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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

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

702 King Farm Boulevard, Suite 200
Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds
702 King Farm Boulevard, Suite 200
Rockville, 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: April 1, 2020 - March 31, 2021

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

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

Item 1. Reports to Stockholders.

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

3.31.2021

Rydex Funds Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

GuggenheimInvestments.com RSECF-ANN-2-0321x0322

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	18
BIOTECHNOLOGY FUND	26
CONSUMER PRODUCTS FUND	34
ELECTRONICS FUND	42
ENERGY FUND	50
ENERGY SERVICES FUND	58
FINANCIAL SERVICES FUND	66
HEALTH CARE FUND	76
INTERNET FUND	84
LEISURE FUND	92
PRECIOUS METALS FUND	101
REAL ESTATE FUND	109
RETAILING FUND	118
TECHNOLOGY FUND	126
TELECOMMUNICATIONS FUND	135
TRANSPORTATION FUND	143
UTILITIES FUND	151
NOTES TO FINANCIAL STATEMENTS	159
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	172
OTHER INFORMATION	173
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	175
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	180

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2021

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for Rydex Sector Funds (the “Fund” or “Funds”). This report covers performance for the 12-month period ended March 31, 2021.

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

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

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

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

Sincerely,

Security Investors, LLC

April 30, 2021

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.

COVID-19. The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, the financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in the Fund are subject to investment risk, including the possible loss of the entire principal amount invested. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

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 within the same sector or industry. Certain of the sector funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund.

2 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2021

In the 12 months ended March 31, 2021, the Standard & Poor’s 500^® (“S&P 500^®”) Index returned 56.35% as the equity market roared back to life after a sharp COVID-19-related selloff. This increase was in spite of ongoing personal and economic hardships imposed by COVID-19, highlighting the crucial role of policy support in the form of monetary and fiscal stimulus, which has succeeded in averting a lengthy recession in the U.S. These policy initiatives, particularly on the monetary side, increased market liquidity and lowered borrowing rates, reassuring equity investors that the Federal Reserve (the “Fed”) would do everything in its power to maintain market stability.

We upgraded our 2021 U.S. economic growth forecast during the first quarter from 5.5% to over 7%, factoring in more fiscal stimulus than previously anticipated. This forecast captures the effect of stimulus representing roughly 11% of 2020–2021 gross domestic product (“GDP”), versus the previous calculation of about 8%. We see strength in the consumer sector and in housing activity. In addition, U.S. vaccinations for COVID-19 continue to accelerate, nearing 3 million doses per day by the end of the first quarter. More than 213 million doses have been administered in the U.S. so far, and about 35% of the U.S. population has been fully vaccinated. The U.S. is seeing the best-case scenario unfold in its vaccine rollout, but other countries have not been as fortunate.

Europe’s vaccine rollout hit a major speedbump during the first quarter when questions surrounding the safety of the AstraZeneca vaccine led several major European countries to temporarily suspend distribution. Safety concerns, coupled with supply constraints, meant that less than 10% of the populations in Germany, France, and Italy had been vaccinated by the end of the first quarter, well under the pace needed to reach 70% inoculated by summer. Any delay in ending the pandemic on a global scale has implications for other countries too, including the U.S., where travel and hospitality workers represent a large share of the unemployed.

Despite vaccination delays in Europe and its implications abroad, we saw meaningful improvement in the labor market in the first quarter as states moved forward with business re-openings. Seasonally adjusted initial jobless claims fell by 97,000 to 684,000 in the week ending March 20, 2021 the lowest level since the pandemic began, before seeing an uptick the following week to 719,000. We saw more positive news across the board in the March payroll report with 916,000 jobs added, with 156,000 more from revisions. Standing in the way of additional labor market gains are local government restrictions on certain sectors, although easing of these restrictions is expected by summer.

Economic developments drove a sharp increase in U.S. Treasury yields. The market pulled forward expectations of the next Fed rate hike from December 2023 to December 2022, while repricing the long-run terminal fed funds rate estimate to 2.25% from just 0.55% last August. We do not expect the Fed to raise interest rates as early as the market is anticipating, even though we expect strong GDP growth in coming years.

Year-over-year inflation measures will rise over the next several months due to base effects, which may be compounded by supply chain disruptions in the goods sector and potential capacity constraints for certain services. However, we think these factors will prove to be short-lived, with base effects set to dampen inflation starting in the summer months. Moreover, the Fed is focused on generating sustainably higher inflation. Even if core inflation rises above the Fed’s 2% target in 2021, the Fed’s focus is on a long-term average of 2%. With years of shortfalls to make up, and the Fed now targeting labor market disparities as part of an expanded definition of full employment, we expect policymakers to remain resolutely patient. Any tapering of asset purchases will likely be deferred until later in 2022, with the first rate hike likely to come sometime after that.

We expect easy financial conditions and low rates to support credit over the next few years. With market optimism pulling forward rate hike expectations and causing bond yields to rise, we view this as an opportunity to add incremental yield to portfolios.

For the 12-month period ended March 31, 2021, the S&P 500^® Index* returned, as noted, 56.35%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 44.57%. The return of the MSCI Emerging Markets Index* was 58.39%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 0.71% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 23.72%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.12% for the 12-month period.

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

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2021

*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.

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

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

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

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

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

S&P 500^® Consumer Discretionary Index is a sub-index of the S&P 500^® . 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^® . The Consumer Staples index comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

S&P 500^® Energy Index is a sub-index of the S&P 500^® . 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^® . 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, and financial investment, and real estate, including REITs.

S&P 500^® Health Care Index is a sub-index of the S&P 500^® . 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^® . 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^® . 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^® . 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^® Telecommunications Services Index is a sub-index of the S&P 500^® . 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^® . 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 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 September 30, 2020 and ending March 31, 2021.

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 ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.39%	71.65%	$ 1,000.00	$ 1,716.50	$ 9.41
A-Class	1.65%	71.40%	1,000.00	1,714.00	11.16
C-Class	2.40%	70.79%	1,000.00	1,707.90	16.20
H-Class	1.62%	71.39%	1,000.00	1,713.90	10.96
Basic Materials Fund
Investor Class	1.40%	32.16%	1,000.00	1,321.60	8.10
A-Class	1.65%	31.99%	1,000.00	1,319.90	9.54
C-Class	2.40%	31.50%	1,000.00	1,315.00	13.85
H-Class	1.67%	31.98%	1,000.00	1,319.80	9.66
Biotechnology Fund
Investor Class	1.40%	9.25%	1,000.00	1,092.50	7.30
A-Class	1.65%	9.10%	1,000.00	1,091.00	8.60
C-Class	2.40%	8.69%	1,000.00	1,086.90	12.49
H-Class	1.65%	9.11%	1,000.00	1,091.10	8.60
Consumer Products Fund
Investor Class	1.41%	13.31%	1,000.00	1,133.10	7.50
A-Class	1.65%	13.15%	1,000.00	1,131.50	8.77
C-Class	2.41%	12.73%	1,000.00	1,127.30	12.78
H-Class	1.65%	13.15%	1,000.00	1,131.50	8.77
Electronics Fund
Investor Class	1.39%	40.09%	1,000.00	1,400.90	8.32
A-Class	1.65%	39.92%	1,000.00	1,399.20	9.87
C-Class	2.40%	39.39%	1,000.00	1,393.90	14.32
H-Class	1.65%	39.91%	1,000.00	1,399.10	9.87
Energy Fund
Investor Class	1.38%	71.57%	1,000.00	1,715.70	9.34
A-Class	1.63%	71.37%	1,000.00	1,713.70	11.03
C-Class	2.40%	70.72%	1,000.00	1,707.20	16.20
H-Class	1.64%	71.34%	1,000.00	1,713.40	11.09
Energy Services Fund
Investor Class	1.39%	82.83%	1,000.00	1,828.30	9.80
A-Class	1.65%	82.59%	1,000.00	1,825.90	11.62
C-Class	2.39%	81.93%	1,000.00	1,819.30	16.80
H-Class	1.63%	82.59%	1,000.00	1,825.90	11.48
Financial Services Fund
Investor Class	1.38%	36.89%	1,000.00	1,368.90	8.15
A-Class	1.67%	36.72%	1,000.00	1,367.20	9.86
C-Class	2.39%	36.22%	1,000.00	1,362.20	14.08
H-Class	1.64%	36.71%	1,000.00	1,367.10	9.68
Health Care Fund
Investor Class	1.41%	12.36%	1,000.00	1,123.60	7.47
A-Class	1.65%	12.21%	1,000.00	1,122.10	8.73
C-Class	2.40%	11.79%	1,000.00	1,117.90	12.67
H-Class	1.65%	12.23%	1,000.00	1,122.30	8.73

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Internet Fund
Investor Class	1.40%	20.37%	$ 1,000.00	$ 1,203.70	$ 7.69
A-Class	1.65%	20.22%	1,000.00	1,202.20	9.06
C-Class	2.40%	19.78%	1,000.00	1,197.80	13.15
H-Class	1.65%	20.21%	1,000.00	1,202.10	9.06
Leisure Fund
Investor Class	1.38%	32.62%	1,000.00	1,326.20	8.00
A-Class	1.65%	32.47%	1,000.00	1,324.70	9.56
C-Class	2.40%	31.96%	1,000.00	1,319.60	13.88
H-Class	1.64%	32.47%	1,000.00	1,324.70	9.51
Precious Metals Fund
Investor Class	1.30%	(7.99%)	1,000.00	920.10	6.22
A-Class	1.55%	(8.11%)	1,000.00	918.90	7.42
C-Class	2.30%	(8.45%)	1,000.00	915.50	10.98
H-Class	1.56%	(8.12%)	1,000.00	918.80	7.46
Real Estate Fund
A-Class	1.65%	25.55%	1,000.00	1,255.50	9.28
C-Class	2.40%	25.07%	1,000.00	1,250.70	13.47
H-Class	1.62%	25.58%	1,000.00	1,255.80	9.11
Retailing Fund
Investor Class	1.41%	25.57%	1,000.00	1,255.70	7.93
A-Class	1.65%	25.41%	1,000.00	1,254.10	9.27
C-Class	2.40%	24.91%	1,000.00	1,249.10	13.46
H-Class	1.67%	25.39%	1,000.00	1,253.90	9.38
Technology Fund
Investor Class	1.40%	22.55%	1,000.00	1,225.50	7.77
A-Class	1.65%	22.40%	1,000.00	1,224.00	9.15
C-Class	2.40%	21.95%	1,000.00	1,219.50	13.28
H-Class	1.67%	22.39%	1,000.00	1,223.90	9.26
Telecommunications Fund
Investor Class	1.42%	20.77%	1,000.00	1,207.70	7.82
A-Class	1.66%	20.60%	1,000.00	1,206.00	9.13
C-Class	2.40%	20.17%	1,000.00	1,201.70	13.17
H-Class	1.64%	20.63%	1,000.00	1,206.30	9.02
Transportation Fund
Investor Class	1.40%	42.56%	1,000.00	1,425.60	8.47
A-Class	1.65%	42.38%	1,000.00	1,423.80	9.97
C-Class	2.40%	41.85%	1,000.00	1,418.50	14.47
H-Class	1.65%	42.39%	1,000.00	1,423.90	9.97
Utilities Fund
Investor Class	1.41%	11.31%	1,000.00	1,113.10	7.43
A-Class	1.65%	11.19%	1,000.00	1,111.90	8.69
C-Class	2.41%	10.76%	1,000.00	1,107.60	12.66
H-Class	1.66%	11.19%	1,000.00	1,111.90	8.74

THE RYDEX FUNDS ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.39%	5.00%	$ 1,000.00	$ 1,018.00	$ 6.99
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.62%	5.00%	1,000.00	1,016.85	8.15
Basic Materials Fund
Investor Class	1.40%	5.00%	1,000.00	1,017.95	7.04
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
Biotechnology Fund
Investor Class	1.40%	5.00%	1,000.00	1,017.95	7.04
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
Consumer Products Fund
Investor Class	1.41%	5.00%	1,000.00	1,017.90	7.09
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.41%	5.00%	1,000.00	1,012.91	12.09
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
Electronics Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.00	6.99
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
Energy Fund
Investor Class	1.38%	5.00%	1,000.00	1,018.05	6.94
A-Class	1.63%	5.00%	1,000.00	1,016.80	8.20
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Energy Services Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.00	6.99
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.63%	5.00%	1,000.00	1,016.80	8.20
Financial Services Fund
Investor Class	1.38%	5.00%	1,000.00	1,018.05	6.94
A-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Health Care Fund
Investor Class	1.41%	5.00%	1,000.00	1,017.90	7.09
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Internet Fund
Investor Class	1.40%	5.00%	$ 1,000.00	$ 1,017.95	$ 7.04
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
Leisure Fund
Investor Class	1.38%	5.00%	1,000.00	1,018.05	6.94
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Precious Metals Fund
Investor Class	1.30%	5.00%	1,000.00	1,018.45	6.54
A-Class	1.55%	5.00%	1,000.00	1,017.20	7.80
C-Class	2.30%	5.00%	1,000.00	1,013.46	11.55
H-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
Real Estate Fund
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.62%	5.00%	1,000.00	1,016.85	8.15
Retailing Fund
Investor Class	1.41%	5.00%	1,000.00	1,017.90	7.09
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
Technology Fund
Investor Class	1.40%	5.00%	1,000.00	1,017.95	7.04
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
Telecommunications Fund
Investor Class	1.42%	5.00%	1,000.00	1,017.85	7.14
A-Class	1.66%	5.00%	1,000.00	1,016.65	8.35
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Transportation Fund
Investor Class	1.40%	5.00%	1,000.00	1,017.95	7.04
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
Utilities Fund
Investor Class	1.41%	5.00%	1,000.00	1,017.90	7.09
A-Class	1.65%	5.00%	1,000.00	1,016.70	8.30
C-Class	2.41%	5.00%	1,000.00	1,012.91	12.09
H-Class	1.66%	5.00%	1,000.00	1,016.65	8.35

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2020 to March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

BANKING FUND

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

For the one-year period ended March 31, 2021, Banking Fund Investor Class returned 90.06%, compared with 67.50% for the S&P 500 Financials Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by regional banks, diversified banks, and consumer finance.

Capital One Financial Corp., Truist Financial Corp., and Bank of America Corp. contributed the most to the Fund’s return for the period. HSBC Holdings plc ADR and CVB Financial Corp. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Bank of America Corp.	4.1%
Citigroup, Inc.	4.1%
JPMorgan Chase & Co.	4.0%
Wells Fargo & Co.	4.0%
U.S. Bancorp	3.3%
Truist Financial Corp.	3.2%
PNC Financial Services Group, Inc.	3.1%
Capital One Financial Corp.	2.8%
Bank of New York Mellon Corp.	2.4%
State Street Corp.	2.0%
Top Ten Total	33.0%
“Ten Largest Holdings” excludes any temporary cash investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	90.06%	12.72%	7.74%
A-Class Shares	88.72%	12.35%	7.42%
A-Class Shares with sales charge‡	79.77%	11.26%	6.90%
C-Class Shares	87.34%	11.51%	6.62%
C-Class Shares with CDSC§	86.34%	11.51%	6.62%
H-Class Shares**	88.66%	12.35%	7.32%
S&P 500 Financials Index	67.50%	15.67%	12.11%
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2021
BANKING FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Banks - 91.0%
Bank of America Corp.		19,643	$	759,988
Citigroup, Inc.		10,413		757,546
JPMorgan Chase & Co.		4,861		739,990
Wells Fargo & Co.		18,837		735,962
U.S. Bancorp		11,082		612,945
Truist Financial Corp.		10,220		596,030
PNC Financial Services Group, Inc.		3,294		577,800
Bank of New York Mellon Corp.		9,306		440,081
State Street Corp.		4,359		366,200
First Republic Bank		2,164		360,847
Fifth Third Bancorp		9,174		343,566
SVB Financial Group*		651		321,373
Northern Trust Corp.		3,012		316,591
M&T Bank Corp.		1,959		297,004
Regions Financial Corp.		14,349		296,450
KeyCorp		14,688		293,466
Citizens Financial Group, Inc.		6,571		290,110
Huntington Bancshares, Inc.		16,982		266,957
Signature Bank		1,067		241,249
ICICI Bank Ltd. ADR*		14,075		225,622
HDFC Bank Ltd. ADR*		2,833		220,096
Comerica, Inc.		3,018		216,511
East West Bancorp, Inc.		2,861		211,142
Toronto-Dominion Bank		3,138		204,629
Western Alliance Bancorporation		2,154		203,424
Royal Bank of Canada		2,204		203,231
First Horizon Corp.		11,935		201,821
Bank of Nova Scotia		3,226		201,786
Zions Bancorp North America		3,639		199,999
Commerce Bancshares, Inc.		2,581		197,730
Bank of Montreal		2,214		197,312
HSBC Holdings plc ADR		6,727		196,025
Popular, Inc.		2,752		193,521
First Citizens BancShares, Inc. — Class A		230		192,227
UBS Group AG		12,204		189,528
Canadian Imperial Bank of Commerce		1,888		184,779
Deutsche Bank AG*		14,880		178,560
TCF Financial Corp.		3,774		175,340
Prosperity Bancshares, Inc.		2,293		171,723
Cullen/Frost Bankers, Inc.		1,575		171,297
Pinnacle Financial Partners, Inc.		1,921		170,316
Synovus Financial Corp.		3,721		170,236
First Financial Bankshares, Inc.		3,617		169,022
Credit Suisse Group AG ADR1		14,667		155,470
Glacier Bancorp, Inc.		2,648		151,148
South State Corp.		1,920		150,739
CIT Group, Inc.		2,921		150,461
Bank OZK		3,643		148,817
United Bankshares, Inc.		3,829		147,723
Webster Financial Corp.		2,594		142,955
Home BancShares, Inc.		5,195		140,525
UMB Financial Corp.		1,504		138,864
PacWest Bancorp		3,615		137,912
Wintrust Financial Corp.		1,768		134,014
Community Bank System, Inc.		1,745		133,876
BankUnited, Inc.		2,981		131,015
Umpqua Holdings Corp.		7,367		129,291
Ameris Bancorp		2,418		126,969
Hancock Whitney Corp.		2,986		125,442
Bank of Hawaii Corp.		1,388		124,212
First Hawaiian, Inc.		4,503		123,247
BancorpSouth Bank		3,714		120,631
Simmons First National Corp. — Class A		3,981		118,116
Old National Bancorp		6,100		117,974
Associated Banc-Corp.		5,483		117,007
Independent Bank Group, Inc.		1,613		116,523
United Community Banks, Inc.		3,348		114,234
Texas Capital Bancshares, Inc.*		1,608		114,039
Columbia Banking System, Inc.		2,608		112,379
Fulton Financial Corp.		6,454		109,912
Cadence BanCorp		5,050		104,686
Total Banks				16,898,213
Savings & Loans - 3.3%
People’s United Financial, Inc.		10,437		186,823
New York Community Bancorp, Inc.		13,076		165,019
Sterling Bancorp		5,902		135,864
Investors Bancorp, Inc.		8,819		129,551
Total Savings & Loans				617,257
Diversified Financial Services - 2.8%
Capital One Financial Corp.		4,065		517,190
Insurance - 2.4%
Equitable Holdings, Inc.		7,790		254,110
Voya Financial, Inc.		2,955		188,056
Total Insurance				442,166
Total Common Stocks
(Cost $13,133,740)				18,474,826

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
BANKING FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	63,828	$	63,828
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		29,019		29,019
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		26,485		26,485
Total Repurchase Agreements
(Cost $119,332)				119,332
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.6%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		115,144		115,144
Total Securities Lending Collateral
(Cost $115,144)				115,144
Total Investments - 100.8%
(Cost $13,368,216)			$	18,709,302
Other Assets & Liabilities, net - (0.8)%				(139,476	)
Total Net Assets - 100.0%			$	18,569,826

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	18,474,826	$	—	$	—	$	18,474,826
Repurchase Agreements		—		119,332		—		119,332
Securities Lending Collateral		115,144		—		—		115,144
Total Assets	$	18,589,970	$	119,332	$	—	$	18,709,302

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $108,491 of securities loaned (cost $13,248,884)	$	18,589,970
Repurchase agreements, at value (cost $119,332)		119,332
Receivables:
Fund shares sold		58,942
Dividends		45,480
Foreign tax reclaims		544
Securities lending income		11
Total assets		18,814,279
Liabilities:
Payable for:
Return of securities lending collateral		115,144
Fund shares redeemed		82,810
Management fees		14,702
Transfer agent and administrative fees		4,653
Distribution and service fees		2,533
Portfolio accounting fees		1,730
Trustees’ fees*		322
Miscellaneous		22,559
Total liabilities		244,453
Commitments and contingent liabilities (Note 10)		—
Net assets	$	18,569,826
Net assets consist of:
Paid in capital	$	26,457,104
Total distributable earnings (loss)		(7,887,278	)
Net assets	$	18,569,826
Investor Class:
Net assets	$	9,027,335
Capital shares outstanding		94,321
Net asset value per share	$	95.71
A-Class:
Net assets	$	4,049,551
Capital shares outstanding		47,168
Net asset value per share	$	85.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	90.13
C-Class:
Net assets	$	892,089
Capital shares outstanding		11,884
Net asset value per share	$	75.07
H-Class:
Net assets	$	4,600,851
Capital shares outstanding		55,111
Net asset value per share	$	83.48

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $5,081)	$	343,052
Interest		26
Income from securities lending, net		84
Total investment income		343,162
Expenses:
Management fees		90,392
Distribution and service fees:
A-Class		7,799
C-Class		7,684
H-Class		2,817
Transfer agent and administrative fees		30,713
Portfolio accounting fees		10,636
Professional fees		8,148
Trustees’ fees*		4,200
Custodian fees		1,882
Miscellaneous		5,848
Total expenses		170,119
Net investment income		173,043
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(10,139,015	)
Net realized loss		(10,139,015	)
Net change in unrealized appreciation (depreciation) on:
Investments		16,178,865
Net change in unrealized appreciation (depreciation)		16,178,865
Net realized and unrealized gain		6,039,850
Net increase in net assets resulting from operations	$	6,212,893

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

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

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	173,043		$	273,567
Net realized gain (loss) on investments		(10,139,015	)		15,650
Net change in unrealized appreciation (depreciation) on investments		16,178,865			(12,335,006	)
Net increase (decrease) in net assets resulting from operations		6,212,893			(12,045,789	)
Distributions to shareholders:
Investor Class		(123,639	)		(108,737	)
A-Class		(109,741	)		(31,237	)
C-Class		(28,038	)		(9,418	)
H-Class		(12,149	)		(30,264	)
Total distributions to shareholders		(273,567	)		(179,656	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		100,467,394			97,783,948
A-Class		776,718			840,548
C-Class		1,445,210			1,729,649
H-Class		6,995,067			8,514,542
Distributions reinvested
Investor Class		120,914			108,041
A-Class		106,076			30,103
C-Class		27,016			9,418
H-Class		12,065			30,213
Cost of shares redeemed
Investor Class		(111,860,093	)		(75,479,771	)
A-Class		(1,524,259	)		(1,702,700	)
C-Class		(1,789,662	)		(1,910,665	)
H-Class		(3,368,112	)		(10,167,108	)
Net increase (decrease) from capital share transactions		(8,591,666	)		19,786,218
Net increase (decrease) in net assets		(2,652,340	)		7,560,773
Net assets:
Beginning of year		21,222,166			13,661,393
End of year	$	18,569,826		$	21,222,166
Capital share activity:
Shares sold
Investor Class		1,395,191			1,226,311
A-Class		10,123			11,635
C-Class		25,920			27,344
H-Class		102,619			120,683
Shares issued from reinvestment of distributions
Investor Class		1,596			1,272
A-Class		1,560			391
C-Class		453			138
H-Class		182			403
Shares redeemed
Investor Class		(1,640,247	)		(970,220	)
A-Class		(23,881	)		(24,173	)
C-Class		(32,869	)		(30,321	)
H-Class		(51,236	)		(140,736	)
Net increase (decrease) in shares		(210,589	)		222,727

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

BANKING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	51.83		$	74.58		$	86.27		$	76.86		$	56.13
Income (loss) from investment operations:
Net investment income (loss)a		1.25			1.14			.81			.60			.53
Net gain (loss) on investments (realized and unrealized)		44.89			(23.38	)		(10.92	)		9.12			20.51
Total from investment operations		46.14			(22.24	)		(10.11	)		9.72			21.04
Less distributions from:
Net investment income		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Total distributions		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Net asset value, end of period	$	95.71		$	51.83		$	74.58		$	86.27		$	76.86
Total Return		90.06	%		(30.08	%)		(11.63	%)		12.63	%		37.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,027		$	17,507		$	5,997		$	26,209		$	41,473
Ratios to average net assets:
Net investment income (loss)		1.79	%		1.47	%		0.97	%		0.73	%		0.74	%
Total expenses		1.43	%		1.48	%		1.46	%		1.38	%		1.38	%
Portfolio turnover rate		799	%		360	%		633	%		772	%		907	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	46.98		$	67.81		$	78.80		$	70.41		$	51.55
Income (loss) from investment operations:
Net investment income (loss)a		1.02			.87			.57			.37			.33
Net gain (loss) on investments (realized and unrealized)		40.11			(21.19	)		(9.98	)		8.33			18.84
Total from investment operations		41.13			(20.32	)		(9.41	)		8.70			19.17
Less distributions from:
Net investment income		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Total distributions		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Net asset value, end of period	$	85.85		$	46.98		$	67.81		$	78.80		$	70.41
Total Returnb		88.72	%		(30.25	%)		(11.85	%)		12.37	%		37.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,050		$	2,789		$	4,849		$	4,076		$	5,934
Ratios to average net assets:
Net investment income (loss)		1.67	%		1.23	%		0.76	%		0.50	%		0.51	%
Total expenses		1.69	%		1.73	%		1.72	%		1.63	%		1.63	%
Portfolio turnover rate		799	%		360	%		633	%		772	%		907	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	41.57		$	60.51		$	71.05		$	63.98		$	47.22
Income (loss) from investment operations:
Net investment income (loss)a		.49			.31			(.05	)		(.17	)		(.05	)
Net gain (loss) on investments (realized and unrealized)		35.27			(18.74	)		(8.91	)		7.55			17.12
Total from investment operations		35.76			(18.43	)		(8.96	)		7.38			17.07
Less distributions from:
Net investment income		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Total distributions		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Net asset value, end of period	$	75.07		$	41.57		$	60.51		$	71.05		$	63.98
Total Returnb		87.34	%		(30.78	%)		(12.51	%)		11.54	%		36.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	892		$	764		$	1,284		$	4,079		$	5,634
Ratios to average net assets:
Net investment income (loss)		0.93	%		0.49	%		(0.07	%)		(0.25	%)		(0.09	%)
Total expenses		2.45	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		799	%		360	%		633	%		772	%		907	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	45.73		$	66.00		$	76.78		$	68.61		$	50.22
Income (loss) from investment operations:
Net investment income (loss)a		.85			.74			.45			.39			.29
Net gain (loss) on investments (realized and unrealized)		39.16			(20.50	)		(9.65	)		8.09			18.41
Total from investment operations		40.01			(19.76	)		(9.20	)		8.48			18.70
Less distributions from:
Net investment income		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Total distributions		(2.26	)		(.51	)		(1.58	)		(.31	)		(.31	)
Net asset value, end of period	$	83.48		$	45.73		$	66.00		$	76.78		$	68.61
Total Return		88.66	%		(30.24	%)		(11.89	%)		12.38	%		37.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,601		$	162		$	1,531		$	14,220		$	8,467
Ratios to average net assets:
Net investment income (loss)		1.15	%		1.02	%		0.60	%		0.52	%		0.45	%
Total expenses		1.63	%		1.74	%		1.70	%		1.62	%		1.63	%
Portfolio turnover rate		799	%		360	%		633	%		772	%		907	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

BASIC MATERIALS FUND

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

For the one-year period ended March 31, 2021, Basic Materials Fund Investor Class returned 89.00%, compared with 78.29% for the S&P 500 Materials Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by the specialty chemicals, steel, and gold industries.

Freeport-McMoRan, Inc., DuPont de Nemours, Inc., and Dow, Inc. contributed the most to the Fund’s return for the period. Arconic Corp., Coeur Mining, Inc., and Livent Corp. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Sherwin-Williams Co.	3.0%
Air Products and Chemicals, Inc.	2.9%
Ecolab, Inc.	2.8%
Dow, Inc.	2.5%
Newmont Corp.	2.5%
Freeport-McMoRan, Inc.	2.4%
DuPont de Nemours, Inc.	2.3%
PPG Industries, Inc.	2.2%
International Flavors & Fragrances, Inc.	2.1%
Corteva, Inc.	2.1%
Top Ten Total	24.8%
“Ten Largest Holdings” excludes any temporary cash investments.

18 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	89.00%	13.84%	4.76%
A-Class Shares	88.52%	13.56%	4.50%
A-Class Shares with sales charge‡	79.54%	12.45%	3.99%
C-Class Shares	87.07%	12.71%	3.72%
C-Class Shares with CDSC§	86.07%	12.71%	3.72%
H-Class Shares**	88.51%	13.57%	4.39%
S&P 500 Materials Index	78.29%	14.31%	9.46%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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 shares 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.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS	March 31, 2021
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 98.6%
Chemicals - 42.5%
Sherwin-Williams Co.		1,959	$	1,445,762
Air Products and Chemicals, Inc.		4,998		1,406,137
Ecolab, Inc.		6,434		1,377,326
Dow, Inc.		18,689		1,194,975
DuPont de Nemours, Inc.		14,379		1,111,209
PPG Industries, Inc.		6,926		1,040,701
International Flavors & Fragrances, Inc.		7,406		1,033,952
LyondellBasell Industries N.V. — Class A		9,684		1,007,620
Linde plc		3,361		941,551
Celanese Corp. — Class A		4,831		723,732
Albemarle Corp.		4,813		703,227
Eastman Chemical Co.		6,048		666,006
FMC Corp.		5,974		660,784
RPM International, Inc.		6,660		611,721
Mosaic Co.		18,535		585,891
Westlake Chemical Corp.		6,461		573,672
CF Industries Holdings, Inc.		11,588		525,863
Axalta Coating Systems Ltd.*		15,497		458,401
Huntsman Corp.		15,252		439,715
Olin Corp.		11,106		421,695
Nutrien Ltd.		7,747		417,486
Sociedad Quimica y Minera de Chile S.A. ADR		7,620		404,393
Ashland Global Holdings, Inc.		4,542		403,193
Chemours Co.		13,667		381,446
Valvoline, Inc.		14,425		376,060
Element Solutions, Inc.		19,379		354,442
W R Grace & Co.		5,804		347,428
HB Fuller Co.		5,100		320,841
Sensient Technologies Corp.		4,020		313,560
Ingevity Corp.*		4,120		311,184
Total Chemicals				20,559,973
Mining - 19.1%
Newmont Corp.		19,753		1,190,513
Freeport-McMoRan, Inc.*		35,338		1,163,680
Barrick Gold Corp.		42,305		837,639
Rio Tinto plc ADR		6,595		512,102
BHP Group Ltd. ADR1		7,045		488,853
Royal Gold, Inc.		4,332		466,210
Wheaton Precious Metals Corp.		12,128		463,411
Franco-Nevada Corp.		3,663		458,937
Agnico Eagle Mines Ltd.		7,782		449,878
AngloGold Ashanti Ltd. ADR1		20,039		440,257
Alcoa Corp.*		13,462		437,380
Kirkland Lake Gold Ltd.		12,180		411,684
Teck Resources Ltd. — Class B		20,135		386,189
First Majestic Silver Corp.*,1		24,280		378,282
Pan American Silver Corp.		12,437		373,483
Arconic Corp.*		11,000		279,290
Livent Corp.*		15,940		276,081
Coeur Mining, Inc.*		27,220		245,797
Total Mining				9,259,666
Packaging & Containers - 12.8%
Ball Corp.		10,973		929,852
Westrock Co.		12,371		643,910
Amcor plc		54,544		637,074
Crown Holdings, Inc.		6,526		633,283
Packaging Corporation of America		4,637		623,584
AptarGroup, Inc.		3,734		528,996
Berry Global Group, Inc.*		8,319		510,786
Sealed Air Corp.		10,124		463,882
Sonoco Products Co.		6,929		438,606
Graphic Packaging Holding Co.		21,126		383,648
Silgan Holdings, Inc.		8,902		374,151
Total Packaging & Containers				6,167,772
Iron & Steel - 10.6%
Nucor Corp.		11,337		910,021
Vale S.A. ADR		52,060		904,803
Cleveland-Cliffs, Inc.*		30,110		605,512
Steel Dynamics, Inc.		11,624		590,034
Reliance Steel & Aluminum Co.		3,599		548,092
United States Steel Corp.		18,977		496,628
ArcelorMittal S.A.*		15,363		448,139
Commercial Metals Co.		11,259		347,227
Allegheny Technologies, Inc.*		13,386		281,909
Total Iron & Steel				5,132,365
Building Materials - 5.8%
Vulcan Materials Co.		4,890		825,188
Martin Marietta Materials, Inc.		2,354		790,520
Louisiana-Pacific Corp.		7,739		429,205
Eagle Materials, Inc.		3,110		418,015
Summit Materials, Inc. — Class A*		11,371		318,615
Total Building Materials				2,781,543
Forest Products & Paper - 2.2%
International Paper Co.		14,863		803,643
Domtar Corp.		6,717		248,193
Total Forest Products & Paper				1,051,836
Biotechnology - 2.1%
Corteva, Inc.		21,915		1,021,677
Household Products & Housewares - 1.4%
Avery Dennison Corp.		3,727		684,464
Housewares - 1.4%
Scotts Miracle-Gro Co. — Class A		2,720		666,319
Distribution & Wholesale - 0.7%
Avient Corp.		7,360		347,907
Total Common Stocks
(Cost $30,008,400)				47,673,522

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
BASIC MATERIALS FUND

	Shares		Value
RIGHTS† - 0.0%
Chemicals - 0.0%
Sociedad Quimica y Minera de Chile S.A. Expires 04/19/21*		1,445	$	4,479
Total Rights
(Cost $2,642)				4,479
EXCHANGE-TRADED FUNDS† - 0.9%
VanEck Vectors Junior Gold Miners ETF		10,371		466,798
Total Exchange-Traded Funds
(Cost $484,048)				466,798
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.5%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	381,120		381,120
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		173,275		173,275
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		158,141		158,141
Total Repurchase Agreements
(Cost $712,536)				712,536
SECURITIES LENDING COLLATERAL†,3 - 1.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		850,597	$	850,597
Total Securities Lending Collateral
(Cost $850,597)				850,597
Total Investments - 102.8%
(Cost $32,058,223)			$	49,707,932
Other Assets & Liabilities, net - (2.8)%				(1,354,150	)
Total Net Assets - 100.0%			$	48,353,782

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	47,673,522	$	—	$	—	$	47,673,522
Rights		4,479		—		—		4,479
Exchange-Traded Funds		466,798		—		—		466,798
Repurchase Agreements		—		712,536		—		712,536
Securities Lending Collateral		850,597		—		—		850,597
Total Assets	$	48,995,396	$	712,536	$	—	$	49,707,932

