,130		36,318
Triton International Ltd.		1,076		35,809
Group 1 Automotive, Inc.1		492		35,650
La Quinta Holdings, Inc.*		2,021		35,368
RH*,1		498		35,019
DSW, Inc. — Class A		1,628		34,969
Winnebago Industries, Inc.		781		34,950
BMC Stock Holdings, Inc.*		1,622		34,630
Installed Building Products, Inc.*		534		34,603
MDC Holdings, Inc.		1,031		34,240
Rush Enterprises, Inc. — Class A*		737		34,116
Interface, Inc. — Class A		1,542		33,770
Gentherm, Inc.*		908		33,732
American Woodmark Corp.*		349		33,592
Callaway Golf Co.		2,317		33,434
Wabash National Corp.		1,447		33,021
Steelcase, Inc. — Class A		2,122		32,679
Vista Outdoor, Inc.*		1,417		32,506
La-Z-Boy, Inc.		1,196		32,172
Caleres, Inc.		1,043		31,832
IMAX Corp.*		1,389		31,461
Cavco Industries, Inc.*		212		31,281

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
HSN, Inc.		799	$	31,201
Select Comfort Corp.*		1,003		31,143
G-III Apparel Group Ltd.*		1,073		31,138
Belmond Ltd. — Class A*		2,217		30,262
Eldorado Resorts, Inc.*		1,142		29,292
J.C. Penney Company, Inc.*		7,686		29,284
Chico’s FAS, Inc.		3,187		28,524
Asbury Automotive Group, Inc.*		460		28,106
Pinnacle Entertainment, Inc.*		1,311		27,937
Lumber Liquidators Holdings, Inc.*		697		27,169
ScanSource, Inc.*		614		26,801
Caesars Acquisition Co. — Class A*		1,213		26,019
Oxford Industries, Inc.		408		25,924
Standard Motor Products, Inc.		534		25,766
Sonic Corp.		1,003		25,526
Guess?, Inc.1		1,485		25,290
Abercrombie & Fitch Co. — Class A		1,693		24,447
GMS, Inc.*		681		24,107
Knoll, Inc.		1,198		23,960
Wingstop, Inc.		720		23,940
Camping World Holdings, Inc. — Class A		582		23,711
Modine Manufacturing Co.*		1,224		23,562
H&E Equipment Services, Inc.		781		22,805
Liberty TripAdvisor Holdings, Inc. — Class A*		1,800		22,230
Universal Electronics, Inc.*		350		22,190
International Speedway Corp. — Class A		612		22,032
SeaWorld Entertainment, Inc.*,1		1,695		22,018
Douglas Dynamics, Inc.		547		21,552
Red Robin Gourmet Burgers, Inc.*		319		21,373
LGI Homes, Inc.*		428		20,788
Denny’s Corp.*		1,632		20,318
AMC Entertainment Holdings, Inc. — Class A1		1,367		20,095
Ethan Allen Interiors, Inc.		616		19,958
Dillard’s, Inc. — Class A1		347		19,456
Caesars Entertainment Corp.*,1		1,412		18,850
DineEquity, Inc.		426		18,309
Shake Shack, Inc. — Class A*		544		18,077
Kimball International, Inc. — Class B		903		17,852
Crocs, Inc.*,1		1,833		17,780
Tailored Brands, Inc.1		1,217		17,573
PetMed Express, Inc.		489		16,210
M/I Homes, Inc.*		598		15,985
Malibu Boats, Inc. — Class A*		505		15,978
BJ’s Restaurants, Inc.*,1		521		15,864
Ruth’s Hospitality Group, Inc.		732		15,335
GNC Holdings, Inc. — Class A1		1,680		14,851
Beazer Homes USA, Inc.*		775		14,524
Motorcar Parts of America, Inc.*		463		13,640
William Lyon Homes — Class A*		591		13,587
Unifi, Inc.*		381		13,575
Hooker Furniture Corp.		281		13,418
Tower International, Inc.		489		13,301
Sonic Automotive, Inc. — Class A		638		13,015
Wesco Aircraft Holdings, Inc.*		1,381		12,981
Conn’s, Inc.*		461		12,977
Express, Inc.*		1,911		12,918
Marcus Corp.		463		12,825
Nautilus, Inc.*		748		12,641
Genesco, Inc.*		475		12,635
Regis Corp.*		880		12,558
Del Taco Restaurants, Inc.*		817		12,533
Titan International, Inc.		1,234		12,525
Tile Shop Holdings, Inc.		986		12,522
Essendant, Inc.		926		12,195
Haverty Furniture Companies, Inc.		465		12,160
Fiesta Restaurant Group, Inc.*		639		12,141
Buckle, Inc.1		713		12,014
Finish Line, Inc. — Class A1		985		11,850
EZCORP, Inc. — Class A*		1,237		11,752
Century Communities, Inc.*		473		11,683
Barnes & Noble, Inc.		1,474		11,202
Horizon Global Corp.*		616		10,866
National CineMedia, Inc.		1,533		10,700
Monarch Casino & Resort, Inc.*		268		10,594
Movado Group, Inc.		376		10,528
Ascena Retail Group, Inc.*		4,274		10,471
MarineMax, Inc.*		623		10,311
Fossil Group, Inc.*,1		1,097		10,235
Acushnet Holdings Corp.1		573		10,176
Superior Industries International, Inc.		610		10,157
Flexsteel Industries, Inc.		189		9,582
Bassett Furniture Industries, Inc.		252		9,500
Freshpet, Inc.*		607		9,500
Spartan Motors, Inc.		846		9,348
Carrols Restaurant Group, Inc.*		855		9,320
MCBC Holdings, Inc.*		456		9,293
Daktronics, Inc.		879		9,291
Veritiv Corp.*		284		9,230
Party City Holdco, Inc.*		681		9,228
PICO Holdings, Inc.*		550		9,185
REV Group, Inc.		313		9,002
Eros International plc*		623		8,909
Culp, Inc.		269		8,810
Johnson Outdoors, Inc. — Class A		120		8,794
Chuy’s Holdings, Inc.*		411		8,652
Pier 1 Imports, Inc.		2,003		8,393
Biglari Holdings, Inc.*		25		8,332
Zumiez, Inc.*		457		8,272
PC Connection, Inc.		287		8,091
Winmark Corp.		59		7,773
Cato Corp. — Class A1		582		7,700
Miller Industries, Inc.		273		7,630
Del Frisco’s Restaurant Group, Inc.*		524		7,624
Systemax, Inc.		285		7,533
Perry Ellis International, Inc.*		317		7,500
America’s Car-Mart, Inc.*		181		7,444
Hibbett Sports, Inc.*		516		7,353
Titan Machinery, Inc.*		460		7,144
Citi Trends, Inc.		358		7,113
Iconix Brand Group, Inc.*		1,240		7,056

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Potbelly Corp.*		567	$	7,031
Francesca’s Holdings Corp.*		925		6,808
Reading International, Inc. — Class A*		417		6,555
Habit Restaurants, Inc. — Class A*		500		6,525
Shoe Carnival, Inc.1		288		6,445
Golden Entertainment, Inc.*		261		6,363
Barnes & Noble Education, Inc.*		947		6,165
Speedway Motorsports, Inc.		288		6,134
El Pollo Loco Holdings, Inc.*		504		6,124
Zoe’s Kitchen, Inc.*		473		5,974
Hovnanian Enterprises, Inc. — Class A*		3,061		5,908
Bojangles’, Inc.*		434		5,859
Fred’s, Inc. — Class A1		891		5,738
Green Brick Partners, Inc.*		571		5,653
RCI Hospitality Holdings, Inc.		225		5,569
Drive Shack, Inc.		1,540		5,559
Rush Enterprises, Inc. — Class B*		126		5,496
Lindblad Expeditions Holdings, Inc.*		497		5,318
Nathan’s Famous, Inc.*		71		5,250
Foundation Building Materials, Inc.*		368		5,204
AV Homes, Inc.*		302		5,179
Libbey, Inc.		543		5,028
PetIQ, Inc.*		180		4,874
Duluth Holdings, Inc. — Class B*		238		4,829
Superior Uniform Group, Inc.		208		4,763
Nexeo Solutions, Inc.*		651		4,752
Commercial Vehicle Group, Inc.*		623		4,579
Weyco Group, Inc.		156		4,427
Lifetime Brands, Inc.		241		4,410
Vera Bradley, Inc.*		498		4,387
Kirkland’s, Inc.*		379		4,332
Century Casinos, Inc.*		523		4,294
VOXX International Corp. — Class A*		497		4,249
Huttig Building Products, Inc.*		590		4,165
Sportsman’s Warehouse Holdings, Inc.*,1		896		4,041
Big 5 Sporting Goods Corp.1		514		3,932
Tilly’s, Inc. — Class A		320		3,837
Clarus Corp.*		509		3,818
Blue Bird Corp.*		180		3,708
J Alexander’s Holdings, Inc.*		319		3,700
Delta Apparel, Inc.*		170		3,657
Escalade, Inc.		263		3,577
Red Lion Hotels Corp.*		410		3,547
PCM, Inc.*		249		3,486
New Home Company, Inc.*		306		3,415
J. Jill, Inc.*,1		292		3,180
Ruby Tuesday, Inc.*		1,466		3,137
Marine Products Corp.		194		3,114
Build-A-Bear Workshop, Inc. — Class A*		337		3,084
Sequential Brands Group, Inc.*		984		2,942
Castle Brands, Inc.*,1		2,195		2,941
Fogo De Chao, Inc.*		233		2,889
At Home Group, Inc.*		126		2,878
Vitamin Shoppe, Inc.*		529		2,830
Boot Barn Holdings, Inc.*,1		303		2,697
Gaia, Inc.*		217		2,604
EnviroStar, Inc.		87		2,406
Sears Holdings Corp.*		295		2,154
Empire Resorts, Inc.*		84		1,877
Container Store Group, Inc.*		397		1,671
Inspired Entertainment, Inc.*		98		1,299
Noodles & Co.*		290		1,276
CompX International, Inc.		41		625
Total Consumer, Cyclical				5,807,738
Technology - 7.9%
MKS Instruments, Inc.		1,335		126,092
Aspen Technology, Inc.*		1,860		116,826
Medidata Solutions, Inc.*		1,397		109,049
EPAM Systems, Inc.*		1,218		107,098
Fair Isaac Corp.		755		106,077
Monolithic Power Systems, Inc.		989		105,378
Blackbaud, Inc.		1,181		103,691
MAXIMUS, Inc.		1,591		102,619
Entegris, Inc.*		3,520		101,552
Paycom Software, Inc.*		1,221		91,525
Integrated Device Technology, Inc.*		3,320		88,246
Cirrus Logic, Inc.*		1,598		85,205
j2 Global, Inc.		1,151		85,036
CACI International, Inc. — Class A*		605		84,306
Silicon Laboratories, Inc.*		1,040		83,096
Lumentum Holdings, Inc.*		1,510		82,068
Science Applications International Corp.		1,085		72,532
HubSpot, Inc.*		845		71,022
NetScout Systems, Inc.*		2,148		69,488
ACI Worldwide, Inc.*		2,888		65,789
Verint Systems, Inc.*		1,550		64,868
Allscripts Healthcare Solutions, Inc.*		4,500		64,035
2U, Inc.*		1,085		60,803
Semtech Corp.*		1,607		60,343
Convergys Corp.		2,328		60,272
Mercury Systems, Inc.*		1,161		60,233
CommVault Systems, Inc.*		974		59,219
RealPage, Inc.*		1,454		58,015
VeriFone Systems, Inc.*		2,760		55,973
Envestnet, Inc.*		1,067		54,417
Cornerstone OnDemand, Inc.*		1,290		52,387
Pegasystems, Inc.		908		52,346
Power Integrations, Inc.		711		52,045
Brooks Automation, Inc.		1,704		51,733
Cabot Microelectronics Corp.		617		49,317
Electronics for Imaging, Inc.*		1,147		48,954
Acxiom Corp.*		1,963		48,368
ExlService Holdings, Inc.*		811		47,298
Omnicell, Inc.*		910		46,456
Twilio, Inc. — Class A*,1		1,540		45,969
Progress Software Corp.		1,180		45,041
MACOM Technology Solutions Holdings, Inc.*		1,005		44,833
Diebold Nixdorf, Inc.1		1,873		42,798
Inphi Corp.*		1,041		41,317
Insight Enterprises, Inc.*		882		40,501
Qualys, Inc.*		778		40,300

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Ambarella, Inc.*,1		804	$	39,404
Callidus Software, Inc.*		1,597		39,366
Ebix, Inc.1		595		38,824
Box, Inc. — Class A*		2,005		38,737
BroadSoft, Inc.*		761		38,278
New Relic, Inc.*		750		37,350
Pure Storage, Inc. — Class A*,1		2,306		36,873
3D Systems Corp.*,1		2,707		36,247
Rambus, Inc.*		2,686		35,858
MaxLinear, Inc. — Class A*		1,491		35,411
Synaptics, Inc.*		854		33,460
CSG Systems International, Inc.		826		33,123
Cotiviti Holdings, Inc.*		909		32,706
Nutanix, Inc. — Class A*,1		1,406		31,480
Bottomline Technologies de, Inc.*		986		31,384
Five9, Inc.*		1,291		30,855
Xperi Corp.		1,213		30,689
FormFactor, Inc.*		1,783		30,044
MicroStrategy, Inc. — Class A*		235		30,012
Stratasys Ltd.*		1,238		28,623
Sykes Enterprises, Inc.*		972		28,344
Diodes, Inc.*		946		28,314
ManTech International Corp. — Class A		638		28,168
MINDBODY, Inc. — Class A*		1,052		27,194
Amkor Technology, Inc.*		2,524		26,628
Inovalon Holdings, Inc. — Class A*		1,553		26,479
Virtusa Corp.*		670		25,313
Veeco Instruments, Inc.*		1,169		25,017
Ultra Clean Holdings, Inc.*		815		24,955
Coupa Software, Inc.*		770		23,986
SPS Commerce, Inc.*		418		23,705
Evolent Health, Inc. — Class A*,1		1,305		23,229
CEVA, Inc.*		531		22,727
MTS Systems Corp.		416		22,235
Vocera Communications, Inc.*		693		21,739
Super Micro Computer, Inc.*		965		21,327
Hortonworks, Inc.*		1,243		21,069
Quality Systems, Inc.*		1,314		20,669
Rudolph Technologies, Inc.*		774		20,356
Axcelis Technologies, Inc.*		744		20,348
Varonis Systems, Inc.*		474		19,861
Monotype Imaging Holdings, Inc.		1,030		19,828
Cray, Inc.*		993		19,314
Impinj, Inc.*,1		446		18,558
LivePerson, Inc.*		1,343		18,198
Donnelley Financial Solutions, Inc.*		830		17,895
Instructure, Inc.*		535		17,735
Nanometrics, Inc.*		596		17,165
Silver Spring Networks, Inc.*		1,036		16,752
Cohu, Inc.		681		16,235
Syntel, Inc.*		819		16,093
Lattice Semiconductor Corp.*		3,041		15,844
PROS Holdings, Inc.*		651		15,709
Engility Holdings, Inc.*		447		15,502
CommerceHub, Inc.*		720		15,372
IXYS Corp.*		639		15,144
Barracuda Networks, Inc.*		623		15,095
Photronics, Inc.*		1,656		14,656
TeleTech Holdings, Inc.		344		14,362
SMART Global Holdings, Inc.*		505		13,524
Carbonite, Inc.*		612		13,464
Blackline, Inc.*		389		13,273
Benefitfocus, Inc.*,1		394		13,258
Xcerra Corp.*		1,326		13,061
Workiva, Inc.*		615		12,823
InnerWorkings, Inc.*		1,121		12,611
MuleSoft, Inc. — Class A*		602		12,124
Actua Corp.*		757		11,582
Everbridge, Inc.*		420		11,096
PDF Solutions, Inc.*		691		10,704
Unisys Corp.*		1,247		10,600
Bazaarvoice, Inc.*		2,065		10,222
Apptio, Inc. — Class A*		551		10,177
Synchronoss Technologies, Inc.*		1,056		9,852
Glu Mobile, Inc.*,1		2,572		9,671
Appfolio, Inc. — Class A*		198		9,494
KeyW Holding Corp.*,1		1,194		9,086
Digimarc Corp.*,1		247		9,040
Model N, Inc.*		578		8,641
AXT, Inc.*		922		8,436
QAD, Inc. — Class A		244		8,381
Exa Corp.*		344		8,318
Computer Programs & Systems, Inc.		277		8,185
CommerceHub, Inc.*		340		7,674
Alpha & Omega Semiconductor Ltd.*		464		7,651
American Software, Inc. — Class A		666		7,566
USA Technologies, Inc.*		1,164		7,275
Mitek Systems, Inc.*		764		7,258
DSP Group, Inc.*		541		7,033
pdvWireless, Inc.*		234		6,973
Digi International, Inc.*		655		6,943
Castlight Health, Inc. — Class B*		1,585		6,816
Presidio, Inc.*		471		6,665
Kopin Corp.*		1,525		6,359
Tabula Rasa HealthCare, Inc.*		231		6,177
Brightcove, Inc.*		840		6,048
DMC Global, Inc.		350		5,915
Immersion Corp.*		721		5,891
Cloudera, Inc.*,1		354		5,883
Sigma Designs, Inc.*		929		5,853
EMCORE Corp.*		667		5,469
MobileIron, Inc.*		1,387		5,132
Maxwell Technologies, Inc.*		894		4,586
Agilysys, Inc.*		380		4,541
Planet Payment, Inc.*		1,046		4,487
Alteryx, Inc. — Class A*		220		4,481
Quantum Corp.*		705		4,315
Rosetta Stone, Inc.*		420		4,288
Upland Software, Inc.*		201		4,253
Simulations Plus, Inc.		271		4,201
Park City Group, Inc.*		324		3,937
Amber Road, Inc.*		497		3,817

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Pixelworks, Inc.*		808	$	3,806
Avid Technology, Inc.*		828		3,759
ExOne Co.*		276		3,135
Veritone, Inc.*		67		3,045
Eastman Kodak Co.*		409		3,006
StarTek, Inc.*		252		2,961
GSI Technology, Inc.*		364		2,646
SecureWorks Corp. — Class A*		200		2,470
Cogint, Inc.*		501		2,455
NantHealth, Inc.*		442		1,821
Radisys Corp.*		913		1,251
Tintri, Inc.*		240		754
Majesco*		138		689
Total Technology				5,151,288
Communications - 4.9%
GrubHub, Inc.*		2,129		112,112
Proofpoint, Inc.*		1,081		94,285
ViaSat, Inc.*,1		1,319		84,837
Yelp, Inc. — Class A*		1,924		83,309
Stamps.com, Inc.*		392		79,439
Ciena Corp.*		3,496		76,806
Nexstar Media Group, Inc. — Class A		1,126		70,149
Zendesk, Inc.*		2,408		70,097
RingCentral, Inc. — Class A*		1,546		64,546
InterDigital, Inc.		858		63,278
Finisar Corp.*		2,825		62,630
New York Times Co. — Class A		3,111		60,976
TiVo Corp.		2,909		57,744
Sinclair Broadcast Group, Inc. — Class A		1,789		57,337
Meredith Corp.		980		54,390
DigitalGlobe, Inc.*		1,531		53,968
Viavi Solutions, Inc.*		5,671		53,648
Cogent Communications Holdings, Inc.		1,031		50,416
Etsy, Inc.*		2,867		48,395
Cars.com, Inc.*,1		1,784		47,472
Straight Path Communications, Inc. — Class B*		243		43,903
Groupon, Inc. — Class A*		8,415		43,758
Shenandoah Telecommunications Co.		1,151		42,817
Shutterfly, Inc.*		833		40,384
Vonage Holdings Corp.*		4,950		40,293
Gigamon, Inc.*		912		38,441
NETGEAR, Inc.*		799		38,032
Plantronics, Inc.		825		36,482
Trade Desk, Inc. — Class A*		587		36,106
Imperva, Inc.*		829		35,979
Oclaro, Inc.*,1		4,103		35,409
Chegg, Inc.*		2,359		35,008
Time, Inc.		2,480		33,480
Q2 Holdings, Inc.*		776		32,320
Extreme Networks, Inc.*		2,704		32,151
Ubiquiti Networks, Inc.*,1		573		32,099
Infinera Corp.*		3,586		31,808
MSG Networks, Inc. — Class A*		1,484		31,461
Consolidated Communications Holdings, Inc.		1,619		30,891
Houghton Mifflin Harcourt Co.*		2,562		30,872
ePlus, Inc.*		325		30,046
8x8, Inc.*		2,187		29,525
ADTRAN, Inc.		1,203		28,872
Quotient Technology, Inc.*		1,825		28,561
EW Scripps Co. — Class A*		1,433		27,385
NIC, Inc.		1,589		27,251
TrueCar, Inc.*		1,717		27,111
Blucora, Inc.*		1,069		27,046
General Communication, Inc. — Class A*		659		26,881
Scholastic Corp.		701		26,077
Gannett Company, Inc.		2,832		25,488
West Corp.		1,072		25,160
Gray Television, Inc.*		1,586		24,900
GTT Communications, Inc.*		767		24,276
Web.com Group, Inc.*		951		23,775
Frontier Communications Corp.1		1,949		22,979
World Wrestling Entertainment, Inc. — Class A		964		22,702
Acacia Communications, Inc.*,1		458		21,572
Liberty Media Corporation-Liberty Braves — Class C*		850		21,480
Iridium Communications, Inc.*,1		2,076		21,383
Cincinnati Bell, Inc.*		1,040		20,644
CalAmp Corp.*		857		19,925
Boingo Wireless, Inc.*		901		19,254
New Media Investment Group, Inc.		1,267		18,739
Globalstar, Inc.*,1		11,482		18,716
ORBCOMM, Inc.*		1,664		17,422
Perficient, Inc.*		850		16,720
Gogo, Inc.*		1,412		16,676
Bankrate, Inc.*		1,170		16,322
Loral Space & Communications, Inc.*		318		15,741
Shutterstock, Inc.*		460		15,313
MDC Partners, Inc. — Class A*		1,377		15,147
HealthStream, Inc.*		639		14,933
ATN International, Inc.		263		13,860
Tucows, Inc. — Class A*		225		13,174
Angie’s List, Inc.*		1,016		12,659
Overstock.com, Inc.*		416		12,355
XO Group, Inc.*		609		11,979
Endurance International Group Holdings, Inc.*		1,437		11,783
Comtech Telecommunications Corp.		569		11,682
Lumos Networks Corp.*		545		9,766
Okta, Inc.*,1		335		9,450
Entravision Communications Corp. — Class A		1,641		9,354
A10 Networks, Inc.*		1,214		9,178
Rapid7, Inc.*		517		9,099
VASCO Data Security International, Inc.*		750		9,038
Sonus Networks, Inc.*		1,176		8,996
Quantenna Communications, Inc.*		523		8,792
Internap Corp.*		1,979		8,609

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Windstream Holdings, Inc.		4,722	$	8,358
Central European Media Enterprises Ltd. — Class A*		2,042		8,270
Entercom Communications Corp. — Class A1		694		7,946
WideOpenWest, Inc.*		525		7,917
Spok Holdings, Inc.		492		7,552
Limelight Networks, Inc.*		1,864		7,400
ChannelAdvisor Corp.*		628		7,222
tronc, Inc.*		485		7,047
QuinStreet, Inc.*		906		6,659
Zix Corp.*		1,326		6,484
1-800-Flowers.com, Inc. — Class A*		647		6,373
Liberty Media Corporation-Liberty Braves — Class A*		247		6,266
Daily Journal Corp.*		28		6,121
IDT Corp. — Class B		431		6,068
Meet Group, Inc.*		1,659		6,039
Harmonic, Inc.*		1,965		5,993
TechTarget, Inc.*		486		5,803
RigNet, Inc.*		327		5,624
FTD Companies, Inc.*		418		5,451
Calix, Inc.*		1,064		5,373
HC2 Holdings, Inc.*		1,010		5,333
Preformed Line Products Co.		76		5,115
Carvana Co.*		342		5,021
VirnetX Holding Corp.*		1,258		4,906
Telenav, Inc.*		758		4,813
Hemisphere Media Group, Inc.*		386		4,613
KVH Industries, Inc.*		386		4,613
NeoPhotonics Corp.*		800		4,448
Ooma, Inc.*		420		4,431
Hawaiian Telcom Holdco, Inc.*		148		4,413
Lands’ End, Inc.*,1		329		4,343
Global Eagle Entertainment, Inc.*		1,265		4,326
Rubicon Project, Inc.*		1,099		4,275
Saga Communications, Inc. — Class A		93		4,241
Intelsat S.A.*		899		4,225
Yext, Inc.*		311		4,130
Clear Channel Outdoor Holdings, Inc. — Class A		885		4,115
Reis, Inc.		225		4,050
Clearfield, Inc.*		285		3,876
Corindus Vascular Robotics, Inc.*		2,525		3,838
Liquidity Services, Inc.*		634		3,741
Aerohive Networks, Inc.*		793		3,243
DHI Group, Inc.*		1,201		3,123
RealNetworks, Inc.*		602		2,890
Townsquare Media, Inc. — Class A*		218		2,180
Leaf Group Ltd.*		293		2,022
Salem Media Group, Inc. — Class A		288		1,901
Ominto, Inc.*		336		1,512
Beasley Broadcast Group, Inc. — Class A		121		1,416
Value Line, Inc.		27		476
Total Communications				3,220,919
Energy - 2.8%
PDC Energy, Inc.*		1,638		80,310
Matador Resources Co.*		2,225		60,408
Callon Petroleum Co.*		4,994		56,133
Oasis Petroleum, Inc.*		5,831		53,179
Delek US Holdings, Inc.		1,930		51,589
McDermott International, Inc.*		7,016		51,005
SRC Energy, Inc.*		4,977		48,128
SemGroup Corp. — Class A		1,645		47,294
Ensco plc — Class A1		7,551		45,079
Peabody Energy Corp.*		1,537		44,587
Pattern Energy Group, Inc.		1,744		42,031
Ultra Petroleum Corp.*		4,834		41,911
Dril-Quip, Inc.*		939		41,456
Superior Energy Services, Inc.*		3,772		40,285
MRC Global, Inc.*		2,214		38,723
Arch Coal, Inc. — Class A		528		37,879
Rowan Companies plc — Class A*		2,890		37,137
NOW, Inc.*		2,651		36,610
C&J Energy Services, Inc.*		1,150		34,466
Carrizo Oil & Gas, Inc.*		1,917		32,838
Oil States International, Inc.*		1,259		31,916
Noble Corporation plc*		6,050		27,830
Forum Energy Technologies, Inc.*		1,709		27,173
TerraForm Power, Inc. — Class A*		2,023		26,744
Unit Corp.*		1,283		26,404
Helix Energy Solutions Group, Inc.*		3,484		25,747
Exterran Corp.*		795		25,130
Diamond Offshore Drilling, Inc.*,1		1,603		23,244
Halcon Resources Corp.*		3,203		21,780
Archrock, Inc.		1,731		21,724
Newpark Resources, Inc.*		2,086		20,860
Green Plains, Inc.		975		19,646
Jagged Peak Energy, Inc.*,1		1,420		19,397
SEACOR Holdings, Inc.*		400		18,444
Ring Energy, Inc.*		1,238		17,939
Atwood Oceanics, Inc.*,1		1,901		17,850
SandRidge Energy, Inc.*		865		17,378
Bonanza Creek Energy, Inc.*		503		16,594
Par Pacific Holdings, Inc.*		787		16,370
Resolute Energy Corp.*		538		15,973
Tellurian, Inc.*		1,430		15,272
SunCoke Energy, Inc.*		1,596		14,587
Plug Power, Inc.*,1		5,535		14,446
Thermon Group Holdings, Inc.*		798		14,356
Penn Virginia Corp.*		353		14,113
Stone Energy Corp.*		483		14,036
Keane Group, Inc.*,1		835		13,928
REX American Resources Corp.*		144		13,512
Denbury Resources, Inc.*		9,850		13,199
Sunrun, Inc.*		2,105		11,683
Renewable Energy Group, Inc.*		943		11,457
California Resources Corp.*,1		1,056		11,046
TerraForm Global, Inc. — Class A*		2,211		10,502
ProPetro Holding Corp.*		718		10,303
CVR Energy, Inc.1		391		10,127

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Matrix Service Co.*		650	$	9,880
Warrior Met Coal, Inc.		417		9,829
FutureFuel Corp.		620		9,759
Frank’s International N.V.		1,234		9,526
Panhandle Oil and Gas, Inc. — Class A		389		9,258
Natural Gas Services Group, Inc.*		307		8,719
NACCO Industries, Inc. — Class A		101		8,666
Sanchez Energy Corp.*,1		1,757		8,469
Clean Energy Fuels Corp.*		3,381		8,385
Basic Energy Services, Inc.*,1		431		8,318
TETRA Technologies, Inc.*		2,836		8,111
Bill Barrett Corp.*		1,870		8,022
Energy XXI Gulf Coast, Inc.*		733		7,579
Bristow Group, Inc.1		802		7,499
WildHorse Resource Development Corp.*,1		533		7,100
W&T Offshore, Inc.*,1		2,323		7,085
Abraxas Petroleum Corp.*		3,753		7,056
Cloud Peak Energy, Inc.*		1,832		6,705
Trecora Resources*		487		6,477
Flotek Industries, Inc.*		1,370		6,371
NCS Multistage Holdings, Inc.*		263		6,333
Tesco Corp.*		1,149		6,262
Pacific Ethanol, Inc.*		1,069		5,933
TPI Composites, Inc.*		265		5,920
Geospace Technologies Corp.*		325		5,792
Era Group, Inc.*		488		5,461
Eclipse Resources Corp.*		2,165		5,413
Earthstone Energy, Inc. — Class A*		481		5,286
CARBO Ceramics, Inc.*		569		4,910
Pioneer Energy Services Corp.*		1,886		4,809
Lilis Energy, Inc.*		1,060		4,738
Evolution Petroleum Corp.		627		4,514
Solaris Oilfield Infrastructure, Inc. — Class A*		258		4,497
Midstates Petroleum Company, Inc.*		277		4,305
Gulf Island Fabrication, Inc.		338		4,293
SilverBow Resources, Inc.*		173		4,247
Gastar Exploration, Inc.*		4,324		3,803
Parker Drilling Co.*		3,327		3,660
Select Energy Services, Inc. — Class A*		229		3,646
Willbros Group, Inc.*		1,086		3,497
PHI, Inc.*		289		3,399
Key Energy Services, Inc.*,1		256		3,372
Mammoth Energy Services, Inc.*		199		3,355
Independence Contract Drilling, Inc.*		849		3,226
EP Energy Corp. — Class A*,1		953		3,107
Contango Oil & Gas Co.*		585		2,943
Approach Resources, Inc.*,1		1,066		2,676
Jones Energy, Inc. — Class A*		1,255		2,410
Hallador Energy Co.		397		2,271
Adams Resources & Energy, Inc.		54		2,241
Vivint Solar, Inc.*		645		2,193
Ranger Energy Services, Inc.*		147		2,161
Isramco, Inc.*		18		2,088
Westmoreland Coal Co.*		458		1,168
Ramaco Resources, Inc.*		150		995
Rosehill Resources, Inc.*		62		510
Cobalt International Energy, Inc.*		1		1
EXCO Resources, Inc.*		1		1
Total Energy				1,850,008
Basic Materials - 2.7%
Sensient Technologies Corp.		1,097		84,380
PolyOne Corp.		2,017		80,740
HB Fuller Co.		1,250		72,575
Ingevity Corp.*		1,054		65,843
Allegheny Technologies, Inc.*,1		2,693		64,363
Balchem Corp.		785		63,813
US Silica Holdings, Inc.		2,024		62,886
Minerals Technologies, Inc.		871		61,536
Carpenter Technology Corp.		1,149		55,186
GCP Applied Technologies, Inc.*		1,777		54,554
Compass Minerals International, Inc.1		840		54,516
Commercial Metals Co.		2,864		54,502
Cleveland-Cliffs, Inc.*		7,383		52,788
Hecla Mining Co.		9,765		49,020
Quaker Chemical Corp.		322		47,640
Ferro Corp.*		2,075		46,273
AK Steel Holding Corp.*		7,815		43,686
Kaiser Aluminum Corp.		410		42,287
Stepan Co.		494		41,328
Coeur Mining, Inc.*		4,487		41,236
Innospec, Inc.		594		36,620
Neenah Paper, Inc.		412		35,246
Tronox Ltd. — Class A		1,649		34,794
Schweitzer-Mauduit International, Inc.		754		31,261
Kraton Corp.*		743		30,047
AdvanSix, Inc.*		742		29,495
Calgon Carbon Corp.		1,252		26,793
A. Schulman, Inc.		708		24,178
Deltic Timber Corp.		272		24,053
Koppers Holdings, Inc.*		511		23,583
Innophos Holdings, Inc.		479		23,562
Materion Corp.		494		21,316
PH Glatfelter Co.		1,076		20,928
Century Aluminum Co.*		1,235		20,476
Clearwater Paper Corp.*		401		19,749
Schnitzer Steel Industries, Inc. — Class A		655		18,438
Fairmount Santrol Holdings, Inc.*,1		3,843		18,370
American Vanguard Corp.		711		16,282
CSW Industrials, Inc.*		359		15,922
Klondex Mines Ltd.*		4,358		15,863
Rayonier Advanced Materials, Inc.		1,062		14,549
Kronos Worldwide, Inc.		562		12,830
KMG Chemicals, Inc.		229		12,568
OMNOVA Solutions, Inc.*		1,070		11,717
Intrepid Potash, Inc.*		2,346		10,229
Hawkins, Inc.		239		9,751
Landec Corp.*		665		8,612
Aceto Corp.		728		8,175
Codexis, Inc.*		1,010		6,717
Oil-Dri Corporation of America		124		6,067
Gold Resource Corp.		1,300		4,875

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Shares		Value
Uranium Energy Corp.*		3,381	$	4,666
Verso Corp. — Class A*		851		4,332
Ryerson Holding Corp.*		396		4,297
United States Lime & Minerals, Inc.		49		4,116
AgroFresh Solutions, Inc.*,1		546		3,838
Shiloh Industries, Inc.*		354		3,682
Smart Sand, Inc.*		542		3,675
Orchids Paper Products Co.1		223		3,140
Valhi, Inc.		626		1,521
Total Basic Materials				1,765,485
Utilities - 2.7%
IDACORP, Inc.		1,252		110,087
WGL Holdings, Inc.		1,270		106,933
Portland General Electric Co.		2,217		101,183
ALLETE, Inc.		1,268		98,004
ONE Gas, Inc.		1,294		95,289
Southwest Gas Holdings, Inc.		1,177		91,359
Black Hills Corp.		1,325		91,253
New Jersey Resources Corp.		2,130		89,780
Spire, Inc.		1,170		87,341
Avista Corp.		1,595		82,573
PNM Resources, Inc.		1,977		79,673
NorthWestern Corp.		1,207		68,727
South Jersey Industries, Inc.		1,979		68,335
Ormat Technologies, Inc.		982		59,951
MGE Energy, Inc.		866		55,944
El Paso Electric Co.		1,002		55,361
California Water Service Group		1,190		45,400
Northwest Natural Gas Co.		704		45,338
American States Water Co.		900		44,325
Otter Tail Corp.		974		42,223
Chesapeake Utilities Corp.		392		30,674
NRG Yield, Inc. — Class C		1,579		30,475
Dynegy, Inc.*		2,738		26,805
SJW Group1		405		22,923
Unitil Corp.		344		17,014
NRG Yield, Inc. — Class A		864		16,390
Connecticut Water Service, Inc.		274		16,248
Middlesex Water Co.		394		15,472
York Water Co.		318		10,780
Artesian Resources Corp. — Class A		194		7,333
Atlantic Power Corp.*		2,838		6,953
RGC Resources, Inc.		166		4,743
Consolidated Water Company Ltd.		362		4,634
Spark Energy, Inc. — Class A1		289		4,335
Ameresco, Inc. — Class A*		463		3,611
Global Water Resources, Inc.		251		2,364
Genie Energy Ltd. — Class B		334		2,188
Total Utilities				1,742,021
Diversified - 0.1%
HRG Group, Inc.*		2,947		46,003
Wins Finance Holdings, Inc.*,††		23		281
Total Diversified				46,284
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		751		22,109
Total Common Stocks
(Cost $46,261,071)				50,797,174
RIGHTS††† - 0.0%
Omthera Pharmaceuticals, Inc.
Expires 12/31/22		86		—
Tobira Therapeutics, Inc.
Expires 11/02/12		141		—
Dyax Corp.
Expires 01/25/12		757		—
Nexstar Media Group, Inc.
Expires 01/18/192		2,530		—
Total Rights
(Cost $—)				—

	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 7.6%
Fannie Mae3
0.71% due 10/02/174,5	$	5,000,000	4,999,868
Total Federal Agency Discount Notes
(Cost $4,999,868)			4,999,868
FEDERAL AGENCY NOTES†† - 3.8%
Federal Home Loan Bank6
1.00% due 10/26/187		2,500,000	2,497,555
Total Federal Agency Notes
(Cost $2,500,000)			2,497,555
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bill
1.03% due 12/14/174,5,8		100,000	99,806
Total U.S. Treasury Bills
(Cost $99,787)			99,806
CORPORATE BONDS†† - 0.0%
Industrial - 0.0%
Mueller Industries, Inc.
6.00% due 03/01/27		6,000	6,180
Total Corporate Bonds
(Cost $6,000)			6,180
REPURCHASE AGREEMENTS††,9 - 9.9%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/1710		3,262,427	3,262,427
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/1710		1,631,214	1,631,214

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
RUSSELL 2000® FUND

	Face Amount		Values
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/1710	$	864,234	$	864,234
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		693,045		693,045
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		72,685		72,685
Total Repurchase Agreements
(Cost $6,523,605)				6,523,605

	Shares
SECURITIES LENDING COLLATERAL†,11 - 2.3%
First American Government Obligations Fund — Class Z, 0.89%12		1,492,890		1,492,890
Total Securities Lending Collateral
(Cost $1,492,890)				1,492,890
Total Investments - 101.2%
(Cost $61,883,221)			$	66,417,078
Other Assets & Liabilities, net - (1.2)%				(806,656	)
Total Net Assets - 100.0%			$	65,610,422

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Gain
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		10	Dec 2017	$	746,150	$	707

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
BNP Paribas	Russell 2000 Index	1.24	%	At Maturity	10/30/17		4,736	$	7,061,072	$	33,113
Goldman Sachs International	Russell 2000 Index	1.05	%	At Maturity	10/27/17		971		1,447,944		31,589
Barclays Bank plc	Russell 2000 Index	1.20	%	At Maturity	10/31/17		3,737		5,571,786		7,867
								$	14,080,802	$	72,569

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2017. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
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	Rate indicated is the effective yield at the time of purchase.
5	Zero coupon rate security.
6	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
7	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
8	All or a portion of this security is pledged as futures collateral at September 30, 2017.
9	Repurchase Agreements — See Note 6.
10	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
11	Securities lending collateral — See Note 7.
12	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
RUSSELL 2000® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	50,796,893	$	—	$	281	$	—	$	—		$	50,797,174
Corporate Bonds		—		—		6,180		—		—			6,180
Equity Futures Contracts		—		707		—		—		—			707
Equity Index Swap Agreements		—		—		—		72,569		—			72,569
Federal Agency Discount Notes		—		—		4,999,868		—		—			4,999,868
Federal Agency Notes		—		—		2,497,555		—		—			2,497,555
Repurchase Agreements		—		—		6,523,605		—		—			6,523,605
Rights		—		—		—		—		—	**		—
Securities Lending Collateral		1,492,890		—		—		—		—			1,492,890
U.S. Treasury Bills		—		—		99,806		—		—			99,806
Total Assets	$	52,289,783	$	707	$	14,127,295	$	72,569	$	—		$	66,490,354

*	Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.
**	Security has a market value of $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, Russell 2000 Fund had a security with a total value of $281 transfer out of Level 1 into Level 2 due to changes in security valuation methods using observable market inputs. There were no other transfers between levels.

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

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $1,452,654 of securities loaned (cost $55,359,616)	$	59,893,473
Repurchase agreements, at value (cost $6,523,605)		6,523,605
Cash		6,673
Segregated cash with broker		470,000
Unrealized appreciation on swap agreements		72,569
Receivables:
Fund shares sold		155,442
Dividends		37,088
Swap settlement		19,058
Interest		4,906
Securities lending income		2,000
Variation margin		707
Total assets		67,185,521
Liabilities:
Payable for:
Return of securities loaned		1,492,890
Management fees		25,931
Distribution and service fees		11,927
Fund shares redeemed		11,650
Transfer agent and administrative fees		8,644
Portfolio accounting fees		5,186
Miscellaneous		18,871
Total liabilities		1,575,099
Commitments and contingent liabilities (Note 12)		—
Net assets	$	65,610,422
Net assets consist of:
Paid in capital	$	57,863,268
Accumulated net investment loss		(107,878	)
Accumulated net realized gain on investments		3,247,899
Net unrealized appreciation on investments		4,607,133
Net assets	$	65,610,422
A-Class:
Net assets	$	16,373,117
Capital shares outstanding		366,234
Net asset value per share	$	44.71
Maximum offering price per share (Net asset value divided by 95.25%)	$	46.94
C-Class:
Net assets	$	5,509,991
Capital shares outstanding		135,897
Net asset value per share	$	40.55
H-Class:
Net assets	$	43,727,314
Capital shares outstanding		980,414
Net asset value per share	$	44.60

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $129)	$	203,248
Interest		34,283
Income from securities lending, net		15,521
Total investment income		253,052
Expenses:
Management fees		151,918
Distribution and service fees:
A-Class		18,467
C-Class		28,190
H-Class		25,127
Transfer agent and administrative fees		50,640
Portfolio accounting fees		30,385
Registration fees		29,585
Custodian fees		2,837
Trustees’ fees*		2,363
Miscellaneous		13,990
Total expenses		353,502
Net investment loss		(100,450	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,112,022
Swap agreements		683,058
Futures contracts		24,737
Net realized gain		4,819,817
Net change in unrealized appreciation (depreciation) on:
Investments		(1,631,359	)
Swap agreements		(45,824	)
Futures contracts		(20,208	)
Foreign currency translations		4
Net change in unrealized appreciation (depreciation)		(1,697,387	)
Net realized and unrealized gain		3,122,430
Net increase in net assets resulting from operations	$	3,021,980

* 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.

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(100,450	)	$	(278,568	)
Net realized gain on investments		4,819,817			3,527,181
Net change in unrealized appreciation (depreciation) on investments		(1,697,387	)		4,922,762
Net increase in net assets resulting from operations		3,021,980			8,171,375
Capital share transactions:
Proceeds from sale of shares
A-Class		9,249,911			42,192,221
C-Class		1,175,946			10,426,608
H-Class		64,534,674			227,391,879
Cost of shares redeemed
A-Class		(8,641,009	)		(42,966,394	)
C-Class		(1,872,687	)		(8,128,543	)
H-Class		(51,816,272	)		(248,133,883	)
Net increase (decrease) from capital share transactions		12,630,563			(19,218,112	)
Net increase (decrease) in net assets		15,652,543			(11,046,737	)
Net assets:
Beginning of period		49,957,879			61,004,616
End of period	$	65,610,422		$	49,957,879
Accumulated net investment loss at end of period	$	(107,878	)	$	(7,428	)
Capital share activity:
Shares sold
A-Class		217,785			1,104,167
C-Class		30,790			303,834
H-Class		1,514,252			6,113,347
Shares redeemed
A-Class		(203,668	)		(1,109,403	)
C-Class		(49,115	)		(239,296	)
H-Class		(1,243,762	)		(6,784,978	)
Net increase (decrease) in shares		266,282			(612,329	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	41.61		$	33.56		$	38.88		$	37.80		$	32.26		$	28.20
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.21	)		(.29	)		(.25	)		(.27	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		3.18			8.26			(4.12	)		2.61			7.54			4.19
Total from investment operations		3.10			8.05			(4.41	)		2.36			7.27			4.06
Less distributions from:
Net realized gains		—			—			(.91	)		(1.28	)		(1.73	)		—
Total distributions		—			—			(.91	)		(1.28	)		(1.73	)		—
Net asset value, end of period	$	44.71		$	41.61		$	33.56		$	38.88		$	37.80		$	32.26
Total Returnc		7.48	%		23.96	%		(11.43	%)		6.42	%		22.87	%		14.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,373		$	14,650		$	11,993		$	13,920		$	3,219		$	3,723
Ratios to average net assets:
Net investment income (loss)		(0.40	%)		(0.54	%)		(0.83	%)		(0.67	%)		(0.77	%)		(0.44	%)
Total expenses		1.64	%		1.62	%		1.59	%		1.57	%		1.60	%		1.55	%
Portfolio turnover rate		87	%		203	%		442	%		947	%		267	%		160	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	37.87		$	30.78		$	36.00		$	35.36		$	30.54		$	26.90
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.44	)		(.51	)		(.60	)		(.48	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		2.90			7.53			(3.80	)		2.52			7.03			3.95
Total from investment operations		2.68			7.09			(4.31	)		1.92			6.55			3.64
Less distributions from:
Net realized gains		—			—			(.91	)		(1.28	)		(1.73	)		—
Total distributions		—			—			(.91	)		(1.28	)		(1.73	)		—
Net asset value, end of period	$	40.55		$	37.87		$	30.78		$	36.00		$	35.36		$	30.54
Total Returnc		7.05	%		23.03	%		(12.07	%)		5.61	%		21.78	%		13.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,510		$	5,841		$	2,760		$	4,259		$	3,245		$	2,599
Ratios to average net assets:
Net investment income (loss)		(1.15	%)		(1.27	%)		(1.56	%)		(1.77	%)		(1.47	%)		(1.19	%)
Total expenses		2.39	%		2.38	%		2.35	%		2.57	%		2.37	%		2.31	%
Portfolio turnover rate		87	%		203	%		442	%		947	%		267	%		160	%

132 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	41.51		$	33.48		$	38.79		$	37.73		$	32.25		$	28.16
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.21	)		(.35	)		(.28	)		(.27	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		3.17			8.24			(4.05	)		2.62			7.48			4.21
Total from investment operations		3.09			8.03			(4.40	)		2.34			7.21			4.09
Less distributions from:
Net realized gains		—			—			(.91	)		(1.28	)		(1.73	)		—
Total distributions		—			—			(.91	)		(1.28	)		(1.73	)		—
Net asset value, end of period	$	44.60		$	41.51		$	33.48		$	38.79		$	37.73		$	32.25
Total Returnc		7.47	%		23.95	%		(11.43	%)		6.37	%		22.69	%		14.52	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,727		$	29,466		$	46,251		$	27,902		$	44,185		$	101,053
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.54	%)		(0.97	%)		(0.77	%)		(0.78	%)		(0.42	%)
Total expenses		1.64	%		1.63	%		1.60	%		1.58	%		1.59	%		1.52	%
Portfolio turnover rate		87	%		203	%		442	%		947	%		267	%		160	%

a	Unaudited figures for the period ended September 30, 2017. 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 | 133

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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	8.5%
Guggenheim Strategy Fund II	8.5%
Total	17.0%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	(8.04%)	(18.71%)	(15.44%)	(14.25%)
A-Class Shares with sales charge‡	(12.42%)	(22.57%)	(16.27%)	(14.67%)
C-Class Shares	(8.45%)	(19.31%)	(16.07%)	(14.88%)
C-Class Shares with CDSC§	(9.37%)	(20.12%)	(16.07%)	(14.88%)
H-Class Shares	(8.15%)	(18.78%)	(15.44%)	(14.24%)
Russell 2000 Index	8.27%	20.74%	17.08%	9.90%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

134 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 17.0%
Guggenheim Strategy Fund I1		24,377	$	612,116
Guggenheim Strategy Fund II1		24,220		606,945
Total Mutual Funds
(Cost $1,204,971)				1,219,061

	Face Amount
FEDERAL AGENCY NOTES†† - 14.0%
Federal Farm Credit Bank2
1.42% (U.S. Prime Rate -283 bps) due 09/12/183	$	1,000,000	1,002,480
Total Federal Agency Notes
(Cost $999,905)			1,002,480
REPURCHASE AGREEMENTS††,4 - 64.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/175		2,311,116	2,311,116

Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/175	1,155,558		1,155,558
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/175	661,447		661,447
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	446,407		446,407
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	46,818		46,818
Total Repurchase Agreements
(Cost $4,621,346)			4,621,346
Total Investments - 95.6%
(Cost $6,826,222)		$	6,842,887
Other Assets & Liabilities, net - 4.4%			314,918
Total Net Assets - 100.0%		$	7,157,805

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Equity Futures Contracts Sold Short†
Russell 2000 Index Mini Futures Contracts		20	Dec 2017	$	1,492,300	$	(74,110	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Loss
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	Russell 2000 Index	0.70	%	At Maturity	10/31/17		579	$	863,136	$	(1,222	)
BNP Paribas	Russell 2000 Index	0.74	%	At Maturity	10/30/17		775		1,156,044		(3,740	)
Goldman Sachs International	Russell 2000 Index	0.75	%	At Maturity	10/27/17		2,443		3,641,496		(47,679	)
								$	5,660,676	$	(52,641	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2017.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE RUSSELL 2000® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 – Other*		Level 2 Significant Observable Inputs		Level 2 – Other*		Level 3 Significant Unobservable Inputs		Total
Federal Agency Notes	$	—	$	—	$	1,002,480	$	—	$	—	$	1,002,480
Mutual Funds		1,219,061		—		—		—		—		1,219,061
Repurchase Agreements		—		—		4,621,346		—		—		4,621,346
Total Assets	$	1,219,061	$	—	$	5,623,826	$	—	$	—	$	6,842,887
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 – Other*		Level 2 Significant Observable Inputs		Level 2 – Other*		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts	$	—	$	74,110	$	—	$	—	$	—	$	74,110
Equity Index Swap Agreements		—		—		—		52,641		—		52,641
Total Liabilities	$	—	$	74,110	$	—	$	52,641	$	—	$	126,751

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	610,653	$	—	$	—	$	—	$	1,463	$	612,116		24,377	$	5,471
Guggenheim Strategy Fund II		605,492		—		—		—		1,453		606,945		24,220		6,821
	$	1,216,145	$	—	$	—	$	—	$	2,916	$	1,219,061			$	12,292

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $999,905)	$	1,002,480
Investments in affiliated issuers, at value (cost $1,204,971)		1,219,061
Repurchase agreements, at value (cost $4,621,346)		4,621,346
Segregated cash with broker		385,002
Receivables:
Fund shares sold		3,523
Dividends		2,067
Interest		1,006
Variation margin		300
Total assets		7,234,785
Liabilities:
Unrealized depreciation on swap agreements		52,641
Payable for:
Fund shares redeemed		8,283
Management fees		4,034
Swap settlement		2,288
Distribution and service fees		1,626
Transfer agent and administrative fees		1,121
Portfolio accounting fees		448
Miscellaneous		6,539
Total liabilities		76,980
Commitments and contingent liabilities (Note 12)		—
Net assets	$	7,157,805
Net assets consist of:
Paid in capital	$	58,980,120
Accumulated net investment loss		(50,110	)
Accumulated net realized loss on investments		(51,662,119	)
Net unrealized depreciation on investments		(110,086	)
Net assets	$	7,157,805
A-Class:
Net assets	$	297,646
Capital shares outstanding		13,706
Net asset value per share	$	21.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	22.80
C-Class:
Net assets	$	778,383
Capital shares outstanding		39,708
Net asset value per share	$	19.60
H-Class:
Net assets	$	6,081,776
Capital shares outstanding		279,432
Net asset value per share	$	21.76

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	12,292
Interest		37,976
Total investment income		50,268
Expenses:
Management fees		44,387
Distribution and service fees:
A-Class		6,413
C-Class		4,734
H-Class		4,733
Transfer agent and administrative fees		12,330
Portfolio accounting fees		4,932
Custodian fees		632
Trustees’ fees*		285
Miscellaneous		10,899
Total expenses		89,345
Net investment loss		(39,077	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		8
Swap agreements		(830,018	)
Futures contracts		(81,683	)
Net realized loss		(911,693	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		1,586
Investments in affiliated issuers		2,916
Swap agreements		47,532
Futures contracts		93,654
Net change in unrealized appreciation (depreciation)		145,688
Net realized and unrealized loss		(766,005	)
Net decrease in net assets resulting from operations	$	(805,082	)

* 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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(39,077	)	$	(131,930	)
Net realized loss on investments		(911,693	)		(3,303,482	)
Net change in unrealized appreciation (depreciation) on investments		145,688			93,420
Net decrease in net assets resulting from operations		(805,082	)		(3,341,992	)
Capital share transactions:
Proceeds from sale of shares
A-Class		378,317			14,626,343
C-Class		200,469			4,936,900
H-Class		20,728,280			89,823,769
Cost of shares redeemed
A-Class		(8,332,834	)		(8,349,515	)
C-Class		(370,162	)		(5,311,313	)
H-Class		(20,091,454	)		(118,171,227	)
Net decrease from capital share transactions		(7,487,384	)		(22,445,043	)
Net decrease in net assets		(8,292,466	)		(25,787,035	)
Net assets:
Beginning of period		15,450,271			41,237,306
End of period	$	7,157,805		$	15,450,271
Accumulated net investment loss at end of period	$	(50,110	)	$	(11,033	)
Capital share activity:
Shares sold
A-Class		16,082			565,644
C-Class		9,260			224,964
H-Class		895,128			3,300,396
Shares redeemed
A-Class		(368,349	)		(290,537	)
C-Class		(17,552	)		(238,561	)
H-Class		(859,526	)		(4,247,427	)
Net decrease in shares		(324,957	)		(685,521	)

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	23.62		$	30.76		$	29.22		$	33.01		$	43.21		$	52.38
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.31	)		(.39	)		(.46	)		(.61	)		(.81	)
Net gain (loss) on investments (realized and unrealized)		(1.81	)		(6.83	)		1.93			(3.33	)		(9.59	)		(8.36	)
Total from investment operations		(1.90	)		(7.14	)		1.54			(3.79	)		(10.20	)		(9.17	)
Net asset value, end of period	$	21.72		$	23.62		$	30.76		$	29.22		$	33.01		$	43.21
Total Returnc		(8.04	%)		(23.21	%)		5.27	%		(11.48	%)		(23.59	%)		(17.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	298		$	8,645		$	2,795		$	894		$	7,302		$	635
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(1.11	%)		(1.23	%)		(1.40	%)		(1.69	%)		(1.60	%)
Total expensesd		1.74	%		1.71	%		1.70	%		1.71	%		1.72	%		1.72	%
Portfolio turnover rate		—			58	%		584	%		189	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	21.41		$	28.07		$	26.86		$	30.59		$	40.30		$	49.22
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.45	)		(.58	)		(.63	)		(.83	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(1.66	)		(6.21	)		1.79			(3.10	)		(8.88	)		(7.78	)
Total from investment operations		(1.81	)		(6.66	)		1.21			(3.73	)		(9.71	)		(8.92	)
Net asset value, end of period	$	19.60		$	21.41		$	28.07		$	26.86		$	30.59		$	40.30
Total Returnc		(8.45	%)		(23.73	%)		4.50	%		(12.19	%)		(24.08	%)		(18.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	778		$	1,028		$	1,729		$	1,680		$	568		$	409
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		(1.83	%)		(2.08	%)		(2.13	%)		(2.45	%)		(2.35	%)
Total expensesd		2.49	%		2.47	%		2.45	%		2.45	%		2.47	%		2.47	%
Portfolio turnover rate		—			58	%		584	%		189	%		—			—

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	23.69		$	30.83		$	29.30		$	33.11		$	43.26		$	52.42
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.32	)		(.41	)		(.46	)		(.65	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		(1.85	)		(6.82	)		1.94			(3.35	)		(9.50	)		(8.32	)
Total from investment operations		(1.93	)		(7.14	)		1.53			(3.81	)		(10.15	)		(9.16	)
Net asset value, end of period	$	21.76		$	23.69		$	30.83		$	29.30		$	33.11		$	43.26
Total Returnc		(8.15	%)		(23.16	%)		5.22	%		(11.51	%)		(23.46	%)		(17.46	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,082		$	5,777		$	36,713		$	5,775		$	11,691		$	12,822
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(1.14	%)		(1.28	%)		(1.41	%)		(1.69	%)		(1.62	%)
Total expensesd		1.74	%		1.72	%		1.70	%		1.70	%		1.72	%		1.74	%
Portfolio turnover rate		—			58	%		584	%		189	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

DOW JONES INDUSTRIAL AVERAGE^® 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 Dow Jones Industrials 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	December 1, 2015
C-Class	December 1, 2015
H-Class	December 1, 2015

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.5%
Guggenheim Strategy Fund I	6.5%
Boeing Co.	6.2%
Goldman Sachs Group, Inc.	5.8%
3M Co.	5.2%
UnitedHealth Group, Inc.	4.8%
Home Depot, Inc.	4.0%
McDonald's Corp.	3.8%
Apple, Inc.	3.8%
International Business Machines Corp.	3.6%
Top Ten Total	50.2%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	Since Inception (12/01/15)
A-Class Shares	8.93%	23.54%	14.23%
A-Class Shares with sales charge‡	3.76%	17.66%	11.24%
C-Class Shares	8.52%	22.61%	13.36%
C-Class Shares with CDSC§	7.52%	21.61%	13.36%
H-Class Shares	8.92%	23.54%	14.27%
Dow Jones Industrial Average Index	9.76%	25.45%	15.96%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Dow Jones Industrial Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 141

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
DOW JONES INDUSTRIAL AVERAGE® FUND

	Shares		Value
COMMON STOCKS† - 79.8%
Industrial - 17.8%
Boeing Co.		20,906	$	5,314,515
3M Co.		20,906		4,388,169
Caterpillar, Inc.		20,906		2,607,187
United Technologies Corp.		20,906		2,426,769
General Electric Co.		20,906		505,507
Total Industrial				15,242,147
Financial - 16.0%
Goldman Sachs Group, Inc.		20,906		4,958,695
Travelers Companies, Inc.		20,906		2,561,403
Visa, Inc. — Class A		20,906		2,200,147
JPMorgan Chase & Co.		20,906		1,996,732
American Express Co.		20,906		1,891,157
Total Financial				13,608,134
Consumer, Non-cyclical - 13.8%
UnitedHealth Group, Inc.		20,906		4,094,440
Johnson & Johnson		20,906		2,717,989
Procter & Gamble Co.		20,906		1,902,028
Merck & Company, Inc.		20,906		1,338,611
Coca-Cola Co.		20,906		940,979
Pfizer, Inc.		20,906		746,344
Total Consumer, Non-cyclical				11,740,391
Consumer, Cyclical - 11.0%
Home Depot, Inc.		20,906		3,419,385
McDonald’s Corp.		20,906		3,275,552
Wal-Mart Stores, Inc.		20,906		1,633,595
NIKE, Inc. — Class B		20,906		1,083,976
Total Consumer, Cyclical				9,412,508
Technology - 10.1%
Apple, Inc.		20,906		3,222,034
International Business Machines Corp.		20,906		3,033,042
Microsoft Corp.		20,905		1,557,213
Intel Corp.		20,906		796,100
Total Technology				8,608,389
Energy - 4.9%
Chevron Corp.		20,906		2,456,455
Exxon Mobil Corp.		20,906		1,713,874
Total Energy				4,170,329
Communications - 4.5%
Walt Disney Co.		20,906		2,060,705
Verizon Communications, Inc.		20,906		1,034,638
Cisco Systems, Inc.		20,905		703,035
Total Communications				3,798,378
Basic Materials - 1.7%
DowDuPont, Inc.		20,906		1,447,322
Total Common Stocks
(Cost $60,189,011)				68,027,598
MUTUAL FUNDS† - 13.1%
Guggenheim Strategy Fund II1		222,337		5,571,777
Guggenheim Strategy Fund I1		221,470		5,561,115
Total Mutual Funds
(Cost $11,065,432)				11,132,892

	Face Amount
REPURCHASE AGREEMENTS††,2 - 7.8%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/173	$	3,336,281		3,336,281
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/173		1,668,140		1,668,140
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/173		927,736		927,736
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		668,966		668,966
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		70,159		70,159
Total Repurchase Agreements
(Cost $6,671,282)				6,671,282
Total Investments - 100.7%
(Cost $77,925,725)			$	85,831,772
Other Assets & Liabilities, net - (0.7)%				(618,730	)
Total Net Assets - 100.0%			$	85,213,042

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
BNP Paribas	Dow Jones Industrial Average Index	1.74	%	At Maturity	10/30/17		673	$	15,070,091	$	40,312
Barclays Bank plc	Dow Jones Industrial Average Index	1.70	%	At Maturity	10/31/17		83		1,859,495		1,722
								$	16,929,586	$	42,034

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
DOW JONES INDUSTRIAL AVERAGE® FUND

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	68,027,598	$	—	$	—	$	—	$	68,027,598
Equity Index Swap Agreements		—		—		42,034		—		42,034
Mutual Funds		11,132,892		—		—		—		11,132,892
Repurchase Agreements		—		6,671,282		—		—		6,671,282
Total Assets	$	79,160,490	$	6,671,282	$	42,034	$	—	$	85,873,806

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	5,547,747	$	200,000	$	(200,000	)	$	598	$	12,770	$	5,561,115		221,470	$	49,579
Guggenheim Strategy Fund II		5,558,437		—		—			—		13,340		5,571,777		222,337		62,615
	$	11,106,184	$	200,000	$	(200,000	)	$	598	$	26,110	$	11,132,892			$	112,194

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $60,189,011)	$	68,027,598
Investments in affiliated issuers, at value (cost $11,065,432)		11,132,892
Repurchase agreements, at value (cost $6,671,282)		6,671,282
Segregated cash with broker		310,000
Unrealized appreciation on swap agreements		42,034
Receivables:
Fund shares sold		491,554
Dividends		45,752
Swap settlement		3,810
Interest		371
Securities lending income		198
Total assets		86,725,491
Liabilities:
Payable for:
Fund shares redeemed		1,366,294
Management fees		55,628
Distribution and service fees		19,883
Transfer agent and administrative fees		18,542
Portfolio accounting fees		7,417
Miscellaneous		44,685
Total liabilities		1,512,449
Commitments and contingent liabilities (Note 12)		—
Net assets	$	85,213,042
Net assets consist of:
Paid in capital	$	73,542,725
Undistributed net investment income		405,685
Accumulated net realized gain on investments		3,316,551
Net unrealized appreciation on investments		7,948,081
Net assets	$	85,213,042
A-Class:
Net assets	$	26,635,279
Capital shares outstanding		419,814
Net asset value per share	$	63.45
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.60
C-Class:
Net assets	$	2,209,082
Capital shares outstanding		35,307
Net asset value per share	$	62.57
H-Class:
Net assets	$	56,368,681
Capital shares outstanding		887,991
Net asset value per share	$	63.48

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers	$	704,949
Dividends from securities of affiliated issuers		112,194
Interest		56,419
Income from securities lending, net		234
Total investment income		873,796
Expenses:
Management fees		306,690
Distribution and service fees:
A-Class		30,620
C-Class		10,718
H-Class		68,930
Transfer agent and administrative fees		102,230
Portfolio accounting fees		40,892
Registration fees		36,297
Custodian fees		5,338
Trustees’ fees*		3,220
Line of credit fees		418
Miscellaneous		49,545
Total expenses		654,898
Net investment income		218,898
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		874,552
Investments in affiliated issuers		598
Swap agreements		1,887,223
Futures contracts		222,259
Net realized gain		2,984,632
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		3,742,852
Investments in affiliated issuers		26,110
Swap agreements		47,470
Futures contracts		46,288
Net change in unrealized appreciation (depreciation)		3,862,720
Net realized and unrealized gain		6,847,352
Net increase in net assets resulting from operations	$	7,066,250

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

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	218,898		$	219,805
Net realized gain on investments		2,984,632			4,537,566
Net change in unrealized appreciation (depreciation) on investments		3,862,720			3,128,777
Net increase in net assets resulting from operations		7,066,250			7,886,148
Distributions to shareholders from:
Net investment income
A-Class		—			(3,923	)
C-Class		—			(619	)
H-Class		—			(28,476	)
Net realized gains
A-Class		—			(53,197	)
C-Class		—			(8,391	)
H-Class		—			(386,186	)
Total distributions to shareholders		—			(480,792	)
Capital share transactions:
Proceeds from sale of shares
A-Class		44,551,504			37,739,580
C-Class		1,136,986			1,702,969
H-Class		152,959,730			461,245,485
Distributions reinvested
A-Class		—			57,061
C-Class		—			8,981
H-Class		—			414,467
Cost of shares redeemed
A-Class		(39,567,978	)		(63,683,914	)
C-Class		(1,242,885	)		(522,595	)
H-Class		(143,853,470	)		(444,210,303	)
Net increase (decrease) from capital share transactions		13,983,887			(7,248,269	)
Net increase in net assets		21,050,137			157,087
Net assets:
Beginning of period		64,162,905			64,005,818
End of period	$	85,213,042		$	64,162,905
Undistributed net investment income at end of period	$	405,685		$	186,787
Capital share activity:
Shares sold
A-Class		743,810			676,602
C-Class		18,981			32,390
H-Class		2,515,277			8,685,078
Shares issued from reinvestment of distributions
A-Class		—			1,061
C-Class		—			168
H-Class		—			7,701
Shares redeemed
A-Class		(659,172	)		(1,236,579	)
C-Class		(20,863	)		(10,162	)
H-Class		(2,356,382	)		(8,345,243	)
Net increase (decrease) in shares		241,651			(188,984	)

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

DOW JONES INDUSTRIAL AVERAGE^® 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, 2017a			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	58.25		$	49.60		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.15			.23			(.03	)
Net gain (loss) on investments (realized and unrealized)		5.05			8.73			(.37	)
Total from investment operations		5.20			8.96			(.40	)
Less distributions from:
Net investment income		—			(.02	)		—
Net realized gains		—			(.29	)		—
Total distributions		—			(.31	)		—
Net asset value, end of period	$	63.45		$	58.25		$	49.60
Total Returne		8.93	%		18.10	%		(0.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26,635		$	19,523		$	44,351
Ratios to average net assets:
Net investment income (loss)		0.50	%		0.44	%		(0.21	%)
Total expensesd		1.58	%		1.56	%		1.55	%
Portfolio turnover rate		71	%		668	%		98	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	57.66		$	49.47		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.07	)		(.11	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		4.98			8.61			(.46	)
Total from investment operations		4.91			8.50			(.53	)
Less distributions from:
Net investment income		—			(.02	)		—
Net realized gains		—			(.29	)		—
Total distributions		—			(.31	)		—
Net asset value, end of period	$	62.57		$	57.66		$	49.47
Total Returne		8.52	%		17.21	%		(1.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,209		$	2,144		$	732
Ratios to average net assets:
Net investment income (loss)		(0.25	%)		(0.21	%)		(0.43	%)
Total expensesd		2.33	%		2.32	%		2.30	%
Portfolio turnover rate		71	%		668	%		98	%

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

DOW JONES INDUSTRIAL AVERAGE^® 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, 2017a			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	58.28		$	49.59		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.18			.28			(.03	)
Net gain (loss) on investments (realized and unrealized)		5.02			8.72			(.38	)
Total from investment operations		5.20			9.00			(.41	)
Less distributions from:
Net investment income		—			(.02	)		—
Net realized gains		—			(.29	)		—
Total distributions		—			(.31	)		—
Net asset value, end of period	$	63.48		$	58.28		$	49.59
Total Returne		8.92	%		18.20	%		(0.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	56,369		$	42,495		$	18,923
Ratios to average net assets:
Net investment income (loss)		0.58	%		0.52	%		(0.17	%)
Total expensesd		1.58	%		1.57	%		1.55	%
Portfolio turnover rate		71	%		668	%		98	%

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: December 1, 2015. 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 charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
A-Class	March 31, 2004
C-Class	May 2, 2001
H-Class	September 18, 2014

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
U.S. Treasury Bond	63.9%
Guggenheim Strategy Fund II	7.4%
Guggenheim Strategy Fund I	5.8%
Total	77.1%

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

148 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	5.10%	(11.60%)	2.79%	7.95%
A-Class Shares	4.99%	(11.72%)	2.66%	7.75%
A-Class Shares with sales charge‡	0.00%	(15.92%)	1.67%	7.22%
C-Class Shares	4.59%	(12.40%)	1.83%	6.90%
C-Class Shares with CDSC§	3.59%	(13.24%)	1.83%	6.90%
Bloomberg Barclays Long Treasury Bond Index	4.56%	(6.35%)	2.84%	6.89%
Daily Price Movement of Long Treasury Bond**	3.56%	(11.52%)	(0.79%)	3.03%
		6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares		4.97%	(11.79%)	5.52%
Bloomberg Barclays Long Treasury Bond Index		4.56%	(6.35%)	5.66%
Daily Price Movement of Long Treasury Bond**		3.56%	(11.52%)	2.63%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays Long Treasury Bond Index and the Daily Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce its reported returns.
**	Does not reflect any interest.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 149

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

		Shares		Value
MUTUAL FUNDS† - 13.2%
Guggenheim Strategy Fund II1	��		214,716	$	5,380,775
Guggenheim Strategy Fund I1			165,978		4,167,709
Total Mutual Funds
(Cost $9,476,633)					9,548,484

	Face Amount
U.S. GOVERNMENT SECURITIES†† - 63.9%
U.S. Treasury Bond
2.75% due 08/15/47	$	47,300,000	46,257,923
Total U.S. Government Securities
(Cost $46,471,410)			46,257,923
FEDERAL AGENCY DISCOUNT NOTES†† - 13.8%
Fannie Mae2
0.71% due 10/02/173,4		10,000,000	9,999,736
Total Federal Agency Discount Notes
(Cost $9,999,736)			9,999,736
U.S. TREASURY BILLS†† - 0.7%
U.S. Treasury Bill
1.03% due 12/14/173,4,5		500,000	499,029
Total U.S. Treasury Bills
(Cost $498,936)			499,029

REPURCHASE AGREEMENTS††,6 - 6.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	2,381,949		2,381,949
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17	1,190,975		1,190,975
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17	592,209		592,209
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	541,103		541,103
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	56,749		56,749
Total Repurchase Agreements
(Cost $4,762,985)			4,762,985
Total Investments - 98.2%
(Cost $71,209,700)		$	71,068,157
Other Assets & Liabilities, net - 1.8%			1,274,768
Total Net Assets - 100.0%		$	72,342,925

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Interest Rate Futures Contracts Purchased†
U.S. Treasury Ultra Long Bond Futures Contracts		282	Dec 2017	$	46,521,188	$	(749,658	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
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	Rate indicated is the effective yield at the time of purchase.
4	Zero coupon rate security.
5	All or a portion of this security is pledged as futures collateral at September 30, 2017.
6	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Federal Agency Discount Notes	$	—	$	—	$	9,999,736	$	—	$	9,999,736
Mutual Funds		9,548,484		—		—		—		9,548,484
Repurchase Agreements		—		—		4,762,985		—		4,762,985
U.S. Government Securities		—		—		46,257,923		—		46,257,923
U.S. Treasury Bills		—		—		499,029		—		499,029
Total Assets	$	9,548,484	$	—	$	61,519,673	$	—	$	71,068,157
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts	$	—	$	749,658	$	—	$	—	$	749,658

* Other financial instruments include futures contracts, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	5,157,351	$	—	$	(1,000,001	)	$	997	$	9,362	$	4,167,709		165,978	$	41,151
Guggenheim Strategy Fund II		5,467,852		—		(100,000	)		200		12,723		5,380,775		214,716		60,979
	$	10,625,203	$	—	$	(1,100,001	)	$	1,197	$	22,085	$	9,548,484			$	102,130

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $56,970,082)	$	56,756,688
Investments in affiliated issuers, at value (cost $9,476,633)		9,548,484
Repurchase agreements, at value (cost $4,762,985)		4,762,985
Segregated cash with broker		528,400
Receivables:
Fund shares sold		2,326,571
Interest		166,393
Variation margin		69,373
Dividends		16,375
Total assets		74,175,269
Liabilities:
Payable for:
Fund shares redeemed		1,740,167
Management fees		37,607
Transfer agent and administrative fees		15,043
Distribution and service fees		11,588
Portfolio accounting fees		7,521
Miscellaneous		20,418
Total liabilities		1,832,344
Commitments and contingent liabilities (Note 12)		—
Net assets	$	72,342,925
Net assets consist of:
Paid in capital	$	77,573,560
Undistributed net investment income		5,765
Accumulated net realized loss on investments		(4,345,199	)
Net unrealized depreciation on investments		(891,201	)
Net assets	$	72,342,925
Investor Class:
Net assets	$	43,432,560
Capital shares outstanding		825,000
Net asset value per share	$	52.65
A-Class:
Net assets	$	6,560,516
Capital shares outstanding		123,630
Net asset value per share	$	53.07
Maximum offering price per share (Net asset value divided by 95.25%)	$	55.72
C-Class:
Net assets	$	1,162,863
Capital shares outstanding		22,070
Net asset value per share	$	52.69
H-Class:
Net assets	$	21,186,986
Capital shares outstanding		399,086
Net asset value per share	$	53.09

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	102,130
Interest		972,169
Total investment income		1,074,299
Expenses:
Management fees		209,172
Distribution and service fees:
A-Class		20,107
C-Class		6,645
H-Class		46,224
Transfer agent and administrative fees		83,670
Portfolio accounting fees		41,834
Registration fees		38,348
Custodian fees		5,517
Trustees’ fees*		3,764
Line of credit fees		353
Miscellaneous		31,844
Total expenses		487,478
Net investment income		586,821
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,222,044
Investments in affiliated issuers		1,197
Futures contracts		1,949,600
Net realized gain		4,172,841
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(646,231	)
Investments in affiliated issuers		22,085
Futures contracts		(1,092,073	)
Net change in unrealized appreciation (depreciation)		(1,716,219	)
Net realized and unrealized gain		2,456,622
Net increase in net assets resulting from operations	$	3,043,443

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

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	586,821		$	1,048,160
Net realized gain (loss) on investments		4,172,841			(5,485,314	)
Net change in unrealized appreciation (depreciation) on investments		(1,716,219	)		(2,028,431	)
Net increase (decrease) in net assets resulting from operations		3,043,443			(6,465,585	)
Distributions to shareholders from:
Net investment income
Investor Class		(226,101	)		(609,269	)
A-Class		(107,884	)		(128,172	)
C-Class		(3,729	)		(6,597	)
H-Class		(245,811	)		(301,653	)
Net realized gains
Investor Class		—			(808,891	)
A-Class		—			(98,621	)
C-Class		—			(79,454	)
H-Class		—			(675,371	)
Total distributions to shareholders		(583,525	)		(2,708,028	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		289,532,965			1,300,421,018
A-Class		47,528,722			46,105,383
C-Class		445,158			7,485,391
H-Class		576,504,859			1,635,285,193
Distributions reinvested
Investor Class		224,045			1,395,924
A-Class		104,410			218,258
C-Class		3,400			81,014
H-Class		245,811			976,087
Cost of shares redeemed
Investor Class		(263,467,692	)		(1,329,635,477	)
A-Class		(57,645,564	)		(39,972,613	)
C-Class		(1,120,768	)		(8,731,488	)
H-Class		(568,642,921	)		(1,677,056,978	)
Net increase (decrease) from capital share transactions		23,712,425			(63,428,288	)
Net increase (decrease) in net assets		26,172,343			(72,601,901	)
Net assets:
Beginning of period		46,170,582			118,772,483
End of period	$	72,342,925		$	46,170,582
Undistributed net investment income at end of period	$	5,765		$	2,469

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		5,499,737			22,993,824
A-Class		903,666			909,264
C-Class		8,520			131,201
H-Class		10,919,071			28,369,982
Shares issued from reinvestment of distributions
Investor Class		4,247			26,070
A-Class		1,977			4,205
C-Class		64			1,574
H-Class		4,622			18,344
Shares redeemed
Investor Class		(5,005,719	)		(23,663,874	)
A-Class		(1,093,139	)		(763,665	)
C-Class		(21,556	)		(154,091	)
H-Class		(10,761,814	)		(28,998,992	)
Net increase (decrease) in shares		459,676			(1,126,158	)

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	50.49		$	58.12		$	59.12		$	45.80		$	48.55		$	44.73
Income (loss) from investment operations:
Net investment income (loss)b		.41			.70			.76			.63			.61			.57
Net gain (loss) on investments (realized and unrealized)		2.16			(5.50	)		(.67	)		13.34			(2.76	)		4.21
Total from investment operations		2.57			(4.80	)		.09			13.97			(2.15	)		4.78
Less distributions from:
Net investment income		(.41	)		(.72	)		(1.09	)		(.65	)		(.60	)		(.72	)
Net realized gains		—			(2.11	)		—			—			—			(.24	)
Total distributions		(.41	)		(2.83	)		(1.09	)		(.65	)		(.60	)		(.96	)
Net asset value, end of period	$	52.65		$	50.49		$	58.12		$	59.12		$	45.80		$	48.55
Total Returnc		5.10	%		(8.39	%)		0.33	%		30.66	%		(4.37	%)		10.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,433		$	16,496		$	56,419		$	61,460		$	43,573		$	281,800
Ratios to average net assets:
Net investment income (loss)		1.56	%		1.21	%		1.39	%		1.21	%		1.22	%		1.15	%
Total expensesd		0.99	%		0.98	%		0.94	%		0.95	%		0.97	%		0.95	%
Portfolio turnover rate		957	%		2,490	%		2,699	%		1,932	%		2,661	%		1,759	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	50.87		$	58.50		$	59.47		$	46.07		$	48.73		$	44.77
Income (loss) from investment operations:
Net investment income (loss)b		.35			.63			.64			.51			.48			.48
Net gain (loss) on investments (realized and unrealized)		2.20			(5.57	)		(.65	)		13.42			(2.65	)		4.29
Total from investment operations		2.55			(4.94	)		(.01	)		13.93			(2.17	)		4.77
Less distributions from:
Net investment income		(.35	)		(.58	)		(.96	)		(.53	)		(.49	)		(.57	)
Net realized gains		—			(2.11	)		—			—			—			(.24	)
Total distributions		(.35	)		(2.69	)		(.96	)		(.53	)		(.49	)		(.81	)
Net asset value, end of period	$	53.07		$	50.87		$	58.50		$	59.47		$	46.07		$	48.73
Total Returnc		4.99	%		(8.54	%)		0.12	%		30.37	%		(4.40	%)		10.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,561		$	15,827		$	9,438		$	3,879		$	1,724		$	15,476
Ratios to average net assets:
Net investment income (loss)		1.34	%		1.19	%		1.16	%		0.97	%		1.04	%		0.94	%
Total expensesd		1.24	%		1.24	%		1.20	%		1.20	%		1.22	%		1.20	%
Portfolio turnover rate		957	%		2,490	%		2,699	%		1,932	%		2,661	%		1,759	%

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

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	50.52		$	58.13		$	59.09		$	45.79		$	48.51		$	44.63
Income (loss) from investment operations:
Net investment income (loss)b		.15			.13			.22			.13			.12			.15
Net gain (loss) on investments (realized and unrealized)		2.17			(5.47	)		(.64	)		13.30			(2.71	)		4.21
Total from investment operations		2.32			(5.34	)		(.42	)		13.43			(2.59	)		4.36
Less distributions from:
Net investment income		(.15	)		(.16	)		(.54	)		(.13	)		(.13	)		(.24	)
Net realized gains		—			(2.11	)		—			—			—			(.24	)
Total distributions		(.15	)		(2.27	)		(.54	)		(.13	)		(.13	)		(.48	)
Net asset value, end of period	$	52.69		$	50.52		$	58.13		$	59.09		$	45.79		$	48.51
Total Returnc		4.59	%		(9.24	%)		(0.62	%)		29.37	%		(5.33	%)		9.69	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,163		$	1,770		$	3,276		$	2,873		$	3,198		$	4,594
Ratios to average net assets:
Net investment income (loss)		0.56	%		0.22	%		0.41	%		0.26	%		0.34	%		0.31	%
Total expensesd		1.99	%		1.97	%		1.95	%		1.95	%		1.97	%		1.94	%
Portfolio turnover rate		957	%		2,490	%		2,699	%		1,932	%		2,661	%		1,759	%

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	50.91		$	58.55		$	59.44		$	48.83
Income (loss) from investment operations:
Net investment income (loss)b		.36			.58			.61			.28
Net gain (loss) on investments (realized and unrealized)		2.17			(5.53	)		(.54	)		10.59
Total from investment operations		2.53			(4.95	)		.07			10.87
Less distributions from:
Net investment income		(.35	)		(.58	)		(.96	)		(.26	)
Net realized gains		—			(2.11	)		—			—
Total distributions		(.35	)		(2.69	)		(.96	)		(.26	)
Net asset value, end of period	$	53.09		$	50.91		$	58.55		$	59.44
Total Returnc		4.97	%		(8.55	%)		0.26	%		22.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,187		$	12,077		$	49,639		$	78,382
Ratios to average net assets:
Net investment income (loss)		1.33	%		1.00	%		1.11	%		0.89	%
Total expensesd		1.24	%		1.22	%		1.20	%		1.18	%
Portfolio turnover rate		957	%		2,490	%		2,699	%		1,932	%

a	Unaudited figures for the period ended September 30, 2017. 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 the commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through March 31, 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 | 157

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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
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 Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	8.6%
Guggenheim Strategy Fund I	8.2%
Total	16.8%

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

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	(4.69%)	8.61%	(4.00%)	(9.60%)
A-Class Shares	(4.84%)	8.33%	(4.25%)	(9.83%)
A-Class Shares with sales charge‡	(9.36%)	3.19%	(5.18%)	(10.27%)
C-Class Shares	(5.19%)	7.51%	(4.97%)	(10.50%)
C-Class Shares with CDSC§	(6.14%)	6.51%	(4.97%)	(10.50%)
Bloomberg Barclays Long Treasury Bond Index	4.56%	(6.35%)	2.84%	6.89%
Daily Price Movement of Long Treasury Bond**	3.56%	(11.52%)	(0.79%)	3.03%
		6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares		(4.85%)	8.30%	(7.41%)
Bloomberg Barclays Long Treasury Bond Index		4.56%	(6.35%)	5.66%
Daily Price Movement of Long Treasury Bond**		3.56%	(11.52%)	2.63%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays Long Treasury Bond Index and the Daily Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Does not reflect any interest.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 16.8%
Guggenheim Strategy Fund II1		424,204	$	10,630,564
Guggenheim Strategy Fund I1		403,967		10,143,619
Total Mutual Funds
(Cost $20,549,691)				20,774,183

	Face Amount
FEDERAL AGENCY NOTES†† - 65.7%
Federal Home Loan Bank2
1.00% due 10/26/183	$	17,350,000	17,333,032
1.19% due 09/13/223		10,000,000	9,996,120
1.21% (3 Month USD LIBOR -10 bps) due 11/17/174		5,000,000	5,000,972
Total Federal Home Loan Bank			32,330,124
Freddie Mac5
1.75% due 10/26/223		12,500,000	12,500,000
1.19% due 08/22/223		10,000,000	9,985,780
1.24% due 04/25/223		5,000,000	4,999,485
1.00% due 01/27/203		3,500,000	3,494,194
Total Freddie Mac			30,979,459
Federal Farm Credit Bank2
1.17% (U.S. Prime Rate -308 bps) due 03/12/194		14,500,000	14,502,085
1.46% (U.S. Prime Rate -278 bps) due 06/12/184		1,300,000	1,303,283
1.50% (U.S. Prime Rate -275 bps) due 07/18/184		1,000,000	1,003,263
1.29% (U.S. Prime Rate+ -296 bps) due 05/11/184		1,000,000	1,000,858
Total Federal Farm Credit Bank			17,809,489
Total Federal Agency Notes
(Cost $81,144,999)			81,119,072
FEDERAL AGENCY DISCOUNT NOTES†† - 29.5%
Federal Home Loan Bank2
0.98% due 10/27/176,7		28,500,000	28,479,828
1.01% due 10/16/176,7		1,800,000	1,799,239
1.02% due 10/16/176,7		700,000	699,704
1.03% due 10/23/176,7		500,000	499,685
Total Federal Home Loan Bank			31,478,456
Fannie Mae5
0.71% due 10/02/176,7		5,000,000	4,999,868
Total Federal Agency Discount Notes
(Cost $36,478,324)			36,478,324
FEDERAL AGENCY BONDS†† - 4.3%
Private Export Funding Corp.
2.25% due 12/15/17		4,255,000	4,261,991

Farmer Mac2
1.47% (Fed Funds Effective Rate + 32 bps) due 01/25/184	$	1,000,000	$	1,001,157
Total Federal Agency Bonds
(Cost $5,265,088)				5,263,148
U.S. TREASURY BILLS†† - 0.4%
U.S. Treasury Bill
1.03% due 12/14/176,7,8		500,000		499,029
Total U.S. Treasury Bills
(Cost $498,936)				499,029
REPURCHASE AGREEMENTS††,9 - 86.6%
Individual Repurchase Agreements
Mizuho Financial Group, Inc. issued 09/29/17 at 1.00% due 10/02/17 (secured by U.S. Treasury Bond, at a rate of 2.75% and maturing 08/15/47 as collateral, with a value of $55,707,234) to be repurchased at $54,613,678		54,612,161		54,612,161
Barclays Capital issued 09/29/17 at 0.90% due 10/02/17 (secured by U.S. Treasury Bond, at a rate of 2.75% and maturing 08/15/47 as collateral, with a value of $43,283,943) to be repurchased at $42,433,061		42,432,000		42,432,000
Joint Repurchase Agreements
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		4,961,739		4,961,739
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		2,480,870		2,480,870
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		1,233,606		1,233,606
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		1,127,149		1,127,149
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		118,212		118,212
Total Repurchase Agreements
(Cost $106,965,737)				106,965,737
Total Investments - 203.3%
(Cost $250,902,775)			$	251,099,493

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Face Amount		Value
U.S. Government Securities Sold Short†† - (73.9)%
U.S. Treasury Bond
2.75% due 08/15/47	$	93,300,000	$	(91,244,485	)
Total U.S. Government Securities Sold Short
(Proceeds $92,270,785)				(91,244,485	)
Other Assets & Liabilities, net - (29.4)%				(36,314,654	)
Total Net Assets - 100.0%			$	123,540,354

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Gain
Interest Rate Futures Contracts Sold Short†
U.S. Treasury Ultra Long Bond Futures Contracts		227	Dec 2017	$	37,447,906	$	711,817

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
4	Variable rate security. Rate indicated is rate effective at September 30, 2017.
5	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.
6	Rate indicated is the effective yield at the time of purchase.
7	Zero coupon rate security.
8	All or a portion of this security is pledged as futures collateral at September 30, 2017.
9	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Federal Agency Bonds	$	—	$	—	$	5,263,148	$	—	$	5,263,148
Federal Agency Discount Notes		—		—		36,478,324		—		36,478,324
Federal Agency Notes		—		—		81,119,072		—		81,119,072
Interest Rate Futures Contracts		—		711,817		—		—		711,817
Mutual Funds		20,774,183		—		—		—		20,774,183
Repurchase Agreements		—		—		106,965,737		—		106,965,737
U.S. Treasury Bills		—		—		499,029		—		499,029
Total Assets	$	20,774,183	$	711,817	$	230,325,310	$	—	$	251,811,310
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Government Securities	$	—	$	—	$	91,244,485	$	—	$	91,244,485

* Other financial instruments include futures contracts, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	12,116,192	$	—	$	(2,000,000	)	$	12,424	$	15,003	$	10,143,619		403,967	$	106,061
Guggenheim Strategy Fund II		10,605,112		—		—			—		25,452		10,630,564		424,204		119,465
	$	22,721,304	$	—	$	(2,000,000	)	$	12,424	$	40,455	$	20,774,183			$	225,526

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $123,387,347)	$	123,359,573
Investments in affiliated issuers, at value (cost $20,549,691)		20,774,183
Repurchase agreements, at value (cost $106,965,737)		106,965,737
Segregated cash with broker		583,900
Receivables:
Fund shares sold		2,671,684
Interest		170,817
Dividends		35,920
Total assets		254,561,814
Liabilities:
Securities sold short, at value (proceeds $92,270,785)		91,244,485
Payable for:
Securities purchased		20,128,157
Fund shares redeemed		19,016,736
Management fees		84,435
Variation margin		71,929
Transfer agent and administrative fees		23,454
Distribution and service fees		19,838
Portfolio accounting fees		9,381
Miscellaneous		423,045
Total liabilities		131,021,460
Commitments and contingent liabilities (Note 12)		—
Net assets	$	123,540,354
Net assets consist of:
Paid in capital	$	471,772,762
Accumulated net investment loss		(2,506,159	)
Accumulated net realized loss on investments		(347,661,084	)
Net unrealized appreciation on investments		1,934,835
Net assets	$	123,540,354
Investor Class:
Net assets	$	79,135,275
Capital shares outstanding		2,305,742
Net asset value per share	$	34.32
A-Class:
Net assets	$	11,278,723
Capital shares outstanding		341,407
Net asset value per share	$	33.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	34.69
C-Class:
Net assets	$	18,947,860
Capital shares outstanding		651,895
Net asset value per share	$	29.07
H-Class:
Net assets	$	14,178,496
Capital shares outstanding		427,810
Net asset value per share	$	33.14

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	225,526
Interest		901,245
Total investment income		1,126,771
Expenses:
Management fees		584,670
Distribution and service fees:
A-Class		18,136
C-Class		102,113
H-Class		18,583
Transfer agent and administrative fees		162,408
Short interest expense		1,345,926
Portfolio accounting fees		64,963
Custodian fees		8,660
Trustees’ fees*		6,452
Line of credit fees		75
Miscellaneous		108,906
Total expenses		2,420,892
Net investment loss		(1,294,121	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		70,438
Investments in affiliated issuers		12,424
Futures contracts		(2,527,551	)
Securities sold short		(6,014,581	)
Net realized loss		(8,459,270	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(44,424	)
Investments in affiliated issuers		40,455
Futures contracts		765,957
Securities sold short		1,449,537
Net change in unrealized appreciation (depreciation)		2,211,525
Net realized and unrealized loss		(6,247,745	)
Net decrease in net assets resulting from operations	$	(7,541,866	)

* 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 | 163

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,294,121	)	$	(4,762,348	)
Net realized gain (loss) on investments		(8,459,270	)		8,992,388
Net change in unrealized appreciation (depreciation) on investments		2,211,525			(348,233	)
Net increase (decrease) in net assets resulting from operations		(7,541,866	)		3,881,807
Capital share transactions:
Proceeds from sale of shares
Investor Class		181,618,996			1,461,086,838
A-Class		1,087,251			10,846,573
C-Class		328,817			6,375,655
H-Class		569,807,226			2,601,327,502
Cost of shares redeemed
Investor Class		(182,354,758	)		(1,471,262,255	)
A-Class		(7,641,242	)		(10,739,740	)
C-Class		(3,569,474	)		(11,684,154	)
H-Class		(598,122,250	)		(2,627,383,990	)
Net decrease from capital share transactions		(38,845,434	)		(41,433,571	)
Net decrease in net assets		(46,387,300	)		(37,551,764	)
Net assets:
Beginning of period		169,927,654			207,479,418
End of period	$	123,540,354		$	169,927,654
Accumulated net investment loss at end of period	$	(2,506,159	)	$	(1,212,038	)
Capital share activity:
Shares sold
Investor Class		5,260,918			44,231,107
A-Class		32,580			330,693
C-Class		11,245			220,928
H-Class		16,837,362			79,320,319
Shares redeemed
Investor Class		(5,290,892	)		(44,494,650	)
A-Class		(229,283	)		(326,449	)
C-Class		(120,837	)		(406,484	)
H-Class		(17,666,742	)		(80,262,131	)
Net decrease in shares		(1,165,649	)		(1,386,667	)

164 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	36.02		$	34.27		$	35.78		$	46.01		$	43.94		$	48.33
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.88	)		(1.15	)		(1.15	)		(1.65	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(1.40	)		2.63			(.36	)		(9.08	)		3.72			(3.19	)
Total from investment operations		(1.70	)		1.75			(1.51	)		(10.23	)		2.07			(4.39	)
Net asset value, end of period	$	34.32		$	36.02		$	34.27		$	35.78		$	46.01		$	43.94
Total Returnc		(4.69	%)		5.08	%		(4.22	%)		(22.23	%)		4.69	%		(9.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	79,135		$	84,123		$	89,071		$	105,696		$	177,735		$	143,739
Ratios to average net assets:
Net investment income (loss)		(1.75	%)		(2.59	%)		(3.07	%)		(2.80	%)		(3.46	%)		(2.82	%)
Total expensesd,g		3.50	%		3.38	%		3.48	%		3.15	%		3.50	%		2.99	%
Portfolio turnover rate		381	%		1,436	%		838	%		2,190	%		1,097	%		1,309	%

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	34.71		$	33.11		$	34.66		$	44.68		$	42.77		$	47.18
Income (loss) from investment operations:
Net investment income (loss)b		(.34	)		(.94	)		(1.20	)		(1.23	)		(1.73	)		(1.35	)
Net gain (loss) on investments (realized and unrealized)		(1.33	)		2.54			(.35	)		(8.79	)		3.64			(3.06	)
Total from investment operations		(1.67	)		1.60			(1.55	)		(10.02	)		1.91			(4.41	)
Net asset value, end of period	$	33.04		$	34.71		$	33.11		$	34.66		$	44.68		$	42.77
Total Returnc		(4.84	%)		4.83	%		(4.47	%)		(22.43	%)		4.51	%		(9.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,279		$	18,678		$	17,676		$	21,580		$	49,859		$	32,842
Ratios to average net assets:
Net investment income (loss)		(2.05	%)		(2.85	%)		(3.32	%)		(3.06	%)		(3.73	%)		(3.20	%)
Total expensesd,g		3.78	%		3.67	%		3.75	%		3.40	%		3.78	%		3.37	%
Portfolio turnover rate		381	%		1,436	%		838	%		2,190	%		1,097	%		1,309	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

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.

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f
Per Share Data
Net asset value, beginning of period	$	30.65		$	29.46		$	31.07		$	40.35		$	38.92		$	43.25
Income (loss) from investment operations:
Net investment income (loss)b		(.41	)		(1.05	)		(1.31	)		(1.36	)		(1.86	)		(1.50	)
Net gain (loss) on investments (realized and unrealized)		(1.17	)		2.24			(.30	)		(7.92	)		3.29			(2.83	)
Total from investment operations		(1.58	)		1.19			(1.61	)		(9.28	)		1.43			(4.33	)
Net asset value, end of period	$	29.07		$	30.65		$	29.46		$	31.07		$	40.35		$	38.92
Total Returnc		(5.19	%)		4.04	%		(5.18	%)		(23.00	%)		3.73	%		(10.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,948		$	23,343		$	27,899		$	35,874		$	57,323		$	55,404
Ratios to average net assets:
Net investment income (loss)		(2.76	%)		(3.59	%)		(4.08	%)		(3.78	%)		(4.45	%)		(3.96	%)
Total expensesd,g		4.50	%		4.41	%		4.50	%		4.14	%		4.49	%		4.13	%
Portfolio turnover rate		381	%		1,436	%		838	%		2,190	%		1,097	%		1,309	%

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	34.83		$	33.12		$	34.67		$	41.85
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.92	)		(1.15	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		(1.33	)		2.63			(.40	)		(6.66	)
Total from investment operations		(1.69	)		1.71			(1.55	)		(7.18	)
Net asset value, end of period	$	33.14		$	34.83		$	33.12		$	34.67
Total Returnc		(4.85	%)		5.13	%		(4.47	%)		(17.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,178		$	43,784		$	72,833		$	43,800
Ratios to average net assets:
Net investment income (loss)		(2.15	%)		(2.80	%)		(3.17	%)		(2.75	%)
Total expensesd,g		3.80	%		3.60	%		3.61	%		3.07	%
Portfolio turnover rate		381	%		1,436	%		838	%		2,190	%

a	Unaudited figures for the period ended September 30, 2017. 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 is for the entire period of the Fund, not since the commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through March 31, 2014 have been restated to reflect a 1:5 reverse effective February 21, 2014.
g	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratio for the period ended September 30 and years ended March 31 would be:

	9/30/17	3/31/17	3/31/16	3/31/15	3/31/14	3/31/13
Investor Class	1.43%	1.43%	1.40%	1.40%	1.41%	1.39%
A-Class	1.68%	1.63%	1.65%	1.65%	1.66%	1.64%
C-Class	2.43%	2.43%	2.40%	2.40%	2.41%	2.39%
H-Class	1.69%	1.68%	1.65%	1.60%	—	—

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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 II	2.6%
Guggenheim Strategy Fund I	2.5%
Guggenheim Strategy Fund III	1.6%
Total	6.7%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	3.15%	5.52%	6.16%	6.44%
A-Class Shares with sales charge‡	(1.73%)	0.51%	5.12%	5.92%
C-Class Shares	2.78%	4.73%	5.33%	5.63%
C-Class Shares with CDSC§	1.78%	3.73%	5.33%	5.63%
H-Class Shares	3.16%	5.48%	6.16%	6.43%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%
Bloomberg Barclays U.S. Corporate High Yield Index	4.19%	8.88%	6.36%	7.84%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 6.7%
Guggenheim Strategy Fund II1		528,303	$	13,239,275
Guggenheim Strategy Fund I1		514,692		12,923,919
Guggenheim Strategy Fund III1		321,636		8,053,773
Total Mutual Funds
(Cost $33,895,923)				34,216,967

	Face Amount
FEDERAL AGENCY NOTES†† - 34.7%
Federal Home Loan Bank2
1.09% (1 Month USD LIBOR -15 bps) due 04/26/183	$	38,000,000	37,996,183
1.09% (1 Month USD LIBOR -15 bps) due 03/23/183		35,000,000	34,997,235
Federal Home Loan Bank
1.04% (1 Month USD LIBOR -19 bps) due 10/20/173		23,000,000	22,999,610
1.07% (1 Month USD LIBOR -16 bps) due 01/19/183		15,000,000	14,999,051
1.19% due 09/13/224		5,000,000	4,998,060
1.23% (3 Month USD LIBOR -8 bps) due 10/25/173		300,000	300,031
Total Federal Home Loan Bank			116,290,170
Fannie Mae5
1.24% (1 Month USD LIBOR + 1 bps) due 10/05/173		25,000,000	25,000,453
Federal Farm Credit Bank2
1.17% (U.S. Prime Rate -308 bps) due 03/12/193		20,000,000	20,002,877
Federal Farm Credit Bank
1.36% (1 Month USD LIBOR + 13 bps) due 07/19/183		3,700,000	3,708,129
1.29% (3 Month USD LIBOR -3 bps) due 09/18/183		1,000,000	1,001,195
Total Federal Farm Credit Bank			24,712,201
Freddie Mac5
1.24% due 08/24/184		12,500,000	12,498,213
Total Federal Agency Notes
(Cost $178,510,134)			178,501,037
U.S. GOVERNMENT SECURITIES†† - 28.8%
United States Cash Management Bill
1.02% due 01/02/186		65,000,000	64,828,905
1.06% due 01/02/186		50,000,000	49,868,390
1.04% due 01/02/186		13,000,000	12,965,781
Total United States Cash Management Bill			127,663,076

U.S. Treasury Notes
1.32% (3 Month U.S. Treasury Bill Rate + 27 bps) due 01/31/183	20,000,000		20,018,649
Total U.S. Government Securities
(Cost $147,671,107)			147,681,725
U.S. TREASURY BILLS†† - 13.1%
U.S. Treasury Bill
1.16% due 03/22/186,7	62,500,000		62,155,996
1.10% due 12/14/176,7,8	5,000,000		4,990,292
Total U.S. Treasury Bills
(Cost $67,139,698)			67,146,288
FEDERAL AGENCY DISCOUNT NOTES†† - 10.8%
Federal Home Loan Bank2
1.04% due 12/20/176,7	40,000,000		39,908,720
1.17% due 03/19/186,7	15,000,000		14,919,495
Total Federal Home Loan Bank			54,828,215
Fannie Mae
1.27% due 03/21/183,7	485,000		485,306
Total Federal Agency Discount Notes
(Cost $55,309,073)			55,313,521
REPURCHASE AGREEMENTS††,9 - 1.9%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/1710	4,767,356		4,767,356
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/1710	2,383,678		2,383,678
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/1710	1,774,342		1,774,342
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	549,842		549,842
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	57,666		57,666
Total Repurchase Agreements
(Cost $9,532,884)			9,532,884
Total Investments - 96.0%
(Cost $492,058,819)		$	492,392,422
Other Assets & Liabilities, net - 4.0%			20,262,111
Total Net Assets - 100.0%		$	512,654,533

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Loss
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		4,004	Dec 2017	$	470,282,313	$	(3,117,439	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
HIGH YIELD STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)		Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††,11
Goldman Sachs International	iShares iBoxx High Yield Corporate Bond Swap	0.70	%	At Maturity	11/6/17		348,433	$	30,926,913	$	170,452

CENTRALLY CLEARED CREDIT DEFAULT SWAPS PROTECTION SOLD††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency	Maturity Date	Notional Principal		Notional Value			Upfront Premiums Paid		Unrealized Gain
Goldman Sachs International	ICE	CDX. NA. HY.29 5% 06/20/22		5.00	%	At Maturity	12/20/22	$	222,800,000	$	(240,289,800	)	$	16,460,401	$	1,029,399
Barclays Bank plc	ICE	CDX. NA. HY.29 5% 06/20/22		5.00	%	At Maturity	12/20/22		237,220,000		(255,841,770	)		17,318,504		1,303,265
													$	33,778,905	$	2,332,664

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2017.
4	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
5	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.
6	Zero coupon rate security.
7	Rate indicated is the effective yield at the time of purchase.
8	All or a portion of this security is pledged as futures collateral at September 30, 2017.
9	Repurchase Agreements — See Note 6.
10	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
11	Total Return based on iShares iBoxx $ High Yield Corporate Bond ETF +/- financing at variable rate. Rate indicated is the rate effective at September 30, 2017.
	CDX.NA.HY.29 Index — Credit Default Swap North American High Yield Series 29 Index.
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
HIGH YIELD STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Credit Default Swaps	$	—	$	—	$	—	$	2,332,664	$	—	$	2,332,664
Equity Index Swap Agreements		—		—		—		170,452		—		170,452
Federal Agency Discount Notes		—		—		55,313,521		—		—		55,313,521
Federal Agency Notes		—		—		178,501,037		—		—		178,501,037
Mutual Funds		34,216,967		—		—		—		—		34,216,967
Repurchase Agreements		—		—		9,532,884		—		—		9,532,884
U.S. Government Securities		—		—		147,681,725		—		—		147,681,725
U.S. Treasury Bills		—		—		67,146,288		—		—		67,146,288
Total Assets	$	34,216,967	$	—	$	458,,175,455	$	2,503,116	$	—	$	494,895,538
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts	$	—	$	3,117,439	$	—	$	—	$	—	$	3,117,439

* Other financial instruments include futures and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	12,493,038	$	399,999	$	—	$	—	$	30,882	$	12,923,919		514,692	$	115,291
Guggenheim Strategy Fund II		12,008,695		1,200,001		—		—		30,579		13,239,275		528,303		141,879
Guggenheim Strategy Fund III		6,544,723		1,500,000		—		—		9,050		8,053,773		321,636		99,331
	$	31,046,456	$	3,100,000	$	—	$	—	$	70,511	$	34,216,967			$	356,501

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $448,630,012)	$	448,642,571
Investments in affiliated issuers, at value (cost $33,895,923)	$	34,216,967
Repurchase agreements, at value (cost $9,532,884)		9,532,884
Segregated cash with broker		516,501
Unamortized upfront premiums paid on credit default swaps		33,778,905
Unrealized appreciation on swap agreements		2,503,116
Receivables:
Interest		831,370
Fund shares sold		587,514
Dividends		61,760
Total assets		530,671,588
Liabilities:
Segregated cash due to broker		15,358,951
Payable for:
Fund shares redeemed		1,017,091
Variation margin		844,595
Management fees		338,441
Distribution and service fees		115,325
Transfer agent and administrative fees		112,814
Portfolio accounting fees		37,974
Miscellaneous		191,864
Total liabilities		18,017,055
Commitments and contingent liabilities (Note12)		—
Net assets	$	512,654,533
Net assets consist of:
Paid in capital	$	489,660,673
Undistributed net investment income		4,734,017
Accumulated net realized gain on investments		18,540,563
Net unrealized depreciation on investments		(280,720	)
Net assets	$	512,654,533
A-Class:
Net assets	$	11,726,184
Capital shares outstanding		459,386
Net asset value per share	$	25.53
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.80
C-Class:
Net assets	$	4,026,933
Capital shares outstanding		175,461
Net asset value per share	$	22.95
H-Class:
Net assets	$	496,901,416
Capital shares outstanding		19,486,332
Net asset value per share	$	25.50

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	356,501
Interest		2,148,696
Total investment income		2,505,197
Expenses:
Management fees		1,881,609
Distribution and service fees:
A-Class		17,661
C-Class		22,016
H-Class		604,038
Transfer agent and administrative fees		627,203
Portfolio accounting fees		216,668
Registration fees		210,137
Custodian fees		32,784
Trustees’ fees*		20,372
Miscellaneous		215,944
Total expenses		3,848,432
Net investment loss		(1,343,235	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		38,450
Swap agreements		13,511,379
Futures contracts		6,454,564
Net realized gain		20,004,393
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(9,633	)
Investments in affiliated issuers		70,511
Swap agreements		(116,791	)
Futures contracts		(4,570,419	)
Net change in unrealized appreciation (depreciation)		(4,626,332	)
Net realized and unrealized gain		15,378,061
Net increase in net assets resulting from operations	$	14,034,826

* 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 | 171

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,343,235	)	$	(4,040,998	)
Net realized gain on investments		20,004,393			42,388,427
Net change in unrealized appreciation (depreciation) on investments		(4,626,332	)		(11,034,501	)
Net increase in net assets resulting from operations		14,034,826			27,312,928
Distributions to shareholders from:
Net investment income
A-Class		—			(285,844	)
C-Class		—			(89,445	)
H-Class		—			(10,022,903	)
Total distributions to shareholders		—			(10,398,192	)
Capital share transactions:
Proceeds from sale of shares
A-Class		3,063,803			36,146,145
C-Class		681,724			6,852,428
H-Class		500,946,214			3,155,354,253
Distributions reinvested
A-Class		—			239,394
C-Class		—			84,624
H-Class		—			9,965,662
Cost of shares redeemed
A-Class		(12,075,262	)		(28,782,857	)
C-Class		(1,308,416	)		(4,601,608	)
H-Class		(452,845,164	)		(3,528,841,089	)
Net increase (decrease) from capital share transactions		38,462,899			(353,583,048	)
Net increase (decrease) in net assets		52,497,725			(336,668,312	)
Net assets:
Beginning of period		460,156,808			796,825,120
End of period	$	512,654,533		$	460,156,808
Undistributed net investment income at end of period	$	4,734,017		$	6,077,252
Capital share activity:
Shares sold
A-Class		122,060			1,514,841
C-Class		30,118			314,911
H-Class		19,880,912			131,050,068
Shares issued from reinvestment of distributions
A-Class		—			10,089
C-Class		—			3,934
H-Class		—			420,925
Shares redeemed
A-Class		(482,713	)		(1,210,225	)
C-Class		(57,645	)		(210,907	)
H-Class		(18,008,021	)		(147,445,936	)
Net increase (decrease) in shares		1,484,711			(15,552,300	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	24.74		$	23.32		$	23.84		$	22.89		$	25.16		$	22.93
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.20	)		(.09	)		(.15	)		(.30	)		(.22	)
Net gain (loss) on investments (realized and unrealized)		.86			2.09			.46			1.10			2.13			3.13
Total from investment operations		.79			1.89			.37			.95			1.83			2.91
Less distributions from:
Net investment income		—			(.47	)		(.89	)		—			(1.14	)		(.43	)
Net realized gains		—			—			—			—			(2.96	)		(.25	)
Total distributions		—			(.47	)		(.89	)		—			(4.10	)		(.68	)
Net asset value, end of period	$	25.53		$	24.74		$	23.32		$	23.84		$	22.89		$	25.16
Total Returnc		3.15	%		8.24	%		1.66	%		4.06	%		7.53	%		12.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,726		$	20,290		$	11,787		$	10,123		$	12,499		$	10,777
Ratios to average net assets:
Net investment income (loss)		(0.54	%)		(0.85	%)		(0.40	%)		(0.63	%)		(1.21	%)		(0.92	%)
Total expensesd		1.53	%		1.51	%		1.49	%		1.50	%		1.53	%		1.50	%
Portfolio turnover rate		360	%		97	%		521	%		393	%		205	%		95	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	22.33		$	21.25		$	22.01		$	21.29		$	23.83		$	21.92
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.36	)		(.19	)		(.27	)		(.44	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		.77			1.91			.32			.99			2.00			2.96
Total from investment operations		.62			1.55			.13			.72			1.56			2.59
Less distributions from:
Net investment income		—			(.47	)		(.89	)		—			(1.14	)		(.43	)
Net realized gains		—			—			—			—			(2.96	)		(.25	)
Total distributions		—			(.47	)		(.89	)		—			(4.10	)		(.68	)
Net asset value, end of period	$	22.95		$	22.33		$	21.25		$	22.01		$	21.29		$	23.83
Total Returnc		2.78	%		7.38	%		0.70	%		3.33	%		6.74	%		11.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,027		$	4,533		$	2,020		$	3,632		$	5,100		$	6,958
Ratios to average net assets:
Net investment income (loss)		(1.29	%)		(1.65	%)		(0.88	%)		(1.25	%)		(1.89	%)		(1.62	%)
Total expensesd		2.28	%		2.26	%		2.24	%		2.25	%		2.28	%		2.27	%
Portfolio turnover rate		360	%		97	%		521	%		393	%		205	%		95	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 173

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	24.72		$	23.31		$	23.90		$	22.94		$	25.12		$	22.90
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.18	)		(.15	)		(.19	)		(.24	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		.85			2.06			.45			1.15			2.16			3.14
Total from investment operations		.78			1.88			.30			.96			1.92			2.90
Less distributions from:
Net investment income		—			(.47	)		(.89	)		—			(1.14	)		(.43	)
Net realized gains		—			—			—			—			(2.96	)		(.25	)
Total distributions		—			(.47	)		(.89	)		—			(4.10	)		(.68	)
Net asset value, end of period	$	25.50		$	24.72		$	23.31		$	23.90		$	22.94		$	25.12
Total Returnc		3.16	%		8.15	%		1.36	%		4.14	%		7.86	%		12.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	496,901		$	435,334		$	783,018		$	621,455		$	87,315		$	434,113
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.74	%)		(0.64	%)		(0.81	%)		(0.97	%)		(0.99	%)
Total expensesd		1.53	%		1.51	%		1.49	%		1.46	%		1.53	%		1.51	%
Portfolio turnover rate		360	%		97	%		521	%		393	%		205	%		95	%

a	Unaudited figures for the period ended September 30, 2017. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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	36.0%
Guggenheim Strategy Fund II	35.9%
Total	71.9%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	(3.03%)	(5.94%)	(9.25%)	(10.53%)
A-Class Shares with sales charge‡	(7.63%)	(10.44%)	(10.13%)	(10.97%)
C-Class Shares	(3.46%)	(6.65%)	(9.83%)	(11.12%)
C-Class Shares with CDSC§	(4.42%)	(7.59%)	(9.83%)	(11.12%)
H-Class Shares	(3.41%)	(5.56%)	(8.84%)	(10.31%)
S&P 500 Index	7.71%	18.61%	14.22%	7.44%
Bloomberg Barclays U.S. Corporate High Yield Index	4.19%	8.88%	6.36%	7.84%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 175

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 71.9%
Guggenheim Strategy Fund I1		42,833	$	1,075,547
Guggenheim Strategy Fund II1		42,812		1,072,872
Total Mutual Funds
(Cost $2,124,783)				2,148,419

	Face Amount
REPURCHASE AGREEMENTS††,2 - 24.9%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	372,358	372,358
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		186,179	186,179

RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17	92,577		92,577
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	84,588		84,588
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	8,871		8,871
Total Repurchase Agreements
(Cost $744,573)			744,573
Total Investments - 96.8%
(Cost $2,869,356)		$	2,892,992
Other Assets & Liabilities, net - 3.2%			95,136
Total Net Assets - 100.0%		$	2,988,128

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Gain
Interest Rate Futures Contracts Sold Short†
U.S. Treasury 5 Year Note Futures Contracts		24	Dec 2017	$	2,818,875	$	19,835

CENTRALLY CLEARED CREDIT DEFAULT SWAPS PROTECTION PURCHASED††
Counterparty	Exchange	Index	Protection Premium Rate		Payment Frequency	Maturity Date	Notional Principal		Notional Value		Upfront Premiums Paid			Unrealized Loss
Barclays Bank plc	ICE	CDX.NA.HY.29 Index	5.00	%	At Maturity	12/20/22	$	2,770,000	$	2,987,445	$	(204,531	)	$	(12,914	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements.
	CDX.NA.HY.29 Index — Credit Default Swap North American High Yield Series 29 Index
	ICE — Intercontinental Exchange
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
INVERSE HIGH YIELD STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts	$	—	$	19,835	$	—	$	—	$	—	$	19,835
Mutual Funds	$	2,148,419	$	—	$	—	$	—	$	—	$	2,148,419
Repurchase Agreements		—		—		744,573		—		—		744,573
Total Assets	$	2,148,419	$	19,835	$	744,573	$	—	$	—	$	2,912,827
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Credit Default Swaps	$	—	$	—	$	—	$	12,914	$	—	$	12,914

* Other financial instruments include futures contracts and swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	1,272,956	$	100,000	$	(300,000	)	$	1,572	$	1,019	$	1,075,547		42,833	$	10,110
Guggenheim Strategy Fund II		1,270,223		—		(199,999	)		1,555		1,093		1,072,872		42,812		12,982
	$	2,543,179	$	100,000	$	(499,999	)	$	3,127	$	2,112	$	2,148,419			$	23,092

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 177

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in affiliated issuers, at value (cost $2,124,783)	$	2,148,419
Repurchase agreements, at value (cost $744,573)		744,573
Segregated cash with broker		317,302
Receivables:
Variation margin		5,063
Dividends		3,644
Interest		41
Total assets		3,219,042
Liabilities:
Unamortized upfront premiums received on credit default swaps		204,531
Unrealized depreciation on swap agreements		12,914
Payable for:
Fund shares redeemed		3,119
Management fees		1,936
Distribution and service fees		1,415
Transfer agent and administrative fees		645
Portfolio accounting fees		258
Miscellaneous		6,096
Total liabilities		230,914
Commitments and contingent liabilities (Note 12)		—
Net assets	$	2,988,128
Net assets consist of:
Paid in capital	$	20,484,272
Accumulated net investment loss		(304,261	)
Accumulated net realized loss on investments		(17,222,440	)
Net unrealized appreciation on investments		30,557
Net assets	$	2,988,128
A-Class:
Net assets	$	868,549
Capital shares outstanding		13,619
Net asset value per share	$	63.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.95
C-Class:
Net assets	$	1,118,390
Capital shares outstanding		18,802
Net asset value per share	$	59.48
H-Class:
Net assets	$	1,001,189
Capital shares outstanding		15,308
Net asset value per share	$	65.40

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	23,092
Interest		22,992
Total investment income		46,084
Expenses:
Management fees		27,813
Distribution and service fees:
A-Class		3,413
C-Class		5,591
H-Class		4,460
Transfer agent and administrative fees		9,271
Registration fees		7,961
Portfolio accounting fees		3,708
Custodian fees		548
Trustees’ fees*		397
Miscellaneous		(1,922	)
Total expenses		61,240
Net investment loss		(15,156	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		3,127
Swap agreements		(232,143	)
Futures contracts		487
Net realized loss		(228,529	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		2,112
Swap agreements		10,433
Futures contracts		24,109
Net change in unrealized appreciation (depreciation)		36,654
Net realized and unrealized loss		(191,875	)
Net decrease in net assets resulting from operations	$	(207,031	)

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

178 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(15,156	)	$	(238,062	)
Net realized loss on investments		(228,529	)		(2,832,626	)
Net change in unrealized appreciation (depreciation) on investments		36,654			89,837
Net decrease in net assets resulting from operations		(207,031	)		(2,980,851	)
Capital share transactions:
Proceeds from sale of shares
A-Class		42,424,449			58,549,494
C-Class		717,129			992,897
H-Class		114,296,366			1,767,267,375
Cost of shares redeemed
A-Class		(42,282,139	)		(59,973,315	)
C-Class		(600,533	)		(1,489,604	)
H-Class		(128,171,455	)		(1,752,361,839	)
Net increase (decrease) from capital share transactions		(13,616,183	)		12,985,008
Net increase (decrease) in net assets		(13,823,214	)		10,004,157
Net assets:
Beginning of period		16,811,342			6,807,185
End of period	$	2,988,128		$	16,811,342
Accumulated net investment loss at end of period	$	(304,261	)	$	(289,105	)
Capital share activity:
Shares sold
A-Class		653,262			847,520	*
C-Class		11,872			15,264	*
H-Class		1,732,816			25,181,894	*
Shares redeemed
A-Class		(653,548	)		(870,463	)*
C-Class		(9,978	)		(22,781	)*
H-Class		(1,936,922	)		(24,997,042	)*
Net increase (decrease) in shares		(202,498	)		154,392	*

* Capital share activity for the periods presented through March 31, 2017 has been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 11.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 179

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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	65.78		$	71.69		$	76.94		$	85.28		$	95.91		$	112.61
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.51	)		(.80	)		(.84	)		(1.40	)		(1.48	)
Net gain (loss) on investments (realized and unrealized)		(1.91	)		(5.40	)		(4.45	)		(7.50	)		(9.23	)		(15.22	)
Total from investment operations		(2.01	)		(5.91	)		(5.25	)		(8.34	)		(10.63	)		(16.70	)
Net asset value, end of period	$	63.77		$	65.78		$	71.69		$	76.94		$	85.28		$	95.91
Total Returnc		(3.03	%)		(8.26	%)		(6.81	%)		(9.59	%)		(11.30	%)		(14.81	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	869		$	915		$	2,642		$	372		$	5,155		$	157
Ratios to average net assets:
Net investment income (loss)		(0.30	%)		(0.74	%)		(1.07	%)		(1.02	%)		(1.52	%)		(1.38	%)
Total expensesd		1.54	%		1.52	%		1.50	%		1.52	%		1.54	%		1.49	%
Portfolio turnover rate		4	%		480	%		1,722	%		784	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	61.63		$	67.67		$	73.24		$	81.11		$	91.93		$	108.83
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.85	)		(1.16	)		(1.20	)		(2.00	)		(2.12	)
Net gain (loss) on investments (realized and unrealized)		(1.94	)		(5.19	)		(4.41	)		(6.67	)		(8.82	)		(14.78	)
Total from investment operations		(2.15	)		(6.04	)		(5.57	)		(7.87	)		(10.82	)		(16.90	)
Net asset value, end of period	$	59.48		$	61.63		$	67.67		$	73.24		$	81.11		$	91.93
Total Returnc		(3.46	%)		(8.97	%)		(7.59	%)		(9.49	%)		(11.97	%)		(15.51	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,118		$	1,042		$	1,653		$	734		$	1,561		$	2,037
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(1.32	%)		(1.60	%)		(1.53	%)		(2.28	%)		(2.13	%)
Total expensesd		2.29	%		2.27	%		2.25	%		2.25	%		2.30	%		2.25	%
Portfolio turnover rate		4	%		480	%		1,722	%		784	%		—			—

180 | 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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	67.70		$	72.70		$	77.91		$	85.66		$	96.16		$	112.88
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.74	)		(.64	)		(.76	)		(1.40	)		(1.44	)
Net gain (loss) on investments (realized and unrealized)		(2.17	)		(4.26	)		(4.57	)		(6.99	)		(9.10	)		(15.28	)
Total from investment operations		(2.30	)		(5.00	)		(5.21	)		(7.75	)		(10.50	)		(16.72	)
Net asset value, end of period	$	65.40		$	67.70		$	72.70		$	77.91		$	85.66		$	96.16
Total Returnc		(3.41	%)		(6.90	%)		(6.67	%)		(8.84	%)		(11.11	%)		(14.81	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,001		$	14,855		$	2,513		$	2,124		$	2,453		$	9,208
Ratios to average net assets:
Net investment income (loss)		(0.40	%)		(1.06	%)		(0.84	%)		(0.93	%)		(1.50	%)		(1.38	%)
Total expensesd		1.54	%		1.52	%		1.50	%		1.51	%		1.52	%		1.50	%
Portfolio turnover rate		4	%		480	%		1,722	%		784	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 4, 2016. — See Note 11.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 181

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)

FAND — Federal Agency Discount Note
FAN — Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	Since Inception (06/18/12)
U.S. Government Money Market Fund	0.04%	0.05%	0.01%	0.01%

*

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes.