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $844,355 of securities loaned (cost $31,345,687)	$	48,995,396
Repurchase agreements, at value (cost $712,536)		712,536
Cash		724
Receivables:
Securities sold		3,408,063
Dividends		81,847
Fund shares sold		50,512
Securities lending income		915
Foreign tax reclaims		611
Total assets		53,250,604
Liabilities:
Payable for:
Fund shares redeemed		3,810,327
Return of securities lending collateral		850,597
Deferred foreign capital gain taxes		130,382
Management fees		34,575
Transfer agent and administrative fees		10,942
Portfolio accounting fees		4,068
Distribution and service fees		3,687
Trustees’ fees*		735
Miscellaneous		51,509
Total liabilities		4,896,822
Commitments and contingent liabilities (Note 10)		—
Net assets	$	48,353,782
Net assets consist of:
Paid in capital	$	33,681,154
Total distributable earnings (loss)		14,672,628
Net assets	$	48,353,782
Investor Class:
Net assets	$	38,112,065
Capital shares outstanding		486,319
Net asset value per share	$	78.37
A-Class:
Net assets	$	5,599,300
Capital shares outstanding		77,176
Net asset value per share	$	72.55
Maximum offering price per share (Net asset value divided by 95.25%)	$	76.17
C-Class:
Net assets	$	2,533,942
Capital shares outstanding		40,751
Net asset value per share	$	62.18
H-Class:
Net assets	$	2,108,475
Capital shares outstanding		30,047
Net asset value per share	$	70.17

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $8,493)	$	764,231
Interest		172
Income from securities lending, net		4,853
Total investment income		769,256
Expenses:
Management fees		311,527
Distribution and service fees:
A-Class		10,306
C-Class		21,836
H-Class		5,068
Transfer agent and administrative fees		101,847
Portfolio accounting fees		36,657
Professional fees		14,676
Trustees’ fees*		6,028
Custodian fees		5,344
Line of credit fees		27
Miscellaneous		48,737
Total expenses		562,053
Net investment income		207,203
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,888,261
Net realized gain		2,888,261
Net change in unrealized appreciation (depreciation) on:
Investments		18,305,356
Net change in unrealized appreciation (depreciation)		18,305,356
Net realized and unrealized gain		21,193,617
Net increase in net assets resulting from operations	$	21,400,820

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	207,203		$	207,953
Net realized gain on investments		2,888,261			1,496,946
Net change in unrealized appreciation (depreciation) on investments		18,305,356			(7,784,086	)
Net increase (decrease) in net assets resulting from operations		21,400,820			(6,079,187	)
Distributions to shareholders:
Investor Class		(971,597	)		(1,041,004	)
A-Class		(108,312	)		(222,796	)
C-Class		(69,007	)		(126,761	)
H-Class		(111,942	)		(70,981	)
Total distributions to shareholders		(1,260,858	)		(1,461,542	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		64,177,984			29,131,033
A-Class		2,021,511			1,863,446
C-Class		1,944,229			1,431,379
H-Class		4,011,677			5,043,330
Distributions reinvested
Investor Class		960,891			1,023,950
A-Class		104,132			212,298
C-Class		68,486			125,218
H-Class		111,869			70,857
Cost of shares redeemed
Investor Class		(55,658,771	)		(37,986,062	)
A-Class		(1,861,864	)		(4,863,920	)
C-Class		(2,232,010	)		(2,316,529	)
H-Class		(4,064,114	)		(5,432,603	)
Net increase (decrease) from capital share transactions		9,584,020			(11,697,603	)
Net increase (decrease) in net assets		29,723,982			(19,238,332	)
Net assets:
Beginning of year		18,629,800			37,868,132
End of year	$	48,353,782		$	18,629,800
Capital share activity:
Shares sold
Investor Class		1,007,217			497,060
A-Class		31,548			33,828
C-Class		37,998			30,294
H-Class		72,683			97,382
Shares issued from reinvestment of distributions
Investor Class		13,676			17,636
A-Class		1,600			3,930
C-Class		1,225			2,668
H-Class		1,777			1,355
Shares redeemed
Investor Class		(848,607	)		(660,790	)
A-Class		(31,218	)		(87,985	)
C-Class		(43,144	)		(49,672	)
H-Class		(66,030	)		(104,189	)
Net increase (decrease) in shares		178,725			(218,483	)

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	42.39		$	58.04		$	60.37		$	55.71		$	45.18
Income (loss) from investment operations:
Net investment income (loss)a		.43			.43			.35			.11			.18
Net gain (loss) on investments (realized and unrealized)		37.12			(13.42	)		(1.85	)		4.80			10.92
Total from investment operations		37.55			(12.99	)		(1.50	)		4.91			11.10
Less distributions from:
Net investment income		(.54	)		(.90	)		(.24	)		(.25	)		(.57	)
Net realized gains		(1.03	)		(1.76	)		(.59	)		—			—
Total distributions		(1.57	)		(2.66	)		(.83	)		(.25	)		(.57	)
Net asset value, end of period	$	78.37		$	42.39		$	58.04		$	60.37		$	55.71
Total Return		89.00	%		(23.61	%)		(2.36	%)		8.81	%		24.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	38,112		$	13,313		$	26,704		$	51,589		$	56,854
Ratios to average net assets:
Net investment income (loss)		0.67	%		0.74	%		0.59	%		0.18	%		0.35	%
Total expensesb		1.43	%		1.48	%		1.47	%		1.38	%		1.37	%
Portfolio turnover rate		162	%		67	%		247	%		257	%		361	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	39.41		$	54.27		$	56.66		$	52.42		$	42.65
Income (loss) from investment operations:
Net investment income (loss)a		.25			.26			.25			(.01	)		.03
Net gain (loss) on investments (realized and unrealized)		34.46			(12.46	)		(1.81	)		4.50			10.31
Total from investment operations		34.71			(12.20	)		(1.56	)		4.49			10.34
Less distributions from:
Net investment income		(.54	)		(.90	)		(.24	)		(.25	)		(.57	)
Net realized gains		(1.03	)		(1.76	)		(.59	)		—			—
Total distributions		(1.57	)		(2.66	)		(.83	)		(.25	)		(.57	)
Net asset value, end of period	$	72.55		$	39.41		$	54.27		$	56.66		$	52.42
Total Returnc		88.52	%		(23.80	%)		(2.60	%)		8.56	%		24.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,599		$	2,966		$	6,810		$	9,070		$	16,355
Ratios to average net assets:
Net investment income (loss)		0.44	%		0.48	%		0.45	%		(0.02	%)		0.06	%
Total expensesb		1.69	%		1.73	%		1.72	%		1.63	%		1.62	%
Portfolio turnover rate		162	%		67	%		247	%		257	%		361	%

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	34.17		$	47.73		$	50.32		$	46.93		$	38.52
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.11	)		(.21	)		(.38	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		29.75			(10.79	)		(1.55	)		4.02			9.27
Total from investment operations		29.58			(10.90	)		(1.76	)		3.64			8.98
Less distributions from:
Net investment income		(.54	)		(.90	)		(.24	)		(.25	)		(.57	)
Net realized gains		(1.03	)		(1.76	)		(.59	)		—			—
Total distributions		(1.57	)		(2.66	)		(.83	)		(.25	)		(.57	)
Net asset value, end of period	$	62.18		$	34.17		$	47.73		$	50.32		$	46.93
Total Returnc		87.07	%		(24.35	%)		(3.35	%)		7.75	%		23.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,534		$	1,526		$	2,930		$	5,494		$	5,824
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.23	%)		(0.42	%)		(0.75	%)		(0.66	%)
Total expensesb		2.44	%		2.47	%		2.47	%		2.38	%		2.37	%
Portfolio turnover rate		162	%		67	%		247	%		257	%		361	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	38.15		$	52.62		$	54.95		$	50.84		$	41.37
Income (loss) from investment operations:
Net investment income (loss)a		.19			.27			.12			(.05	)		.01
Net gain (loss) on investments (realized and unrealized)		33.40			(12.08	)		(1.62	)		4.41			10.03
Total from investment operations		33.59			(11.81	)		(1.50	)		4.36			10.04
Less distributions from:
Net investment income		(.54	)		(.90	)		(.24	)		(.25	)		(.57	)
Net realized gains		(1.03	)		(1.76	)		(.59	)		—			—
Total distributions		(1.57	)		(2.66	)		(.83	)		(.25	)		(.57	)
Net asset value, end of period	$	70.17		$	38.15		$	52.62		$	54.95		$	50.84
Total Return		88.51	%		(23.81	%)		(2.59	%)		8.57	%		24.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,108		$	825		$	1,424		$	9,220		$	8,077
Ratios to average net assets:
Net investment income (loss)		0.33	%		0.51	%		0.21	%		(0.09	%)		0.03	%
Total expensesb		1.68	%		1.72	%		1.71	%		1.62	%		1.62	%
Portfolio turnover rate		162	%		67	%		247	%		257	%		361	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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”).

For the one-year period ended March 31, 2021, Biotechnology Fund Investor Class returned 40.80%, compared with 34.04% for the S&P 500 Health Care Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by biotechnology, life sciences tools & services and pharmaceuticals.

Immunomedics, Inc., Moderna, Inc., and AbbVie, Inc. contributed the most to the Fund’s return for the period. Biogen Inc., Amicus Therapeutics, Inc., and Inovio Pharmaceuticals, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
AbbVie, Inc.	6.2%
Amgen, Inc.	5.3%
Gilead Sciences, Inc.	4.0%
Vertex Pharmaceuticals, Inc.	3.3%
Illumina, Inc.	3.2%
Regeneron Pharmaceuticals, Inc.	3.1%
Moderna, Inc.	3.1%
Biogen, Inc.	3.0%
Corteva, Inc.	2.6%
Alexion Pharmaceuticals, Inc.	2.6%
Top Ten Total	36.4%
“Ten Largest Holdings” excludes any temporary cash investments.

26 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	40.80%	13.01%	16.37%
A-Class Shares	40.44%	12.72%	16.08%
A-Class Shares with sales charge‡	33.76%	11.63%	15.51%
C-Class Shares	39.39%	11.88%	15.21%
C-Class Shares with CDSC§	38.39%	11.88%	15.21%
H-Class Shares**	40.45%	12.72%	15.96%
S&P 500 Health Care Index	34.04%	13.61%	15.61%
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS	March 31, 2021
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Biotechnology - 73.4%
Amgen, Inc.		41,014	$	10,204,693
Gilead Sciences, Inc.		118,157		7,636,487
Vertex Pharmaceuticals, Inc.*		29,460		6,330,659
Illumina, Inc.*		15,933		6,119,228
Regeneron Pharmaceuticals, Inc.*		12,686		6,002,254
Moderna, Inc.*		44,894		5,878,869
Biogen, Inc.*		20,330		5,687,318
Corteva, Inc.		106,161		4,949,226
Alexion Pharmaceuticals, Inc.*		32,150		4,916,057
Seagen, Inc.*		29,839		4,143,444
Exact Sciences Corp.*		30,664		4,040,902
Incyte Corp.*		44,724		3,634,719
Bio-Rad Laboratories, Inc. — Class A*		6,140		3,506,984
Alnylam Pharmaceuticals, Inc.*		24,388		3,443,342
Guardant Health, Inc.*		22,476		3,430,961
CRISPR Therapeutics AG*		25,540		3,112,049
BioMarin Pharmaceutical, Inc.*		40,899		3,088,283
BioNTech SE ADR*,1		26,220		2,862,962
Novavax, Inc.*		15,550		2,819,370
BeiGene Ltd. ADR*		7,020		2,443,522
Mirati Therapeutics, Inc.*		14,233		2,438,113
Acceleron Pharma, Inc.*		17,962		2,435,827
Fate Therapeutics, Inc.*		27,870		2,297,882
United Therapeutics Corp.*		13,638		2,281,228
Ultragenyx Pharmaceutical, Inc.*		19,929		2,269,116
TG Therapeutics, Inc.*		46,620		2,247,084
Exelixis, Inc.*		98,564		2,226,561
Arrowhead Pharmaceuticals, Inc.*		32,997		2,188,031
Twist Bioscience Corp.*		16,700		2,068,462
Blueprint Medicines Corp.*		20,430		1,986,409
Halozyme Therapeutics, Inc.*		47,420		1,976,940
Ionis Pharmaceuticals, Inc.*		43,579		1,959,312
Emergent BioSolutions, Inc.*		20,730		1,926,024
Iovance Biotherapeutics, Inc.*		57,964		1,835,140
Sage Therapeutics, Inc.*		23,526		1,760,921
Biohaven Pharmaceutical Holding Company Ltd.*		25,170		1,720,370
Arena Pharmaceuticals, Inc.*		24,270		1,684,095
ACADIA Pharmaceuticals, Inc.*		64,903		1,674,497
ChemoCentryx, Inc.*		30,430		1,559,233
PTC Therapeutics, Inc.*		30,028		1,421,826
Editas Medicine, Inc.*		33,300		1,398,600
Amicus Therapeutics, Inc.*		136,080		1,344,470
Global Blood Therapeutics, Inc.*		32,095		1,307,871
Bluebird Bio, Inc.*		39,725		1,197,709
Inovio Pharmaceuticals, Inc.*,1		122,560		1,137,357
Total Biotechnology				140,594,407
Pharmaceuticals - 17.2%
AbbVie, Inc.		110,062		11,910,910
Horizon Therapeutics plc*		42,545		3,915,842
Viatris, Inc.*		242,687		3,390,337
PRA Health Sciences, Inc.*		17,635		2,703,975
Neurocrine Biosciences, Inc.*		27,296		2,654,536
Jazz Pharmaceuticals plc*		16,047		2,637,645
Intellia Therapeutics, Inc.*		27,870		2,236,707
Sarepta Therapeutics, Inc.*		26,089		1,944,413
Pacira BioSciences, Inc.*		21,190		1,485,207
Total Pharmaceuticals				32,879,572
Healthcare-Products - 5.4%
Bio-Techne Corp.		8,588		3,280,015
Novocure Ltd.*		19,933		2,634,744
Natera, Inc.*		24,960		2,534,438
Adaptive Biotechnologies Corp.*		48,760		1,963,078
Total Healthcare-Products				10,412,275
Healthcare-Services - 3.5%
Syneos Health, Inc.*		31,060		2,355,901
Invitae Corp.*,1		59,390		2,269,292
Medpace Holdings, Inc.*		12,570		2,062,108
Total Healthcare-Services				6,687,301
Total Common Stocks
(Cost $103,366,793)				190,573,555
RIGHTS††† - 0.0%
Biotechnology - 0.0%
Clinical Data, Inc.*		24,000		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	203,318		203,318
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		92,438		92,438
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		84,365		84,365
Total Repurchase Agreements
(Cost $380,121)				380,121
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		4,514,930		4,514,930
Total Securities Lending Collateral
(Cost $4,514,930)				4,514,930
Total Investments - 102.0%
(Cost $108,261,844)			$	195,468,606
Other Assets & Liabilities, net - (2.0)%				(3,860,430	)
Total Net Assets - 100.0%			$	191,608,176

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
BIOTECHNOLOGY 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.
1	All or a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	190,573,555	$	—	$	—		$	190,573,555
Rights		—		—		—	*		—
Repurchase Agreements		—		380,121		—			380,121
Securities Lending Collateral		4,514,930		—		—			4,514,930
Total Assets	$	195,088,485	$	380,121	$	—		$	195,468,606

* Security has a market value of $0.

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $4,673,992 of securities loaned (cost $107,881,723)	$	195,088,485
Repurchase agreements, at value (cost $380,121)		380,121
Receivables:
Securities sold		1,216,606
Fund shares sold		237,755
Securities lending income		1,340
Total assets		196,924,307
Liabilities:
Payable for:
Return of securities lending collateral		4,514,930
Fund shares redeemed		373,309
Management fees		139,346
Transfer agent and administrative fees		44,099
Portfolio accounting fees		16,394
Distribution and service fees		14,129
Trustees’ fees*		3,012
Miscellaneous		210,912
Total liabilities		5,316,131
Commitments and contingent liabilities (Note 10)		—
Net assets	$	191,608,176
Net assets consist of:
Paid in capital	$	78,726,649
Total distributable earnings (loss)		112,881,527
Net assets	$	191,608,176
Investor Class:
Net assets	$	151,505,560
Capital shares outstanding		1,611,670
Net asset value per share	$	94.01
A-Class:
Net assets	$	22,317,006
Capital shares outstanding		265,013
Net asset value per share	$	84.21
Maximum offering price per share (Net asset value divided by 95.25%)	$	88.41
C-Class:
Net assets	$	8,220,868
Capital shares outstanding		115,947
Net asset value per share	$	70.90
H-Class:
Net assets	$	9,564,742
Capital shares outstanding		117,944
Net asset value per share	$	81.10

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $761)	$	1,674,165
Interest		591
Income from securities lending, net		102,040
Total investment income		1,776,796
Expenses:
Management fees		1,816,562
Distribution and service fees:
A-Class		50,806
C-Class		97,505
H-Class		36,336
Transfer agent and administrative fees		601,355
Portfolio accounting fees		213,084
Registration fees		210,650
Professional fees		114,705
Trustees’ fees*		47,919
Custodian fees		31,332
Line of credit fees		267
Miscellaneous		62,919
Total expenses		3,283,440
Net investment loss		(1,506,644	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		57,826,713
Net realized gain		57,826,713
Net change in unrealized appreciation (depreciation) on:
Investments		17,394,425
Net change in unrealized appreciation (depreciation)		17,394,425
Net realized and unrealized gain		75,221,138
Net increase in net assets resulting from operations	$	73,714,494

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,506,644	)	$	(1,260,325	)
Net realized gain on investments		57,826,713			30,914,727
Net change in unrealized appreciation (depreciation) on investments		17,394,425			(50,590,210	)
Net increase (decrease) in net assets resulting from operations		73,714,494			(20,935,808	)
Distributions to shareholders:
Investor Class		(10,571,202	)		(7,452,087	)
A-Class		(1,608,477	)		(840,011	)
C-Class		(858,269	)		(571,551	)
H-Class		(793,961	)		(695,143	)
Total distributions to shareholders		(13,831,909	)		(9,558,792	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		165,834,078			103,363,667
A-Class		9,368,554			2,369,625
C-Class		2,502,770			2,263,964
H-Class		30,314,058			35,583,269
Distributions reinvested
Investor Class		10,088,167			7,185,311
A-Class		1,579,336			820,588
C-Class		836,153			559,459
H-Class		793,092			694,706
Cost of shares redeemed
Investor Class		(193,107,505	)		(142,739,172	)
A-Class		(7,656,810	)		(9,063,961	)
C-Class		(6,166,624	)		(6,580,327	)
H-Class		(36,476,360	)		(38,250,877	)
Net decrease from capital share transactions		(22,091,091	)		(43,793,748	)
Net increase (decrease) in net assets		37,791,494			(74,288,348	)
Net assets:
Beginning of year		153,816,682			228,105,030
End of year	$	191,608,176		$	153,816,682
Capital share activity:
Shares sold
Investor Class		1,912,201			1,275,833
A-Class		117,161			33,243
C-Class		35,098			37,703
H-Class		433,558			504,782
Shares issued from reinvestment of distributions
Investor Class		107,584			85,509
A-Class		18,788			10,780
C-Class		11,787			8,524
H-Class		9,797			9,449
Shares redeemed
Investor Class		(2,111,884	)		(1,793,859	)
A-Class		(95,286	)		(126,300	)
C-Class		(86,567	)		(106,316	)
H-Class		(458,828	)		(562,751	)
Net decrease in shares		(106,591	)		(623,403	)

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	71.72		$	83.02		$	87.17		$	79.72		$	68.30
Income (loss) from investment operations:
Net investment income (loss)a		(.58	)		(.44	)		(.68	)		(.62	)		(.57	)
Net gain (loss) on investments (realized and unrealized)		29.82			(7.26	)		6.42			12.77			11.99
Total from investment operations		29.24			(7.70	)		5.74			12.15			11.42
Less distributions from:
Net realized gains		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Total distributions		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Net asset value, end of period	$	94.01		$	71.72		$	83.02		$	87.17		$	79.72
Total Return		40.80	%		(9.91	%)		7.94	%		15.34	%		16.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	151,506		$	122,194		$	177,344		$	210,564		$	238,614
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.56	%)		(0.79	%)		(0.70	%)		(0.76	%)
Total expenses		1.45	%		1.48	%		1.46	%		1.37	%		1.37	%
Portfolio turnover rate		115	%		64	%		100	%		105	%		207	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	64.92		$	75.66		$	80.55		$	74.16		$	63.69
Income (loss) from investment operations:
Net investment income (loss)a		(.73	)		(.57	)		(.82	)		(.76	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		26.97			(6.57	)		5.82			11.85			11.17
Total from investment operations		26.24			(7.14	)		5.00			11.09			10.47
Less distributions from:
Net realized gains		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Total distributions		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Net asset value, end of period	$	84.21		$	64.92		$	75.66		$	80.55		$	74.16
Total Returnb		40.44	%		(10.14	%)		7.68	%		15.04	%		16.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,317		$	14,565		$	23,199		$	27,370		$	36,849
Ratios to average net assets:
Net investment income (loss)		(0.87	%)		(0.80	%)		(1.04	%)		(0.93	%)		(1.01	%)
Total expenses		1.69	%		1.73	%		1.71	%		1.62	%		1.61	%
Portfolio turnover rate		115	%		64	%		100	%		105	%		207	%

32 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	55.85		$	66.05		$	72.14		$	67.34		$	58.27
Income (loss) from investment operations:
Net investment income (loss)a		(1.15	)		(.97	)		(1.27	)		(1.25	)		(1.11	)
Net gain (loss) on investments (realized and unrealized)		23.15			(5.63	)		5.07			10.75			10.18
Total from investment operations		22.00			(6.60	)		3.80			9.50			9.07
Less distributions from:
Net realized gains		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Total distributions		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Net asset value, end of period	$	70.90		$	55.85		$	66.05		$	72.14		$	67.34
Total Returnb		39.39	%		(10.80	%)		6.87	%		14.18	%		15.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,221		$	8,692		$	14,248		$	20,104		$	20,997
Ratios to average net assets:
Net investment income (loss)		(1.61	%)		(1.56	%)		(1.79	%)		(1.70	%)		(1.76	%)
Total expenses		2.45	%		2.48	%		2.46	%		2.37	%		2.36	%
Portfolio turnover rate		115	%		64	%		100	%		105	%		207	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	62.70		$	73.18		$	78.26		$	72.16		$	62.00
Income (loss) from investment operations:
Net investment income (loss)a		(.66	)		(.59	)		(.82	)		(.69	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		26.01			(6.29	)		5.63			11.49			10.86
Total from investment operations		25.35			(6.88	)		4.81			10.80			10.16
Less distributions from:
Net realized gains		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Total distributions		(6.95	)		(3.60	)		(9.89	)		(4.70	)		—
Net asset value, end of period	$	81.10		$	62.70		$	73.18		$	78.26		$	72.16
Total Return		40.45	%		(10.12	%)		7.66	%		15.04	%		16.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,565		$	8,365		$	13,315		$	19,905		$	19,308
Ratios to average net assets:
Net investment income (loss)		(0.83	%)		(0.85	%)		(1.06	%)		(0.87	%)		(1.04	%)
Total expenses		1.72	%		1.73	%		1.71	%		1.62	%		1.61	%
Portfolio turnover rate		115	%		64	%		100	%		105	%		207	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

CONSUMER PRODUCTS FUND

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

For the one-year period ended March 31, 2021, Consumer Products Fund Investor Class returned 36.78%, compared with 28.38% for the S&P 500 Consumer Staples Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by packaged foods & meats, soft drinks, and household products.

Estee Lauder Companies, Inc. - Class A, Procter & Gamble Co., and Boston Beer Company, Inc. - Class A contributed the most to the Fund’s return for the period. Coty, Inc. - Class A and Unilever plc ADR detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	July 6, 1998
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.	6.8%
Coca-Cola Co.	5.6%
PepsiCo, Inc.	5.3%
Philip Morris International, Inc.	4.2%
Estee Lauder Companies, Inc. — Class A	3.8%
Altria Group, Inc.	3.6%
Mondelez International, Inc. — Class A	3.3%
Colgate-Palmolive Co.	3.0%
Kraft Heinz Co.	2.6%
Monster Beverage Corp.	2.6%
Top Ten Total	40.8%
“Ten Largest Holdings” excludes any temporary cash investments.

34 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	36.78%	6.71%	10.37%
A-Class Shares	36.43%	6.44%	10.10%
A-Class Shares with sales charge‡	29.94%	5.41%	9.56%
C-Class Shares	35.40%	5.65%	9.27%
C-Class Shares with CDSC§	34.40%	5.65%	9.27%
H-Class Shares**	36.43%	6.44%	9.97%
S&P 500 Consumer Staples Index	28.38%	8.21%	11.64%
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 35

SCHEDULE OF INVESTMENTS	March 31, 2021
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Food - 36.0%
Mondelez International, Inc. — Class A		61,752	$	3,614,345
Kraft Heinz Co.		70,085		2,803,400
Sysco Corp.		31,823		2,505,743
General Mills, Inc.		39,963		2,450,531
Hershey Co.		14,404		2,278,137
Kroger Co.		58,582		2,108,366
Tyson Foods, Inc. — Class A		27,234		2,023,486
Hormel Foods Corp.		41,831		1,998,685
McCormick & Company, Inc.		21,986		1,960,272
Kellogg Co.		29,625		1,875,263
Conagra Brands, Inc.		45,367		1,705,799
Campbell Soup Co.		30,935		1,555,102
J M Smucker Co.		11,761		1,488,119
Lamb Weston Holdings, Inc.		16,923		1,311,194
US Foods Holding Corp.*		30,637		1,167,882
Performance Food Group Co.*		19,607		1,129,559
Beyond Meat, Inc.*,1		8,580		1,116,430
Post Holdings, Inc.*		9,841		1,040,391
Ingredion, Inc.		10,718		963,763
Flowers Foods, Inc.		37,443		891,143
Hain Celestial Group, Inc.*		18,882		823,255
Grocery Outlet Holding Corp.*		20,514		756,762
Sprouts Farmers Market, Inc.*		27,694		737,214
Sanderson Farms, Inc.		4,667		727,025
Total Food				39,031,866
Beverages - 26.6%
Coca-Cola Co.		115,443		6,085,001
PepsiCo, Inc.		40,352		5,707,790
Monster Beverage Corp.*		30,650		2,791,908
Keurig Dr Pepper, Inc.		80,580		2,769,535
Constellation Brands, Inc. — Class A		11,505		2,623,140
Brown-Forman Corp. — Class B		32,117		2,215,109
Boston Beer Company, Inc. — Class A*		1,345		1,622,447
Molson Coors Beverage Co. — Class B*		26,419		1,351,332
Coca-Cola European Partners plc		19,743		1,029,795
Anheuser-Busch InBev S.A. ADR1		16,029		1,007,423
Diageo plc ADR		4,850		796,418
Fomento Economico Mexicano SAB de CV ADR		10,544		794,280
Total Beverages				28,794,178
Cosmetics & Personal Care - 13.6%
Procter & Gamble Co.		54,706		7,408,834
Estee Lauder Companies, Inc. — Class A		14,058		4,088,769
Colgate-Palmolive Co.		41,765		3,292,335
Total Cosmetics & Personal Care				14,789,938
Agriculture - 13.1%
Philip Morris International, Inc.		51,864		4,602,411
Altria Group, Inc.		75,817		3,878,798
Archer-Daniels-Midland Co.		38,933		2,219,181
Darling Ingredients, Inc.*		18,710		1,376,682
Bunge Ltd.		16,714		1,324,919
British American Tobacco plc ADR		21,314		825,704
Total Agriculture				14,227,695
Household Products & Housewares - 6.1%
Kimberly-Clark Corp.		19,981		2,778,358
Clorox Co.		10,330		1,992,450
Church & Dwight Company, Inc.		21,591		1,885,974
Total Household Products & Housewares				6,656,782
Retail - 2.1%
Casey’s General Stores, Inc.		5,312		1,148,401
Freshpet, Inc.*		6,816		1,082,449
Total Retail				2,230,850
Pharmaceuticals - 0.8%
Herbalife Nutrition Ltd.*		20,178		895,096
Electrical Components & Equipment - 0.7%
Energizer Holdings, Inc.		14,996		711,710
Commercial Services - 0.6%
Medifast, Inc.		2,800		593,096
Total Common Stocks
(Cost $52,048,757)				107,931,211
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	249,789		249,789
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		113,566		113,566
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		103,647		103,647
Total Repurchase Agreements
(Cost $467,002)				467,002
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		1,504,750		1,504,750
Total Securities Lending Collateral
(Cost $1,504,750)				1,504,750
Total Investments - 101.4%
(Cost $54,020,509)			$	109,902,963
Other Assets & Liabilities, net - (1.4)%				(1,493,926	)
Total Net Assets - 100.0%			$	108,409,037

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
CONSUMER PRODUCTS 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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	107,931,211	$	—	$	—	$	107,931,211
Repurchase Agreements		—		467,002		—		467,002
Securities Lending Collateral		1,504,750		—		—		1,504,750
Total Assets	$	109,435,961	$	467,002	$	—	$	109,902,963

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $1,487,292 of securities loaned (cost $53,553,507)	$	109,435,961
Repurchase agreements, at value (cost $467,002)		467,002
Receivables:
Securities sold		2,785,328
Dividends		290,017
Fund shares sold		28,136
Securities lending income		146
Total assets		113,006,590
Liabilities:
Payable for:
Fund shares redeemed		2,850,328
Return of securities lending collateral		1,504,750
Management fees		78,462
Transfer agent and administrative fees		24,831
Distribution and service fees		11,041
Portfolio accounting fees		9,230
Trustees’ fees*		1,674
Miscellaneous		117,237
Total liabilities		4,597,553
Commitments and contingent liabilities (Note 10)		—
Net assets	$	108,409,037
Net assets consist of:
Paid in capital	$	50,685,344
Total distributable earnings (loss)		57,723,693
Net assets	$	108,409,037
Investor Class:
Net assets	$	83,022,860
Capital shares outstanding		1,244,438
Net asset value per share	$	66.72
A-Class:
Net assets	$	10,750,500
Capital shares outstanding		180,002
Net asset value per share	$	59.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	62.70
C-Class:
Net assets	$	9,034,794
Capital shares outstanding		185,591
Net asset value per share	$	48.68
H-Class:
Net assets	$	5,600,883
Capital shares outstanding		98,156
Net asset value per share	$	57.06

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $1,559)	$	3,049,235
Interest		239
Income from securities lending, net		6,844
Total investment income		3,056,318
Expenses:
Management fees		1,008,771
Distribution and service fees:
A-Class		23,660
C-Class		102,408
H-Class		13,305
Transfer agent and administrative fees		334,825
Portfolio accounting fees		118,705
Registration fees		101,783
Professional fees		59,265
Trustees’ fees*		29,016
Custodian fees		17,809
Miscellaneous		49,077
Total expenses		1,858,624
Net investment income		1,197,694
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		15,927,348
Net realized gain		15,927,348
Net change in unrealized appreciation (depreciation) on:
Investments		19,705,957
Net change in unrealized appreciation (depreciation)		19,705,957
Net realized and unrealized gain		35,633,305
Net increase in net assets resulting from operations	$	36,830,999

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

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,197,694		$	1,617,838
Net realized gain on investments		15,927,348			13,380,802
Net change in unrealized appreciation (depreciation) on investments		19,705,957			(24,843,578	)
Net increase (decrease) in net assets resulting from operations		36,830,999			(9,844,938	)
Distributions to shareholders:
Investor Class		(6,829,808	)		(2,921,088	)
A-Class		(786,012	)		(339,079	)
C-Class		(1,107,873	)		(437,102	)
H-Class		(499,115	)		(268,490	)
Total distributions to shareholders		(9,222,808	)		(3,965,759	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		42,509,338			103,025,889
A-Class		2,320,729			3,280,213
C-Class		618,758			652,064
H-Class		1,759,714			17,063,752
Distributions reinvested
Investor Class		6,697,877			2,872,298
A-Class		776,293			332,113
C-Class		1,079,765			427,574
H-Class		498,891			268,419
Cost of shares redeemed
Investor Class		(68,469,059	)		(158,047,872	)
A-Class		(3,076,742	)		(7,590,061	)
C-Class		(4,446,663	)		(4,860,834	)
H-Class		(2,018,656	)		(22,448,593	)
Net decrease from capital share transactions		(21,749,755	)		(65,025,038	)
Net increase (decrease) in net assets		5,858,436			(78,835,735	)
Net assets:
Beginning of year		102,550,601			181,386,336
End of year	$	108,409,037		$	102,550,601
Capital share activity:
Shares sold
Investor Class		710,047			1,679,253
A-Class		41,057			58,717
C-Class		13,217			13,969
H-Class		33,333			320,741
Shares issued from reinvestment of distributions
Investor Class		106,130			46,060
A-Class		13,730			5,877
C-Class		23,377			9,019
H-Class		9,235			4,951
Shares redeemed
Investor Class		(1,082,594	)		(2,609,348	)
A-Class		(53,578	)		(137,756	)
C-Class		(95,913	)		(103,813	)
H-Class		(37,693	)		(426,735	)
Net decrease in shares		(319,652	)		(1,139,065	)

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	52.88		$	59.56		$	61.08		$	66.06		$	62.84
Income (loss) from investment operations:
Net investment income (loss)a		.70			.72			.92			.56			.51
Net gain (loss) on investments (realized and unrealized)		18.44			(5.71	)		1.40			(.37	)		3.58
Total from investment operations		19.14			(4.99	)		2.32			.19			4.09
Less distributions from:
Net investment income		(.73	)		(.77	)		(.80	)		(.44	)		(.58	)
Net realized gains		(4.57	)		(.92	)		(3.04	)		(4.73	)		(.29	)
Total distributions		(5.30	)		(1.69	)		(3.84	)		(5.17	)		(.87	)
Net asset value, end of period	$	66.72		$	52.88		$	59.56		$	61.08		$	66.06
Total Return		36.78	%		(8.81	%)		4.09	%		(0.04	%)		6.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	83,023		$	79,890		$	142,633		$	152,717		$	207,683
Ratios to average net assets:
Net investment income (loss)		1.12	%		1.17	%		1.56	%		0.86	%		0.79	%
Total expenses		1.45	%		1.47	%		1.46	%		1.38	%		1.36	%
Portfolio turnover rate		38	%		59	%		84	%		80	%		75	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	47.88		$	54.21		$	56.08		$	61.21		$	58.43
Income (loss) from investment operations:
Net investment income (loss)a		.50			.51			.69			.36			.33
Net gain (loss) on investments (realized and unrealized)		16.64			(5.15	)		1.28			(.32	)		3.32
Total from investment operations		17.14			(4.64	)		1.97			.04			3.65
Less distributions from:
Net investment income		(.73	)		(.77	)		(.80	)		(.44	)		(.58	)
Net realized gains		(4.57	)		(.92	)		(3.04	)		(4.73	)		(.29	)
Total distributions		(5.30	)		(1.69	)		(3.84	)		(5.17	)		(.87	)
Net asset value, end of period	$	59.72		$	47.88		$	54.21		$	56.08		$	61.21
Total Returnb		36.43	%		(9.04	%)		3.82	%		(0.28	%)		6.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,751		$	8,561		$	13,659		$	25,698		$	40,272
Ratios to average net assets:
Net investment income (loss)		0.89	%		0.92	%		1.28	%		0.60	%		0.56	%
Total expenses		1.69	%		1.72	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		38	%		59	%		84	%		80	%		75	%

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	40.08		$	45.98		$	48.50		$	54.00		$	52.04
Income (loss) from investment operations:
Net investment income (loss)a		.06			.08			.28			(.07	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		13.84			(4.29	)		1.04			(.26	)		2.93
Total from investment operations		13.90			(4.21	)		1.32			(.33	)		2.83
Less distributions from:
Net investment income		(.73	)		(.77	)		(.80	)		(.44	)		(.58	)
Net realized gains		(4.57	)		(.92	)		(3.04	)		(4.73	)		(.29	)
Total distributions		(5.30	)		(1.69	)		(3.84	)		(5.17	)		(.87	)
Net asset value, end of period	$	48.68		$	40.08		$	45.98		$	48.50		$	54.00
Total Returnb		35.40	%		(9.73	%)		3.06	%		(1.02	%)		5.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,035		$	9,816		$	14,976		$	23,531		$	28,380
Ratios to average net assets:
Net investment income (loss)		0.12	%		0.16	%		0.60	%		(0.13	%)		(0.20	%)
Total expenses		2.45	%		2.47	%		2.46	%		2.38	%		2.36	%
Portfolio turnover rate		38	%		59	%		84	%		80	%		75	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	45.93		$	52.07		$	54.02		$	59.15		$	56.50
Income (loss) from investment operations:
Net investment income (loss)a		.49			.46			.69			.38			.31
Net gain (loss) on investments (realized and unrealized)		15.94			(4.91	)		1.20			(.34	)		3.21
Total from investment operations		16.43			(4.45	)		1.89			.04			3.52
Less distributions from:
Net investment income		(.73	)		(.77	)		(.80	)		(.44	)		(.58	)
Net realized gains		(4.57	)		(.92	)		(3.04	)		(4.73	)		(.29	)
Total distributions		(5.30	)		(1.69	)		(3.84	)		(5.17	)		(.87	)
Net asset value, end of period	$	57.06		$	45.93		$	52.07		$	54.02		$	59.15
Total Return		36.43	%		(9.05	%)		3.84	%		(0.32	%)		6.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,601		$	4,284		$	10,118		$	10,788		$	35,387
Ratios to average net assets:
Net investment income (loss)		0.90	%		0.86	%		1.32	%		0.65	%		0.54	%
Total expenses		1.69	%		1.72	%		1.71	%		1.63	%		1.61	%
Portfolio turnover rate		38	%		59	%		84	%		80	%		75	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

ELECTRONICS FUND

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

For the one-year period ended March 31, 2021, Electronics Fund Investor Class returned 109.05%, compared with 66.61% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by semiconductors and semiconductor equipment.