†

6 month returns are not annualized.

182 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 43.8%
Federal Home Loan Bank1
1.09% (1 Month USD LIBOR -15 bps) due 03/23/182	$	61,000,000	$	61,000,000
1.09% (1 Month USD LIBOR -15 bps) due 04/26/182		30,000,000		29,999,297
1.08% (1 Month USD LIBOR -15 bps) due 12/13/172		25,000,000		25,000,837
1.07% (1 Month USD LIBOR -16 bps) due 01/19/182		10,000,000		10,000,000
1.21% (3 Month USD LIBOR -10 bps) due 11/17/172		8,000,000		8,001,800
1.11% (3 Month USD LIBOR -21 bps) due 12/18/172		5,000,000		4,999,910
1.21% (3 Month USD LIBOR -10 bps) due 11/15/172		3,500,000		3,500,517
1.12% due 12/08/17		3,000,000		3,000,170
1.15% (3 Month USD LIBOR -17 bps) due 03/16/182		1,260,000		1,260,134
1.25% (3 Month USD LIBOR -7 bps) due 12/05/172		1,250,000		1,250,375
1.08% (3 Month USD LIBOR -22 bps) due 04/06/182		1,000,000		999,895
1.30% (1 Month USD LIBOR 7 bps) due 12/05/172		355,000		355,077
Total Federal Home Loan Bank				149,368,012
Federal Farm Credit Bank1
1.31% (U.S. Prime Rate -294 bps) due 12/20/172		25,000,000		25,007,768
1.40% (U.S. Prime Rate -285 bps) due 08/10/182		13,500,000		13,532,768
1.27% (3 Month USD LIBOR -5 bps) due 03/26/182		10,000,000		10,008,093
1.28% (3 Month U.S. Treasury Bill Rate + 23 bps) due 11/13/172		9,000,000		9,000,589
1.29% (U.S. Prime Rate -296 bps) due 05/11/182		5,000,000		5,005,860
1.35% (U.S. Prime Rate -290 bps) due 05/14/182		3,000,000		3,004,687
1.29% (3 Month USD LIBOR -3 bps) due 09/18/182		2,000,000		2,002,777
1.40% (1 Month USD LIBOR + 16 bps) due 03/26/182		1,210,000		1,211,857
1.25% (1 Month USD LIBOR + 1 bps) due 11/27/172		145,000		145,014
Total Federal Farm Credit Bank				68,919,413
Freddie Mac3
0.88% due 03/07/18		985,000		983,439
Total Federal Agency Notes
(Cost $219,270,864)				219,270,864
FEDERAL AGENCY DISCOUNT NOTES†† - 21.1%
Federal Home Loan Bank1
1.08% due 12/19/174,5		46,000,000		45,889,969
1.04% due 12/20/174,5		25,000,000		24,941,722
1.17% due 03/19/184,5		10,000,000		9,944,606
1.01% due 11/03/174,5		6,700,000		6,693,797
1.01% due 10/18/174,5		3,850,000		3,848,164
1.00% due 10/24/174,5		2,580,000		2,578,352
1.01% due 11/15/174,5		2,196,000		2,193,214
1.01% due 10/25/174,5		1,900,000		1,898,722
1.00% due 10/06/174,5		1,200,000		1,199,834
1.03% due 12/01/174,5		1,100,000		1,098,080
1.01% due 11/01/174,5		900,000		899,217
1.02% due 11/07/174,5		800,000		799,161
1.01% due 11/17/174,5		600,000		599,205
0.99% due 11/29/174,5		600,000		599,007
1.10% due 11/02/174,5		500,000		499,511
1.03% due 12/04/174,5		400,000		399,253
Total Federal Home Loan Bank				104,081,814
Federal Farm Credit Bank1
1.04% due 12/15/174,5		1,700,000		1,696,317
Total Federal Agency Discount Notes
(Cost $105,778,131)				105,778,131
U.S. TREASURY BILLS†† - 19.0%
U.S. Treasury Bill
1.07% due 12/14/174,5		50,000,000		49,885,912
1.10% due 12/14/174,5		32,500,000		32,425,843
1.16% due 03/22/184,5		12,500,000		12,430,125
Total U.S. Treasury Bills
(Cost $94,741,880)				94,741,880
U.S. GOVERNMENT SECURITIES†† - 5.0%
United States Cash Management Bill
1.06% due 01/02/184,5		25,000,000		24,931,219
Total U.S. Government Securities
(Cost $24,931,219)				24,931,219
REPURCHASE AGREEMENTS††,6 - 14.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	36,875,571		36,875,571
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		18,437,785		18,437,785
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		9,168,140		9,168,140
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		8,376,953		8,376,953

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 183

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	$	878,553	$	878,553
Total Repurchase Agreements
(Cost $73,737,002)				73,737,002
Total Investments - 103.6%
(Cost $518,459,096)			$	518,459,096
Other Assets & Liabilities, net - (3.6)%				(17,849,877	)
Total Net Assets - 100.0%			$	500,609,219

††	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	Variable rate security. Rate indicated is rate effective at September 30, 2017.
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	Rate indicated is the effective yield at the time of purchase.
5	Zero coupon rate security.
6	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Federal Agency Discount Notes	$	—	$	105,778,131	$	—	$	105,778,131
Federal Agency Notes		—		219,270,864		—		219,270,864
Repurchase Agreements		—		73,737,002		—		73,737,002
U.S. Government Securities		—		24,931,219		—		24,931,219
U.S. Treasury Bills		—		94,741,880		—		94,741,880
Total Assets	$	—	$	518,459,096	$	—	$	518,459,096

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value (cost $444,722,094)	$	444,722,094
Repurchase agreements, at value (cost $73,737,002)		73,737,002
Receivables:
Fund shares sold		21,871,013
Interest		145,758
Total assets		540,475,867
Liabilities:
Overdraft due to custodian bank		2,002
Payable for:
Fund shares redeemed		39,382,711
Management fees		208,321
Transfer agent and administrative fees		83,329
Portfolio accounting fees		36,074
Miscellaneous		154,211
Total liabilities		39,866,648
Commitments and contingent liabilities (Note 12)		—
Net assets	$	500,609,219
Net assets consist of:
Paid in capital	$	500,554,384
Undistributed net investment income		5,702
Accumulated net realized gain on investments		49,133
Net unrealized appreciation on investments		—
Net assets	$	500,609,219
Capital shares outstanding		500,536,505
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Interest	$	2,579,598
Total investment income		2,579,598
Expenses:
Management fees		1,283,980
Transfer agent and administrative fees		513,598
Registration fees		283,740
Portfolio accounting fees		221,469
Custodian fees		34,339
Trustees’ fees*		23,234
Miscellaneous		148,942
Total expenses		2,509,302
Less:
Expenses waived by Adviser		(130,288	)
Net expenses		2,379,014
Net investment income		200,584
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		15,476
Net realized gain		15,476
Net increase in net assets resulting from operations		216,060

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 185

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	200,584		$	(2,447	)
Net realized gain on investments		15,476			342,140
Net change in unrealized appreciation (depreciation) on investments		—			—
Net increase in net assets resulting from operations		216,060			339,693
Distributions to shareholders from:
Net investment income		(194,882	)		(220	)
Net realized gains		—			(39,373	)
Total distributions to shareholders		(194,882	)		(39,593	)
Capital share transactions:
Proceeds from sale of shares		3,228,091,153			8,235,820,623
Distributions reinvested		194,882			37,712
Cost of shares redeemed		(3,355,211,824	)		(8,252,516,655	)
Net decrease from capital share transactions		(126,925,789	)		(16,658,320	)
Net decrease in net assets		(126,904,611	)		(16,358,220	)
Net assets:
Beginning of period		627,513,830			643,872,050
End of period	$	500,609,219		$	627,513,830
Undistributed net investment income at end of period	$	5,702		$	—
Capital share activity:
Shares sold		3,228,087,068			8,235,820,662
Shares issued from reinvestment of distributions		198,947			39,361
Shares redeemed		(3,355,211,823	)		(8,252,516,656	)
Net decrease in shares		(126,925,808	)		(16,656,633	)

186 | 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.

	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Period Ended March 28, 2013b
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		—	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		(—	)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 Returng		0.04	%		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	500,609		$	627,514		$	643,872		$	694,549		$	780,135		$	848,370
Ratios to average net assets:
Net investment income (loss)		0.08	%		0.00	%e		0.00	%e		0.00	%e		0.00	%e		0.00	%e
Total expenses		0.98	%		0.95	%		0.91	%		0.92	%		0.93	%		0.95	%
Net expensesd		0.93	%		0.47	%		0.22	%		0.08	%		0.09	%		0.17	%
Portfolio turnover rate		—			—			—			124	%		—			—

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	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.
c	Less than $0.01 per share.
d	Net expense information reflects the expense ratios after expense waivers
e	Less than 0.01%.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 187

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory 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 seven separate classes of shares: Investor 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 require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2017, the Trust consisted of fifty-three 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, Dow Jones Industrial Average^® 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 the U.S. Government Money Market Fund, which is a diversified investment company. Only Investor 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI 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, 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, 2017, afternoon NAV.

(a) Valuation of Investments

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 and/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, to review the valuation of all assets

188 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 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 sale 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 sale price.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, which approximates market value. With the exception of the U.S. Government Money Market Fund, U.S. Government securities are valued by either independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

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. Money market funds are valued at net asset 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 values of over-the-counter (“OTC”) swap agreements and credit default swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, 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 using methods established or ratified by the Board. 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 market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

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) U.S. Government and Agency Obligations

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) Short Sales

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 189

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

(d) Futures Contracts

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

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 an 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) Currency Translations

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.

(g) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2017, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(h) Security Transactions

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.

(i) Distributions

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

190 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

(j) Class Allocations

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.

(k) Cash

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, which was 1.06% at September 30, 2017.

(l) Indemnifications

Under the Funds’ organizational documents, the 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.

Note 2 – Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. 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, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the 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:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

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 any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index 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 Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

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)

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 191

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	2,965,725	$	—
S&P 500® Fund	Index exposure, Liquidity		2,766,150		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		23,204,475
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		3,854,205
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		349,160		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		987,250
Russell 2000® Fund	Index exposure, Liquidity		373,075		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		746,150
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		532,425		—
Government Long Bond 1.2x Strategy Fund	Duration, Index exposure, Leverage, Liquidity		41,690,063		—
Inverse Government Long Bond Strategy Fund	Duration, Index exposure, Liquidity		—		39,145,797
High Yield Strategy Fund	Duration, Index exposure, Liquidity		399,216,820		—
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		—		2,764,461

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 and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like an exchange-traded futures contract. Upon entering into certain centrally-cleared swap transactions, a Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity.

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.

192 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Funds’ use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	192,164,029	$	—
S&P 500® Fund	Index exposure, Liquidity		30,782,428		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		51,740,259
Monthly Rebalance Nasdaq-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		50,092,289		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		7,100,916
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		27,776,943		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		798,758
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		12,860,964		—
Russell 2000® Fund	Index exposure, Liquidity		9,163,545		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		9,122,481
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		29,292,440		—
High Yield Strategy Fund	Duration, Index exposure, Liquidity		41,006,708		—

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 Funds 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 pay 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 following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
High Yield Strategy Fund	Duration, Index exposure, Liquidity	$	429,480,641	$	—
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		—		2,975,119

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 193

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, 2017:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity 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, 2017:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2017
Nova Fund	$	—	$	602,099	$	—	$	—	$	602,099
S&P 500® Fund		4,118		283,208		—		—		287,326
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		—		454,190		—		—		454,190
Mid-Cap 1.5x Strategy Fund		—		148,377		—		—		148,377
Russell 2000® 1.5x Strategy Fund		—		106,475		—		—		106,475
Russell 2000® Fund		707		72,569		—		—		73,276
Dow Jones Industrial Average® Fund		—		42,034		—		—		42,034
Inverse Government Long Bond Strategy Fund		—		—		711,817		—		711,817
High Yield Strategy Fund		—		170,452		—		2,332,664		2,503,116
Inverse High Yield Strategy Fund		—		—		19,835		—		19,835

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2017
Inverse S&P 500® Strategy Fund	$	104,260	$	282,974	$	—	$	—	$	387,234
Inverse NASDAQ-100® Strategy Fund		192		128,682		—		—		128,874
Inverse Mid-Cap Strategy Fund		1,490		7,442		—		—		8,932
Inverse Russell 2000® Strategy Fund		74,110		52,641		—		—		126,751
Government Long Bond 1.2x Strategy Fund		—		—		749,658		—		749,658
High Yield Strategy Fund		—		—		3,117,439		—		3,117,439
Inverse High Yield Strategy Fund		—		—		—		12,914		12,914

* 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, 2017:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity 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

194 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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, 2017:

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	$	2,277,810		$	12,283,082		$	—		$	—		$	14,560,892
S&P 500® Fund		178,020			(1,982	)		—			—			176,038
Inverse S&P 500® Strategy Fund		(282,771	)		(5,885,011	)		—			—			(6,167,782	)
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		107,907			4,159,164			—			—			4,267,071
Inverse NASDAQ-100® Strategy Fund		(88,114	)		(931,799	)		—			—			(1,019,913	)
Mid-Cap 1.5x Strategy Fund		58,899			1,537,947			—			—			1,596,846
Inverse Mid-Cap Strategy Fund		(180	)		(38,800	)		—			—			(38,980	)
Russell 2000® 1.5x Strategy Fund		247,848			1,826,980			—			—			2,074,828
Russell 2000® Fund		24,737			683,058			—			—			707,795
Inverse Russell 2000® Strategy Fund		(81,683	)		(830,018	)		—			—			(911,701	)
Dow Jones Industrial Average® Fund		222,259			1,887,223			—			—			2,109,482
Government Long Bond 1.2x Strategy Fund		—			—			1,949,600			—			1,949,600
Inverse Government Long Bond Strategy Fund		—			—			(2,527,551	)		—			(2,527,551	)
High Yield Strategy Fund		(30	)		1,415,653			6,454,594			12,095,726			19,965,943
Inverse High Yield Strategy Fund		3			—			484			(232,143	)		(231,656	)

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	$	(132,837	)	$	615,665		$	—		$	—	$	482,828
S&P 500® Fund		382			234,679			—			—		235,061
Inverse S&P 500® Strategy Fund		(110,103	)		309,832			—			—		199,729
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		(8,109	)		338,354			—			—		330,245
Inverse NASDAQ-100® Strategy Fund		6,915			(64,595	)		—			—		(57,680	)
Mid-Cap 1.5x Strategy Fund		(8,303	)		(361,039	)		—			—		(369,342	)
Inverse Mid-Cap Strategy Fund		(1,490	)		(2,426	)		—			—		(3,916	)
Russell 2000® 1.5x Strategy Fund		(41,565	)		(93,719	)		—			—		(135,284	)
Russell 2000® Fund		(20,208	)		(45,824	)		—			—		(66,032	)
Inverse Russell 2000® Strategy Fund		93,654			47,532			—			—		141,186
Dow Jones Industrial Average® Fund		46,288			47,470			—			—		93,758
Government Long Bond 1.2x Strategy Fund		—			—			(1,092,073	)		—		(1,092,073	)
Inverse Government Long Bond Strategy Fund		—			—			765,957			—		765,957
High Yield Strategy Fund		—			(248,535	)		(4,570,419	)		131,744		(4,687,210	)
Inverse High Yield Strategy Fund		—			—			24,109			10,433		34,542

In conjunction with the use of short sales and derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to 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.

Note 3 – 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 from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 195

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are 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
Nova Fund	Swap equity contracts	$	602,099	$	—	$	602,099	$	—	$	—	$	602,099
S&P 500® Fund	Swap equity contracts		283,208		—		283,208		—		—		283,208
Monthly Rebalance Nasdaq-100® 2x Strategy Fund	Swap equity contracts		454,190		—		454,190		—		—		454,190
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		148,377		—		148,377		—		—		148,377
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		106,475		—		106,475		—		—		106,475
Russell 2000® Fund	Swap equity contracts		72,569		—		72,569		—		—		72,569
Dow Jones Industrial Average® Fund	Swap equity contracts		42,034		—		42,034		—		—		42,034
High Yield Strategy Fund	Swap equity contracts		170,452		—		170,452		—		—		170,452

196 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

								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
Inverse S&P 500® Strategy Fund	Swap equity contracts	$	282,974	$	—	$	282,974	$	282,974	$	—	$	—
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		128,682		—		128,682		114,718		13,964		—
Inverse Mid-Cap Strategy Fund	Swap equity contracts		7,442		—		7,442		7,379		63		—
Inverse Russell 2000® Strategy Fund	Swap equity contracts		52,641		—		52,641		51,419		1,222		—

¹ Centrally cleared swaps are excluded from these reported amounts.

The following table presents deposits held by others in connection with derivative investments as of September 30, 2017. The derivatives tables following the Schedule of Investments list each counterparty for which cash collateral may have been pledged or received at period end.The Funds have the right to offset these deposits against any related liabilities outstanding with each counterparty.

Counterparty	Cash Pledged		Cash Received
Nova Fund
Barclays Bank plc	$	1,882,403	$	—
Nova Fund Total		1,882,403		—
S&P 500® Fund
Barclays Bank plc		360,000		—
S&P 500® Fund Total		360,000		—
Inverse S&P 500® Strategy Fund
Barclays Bank plc		4,788		—
Goldman Sachs Group		304,500		—
Inverse S&P 500® Strategy Fund Total		309,288		—
Monthly Rebalance Nasdaq-100® 2x Strategy Fund
Barclays Bank plc		2,054,664		—
Monthly Rebalance Nasdaq-100® 2x Strategy Fund Total		2,054,664		—
Inverse NASDAQ-100® Strategy Fund
Barclays Bank plc		100,001		—
Goldman Sachs Group		13,500		—
Inverse NASDAQ-100® Strategy Fund Total		113,501		—
Mid-Cap 1.5x Strategy Fund
Barclays Bank plc		303,104		—
Mid-Cap 1.5x Strategy Fund Total		303,104		—
Inverse Mid-Cap Strategy Fund
Barclays Bank plc		250,000		—
Goldman Sachs Group		66,000		—
Inverse Mid-Cap Strategy Fund Total		316,000		—
Russell 2000® 1.5x Strategy Fund
Barclays Bank plc		240,000		—
Russell 2000® 1.5x Strategy Fund Total		240,000		—
Russell 2000® Fund
Barclays Bank plc		470,000		—
Russell 2000® Fund Total		470,000		—

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 197

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Counterparty	Cash Pledged		Cash Received
Inverse Russell 2000® Strategy Fund
Barclays Bank plc	$	330,002	$	—
Goldman Sachs Group		55,000		—
Inverse Russell 2000® Strategy Fund Total		385,002		—
Dow Jones Industrial Average® Fund
Barclays Bank plc		310,000		—
Dow Jones Industrial Average® Fund Total		310,000		—
Government Long Bond 1.2x Strategy Fund
Goldman Sachs Group		528,400		—
Government Long Bond 1.2x Strategy Fund Total		528,400		—
Inverse Government Long Bond Strategy Fund
Goldman Sachs Group		583,900		—
Inverse Government Long Bond Strategy Fund Total		583,900		—
High Yield Strategy Fund
Barclays Bank plc		—		5,858,922
Goldman Sachs Group		516,501		9,500,029
High Yield Strategy Fund Total		516,501		15,358,951
Inverse High Yield Strategy Fund
Barclays Bank plc		299,050		—
Goldman Sachs Group		18,252		—
Inverse High Yield Strategy Fund Total		317,302		—

Note 4 – Fair Value Measurement

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

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

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

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

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

The 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.

198 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 5 – Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
Nova Fund	0.75%
S&P 500® Fund	0.75%
Inverse S&P 500® Strategy Fund	0.90%
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%
Dow Jones Industrial Average® Fund	0.75%
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 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.

The Board of Trustees has adopted a distribution and service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders and the maintenance of shareholder accounts in an amount up to 0.25% of its average daily net assets each year. No 12b-1 fees are currently paid by the Funds, and there are no current plans to impose these fees. No such fee may be paid in the future without further approval by the Board of Trustees.

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.

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, indemnifi cation, 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 199

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

For the period ended September 30, 2017, GFD retained sales charges of $90,853 relating to sales of A-Class shares of the Trust.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Trust’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Trust’s securities and cash. For providing the aforementioned services, MUIS is entitled to receive a monthly fee equal to an annual percentage of the Funds’ average daily net assets subject to certain minimum monthly fees and out of pocket expenses.

Note 6 – 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 joint account includes other Funds in the Guggenheim complex not covered in this report. 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, 2017, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
BNP Paribas					U.S Treasury Note
1.00%					1.13%
Due 10/02/17	$	126,905,733	$	126,916,309	02/28/21	$	131,780,200	$	129,443,901
Bank of America Merrill Lynch					U.S. Treasury Note
1.05%					1.63%
Due 10/02/17		63,452,867		63,458,419	05/31/23		65,690,800		64,722,010
RBC Capital Markets LLC					U.S. TIP Notes
0.98%					1.13%
Due 10/02/17		35,069,861		35,072,725	01/15/21		30,577,200		35,771,371
HSBC Securities, Inc.					U.S. Treasury Strips
0.91%					0.00%
Due 10/02/17		23,879,390		23,881,201	08/15/39		44,888,000		24,357,007
UMB Financial Corp.					Federal Home Loan Bank
0.91%					1.25%
Due 10/02/17		2,504,407		2,504,597	06/08/18		2,000,000		2,007,147
					U.S. Treasury Note
					1.63%
					05/15/26		573,300		547,365
							2,573,300		2,554,512

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, 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.

200 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund - Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At September 30, 2017, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
Nova Fund	$	206,799	$	(206,799	)	$	—	$	210,703	$	—	$	210,703
S&P 500® Fund		1,253,573		(1,253,573	)		—		1,279,576		—		1,279,576
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		144,808		(144,808	)		—		147,572		—		147,573
Mid-Cap 1.5x Strategy Fund		87,067		(87,067	)		—		88,755		—		88,755
Russell 2000® 1.5x Strategy Fund		78,627		(78,627	)		—		80,821		—		80,821
Russell 2000® Fund		1,452,654		(1,452,654	)		—		1,492,890		—		1,492,890

^(a) Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 201

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2017, 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	$	107,298,658	$	3,712,439	$	(249,737	)	$	3,462,702
S&P 500® Fund		225,581,988		20,659,936		(1,337,440	)		19,322,496
Inverse S&P 500® Strategy Fund		75,999,661		150,190		(422,426	)		(272,236	)
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		29,897,309		1,276,702		(91,495	)		1,185,207
Inverse NASDAQ-100® Strategy Fund		12,011,041		45,843		(130,763	)		(84,920	)
Mid-Cap 1.5x Strategy Fund		18,220,434		520,700		(28,366	)		492,334
Inverse Mid-Cap Strategy Fund		2,638,093		2,703		(8,948	)		(6,245	)
Russell 2000® 1.5x Strategy Fund		9,811,465		475,722		(7,671	)		468,051
Russell 2000® Fund		63,877,326		3,822,351		(1,209,323	)		2,613,028
Inverse Russell 2000® Strategy Fund		6,827,684		16,495		(128,043	)		(111,548	)
Dow Jones Industrial Average® Fund		79,349,240		6,739,469		(214,903	)		6,524,566
Government Long Bond 1.2x Strategy Fund		71,456,606		54,783		(1,192,890	)		(1,138,107	)
Inverse Government Long Bond Strategy Fund		159,869,767		759,636		(62,578	)		697,058
High Yield Strategy Fund		492,069,669		2,848,170		(3,139,740	)		(291,570	)
Inverse High Yield Strategy Fund		2,869,907		43,046		(13,040	)		30,006
U.S. Government Money Market Fund		518,459,096		—		—			—

Note 9 – Securities Transactions

For the period ended September 30, 2017, 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	$	1,864,035,651	$	1,843,356,332
S&P 500® Fund		216,023,594		273,240,538
Inverse S&P 500® Strategy Fund		12,639,076		22,640,000
Monthly Rebalance Nasdaq-100® 2x Strategy Fund		50,534,723		51,314,238
Inverse NASDAQ-100® Strategy Fund		—		—
Mid-Cap 1.5x Strategy Fund		3,835,317		13,564,933
Inverse Mid-Cap Strategy Fund		—		—
Russell 2000® 1.5x Strategy Fund		3,827,979		7,094,631
Russell 2000® Fund		38,119,466		31,313,623
Inverse Russell 2000® Strategy Fund		—		—
Dow Jones Industrial Average® Fund		76,938,237		49,994,767
Government Long Bond 1.2x Strategy Fund		—		1,100,000
Inverse Government Long Bond Strategy Fund		12,000,288		56,500,000
High Yield Strategy Fund		157,381,823		180,249,000
Inverse High Yield Strategy Fund		100,000		500,000
U.S. Government Money Market Fund		—		—

For the period ended September 30, 2017, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	720,907,766	$	697,135,281
Inverse Government Long Bond Strategy Fund		655,958,422		606,618,922

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment

202 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2017, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Nova Fund	$	357,148,750	$	240,009,900	$	(884,026	)
S&P 500 Fund		163,012,849		202,729,286		34,116,377
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		16,046,967		21,655,385		1,663,229
Mid-Cap 1.5x Strategy Fund		1,770,775		2,092,114		(43,909	)
Russell 2000® 1.5x Strategy Fund		3,613,311		3,854,589		(22,434	)
Russell 2000® Fund		15,410,345		22,893,166		3,831,228
Dow Jones Industrial Average® Fund		25,154,423		24,941,993		599,888
U.S. Government Money Market Fund		13,536,893		—		—

Note 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 11, 2018. 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 1.92% for the period ended September 30, 2017. The Funds did not have any borrowings outstanding under this agreement at September 30, 2017.

The average daily balances borrowed for the period ended September 30, 2017, were as follows:

Fund	Average Daily Balance
Nova Fund	$	94,486
S&P 500® Fund		1,710
Inverse S&P 500® Strategy Fund		5,590
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		372
Inverse NASDAQ-100® Strategy Fund		301
Mid-Cap 1.5x Strategy Fund		19,214
Russell 2000® 1.5x Strategy Fund		984
Dow Jones Industrial Average® Fund		35,738
Government Long Bond 1.2x Strategy Fund		33,867
Inverse Government Long Bond Strategy Fund		6,584

Note 11 – Reverse Share Splits

Share splits occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
Inverse S&P 500® Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split
Inverse NASDAQ-100® Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split
Inverse High Yield Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split

Note 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 203

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

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

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

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

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. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but will wait to do so until it has resolved outstanding motions to dismiss filed by other defendants. Accordingly, the timing of the appeal is uncertain.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law.

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”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.) (“Reichman”).

204 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek 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. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

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 Bankruptcy 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 Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment. On May 30, 2017, the shareholder defendants filed a motion to remand the proceedings in the Creditor Trust and Reichman Actions to the Bankruptcy Court, for consideration of the collateral estoppel ground for dismissal raised by the Bankruptcy Court’s ruling in the Blavatnik Action. On August 18, 2017, the plaintiff in the Creditor Trust action filed a notice of dismissal of claims brought against defendants who had not answered the Third Amended Complaint. The same day, the plaintiff in the Reichman action filed a notice of dismissal of all claims against named defendants who had not filed an answer and withdrew his request for class certification of a defendant class. On September 5, 2017, the Court entered an order dismissing the Creditor Trust and Reichman actions with prejudice. The Court’s order dismissed the actions as to all defendants as well as to unnamed members of the putative defendant class in the Reichman action.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set. On April 21, 2017, the Bankruptcy Court issued an Opinion and Order After Trial in a related Lyondell litigation (the “Blavatnik Action”) rejecting claims for intentional fraudulent transfer and constructive fraudulent transfer in connection with the 2007 LBO. Based on this related ruling in the Blavatnik Action, the shareholder defendants filed a motion to dismiss the Litigation Trust Action on the grounds of collateral estoppel on May 30, 2017. Although the Bankruptcy Court had not yet ruled on the motion to dismiss, on August 15, 2017, the plaintiff in the Litigation Trust action filed a notice of dismissal of all claims against the defendants who joined the motion to dismiss. On August 18, 2017, the Litigation Trust plaintiff also withdrew his request for class certification of a defendant class in the Litigation Trust action. On September 5, 2017, the Court entered an order dismissing the Litigation Trust action with prejudice. The Court’s order dismissed the action as to all defendants as well as to unnamed members of the putative defendant class.

As a result of the dismissals above, there are no longer claims pending against the Rydex Series Funds related to the Lyondell merger.

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 205

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 https://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 https://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 https://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 Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 25, 2017, 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 Security Investors, LLC (the “Advisor”) applicable to 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, Dow Jones Industrial Average^® 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, each a series of the Trust (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 26, 2017 (together, with the May 25 meeting, the “Meetings”). The Board considered the materials provided by the Advisor and the review conducted at the April 26 meeting to be an integral part of the Trustees’ deliberations and their process in considering the renewal of the Investment Advisory Agreement.

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 the independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the renewal or approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving

206 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

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; (d) each Fund’s overall fees and operating expenses compared with those of similar funds; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors that was 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 for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to such Fund; 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 (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. 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 considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. 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. With respect to the Funds that track an underlying index (“Index Funds”), the Board also discussed the correlation between an Index Fund’s assets under management and tracking error, noting that an Index Fund’s ability to replicate an underlying index rather than employ representative sampling depends, in part, upon the Index Fund’s size. 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 also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 207

OTHER INFORMATION (Unaudited)(concluded)

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 Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under the distribution agreement, Distribution Plans, and Distribution and Shareholder Services Plans 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 affiliate’s 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.

208 | 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: Vice Chairman, Guggenheim Investments (2010-present). Former: President and CEO, certain other funds in the Fund complex (2012-November 2017); Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	226	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle (1959)	Trustee, Member of the Audit Committee, Chairwoman and Member of the Compliance and Risk Oversight Committee, and Member of the Nominating and Governance Committee from 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	133	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Nominating and 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 (3) (2009-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 209

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
John O. Demaret (1940)	Trustee and Member of the Audit Committee from 1997 to present; Member of the Compliance and Risk Oversight Committee from 2010 to present; Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman and Trustee of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; Member of the Compliance and Risk Oversight Committee from 2015 to present; Member of the Nominating and Governance Committee from 2015 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; and Chairman and Member of the Nominating and 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; Member of the Nominating and 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.
Sandra G. Sponem (1958)	Trustee, Member of the Audit Committee, and Chairwoman and Member of the Investment and Performance Committee from 2016 to present.	Current: Retired Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	133	None.

210 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
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.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2014-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager of Mutual Fund Administration, Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Treasurer and Assistant Treasurer, certain other funds in the Fund Complex (2010-present); Managing Director, Guggenheim Investments (2015-present); Chief Financial Officer, Guggenheim Specialized Products, LLC (2016-present). Former: Managing Director and Director, Transparent Value, LLC (2010-2016); Director, Guggenheim Partners Investment Management, LLC (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	President (November 2017-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (November 2017-present); 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).
Mark E. Mathiasen (1978)	Secretary (November 2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 211

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); 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).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (November 2017-Present)	Current: Vice President, Guggenheim Investments (July 2017-present); Assistant Treasurer, certain other funds in the Fund Complex (November 2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (February-June 2017); Senior Analyst of US Fund Administration, HGINA (2014-January 2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

212 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

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 personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

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 Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes 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 Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. 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 your personal 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. In connection with servicing your accounts or 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 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 personal 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 share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 213

9.30.2017

Rydex Funds Semi-Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy

Weakening Dollar 2x Strategy

GuggenheimInvestments.com RBENF2-SEMI-0917x0318

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
S&P 500® PURE GROWTH FUND	10
S&P 500® PURE VALUE FUND	18
S&P MIDCAP 400® PURE GROWTH FUND	26
S&P MIDCAP 400® PURE VALUE FUND	33
S&P SMALLCAP 600® PURE GROWTH FUND	41
S&P SMALLCAP 600® PURE VALUE FUND	49
EUROPE 1.25x STRATEGY FUND	57
JAPAN 2x STRATEGY FUND	65
STRENGTHENING DOLLAR 2x STRATEGY FUND	72
WEAKENING DOLLAR 2x STRATEGY FUND	79
NOTES TO FINANCIAL STATEMENTS	86
OTHER INFORMATION	100
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	103
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	107

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2017

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semiannual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2017.

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,

Security Investors, LLC October 31, 2017

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.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2017

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

Pure Style Funds may not be suitable for all investors. ● The Funds are subject to the risk that large, medium and small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole ● Value stocks are subject to the risk that the intrinsic value of the stock may never be realized by the market or that the price goes down. Growth stocks typically invest a high portion of their earnings back into their business and may lack the dividend yield that could cushion their decline in a market downturn. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions regarding the growth potential of the issuing company. ● The Funds are subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Funds’ inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the Funds to purchase and sell particular investments within a reasonable time at a fair price. ● Unlike many investment companies, the Funds are not actively “managed.” This means that based on market and economic conditions, the Funds’ performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities. ● The Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Funds’ ability to achieve their investment objective and may decrease the Funds’ performance. ● These Funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● Securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. ● Please read the prospectus for more detailed information regarding these and other risks.

The Strengthening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a Fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus

The Weakening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2017

Over the past few months, the equity markets have faced massive hurricanes in the South, rising tensions with North Korea and ongoing uncertainty surrounding domestic policy. Despite it all, the major stock indices continue to trade at/near record levels. The market’s resiliency seems to underscore that, at the end of the day, it’s fundamentals that drive equity markets and not political headlines or geopolitical tensions.

A noticeable shift in market sentiment during the third quarter led to a rotation into cyclical and small capitalization stocks. Value factors also began to outperform in September, a significant change from year-to-date performance. From a macro standpoint, the primary drivers of the value trade include rising inflationary expectations, economic growth and the prospects of tax reform.

Outside the U.S., both the European and emerging markets outperformed the Standard & Poor’s 500^® (“S&P 500”) Index* on a dollar denominated basis. Renewed interest in both regions reflected attractive relative valuation and the synchronized global economic expansion.

Assuming no major geopolitical or other unforeseen shocks, we expect the U.S. economy will grow by between 2.0–2.5% in real terms in 2017 and 2018, supported by a strong labor market at home, a synchronized upswing in the global economy, and favorable financial conditions. Risks to our growth outlook are to the upside if Washington delivers on promises to cut taxes. Third quarter economic data was less distorted by the recent hurricanes than expected, and rebuilding efforts should be a positive for growth heading into 2018.

The labor market is steadily tightening, as seen in the drop in the unemployment rate to a cycle low of 4.2% in September, underscoring the robust—and unsustainable—underlying trend in hiring. Leading indicators, including hiring intentions surveys, point to further declines in the unemployment rate. Meanwhile, inflation continues to be well below the U.S. Federal Reserve’s (the “Fed”) 2% longer-run goal, with core personal consumption expenditure inflation coming in at 1.3% in September. However, inflation lags GDP growth by about six quarters; because growth has accelerated over the past year, and the dollar has depreciated, inflation will likely move closer to 2% by the second quarter of 2018.

The firming U.S. economy, coupled with synchronized global growth and stabilization in the U.S. dollar, is likely to be supportive of the U.S. earnings environment. On the valuation front, while elevated relative to long-term averages, multiples still remain well below extreme levels. Economic and financial conditions are supportive enough for the Fed to continue to resume a quarterly pattern of rate increases in December, and to begin balance sheet normalization this year. Interest rates are expected to remain supportive of risk assets.

For the six months ended September 30, 2017, the S&P 500 Index* returned 7.71%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 10.99%. The return of the MSCI Emerging Markets Index* was 14.66%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.31% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 4.19%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.47% 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.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2017

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

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

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

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

STOXX^® Europe 50 Index provides a blue-chip representation of super-sector leaders in Europe. The index covers 50 stocks from developed European countries such as Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Nikkei-225 Stock Average Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

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

S&P 500^® Pure Growth Index is narrow in focus, containing only those S&P 500 Index companies with strong growth characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P 500^® Pure Value Index is narrow in focus, containing only those S&P 500 Index companies with strong value characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P MidCap 400^® Pure Growth Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong growth characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P MidCap 400^® Pure Value Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong value characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Growth Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong growth characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Value Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong value characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

The USD or U.S. Dollar Index^® (USDX) is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated “basket” of currencies comprises the weighting of six other currencies as follows: euro (EUR), 57.6% + Japanese yen (JPY), 13.6% + pound sterling (GBP), 11.9% + Canadian dollar (CAD), 9.1% + Swedish krona (SEK), 4.2% + Swiss franc (CHF) 3.6%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

6 | THE RYDEX FUNDS 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, 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, 2017 and ending September 30, 2017.

The following tables illustrate the Funds’ 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 fifth 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 the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), 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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.55%	11.20%	$1,000.00	$1,112.00	$8.21
C-Class	2.30%	10.78%	1,000.00	1,107.80	12.15
H-Class	1.55%	11.21%	1,000.00	1,112.10	8.21
S&P 500® Pure Value Fund
A-Class	1.55%	5.05%	1,000.00	1,050.50	7.97
C-Class	2.30%	4.65%	1,000.00	1,046.50	11.80
H-Class	1.55%	5.05%	1,000.00	1,050.50	7.97
S&P MidCap 400® Pure Growth Fund
A-Class	1.55%	6.30%	1,000.00	1,063.00	8.02
C-Class	2.30%	5.89%	1,000.00	1,058.90	11.87
H-Class	1.55%	6.29%	1,000.00	1,062.90	8.02
S&P MidCap 400® Pure Value Fund
A-Class	1.55%	3.74%	1,000.00	1,037.40	7.92
C-Class	2.30%	3.34%	1,000.00	1,033.40	11.72
H-Class	1.55%	3.72%	1,000.00	1,037.20	7.92
S&P SmallCap 600® Pure Growth Fund
A-Class	1.55%	9.06%	1,000.00	1,090.60	8.12
C-Class	2.30%	8.63%	1,000.00	1,086.30	12.03
H-Class	1.55%	9.04%	1,000.00	1,090.40	8.12
S&P SmallCap 600® Pure Value Fund
A-Class	1.55%	1.39%	1,000.00	1,013.90	7.83
C-Class	2.30%	1.01%	1,000.00	1,010.10	11.59
H-Class	1.55%	1.59%	1,000.00	1,015.90	7.83
Europe 1.25x Strategy Fund
A-Class	1.72%	15.04%	1,000.00	1,150.40	9.27
C-Class	2.47%	14.62%	1,000.00	1,146.20	13.29
H-Class	1.72%	15.08%	1,000.00	1,150.80	9.27
Japan 2x Strategy Fund
A-Class	1.52%	12.78%	1,000.00	1,127.80	8.11
C-Class	2.27%	12.35%	1,000.00	1,123.50	12.08
H-Class	1.53%	12.80%	1,000.00	1,128.00	8.16
Strengthening Dollar 2x Strategy Fund
A-Class	1.74%	(13.68%)	1,000.00	863.20	8.13
C-Class	2.49%	(13.99%)	1,000.00	860.10	11.61
H-Class	1.74%	(13.67%)	1,000.00	863.30	8.13
Weakening Dollar 2x Strategy Fund
A-Class	1.74%	14.31%	1,000.00	1,143.10	9.35
C-Class	2.49%	13.92%	1,000.00	1,139.20	13.35
H-Class	1.74%	14.34%	1,000.00	1,143.40	9.35

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.55%	5.00%	$1,000.00	$1,017.30	$7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P 500® Pure Value Fund
A-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P MidCap 400® Pure Growth Fund
A-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P MidCap 400® Pure Value Fund
A-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P SmallCap 600® Pure Growth Fund
A-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P SmallCap 600® Pure Value Fund
A-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
Europe 1.25x Strategy Fund
A-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
C-Class	2.47%	5.00%	1,000.00	1,012.68	12.46
H-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
Japan 2x Strategy Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.53%	5.00%	1,000.00	1,017.40	7.74
Strengthening Dollar 2x Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
Weakening Dollar 2x Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.74%	5.00%	1,000.00	1,016.34	8.80

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, 2017 to September 30, 2017.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Applied Materials, Inc.	3.4%
NVIDIA Corp.	3.0%
Lam Research Corp.	2.4%
Align Technology, Inc.	2.0%
Broadcom Ltd.	1.8%
IDEXX Laboratories, Inc.	1.7%
Facebook, Inc. — Class A	1.7%
UnitedHealth Group, Inc.	1.5%
Prologis, Inc.	1.5%
Ulta Beauty, Inc.	1.4%
Top Ten Total	20.4%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	11.20%	17.96%	14.57%	9.25%
A-Class Shares with sales charge‡	5.93%	12.36%	13.46%	8.72%
C-Class Shares	10.78%	17.08%	13.71%	8.43%
C-Class Shares with CDSC§	9.78%	16.08%	13.71%	8.43%
H-Class Shares	11.21%	17.96%	14.58%	9.25%
S&P 500 Pure Growth Index	12.11%	19.99%	16.50%	11.05%

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

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Non-cyclical - 22.0%
Align Technology, Inc.*		12,000	$	2,235,240
IDEXX Laboratories, Inc.*		11,800		1,834,782
UnitedHealth Group, Inc.		8,600		1,684,310
Quanta Services, Inc.*		41,200		1,539,644
PayPal Holdings, Inc.*		20,100		1,287,003
Celgene Corp.*		8,752		1,276,217
Constellation Brands, Inc. — Class A		6,305		1,257,532
Aetna, Inc.		6,585		1,047,081
Humana, Inc.		4,100		998,883
Biogen, Inc.*		3,103		971,611
United Rentals, Inc.*,1		6,000		832,440
Total System Services, Inc.		12,694		831,457
Cintas Corp.		5,730		826,724
Incyte Corp.*		6,700		782,158
S&P Global, Inc.		4,890		764,356
Gartner, Inc.*		6,100		758,901
Intuitive Surgical, Inc.*		700		732,116
Verisk Analytics, Inc. — Class A*		8,790		731,240
Becton Dickinson and Co.		3,500		685,825
CR Bard, Inc.		2,130		682,665
Edwards Lifesciences Corp.*		6,020		658,046
Boston Scientific Corp.*		21,207		618,608
Stryker Corp.		3,900		553,878
Gilead Sciences, Inc.		6,682		541,376
Total Consumer, Non-cyclical				24,132,093
Technology - 21.8%
Applied Materials, Inc.		70,650		3,680,158
NVIDIA Corp.		18,315		3,274,173
Lam Research Corp.		13,943		2,580,013
Broadcom Ltd.		8,065		1,956,085
Microchip Technology, Inc.		15,791		1,417,716
Activision Blizzard, Inc.		20,702		1,335,485
Skyworks Solutions, Inc.		10,443		1,064,142
salesforce.com, Inc.*		10,618		991,933
Red Hat, Inc.*		8,089		896,747
Adobe Systems, Inc.*		5,800		865,244
Electronic Arts, Inc.*		7,287		860,303
Fidelity National Information Services, Inc.		7,700		719,103
Cerner Corp.*		9,798		698,793
Texas Instruments, Inc.		7,700		690,228
Analog Devices, Inc.		7,600		654,892
Akamai Technologies, Inc.*		12,173		593,069
Citrix Systems, Inc.*		7,408		569,083
Fiserv, Inc.*		4,386		565,619
QUALCOMM, Inc.		8,900		461,376
Total Technology				23,874,162
Industrial - 14.8%
Packaging Corporation of America		13,000		1,490,840
Corning, Inc.		49,500		1,481,040
Vulcan Materials Co.		10,397		1,243,481
Ingersoll-Rand plc		12,900		1,150,293
Amphenol Corp. — Class A		11,300		956,432
Northrop Grumman Corp.		3,000		863,161
Martin Marietta Materials, Inc.		4,074		840,181
Cummins, Inc.		4,900		823,347
TransDigm Group, Inc.		3,220		823,193
FedEx Corp.		3,500		789,530
Illinois Tool Works, Inc.		5,100		754,596
Harris Corp.		5,600		737,408
General Dynamics Corp.		3,500		719,530
AO Smith Corp.		12,100		719,103
Garmin Ltd.		12,500		674,625
Xylem, Inc.		9,400		588,722
Republic Services, Inc. — Class A		8,900		587,934
J.B. Hunt Transport Services, Inc.		4,900		544,292
Acuity Brands, Inc.		2,730		467,594
Total Industrial				16,255,302
Financial - 13.9%
Prologis, Inc. REIT		25,556		1,621,783
E*TRADE Financial Corp.*		29,481		1,285,667
Intercontinental Exchange, Inc.		16,650		1,143,855
UDR, Inc. REIT		28,021		1,065,639
Apartment Investment & Management Co. — Class A REIT		21,900		960,534
American Tower Corp. — Class A REIT		6,694		914,936
AvalonBay Communities, Inc. REIT		4,471		797,716
Host Hotels & Resorts, Inc. REIT		41,800		772,882
Digital Realty Trust, Inc. REIT		6,300		745,479
Welltower, Inc. REIT		10,600		744,968
Duke Realty Corp. REIT		23,900		688,798
Charles Schwab Corp.		14,415		630,512
Arthur J Gallagher & Co.		10,200		627,810
GGP, Inc. REIT		29,700		616,869
Mastercard, Inc. — Class A		4,206		593,887
Marsh & McLennan Companies, Inc.		6,200		519,622
Extra Space Storage, Inc. REIT		6,300		503,496
Kimco Realty Corp. REIT		25,588		500,245
Discover Financial Services		7,300		470,704
Total Financial				15,205,402
Communications - 13.6%
Facebook, Inc. — Class A*		10,629		1,816,177
Charter Communications, Inc. — Class A*		4,200		1,526,364
Amazon.com, Inc.*		1,500		1,442,025
Priceline Group, Inc.*		631		1,155,247
Scripps Networks Interactive, Inc. — Class A		13,300		1,142,337
Netflix, Inc.*		6,024		1,092,452
F5 Networks, Inc.*		9,000		1,085,040
Motorola Solutions, Inc.		12,600		1,069,362
Expedia, Inc.		6,189		890,845
Time Warner, Inc.		7,400		758,130
CBS Corp. — Class B		10,800		626,400
VeriSign, Inc.*		5,705		606,955
Comcast Corp. — Class A		14,700		565,656
Alphabet, Inc. — Class C*		387		371,176
Discovery Communications, Inc. — Class C*		14,900		301,874

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® PURE GROWTH FUND

	Shares		Value
Alphabet, Inc. — Class A*		302	$	294,063
Discovery Communications, Inc. — Class A*		10,330		219,926
Total Communications				14,964,029
Consumer, Cyclical - 11.2%
Ulta Beauty, Inc.*		7,000		1,582,420
Starbucks Corp.		22,000		1,181,620
LKQ Corp.*		31,577		1,136,456
Dollar Tree, Inc.*		13,063		1,134,130
Darden Restaurants, Inc.		13,400		1,055,652
Michael Kors Holdings Ltd.*		21,200		1,014,420
United Continental Holdings, Inc.*		14,000		852,320
Ross Stores, Inc.		11,773		760,183
Dollar General Corp.		8,900		721,345
Marriott International, Inc. — Class A		5,700		628,482
Southwest Airlines Co.		9,842		550,955
Hasbro, Inc.		4,900		478,583
Harley-Davidson, Inc.		9,300		448,353
O’Reilly Automotive, Inc.*		1,875		403,819
Advance Auto Parts, Inc.		2,821		279,843
Total Consumer, Cyclical				12,228,581
Basic Materials - 1.8%
Albemarle Corp.		9,400		1,281,314
Newmont Mining Corp.		17,800		667,678
Total Basic Materials				1,948,992
Utilities - 0.4%
American Water Works Company, Inc.		5,900		477,369
Total Common Stocks
(Cost $87,740,715)				109,085,930

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	341,483	$	341,483
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		170,742		170,742
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		84,901		84,901
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		77,574		77,574
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		8,136		8,136
Total Repurchase Agreements
(Cost $682,836)				682,836
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.6%
First American Government Obligations Fund — Class Z, 0.89%4		622,819		622,819
Total Securities Lending Collateral
(Cost $622,819)				622,819
Total Investments - 100.7%
(Cost $89,046,370)			$	110,391,585
Other Assets & Liabilities, net - (0.7)%				(738,015	)
Total Net Assets - 100.0%			$	109,653,570

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P 500® PURE GROWTH FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Ubobservable Inputs		Total
Common Stocks	$	109,085,930	$	—	$	—	$	109,085,930
Repurchase Agreements		—		682,836		—		682,836
Securities Lending Collateral		622,819		—		—		622,819
Total Assets	$	109,708,749	$	682,836	$	—	$	110,391,585

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $613,925 of securities loaned (cost $88,363,534)	$	109,708,749
Repurchase agreements, at value (cost $682,836)		682,836
Cash		19,011
Receivables:
Securities sold		3,008,182
Dividends		57,404
Fund shares sold		49,479
Securities lending income		112
Interest		38
Total assets		113,525,811
Liabilities:
Payable for:
Fund shares redeemed		3,081,276
Return of securities loaned		622,819
Management fees		62,756
Distribution and service fees		28,103
Transfer agent and administrative fees		20,918
Portfolio accounting fees		8,367
Miscellaneous		48,002
Total liabilities		3,872,241
Commitments and contingent liabilities (Note 12)		—
Net assets	$	109,653,570
Net assets consist of:
Paid in capital	$	76,239,702
Accumulated net investment loss		(625,354	)
Accumulated net realized gain on investments		12,694,007
Net unrealized appreciation on investments		21,345,215
Net assets	$	109,653,570
A-Class:
Net assets	$	14,338,894
Capital shares outstanding		222,917
Net asset value per share	$	64.32
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.53
C-Class:
Net assets	$	11,603,385
Capital shares outstanding		200,899
Net asset value per share	$	57.76
H-Class:
Net assets	$	83,711,291
Capital shares outstanding		1,301,633
Net asset value per share	$	64.31

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	672,517
Interest		2,837
Income from securities lending, net		2,101
Total investment income		677,455
Expenses:
Management fees		450,014
Distribution and service fees:
A-Class		19,181
C-Class		58,241
H-Class		116,263
Transfer agent and administrative fees		150,005
Portfolio accounting fees		60,001
Registration fees		56,015
Custodian fees		7,858
Trustees’ fees*		4,765
Line of credit fees		32
Miscellaneous		48,673
Total expenses		971,048
Net investment loss		(293,593	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,705,278
Net realized gain		8,705,278
Net change in unrealized appreciation (depreciation) on:
Investments		4,539,542
Net change in unrealized appreciation (depreciation)		4,539,542
Net realized and unrealized gain		13,244,820
Net increase in net assets resulting from operations	$	12,951,227

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

14 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(293,593	)	$	(912,048	)
Net realized gain on investments		8,705,278			20,611,148
Net change in unrealized appreciation (depreciation) on investments		4,539,542			(8,959,618	)
Net increase in net assets resulting from operations		12,951,227			10,739,482
Distributions to shareholders from:
Net realized gains
A-Class		—			(6,873	)
C-Class		—			(5,189	)
H-Class		—			(25,208	)
Total distributions to shareholders		—			(37,270	)
Capital share transactions:
Proceeds from sale of shares
A-Class		9,573,370			14,412,065
C-Class		1,712,620			1,978,513
H-Class		129,488,737			196,453,565
Distributions reinvested
A-Class		—			6,784
C-Class		—			5,050
H-Class		—			24,834
Cost of shares redeemed
A-Class		(12,461,685	)		(24,797,962	)
C-Class		(2,254,495	)		(9,884,631	)
H-Class		(134,554,797	)		(238,506,871	)
Net decrease from capital share transactions		(8,496,250	)		(60,308,653	)
Net increase (decrease) in net assets		4,454,977			(49,606,441	)
Net assets:
Beginning of period		105,198,593			154,805,034
End of period	$	109,653,570		$	105,198,593
Accumulated net investment loss at end of period	$	(625,354	)	$	(331,761	)
Capital share activity:
Shares sold
A-Class		161,472			266,962
C-Class		31,543			39,085
H-Class		2,151,923			3,652,903
Shares issued from reinvestment of distributions
A-Class		—			125
C-Class		—			103
H-Class		—			458
Shares redeemed
A-Class		(207,820	)		(462,388	)
C-Class		(40,713	)		(202,526	)
H-Class		(2,210,694	)		(4,481,621	)
Net decrease in shares		(114,289	)		(1,186,899	)

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	57.84		$	51.74		$	55.85		$	50.81		$	38.86		$	34.54
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.44	)		(.22	)		(.33	)		(.23	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		6.60			6.56			(2.47	)		6.86			12.18			4.45
Total from investment operations		6.48			6.12			(2.69	)		6.53			11.95			4.32
Less distributions from:
Net realized gains		—			(.02	)		(1.42	)		(1.49	)		—			—
Total distributions		—			(.02	)		(1.42	)		(1.49	)		—			—
Net asset value, end of period	$	64.32		$	57.84		$	51.74		$	55.85		$	50.81		$	38.86
Total Returnc		11.20	%		11.84	%		(4.90	%)		12.98	%		30.75	%		12.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,339		$	15,575		$	24,037		$	25,768		$	19,978		$	15,001
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.82	%)		(0.41	%)		(0.62	%)		(0.51	%)		(0.38	%)
Total expenses		1.55	%		1.53	%		1.50	%		1.50	%		1.52	%		1.51	%
Portfolio turnover rate		91	%		184	%		290	%		274	%		594	%		421	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	52.13		$	46.99		$	51.23		$	47.07		$	36.27		$	32.48
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.77	)		(.57	)		(.67	)		(.52	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		5.94			5.93			(2.25	)		6.32			11.32			4.17
Total from investment operations		5.63			5.16			(2.82	)		5.65			10.80			3.79
Less distributions from:
Net realized gains		—			(.02	)		(1.42	)		(1.49	)		—			—
Total distributions		—			(.02	)		(1.42	)		(1.49	)		—			—
Net asset value, end of period	$	57.76		$	52.13		$	46.99		$	51.23		$	47.07		$	36.27
Total Returnc		10.78	%		10.99	%		(5.61	%)		12.13	%		29.78	%		11.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,603		$	10,951		$	17,546		$	22,701		$	17,042		$	8,692
Ratios to average net assets:
Net investment income (loss)		(1.14	%)		(1.57	%)		(1.16	%)		(1.37	%)		(1.24	%)		(1.19	%)
Total expenses		2.30	%		2.27	%		2.25	%		2.25	%		2.27	%		2.25	%
Portfolio turnover rate		91	%		184	%		290	%		274	%		594	%		421	%

16 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	57.83		$	51.73		$	55.84		$	50.80		$	38.84		$	34.52
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.44	)		(.18	)		(.34	)		(.23	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		6.61			6.56			(2.51	)		6.87			12.19			4.47
Total from investment operations		6.48			6.12			(2.69	)		6.53			11.96			4.32
Less distributions from:
Net realized gains		—			(.02	)		(1.42	)		(1.49	)		—			—
Total distributions		—			(.02	)		(1.42	)		(1.49	)		—			—
Net asset value, end of period	$	64.31		$	57.83		$	51.73		$	55.84		$	50.80		$	38.84
Total Returnc		11.21	%		11.84	%		(4.91	%)		12.98	%		30.79	%		12.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	83,711		$	78,673		$	113,223		$	104,628		$	103,502		$	52,483
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.81	%)		(0.35	%)		(0.65	%)		(0.50	%)		(0.43	%)
Total expenses		1.55	%		1.52	%		1.51	%		1.50	%		1.52	%		1.50	%
Portfolio turnover rate		91	%		184	%		290	%		274	%		594	%		421	%

a	Unaudited figures for the period ended September 30, 2017. 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 | 17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Centene Corp.	2.6%
Berkshire Hathaway, Inc. — Class B	2.6%
Arconic, Inc.	2.3%
General Motors Co.	2.2%
Valero Energy Corp.	2.0%
Anthem, Inc.	2.0%
Andeavor	1.8%
Prudential Financial, Inc.	1.7%
Archer-Daniels-Midland Co.	1.6%
Hartford Financial Services Group, Inc.	1.6%
Top Ten Total	20.4%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	5.05%	17.11%	14.55%	6.17%
A-Class Shares with sales charge‡	0.06%	11.55%	13.44%	5.65%
C-Class Shares	4.65%	16.23%	13.69%	5.41%
C-Class Shares with CDSC§	3.65%	15.23%	13.69%	5.41%
H-Class Shares	5.05%	17.11%	14.54%	6.21%
S&P 500 Pure Value Index	5.77%	18.90%	16.53%	8.74%

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

18 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Financial - 35.3%
Berkshire Hathaway, Inc. — Class B*		9,529	$	1,746,857
Prudential Financial, Inc.		11,016		1,171,222
Hartford Financial Services Group, Inc.		19,559		1,084,155
Assurant, Inc.		11,250		1,074,600
Unum Group		20,525		1,049,443
Lincoln National Corp.		13,704		1,006,970
Allstate Corp.		10,588		973,143
XL Group Ltd.		24,361		961,041
MetLife, Inc.		17,448		906,424
Citigroup, Inc.		12,295		894,339
Loews Corp.		16,807		804,383
Bank of America Corp.		30,965		784,653
Capital One Financial Corp.		8,287		701,577
Aflac, Inc.		8,368		681,072
American International Group, Inc.		11,036		677,500
Travelers Companies, Inc.		5,048		618,481
Regions Financial Corp.		39,735		605,164
Morgan Stanley		12,488		601,547
Everest Re Group Ltd.		2,500		570,975
SunTrust Banks, Inc.		9,344		558,491
Chubb Ltd.		3,677		524,156
Progressive Corp.		10,563		511,460
JPMorgan Chase & Co.		4,967		474,398
Principal Financial Group, Inc.		7,300		469,682
Zions Bancorporation		9,513		448,823
PNC Financial Services Group, Inc.		3,211		432,746
Fifth Third Bancorp		15,215		425,716
Goldman Sachs Group, Inc.		1,736		411,762
People’s United Financial, Inc.		19,315		350,374
Bank of New York Mellon Corp.		6,454		342,191
BB&T Corp.		6,780		318,253
Navient Corp.		20,912		314,098
Torchmark Corp.		3,849		308,266
Wells Fargo & Co.		5,379		296,652
Huntington Bancshares, Inc.		20,587		287,395
State Street Corp.		2,964		283,181
Invesco Ltd.		7,299		255,757
Brighthouse Financial, Inc.*		1,522		92,538
Total Financial				24,019,485
Consumer, Cyclical - 18.8%
General Motors Co.		37,340		1,507,789
Ford Motor Co.		88,950		1,064,732
PulteGroup, Inc.		36,245		990,576
DR Horton, Inc.		22,347		892,316
Wal-Mart Stores, Inc.		10,691		835,394
Goodyear Tire & Rubber Co.		24,591		817,651
CVS Health Corp.		9,689		787,909
Lennar Corp. — Class A		14,520		766,656
Kohl’s Corp.		14,055		641,611
Whirlpool Corp.		3,418		630,416
BorgWarner, Inc.		11,048		565,989
PVH Corp.		4,069		512,938
Gap, Inc.		15,558		459,428
Costco Wholesale Corp.		2,390		392,653
Carnival Corp.		4,840		312,519
Target Corp.		5,284		311,809
American Airlines Group, Inc.		6,468		307,165
Macy’s, Inc.		13,458		293,654
Delta Air Lines, Inc.		6,068		292,599
Walgreens Boots Alliance, Inc.		3,620		279,536
Signet Jewelers Ltd.1		2,710		180,351
Total Consumer, Cyclical				12,843,691
Consumer, Non-cyclical - 14.7%
Centene Corp.*		18,117		1,753,183
Anthem, Inc.		7,307		1,387,453
Archer-Daniels-Midland Co.		25,941		1,102,752
McKesson Corp.		5,599		860,061
Tyson Foods, Inc. — Class A		11,188		788,195
Cardinal Health, Inc.		10,905		729,763
AmerisourceBergen Corp. — Class A		8,490		702,548
Express Scripts Holding Co.*		8,693		550,441
Cigna Corp.		2,570		480,436
Allergan plc		2,340		479,583
Patterson Companies, Inc.		11,933		461,210
Kroger Co.		21,307		427,418
DaVita, Inc.*		4,979		295,703
Total Consumer, Non-cyclical				10,018,746
Utilities - 8.5%
Exelon Corp.		20,873		786,285
NRG Energy, Inc.		29,547		756,108
Entergy Corp.		9,534		728,016
FirstEnergy Corp.		17,891		551,580
AES Corp.		45,294		499,140
Duke Energy Corp.		5,778		484,890
Consolidated Edison, Inc.		5,352		431,799
Eversource Energy		5,595		338,162
Public Service Enterprise Group, Inc.		7,307		337,949
Ameren Corp.		5,324		307,940
Xcel Energy, Inc.		6,141		290,592
DTE Energy Co.		2,606		279,780
Total Utilities				5,792,241
Energy - 6.5%
Valero Energy Corp.		18,158		1,396,894
Andeavor		11,628		1,199,428
Marathon Petroleum Corp.		17,771		996,598
Phillips 66		7,132		653,363
Marathon Oil Corp.		15,330		207,875
Total Energy				4,454,158
Industrial - 6.5%
Arconic, Inc.		61,686		1,534,747
Fluor Corp.		14,813		623,627
WestRock Co.		10,871		616,712
Jacobs Engineering Group, Inc.		9,686		564,403
Textron, Inc.		8,319		448,228
Johnson Controls International plc		8,299		334,367

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P 500® PURE VALUE FUND

	Shares		Value
Eaton Corporation plc		3,819	$	293,261
Total Industrial				4,415,345
Technology - 3.3%
Xerox Corp.		31,831		1,059,654
Hewlett Packard Enterprise Co.		32,166		473,161
HP, Inc.		21,237		423,891
Western Digital Corp.		3,620		312,768
Total Technology				2,269,474
Communications - 3.2%
CenturyLink, Inc.1		46,514		879,115
News Corp. — Class A		58,546		776,320
AT&T, Inc.		6,977		273,289
News Corp. — Class B		18,459		251,965
Total Communications				2,180,689
Diversified - 1.5%
Leucadia National Corp.		40,497		1,022,549
Basic Materials - 1.2%
Mosaic Co.		23,697		511,618
Eastman Chemical Co.		3,190		288,663
Total Basic Materials				800,281
Total Common Stocks
(Cost $55,495,186)				67,816,659

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	186,799	$	186,799
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		93,400		93,400
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		46,443		46,443
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		42,435		42,435
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		4,450		4,450
Total Repurchase Agreements
(Cost $373,527)				373,527
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.2%
First American Government Obligations Fund — Class Z, 0.89%4		797,810		797,810
Total Securities Lending Collateral
(Cost $797,810)				797,810
Total Investments - 101.2%
(Cost $56,666,523)			$	68,987,996
Other Assets & Liabilities, net - (1.2)%				(846,585	)
Total Net Assets - 100.0%			$	68,141,411

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P 500® PURE VALUE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Ubobservable Inputs		Total
Common Stocks	$	67,816,659	$	—	$	—	$	67,816,659
Repurchase Agreements		—		373,527		—		373,527
Securities Lending Collateral		797,810		—		—		797,810
Total Assets	$	68,614,469	$	373,527	$	—	$	68,987,996

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $765,352 of securities loaned (cost $56,292,996)	$	68,614,469
Repurchase agreements, at value (cost $373,527)		373,527
Receivables:
Securities sold		782,067
Fund shares sold		210,735
Dividends		64,588
Securities lending income		50
Interest		21
Total assets		70,045,457
Liabilities:
Payable for:
Fund shares redeemed		1,016,964
Return of securities loaned		797,810
Management fees		37,435
Distribution and service fees		16,669
Transfer agent and administrative fees		12,478
Portfolio accounting fees		4,992
Miscellaneous		17,698
Total liabilities		1,904,046
Commitments and contingent liabilities (Note 12)		—
Net assets	$	68,141,411
Net assets consist of:
Paid in capital	$	57,861,273
Undistributed net investment income		522,462
Accumulated net realized loss on investments		(2,563,797	)
Net unrealized appreciation on investments		12,321,473
Net assets	$	68,141,411
A-Class:
Net assets	$	5,501,667
Capital shares outstanding		68,541
Net asset value per share	$	80.27
Maximum offering price per share (Net asset value divided by 95.25%)	$	84.27
C-Class:
Net assets	$	6,935,814
Capital shares outstanding		98,734
Net asset value per share	$	70.25
H-Class:
Net assets	$	55,703,930
Capital shares outstanding		691,377
Net asset value per share	$	80.57

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	663,979
Interest		1,292
Income from securities lending, net		598
Total investment income		665,869
Expenses:
Management fees		226,109
Distribution and service fees:
A-Class		6,856
C-Class		26,215
H-Class		61,960
Transfer agent and administrative fees		75,370
Registration fees		45,009
Portfolio accounting fees		30,148
Custodian fees		4,164
Trustees’ fees*		2,830
Line of credit fees		6
Miscellaneous		6,979
Total expenses		485,646
Net investment income		180,223
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,540,773
Net realized gain		2,540,773
Net change in unrealized appreciation (depreciation) on:
Investments		(273,460	)
Net change in unrealized appreciation (depreciation)		(273,460	)
Net realized and unrealized gain		2,267,313
Net increase in net assets resulting from operations	$	2,447,536

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

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

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	180,223		$	517,481
Net realized gain on investments		2,540,773			9,473,645
Net change in unrealized appreciation (depreciation) on investments		(273,460	)		(2,541,794	)
Net increase in net assets resulting from operations		2,447,536			7,449,332
Distributions to shareholders from:
Net investment income
A-Class		—			(80,316	)
C-Class		—			(33,250	)
H-Class		—			(679,152	)
Total distributions to shareholders		—			(792,718	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,497,053			25,346,366
C-Class		3,787,812			5,011,398
H-Class		73,030,551			218,922,617
Distributions reinvested
A-Class		—			78,769
C-Class		—			32,403
H-Class		—			677,330
Cost of shares redeemed
A-Class		(6,907,648	)		(30,688,025	)
C-Class		(1,034,912	)		(5,062,879	)
H-Class		(74,890,770	)		(240,430,536	)
Net decrease from capital share transactions		(517,914	)		(26,112,557	)
Net increase (decrease) in net assets		1,929,622			(19,455,943	)
Net assets:
Beginning of period		66,211,789			85,667,732
End of period	$	68,141,411		$	66,211,789
Undistributed net investment income at end of period	$	522,462		$	342,239
Capital share activity:
Shares sold
A-Class		70,704			363,232	*
C-Class		55,789			75,970	*
H-Class		933,980			3,073,769	*
Shares issued from reinvestment of distributions
A-Class		—			1,086	*
C-Class		—			507	*
H-Class		—			9,301	*
Shares redeemed
A-Class		(89,649	)		(445,468	)*
C-Class		(15,337	)		(78,861	)*
H-Class		(967,606	)		(3,429,081	)*
Net decrease in shares		(12,119	)		(429,545	)*

* Capital share activity for the period through March 31, 2017, has been restated to reflect a 2:1 share split effective October 28, 2016 — See Note 11.

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	76.42		$	66.03		$	72.54		$	70.69		$	55.84		$	46.75
Income (loss) from investment operations:
Net investment income (loss)b		.26			.55			.73			.57			.31			.29
Net gain (loss) on investments (realized and unrealized)		3.59			10.52			(4.63	)		3.42			17.50			8.87
Total from investment operations		3.85			11.07			(3.90	)		3.99			17.81			9.16
Less distributions from:
Net investment income		—			(.68	)		(.98	)		(.07	)		(.12	)		(.07	)
Net realized gains		—			—			(1.63	)		(2.07	)		(2.84	)		—
Total distributions		—			(.68	)		(2.61	)		(2.14	)		(2.96	)		(.07	)
Net asset value, end of period	$	80.27		$	76.42		$	66.03		$	72.54		$	70.69		$	55.84
Total Returnc		5.05	%		16.80	%		(5.44	%)		5.60	%		32.21	%		19.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,502		$	6,686		$	11,135		$	16,222		$	4,435		$	1,303
Ratios to average net assets:
Net investment income (loss)		0.68	%		0.79	%		1.08	%		0.78	%		0.47	%		0.61	%
Total expenses		1.55	%		1.53	%		1.50	%		1.51	%		1.52	%		1.51	%
Portfolio turnover rate		110	%		321	%		365	%		295	%		410	%		669	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	67.13		$	58.51		$	65.08		$	64.10		$	51.23		$	43.21
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.01	)		.17			.02			(.15	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		3.13			9.31			(4.13	)		3.10			15.98			8.19
Total from investment operations		3.12			9.30			(3.96	)		3.12			15.83			8.09
Less distributions from:
Net investment income		—			(.68	)		(.98	)		(.07	)		(.12	)		(.07	)
Net realized gains		—			—			(1.63	)		(2.07	)		(2.84	)		—
Total distributions		—			(.68	)		(2.61	)		(2.14	)		(2.96	)		(.07	)
Net asset value, end of period	$	70.25		$	67.13		$	58.51		$	65.08		$	64.10		$	51.23
Total Returnc		4.65	%		15.94	%		(6.15	%)		4.81	%		31.21	%		18.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,936		$	3,913		$	3,550		$	6,390		$	5,090		$	3,430
Ratios to average net assets:
Net investment income (loss)		(0.02	%)		(0.01	%)		0.28	%		0.03	%		(0.26	%)		(0.22	%)
Total expenses		2.30	%		2.28	%		2.25	%		2.25	%		2.27	%		2.26	%
Portfolio turnover rate		110	%		321	%		365	%		295	%		410	%		669	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d
Per Share Data
Net asset value, beginning of period	$	76.71		$	66.28		$	72.81		$	70.94		$	56.03		$	46.90
Income (loss) from investment operations:
Net investment income (loss)b		.25			.59			.80			.49			.26			.29
Net gain (loss) on investments (realized and unrealized)		3.61			10.52			(4.72	)		3.52			17.61			8.91
Total from investment operations		3.86			11.11			(3.92	)		4.01			17.87			9.20
Less distributions from:
Net investment income		—			(.68	)		(.98	)		(.07	)		(.12	)		(.07	)
Net realized gains		—			—			(1.63	)		(2.07	)		(2.84	)		—
Total distributions		—			(.68	)		(2.61	)		(2.14	)		(2.96	)		(.07	)
Net asset value, end of period	$	80.57		$	76.71		$	66.28		$	72.81		$	70.94		$	56.03
Total Returnc		5.05	%		16.81	%		(5.44	%)		5.60	%		32.21	%		19.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,704		$	55,613		$	70,983		$	48,920		$	114,984		$	78,480
Ratios to average net assets:
Net investment income (loss)		0.65	%		0.83	%		1.17	%		0.66	%		0.40	%		0.58	%
Total expenses		1.55	%		1.53	%		1.50	%		1.51	%		1.52	%		1.52	%
Portfolio turnover rate		110	%		321	%		365	%		295	%		410	%		669	%

a	Unaudited figures for the period ended September 30, 2017. 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	Share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 28, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Cognex Corp.	2.8%
ABIOMED, Inc.	2.8%
Take-Two Interactive Software, Inc.	2.7%
Thor Industries, Inc.	2.1%
InterDigital, Inc.	2.0%
WellCare Health Plans, Inc.	1.9%
LogMeIn, Inc.	1.9%
Royal Gold, Inc.	1.8%
Domino's Pizza, Inc.	1.8%
MarketAxess Holdings, Inc.	1.8%
Top Ten Total	21.6%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	6.30%	14.98%	9.66%	8.84%
A-Class Shares with sales charge‡	1.26%	9.52%	8.60%	8.31%
C-Class Shares	5.89%	14.11%	8.85%	8.03%
C-Class Shares with CDSC§	4.89%	13.11%	8.85%	8.03%
H-Class Shares	6.29%	14.98%	9.67%	8.84%
S&P MidCap 400 Pure Growth Index	7.12%	16.79%	11.06%	10.50%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

26 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P MIDCAP 400® PURE GROWTH FUND

		Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Cyclical - 20.0%
Thor Industries, Inc.			18,162	$	2,286,777
Domino’s Pizza, Inc.1			10,175		2,020,245
Urban Outfitters, Inc.*			65,481		1,564,995
Copart, Inc.*			45,196		1,553,387
NVR, Inc.*,1			500		1,427,500
Churchill Downs, Inc.			6,700		1,381,540
Skechers U.S.A., Inc. — Class A*			53,077		1,331,702
Wendy’s Co.			84,209		1,307,766
Papa John’s International, Inc.			17,010		1,242,921
Texas Roadhouse, Inc. — Class A			24,949		1,225,994
Jack in the Box, Inc.			11,283		1,149,963
Toro Co.			16,960		1,052,538
Dunkin’ Brands Group, Inc.			16,345		867,593
Pool Corp.			7,540		815,602
MSC Industrial Direct Company, Inc. — Class A			10,580		799,531
Dick’s Sporting Goods, Inc.			23,653		638,868
Buffalo Wild Wings, Inc.*			4,795		506,832
Cheesecake Factory, Inc.			10,980		462,478
Brinker International, Inc.1			13,870		441,898
Total Consumer, Cyclical					22,078,130
Consumer, Non-cyclical - 19.1%
ABIOMED, Inc.*			18,179		3,064,979
WellCare Health Plans, Inc.*			12,470		2,141,597
MarketAxess Holdings, Inc.			10,827		1,997,690
Masimo Corp.*			17,987		1,556,955
Incorporated Research Holdings, Inc. — Class A*			29,548		1,545,360
NuVasive, Inc.*			27,132		1,504,741
Bioverativ, Inc.*			25,200		1,438,164
CoreLogic, Inc.*			28,940		1,337,607
Avis Budget Group, Inc.*,1			33,269		1,266,218
HealthSouth Corp.			26,450		1,225,958
Bio-Techne Corp.			9,437		1,140,839
Post Holdings, Inc.*			12,805		1,130,297
Akorn, Inc.*			33,117		1,099,153
Sotheby’s*			15,670		722,544
Total Consumer, Non-cyclical					21,172,102
Industrial – 18.0%
Cognex Corp.			28,492		3,142,097
Eagle Materials, Inc.			13,855		1,478,329
Littelfuse, Inc.			6,880		1,347,655
Old Dominion Freight Line, Inc.			12,100		1,332,331
Nordson Corp.			10,700		1,267,949
Granite Construction, Inc.			21,760		1,260,992
Carlisle Companies, Inc.			11,080		1,111,213
Coherent, Inc.*	��		4,600		1,081,783
Zebra Technologies Corp. — Class A*			8,775		952,790
Landstar System, Inc.			9,290		925,749
Gentex Corp.			46,519		921,076
Worthington Industries, Inc.			18,882		868,572
Knight-Swift Transportation Holdings, Inc.*			19,800		822,690
Huntington Ingalls Industries, Inc.			3,600		815,184
Woodward, Inc.			9,368		727,050
Crane Co.1			8,500		679,915
Curtiss-Wright Corp.			6,300		658,602
EnerSys			7,390		511,166
Total Industrial					19,905,143
Financial - 17.2%
SLM Corp.*			154,700		1,774,409
Home BancShares, Inc.			64,900		1,636,778
First Horizon National Corp.			80,982		1,550,805
Primerica, Inc.			18,560		1,513,568
First Industrial Realty Trust, Inc. REIT			48,970		1,473,508
DCT Industrial Trust, Inc. REIT			23,120		1,339,110
Kilroy Realty Corp. REIT			17,050		1,212,596
Pinnacle Financial Partners, Inc.			17,450		1,168,278
Brown & Brown, Inc.			23,430		1,129,092
Education Realty Trust, Inc. REIT			25,280		908,310
Uniti Group, Inc. REIT1			59,406		870,892
Washington Federal, Inc.			25,065		843,437
Sterling Bancorp			31,600		778,940
Lamar Advertising Co. — Class A REIT			10,709		733,888
Weingarten Realty Investors REIT			23,060		731,924
Bank of the Ozarks			15,220		731,321
Liberty Property Trust REIT			16,120		661,887
Total Financial					19,058,743
Technology - 15.6%
Take-Two Interactive Software, Inc.*			29,328		2,998,200
Cirrus Logic, Inc.*			29,748		1,586,164
Monolithic Power Systems, Inc.			13,904		1,481,471
Microsemi Corp.*			24,329		1,252,457
MSCI, Inc. — Class A			9,855		1,152,049
Medidata Solutions, Inc.*			13,900		1,085,034
MAXIMUS, Inc.			16,776		1,082,052
IPG Photonics Corp.*			5,670		1,049,290
Ultimate Software Group, Inc.*			5,166		979,474
NCR Corp.*			25,155		943,816
Integrated Device Technology, Inc.*			30,566		812,444
Science Applications International Corp.			11,680		780,808
Fair Isaac Corp.			5,441		764,461
Broadridge Financial Solutions, Inc.			8,591		694,325
CommVault Systems, Inc.*			10,634		646,547
Total Technology					17,308,592
Communications - 3.9%
InterDigital, Inc.			29,835		2,200,331
LogMeIn, Inc.			19,400		2,134,970
Total Communications					4,335,301
Basic Materials - 3.1%
Royal Gold, Inc.			23,749		2,043,363
Minerals Technologies, Inc.			19,070		1,347,296
Total Basic Materials					3,390,659

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
Utilities - 1.4%
Southwest Gas Holdings, Inc.		11,180	$	867,792
MDU Resources Group, Inc.		25,640		665,358
Total Utilities				1,533,150
Energy - 1.2%
Murphy Oil Corp.		49,700		1,320,032
Total Common Stocks
(Cost $97,091,775)				110,101,852
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	286,722		286,722
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		143,361		143,361
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		71,286		71,286

HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		65,134		65,134
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		6,831		6,831
Total Repurchase Agreements
(Cost $573,334)				573,334
	Shares
SECURITIES LENDING COLLATERAL†,3 - 4.0%
First American Government Obligations Fund — Class Z, 0.89%4		4,421,049		4,421,049
Total Securities Lending Collateral
(Cost $4,421,049)				4,421,049
Total Investments - 104.0%
(Cost $102,086,158)			$	115,096,235
Other Assets & Liabilities, net - (4.0)%				(4,467,669	)
Total Net Assets - 100.0%			$	110,628,566

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Ubobservable Inputs		Total
Common Stocks	$	110,101,852	$	—	$	—	$	110,101,852
Repurchase Agreements		—		573,334		—		573,334
Securities Lending Collateral		4,421,049		—		—		4,421,049
Total Assets	$	114,522,901	$	573,334	$	—	$	115,096,235

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $4,327,541 of securities loaned (cost $101,512,824)	$	114,522,901
Repurchase agreements, at value (cost $573,334)		573,334
Receivables:
Securities sold		2,047,286
Fund shares sold		262,119
Dividends		88,892
Securities lending income		247
Interest		32
Total assets		117,494,811
Liabilities:
Payable for:
Return of securities loaned		4,421,049
Fund shares redeemed		1,493,582
Securities purchased		788,800
Management fees		62,109
Distribution and service fees		29,254
Transfer agent and administrative fees		20,703
Portfolio accounting fees		8,281
Miscellaneous		42,467
Total liabilities		6,866,245
Commitments and contingent liabilities (Note 12)		—
Net assets	$	110,628,566
Net assets consist of:
Paid in capital	$	91,425,591
Accumulated net investment loss		(515,253	)
Accumulated net realized gain on investments		6,708,151
Net unrealized appreciation on investments		13,010,077
Net assets	$	110,628,566
A-Class:
Net assets	$	14,009,023
Capital shares outstanding		259,254
Net asset value per share	$	54.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.73
C-Class:
Net assets	$	14,019,743
Capital shares outstanding		295,312
Net asset value per share	$	47.47
H-Class:
Net assets	$	82,599,800
Capital shares outstanding		1,527,004
Net asset value per share	$	54.09

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	456,293
Interest		2,034
Income from securities lending, net		3,482
Total investment income		461,809
Expenses:
Management fees		374,069
Distribution and service fees:
A-Class		17,488
C-Class		72,691
H-Class		89,028
Transfer agent and administrative fees		124,690
Registration fees		53,952
Portfolio accounting fees		49,876
Custodian fees		6,648
Trustees’ fees*		4,388
Line of credit fees		51
Miscellaneous		32,566
Total expenses		825,447
Net investment loss		(363,638	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,056,631
Net realized gain		6,056,631
Net change in unrealized appreciation (depreciation) on:
Investments		190,831
Net change in unrealized appreciation (depreciation)		190,831
Net realized and unrealized gain		6,247,462
Net increase in net assets resulting from operations	$	5,883,824

* 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 | 29

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(363,638	)	$	(950,230	)
Net realized gain on investments		6,056,631			11,414,440
Net change in unrealized appreciation (depreciation) on investments		190,831			360,205
Net increase in net assets resulting from operations		5,883,824			10,824,415
Distributions to shareholders from:
Net realized gains
A-Class		—			(297,374	)
C-Class		—			(291,932	)
H-Class		—			(1,136,619	)
Total distributions to shareholders		—			(1,725,925	)
Capital share transactions:
Proceeds from sale of shares
A-Class		15,163,328			10,325,932
C-Class		247,694			2,821,225
H-Class		37,480,836			79,121,033
Distributions reinvested
A-Class		—			290,748
C-Class		—			289,859
H-Class		—			1,122,775
Cost of shares redeemed
A-Class		(18,227,722	)		(25,120,641	)
C-Class		(2,095,535	)		(9,691,842	)
H-Class		(37,514,599	)		(102,777,781	)
Net decrease from capital share transactions		(4,945,998	)		(43,618,692	)
Net increase (decrease) in net assets		937,826			(34,520,202	)
Net assets:
Beginning of period		109,690,740			144,210,942
End of period	$	110,628,566		$	109,690,740
Accumulated net investment loss at end of period	$	(515,253	)	$	(151,615	)
Capital share activity:
Shares sold
A-Class		288,367			212,056
C-Class		5,366			66,159
H-Class		712,412			1,640,941
Shares issued from reinvestment of distributions
A-Class		—			6,116
C-Class		—			6,895
H-Class		—			23,593
Shares redeemed
A-Class		(349,136	)		(522,005	)
C-Class		(45,731	)		(227,092	)
H-Class		(725,387	)		(2,163,025	)
Net decrease in shares		(114,109	)		(956,362	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	50.84		$	46.51		$	53.86		$	58.66		$	49.76		$	44.11
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.34	)		(.36	)		(.29	)		(.22	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		3.38			5.41			(4.48	)		3.88			11.05			5.84
Total from investment operations		3.20			5.07			(4.84	)		3.59			10.83			5.65
Less distributions from:
Net realized gains		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Total distributions		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Net asset value, end of period	$	54.04		$	50.84		$	46.51		$	53.86		$	58.66		$	49.76
Total Returnc		6.30	%		10.98	%		(9.23	%)		7.18	%		21.90	%		12.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,009		$	16,269		$	29,017		$	40,648		$	59,293		$	45,638
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.71	%)		(0.71	%)		(0.53	%)		(0.40	%)		(0.43	%)
Total expenses		1.55	%		1.52	%		1.50	%		1.51	%		1.52	%		1.50	%
Portfolio turnover rate		59	%		127	%		143	%		134	%		131	%		188	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	44.83		$	41.41		$	48.60		$	54.13		$	46.39		$	41.43
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.61	)		(.66	)		(.64	)		(.58	)		(.49	)
Net gain (loss) on investments (realized and unrealized)		2.96			4.77			(4.02	)		3.50			10.25			5.45
Total from investment operations		2.64			4.16			(4.68	)		2.86			9.67			4.96
Less distributions from:
Net realized gains		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Total distributions		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Net asset value, end of period	$	47.47		$	44.83		$	41.41		$	48.60		$	54.13		$	46.39
Total Returnc		5.89	%		10.16	%		(9.92	%)		6.39	%		20.98	%		12.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,020		$	15,049		$	20,279		$	26,689		$	28,567		$	18,837
Ratios to average net assets:
Net investment income (loss)		(1.37	%)		(1.44	%)		(1.46	%)		(1.26	%)		(1.15	%)		(1.19	%)
Total expenses		2.30	%		2.27	%		2.25	%		2.26	%		2.27	%		2.25	%
Portfolio turnover rate		59	%		127	%		143	%		134	%		131	%		188	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	50.89		$	46.56		$	53.91		$	58.71		$	49.80		$	44.14
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.33	)		(.36	)		(.29	)		(.18	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		3.36			5.40			(4.48	)		3.88			11.02			5.86
Total from investment operations		3.20			5.07			(4.84	)	��	3.59			10.84			5.66
Less distributions from:
Net realized gains		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Total distributions		—			(.74	)		(2.51	)		(8.39	)		(1.93	)		—
Net asset value, end of period	$	54.09		$	50.89		$	46.56		$	53.91		$	58.71		$	49.80
Total Returnc		6.29	%		10.99	%		(9.22	%)		7.18	%		21.91	%		12.82	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	82,600		$	78,373		$	94,915		$	124,672		$	186,863		$	242,157
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.68	%)		(0.71	%)		(0.52	%)		(0.33	%)		(0.45	%)
Total expenses		1.55	%		1.53	%		1.50	%		1.51	%		1.52	%		1.50	%
Portfolio turnover rate		59	%		127	%		143	%		134	%		131	%		188	%

a	Unaudited figures for the period ended September 30, 2017. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
KB Home	3.1%
First Solar, Inc.	2.2%
LifePoint Health, Inc.	2.0%
Domtar Corp.	2.0%
Jabil, Inc.	2.0%
Arrow Electronics, Inc.	1.9%
CNO Financial Group, Inc.	1.8%
AutoNation, Inc.	1.8%
Transocean Ltd.	1.8%
PBF Energy, Inc. — Class A	1.7%
Top Ten Total	20.3%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	3.74%	16.31%	12.61%	5.62%
A-Class Shares with sales charge‡	(1.19%)	10.78%	11.52%	5.11%
C-Class Shares	3.34%	15.46%	11.76%	4.79%
C-Class Shares with CDSC§	2.34%	14.46%	11.76%	4.79%
H-Class Shares	3.72%	16.30%	12.60%	5.61%
S&P MidCap 400 Pure Value Index	4.73%	18.57%	15.08%	8.57%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 33

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.2%
Financial - 21.7%
CNO Financial Group, Inc.		16,964	$	395,939
Reinsurance Group of America, Inc. — Class A		2,531		353,150
Old Republic International Corp.		15,329		301,828
First American Financial Corp.		5,943		296,972
Genworth Financial, Inc. — Class A*		71,567		275,533
Kemper Corp.		5,159		273,427
Hanover Insurance Group, Inc.		2,703		262,002
Jones Lang LaSalle, Inc.		1,900		234,650
Legg Mason, Inc.		5,830		229,177
Aspen Insurance Holdings Ltd.		4,864		196,506
Quality Care Properties, Inc. REIT*		12,273		190,231
Medical Properties Trust, Inc. REIT		14,270		187,365
American Financial Group, Inc.		1,690		174,831
Alleghany Corp.*		314		173,959
Cousins Properties, Inc. REIT		17,340		161,956
Umpqua Holdings Corp.		8,093		157,894
WR Berkley Corp.		2,363		157,707
Stifel Financial Corp.		2,234		119,430
LaSalle Hotel Properties REIT		3,920		113,758
Associated Banc-Corp.		4,406		106,846
Mercury General Corp.		1,710		96,940
Janus Henderson Group plc		2,696		93,929
TCF Financial Corp.		5,426		92,459
CoreCivic, Inc. REIT		3,210		85,932
Total Financial				4,732,421
Industrial - 21.1%
Jabil, Inc.		15,036		429,277
Arrow Electronics, Inc.*		5,123		411,940
Tech Data Corp.*		3,979		353,534
Avnet, Inc.		8,236		323,675
Terex Corp.		7,009		315,545
Trinity Industries, Inc.		8,917		284,452
AECOM*		7,293		268,455
Ryder System, Inc.		3,170		268,023
SYNNEX Corp.		2,005		253,653
KLX, Inc.*		4,721		249,883
AGCO Corp.		3,328		245,507
Owens-Illinois, Inc.*		8,560		215,370
KBR, Inc.		9,470		169,324
Vishay Intertechnology, Inc.		8,305		156,134
Cree, Inc.*		4,933		139,061
Regal Beloit Corp.		1,675		132,325
Werner Enterprises, Inc.		3,292		120,323
Greif, Inc. — Class A		1,641		96,064
Esterline Technologies Corp.*		980		88,347
Kirby Corp.*		1,282		84,548
Total Industrial				4,605,440
Consumer, Cyclical - 20.4%
KB Home		28,447		686,142
AutoNation, Inc.*,1		8,210		389,647
Dillard’s, Inc. — Class A1		6,570		368,380
CalAtlantic Group, Inc.		9,870		361,538
Office Depot, Inc.		71,252		323,484
TRI Pointe Group, Inc.*		22,890		316,111
GameStop Corp. — Class A		15,278		315,643
Toll Brothers, Inc.		6,860		284,484
Dana, Inc.		9,737		272,247
World Fuel Services Corp.		7,119		241,405
Big Lots, Inc.		3,321		177,906
Bed Bath & Beyond, Inc.		7,290		171,096
Cooper Tire & Rubber Co.		4,550		170,170
JetBlue Airways Corp.*		6,236		115,553
International Speedway Corp. — Class A		2,809		101,124
HSN, Inc.		2,181		85,168
American Eagle Outfitters, Inc.		5,495		78,579
Total Consumer, Cyclical				4,458,677
Consumer, Non-cyclical - 16.8%
LifePoint Health, Inc.*		7,680		444,672
Molina Healthcare, Inc.*		5,424		372,954
ManpowerGroup, Inc.		2,946		347,097
Aaron’s, Inc.		7,210		314,572
United Natural Foods, Inc.*		6,619		275,283
Graham Holdings Co. — Class B		428		250,423
Owens & Minor, Inc.		7,893		230,476
Endo International plc*		25,551		218,844
Adtalem Global Education, Inc.*		5,308		190,292
TreeHouse Foods, Inc.*		2,708		183,413
Sanderson Farms, Inc.		1,130		182,518
Mallinckrodt plc*		4,680		174,892
Dean Foods Co.		11,377		123,782
Halyard Health, Inc.*		2,670		120,230
Tenet Healthcare Corp.*,1		6,758		111,034
Flowers Foods, Inc.		4,780		89,912
Avon Products, Inc.*		14,784		34,447
Total Consumer, Non-cyclical				3,664,841
Energy - 9.4%
First Solar, Inc.*		10,272		471,279
Transocean Ltd.*,1		36,200		389,511
PBF Energy, Inc. — Class A1		13,770		380,190
HollyFrontier Corp.		8,301		298,587
Murphy USA, Inc.*		3,314		228,666
Rowan Companies plc — Class A*		14,610		187,739
Oceaneering International, Inc.		3,495		91,814
Total Energy				2,047,786
Basic Materials - 4.7%
Domtar Corp.		10,137		439,844
Reliance Steel & Aluminum Co.		2,472		188,293
Commercial Metals Co.		7,983		151,916
Carpenter Technology Corp.		2,962		142,265
Olin Corp.		3,205		109,771
Total Basic Materials				1,032,089
Communications - 2.6%
Telephone & Data Systems, Inc.		11,715		326,732
Frontier Communications Corp.1		7,427		87,564

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
Cars.com, Inc.*,1		2,840	$	75,572
TEGNA, Inc.		5,040		67,183
Total Communications				557,051
Utilities - 1.4%
Great Plains Energy, Inc.		6,380		193,314
Hawaiian Electric Industries, Inc.		3,351		111,823
Total Utilities				305,137
Technology - 1.1%
Leidos Holdings, Inc.		2,452		145,207
Diebold Nixdorf, Inc.		4,300		98,255
Total Technology				243,462
Total Common Stocks
(Cost $18,435,814)				21,646,904
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	53,201		53,201
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		26,601		26,601

RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		13,227		13,227
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		12,086		12,086
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		1,268		1,268
Total Repurchase Agreements
(Cost $106,383)				106,383
	Shares
SECURITIES LENDING COLLATERAL†,3 - 6.2%
First American Government Obligations Fund — Class Z, 0.89%4		1,359,498		1,359,498
Total Securities Lending Collateral
(Cost $1,359,498)				1,359,498
Total Investments - 105.9%
(Cost $19,901,695)			$	23,112,785
Other Assets & Liabilities, net - (5.9)%				(1,292,508	)
Total Net Assets - 100.0%			$	21,820,277

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	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 | 35

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P MIDCAP 400® PURE VALUE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	21,646,904	$	—	$	—	$	21,646,904
Repurchase Agreements		—		106,383		—		106,383
Securities Lending Collateral		1,359,498		—		—		1,359,498
Total Assets	$	23,006,402	$	106,383	$	—	$	23,112,785

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

36 | 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, 2017

Assets:
Investments, at value - including $1,322,812 of securities loaned (cost $19,795,312)	$	23,006,402
Repurchase agreements, at value (cost $106,383)		106,383
Cash		351
Receivables:
Fund shares sold		91,563
Dividends		17,694
Securities lending income		2,079
Interest		6
Total assets		23,224,478
Liabilities:
Payable for:
Return of securities loaned		1,359,497
Management fees		13,314
Fund shares redeemed		12,591
Distribution and service fees		5,602
Transfer agent and administrative fees		4,438
Portfolio accounting fees		1,775
Miscellaneous		6,984
Total liabilities		1,404,201
Commitments and contingent liabilities (Note 12)		—
Net assets	$	21,820,277
Net assets consist of:
Paid in capital	$	19,634,157
Accumulated net investment loss		(20,620	)
Accumulated net realized loss on investments		(1,004,350	)
Net unrealized appreciation on investments		3,211,090
Net assets	$	21,820,277
A-Class:
Net assets	$	1,347,616
Capital shares outstanding		25,281
Net asset value per share	$	53.31
Maximum offering price per share (Net asset value divided by 95.25%)	$	55.96
C-Class:
Net assets	$	1,938,983
Capital shares outstanding		40,722
Net asset value per share	$	47.62
H-Class:
Net assets	$	18,533,678
Capital shares outstanding		348,112
Net asset value per share	$	53.24

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	154,142
Interest		478
Income from securities lending, net		6,291
Total investment income		160,911
Expenses:
Management fees		83,901
Distribution and service fees:
A-Class		3,146
C-Class		11,312
H-Class		21,993
Transfer agent and administrative fees		27,967
Registration fees		13,526
Portfolio accounting fees		11,187
Custodian fees		1,518
Trustees’ fees*		1,249
Line of credit fees		130
Miscellaneous		5,602
Total expenses		181,531
Net investment loss		(20,620	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		854,762
Net realized gain		854,762
Net change in unrealized appreciation (depreciation) on:
Investments		(11,922	)
Net change in unrealized appreciation (depreciation)		(11,922	)
Net realized and unrealized gain		842,840
Net increase in net assets resulting from operations	$	822,220

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(20,620	)	$	(78,684	)
Net realized gain on investments		854,762			5,833,493
Net change in unrealized appreciation (depreciation) on investments		(11,922	)		(1,694,499	)
Net increase in net assets resulting from operations		822,220			4,060,310
Distributions to shareholders from:
Net investment income
A-Class		—			(4,378	)
C-Class		—			(5,759	)
H-Class		—			(42,411	)
Total distributions to shareholders		—			(52,548	)
Capital share transactions:
Proceeds from sale of shares
A-Class		3,835,755			5,501,146
C-Class		115,610			5,468,549
H-Class		70,694,449			250,100,866
Distributions reinvested
A-Class		—			4,352
C-Class		—			5,625
H-Class		—			42,140
Cost of shares redeemed
A-Class		(5,478,091	)		(7,712,771	)
C-Class		(1,491,361	)		(4,823,563	)
H-Class		(74,044,397	)		(280,216,330	)
Net decrease from capital share transactions		(6,368,035	)		(31,629,986	)
Net decrease in net assets		(5,545,815	)		(27,622,224	)
Net assets:
Beginning of period		27,366,092			54,988,316
End of period	$	21,820,277		$	27,366,092
Accumulated net investment loss at end of period	$	(20,620	)	$	—
Capital share activity:
Shares sold
A-Class		74,224			114,895
C-Class		2,516			127,191
H-Class		1,381,950			5,516,255
Shares issued from reinvestment of distributions
A-Class		—			89
C-Class		—			127
H-Class		—			860
Shares redeemed
A-Class		(106,491	)		(169,970	)
C-Class		(32,664	)		(112,934	)
H-Class		(1,445,713	)		(6,238,907	)
Net decrease in shares		(126,178	)		(762,394	)

38 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	51.39		$	42.43		$	45.68		$	43.04		$	36.18		$	30.88
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.08	)		.16			.11			(.03	)		.07
Net gain (loss) on investments (realized and unrealized)		1.93			9.14			(3.30	)		2.58			7.08			5.23
Total from investment operations		1.92			9.06			(3.14	)		2.69			7.05			5.30
Less distributions from:
Net investment income		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Total distributions		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Net asset value, end of period	$	53.31		$	51.39		$	42.43		$	45.68		$	43.04		$	36.18
Total Returnc		3.74	%		21.34	%		(6.88	%)		6.25	%		19.49	%		17.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,348		$	2,957		$	4,775		$	1,904		$	2,357		$	1,571
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		(0.17	%)		0.39	%		0.26	%		(0.06	%)		0.23	%
Total expenses		1.55	%		1.53	%		1.50	%		1.51	%		1.52	%		1.51	%
Portfolio turnover rate		281	%		628	%		493	%		638	%		506	%		757	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	46.08		$	38.33		$	41.59		$	39.48		$	33.46		$	28.78
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.36	)		(.12	)		(.18	)		(.25	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		1.70			8.21			(3.03	)		2.34			6.46			4.81
Total from investment operations		1.54			7.85			(3.15	)		2.16			6.21			4.68
Less distributions from:
Net investment income		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Total distributions		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Net asset value, end of period	$	47.62		$	46.08		$	38.33		$	41.59		$	39.48		$	33.46
Total Returnc		3.34	%		20.46	%		(7.58	%)		5.47	%		18.57	%		16.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,939		$	3,266		$	2,165		$	3,033		$	2,207		$	3,413
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.85	%)		(0.30	%)		(0.44	%)		(0.71	%)		(0.45	%)
Total expenses		2.30	%		2.28	%		2.25	%		2.26	%		2.28	%		2.26	%
Portfolio turnover rate		281	%		628	%		493	%		638	%		506	%		757	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	51.33		$	42.38		$	45.62		$	42.98		$	36.16		$	30.86
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.07	)		.20			.11			.06			.08
Net gain (loss) on investments (realized and unrealized)		1.95			9.12			(3.33	)		2.58			6.95			5.22
Total from investment operations		1.91			9.05			(3.13	)		2.69			7.01			5.30
Less distributions from:
Net investment income		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Total distributions		—			(.10	)		(.11	)		(.05	)		(.19	)		—
Net asset value, end of period	$	53.24		$	51.33		$	42.38		$	45.62		$	42.98		$	36.16
Total Returnc		3.72	%		21.36	%		(6.86	%)		6.26	%		19.39	%		17.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,534		$	21,143		$	48,048		$	8,968		$	10,563		$	78,237
Ratios to average net assets:
Net investment income (loss)		(0.14	%)		(0.16	%)		0.47	%		0.25	%		0.15	%		0.24	%
Total expenses		1.55	%		1.53	%		1.51	%		1.51	%		1.52	%		1.52	%
Portfolio turnover rate		281	%		628	%		493	%		638	%		506	%		757	%

a	Unaudited figures for the period ended September 30, 2017. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
LendingTree, Inc.	2.4%
Installed Building Products, Inc.	1.9%
NutriSystem, Inc.	1.8%
OraSure Technologies, Inc.	1.8%
MKS Instruments, Inc.	1.7%
BioTelemetry, Inc.	1.6%
Supernus Pharmaceuticals, Inc.	1.5%
National Storage Affiliates Trust	1.3%
Mercury Systems, Inc.	1.3%
MiMedx Group, Inc.	1.3%
Top Ten Total	16.6%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	9.06%	22.11%	13.27%	8.19%
A-Class Shares with sales charge‡	3.88%	16.31%	12.18%	7.67%
C-Class Shares	8.63%	21.19%	12.43%	7.38%
C-Class Shares with CDSC§	7.63%	20.19%	12.43%	7.38%
H-Class Shares	9.04%	22.11%	13.27%	8.18%
S&P SmallCap 600 Pure Growth Index	9.96%	24.34%	15.40%	10.43%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 98.9%
Consumer, Non-cyclical - 29.7%
LendingTree, Inc.*,1		1,512	$	369,608
NutriSystem, Inc.		5,105		285,370
OraSure Technologies, Inc.*		12,148		273,331
BioTelemetry, Inc.*		7,323		241,659
Supernus Pharmaceuticals, Inc.*		5,975		238,999
MiMedx Group, Inc.*		16,998		201,936
Viad Corp.		3,275		199,448
Innoviva, Inc.*		12,930		182,571
Insperity, Inc.		1,543		135,784
Central Garden & Pet Co. — Class A*		3,526		131,132
AMN Healthcare Services, Inc.*		2,734		124,944
Progenics Pharmaceuticals, Inc.*		16,549		121,800
LeMaitre Vascular, Inc.		3,199		119,707
Lantheus Holdings, Inc.*		6,645		118,281
SciClone Pharmaceuticals, Inc.*		9,853		110,354
Heska Corp.*		1,208		106,413
Cytokinetics, Inc.*		7,146		103,617
Cross Country Healthcare, Inc.*		7,035		100,108
SpartanNash Co.		3,720		98,096
Cantel Medical Corp.		948		89,273
ANI Pharmaceuticals, Inc.*		1,677		88,026
Merit Medical Systems, Inc.*		1,935		81,947
Calavo Growers, Inc.		1,063		77,812
CryoLife, Inc.*		3,379		76,703
Ligand Pharmaceuticals, Inc. — Class B*		548		74,610
Enanta Pharmaceuticals, Inc.*		1,567		73,336
AMAG Pharmaceuticals, Inc.*		3,654		67,416
Luminex Corp.		3,209		65,239
Landauer, Inc.		874		58,820
B&G Foods, Inc.1		1,786		56,884
Sucampo Pharmaceuticals, Inc. — Class A*,1		4,586		54,115
Forrester Research, Inc.		1,213		50,764
Capella Education Co.		713		50,017
HMS Holdings Corp.*		2,429		48,240
Neogen Corp.*		606		46,941
Surmodics, Inc.*		1,509		46,779
Navigant Consulting, Inc.*		2,678		45,312
Momenta Pharmaceuticals, Inc.*		2,435		45,048
Central Garden & Pet Co.*		1,052		40,860
US Physical Therapy, Inc.		659		40,496
Cardtronics plc — Class A*		1,732		39,853
Eagle Pharmaceuticals, Inc.*,1		600		35,784
Total Consumer, Non-cyclical				4,617,433
Industrial - 18.9%
Trex Company, Inc.*		2,201		198,243
TopBuild Corp.*		2,910		189,644
CTS Corp.		7,470		180,027
Patrick Industries, Inc.*		2,024		170,218
Advanced Energy Industries, Inc.*		2,095		169,192
II-VI, Inc.*		3,813		156,905
Tetra Tech, Inc.		3,239		150,776
TTM Technologies, Inc.*		9,181		141,112
Orion Group Holdings, Inc.*		20,984		137,655
Griffon Corp.		5,488		121,834
Fabrinet*		3,058		113,328
John Bean Technologies Corp.		1,108		112,019
US Ecology, Inc.		2,039		109,698
Vicor Corp.*		4,628		109,221
Axon Enterprise, Inc.*,1		4,750		107,683
Lydall, Inc.*		1,669		95,634
Quanex Building Products Corp.1		4,110		94,325
Gibraltar Industries, Inc.*		2,532		78,872
PGT Innovations, Inc.*		5,199		77,725
Itron, Inc.*		897		69,473
MYR Group, Inc.*		2,305		67,168
ESCO Technologies, Inc.		1,118		67,024
AAON, Inc.		1,750		60,331
Insteel Industries, Inc.		2,032		53,056
Astec Industries, Inc.		879		49,233
Simpson Manufacturing Company, Inc.		976		47,863
Total Industrial				2,928,259
Financial - 16.8%
National Storage Affiliates Trust REIT		8,450		204,828
Four Corners Property Trust, Inc. REIT		7,218		179,873
Walker & Dunlop, Inc.*		2,574		134,696
First BanCorp*		24,716		126,546
BofI Holding, Inc.*,1		4,215		120,001
Piper Jaffray Cos.		1,870		110,985
Universal Insurance Holdings, Inc.		4,634		106,582
LegacyTexas Financial Group, Inc.		2,624		104,750
CareTrust REIT, Inc.		5,495		104,625
Meta Financial Group, Inc.		1,290		101,136
Summit Hotel Properties, Inc. REIT		6,231		99,634
National Bank Holdings Corp. — Class A		2,750		98,148
ServisFirst Bancshares, Inc.		2,403		93,357
Ameris Bancorp		1,921		92,208
WageWorks, Inc.*		1,450		88,015
Lexington Realty Trust REIT		8,138		83,170
Northfield Bancorp, Inc.		4,659		80,834
United Community Banks, Inc.		2,790		79,627
Getty Realty Corp. REIT		2,686		76,846
Evercore, Inc. — Class A		889		71,342
Customers Bancorp, Inc.*		2,036		66,414
Agree Realty Corp. REIT		1,241		60,908
Hanmi Financial Corp.		1,783		55,184
Central Pacific Financial Corp.		1,621		52,164
American Assets Trust, Inc. REIT		1,284		51,065
Southside Bancshares, Inc.		1,354		49,231
Tompkins Financial Corp.		478		41,175
First Financial Bankshares, Inc.		856		38,691
Urstadt Biddle Properties, Inc. — Class A REIT		1,572		34,112
Total Financial				2,606,147
Consumer, Cyclical - 14.2%
Installed Building Products, Inc.*		4,472		289,786
Five Below, Inc.*		3,165		173,695
Scientific Games Corp. — Class A*		3,281		150,434

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
LGI Homes, Inc.*		2,960	$	143,767
iRobot Corp.*		1,853		142,793
Ollie’s Bargain Outlet Holdings, Inc.*		3,016		139,942
Fox Factory Holding Corp.*		3,173		136,757
LCI Industries		1,104		127,898
Wingstop, Inc.1		3,807		126,583
Winnebago Industries, Inc.		2,184		97,734
Marcus Corp.		3,429		94,983
Dorman Products, Inc.*		1,274		91,244
Children’s Place, Inc.		662		78,215
Dave & Buster’s Entertainment, Inc.*		1,475		77,408
Hawaiian Holdings, Inc.*		1,803		67,703
Zumiez, Inc.*		3,414		61,793
Belmond Ltd. — Class A*		4,466		60,961
Universal Electronics, Inc.*		836		53,002
Tile Shop Holdings, Inc.		3,133		39,789
Chuy’s Holdings, Inc.*		1,054		22,187
Francesca’s Holdings Corp.*		2,329		17,141
Total Consumer, Cyclical				2,193,815
Technology - 10.9%
MKS Instruments, Inc.		2,737		258,509
Mercury Systems, Inc.*		3,895		202,072
Nanometrics, Inc.*		5,911		170,236
Qualys, Inc.*		2,791		144,574
Ebix, Inc.1		2,045		133,436
Omnicell, Inc.*		2,435		124,307
CEVA, Inc.*		2,631		112,607
MaxLinear, Inc. — Class A*		4,622		109,773
Lumentum Holdings, Inc.*		1,785		97,015
Rudolph Technologies, Inc.*		3,329		87,553
Xperi Corp.		2,813		71,169
Progress Software Corp.		1,498		57,179
Rambus, Inc.*		4,242		56,631
SPS Commerce, Inc.*		858		48,657
Synchronoss Technologies, Inc.*		2,170		20,246
Total Technology				1,693,964
Communications - 5.9%
TiVo Corp.		9,106		180,754
Gigamon, Inc.*		3,840		161,856
Stamps.com, Inc.*		625		126,656
Shutterfly, Inc.*		1,962		95,118
Oclaro, Inc.*,1		9,288		80,155
Shutterstock, Inc.*		2,186		72,772
Cogent Communications Holdings, Inc.		1,306		63,863
World Wrestling Entertainment, Inc. — Class A		2,686		63,255
8x8, Inc.*		2,907		39,245
NIC, Inc.		1,710		29,327
Total Communications				913,001
Basic Materials - 1.7%
Kraton Corp.*		3,592		145,260
Balchem Corp.		713		57,960
Quaker Chemical Corp.		378		55,925
Total Basic Materials				259,145
Utilities - 0.8%
South Jersey Industries, Inc.		1,996		68,922
California Water Service Group		1,275		48,641
Total Utilities				117,563
Total Common Stocks
(Cost $11,593,157)				15,329,327
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	39,409		39,409
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		19,704		19,704
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		9,798		9,798
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		8,952		8,952
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		939		939
Total Repurchase Agreements
(Cost $78,802)				78,802
	Shares
SECURITIES LENDING COLLATERAL†,3 - 5.0%
First American Government Obligations Fund — Class Z, 0.89%4		770,484		770,484
Total Securities Lending Collateral
(Cost $770,484)				770,484
Total Investments - 104.4%
(Cost $12,442,443)			$	16,178,613
Other Assets & Liabilities, net - (4.4)%				(681,979	)
Total Net Assets - 100.0%			$	15,496,634

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P SMALLCAP 600® PURE GROWTH 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	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	15,329,327	$	—	$	—	$	15,329,327
Repurchase Agreements		—		78,802		—		78,802
Securities Lending Collateral		770,484		—		—		770,484
Total Assets	$	16,099,811	$	78,802	$	—	$	16,178,613

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $753,001 of securities loaned (cost $12,363,641)	$	16,099,811
Repurchase agreements, at value (cost $78,802)		78,802
Receivables:
Fund shares sold		86,354
Securities sold		48,955
Dividends		9,818
Securities lending income		249
Interest		4
Total assets		16,323,993
Liabilities:
Payable for:
Return of securities loaned		770,484
Fund shares redeemed		35,331
Management fees		8,849
Distribution and service fees		4,117
Transfer agent and administrative fees		2,950
Portfolio accounting fees		1,180
Miscellaneous		4,448
Total liabilities		827,359
Commitments and contingent liabilities (Note 12)		—
Net assets	$	15,496,634
Net assets consist of:
Paid in capital	$	12,293,654
Accumulated net investment loss		(164,273	)
Accumulated net realized loss on investments		(368,917	)
Net unrealized appreciation on investments		3,736,170
Net assets	$	15,496,634
A-Class:
Net assets	$	1,864,412
Capital shares outstanding		26,068
Net asset value per share	$	71.52
Maximum offering price per share (Net asset value divided by 95.25%)	$	75.09
C-Class:
Net assets	$	1,969,387
Capital shares outstanding		30,449
Net asset value per share	$	64.68
H-Class:
Net assets	$	11,662,835
Capital shares outstanding		163,077
Net asset value per share	$	71.52

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	64,610
Interest		421
Income from securities lending, net		2,679
Total investment income		67,710
Expenses:
Management fees		71,699
Distribution and service fees:
A-Class		2,770
C-Class		10,082
H-Class		18,609
Transfer agent and administrative fees		23,900
Registration fees		12,865
Portfolio accounting fees		9,560
Trustees’ fees*		1,432
Custodian fees		1,327
Line of credit fees		36
Miscellaneous		3,005
Total expenses		155,285
Net investment loss		(87,575	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		799,042
Net realized gain		799,042
Net change in unrealized appreciation (depreciation) on:
Investments		(797,516	)
Net change in unrealized appreciation (depreciation)		(797,516	)
Net realized and unrealized gain		1,526
Net decrease in net assets resulting from operations	$	(86,049	)

* 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 | 45

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(87,575	)	$	(275,040	)
Net realized gain on investments		799,042			4,960,010
Net change in unrealized appreciation (depreciation) on investments		(797,516	)		808,620
Net increase (decrease) in net assets resulting from operations		(86,049	)		5,493,590
Capital share transactions:
Proceeds from sale of shares
A-Class		6,760,167			10,600,986
C-Class		73,604			2,703,118
H-Class		63,832,292			288,735,660
Cost of shares redeemed
A-Class		(7,441,825	)		(10,942,756	)
C-Class		(1,294,758	)		(2,795,500	)
H-Class		(83,677,188	)		(286,503,580	)
Net increase (decrease) from capital share transactions		(21,747,708	)		1,797,928
Net increase (decrease) in net assets		(21,833,757	)		7,291,518
Net assets:
Beginning of period		37,330,391			30,038,873
End of period	$	15,496,634		$	37,330,391
Accumulated net investment loss at end of period	$	(164,273	)	$	(76,698	)
Capital share activity:
Shares sold
A-Class		100,489			179,803
C-Class		1,205			49,846
H-Class		955,007			5,017,807
Shares redeemed
A-Class		(112,942	)		(188,156	)
C-Class		(22,045	)		(51,716	)
H-Class		(1,276,043	)		(5,012,877	)
Net decrease in shares		(354,329	)		(5,293	)

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	65.58		$	52.28		$	58.90		$	52.99		$	41.94		$	37.97
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.41	)		(.20	)		(.46	)		(.31	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		6.22			13.71			(6.42	)		6.37			11.36			4.09
Total from investment operations		5.94			13.30			(6.62	)		5.91			11.05			3.97
Net asset value, end of period	$	71.52		$	65.58		$	52.28		$	58.90		$	52.99		$	41.94
Total Returnc		9.06	%		25.44	%		(11.24	%)		11.15	%		26.35	%		10.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,864		$	2,526		$	2,451		$	2,825		$	7,265		$	995
Ratios to average net assets:
Net investment income (loss)		(0.82	%)		(0.71	%)		(0.36	%)		(0.88	%)		(0.60	%)		(0.31	%)
Total expenses		1.55	%		1.52	%		1.50	%		1.51	%		1.53	%		1.51	%
Portfolio turnover rate		312	%		818	%		309	%		380	%		677	%		645	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	59.55		$	47.82		$	54.28		$	49.21		$	39.24		$	35.79
Income (loss) from investment operations:
Net investment income (loss)b		(.48	)		(.79	)		(.62	)		(.74	)		(.66	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		5.61			12.52			(5.84	)		5.81			10.63			3.87
Total from investment operations		5.13			11.73			(6.46	)		5.07			9.97			3.45
Net asset value, end of period	$	64.68		$	59.55		$	47.82		$	54.28		$	49.21		$	39.24
Total Returnc		8.63	%		24.51	%		(11.90	%)		10.30	%		25.41	%		9.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,969		$	3,054		$	2,542		$	5,436		$	4,268		$	3,122
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.48	%)		(1.19	%)		(1.50	%)		(1.46	%)		(1.17	%)
Total expenses		2.30	%		2.28	%		2.25	%		2.25	%		2.28	%		2.26	%
Portfolio turnover rate		312	%		818	%		309	%		380	%		677	%		645	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	65.58		$	52.27		$	58.89		$	52.99		$	41.94		$	37.97
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.44	)		(.28	)		(.31	)		(.38	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		6.22			13.75			(6.34	)		6.21			11.43			4.28
Total from investment operations		5.94			13.31			(6.62	)		5.90			11.05			3.97
Net asset value, end of period	$	71.52		$	65.58		$	52.27		$	58.89		$	52.99		$	41.94
Total Returnc		9.04	%		25.46	%		(11.24	%)		11.13	%		26.35	%		10.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,663		$	31,750		$	25,046		$	50,810		$	16,996		$	5,844
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(0.75	%)		(0.49	%)		(0.58	%)		(0.77	%)		(0.81	%)
Total expenses		1.55	%		1.53	%		1.50	%		1.49	%		1.52	%		1.50	%
Portfolio turnover rate		312	%		818	%		309	%		380	%		677	%		645	%

a	Unaudited figures for the period ended September 30, 2017. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Comtech Telecommunications Corp.	1.6%
Exterran Corp.	1.6%
Kelly Services, Inc. — Class A	1.6%
Select Medical Holdings Corp.	1.4%
M/I Homes, Inc.	1.3%
Diplomat Pharmacy, Inc.	1.3%
Invacare Corp.	1.3%
RH	1.3%
Boise Cascade Co.	1.3%
Meritage Homes Corp.	1.3%
Top Ten Total	14.0%

“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	1.39%	10.13%	10.04%	4.40%
A-Class Shares with sales charge‡	(3.43%)	4.90%	8.98%	3.90%
C-Class Shares	1.01%	9.32%	9.22%	3.59%
C-Class Shares with CDSC§	0.01%	8.32%	9.22%	3.59%
H-Class Shares	1.59%	10.42%	10.08%	4.40%
S&P SmallCap 600 Pure Value Index	2.70%	12.70%	12.33%	7.71%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 49

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Cyclical - 30.2%
M/I Homes, Inc.*		7,833	$	209,376
RH*,1		2,953		207,654
Meritage Homes Corp.*		4,449		197,536
ScanSource, Inc.*		4,311		188,175
Wabash National Corp.		8,170		186,439
MDC Holdings, Inc.		5,377		178,570
Abercrombie & Fitch Co. — Class A		12,175		175,807
SkyWest, Inc.		3,452		151,543
Regis Corp.*		10,269		146,539
Guess?, Inc.		8,261		140,685
Sonic Automotive, Inc. — Class A		6,736		137,414
Lithia Motors, Inc. — Class A		1,088		130,897
G-III Apparel Group Ltd.*		4,103		119,069
Group 1 Automotive, Inc.		1,637		118,617
American Axle & Manufacturing Holdings, Inc.*		6,660		117,083
Haverty Furniture Companies, Inc.		4,390		114,799
Anixter International, Inc.*		1,346		114,410
Essendant, Inc.		8,480		111,682
Red Robin Gourmet Burgers, Inc.*		1,656		110,952
Perry Ellis International, Inc.*		4,651		110,043
Barnes & Noble Education, Inc.*		16,828		109,550
Cooper-Standard Holdings, Inc.*		896		103,909
Shoe Carnival, Inc.1		4,298		96,189
Penn National Gaming, Inc.*		4,082		95,478
Veritiv Corp.*		2,932		95,290
MarineMax, Inc.*		5,700		94,335
Kirkland’s, Inc.*		7,629		87,199
Asbury Automotive Group, Inc.*		1,300		79,430
Fred’s, Inc. — Class A1		11,872		76,456
Barnes & Noble, Inc.		9,239		70,216
Express, Inc.*		10,270		69,425
EZCORP, Inc. — Class A*		7,259		68,961
Core-Mark Holding Company, Inc.		2,139		68,747
Caleres, Inc.		2,181		66,564
Fossil Group, Inc.*,1		6,855		63,957
Ascena Retail Group, Inc.*		25,200		61,740
Unifi, Inc.*		1,689		60,179
Crocs, Inc.*,1		5,490		53,253
Genesco, Inc.*		1,996		53,094
Movado Group, Inc.		1,818		50,904
J.C. Penney Company, Inc.*		12,460		47,473
Finish Line, Inc. — Class A1		3,751		45,125
Big 5 Sporting Goods Corp.1		5,852		44,768
Superior Industries International, Inc.		2,275		37,879
Ruby Tuesday, Inc.*		17,037		36,459
Vitamin Shoppe, Inc.*		5,601		29,965
Cato Corp. — Class A1		1,790		23,682
Total Consumer, Cyclical				4,757,517
Consumer, Non-cyclical - 19.1%
Kelly Services, Inc. — Class A		9,916		248,792
Select Medical Holdings Corp.*		11,613		222,970
Diplomat Pharmacy, Inc.*		10,100		209,171
Invacare Corp.		13,247		208,640
Seneca Foods Corp. — Class A*		5,331		183,919
PharMerica Corp.*		5,937		173,954
Integer Holdings Corp.*		3,000		153,450
Darling Ingredients, Inc.*		8,648		151,513
Universal Corp.		2,468		141,416
Almost Family, Inc.*		2,305		123,779
TrueBlue, Inc.*		5,023		112,766
Providence Service Corp.*		2,058		111,297
Myriad Genetics, Inc.*		2,910		105,284
LSC Communications, Inc.		6,121		101,058
Andersons, Inc.		2,723		93,263
Community Health Systems, Inc.*		10,487		80,540
FTI Consulting, Inc.*		2,110		74,863
Heidrick & Struggles International, Inc.		3,477		73,539
Korn/Ferry International		1,830		72,157
RR Donnelley & Sons Co.		6,929		71,369
LHC Group, Inc.*		957		67,870
Kindred Healthcare, Inc.		8,390		57,052
Quorum Health Corp.*		9,674		50,111
American Public Education, Inc.*		2,113		44,479
SUPERVALU, Inc.*		1,841		40,042
Resources Connection, Inc.		2,256		31,358
Total Consumer, Non-cyclical				3,004,652
Industrial - 14.9%
Boise Cascade Co.*		5,680		198,232
Greenbrier Companies, Inc.		3,992		192,215
Roadrunner Transportation Systems, Inc.*		18,789		179,058
Benchmark Electronics, Inc.*		4,826		164,809
Sanmina Corp.*		4,263		158,370
Atlas Air Worldwide Holdings, Inc.*		2,336		153,709
ArcBest Corp.		4,524		151,328
Electro Scientific Industries, Inc.*		10,585		147,343
Olympic Steel, Inc.		5,935		130,570
Briggs & Stratton Corp.		4,216		99,076
Hub Group, Inc. — Class A*		2,291		98,398
Echo Global Logistics, Inc.*		3,708		69,896
AAR Corp.		1,849		69,856
Plexus Corp.*		1,189		66,679
General Cable Corp.		3,059		57,663
Aegion Corp. — Class A*		2,462		57,315
LSB Industries, Inc.*		7,078		56,199
DXP Enterprises, Inc.*		1,769		55,706
TimkenSteel Corp.*		3,350		55,275
KapStone Paper and Packaging Corp.		2,363		50,781
Encore Wire Corp.		1,089		48,760
Kaman Corp.		794		44,289
Powell Industries, Inc.		1,458		43,725
Total Industrial				2,349,252
Financial - 13.9%
Encore Capital Group, Inc.*		4,149		183,801
United Insurance Holdings Corp.		9,421		153,561
American Equity Investment Life Holding Co.		5,279		153,512
International. FCStone, Inc.*		3,179		121,819