NVIDIA Corp., QUALCOMM, Inc., and Broadcom, Inc. contributed the most to the Fund’s return for the period. National Asset Recovery Corp. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
NVIDIA Corp.	7.2%
Intel Corp.	6.3%
Broadcom, Inc.	5.3%
Texas Instruments, Inc.	5.3%
QUALCOMM, Inc.	4.8%
Applied Materials, Inc.	4.6%
Micron Technology, Inc.	3.8%
Advanced Micro Devices, Inc.	3.8%
Lam Research Corp.	3.8%
Analog Devices, Inc.	3.0%
Top Ten Total	47.9%
“Ten Largest Holdings” excludes any temporary cash investments.

42 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	109.05%	31.25%	18.01%
A-Class Shares	108.53%	30.94%	17.71%
A-Class Shares with sales charge‡	98.62%	29.67%	17.14%
C-Class Shares	106.98%	29.96%	16.81%
C-Class Shares with CDSC§	105.98%	29.96%	16.81%
H-Class Shares**	108.53%	30.91%	17.57%
S&P 500 Information Technology Index	66.61%	27.64%	20.50%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 43

SCHEDULE OF INVESTMENTS	March 31, 2021
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Semiconductors - 90.8%
NVIDIA Corp.		9,716	$	5,187,664
Intel Corp.		70,290		4,498,560
Broadcom, Inc.		8,257		3,828,441
Texas Instruments, Inc.		20,257		3,828,370
QUALCOMM, Inc.		26,049		3,453,837
Applied Materials, Inc.		24,948		3,333,053
Micron Technology, Inc.*		31,069		2,740,596
Advanced Micro Devices, Inc.*		34,668		2,721,438
Lam Research Corp.		4,533		2,698,223
Analog Devices, Inc.		13,836		2,145,687
KLA Corp.		6,429		2,124,142
Taiwan Semiconductor Manufacturing Company Ltd. ADR		17,444		2,063,276
Microchip Technology, Inc.		11,981		1,859,691
Marvell Technology Group Ltd.		33,902		1,660,520
NXP Semiconductor N.V.		7,908		1,592,197
Skyworks Solutions, Inc.		8,553		1,569,304
Xilinx, Inc.		12,481		1,546,396
ASML Holding N.V. — Class G		2,294		1,416,224
Maxim Integrated Products, Inc.		15,360		1,403,443
Teradyne, Inc.		10,719		1,304,288
Qorvo, Inc.*		7,062		1,290,227
ON Semiconductor Corp.*		28,555		1,188,174
Monolithic Power Systems, Inc.		3,246		1,146,520
Entegris, Inc.		10,156		1,135,441
Cree, Inc.*		9,201		994,904
STMicroelectronics N.V. — Class Y1		25,895		992,555
MKS Instruments, Inc.		4,991		925,431
Inphi Corp.*		5,091		908,285
Lattice Semiconductor Corp.*		15,500		697,810
Silicon Laboratories, Inc.*		4,912		692,936
Brooks Automation, Inc.		8,294		677,205
Cirrus Logic, Inc.*		7,597		644,150
CMC Materials, Inc.		3,619		639,803
Power Integrations, Inc.		7,618		620,715
Synaptics, Inc.*		4,436		600,723
Semtech Corp.*		8,553		590,157
Ambarella, Inc.*		5,090		510,985
Total Semiconductors				65,231,371
Energy-Alternate Sources - 7.4%
Enphase Energy, Inc.*		8,209		1,331,171
SolarEdge Technologies, Inc.*		4,579		1,316,188
Canadian Solar, Inc.*,1		22,023		1,093,002
First Solar, Inc.*		10,284		897,793
SunPower Corp. — Class A*,1		20,761		694,455
Total Energy-Alternate Sources				5,332,609
Electrical Components & Equipment - 1.3%
Universal Display Corp.		4,007		948,737
Total Common Stocks
(Cost $43,014,250)				71,512,717
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	254,509	$	254,509
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		115,712		115,712
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		105,605		105,605
Total Repurchase Agreements
(Cost $475,826)				475,826
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		1,476,009		1,476,009
Total Securities Lending Collateral
(Cost $1,476,009)				1,476,009
Total Investments - 102.2%
(Cost $44,966,085)			$	73,464,552
Other Assets & Liabilities, net - (2.2)%				(1,614,519	)
Total Net Assets - 100.0%			$	71,850,033

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
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 a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	71,512,717	$	—	$	—	$	71,512,717
Repurchase Agreements		—		475,826		—		475,826
Securities Lending Collateral		1,476,009		—		—		1,476,009
Total Assets	$	72,988,726	$	475,826	$	—	$	73,464,552

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $1,494,033 of securities loaned (cost $44,490,259)	$	72,988,726
Repurchase agreements, at value (cost $475,826)		475,826
Receivables:
Fund shares sold		73,209
Dividends		19,948
Securities lending income		124
Total assets		73,557,833
Liabilities:
Payable for:
Return of securities lending collateral		1,476,009
Fund shares redeemed		81,560
Management fees		49,070
Transfer agent and administrative fees		15,529
Portfolio accounting fees		5,773
Distribution and service fees		5,069
Trustees’ fees*		1,053
Miscellaneous		73,737
Total liabilities		1,707,800
Commitments and contingent liabilities (Note 10)		—
Net assets	$	71,850,033
Net assets consist of:
Paid in capital	$	44,386,546
Total distributable earnings (loss)		27,463,487
Net assets	$	71,850,033
Investor Class:
Net assets	$	55,323,881
Capital shares outstanding		196,338
Net asset value per share	$	281.78
A-Class:
Net assets	$	5,156,334
Capital shares outstanding		19,909
Net asset value per share	$	259.00
Maximum offering price per share (Net asset value divided by 95.25%)	$	271.92
C-Class:
Net assets	$	2,987,267
Capital shares outstanding		13,242
Net asset value per share	$	225.59
H-Class:
Net assets	$	8,382,551
Capital shares outstanding		33,367
Net asset value per share	$	251.22

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $2,110)	$	540,966
Interest		129
Income from securities lending, net		765
Total investment income		541,860
Expenses:
Management fees		417,595
Distribution and service fees:
A-Class		9,149
C-Class		25,305
H-Class		11,740
Transfer agent and administrative fees		138,440
Portfolio accounting fees		49,138
Registration fees		45,145
Professional fees		25,912
Trustees’ fees*		11,706
Custodian fees		7,221
Line of credit fees		472
Miscellaneous		10,793
Total expenses		752,616
Net investment loss		(210,756	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,332,689
Net realized gain		10,332,689
Net change in unrealized appreciation (depreciation) on:
Investments		22,759,187
Net change in unrealized appreciation (depreciation)		22,759,187
Net realized and unrealized gain		33,091,876
Net increase in net assets resulting from operations	$	32,881,120

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(210,756	)	$	(42,169	)
Net realized gain on investments		10,332,689			1,148,578
Net change in unrealized appreciation (depreciation) on investments		22,759,187			(42,610	)
Net increase in net assets resulting from operations		32,881,120			1,063,799
Distributions to shareholders:
Investor Class		(623,279	)		(5,526	)
A-Class		(93,075	)		(535	)
C-Class		(77,886	)		(238	)
H-Class		(152,305	)		(767	)
Total distributions to shareholders		(946,545	)		(7,066	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		83,520,706			165,434,553
A-Class		1,981,697			9,059,406
C-Class		3,886,515			3,919,399
H-Class		12,738,105			45,691,721
Distributions reinvested
Investor Class		604,864			5,505
A-Class		92,127			231
C-Class		77,190			236
H-Class		152,296			766
Cost of shares redeemed
Investor Class		(92,624,886	)		(145,938,377	)
A-Class		(1,453,618	)		(11,409,121	)
C-Class		(4,323,708	)		(3,756,574	)
H-Class		(9,332,257	)		(47,020,457	)
Net increase (decrease) from capital share transactions		(4,680,969	)		15,987,288
Net increase in net assets		27,253,606			17,044,021
Net assets:
Beginning of year		44,596,427			27,552,406
End of year	$	71,850,033		$	44,596,427
Capital share activity:
Shares sold
Investor Class		383,605			1,149,672
A-Class		10,825			68,041
C-Class		24,885			34,152
H-Class		57,798			378,999
Shares issued from reinvestment of distributions
Investor Class		2,448			35
A-Class		405			2
C-Class		389			2
H-Class		691			5
Shares redeemed
Investor Class		(470,379	)		(1,016,632	)
A-Class		(8,003	)		(84,795	)
C-Class		(27,240	)		(31,651	)
H-Class		(42,485	)		(394,124	)
Net increase (decrease) in shares		(67,061	)		103,706

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	137.65		$	126.31		$	136.98		$	110.00		$	81.23
Income (loss) from investment operations:
Net investment income (loss)a		(.71	)		—	b		.27			(.11	)		.15
Net gain (loss) on investments (realized and unrealized)		150.08			11.35			(.29	)		27.15			28.62
Total from investment operations		149.37			11.35			(.02	)		27.04			28.77
Less distributions from:
Net investment income		—			(.01	)		—			(.06	)		—
Net realized gains		(5.24	)		—			(10.65	)		—			—
Total distributions		(5.24	)		(.01	)		(10.65	)		(.06	)		—
Net asset value, end of period	$	281.78		$	137.65		$	126.31		$	136.98		$	110.00
Total Return		109.05	%		8.99	%		1.35	%		24.59	%		35.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,324		$	38,634		$	18,642		$	54,505		$	51,722
Ratios to average net assets:
Net investment income (loss)		(0.33	%)		—	d		0.21	%		(0.08	%)		0.16	%
Total expenses		1.44	%		1.48	%		1.46	%		1.38	%		1.38	%
Portfolio turnover rate		163	%		265	%		521	%		457	%		643	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	127.06		$	116.88		$	127.98		$	103.03		$	76.25
Income (loss) from investment operations:
Net investment income (loss)a		(1.15	)		(.31	)		(.03	)		(.33	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		138.33			10.50			(.42	)		25.34			26.96
Total from investment operations		137.18			10.19			(.45	)		25.01			26.78
Less distributions from:
Net investment income		—			(.01	)		—			(.06	)		—
Net realized gains		(5.24	)		—			(10.65	)		—			—
Total distributions		(5.24	)		(.01	)		(10.65	)		(.06	)		—
Net asset value, end of period	$	259.00		$	127.06		$	116.88		$	127.98		$	103.03
Total Returnc		108.53	%		8.72	%		1.10	%		24.29	%		35.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,156		$	2,120		$	3,908		$	3,122		$	4,408
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		(0.23	%)		(0.02	%)		(0.29	%)		(0.19	%)
Total expenses		1.69	%		1.73	%		1.72	%		1.63	%		1.63	%
Portfolio turnover rate		163	%		265	%		521	%		457	%		643	%

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	111.87		$	103.69		$	115.77		$	93.90		$	70.02
Income (loss) from investment operations:
Net investment income (loss)a		(2.32	)		(1.14	)		(.91	)		(1.14	)		(.69	)
Net gain (loss) on investments (realized and unrealized)		121.28			9.33			(.52	)		23.07			24.57
Total from investment operations		118.96			8.19			(1.43	)		21.93			23.88
Less distributions from:
Net investment income		—			(.01	)		—			(.06	)		—
Net realized gains		(5.24	)		—			(10.65	)		—			—
Total distributions		(5.24	)		(.01	)		(10.65	)		(.06	)		—
Net asset value, end of period	$	225.59		$	111.87		$	103.69		$	115.77		$	93.90
Total Returnc		106.98	%		7.91	%		0.34	%		23.36	%		34.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,987		$	1,701		$	1,317		$	2,855		$	2,556
Ratios to average net assets:
Net investment income (loss)		(1.34	%)		(0.96	%)		(0.83	%)		(1.07	%)		(0.85	%)
Total expenses		2.44	%		2.48	%		2.45	%		2.38	%		2.38	%
Portfolio turnover rate		163	%		265	%		521	%		457	%		643	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	123.34		$	113.47		$	124.62		$	100.33		$	74.32
Income (loss) from investment operations:
Net investment income (loss)a		(1.23	)		(.30	)		(.54	)		(.41	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		134.35			10.18			.04	e		24.76			26.09
Total from investment operations		133.12			9.88			(.50	)		24.35			26.01
Less distributions from:
Net investment income		—			(.01	)		—			(.06	)		—
Net realized gains		(5.24	)		—			(10.65	)		—			—
Total distributions		(5.24	)		(.01	)		(10.65	)		(.06	)		—
Net asset value, end of period	$	251.22		$	123.34		$	113.47		$	124.62		$	100.33
Total Return		108.53	%		8.72	%		1.08	%		24.29	%		34.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,383		$	2,142		$	3,686		$	31,109		$	23,134
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		(0.22	%)		(0.45	%)		(0.36	%)		(0.09	%)
Total expenses		1.67	%		1.73	%		1.68	%		1.63	%		1.63	%
Portfolio turnover rate		163	%		265	%		521	%		457	%		643	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.
d	Less than 0.01% or (0.01%).
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

ENERGY FUND

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

For the one-year period ended March 31, 2021, Energy Fund Investor Class returned 91.43%, compared with 75.16% for the S&P 500 Energy Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by exploration & production, integrated oil & gas, and equipment & services.

Chevron Corp., Exxon Mobil Corp., and Marathon Petroleum Corp. contributed the most to the Fund’s return for the period. Chesapeake Energy Corp., Golar LNG Ltd., and Scorpio Tankers, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 21, 1998
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.	8.3%
Chevron Corp.	7.8%
ConocoPhillips	4.6%
EOG Resources, Inc.	3.6%
Kinder Morgan, Inc.	3.4%
Schlumberger N.V.	3.4%
Phillips 66	3.3%
Marathon Petroleum Corp.	3.2%
Pioneer Natural Resources Co.	3.2%
Williams Companies, Inc.	3.0%
Top Ten Total	43.8%
“Ten Largest Holdings” excludes any temporary cash investments.

50 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	91.43%	(4.21%)	(6.95%)
A-Class Shares	90.89%	(4.45%)	(7.18%)
A-Class Shares with sales charge‡	81.85%	(5.37%)	(7.63%)
C-Class Shares	89.48%	(5.17%)	(7.88%)
C-Class Shares with CDSC§	88.48%	(5.17%)	(7.88%)
H-Class Shares**	90.87%	(4.49%)	(7.30%)
S&P 500 Energy Index	75.16%	(0.75%)	(1.55%)
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 51

SCHEDULE OF INVESTMENTS	March 31, 2021
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Oil & Gas - 71.5%
Exxon Mobil Corp.		33,891	$	1,892,134
Chevron Corp.		16,888		1,769,693
ConocoPhillips		19,776		1,047,535
EOG Resources, Inc.		11,421		828,365
Phillips 66		9,101		742,095
Marathon Petroleum Corp.		13,780		737,092
Pioneer Natural Resources Co.		4,541		721,202
Valero Energy Corp.		9,238		661,441
Occidental Petroleum Corp.		23,223		618,196
Hess Corp.		8,384		593,252
Petroleo Brasileiro S.A. ADR		58,968		500,049
Devon Energy Corp.		21,535		470,540
Diamondback Energy, Inc.		6,093		447,775
BP plc ADR		16,360		398,366
Continental Resources, Inc.*		14,888		385,153
Cabot Oil & Gas Corp. — Class A		18,553		348,425
Cosan S.A. ADR		20,827		336,356
APA Corp.		17,393		311,335
Ovintiv, Inc.		12,871		306,587
Cimarex Energy Co.		5,151		305,918
Royal Dutch Shell plc — Class A ADR		7,675		300,937
HollyFrontier Corp.		8,338		298,334
Equities Corp.*		15,631		290,424
PDC Energy, Inc.*		6,785		233,404
CNX Resources Corp.*		15,484		227,615
Suncor Energy, Inc.		10,608		221,707
Matador Resources Co.		8,936		209,549
Helmerich & Payne, Inc.		7,411		199,800
Murphy Oil Corp.		11,718		192,292
Canadian Natural Resources Ltd.		5,895		181,979
SM Energy Co.		10,510		172,049
Equinor ASA ADR1		8,192		159,416
Delek US Holdings, Inc.		7,206		156,947
Total Oil & Gas				16,265,962
Pipelines - 15.3%
Kinder Morgan, Inc.		47,060		783,549
Williams Companies, Inc.		28,679		679,405
ONEOK, Inc.		11,927		604,222
Cheniere Energy, Inc.*		7,396		532,586
Targa Resources Corp.		10,433		331,248
Enbridge, Inc.		7,168		260,915
TC Energy Corp.		4,655		212,966
Pembina Pipeline Corp.		2,786		80,348
Total Pipelines				3,485,239
Oil & Gas Services - 10.5%
Schlumberger N.V.		28,122		764,637
Baker Hughes Co.		26,416		570,850
Halliburton Co.		24,852		533,324
NOV, Inc.*		19,869		272,603
ChampionX Corp.*		11,725		254,784
Total Oil & Gas Services				2,396,198
Energy-Alternate Sources - 0.9%
Renewable Energy Group, Inc.*		3,200		211,328
Retail - 0.8%
World Fuel Services Corp.		5,209		183,357
Mining - 0.5%
Cameco Corp.		6,391		106,155
Metal Fabricate & Hardware - 0.4%
Tenaris S.A. ADR		4,171		94,640
Total Common Stocks
(Cost $15,124,210)				22,742,879
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	101,160		101,160
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		45,993		45,993
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		41,975		41,975
Total Repurchase Agreements
(Cost $189,128)				189,128
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		17,740		17,740
Total Securities Lending Collateral
(Cost $17,740)				17,740
Total Investments - 100.8%
(Cost $15,331,078)			$	22,949,747
Other Assets & Liabilities, net - (0.8)%				(191,835	)
Total Net Assets - 100.0%			$	22,757,912

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
ENERGY 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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	22,742,879	$	—	$	—	$	22,742,879
Repurchase Agreements		—		189,128		—		189,128
Securities Lending Collateral		17,740		—		—		17,740
Total Assets	$	22,760,619	$	189,128	$	—	$	22,949,747

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $17,261 of securities loaned (cost $15,141,950)	$	22,760,619
Repurchase agreements, at value (cost $189,128)		189,128
Cash		4,347
Receivables:
Fund shares sold		28,689
Dividends		12,185
Securities lending income		32
Total assets		22,995,000
Liabilities:
Payable for:
Fund shares redeemed		123,021
Management fees		29,918
Return of securities lending collateral		17,740
Transfer agent and administrative fees		9,468
Registration fees		8,503
Portfolio accounting fees		3,520
Distribution and service fees		2,432
Trustees’ fees*		718
Miscellaneous		41,768
Total liabilities		237,088
Commitments and contingent liabilities (Note 10)		—
Net assets	$	22,757,912
Net assets consist of:
Paid in capital	$	48,691,751
Total distributable earnings (loss)		(25,933,839	)
Net assets	$	22,757,912
Investor Class:
Net assets	$	18,219,595
Capital shares outstanding		119,129
Net asset value per share	$	152.94
A-Class:
Net assets	$	2,214,082
Capital shares outstanding		15,634
Net asset value per share	$	141.62
Maximum offering price per share (Net asset value divided by 95.25%)	$	148.68
C-Class:
Net assets	$	746,231
Capital shares outstanding		6,113
Net asset value per share	$	122.07
H-Class:
Net assets	$	1,578,004
Capital shares outstanding		11,517
Net asset value per share	$	137.02

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $5,820)	$	545,286
Interest		33
Income from securities lending, net		5,424
Total investment income		550,743
Expenses:
Management fees		137,069
Distribution and service fees:
A-Class		5,156
C-Class		6,309
H-Class		2,584
Transfer agent and administrative fees		44,852
Portfolio accounting fees		16,128
Professional fees		5,480
Trustees’ fees*		2,643
Custodian fees		2,251
Line of credit fees		80
Miscellaneous		21,368
Total expenses		243,920
Net investment income		306,823
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,453,340	)
Net realized loss		(1,453,340	)
Net change in unrealized appreciation (depreciation) on:
Investments		7,203,790
Net change in unrealized appreciation (depreciation)		7,203,790
Net realized and unrealized gain		5,750,450
Net increase in net assets resulting from operations	$	6,057,273

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	306,823		$	283,748
Net realized loss on investments		(1,453,340	)		(9,339,262	)
Net change in unrealized appreciation (depreciation) on investments		7,203,790			(1,785,606	)
Net increase (decrease) in net assets resulting from operations		6,057,273			(10,841,120	)
Distributions to shareholders:
Investor Class		(213,265	)		(106,562	)
A-Class		(38,158	)		(19,401	)
C-Class		(19,851	)		(9,575	)
H-Class		(20,784	)		(13,058	)
Total distributions to shareholders		(292,058	)		(148,596	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		150,630,160			47,410,108
A-Class		8,452,916			1,055,200
C-Class		882,168			1,008,571
H-Class		6,045,215			36,112,670
Distributions reinvested
Investor Class		209,206			104,747
A-Class		36,489			18,695
C-Class		19,168			9,210
H-Class		20,784			12,847
Cost of shares redeemed
Investor Class		(141,096,481	)		(51,362,661	)
A-Class		(8,000,632	)		(1,906,514	)
C-Class		(964,963	)		(1,541,437	)
H-Class		(5,521,324	)		(35,653,612	)
Net increase (decrease) from capital share transactions		10,712,706			(4,732,176	)
Net increase (decrease) in net assets		16,477,921			(15,721,892	)
Net assets:
Beginning of year		6,279,991			22,001,883
End of year	$	22,757,912		$	6,279,991
CAPITAL SHARE ACTIVITY:*
Shares sold
Investor Class		1,183,818			348,926
A-Class		62,484			6,242
C-Class		9,451			7,317
H-Class		52,998			224,119
Shares issued from reinvestment of distributions
Investor Class		1,689			603
A-Class		318			116
C-Class		193			65
H-Class		187			82
Shares redeemed
Investor Class		(1,117,957	)		(377,221	)
A-Class		(60,130	)		(11,099	)
C-Class		(10,057	)		(10,633	)
H-Class		(50,445	)		(219,893	)
Net increase (decrease) in shares		72,549			(31,376	)

* Capital share activity for the year ended March 31, 2020, has been restated to reflect a 1:3 reverse share split effective August 10, 2020 — See Note 9.

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

ENERGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021c			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c,d
Per Share Data
Net asset value, beginning of period	$	81.74		$	204.01		$	223.24		$	236.20		$	199.82
Income (loss) from investment operations:
Net investment income (loss)a		1.44			2.91			1.05			1.83			1.20
Net gain (loss) on investments (realized and unrealized)		72.59			(123.74	)		(18.87	)		(13.11	)		36.74
Total from investment operations		74.03			(120.83	)		(17.82	)		(11.28	)		37.94
Less distributions from:
Net investment income		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Total distributions		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Net asset value, end of period	$	152.94		$	81.74		$	204.01		$	223.24		$	236.20
Total Return		91.43	%		(59.61	%)		(7.94	%)		(4.78	%)		18.99	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,220		$	4,216		$	16,172		$	37,253		$	24,284
Ratios to average net assets:
Net investment income (loss)		2.02	%		1.65	%		0.46	%		0.82	%		0.52	%
Total expenses		1.42	%		1.48	%		1.46	%		1.37	%		1.37	%
Portfolio turnover rate		939	%		428	%		525	%		954	%		996	%

A-Class	Year Ended March 31, 2021c			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c,d
Per Share Data
Net asset value, beginning of period	$	76.01		$	190.30		$	208.85		$	221.57		$	188.00
Income (loss) from investment operations:
Net investment income (loss)a		1.00			2.46			.63			1.62			.69
Net gain (loss) on investments (realized and unrealized)		67.44			(115.31	)		(17.77	)		(12.66	)		34.44
Total from investment operations		68.44			(112.85	)		(17.14	)		(11.04	)		35.13
Less distributions from:
Net investment income		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Total distributions		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Net asset value, end of period	$	141.62		$	76.01		$	190.30		$	208.85		$	221.57
Total Returnb		90.89	%		(59.69	%)		(8.16	%)		(4.99	%)		18.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,214		$	985		$	3,369		$	3,111		$	4,980
Ratios to average net assets:
Net investment income (loss)		1.60	%		1.50	%		0.33	%		0.78	%		0.31	%
Total expenses		1.68	%		1.73	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		939	%		428	%		525	%		954	%		996	%

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

ENERGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021c			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c,d
Per Share Data
Net asset value, beginning of period	$	66.27		$	167.39		$	185.28		$	198.29		$	169.64
Income (loss) from investment operations:
Net investment income (loss)a		.56			1.08			(1.08	)		(.03	)		(.87	)
Net gain (loss) on investments (realized and unrealized)		58.07			(100.76	)		(15.40	)		(11.30	)		31.08
Total from investment operations		58.63			(99.68	)		(16.48	)		(11.33	)		30.21
Less distributions from:
Net investment income		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Total distributions		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Net asset value, end of period	$	122.07		$	66.27		$	167.39		$	185.28		$	198.29
Total Returnb		89.48	%		(60.01	%)		(8.83	%)		(5.73	%)		17.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	746		$	432		$	1,637		$	3,721		$	4,331
Ratios to average net assets:
Net investment income (loss)		1.05	%		0.76	%		(0.56	%)		(0.02	%)		(0.45	%)
Total expenses		2.44	%		2.48	%		2.45	%		2.38	%		2.37	%
Portfolio turnover rate		939	%		428	%		525	%		954	%		996	%

H-Class	Year Ended March 31, 2021c			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c,d
Per Share Data
Net asset value, beginning of period	$	73.61		$	184.50		$	202.54		$	215.03		$	182.69
Income (loss) from investment operations:
Net investment income (loss)a		1.06			1.92			1.20			2.97			.06
Net gain (loss) on investments (realized and unrealized)		65.18			(111.37	)		(17.83	)		(13.78	)		33.84
Total from investment operations		66.24			(109.45	)		(16.63	)		(10.81	)		33.90
Less distributions from:
Net investment income		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Total distributions		(2.83	)		(1.44	)		(1.41	)		(1.68	)		(1.56	)
Net asset value, end of period	$	137.02		$	73.61		$	184.50		$	202.54		$	215.03
Total Return		90.87	%		(59.73	%)		(8.16	%)		(5.03	%)		18.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,578		$	646		$	824		$	1,480		$	2,556
Ratios to average net assets:
Net investment income (loss)		1.60	%		1.25	%		0.54	%		1.50	%		0.03	%
Total expenses		1.68	%		1.72	%		1.70	%		1.63	%		1.63	%
Portfolio turnover rate		939	%		428	%		525	%		954	%		996	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the years presented through March 31, 2020 have been restated to reflect a 1:3 reverse share split effective August 10, 2020 — See Note 9.
d	Reverse share split — Per share amounts for the year ended March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

ENERGY SERVICES FUND

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

For the one-year period ended March 31, 2021, Energy Services Fund Investor Class returned 127.06%, compared with 75.16% for the S&P 500 Energy Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by oil & gas equipment & services and oil & gas drilling.

Baker Hughes Co., Schlumberger N.V., and Halliburton Co. contributed the most to the Fund’s return for the period. Diamond Offshore Drilling, Inc., Transocean Ltd., and Helix Energy Solutions Group, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Schlumberger N.V.	14.4%
Baker Hughes Co.	10.8%
Halliburton Co.	10.0%
NOV, Inc.	5.1%
ChampionX Corp.	4.8%
Cactus, Inc. — Class A	4.1%
Helmerich & Payne, Inc.	3.8%
TechnipFMC plc	3.8%
Liberty Oilfield Services, Inc. — Class A	3.7%
Archrock, Inc.	3.2%
Top Ten Total	63.7%
“Ten Largest Holdings” excludes any temporary cash investments.

58 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	127.06%	(16.14%)	(15.30%)
A-Class Shares	126.39%	(16.35%)	(15.51%)
A-Class Shares with sales charge‡	115.83%	(17.16%)	(15.92%)
C-Class Shares	124.62%	(16.97%)	(16.14%)
C-Class Shares with CDSC§	123.62%	(16.97%)	(16.14%)
H-Class Shares**	126.23%	(16.35%)	(15.61%)
S&P 500 Energy Index	75.16%	(0.75%)	(1.55%)
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 59

SCHEDULE OF INVESTMENTS	March 31, 2021
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.2%
Oil & Gas Services - 78.8%
Schlumberger N.V.		34,690	$	943,221
Baker Hughes Co.		32,585		704,162
Halliburton Co.		30,663		658,028
NOV, Inc.*		24,522		336,442
ChampionX Corp.*		14,467		314,368
TechnipFMC plc*		31,858		245,944
Liberty Oilfield Services, Inc. — Class A*		21,647		244,395
Archrock, Inc.		21,999		208,771
Dril-Quip, Inc.*		5,558		184,692
ProPetro Holding Corp.*		16,915		180,314
Oceaneering International, Inc.*		15,758		179,956
US Silica Holdings, Inc.*		13,367		164,280
DMC Global, Inc.*		2,929		158,928
Bristow Group, Inc.*		5,973		154,581
Core Laboratories N.V.		5,213		150,082
Solaris Oilfield Infrastructure, Inc. — Class A		9,853		120,896
Oil States International, Inc.*		17,038		102,739
Matrix Service Co.*		7,809		102,376
Total Oil & Gas Services				5,154,175
Oil & Gas - 8.8%
Helmerich & Payne, Inc.		9,141		246,441
Patterson-UTI Energy, Inc.		27,361		195,084
Nabors Industries Ltd.*,1		1,437		134,288
Total Oil & Gas				575,813
Transportation - 4.4%
SEACOR Holdings, Inc.*		3,983		162,307
Tidewater, Inc.*		9,996		125,250
Total Transportation				287,557
Machinery-Diversified - 4.1%
Cactus, Inc. — Class A		8,794		269,273
Metal Fabricate & Hardware - 3.1%
Tenaris S.A. ADR		8,904		202,032
Total Common Stocks
(Cost $3,727,147)				6,488,850
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	28,512		28,512
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		12,963		12,963
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		11,831		11,831
Total Repurchase Agreements
(Cost $53,306)				53,306
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		101,115		101,115
Total Securities Lending Collateral
(Cost $101,115)				101,115
Total Investments - 101.5%
(Cost $3,881,568)			$	6,643,271
Other Assets & Liabilities, net - (1.5)%				(96,105	)
Total Net Assets - 100.0%			$	6,547,166

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
ENERGY SERVICES FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	6,488,850	$	—	$	—	$	6,488,850
Repurchase Agreements		—		53,306		—		53,306
Securities Lending Collateral		101,115		—		—		101,115
Total Assets	$	6,589,965	$	53,306	$	—	$	6,643,271

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $99,992 of securities loaned (cost $3,828,262)	$	6,589,965
Repurchase agreements, at value (cost $53,306)		53,306
Receivables:
Fund shares sold		125,178
Dividends		3,798
Total assets		6,772,247
Liabilities:
Payable for:
Return of securities lending collateral		101,115
Fund shares redeemed		96,918
Management fees		8,236
Transfer agent and administrative fees		2,606
Distribution and service fees		1,317
Portfolio accounting fees		969
Trustees’ fees*		196
Miscellaneous		13,724
Total liabilities		225,081
Commitments and contingent liabilities (Note 10)		—
Net assets	$	6,547,166
Net assets consist of:
Paid in capital	$	42,332,719
Total distributable earnings (loss)		(35,785,553	)
Net assets	$	6,547,166
Investor Class:
Net assets	$	4,702,925
Capital shares outstanding		27,795
Net asset value per share	$	169.20
A-Class:
Net assets	$	676,267
Capital shares outstanding		4,294
Net asset value per share	$	157.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	165.34
C-Class:
Net assets	$	478,840
Capital shares outstanding		3,486
Net asset value per share	$	137.36
H-Class:
Net assets	$	689,134
Capital shares outstanding		4,515
Net asset value per share	$	152.63

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $34)	$	107,845
Interest		13
Income from securities lending, net		615
Total investment income		108,473
Expenses:
Management fees		42,011
Distribution and service fees:
A-Class		1,216
C-Class		3,121
H-Class		2,512
Transfer agent and administrative fees		13,758
Portfolio accounting fees		4,943
Professional fees		2,003
Trustees’ fees*		861
Custodian fees		695
Line of credit fees		37
Miscellaneous		6,169
Total expenses		77,326
Net investment income		31,147
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,872,726	)
Net realized loss		(2,872,726	)
Net change in unrealized appreciation (depreciation) on:
Investments		4,839,953
Net change in unrealized appreciation (depreciation)		4,839,953
Net realized and unrealized gain		1,967,227
Net increase in net assets resulting from operations	$	1,998,374

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	31,147		$	84,822
Net realized loss on investments		(2,872,726	)		(4,960,531	)
Net change in unrealized appreciation (depreciation) on investments		4,839,953			(3,553,608	)
Net increase (decrease) in net assets resulting from operations		1,998,374			(8,429,317	)
Distributions to shareholders:
Investor Class		(58,239	)		(5,823	)
A-Class		(7,763	)		(749	)
C-Class		(5,500	)		(806	)
H-Class		(13,320	)		(856	)
Total distributions to shareholders		(84,822	)		(8,234	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		30,897,142			46,095,104
A-Class		1,084,574			603,109
C-Class		749,587			778,132
H-Class		11,467,298			42,129,255
Distributions reinvested
Investor Class		57,067			5,544
A-Class		7,098			737
C-Class		5,499			805
H-Class		13,320			848
Cost of shares redeemed
Investor Class		(29,134,887	)		(45,009,881	)
A-Class		(973,357	)		(691,018	)
C-Class		(682,420	)		(885,394	)
H-Class		(11,270,764	)		(47,122,584	)
Net increase (decrease) from capital share transactions		2,220,157			(4,095,343	)
Net increase (decrease) in net assets		4,133,709			(12,532,894	)
Net assets:
Beginning of year		2,413,457			14,946,351
End of year	$	6,547,166		$	2,413,457
Capital share activity:*
Shares sold
Investor Class		241,060			206,211
A-Class		9,335			2,697
C-Class		7,226			4,369
H-Class		82,664			205,860
Shares issued from reinvestment of distributions
Investor Class		388			27
A-Class		52			4
C-Class		46			5
H-Class		100			5
Shares redeemed
Investor Class		(233,553	)		(210,793	)
A-Class		(7,803	)		(3,133	)
C-Class		(6,885	)		(4,800	)
H-Class		(85,965	)		(223,182	)
Net increase (decrease) in shares		6,665			(22,730	)

* Capital share activity for the year ended March 31, 2020 has been restated to reflect a 1:15 reverse share split effective August 10, 2020 — See Note 9.