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
World Acceptance Corp.*		1,415	$	117,289
Banc of California, Inc.1		5,442		112,922
Third Point Reinsurance Ltd.*		7,090		110,604
Enova International, Inc.*		7,479		100,593
Infinity Property & Casualty Corp.		1,058		99,664
Maiden Holdings Ltd.		11,326		90,042
HCI Group, Inc.		1,946		74,435
United Fire Group, Inc.		1,622		74,320
Stewart Information Services Corp.		1,871		70,649
Selective Insurance Group, Inc.		1,306		70,328
Employers Holdings, Inc.		1,410		64,085
Investment Technology Group, Inc.		2,832		62,700
Horace Mann Educators Corp.		1,566		61,622
Capstead Mortgage Corp. REIT		6,329		61,075
Opus Bank*		2,477		59,448
HomeStreet, Inc.*		2,150		58,050
Navigators Group, Inc.		970		56,600
OFG Bancorp		5,594		51,185
Chesapeake Lodging Trust REIT		1,800		48,546
Waddell & Reed Financial, Inc. — Class A		2,313		46,422
Safety Insurance Group, Inc.		530		40,439
ARMOUR Residential REIT, Inc.		1,430		38,467
Total Financial				2,182,178
Energy - 7.3%
Exterran Corp.*		7,946		251,172
Noble Corporation plc*		37,106		170,688
Atwood Oceanics, Inc.*,1		13,872		130,258
Gulf Island Fabrication, Inc.		9,716		123,393
Green Plains, Inc.		5,212		105,022
Matrix Service Co.*		5,973		90,790
Era Group, Inc.*		7,615		85,212
Bristow Group, Inc.1		6,931		64,805
SolarEdge Technologies, Inc.*		2,102		60,012
SunCoke Energy, Inc.*		3,650		33,361
Cloud Peak Energy, Inc.*		7,655		28,017
Total Energy				1,142,730
Communications - 7.0%
Comtech Telecommunications Corp.		12,331		253,155
QuinStreet, Inc.*		25,535		187,683
Gannett Company, Inc.		18,338		165,042
New Media Investment Group, Inc.		9,290		137,399
Time, Inc.		9,617		129,830
Iridium Communications, Inc.*,1		6,870		70,761
Scholastic Corp.		1,757		65,360
Spok Holdings, Inc.		3,020		46,357
FTD Companies, Inc.*		2,906		37,894
Black Box Corp.		3,151		10,241
Total Communications				1,103,722
Basic Materials - 3.7%
AdvanSix, Inc.*		4,772		189,687
Century Aluminum Co.*		9,053		150,099
PH Glatfelter Co.		4,512		87,758
Materion Corp.		1,467		63,301
Clearwater Paper Corp.*		919		45,261
Rayonier Advanced Materials, Inc.		3,120		42,744
Total Basic Materials				578,850
Technology - 3.4%
Insight Enterprises, Inc.*		3,646		167,425
Virtusa Corp.*		2,610		98,606
Cohu, Inc.		2,850		67,944
Sykes Enterprises, Inc.*		2,020		58,903
ManTech International Corp. — Class A		1,320		58,278
CACI International, Inc. — Class A*		355		49,469
Digi International, Inc.*		3,780		40,068
Total Technology				540,693
Total Common Stocks
(Cost $14,249,617)				15,659,594
	Face Amount
REPURCHASE AGREEMENTS††,2 - 2.4%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	190,860		190,860
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		95,431		95,431
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		47,453		47,453
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		43,358		43,358
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		4,547		4,547
Total Repurchase Agreements
(Cost $381,649)				381,649
	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.4%
First American Government Obligations Fund — Class Z, 0.89%4		536,523		536,523
Total Securities Lending Collateral
(Cost $536,523)				536,523
Total Investments - 105.3%
(Cost $15,167,789)			$	16,577,766
Other Assets & Liabilities, net - (5.3)%				(840,712	)
Total Net Assets - 100.0%			$	15,737,054

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
S&P SMALLCAP 600® PURE VALUE 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	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7 day yield as of September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	15,659,594	$	—	$	—	$	15,659,594
Repurchase Agreements		—		381,649		—		381,649
Securities Lending Collateral		536,523		—		—		536,523
Total Assets	$	16,196,117	$	381,649	$	—	$	16,577,766

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $521,267 of securities loaned (cost $14,786,139)	$	16,196,117
Repurchase agreements, at value (cost $381,649)		381,649
Cash		30,162
Receivables:
Securities sold		195,504
Fund shares sold		9,689
Dividends		6,615
Securities lending income		629
Interest		21
Total assets		16,820,386
Liabilities:
Payable for:
Return of securities loaned		536,522
Securities purchased		278,866
Fund shares redeemed		259,885
Management fees		4,506
Distribution and service fees		2,232
Transfer agent and administrative fees		1,502
Portfolio accounting fees		601
Miscellaneous		(782	)
Total liabilities		1,083,332
Commitments and contingent liabilities (Note 12)		—
Net assets	$	15,737,054
Net assets consist of:
Paid in capital	$	40,847,405
Accumulated net investment loss		(78,699	)
Accumulated net realized loss on investments		(26,441,629	)
Net unrealized appreciation on investments		1,409,977
Net assets	$	15,737,054
A-Class:
Net assets	$	1,699,339
Capital shares outstanding		61,514
Net asset value per share	$	27.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.01
C-Class:
Net assets	$	1,268,296
Capital shares outstanding		53,026
Net asset value per share	$	23.92
H-Class:
Net assets	$	12,769,419
Capital shares outstanding		463,279
Net asset value per share	$	27.56

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $53)	$	87,399
Interest		283
Income from securities lending, net		6,012
Total investment income		93,694
Expenses:
Management fees		52,605
Distribution and service fees:
A-Class		987
C-Class		6,453
H-Class		14,935
Transfer agent and administrative fees		17,535
Registration fees		10,858
Portfolio accounting fees		7,014
Trustees’ fees*		1,487
Custodian fees		1,011
Line of credit fees		118
Miscellaneous		337
Total expenses		113,340
Net investment loss		(19,646	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,877,590
Net realized gain		1,877,590
Net change in unrealized appreciation (depreciation) on:
Investments		(2,676,587	)
Net change in unrealized appreciation (depreciation)		(2,676,587	)
Net realized and unrealized loss		(798,997	)
Net decrease in net assets resulting from operations	$	(818,643	)

* 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 | 53

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(19,646	)	$	(186,768	)
Net realized gain on investments		1,877,590			1,534,523
Net change in unrealized appreciation (depreciation) on investments		(2,676,587	)		132,291
Net increase (decrease) in net assets resulting from operations		(818,643	)		1,480,046
Capital share transactions:
Proceeds from sale of shares
A-Class		2,135,603			11,499,336
C-Class		42,759			4,241,862
H-Class		203,736,294			493,896,036
Cost of shares redeemed
A-Class		(2,123,185	)		(11,116,920	)
C-Class		(542,267	)		(4,531,766	)
H-Class		(209,972,201	)		(493,220,325	)
Net increase (decrease) from capital share transactions		(6,722,997	)		768,223
Net increase (decrease) in net assets		(7,541,640	)		2,248,269
Net assets:
Beginning of period		23,278,694			21,030,425
End of period	$	15,737,054		$	23,278,694
Accumulated net investment loss at end of period	$	(78,699	)	$	(59,053	)
Capital share activity:
Shares sold
A-Class		79,287			417,739
C-Class		1,852			181,220
H-Class		7,967,622			19,425,410
Shares redeemed
A-Class		(80,890	)		(402,677	)
C-Class		(23,895	)		(197,201	)
H-Class		(8,233,501	)		(19,479,582	)
Net decrease in shares		(289,525	)		(55,091	)

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	27.24		$	23.16		$	25.81		$	25.66		$	19.55		$	17.07
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.14	)		(.10	)		(.03	)		(.09	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		.43			4.22			(2.55	)		.18			6.20			2.49
Total from investment operations		.39			4.08			(2.65	)		.15			6.11			2.48
Net asset value, end of period	$	27.63		$	27.24		$	23.16		$	25.81		$	25.66		$	19.55
Total Returnc		1.39	%		17.62	%		(10.27	%)		0.58	%		31.25	%		14.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,699		$	1,720		$	1,113		$	1,592		$	1,016		$	1,551
Ratios to average net assets:
Net investment income (loss)		(0.28	%)		(0.50	%)		(0.42	%)		(0.10	%)		(0.39	%)		(0.08	%)
Total expenses		1.55	%		1.53	%		1.50	%		1.50	%		1.52	%		1.51	%
Portfolio turnover rate		1,488	%		1,449	%		417	%		579	%		658	%		655	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	23.68		$	20.28		$	22.78		$	22.81		$	17.51		$	15.40
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.28	)		(.24	)		(.19	)		(.22	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		.35			3.68			(2.26	)		.16			5.52			2.24
Total from investment operations		.24			3.40			(2.50	)		(.03	)		5.30			2.11
Net asset value, end of period	$	23.92		$	23.68		$	20.28		$	22.78		$	22.81		$	17.51
Total Returnc		1.01	%		16.77	%		(10.97	%)		(0.13	%)		30.27	%		13.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,268		$	1,778		$	1,847		$	3,082		$	4,514		$	3,932
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(1.26	%)		(1.17	%)		(0.84	%)		(1.10	%)		(0.84	%)
Total expenses		2.30	%		2.28	%		2.25	%		2.25	%		2.27	%		2.26	%
Portfolio turnover rate		1,488	%		1,449	%		417	%		579	%		658	%		655	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	27.13		$	23.07		$	25.71		$	25.55		$	19.47		$	17.00
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.12	)		(.07	)		(.01	)		(.06	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		.46			4.18			(2.57	)		.17			6.14			2.53
Total from investment operations		.43			4.06			(2.64	)		.16			6.08			2.47
Net asset value, end of period	$	27.56		$	27.13		$	23.07		$	25.71		$	25.55		$	19.47
Total Returnc		1.59	%		17.60	%		(10.27	%)		0.63	%		31.23	%		14.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,769		$	19,782		$	18,071		$	11,374		$	22,380		$	30,743
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.47	%)		(0.32	%)		(0.03	%)		(0.25	%)		(0.32	%)
Total expenses		1.55	%		1.53	%		1.50	%		1.50	%		1.53	%		1.51	%
Portfolio turnover rate		1,488	%		1,449	%		417	%		579	%		658	%		655	%

a	Unaudited figures for the period ended September 30, 2017. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	11.9%
Guggenheim Strategy Fund I	10.1%
Nestle S.A. ADR	4.2%
Novartis AG ADR	3.4%
HSBC Holdings plc ADR	3.2%
Roche Holding AG ADR	2.9%
British American Tobacco plc ADR	2.3%
Royal Dutch Shell plc — Class A ADR	2.2%
Total S.A. ADR	2.1%
BP plc ADR	2.0%
Top Ten Total	44.3%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	15.04%	23.50%	5.41%	(4.54%)
A-Class Shares with sales charge‡	9.57%	17.67%	4.38%	(5.00%)
C-Class Shares	14.62%	22.57%	4.41%	(5.33%)
C-Class Shares with CDSC§	13.62%	21.57%	4.41%	(5.33%)
H-Class Shares	15.08%	23.96%	5.22%	(4.61%)
STOXX Europe 50 Index	12.97%	21.28%	6.41%	(0.28%)

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 57

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 70.1%
Consumer, Non-cyclical - 28.5%
Nestle S.A. ADR		7,303	$	613,524
Novartis AG ADR		5,891		505,742
Roche Holding AG ADR		13,250		424,000
British American Tobacco plc ADR		5,492		342,976
Sanofi ADR		5,410		269,364
Bayer AG ADR		7,747		265,102
GlaxoSmithKline plc ADR		5,707		231,704
Unilever N.V. — Class Y		3,688		217,740
Anheuser-Busch InBev S.A. ADR		1,752		209,013
Novo Nordisk A/S ADR		4,191		201,797
AstraZeneca plc ADR		5,891		199,587
Diageo plc ADR		1,475		194,892
Unilever plc ADR		3,073		178,111
Reckitt Benckiser Group plc ADR		7,737		143,986
L’Oreal S.A. ADR		2,868		121,947
Imperial Brands plc ADR		2,149		92,987
Total Consumer, Non-cyclical				4,212,472
Financial - 16.4%
HSBC Holdings plc ADR		9,509		469,839
Banco Santander S.A. ADR		37,556		260,639
Allianz SE ADR		10,544		236,081
BNP Paribas S.A. ADR		5,356		216,543
ING Groep N.V. ADR1		9,110		167,806
Lloyds Banking Group plc ADR		42,515		155,605
UBS Group AG*		9,008		154,487
AXA S.A. ADR		4,877		146,895
Prudential plc ADR		3,032		145,263
Banco Bilbao Vizcaya Argentaria S.A. ADR		15,626		139,384
Intesa Sanpaolo SpA ADR		5,594		119,018
Zurich Insurance Group AG ADR		3,562		109,006
Barclays plc ADR		9,427		97,569
Total Financial				2,418,135
Energy - 7.0%
Royal Dutch Shell plc — Class A ADR		5,298		320,953
Total S.A. ADR		5,872		314,269
BP plc ADR		7,716		296,526
Eni SpA ADR		2,961		97,920
Total Energy				1,029,668
Industrial - 5.2%
Siemens AG ADR		3,976		281,302
Airbus SE ADR		5,573		132,024
Vinci S.A. ADR		5,246		124,488
ABB Ltd. ADR		4,785		118,429
Schneider Electric SE ADR		6,538		113,696
Total Industrial				769,939
Basic Materials - 4.1%
BASF SE ADR		2,131		226,952
Glencore plc ADR*		14,252		130,263
Rio Tinto plc ADR		2,746		129,584
Air Liquide S.A. ADR		4,549		121,367
Total Basic Materials				608,166
Communications - 2.9%
Vodafone Group plc ADR		6,147		174,943
Deutsche Telekom AG ADR		7,625		142,283
Telefonica S.A. ADR		10,463		112,896
Total Communications				430,122
Technology - 2.8%
SAP SE ADR		2,346		257,239
ASML Holding N.V. — Class G		891		152,539
Total Technology				409,778
Consumer, Cyclical - 2.5%
Daimler AG ADR		2,359		188,171
LVMH Moet Hennessy Louis Vuitton SE ADR		3,204		177,213
Total Consumer, Cyclical				365,384
Utilities - 0.7%
National Grid plc ADR		1,618		101,465
Total Common Stocks
(Cost $9,525,378)				10,345,129
MUTUAL FUNDS† - 22.0%
Guggenheim Strategy Fund II2		70,146		1,757,855
Guggenheim Strategy Fund I2		59,201		1,486,527
Total Mutual Funds
(Cost $3,230,842)				3,244,382
	Face Amount
U.S. TREASURY BILLS†† - 5.1%
U.S. Treasury Bill
1.03% due 12/14/173,4,5	$	750,000		748,544
Total U.S. Treasury Bills
(Cost $748,404)				748,544
REPURCHASE AGREEMENTS††,6 - 5.9%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		435,644		435,644
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		217,822		217,822
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		108,311		108,311
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		98,964		98,964
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		10,379		10,379
Total Repurchase Agreements
(Cost $871,120)				871,120

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EUROPE 1.25x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,7 - 0.0%
First American Government Obligations Fund — Class Z, 0.89%8		4,294	$	4,294
Total Securities Lending Collateral
(Cost $4,294)				4,294
Total Investments - 103.1%
(Cost $14,380,038)			$	15,213,469
Other Assets & Liabilities, net - (3.1)%				(451,278	)
Total Net Assets - 100.0%			$	14,762,191

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Gain (Loss)
Equity Futures Contracts Purchased††
STOXX 50 Index Futures Contracts		223	Dec 2017	$	8,323,295	$	165,367
Currency Futures Contracts Purchased†
Euro FX Futures Contracts		57	Dec 2017		8,455,950		(51,868	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Affiliated issuer — See Note 5.
3	All or a portion of this security is pledged as futures collateral at September 30, 2017.
4	Rate indicated is the effective yield at the time of purchase.
5	Zero coupon rate security.
6	Repurchase Agreements — See Note 6.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

COUNTRY DIVERSIFICATION

Country	% of Long-Term Investments
United Kingdom	31.7%
Switzerland	19.9%
France	16.8%
Germany	15.4%
Netherlands	5.2%
Spain	5.0%
Italy	2.1%
Other	3.9%
Total Long-Term Investments	100.0%

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
EUROPE 1.25x STRATEGY FUND

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	10,345,129	$	—	$	—	$	—	$	—	$	10,345,129
Equity Futures Contracts		—		—		—		165,367		—		165,367
Mutual Funds		3,244,382		—		—		—		—		3,244,382
Repurchase Agreements		—		—		871,120		—		—		871,120
Securities Lending Collateral		4,294		—		—		—		—		4,294
U.S. Treasury Bills		—		—		748,544		—		—		748,544
Total Assets	$	13,593,805	$	—	$	1,619,664	$	165,367	$	—	$	15,378,836

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts	$	—	$	51,868	$	—	$	—	$	—	$	51,868

* Other financial instruments include futures contracts, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, 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/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	732,497	$	1,050,000	$	(300,000	)	$	478	$	3,552	$	1,486,527		59,201	$	14,359
Guggenheim Strategy Fund II		903,646		850,000		—			—		4,209		1,757,855		70,146		18,378
	$	1,636,143	$	1,900,000	$	(300,000	)	$	478	$	7,761	$	3,244,382			$	32,737

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $4,218 of securities loaned (cost $10,278,076)	$	11,097,967
Investments in affiliated issuers, at value (cost $3,230,842)		3,244,382
Repurchase agreements, at value (cost $871,120)		871,120
Foreign currency, at value (cost $119,234)		119,643
Receivables:
Securities sold		92,265
Variation margin		61,114
Fund shares sold		37,053
Dividends		28,368
Foreign taxes reclaim		25,389
Securities lending income		719
Swap settlement		535
Interest		48
Total assets		15,578,603
Liabilities:
Segregated cash due to broker		119,304
Payable for:
Fund shares redeemed		649,610
Management fees		12,276
Distribution and service fees		4,564
Return of securities loaned		4,294
Transfer agent and administrative fees		3,410
Portfolio accounting fees		1,364
Miscellaneous		21,590
Total liabilities		816,412
Commitments and contingent liabilities (Note 12)		—
Net assets	$	14,762,191
Net assets consist of:
Paid in capital	$	15,400,404
Undistributed net investment income		153,234
Accumulated net realized loss on investments		(1,738,786	)
Net unrealized appreciation on investments		947,339
Net assets	$	14,762,191
A-Class:
Net assets	$	1,002,458
Capital shares outstanding		10,254
Net asset value per share	$	97.76
Maximum offering price per share (Net asset value divided by 95.25%)	$	102.64
C-Class:
Net assets	$	1,934,764
Capital shares outstanding		22,791
Net asset value per share	$	84.89
H-Class:
Net assets	$	11,824,969
Capital shares outstanding		121,796
Net asset value per share	$	97.09

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $11,514)	$	243,228
Dividends from securities of affiliated issuers		32,737
Interest		20,837
Income from securities lending, net		9,332
Total investment income		306,134
Expenses:
Management fees		89,350
Distribution and service fees:
A-Class		3,049
C-Class		8,752
H-Class		19,582
Transfer agent and administrative fees		24,819
Portfolio accounting fees		9,928
Custodian fees		1,348
Trustees’ fees*		506
Line of credit fees		17
Miscellaneous		19,681
Total expenses		177,032
Net investment income		129,102
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		218,148
Investments in affiliated issuers		478
Futures contracts		1,684,886
Foreign currency transactions		9,543
Net realized gain		1,913,055
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		693,488
Investments in affiliated issuers		7,761
Futures contracts		84,698
Foreign currency translations		520
Net change in unrealized appreciation (depreciation)		786,467
Net realized and unrealized gain		2,699,522
Net increase in net assets resulting from operations	$	2,828,624

* 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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	129,102		$	35,331
Net realized gain on investments		1,913,055			3,236,907
Net change in unrealized appreciation (depreciation) on investments		786,467			(108,227	)
Net increase in net assets resulting from operations		2,828,624			3,164,011
Distributions to shareholders from:
Net investment income
A-Class		—			(3,592	)
C-Class		—			(2,755	)
H-Class		—			(29,013	)
Total distributions to shareholders		—			(35,360	)
Capital share transactions:
Proceeds from sale of shares
A-Class		4,859,523			1,224,419
C-Class		1,889,453			1,340,603
H-Class		118,048,099			182,443,083
Distributions reinvested
A-Class		—			2,826
C-Class		—			2,507
H-Class		—			28,695
Cost of shares redeemed
A-Class		(4,622,009	)		(1,660,138	)
C-Class		(1,026,080	)		(969,457	)
H-Class		(114,911,756	)		(183,677,062	)
Net increase (decrease) from capital share transactions		4,237,230			(1,264,524	)
Net increase in net assets		7,065,854			1,864,127
Net assets:
Beginning of period		7,696,337			5,832,210
End of period	$	14,762,191		$	7,696,337
Undistributed net investment income at end of period	$	153,234		$	24,132
Capital share activity:
Shares sold
A-Class		54,511			14,952	*
C-Class		24,146			18,798	*
H-Class		1,325,128			2,397,923	*
Shares issued from reinvestment of distributions
A-Class		—			39	*
C-Class		—			39	*
H-Class		—			398	*
Shares redeemed
A-Class		(49,162	)		(21,083	)*
C-Class		(12,696	)		(13,915	)*
H-Class		(1,279,650	)		(2,380,582	)*
Net increase in shares		62,277			16,569	*

* Capital share activity for the period presented through March 31, 2017 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

62 | 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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	84.99		$	78.10		$	93.32		$	104.40		$	84.97		$	75.39
Income (loss) from investment operations:
Net investment income (loss)b		.49			1.08			(.06	)		.30			.96			(.18	)
Net gain (loss) on investments (realized and unrealized)		12.28			6.51			(14.44	)		(11.08	)		18.47			9.94
Total from investment operations		12.77			7.59			(14.50	)		(10.78	)		19.43			9.76
Less distributions from:
Net investment income		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Total distributions		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Net asset value, end of period	$	97.76		$	84.99		$	78.10		$	93.32		$	104.40		$	84.97
Total Returnc		15.04	%		9.83	%		(15.58	%)		(10.33	%)		22.88	%		12.92	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,002		$	417		$	859		$	1,165		$	2,551		$	3,916
Ratios to average net assets:
Net investment income (loss)		1.06	%		1.35	%		(0.08	%)		0.33	%		1.00	%		(0.23	%)
Total expensesd		1.72	%		1.72	%		1.67	%		1.72	%		1.72	%		1.67	%
Portfolio turnover rate		230	%		1,616	%		920	%		608	%		654	%		903	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	74.07		$	68.62		$	82.63		$	93.15		$	77.34		$	69.15
Income (loss) from investment operations:
Net investment income (loss)b		.06			.35			(.54	)		(.48	)		(.42	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		10.76			5.80			(12.75	)		(9.74	)		16.23			8.97
Total from investment operations		10.82			6.15			(13.29	)		(10.22	)		15.81			8.37
Less distributions from:
Net investment income		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Total distributions		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Net asset value, end of period	$	84.89		$	74.07		$	68.62		$	82.63		$	93.15		$	77.34
Total Returnc		14.62	%		9.09	%		(16.14	%)		(10.94	%)		20.40	%		12.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,935		$	840		$	440		$	1,023		$	535		$	402
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.50	%		(0.64	%)		(0.50	%)		(0.48	%)		(0.83	%)
Total expensesd		2.47	%		2.49	%		2.42	%		2.48	%		2.47	%		2.42	%
Portfolio turnover rate		230	%		1,616	%		920	%		608	%		654	%		903	%

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

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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data										��
Net asset value, beginning of period	$	84.38		$	77.38		$	92.50		$	103.56		$	85.18		$	75.52
Income (loss) from investment operations:
Net investment income (loss)b		.67			.46			.18			.60			.18			(.12	)
Net gain (loss) on investments (realized and unrealized)		12.04			7.24			(14.58	)		(11.36	)		18.20			9.96
Total from investment operations		12.71			7.70			(14.40	)		(10.76	)		18.38			9.84
Less distributions from:
Net investment income		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Total distributions		—			(.70	)		(.72	)		(.30	)		—			(.18	)
Net asset value, end of period	$	97.09		$	84.38		$	77.38		$	92.50		$	103.56		$	85.18
Total Returnc		15.08	%		10.06	%		(15.64	%)		(10.36	%)		21.55	%		13.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,825		$	6,439		$	4,533		$	9,719		$	11,553		$	10,752
Ratios to average net assets:
Net investment income (loss)		1.47	%		0.59	%		0.19	%		0.62	%		0.19	%		(0.18	%)
Total expensesd		1.72	%		1.73	%		1.66	%		1.72	%		1.71	%		1.67	%
Portfolio turnover rate		230	%		1,616	%		920	%		608	%		654	%		903	%

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	27.5%
Guggenheim Strategy Fund II	18.4%
Total	45.9%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	Since Inception (02/22/08)
A-Class Shares	12.78%	21.77%	17.10%	1.50%
A-Class Shares with sales charge‡	7.42%	15.99%	15.97%	0.99%
C-Class Shares	12.35%	20.81%	16.37%	0.81%
C-Class Shares with CDSC§	11.35%	19.81%	16.37%	0.81%
H-Class Shares	12.80%	22.16%	17.22%	1.58%
Nikkei-225 Stock Average Index	6.40%	11.45%	9.69%	3.80%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 45.9%
Guggenheim Strategy Fund I1		35,894	$	901,296
Guggenheim Strategy Fund II1		24,001		601,475
Total Mutual Funds
(Cost $1,495,545)				1,502,771
	Face Amount
U.S. TREASURY BILLS†† - 3.1%
U.S. Treasury Bill
1.03% due 12/14/172,3,4	$	100,000		99,806
Total U.S. Treasury Bills
(Cost $99,787)				99,806
REPURCHASE AGREEMENTS††,5 - 49.0%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17		801,485		801,485

Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17	400,743		400,743
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17	199,268		199,268
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	182,072		182,072
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	19,095		19,095
Total Repurchase Agreements
(Cost $1,602,663)			1,602,663
Total Investments - 98.0%
(Cost $3,197,995)		$	3,205,240
Other Assets & Liabilities, net - 2.0%			66,744
Total Net Assets - 100.0%		$	3,271,984

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Gain (Loss)
Equity Futures Contracts Purchased†
Nikkei 225 (CME) Index Futures Contracts		64	Dec 2017	$	6,524,800	$	348,022
Currency Futures Contracts Purchased†
Japanese Yen Futures Contracts		59	Dec 2017		6,577,763		(113,735	)

†	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 5.
2	All or a portion of this security is pledged as futures collateral at September 30, 2017.
3	Rate indicated is the effective yield at the time of purchase.
4	Zero coupon rate security.
5	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
JAPAN 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts	$	—	$	348,022	$	—	$	—	$	348,022
Mutual Funds		1,502,771		—		—		—		1,502,771
Repurchase Agreements		—		—		1,602,663		—		1,602,663
U.S. Treasury Bills		—		—		99,806		—		99,806
Total Assets	$	1,502,771	$	348,022	$	1,702,469	$	—	$	3,553,262

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts	$	—	$	113,735	$	—	$	—	$	113,735

* Other financial instruments include futures contracts, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, 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/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	599,382	$	300,000	$	—	$	—	$	1,914	$	901,296		35,894	$	6,598
Guggenheim Strategy Fund II		600,035		—		—		—		1,440		601,475		24,001		6,759
	$	1,199,417	$	300,000	$	—	$	—	$	3,354	$	1,502,771			$	13,357

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $99,787)	$	99,806
Investments in affiliated issuers, at value (cost $1,495,545)		1,502,771
Repurchase agreements, at value (cost $1,602,663)		1,602,663
Segregated cash with broker		54,692
Receivables:
Fund shares sold		16,881
Variation margin		3,460
Dividends		2,505
Swap settlement		650
Interest		89
Total assets		3,283,517
Liabilities:
Payable for:
Legal fees		2,602
Fund shares redeemed		2,128
Management fees		2,022
Distribution and service fees		717
Transfer agent and administrative fees		674
Portfolio accounting fees		270
Miscellaneous		3,120
Total liabilities		11,533
Commitments and contingent liabilities (Note 12)		—
Net assets	$	3,271,984
Net assets consist of:
Paid in capital	$	3,263,268
Accumulated net investment loss		(17,620	)
Accumulated net realized loss on investments		(215,196	)
Net unrealized appreciation on investments		241,532
Net assets	$	3,271,984
A-Class:
Net assets	$	300,497
Capital shares outstanding		2,606
Net asset value per share	$	115.31
Maximum offering price per share (Net asset value divided by 95.25%)	$	121.06
C-Class:
Net assets	$	79,814
Capital shares outstanding		739
Net asset value per share	$	108.00
H-Class:
Net assets	$	2,891,673
Capital shares outstanding		24,895
Net asset value per share	$	116.15

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	13,357
Interest		19,544
Total investment income		32,901
Expenses:
Management fees		21,882
Distribution and service fees:
C-Class		325
A-Class		489
H-Class		6,723
Transfer agent and administrative fees		7,294
Portfolio accounting fees		2,918
Custodian fees		373
Trustees’ fees*		147
Miscellaneous		4,661
Total expenses		44,812
Net investment loss		(11,911	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Futures contracts		276,403
Net realized gain		276,403
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		19
Investments in affiliated issuers		3,354
Futures contracts		146,839
Net change in unrealized appreciation (depreciation)		150,212
Net realized and unrealized gain		426,615
Net increase in net assets resulting from operations	$	414,704

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

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(11,911	)	$	(35,030	)
Net realized gain on investments		276,403			2,807,128
Net change in unrealized appreciation (depreciation) on investments		150,212			(1,539	)
Net increase in net assets resulting from operations		414,704			2,770,559
Capital share transactions:
Proceeds from sale of shares
A-Class		184,016			242,044
C-Class		467,414			259,751
H-Class		220,558,507			263,867,281
Cost of shares redeemed
A-Class		(314,952	)		(299,177	)
C-Class		(446,648	)		(274,295	)
H-Class		(221,177,055	)		(265,800,357	)
Net decrease from capital share transactions		(728,718	)		(2,004,753	)
Net increase (decrease) in net assets		(314,014	)		765,806
Net assets:
Beginning of period		3,585,998			2,820,192
End of period	$	3,271,984		$	3,585,998
Accumulated net investment loss at end of period	$	(17,620	)	$	(5,709	)
Capital share activity:
Shares sold
A-Class		1,651			2,777	*
C-Class		4,453			3,281	*
H-Class		2,024,180			2,921,713	*
Shares redeemed
A-Class		(2,850	)		(3,428	)*
C-Class		(4,252	)		(3,495	)*
H-Class		(2,029,829	)		(2,921,654	)*
Net decrease in shares		(6,647	)		(806	)*

* Capital share activity for the period presented through March 31, 2017 has been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 11.

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

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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	102.24		$	78.81		$	93.15		$	77.23		$	69.56		$	61.79
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.74	)		(1.12	)		(1.00	)		(1.24	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		13.21			24.17			(13.22	)		16.92			8.91			8.57
Total from investment operations		13.07			23.43			(14.34	)		15.92			7.67			7.77
Net asset value, end of period	$	115.31		$	102.24		$	78.81		$	93.15		$	77.23		$	69.56
Total Returnc		12.78	%		29.73	%		(15.41	%)		20.61	%		11.04	%		12.56	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	300		$	389		$	351		$	447		$	624		$	2,025
Ratios to average net assets:
Net investment income (loss)		(0.25	%)		(0.80	%)		(1.22	%)		(1.27	%)		(1.50	%)		(1.40	%)
Total expensesd		1.52	%		1.52	%		1.51	%		1.54	%		1.52	%		1.51	%
Portfolio turnover rate		—			1,225	%		543	%		405	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	96.17		$	74.63		$	88.92		$	73.98		$	67.04		$	59.95
Income (loss) from investment operations:
Net investment income (loss)b		(.51	)		(1.33	)		(1.68	)		(1.56	)		(1.72	)		(1.16	)
Net gain (loss) on investments (realized and unrealized)		12.34			22.87			(12.61	)		16.50			8.66			8.25
Total from investment operations		11.83			21.54			(14.29	)		14.94			6.94			7.09
Net asset value, end of period	$	108.00		$	96.17		$	74.63		$	88.92		$	73.98		$	67.04
Total Returnc		12.35	%		28.74	%		(16.06	%)		20.23	%		10.32	%		11.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	80		$	52		$	56		$	317		$	104		$	246
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(1.53	%)		(1.91	%)		(2.04	%)		(2.25	%)		(2.15	%)
Total expensesd		2.27	%		2.27	%		2.24	%		2.30	%		2.27	%		2.25	%
Portfolio turnover rate		—			1,225	%		543	%		405	%		—			—

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	102.97		$	79.15		$	93.52		$	77.52		$	69.77		$	61.96
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.86	)		(1.08	)		(1.04	)		(1.20	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		13.41			24.68			(13.29	)		17.04			8.95			8.61
Total from investment operations		13.18			23.82			(14.37	)		16.00			7.75			7.81
Net asset value, end of period	$	116.15		$	102.97		$	79.15		$	93.52		$	77.52		$	69.77
Total Returnc		12.80	%		30.08	%		(15.36	%)		20.64	%		11.12	%		12.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,892		$	3,145		$	2,413		$	16,862		$	3,104		$	9,020
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.95	%)		(1.17	%)		(1.28	%)		(1.50	%)		(1.40	%)
Total expensesd		1.53	%		1.52	%		1.49	%		1.54	%		1.52	%		1.50	%
Portfolio turnover rate		—			1,225	%		543	%		405	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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 II	17.3%
Guggenheim Strategy Fund I	6.0%
Total	23.3%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	(13.68%)	(4.75%)	3.48%	(0.89%)
A-Class Shares with sales charge‡	(17.77%)	(9.28%)	2.48%	(1.37%)
C-Class Shares	(13.99%)	(5.46%)	2.71%	(1.58%)
C-Class Shares with CDSC§	(14.85%)	(6.41%)	2.71%	(1.58%)
H-Class Shares	(13.67%)	(4.74%)	3.48%	(0.91%)
U.S. Dollar Index	(7.24%)	(2.49%)	3.09%	1.82%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

72 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 23.3%
Guggenheim Strategy Fund II1		70,094	$	1,756,561
Guggenheim Strategy Fund I1		23,971		601,906
Total Mutual Funds
(Cost $2,335,172)				2,358,467
	Face Amount
U.S. TREASURY BILLS†† - 1.5%
U.S. Treasury Bill
1.03% due 12/14/172,3,4	$	150,000		149,709
Total U.S. Treasury Bills
(Cost $149,681)				149,709
REPURCHASE AGREEMENTS††,5 - 78.5%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/176		3,977,587		3,977,587

Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/176	1,988,793		1,988,793
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/176	996,514		996,513
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	896,710		896,710
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	94,045		94,045
Total Repurchase Agreements
(Cost $7,953,648)			7,953,648
Total Investments - 103.3%
(Cost $10,438,501)		$	10,461,824
Other Assets & Liabilities, net - (3.3)%			(331,264	)
Total Net Assets - 100.0%		$	10,130,560

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Gain
Currency Futures Contracts Purchased†
U.S. Dollar Index Futures Contracts		196	Dec 2017	$	18,209,380	$	127,783

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay

Payment Frequency

Maturity Date

Units

Notional Value

Unrealized Gain

OTC Currency Index Swap Agreements††

Goldman Sachs International

U.S. Dollar Index

1.31

%

At Maturity

12/15/17

21,879

$

2,031,652

$

12,025

†	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 5.
2	All or a portion of this security is pledged as futures collateral at September 30, 2017.
3	Rate indicated is the effective yield at the time of purchase.
4	Zero coupon rate security.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at September 30, 2017.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
STRENGTHENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 – Other*		Level 2 Significant Observable Inputs		Level 2 – Other*		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts	$	—	$	127,783	$	—	$	—	$	—	$	127,783
Currency Index Swap Agreements		—		—		—		12,025		—		12,025
Mutual Funds		2,358,467		—		—		—		—		2,358,467
Repurchase Agreements		—		—		7,953,648		—		—		7,953,648
U.S. Treasury Bills		—		—		149,709		—		—		149,709
Total Assets	$	2,358,467	$	127,783	$	8,103,357	$	12,025	$	—	$	10,601,632

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, 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/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	600,468	$	—	$	—	$	—	$	1,438	$	601,906		23,971	$	5,380
Guggenheim Strategy Fund II		1,752,355		—		—		—		4,206		1,756,561		70,094		19,740
	$	2,352,823	$	—	$	—	$	—	$	5,644	$	2,358,467			$	25,120

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $149,681)	$	149,709
Investments in affiliated issuers, at value (cost $2,335,172)		2,358,467
Repurchase agreements, at value (cost $7,953,648)		7,953,648
Segregated cash with broker		229,050
Unrealized appreciation on swap agreements		12,025
Receivables:
Fund shares sold		90,866
Swap settlement		48,026
Dividends		4,170
Interest		441
Total assets		10,846,402
Liabilities:
Payable for:
Fund shares redeemed		683,977
Management fees		8,845
Variation margin		5,876
Distribution and service fees		3,009
Transfer agent and administrative fees		2,457
Portfolio accounting fees		983
Miscellaneous		10,695
Total liabilities		715,842
Commitments and contingent liabilities (Note 12)		—
Net assets	$	10,130,560
Net assets consist of:
Paid in capital	$	31,027,819
Accumulated net investment loss		(125,385	)
Accumulated net realized loss on investments		(20,935,005	)
Net unrealized appreciation on investments		163,131
Net assets	$	10,130,560
A-Class:
Net assets	$	1,545,431
Capital shares outstanding		33,634
Net asset value per share	$	45.95
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.24
C-Class:
Net assets	$	897,527
Capital shares outstanding		21,602
Net asset value per share	$	41.55
H-Class:
Net assets	$	7,687,602
Capital shares outstanding		167,978
Net asset value per share	$	45.77

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	25,120
Interest		39,732
Total investment income		64,852
Expenses:
Management fees		48,743
Distribution and service fees:
C-Class		5,685
A-Class		2,313
H-Class		9,805
Transfer agent and administrative fees		13,539
Portfolio accounting fees		5,416
Registration fees		5,372
Custodian fees		729
Trustees’ fees*		712
Line of credit fees		19
Miscellaneous		6,245
Total expenses		98,578
Net investment loss		(33,726	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		11,277
Swap agreements		(399,709	)
Futures contracts		(1,476,957	)
Net realized loss		(1,865,389	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,442	)
Investments in affiliated issuers		5,644
Swap agreements		82,815
Futures contracts		344,962
Net change in unrealized appreciation (depreciation)		430,979
Net realized and unrealized loss		(1,434,410	)
Net decrease in net assets resulting from operations	$	(1,468,136	)

* 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 | 75

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(33,726	)	$	(253,288	)
Net realized gain (loss) on investments		(1,865,389	)		2,122,644
Net change in unrealized appreciation (depreciation) on investments		430,979			459,977
Net increase (decrease) in net assets resulting from operations		(1,468,136	)		2,329,333
Capital share transactions:
Proceeds from sale of shares
A-Class		1,463,798			8,015,246
C-Class		448,658			4,990,031
H-Class		35,484,474			156,831,439
Cost of shares redeemed
A-Class		(1,869,336	)		(8,071,303	)
C-Class		(676,478	)		(5,831,709	)
H-Class		(34,313,119	)		(161,648,841	)
Net increase (decrease) from capital share transactions		537,997			(5,715,137	)
Net decrease in net assets		(930,139	)		(3,385,804	)
Net assets:
Beginning of period		11,060,699			14,446,503
End of period	$	10,130,560		$	11,060,699
Accumulated net investment loss at end of period	$	(125,385	)	$	(91,659	)
Capital share activity:
Shares sold
A-Class		29,723			154,635
C-Class		10,055			108,852
H-Class		742,347			3,132,819
Shares redeemed
A-Class		(38,264	)		(152,304	)
C-Class		(15,549	)		(126,213	)
H-Class		(715,931	)		(3,214,633	)
Net increase (decrease) in shares		12,381			(96,844	)

76 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	53.23		$	47.68		$	55.75		$	38.36		$	42.75		$	40.35
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.55	)		(.58	)		(.56	)		(.69	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		(7.15	)		6.10			(5.32	)		17.95			(3.70	)		3.03
Total from investment operations		(7.28	)		5.55			(5.90	)		17.39			(4.39	)		2.40
Less distributions from:
Net realized gains		—			—			(2.17	)		—			—			—
Total distributions		—			—			(2.17	)		—			—			—
Net asset value, end of period	$	45.95		$	53.23		$	47.68		$	55.75		$	38.36		$	42.75
Total Returnc		(13.68	%)		11.64	%		(11.01	%)		45.33	%		(10.27	%)		5.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,545		$	2,245		$	1,900		$	15,765		$	3,547		$	10,427
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		(1.07	%)		(1.10	%)		(1.19	%)		(1.72	%)		(1.53	%)
Total expensesd		1.74	%		1.73	%		1.69	%		1.68	%		1.74	%		1.66	%
Portfolio turnover rate		—			142	%		376	%		299	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	48.32		$	43.60		$	51.55		$	35.74		$	40.15		$	38.14
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.82	)		(.85	)		(.81	)		(.94	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		(6.48	)		5.54			(4.93	)		16.62			(3.47	)		2.91
Total from investment operations		(6.77	)		4.72			(5.78	)		15.81			(4.41	)		2.01
Less distributions from:
Net realized gains		—			—			(2.17	)		—			—			—
Total distributions		—			—			(2.17	)		—			—			—
Net asset value, end of period	$	41.55		$	48.32		$	43.60		$	51.55		$	35.74		$	40.15
Total Returnc		(13.99	%)		10.80	%		(11.69	%)		44.24	%		(10.96	%)		5.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	898		$	1,309		$	1,938		$	3,836		$	2,099		$	3,530
Ratios to average net assets:
Net investment income (loss)		(1.29	%)		(1.80	%)		(1.75	%)		(1.96	%)		(2.48	%)		(2.29	%)
Total expensesd		2.49	%		2.48	%		2.45	%		2.44	%		2.50	%		2.42	%
Portfolio turnover rate		—			142	%		376	%		299	%		—			—

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	53.03		$	47.49		$	55.53		$	38.21		$	42.60		$	40.17
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.56	)		(.59	)		(.56	)		(.69	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		(7.13	)		6.10			(5.28	)		17.88			(3.70	)		3.06
Total from investment operations		(7.26	)		5.54			(5.87	)		17.32			(4.39	)		2.43
Less distributions from:
Net realized gains		—			—			(2.17	)		—			—			—
Total distributions		—			—			(2.17	)		—			—			—
Net asset value, end of period	$	45.77		$	53.03		$	47.49		$	55.53		$	38.21		$	42.60
Total Returnc		(13.67	%)		11.64	%		(11.00	%)		45.33	%		(10.31	%)		6.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,688		$	7,506		$	10,608		$	158,098		$	9,764		$	11,979
Ratios to average net assets:
Net investment income (loss)		(0.54	%)		(1.11	%)		(1.12	%)		(1.19	%)		(1.72	%)		(1.53	%)
Total expensesd		1.74	%		1.73	%		1.70	%		1.68	%		1.74	%		1.66	%
Portfolio turnover rate		—			142	%		376	%		299	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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 I	8.3%
Guggenheim Strategy Fund II	8.3%
Total	16.6%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	14.31%	1.57%	(7.66%)	(4.69%)
A-Class Shares with sales charge‡	8.88%	(3.27%)	(8.55%)	(5.15%)
C-Class Shares	13.92%	0.88%	(8.36%)	(5.41%)
C-Class Shares with CDSC§	12.92%	(0.12%)	(8.36%)	(5.41%)
H-Class Shares	14.34%	1.64%	(7.65%)	(4.69%)
U.S. Dollar Index	(7.24%)	(2.49%)	3.09%	1.82%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 79

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 16.7%
Guggenheim Strategy Fund I1		15,004	$	376,752
Guggenheim Strategy Fund II1		15,033		376,732
Total Mutual Funds
(Cost $747,983)				753,484
	Face Amount
FEDERAL AGENCY NOTES†† - 22.1%
Federal Farm Credit Bank2
1.41% (Fed Bank Prime Loan Rate U.S. Daily + -283 bps) due 09/12/183	$	500,000		501,239
1.17% (Fed Bank Prime Loan Rate U.S. Daily + -308 bps) due 03/12/193		500,000		500,072
Total Federal Agency Notes
(Cost $999,916)				1,001,311
U.S. TREASURY BILLS†† - 2.2%
U.S. Treasury Bill
1.03% due 12/14/174,5,6		100,000		99,806
Total U.S. Treasury Bills
(Cost $99,787)				99,806

REPURCHASE AGREEMENTS††,7 - 68.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/178	1,551,712		1,551,712
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/178	775,856		775,856
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/178	403,380		403,380
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	336,581		336,581
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	35,300		35,300
Total Repurchase Agreements
(Cost $3,102,829)			3,102,829
Total Investments - 109.7%
(Cost $4,950,515)		$	4,957,430
Other Assets & Liabilities, net - (9.7)%			(438,372	)
Total Net Assets - 100.0%		$	4,519,058

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Loss
Currency Futures Contract Sold Short†
U.S. Dollar Index Futures Contracts		91	Dec 2017	$	8,454,355	$	(58,690	)

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Value

Unrealized Loss

OTC Currency Index Swap Agreements Sold Short††

Goldman Sachs International

U.S. Dollar Index

1.31

%

At Maturity

12/15/17

6,578

$

610,848

$

(7,949

)

†	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 5.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2017.
4	All or a portion of this security is pledged as futures collateral at September 30, 2017.
5	Rate indicated is the effective yield at the time of purchase.
6	Zero coupon rate security.
7	Repurchase Agreements — See Note 6.
8	All or a portion of this security is pledged as currency index swap collateral at September 30, 2017.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
WEAKENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 – Other*		Level 2 Significant Observable Inputs		Level 2 – Other*		Level 3 Significant Unobservable Inputs		Total
Federal Agency Notes	$	—	$	—	$	1,001,311	$	—	$	—	$	1,001,311
Mutual Funds		753,484		—		—		—		—		753,484
Repurchase Agreements		—		—		3,102,829		—		—		3,102,829
U.S. Treasury Bills		—		—		99,806		—		—		99,806
Total Assets	$	753,484	$	—	$	4,203,946	$	—	$	—	$	4,957,430
Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 – Other*		Level 2 Significant Observable Inputs		Level 2 – Other*		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts	$	—	$	58,690	$	—	$	—	$	—	$	58,690
Currency Index Swap Agreements		—		—		—		7,949		—		7,949
Total Liabilities	$	—	$	58,690	$	—	$	7,949	$	—	$	66,639

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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, 2016, 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/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	250,891	$	225,000	$	(100,000	)	$	—	$	861	$	376,752		15,004	$	3,165
Guggenheim Strategy Fund II		250,840		225,000		(100,000	)		—		892		376,732		15,033		3,955
	$	501,731	$	450,000	$	(200,000	)	$	—	$	1,753	$	753,484			$	7,120

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value (cost $1,099,703)	$	1,101,117
Investments in affiliated issuers, at value (cost $747,983)		753,484
Repurchase agreements, at value (cost $3,102,829)		3,102,829
Segregated cash with broker		80,700
Receivables:
Variation margin		2,738
Fund shares sold		1,760
Dividends		1,278
Interest		856
Total assets		5,044,762
Liabilities:
Unrealized depreciation on swap agreements		7,949
Payable for:
Fund shares redeemed		455,627
Swap settlement		46,077
Management fees		5,146
Distribution and service fees		1,798
Transfer agent and administrative fees		1,429
Portfolio accounting fees		572
Miscellaneous		7,106
Total liabilities		525,704
Commitments and contingent liabilities (Note 12)		—
Net assets	$	4,519,058
Net assets consist of:
Paid in capital	$	17,664,927
Accumulated net investment loss		(35,463	)
Accumulated net realized loss on investments		(13,050,682	)
Net unrealized depreciation on investments		(59,724	)
Net assets	$	4,519,058
A-Class:
Net assets	$	351,714
Capital shares outstanding		4,734
Net asset value per share	$	74.30
Maximum offering price per share (Net asset value divided by 95.25%)	$	78.00
C-Class:
Net assets	$	570,809
Capital shares outstanding		8,535
Net asset value per share	$	66.88
H-Class:
Net assets	$	3,596,535
Capital shares outstanding		48,455
Net asset value per share	$	74.22

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of affiliated issuers	$	7,120
Interest		26,376
Total investment income		33,496
Expenses:
Management fees		29,030
Distribution and service fees:
C-Class		3,001
A-Class		2,051
H-Class		5,262
Transfer agent and administrative fees		8,064
Portfolio accounting fees		3,225
Custodian fees		423
Trustees’ fees*		209
Miscellaneous		7,144
Total expenses		58,409
Net investment loss		(24,913	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		142,929
Futures contracts		812,540
Net realized gain		955,469
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		983
Investments in affiliated issuers		1,753
Swap agreements		(23,919	)
Futures contracts		(139,725	)
Net change in unrealized appreciation (depreciation)		(160,908	)
Net realized and unrealized gain		794,561
Net increase in net assets resulting from operations	$	769,648

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

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(24,913	)	$	(67,934	)
Net realized gain (loss) on investments		955,469			(1,547,174	)
Net change in unrealized appreciation (depreciation) on investments		(160,908	)		(161,375	)
Net increase (decrease) in net assets resulting from operations		769,648			(1,776,483	)
Capital share transactions:
Proceeds from sale of shares
A-Class		4,657,179			6,990,845
C-Class		120,144			1,177,429
H-Class		20,066,698			66,296,972
Cost of shares redeemed
A-Class		(4,780,074	)		(7,813,379	)
C-Class		(322,997	)		(919,788	)
H-Class		(22,079,026	)		(63,362,959	)
Net increase (decrease) from capital share transactions		(2,338,076	)		2,369,120
Net increase (decrease) in net assets		(1,568,428	)		592,637
Net assets:
Beginning of period		6,087,486			5,494,849
End of period	$	4,519,058		$	6,087,486
Accumulated net investment loss at end of period	$	(35,463	)	$	(10,550	)
Capital share activity:
Shares sold
A-Class		67,164			100,872	*
C-Class		1,842			18,572	*
H-Class		286,684			917,915	*
Shares redeemed
A-Class		(67,420	)		(113,327	)*
C-Class		(5,144	)		(14,545	)*
H-Class		(316,300	)		(888,300	)*
Net increase (decrease) in shares		(33,174	)		21,187	*

* Capital share activity for the periods presented through March 31, 2017 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

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

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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	64.99		$	75.31		$	70.69		$	107.17		$	101.72		$	113.72
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.80	)		(.84	)		(1.20	)		(1.80	)		(1.68	)
Net gain (loss) on investments (realized and unrealized)		9.54			(9.52	)		5.46			(35.28	)		7.25			(10.32	)
Total from investment operations		9.31			(10.32	)		4.62			(36.48	)		5.45			(12.00	)
Net asset value, end of period	$	74.30		$	64.99		$	75.31		$	70.69		$	107.17		$	101.72
Total Returnc		14.31	%		(13.69	%)		6.54	%		(34.04	%)		5.37	%		(10.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	352		$	324		$	1,314		$	508		$	1,129		$	1,346
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(1.13	%)		(1.13	%)		(1.23	%)		(1.73	%)		(1.53	%)
Total expensesd		1.74	%		1.72	%		1.70	%		1.70	%		1.75	%		1.65	%
Portfolio turnover rate		29	%		77	%		699	%		219	%		—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	58.72		$	68.57		$	64.88		$	99.08		$	94.76		$	106.73
Income (loss) from investment operations:
Net investment income (loss)b		(.46	)		(1.19	)		(1.20	)		(1.74	)		(2.40	)		(2.28	)
Net gain (loss) on investments (realized and unrealized)		8.62			(8.66	)		4.89			(32.46	)		6.72			(9.69	)
Total from investment operations		8.16			(9.85	)		3.69			(34.20	)		4.32			(11.97	)
Net asset value, end of period	$	66.88		$	58.72		$	68.57		$	64.88		$	99.08		$	94.76
Total Returnc		13.92	%		(14.39	%)		5.74	%		(34.52	%)		4.56	%		(11.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	571		$	695		$	536		$	163		$	821		$	1,687
Ratios to average net assets:
Net investment income (loss)		(1.46	%)		(1.88	%)		(1.81	%)		(1.94	%)		(2.49	%)		(2.27	%)
Total expensesd		2.49	%		2.47	%		2.45	%		2.46	%		2.52	%		2.39	%
Portfolio turnover rate		29	%		77	%		699	%		219	%		—			—

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

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	64.92		$	75.23		$	70.59		$	106.99		$	101.58		$	113.59
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.85	)		(.78	)		(1.14	)		(1.80	)		(1.62	)
Net gain (loss) on investments (realized and unrealized)		9.56			(9.46	)		5.42			(35.26	)		7.21			(10.39	)
Total from investment operations		9.30			(10.31	)		4.64			(36.40	)		5.41			(12.01	)
Net asset value, end of period	$	74.22		$	64.92		$	75.23		$	70.59		$	106.99		$	101.58
Total Returnc		14.34	%		(13.73	%)		6.54	%		(33.99	%)		5.32	%		(10.57	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,597		$	5,068		$	3,645		$	3,651		$	5,449		$	10,058
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(1.19	%)		(1.04	%)		(1.20	%)		(1.74	%)		(1.52	%)
Total expensesd		1.74	%		1.71	%		1.70	%		1.70	%		1.76	%		1.64	%
Portfolio turnover rate		29	%		77	%		699	%		219	%		—			—

a	Unaudited figures for the period ended September 30, 2017. 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 March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 11.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory 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 seven separate classes of shares: Investor 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 require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2017, the Trust consisted of fifty-three 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI 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, 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) Valuation of Investments

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 and/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, to 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 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 sale price as of the close of business on the NYSE, usually

86 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 sale price.

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.

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.

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 using methods established or ratified by the Board. 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 market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

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) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(c) Swap Agreements

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 an agreement are recognized as realized gains or losses.

(d) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

(e) Currency Translation

The accounting records of the Fund 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 RYDEX FUNDS SEMI-ANNUAL REPORT | 87

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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

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) Income

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) Cash

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, which was 1.06% at September 30, 2017.

(j) Indemnifications

Under the Funds’ organizational documents, the 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.

Note 2 – Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. 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 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

88 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index 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 Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

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 segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Europe 1.25x Strategy Fund	Index exposure, Leverage, Liquidity	$	20,104,760	$	—
Japan 2x Strategy Fund	Index exposure, Leverage, Liquidity		62,772,394		—
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		16,833,305		—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		9,093,343

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 over-the-counter (“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 the Funds to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involve 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 Funds may be at risk due to the counterparty’s inability to perform.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 89

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Funds’ use and volume of currency swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	3,358,973	$	—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,741,876

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, 2017:

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, 2017:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2017
Europe 1.25x Strategy Fund	$	165,367	$	—	$	—	$	165,367
Japan 2x Strategy Fund		348,022		—		—		348,022
Strengthening Dollar 2x Strategy Fund		—		127,783		12,025		139,808

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2017
Europe 1.25x Strategy Fund	$	—	$	51,868	$	—	$	51,868
Japan 2x Strategy Fund		—		113,735		—		113,735
Weakening Dollar 2x Strategy Fund		—		58,690		7,949		66,639

* 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, 2017:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

90 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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, 2017:

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	$	137,556	$	1,547,330		$	—		$	1,684,886
Japan 2x Strategy Fund		31,711		244,692			—			276,403
Strengthening Dollar 2x Strategy Fund		—		(1,476,957	)		(399,709	)		(1,876,666	)
Weakening Dollar 2x Strategy Fund		—		812,540			142,929			955,469

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	$	98,317	$	(13,619	)	$	—		$	84,698
Japan 2x Strategy Fund		448,763		(301,924	)		—			146,839
Strengthening Dollar 2x Strategy Fund		—		344,962			82,815			427,777
Weakening Dollar 2x Strategy Fund		—		(139,725	)		(23,919	)		(163,644	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to 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.

Note 3 – 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 from 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, are 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 91

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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:

								Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets		Gross Amounts Offset In the Statements of Assets and Liabilities1		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	$	12,025	$	—	$	12,025	$	(12,025	)	$	—	$	—

								Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities		Gross Amounts Offset In the Statements of Assets and Liabilities1		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	$	7,949	$	—	$	7,949	$	(7,949	)	$	—	$	—

¹ Exchange-traded derivatives are excluded from these reported amounts.

The following table presents deposits held by others in connection with derivative investments as of September 30, 2017. The Funds have the right to offset these deposits against any related liabilities outstanding with each counterparty.

Counterparty	Cash Pledged		Cash Received
Japan 2x Strategy Fund
Goldman Sachs Group	$	54,692	$	—
Japan 2x Strategy Fund Total		54,692		—
Strengthening Dollar 2x Strategy Fund
Goldman Sachs Group		229,050		—
Strengthening Dollar 2x Strategy Fund Total		229,050		—
Weakening Dollar 2x Strategy Fund
Goldman Sachs Group		80,700		—
Weakening Dollar 2x Strategy Fund Total		80,700		—

Note 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.

92 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 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.

Note 5 – Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
S&P 500® Pure Growth Fund	0.75%
S&P 500® Pure Value Fund	0.75%
S&P MidCap 400® Pure Growth Fund	0.75%
S&P MidCap 400® Pure Value Fund	0.75%
S&P SmallCap 600® Pure Growth Fund	0.75%
S&P SmallCap 600® Pure Value Fund	0.75%
Europe 1.25x Strategy Fund	0.90%
Japan 2x Strategy Fund	0.75%
Strengthening Dollar 2x Strategy Fund	0.90%
Weakening Dollar 2x Strategy Fund	0.90%

GI 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.

The Board of Trustees has adopted a distribution and service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Fund is authorized to pay distribution fees in connection with the sale and distribution of its shares and pay service fees in connection with the provision of ongoing services to shareholders and the maintenance of shareholder accounts in an amount up to 0.25% of its average daily net assets each year. No 12b-1 fees are currently paid by the Funds, and there are no current plans to impose these fees. No such fee may be paid in the future without further approval by the Board of Trustees.

For the period ended September 30, 2017, GFD retained sales charges of $90,853 relating to sales of A-Class shares of the Trust.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Trust’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Trust’s securities and cash. For providing the aforementioned services, MUIS is entitled to receive a monthly fee equal to an annual percentage of the Funds’ average daily net assets subject to certain minimum monthly fees and out of pocket expenses.