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	75.50		$	281.99		$	378.02		$	483.58		$	426.14
Income (loss) from investment operations:
Net investment income (loss)a		.20			2.40			.15			8.85	d		.15
Net gain (loss) on investments (realized and unrealized)		95.34			(208.59	)		(92.88	)		(110.66	)		61.04
Total from investment operations		95.54			(206.19	)		(92.73	)		(101.81	)		61.19
Less distributions from:
Net investment income		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Total distributions		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Net asset value, end of period	$	169.20		$	75.50		$	281.99		$	378.02		$	483.58
Total Return		127.06	%		(73.21	%)		(24.43	%)		(21.11	%)		14.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,703		$	1,502		$	6,896		$	8,181		$	11,757
Ratios to average net assets:
Net investment income (loss)		0.82	%		1.11	%		0.06	%		2.19	%e		0.03	%
Total expenses		1.42	%		1.48	%		1.46	%		1.38	%		1.38	%
Portfolio turnover rate		770	%		810	%		1,453	%		1,824	%		1,830	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	70.51		$	264.03		$	355.19		$	455.88		$	402.86
Income (loss) from investment operations:
Net investment income (loss)a		.19			1.95			1.80			9.00	d		(2.10	)
Net gain (loss) on investments (realized and unrealized)		88.63			(195.17	)		(89.66	)		(105.94	)		58.87
Total from investment operations		88.82			(193.22	)		(87.86	)		(96.94	)		56.77
Less distributions from:
Net investment income		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Total distributions		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Net asset value, end of period	$	157.49		$	70.51		$	264.03		$	355.19		$	455.88
Total Returnb		126.39	%		(73.26	%)		(24.65	%)		(21.31	%)		14.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	676		$	191		$	829		$	811		$	1,295
Ratios to average net assets:
Net investment income (loss)		0.87	%		0.94	%		0.60	%		2.37	%e		(0.47	%)
Total expenses		1.68	%		1.73	%		1.73	%		1.63	%		1.62	%
Portfolio turnover rate		770	%		810	%		1,453	%		1,824	%		1,830	%

64 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	62.08		$	234.26		$	317.99		$	411.65		$	366.84
Income (loss) from investment operations:
Net investment income (loss)a		(.01	)		.30			(2.55	)		5.70	d		(4.95	)
Net gain (loss) on investments (realized and unrealized)		77.13			(172.18	)		(77.88	)		(95.61	)		53.51
Total from investment operations		77.12			(171.88	)		(80.43	)		(89.91	)		48.56
Less distributions from:
Net investment income		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Total distributions		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Net asset value, end of period	$	137.36		$	62.08		$	234.26		$	317.99		$	411.65
Total Returnb		124.62	%		(73.46	%)		25.17	%		(21.89	%)		13.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	479		$	192		$	826		$	1,836		$	3,258
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		0.20	%		(0.84	%)		1.66	%e		(1.23	%)
Total expenses		2.43	%		2.48	%		2.45	%		2.38	%		2.37	%
Portfolio turnover rate		770	%		810	%		1,453	%		1,824	%		1,830	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	68.37		$	255.45		$	343.95		$	442.11		$	391.01
Income (loss) from investment operations:
Net investment income (loss)a		.02			1.65			.45			2.85	d		(1.20	)
Net gain (loss) on investments (realized and unrealized)		86.08			(188.43	)		(85.65	)		(97.26	)		56.05
Total from investment operations		86.10			(186.78	)		(85.20	)		(94.41	)		54.85
Less distributions from:
Net investment income		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Total distributions		(1.84	)		(.30	)		(3.30	)		(3.75	)		(3.75	)
Net asset value, end of period	$	152.63		$	68.37		$	255.45		$	343.95		$	442.11
Total Return		126.23	%		(73.19	%)		(24.67	%)		(21.40	%)		14.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	689		$	528		$	6,395		$	15,754		$	4,193
Ratios to average net assets:
Net investment income (loss)		0.11	%		0.77	%		0.15	%		0.76	%e		(0.29	%)
Total expenses		1.68	%		1.72	%		1.70	%		1.63	%		1.62	%
Portfolio turnover rate		770	%		810	%		1,453	%		1,824	%		1,830	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the years presented through March 31, 2020 have been restated to reflect a 1:15 reverse share split effective August 10, 2020 — See Note 9.
d	Net investments income per share includes $0.54, $0.50, $0.45, and $0.50 for Investor Class, A-Class, C-Class, and H-Class, respectively resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.
e	Net investment income to average net assets includes 1.99% from Investor Class, A-Class, C-Class, and H-Class, resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

FINANCIAL SERVICES FUND

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

For the one-year period ended March 31, 2021, Financial Services Fund Investor Class returned 62.12%, compared with 67.50% for the S&P 500 Financials Index. The broader S&P 500 Index returned 56.35%.

Regional banks, asset management & custody banks, and diversified banks contributed the most to return. Life sciences tools & services was the only industry to detract from return.

JPMorgan Chase & Co., Morgan Stanley, and Bank of America Corp. contributed the most to the Fund’s return for the period. eHealth, Inc., Illumina, Inc., and RenaissanceRe Holdings Ltd. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 2, 1998
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	3.1%
JPMorgan Chase & Co.	2.7%
Bank of America Corp.	2.3%
Wells Fargo & Co.	1.6%
Citigroup, Inc.	1.6%
Morgan Stanley	1.5%
Charles Schwab Corp.	1.4%
BlackRock, Inc. — Class A	1.4%
American Tower Corp. — Class A	1.4%
American Express Co.	1.4%
Top Ten Total	18.4%
“Ten Largest Holdings” excludes any temporary cash investments.

66 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	62.12%	11.95%	9.11%
A-Class Shares	61.74%	11.67%	8.83%
A-Class Shares with sales charge‡	54.06%	10.59%	8.30%
C-Class Shares	60.51%	10.84%	8.03%
C-Class Shares with CDSC§	59.51%	10.84%	8.03%
H-Class Shares**	61.72%	11.67%	8.72%
S&P 500 Financials Index	67.50%	15.67%	12.11%
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 67

SCHEDULE OF INVESTMENTS	March 31, 2021
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
REITs - 29.0%
American Tower Corp. — Class A		2,258	$	539,797
Prologis, Inc.		4,296		455,376
Crown Castle International Corp.		2,586		445,128
Equinix, Inc.		585		397,560
Public Storage		1,361		335,840
Digital Realty Trust, Inc.		2,351		331,115
Simon Property Group, Inc.		2,681		305,017
SBA Communications Corp.		1,026		284,766
Welltower, Inc.		3,851		275,847
Weyerhaeuser Co.		7,451		265,256
Equity Residential		3,604		258,155
AvalonBay Communities, Inc.		1,373		253,332
Realty Income Corp.		3,886		246,761
Alexandria Real Estate Equities, Inc.		1,438		236,263
Ventas, Inc.		4,175		222,695
Invitation Homes, Inc.		6,832		218,556
VICI Properties, Inc.		7,607		214,822
Extra Space Storage, Inc.		1,599		211,947
Healthpeak Properties, Inc.		6,547		207,802
Sun Communities, Inc.		1,381		207,205
Essex Property Trust, Inc.		761		206,870
Duke Realty Corp.		4,788		200,761
Boston Properties, Inc.		1,938		196,242
UDR, Inc.		4,112		180,352
WP Carey, Inc.		2,545		180,084
Medical Properties Trust, Inc.		8,341		177,496
Equity LifeStyle Properties, Inc.		2,693		171,383
Host Hotels & Resorts, Inc.*		10,010		168,668
American Homes 4 Rent — Class A		5,003		166,800
Camden Property Trust		1,499		164,755
Americold Realty Trust		4,123		158,612
Gaming and Leisure Properties, Inc.		3,732		158,349
Regency Centers Corp.		2,750		155,953
Lamar Advertising Co. — Class A		1,629		152,996
AGNC Investment Corp.		9,070		152,013
STORE Capital Corp.		4,515		151,253
VEREIT, Inc.		3,877		149,730
CyrusOne, Inc.		2,160		146,275
Omega Healthcare Investors, Inc.		3,988		146,080
Vornado Realty Trust		3,183		144,476
National Retail Properties, Inc.		3,204		141,200
Federal Realty Investment Trust		1,381		140,102
CubeSmart		3,658		138,382
Kilroy Realty Corp.		2,086		136,904
Rexford Industrial Realty, Inc.		2,574		129,730
Life Storage, Inc.		1,485		127,636
CoreSite Realty Corp.		1,040		124,644
American Campus Communities, Inc.		2,850		123,035
First Industrial Realty Trust, Inc.		2,684		122,900
Healthcare Trust of America, Inc. — Class A		4,447		122,648
Brixmor Property Group, Inc.		6,043		122,250
EastGroup Properties, Inc.		840		120,355
Douglas Emmett, Inc.		3,624		113,794
SL Green Realty Corp.		1,547		108,275
Agree Realty Corp.		1,543		103,859
Healthcare Realty Trust, Inc.		3,415		103,543
QTS Realty Trust, Inc. — Class A		1,640		101,746
Hudson Pacific Properties, Inc.		3,706		100,544
Total REITs				11,423,935
Banks - 24.3%
JPMorgan Chase & Co.		7,027		1,069,720
Bank of America Corp.		23,768		919,584
Wells Fargo & Co.		16,075		628,050
Citigroup, Inc.		8,488		617,502
Morgan Stanley		7,554		586,644
Goldman Sachs Group, Inc.		1,621		530,067
U.S. Bancorp		8,247		456,142
Truist Financial Corp.		7,599		443,174
PNC Financial Services Group, Inc.		2,455		430,632
Bank of New York Mellon Corp.		6,919		327,199
State Street Corp.		3,233		271,604
First Republic Bank		1,621		270,302
Fifth Third Bancorp		6,819		255,371
SVB Financial Group*		486		239,919
Northern Trust Corp.		2,255		237,023
M&T Bank Corp.		1,458		221,047
Regions Financial Corp.		10,685		220,752
KeyCorp		10,916		218,102
Citizens Financial Group, Inc.		4,890		215,893
ICICI Bank Ltd. ADR*		12,565		201,417
Huntington Bancshares, Inc.		12,623		198,434
HDFC Bank Ltd. ADR*		2,501		194,303
Signature Bank		793		179,297
Toronto-Dominion Bank		2,692		175,545
HSBC Holdings plc ADR		5,712		166,448
First Horizon Corp.		8,968		151,649
Zions Bancorp North America		2,708		148,832
Total Banks				9,574,652
Insurance - 22.9%
Berkshire Hathaway, Inc. — Class B*		4,825		1,232,643
Marsh & McLennan Companies, Inc.		3,295		401,331
Willis Towers Watson plc		1,707		390,698
Progressive Corp.		4,072		389,324
Aon plc — Class A		1,603		368,866
MetLife, Inc.		6,039		367,111
Chubb Ltd.		2,263		357,486
American International Group, Inc.		6,791		313,812
Travelers Companies, Inc.		2,018		303,507
Prudential Financial, Inc.		3,292		299,901
Aflac, Inc.		5,824		298,072
Allstate Corp.		2,573		295,638
Arthur J Gallagher & Co.		1,973		246,171
Hartford Financial Services Group, Inc.		3,655		244,118
Arch Capital Group Ltd.*		5,517		211,687
Principal Financial Group, Inc.		3,385		202,965
Cincinnati Financial Corp.		1,944		200,407
Everest Re Group Ltd.		800		198,248
Markel Corp.*		170		193,735

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
FINANCIAL SERVICES FUND

	Shares		Value
Equitable Holdings, Inc.		5,848	$	190,762
Athene Holding Ltd. — Class A*		3,731		188,042
Loews Corp.		3,592		184,198
Brown & Brown, Inc.		3,964		181,194
RenaissanceRe Holdings Ltd.		1,120		179,480
Fidelity National Financial, Inc.		4,262		173,293
Lincoln National Corp.		2,743		170,807
Globe Life, Inc.		1,720		166,204
American Financial Group, Inc.		1,363		155,518
Reinsurance Group of America, Inc. — Class A		1,173		147,857
Assurant, Inc.		1,021		144,747
Voya Financial, Inc.		2,219		141,217
First American Financial Corp.		2,284		129,389
Unum Group		4,271		118,862
Lemonade, Inc.*,1		1,275		118,741
MGIC Investment Corp.		8,105		112,254
Total Insurance				9,018,285
Diversified Financial Services - 15.5%
Charles Schwab Corp.		8,533		556,181
BlackRock, Inc. — Class A		726		547,375
American Express Co.		3,797		537,048
CME Group, Inc. — Class A		2,113		431,538
Intercontinental Exchange, Inc.		3,581		399,926
Capital One Financial Corp.		3,021		384,362
Rocket Companies, Inc. — Class A1		14,813		342,032
T. Rowe Price Group, Inc.		1,838		315,401
Discover Financial Services		2,861		271,766
Nasdaq, Inc.		1,704		251,272
Synchrony Financial		6,009		244,326
Ameriprise Financial, Inc.		1,027		238,726
Apollo Global Management, Inc.		4,849		227,951
Tradeweb Markets, Inc. — Class A		2,842		210,308
Ally Financial, Inc.		4,592		207,604
Franklin Resources, Inc.		6,616		195,834
Invesco Ltd.		6,827		172,177
LPL Financial Holdings, Inc.		1,192		169,455
Cboe Global Markets, Inc.		1,630		160,865
SLM Corp.		7,387		132,744
Credit Acceptance Corp.*,1		337		121,397
Total Diversified Financial Services				6,118,288
Commercial Services - 2.7%
S&P Global, Inc.		1,334		470,729
Moody’s Corp.		1,291		385,505
MarketAxess Holdings, Inc.		436		217,093
Total Commercial Services				1,073,327
Private Equity - 2.5%
Blackstone Group, Inc. — Class A		6,479		482,880
KKR & Company, Inc. — Class A		6,805		332,424
Brookfield Asset Management, Inc. — Class A		4,143		184,364
Total Private Equity				999,668
Biotechnology - 1.0%
Illumina, Inc.*		950		364,857
Software - 0.8%
MSCI, Inc. — Class A		721		302,301
Media - 0.4%
FactSet Research Systems, Inc.		556		171,576
Savings & Loans - 0.4%
People’s United Financial, Inc.		7,753		138,779
Total Common Stocks
(Cost $32,047,775)				39,185,668
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.0%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	204,704		204,704
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		93,068		93,068
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		84,940		84,940
Total Repurchase Agreements
(Cost $382,712)				382,712
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		442,611		442,611
Total Securities Lending Collateral
(Cost $442,611)				442,611
Total Investments - 101.6%
(Cost $32,873,098)			$	40,010,991
Other Assets & Liabilities, net - (1.6)%				(617,422	)
Total Net Assets - 100.0%			$	39,393,569

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
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 a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	39,185,668	$	—	$	—	$	39,185,668
Repurchase Agreements		—		382,712		—		382,712
Securities Lending Collateral		442,611		—		—		442,611
Total Assets	$	39,628,279	$	382,712	$	—	$	40,010,991

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $430,876 of securities loaned (cost $32,490,386)	$	39,628,279
Repurchase agreements, at value (cost $382,712)		382,712
Cash		1,664
Receivables:
Fund shares sold		209,418
Dividends		65,878
Foreign tax reclaims		299
Securities lending income		48
Total assets		40,288,298
Liabilities:
Payable for:
Return of securities lending collateral		442,611
Securities purchased		360,173
Fund shares redeemed		27,175
Management fees		22,127
Transfer agent and administrative fees		7,002
Portfolio accounting fees		2,603
Distribution and service fees		1,703
Trustees’ fees*		441
Miscellaneous		30,894
Total liabilities		894,729
Commitments and contingent liabilities (Note 10)		—
Net assets	$	39,393,569
Net assets consist of:
Paid in capital	$	33,617,543
Total distributable earnings (loss)		5,776,026
Net assets	$	39,393,569
Investor Class:
Net assets	$	32,328,127
Capital shares outstanding		363,880
Net asset value per share	$	88.84
A-Class:
Net assets	$	2,779,813
Capital shares outstanding		33,635
Net asset value per share	$	82.65
Maximum offering price per share (Net asset value divided by 95.25%)	$	86.77
C-Class:
Net assets	$	1,035,623
Capital shares outstanding		14,471
Net asset value per share	$	71.57
H-Class:
Net assets	$	3,250,006
Capital shares outstanding		40,574
Net asset value per share	$	80.10

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $841)	$	437,416
Interest		70
Income from securities lending, net		550
Total investment income		438,036
Expenses:
Management fees		144,253
Distribution and service fees:
A-Class		17,396
C-Class		6,520
H-Class		1,219
Transfer agent and administrative fees		47,427
Portfolio accounting fees		16,974
Professional fees		5,943
Trustees’ fees*		3,307
Custodian fees		2,609
Line of credit fees		24
Miscellaneous		22,425
Total expenses		268,097
Net investment income		169,939
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		19,848
Net realized gain		19,848
Net change in unrealized appreciation (depreciation) on:
Investments		6,560,465
Net change in unrealized appreciation (depreciation)		6,560,465
Net realized and unrealized gain		6,580,313
Net increase in net assets resulting from operations	$	6,750,252

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

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	169,939		$	224,910
Net realized gain (loss) on investments		19,848			967,033
Net change in unrealized appreciation (depreciation) on investments		6,560,465			(3,396,384	)
Net increase (decrease) in net assets resulting from operations		6,750,252			(2,204,441	)
Distributions to shareholders:
Investor Class		—			(64,630	)
A-Class		—			(36,597	)
C-Class		—			(5,315	)
H-Class		—			(8,748	)
Total distributions to shareholders		—			(115,290	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		62,886,989			49,827,414
A-Class		1,669,156			4,186,426
C-Class		1,791,284			1,741,582
H-Class		3,147,059			18,267,949
Distributions reinvested
Investor Class		—			63,368
A-Class		—			36,296
C-Class		—			5,268
H-Class		—			8,748
Cost of shares redeemed
Investor Class		(36,775,287	)		(51,288,443	)
A-Class		(7,580,564	)		(4,716,834	)
C-Class		(1,699,737	)		(1,914,065	)
H-Class		(757,798	)		(19,106,628	)
Net increase (decrease) from capital share transactions		22,681,102			(2,888,919	)
Net increase (decrease) in net assets		29,431,354			(5,208,650	)
Net assets:
Beginning of year		9,962,215			15,170,865
End of year	$	39,393,569		$	9,962,215
Capital share activity:
Shares sold
Investor Class		841,230			673,773
A-Class		27,662			61,997
C-Class		30,564			28,914
H-Class		40,856			274,440
Shares issued from reinvestment of distributions
Investor Class		—			821
A-Class		—			504
C-Class		—			84
H-Class		—			125
Shares redeemed
Investor Class		(531,516	)		(692,918	)
A-Class		(106,444	)		(68,450	)
C-Class		(30,403	)		(32,121	)
H-Class		(12,616	)		(288,019	)
Net increase (decrease) in shares		259,333			(40,850	)

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	54.80		$	68.68		$	72.17		$	65.14		$	53.90
Income (loss) from investment operations:
Net investment income (loss)a		.88			.83			.53			.61			.55
Net gain (loss) on investments (realized and unrealized)		33.16			(14.39	)		(.86	)e		6.79			11.14
Total from investment operations		34.04			(13.56	)		(.33	)		7.40			11.69
Less distributions from:
Net investment income		—			(.32	)		(.89	)		(.37	)		(.45	)
Net realized gains		—			—			(2.27	)		—			—
Total distributions		—			(.32	)		(3.16	)		(.37	)		(.45	)
Net asset value, end of period	$	88.84		$	54.80		$	68.68		$	72.17		$	65.14
Total Return		62.12	%		(19.88	%)		(0.14	%)		11.37	%		21.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,328		$	2,968		$	4,978		$	25,183		$	39,214
Ratios to average net assets:
Net investment income (loss)		1.19	%		1.12	%		0.74	%		0.89	%		0.90	%
Total expenses		1.41	%		1.48	%		1.45	%		1.38	%		1.38	%
Portfolio turnover rate		246	%		249	%		410	%		347	%		389	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	51.10		$	64.22		$	67.88		$	61.44		$	51.00
Income (loss) from investment operations:
Net investment income (loss)a		.55			.54			.37			.53			.41
Net gain (loss) on investments (realized and unrealized)		31.00			(13.34	)		(.87	)e		6.28			10.48
Total from investment operations		31.55			(12.80	)		(.50	)		6.81			10.89
Less distributions from:
Net investment income		—			(.32	)		(.89	)		(.37	)		(.45	)
Net realized gains		—			—			(2.27	)		—			—
Total distributions		—			(.32	)		(3.16	)		(.37	)		(.45	)
Net asset value, end of period	$	82.65		$	51.10		$	64.22		$	67.88		$	61.44
Total Returnb		61.74	%		(20.07	%)		(0.41	%)		11.08	%		21.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,780		$	5,745		$	7,602		$	8,293		$	1,834
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.78	%		0.55	%		0.81	%		0.73	%
Total expenses		1.70	%		1.72	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		246	%		249	%		410	%		347	%		389	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	44.59		$	56.49		$	60.56		$	55.26		$	46.24
Income (loss) from investment operations:
Net investment income (loss)a		(.03	)		.01			(.16	)		—	d		(.07	)
Net gain (loss) on investments (realized and unrealized)		27.01			(11.59	)		(.75	)e		5.67			9.54
Total from investment operations		26.98			(11.58	)		(.91	)		5.67			9.47
Less distributions from:
Net investment income		—			(.32	)		(.89	)		(.37	)		(.45	)
Net realized gains		—			—			(2.27	)		—			—
Total distributions		—			(.32	)		(3.16	)		(.37	)		(.45	)
Net asset value, end of period	$	71.57		$	44.59		$	56.49		$	60.56		$	55.26
Total Returnb		60.51	%		(20.66	%)		(1.15	%)		10.27	%		20.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,036		$	638		$	985		$	2,218		$	2,270
Ratios to average net assets:
Net investment income (loss)		(0.06	%)		0.02	%		(0.27	%)		—	f		(0.13	%)
Total expenses		2.43	%		2.47	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		246	%		249	%		410	%		347	%		389	%

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	49.53		$	62.26		$	65.93		$	59.67		$	49.53
Income (loss) from investment operations:
Net investment income (loss)a		.68			.54			.03			.46			.33
Net gain (loss) on investments (realized and unrealized)		29.89			(12.95	)		(.54	)e		6.17			10.26
Total from investment operations		30.57			(12.41	)		(.51	)		6.63			10.59
Less distributions from:
Net investment income		—			(.32	)		(.89	)		(.37	)		(.45	)
Net realized gains		—			—			(2.27	)		—			—
Total distributions		—			(.32	)		(3.16	)		(.37	)		(.45	)
Net asset value, end of period	$	80.10		$	49.53		$	62.26		$	65.93		$	59.67
Total Return		61.72	%		(20.08	%)		(0.42	%)		11.11	%		21.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,250		$	611		$	1,606		$	3,014		$	18,259
Ratios to average net assets:
Net investment income (loss)		1.07	%		0.81	%		0.05	%		0.72	%		0.58	%
Total expenses		1.69	%		1.72	%		1.73	%		1.63	%		1.63	%
Portfolio turnover rate		246	%		249	%		410	%		347	%		389	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	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.
d	Less than $0.01 per share.
e	The amount shown for a share outstanding throughout the period does not agree with the aggregate net gain on investments for the year because of the sales and purchases of fund shares in relation to fluctuating market value of the investments of the Fund.
f	Less than 0.01% or (0.01%).

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

HEALTH CARE FUND

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

For the one-year period ended March 31, 2021, Health Care Fund Investor Class returned 41.24%, compared with 34.04% for the S&P 500 Health Care Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by health care equipment, biotechnology, and pharmaceuticals.

UnitedHealth Group, Inc., Immunomedics, Inc., and Thermo Fisher Scientific, Inc. contributed the most to the Fund’s return for the period. Biogen, Inc., Amarin Corp. plc ADR, and Quidel Corp. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.3%
UnitedHealth Group, Inc.	3.0%
Abbott Laboratories	2.3%
Pfizer, Inc.	2.2%
AbbVie, Inc.	2.2%
Merck & Company, Inc.	2.2%
Thermo Fisher Scientific, Inc.	2.1%
Eli Lilly & Co.	2.1%
Danaher Corp.	2.0%
Amgen, Inc.	1.9%
Top Ten Total	23.3%
“Ten Largest Holdings” excludes any temporary cash investments.

76 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	41.24%	13.46%	13.66%
A-Class Shares	40.87%	13.16%	13.37%
A-Class Shares with sales charge‡	34.19%	12.06%	12.82%
C-Class Shares	39.82%	12.33%	12.53%
C-Class Shares with CDSC§	38.82%	12.33%	12.53%
H-Class Shares**	40.93%	13.17%	13.27%
S&P 500 Health Care Index	34.04%	13.61%	15.61%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
**	Effective September 20, 215, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 77

SCHEDULE OF INVESTMENTS	March 31, 2021
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Pharmaceuticals - 31.7%
Johnson & Johnson		6,311	$	1,037,213
Pfizer, Inc.		19,457		704,927
AbbVie, Inc.		6,428		695,638
Merck & Company, Inc.		8,913		687,103
Eli Lilly & Co.		3,560		665,079
Bristol-Myers Squibb Co.		9,339		589,571
CVS Health Corp.		6,533		491,478
Cigna Corp.		1,871		452,296
Canopy Growth Corp.*		13,861		443,968
Zoetis, Inc.		2,754		433,700
Becton Dickinson and Co.		1,720		418,218
DexCom, Inc.*		831		298,653
AstraZeneca plc ADR1		5,708		283,802
McKesson Corp.		1,439		280,663
AmerisourceBergen Corp. — Class A		2,075		244,995
Cardinal Health, Inc.		3,890		236,318
Horizon Therapeutics plc*		2,482		228,443
Viatris, Inc.*		14,171		197,969
Novartis AG ADR		2,288		195,578
Jazz Pharmaceuticals plc*		1,185		194,778
GlaxoSmithKline plc ADR		5,428		193,725
Teva Pharmaceutical Industries Ltd. ADR*		15,690		181,063
Perrigo Company plc		4,322		174,911
Elanco Animal Health, Inc.*		5,833		171,782
Henry Schein, Inc.*		2,260		156,482
Neurocrine Biosciences, Inc.*		1,596		155,211
Sarepta Therapeutics, Inc.*		1,525		113,658
Total Pharmaceuticals				9,927,222
Healthcare-Products - 30.1%
Abbott Laboratories		6,036		723,354
Thermo Fisher Scientific, Inc.		1,463		667,684
Danaher Corp.		2,834		637,877
Medtronic plc		4,841		571,867
Stryker Corp.		1,992		485,211
Intuitive Surgical, Inc.*		646		477,355
Boston Scientific Corp.*		9,494		366,943
Edwards Lifesciences Corp.*		4,387		366,929
Align Technology, Inc.*		615		333,041
Baxter International, Inc.		3,914		330,107
IDEXX Laboratories, Inc.*		652		319,030
Zimmer Biomet Holdings, Inc.		1,788		286,223
ResMed, Inc.		1,380		267,747
West Pharmaceutical Services, Inc.		819		230,778
10X Genomics, Inc. — Class A*		1,247		225,707
Hologic, Inc.*		2,973		221,132
Insulet Corp.*		800		208,736
Avantor, Inc.*		7,077		204,737
STERIS plc		1,060		201,909
Varian Medical Systems, Inc.*		1,124		198,420
Novocure Ltd.*		1,476		195,098
ABIOMED, Inc.*		612		195,063
PerkinElmer, Inc.		1,466		188,073
Dentsply Sirona, Inc.		2,902		185,177
Masimo Corp.*		779		178,905
QIAGEN N.V.*		3,498		170,318
Repligen Corp.*		816		158,638
Penumbra, Inc.*		562		152,066
Hill-Rom Holdings, Inc.		1,216		134,344
Tandem Diabetes Care, Inc.*		1,343		118,520
Haemonetics Corp.*		1,040		115,450
Quidel Corp.*		870		111,299
Nevro Corp.*		766		106,857
iRhythm Technologies, Inc.*		735		102,062
Total Healthcare-Products				9,436,657
Biotechnology - 18.9%
Amgen, Inc.		2,389		594,407
Gilead Sciences, Inc.		6,901		446,012
Vertex Pharmaceuticals, Inc.*		1,723		370,255
Illumina, Inc.*		933		358,328
Regeneron Pharmaceuticals, Inc.*		741		350,597
Moderna, Inc.*		2,621		343,220
Biogen, Inc.*		1,182		330,665
Alexion Pharmaceuticals, Inc.*		1,877		287,012
Seagen, Inc.*		1,741		241,755
Exact Sciences Corp.*		1,788		235,623
CRISPR Therapeutics AG*		1,834		223,473
Incyte Corp.*		2,612		212,277
BioNTech SE ADR*,1		1,942		212,047
Alnylam Pharmaceuticals, Inc.*		1,423		200,913
Guardant Health, Inc.*		1,315		200,735
BioMarin Pharmaceutical, Inc.*		2,390		180,469
Novavax, Inc.*		904		163,904
Mirati Therapeutics, Inc.*		834		142,864
United Therapeutics Corp.*		797		133,314
Exelixis, Inc.*		5,759		130,096
Pacific Biosciences of California, Inc.*		3,838		127,844
Arrowhead Pharmaceuticals, Inc.*		1,927		127,779
Twist Bioscience Corp.*		972		120,392
Emergent BioSolutions, Inc.*		1,213		112,700
Inovio Pharmaceuticals, Inc.*,1		7,157		66,417
Total Biotechnology				5,913,098
Healthcare-Services - 14.9%
UnitedHealth Group, Inc.		2,516		936,128
Anthem, Inc.		1,300		466,635
HCA Healthcare, Inc.		2,100		395,514
Humana, Inc.		873		366,005
IQVIA Holdings, Inc.*		1,581		305,354
Centene Corp.*		4,708		300,888
Teladoc Health, Inc.*		1,411		256,449
Laboratory Corporation of America Holdings*		998		254,520
Catalent, Inc.*		1,995		210,094
Quest Diagnostics, Inc.		1,618		207,654
Charles River Laboratories International, Inc.*		652		188,969
Molina Healthcare, Inc.*		785		183,502
DaVita, Inc.*		1,559		168,014
Universal Health Services, Inc. — Class B		1,213		161,802

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
HEALTH CARE FUND

	Shares		Value
Encompass Health Corp.		1,729	$	141,605
Invitae Corp.*,1		3,464		132,360
Total Healthcare-Services				4,675,493
Electronics - 2.5%
Agilent Technologies, Inc.		2,454		312,001
Mettler-Toledo International, Inc.*		232		268,120
Waters Corp.*		751		213,412
Total Electronics				793,533
Software - 1.8%
Veeva Systems, Inc. — Class A*		1,207		315,317
Cerner Corp.		3,217		231,238
Total Software				546,555
Total Common Stocks
(Cost $20,839,241)				31,292,558
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	93,260		93,260
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		42,400		42,400
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		38,697		38,697
Total Repurchase Agreements
(Cost $174,357)				174,357
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.6%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		504,567		504,567
Total Securities Lending Collateral
(Cost $504,567)				504,567
Total Investments - 102.1%
(Cost $21,518,165)			$	31,971,482
Other Assets & Liabilities, net - (2.1)%				(659,555	)
Total Net Assets - 100.0%			$	31,311,927

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	31,292,558	$	—	$	—	$	31,292,558
Repurchase Agreements		—		174,357		—		174,357
Securities Lending Collateral		504,567		—		—		504,567
Total Assets	$	31,797,125	$	174,357	$	—	$	31,971,482

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $508,604 of securities loaned (cost $21,343,808)	$	31,797,125
Repurchase agreements, at value (cost $174,357)		174,357
Receivables:
Dividends		24,370
Fund shares sold		6,797
Foreign tax reclaims		5,454
Securities lending income		130
Total assets		32,008,233
Liabilities:
Payable for:
Return of securities lending collateral		504,567
Fund shares redeemed		118,474
Management fees		23,217
Transfer agent and administrative fees		7,348
Distribution and service fees		4,253
Portfolio accounting fees		2,731
Trustees’ fees*		503
Miscellaneous		35,213
Total liabilities		696,306
Commitments and contingent liabilities (Note 10)		—
Net assets	$	31,311,927
Net assets consist of:
Paid in capital	$	21,282,996
Total distributable earnings (loss)		10,028,931
Net assets	$	31,311,927
Investor Class:
Net assets	$	20,830,604
Capital shares outstanding		530,815
Net asset value per share	$	39.24
A-Class:
Net assets	$	5,574,982
Capital shares outstanding		159,310
Net asset value per share	$	34.99
Maximum offering price per share (Net asset value divided by 95.25%)	$	36.73
C-Class:
Net assets	$	3,146,635
Capital shares outstanding		108,675
Net asset value per share	$	28.95
H-Class:
Net assets	$	1,759,706
Capital shares outstanding		52,421
Net asset value per share	$	33.57

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $20,015)	$	550,336
Interest		149
Income from securities lending, net		22,156
Total investment income		572,641
Expenses:
Management fees		460,871
Distribution and service fees:
A-Class		12,666
C-Class		33,056
H-Class		14,114
Transfer agent and administrative fees		152,520
Portfolio accounting fees		54,233
Registration fees		53,423
Professional fees		28,391
Trustees’ fees*		11,571
Custodian fees		8,133
Miscellaneous		25,924
Total expenses		854,902
Net investment loss		(282,261	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		15,084,375
Net realized gain		15,084,375
Net change in unrealized appreciation (depreciation) on:
Investments		7,068,877
Net change in unrealized appreciation (depreciation)		7,068,877
Net realized and unrealized gain		22,153,252
Net increase in net assets resulting from operations	$	21,870,991

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(282,261	)	$	(134,017	)
Net realized gain on investments		15,084,375			10,948,048
Net change in unrealized appreciation (depreciation) on investments		7,068,877			(14,177,522	)
Net increase (decrease) in net assets resulting from operations		21,870,991			(3,363,491	)
Distributions to shareholders:
Investor Class		(2,418,155	)		—
A-Class		(491,504	)		—
C-Class		(364,380	)		—
H-Class		(176,167	)		—
Total distributions to shareholders		(3,450,206	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		115,717,597			117,439,229
A-Class		1,911,924			8,301,767
C-Class		2,607,889			2,538,334
H-Class		23,504,676			12,331,415
Distributions reinvested
Investor Class		2,326,814			—
A-Class		479,893			—
C-Class		360,081			—
H-Class		175,978			—
Cost of shares redeemed
Investor Class		(122,447,090	)		(166,245,050	)
A-Class		(1,528,377	)		(9,724,774	)
C-Class		(3,342,165	)		(3,855,410	)
H-Class		(26,736,481	)		(18,823,192	)
Net decrease from capital share transactions		(6,969,261	)		(58,037,681	)
Net increase (decrease) in net assets		11,451,524			(61,401,172	)
Net assets:
Beginning of year		19,860,403			81,261,575
End of year	$	31,311,927		$	19,860,403
Capital share activity:
Shares sold
Investor Class		3,315,058			3,523,340
A-Class		58,179			285,931
C-Class		93,160			101,419
H-Class		859,426			409,835
Shares issued from reinvestment of distributions
Investor Class		61,589			—
A-Class		14,232			—
C-Class		12,878			—
H-Class		5,440			—
Shares redeemed
Investor Class		(3,255,748	)		(5,117,046	)
A-Class		(45,053	)		(321,745	)
C-Class		(119,131	)		(154,580	)
H-Class		(851,233	)		(653,035	)
Net increase (decrease) in shares		148,797			(1,925,881	)

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.27		$	32.03		$	28.88		$	27.82		$	28.65
Income (loss) from investment operations:
Net investment income (loss)a		(.15	)		(.06	)		(.13	)		(.13	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		12.50			(1.70	)		3.78			3.82			2.79
Total from investment operations		12.35			(1.76	)		3.65			3.69			2.69
Less distributions from:
Net realized gains		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Total distributions		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Net asset value, end of period	$	39.24		$	30.27		$	32.03		$	28.88		$	27.82
Total Return		41.24	%		(5.49	%)		12.75	%		13.38	%		10.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,831		$	12,408		$	64,185		$	67,542		$	36,468
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.19	%)		(0.42	%)		(0.43	%)		(0.36	%)
Total expenses		1.46	%		1.47	%		1.46	%		1.38	%		1.37	%
Portfolio turnover rate		256	%		248	%		341	%		394	%		699	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	27.33		$	29.00		$	26.26		$	25.56		$	26.68
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.12	)		(.19	)		(.19	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		11.25			(1.55	)		3.43			3.52			2.57
Total from investment operations		11.04			(1.67	)		3.24			3.33			2.40
Less distributions from:
Net realized gains		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Total distributions		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Net asset value, end of period	$	34.99		$	27.33		$	29.00		$	26.26		$	25.56
Total Returnb		40.87	%		(5.76	%)		12.46	%		13.14	%		9.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,575		$	3,606		$	4,865		$	3,102		$	4,626
Ratios to average net assets:
Net investment income (loss)		(0.63	%)		(0.43	%)		(0.68	%)		(0.69	%)		(0.62	%)
Total expenses		1.69	%		1.73	%		1.72	%		1.63	%		1.62	%
Portfolio turnover rate		256	%		248	%		341	%		394	%		699	%

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	23.21		$	24.81		$	22.69		$	22.58		$	24.13
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		(.30	)		(.35	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		9.52			(1.30	)		2.97			3.08			2.30
Total from investment operations		9.12			(1.60	)		2.62			2.74			1.97
Less distributions from:
Net realized gains		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Total distributions		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Net asset value, end of period	$	28.95		$	23.21		$	24.81		$	22.69		$	22.58
Total Returnb		39.82	%		(6.45	%)		11.68	%		12.24	%		9.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,147		$	2,826		$	4,340		$	4,940		$	4,959
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		(1.20	%)		(1.42	%)		(1.42	%)		(1.37	%)
Total expenses		2.45	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		256	%		248	%		341	%		394	%		699	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	26.31		$	27.91		$	25.29		$	24.72		$	25.91
Income (loss) from investment operations:
Net investment income (loss)a		(.21	)		(.13	)		(.18	)		(.21	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		10.85			(1.47	)		3.30			3.41			2.49
Total from investment operations		10.64			(1.60	)		3.12			3.20			2.33
Less distributions from:
Net realized gains		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Total distributions		(3.38	)		—			(.50	)		(2.63	)		(3.52	)
Net asset value, end of period	$	33.57		$	26.31		$	27.91		$	25.29		$	24.72
Total Return		40.93	%		(5.73	%)		12.46	%		13.06	%		9.87	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,760		$	1,021		$	7,871		$	5,225		$	4,809
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.45	%)		(0.66	%)		(0.77	%)		(0.62	%)
Total expenses		1.76	%		1.72	%		1.73	%		1.64	%		1.62	%
Portfolio turnover rate		256	%		248	%		341	%		394	%		699	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INTERNET FUND

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

For the one-year period ended March 31, 2021, Internet Fund Investor Class returned 85.87%, compared with 66.61% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 56.35%.