Note 6 – 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 joint account includes other Funds in the Guggenheim complex not covered in this report. 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, 2017, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
BNP Paribas					U.S Treasury Note
1.00%					1.13%
Due 10/02/17	$	126,905,733		126,916,309	02/28/21	$	131,780,200	$	129,443,901
Bank of America Merrill Lynch					U.S. Treasury Note
1.05%					1.63%
Due 10/02/17		63,452,867		63,458,419	05/31/23		65,690,800		64,722,010
RBC Capital Markets LLC					U.S. TIP Notes
0.98%					1.13%
Due 10/02/17		35,069,861		35,072,725	01/15/21		30,577,200		35,771,371
HSBC Securities, Inc.					U.S. Treasury Strips
0.91%					0.00%
Due 10/02/17		23,879,390		23,881,201	08/15/39		44,888,000		24,357,007
UMB Financial Corp.					Federal Home Loan Bank
0.91%					1.25%
Due 10/02/17		2,504,407		2,504,597	06/08/18		2,000,000		2,007,147
					U.S. Treasury Note
					1.63%
					05/15/26		573,300		547,365

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. GI, acting under the supervision of the Board, 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.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of business each day; any additional collateral required due to changes in security values

94 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At September 30, 2017, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
S&P 500® Pure Growth Fund	$	613,925	$	(613,925	)	$	—	$	622,819	$	—	$	622,819
S&P 500® Pure Value Fund		765,352		(765,352	)		—		797,810		—		797,810
S&P MidCap 400® Pure Growth Fund		4,327,541		(4,327,541	)		—		4,421,049		—		4,421,049
S&P MidCap 400® Pure Value Fund		1,322,812		(1,322,812	)		—		1,359,498		—		1,359,498
S&P SmallCap 600® Pure Growth Fund		753,001		(753,001	)		—		770,484		—		770,484
S&P SmallCap 600® Pure Value Fund		521,267		(521,267	)		—		536,523		—		536,523
Europe 1.25x Strategy Fund		4,218		(4,218	)		—		4,294		—		4,294

^(a) Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds have securities lending agreements to evaluate potential risks.

Note 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 95

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2017, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
S&P 500® Pure Growth Fund	$	92,150,870	$	19,216,502	$	(975,787	)	$	18,240,715
S&P 500® Pure Value Fund		61,177,822		8,294,743		(484,569	)		7,810,174
S&P MidCap 400® Pure Growth Fund		105,330,525		13,558,537		(3,792,827	)		9,765,710
S&P MidCap 400® Pure Value Fund		22,155,176		1,056,593		(98,984	)		957,609
S&P SmallCap 600® Pure Growth Fund		13,845,327		2,606,830		(273,544	)		2,333,286
S&P SmallCap 600® Pure Value Fund		15,905,923		679,277		(7,434	)		671,843
Europe 1.25x Strategy Fund		14,619,415		834,296		(126,743	)		707,553
Japan 2x Strategy Fund		3,198,560		354,839		(113,872	)		240,967
Strengthening Dollar 2x Strategy Fund		10,440,057		161,575		—			161,575
Weakening Dollar 2x Strategy Fund		4,950,854		6,883		(66,946	)		(60,063	)

Note 9 – Securities Transactions

For the period ended September 30, 2017, 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	$	109,100,558	$	117,813,239
S&P 500® Pure Value Fund		70,020,663		70,408,921
S&P MidCap 400® Pure Growth Fund		59,651,989		64,929,914
S&P MidCap 400® Pure Value Fund		65,279,478		71,807,425
S&P SmallCap 600® Pure Growth Fund		62,335,466		84,123,338
S&P SmallCap 600® Pure Value Fund		200,134,849		207,004,113
Europe 1.25x Strategy Fund		39,865,925		32,348,080
Japan 2x Strategy Fund		300,000		—
Strengthening Dollar 2x Strategy Fund		—		2,500,000
Weakening Dollar 2x Strategy Fund		450,000		200,000

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2017, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain
S&P 500® Pure Growth Fund	$	15,774,528	$	19,468,332	$	3,365,077
S&P 500® Pure Value Fund		8,156,637		19,366,830		1,753,582
S&P MidCap 400® Pure Growth Fund		3,566,407		8,637,957		1,734,779
S&P MidCap 400® Pure Value Fund		3,409,302		4,658,384		149,588
S&P SmallCap 600® Pure Growth Fund		1,520,060		4,377,105		445,180
S&P SmallCap 600® Pure Value Fund		993,963		2,377,158		61,453
Europe 1.25x Strategy Fund		1,181,880		3,854,903		28,560

96 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 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 11, 2018. 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 1.92% for the period ended September 30, 2017. The Funds did not have any borrowings outstanding under this agreement at September 30, 2017.

The average daily balances borrowed for the period ended September 30, 2017, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	2,781
S&P 500® Pure Value Fund		638
S&P MidCap 400® Pure Growth Fund		5,028
S&P MidCap 400® Pure Value Fund		11,742
S&P SmallCap 600® Pure Growth Fund		3,195
S&P SmallCap 600® Pure Value Fund		10,301
Europe 1.25x Strategy Fund		1,492

Note 11 – Share Splits

Share splits occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
S&P 500® Pure Value Fund	October 28, 2016	Two-for-One Share Split
Europe 1.25x Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split
Japan 2x Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split
Weakening Dollar 2x Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split

The effect of these transactions was to multiply the number of outstanding shares of the S&P 500^® Pure Value Fund by its split ratio, resulting in a corresponding decrease in the NAV and to divide the number of outstanding shares of the Europe 1.25x Strategy Fund, Japan 2x Strategy Fund and the Weakening Dollar 2x Strategy Fund by their respective reverse 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 prior to the eff ective date, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Note 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 Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 97

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

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. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but will wait to do so until it has resolved outstanding motions to dismiss filed by other defendants. Accordingly, the timing of the appeal is uncertain.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law.

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”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.) (“Reichman”).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek 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. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

98 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

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 Bankruptcy 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 Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment. On May 30, 2017, the shareholder defendants filed a motion to remand the proceedings in the Creditor Trust and Reichman Actions to the Bankruptcy Court, for consideration of the collateral estoppel ground for dismissal raised by the Bankruptcy Court’s ruling in the Blavatnik Action. On August 18, 2017, the plaintiff in the Creditor Trust action filed a notice of dismissal of claims brought against defendants who had not answered the Third Amended Complaint. The same day, the plaintiff in the Reichman action filed a notice of dismissal of all claims against named defendants who had not filed an answer and withdrew his request for class certification of a defendant class. On September 5, 2017, the Court entered an order dismissing the Creditor Trust and Reichman actions with prejudice. The Court’s order dismissed the actions as to all defendants as well as to unnamed members of the putative defendant class in the Reichman action.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set. On April 21, 2017, the Bankruptcy Court issued an Opinion and Order After Trial in a related Lyondell litigation (the “Blavatnik Action”) rejecting claims for intentional fraudulent transfer and constructive fraudulent transfer in connection with the 2007 LBO. Based on this related ruling in the Blavatnik Action, the shareholder defendants filed a motion to dismiss the Litigation Trust Action on the grounds of collateral estoppel on May 30, 2017. Although the Bankruptcy Court had not yet ruled on the motion to dismiss, on August 15, 2017, the plaintiff in the Litigation Trust action filed a notice of dismissal of all claims against the defendants who joined the motion to dismiss. On August 18, 2017, the Litigation Trust plaintiff also withdrew his request for class certification of a defendant class in the Litigation Trust action. On September 5, 2017, the Court entered an order dismissing the Litigation Trust action with prejudice. The Court’s order dismissed the action as to all defendants as well as to unnamed members of the putative defendant class.

As a result of the dismissals above, there are no longer claims pending against the Rydex Series Funds related to the Lyondell merger.

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

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 https://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 https://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 https://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 Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 25, 2017, 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 Security Investors, LLC (the “Advisor”) applicable to 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, each a series of the Trust (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 26, 2017 (together, with the May 25 meeting, the “Meetings”). The Board considered the materials provided by the Advisor and the review conducted at the April 26 meeting to be an integral part of the Trustees’ deliberations and their process in considering the renewal of the Investment Advisory Agreement.

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 the independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the renewal or approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent 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 substantial commitment to the recruitment and retention of high quality personnel; (c) 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

100 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

for breakpoints at this point in time; (d) each Fund’s overall fees and operating expenses compared with those of similar funds; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors that was 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 for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to such Fund; 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 (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. 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 considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. 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. The Board also discussed the correlation between a Fund’s assets under management and tracking error, noting that a Fund’s ability to replicate an underlying index rather than employ representative sampling depends, in part, upon the Fund’s size. 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 also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 101

OTHER INFORMATION (Unaudited)(concluded)

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 Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under the distribution agreement, Distribution Plans, and Distribution and Shareholder Services Plans 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 affiliate’s 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.

102 | 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: Vice Chairman, Guggenheim Investments (2010-present). Former: President and CEO, certain other funds in the Fund complex (2012-November 2017); Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	226	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle (1959)	Trustee, Member of the Audit Committee, Chairwoman and Member of the Compliance and Risk Oversight Committee, and Member of the Nominating and Governance Committee from 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	133	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Nominating and 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 (3) (2009-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 103

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
John O. Demaret (1940)	Trustee and Member of the Audit Committee from 1997 to present; Member of the Compliance and Risk Oversight Committee from 2010 to present; Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman and Trustee of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; Member of the Compliance and Risk Oversight Committee from 2015 to present; Member of the Nominating and Governance Committee from 2015 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; and Chairman and Member of the Nominating and 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; Member of the Nominating and 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.
Sandra G. Sponem (1958)	Trustee, Member of the Audit Committee, and Chairwoman and Member of the Investment and Performance Committee from 2016 to present.	Current: Retired Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	133	None.

104 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
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.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2014-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager of Mutual Fund Administration, Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Treasurer and Assistant Treasurer, certain other funds in the Fund Complex (2010-present); Managing Director, Guggenheim Investments (2015-present); Chief Financial Officer, Guggenheim Specialized Products, LLC (2016-present). Former: Managing Director and Director, Transparent Value, LLC (2010-2016); Director, Guggenheim Partners Investment Management, LLC (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	President (November 2017-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (November 2017-present); 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).
Mark E. Mathiasen (1978)	Secretary (November 2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 105

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); 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).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (November 2017-present)	Current: Vice President, Guggenheim Investments (July 2017-present); Assistant Treasurer, certain other funds in the Fund Complex (November 2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (February-June 2017); Senior Analyst of US Fund Administration, HGINA (2014-January 2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

106 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

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 personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

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 Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes 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 Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. 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 your personal 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. In connection with servicing your accounts or 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 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 personal 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 share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 107

This page intentionally left blank.

This page intentionally left blank.

9.30.2017

Rydex Funds Semi-Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

GuggenheimInvestments.com ROTCF-SEMI-0917x0318

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NASDAQ-100® FUND	8
NOTES TO FINANCIAL STATEMENTS	24
OTHER INFORMATION	42
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	46
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	52

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2017

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semiannual shareholder report for NASDAQ-100^® Fund (the “Fund”). This report covers performance for the six-month period ended September 30, 2017.

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,

Security Investors, LLC
October 31, 2017

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.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions. The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity markets as a whole.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2017

Over the past few months, the equity markets have faced massive hurricanes in the South, rising tensions with North Korea and ongoing uncertainty surrounding domestic policy. Despite it all, the major stock indices continue to trade at or near record levels. The market’s resiliency seems to underscore that, at the end of the day, it’s fundamentals that drive equity markets and not political headlines or geopolitical tensions.

A noticeable shift in market sentiment during the third quarter led to a rotation into cyclical and small capitalization stocks. Value factors also began to outperform in September, a significant change from year-to-date performance. From a macro standpoint, the primary drivers of the value trade include rising inflationary expectations, economic growth and the prospects of tax reform.

Outside the U.S., both the European and emerging markets outperformed the Standard & Poor’s 500^® (“S&P 500”) Index on a dollar denominated basis. Renewed interest in both regions reflected attractive relative valuation and the synchronized global economic expansion.

Assuming no major geopolitical or other unforeseen shocks, we expect the U.S. economy will grow by between 2.0–2.5% in real terms in 2017 and 2018, supported by a strong labor market at home, a synchronized upswing in the global economy, and favorable financial conditions. Risks to our growth outlook are to the upside if Washington delivers on promises to cut taxes. Third quarter economic data was less distorted by the recent hurricanes than expected, and rebuilding efforts should be a positive for growth leading into 2018.

The labor market is steadily tightening, as seen in the drop in the unemployment rate to a cycle low of 4.2% in September, underscoring the robust—and unsustainable—underlying trend in hiring. Leading indicators, including hiring intentions surveys, point to further declines in the unemployment rate. Meanwhile, inflation continues to be well below the U.S. Federal Reserve’s (the “Fed”) 2% longer-run goal, with core personal consumption expenditure inflation coming in at 1.3% in September. However, inflation lags Gross Domestic Product (“GDP”) growth by about six quarters; because growth has accelerated over the past year, and the dollar has depreciated, inflation will likely move closer to 2% by the second quarter of 2018.

The firming U.S. economy, coupled with synchronized global growth and stabilization in the U.S. dollar, is likely to be supportive of the U.S. earnings environment. On the valuation front, while elevated relative to long-term averages, multiples still remain well below extreme levels. Economic and financial conditions are supportive enough for the Fed to continue to resume a quarterly pattern of rate increases in December, and to begin balance sheet normalization this year. Interest rates are expected to remain supportive of risk assets.

For the six months ended September 30, 2017, the S&P 500^® Index* returned 7.71%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 10.99%. The return of the MSCI Emerging Markets Index* was 14.66%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2017

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.31% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 4.19%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.47% 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.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

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

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

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

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

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.

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

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, 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, 2017 and ending September 30, 2017.

The following tables illustrate the 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 fifth 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

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 the Fund’s expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), 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 Fund’s prospectus.

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.29%	9.88%	$1,000.00	$1,098.80	$6.79
A-Class	1.54%	9.72%	1,000.00	1,097.20	8.10
C-Class	2.29%	9.37%	1,000.00	1,093.70	12.02
H-Class	1.54%	9.76%	1,000.00	1,097.60	8.10
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.29%	5.00%	$1,000.00	$1,018.60	$6.53
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

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, 2017 to September 30, 2017.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Inception Dates:
Investor Class	February 14, 1994
A-Class	March 31, 2004
C-Class	March 26, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	10.1%
Microsoft Corp.	7.3%
Amazon.com, Inc.	5.9%
Facebook, Inc. — Class A	5.1%
Alphabet, Inc. — Class C	4.2%
Alphabet, Inc. — Class A	3.7%
Comcast Corp. — Class A	2.3%
Intel Corp.	2.3%
Cisco Systems, Inc.	2.1%
Amgen, Inc.	1.7%
Top Ten Total	44.7%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
Investor Class Shares	9.88%	22.39%	16.42%	10.85%
A-Class Shares	9.72%	22.09%	16.10%	10.55%
A-Class Shares with sales charge‡	4.51%	16.30%	14.98%	10.01%
C-Class Shares	9.37%	21.24%	15.27%	9.77%
C-Class Shares with CDSC§	8.37%	20.24%	15.27%	9.77%
NASDAQ-100 Index	10.61%	24.08%	17.91%	12.24%

	6 month†	1 Year	Since Inception (09/18/14)
H-Class Shares	9.76%	22.14%	12.87%
NASDAQ-100 Index	10.61%	24.08%	14.60%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 86.7%
Technology - 33.1%
Apple, Inc.		681,717	$	105,066,224
Microsoft Corp.		1,016,557		75,723,330
Intel Corp.		620,183		23,616,569
NVIDIA Corp.		79,190		14,156,796
Broadcom Ltd.		53,663		13,015,424
Texas Instruments, Inc.		130,667		11,712,990
QUALCOMM, Inc.		194,814		10,099,158
Adobe Systems, Inc.*		65,120		9,714,601
Applied Materials, Inc.		140,756		7,331,980
Activision Blizzard, Inc.		99,636		6,427,518
Micron Technology, Inc.*		147,036		5,782,926
Cognizant Technology Solutions Corp. — Class A		77,952		5,654,638
Electronic Arts, Inc.*		40,747		4,810,591
Intuit, Inc.		33,815		4,806,464
Analog Devices, Inc.		48,525		4,181,399
Lam Research Corp.		21,441		3,967,443
Fiserv, Inc.*		27,778		3,582,251
Western Digital Corp.		38,918		3,362,515
Autodesk, Inc.*		28,930		3,247,682
Cerner Corp.*		43,763		3,121,177
Paychex, Inc.		47,434		2,844,143
Microchip Technology, Inc.		30,716		2,757,682
NetEase, Inc. ADR		10,012		2,641,266
Skyworks Solutions, Inc.		24,250		2,471,075
Check Point Software Technologies Ltd.*		21,571		2,459,525
Xilinx, Inc.		32,811		2,324,003
KLA-Tencor Corp.		20,700		2,194,200
CA, Inc.		55,600		1,855,928
Maxim Integrated Products, Inc.		37,228		1,776,148
Citrix Systems, Inc.*		19,997		1,536,170
Seagate Technology plc		37,988		1,260,062
Akamai Technologies, Inc.*		22,625		1,102,290
Total Technology				344,604,168
Communications - 32.0%
Amazon.com, Inc.*		63,402		60,951,512
Facebook, Inc. — Class A*		312,841		53,455,141
Alphabet, Inc. — Class C*		45,895		44,018,353
Alphabet, Inc. — Class A*		39,337		38,303,224
Comcast Corp. — Class A		620,834		23,889,691
Cisco Systems, Inc.		659,917		22,193,009
Charter Communications, Inc. — Class A*		34,036		12,369,363
Priceline Group, Inc.*		6,475		11,854,560
Netflix, Inc.*		56,983		10,333,867
Baidu, Inc. ADR*		36,364		9,006,999
T-Mobile US, Inc.*		109,684		6,763,115
eBay, Inc.*		141,262		5,432,937
JD.com, Inc. ADR*		121,154		4,628,083
Twenty-First Century Fox, Inc. — Class A		138,916		3,664,604
Sirius XM Holdings, Inc.1		608,834		3,360,764
Ctrip.com International Ltd. ADR*		60,458		3,188,555
Twenty-First Century Fox, Inc. — Class B		105,391		2,718,034
Symantec Corp.		81,108		2,661,153
Expedia, Inc.		18,324		2,637,557
Liberty Global plc — Class C*		78,604		2,570,351
Vodafone Group plc ADR		61,328		1,745,395
DISH Network Corp. — Class A*		30,049		1,629,557
MercadoLibre, Inc.		5,828		1,509,044
Viacom, Inc. — Class B		46,553		1,296,036
Liberty Global plc — Class A*		29,760		1,009,162
Liberty Ventures*		10,732		617,627
Discovery Communications, Inc. — Class C*		28,841		584,319

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NASDAQ-100® FUND

	Shares		Value
Discovery Communications, Inc. — Class A*		20,316	$	432,528
Liberty Global plc LiLAC — Class C*		15,940		371,402
Liberty Global plc LiLAC — Class A*		6,423		152,610
Total Communications				333,348,552
Consumer, Non-cyclical - 14.0%
Amgen, Inc.		96,304		17,955,881
Celgene Corp.*		103,256		15,056,790
Gilead Sciences, Inc.		172,359		13,964,526
Kraft Heinz Co.		160,787		12,469,032
PayPal Holdings, Inc.*		158,695		10,161,241
Biogen, Inc.*		27,905		8,737,614
Mondelez International, Inc. — Class A		198,982		8,090,608
Automatic Data Processing, Inc.		58,649		6,411,509
Regeneron Pharmaceuticals, Inc.*		13,890		6,210,497
Intuitive Surgical, Inc.*		4,921		5,146,776
Vertex Pharmaceuticals, Inc.*		33,275		5,059,131
Express Scripts Holding Co.*		76,226		4,826,630
Monster Beverage Corp.*		74,988		4,143,087
Alexion Pharmaceuticals, Inc.*		29,457		4,132,523
Illumina, Inc.*		19,269		3,838,385
Incyte Corp.*		27,149		3,169,374
Mylan N.V.*		70,780		2,220,369
BioMarin Pharmaceutical, Inc.*		23,132		2,152,895
Cintas Corp.1		13,916		2,007,800
Dentsply Sirona, Inc.		30,290		1,811,645
Verisk Analytics, Inc. — Class A*		21,718		1,806,720
IDEXX Laboratories, Inc.*		11,519		1,791,089
Henry Schein, Inc.*		20,868		1,710,967
Shire plc ADR		9,620		1,473,207
Hologic, Inc.*		37,018		1,358,190
Total Consumer, Non-cyclical				145,706,486
Consumer, Cyclical - 6.8%
Walgreens Boots Alliance, Inc.		141,234		10,906,090
Starbucks Corp.		190,568		10,235,408
Costco Wholesale Corp.		57,886		9,510,091
Tesla, Inc.*,1		22,026		7,513,068
Marriott International, Inc. — Class A		49,153		5,419,610
PACCAR, Inc.		46,376		3,354,840
Ross Stores, Inc.		51,365		3,316,638
American Airlines Group, Inc.		64,276		3,052,467
Dollar Tree, Inc.*		31,259		2,713,906
O’Reilly Automotive, Inc.*,1		11,616		2,501,738
Wynn Resorts Ltd.		13,537		2,015,930
Ulta Beauty, Inc.*		8,107		1,832,668
Fastenal Co.		38,008		1,732,405
Norwegian Cruise Line Holdings Ltd.*		30,113		1,627,608
Hasbro, Inc.		16,509		1,612,434
Liberty Interactive Corporation QVC Group — Class A*		55,690		1,312,613
Tractor Supply Co.		16,721		1,058,272
Mattel, Inc.1		45,233		700,207
Total Consumer, Cyclical				70,415,993
Industrial - 0.8%
CSX Corp.		120,541		6,540,554
J.B. Hunt Transport Services, Inc.		14,444		1,604,440
Total Industrial				8,144,994
Total Common Stocks
(Cost $522,461,685)				902,220,193

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NASDAQ-100® FUND

	Shares		Value
MUTUAL FUNDS† - 1.9%
Guggenheim Strategy Fund II2		356,055	$	8,922,739
Guggenheim Strategy Fund III2		319,831		8,008,556
Guggenheim Strategy Fund I2		104,674		2,628,367
Total Mutual Funds
(Cost $19,427,874)				19,559,662

	Face Amount
FEDERAL AGENCY NOTES†† - 8.9%
Freddie Mac3
1.24% due 08/24/184	$	12,500,000	12,498,213
1.12% due 01/26/224		10,000,000	9,992,880
0.80% due 10/27/17		7,500,000	7,498,680
0.74% due 10/25/194		7,412,000	7,404,106
1.00% due 10/28/194		5,750,000	5,747,913
Total Freddie Mac			43,141,792
Federal Farm Credit Bank5
1.17% (U.S. Prime Rate -308 bps) due 03/12/196		40,000,000	40,005,753
Federal Home Loan Bank5
1.08% (1 Month USD LIBOR -15 bps) due 12/13/176		7,500,000	7,499,996
1.00% due 10/26/184		2,000,000	1,998,044
Total Federal Home Loan Bank			9,498,040
Total Federal Agency Notes
(Cost $92,642,470)			92,645,585
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bill
1.01% due 12/28/177,8,9		2,000,000	1,994,937
1.05% due 12/14/178,9,10		250,000	249,515
Total U.S. Treasury Bills
(Cost $2,244,337)			2,244,452

REPURCHASE AGREEMENTS††,11 - 2.1%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/177	11,177,180	11,177,180
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/177	5,588,590	5,588,590
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/177	3,572,585	3,572,585
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17	1,820,762	1,820,762
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17	190,957	190,957
Total Repurchase Agreements
(Cost $22,350,074)		22,350,074

	Shares
SECURITIES LENDING COLLATERAL†,12 - 1.0%
First American Government Obligations Fund — Class Z, 0.89%13		10,139,049		10,139,049
Total Securities Lending Collateral
(Cost $10,139,049)				10,139,049
Total Investments - 100.8%
(Cost $669,265,489)			$	1,049,159,015
Other Assets & Liabilities, net - (0.8)%				(8,514,890	)
Total Net Assets - 100.0%			$	1,040,644,125

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NASDAQ-100® FUND

Futures Contracts
Description	Contracts		Expiration date	Notional Amount		Unrealized Gain
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		10	12/31/17	$	1,196,200	$	22,672

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
BNP Paribas	NASDAQ-100 Index		1.74	%	At Maturity	10/30/17		15,275	$	91,333,070	$	603,750
Barclays Bank plc	NASDAQ-100 Index		1.70	%	At Maturity	10/31/17		4,763		28,481,469		216,212
Goldman Sachs International	NASDAQ-100 Index		1.80	%	At Maturity	10/27/17		2,744		16,409,711		209,398
									$	136,224,250	$	1,029,360

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Affiliated issuer.
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	Security is a step up/step down bond. The coupon increases or decreases at regular intervals until the bond reaches full maturity.
5	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
6	Variable rate security. Rate indicated is rate effective at September 30, 2017.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
8	Rate indicated is the effective yield at the time of purchase.
9	Zero coupon rate security.
10	All or a portion of this security is pledged as futures collateral at September 30, 2017.
11	Repurchase Agreements — See Note 6.
12	Securities lending collateral — See Note 7.
13	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	LIBOR — London Interbank Offered Rate
	USD — United States Dollar
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
NASDAQ-100® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	902,220,193	$	—	$	—	$	—	$	—	$	902,220,193
Equity Futures Contracts		—		22,672		—		—		—		22,672
Equity Index Swap Agreements		—		—		—		1,029,360		—		1,029,360
Federal Agency Notes		—		—		92,645,585		—		—		92,645,585
Mutual Funds		19,559,662		—		—		—		—		19,559,662
Repurchase Agreements		—		—		22,350,074		—		—		22,350,074
Securities Lending Collateral		10,139,049		—		—		—		—		10,139,049
U.S. Treasury Bills		—		—		2,244,452		—		—		2,244,452
Total Assets	$	931,918,904	$	22,672	$	117,240,111	$	1,029,360	$	—	$	1,050,211,047

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
NASDAQ-100® FUND

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, 2016, 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/1601445/000089180416001923/gug65857-ncsr.htm.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain		Change in Unrealized			Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	12,527,345	$	75,000	$	(10,000,000	)	$	111,554	$	(85,532	)	$	2,628,367		104,674	$	110,460
Guggenheim Strategy Fund II		11,992,159		900,000		(4,000,000	)		23,487		7,093			8,922,739		356,055		139,700
Guggenheim Strategy Fund III		—		8,000,000		—			—		8,556			8,008,556		319,831		87,943
	$	24,519,504	$	8,975,000	$	(14,000,000	)	$	135,041	$	(69,883	)	$	19,559,662			$	338,103

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

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

NASDAQ-100^® FUND

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $9,926,791 of securities loaned (cost $627,487,541)	$	1,007,249,279
Investments in affiliated issuers, at value (cost $19,427,874)		19,559,662
Repurchase agreements, at value (cost $22,350,074)		22,350,074
Cash		54,418
Segregated cash with broker		872,745
Unrealized appreciation on swap agreements		1,029,360
Receivables:
Fund shares sold		1,653,265
Swap settlement		375,111
Dividends		245,801
Interest		144,671
Variation margin		51,942
Securities lending income		4,306
Total assets		1,053,590,634
Liabilities:
Payable for:
Return of securities loaned		10,139,049
Fund shares redeemed		1,255,233
Management fees		644,477
Transfer agent and administrative fees		214,826
Distribution and service fees		85,463
Securities purchased		75,000
Portfolio accounting fees		53,519
Miscellaneous		478,942
Total liabilities		12,946,509
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,040,644,125
Net assets consist of:
Paid in capital	$	604,241,337
Accumulated net investment loss		(954,609	)
Accumulated net realized gain on investments		56,411,839
Net unrealized appreciation on investments		380,945,558
Net assets	$	1,040,644,125
Investor Class:
Net assets	$	843,514,130
Capital shares outstanding		25,028,107
Net asset value per share	$	33.70
A-Class:
Net assets	$	69,284,865
Capital shares outstanding		2,216,013
Net asset value per share	$	31.27
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.83
C-Class:
Net assets	$	72,858,520
Capital shares outstanding		2,623,001
Net asset value per share	$	27.78
H-Class:
Net assets	$	54,986,610
Capital shares outstanding		1,759,094
Net asset value per share	$	31.26

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

STATEMENT OF OPERATIONS (Unaudited)

NASDAQ-100^® FUND

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $3,417)	$	5,160,246
Dividends from securities of affiliated issuers		338,103
Interest		703,475
Income from securities lending, net		43,408
Other income		1,122
Total investment income		6,246,354
Expenses:
Management fees		3,875,939
Distribution and service fees:
C-Class		345,056
A-Class		91,244
H-Class		75,287
Transfer agent and administrative fees		1,291,980
Registration fees		473,492
Portfolio accounting fees		324,252
Custodian fees		68,908
Trustees’ fees*		40,853
Line of credit fees		3,425
Miscellaneous		610,527
Total expenses		7,200,963
Net investment loss		(954,609	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	9,491,026
Investments in affiliated issuers		135,041
Swap agreements		13,611,373
Futures contracts		4,483,814
Net realized gain		27,721,254
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		68,442,007
Investments in affiliated issuers		(69,883	)
Swap agreements		622,762
Futures contracts		(256,862	)
Net change in unrealized appreciation (depreciation)		68,738,024
Net realized and unrealized gain		96,459,278
Net increase in net assets resulting from operations	$	95,504,669

* 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 | 17

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(954,609	)	$	(2,577,210	)
Net realized gain on investments		27,721,254			119,120,680
Net change in unrealized appreciation (depreciation) on investments		68,738,024			29,744,202
Net increase in net assets resulting from operations		95,504,669			146,287,672
Distributions to shareholders from:
Net realized gains
Investor Class		—			(11,493,337	)
A-Class		—			(1,213,212	)
C-Class		—			(908,738	)
H-Class		—			(730,868	)
Total distributions to shareholders		—			(14,346,155	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		542,963,496			730,466,228
A-Class		31,510,391			379,758,963
C-Class		17,950,359			26,908,652
H-Class		94,788,154			149,256,328
Distributions reinvested
Investor Class		—			11,102,330
A-Class		—			1,121,838
C-Class		—			870,733
H-Class		—			730,637
Cost of shares redeemed
Investor Class		(537,276,958	)		(761,641,400	)
A-Class		(32,327,479	)		(386,462,077	)
C-Class		(9,671,896	)		(15,520,363	)
H-Class		(98,680,225	)		(272,703,570	)
Net increase (decrease) from capital share transactions		9,255,842			(136,111,701	)
Net increase (decrease) in net assets		104,760,511			(4,170,184	)
Net assets:
Beginning of period		935,883,614			940,053,798
End of period	$	1,040,644,125		$	935,883,614
Accumulated net investment loss at end of period	$	(954,609	)	$	—

18 | 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, 2017 (Unaudited)			Year Ended March 31, 2017
Capital share activity:
Shares sold
Investor Class		16,887,216			26,388,585
A-Class		1,070,652			15,502,252
C-Class		674,329			1,153,374
H-Class		3,158,490			5,959,584
Shares issued from reinvestment of distributions
Investor Class		—			407,126
A-Class		—			44,254
C-Class		—			38,409
H-Class		—			28,833
Shares redeemed
Investor Class		(16,650,665	)		(27,904,023	)
A-Class		(1,076,642	)		(15,841,438	)
C-Class		(359,585	)		(682,673	)
H-Class		(3,275,502	)		(11,346,835	)
Net increase (decrease) in shares		428,293			(6,252,552	)

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

FINANCIAL HIGHLIGHTS

NASDAQ-100^® FUND

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

Investor Class	Period Ended Sept. 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013
Per Share Data
Net asset value, beginning of period	$	30.68		$	25.75		$	25.38		$	21.38		$	18.38		$	17.92
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.06	)		(.05	)		(.01	)		.02			.02
Net gain (loss) on investments (realized and unrealized)		3.03			5.47			.96			4.39			5.01			.44
Total from investment operations		3.02			5.41			.91			4.38			5.03			.46
Less distributions from:
Net realized gains		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Total distributions		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Net asset value, end of period	$	33.70		$	30.68		$	25.75		$	25.38		$	21.38		$	18.38
Total Returnc		9.88	%		21.21	%		3.49	%		20.53	%		27.74	%		2.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	843,514		$	760,485		$	667,018		$	769,257		$	632,598		$	461,269
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		(0.21	%)		(0.19	%)		(0.05	%)		0.10	%		0.13	%
Total expensesd		1.29	%		1.29	%		1.25	%		1.26	%		1.29	%		1.26	%
Portfolio turnover rate		35	%		72	%		228	%		267	%		141	%		94	%

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.

A-Class	Period Ended Sept. 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013
Per Share Data
Net asset value, beginning of period	$	28.49		$	24.04		$	23.78		$	20.10		$	17.42		$	17.03
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.13	)		(.10	)		(.06	)		(.03	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		2.83			5.06			.90			4.12			4.74			.41
Total from investment operations		2.78			4.93			.80			4.06			4.71			.39
Less distributions from:
Net realized gains		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Total distributions		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Net asset value, end of period	$	31.27		$	28.49		$	24.04		$	23.78		$	20.10		$	17.42
Total Returnc		9.72	%		20.76	%		3.26	%		20.24	%		27.42	%		2.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,285		$	63,311		$	60,499		$	70,821		$	21,751		$	23,656
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.51	%)		(0.42	%)		(0.29	%)		(0.14	%)		(0.09	%)
Total expensesd		1.54	%		1.53	%		1.51	%		1.50	%		1.54	%		1.52	%
Portfolio turnover rate		35	%		72	%		228	%		267	%		141	%		94	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

C-Class	Period Ended Sept. 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013
Per Share Data
Net asset value, beginning of period	$	25.41		$	21.62		$	21.60		$	18.42		$	16.22		$	15.97
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.28	)		(.26	)		(.21	)		(.16	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		2.52			4.55			.82			3.77			4.39			.38
Total from investment operations		2.37			4.27			.56			3.56			4.23			.25
Less distributions from:
Net realized gains		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Total distributions		—			(.48	)		(.54	)		(.38	)		(2.03	)		—
Net asset value, end of period	$	27.78		$	25.41		$	21.62		$	21.60		$	18.42		$	16.22
Total Returnc		9.37	%		19.98	%		2.48	%		19.37	%		26.46	%		1.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	72,859		$	58,647		$	38,900		$	32,324		$	19,175		$	13,015
Ratios to average net assets:
Net investment income (loss)		(1.09	%)		(1.21	%)		(1.19	%)		(1.05	%)		(0.89	%)		(0.84	%)
Total expensesd		2.29	%		2.28	%		2.26	%		2.25	%		2.29	%		2.26	%
Portfolio turnover rate		35	%		72	%		228	%		267	%		141	%		94	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	28.49		$	24.00		$	23.76		$	22.91
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.14	)		(.13	)		.01
Net gain (loss) on investments (realized and unrealized)		2.82			5.11			.91			1.22
Total from investment operations		2.77			4.97			.78			1.23
Less distributions from:
Net realized gains		—			(.48	)		(.54	)		(.38	)
Total distributions		—			(.48	)		(.54	)		(.38	)
Net asset value, end of period	$	31.26		$	28.49		$	24.00		$	23.76
Total Returnc		9.76	%		20.92	%		3.18	%		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	54,987		$	53,441		$	173,638		$	12,009
Ratios to average net assets:
Net investment income (loss)		(0.31	%)		(0.57	%)		(0.51	%)		0.07	%
Total expensesd		1.54	%		1.54	%		1.51	%		1.47	%
Portfolio turnover rate		35	%		72	%		228	%		267	%

a	Unaudited figures for the period ended September 30, 2017. 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 operation of the Class.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory 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 seven separate classes of shares: Investor 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 require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2017, the Trust consisted of fifty-three funds (the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”), a non-diversified investment company. Only Investor 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.

Security Investors, LLC which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

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, 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.

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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) Valuation of Investments

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 and/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, to 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 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.

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. Money market funds are valued at net asset value.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 values of over-the-counter (“OTC”) swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, 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 using methods established or ratified by the Board. 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 market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

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) Interests in Securities

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) Futures Contracts

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

26 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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 an agreement are recognized as realized gains or losses.

(e) Foreign Taxes

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Fund and reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2017, if any, are disclosed in the Fund’s statement of assets and liabilities.

(f) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(g) Distributions

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(h) Class Allocations

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) Cash

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, which was 1.06% at September 30, 2017.

(j) Indemnifications

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.

Note 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.

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.

28 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

Liquidity: the ability to buy or sell exposure with little price/market impact.

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 segregated cash with broker on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

The following table represents the Fund’s use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long
NASDAQ-100® Fund	Index exposure, Liquidity	$	12,187,775

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 over-the-counter (“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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

The following table represents the Fund’s use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long
NASDAQ-100® Fund	Index exposure, Liquidity	$	131,824,289

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, 2017:

Derivative Investment Type	Asset Derivatives
Equity contracts	Variation margin
	Unrealized appreciation on swap agreements

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at September 30, 2017:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2017
NASDAQ-100® Fund	$	22,672	$	1,029,360	$	1,052,032

* 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, 2017:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the period ended September 30, 2017:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Total
NASDAQ-100® Fund	$	4,483,814	$	13,611,373	$	18,095,187

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	$	(256,862	)	$	622,762	$	365,900

In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. The Fund uses, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Note 3 – 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 from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the 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,arereported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

The 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:

Fund	Instrument	Gross Amounts of Recognized Assets		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
NASDAQ-100® Fund	Swap equity contracts	$	1,029,360	$	—	$	1,029,360	$	—	$	—	$	1,029,360

The following table presents deposits held by others in connection with derivative investments as of September 30, 2017. The derivatives tables following the Schedule of Investments list each counteryparty for which cash collateral may have been pledged or received at period end. The Fund has the right to offset these deposits against any related liabilities outstanding with each counterparty.

Counterparty	Cash Pledged		Cash Received
NASDAQ-100® Fund
Barclays Bank plc	$	850,995		—
Goldman Sachs Group		21,750		—
NASDAQ-100® Fund Total		872,745		—

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 4 – Fair Value Measurement

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

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

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

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

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

The 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.

Note 5 – 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.

GI 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 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, 2017, GFD retained sales charges of $90,853 relating to sales of A-Class shares of the Trust.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Trust’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Trust’s securities and cash. For providing the aforementioned services, MUIS is entitled to receive a monthly fee equal to an annual percentage of the Funds’ average daily net assets subject to certain minimum monthly fees and out of pocket expenses.

Note 6 – 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 joint account includes other Funds in the Guggenheim complex not covered in this report. 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.

34 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2017, the repurchase agreements in the joint account were as follows:

 

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
BNP Paribas					U.S Treasury Note
1.00%					1.13%
Due 10/02/17	$	126,905,733	$	126,916,309	02/28/21	$	131,780,200	$	129,443,901
Bank of America Merrill Lynch					U.S. Treasury Note
1.05%					1.63%
Due 10/02/17		63,452,867		63,458,419	05/31/23		65,690,800		64,722,010
RBC Capital Markets LLC					U.S. TIP Notes
0.98%					1.13%
Due 10/02/17		35,069,861		35,072,725	01/15/21		30,577,200		35,771,371
HSBC Securities, Inc.					U.S. Treasury Strips
0.91%					0.00%
Due 10/02/17		23,879,390		23,881,201	08/15/39		44,888,000		24,357,007
UMB Financial Corp.					Federal Home Loan Bank
0.91%					1.25%
Due 10/02/17		2,504,407		2,504,597	06/08/18		2,000,000		2,007,147
					U.S. Treasury Note
					1.63%
					05/15/26		573,300		547,365
							2,573,300		2,554,512

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, 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.

Note 7 – Portfolio Securities Loaned

The Fund may lend its securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Fund act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Fund receives cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Fund’s securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund - Class Z. The Fund bears the risk of loss on cash collateral investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At September 30, 2017, the Fund participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
NASDAQ-100® Fund	$	9,926,791	$	(9,926,791	)	$	—	$	10,139,049	$	—	$	10,139,049

^(a) Actual collateral received by the Fund is greater than the amount shown due to over collateralization.

In the event of counterparty default, the Fund has the right to collect the collateral to offset losses incurred. There is potential loss to the Fund in the event the Fund is delayed or prevented from exercising its right 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 Fund seeks to assert its rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 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 years, and

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, 2017, 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:

	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain
NASDAQ-100® Fund	$	709,682,140	$	343,630,678	$	(3,101,770	)	$	340,528,908

Note 9 – Securities Transactions

For the period ended September 30, 2017, 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	$	369,456,001	$	314,995,011

The Fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2017, the Fund engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		��	Realized Gain
NASDAQ-100® Fund	$	226,369,231	$	180,767,234		$	8,122,520

Note 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 11, 2018. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 37

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Rate, minus 2%, which shall be paid monthly, averaging 1.92% for the period ended September 30, 2017. The Fund did not have any borrowings outstanding under this agreement at September 30, 2017.

Note 11 – 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 Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

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

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

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

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. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but will wait to do so until it has resolved outstanding motions to dismiss filed by other defendants. Accordingly, the timing of the appeal is uncertain.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law.

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”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.) (“Reichman”).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek 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. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

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 Bankruptcy 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 Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment. On May 30, 2017, the shareholder defendants filed a motion to remand the proceedings in the Creditor Trust and Reichman Actions to the Bankruptcy Court, for consideration of the collateral estoppel ground for dismissal raised by the Bankruptcy Court’s ruling in the Blavatnik Action. On August 18, 2017, the plaintiff in the Creditor Trust action filed a notice of dismissal of claims brought against defendants who had not answered the Third Amended Complaint. The same day, the plaintiff in the Reichman action filed a notice of dismissal of all claims against named defendants who had not filed an answer and withdrew his request for class certification of a defendant class. On September 5, 2017, the Court

40 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

entered an order dismissing the Creditor Trust and Reichman actions with prejudice. The Court’s order dismissed the actions as to all defendants as well as to unnamed members of the putative defendant class in the Reichman action.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set. On April 21, 2017, the Bankruptcy Court issued an Opinion and Order After Trial in a related Lyondell litigation (the “Blavatnik Action”) rejecting claims for intentional fraudulent transfer and constructive fraudulent transfer in connection with the 2007 LBO. Based on this related ruling in the Blavatnik Action, the shareholder defendants filed a motion to dismiss the Litigation Trust Action on the grounds of collateral estoppel on May 30, 2017. Although the Bankruptcy Court had not yet ruled on the motion to dismiss, on August 15, 2017, the plaintiff in the Litigation Trust action filed a notice of dismissal of all claims against the defendants who joined the motion to dismiss. On August 18, 2017, the Litigation Trust plaintiff also withdrew his request for class certification of a defendant class in the Litigation Trust action. On September 5, 2017, the Court entered an order dismissing the Litigation Trust action with prejudice. The Court’s order dismissed the action as to all defendants as well as to unnamed members of the putative defendant class.

As a result of the dismissals above, there are no longer claims pending against the Rydex Series Funds related to the Lyondell merger.

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

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 https://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 https://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 https://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 Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 25, 2017, 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 Security Investors, LLC (the “Advisor”) applicable to the NASDAQ-100^® Fund, a series of the Trust (the “Fund”). 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 26, 2017 (together, with the May 25 meeting, the “Meetings”). The

42 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Board considered the materials provided by the Advisor and the review conducted at the April 26 meeting to be an integral part of the Trustees’ deliberations and their process in considering the renewal of the Investment Advisory Agreement.

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 the independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the renewal or approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Fund. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Fund’s 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Fund’s 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; (d) the Fund’s overall fees and operating expenses compared with those of similar funds; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Fund; and (k) the Advisor’s maintenance of operational resources necessary to manage the Fund in a professional manner consistent with the best interests of the Fund and its shareholders. In its deliberations, the Trustees did not identify any particular factor or factors that was 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 for the Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to such Fund; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 43

OTHER INFORMATION (Unaudited)(continued)

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 (including the extent to which the Fund uses derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. 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 Fund in the past, and whether these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Fund to receive high quality services at a cost that was appropriate and reasonable.

Fund Expenses and Performance of the Fund and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of the Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Fund’s fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, the 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 the Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer group compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Fund and its peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of the Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. The Board also discussed the correlation between the Fund’s assets under management and tracking error, noting that the Fund’s ability to replicate an underlying index rather than employ representative sampling depends, in part, upon the Fund’s size. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Fund are reasonable in relation to the nature and quality of the services provided by the Advisor.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

Costs of Services Provided to the Fund and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Fund to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Fund’s 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 Fund by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Fund 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 Fund’s asset levels. In light of the relatively small size of the Fund, the Board concluded that the Fund has not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as the 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 intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under the distribution agreement, Distribution Plans, and Distribution and Shareholder Services Plans 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 affiliate’s commitment to the Fund, 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 Fund and its shareholders.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

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: Vice Chairman, Guggenheim Investments (2010-present). Former: President and CEO, certain other funds in the Fund Complex (2012-November 2017); Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	226	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle (1959)	Trustee, Member of the Audit Committee, Chairwoman and Member of the Compliance and Risk Oversight Committee, and Member of the Nominating and Governance Committee from 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	133	Infinity Property & Casualty Corporation (2014-present).

46 | 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 - continued
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Nominating and 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 (3) (2009-present).
John O. Demaret (1940)	Trustee and Member of the Audit Committee from 1997 to present; Member of the Compliance and Risk Oversight Committee from 2010 to present; Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman and Trustee of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Member of the Audit Committee from 2005 to present; Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; Member of the Compliance and Risk Oversight Committee from 2015 to present; Member of the Nominating and Governance Committee from 2015 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	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 - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; and Chairman and Member of the Nominating and 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; Member of the Nominating and 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.
Sandra G. Sponem (1958)	Trustee, Member of the Audit Committee, and Chairwoman and Member of the Investment and Performance Committee, from 2016 to present.	Current: Retired Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	133	None.

48 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
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.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2014-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager of Mutual Fund Administration, Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Treasurer and Assistant Treasurer, certain other funds in the Fund Complex (2010-present); Managing Director, Guggenheim Investments (2015-present); Chief Financial Officer, Guggenheim Specialized Products, LLC (2016-present). Former: Managing Director and Director, Transparent Value, LLC (2010-2016); Director, Guggenheim Partners Investment Management, LLC (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).

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
Amy J. Lee (1961)	President (November 2017-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (November 2017-present); 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).
Max E. Mathiasen (1978)	Secretary (November 2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
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).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).

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
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (November 2017-Present)	Current: Vice President, Guggenheim Investments (July 2017-present); Assistant Treasurer, certain other funds in the Fund Complex (November 2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (February-June 2017); Senior Analyst of US Fund Administration, HGINA (2014-January 2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 51

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

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 personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

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 Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes 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 Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. 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 your personal 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. In connection with servicing your accounts or 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 funds or the services offered through another Guggenheim Investments

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

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 personal 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 share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2017

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

GuggenheimInvestments.com RSTF-SEMI-0917x0318

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
LONG SHORT EQUITY FUND	10
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND	23
EMERGING MARKETS 2x STRATEGY FUND	38
INVERSE EMERGING MARKETS 2x STRATEGY FUND	46
EMERGING MARKETS BOND STRATEGY FUND	52
NOTES TO FINANCIAL STATEMENTS	59
OTHER INFORMATION	75
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	78
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	82

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2017

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semiannual shareholder report for a selection of our alternative strategy funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2017.

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,

Security Investors, LLC
October 31, 2017

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.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

Alternative funds may not be suitable for all investors because of the sophisticated and aggressive investment techniques the funds employ, such as leverage, derivatives and short selling. ● The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. ● The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. ● Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, such as droughts, floods, weather, livestock disease, embargos, tariff s and international economic, political and regulatory developments. ● No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2017

The Long Short Equity Fund may not be suitable for all investors. ● The Fund is subject to the risk that the Adviser’s use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. ● It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. ● The Fund’s loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The use of derivatives, such as futures, options and swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund may invest in American Depositary Receipts (“ADRs”) therefore subjecting the value of the Fund’s portfolio to fluctuations in foreign exchange rates. ● This Fund is considered nondiversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. See the prospectus for more information on these and additional risks.

The Event Driven and Distressed Strategies Fund is subject to a number of risks and is not suitable for all investors. ● The Fund’s use of derivatives such as futures, options, structured notes, exchange-traded notes and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default and adverse tax treatment. ● The Fund’s use of short selling involves increased risk and costs, including paying more for a security than it received from its sale and the risk of unlimited losses. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The Fund’s investments in foreign markets may increase the Fund’s volatility due to the impact of diplomatic, political or economic developments on the country in question. ● Additionally, the Fund’s exposure to foreign currencies subjects the fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. ● The Fund’s fixed income investments will change in value in response to interest rate changes and other factors. ● The Fund’s exposure to the high yield bond market may subject the Fund to greater volatility because (i) it will be affected by the ability of high yield security issuers’ ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. ● The Fund’s exposure to the event driven market is considered speculative and may subject the Fund to additional losses. ● In certain circumstances the Fund may be subject to liquidity risk and it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified Fund. See the prospectus for more information on these and additional risks.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus. ● The leveraged and Inverse Emerging Markets Funds’ investments in developed and emerging foreign markets may increase the Funds’ volatility due to the impact of diplomatic, political or economic developments on the country in question. ● Additionally, the Funds’ direct and indirect exposure to foreign currencies subjects the Funds to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. ● A Fund’s investment in the securities of non-U.S. companies in the form of American Depositary Receipts (ADRs) poses special risks associated with international investing, including fluctuating exchange rates, government regulations and differences in liquidity, which may affect the volatility and performance of a fund.

The Emerging Markets Bond Strategy Fund may not be suitable for all investors. Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the Fund may lose money. ● The Fund’s investments in bonds and financial instruments that in combination have economic characteristics similar to emerging markets bonds carries additional risks when compared to investing in U.S. securities, due to the impact of diplomatic, political or economic developments in the country in question. ● The Fund’s investments in derivatives, including credit default swaps, may pose risks in addition to those associated with investing directly in securities or other investments, including illiquidity of the derivatives, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, lack of availability and counterparty risk. To the extent the Fund invests in derivatives to seek to hedge risk or limit leveraged exposure created by other investments, there is no guarantee that such hedging strategies will be effective at managing risk or limiting exposure to leveraged investments. ● The Fund’s exposure to high yield securities may subject the Fund to greater volatility. ● The Fund’s market value will change in response to interest rate changes and market conditions among other factors. In general, bond prices rise when interest rates fall and vice versa. ● The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. ● The Funds use of leverage will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund’s portfolio. ● The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The Fund’s investments in other investment vehicles subject the Fund to those risks and expenses affecting the investment vehicle. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● See the prospectus for more information on these and other risks.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2017

Over the past few months, the equity markets have faced massive hurricanes in the South, rising tensions with North Korea and ongoing uncertainty surrounding domestic policy. Despite it all, the major stock indices continue to trade at or near record levels. The market’s resiliency seems to underscore that, at the end of the day, it’s fundamentals that drive equity markets and not political headlines or geopolitical tensions.

A noticeable shift in market sentiment during the third quarter led to a rotation into cyclical and small capitalization stocks. Value factors also began to outperform in September, a significant change from year-to-date performance. From a macro standpoint, the primary drivers of the value trade include rising inflationary expectations, economic growth and the prospects of tax reform.

Outside the U.S., both the European and emerging markets outperformed the Standard & Poor’s 500^® (“S&P 500”) Index* on a dollar denominated basis. Renewed interest in both regions reflected attractive relative valuation and the synchronized global economic expansion.

Assuming no major geopolitical or other unforeseen shocks, we expect the U.S. economy will grow by between 2.0–2.5% in real terms in 2017 and 2018, supported by a strong labor market at home, a synchronized upswing in the global economy, and favorable financial conditions. Risks to our growth outlook are to the upside if Washington delivers on promises to cut taxes. Third quarter economic data was less distorted by the recent hurricanes than expected, and rebuilding efforts should be a positive for growth heading into 2018.

The labor market is steadily tightening, as seen in the drop in the unemployment rate to a cycle low of 4.2% in September, underscoring the robust—and unsustainable—underlying trend in hiring. Leading indicators, including hiring intentions surveys, point to further declines in the unemployment rate. Meanwhile, inflation continues to be well below the U.S. Federal Reserve’s (the “Fed”) 2% longer-run goal, with core personal consumption expenditure inflation coming in at 1.3% in September. However, inflation lags Gross Domestic Product (“GDP”) growth by about six quarters; because growth has accelerated over the past year, and the dollar has depreciated, inflation will likely move closer to 2% by the second quarter of 2018.

The firming U.S. economy, coupled with synchronized global growth and stabilization in the U.S. dollar, is likely to be supportive of the U.S. earnings environment. On the valuation front, while elevated relative to long-term averages, multiples still remain well below extreme levels. Economic and financial conditions are supportive enough for the Fed to continue to resume a quarterly pattern of rate increases in December, and to begin balance sheet normalization this year. Interest rates are expected to remain supportive of risk assets.

For the six months ended September 30, 2017, the S&P 500 returned 7.71%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 10.99%. The return of the MSCI Emerging Markets Index* was 14.66%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.31% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 4.19%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.47% 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.

Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including U.S. Treasuries, government-related and corporate securities, mortgage-backed securities or “MBS” (agency fixed-rate and hybrid adjustable-rate mortgage, or “ARM”, pass-throughs), asset-backed securities (“ABS”), and commercial mortgage-backed securities (“CMBS”) (agency and non-agency).

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2017

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

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.

BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index tracks the performance of U.S. dollar-denominated emerging market and crossover sovereign debt publicly issued in the eurobond or U.S. domestic market. Qualifying countries must have a BBB1 or lower foreign currency long-term sovereign debt rating (based on an average of Moody’s, S&P and Fitch). Countries that are not rated, or that are rated “D” or “SD” by one or several rating agencies qualify for inclusion in the index but individual non-performing securities are removed. Qualifying securities must have at least one year remaining term to final maturity, at least 18 months to maturity at point of issuance, a fixed or floating coupon and a minimum amount outstanding of $250 million. Local currency debt is excluded from the Index. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest.

BNY Mellon Emerging Markets 50 ADR Index is capitalization-weighted and designed to track the performance of approximately 50 emerging market-based depositary receipts.

Credit Suisse Event Driven Liquid Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of event driven hedge fund managers, as represented by the Event Driven sector of the Dow Jones Credit Suisse Hedge Fund Index.

HFRX Equity Hedge Index is designed to be representative of the overall composition of the equity hedge segment of the hedge fund universe. In an equity hedge strategy both long and short positions primarily in equities are maintained. Equities which are believed to be undervalued are bought and equities which are believed to be overvalued are sold.

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.

Russell 3000^® Index measures the performance of 3,000 publicly held U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

6 | THE RYDEX FUNDS 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, 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, 2017 and ending September 30, 2017.