Internet & direct marketing retail, interactive media & services, and application software contributed the most to return. Real estate services and education services were the only industries to detract from return.

Amazon.com, Inc., Alphabet, Inc. - Class A, and PayPal Holdings, Inc. contributed the most to the Fund’s return for the period. Zoom Video Communications, Inc. - Class A, Momo, Inc. ADR - Class A, and Fastly, Inc. - Class A detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Amazon.com, Inc.	6.7%
Alphabet, Inc. — Class A	6.3%
Facebook, Inc. — Class A	5.1%
Alibaba Group Holding Ltd. ADR	3.8%
PayPal Holdings, Inc.	2.9%
Adobe, Inc.	2.7%
Cisco Systems, Inc.	2.6%
Netflix, Inc.	2.6%
salesforce.com, Inc.	2.5%
Booking Holdings, Inc.	1.7%
Top Ten Total	36.9%
“Ten Largest Holdings” excludes any temporary cash investments.

84 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	85.87%	24.48%	16.80%
A-Class Shares	85.41%	24.16%	16.51%
A-Class Shares with sales charge‡	76.60%	22.96%	15.94%
C-Class Shares	84.03%	23.24%	15.64%
C-Class Shares with CDSC§	83.03%	23.24%	15.64%
H-Class Shares**	85.39%	24.17%	16.38%
S&P 500 Information Technology Index	66.61%	27.64%	20.50%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 85

SCHEDULE OF INVESTMENTS	March 31, 2021
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Internet - 59.4%
Amazon.com, Inc.*		721	$	2,230,832
Alphabet, Inc. — Class A*		1,014		2,091,395
Facebook, Inc. — Class A*		5,812		1,711,808
Alibaba Group Holding Ltd. ADR*		5,556		1,259,712
Netflix, Inc.*		1,675		873,780
Booking Holdings, Inc.*		247		575,470
Uber Technologies, Inc.*		10,442		569,193
Snap, Inc. — Class A*		9,345		488,650
Baidu, Inc. ADR*		2,067		449,676
JD.com, Inc. ADR*		5,152		434,468
Pinterest, Inc. — Class A*		5,579		413,013
Twitter, Inc.*		6,358		404,560
Shopify, Inc. — Class A*		353		390,595
eBay, Inc.		6,165		377,545
MercadoLibre, Inc.*		250		368,035
Roku, Inc.*		1,127		367,143
Pinduoduo, Inc. ADR*		2,726		364,957
Chewy, Inc. — Class A*		4,248		359,848
Match Group, Inc.*		2,466		338,779
Wayfair, Inc. — Class A*		1,046		329,229
Zillow Group, Inc. — Class C*		2,496		323,581
Okta, Inc.*		1,454		320,505
Zillow Group, Inc. — Class A*		2,410		316,626
Spotify Technology S.A.*		1,135		304,123
Etsy, Inc.*		1,430		288,388
Expedia Group, Inc.*		1,641		282,449
VeriSign, Inc.*		1,421		282,438
Lyft, Inc. — Class A*		4,048		255,753
IAC*		1,135		245,512
Farfetch Ltd. — Class A*		4,530		240,181
Trip.com Group Ltd. ADR*		5,931		235,046
Fiverr International Ltd.*		1,061		230,428
Wix.com Ltd.*		809		225,889
GoDaddy, Inc. — Class A*		2,823		219,121
F5 Networks, Inc.*		1,025		213,835
Jumia Technologies AG ADR*,1		5,655		200,526
Vipshop Holdings Ltd. ADR*		6,481		193,523
JOYY, Inc. ADR		1,971		184,742
Anaplan, Inc.*		3,025		162,896
TripAdvisor, Inc.*		2,806		150,935
Grubhub, Inc.*		2,208		132,480
Stitch Fix, Inc. — Class A*		2,617		129,646
Stamps.com, Inc.*		575		114,718
Overstock.com, Inc.*		1,389		92,035
Total Internet				19,744,064
Software - 25.8%
Adobe, Inc.*		1,911		908,432
salesforce.com, Inc.*		3,863		818,454
Zoom Video Communications, Inc. — Class A*		1,727		554,868
Activision Blizzard, Inc.		5,327		495,411
Workday, Inc. — Class A*		1,770		439,721
Twilio, Inc. — Class A*		1,288		438,899
Sea Ltd. ADR*		1,681		375,250
Veeva Systems, Inc. — Class A*		1,427		372,789
Electronic Arts, Inc.		2,715		367,529
DocuSign, Inc.*		1,707		345,582
Pluralsight, Inc. — Class A*		13,613		304,114
NetEase, Inc. ADR		2,788		287,889
HubSpot, Inc.*		610		277,068
Bilibili, Inc. ADR*		2,566		274,716
Take-Two Interactive Software, Inc.*		1,530		270,351
Coupa Software, Inc.*,1		1,002		254,989
Citrix Systems, Inc.		1,778		249,560
Akamai Technologies, Inc.*		2,364		240,892
MongoDB, Inc.*		833		222,769
Dropbox, Inc. — Class A*		7,298		194,565
Five9, Inc.*		1,180		184,469
Smartsheet, Inc. — Class A*		2,616		167,215
Fastly, Inc. — Class A*,1		2,367		159,252
J2 Global, Inc.*		1,152		138,079
BigCommerce Holdings, Inc.*		2,151		124,328
New Relic, Inc.*		1,915		117,734
Total Software				8,584,925
Telecommunications - 6.7%
Cisco Systems, Inc.		16,902		874,002
Motorola Solutions, Inc.		1,744		327,959
Arista Networks, Inc.*		941		284,079
GDS Holdings Ltd. ADR*		2,553		207,023
Telefonaktiebolaget LM Ericsson ADR		15,618		206,002
Ciena Corp.*		3,039		166,294
Juniper Networks, Inc.		6,552		165,962
Total Telecommunications				2,231,321
Commercial Services - 5.4%
PayPal Holdings, Inc.*		3,998		970,874
CoStar Group, Inc.*		404		332,044
Chegg, Inc.*		2,293		196,418
Paylocity Holding Corp.*		1,035		186,124
2U, Inc.*		2,659		101,654
Total Commercial Services				1,787,114
Healthcare-Services - 0.9%
Teladoc Health, Inc.*		1,668		303,159
Computers - 0.5%
Lumentum Holdings, Inc.*		1,717		156,848
Real Estate - 0.4%
Redfin Corp.*		2,241		149,228
Total Common Stocks
(Cost $17,952,500)				32,956,659

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INTERNET FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	143,329	$	143,329
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		65,165		65,165
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		59,473		59,473
Total Repurchase Agreements
(Cost $267,967)				267,967
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		455,086		455,086
Total Securities Lending Collateral
(Cost $455,086)				455,086
Total Investments - 101.3%
(Cost $18,675,553)			$	33,679,712
Other Assets & Liabilities, net - (1.3)%				(424,141	)
Total Net Assets - 100.0%			$	33,255,571

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	32,956,659	$	—	$	—	$	32,956,659
Repurchase Agreements		—		267,967		—		267,967
Securities Lending Collateral		455,086		—		—		455,086
Total Assets	$	33,411,745	$	267,967	$	—	$	33,679,712

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $460,922 of securities loaned (cost $18,407,586)	$	33,411,745
Repurchase agreements, at value (cost $267,967)		267,967
Cash		78
Receivables:
Fund shares sold		139,586
Dividends		1,389
Securities lending income		13
Total assets		33,820,778
Liabilities:
Payable for:
Return of securities lending collateral		455,086
Fund shares redeemed		26,521
Management fees		26,370
Transfer agent and administrative fees		8,345
Distribution and service fees		4,470
Portfolio accounting fees		3,102
Trustees’ fees*		582
Miscellaneous		40,731
Total liabilities		565,207
Commitments and contingent liabilities (Note 10)		—
Net assets	$	33,255,571
Net assets consist of:
Paid in capital	$	15,063,618
Total distributable earnings (loss)		18,191,953
Net assets	$	33,255,571
Investor Class:
Net assets	$	25,112,739
Capital shares outstanding		128,397
Net asset value per share	$	195.59
A-Class:
Net assets	$	2,952,050
Capital shares outstanding		16,402
Net asset value per share	$	179.98
Maximum offering price per share (Net asset value divided by 95.25%)	$	188.96
C-Class:
Net assets	$	4,124,028
Capital shares outstanding		27,033
Net asset value per share	$	152.56
H-Class:
Net assets	$	1,066,754
Capital shares outstanding		6,141
Net asset value per share	$	173.71

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $2,939)	$	100,001
Interest		156
Income from securities lending, net		13,913
Total investment income		114,070
Expenses:
Management fees		402,138
Distribution and service fees:
A-Class		6,621
C-Class		36,147
H-Class		13,334
Transfer agent and administrative fees		131,890
Portfolio accounting fees		47,321
Registration fees		41,240
Professional fees		21,106
Trustees’ fees*		8,286
Custodian fees		6,710
Line of credit fees		50
Miscellaneous		25,217
Total expenses		740,060
Net investment loss		(625,990	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		14,063,069
Net realized gain		14,063,069
Net change in unrealized appreciation (depreciation) on:
Investments		11,989,124
Net change in unrealized appreciation (depreciation)		11,989,124
Net realized and unrealized gain		26,052,193
Net increase in net assets resulting from operations	$	25,426,203

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

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

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(625,990	)	$	(392,589	)
Net realized gain (loss) on investments		14,063,069			(1,629,638	)
Net change in unrealized appreciation (depreciation) on investments		11,989,124			(5,406,274	)
Net increase (decrease) in net assets resulting from operations		25,426,203			(7,428,501	)
Distributions to shareholders:
Investor Class		—			(710,898	)
A-Class		—			(61,275	)
C-Class		—			(101,725	)
H-Class		—			(29,916	)
Total distributions to shareholders		—			(903,814	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		92,264,221			108,639,586
A-Class		1,068,843			4,695,934
C-Class		3,618,645			2,609,673
H-Class		25,459,994			15,624,744
Distributions reinvested
Investor Class		—			702,319
A-Class		—			59,412
C-Class		—			101,270
H-Class		—			29,888
Cost of shares redeemed
Investor Class		(93,997,468	)		(106,635,760	)
A-Class		(1,630,302	)		(4,620,680	)
C-Class		(3,287,545	)		(3,528,541	)
H-Class		(31,224,635	)		(24,253,605	)
Net decrease from capital share transactions		(7,728,247	)		(6,575,760	)
Net increase (decrease) in net assets		17,697,956			(14,908,075	)
Net assets:
Beginning of year		15,557,615			30,465,690
End of year	$	33,255,571		$	15,557,615
Capital share activity:
Shares sold
Investor Class		586,376			884,862
A-Class		7,156			43,934
C-Class		29,471			27,414
H-Class		242,330			145,036
Shares issued from reinvestment of distributions
Investor Class		—			6,142
A-Class		—			563
C-Class		—			1,121
H-Class		—			293
Shares redeemed
Investor Class		(560,050	)		(919,270	)
A-Class		(11,977	)		(41,913	)
C-Class		(25,736	)		(37,179	)
H-Class		(244,993	)		(229,294	)
Net increase (decrease) in shares		22,577			(118,291	)

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

INTERNET FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	105.23		$	118.80		$	124.80		$	95.33		$	77.91
Income (loss) from investment operations:
Net investment income (loss)a		(2.03	)		(1.30	)		(1.29	)		(.80	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		92.39			(8.17	)		10.79			30.27			18.02
Total from investment operations		90.36			(9.47	)		9.50			29.47			17.42
Less distributions from:
Net realized gains		—			(4.10	)		(15.50	)		—			—
Total distributions		—			(4.10	)		(15.50	)		—			—
Net asset value, end of period	$	195.59		$	105.23		$	118.80		$	124.80		$	95.33
Total Return		85.87	%		(8.25	%)		9.39	%		30.91	%		22.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,113		$	10,741		$	15,484		$	40,843		$	17,670
Ratios to average net assets:
Net investment income (loss)		(1.21	%)		(1.08	%)		(1.00	%)		(0.71	%)		(0.70	%)
Total expenses		1.44	%		1.47	%		1.45	%		1.38	%		1.37	%
Portfolio turnover rate		284	%		359	%		349	%		305	%		518	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	97.07		$	110.18		$	117.20		$	89.75		$	73.54
Income (loss) from investment operations:
Net investment income (loss)a		(2.22	)		(1.32	)		(1.46	)		(1.01	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		85.13			(7.69	)		9.94			28.46			16.97
Total from investment operations		82.91			(9.01	)		8.48			27.45			16.21
Less distributions from:
Net realized gains		—			(4.10	)		(15.50	)		—			—
Total distributions		—			(4.10	)		(15.50	)		—			—
Net asset value, end of period	$	179.98		$	97.07		$	110.18		$	117.20		$	89.75
Total Returnb		85.41	%		(8.48	%)		9.13	%		30.57	%		22.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,952		$	2,060		$	2,054		$	3,393		$	2,139
Ratios to average net assets:
Net investment income (loss)		(1.45	%)		(1.20	%)		(1.27	%)		(0.96	%)		(0.95	%)
Total expenses		1.69	%		1.73	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		284	%		359	%		349	%		305	%		518	%

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

INTERNET FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	82.90		$	95.40		$	104.40		$	80.55		$	66.49
Income (loss) from investment operations:
Net investment income (loss)a		(2.91	)		(1.96	)		(2.08	)		(1.60	)		(1.24	)
Net gain (loss) on investments (realized and unrealized)		72.57			(6.44	)		8.58			25.45			15.30
Total from investment operations		69.66			(8.40	)		6.50			23.85			14.06
Less distributions from:
Net realized gains		—			(4.10	)		(15.50	)		—			—
Total distributions		—			(4.10	)		(15.50	)		—			—
Net asset value, end of period	$	152.56		$	82.90		$	95.40		$	104.40		$	80.55
Total Returnb		84.03	%		(9.16	%)		8.31	%		29.61	%		21.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,124		$	1,931		$	3,047		$	2,967		$	2,321
Ratios to average net assets:
Net investment income (loss)		(2.21	%)		(2.06	%)		(2.01	%)		(1.70	%)		(1.71	%)
Total expenses		2.43	%		2.47	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		284	%		359	%		349	%		305	%		518	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	93.70		$	106.51		$	113.84		$	87.18		$	71.40
Income (loss) from investment operations:
Net investment income (loss)a		(1.75	)		(1.41	)		(1.51	)		(1.07	)		(.78	)
Net gain (loss) on investments (realized and unrealized)		81.76			(7.30	)		9.68			27.73			16.56
Total from investment operations		80.01			(8.71	)		8.17			26.66			15.78
Less distributions from:
Net realized gains		—			(4.10	)		(15.50	)		—			—
Total distributions		—			(4.10	)		(15.50	)		—			—
Net asset value, end of period	$	173.71		$	93.70		$	106.51		$	113.84		$	87.18
Total Return		85.39	%		(8.49	%)		9.12	%		30.59	%		22.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,067		$	825		$	9,880		$	28,889		$	2,384
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		(1.30	%)		(1.27	%)		(1.04	%)		(1.03	%)
Total expenses		1.76	%		1.71	%		1.70	%		1.63	%		1.62	%
Portfolio turnover rate		284	%		359	%		349	%		305	%		518	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

LEISURE FUND

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

For the one-year period ended March 31, 2021, Leisure Fund Investor Class returned 90.42%, compared with 70.29% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by restaurants, movies & entertainment, and casinos & gaming.

Walt Disney Co., Sea Ltd. ADR, and Comcast Corp. - Class A contributed the most to the Fund’s return for the period. Luckin Coffee, Inc. ADR - Class A and Cable One, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Walt Disney Co.	4.4%
Comcast Corp. — Class A	3.8%
Netflix, Inc.	3.8%
McDonald’s Corp.	3.2%
Charter Communications, Inc. — Class A	3.0%
Philip Morris International, Inc.	2.9%
Starbucks Corp.	2.8%
Altria Group, Inc.	2.4%
Activision Blizzard, Inc.	2.1%
Sea Ltd. ADR	1.7%
Top Ten Total	30.1%
“Ten Largest Holdings” excludes any temporary cash investments.

92 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	90.42%	13.61%	13.62%
A-Class Shares	89.96%	13.33%	13.33%
A-Class Shares with sales charge‡	80.94%	12.23%	12.78%
C-Class Shares	88.52%	12.48%	12.49%
C-Class Shares with CDSC§	87.52%	12.48%	12.49%
H-Class Shares**	89.96%	13.33%	13.22%
S&P 500 Consumer Discretionary Index	70.29%	17.87%	17.50%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 93

SCHEDULE OF INVESTMENTS	March 31, 2021
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Media - 21.0%
Walt Disney Co.*		12,619	$	2,328,458
Comcast Corp. — Class A		37,210		2,013,433
Charter Communications, Inc. — Class A*		2,571		1,586,358
Liberty Broadband Corp. — Class C*		4,628		694,894
DISH Network Corp. — Class A*		15,363		556,141
Fox Corp. — Class A		15,051		543,492
Discovery, Inc. — Class A*,1		11,556		502,224
Altice USA, Inc. — Class A*		15,383		500,409
News Corp. — Class A		18,935		481,517
ViacomCBS, Inc. — Class B		10,399		468,995
Cable One, Inc.		239		436,978
New York Times Co. — Class A		7,625		385,977
Nexstar Media Group, Inc. — Class A		2,168		304,452
World Wrestling Entertainment, Inc. — Class A		4,846		262,944
Total Media				11,066,272
Retail - 17.9%
McDonald’s Corp.		7,516		1,684,636
Starbucks Corp.		13,585		1,484,433
Chipotle Mexican Grill, Inc. — Class A*		573		814,130
Yum! Brands, Inc.		6,834		739,302
Darden Restaurants, Inc.		3,963		562,746
Yum China Holdings, Inc.		8,983		531,883
Domino’s Pizza, Inc.		1,343		493,942
Restaurant Brands International, Inc.		7,258		471,770
Texas Roadhouse, Inc. — Class A*		3,501		335,886
Shake Shack, Inc. — Class A*		2,440		275,159
Wendy’s Co.		13,563		274,786
Cracker Barrel Old Country Store, Inc.		1,538		265,890
Wingstop, Inc.		1,978		251,542
Brinker International, Inc.*		3,210		228,103
Papa John’s International, Inc.		2,534		224,614
Cheesecake Factory, Inc.*		3,598		210,519
Dave & Buster’s Entertainment, Inc.*		4,201		201,228
Jack in the Box, Inc.		1,831		201,007
Bloomin’ Brands, Inc.*		7,336		198,439
Total Retail				9,450,015
Lodging - 11.2%
Marriott International, Inc. — Class A*		5,961		882,884
Las Vegas Sands Corp.*		14,112		857,445
Hilton Worldwide Holdings, Inc.*		6,107		738,459
MGM Resorts International		14,542		552,451
Wynn Resorts Ltd.*		3,793		475,528
Huazhu Group Ltd. ADR*		6,981		383,257
Melco Resorts & Entertainment Ltd. ADR*		19,244		383,148
Hyatt Hotels Corp. — Class A*		4,426		366,030
Wyndham Hotels & Resorts, Inc.		4,785		333,897
Boyd Gaming Corp.*		5,569		328,348
Choice Hotels International, Inc.*		2,904		311,570
Travel + Leisure Co.		4,745		290,204
Total Lodging				5,903,221
Software - 9.6%
Activision Blizzard, Inc.		12,087		1,124,091
Sea Ltd. ADR*		4,118		919,261
Electronic Arts, Inc.		6,155		833,202
NetEase, Inc. ADR		6,411		662,000
Bilibili, Inc. ADR*		5,749		615,488
Take-Two Interactive Software, Inc.*		3,404		601,487
HUYA, Inc. ADR*,1		17,276		336,537
Total Software				5,092,066
Entertainment - 8.6%
DraftKings, Inc. — Class A*		9,963		611,031
Live Nation Entertainment, Inc.*		6,471		547,770
Caesars Entertainment, Inc.*		6,227		544,551
Penn National Gaming, Inc.*		4,853		508,789
Vail Resorts, Inc.*		1,470		428,740
Churchill Downs, Inc.		1,655		376,380
Marriott Vacations Worldwide Corp.*		1,958		341,045
Madison Square Garden Sports Corp. — Class A*		1,444		259,140
SeaWorld Entertainment, Inc.*		5,140		255,304
Six Flags Entertainment Corp.*		5,424		252,053
Scientific Games Corp. — Class A*		6,140		236,513
Cinemark Holdings, Inc.*		9,218		188,139
Total Entertainment				4,549,455
Leisure Time - 8.4%
Peloton Interactive, Inc. — Class A*		6,963		782,920
Carnival Corp.*		25,199		668,781
Royal Caribbean Cruises Ltd.*		6,970		596,702
Norwegian Cruise Line Holdings Ltd.*,1		14,657		404,387
Polaris, Inc.		2,789		372,331
Brunswick Corp.		3,621		345,335
Harley-Davidson, Inc.		8,469		339,607
Planet Fitness, Inc. — Class A*		4,262		329,452
YETI Holdings, Inc.*		4,489		324,151
Callaway Golf Co.		10,318		276,006
Total Leisure Time				4,439,672
Internet - 8.2%
Netflix, Inc.*		3,851		2,008,913
Roku, Inc.*		2,523		821,918
Spotify Technology S.A.*		2,635		706,048
Tencent Music Entertainment Group ADR*		22,642		463,934
iQIYI, Inc. ADR*		20,711		344,217
Total Internet				4,345,030
Beverages - 6.4%
Constellation Brands, Inc. — Class A		3,778		861,384
Brown-Forman Corp. — Class B		10,557		728,116
Boston Beer Company, Inc. — Class A*		452		545,239
Molson Coors Beverage Co. — Class B*		8,681		444,033
Anheuser-Busch InBev S.A. ADR		6,892		433,162
Diageo plc ADR		2,335		383,430
Total Beverages				3,395,364

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LEISURE FUND

	Shares		Value
Agriculture - 6.0%
Philip Morris International, Inc.		17,038	$	1,511,952
Altria Group, Inc.		24,910		1,274,396
British American Tobacco plc ADR		10,177		394,257
Total Agriculture				3,180,605
Toys, Games & Hobbies - 1.5%
Hasbro, Inc.		4,931		473,968
Mattel, Inc.*		16,819		335,034
Total Toys, Games & Hobbies				809,002
Food Service - 0.8%
Aramark		10,318		389,814
Total Common Stocks
(Cost $43,408,392)				52,620,516
RIGHTS††† - 0.0%
Media - 0.0%
Nexstar Media Group, Inc.*		8,160		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	158,082		158,082
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		71,872		71,872
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		65,594		65,594
Total Repurchase Agreements
(Cost $295,548)				295,548
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.7%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		883,846		883,846
Total Securities Lending Collateral
(Cost $883,846)				883,846
Total Investments - 101.9%
(Cost $44,587,786)			$	53,799,910
Other Assets & Liabilities, net - (1.9)%				(977,941	)
Total Net Assets - 100.0%			$	52,821,969

*	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 a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
LEISURE FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	52,620,516	$	—	$	—		$	52,620,516
Rights		—		—		—	*		—
Repurchase Agreements		—		295,548		—			295,548
Securities Lending Collateral		883,846		—		—			883,846
Total Assets	$	53,504,362	$	295,548	$	—		$	53,799,910

* Security has a market value of $0.

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $866,939 of securities loaned (cost $44,292,238)	$	53,504,362
Repurchase agreements, at value (cost $295,548)		295,548
Cash		93
Receivables:
Dividends		64,238
Fund shares sold		57,424
Securities lending income		805
Total assets		53,922,470
Liabilities:
Payable for:
Return of securities lending collateral		883,846
Fund shares redeemed		106,386
Management fees		36,769
Transfer agent and administrative fees		11,636
Portfolio accounting fees		4,326
Distribution and service fees		2,419
Trustees’ fees*		776
Miscellaneous		54,343
Total liabilities		1,100,501
Commitments and contingent liabilities (Note 10)		—
Net assets	$	52,821,969
Net assets consist of:
Paid in capital	$	43,615,666
Total distributable earnings (loss)		9,206,303
Net assets	$	52,821,969
Investor Class:
Net assets	$	40,995,319
Capital shares outstanding		406,128
Net asset value per share	$	100.94
A-Class:
Net assets	$	4,290,760
Capital shares outstanding		46,660
Net asset value per share	$	91.96
Maximum offering price per share (Net asset value divided by 95.25%)	$	96.55
C-Class:
Net assets	$	941,658
Capital shares outstanding		11,769
Net asset value per share	$	80.01
H-Class:
Net assets	$	6,594,232
Capital shares outstanding		73,845
Net asset value per share	$	89.30

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $1,474)	$	209,211
Interest		53
Income from securities lending, net		4,526
Total investment income		213,790
Expenses:
Management fees		173,751
Distribution and service fees:
A-Class		5,668
C-Class		7,232
H-Class		4,432
Transfer agent and administrative fees		56,189
Portfolio accounting fees		20,444
Professional fees		5,945
Custodian fees		2,924
Trustees’ fees*		2,085
Line of credit fees		12
Miscellaneous		27,863
Total expenses		306,545
Net investment loss		(92,755	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,161,961
Net realized gain		1,161,961
Net change in unrealized appreciation (depreciation) on:
Investments		9,340,921
Net change in unrealized appreciation (depreciation)		9,340,921
Net realized and unrealized gain		10,502,882
Net increase in net assets resulting from operations	$	10,410,127

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(92,755	)	$	8,139
Net realized gain on investments		1,161,961			2,615,962
Net change in unrealized appreciation (depreciation) on investments		9,340,921			(4,127,911	)
Net increase (decrease) in net assets resulting from operations		10,410,127			(1,503,810	)
Distributions to shareholders:
Investor Class		—			(32,961	)
A-Class		—			(2,491	)
C-Class		—			(1,724	)
H-Class		—			(3,983	)
Total distributions to shareholders		—			(41,159	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		59,053,794			42,468,953
A-Class		3,714,091			2,130,439
C-Class		440,559			73,859
H-Class		5,697,588			14,647,439
Distributions reinvested
Investor Class		—			32,394
A-Class		—			2,404
C-Class		—			1,724
H-Class		—			3,946
Cost of shares redeemed
Investor Class		(28,790,117	)		(50,743,318	)
A-Class		(1,430,431	)		(2,347,132	)
C-Class		(322,704	)		(372,260	)
H-Class		(980,605	)		(14,108,477	)
Net increase (decrease) from capital share transactions		37,382,175			(8,210,029	)
Net increase (decrease) in net assets		47,792,302			(9,754,998	)
Net assets:
Beginning of year		5,029,667			14,784,665
End of year	$	52,821,969		$	5,029,667
Capital share activity:
Shares sold
Investor Class		743,762			587,907
A-Class		48,208			33,729
C-Class		7,182			1,552
H-Class		67,082			226,956
Shares issued from reinvestment of distributions
Investor Class		—			440
A-Class		—			36
C-Class		—			29
H-Class		—			60
Shares redeemed
Investor Class		(391,183	)		(704,990	)
A-Class		(18,411	)		(35,774	)
C-Class		(4,799	)		(6,497	)
H-Class		(14,000	)		(223,449	)
Net increase (decrease) in shares		437,841			(120,001	)

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

LEISURE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	53.01		$	68.98		$	71.23		$	70.95		$	61.36
Income (loss) from investment operations:
Net investment income (loss)a		(.34	)		.08			.32			.36			.52
Net gain (loss) on investments (realized and unrealized)		48.27			(15.86	)		2.18			4.48			9.38
Total from investment operations		47.93			(15.78	)		2.50			4.84			9.90
Less distributions from:
Net investment income		—			(.19	)		(.52	)		(1.64	)		(.31	)
Net realized gains		—			—			(4.23	)		(2.92	)		—
Total distributions		—			(.19	)		(4.75	)		(4.56	)		(.31	)
Net asset value, end of period	$	100.94		$	53.01		$	68.98		$	71.23		$	70.95
Total Return		90.42	%		(22.96	%)		4.06	%		6.71	%		16.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	40,995		$	2,839		$	11,739		$	14,625		$	14,413
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		0.11	%		0.45	%		0.49	%		0.81	%
Total expenses		1.41	%		1.48	%		1.46	%		1.38	%		1.38	%
Portfolio turnover rate		144	%		369	%		323	%		442	%		352	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	48.41		$	63.17		$	65.82		$	66.03		$	57.27
Income (loss) from investment operations:
Net investment income (loss)a		(.41	)		.01			.11			.17			.23
Net gain (loss) on investments (realized and unrealized)		43.96			(14.58	)		1.99			4.18			8.84
Total from investment operations		43.55			(14.57	)		2.10			4.35			9.07
Less distributions from:
Net investment income		—			(.19	)		(.52	)		(1.64	)		(.31	)
Net realized gains		—			—			(4.23	)		(2.92	)		—
Total distributions		—			(.19	)		(4.75	)		(4.56	)		(.31	)
Net asset value, end of period	$	91.96		$	48.41		$	63.17		$	65.82		$	66.03
Total Returnb		89.96	%		(23.15	%)		3.79	%		6.46	%		15.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,291		$	816		$	1,192		$	3,371		$	2,180
Ratios to average net assets:
Net investment income (loss)		(0.56	%)		0.02	%		0.17	%		0.24	%		0.40	%
Total expenses		1.68	%		1.73	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		144	%		369	%		323	%		442	%		352	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	42.44		$	55.82		$	59.16		$	60.23		$	52.65
Income (loss) from investment operations:
Net investment income (loss)a		(.87	)		(.42	)		(.32	)		(.36	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		38.44			(12.77	)		1.73			3.85			8.07
Total from investment operations		37.57			(13.19	)		1.41			3.49			7.89
Less distributions from:
Net investment income		—			(.19	)		(.52	)		(1.64	)		(.31	)
Net realized gains		—			—			(4.23	)		(2.92	)		—
Total distributions		—			(.19	)		(4.75	)		(4.56	)		(.31	)
Net asset value, end of period	$	80.01		$	42.44		$	55.82		$	59.16		$	60.23
Total Returnb		88.52	%		(23.73	%)		3.03	%		5.66	%		15.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	942		$	398		$	798		$	1,311		$	1,327
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(0.74	%)		(0.56	%)		(0.58	%)		(0.33	%)
Total expenses		2.44	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		144	%		369	%		323	%		442	%		352	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	47.01		$	61.36		$	64.06		$	64.38		$	55.85
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		(.01	)		(.29	)		.07			.20
Net gain (loss) on investments (realized and unrealized)		42.69			(14.15	)		2.34			4.17			8.64
Total from investment operations		42.29			(14.16	)		2.05			4.24			8.84
Less distributions from:
Net investment income		—			(.19	)		(.52	)		(1.64	)		(.31	)
Net realized gains		—			—			(4.23	)		(2.92	)		—
Total distributions		—			(.19	)		(4.75	)		(4.56	)		(.31	)
Net asset value, end of period	$	89.30		$	47.01		$	61.36		$	64.06		$	64.38
Total Return		89.96	%		(23.17	%)		3.81	%		6.45	%		15.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,594		$	976		$	1,055		$	1,910		$	3,769
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		(0.01	%)		(0.45	%)		0.10	%		0.34	%
Total expenses		1.68	%		1.72	%		1.69	%		1.63	%		1.63	%
Portfolio turnover rate		144	%		369	%		323	%		442	%		352	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

PRECIOUS METALS FUND

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

For the one-year period ended March 31, 2021, Precious Metals Fund Investor Class returned 68.71%, compared with 78.29% for the S&P 500 Materials Index. The broader S&P 500 Index returned 56.35%.

The gold industry was the leading contributor to return, followed by the silver and copper industries. Precious metals & minerals segment was the only detractor from return.

Freeport-McMoRan, Inc., Newmont Corp., and Sibanye Stillwater Ltd. ADR contributed the most to the Fund’s return for the period. Equinox Gold Corp., New Gold, Inc., and SilverCrest Metals, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Newmont Corp.	7.9%
Freeport-McMoRan, Inc.	7.7%
Barrick Gold Corp.	6.7%
Franco-Nevada Corp.	5.7%
Wheaton Precious Metals Corp.	4.7%
Agnico Eagle Mines Ltd.	4.2%
Sibanye Stillwater Ltd. ADR	4.1%
VanEck Vectors Junior Gold Miners ETF	3.9%
AngloGold Ashanti Ltd. ADR	3.5%
Kirkland Lake Gold Ltd.	3.4%
Top Ten Total	51.8%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 101

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	68.71%	13.24%	(4.44%)
A-Class Shares	68.28%	12.95%	(4.69%)
A-Class Shares with sales charge‡	60.31%	11.85%	(5.15%)
C-Class Shares	67.04%	12.11%	(5.39%)
C-Class Shares with CDSC§	66.04%	12.11%	(5.39%)
H-Class Shares**	68.30%	12.93%	(4.80%)
S&P 500 Materials Index	78.29%	14.31%	9.46%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and 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.
‡	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.

102 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.6%
Mining - 95.6%
Newmont Corp.		144,743	$	8,723,661
Freeport-McMoRan, Inc.		258,925		8,526,400
Barrick Gold Corp.		372,547		7,376,431
Franco-Nevada Corp.		50,204		6,290,059
Wheaton Precious Metals Corp.		136,261		5,206,533
Agnico Eagle Mines Ltd.		81,205		4,694,461
Sibanye Stillwater Ltd. ADR		251,197		4,486,378
AngloGold Ashanti Ltd. ADR		176,645		3,880,891
Kirkland Lake Gold Ltd.		112,613		3,806,319
Gold Fields Ltd. ADR		384,985		3,653,508
Kinross Gold Corp.		547,280		3,650,358
Royal Gold, Inc.		31,785		3,420,702
Pan American Silver Corp.		101,149		3,037,504
B2Gold Corp.		609,290		2,626,040
Yamana Gold, Inc.		589,342		2,557,744
First Majestic Silver Corp.*,1		145,987		2,274,477
Alamos Gold, Inc. — Class A		280,805		2,193,087
SSR Mining, Inc.		152,221		2,173,716
Novagold Resources, Inc.*		242,140		2,121,146
Hecla Mining Co.		362,250		2,061,202
Harmony Gold Mining Company Ltd. ADR*,1		472,110		2,058,400
Coeur Mining, Inc.*		199,438		1,800,925
Equinox Gold Corp.*		218,409		1,745,088
Pretium Resources, Inc.*		167,323		1,735,140
Osisko Gold Royalties Ltd.		154,726		1,705,081
Eldorado Gold Corp.*		154,899		1,671,360
MAG Silver Corp.*		97,344		1,461,133
IAMGOLD Corp.*		489,477		1,458,641
Sandstorm Gold Ltd.*,1		210,709		1,432,821
SilverCrest Metals, Inc.*		168,260		1,359,541
Seabridge Gold, Inc.*		82,246		1,329,918
Fortuna Silver Mines, Inc.*,1		202,822		1,312,258
New Gold, Inc.*		793,383		1,221,810
Silvercorp Metals, Inc.1		231,866		1,138,462
Endeavour Silver Corp.*		208,337		1,033,352
Gold Resource Corp.		208,047		549,244
Total Mining				105,773,791
Total Common Stocks
(Cost $67,209,252)				105,773,791
EXCHANGE-TRADED FUNDS† - 3.9%
VanEck Vectors Junior Gold Miners ETF		97,114		4,371,101
Total Exchange-Traded Funds
(Cost $3,315,586)				4,371,101
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	391,895		391,895
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		178,174		178,174
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		162,612		162,612
Total Repurchase Agreements
(Cost $732,681)				732,681
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		2,325,137		2,325,137
Total Securities Lending Collateral
(Cost $2,325,137)				2,325,137
Total Investments - 102.3%
(Cost $73,582,656)			$	113,202,710
Other Assets & Liabilities, net - (2.3)%				(2,514,080	)
Total Net Assets - 100.0%			$	110,688,630

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
PRECIOUS METALS FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	105,773,791	$	—	$	—	$	105,773,791
Exchange-Traded Funds		4,371,101		—		—		4,371,101
Repurchase Agreements		—		732,681		—		732,681
Securities Lending Collateral		2,325,137		—		—		2,325,137
Total Assets	$	112,470,029	$	732,681	$	—	$	113,202,710

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $2,346,682 of securities loaned (cost $72,849,975)	$	112,470,029
Repurchase agreements, at value (cost $732,681)		732,681
Cash		11,333
Receivables:
Securities sold		925,294
Dividends		320,750
Fund shares sold		227,514
Foreign tax reclaims		23,180
Securities lending income		5,377
Total assets		114,716,158
Liabilities:
Payable for:
Return of securities lending collateral		2,325,137
Fund shares redeemed		1,188,965
Deferred foreign capital gain taxes		276,532
Management fees		71,454
Transfer agent and administrative fees		25,628
Portfolio accounting fees		9,527
Distribution and service fees		6,466
Trustees’ fees*		1,743
Miscellaneous		122,076
Total liabilities		4,027,528
Commitments and contingent liabilities (Note 10)		—
Net assets	$	110,688,630
Net assets consist of:
Paid in capital	$	130,150,605
Total distributable earnings (loss)		(19,461,975	)
Net assets	$	110,688,630
Investor Class:
Net assets	$	87,173,578
Capital shares outstanding		1,971,486
Net asset value per share	$	44.22
A-Class:
Net assets	$	18,800,711
Capital shares outstanding		449,602
Net asset value per share	$	41.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	43.91
C-Class:
Net assets	$	2,086,440
Capital shares outstanding		59,852
Net asset value per share	$	34.86
H-Class:
Net assets	$	2,627,901
Capital shares outstanding		65,035
Net asset value per share	$	40.41

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $169,905)	$	1,308,810
Interest		503
Income from securities lending, net		38,736
Total investment income		1,348,049
Expenses:
Management fees		842,684
Distribution and service fees:
A-Class		45,415
C-Class		24,349
H-Class		9,824
Transfer agent and administrative fees		314,160
Portfolio accounting fees		112,373
Registration fees		109,961
Professional fees		57,348
Trustees’ fees*		21,961
Custodian fees		16,322
Line of credit fees		106
Miscellaneous		29,923
Total expenses		1,584,426
Net investment loss		(236,377	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,223,649
Foreign currency transactions		(13	)
Net realized gain		6,223,636
Net change in unrealized appreciation (depreciation) on:
Investments		30,242,553
Net change in unrealized appreciation (depreciation)		30,242,553
Net realized and unrealized gain		36,466,189
Net increase in net assets resulting from operations	$	36,229,812

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(236,377	)	$	(401,880	)
Net realized gain on investments		6,223,636			395,134
Net change in unrealized appreciation (depreciation) on investments		30,242,553			(1,122,240	)
Net increase (decrease) in net assets resulting from operations		36,229,812			(1,128,986	)
Distributions to shareholders:
Investor Class		(1,200,774	)		(1,495,304	)
A-Class		(206,906	)		(408,150	)
C-Class		(35,529	)		(74,684	)
H-Class		(36,834	)		(76,974	)
Total distributions to shareholders		(1,480,043	)		(2,055,112	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		482,894,542			345,983,213
A-Class		6,970,513			5,044,797
C-Class		3,134,511			2,843,601
H-Class		6,011,134			27,234,035
Distributions reinvested
Investor Class		1,180,105			1,474,406
A-Class		203,578			401,562
C-Class		35,407			73,474
H-Class		36,758			76,042
Cost of shares redeemed
Investor Class		(467,241,477	)		(331,255,162	)
A-Class		(9,178,031	)		(7,292,781	)
C-Class		(3,852,490	)		(3,692,608	)
H-Class		(6,727,483	)		(28,223,011	)
Net increase from capital share transactions		13,467,067			12,667,568
Net increase in net assets		48,216,836			9,483,470
Net assets:
Beginning of year		62,471,794			52,988,324
End of year	$	110,688,630		$	62,471,794
Capital share activity:
Shares sold
Investor Class		10,711,760			11,365,343
A-Class		163,822			183,721
C-Class		86,046			115,029
H-Class		152,479			1,041,882
Shares issued from reinvestment of distributions
Investor Class		25,806			44,117
A-Class		4,704			12,660
C-Class		979			2,746
H-Class		879			2,479
Shares redeemed
Investor Class		(10,507,387	)		(10,958,332	)
A-Class		(228,144	)		(258,645	)
C-Class		(106,823	)		(151,938	)
H-Class		(163,616	)		(1,078,358	)
Net increase in shares		140,505			320,704

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	26.50		$	26.14		$	27.07		$	30.82		$	27.37
Income (loss) from investment operations:
Net investment income (loss)a		(.06	)		(.12	)		(.12	)		(.17	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		18.28			1.23	d		(.48	)		(1.96	)		4.85
Total from investment operations		18.22			1.11			(.60	)		(2.13	)		4.62
Less distributions from:
Net investment income		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Total distributions		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Net asset value, end of period	$	44.22		$	26.50		$	26.14		$	27.07		$	30.82
Total Return		68.71	%		3.65	%		(2.08	%)		(6.98	%)		16.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	87,174		$	46,153		$	33,724		$	33,968		$	43,530
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		(0.40	%)		(0.47	%)		(0.57	%)		(0.67	%)
Total expensesb		1.34	%		1.38	%		1.39	%		1.28	%		1.27	%
Portfolio turnover rate		281	%		277	%		571	%		630	%		508	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	25.14		$	24.89		$	25.85		$	29.59		$	26.39
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.19	)		(.17	)		(.22	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		17.35			1.19	d		(.46	)		(1.90	)		4.64
Total from investment operations		17.18			1.00			(.63	)		(2.12	)		4.37
Less distributions from:
Net investment income		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Total distributions		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Net asset value, end of period	$	41.82		$	25.14		$	24.89		$	25.85		$	29.59
Total Returnc		68.28	%		3.39	%		(2.30	%)		(7.24	%)		16.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,801		$	12,803		$	14,222		$	12,781		$	12,085
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.67	%)		(0.73	%)		(0.79	%)		(0.82	%)
Total expensesb		1.59	%		1.63	%		1.64	%		1.53	%		1.52	%
Portfolio turnover rate		281	%		277	%		571	%		630	%		508	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	21.16		$	21.19		$	22.24		$	25.89		$	23.38
Income (loss) from investment operations:
Net investment income (loss)a		(.43	)		(.35	)		(.32	)		(.39	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		14.63			1.07	d		(.40	)		(1.64	)		4.14
Total from investment operations		14.20			.72			(.72	)		(2.03	)		3.68
Less distributions from:
Net investment income		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Total distributions		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Net asset value, end of period	$	34.86		$	21.16		$	21.19		$	22.24		$	25.89
Total Returnc		67.04	%		2.65	%		(3.08	%)		(7.95	%)		15.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,086		$	1,686		$	2,412		$	6,697		$	7,607
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(1.41	%)		(1.53	%)		(1.56	%)		(1.59	%)
Total expensesb		2.35	%		2.38	%		2.37	%		2.28	%		2.27	%
Portfolio turnover rate		281	%		277	%		571	%		630	%		508	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	24.30		$	24.06		$	25.02		$	28.73		$	25.64
Income (loss) from investment operations:
Net investment income (loss)a		(.25	)		(.22	)		(.18	)		(.25	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		16.86			1.21	d		(.45	)		(1.84	)		4.57
Total from investment operations		16.61			.99			(.63	)		(2.09	)		4.26
Less distributions from:
Net investment income		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Total distributions		(.50	)		(.75	)		(.33	)		(1.62	)		(1.17	)
Net asset value, end of period	$	40.41		$	24.30		$	24.06		$	25.02		$	28.73
Total Return		68.30	%		3.46	%		(2.33	%)		(7.36	%)		16.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,628		$	1,830		$	2,630		$	2,239		$	2,954
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.78	%)		(0.78	%)		(0.92	%)		(0.94	%)
Total expensesb		1.60	%		1.63	%		1.63	%		1.53	%		1.52	%
Portfolio turnover rate		281	%		277	%		571	%		630	%		508	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Total return does not reflect the impact of any applicable sales charges.
d	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

REAL ESTATE FUND

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

For the one-year period ended March 31, 2021, Real Estate Fund H-Class returned 45.83%, compared with 37.69% for the MSCI U.S. REIT Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by specialized REITs, retail REITs, and residential REITs.

Simon Property Group, Inc., Prologis, Inc., and Weyerhaeuser Co. contributed the most to the Fund’s return for the period. Opendoor Technologies, Inc., eXp World Holdings, Inc., and Hannon Armstrong Sustainable Infrastructure Capital, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
American Tower Corp. — Class A	3.3%
Prologis, Inc.	2.8%
Crown Castle International Corp.	2.7%
Equinix, Inc.	2.5%
Public Storage	2.0%
Digital Realty Trust, Inc.	2.0%
Simon Property Group, Inc.	1.8%
SBA Communications Corp.	1.7%
Welltower, Inc.	1.7%
Weyerhaeuser Co.	1.6%
Top Ten Total	22.1%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 109

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	45.79%	5.62%	6.43%
A-Class Shares with sales charge‡	38.87%	4.60%	5.92%
C-Class Shares	44.71%	4.83%	5.62%
C-Class Shares with CDSC§	43.71%	4.83%	5.62%
H-Class Shares	45.83%	5.64%	6.43%
MSCI U.S. REIT Index	37.69%	5.32%	8.53%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and 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 Investor Class shares and A-Class shares only; performance for C-Class and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

110 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
REITs - 93.2%
REITs-Diversified - 25.6%
American Tower Corp. — Class A		1,671	$	399,469
Crown Castle International Corp.		1,899		326,875
Equinix, Inc.		441		299,699
Digital Realty Trust, Inc.		1,724		242,808
SBA Communications Corp.		761		211,216
Weyerhaeuser Co.		5,461		194,412
VICI Properties, Inc.		5,581		157,607
Duke Realty Corp.		3,520		147,594
WP Carey, Inc.		1,865		131,967
Gaming and Leisure Properties, Inc.		2,740		116,258
Lamar Advertising Co. — Class A		1,205		113,174
Vornado Realty Trust		2,336		106,031
CoreSite Realty Corp.		770		92,284
New Residential Investment Corp.		7,200		81,000
PS Business Parks, Inc.		495		76,517
National Storage Affiliates Trust		1,864		74,430
PotlatchDeltic Corp.		1,332		70,489
EPR Properties		1,460		68,021
National Health Investors, Inc.		911		65,847
Outfront Media, Inc.*		2,955		64,508
Uniti Group, Inc.		5,335		58,845
Total REITs-Diversified				3,099,051
REITs-Apartments - 11.6%
Equity Residential		2,639		189,032
AvalonBay Communities, Inc.		1,014		187,093
Invitation Homes, Inc.		5,008		160,206
Essex Property Trust, Inc.		558		151,687
Mid-America Apartment Communities, Inc.		1,043		150,567
UDR, Inc.		3,018		132,369
Camden Property Trust		1,115		122,550
American Homes 4 Rent — Class A		3,669		122,324
Apartment Income REIT Corp.		2,136		91,335
American Campus Communities, Inc.		2,094		90,398
Total REITs-Apartments				1,397,561
REITs-Office Property - 10.7%
Alexandria Real Estate Equities, Inc.		1,075		176,622
Boston Properties, Inc.		1,435		145,308
VEREIT, Inc.		2,840		109,681
Kilroy Realty Corp.		1,528		100,283
Cousins Properties, Inc.		2,397		84,734
Douglas Emmett, Inc.		2,660		83,524
SL Green Realty Corp.		1,144		80,069
Highwoods Properties, Inc.		1,813		77,850
JBG SMITH Properties		2,361		75,056
Hudson Pacific Properties, Inc.		2,724		73,902
Equity Commonwealth		2,435		67,693
Lexington Realty Trust		5,813		64,582
Corporate Office Properties Trust		2,360		62,139
Brandywine Realty Trust		4,162		53,731
Piedmont Office Realty Trust, Inc. — Class A		3,062		53,187
Total REITs-Office Property				1,308,361
REITs-Warehouse/Industries - 9.4%
Prologis, Inc.		3,160		334,960
Americold Realty Trust		3,031		116,603
CyrusOne, Inc.		1,587		107,472
Rexford Industrial Realty, Inc.		1,917		96,617
First Industrial Realty Trust, Inc.		1,968		90,115
EastGroup Properties, Inc.		628		89,980
STAG Industrial, Inc.		2,557		85,941
Innovative Industrial Properties, Inc.		429		77,289
QTS Realty Trust, Inc. — Class A		1,206		74,820
Terreno Realty Corp.		1,291		74,581
Total REITs-Warehouse/Industries				1,148,378
REITs-Health Care - 8.8%
Welltower, Inc.		2,832		202,856
Ventas, Inc.		3,059		163,167
Healthpeak Properties, Inc.		4,808		152,606
Medical Properties Trust, Inc.		6,125		130,340
Omega Healthcare Investors, Inc.		2,931		107,363
Healthcare Trust of America, Inc. — Class A		3,266		90,076
Healthcare Realty Trust, Inc.		2,509		76,073
Physicians Realty Trust		3,972		70,185
Sabra Health Care REIT, Inc.		4,000		69,440
Total REITs-Health Care				1,062,106
REITs-Storage - 5.9%
Public Storage		1,004		247,747
Extra Space Storage, Inc.		1,196		158,530
Iron Mountain, Inc.		3,335		123,428
CubeSmart		2,685		101,574
Life Storage, Inc.		1,097		94,287
Total REITs-Storage				725,566
REITs-Hotels - 4.8%
MGM Growth Properties LLC — Class A		3,827		124,837
Host Hotels & Resorts, Inc.*		7,350		123,848
Park Hotels & Resorts, Inc.*		3,738		80,666
Ryman Hospitality Properties, Inc.*		982		76,115
Pebblebrook Hotel Trust		2,672		64,903
Apple Hospitality REIT, Inc.		4,446		64,778
Sunstone Hotel Investors, Inc.*		4,735		58,998
Total REITs-Hotels				594,145
REITs-Single Tenant - 4.6%
Realty Income Corp.		2,849		180,912
STORE Capital Corp.		3,309		110,852
National Retail Properties, Inc.		2,355		103,785
Spirit Realty Capital, Inc.		1,928		81,940
Agree Realty Corp.		1,140		76,733
Total REITs-Single Tenant				554,222
REITs-Shopping Centers - 4.4%
Regency Centers Corp.		2,022		114,668
Kimco Realty Corp.		5,584		104,700
Federal Realty Investment Trust		1,025		103,986
Brixmor Property Group, Inc.		4,436		89,740

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
REAL ESTATE FUND

	Shares		Value
Weingarten Realty Investors		2,539	$	68,324
Retail Opportunity Investments Corp.		3,120		49,514
Total REITs-Shopping Centers				530,932
REITs-Mortgage - 2.9%
AGNC Investment Corp.		6,655		111,538
Starwood Property Trust, Inc.		3,969		98,193
Blackstone Mortgage Trust, Inc. — Class A		2,535		78,585
Chimera Investment Corp.		5,006		63,576
Total REITs-Mortgage				351,892
REITs-Manufactured Homes - 2.3%
Sun Communities, Inc.		1,032		154,841
Equity LifeStyle Properties, Inc.		1,977		125,816
Total REITs-Manufactured Homes				280,657
REITs-Regional Malls - 2.2%
Simon Property Group, Inc.		1,966		223,672
Macerich Co.1		3,996		46,753
Total REITs-Regional Malls				270,425
Total REITs				11,323,296
Real Estate - 4.7%
Real Estate Management/Services - 4.0%
CBRE Group, Inc. — Class A*		2,432		192,396
Jones Lang LaSalle, Inc.*		628		112,437
Redfin Corp.*		1,432		95,357
eXp World Holdings, Inc.*		2,010		91,555
Total Real Estate Management/Services				491,745
Real Estate Operations/Development - 0.7%
Howard Hughes Corp.*		891		84,761
Total Real Estate				576,506
Internet - 0.9%
Opendoor Technologies, Inc.*		5,440		115,273
Diversified Financial Services - 0.7%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		1,438	$	80,672
Total Common Stocks
(Cost $10,596,884)				12,095,747
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	23,977		23,977
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		10,901		10,901
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		9,949		9,949
Total Repurchase Agreements
(Cost $44,827)				44,827
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		32,671		32,671
Total Securities Lending Collateral
(Cost $32,671)				32,671
Total Investments - 100.2%
(Cost $10,674,382)			$	12,173,245
Other Assets & Liabilities, net - (0.2)%				(23,145	)
Total Net Assets - 100.0%			$	12,150,100

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
REAL ESTATE FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	12,095,747	$	—	$	—	$	12,095,747
Repurchase Agreements		—		44,827		—		44,827
Securities Lending Collateral		32,671		—		—		32,671
Total Assets	$	12,128,418	$	44,827	$	—	$	12,173,245

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $31,204 of securities loaned (cost $10,629,555)	$	12,128,418
Repurchase agreements, at value (cost $44,827)		44,827
Receivables:
Fund shares sold		47,134
Dividends		47,077
Securities lending income		22
Total assets		12,267,478
Liabilities:
Payable for:
Fund shares redeemed		54,534
Return of securities lending collateral		32,671
Management fees		9,191
Transfer agent and administrative fees		2,909
Distribution and service fees		2,841
Portfolio accounting fees		1,081
Trustees’ fees*		199
Miscellaneous		13,952
Total liabilities		117,378
Commitments and contingent liabilities (Note 10)		—
Net assets	$	12,150,100
Net assets consist of:
Paid in capital	$	17,880,112
Total distributable earnings (loss)		(5,730,012	)
Net assets	$	12,150,100
A-Class:
Net assets	$	1,049,078
Capital shares outstanding		25,669
Net asset value per share	$	40.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	42.91
C-Class:
Net assets	$	194,421
Capital shares outstanding		5,645
Net asset value per share	$	34.44
H-Class:
Net assets	$	10,906,601
Capital shares outstanding		267,460
Net asset value per share	$	40.78

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	116,711
Interest		13
Income from securities lending, net		1,262
Total investment income		117,986
Expenses:
Management fees		43,389
Distribution and service fees:
A-Class		1,694
C-Class		2,675
H-Class		10,399
Transfer agent and administrative fees		14,326
Portfolio accounting fees		5,105
Professional fees		2,882
Trustees’ fees*		1,192
Custodian fees		741
Line of credit fees		20
Miscellaneous		4,742
Total expenses		87,165
Net investment income		30,821
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(748,419	)
Net realized loss		(748,419	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,922,770
Net change in unrealized appreciation (depreciation)		1,922,770
Net realized and unrealized gain		1,174,351
Net increase in net assets resulting from operations	$	1,205,172

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

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

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	30,821		$	302,126
Net realized gain (loss) on investments		(748,419	)		1,681,715
Net change in unrealized appreciation (depreciation) on investments		1,922,770			(2,946,772	)
Net increase (decrease) in net assets resulting from operations		1,205,172			(962,931	)
Distributions to shareholders:
A-Class		(50,366	)		(17,317	)
C-Class		(24,613	)		(21,349	)
H-Class		(186,432	)		(210,026	)
Total distributions to shareholders		(261,411	)		(248,692	)
Capital share transactions:
Proceeds from sale of shares
A-Class		504,083			1,220,926
C-Class		967,844			3,584,439
H-Class		34,310,786			147,081,645
Distributions reinvested
A-Class		48,806			16,981
C-Class		24,496			21,107
H-Class		174,245			206,460
Cost of shares redeemed
A-Class		(499,509	)		(853,685	)
C-Class		(1,309,690	)		(3,697,102	)
H-Class		(26,510,129	)		(162,669,284	)
Net increase (decrease) from capital share transactions		7,710,932			(15,088,513	)
Net increase (decrease) in net assets		8,654,693			(16,300,136	)
Net assets:
Beginning of year		3,495,407			19,795,543
End of year	$	12,150,100		$	3,495,407
Capital share activity:
Shares sold
A-Class		12,731			29,793
C-Class		30,808			97,673
H-Class		917,563			3,500,708
Shares issued from reinvestment of distributions
A-Class		1,334			399
C-Class		793			573
H-Class		4,775			4,858
Shares redeemed
A-Class		(13,846	)		(20,691	)
C-Class		(42,183	)		(101,540	)
H-Class		(729,458	)		(3,879,104	)
Net increase (decrease) in shares		182,517			(367,331	)

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.70		$	41.24		$	35.92		$	37.55		$	37.31
Income (loss) from investment operations:
Net investment income (loss)a		.32			.56			.46			.65			.34
Net gain (loss) on investments (realized and unrealized)		13.33			(10.37	)		5.12	c		(2.08	)		2.15
Total from investment operations		13.65			(9.81	)		5.58			(1.43	)		2.49
Less distributions from:
Net investment income		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Total distributions		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Net asset value, end of period	$	40.87		$	30.70		$	41.24		$	35.92		$	37.55
Total Returnb		45.79	%		(24.28	%)		15.58	%		(3.85	%)		7.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,049		$	781		$	658		$	486		$	1,762
Ratios to average net assets:
Net investment income (loss)		0.87	%		1.33	%		1.18	%		1.69	%		0.89	%
Total expenses		1.70	%		1.72	%		1.72	%		1.63	%		1.63	%
Portfolio turnover rate		499	%		539	%		877	%		1,010	%		1,060	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	26.48		$	35.94		$	31.57		$	33.28		$	33.56
Income (loss) from investment operations:
Net investment income (loss)a		(.03	)		.26			.31			.29			.19
Net gain (loss) on investments (realized and unrealized)		11.47			(8.99	)		4.32	c		(1.80	)		1.78
Total from investment operations		11.44			(8.73	)		4.63			(1.51	)		1.97
Less distributions from:
Net investment income		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Total distributions		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Net asset value, end of period	$	34.44		$	26.48		$	35.94		$	31.57		$	33.28
Total Returnb		44.71	%		(24.86	%)		14.72	%		(4.56	%)		6.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	194		$	430		$	702		$	993		$	999
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		0.71	%		0.94	%		0.86	%		0.56	%
Total expenses		2.45	%		2.47	%		2.46	%		2.38	%		2.38	%
Portfolio turnover rate		499	%		539	%		877	%		1,010	%		1,060	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.63		$	41.14		$	35.82		$	37.45		$	37.21
Income (loss) from investment operations:
Net investment income (loss)a		.23			.55			.65			.92			.27
Net gain (loss) on investments (realized and unrealized)		13.40			(10.33	)		4.93	c		(2.35	)		2.22
Total from investment operations		13.63			(9.78	)		5.58			(1.43	)		2.49
Less distributions from:
Net investment income		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Total distributions		(3.48	)		(.73	)		(.26	)		(.20	)		(2.25	)
Net asset value, end of period	$	40.78		$	30.63		$	41.14		$	35.82		$	37.45
Total Return		45.83	%		(24.27	%)		15.63	%		(3.86	%)		7.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,907		$	2,284		$	18,436		$	8,800		$	6,322
Ratios to average net assets:
Net investment income (loss)		0.60	%		1.30	%		1.69	%		2.43	%		0.70	%
Total expenses		1.66	%		1.72	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		499	%		539	%		877	%		1,010	%		1,060	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchase of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

RETAILING FUND

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

For the one-year period ended March 31, 2021, Retailing Fund Investor Class returned 99.55%, compared with 70.29% for the S&P 500 Consumer Discretionary Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by Internet & direct marketing retail, apparel retail, and home improvement retail.

��

Amazon.com, Inc., Lowe’s Companies, Inc., and Wayfair, Inc. Class A contributed the most to the Fund’s return for the period. Jumia Technologies AG ADR, Fiverr International Ltd., and GameStop Corp. Class A detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 1, 1998
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.	11.1%
Walmart, Inc.	5.6%
Home Depot, Inc.	5.2%
Alibaba Group Holding Ltd. ADR	3.7%
Costco Wholesale Corp.	3.6%
Lowe’s Companies, Inc.	3.4%
Target Corp.	2.9%
Booking Holdings, Inc.	2.7%
TJX Companies, Inc.	2.5%
Dollar General Corp.	2.1%
Top Ten Total	42.8%
“Ten Largest Holdings” excludes any temporary cash investments.

118 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	99.55%	16.21%	14.60%
A-Class Shares	99.07%	15.95%	14.32%
A-Class Shares with sales charge‡	89.61%	14.82%	13.76%
C-Class Shares	97.47%	15.05%	13.46%
C-Class Shares with CDSC§	96.47%	15.05%	13.46%
H-Class Shares**	99.01%	15.94%	14.23%
S&P 500 Consumer Discretionary Index	70.29%	17.87%	17.50%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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 graph are based on Investor Class and A-Class shares only; performance for C-Class and H-Class will vary due to differences in fee structures.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 119

SCHEDULE OF INVESTMENTS	March 31, 2021
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Retail - 58.6%
Walmart, Inc.		11,509	$	1,563,268
Home Depot, Inc.		4,809		1,467,947
Costco Wholesale Corp.		2,884		1,016,552
Lowe’s Companies, Inc.		5,042		958,888
Target Corp.		4,114		814,860
TJX Companies, Inc.		10,483		693,451
Dollar General Corp.		2,884		584,356
Walgreens Boots Alliance, Inc.		9,989		548,396
O’Reilly Automotive, Inc.*		1,001		507,757
Ross Stores, Inc.		4,198		503,382
AutoZone, Inc.*		343		481,675
Best Buy Company, Inc.		3,732		428,471
Dollar Tree, Inc.*		3,677		420,869
Tractor Supply Co.		2,049		362,837
Burlington Stores, Inc.*		1,205		360,054
CarMax, Inc.*		2,712		359,774
Ulta Beauty, Inc.*		1,077		332,976
L Brands, Inc.*		5,301		327,920
Genuine Parts Co.		2,756		318,566
RH*		523		312,022
Williams-Sonoma, Inc.		1,694		303,565
Five Below, Inc.*		1,422		271,303
Advance Auto Parts, Inc.		1,478		271,198
Gap, Inc.		8,593		255,900
Lithia Motors, Inc. — Class A		642		250,438
Floor & Decor Holdings, Inc. — Class A*		2,603		248,534
Kohl’s Corp.		3,989		237,784
AutoNation, Inc.*		2,356		219,626
BJ’s Wholesale Club Holdings, Inc.*		4,539		203,620
Carvana Co.*		770		202,048
Dick’s Sporting Goods, Inc.		2,650		201,798
Foot Locker, Inc.		3,348		188,325
Ollie’s Bargain Outlet Holdings, Inc.*		2,151		187,137
Nordstrom, Inc.*		4,747		179,769
American Eagle Outfitters, Inc.		5,841		170,791
Macy’s, Inc.*		10,049		162,693
Murphy USA, Inc.		1,122		162,196
Bed Bath & Beyond, Inc.*		4,908		143,068
Big Lots, Inc.		1,828		124,852
GameStop Corp. — Class A*		528		100,225
Total Retail				16,448,891
Internet - 37.9%
Amazon.com, Inc.*		1,004		3,106,456
Alibaba Group Holding Ltd. ADR*		4,608		1,044,772
Booking Holdings, Inc.*		325		757,198
JD.com, Inc. ADR*		6,435		542,664
eBay, Inc.		8,386		513,559
MercadoLibre, Inc.*		330		485,806
Chewy, Inc. — Class A*		5,692		482,169
Wayfair, Inc. — Class A*		1,465		461,109
Pinduoduo, Inc. ADR*		3,408		456,263
Etsy, Inc.*		1,915		386,198
Expedia Group, Inc.*		2,199		378,492
Farfetch Ltd. — Class A*		5,840		309,637
Fiverr International Ltd.*		1,374		298,405
Trip.com Group Ltd. ADR*		7,477		296,313
Jumia Technologies AG ADR*,1		6,938		246,021
Vipshop Holdings Ltd. ADR*		8,031		239,806
Grubhub, Inc.*		3,000		180,000
Stitch Fix, Inc. — Class A*		3,513		174,034
Stamps.com, Inc.*		772		154,022
Overstock.com, Inc.*		1,865		123,575
Total Internet				10,636,499
Distribution & Wholesale - 2.0%
Pool Corp.		855		295,180
LKQ Corp.*		6,509		275,526
Total Distribution & Wholesale				570,706
Apparel - 0.5%
Urban Outfitters, Inc.*		3,870		143,926
Electrical Components & Equipment - 0.4%
Blink Charging Co.*,1		2,750		113,025
Total Common Stocks
(Cost $19,254,743)				27,913,047
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	178,083		178,083
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		80,965		80,965
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		73,893		73,893
Total Repurchase Agreements
(Cost $332,941)				332,941
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		263,122		263,122
Total Securities Lending Collateral
(Cost $263,122)				263,122
Total Investments - 101.5%
(Cost $19,850,806)			$	28,509,110
Other Assets & Liabilities, net - (1.5)%				(433,858	)
Total Net Assets - 100.0%			$	28,075,252

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
RETAILING 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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	27,913,047	$	—	$	—	$	27,913,047
Repurchase Agreements		—		332,941		—		332,941
Securities Lending Collateral		263,122		—		—		263,122
Total Assets	$	28,176,169	$	332,941	$	—	$	28,509,110

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $265,813 of securities loaned (cost $19,517,865)	$	28,176,169
Repurchase agreements, at value (cost $332,941)		332,941
Receivables:
Fund shares sold		57,320
Dividends		12,876
Securities lending income		527
Total assets		28,579,833
Liabilities:
Payable for:
Return of securities lending collateral		263,122
Securities purchased		179,935
Management fees		19,746
Transfer agent and administrative fees		6,249
Fund shares redeemed		2,358
Portfolio accounting fees		2,323
Distribution and service fees		831
Trustees’ fees*		422
Miscellaneous		29,595
Total liabilities		504,581
Commitments and contingent liabilities (Note 10)		—
Net assets	$	28,075,252
Net assets consist of:
Paid in capital	$	18,924,425
Total distributable earnings (loss)		9,150,827
Net assets	$	28,075,252
Investor Class:
Net assets	$	24,986,879
Capital shares outstanding		437,508
Net asset value per share	$	57.11
A-Class:
Net assets	$	2,132,614
Capital shares outstanding		39,679
Net asset value per share	$	53.75
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.43
C-Class:
Net assets	$	294,434
Capital shares outstanding		6,299
Net asset value per share	$	46.74
H-Class:
Net assets	$	661,325
Capital shares outstanding		12,612
Net asset value per share	$	52.44

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $722)	$	234,566
Interest		94
Income from securities lending, net		3,254
Total investment income		237,914
Expenses:
Management fees		228,117
Distribution and service fees:
A-Class		3,428
C-Class		3,715
H-Class		5,682
Transfer agent and administrative fees		73,995
Portfolio accounting fees		26,843
Registration fees		21,503
Professional fees		10,349
Custodian fees		3,688
Trustees’ fees*		3,333
Miscellaneous		15,189
Total expenses		395,842
Net investment loss		(157,928	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,923,049
Net realized gain		4,923,049
Net change in unrealized appreciation (depreciation) on:
Investments		8,792,473
Net change in unrealized appreciation (depreciation)		8,792,473
Net realized and unrealized gain		13,715,522
Net increase in net assets resulting from operations	$	13,557,594

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

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

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(157,928	)	$	(38,822	)
Net realized gain on investments		4,923,049			4,774,021
Net change in unrealized appreciation (depreciation) on investments		8,792,473			(6,572,492	)
Net increase (decrease) in net assets resulting from operations		13,557,594			(1,837,293	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		79,357,647			31,349,501
A-Class		1,348,128			3,834,435
C-Class		1,002,664			834,190
H-Class		9,281,648			3,326,658
Cost of shares redeemed
Investor Class		(69,048,353	)		(48,988,755	)
A-Class		(417,961	)		(9,222,466	)
C-Class		(1,175,354	)		(1,028,876	)
H-Class		(10,177,931	)		(9,207,289	)
Net increase (decrease) from capital share transactions		10,170,488			(29,102,602	)
Net increase (decrease) in net assets		23,728,082			(30,939,895	)
Net assets:
Beginning of year		4,347,170			35,287,065
End of year	$	28,075,252		$	4,347,170
Capital share activity:
Shares sold
Investor Class		1,758,892			925,612
A-Class		32,086			124,928
C-Class		24,969			29,194
H-Class		230,718			105,560
Shares redeemed
Investor Class		(1,437,219	)		(1,489,548	)
A-Class		(9,294	)		(291,563	)
C-Class		(28,400	)		(36,199	)
H-Class		(231,204	)		(295,381	)
Net increase (decrease) in shares		340,548			(927,397	)

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	28.62		$	33.46		$	30.17		$	26.78		$	26.98
Income (loss) from investment operations:
Net investment income (loss)a		(.25	)		(.06	)		(.02	)		.11			.03
Net gain (loss) on investments (realized and unrealized)		28.74			(4.78	)		3.35			3.28			(.23	)
Total from investment operations		28.49			(4.84	)		3.33			3.39			(.20	)
Less distributions from:
Net investment income		—			—			(.03	)		—			—
Net realized gains		—			—			(.01	)		—			—
Total distributions		—			—			(.04	)		—			—
Net asset value, end of period	$	57.11		$	28.62		$	33.46		$	30.17		$	26.78
Total Return		99.55	%		(14.47	%)		11.06	%		12.66	%		(0.74	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,987		$	3,316		$	22,748		$	19,876		$	8,498
Ratios to average net assets:
Net investment income (loss)		(0.52	%)		(0.17	%)		(0.07	%)		0.40	%		0.10	%
Total expenses		1.43	%		1.47	%		1.45	%		1.37	%		1.37	%
Portfolio turnover rate		270	%		228	%		314	%		1,306	%		887	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	27.00		$	31.64		$	28.60		$	25.44		$	25.69
Income (loss) from investment operations:
Net investment income (loss)a		(.38	)		(.13	)		(.05	)		—	b		(.08	)
Net gain (loss) on investments (realized and unrealized)		27.13			(4.51	)		3.13			3.16			(.17	)
Total from investment operations		26.75			(4.64	)		3.08			3.16			(.25	)
Less distributions from:
Net investment income		—			—			(.03	)		—			—
Net realized gains		—			—			(.01	)		—			—
Total distributions		—			—			(.04	)		—			—
Net asset value, end of period	$	53.75		$	27.00		$	31.64		$	28.60		$	25.44
Total Returnc		99.07	%		(14.66	%)		10.80	%		12.42	%		(0.97	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,133		$	456		$	5,806		$	1,260		$	1,217
Ratios to average net assets:
Net investment income (loss)		(0.83	%)		(0.42	%)		(0.16	%)		—	d		(0.34	%)
Total expenses		1.67	%		1.72	%		1.72	%		1.63	%		1.62	%
Portfolio turnover rate		270	%		228	%		314	%		1,306	%		887	%

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

RETAILING FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	23.67		$	27.95		$	25.46		$	22.83		$	23.23
Income (loss) from investment operations:
Net investment income (loss)a		(.62	)		(.33	)		(.31	)		(.17	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		23.69			(3.95	)		2.84			2.80			(.17	)
Total from investment operations		23.07			(4.28	)		2.53			2.63			(.40	)
Less distributions from:
Net investment income		—			—			(.03	)		—			—
Net realized gains		—			—			(.01	)		—			—
Total distributions		—			—			(.04	)		—			—
Net asset value, end of period	$	46.74		$	23.67		$	27.95		$	25.46		$	22.83
Total Returnc		97.47	%		(15.31	%)		9.97	%		11.52	%		(1.76	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	294		$	230		$	468		$	603		$	1,601
Ratios to average net assets:
Net investment income (loss)		(1.65	%)		(1.16	%)		(1.15	%)		(0.71	%)		(1.00	%)
Total expenses		2.44	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		270	%		228	%		314	%		1,306	%		887	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	26.35		$	30.87		$	27.91		$	24.83		$	25.07
Income (loss) from investment operations:
Net investment income (loss)a		(.39	)		(.20	)		(.11	)		.05			(—	)b
Net gain (loss) on investments (realized and unrealized)		26.48			(4.32	)		3.11			3.03			(.24	)
Total from investment operations		26.09			(4.52	)		3.00			3.08			(.24	)
Less distributions from:
Net investment income		—			—			(.03	)		—			—
Net realized gains		—			—			(.01	)		—			—
Total distributions		—			—			(.04	)		—			—
Net asset value, end of period	$	52.44		$	26.35		$	30.87		$	27.91		$	24.83
Total Return		99.01	%		(14.64	%)		10.81	%		12.40	%		(0.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	661		$	345		$	6,265		$	5,079		$	411
Ratios to average net assets:
Net investment income (loss)		(0.91	%)		(0.64	%)		(0.37	%)		0.18	%		(—	)d
Total expenses		1.69	%		1.72	%		1.70	%		1.62	%		1.62	%
Portfolio turnover rate		270	%		228	%		314	%		1,306	%		887	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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”).