The following tables illustrate the Funds’ 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 fifth 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 the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), 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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	1.88%	8.54%	$1,000.00	$1,085.40	$9.77
C-Class	2.63%	8.16%	1,000.00	1,081.60	13.65
P-Class	1.88%	8.52%	1,000.00	1,085.20	9.77
Institutional Class	1.61%	8.63%	1,000.00	1,086.30	8.37
Event Driven and Distressed Strategies Fund
A-Class	1.90%	2.99%	1,000.00	1,029.90	9.67
C-Class	2.65%	2.61%	1,000.00	1,026.10	13.46
P-Class	1.90%	2.99%	1,000.00	1,029.90	9.67
Institutional Class	1.65%	3.08%	1,000.00	1,030.80	8.40
Emerging Markets 2x Strategy Fund
A-Class	1.77%	31.58%	1,000.00	1,315.80	10.28
C-Class	2.64%	31.07%	1,000.00	1,310.70	15.29
H-Class	1.79%	31.57%	1,000.00	1,315.70	10.39
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.80%	(27.36%)	1,000.00	726.40	7.79
C-Class	2.55%	(27.64%)	1,000.00	723.60	11.02
H-Class	1.79%	(27.40%)	1,000.00	726.00	7.75
Emerging Markets Bond Strategy Fund
A-Class	1.60%	4.05%	1,000.00	1,040.50	8.18
C-Class	2.35%	3.66%	1,000.00	1,036.60	12.00
H-Class	1.59%	4.04%	1,000.00	1,040.40	8.13

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2017	Ending Account Value September 30, 2017	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	1.88%	5.00%	$1,000.00	$1,015.89	$9.45
C-Class	2.63%	5.00%	1,000.00	1,012.13	13.19
P-Class	1.88%	5.00%	1,000.00	1,015.94	9.45
Institutional Class	1.61%	5.00%	1,000.00	1,017.25	8.10
Event Driven and Distressed Strategies Fund
A-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
C-Class	2.65%	5.00%	1,000.00	1,011.78	13.36
P-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
Institutional Class	1.65%	5.00%	1,000.00	1,016.80	8.34
Emerging Markets 2x Strategy Fund
A-Class	1.77%	5.00%	1,000.00	1,016.19	8.95
C-Class	2.64%	5.00%	1,000.00	1,011.83	13.31
H-Class	1.79%	5.00%	1,000.00	1,016.09	9.05
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.80%	5.00%	1,000.00	1,016.04	9.10
C-Class	2.55%	5.00%	1,000.00	1,012.28	12.86
H-Class	1.79%	5.00%	1,000.00	1,016.09	9.05
Emerging Markets Bond Strategy Fund
A-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
C-Class	2.35%	5.00%	1,000.00	1,013.29	11.86
H-Class	1.59%	5.00%	1,000.00	1,017.10	8.04

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	1.70%
C-Class	2.45%
P-Class	1.70%
Institutional Class	1.45%

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, 2017 to September 30, 2017.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:
Institutional Class	November 30, 2011
A-Class	March 31, 2004
C-Class	March 22, 2002
P-Class	March 22, 2002

Ten Largest Holdings (% of Total Net Assets)
CVS Health Corp.	1.8%
Pfizer, Inc.	1.7%
Intel Corp.	1.7%
International Business Machines Corp.	1.6%
Verizon Communications, Inc.	1.6%
Sysco Corp.	1.6%
Walgreens Boots Alliance, Inc.	1.5%
Union Pacific Corp.	1.5%
Corning, Inc.	1.4%
AbbVie, Inc.	1.3%
Top Ten Total	15.7%

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

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	10 Year
A-Class Shares	8.54%	10.22%	6.06%	1.01%
A-Class Shares with sales charge‡	3.38%	4.96%	5.03%	0.52%
C-Class Shares	8.16%	9.40%	5.26%	0.26%
C-Class Shares with CDSC§	7.16%	8.40%	5.26%	0.26%
P-Class Shares	8.52%	10.19%	6.05%	1.01%
Russell 3000 Index	7.72%	18.71%	14.23%	7.57%
S&P 500 Index	7.71%	18.61%	14.22%	7.44%
HFRX Equity Hedge Index	4.25%	7.91%	3.64%	(0.97%)

	6 month†	1 Year	5 Year	Since Inception (11/30/11)
Institutional Class Shares	8.63%	10.48%	6.32%	6.12%
Russell 3000 Index	7.72%	18.71%	14.23%	15.14%
S&P 500 Index	7.71%	18.61%	14.22%	15.23%
HFRX Equity Hedge Index	4.25%	7.91%	3.64%	3.55%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The HFRX Equity Hedge Index, Russell 3000 Index and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 98.9%
Consumer, Non-cyclical - 28.6%
Pfizer, Inc.1		16,076	$	573,913
Sysco Corp.		9,865		532,217
AbbVie, Inc.1		4,805		426,972
US Foods Holding Corp.*		13,052		348,488
Merck & Company, Inc.1		5,365		343,521
UnitedHealth Group, Inc.		1,627		318,649
DaVita, Inc.*,1		5,229		310,550
Archer-Daniels-Midland Co.1		6,748		286,858
Aetna, Inc.1		1,759		279,699
Medtronic plc		3,519		273,673
Humana, Inc.1		1,007		245,335
Halyard Health, Inc.*		5,213		234,741
HealthSouth Corp.		4,915		227,810
Darling Ingredients, Inc.*		12,486		218,755
Johnson & Johnson1		1,656		215,297
Zimmer Biomet Holdings, Inc.1		1,717		201,044
WellCare Health Plans, Inc.*		1,169		200,764
Danaher Corp.1		2,339		200,639
PepsiCo, Inc.		1,799		200,462
Cardinal Health, Inc.		2,915		195,072
Eli Lilly & Co.1		2,197		187,931
Baxter International, Inc.1		2,965		186,054
McKesson Corp.1		1,191		182,950
Universal Corp.		3,068		175,796
Thermo Fisher Scientific, Inc.		910		172,172
Dean Foods Co.		15,757		171,436
United Natural Foods, Inc.*		3,969		165,071
Boston Beer Company, Inc. — Class A*		1,054		164,635
Universal Health Services, Inc. — Class B1		1,434		159,088
Conagra Brands, Inc.1		4,701		158,612
Mylan N.V.*		4,902		153,776
United Rentals, Inc.*,2		1,017		141,098
Spectrum Brands Holdings, Inc.		1,326		140,450
Sanderson Farms, Inc.		869		140,361
USANA Health Sciences, Inc.*		2,371		136,807
Hologic, Inc.*,1		3,470		127,314
Sabre Corp.		6,930		125,432
Centene Corp.*,1		1,194		115,543
Flowers Foods, Inc.		5,781		108,741
FTI Consulting, Inc.*		3,010		106,795
SpartanNash Co.		3,914		103,212
CoreLogic, Inc.*		2,225		102,840
Masimo Corp.*		1,152		99,717
TreeHouse Foods, Inc.*		1,472		99,699
United Therapeutics Corp.*		839		98,322
Total System Services, Inc.		1,489		97,530
Pilgrim’s Pride Corp.*		3,378		95,969
Total Consumer, Non-cyclical				9,551,810
Industrial - 17.0%
Union Pacific Corp.		4,329		502,034
Corning, Inc.1		16,115		482,161
Cummins, Inc.1		2,236		375,715
Benchmark Electronics, Inc.*		10,759		367,420
Snap-on, Inc.		2,246		334,676
Plexus Corp.*		5,461		306,253
Timken Co.		5,676		275,570
Arrow Electronics, Inc.*		3,164		254,417
Gentex Corp.		11,944		236,491
Oshkosh Corp.		2,644		218,236
Avnet, Inc.		5,513		216,661
Huntington Ingalls Industries, Inc.		917		207,645
Eaton Corporation plc		2,407		184,833
Belden, Inc.		2,255		181,595
Regal Beloit Corp.		2,135		168,665
AECOM*		4,550		167,486
Jabil, Inc.		5,797		165,504
Sanmina Corp.*		3,877		144,031
USG Corp.*		4,396		143,529
Vishay Intertechnology, Inc.		6,888		129,494
ITT, Inc.		2,676		118,467
EnerSys		1,568		108,459
Crane Co.		1,330		106,387
Methode Electronics, Inc.		2,499		105,833
Owens-Illinois, Inc.*		4,167		104,842
Tech Data Corp.*		938		83,341
Total Industrial				5,689,745
Technology - 15.0%
Intel Corp.1		14,744		561,451
International Business Machines Corp.1		3,778		548,113
Apple, Inc.1		2,509		386,687
KLA-Tencor Corp.1		3,466		367,396
Texas Instruments, Inc.		3,256		291,868
NetApp, Inc.1		6,004		262,735
HP, Inc.1		12,676		253,013
Convergys Corp.		9,751		252,453
Applied Materials, Inc.1		4,645		241,958
NCR Corp.*		5,644		211,763
CSRA, Inc.		5,377		173,516
Xerox Corp.		5,063		168,547
j2 Global, Inc.		1,969		145,470
Western Digital Corp.1		1,651		142,646
MKS Instruments, Inc.		1,506		142,242
Akamai Technologies, Inc.*		2,457		119,705
Skyworks Solutions, Inc.		1,172		119,427
Kulicke & Soffa Industries, Inc.*		5,253		113,307
Cirrus Logic, Inc.*		2,079		110,852
CACI International, Inc. — Class A*		783		109,111
Science Applications International Corp.		1,572		105,088
Seagate Technology plc		3,162		104,884
CA, Inc.		3,018		100,741
Total Technology				5,032,973
Consumer, Cyclical - 14.5%
CVS Health Corp.1		7,298		593,471
Walgreens Boots Alliance, Inc.1		6,525		503,861
Wal-Mart Stores, Inc.1		5,208		406,953
Delta Air Lines, Inc.1		5,927		285,799
Lear Corp.		1,465		253,562
Tailored Brands, Inc.2		15,147		218,723

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
LONG SHORT EQUITY FUND

	Shares		Value
Alaska Air Group, Inc.1		2,817	$	214,853
Southwest Airlines Co.1		3,598		201,416
Brinker International, Inc.		6,273		199,858
Goodyear Tire & Rubber Co.		5,553		184,637
United Continental Holdings, Inc.*		2,899		176,491
Lowe’s Companies, Inc.1		2,203		176,108
CalAtlantic Group, Inc.		4,610		168,864
Cooper-Standard Holdings, Inc.*		1,350		156,560
Anixter International, Inc.*		1,772		150,620
Ford Motor Co.1		12,197		145,998
Nu Skin Enterprises, Inc. — Class A		2,225		136,793
JetBlue Airways Corp.*		7,241		134,176
Bed Bath & Beyond, Inc.		5,010		117,585
Ralph Lauren Corp. — Class A		1,266		111,775
American Airlines Group, Inc.		2,202		104,573
Hawaiian Holdings, Inc.*		2,701		101,423
Dick’s Sporting Goods, Inc.		3,675		99,262
Total Consumer, Cyclical				4,843,361
Financial - 9.7%
Principal Financial Group, Inc.		6,367		409,652
Northern Trust Corp.1		4,080		375,074
Lazard Ltd. — Class A		6,494		293,658
CIT Group, Inc.		5,592		274,288
LaSalle Hotel Properties REIT		7,546		218,985
Franklin Resources, Inc.1		4,656		207,239
RenaissanceRe Holdings Ltd.		1,405		189,872
Old Republic International Corp.		9,269		182,507
Synchrony Financial1		5,212		161,833
Torchmark Corp.		1,706		136,634
Waddell & Reed Financial, Inc. — Class A		6,277		125,979
Hospitality Properties Trust REIT		4,177		119,003
State Street Corp.1		1,234		117,896
PacWest Bancorp		2,166		109,405
E*TRADE Financial Corp.*,1		2,421		105,580
Sabra Health Care, Inc. REIT		4,777		104,807
Capital One Financial Corp.1		1,226		103,793
Total Financial				3,236,205
Communications - 5.5%
Verizon Communications, Inc.1		10,802		534,591
Juniper Networks, Inc.1		10,456		290,990
Motorola Solutions, Inc.1		3,243		275,233
InterDigital, Inc.		2,322		171,248
ARRIS International plc*		4,709		134,159
AT&T, Inc.1		3,321		130,084
Viavi Solutions, Inc.*		11,345		107,324
CommScope Holding Company, Inc.*		3,148		104,545
Viacom, Inc. — Class B		3,468		96,549
Total Communications				1,844,723
Utilities - 4.4%
Hawaiian Electric Industries, Inc.		10,351		345,413
Entergy Corp.1		3,858		294,597
Portland General Electric Co.		5,949		271,512
American Electric Power Company, Inc.1		3,749		263,330
Vectren Corp.		2,885		189,746
PNM Resources, Inc.		2,957		119,167
Total Utilities				1,483,765
Energy - 2.8%
Devon Energy Corp.1		9,910		363,795
Exxon Mobil Corp.1		3,819		313,082
ConocoPhillips1		2,880		144,144
Marathon Oil Corp.		8,919		120,942
Total Energy				941,963
Basic Materials - 1.4%
Mosaic Co.		6,597		142,429
LyondellBasell Industries N.V. — Class A		1,277		126,487
AK Steel Holding Corp.*,2		18,705		104,561
International Paper Co.1		1,816		103,185
Total Basic Materials				476,662
Total Common Stocks
(Cost $31,668,503)				33,101,207
MONEY MARKET FUND† - 3.5%
STIT — Treasury Obligations Portfolio 0.88%3		1,170,021		1,170,021
Total Money Market Fund
(Cost $1,170,021)				1,170,021
SECURITIES LENDING COLLATERAL†,4 - 1.1%
First American Government Obligations Fund — Class Z, 0.89%3		352,633		352,633
Total Securities Lending Collateral
(Cost $352,633)				352,633
Total Investments - 103.5%
(Cost $33,191,157)			$	34,623,861
Other Assets & Liabilities, net - (3.5)%				(1,157,218	)
Total Net Assets - 100.0%			$	33,466,643

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
LONG SHORT EQUITY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Notional Value		Unrealized Gain (Loss)
OTC Equity Swap Agreements Sold Short††
Morgan Stanley	Long Short Equity Portfolio Short Custom Basket Swap5		(1.63	%)	At Maturity	5/31/19	$	36,582,334	$	(1,690,350	)
OTC Equity Swap Agreements††
Morgan Stanley	Long Short Equity Portfolio Long Custom Basket Swap6		0.81	%	At Maturity	5/31/19	$	27,408,371	$	1,055,596

	Shares		Unrealized Gain
CUSTOM BASKET OF LONG SECURITIES6
Amgen, Inc.		2,066	$	65,063
Gilead Sciences, Inc.		3,541		57,265
ManpowerGroup, Inc.		2,761		46,949
Teradata Corp.*		7,555		46,600
Lam Research Corp.		1,532		44,982
Tyson Foods, Inc. — Class A		3,475		44,237
Biogen, Inc.*		711		43,587
Cigna Corp.		1,633		37,658
Cisco Systems, Inc.		18,211		34,586
Deluxe Corp.		6,930		34,333
PACCAR, Inc.		4,157		33,771
Reinsurance Group of America, Inc. — Class A		2,242		33,614
Dolby Laboratories, Inc. — Class A		3,736		31,499
Jacobs Engineering Group, Inc.		5,443		31,328
Aflac, Inc.		5,046		30,977
Robert Half International, Inc.		6,366		30,209
JPMorgan Chase & Co.		3,933		28,819
Citigroup, Inc.		2,319		28,601
Berkshire Hathaway, Inc. — Class B*		1,585		28,451
Anadarko Petroleum Corp.		5,018		28,256
Discover Financial Services		6,023		25,730
FirstEnergy Corp.		15,318		24,535
WW Grainger, Inc.		1,460		24,174
Public Service Enterprise Group, Inc.		5,733		23,640
FedEx Corp.		1,574		21,378
VeriSign, Inc.*		1,358		21,370
Owens & Minor, Inc.		9,494		20,873
Textron, Inc.		3,832		20,830
Big Lots, Inc.		4,158		19,849
Cullen/Frost Bankers, Inc.		2,115		19,464
Microsoft Corp.		4,481		19,398
TE Connectivity Ltd.		5,051		18,941
Norfolk Southern Corp.		1,755		18,847
Teradyne, Inc.		3,369		18,026
Curtiss-Wright Corp.		1,196		18,012
Allstate Corp.		3,243		17,996
Federated Investors, Inc. — Class B		6,496		17,676
Oracle Corp.		7,552		17,656
Express Scripts Holding Co.*		4,434		16,543
Alphabet, Inc. — Class C*		527		16,444
WESCO International, Inc.*		1,954		15,514
Parker-Hannifin Corp.		921		14,841

		Unrealized Gain (Loss)
Accenture plc — Class A	1,378	$	14,838
Exelon Corp.	10,907		14,720
Waste Management, Inc.	2,538		14,651
Prudential Financial, Inc.	4,707		14,109
Ingredion, Inc.	1,994		12,589
Maxim Integrated Products, Inc.	4,504		11,745
Freeport-McMoRan, Inc.*	7,516		11,585
Raymond James Financial, Inc.	2,167		10,905
Cerner Corp.*	1,679		10,540
Laboratory Corporation of America Holdings*	843		10,450
Bristol-Myers Squibb Co.	1,746		10,132
CenterPoint Energy, Inc.	14,797		9,914
PG&E Corp.	6,092		9,334
Illinois Tool Works, Inc.	831		9,113
Iridium Communications, Inc.*	31,351		9,064
Leucadia National Corp.	7,605		9,004
DST Systems, Inc.	2,350		8,599
Fidelity National Information Services, Inc.	1,074		8,419
Ameren Corp.	7,321		8,083
Unum Group	2,751		8,058
Allison Transmission Holdings, Inc.	4,877		7,861
Casey’s General Stores, Inc.	1,232		7,706
CDW Corp.	1,601		7,638
Wells Fargo & Co.	2,547		7,088
Ingersoll-Rand plc	1,737		7,088
Anthem, Inc.	1,635		6,341
Procter & Gamble Co.	2,147		6,239
MAXIMUS, Inc.	1,921		5,615
Legg Mason, Inc.	2,876		5,230
OGE Energy Corp.	2,876		4,625
Western Union Co.	17,482		2,988
Hubbell, Inc.	1,984		2,471
HRG Group, Inc.*	7,086		1,630
Zayo Group Holdings, Inc.*	3,899		980
Bank of New York Mellon Corp.	4,604		744
Hill-Rom Holdings, Inc.	1,397		675
Alliance Data Systems Corp.	444		570
CoStar Group, Inc.*	254		556
Performance Food Group Co.*	2,400		196
Catalent, Inc.*	1,705		104
National Fuel Gas Co.	5,405		19
GoDaddy, Inc. — Class A*	924		(202	)
WEC Energy Group, Inc.	2,813		(222	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
LONG SHORT EQUITY FUND

	Shares			Unrealized Gain (Loss)
Pinnacle West Capital Corp.		1,286		$	(390	)
Cloudera, Inc.*		1,951			(1,230	)
Altria Group, Inc.		3,652			(1,370	)
Portola Pharmaceuticals, Inc.*		1,749			(1,948	)
Dr Pepper Snapple Group, Inc.		1,658			(2,784	)
Xcel Energy, Inc.		5,678			(3,511	)
Carlisle Companies, Inc.		5,175			(3,660	)
Philip Morris International, Inc.		897			(3,760	)
Telephone & Data Systems, Inc.		11,326			(4,308	)
CMS Energy Corp.		4,690			(6,023	)
Travelers Companies, Inc.		3,334			(6,395	)
Consolidated Edison, Inc.		3,339			(7,084	)
United Technologies Corp.		1,872			(8,910	)
AmerisourceBergen Corp. — Class A		1,822			(9,609	)
HCA Healthcare, Inc.*		4,267			(10,016	)
Henry Schein, Inc.*		1,454			(12,535	)
Fluor Corp.		6,007			(13,502	)
Edison International		4,770			(13,984	)
F5 Networks, Inc.*		2,068			(15,823	)
Kroger Co.		7,419			(20,417	)
Energizer Holdings, Inc.		7,114			(23,365	)
Omnicom Group, Inc.		3,925			(35,673	)
UGI Corp.		8,552			(36,602	)
Kimberly-Clark Corp.		3,717			(37,020	)
MEDNAX, Inc.*		3,571			(39,636	)
Quest Diagnostics, Inc.		3,225			(48,878	)
ATN International, Inc.		6,658			(90,051	)
Total Custom Basket of Long Securities					1,025,830
CUSTOM BASKET OF SHORT SECURITIES5
NewMarket Corp.		(1,018	)		39,899
Pool Corp.		(1,868	)		18,943
Charter Communications, Inc. — Class A*		(587	)		18,620
iRobot Corp.*		(1,058	)		17,992
Ultimate Software Group, Inc.*		(567	)		17,338
Sensient Technologies Corp.		(4,636	)		14,903
Dominion Energy, Inc.		(3,714	)		14,079
Ecolab, Inc.		(3,678	)		13,620
Papa John’s International, Inc.		(1,815	)		12,918
Martin Marietta Materials, Inc.		(744	)		12,850
Sun Communities, Inc.		(2,763	)		11,977
NIKE, Inc. — Class B		(1,819	)		11,850
American Campus Communities, Inc.		(3,550	)		11,302
Vulcan Materials Co.		(2,429	)		11,062
Toro Co.		(1,396	)		10,997
Wright Medical Group N.V.*		(3,809	)		10,802
Dunkin’ Brands Group, Inc.		(1,974	)		10,117
RPM International, Inc.		(4,161	)		9,069
Axon Enterprise, Inc.*		(4,972	)		8,523
Equity LifeStyle Properties, Inc.		(2,028	)		8,338
Crown Castle International Corp.		(2,090	)		7,833
Southern Co.		(5,075	)		7,096
Education Realty Trust, Inc.		(3,122	)		6,845
CoStar Group, Inc.*		(533	)		6,675
MarketAxess Holdings, Inc.		(1,027	)		5,854
Wendy’s Co.		(12,984	)		5,819
Domino’s Pizza, Inc.		(521	)		5,587
Yum! Brands, Inc.		(1,989	)		4,994
Essex Property Trust, Inc.		(799	)		4,882
PTC, Inc.*		(2,607	)		4,589
Sempra Energy		(1,815	)		4,577
Healthcare Trust of America, Inc. — Class A		(6,637	)		4,236
NiSource, Inc.		(9,937	)		4,117
Cable One, Inc.		(131	)		4,074
Atlassian Corporation plc — Class A*		(7,167	)		3,268
Retail Opportunity Investments Corp.		(5,412	)		3,092
Corporate Office Properties Trust		(4,324	)		2,959
SBA Communications Corp.*		(1,345	)		2,959
Kilroy Realty Corp.		(1,731	)		2,914
McCormick & Company, Inc.		(1,643	)		2,537
Southern Copper Corp.		(2,383	)		2,497
TripAdvisor, Inc.*		(2,826	)		2,335
Black Hills Corp.		(4,731	)		2,249
Bio-Rad Laboratories, Inc. — Class A*		(971	)		1,993
Realty Income Corp.		(2,667	)		1,910
SPS Commerce, Inc.*		(1,834	)		1,860
Rexford Industrial Realty, Inc.		(5,383	)		1,337
Equinix, Inc.		(505	)		620
Autodesk, Inc.*		(1,500	)		548
Public Storage		(641	)		392
SL Green Realty Corp.		(1,122	)		(12	)
Federal Realty Investment Trust		(2,043	)		(80	)
Mohawk Industries, Inc.*		(807	)		(212	)
Alliant Energy Corp.		(11,002	)		(358	)
Howard Hughes Corp.*		(1,202	)		(697	)
Lamb Weston Holdings, Inc.		(2,685	)		(776	)
Bank of Hawaii Corp.		(3,035	)		(916	)
Workday, Inc. — Class A*		(1,208	)		(1,050	)
ANSYS, Inc.*		(1,923	)		(1,063	)
Semtech Corp.*		(3,560	)		(1,517	)
Aqua America, Inc.		(4,020	)		(1,682	)
Madison Square Garden Co. — Class A*		(727	)		(1,814	)
Boston Properties, Inc.		(1,085	)		(2,055	)
Atmos Energy Corp.		(4,175	)		(2,247	)
Home BancShares, Inc.		(6,076	)		(2,279	)
AptarGroup, Inc.		(1,451	)		(2,343	)
Ladder Capital Corp. — Class A		(16,067	)		(3,162	)
Great Western Bancorp, Inc.		(5,256	)		(3,224	)
Extra Space Storage, Inc.		(1,395	)		(3,482	)
Trimble, Inc.*		(2,579	)		(3,662	)
CareTrust REIT, Inc.		(11,383	)		(3,805	)
Terreno Realty Corp.		(4,674	)		(3,969	)
CyrusOne, Inc.		(2,492	)		(4,269	)
Bio-Techne Corp.		(2,097	)		(4,327	)
Ball Corp.		(11,453	)		(4,421	)
Marriott International, Inc. — Class A		(1,483	)		(4,590	)
Rayonier, Inc.		(4,637	)		(4,593	)
Tyler Technologies, Inc.*		(1,274	)		(4,597	)
EastGroup Properties, Inc.		(2,361	)		(4,795	)
Vail Resorts, Inc.		(830	)		(5,016	)
Ingevity Corp.*		(1,617	)		(5,670	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
LONG SHORT EQUITY FUND

	Shares			Unrealized Loss
Compass Minerals International, Inc.		(4,507	)	$	(5,792	)
Balchem Corp.		(2,013	)		(5,803	)
American Tower Corp. — Class A		(1,364	)		(5,898	)
WD-40 Co.		(927	)		(6,031	)
Aspen Technology, Inc.*		(3,044	)		(6,344	)
Provident Financial Services, Inc.		(9,337	)		(6,438	)
Air Products & Chemicals, Inc.		(1,114	)		(6,472	)
First Industrial Realty Trust, Inc.		(7,862	)		(6,508	)
BB&T Corp.		(4,238	)		(6,590	)
Service Corporation International		(5,101	)		(6,681	)
BWX Technologies, Inc.		(2,559	)		(6,811	)
salesforce.com, Inc.*		(2,314	)		(6,873	)
Acadia Realty Trust		(5,156	)		(6,904	)
Royal Gold, Inc.		(2,105	)		(7,065	)
Blackbaud, Inc.		(1,321	)		(7,101	)
Mid-America Apartment Communities, Inc.		(2,182	)		(7,265	)
Global Payments, Inc.		(1,160	)		(7,284	)
People’s United Financial, Inc.		(21,620	)		(7,294	)
Watsco, Inc.		(1,064	)		(7,374	)
Laredo Petroleum, Inc.*		(8,182	)		(7,396	)
Alexandria Real Estate Equities, Inc.		(2,892	)		(7,451	)
PolyOne Corp.		(2,857	)		(7,766	)
CoreSite Realty Corp.		(1,181	)		(7,995	)
Douglas Emmett, Inc.		(5,417	)		(8,080	)
NVIDIA Corp.		(597	)		(8,263	)
WABCO Holdings, Inc.*		(899	)		(8,280	)
Cabot Oil & Gas Corp. — Class A		(3,940	)		(8,501	)
McDonald’s Corp.		(1,458	)		(9,369	)
Adobe Systems, Inc.*		(1,636	)		(9,395	)
Allegion plc		(1,920	)		(9,859	)
ServiceNow, Inc.*		(1,343	)		(10,088	)
Medidata Solutions, Inc.*		(1,351	)		(10,153	)
Meritage Homes Corp.*		(2,295	)		(10,894	)
CommVault Systems, Inc.*		(2,369	)		(10,978	)
Eaton Vance Corp.		(3,584	)		(11,135	)
Diamondback Energy, Inc.*		(1,104	)		(11,203	)
Tractor Supply Co.		(1,719	)		(11,377	)
Facebook, Inc. — Class A*		(862	)		(11,885	)
Jack in the Box, Inc.		(2,277	)		(12,030	)
Silicon Laboratories, Inc.*		(1,815	)		(12,161	)
Bright Horizons Family Solutions, Inc.*		(2,114	)		(12,247	)
Willis Towers Watson plc		(1,369	)		(12,291	)
Iron Mountain, Inc.		(3,170	)		(12,325	)
Horace Mann Educators Corp.		(5,856	)		(13,524	)
KeyCorp		(10,341	)		(13,543	)
Old National Bancorp		(14,362	)		(13,641	)
Chemical Financial Corp.		(4,384	)		(13,738	)
National Instruments Corp.		(3,340	)		(13,741	)
United Parcel Service, Inc. — Class B		(1,229	)		(13,896	)
Arthur J Gallagher & Co.		(2,795	)		(14,128	)
S&P Global, Inc.		(1,268	)		(14,326	)
HB Fuller Co.		(1,935	)		(15,032	)
WR Grace & Co.		(4,407	)		(15,173	)
Matador Resources Co.*		(4,189	)		(15,364	)
Spire, Inc.		(3,861	)		(15,694	)
Genuine Parts Co.		(1,188	)		(15,852	)
Amphenol Corp. — Class A		(1,653	)		(15,904	)
Cadence Design Systems, Inc.*		(3,567	)		(16,009	)
AutoZone, Inc.*		(198	)		(16,330	)
BankUnited, Inc.		(7,010	)		(16,456	)
Investors Bancorp, Inc.		(26,263	)		(16,897	)
Neurocrine Biosciences, Inc.*		(1,891	)		(17,203	)
Red Hat, Inc.*		(1,282	)		(17,330	)
VF Corp.		(2,439	)		(17,463	)
Ross Stores, Inc.		(3,078	)		(17,597	)
KBR, Inc.		(6,614	)		(17,940	)
International Flavors & Fragrances, Inc.		(2,963	)		(18,027	)
Guidewire Software, Inc.*		(2,931	)		(18,249	)
FirstCash, Inc.		(1,868	)		(18,723	)
Ollie’s Bargain Outlet Holdings, Inc.*		(3,116	)		(18,745	)
IPG Photonics Corp.*		(594	)		(19,873	)
Summit Materials, Inc. — Class A*		(5,314	)		(19,967	)
First Midwest Bancorp, Inc.		(13,521	)		(20,931	)
Century Aluminum Co.*		(7,945	)		(21,163	)
First Republic Bank		(3,146	)		(22,373	)
Trex Company, Inc.*		(1,330	)		(22,555	)
TopBuild Corp.*		(1,868	)		(22,682	)
AO Smith Corp.		(4,718	)		(22,713	)
Graco, Inc.		(2,117	)		(22,904	)
Goldman Sachs Group, Inc.		(956	)		(23,942	)
O’Reilly Automotive, Inc.*		(1,357	)		(25,303	)
John Bean Technologies Corp.		(1,555	)		(25,395	)
DCT Industrial Trust, Inc.		(4,794	)		(26,281	)
Cousins Properties, Inc.		(31,025	)		(27,794	)
Intercontinental Exchange, Inc.		(3,305	)		(28,049	)
ABIOMED, Inc.*		(977	)		(28,722	)
Healthcare Services Group, Inc.		(4,675	)		(28,931	)
CME Group, Inc. — Class A		(1,632	)		(29,118	)
Monolithic Power Systems, Inc.		(3,430	)		(29,827	)
Avery Dennison Corp.		(2,376	)		(30,026	)
Cognex Corp.		(1,608	)		(30,449	)
Cimarex Energy Co.		(2,301	)		(30,516	)
Rollins, Inc.		(8,759	)		(30,748	)
CF Industries Holdings, Inc.		(3,769	)		(31,373	)
Mercury Systems, Inc.*		(2,728	)		(34,089	)
Albemarle Corp.		(1,442	)		(35,148	)
Monro, Inc.		(3,316	)		(35,663	)
PayPal Holdings, Inc.*		(3,394	)		(36,242	)
FMC Corp.		(2,555	)		(36,463	)
Scotts Miracle-Gro Co. — Class A		(5,178	)		(37,804	)
Xylem, Inc.		(4,149	)		(40,050	)
Take-Two Interactive Software, Inc.*		(1,709	)		(43,384	)
CarMax, Inc.*		(3,308	)		(43,993	)
Moody’s Corp.		(2,084	)		(46,415	)
Woodward, Inc.		(4,576	)		(46,617	)
Bottomline Technologies de, Inc.*		(6,928	)		(49,005	)
Allegheny Technologies, Inc.*		(5,721	)		(50,350	)
Total Custom Basket of Short Securities					(1,641,869	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
LONG SHORT EQUITY 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	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
2	All or portion of this security is on loan at September 30, 2017 — See Note 7.
3	Rate indicated is the 7 day yield as of September 30, 2017.
4	Securities lending collateral — See Note 7.
5	Total Return based on the return of the custom short basket of securities +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2017.
6	Total Return based on the return of the custom long basket of securities +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2017.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	33,101,207	$	—	$	—	$	—	$	33,101,207
Equity Swap Agreements		—		—		1,055,596		—		1,055,596
Money Market Fund		1,170,021		—		—		—		1,170,021
Securities Lending Collateral		352,633		—		—		—		352,633
Total Assets	$	34,623,861	$	—	$	1,055,596	$	—	$	35,679,457

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Swap Agreements	$	—	$	—	$	1,690,350	$	—	$	1,690,350

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

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.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized			Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	2,110,841	$	5,121	$	(2,116,805	)	$	7,830	$	(6,988	)	$	—		—	$	—
Guggenheim Strategy Fund II		14,592		49		(14,641	)		49		(48	)		—		—		—
	$	2,125,433	$	5,170	$	(2,131,446	)	$	7,879	$	(7,036	)	$	—		—	$	—

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $348,175 of securities loaned (cost $33,191,157)	$	34,623,861
Cash		885
Unrealized appreciation on swap agreements		1,055,596
Receivables:
Dividends		29,906
Fund shares sold		1,314
Securities lending income		90
Total assets		35,711,652
Liabilities:
Unrealized depreciation on swap agreements		1,690,350
Payable for:
Return of securities loaned		352,633
Swap settlement		109,452
Fund shares redeemed		31,781
Management fees		24,452
Distribution and service fees		13,932
Transfer agent and administrative fees		6,792
Portfolio accounting fees		2,717
Miscellaneous		12,900
Total liabilities		2,245,009
Commitments and contingent liabilities (Note 12)		—
Net assets	$	33,466,643
Net assets consist of:
Paid in capital	$	48,650,454
Accumulated net investment loss		(78,935	)
Accumulated net realized loss on investments		(15,902,826	)
Net unrealized appreciation on investments		797,950
Net assets	$	33,466,643
A-Class:
Net assets	$	4,317,215
Capital shares outstanding		251,742
Net asset value per share	$	17.15
Maximum offering price per share (Net asset value divided by 95.25%)	$	18.01
C-Class:
Net assets	$	12,374,248
Capital shares outstanding		811,518
Net asset value per share	$	15.25
P-Class:
Net assets	$	14,433,532
Capital shares outstanding		838,950
Net asset value per share	$	17.20
Institutional Class:
Net assets	$	2,341,648
Capital shares outstanding		133,817
Net asset value per share	$	17.50

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends	$	287,366
Interest		13,379
Income from securities lending, net		2,593
Total investment income		303,338
Expenses:
Management fees		148,805
Distribution and service fees:
A-Class		5,421
C-Class		63,485
P-Class		17,370
Transfer agent and administrative fees		41,335
Short sales dividend expense		26,830
Portfolio accounting fees		16,534
Prime broker interest expense		3,152
Custodian fees		2,195
Trustees’ fees*		1,508
Line of credit fees		52
Miscellaneous		28,636
Total expenses		355,323
Net investment loss		(51,985	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,532,314
Investments in affiliated issuers		7,879
Swap agreements		1,055,303
Futures contracts		3,211
Securities sold short		(31,728	)
Net realized gain		3,566,979
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(454,086	)
Investments in affiliated issuers		(7,036	)
Securities sold short		233,941
Swap agreements		(634,754	)
Futures contracts		(2,656	)
Net change in unrealized appreciation (depreciation)		(864,591	)
Net realized and unrealized gain		2,702,388
Net increase in net assets resulting from operations	$	2,650,403

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

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(51,985	)	$	(347,916	)
Net realized gain on investments		3,566,979			2,025,026
Net change in unrealized appreciation (depreciation) on investments		(864,591	)		(240,014	)
Net increase in net assets resulting from operations		2,650,403			1,437,096
Capital share transactions:
Proceeds from sale of shares
A-Class		340,156			1,205,531
C-Class		52,684			193,581
P-Class		1,512,530			2,123,896
Institutional Class		444,703			3,533,696
Cost of shares redeemed
A-Class		(988,796	)		(7,699,271	)
C-Class		(1,898,469	)		(4,150,079	)
P-Class		(1,997,865	)		(12,473,835	)
Institutional Class		(268,222	)		(2,115,992	)
Net decrease from capital share transactions		(2,803,279	)		(19,382,473	)
Net decrease in net assets		(152,876	)		(17,945,377	)
Net assets:
Beginning of period		33,619,519			51,564,896
End of period	$	33,466,643		$	33,619,519
Accumulated net investment loss at end of period	$	(78,935	)	$	(26,950	)
Capital share activity:
Shares sold
A-Class		20,389			78,033
C-Class		3,620			13,820
P-Class		90,134			136,345
Institutional Class		26,053			222,295
Shares redeemed
A-Class		(60,658	)		(494,029	)
C-Class		(130,399	)		(297,144	)
P-Class		(120,261	)		(800,988	)
Institutional Class		(15,796	)		(132,630	)
Net decrease in shares		(186,918	)		(1,274,298	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	15.80		$	15.26		$	16.16		$	15.07		$	13.48		$	13.28
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(.09	)		(.10	)		(.06	)		(.13	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		1.35			.63			(.80	)		1.15			1.72			.30
Total from investment operations		1.35			.54			(.90	)		1.09			1.59			.25
Less distributions from:
Net investment income		—			—			—			—			—			(.05	)
Total distributions		—			—			—			—			—			(.05	)
Net asset value, end of period	$	17.15		$	15.80		$	15.26		$	16.16		$	15.07		$	13.48
Total Returnd		8.54	%		3.54	%		(5.57	%)		7.23	%		11.80	%		1.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,317		$	4,615		$	10,803		$	6,063		$	7,552		$	13,106
Ratios to average net assets:
Net investment income (loss)		(0.06	%)		(0.59	%)		(0.66	%)		(0.42	%)		(0.91	%)		(0.35	%)
Total expensese,f		1.88	%		2.25	%		2.53	%		2.17	%		2.34	%		1.92	%
Portfolio turnover rate		68	%		223	%		224	%		331	%		256	%		183	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	14.11		$	13.72		$	14.64		$	13.76		$	12.40		$	12.31
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.18	)		(.21	)		(.16	)		(.24	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		1.20			.57			(.71	)		1.04			1.60			.28
Total from investment operations		1.14			.39			(.92	)		.88			1.36			.14
Less distributions from:
Net investment income		—			—			—			—			—			(.05	)
Total distributions		—			—			—			—			—			(.05	)
Net asset value, end of period	$	15.25		$	14.11		$	13.72		$	14.64		$	13.76		$	12.40
Total Returnd		8.16	%		2.77	%		(6.28	%)		6.40	%		10.97	%		1.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,374		$	13,235		$	16,760		$	19,952		$	22,354		$	23,554
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(1.30	%)		(1.45	%)		(1.16	%)		(1.79	%)		(1.12	%)
Total expensese,f		2.63	%		2.98	%		3.24	%		2.92	%		3.11	%		2.69	%
Portfolio turnover rate		68	%		223	%		224	%		331	%		256	%		183	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016*			Year Ended March 31, 2015*			Year Ended March 31, 2014*			Year Ended March 28, 2013*
Per Share Data
Net asset value, beginning of period	$	15.86		$	15.31		$	16.21		$	15.12		$	13.53		$	13.33
Income (loss) from investment operations:
Net investment income (loss)b		—	c		(.09	)		(.11	)		(.07	)		(.16	)		(.04	)
Net gain (loss) on investments (realized and unrealized)		1.34			.64			(.79	)		1.16			1.75			.29
Total from investment operations		1.34			.55			(.90	)		1.09			1.59			.25
Less distributions from:
Net investment income		—			—			—			—			—			(.05	)
Total distributions		—			—			—			—			—			(.05	)
Net asset value, end of period	$	17.20		$	15.86		$	15.31		$	16.21		$	15.12		$	13.53
Total Returnd		8.52	%		3.53	%		(5.55	%)		7.21	%		11.75	%		1.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,434		$	13,779		$	23,477		$	20,020		$	29,287		$	26,257
Ratios to average net assets:
Net investment income (loss)		(0.04	%)		(0.58	%)		(0.67	%)		(0.43	%)		(1.07	%)		(0.29	%)
Total expensese,f		1.88	%		2.24	%		2.50	%		2.17	%		2.36	%		1.88	%
Portfolio turnover rate		68	%		223	%		224	%		331	%		256	%		183	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	16.11		$	15.50		$	16.38		$	15.24		$	13.60		$	13.33
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.03	)		(.05	)		—	c		(.12	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		1.37			.64			(.83	)		1.14			1.76			.31
Total from investment operations		1.39			.61			(.88	)		1.14			1.64			.29
Less distributions from:
Net investment income		—			—			—			—			—			(.02	)
Total distributions		—			—			—			—			—			(.02	)
Net asset value, end of period	$	17.50		$	16.11		$	15.50		$	16.38		$	15.24		$	13.60
Total Returnd		8.63	%		3.94	%		(5.37	%)		7.48	%		12.06	%		2.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,342		$	1,990		$	525		$	302		$	12		$	11
Ratios to average net assets:
Net investment income (loss)		0.25	%		(0.20	%)		(0.29	%)		(0.01	%)		(0.82	%)		(0.17	%)
Total expensese,f		1.61	%		1.96	%		2.27	%		1.95	%		2.11	%		1.72	%
Portfolio turnover rate		68	%		223	%		224	%		331	%		256	%		183	%

a	Unaudited figures for the period ended September 30, 2017. 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 is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.
f	Excluding interest and dividend expense related to short sales, the operating expense ratios for the years or periods would be:

	9/30/17	3/31/17	3/31/16	3/31/15	3/31/14	3/28/13
A-Class	1.70%	1.67%	1.66%	1.66%	1.68%	1.65%
C-Class	2.45%	2.42%	2.41%	2.41%	2.42%	2.40%
P-Class	1.70%	1.67%	1.66%	1.66%	1.67%	1.65%
Institutional Class	1.45%	1.43%	1.41%	1.40%	1.42%	1.41%

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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:
Institutional Class	June 30, 2010
A-Class	June 30, 2010
C-Class	June 30, 2010
P-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	34.9%
Guggenheim Strategy Fund I	33.7%
iShares iBoxx $ High Yield Corporate Bond ETF	0.5%
Charter Communications, Inc. — Class A	0.4%
Netflix, Inc.	0.3%
Micron Technology, Inc.	0.1%
Royal Bank of Scotland Group plc ADR	0.1%
NXP Semiconductor N.V.	0.1%
Equinix, Inc.	0.1%
Nokia Oyj ADR	0.1%
Total	70.3 %

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 23

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2017

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	Since Inception (06/30/10)
A-Class Shares	2.99%	4.41%	3.86%	4.94%
A-Class Shares with sales charge‡	(1.91%)	(0.53%)	2.85%	4.24%
C-Class Shares	2.61%	3.66%	3.08%	4.14%
C-Class Shares with CDSC§	1.61%	2.66%	3.08%	4.14%
P-Class Shares	2.99%	4.41%	3.86%	4.94%
Institutional Class Shares	3.08%	4.67%	4.11%	5.20%
Credit Suisse Event Driven Liquid Index	3.44%	5.84%	3.83%	5.41%
S&P 500 Index	7.71%	18.61%	14.22%	15.54%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Credit Suisse Event Driven Liquid Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
COMMON STOCKS† - 8.1%
Communications - 1.7%
Charter Communications, Inc. — Class A*		121	$	43,975
Netflix, Inc.*		170		30,830
Nokia Oyj ADR		2,233		13,352
Sprint Corp.*		1,580		12,292
DISH Network Corp. — Class A*		183		9,924
Sirius XM Holdings, Inc.1		1,786		9,859
CBS Corp. — Class B		157		9,106
Expedia, Inc.		60		8,636
Symantec Corp.		239		7,842
Level 3 Communications, Inc.*		141		7,514
Viacom, Inc. — Class B		163		4,538
VeriSign, Inc.*		39		4,149
CDW Corp.		61		4,026
CenturyLink, Inc.1		212		4,007
Zayo Group Holdings, Inc.*		96		3,304
CommScope Holding Company, Inc.*		75		2,491
EchoStar Corp. — Class A*		37		2,118
Cable One, Inc.		2		1,444
ViaSat, Inc.*,1		22		1,415
AMC Networks, Inc. — Class A*		24		1,403
Tribune Media Co. — Class A		34		1,389
Sinclair Broadcast Group, Inc. — Class A		39		1,250
Nexstar Media Group, Inc. — Class A		18		1,121
TEGNA, Inc.		83		1,106
Cogent Communications Holdings, Inc.		17		831
West Corp.		33		775
EW Scripps Co. — Class A*		32		612
Plantronics, Inc.		13		575
General Communication, Inc. — Class A*		14		571
Time, Inc.		40		540
Consolidated Communications Holdings, Inc.		27		515
GTT Communications, Inc.*		16		506
Gogo, Inc.*		41		484
Gray Television, Inc.*		27		424
Cincinnati Bell, Inc.*		16		318
ORBCOMM, Inc.*		29		304
Windstream Holdings, Inc.		74		131
HC2 Holdings, Inc.*		17		90
Total Communications				193,767
Consumer, Cyclical - 1.6%
Yum! Brands, Inc.		139		10,231
American Airlines Group, Inc.		192		9,118
Hilton Worldwide Holdings, Inc.		127		8,819
Dollar Tree, Inc.*		93		8,073
Tata Motors Ltd. ADR*		248		7,755
United Continental Holdings, Inc.*		122		7,427
MGM Resorts International		227		7,398
Wynn Resorts Ltd.		40		5,957
Norwegian Cruise Line Holdings Ltd.*		91		4,918
Lennar Corp. — Class A		89		4,700
L Brands, Inc.		111		4,618
LKQ Corp.*		122		4,391
Aramark		96		3,899
PVH Corp.		30		3,781
Hanesbrands, Inc.		143		3,524
Goodyear Tire & Rubber Co.		98		3,259
PulteGroup, Inc.		119		3,252
Latam Airlines Group S.A. ADR		234		3,101
Adient plc		35		2,940
HD Supply Holdings, Inc.*		74		2,669
Lions Gate Entertainment Corp. — Class A*		78		2,609
Toll Brothers, Inc.		62		2,571
Scotts Miracle-Gro Co. — Class A		23		2,239
Allison Transmission Holdings, Inc.		58		2,177
Six Flags Entertainment Corp.		33		2,011
International Game Technology plc		77		1,890
Carter’s, Inc.		19		1,876
Foot Locker, Inc.		48		1,691
Navistar International Corp.*		38		1,675
Cinemark Holdings, Inc.		45		1,629
CalAtlantic Group, Inc.		44		1,612
Penske Automotive Group, Inc.		33		1,570
Dana, Inc.		56		1,566
Scientific Games Corp. — Class A*		34		1,559
Signet Jewelers Ltd.1		23		1,531
Michaels Companies, Inc.*		71		1,524
Extended Stay America, Inc.		76		1,520
Hilton Grand Vacations, Inc.*		38		1,468
Wendy’s Co.		92		1,429
Cedar Fair, LP1		22		1,411
Choice Hotels International, Inc.		22		1,406
Tempur Sealy International, Inc.*		21		1,355
ILG, Inc.		50		1,337
Churchill Downs, Inc.		6		1,237
Beacon Roofing Supply, Inc.*		24		1,230
Tenneco, Inc.		20		1,213
Lithia Motors, Inc. — Class A		10		1,203
Boyd Gaming Corp.		44		1,146
FirstCash, Inc.		18		1,137
WESCO International, Inc.*		19		1,107
Anixter International, Inc.*		13		1,105
Wolverine World Wide, Inc.		37		1,067
Taylor Morrison Home Corp. — Class A*		48		1,058
Sally Beauty Holdings, Inc.*		51		999
Regal Entertainment Group — Class A		61		976
Meritor, Inc.*		35		910
Penn National Gaming, Inc.*		36		842
TRI Pointe Group, Inc.*		60		829
KB Home		34		820
GameStop Corp. — Class A		39		806
Allegiant Travel Co. — Class A		6		790
Cooper Tire & Rubber Co.		21		785
Rite Aid Corp.*		393		770
Eldorado Resorts, Inc.*		30		770
American Axle & Manufacturing Holdings, Inc.*		43		756

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
AMC Entertainment Holdings, Inc. — Class A1		49	$	720
Meritage Homes Corp.*		16		710
MDC Holdings, Inc.		20		664
Suburban Propane Partners, LP		24		626
Party City Holdco, Inc.*		46		623
Brinker International, Inc.		19		605
Mobile Mini, Inc.		17		586
Group 1 Automotive, Inc.		8		580
BMC Stock Holdings, Inc.*		26		555
Caleres, Inc.		17		519
Vista Outdoor, Inc.*		22		505
Asbury Automotive Group, Inc.*		8		489
Pinnacle Entertainment, Inc.*		22		469
J.C. Penney Company, Inc.*		122		465
H&E Equipment Services, Inc.		14		409
Sonic Automotive, Inc. — Class A		17		347
Conn’s, Inc.*		12		338
Sears Holdings Corp.*		42		307
William Lyon Homes — Class A*		13		299
Century Communities, Inc.*		11		272
M/I Homes, Inc.*		10		267
Tailored Brands, Inc.		18		260
Beazer Homes USA, Inc.*		13		244
Titan International, Inc.		23		233
Ferrellgas Partners, LP		38		195
AV Homes, Inc.*		9		154
Carrols Restaurant Group, Inc.*		14		153
Perry Ellis International, Inc.*		6		142
Hovnanian Enterprises, Inc. — Class A*		61		118
Total Consumer, Cyclical				182,896
Consumer, Non-cyclical - 1.0%
HCA Healthcare, Inc.*		143		11,380
Centene Corp.*		68		6,580
Nielsen Holdings plc		138		5,721
United Rentals, Inc.*		33		4,578
Gartner, Inc.*		36		4,479
DaVita, Inc.*		75		4,454
Teleflex, Inc.		18		4,355
Universal Health Services, Inc. — Class B		38		4,216
Hologic, Inc.*		110		4,036
Live Nation Entertainment, Inc.*		80		3,484
WellCare Health Plans, Inc.*		17		2,920
Lamb Weston Holdings, Inc.		57		2,673
Pinnacle Foods, Inc.		46		2,630
KAR Auction Services, Inc.		54		2,578
Service Corporation International		74		2,553
ServiceMaster Global Holdings, Inc.*		52		2,430
Post Holdings, Inc.*		26		2,295
Envision Healthcare Corp.*		48		2,158
Booz Allen Hamilton Holding Corp.		57		2,131
Valeant Pharmaceuticals International, Inc.*		137		1,963
Hill-Rom Holdings, Inc.		26		1,924
WEX, Inc.*		17		1,908
HealthSouth Corp.		39		1,808
Alere, Inc.*		35		1,785
Acadia Healthcare Company, Inc.*		36		1,719
Edgewell Personal Care Co.*		22		1,600
MEDNAX, Inc.*		37		1,595
Molina Healthcare, Inc.*		22		1,513
TreeHouse Foods, Inc.*		22		1,490
Mallinckrodt plc*		39		1,457
Ritchie Bros Auctioneers, Inc.		42		1,328
Avis Budget Group, Inc.*		33		1,256
Cimpress N.V.*		12		1,172
Graham Holdings Co. — Class B		2		1,170
Performance Food Group Co.*		41		1,158
Darling Ingredients, Inc.*		64		1,121
Vector Group Ltd.		54		1,096
Laureate Education, Inc. — Class A*		75		1,091
Prestige Brands Holdings, Inc.*		21		1,052
Select Medical Holdings Corp.*		51		979
Sotheby’s*		21		968
LifePoint Health, Inc.*		16		926
B&G Foods, Inc.1		26		828
Horizon Pharma plc*		65		824
Cott Corp.		54		811
Central Garden & Pet Co.*		20		777
Endo International plc*		88		754
Hertz Global Holdings, Inc.*,1		33		738
Owens & Minor, Inc.		24		701
Tenet Healthcare Corp.*		41		674
Integer Holdings Corp.*		12		614
FTI Consulting, Inc.*		15		532
Revlon, Inc. — Class A*		21		516
ACCO Brands Corp.*		42		500
Quad/Graphics, Inc.		20		452
Cardtronics plc — Class A*		18		414
Avon Products, Inc.*		169		394
Dean Foods Co.		36		392
Community Health Systems, Inc.*		45		346
SUPERVALU, Inc.*		15		326
RR Donnelley & Sons Co.		27		278
AMAG Pharmaceuticals, Inc.*		14		258
Rent-A-Center, Inc.1		21		241
Kindred Healthcare, Inc.		34		231
Ingles Markets, Inc. — Class A		8		206
Everi Holdings, Inc.*		25		190
BioScrip, Inc.*		50		138
StoneMor Partners, LP		15		98
Total Consumer, Non-cyclical				119,963
Financial - 0.9%
Royal Bank of Scotland Group plc ADR*,1		2,307		16,795
Equinix, Inc. REIT		31		13,836
Discover Financial Services		144		9,286
SBA Communications Corp. REIT*		47		6,770
Unum Group		88		4,499
Ally Financial, Inc.		174		4,221
Iron Mountain, Inc. REIT		103		4,007
Icahn Enterprises, LP		64		3,511

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
Gaming and Leisure Properties, Inc. REIT		83	$	3,062
Lamar Advertising Co. — Class A REIT		38		2,604
CIT Group, Inc.		53		2,600
Starwood Property Trust, Inc. REIT		101		2,194
CyrusOne, Inc. REIT		36		2,121
Howard Hughes Corp.*		17		2,005
Credit Acceptance Corp.*		7		1,961
LPL Financial Holdings, Inc.		37		1,908
Medical Properties Trust, Inc. REIT		141		1,851
CNO Financial Group, Inc.		79		1,844
MGIC Investment Corp.*		144		1,804
Realogy Holdings Corp.		54		1,779
Hanover Insurance Group, Inc.		17		1,648
Navient Corp.		106		1,592
Radian Group, Inc.		83		1,551
BankUnited, Inc.		41		1,458
Popular, Inc.		40		1,438
Sabra Health Care REIT, Inc.		62		1,360
GEO Group, Inc. REIT		48		1,291
Ryman Hospitality Properties, Inc. REIT		20		1,250
CoreCivic, Inc. REIT		46		1,231
Virtu Financial, Inc. — Class A1		74		1,199
Uniti Group, Inc. REIT		71		1,041
American Equity Investment Life Holding Co.		35		1,018
QTS Realty Trust, Inc. — Class A REIT		19		995
Kennedy-Wilson Holdings, Inc.		45		835
Potlatch Corp. REIT		16		816
Genworth Financial, Inc. — Class A*		195		751
Aircastle Ltd.		31		691
Och-Ziff Capital Management Group LLC — Class A		206		663
CareTrust REIT, Inc.		30		571
iStar, Inc. REIT*		29		342
Fifth Street Finance Corp.		56		306
PHH Corp.*		20		279
Fly Leasing Ltd. ADR*		13		182
Ocwen Financial Corp.*		51		175
Enova International, Inc.*		13		175
RLJ Lodging Trust REIT		1		12
Total Financial				111,528
Energy - 0.8%
Williams Companies, Inc.		325		9,754
Concho Resources, Inc.*		58		7,639
Energy Transfer Equity, LP		423		7,352
Continental Resources, Inc.*		148		5,714
Diamondback Energy, Inc.*		38		3,722
Antero Resources Corp.*		124		2,468
Rice Energy, Inc.*		84		2,431
Equities Midstream Partners, LP		32		2,399
Antero Midstream Partners, LP		74		2,333
Newfield Exploration Co.*		78		2,314
Andeavor Logistics, LP		43		2,153
RSP Permian, Inc.*		62		2,145
Energen Corp.*		38		2,078
DCP Midstream, LP		57		1,974
Range Resources Corp.		99		1,937
Murphy Oil Corp.		68		1,806
WPX Energy, Inc.*		155		1,783
Weatherford International plc*,1		388		1,776
Vermilion Energy, Inc.		48		1,708
Transocean Ltd.*,1		153		1,646
Chesapeake Energy Corp.*,1		365		1,570
CONSOL Energy, Inc.*		90		1,524
NuStar Energy, LP		37		1,502
Genesis Energy, LP		49		1,291
PDC Energy, Inc.*		26		1,275
Southwestern Energy Co.*		204		1,246
Laredo Petroleum, Inc.*		94		1,215
Sunoco, LP		39		1,213
PBF Energy, Inc. — Class A1		43		1,187
Matador Resources Co.*		39		1,059
Gulfport Energy Corp.*		73		1,047
Alliance Resource Partners, LP		51		987
Murphy USA, Inc.*		14		966
Callon Petroleum Co.*		83		933
SemGroup Corp. — Class A		31		891
Holly Energy Partners, LP		26		868
Oasis Petroleum, Inc.*		93		848
TerraForm Power, Inc. — Class A*		64		846
Delek US Holdings, Inc.		31		829
McDermott International, Inc.*		113		822
Pattern Energy Group, Inc.		34		819
QEP Resources, Inc.*		95		814
SM Energy Co.		44		781
Whiting Petroleum Corp.*		142		775
Ensco plc — Class A1		117		698
Rowan Companies plc — Class A*		49		630
Forum Energy Technologies, Inc.*		38		604
NGL Energy Partners, LP		49		566
Carrizo Oil & Gas, Inc.*		33		565
WildHorse Resource Development Corp.*,1		40		533
PBF Logistics, LP		23		483
Noble Corporation plc*		94		432
Unit Corp.*		20		412
Archrock Partners, LP		27		385
Precision Drilling Corp.*		115		359
TerraForm Global, Inc. — Class A*		71		337
EP Energy Corp. — Class A*		102		333
SEACOR Holdings, Inc.*		7		323
Enviva Partners, LP		10		296
Atwood Oceanics, Inc.*,1		31		291
Baytex Energy Corp.*		95		286
American Midstream Partners, LP		20		273
Eclipse Resources Corp.*		106		265
Calumet Specialty Products Partners, LP*		30		251
Resolute Energy Corp.*		8		238
SunCoke Energy, Inc.*		25		229
Denbury Resources, Inc.*		156		209
Sanchez Energy Corp.*		33		159
Bristow Group, Inc.		14		131

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
Bill Barrett Corp.*		30	$	129
Cloud Peak Energy, Inc.*		29		106
Approach Resources, Inc.*,1		35		88
Jones Energy, Inc. — Class A*		37		71
Total Energy				100,122
Industrial - 0.8%
CNH Industrial N.V.		531		6,377
Ball Corp.		138		5,700
TransDigm Group, Inc.		20		5,112
Arconic, Inc.		173		4,304
Huntington Ingalls Industries, Inc.		18		4,076
Sensata Technologies Holding N.V.*		66		3,172
Crown Holdings, Inc.*		53		3,166
Sealed Air Corp.		74		3,162
XPO Logistics, Inc.*		46		3,117
Orbital ATK, Inc.1		22		2,930
Berry Global Group, Inc.*		51		2,889
Oshkosh Corp.		29		2,393
Zebra Technologies Corp. — Class A*		21		2,280
AECOM*		61		2,245
Jabil, Inc.		70		1,999
Trinity Industries, Inc.		59		1,883
USG Corp.*		56		1,827
Graphic Packaging Holding Co.		122		1,702
Owens-Illinois, Inc.*		64		1,610
Terex Corp.		35		1,576
Louisiana-Pacific Corp.*		57		1,544
MasTec, Inc.*		32		1,485
Summit Materials, Inc. — Class A*		44		1,409
Belden, Inc.		17		1,369
Silgan Holdings, Inc.		43		1,265
Clean Harbors, Inc.*		22		1,247
Welbilt, Inc.*		53		1,222
EnerSys		17		1,176
Greif, Inc. — Class A		19		1,112
Energizer Holdings, Inc.		24		1,105
Sanmina Corp.*		29		1,077
KLX, Inc.*		20		1,059
Hillenbrand, Inc.		24		932
Advanced Disposal Services, Inc.*		35		882
Masonite International Corp.*		12		830
Builders FirstSource, Inc.*		44		792
Covanta Holding Corp.		51		757
Triumph Group, Inc.		24		714
EnPro Industries, Inc.		8		644
SPX FLOW, Inc.*		16		617
Actuant Corp. — Class A		23		589
Multi-Color Corp.		7		574
Tutor Perini Corp.*		19		540
Boise Cascade Co.*		15		524
Manitowoc Company, Inc.*		57		513
Kratos Defense & Security Solutions, Inc.*		39		510
Tennant Co.		7		463
Ply Gem Holdings, Inc.*		27		460
NCI Building Systems, Inc.*		28		437
Griffon Corp.		19		422
Briggs & Stratton Corp.		17		400
Gibraltar Industries, Inc.*		12		374
General Cable Corp.		19		358
Teekay Corp.		35		313
NN, Inc.		10		290
Martin Midstream Partners, LP		15		233
LSB Industries, Inc.*		11		87
Navios Maritime Holdings, Inc.*		50		84
Hornbeck Offshore Services, Inc.*		13		53
Total Industrial				89,982
Technology - 0.7%
Micron Technology, Inc.*		436		17,147
NXP Semiconductor N.V.*		132		14,928
Western Digital Corp.		112		9,676
MSCI, Inc. — Class A		35		4,091
Leidos Holdings, Inc.		59		3,494
CDK Global, Inc.		55		3,470
Qorvo, Inc.*		49		3,463
Open Text Corp.		104		3,358
SS&C Technologies Holdings, Inc.		80		3,212
PTC, Inc.*		46		2,589
Microsemi Corp.*		45		2,317
Brocade Communications Systems, Inc.		161		1,924
NCR Corp.*		48		1,801
Nuance Communications, Inc.*		114		1,792
Entegris, Inc.*		56		1,616
j2 Global, Inc.		19		1,404
Conduent, Inc.*		83		1,301
ACI Worldwide, Inc.*		47		1,071
Amkor Technology, Inc.*		92		971
Engility Holdings, Inc.*		14		486
Unisys Corp.*		20		170
MagnaChip Semiconductor Corp.*		14		159
Total Technology				80,440
Basic Materials - 0.5%
ArcelorMittal*		405		10,433
Freeport-McMoRan, Inc.*		567		7,960
Chemours Co.		71		3,594
Steel Dynamics, Inc.		94		3,240
CF Industries Holdings, Inc.		90		3,164
Axalta Coating Systems Ltd.*		95		2,747
Huntsman Corp.		93		2,550
Olin Corp.		63		2,158
Kinross Gold Corp.*		487		2,065
WR Grace & Co.		27		1,948
United States Steel Corp.		70		1,796
Methanex Corp.		34		1,710
Ashland Global Holdings, Inc.		24		1,569
PolyOne Corp.		32		1,281
Platform Specialty Products Corp.*		112		1,249
IAMGOLD Corp.*		185		1,129
Allegheny Technologies, Inc.*		41		980
Tronox Ltd. — Class A		46		971
Ferroglobe plc		67		882
GCP Applied Technologies, Inc.*		28		860

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
New Gold, Inc.*		231	$	857
Compass Minerals International, Inc.1		13		844
Commercial Metals Co.		44		837
Cleveland-Cliffs, Inc.*		116		829
Hecla Mining Co.		157		788
Kaiser Aluminum Corp.		7		722
Eldorado Gold Corp.		319		702
Hudbay Minerals, Inc.		94		700
AK Steel Holding Corp.*		125		699
Coeur Mining, Inc.*		70		643
Neenah Paper, Inc.		7		598
Century Aluminum Co.*		35		580
Kraton Corp.*		12		485
Constellium N.V. — Class A*		42		431
A. Schulman, Inc.		12		410
Koppers Holdings, Inc.*		8		369
PH Glatfelter Co.		17		331
Mercer International, Inc.		26		308
Clearwater Paper Corp.*		6		296
Rayonier Advanced Materials, Inc.		17		233
Ryerson Holding Corp.*		14		152
Total Basic Materials				64,100
Utilities - 0.1%
FirstEnergy Corp.		174		5,364
NRG Energy, Inc.		125		3,199
AES Corp.		257		2,832
Calpine Corp.*		142		2,095
AmeriGas Partners, LP		37		1,663
Atlantica Yield plc		40		788
Dynegy, Inc.*		51		499
Total Utilities				16,440
Diversified - 0.0%
Leucadia National Corp.		142		3,585
HRG Group, Inc.*		79		1,233
Total Diversified				4,818
Total Common Stocks
(Cost $852,338)				964,056
RIGHTS†††- 0.0%
Nexstar Media Group, Inc.
Expires 01/18/192,*		34		—
Total Rights
(Cost $—)				—
EXCHANGE-TRADED FUNDS† - 0.5%
iShares iBoxx $ High Yield Corporate Bond ETF1		700		62,132
Total Exchange-Traded Funds
(Cost $60,823)				62,132
MUTUAL FUNDS† - 68.7%
Guggenheim Strategy Fund II3		165,586		4,149,597
Guggenheim Strategy Fund I3		159,535		4,005,920
Total Mutual Funds
(Cost $8,104,448)				8,155,517

	Face Amount
REPURCHASE AGREEMENTS††,4 - 19.2%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/175	$	1,143,266	1,143,266
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/175		571,633	571,633
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/175		293,129	293,129
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		251,671	251,671
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		26,395	26,395
Total Repurchase Agreements
(Cost $2,286,094)			2,286,094

	Shares
SECURITIES LENDING COLLATERAL†,6 - 0.7%
First American Government Obligations Fund — Class Z, 0.89%7		81,922		81,922
Total Securities Lending Collateral
(Cost $81,922)				81,922
Total Investments - 97.2%
(Cost $11,385,625)			$	11,549,721
Other Assets & Liabilities, net - 2.8%				326,909
Total Net Assets - 100.0%			$	11,876,630

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Gain (Loss)
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		13	Dec 2017	$	969,995	$	50,322
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		61	Dec 2017		7,164,641		(43,291	)

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Value

Unrealized Gain

OTC Equity Index Swap Agreements††

Credit Suisse Capital, LLC

Credit Suisse Illiquidity Premium Liquid Index

3.11

%

At Maturity

12/18/17

406

$

663,904

$

1,406

CENTRALLY CLEARED CREDIT DEFAULT SWAPS††,8

Counterparty

Exchange

Index

Protection Premium Rate

Payment Frequency

Maturity Date

Notional Principal

Notional Value

Upfront Premiums Paid

Unrealized Gain (Loss)

Barclays Bank plc

ICE

CDX.NA.HY.29 Index

5.00

%

At Maturity

12/20/22

$

7,100,000

$

7,657,350

$

525,255

$

32,095

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2017. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Affiliated issuer.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
6	Securities lending collateral — See Note 7.
7	Rate indicated is the 7 day yield as of September 30, 2017.
8	Credit Default Swaps — See Note 2.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	CDX.NA.HY.29 Index — Credit Default Swap High Yield Series 29 Index
	ICE — Intercontinental Exchange
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable  Inputs			Total
Common Stocks	$	964,056	$	—	$	—	$	—	$	—		$	964,056
Credit Default Swaps		—		—		—		32,095		—			32,095
Equity Futures Contracts		—		50,322		—		—		—			50,322
Equity Index Swap Agreements		—		—		—		1,406		—			1,406
Exchange-Traded Funds		62,132		—		—		—		—			62,132
Mutual Funds		8,155,517		—		—		—		—			8,155,517
Repurchase Agreements		—		—		2,286,094		—		—			2,286,094
Rights		—		—		—		—		—	**		—
Securities Lending Collateral		81,922		—		—		—		—			81,922
Total Assets	$	9,263,627	$	50,322	$	2,286,094	$	33,501	$	—		$	11,633,544

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts	$	—	$	43,291	$	—	$	—	$	—	$	43,291

*	Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.
**	Security has a market value of $0.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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.