For the one-year period ended March 31, 2021, Technology Fund Investor Class returned 80.31%, compared with 66.61% for the S&P 500 Information Technology Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by semiconductors, application software and interactive media & services.

Apple, Inc., Alphabet, Inc. - Class A, and Microsoft Corp. contributed the most to the Fund’s return for the period. Momo, Inc. ADR - Class A, Datadog, Inc. - Class A, and Fastly, Inc. - Class A detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	4.7%
Microsoft Corp.	4.4%
Alphabet, Inc. — Class A	3.9%
Facebook, Inc. — Class A	3.0%
Visa, Inc. — Class A	2.2%
NVIDIA Corp.	1.9%
Mastercard, Inc. — Class A	1.9%
PayPal Holdings, Inc.	1.7%
Intel Corp.	1.6%
Adobe, Inc.	1.6%
Top Ten Total	26.9%
“Ten Largest Holdings” excludes any temporary cash investments.

126 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	80.31%	26.15%	16.55%
A-Class Shares	79.86%	25.84%	16.25%
A-Class Shares with sales charge‡	71.31%	24.62%	15.68%
C-Class Shares	78.52%	24.90%	15.38%
C-Class Shares with CDSC§	77.52%	24.90%	15.38%
H-Class Shares**	79.85%	25.83%	16.13%
S&P 500 Information Technology Index	66.61%	27.64%	20.50%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and 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.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 127

SCHEDULE OF INVESTMENTS	March 31, 2021
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Software - 32.5%
Microsoft Corp.		9,740	$	2,296,400
Adobe, Inc.*		1,779		845,683
Oracle Corp.		11,199		785,834
salesforce.com, Inc.*		3,577		757,859
Intuit, Inc.		1,469		562,715
ServiceNow, Inc.*		1,111		555,622
Zoom Video Communications, Inc. — Class A*		1,654		531,414
Fidelity National Information Services, Inc.		3,551		499,306
Fiserv, Inc.*		3,978		473,541
Activision Blizzard, Inc.		5,007		465,651
VMware, Inc. — Class A*,1		2,875		432,544
Autodesk, Inc.*		1,558		431,800
Workday, Inc. — Class A*		1,682		417,859
Twilio, Inc. — Class A*		1,196		407,549
Sea Ltd. ADR*		1,676		374,133
Cadence Design Systems, Inc.*		2,556		350,146
Synopsys, Inc.*		1,407		348,626
Electronic Arts, Inc.		2,559		346,412
DocuSign, Inc.*		1,639		331,815
Paychex, Inc.		3,282		321,702
NetEase, Inc. ADR		2,952		304,823
Atlassian Corporation plc — Class A*		1,435		302,441
ANSYS, Inc.*		885		300,511
Bilibili, Inc. ADR*		2,751		294,522
Datadog, Inc. — Class A*		3,300		275,022
RingCentral, Inc. — Class A*		916		272,858
Slack Technologies, Inc. — Class A*		6,447		261,942
HubSpot, Inc.*		560		254,358
Splunk, Inc.*		1,873		253,754
Cloudflare, Inc. — Class A*		3,570		250,828
Take-Two Interactive Software, Inc.*		1,413		249,677
Coupa Software, Inc.*,1		929		236,412
Broadridge Financial Solutions, Inc.		1,528		233,937
Citrix Systems, Inc.		1,658		232,717
Tyler Technologies, Inc.*		530		225,001
Akamai Technologies, Inc.*		2,199		224,078
Fair Isaac Corp.*		440		213,862
MongoDB, Inc.*		767		205,119
Ceridian HCM Holding, Inc.*		2,280		192,136
Nuance Communications, Inc.*		4,376		190,969
Jack Henry & Associates, Inc.		1,230		186,616
Dropbox, Inc. — Class A*		6,761		180,248
Fastly, Inc. — Class A*,1		2,180		146,670
Alteryx, Inc. — Class A*		1,537		127,509
Total Software				17,152,621
Semiconductors - 21.1%
NVIDIA Corp.		1,876		1,001,653
Intel Corp.		13,601		870,464
Broadcom, Inc.		1,606		744,638
Texas Instruments, Inc.		3,924		741,597
QUALCOMM, Inc.		5,039		668,121
Applied Materials, Inc.		4,826		644,754
Micron Technology, Inc.*		6,018		530,848
Advanced Micro Devices, Inc.*		6,717		527,285
Lam Research Corp.		885		526,787
Taiwan Semiconductor Manufacturing Company Ltd. ADR		3,697		437,281
Analog Devices, Inc.		2,681		415,769
KLA Corp.		1,250		413,000
NXP Semiconductor N.V.		1,801		362,613
Microchip Technology, Inc.		2,324		360,731
ASML Holding N.V. — Class G		567		350,043
Marvell Technology Group Ltd.		6,565		321,554
Skyworks Solutions, Inc.		1,655		303,659
Xilinx, Inc.		2,418		299,590
Maxim Integrated Products, Inc.		2,976		271,917
Teradyne, Inc.		2,069		251,756
Qorvo, Inc.*		1,373		250,847
ON Semiconductor Corp.*		5,525		229,895
Monolithic Power Systems, Inc.		627		221,463
Cree, Inc.*		1,780		192,471
Inphi Corp.*		990		176,626
Total Semiconductors				11,115,362
Internet - 16.7%
Alphabet, Inc. — Class A*		992		2,046,020
Facebook, Inc. — Class A*		5,443		1,603,127
Snap, Inc. — Class A*		8,653		452,465
Baidu, Inc. ADR*		1,847		401,815
Pinterest, Inc. — Class A*		5,124		379,330
Shopify, Inc. — Class A*		341		377,316
Twitter, Inc.*		5,893		374,972
Match Group, Inc.*		2,310		317,348
Palo Alto Networks, Inc.*		946		304,669
Zillow Group, Inc. — Class C*		2,309		299,339
Okta, Inc.*		1,346		296,699
CDW Corp.		1,615		267,686
VeriSign, Inc.*		1,326		263,556
Wix.com Ltd.*		910		254,090
IAC*		1,053		227,774
Zendesk, Inc.*		1,651		218,956
GoDaddy, Inc. — Class A*		2,600		201,812
F5 Networks, Inc.*		954		199,023
NortonLifeLock, Inc.		8,935		189,958
Anaplan, Inc.*		2,800		150,780
Total Internet				8,826,735
Computers - 12.9%
Apple, Inc.		20,106		2,455,948
International Business Machines Corp.		4,463		594,740
Accenture plc — Class A		1,637		452,221
Dell Technologies, Inc. — Class C*		4,972		438,282
Cognizant Technology Solutions Corp. — Class A		4,494		351,071
HP, Inc.		10,927		346,932
Crowdstrike Holdings, Inc. — Class A*		1,846		336,914
Fortinet, Inc.*		1,662		306,506
Infosys Ltd. ADR		15,110		282,859
Check Point Software Technologies Ltd.*		2,394		268,056

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
TECHNOLOGY FUND

	Shares		Value
Zscaler, Inc.*		1,491	$	255,960
Western Digital Corp.		3,584		239,232
Seagate Technology plc		3,008		230,864
NetApp, Inc.		3,030		220,190
Total Computers				6,779,775
Commercial Services - 5.3%
PayPal Holdings, Inc.*		3,780		917,935
Square, Inc. — Class A*		2,426		550,823
Automatic Data Processing, Inc.		2,576		485,499
Global Payments, Inc.		2,038		410,820
FleetCor Technologies, Inc.*		927		249,020
Booz Allen Hamilton Holding Corp.		2,230		179,582
Total Commercial Services				2,793,679
Diversified Financial Services - 4.1%
Visa, Inc. — Class A		5,391		1,141,436
Mastercard, Inc. — Class A		2,801		997,296
Total Diversified Financial Services				2,138,732
Telecommunications - 3.2%
Cisco Systems, Inc.		15,847		819,448
Motorola Solutions, Inc.		1,639		308,214
Arista Networks, Inc.*		892		269,286
Ciena Corp.*		2,850		155,952
Juniper Networks, Inc.		6,155		155,906
Total Telecommunications				1,708,806
Energy-Alternate Sources - 1.4%
SolarEdge Technologies, Inc.*		1,132		325,382
Enphase Energy, Inc.*		1,596		258,808
First Solar, Inc.*		1,991		173,814
Total Energy-Alternate Sources				758,004
Electronics - 1.2%
Amphenol Corp. — Class A		5,176		341,461
TE Connectivity Ltd.		2,100		271,131
Total Electronics				612,592
Advertising - 0.6%
Trade Desk, Inc. — Class A*		449		292,595
Office & Business Equipment - 0.5%
Zebra Technologies Corp. — Class A*		589		285,771
Total Common Stocks
(Cost $21,783,183)				52,464,672
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	184,852		184,852
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		84,043		84,043
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		76,702		76,702
Total Repurchase Agreements
(Cost $345,597)				345,597
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		606,261		606,261
Total Securities Lending Collateral
(Cost $606,261)				606,261
Total Investments - 101.4%
(Cost $22,735,041)			$	53,416,530
Other Assets & Liabilities, net - (1.4)%				(717,146	)
Total Net Assets - 100.0%			$	52,699,384

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
TECHNOLOGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	52,464,672	$	—	$	—	$	52,464,672
Repurchase Agreements		—		345,597		—		345,597
Securities Lending Collateral		606,261		—		—		606,261
Total Assets	$	53,070,933	$	345,597	$	—	$	53,416,530

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $608,783 of securities loaned (cost $22,389,444)	$	53,070,933
Repurchase agreements, at value (cost $345,597)		345,597
Cash		84
Receivables:
Fund shares sold		132,891
Dividends		14,014
Foreign tax reclaims		1,107
Securities lending income		57
Total assets		53,564,683
Liabilities:
Payable for:
Return of securities lending collateral		606,261
Fund shares redeemed		136,382
Management fees		38,703
Transfer agent and administrative fees		12,248
Distribution and service fees		7,589
Portfolio accounting fees		4,553
Trustees’ fees*		839
Miscellaneous		58,724
Total liabilities		865,299
Commitments and contingent liabilities (Note 10)		—
Net assets	$	52,699,384
Net assets consist of:
Paid in capital	$	17,078,284
Total distributable earnings (loss)		35,621,100
Net assets	$	52,699,384
Investor Class:
Net assets	$	35,561,965
Capital shares outstanding		200,136
Net asset value per share	$	177.69
A-Class:
Net assets	$	9,189,749
Capital shares outstanding		56,069
Net asset value per share	$	163.90
Maximum offering price per share (Net asset value divided by 95.25%)	$	172.07
C-Class:
Net assets	$	6,214,036
Capital shares outstanding		43,211
Net asset value per share	$	143.81
H-Class:
Net assets	$	1,733,634
Capital shares outstanding		10,824
Net asset value per share	$	160.17

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $1,406)	$	498,037
Interest		212
Income from securities lending, net		7,056
Total investment income		505,305
Expenses:
Management fees		532,079
Distribution and service fees:
A-Class		20,089
C-Class		56,328
H-Class		20,410
Transfer agent and administrative fees		175,803
Portfolio accounting fees		62,611
Professional fees		27,897
Trustees’ fees*		13,737
Custodian fees		9,310
Line of credit fees		20
Miscellaneous		83,375
Total expenses		1,001,659
Net investment loss		(496,354	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		16,704,253
Net realized gain		16,704,253
Net change in unrealized appreciation (depreciation) on:
Investments		17,934,029
Net change in unrealized appreciation (depreciation)		17,934,029
Net realized and unrealized gain		34,638,282
Net increase in net assets resulting from operations	$	34,141,928

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

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

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(496,354	)	$	(238,094	)
Net realized gain on investments		16,704,253			7,471,785
Net change in unrealized appreciation (depreciation) on investments		17,934,029			(9,218,136	)
Net increase (decrease) in net assets resulting from operations		34,141,928			(1,984,445	)
Distributions to shareholders:
Investor Class		(626,479	)		(218,299	)
A-Class		(157,334	)		(36,076	)
C-Class		(128,380	)		(29,921	)
H-Class		(148,326	)		(44,819	)
Total distributions to shareholders		(1,060,519	)		(329,115	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		100,514,105			114,605,193
A-Class		2,394,726			2,836,127
C-Class		4,172,637			3,924,183
H-Class		27,010,757			30,618,988
Distributions reinvested
Investor Class		611,649			214,441
A-Class		153,794			35,404
C-Class		127,649			29,756
H-Class		147,540			44,810
Cost of shares redeemed
Investor Class		(108,748,503	)		(150,527,001	)
A-Class		(2,845,095	)		(3,403,826	)
C-Class		(4,736,046	)		(5,615,143	)
H-Class		(34,928,240	)		(40,117,567	)
Net decrease from capital share transactions		(16,125,027	)		(47,354,635	)
Net increase (decrease) in net assets		16,956,382			(49,668,195	)
Net assets:
Beginning of year		35,743,002			85,411,197
End of year	$	52,699,384		$	35,743,002
Capital share activity:
Shares sold
Investor Class		695,815			1,049,477
A-Class		17,600			28,267
C-Class		36,933			43,711
H-Class		255,121			314,033
Shares issued from reinvestment of distributions
Investor Class		3,684			1,897
A-Class		1,004			338
C-Class		947			320
H-Class		985			438
Shares redeemed
Investor Class		(730,778	)		(1,419,055	)
A-Class		(19,880	)		(34,820	)
C-Class		(40,831	)		(64,028	)
H-Class		(283,151	)		(415,628	)
Net decrease in shares		(62,551	)		(495,050	)

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	100.21		$	101.77		$	94.62		$	75.45		$	60.53
Income (loss) from investment operations:
Net investment income (loss)a		(.96	)		(.22	)		(.31	)		(.29	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		81.24			(.80	)		11.99			20.66			15.01
Total from investment operations		80.28			(1.02	)		11.68			20.37			14.92
Less distributions from:
Net realized gains		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Total distributions		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Net asset value, end of period	$	177.69		$	100.21		$	101.77		$	94.62		$	75.45
Total Return		80.31	%		(1.06	%)		13.05	%		27.11	%		24.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,562		$	23,190		$	60,972		$	76,820		$	55,016
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.20	%)		(0.32	%)		(0.34	%)		(0.13	%)
Total expenses		1.44	%		1.47	%		1.46	%		1.37	%		1.38	%
Portfolio turnover rate		195	%		165	%		255	%		270	%		320	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	92.79		$	94.51		$	88.40		$	70.74		$	56.88
Income (loss) from investment operations:
Net investment income (loss)a		(1.24	)		(.41	)		(.49	)		(.45	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		75.15			(.77	)		11.13			19.31			14.11
Total from investment operations		73.91			(1.18	)		10.64			18.86			13.86
Less distributions from:
Net realized gains		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Total distributions		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Net asset value, end of period	$	163.90		$	92.79		$	94.51		$	88.40		$	70.74
Total Returnb		79.86	%		(1.31	%)		12.77	%		26.77	%		24.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,190		$	5,321		$	6,007		$	5,033		$	3,294
Ratios to average net assets:
Net investment income (loss)		(0.90	%)		(0.40	%)		(0.54	%)		(0.56	%)		(0.40	%)
Total expenses		1.69	%		1.73	%		1.71	%		1.63	%		1.63	%
Portfolio turnover rate		195	%		165	%		255	%		270	%		320	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	82.23		$	84.44		$	80.06		$	64.64		$	52.37
Income (loss) from investment operations:
Net investment income (loss)a		(2.01	)		(1.06	)		(1.10	)		(1.02	)		(.64	)
Net gain (loss) on investments (realized and unrealized)		66.39			(.61	)		10.01			17.64			12.91
Total from investment operations		64.38			(1.67	)		8.91			16.62			12.27
Less distributions from:
Net realized gains		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Total distributions		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Net asset value, end of period	$	143.81		$	82.23		$	84.44		$	80.06		$	64.64
Total Returnb		78.52	%		(2.05	%)		11.93	%		25.85	%		23.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,214		$	3,796		$	5,586		$	6,409		$	3,203
Ratios to average net assets:
Net investment income (loss)		(1.65	%)		(1.17	%)		(1.33	%)		(1.37	%)		(1.12	%)
Total expenses		2.44	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		195	%		165	%		255	%		270	%		320	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	90.72		$	92.40		$	86.54		$	69.27		$	55.72
Income (loss) from investment operations:
Net investment income (loss)a		(1.01	)		(.47	)		(.64	)		(.46	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		73.26			(.67	)		11.03			18.93			13.85
Total from investment operations		72.25			(1.14	)		10.39			18.47			13.55
Less distributions from:
Net realized gains		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Total distributions		(2.80	)		(.54	)		(4.53	)		(1.20	)		—
Net asset value, end of period	$	160.17		$	90.72		$	92.40		$	86.54		$	69.27
Total Return		79.85	%		(1.30	%)		12.76	%		26.78	%		24.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,734		$	3,435		$	12,846		$	40,149		$	21,504
Ratios to average net assets:
Net investment income (loss)		(0.83	%)		(0.47	%)		(0.71	%)		(0.58	%)		(0.46	%)
Total expenses		1.74	%		1.72	%		1.70	%		1.63	%		1.63	%
Portfolio turnover rate		195	%		165	%		255	%		270	%		320	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

TELECOMMUNICATIONS FUND

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

For the one-year period ended March 31, 2021, Telecommunications Fund Investor Class returned 32.55%, compared with 60.88% for the S&P 500 Telecommunications Services Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by communications equipment, alternative carriers, and wireless telecommunication services.

T-Mobile US, Inc., Cisco Systems, Inc., and Ubiquiti, Inc. contributed the most to the Fund’s return for the period. China Mobile Ltd. ADR and Charter Communications, Inc. - Class A detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Verizon Communications, Inc.	8.4%
Cisco Systems, Inc.	8.1%
AT&T, Inc.	7.9%
T-Mobile US, Inc.	6.7%
Comcast Corp. — Class A	6.6%
Charter Communications, Inc. — Class A	5.2%
Motorola Solutions, Inc.	3.7%
Liberty Broadband Corp. — Class C	3.4%
Arista Networks, Inc.	3.2%
DISH Network Corp. — Class A	2.7%
Top Ten Total	55.9%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 135

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	32.55%	8.06%	4.37%
A-Class Shares	32.20%	7.79%	4.11%
A-Class Shares with sales charge‡	25.93%	6.74%	3.61%
C-Class Shares	31.22%	6.98%	3.40%
C-Class Shares with CDSC§	30.22%	6.98%	3.40%
H-Class Shares**	32.24%	7.84%	4.01%
S&P 500 Telecommunication Services Index	60.88%	10.15%	10.41%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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.
‡	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.

136 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Telecommunications - 66.8%
Verizon Communications, Inc.		3,877	$	225,448
Cisco Systems, Inc.		4,206		217,492
AT&T, Inc.		6,971		211,012
T-Mobile US, Inc.*		1,426		178,664
Motorola Solutions, Inc.		524		98,538
Arista Networks, Inc.*		282		85,133
Ubiquiti, Inc.		234		69,802
Lumen Technologies, Inc.		4,809		64,200
Ciena Corp.*		909		49,741
Juniper Networks, Inc.		1,958		49,596
Iridium Communications, Inc.*		1,013		41,786
America Movil SAB de CV — Class L ADR		2,744		37,264
BCE, Inc.		823		37,150
Vodafone Group plc ADR		1,983		36,547
TELUS Corp.		1,696		33,801
Rogers Communications, Inc. — Class B		714		32,915
Viavi Solutions, Inc.*		2,030		31,871
Viasat, Inc.*		618		29,707
CommScope Holding Company, Inc.*		1,918		29,460
Vonage Holdings Corp.*		2,485		29,373
Telephone & Data Systems, Inc.		1,219		27,988
Shenandoah Telecommunications Co.		546		26,650
InterDigital, Inc.		374		23,730
Infinera Corp.*		2,444		23,536
Calix, Inc.*		627		21,732
Plantronics, Inc.*		543		21,128
NETGEAR, Inc.*		458		18,824
Inseego Corp.*,1		1,712		17,120
Cincinnati Bell, Inc.*		988		15,166
Total Telecommunications				1,785,374
Media - 25.3%
Comcast Corp. — Class A		3,276		177,264
Charter Communications, Inc. — Class A*		227		140,064
Liberty Broadband Corp. — Class C*		612		91,892
DISH Network Corp. — Class A*		2,028		73,414
Altice USA, Inc. — Class A*		2,030		66,036
Cable One, Inc.		32		58,507
Liberty Global plc — Class C*		1,628		41,579
Liberty Latin America Ltd. — Class C*		2,199		28,543
Total Media				677,299
Internet - 3.6%
F5 Networks, Inc.*		301		62,795
Cogent Communications Holdings, Inc.		470		32,317
Total Internet				95,112
Computers - 2.6%
Lumentum Holdings, Inc.*		513		46,862
NetScout Systems, Inc.*		854		24,049
Total Computers				70,911
Software - 1.2%
Bandwidth, Inc. — Class A*		247		31,305
Total Common Stocks
(Cost $2,174,437)				2,660,001
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	8,619		8,619
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		3,919		3,919
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		3,576		3,576
Total Repurchase Agreements
(Cost $16,114)				16,114
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		8,570		8,570
Total Securities Lending Collateral
(Cost $8,570)				8,570
Total Investments - 100.4%
(Cost $2,199,121)			$	2,684,685
Other Assets & Liabilities, net - (0.4)%				(11,966	)
Total Net Assets - 100.0%			$	2,672,719

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
TELECOMMUNICATIONS FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	2,660,001	$	—	$	—	$	2,660,001
Repurchase Agreements		—		16,114		—		16,114
Securities Lending Collateral		8,570		—		—		8,570
Total Assets	$	2,668,571	$	16,114	$	—	$	2,684,685

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $8,570 of securities loaned (cost $2,183,007)	$	2,668,571
Repurchase agreements, at value (cost $16,114)		16,114
Receivables:
Fund shares sold		32,519
Dividends		2,885
Securities lending income		25
Total assets		2,720,114
Liabilities:
Payable for:
Securities purchased		19,161
Fund shares redeemed		14,215
Return of securities lending collateral		8,570
Management fees		1,754
Transfer agent and administrative fees		555
Distribution and service fees		313
Portfolio accounting fees		207
Trustees’ fees*		37
Miscellaneous		2,583
Total liabilities		47,395
Commitments and contingent liabilities (Note 10)		—
Net assets	$	2,672,719
Net assets consist of:
Paid in capital	$	4,398,398
Total distributable earnings (loss)		(1,725,679	)
Net assets	$	2,672,719
Investor Class:
Net assets	$	1,772,839
Capital shares outstanding		31,639
Net asset value per share	$	56.03
A-Class:
Net assets	$	467,215
Capital shares outstanding		9,184
Net asset value per share	$	50.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	53.41
C-Class:
Net assets	$	187,967
Capital shares outstanding		4,269
Net asset value per share	$	44.03
H-Class:
Net assets	$	244,698
Capital shares outstanding		4,943
Net asset value per share	$	49.50

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $1,260)	$	117,139
Interest		10
Income from securities lending, net		130
Total investment income		117,279
Expenses:
Management fees		36,389
Distribution and service fees:
A-Class		1,209
C-Class		1,633
H-Class		370
Transfer agent and administrative fees		12,160
Registration fees		4,486
Portfolio accounting fees		4,282
Professional fees		2,575
Trustees’ fees*		1,209
Custodian fees		652
Line of credit fees		11
Miscellaneous		469
Total expenses		65,445
Net investment income		51,834
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		452,744
Net realized gain		452,744
Net change in unrealized appreciation (depreciation) on:
Investments		577,545
Net change in unrealized appreciation (depreciation)		577,545
Net realized and unrealized gain		1,030,289
Net increase in net assets resulting from operations	$	1,082,123

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

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

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	51,834		$	64,953
Net realized gain (loss) on investments		452,744			(95,584	)
Net change in unrealized appreciation (depreciation) on investments		577,545			(901,647	)
Net increase (decrease) in net assets resulting from operations		1,082,123			(932,278	)
Distributions to shareholders:
Investor Class		(33,285	)		(113,546	)
A-Class		(11,456	)		(17,634	)
C-Class		(5,894	)		(6,767	)
H-Class		(2,961	)		(15,192	)
Total distributions to shareholders		(53,596	)		(153,139	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		11,143,082			24,964,902
A-Class		215,071			623,152
C-Class		1,114,484			1,848,670
H-Class		179,033			1,719,340
Distributions reinvested
Investor Class		32,851			112,956
A-Class		9,865			17,633
C-Class		5,868			6,726
H-Class		2,961			15,192
Cost of shares redeemed
Investor Class		(13,224,675	)		(24,123,207	)
A-Class		(325,159	)		(640,505	)
C-Class		(1,087,947	)		(1,966,664	)
H-Class		(71,584	)		(1,924,759	)
Net increase (decrease) from capital share transactions		(2,006,150	)		653,436
Net decrease in net assets		(977,623	)		(431,981	)
Net assets:
Beginning of year		3,650,342			4,082,323
End of year	$	2,672,719		$	3,650,342
Capital share activity:
Shares sold
Investor Class		222,275			495,964
A-Class		4,543			13,794
C-Class		28,170			45,924
H-Class		3,760			38,272
Shares issued from reinvestment of distributions
Investor Class		622			2,364
A-Class		205			404
C-Class		141			176
H-Class		63			358
Shares redeemed
Investor Class		(260,351	)		(488,814	)
A-Class		(6,878	)		(13,917	)
C-Class		(27,407	)		(48,887	)
H-Class		(1,601	)		(43,359	)
Net increase (decrease) in shares		(36,458	)		2,279

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

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	43.19		$	50.17		$	47.66		$	47.95		$	42.91
Income (loss) from investment operations:
Net investment income (loss)a		.66			.69			.46			.43			.49
Net gain (loss) on investments (realized and unrealized)		13.33			(5.91	)		2.17	c		1.17			5.55
Total from investment operations		13.99			(5.22	)		2.63			1.60			6.04
Less distributions from:
Net investment income		(1.15	)		(1.76	)		(.02	)		(1.89	)		(1.00	)
Net realized gains		—			—			(.10	)		—			—
Total distributions		(1.15	)		(1.76	)		(.12	)		(1.89	)		(1.00	)
Net asset value, end of period	$	56.03		$	43.19		$	50.17		$	47.66		$	47.95
Total Return		32.55	%		(10.74	%)		5.52	%		3.33	%		14.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,773		$	2,984		$	2,989		$	1,309		$	12,539
Ratios to average net assets:
Net investment income (loss)		1.33	%		1.38	%		0.94	%		0.89	%		1.09	%
Total expenses		1.46	%		1.48	%		1.47	%		1.38	%		1.38	%
Portfolio turnover rate		344	%		561	%		2,115	%		1,455	%		605	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	39.40		$	46.03		$	43.84		$	44.39		$	39.88
Income (loss) from investment operations:
Net investment income (loss)a		.41			.31			.43			.20			.32
Net gain (loss) on investments (realized and unrealized)		12.21			(5.18	)		1.88	c		1.14			5.19
Total from investment operations		12.62			(4.87	)		2.31			1.34			5.51
Less distributions from:
Net investment income		(1.15	)		(1.76	)		(.02	)		(1.89	)		(1.00	)
Net realized gains		—			—			(.10	)		—			—
Total distributions		(1.15	)		(1.76	)		(.12	)		(1.89	)		(1.00	)
Net asset value, end of period	$	50.87		$	39.40		$	46.03		$	43.84		$	44.39
Total Returnb		32.20	%		(10.95	%)		5.27	%		3.08	%		13.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	467		$	446		$	508		$	448		$	1,081
Ratios to average net assets:
Net investment income (loss)		0.90	%		0.69	%		0.96	%		0.45	%		0.75	%
Total expenses		1.70	%		1.73	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		344	%		561	%		2,115	%		1,455	%		605	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	34.47		$	40.81		$	39.17		$	40.14		$	36.43
Income (loss) from investment operations:
Net investment income (loss)a		.01			.04			.06			(.09	)		.03
Net gain (loss) on investments (realized and unrealized)		10.70			(4.62	)		1.70	c		1.01			4.68
Total from investment operations		10.71			(4.58	)		1.76			.92			4.71
Less distributions from:
Net investment income		(1.15	)		(1.76	)		(.02	)		(1.89	)		(1.00	)
Net realized gains		—			—			(.10	)		—			—
Total distributions		(1.15	)		(1.76	)		(.12	)		(1.89	)		(1.00	)
Net asset value, end of period	$	44.03		$	34.47		$	40.81		$	39.17		$	40.14
Total Returnb		31.22	%		(11.62	%)		4.49	%		2.30	%		13.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	188		$	116		$	251		$	368		$	406
Ratios to average net assets:
Net investment income (loss)		0.03	%		0.10	%		0.15	%		(0.22	%)		0.07	%
Total expenses		2.43	%		2.48	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		344	%		561	%		2,115	%		1,455	%		605	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	38.36		$	44.88		$	42.66		$	43.21		$	38.85
Income (loss) from investment operations:
Net investment income (loss)a		.28			.44			1.16			(.06	)		.58
Net gain (loss) on investments (realized and unrealized)		12.01			(5.20	)		1.18	c		1.40			4.78
Total from investment operations		12.29			(4.76	)		2.34			1.34			5.36
Less distributions from:
Net investment income		(1.15	)		(1.76	)		(.02	)		(1.89	)		(1.00	)
Net realized gains		—			—			(.10	)		—			—
Total distributions		(1.15	)		(1.76	)		(.12	)		(1.89	)		(1.00	)
Net asset value, end of period	$	49.50		$	38.36		$	44.88		$	42.66		$	43.21
Total Return		32.24	%		(10.98	%)		5.51	%		3.07	%		13.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	245		$	104		$	334		$	140		$	1,213
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.99	%		2.73	%		(0.14	%)		1.44	%
Total expenses		1.68	%		1.73	%		1.74	%		1.63	%		1.62	%
Portfolio turnover rate		344	%		561	%		2,115	%		1,455	%		605	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

TRANSPORTATION FUND

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

For the one-year period ended March 31, 2021, Transportation Fund Investor Class returned 125.41%, compared with 69.61% for the S&P 500 Industrials Index. The broader S&P 500 Index returned 56.35%.

Automobile manufacturers, trucking, and auto parts & equipment contributed the most to return of the Fund for the period. The only industry to detract from return was construction machinery & heavy trucks.