Transactions during the period ended September 30, 2017, in which the portfolio company is an “affiliated person”, were as follows:

Security Name	Value 03/31/17		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized		Value 09/30/17		Shares 09/30/17		Investment Income
Guggenheim Strategy Fund I	$	4,010,513	$	85,817	$	(100,000	)	$	77	$	9,513	$	4,005,920		159,535	$	35,992
Guggenheim Strategy Fund II		4,043,826		95,880		—			—		9,891		4,149,597		165,586		46,104
	$	8,054,339	$	181,697	$	(100,000	)	$	77	$	19,404	$	8,155,517		—	$	82,096

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments in unaffiliated issuers, at value - including $79,901 of securities loaned (cost $995,083)	$	1,108,110
Investments in affiliated issuers, at value (cost $8,104,448)		8,155,517
Repurchase agreements, at value (cost $2,286,094)		2,286,094
Cash		13
Segregated cash with broker		73,904
Unamortized upfront premiums paid on credit default swaps		525,255
Unrealized appreciation on swap agreements		33,501
Receivables:
Dividends		14,424
Interest		10,974
Investment adviser		1,398
Securities lending income		56
Foreign taxes reclaim		21
Total assets		12,209,267
Liabilities:
Segregated cash due to broker		175,067
Payable for:
Return of securities loaned		81,922
Licensing fees		31,544
Securities purchased		14,255
Variation margin		13,062
Management fees		8,559
Transfer agent and administrative fees		2,378
Portfolio accounting fees		951
Distribution and service fees		784
Fund shares redeemed		265
Miscellaneous		3,850
Total liabilities		332,637
Commitments and contingent liabilities (Note 12)		—
Net assets	$	11,876,630
Net assets consist of:
Paid in capital	$	11,993,524
Undistributed net investment income		183,866
Accumulated net realized loss on investments		(505,388	)
Net unrealized appreciation on investments		204,628
Net assets	$	11,876,630
A-Class:
Net assets	$	752,743
Capital shares outstanding		27,635
Net asset value per share	$	27.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.60
C-Class:
Net assets	$	418,714
Capital shares outstanding		16,364
Net asset value per share	$	25.59
P-Class:
Net assets	$	1,387,358
Capital shares outstanding		50,934
Net asset value per share	$	27.24
Institutional Class:
Net assets	$	9,317,815
Capital shares outstanding		335,280
Net asset value per share	$	27.79

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $221)	$	10,077
Dividends from securities of affiliated issuers		82,096
Interest		10,840
Income from securities lending, net		436
Total investment income		103,449
Expenses:
Management fees		54,550
Distribution and service fees:
A-Class		1,036
C-Class		2,270
P-Class		1,770
Transfer agent and administrative fees		15,153
Licensing fees		21,214
Registration fees		6,319
Portfolio accounting fees		6,061
Custodian fees		805
Trustees’ fees*		534
Miscellaneous		3,913
Total expenses		113,625
Less:
Expenses waived by Adviser		(8,537	)
Net expenses		105,088
Net investment loss		(1,639	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(42,065	)
Investments in affiliated issuers		77
Swap agreements		245,827
Futures contracts		43,646
Net realized gain		247,485
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		66,995
Investments in affiliated issuers		19,404
Swap agreements		19,262
Futures contracts		(1,086	)
Net change in unrealized appreciation (depreciation)		104,575
Net realized and unrealized gain		352,060
Net increase in net assets resulting from operations	$	350,421

* 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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,639	)	$	(12,118	)
Net realized gain on investments		247,485			474,349
Net change in unrealized appreciation (depreciation) on investments		104,575			44,621
Net increase in net assets resulting from operations		350,421			506,852
Distributions to shareholders from:
Net investment income
A-Class		—			(29,624	)
C-Class		—			(20,378	)
P-Class		—			(46,774	)
Institutional Class		—			(168,247	)
Total distributions to shareholders		—			(265,023	)
Capital share transactions:
Proceeds from sale of shares
A-Class		47,524			250,425
C-Class		—			51,677
P-Class		7,542			273,654
Institutional Class		1,744,968			6,558,028
Distributions reinvested
A-Class		—			27,331
C-Class		—			20,350
P-Class		—			45,762
Institutional Class		—			167,793
Cost of shares redeemed
A-Class		(189,452	)		(357,743	)
C-Class		(89,584	)		(471,976	)
P-Class		(100,227	)		(588,498	)
Institutional Class		(2,631,088	)		(1,244,024	)
Net increase (decrease) from capital share transactions		(1,210,317	)		4,732,779
Net increase (decrease) in net assets		(859,896	)		4,974,608
Net assets:
Beginning of period		12,736,526			7,761,918
End of period	$	11,876,630		$	12,736,526
Undistributed net investment income at end of period	$	183,866		$	185,505
Capital share activity:
Shares sold
A-Class		1,787			9,471
C-Class		—			2,046
P-Class		284			10,369
Institutional Class		63,824			244,474
Shares issued from reinvestment of distributions
A-Class		—			1,044
C-Class		—			822
P-Class		—			1,747
Institutional Class		—			6,294
Shares redeemed
A-Class		(7,107	)		(13,552	)
C-Class		(3,562	)		(18,794	)
P-Class		(3,753	)		(22,397	)
Institutional Class		(96,852	)		(46,313	)
Net increase (decrease) in shares		(45,379	)		175,211

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	26.45		$	25.76		$	26.82		$	28.42		$	27.56		$	25.37
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.07	)		.03			(.31	)		(.49	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		.82			1.63			(.72	)		(.09	)		3.09			2.40
Total from investment operations		.79			1.56			(.69	)		(.40	)		2.60			2.19
Less distributions from:
Net investment income		—			(.87	)		(.37	)		(.06	)		—			—
Net realized gains		—			—			—			(1.14	)		(1.74	)		—
Total distributions		—			(.87	)		(.37	)		(1.20	)		(1.74	)		—
Net asset value, end of period	$	27.24		$	26.45		$	25.76		$	26.82		$	28.42		$	27.56
Total Returnc		2.99	%		6.11	%		(2.52	%)		(1.18	%)		9.58	%		8.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	753		$	872		$	927		$	1,371		$	4,303		$	2,080
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.25	%)		0.11	%		(1.10	%)		(1.73	%)		(0.80	%)
Total expensesd		2.04	%		2.02	%		2.00	%		2.01	%		2.02	%		2.03	%
Net expensese		1.90	%		1.90	%		1.90	%		1.90	%		1.90	%		1.91	%
Portfolio turnover rate		13	%		47	%		32	%		107	%		161	%		228	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	24.94		$	24.52		$	25.74		$	27.53		$	26.95		$	24.99
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.25	)		(.16	)		(.45	)		(.67	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		.77			1.54			(.69	)		(.14	)		2.99			2.39
Total from investment operations		.65			1.29			(.85	)		(.59	)		2.32			1.96
Less distributions from:
Net investment income		—			(.87	)		(.37	)		(.06	)		—			—
Net realized gains		—			—			—			(1.14	)		(1.74	)		—
Total distributions		—			(.87	)		(.37	)		(1.20	)		(1.74	)		—
Net asset value, end of period	$	25.59		$	24.94		$	24.52		$	25.74		$	27.53		$	26.95
Total Returnc		2.61	%		5.31	%		(3.25	%)		(1.92	%)		8.74	%		7.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	419		$	497		$	879		$	1,230		$	1,253		$	1,038
Ratios to average net assets:
Net investment income (loss)		(0.94	%)		(0.98	%)		(0.64	%)		(1.68	%)		(2.45	%)		(1.67	%)
Total expensesd		2.79	%		2.77	%		2.75	%		2.75	%		2.77	%		2.79	%
Net expensese		2.65	%		2.64	%		2.65	%		2.65	%		2.65	%		2.66	%
Portfolio turnover rate		13	%		47	%		32	%		107	%		161	%		228	%

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	26.45		$	25.76		$	26.82		$	28.42		$	27.57		$	25.37
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.06	)		.02			(.29	)		(.49	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		.81			1.62			(.71	)		(.11	)		3.08			2.43
Total from investment operations		.79			1.56			(.69	)		(.40	)		2.59			2.20
Less distributions from:
Net investment income		—			(.87	)		(.37	)		(.06	)		—			—
Net realized gains		—			—			—			(1.14	)		(1.74	)		—
Total distributions		—			(.87	)		(.37	)		(1.20	)		(1.74	)		—
Net asset value, end of period	$	27.24		$	26.45		$	25.76		$	26.82		$	28.42		$	27.57
Total Returnc		2.99	%		6.11	%		(2.52	%)		(1.18	%)		9.54	%		8.67	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,387		$	1,439		$	1,667		$	3,318		$	6,809		$	6,134
Ratios to average net assets:
Net investment income (loss)		(0.18	%)		(0.24	%)		0.09	%		(1.05	%)		(1.72	%)		(0.88	%)
Total expensesd		2.04	%		2.02	%		2.00	%		2.01	%		2.02	%		2.03	%
Net expensese		1.90	%		1.90	%		1.90	%		1.90	%		1.90	%		1.91	%
Portfolio turnover rate		13	%		47	%		32	%		107	%		161	%		228	%

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013
Per Share Data
Net asset value, beginning of period	$	26.96		$	26.18		$	27.17		$	28.71		$	27.76		$	25.49
Income (loss) from investment operations:
Net investment income (loss)b		.01			—	f		.10			(.16	)		(.42	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		.82			1.65			(.72	)		(.18	)		3.11			2.46
Total from investment operations		.83			1.65			(.62	)		(.34	)		2.69			2.27
Less distributions from:
Net investment income		—			(.87	)		(.37	)		(.06	)		—			—
Net realized gains		—			—			—			(1.14	)		(1.74	)		—
Total distributions		—			(.87	)		(.37	)		(1.20	)		(1.74	)		—
Net asset value, end of period	$	27.79		$	26.96		$	26.18		$	27.17		$	28.71		$	27.76
Total Returnc		3.08	%		6.36	%		(2.23	%)		(0.96	%)		9.84	%		8.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,318		$	9,929		$	4,289		$	3,746		$	975		$	891
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.01	%		0.37	%		(0.57	%)		(1.46	%)		(0.70	%)
Total expensesd		1.79	%		1.78	%		1.75	%		1.75	%		1.77	%		1.80	%
Net expensese		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.67	%
Portfolio turnover rate		13	%		47	%		32	%		107	%		161	%		228	%

a	Unaudited figures for the period ended September 30, 2017. 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 expense information reflects the expense ratios after expense waivers.
f	Net investment income is less than $0.01 per share.
*	H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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)
Alibaba Group Holding Ltd. ADR	12.0%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	8.5%
Baidu, Inc. ADR	4.1%
China Mobile Ltd. ADR	3.4%
Itau Unibanco Holding S.A. ADR	2.7%
HDFC Bank Ltd. ADR	2.4%
Banco Bradesco S.A. ADR	2.0%
Vale S.A. ADR	1.9%
JD.com, Inc. ADR	1.8%
Infosys Ltd. ADR	1.8%
Top Ten Total	40.6%

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	31.58%	44.46%	1.42%	(4.96%)
A-Class Shares with sales charge‡	25.33%	37.60%	0.44%	(5.63%)
C-Class Shares	31.07%	43.40%	0.77%	(5.48%)
C-Class Shares with CDSC§	30.07%	42.40%	0.77%	(5.48%)
H-Class Shares	31.57%	44.33%	1.36%	(4.96%)
BNY Mellon Emerging Markets 50 ADR Index	16.26%	23.33%	3.85%	1.24%
S&P 500 Index	7.71%	18.61%	14.22%	13.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 67.5%
Communications - 29.0%
Alibaba Group Holding Ltd. ADR*		13,755	$	2,375,625
Baidu, Inc. ADR*		3,268		809,451
China Mobile Ltd. ADR		13,141		664,539
JD.com, Inc. ADR*		9,256		353,579
Ctrip.com International Ltd. ADR*		4,812		253,785
America Movil SAB de CV — Class L ADR		13,845		245,749
Telekomunikasi Indonesia Persero Tbk PT ADR		5,895		202,199
Chunghwa Telecom Company Ltd. ADR		4,537		154,757
Grupo Televisa SAB ADR		5,222		128,827
SK Telecom Company Ltd. ADR		4,250		104,508
China Unicom Hong Kong Ltd. ADR*		7,135		100,104
China Telecom Corporation Ltd. ADR		1,656		84,655
Telefonica Brasil S.A. ADR		4,943		78,297
58.com, Inc. ADR*		1,064		67,181
Mobile TeleSystems PJSC ADR		6,082		63,496
Weibo Corp. ADR*		599		59,265
Total Communications				5,746,017
Technology - 12.7%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		44,554		1,673,002
Infosys Ltd. ADR		23,832		347,709
NetEase, Inc. ADR		886		233,736
Advanced Semiconductor Engineering, Inc. ADR		16,203		100,135
Wipro Ltd. ADR		13,925		79,094
United Microelectronics Corp. ADR1		28,392		70,980
Total Technology				2,504,656
Financial - 9.4%
HDFC Bank Ltd. ADR		5,007		482,524
Banco Bradesco S.A. ADR		36,496		404,011
China Life Insurance Company Ltd. ADR		17,762		267,318
Shinhan Financial Group Company Ltd. ADR		5,659		250,694
KB Financial Group, Inc. ADR		4,741		232,451
ICICI Bank Ltd. ADR		18,664		159,764
Bancolombia S.A. ADR		1,349		61,771
Total Financial				1,858,533
Energy - 5.8%
CNOOC Ltd. ADR		1,918		248,764
China Petroleum & Chemical Corp. ADR		3,045		230,689
Sasol Ltd. ADR		7,068		194,582
Petroleo Brasileiro S.A. ADR*		17,765		178,361
PetroChina Company Ltd. ADR		2,518		161,429
Ultrapar Participacoes S.A. ADR		5,180		123,388
Total Energy				1,137,213
Consumer, Non-cyclical - 4.1%
Ambev S.A. ADR		52,503		345,995
Fomento Economico Mexicano SAB de CV ADR		2,579		246,372
TAL Education Group ADR		3,334		112,389
BRF S.A. ADR*		7,466		107,585
Total Consumer, Non-cyclical				812,341
Basic Materials - 3.7%
Vale S.A. ADR		37,408		376,698
POSCO ADR		3,829		265,733
Vedanta Ltd. ADR		4,991		96,626
Total Basic Materials				739,057
Industrial - 1.2%
Cemex SAB de CV ADR*		17,383		157,838
LG Display Company Ltd. ADR		5,295		71,059
Total Industrial				228,897
Utilities - 0.9%
Korea Electric Power Corp. ADR1		6,129		102,722
Enel Americas S.A. ADR		6,720		68,678
Total Utilities				171,400
Consumer, Cyclical - 0.7%
Tata Motors Ltd. ADR*		2,412		75,423
Latam Airlines Group S.A. ADR		4,563		60,460
Total Consumer, Cyclical				135,883
Total Common Stocks
(Cost $12,054,836)				13,333,997
PREFERRED STOCKS†† - 3.9%
Financial - 2.7%
Itau Unibanco Holding S.A. ADR		38,556		528,217
Energy - 1.2%
Petroleo Brasileiro S.A. ADR*		25,072		242,196
Total Preferred Stocks
(Cost $658,370)				770,413

	Face Amount
REPURCHASE AGREEMENTS††,2 - 26.7%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/173	$	2,645,287	2,645,287
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/173		1,322,643	1,322,643
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/173		927,450	927,450
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		356,763	356,763
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		37,416	37,416
Total Repurchase Agreements
(Cost $5,289,559)			5,289,559

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2017
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,4 - 0.7%
First American Government Obligations Fund — Class Z, 0.89%5		137,270	$	137,270
Total Securities Lending Collateral
(Cost $137,270)				137,270
Total Investments - 98.8%
(Cost $18,140,035)			$	19,531,239
Other Assets & Liabilities, net - 1.2%				244,219
Total Net Assets - 100.0%			$	19,775,458

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Gain
Equity Futures Contracts Purchased†
MSCI EAFE Index Mini Futures Contracts		4	Dec 2017	$	217,780	$	2,313

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain
OTC Equity Index Swap Agreements††
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index		1.74	%	At Maturity	10/30/17		5,966	$	16,031,498	$	137,125
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index		1.75	%	At Maturity	10/27/17		3,345		8,989,322		80,381
									$	25,020,820	$	217,506

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2017 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7 day yield as of September 30, 2017.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
EMERGING MARKETS 2x STRATEGY FUND

Country	% of Securities
China	33%
Brazil	17%
Taiwan, Province of China	14%
India	9%
Cayman Islands	8%
Republic of Korea	7%
Mexico	6%
Other	6%
Total Securities	100%

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	13,333,997	$	—	$	—	$	—	$	—	$	13,333,997
Equity Futures Contracts		—		2,313		—		—		—		2,313
Equity Index Swap Agreements		—		—		—		217,506		—		217,506
Preferred Stocks		770,413		—		—		—		—		770,413
Repurchase Agreements		—		—		5,289,559		—		—		5,289,559
Securities Lending Collateral		137,270		—		—		—		—		137,270
Total Assets	$	14,241,680	$	2,313	$	5,289,559	$	217,506	$	—	$	19,751,058

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Investments, at value - including $129,746 of securities loaned (cost $12,850,476)	$	14,241,680
Repurchase agreements, at value (cost $5,289,559)		5,289,559
Cash		949
Segregated cash with broker		12,600
Unrealized appreciation on swap agreements		217,506
Receivables:
Fund shares sold		556,345
Dividends		48,502
Variation margin		3,676
Interest		294
Securities lending income		104
Foreign taxes reclaim		6
Total assets		20,371,221
Liabilities:
Payable for:
Fund shares redeemed		409,956
Return of securities loaned		137,270
Management fees		19,277
Distribution and service fees		5,772
Transfer agent and administrative fees		5,355
Swap settlement		3,627
Portfolio accounting fees		3,213
Miscellaneous		11,293
Total liabilities		595,763
Commitments and contingent liabilities (Note 12)		—
Net assets	$	19,775,458
Net assets consist of:
Paid in capital	$	26,644,914
Accumulated net investment loss		(13,383	)
Accumulated net realized loss on investments		(8,467,096	)
Net unrealized appreciation on investments		1,611,023
Net assets	$	19,775,458
A-Class:
Net assets	$	3,666,178
Capital shares outstanding		45,685
Net asset value per share	$	80.25
Maximum offering price per share (Net asset value divided by 95.25%)	$	84.25
C-Class:
Net assets	$	620,855
Capital shares outstanding		8,043
Net asset value per share	$	77.19
H-Class:
Net assets	$	15,488,425
Capital shares outstanding		192,977
Net asset value per share	$	80.26

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Dividends (net of foreign withholding tax of $1,466)	$	134,755
Interest		35,429
Income from securities lending, net		191
Total investment income		170,375
Expenses:
Management fees		78,159
Distribution and service fees:
A-Class		3,231
C-Class		2,751
H-Class		17,794
Transfer agent and administrative fees		21,711
Portfolio accounting fees		13,028
Custodian fees		1,088
Trustees’ fees*		423
Miscellaneous		18,561
Total expenses		156,746
Net investment income		13,629
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		338,001
Swap agreements		1,878,349
Futures contracts		219,256
Net realized gain		2,435,606
Net change in unrealized appreciation (depreciation) on:
Investments		1,007,137
Swap agreements		226,450
Futures contracts		11,696
Net change in unrealized appreciation (depreciation)		1,245,283
Net realized and unrealized gain		3,680,889
Net increase in net assets resulting from operations	$	3,694,518

* 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.

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	13,629		$	(121,807	)
Net realized gain on investments		2,435,606			4,636,273
Net change in unrealized appreciation (depreciation) on investments		1,245,283			(1,024,456	)
Net increase in net assets resulting from operations		3,694,518			3,490,010
Capital share transactions:
Proceeds from sale of shares
A-Class		4,028,681			7,359,066
C-Class		2,321,385			9,705,258
H-Class		166,353,110			466,810,421
Cost of shares redeemed
A-Class		(1,682,277	)		(10,731,054	)
C-Class		(2,150,253	)		(9,726,582	)
H-Class		(160,477,587	)		(476,717,148	)
Net increase (decrease) from capital share transactions		8,393,059			(13,300,039	)
Net increase (decrease) in net assets		12,087,577			(9,810,029	)
Net assets:
Beginning of period		7,687,881			17,497,910
End of period	$	19,775,458		$	7,687,881
Accumulated net investment loss at end of period	$	(13,383	)	$	(27,012	)
Capital share activity:
Shares sold
A-Class		60,153			150,599
C-Class		36,587			187,596
H-Class		2,371,333			9,608,705
Shares redeemed
A-Class		(24,772	)		(229,335	)
C-Class		(34,675	)		(187,698	)
H-Class		(2,288,149	)		(9,794,119	)
Net increase (decrease) in shares		120,477			(264,252	)

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

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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	60.99		$	44.79		$	60.50		$	66.27		$	73.59		$	87.40
Income (loss) from investment operations:
Net investment income (loss)b		.09			(.48	)		(.23	)		(.37	)		(.54	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		19.17			16.68			(14.83	)		(5.40	)		(6.78	)		(13.46	)
Total from investment operations		19.26			16.20			(15.06	)		(5.77	)		(7.32	)		(13.81	)
Less distributions from:
Net investment income		—			—			(.65	)		—			—			—
Total distributions		—			—			(.65	)		—			—			—
Net asset value, end of period	$	80.25		$	60.99		$	44.79		$	60.50		$	66.27		$	73.59
Total Returnc		31.58	%		36.17	%		(24.84	%)		(8.72	%)		(9.96	%)		(15.79	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,666		$	628		$	3,988		$	382		$	744		$	106
Ratios to average net assets:
Net investment income (loss)		0.26	%		(0.96	%)		(0.48	%)		(0.53	%)		(0.82	%)		(0.51	%)
Total expenses		1.77	%		1.76	%		1.75	%		1.75	%		1.81	%		1.88	%
Net expenses		1.77	%		1.76	%		1.75	%		1.75	%		1.76	%d		1.75	%d
Portfolio turnover rate		605	%		2,568	%		2,874	%		1,085	%		1,412	%		730	%

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	58.90		$	43.56		$	59.37		$	65.46		$	72.92		$	87.31
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.79	)		(.74	)		(.73	)		(1.04	)		(1.25	)
Net gain (loss) on investments (realized and unrealized)		18.35			16.13			(14.42	)		(5.36	)		(6.42	)		(13.14	)
Total from investment operations		18.29			15.34			(15.16	)		(6.09	)		(7.46	)		(14.39	)
Less distributions from:
Net investment income		—			—			(.65	)		—			—			—
Total distributions		—			—			(.65	)		—			—			—
Net asset value, end of period	$	77.19		$	58.90		$	43.56		$	59.37		$	65.46		$	72.92
Total Returnc		31.07	%		35.19	%		(25.48	%)		(9.32	%)		(10.21	%)		(16.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	621		$	361		$	271		$	1,287		$	409		$	108
Ratios to average net assets:
Net investment income (loss)		(0.17	%)		(1.55	%)		(1.49	%)		(0.99	%)		(1.73	%)		(1.61	%)
Total expenses		2.64	%		2.50	%		2.46	%		2.48	%		2.66	%		2.59	%
Net expenses		2.64	%		2.50	%		2.46	%		2.48	%		2.61	%d		2.46	%d
Portfolio turnover rate		605	%		2,568	%		2,874	%		1,085	%		1,412	%		730	%

44 | 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, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	61.01		$	44.84		$	60.61		$	66.37		$	73.87		$	87.74
Income (loss) from investment operations:
Net investment income (loss)b		.05			(.42	)		(.41	)		.20			(.34	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		19.20			16.59			(14.71	)		(5.96	)		(7.16	)		(13.52	)
Total from investment operations		19.25			16.17			(15.12	)		(5.76	)		(7.50	)		(13.87	)
Less distributions from:
Net investment income		—			—			(.65	)		—			—			—
Total distributions		—			—			(.65	)		—			—			—
Net asset value, end of period	$	80.26		$	61.01		$	44.84		$	60.61		$	66.37		$	73.87
Total Returnc		31.57	%		36.04	%		(24.88	%)		(8.71	%)		(10.19	%)		(15.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,488		$	6,698		$	13,238		$	2,136		$	4,719		$	2,087
Ratios to average net assets:
Net investment income (loss)		0.15	%		(0.82	%)		(0.76	%)		0.25	%		(0.51	%)		(0.49	%)
Total expenses		1.79	%		1.76	%		1.74	%		1.75	%		1.80	%		1.83	%
Net expenses		1.79	%		1.76	%		1.74	%		1.75	%		1.74	%d		1.69	%d
Portfolio turnover rate		605	%		2,568	%		2,874	%		1,085	%		1,412	%		730	%

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net expense information reflects the expense ratios after expense waivers.
e	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 NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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.

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	(27.36%)	(38.14%)	(17.40%)	(15.68%)
A-Class Shares with sales charge‡	(30.81%)	(41.08%)	(18.21%)	(16.28%)
C-Class Shares	(27.64%)	(38.58%)	(18.03%)	(15.58%)
C-Class Shares with CDSC§	(28.36%)	(39.19%)	(18.03%)	(15.58%)
HClass Shares	(27.40%)	(38.12%)	(17.52%)	(15.77%)
BNY Mellon Emerging Markets 50 ADR Index	16.26%	23.33%	3.85%	1.24%
S&P 500 Index	7.71%	18.61%	14.22%	13.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

46 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 104.8%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/172	$	328,513	$	328,513
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/172		164,257		164,257
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/172		104,369		104,369
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		54,089		54,089
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		5,673		5,673
Total Repurchase Agreements
(Cost $656,901)				656,901
Total Investments - 104.8%
(Cost $656,901)			$	656,901
Other Assets & Liabilities, net - (4.8)%				(29,805	)
Total Net Assets - 100.0%			$	627,096

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Loss
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index		(0.75	%)	Monthly	10/27/17		199	$	534,572	$	(4,472	)
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index		(0.84	%)	Monthly	10/30/17		267		716,222		(6,345	)
									$	1,250,794	$	(10,817	)

††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2017.
	See Sector Classification in Other Information section.

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Repurchase Agreements	$	—	$	656,901	$	—	$	—	$	656,901

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements	$	—	$	—	$	10,817	$	—	$	10,817

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the previous fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Repurchase agreements, at value (cost $656,901)	$	656,901
Receivables:
Fund shares sold		70,578
Interest		37
Total assets		727,516
Liabilities:
Unrealized depreciation on swap agreements		10,817
Payable for:
Fund shares redeemed		84,768
Swap settlement		2,330
Management fees		1,109
Distribution and service fees		323
Transfer agent and administrative fees		308
Portfolio accounting fees		185
Variation margin		24
Miscellaneous		556
Total liabilities		100,420
Commitments and contingent liabilities (Note 12)		—
Net assets	$	627,096
Net assets consist of:
Paid in capital	$	17,935,666
Accumulated net investment loss		(13,272	)
Accumulated net realized loss on investments		(17,284,481	)
Net unrealized depreciation on investments		(10,817	)
Net assets	$	627,096
A-Class:
Net assets	$	52,201
Capital shares outstanding		1,133
Net asset value per share	$	46.07
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.37
C-Class:
Net assets	$	21,907
Capital shares outstanding		471
Net asset value per share	$	46.51
H-Class:
Net assets	$	552,988
Capital shares outstanding		12,089
Net asset value per share	$	45.74

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Interest	$	5,856
Total investment income		5,856
Expenses:
Management fees		5,794
Distribution and service fees:
A-Class		50
C-Class		220
H-Class		1,509
Transfer agent and administrative fees		1,610
Portfolio accounting fees		968
Registration fees		739
Custodian fees		84
Trustees’ fees*		61
Miscellaneous		608
Total expenses		11,643
Net investment loss		(5,787	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		37,726
Futures contracts		(10,206	)
Net realized gain		27,520
Net change in unrealized appreciation (depreciation) on:
Swap agreements		(17,559	)
Futures contracts		(648	)
Net change in unrealized appreciation (depreciation)		(18,207	)
Net realized and unrealized gain		9,313
Net increase in net assets resulting from operations	$	3,526

* 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.

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(5,787	)	$	(54,342	)
Net realized gain (loss) on investments		27,520			(38,162	)
Net change in unrealized appreciation (depreciation) on investments		(18,207	)		51,297
Net increase (decrease) in net assets resulting from operations		3,526			(41,207	)
Capital share transactions:
Proceeds from sale of shares
A-Class		49,430			13,480,032
C-Class		128,655			9,025,499
H-Class		50,129,355			132,741,268
Cost of shares redeemed
A-Class		(29,349	)		(13,425,091	)
C-Class		(147,741	)		(9,161,419	)
H-Class		(50,495,524	)		(158,785,532	)
Net decrease from capital share transactions		(365,174	)		(26,125,243	)
Net decrease in net assets		(361,648	)		(26,166,450	)
Net assets:
Beginning of period		988,744			27,155,194
End of period	$	627,096		$	988,744
Accumulated net investment loss at end of period	$	(13,272	)	$	(7,485	)
Capital share activity:
Shares sold
A-Class		972			130,919	*
C-Class		2,416			113,460	*
H-Class		982,283			1,618,259	*
Shares redeemed
A-Class		(509	)		(134,646	)*
C-Class		(2,814	)		(116,168	)*
H-Class		(984,328	)		(1,864,161	)*
Net decrease in shares		(1,980	)		(252,337	)*

* Capital share activity for the periods presented through March, 2017, has been restated to reflect a 1:6 reverse share split effective October 31, 2016 – See Note 11.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	63.42		$	101.83		$	101.26		$	110.02		$	115.35		$	115.71
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(1.42	)		(1.92	)		(1.74	)		(2.10	)		(1.98	)
Net gain (loss) on investments (realized and unrealized)		(17.11	)		(36.99	)		2.49			(7.02	)		(3.23	)		1.62
Total from investment operations		(17.35	)		(38.41	)		.57			(8.76	)		(5.33	)		(.36	)
Net asset value, end of period	$	46.07		$	63.42		$	101.83		$	101.26		$	110.02		$	115.35
Total Returnc		(27.36	%)		(37.72	%)		0.53	%		(7.96	%)		(4.63	%)		(0.26	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	52		$	42		$	448		$	62		$	4,859		$	258
Ratios to average net assets:
Net investment income (loss)		(0.92	%)		(1.50	%)		(1.59	%)		(1.74	%)		(1.74	%)		(1.60	%)
Total expenses		1.80	%		1.75	%		1.75	%		1.75	%		1.78	%		1.85	%
Net expenses		1.80	%		1.75	%		1.75	%		1.75	%		1.75	%d		1.71	%d
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	64.21		$	103.83		$	104.23		$	114.21		$	120.45		$	121.50
Income (loss) from investment operations:
Net investment income (loss)b		(.48	)		(1.88	)		(2.82	)		(2.34	)		(3.12	)		(2.94	)
Net gain (loss) on investments (realized and unrealized)		(17.22	)		(37.74	)		2.42			(7.64	)		(3.12	)		1.89
Total from investment operations		(17.70	)		(39.62	)		(.40	)		(9.98	)		(6.24	)		(1.05	)
Net asset value, end of period	$	46.51		$	64.21		$	103.83		$	104.23		$	114.21		$	120.45
Total Returnc		(27.64	%)		(38.17	%)		(0.29	%)		(8.78	%)		(5.23	%)		(0.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22		$	56		$	371		$	102		$	262		$	115
Ratios to average net assets:
Net investment income (loss)		(1.70	%)		(2.20	%)		(2.44	%)		(2.47	%)		(2.44	%)		(2.41	%)
Total expenses		2.55	%		2.48	%		2.50	%		2.48	%		2.48	%		2.65	%
Net expenses		2.55	%		2.48	%		2.50	%		2.48	%		2.46	%d		2.51	%d
Portfolio turnover rate		—			—			—			—			—			—

50 | 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, 2017a			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e
Per Share Data
Net asset value, beginning of period	$	63.00		$	101.28		$	100.80		$	109.97		$	115.31		$	115.73
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(1.23	)		(2.04	)		(1.68	)		(2.10	)		(1.98	)
Net gain (loss) on investments (realized and unrealized)		(17.04	)		(37.05	)		2.52			(7.49	)		(3.24	)		1.56
Total from investment operations		(17.26	)		(38.28	)		.48			(9.17	)		(5.34	)		(.42	)
Net asset value, end of period	$	45.74		$	63.00		$	101.28		$	100.80		$	109.97		$	115.31
Total Returnc		(27.40	%)		(37.80	%)		0.48	%		(8.35	%)		(4.63	%)		(0.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	553		$	890		$	26,336		$	23,091		$	5,815		$	1,942
Ratios to average net assets:
Net investment income (loss)		(0.87	%)		(1.46	%)		(1.65	%)		(1.71	%)		(1.74	%)		(1.56	%)
Total expenses		1.79	%		1.76	%		1.74	%		1.73	%		1.78	%		1.82	%
Net expenses		1.79	%		1.76	%		1.74	%		1.73	%		1.76	%d		1.68	%d
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2017. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net expense information reflects the expense ratios after expense waivers.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 31, 2016 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2017

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

Average Annual Returns*

Periods Ended September 30, 2017

	6 month†	1 Year	Since Inception (10/08/13)
A-Class Shares	4.05%	2.36%	2.22%
A-Class Shares with sales charge‡	(0.90%)	(2.50%)	0.98%
C-Class Shares	3.66%	1.59%	1.33%
C-Class Shares with CDSC§	2.66%	0.63%	1.33%
H-Class Shares	4.04%	2.32%	2.11%
Bank of America Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index	5.09%	4.37%	6.77%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BofA ML US Dollar Emerging Markets Sovereign Plus Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2017
EMERGING MARKETS BOND STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 77.9%
BNP Paribas issued 09/29/17 at 1.00% due 10/02/17	$	431,196	$	431,196
Bank of America Merrill Lynch issued 09/29/17 at 1.05% due 10/02/17		215,598		215,598
RBC Capital Markets LLC issued 09/29/17 at 0.98% due 10/02/17		107,206		107,206
HSBC Securities, Inc. issued 09/29/17 at 0.91% due 10/02/17		97,954		97,954
UMB Financial Corp. issued 09/29/17 at 0.91% due 10/02/17		10,273		10,273
Total Repurchase Agreements
(Cost $862,227)				862,227
Total Investments - 77.9%
(Cost $862,227)			$	862,227
Other Assets & Liabilities, net - 22.1%				244,853
Total Net Assets - 100.0%			$	1,107,080

Futures Contracts
Description	Contracts		Expiration Date	Notional Amount		Unrealized Loss
Interest Rate Futures Contracts Purchased†
U.S. Treasury 10 Year Note Futures Contracts		1	Dec 2017	$	125,266	$	(1,338	)
U.S. Treasury 5 Year Note Futures Contracts		3	Dec 2017		352,359		(2,536	)
				$	477,625	$	(3,874	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Units		Notional Value		Unrealized Gain (Loss)
OTC Equity Index Swap Agreements††
Goldman Sachs International	November 2017 iShares JP Morgan USD Emerging Markets Bond ETF		1.55	%	At Maturity	10/04/17		2,554	$	297,337	$	333
Goldman Sachs International	November 2017 Powershares Emerging Markets Sovereign Debt Portfolio Swap ETF		1.65	%	At Maturity	10/04/17		12,106		360,396		(707	)
									$	657,733	$	(374	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS††,2
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency	Maturity Date	Notional Principal		Notional Value		Upfront Premiums Paid			Unrealized Gain (Loss)
Barclays Bank plc	ICE	CDX.EM-28 Index		1.00	%	At Maturity	12/20/22	$	550,000	$	527,896	$	(22,910	)	$	805

†	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 6.
2	Credit Default Swaps — See Note 2.
	ICE — Intercontinental Exchange
	CDX.EM-28 Index — Credit Default Swap Emerging Markets Series 28 Index
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2017
EMERGING MARKETS BOND STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2017 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Credit Default Swaps	$	—	$	—	$	—	$	805	$	—	$	805
Equity Index Swap Agreements		—		—		—		333		—		333
Repurchase Agreements		—		—		862,227		—		—		862,227
Total Assets	$	—	$	—	$	862,227	$	1,138	$	—	$	863,365

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 1 - Other*		Level 2 Significant Observable Inputs		Level 2 - Other*		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	707	$	—	$	707
Interest Rate Futures Contracts		—		3,874		—		—		—		3,874
Total Liabilities	$	—	$	3,874	$	—	$	707	$	—	$	4,581

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the current fiscal period.

For the period ended September 30, 2017, there were no transfers between levels.

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2017

Assets:
Repurchase agreements, at value (cost $862,227)	$	862,227
Segregated cash with broker		276,842
Unrealized appreciation on swap agreements		1,138
Receivables:
Fund shares sold		10,757
Interest		216
Total assets		1,151,180
Liabilities:
Unamortized upfront premiums received on credit default swaps		22,910
Unrealized depreciation on swap agreements		707
Payable for:
Fund shares redeemed		10,000
Swap settlement		5,929
Management fees		1,479
Variation margin		914
Distribution and service fees		648
Transfer agent and administrative fees		493
Portfolio accounting fees		296
Miscellaneous		724
Total liabilities		44,100
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,107,080
Net assets consist of:
Paid in capital	$	1,185,428
Accumulated net investment loss		(6,582	)
Accumulated net realized loss on investments		(68,323	)
Net unrealized depreciation on investments		(3,443	)
Net assets	$	1,107,080
A-Class:
Net assets	$	127,940
Capital shares outstanding		1,710
Net asset value per share	$	74.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	78.57
C-Class:
Net assets	$	249,413
Capital shares outstanding		3,476
Net asset value per share	$	71.75
H-Class:
Net assets	$	729,727
Capital shares outstanding		9,808
Net asset value per share	$	74.40

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2017

Investment Income:
Interest	$	4,865
Total investment income		4,865
Expenses:
Management fees		5,139
Distribution and service fees:
A-Class		187
C-Class		716
H-Class		1,348
Transfer agent and administrative fees		1,714
Portfolio accounting fees		1,029
Custodian fees		87
Trustees’ fees*		30
Miscellaneous		1,197
Total expenses		11,447
Net investment loss		(6,582	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		39,446
Futures contracts		462
Net realized gain		39,908
Net change in unrealized appreciation (depreciation) on:
Swap agreements		33
Futures contracts		(5,563	)
Net change in unrealized appreciation (depreciation)		(5,530	)
Net realized and unrealized gain		34,378
Net increase in net assets resulting from operations	$	27,796

* 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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2017 (Unaudited)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(6,582	)	$	(79,467	)
Net realized gain on investments		39,908			53,964
Net change in unrealized appreciation (depreciation) on investments		(5,530	)		(9,101	)
Net increase (decrease) in net assets resulting from operations		27,796			(34,604	)
Distributions to shareholders from:
Net investment income
A-Class		—			(62,397	)
C-Class		—			(5,813	)
H-Class		—			(31,424	)
Net realized gains
A-Class		—			(8,051	)
C-Class		—			(642	)
H-Class		—			(24,807	)
Total distributions to shareholders		—			(133,134	)
Capital share transactions:
Proceeds from sale of shares
A-Class		110,242			46,123,639
C-Class		182,673			129,666
H-Class		3,522,512			20,306,109
Distributions reinvested
A-Class		—			66,839
C-Class		—			5,889
H-Class		—			54,879
Cost of shares redeemed
A-Class		(100,883	)		(46,053,913	)
C-Class		(28,762	)		(170,836	)
H-Class		(3,281,266	)		(20,219,716	)
Net increase from capital share transactions		404,516			242,556
Net increase in net assets		432,312			74,818
Net assets:
Beginning of period		674,768			599,950
End of period	$	1,107,080		$	674,768
Accumulated net investment loss at end of period	$	(6,582	)	$	—
Capital share activity:
Shares sold
A-Class		1,511			601,198	*
C-Class		2,580			1,803	*
H-Class		47,712			273,867	*
Shares issued from reinvestment of distributions
A-Class		—			963	*
C-Class		—			88	*
H-Class		—			778	*
Shares redeemed
A-Class		(1,367	)		(604,151	)*
C-Class		(407	)		(2,423	)*
H-Class		(44,503	)		(270,980	)*
Net increase in shares		5,526			1,143	*

* Capital share activity for the periods presented through March 31, 2017, has been restated to reflect a 1:4 reverse share split effective November 7, 2016 – See Note 11.

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Period Ended March 31, 2014b
Per Share Data
Net asset value, beginning of period	$	71.93		$	72.75		$	81.52		$	100.68		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.32	)		(.91	)		1.12			(1.44	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		3.21			3.87			2.23			(3.76	)		1.52
Total from investment operations		2.89			2.96			3.35			(5.20	)		.68
Less distributions from:
Net investment income		—			(3.70	)		(12.12	)		(13.96	)		—
Net realized gains		—			(.08	)		—			—			—
Total distributions		—			(3.78	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	74.82		$	71.93		$	72.75		$	81.52		$	100.68
Total Returne		4.05	%		4.62	%		5.13	%		(5.31	%)		0.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	128		$	113		$	259		$	39		$	499
Ratios to average net assets:
Net investment income (loss)		(0.87	%)		(1.19	%)		1.59	%		(1.50	%)		(1.78	%)
Total expenses		1.60	%		1.58	%		1.58	%		1.71	%		1.83	%
Portfolio turnover rate		—			733	%		21,555	%		655	%		—

C-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015			Period Ended March 31, 2014b
Per Share Data
Net asset value, beginning of period	$	69.22		$	70.54		$	80.35		$	100.37		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.58	)		(1.10	)		(1.00	)		(1.80	)		(1.12	)
Net gain (loss) on investments (realized and unrealized)		3.11			3.56			3.31			(4.26	)		1.49
Total from investment operations		2.53			2.46			2.31			(6.06	)		.37
Less distributions from:
Net investment income		—			(3.70	)		(12.12	)		(13.96	)		—
Net realized gains		—			(.08	)		—			—			—
Total distributions		—			(3.78	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	71.75		$	69.22		$	70.54		$	80.35		$	100.37
Total Returne		3.66	%		4.09	%		3.73	%		(6.19	%)		0.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	249		$	90		$	129		$	34		$	10
Ratios to average net assets:
Net investment income (loss)		(1.63	%)		(1.54	%)		(1.33	%)		(1.85	%)		(2.34	%)
Total expenses		2.35	%		2.33	%		2.32	%		2.24	%		2.39	%
Portfolio turnover rate		—			733	%		21,555	%		655	%		—

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2017a			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Period Ended March 31, 2014b,d
Per Share Data
Net asset value, beginning of period	$	71.51		$	72.19		$	81.18		$	100.73		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.33	)		(.28	)		(.44	)		(1.56	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		3.22			3.38			3.57			(4.03	)		1.49
Total from investment operations		2.89			3.10			3.13			(5.59	)		.73
Less distributions from:
Net investment income		—			(3.70	)		(12.12	)		(13.96	)		—
Net realized gains		—			(.08	)		—			—			—
Total distributions		—			(3.78	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	74.40		$	71.51		$	72.19		$	81.18		$	100.73
Total Returne		4.04	%		4.85	%		4.82	%		(5.74	%)		0.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	730		$	472		$	212		$	153		$	5,580
Ratios to average net assets:
Net investment income (loss)		(0.89	%)		(0.38	%)		(0.55	%)		(1.64	%)		(1.62	%)
Total expenses		1.59	%		1.54	%		1.56	%		1.74	%		1.64	%
Portfolio turnover rate		—			733	%		21,555	%		655	%		—

a	Unaudited figures for the period ended September 30, 2017. 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	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 11.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory 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 seven separate classes of shares: Investor 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 require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2017, the Trust consisted of fifty-three 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-diversified investment company. Only A-Class, C-Class, H-Class, P-Class, 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI 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, 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, 2017, afternoon NAV.

(a) Valuation of Investments

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 and/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, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 59

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used 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 sale 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 sale 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 values of over-the-counter (“OTC”) swap agreements and credit default swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, 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 using methods established or ratified by the Board. 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 market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

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) Short Sales

When a Fund engages in a short sale of a security, an amount equal to the proceeds is refl ected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

(c) Futures Contracts

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

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 an agreement are recognized as realized gains or losses.

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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) Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions.

Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

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) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

(g) Security Transactions

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) Distributions

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.

(i) Class Allocations

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) Cash

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, which was 1.06% at September 30, 2017.

(k) Indemnifications

Under the Funds’ organizational documents, the 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 61

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

Note 2 – Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. 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, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the 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:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

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 any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index 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 Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

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 segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

62 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Event Driven and Distressed Strategies Fund	Duration, Index exposure, Liquidity	$	6,070,416	$	—
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		108,890		—
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		780,570		—

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 and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like an exchange-traded futures contract. Upon entering into a centrally-cleared swap transaction, the Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity.

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.

The following table represents the Funds’ use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Long Short Equity Fund	Index exposure, Liquidity	$	26,644,352	$	36,259,725
Event Driven and Distressed Strategies Fund	Index exposure, Liquidity		2,846,564		—
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		21,822,113		—
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,010,593
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		599,687		—

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 Funds 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 pay as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 63

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Event Driven and Distressed Strategies Fund	Duration, Index exposure, Liquidity	$	—	$	5,967,875
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		—		883,903

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

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, 2017:

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, 2017:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at  September 30, 2017
Long Short Equity Fund	$	—	$	1,055,596	$	—	$	—	$	1,055,596
Event Driven and Distressed Strategies Fund		50,322		1,406		—		32,095		83,823
Emerging Markets 2x Strategy Fund		2,313		217,506		—		—		219,819
Emerging Markets Bond Strategy Fund		—		333		—		805		1,138

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2017
Long Short Equity Fund	$	—	$	1,690,350	$	—	$	—	$	1,690,350
Event Driven and Distressed Strategies Fund		—		—		43,291		—		43,291
Inverse Emerging Markets 2x Strategy Fund		—		10,817		—		—		10,817
Emerging Markets Bond Strategy Fund		—		707		3,874		—		4,581

* 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.

64 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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, 2017:

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, 2017:

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	$	3,211		$	1,055,303	$	—	$	—	$	1,058,514
Event Driven and Distressed Strategies Fund		15,524			190,071		28,122		55,756		289,473
Emerging Markets 2x Strategy Fund		219,256			1,878,349		—		—		2,097,605
Inverse Emerging Markets 2x Strategy Fund		(10,206	)		37,726		—		—		27,520
Emerging Markets Bond Strategy Fund		—			20,318		462		19,128		39,908

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
Long Short Equity Fund	$	(2,656	)	$	(634,754	)	$	—		$	—	$	(637,410	)
Event Driven and Distressed Strategies Fund		44,047			1,406			(45,133	)		17,856		18,176
Emerging Markets 2x Strategy Fund		11,696			226,450			—			—		238,146
Inverse Emerging Markets 2x Strategy Fund		(648	)		(17,559	)		—			—		(18,207	)
Emerging Markets Bond Strategy Fund		—			(408	)		(5,563	)		441		(5,530	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to 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 risks may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

Certain Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

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.

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.

Note 3 – 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 from 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, are 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.

66 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Long Short Equity Fund	Swap equity contracts	$	1,055,596	$	—	$	1,055,596	$	1,055,596	$	—	$	—
Event Driven and Distressed Strategies Fund	Swap equity contracts		1,406		—		1,406		—		—		1,406
Emerging Markets 2x Strategy Fund	Swap equity contracts		217,506		—		217,506		—		—		217,506
Emerging Markets Bond Strategy Fund	Swap equity contracts		333		—		333		333		—		—

								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
Long Short Equity Fund	Swap equity contracts	$	1,690,350	$	—	$	1,690,350	$	1,055,596	$	—	$	634,754
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		10,817		—		10,817		—		—		10,817
Emerging Markets Bond Strategy Fund	Swap equity contracts		707		—		707		333		374		—

¹ Centrally cleared swaps are excluded from these reported amounts.

The following table presents deposits held by others in connection with derivative investments as of September 30, 2017. The derivatives tables following the Schedule of Investments list each counterparty for which cash collateral may have been pledged or received at period end. The Funds have the right to offset these deposits against any related liabilities outstanding with each counterparty.

Counterparty	Cash Pledged		Cash Received
Emerging Markets 2x Strategy Fund
Goldman Sachs Group		12,600		—
Emerging Markets 2x Strategy Fund Total		12,600		—
Emerging Markets Bond Strategy Fund
Barclays Bank plc		113,808		—
Goldman Sachs Group		163,033		—
Emerging Markets Bond Strategy Fund Total		276,841		—
Event Driven and Distressed Strategies Fund
Barclays Bank plc		—		175,067
Goldman Sachs Group		73,904		—
Event Driven and Distressed Strategies Fund Total		73,904		175,067

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 67

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 4 – Fair Value Measurement

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

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

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

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

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

The 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.

Note 5 – Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
Long Short Equity Fund	0.90%
Event Driven and Distressed Strategies Fund	0.90%
Emerging Markets 2x Strategy Fund	0.90%
Emerging Markets Bond Strategy Fund	0.75%
Inverse Emerging Markets 2x Strategy Fund	0.90%

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

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

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

GI has contractually agreed to reduce fees and/or reimburse expenses for the Event Driven and Distressed Strategies Fund to the extent necessary to keep net operating expenses relative to the average daily net assets of A-Class, C-Class, H-Class, and Institutional Class shares (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividends on securities sold short, and extraordinary

68 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

If a Fund invests in an affiliated fund, the investing Fund’s adviser has agreed to waive fees at the investing fund level. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the period September 30, 2017, there were no waivers related to investments in affiliated funds.

For the period ended September 30, 2017, GFD retained sales charges of $90,853 relating to sales of A-Class shares of the Trust.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Trust’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Trust’s securities and cash. For providing the aforementioned services, MUIS is entitled to receive a monthly fee equal to an annual percentage of the Funds’ average daily net assets subject to certain minimum monthly fees and out of pocket expenses.

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, 2016, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180416001923/gug65857-ncsr.htm.

Note 6 – 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 joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 69

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2017, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
BNP Paribas					U.S Treasury Note
1.00%					1.13%
Due 10/02/17	$	126,905,733	$	126,916,309	02/28/21	$	131,780,200	$	129,443,901
Bank of America Merrill Lynch					U.S. Treasury Note
1.05%					1.63%
Due 10/02/17		63,452,867		63,458,419	05/31/23		65,690,800		64,722,010
RBC Capital Markets LLC					U.S. TIP Notes
0.98%					1.13%
Due 10/02/17		35,069,861		35,072,725	01/15/21		30,577,200		35,771,371
HSBC Securities, Inc.					U.S. Treasury Strips
0.91%					0.00%
Due 10/02/17		23,879,390		23,881,201	08/15/39		44,888,000		24,357,007
UMB Financial Corp.					Federal Home Loan Bank
0.91%					1.25%
Due 10/02/17		2,504,407		2,504,597	06/08/18		2,000,000		2,007,147
					U.S. Treasury Note
					1.63%
					05/15/26		573,300		547,365
							2,573,300		2,554,512

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, 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.

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund - Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

70 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2017, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
Long Short Equity Fund	$	348,175	$	(348,175	)	$	—	$	352,633	$	—	$	352,633
Event Driven and Distressed Strategies Fund		79,901		(79,901	)		—		81,922		—		81,922
Emerging Markets 2x Strategy Fund		129,746		(129,746	)		—		137,270		—		137,270

^(a) Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 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, 2017, 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)
Emerging Markets 2x Strategy Fund	$	18,380,743	$	1,517,034	$	(146,719	)	$	1,370,315
Emerging Markets Bond Strategy Fund		862,227		1,138		(4,581	)		(3,443	)
Event Driven and Distressed Strategies Fund		11,414,145		244,442		(68,334	)		176,108
Inverse Emerging Markets 2x Strategy Fund		656,901		—		(10,817	)		(10,817	)
Long Short Equity Fund		33,202,233		3,313,825		(2,526,951	)		786,874

Note 9 – Securities Transactions

For the period ended September 30, 2017, 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	$	46,068,467	$	35,571,132
Event Driven and Distressed Strategies Fund		1,163,617		1,458,665
Emerging Markets 2x Strategy Fund		62,550,249		52,901,307
Inverse Emerging Markets 2x Strategy Fund		—		—
Emerging Markets Bond Strategy Fund		—		—

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 71

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2017, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Loss
Emerging Markets 2x Strategy Fund	$	1,115,819	$	—	$	—

Note 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 11, 2018. 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 1.92% for the period ended September 30, 2017. The Funds did not have any borrowings outstanding under this agreement at September 30, 2017.

The average daily balances borrowed for the period ended September 30, 2017, were as follows:

Fund	Average Daily Balance
Long Short Equity Fund	$	4,579

Note 11 – Share Splits

Share splits occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
Inverse Emerging Markets 2x Strategy Fund	October 31, 2016	One-for-Six Reverse Split
Emerging Markets Bond Strategy Fund	November 07, 2016	One-for-Four Reverse Split

The effect of the reverse share splits were to divide the number of outstanding shares of the Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund by their split ratios, 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 prior to the effective date, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Note 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 Tribune 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.

72 | 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 or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

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. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but will wait to do so until it has resolved outstanding motions to dismiss filed by other defendants. Accordingly, the timing of the appeal is uncertain.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law.

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”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.) (“Reichman”).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek 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. The Creditor Trust

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 73

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

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 Bankruptcy 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 Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment. On May 30, 2017, the shareholder defendants filed a motion to remand the proceedings in the Creditor Trust and Reichman Actions to the Bankruptcy Court, for consideration of the collateral estoppel ground for dismissal raised by the Bankruptcy Court’s ruling in the Blavatnik Action. On August 18, 2017, the plaintiff in the Creditor Trust action filed a notice of dismissal of claims brought against defendants who had not answered the Third Amended Complaint. The same day, the plaintiff in the Reichman action filed a notice of dismissal of all claims against named defendants who had not filed an answer and withdrew his request for class certification of a defendant class. On September 5, 2017, the Court entered an order dismissing the Creditor Trust and Reichman actions with prejudice. The Court’s order dismissed the actions as to all defendants as well as to unnamed members of the putative defendant class in the Reichman action.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set. On April 21, 2017, the Bankruptcy Court issued an Opinion and Order After Trial in a related Lyondell litigation (the “Blavatnik Action”) rejecting claims for intentional fraudulent transfer and constructive fraudulent transfer in connection with the 2007 LBO. Based on this related ruling in the Blavatnik Action, the shareholder defendants filed a motion to dismiss the Litigation Trust Action on the grounds of collateral estoppel on May 30, 2017. Although the Bankruptcy Court had not yet ruled on the motion to dismiss, on August 15, 2017, the plaintiff in the Litigation Trust action filed a notice of dismissal of all claims against the defendants who joined the motion to dismiss. On August 18, 2017, the Litigation Trust plaintiff also withdrew his request for class certification of a defendant class in the Litigation Trust action. On September 5, 2017, the Court entered an order dismissing the Litigation Trust action with prejudice. The Court’s order dismissed the action as to all defendants as well as to unnamed members of the putative defendant class.

As a result of the dismissals above, there are no longer claims pending against the Rydex Series Funds related to the Lyondell merger.

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.

74 | 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 https://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 https://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 https://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 Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 25, 2017, 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 Security Investors, LLC (the “Advisor”) applicable to the Guggenheim Long Short Equity Fund, Guggenheim Event Driven and Distressed Strategies Fund, Rydex Emerging Markets 2x Strategy Fund, Rydex Inverse Emerging Markets 2x Strategy Fund, and Rydex Emerging Markets Bond Strategy Fund, each a series of the Trust (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 26, 2017 (together, with the May 25 meeting, the “Meetings”). The Board considered the materials provided by the Advisor and the review conducted at the April 26 meeting to be an integral part of the Trustees’ deliberations and their process in considering the renewal of the Investment Advisory Agreement.

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 the independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the renewal or approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent 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 substantial commitment to the recruitment and retention of high quality personnel; (c) 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; (d) each Fund’s overall fees and operating expenses compared with those of similar funds; (e) the level of

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 75

OTHER INFORMATION (Unaudited)(continued)

the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors that was 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 for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to such Fund; 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 (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. 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 considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, index rebalance frequency and tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. 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. With respect to the Funds that track an underlying index (“Index Funds”), the Board also discussed the correlation between an Index Fund’s assets under management and tracking error, noting that an Index Fund’s ability to replicate an underlying index rather than employ representative sampling depends, in part, upon the Index Fund’s size. 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 also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. 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

76 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

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 Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under the distribution agreement, Distribution Plans, and Distribution and Shareholder Services Plans 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 affiliate’s 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 | 77

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: Vice Chairman, Guggenheim Investments (2010-present). Former: President and CEO, certain other funds in the Fund Complex (2012-November 2017); Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	226	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle (1959)	Trustee, Member of the Audit Committee, Chairwoman and Member of the Compliance and Risk Oversight Committee, and Member of the Nominating and Governance Committee from 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	133	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Nominating and 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 (3) (2009-present).

78 | 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 - continued
John O. Demaret (1940)	Trustee and Member of the Audit Committee from 1997 to present; Member of the Compliance and Risk Oversight Committee from 2010 to present; Member of the Investment and Performance Committee from 2014 to present.	Retired.	133	None.
Werner E. Keller (1940)	Chairman and Trustee of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; Member of the Compliance and Risk Oversight Committee from 2015 to present; Member of the Nominating and Governance Committee from 2015 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; and Chairman and Member of the Nominating and 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; Member of the Nominating and 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.
Sandra G. Sponem (1958)	Trustee, Member of the Audit Committee, and Chairwoman and Member of the Investment and Performance Committee from 2016 to present.	Current: Retired Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	133	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 79

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
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.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2014-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager of Mutual Fund Administration, Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Treasurer and Assistant Treasurer, certain other funds in the Fund Complex (2010-present); Managing Director, Guggenheim Investments (2015-present); Chief Financial Officer, Guggenheim Specialized Products, LLC (2016-present). Former: Managing Director and Director, Transparent Value, LLC (2010-2016); Director, Guggenheim Partners Investment Management, LLC (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	President (November 2017-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (November 2017-present); 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).
Mark E. Mathiasen (1978)	Secretary (November 2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).

80 | 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 - continued
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).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (November 2017-present)	Current: Vice President, Guggenheim Investments (July 2017-present); Assistant Treasurer, certain other funds in the Fund Complex (November 2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (February-June 2017); Senior Analyst of US Fund Administration, HGINA (2014-January 2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 81

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

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 personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

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 Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes 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 Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. 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 your personal 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. In connection with servicing your accounts or 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 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 personal 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 share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

82 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

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 (as defined in Rule 30a-3(c) under the Investment Company Act) as of a date within 90 days of this filing and have concluded that based on such evaluation as required by Rule 30a-3(b) under the Investment Company Act, 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 within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 (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 last 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not Applicable.

Item 13. 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/ Amy J. Lee
	Amy J. Lee, President
Date	December 8, 2017

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/ Amy J. Lee
	Amy J. Lee, President
Date	December 8, 2017
By (Signature and Title)*	/s/ John L. Sullivan
	John L. Sullivan, Chief Financial Officer and Treasurer
Date	December 8, 2017

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