Tesla, Inc., United Parcel Service, Inc. - Class B, and General Motors Co. contributed the most to the Fund’s return for the period. QuantumScape Corp., Hertz Global Holdings, Inc., and Luminar Technologies, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Tesla, Inc.	8.8%
United Parcel Service, Inc. — Class B	5.1%
Union Pacific Corp.	5.0%
Uber Technologies, Inc.	4.1%
FedEx Corp.	3.7%
General Motors Co.	3.7%
CSX Corp.	3.6%
Norfolk Southern Corp.	3.4%
NIO, Inc. ADR	2.6%
Southwest Airlines Co.	2.5%
Top Ten Total	42.5%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 143

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	125.41%	16.42%	13.56%
A-Class Shares	124.81%	16.13%	13.28%
A-Class Shares with sales charge‡	114.13%	15.00%	12.73%
C-Class Shares	123.15%	15.26%	12.44%
C-Class Shares with CDSC§	122.15%	15.26%	12.44%
H-Class Shares**	124.86%	16.12%	13.16%
S&P 500 Industrials Index	69.61%	13.72%	12.23%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The 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
‡	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 ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Transportation - 41.2%
United Parcel Service, Inc. — Class B		22,881	$	3,889,541
Union Pacific Corp.		17,361		3,826,538
FedEx Corp.		9,904		2,813,132
CSX Corp.		28,629		2,760,408
Norfolk Southern Corp.		9,576		2,571,347
Old Dominion Freight Line, Inc.		6,982		1,678,543
Kansas City Southern		6,300		1,662,696
Expeditors International of Washington, Inc.		12,574		1,354,094
J.B. Hunt Transport Services, Inc.		7,943		1,334,980
CH Robinson Worldwide, Inc.		11,620		1,108,897
XPO Logistics, Inc.*		8,806		1,085,780
ZTO Express Cayman, Inc. ADR		31,918		930,410
Canadian Pacific Railway Ltd.1		2,372		899,676
Knight-Swift Transportation Holdings, Inc.		18,640		896,398
Canadian National Railway Co.		7,686		891,422
Saia, Inc.*		3,367		776,363
Landstar System, Inc.		4,701		775,947
Ryder System, Inc.		8,311		628,727
Werner Enterprises, Inc.		11,830		558,021
Kirby Corp.*		9,255		557,891
Atlas Air Worldwide Holdings, Inc.*		6,840		413,410
Total Transportation				31,414,221
Auto Manufacturers - 19.7%
Tesla, Inc.*		10,069		6,725,387
General Motors Co.*		48,694		2,797,957
NIO, Inc. ADR*		51,610		2,011,758
Ferrari N.V.		4,500		941,760
Stellantis N.V.		47,282		841,147
Nikola Corp.*,1		50,630		703,251
Fisker, Inc.*		36,560		629,563
Workhorse Group, Inc.*,1		27,870		383,770
Total Auto Manufacturers				15,034,593
Auto Parts & Equipment - 14.2%
QuantumScape Corp.*,1		24,970		1,117,408
Aptiv plc*		7,692		1,060,727
BorgWarner, Inc.		22,007		1,020,245
Lear Corp.		5,530		1,002,312
Gentex Corp.		25,563		911,832
Magna International, Inc.		9,821		864,641
Autoliv, Inc.*		9,216		855,245
Luminar Technologies, Inc.*,1		34,530		839,424
Fox Factory Holding Corp.*		5,516		700,863
Adient plc*		14,361		634,756
Goodyear Tire & Rubber Co.*		35,930		631,290
Dana, Inc.		23,425		569,930
Visteon Corp.*		4,518		550,970
Faurecia SE*		659		35,109
Total Auto Parts & Equipment				10,794,752
Airlines - 13.9%
Southwest Airlines Co.*		30,608		1,868,924
Delta Air Lines, Inc.*		35,421		1,710,126
United Airlines Holdings, Inc.*		22,509		1,295,168
American Airlines Group, Inc.*		50,050		1,196,195
Alaska Air Group, Inc.*		13,052		903,329
Ryanair Holdings plc ADR*		7,524		865,260
Copa Holdings S.A. — Class A*		9,866		797,074
JetBlue Airways Corp.*		38,430		781,666
Allegiant Travel Co. — Class A*		2,477		604,537
Spirit Airlines, Inc.*		15,624		576,526
Total Airlines				10,598,805
Internet - 5.9%
Uber Technologies, Inc.*		56,760		3,093,988
Lyft, Inc. — Class A*		21,935		1,385,853
Total Internet				4,479,841
Home Builders - 2.4%
Thor Industries, Inc.		6,101		822,049
LCI Industries		4,100		542,348
Winnebago Industries, Inc.		6,270		480,971
Total Home Builders				1,845,368
Leisure Time - 1.1%
Harley-Davidson, Inc.		20,284		813,388
Commercial Services - 0.9%
Avis Budget Group, Inc.*		10,025		727,213
Total Common Stocks
(Cost $53,382,650)				75,708,181
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	243,664		243,664
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		110,781		110,781
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		101,105		101,105
Total Repurchase Agreements
(Cost $455,550)				455,550

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
TRANSPORTATION FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 3.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		2,639,008	$	2,639,008
Total Securities Lending Collateral
(Cost $2,639,008)				2,639,008
Total Investments - 103.4%
(Cost $56,477,208)			$	78,802,739
Other Assets & Liabilities, net - (3.4)%				(2,612,740	)
Total Net Assets - 100.0%			$	76,189,999

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	75,708,181	$	—	$	—	$	75,708,181
Repurchase Agreements		—		455,550		—		455,550
Securities Lending Collateral		2,639,008		—		—		2,639,008
Total Assets	$	78,347,189	$	455,550	$	—	$	78,802,739

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $2,616,657 of securities loaned (cost $56,021,658)	$	78,347,189
Repurchase agreements, at value (cost $455,550)		455,550
Cash		2,083
Receivables:
Fund shares sold		217,390
Dividends		18,690
Securities lending income		1,354
Foreign tax reclaims		117
Total assets		79,042,373
Liabilities:
Payable for:
Return of securities lending collateral		2,639,008
Fund shares redeemed		60,573
Management fees		50,766
Transfer agent and administrative fees		16,066
Portfolio accounting fees		5,972
Distribution and service fees		3,518
Trustees’ fees*		1,076
Miscellaneous		75,395
Total liabilities		2,852,374
Commitments and contingent liabilities (Note 10)		—
Net assets	$	76,189,999
Net assets consist of:
Paid in capital	$	55,137,645
Total distributable earnings (loss)		21,052,354
Net assets	$	76,189,999
Investor Class:
Net assets	$	65,281,223
Capital shares outstanding		774,613
Net asset value per share	$	84.28
A-Class:
Net assets	$	7,785,251
Capital shares outstanding		102,403
Net asset value per share	$	76.03
Maximum offering price per share (Net asset value divided by 95.25%)	$	79.82
C-Class:
Net assets	$	1,954,079
Capital shares outstanding		29,042
Net asset value per share	$	67.28
H-Class:
Net assets	$	1,169,446
Capital shares outstanding		15,905
Net asset value per share	$	73.53

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $4,972)	$	414,492
Interest		110
Income from securities lending, net		12,906
Total investment income		427,508
Expenses:
Management fees		326,247
Distribution and service fees:
A-Class		11,368
C-Class		11,850
H-Class		2,180
Transfer agent and administrative fees		105,266
Portfolio accounting fees		38,388
Registration fees		29,831
Professional fees		13,955
Custodian fees		5,181
Trustees’ fees*		3,644
Line of credit fees		71
Miscellaneous		20,574
Total expenses		568,555
Net investment loss		(141,047	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,044,541
Net realized gain		2,044,541
Net change in unrealized appreciation (depreciation) on:
Investments		22,930,104
Net change in unrealized appreciation (depreciation)		22,930,104
Net realized and unrealized gain		24,974,645
Net increase in net assets resulting from operations	$	24,833,598

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(141,047	)	$	57,459
Net realized gain on investments		2,044,541			1,024,892
Net change in unrealized appreciation (depreciation) on investments		22,930,104			(3,939,790	)
Net increase (decrease) in net assets resulting from operations		24,833,598			(2,857,439	)
Distributions to shareholders:
Investor Class		—			(342,945	)
A-Class		—			(187,023	)
C-Class		—			(58,531	)
H-Class		—			(21,428	)
Total distributions to shareholders		—			(609,927	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		122,795,894			61,127,966
A-Class		6,706,823			7,233,790
C-Class		1,739,055			1,125,341
H-Class		3,126,338			10,568,259
Distributions reinvested
Investor Class		—			328,816
A-Class		—			182,137
C-Class		—			57,266
H-Class		—			20,968
Cost of shares redeemed
Investor Class		(80,971,211	)		(63,728,261	)
A-Class		(3,846,052	)		(8,147,172	)
C-Class		(1,281,133	)		(1,742,657	)
H-Class		(2,910,829	)		(10,652,942	)
Net increase (decrease) from capital share transactions		45,358,885			(3,626,489	)
Net increase (decrease) in net assets		70,192,483			(7,093,855	)
Net assets:
Beginning of year		5,997,516			13,091,371
End of year	$	76,189,999		$	5,997,516
Capital share activity:
Shares sold
Investor Class		1,966,468			1,157,931
A-Class		113,534			147,945
C-Class		36,253			26,473
H-Class		59,463			236,551
Shares issued from reinvestment of distributions
Investor Class		—			6,317
A-Class		—			3,866
C-Class		—			1,360
H-Class		—			460
Shares redeemed
Investor Class		(1,279,662	)		(1,236,077	)
A-Class		(63,091	)		(169,311	)
C-Class		(28,171	)		(42,772	)
H-Class		(53,494	)		(237,384	)
Net increase (decrease) in shares		751,300			(104,641	)

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	37.39		$	50.08		$	59.10		$	53.52		$	46.23
Income (loss) from investment operations:
Net investment income (loss)a		(.20	)		.30			.09			(.04	)		.09
Net gain (loss) on investments (realized and unrealized)		47.09			(11.07	)		(4.02	)		6.85			7.37
Total from investment operations		46.89			(10.77	)		(3.93	)		6.81			7.46
Less distributions from:
Net investment income		—			(.15	)		—			—			(.17	)
Net realized gains		—			(1.77	)		(5.09	)		(1.23	)		—
Total distributions		—			(1.92	)		(5.09	)		(1.23	)		(.17	)
Net asset value, end of period	$	84.28		$	37.39		$	50.08		$	59.10		$	53.52
Total Return		125.41	%		(22.59	%)		(6.33	%)		12.67	%		16.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	65,281		$	3,283		$	7,994		$	16,603		$	32,911
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		0.58	%		0.16	%		(0.07	%)		0.17	%
Total expenses		1.41	%		1.48	%		1.46	%		1.37	%		1.38	%
Portfolio turnover rate		205	%		483	%		476	%		483	%		676	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	33.82		$	45.58		$	54.43		$	49.50		$	42.87
Income (loss) from investment operations:
Net investment income (loss)a		(.34	)		.17			(.01	)		(.07	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		42.55			(10.01	)		(3.75	)		6.23			6.86
Total from investment operations		42.21			(9.84	)		(3.76	)		6.16			6.80
Less distributions from:
Net investment income		—			(.15	)		—			—			(.17	)
Net realized gains		—			(1.77	)		(5.09	)		(1.23	)		—
Total distributions		—			(1.92	)		(5.09	)		(1.23	)		(.17	)
Net asset value, end of period	$	76.03		$	33.82		$	45.58		$	54.43		$	49.50
Total Returnb		124.81	%		(22.78	%)		(6.57	%)		12.38	%		15.87	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,785		$	1,757		$	3,166		$	5,760		$	4,742
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		0.37	%		(0.03	%)		(0.12	%)		(0.12	%)
Total expenses		1.68	%		1.73	%		1.71	%		1.63	%		1.63	%
Portfolio turnover rate		205	%		483	%		476	%		483	%		676	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.15		$	41.14		$	50.04		$	45.93		$	40.09
Income (loss) from investment operations:
Net investment income (loss)a		(.67	)		(.18	)		(.41	)		(.43	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		37.80			(8.89	)		(3.40	)		5.77			6.35
Total from investment operations		37.13			(9.07	)		(3.81	)		5.34			6.01
Less distributions from:
Net investment income		—			(.15	)		—			—			(.17	)
Net realized gains		—			(1.77	)		(5.09	)		(1.23	)		—
Total distributions		—			(1.92	)		(5.09	)		(1.23	)		(.17	)
Net asset value, end of period	$	67.28		$	30.15		$	41.14		$	50.04		$	45.93
Total Returnb		123.15	%		(23.37	%)		(7.27	%)		11.56	%		15.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,954		$	632		$	1,477		$	2,560		$	2,307
Ratios to average net assets:
Net investment income (loss)		(1.33	%)		(0.43	%)		(0.87	%)		(0.87	%)		(0.81	%)
Total expenses		2.43	%		2.48	%		2.46	%		2.38	%		2.38	%
Portfolio turnover rate		205	%		483	%		476	%		483	%		676	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	32.70		$	44.14		$	52.90		$	48.15		$	41.71
Income (loss) from investment operations:
Net investment income (loss)a		(.32	)		(.02	)		(.02	)		(.13	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		41.15			(9.50	)		(3.65	)		6.11			6.74
Total from investment operations		40.83			(9.52	)		(3.67	)		5.98			6.61
Less distributions from:
Net investment income		—			(.15	)		—			—			(.17	)
Net realized gains		—			(1.77	)		(5.09	)		(1.23	)		—
Total distributions		—			(1.92	)		(5.09	)		(1.23	)		(.17	)
Net asset value, end of period	$	73.53		$	32.70		$	44.14		$	52.90		$	48.15
Total Return		124.86	%		(22.78	%)		(6.61	%)		12.33	%		15.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,169		$	325		$	455		$	1,929		$	4,127
Ratios to average net assets:
Net investment income (loss)		(0.56	%)		(0.03	%)		(0.04	%)		(0.24	%)		(0.30	%)
Total expenses		1.68	%		1.72	%		1.69	%		1.63	%		1.63	%
Portfolio turnover rate		205	%		483	%		476	%		483	%		676	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

UTILITIES FUND

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

For the one-year period ended March 31, 2021, Utilities Fund Investor Class returned 17.17%, compared with 19.42% for the S&P 500 Utilities Index. The broader S&P 500 Index returned 56.35%.

All industries contributed to return, led by electric utilities, multi-utilities, and independent power producers & energy.

NextEra Energy, Inc., AES Corp., and Duke Energy Corp. contributed the most to the Fund’s return for the period. FirstEnergy Corp., Sunnova Energy International, Inc., and Ormat Technologies, Inc. detracted the most from return.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 3, 2000
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.	6.3%
Duke Energy Corp.	4.4%
Southern Co.	4.1%
Dominion Energy, Inc.	4.0%
Exelon Corp.	3.3%
American Electric Power Company, Inc.	3.3%
Sempra Energy	3.1%
Xcel Energy, Inc.	3.1%
Eversource Energy	2.8%
WEC Energy Group, Inc.	2.8%
Top Ten Total	37.2%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 151

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	17.17%	6.84%	8.86%
A-Class Shares	16.91%	6.57%	8.59%
A-Class Shares with sales charge‡	11.36%	5.54%	8.06%
C-Class Shares	16.02%	5.78%	7.77%
C-Class Shares with CDSC§	15.02%	5.78%	7.77%
H-Class Shares**	16.92%	6.58%	8.48%
S&P 500 Utilities Index	19.42%	8.92%	11.27%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Utilities Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance of 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.
‡	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.

152 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Electric - 83.0%
NextEra Energy, Inc.		24,810	$	1,875,884
Duke Energy Corp.		13,645		1,317,152
Southern Co.		19,763		1,228,468
Dominion Energy, Inc.		15,648		1,188,622
Exelon Corp.		22,609		988,918
American Electric Power Company, Inc.		11,590		981,673
Sempra Energy		7,052		934,954
Xcel Energy, Inc.		13,870		922,494
Eversource Energy		9,700		839,923
WEC Energy Group, Inc.		8,950		837,631
Public Service Enterprise Group, Inc.		13,880		835,715
Consolidated Edison, Inc.		10,293		769,916
DTE Energy Co.		5,775		768,883
PG&E Corp.*		62,639		733,503
Edison International		12,029		704,899
PPL Corp.		24,058		693,833
Ameren Corp.		8,384		682,122
Entergy Corp.		6,767		673,113
FirstEnergy Corp.		18,724		649,536
AES Corp.		24,141		647,220
CMS Energy Corp.		10,545		645,565
Avangrid, Inc.		12,033		599,364
Alliant Energy Corp.		10,386		562,506
Evergy, Inc.		9,295		553,331
CenterPoint Energy, Inc.		23,695		536,692
NRG Energy, Inc.		12,257		462,457
Pinnacle West Capital Corp.		5,626		457,675
Vistra Corp.		25,372		448,577
OGE Energy Corp.		11,723		379,356
IDACORP, Inc.		3,367		336,599
Ormat Technologies, Inc.		4,030		316,476
Portland General Electric Co.		6,511		309,077
PNM Resources, Inc.		6,277		307,887
Black Hills Corp.		4,611		307,876
NorthWestern Corp.		4,216		274,883
Total Electric				24,772,780
Gas - 9.7%
Atmos Energy Corp.		5,536		547,234
NiSource, Inc.		19,272		464,648
UGI Corp.		10,708		439,135
National Fuel Gas Co.		6,446		322,236
ONE Gas, Inc.		3,991		306,948
Southwest Gas Holdings, Inc.		4,351		298,957
Spire, Inc.		3,941		291,200
South Jersey Industries, Inc.		10,240		231,219
Total Gas				2,901,577
Water - 4.4%
American Water Works Company, Inc.		5,403		810,018
Essential Utilities, Inc.		11,364		508,539
Total Water				1,318,557
Building Materials - 1.3%
MDU Resources Group, Inc.		12,036		380,458
Energy-Alternate Sources - 1.1%
Sunnova Energy International, Inc.*		8,440		344,521
Total Common Stocks
(Cost $23,811,879)				29,717,893
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.3%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	52,354		52,354
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		23,803		23,803
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		21,723		21,723
Total Repurchase Agreements
(Cost $97,880)				97,880
Total Investments - 99.8%
(Cost $23,909,759)			$	29,815,773
Other Assets & Liabilities, net - 0.2%				47,570
Total Net Assets - 100.0%			$	29,863,343

*	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 6.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
UTILITIES FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	29,717,893	$	—	$	—	$	29,717,893
Repurchase Agreements		—		97,880		—		97,880
Total Assets	$	29,717,893	$	97,880	$	—	$	29,815,773

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $23,811,879)	$	29,717,893
Repurchase agreements, at value (cost $97,880)		97,880
Receivables:
Securities sold		2,441,081
Fund shares sold		503,268
Dividends		66,325
Total assets		32,826,447
Liabilities:
Payable for:
Fund shares redeemed		2,893,818
Management fees		22,284
Transfer agent and administrative fees		7,052
Distribution and service fees		3,674
Portfolio accounting fees		2,622
Trustees’ fees*		474
Miscellaneous		33,180
Total liabilities		2,963,104
Commitments and contingent liabilities (Note10)		—
Net assets	$	29,863,343
Net assets consist of:
Paid in capital	$	28,333,251
Total distributable earnings (loss)		1,530,092
Net assets	$	29,863,343
Investor Class:
Net assets	$	21,099,071
Capital shares outstanding		440,260
Net asset value per share	$	47.92
A-Class:
Net assets	$	5,398,623
Capital shares outstanding		123,488
Net asset value per share	$	43.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.90
C-Class:
Net assets	$	2,646,189
Capital shares outstanding		73,834
Net asset value per share	$	35.84
H-Class:
Net assets	$	719,460
Capital shares outstanding		17,115
Net asset value per share	$	42.04

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	1,174,286
Interest		95
Income from securities lending, net		2
Total investment income		1,174,383
Expenses:
Management fees		320,784
Distribution and service fees:
A-Class		10,558
C-Class		43,013
H-Class		2,587
Transfer agent and administrative fees		107,557
Portfolio accounting fees		37,748
Registration fees		37,573
Professional fees		23,096
Trustees’ fees*		11,529
Custodian fees		5,829
Line of credit fees		237
Miscellaneous		3,122
Total expenses		603,633
Net investment income		570,750
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		189,416
Net realized gain		189,416
Net change in unrealized appreciation (depreciation) on:
Investments		5,182,811
Net change in unrealized appreciation (depreciation)		5,182,811
Net realized and unrealized gain		5,372,227
Net increase in net assets resulting from operations	$	5,942,977

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

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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	570,750		$	1,394,736
Net realized gain on investments		189,416			9,293,608
Net change in unrealized appreciation (depreciation) on investments		5,182,811			(14,274,698	)
Net increase (decrease) in net assets resulting from operations		5,942,977			(3,586,354	)
Distributions to shareholders:
Investor Class		(523,813	)		(798,786	)
A-Class		(93,655	)		(57,991	)
C-Class		(122,577	)		(78,736	)
H-Class		(17,476	)		(30,409	)
Total distributions to shareholders		(757,521	)		(965,922	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		70,298,851			218,676,498
A-Class		2,254,597			4,286,695
C-Class		1,628,826			3,360,227
H-Class		662,559			17,514,422
Distributions reinvested
Investor Class		520,135			795,101
A-Class		90,597			55,451
C-Class		119,470			77,101
H-Class		17,423			30,102
Cost of shares redeemed
Investor Class		(87,712,328	)		(287,798,066	)
A-Class		(1,773,796	)		(5,302,118	)
C-Class		(4,696,303	)		(4,212,655	)
H-Class		(2,549,969	)		(20,710,730	)
Net decrease from capital share transactions		(21,139,938	)		(73,227,972	)
Net decrease in net assets		(15,954,482	)		(77,780,248	)
Net assets:
Beginning of year		45,817,825			123,598,073
End of year	$	29,863,343		$	45,817,825
Capital share activity:
Shares sold
Investor Class		1,543,484			4,503,840
A-Class		53,928			99,339
C-Class		47,899			90,910
H-Class		16,939			411,293
Shares issued from reinvestment of distributions
Investor Class		11,394			16,472
A-Class		2,174			1,253
C-Class		3,488			2,093
H-Class		435			707
Shares redeemed
Investor Class		(1,929,734	)		(5,986,116	)
A-Class		(42,912	)		(122,823	)
C-Class		(137,703	)		(114,995	)
H-Class		(66,113	)		(493,579	)
Net decrease in shares		(496,721	)		(1,591,606	)

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	41.80		$	46.23		$	39.03		$	39.34		$	40.23
Income (loss) from investment operations:
Net investment income (loss)a		.76			.74			.77			.68			.59
Net gain (loss) on investments (realized and unrealized)		6.37			(4.72	)		6.43			.06			2.25
Total from investment operations		7.13			(3.98	)		7.20			.74			2.84
Less distributions from:
Net investment income		(1.01	)		(.45	)		—			(.53	)		(.87	)
Net realized gains		—			—			—			(.52	)		(2.86	)
Total distributions		(1.01	)		(.45	)		—			(1.05	)		(3.73	)
Net asset value, end of period	$	47.92		$	41.80		$	46.23		$	39.03		$	39.34
Total Return		17.17	%		(8.74	%)		18.45	%		1.72	%		8.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,099		$	34,073		$	105,443		$	9,006		$	24,116
Ratios to average net assets:
Net investment income (loss)		1.68	%		1.53	%		1.80	%		1.67	%		1.47	%
Total expenses		1.45	%		1.48	%		1.48	%		1.38	%		1.38	%
Portfolio turnover rate		156	%		169	%		390	%		452	%		507	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	38.30		$	42.50		$	35.97		$	36.43		$	37.63
Income (loss) from investment operations:
Net investment income (loss)a		.57			.57			.47			.54			.45
Net gain (loss) on investments (realized and unrealized)		5.86			(4.32	)		6.06			.05			2.08
Total from investment operations		6.43			(3.75	)		6.53			.59			2.53
Less distributions from:
Net investment income		(1.01	)		(.45	)		—			(.53	)		(.87	)
Net realized gains		—			—			—			(.52	)		(2.86	)
Total distributions		(1.01	)		(.45	)		—			(1.05	)		(3.73	)
Net asset value, end of period	$	43.72		$	38.30		$	42.50		$	35.97		$	36.43
Total Returnb		16.91	%		(8.96	%)		18.15	%		1.45	%		7.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,399		$	4,225		$	5,633		$	3,482		$	9,362
Ratios to average net assets:
Net investment income (loss)		1.39	%		1.29	%		1.21	%		1.43	%		1.20	%
Total expenses		1.70	%		1.73	%		1.72	%		1.63	%		1.63	%
Portfolio turnover rate		156	%		169	%		390	%		452	%		507	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 157

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	31.80		$	35.63		$	30.39		$	31.15		$	32.96
Income (loss) from investment operations:
Net investment income (loss)a		.21			.21			.26			.25			.22
Net gain (loss) on investments (realized and unrealized)		4.84			(3.59	)		4.98			.04			1.70
Total from investment operations		5.05			(3.38	)		5.24			.29			1.92
Less distributions from:
Net investment income		(1.01	)		(.45	)		—			(.53	)		(.87	)
Net realized gains		—			—			—			(.52	)		(2.86	)
Total distributions		(1.01	)		(.45	)		—			(1.05	)		(3.73	)
Net asset value, end of period	$	35.84		$	31.80		$	35.63		$	30.39		$	31.15
Total Returnb		16.02	%		(9.65	%)		17.24	%		0.69	%		6.97	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,646		$	5,093		$	6,489		$	6,526		$	8,270
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.57	%		0.79	%		0.78	%		0.69	%
Total expenses		2.45	%		2.47	%		2.46	%		2.38	%		2.37	%
Portfolio turnover rate		156	%		169	%		390	%		452	%		507	%

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	36.86		$	40.92		$	34.64		$	35.12		$	36.40
Income (loss) from investment operations:
Net investment income (loss)a		.42			.50			.57			.31			.41
Net gain (loss) on investments (realized and unrealized)		5.77			(4.11	)		5.71			.26			2.04
Total from investment operations		6.19			(3.61	)		6.28			.57			2.45
Less distributions from:
Net investment income		(1.01	)		(.45	)		—			(.53	)		(.87	)
Net realized gains		—			—			—			(.52	)		(2.86	)
Total distributions		(1.01	)		(.45	)		—			(1.05	)		(3.73	)
Net asset value, end of period	$	42.04		$	36.86		$	40.92		$	34.64		$	35.12
Total Return		16.92	%		(8.97	%)		18.13	%		1.44	%		7.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	719		$	2,427		$	6,033		$	810		$	5,379
Ratios to average net assets:
Net investment income (loss)		1.08	%		1.18	%		1.51	%		0.85	%		1.13	%
Total expenses		1.72	%		1.73	%		1.72	%		1.63	%		1.62	%
Portfolio turnover rate		156	%		169	%		390	%		452	%		507	%

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

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

NOTES TO FINANCIAL STATEMENTS

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 (each, a “Fund”). The Trust may issue an unlimited number of authorized 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. 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 March 31, 2021, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Banking Fund	Diversified
Basic Materials Fund	Diversified
Biotechnology Fund	Non-diversified
Consumer Products Fund	Diversified
Electronics Fund	Non-diversified
Energy Fund	Diversified
Energy Services Fund	Non-diversified
Financial Services Fund	Diversified
Health Care Fund	Diversified
Internet Fund	Diversified
Leisure Fund	Diversified
Precious Metals Fund	Non-diversified
Real Estate Fund	Diversified
Retailing Fund	Diversified
Technology Fund	Diversified
Telecommunications Fund	Non-diversified
Transportation Fund	Diversified
Utilities Fund	Diversified

At March 31, 2021, Investor Class, A-Class, C-Class and H-Class shares have been issued by the Funds.

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

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

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

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 RYDEX FUNDS ANNUAL REPORT | 159

NOTES TO FINANCIAL STATEMENTS (continued)

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 a fund is calculated by dividing the market value of a 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 and other assets 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 or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds are valued at the last quoted sale price.

Repurchase agreements are generally 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, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’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 U.S. Treasury securities, 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 gain or loss and unrealized appreciation or depreciation 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 appreciation and depreciation arise

160 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 Statements 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 March 31, 2021, 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 a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. 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 Real Estate Investment Trusts (“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 realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(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 U.S. federal 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 appreciation and depreciation 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 based on the respective 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 0.06% at March 31, 2021.

(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 – Investment Advisory Agreement and Other Agreements

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	%

THE RYDEX FUNDS ANNUAL REPORT | 161

NOTES TO FINANCIAL STATEMENTS (continued)

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
>$1 billion - $2 billion		0.050	%
>$2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

For the year ended March 31, 2021, GFD retained sales charges of $128,465 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets 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 or federal excise 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 U.S. 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’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

162 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Banking Fund	$	273,567	$	—	$	273,567
Basic Materials Fund		836,677		424,181		1,260,858
Biotechnology Fund		530,216		13,301,693		13,831,909
Consumer Products Fund		2,597,990		6,624,818		9,222,808
Electronics Fund		—		946,545		946,545
Energy Fund		292,058		—		292,058
Energy Services Fund		84,822		—		84,822
Health Care Fund		3,450,206		—		3,450,206
Precious Metals Fund		1,480,043		—		1,480,043
Real Estate Fund		261,411		—		261,411
Technology Fund		—		1,060,519		1,060,519
Telecommunications Fund		53,596		—		53,596
Utilities Fund		757,521		—		757,521

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Banking Fund	$	179,656	$	—	$	179,656
Basic Materials Fund		1,119,758		341,784		1,461,542
Biotechnology Fund		—		9,558,792		9,558,792
Consumer Products Fund		2,524,545		1,441,214		3,965,759
Electronics Fund		7,066		—		7,066
Energy Fund		148,596		—		148,596
Energy Services Fund		8,234		—		8,234
Financial Services Fund		115,290		—		115,290
Internet Fund		—		903,814		903,814
Leisure Fund		41,159		—		41,159
Precious Metals Fund		2,055,112		—		2,055,112
Real Estate Fund		248,692		—		248,692
Technology Fund		—		329,115		329,115
Telecommunications Fund		153,139		—		153,139
Transportation Fund		139,337		470,590		609,927
Utilities Fund		965,922		—		965,922

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

THE RYDEX FUNDS ANNUAL REPORT | 163

NOTES TO FINANCIAL STATEMENTS (continued)

The tax components of distributable earnings/(loss) as of March 31, 2021 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Other Temporary Differences			Total
Banking Fund	$	173,043	$	—	$	2,234,379		$	(10,294,700	)	$	—		$	(7,887,278	)
Basic Materials Fund		993,080		—		13,809,930			—			(130,382	)		14,672,628
Biotechnology Fund		20,768,447		10,318,863		81,794,217			—			—			112,881,527
Consumer Products Fund		2,026,650		6,050,582		49,646,461			—			—			57,723,693
Electronics Fund		2,818,384		158,561		24,486,542			—			—			27,463,487
Energy Fund		306,823		—		(4,348,110	)		(21,892,552	)		—			(25,933,839	)
Energy Services Fund		31,147		—		(4,600,756	)		(31,215,944	)		—			(35,785,553	)
Financial Services Fund		440,761		—		5,335,265			—			—			5,776,026
Health Care Fund		2,349,865		—		7,679,066			—			—			10,028,931
Internet Fund		5,759,963		—		12,431,990			—			—			18,191,953
Leisure Fund		1,045,171		—		8,161,132			—			—			9,206,303
Precious Metals Fund		4,119,129		—		2,217,570			(25,522,142	)		(276,532	)		(19,461,975	)
Real Estate Fund		30,821		—		564,727			(6,325,560	)		—			(5,730,012	)
Retailing Fund		2,322,882		—		6,827,945			—			—			9,150,827
Technology Fund		6,840,735		—		28,780,365			—			—			35,621,100
Telecommunications Fund		5,248		—		125,937			(1,856,864	)		—			(1,725,679	)
Transportation Fund		1,787,255		—		19,265,099			—			—			21,052,354
Utilities Fund		570,750		—		1,979,586			(1,020,244	)		—			1,530,092

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of March 31, 2021, capital loss carryforwards for the Funds were as follows:

	Unlimited
Fund		Short-Term			Long-Term			Total Capital Loss Carryforward
Banking Fund	$	(8,822,994	)	$	(1,471,706	)	$	(10,294,700	)
Energy Fund		(6,034,653	)		(15,857,899	)		(21,892,552	)
Energy Services Fund		(18,418,782	)		(12,797,162	)		(31,215,944	)
Precious Metals Fund		(1,028,615	)		(24,493,527	)		(25,522,142	)
Real Estate Fund		(3,734,149	)		(2,591,411	)		(6,325,560	)
Telecommunications Fund		(1,399,410	)		(457,454	)		(1,856,864	)
Utilities Fund		—			(1,020,244	)		(1,020,244	)

For the year ended March 31, 2021, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Basic Materials Fund	$	1,606,895
Internet Fund		1,122,826
Precious Metals Fund		5,839,853

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, losses deferred due to wash sales, distributions in connection with redemption of fund shares, and the “mark-to-market,” recharacterization, or disposition of certain Passive Foreign Investment Companies (PFICs). Additional differences may result from the tax treatment of net operating losses, certain corporate actions, and foreign capital gains taxes. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

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The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2021 for permanent book/tax differences:

Fund	Paid In Capital		Total Distributable Earnings/(Loss)
Basic Materials Fund	$	136,269	$	(136,269	)
Biotechnology Fund		18,833,106		(18,833,106	)
Consumer Products Fund		4,655,282		(4,655,282	)
Electronics Fund		5,990,907		(5,990,907	)
Financial Services Fund		342,008		(342,008	)
Health Care Fund		6,082,516		(6,082,516	)
Internet Fund		5,593,174		(5,593,174	)
Leisure Fund		389,279		(389,279	)
Retailing Fund		2,234,406		(2,234,406	)
Technology Fund		7,103,356		(7,103,356	)
Transportation Fund		476,973		(476,973	)

At March 31, 2021, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Tax Unrealized Appreciation/ (Depreciation)
Banking Fund	$	16,474,923	$	2,266,319	$	(31,940	)	$	2,234,379
Basic Materials Fund		35,898,002		13,953,406		(143,476	)		13,809,930
Biotechnology Fund		113,674,389		89,502,726		(7,708,509	)		81,794,217
Consumer Products Fund		60,256,502		49,646,461		—			49,646,461
Electronics Fund		48,978,010		24,519,526		(32,984	)		24,486,542
Energy Fund		27,297,857		—		(4,348,110	)		(4,348,110	)
Energy Services Fund		11,244,027		—		(4,600,756	)		(4,600,756	)
Financial Services Fund		34,675,726		5,388,568		(53,303	)		5,335,265
Health Care Fund		24,292,416		7,965,810		(286,744	)		7,679,066
Internet Fund		21,247,722		12,980,205		(548,215	)		12,431,990
Leisure Fund		45,638,778		8,288,404		(127,272	)		8,161,132
Precious Metals Fund		110,985,140		3,972,452		(1,754,882	)		2,217,570
Real Estate Fund		11,608,518		656,096		(91,369	)		564,727
Retailing Fund		21,681,165		6,886,007		(58,062	)		6,827,945
Technology Fund		24,636,165		29,096,170		(315,805	)		28,780,365
Telecommunications Fund		2,558,748		165,034		(39,097	)		125,937
Transportation Fund		59,537,640		20,411,619		(1,146,520	)		19,265,099
Utilities Fund		27,836,187		2,030,597		(51,011	)		1,979,586

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.).

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NOTES TO FINANCIAL STATEMENTS (continued)

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 – Securities Transactions

For the year ended March 31, 2021, the cost of purchases and proceeds from sales of investment securities, excluding short-term investments, were as follows:

Fund	Purchases		Sales
Banking Fund	$	88,981,321	$	97,745,488
Basic Materials Fund		65,877,984		57,545,952
Biotechnology Fund		240,233,404		277,968,919
Consumer Products Fund		43,934,899		73,341,187
Electronics Fund		80,876,152		86,900,826
Energy Fund		142,328,131		131,486,680
Energy Services Fund		35,752,537		33,622,620
Financial Services Fund		64,541,284		41,691,919
Health Care Fund		130,903,333		141,471,041
Internet Fund		130,114,314		138,674,086
Leisure Fund		66,383,044		29,236,153
Precious Metals Fund		314,093,241		302,562,053
Real Estate Fund		33,464,098		25,888,616
Retailing Fund		77,198,706		67,242,762
Technology Fund		122,045,490		139,774,698
Telecommunications Fund		12,181,120		14,205,434
Transportation Fund		120,871,333		76,034,359
Utilities Fund		58,836,886		80,125,872

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. 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

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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 year ended March 31, 2021, 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	$	7,004,833	$	11,488,328	$	144,590
Basic Materials Fund		4,686,844		3,453,925		138,558
Biotechnology Fund		7,711,906		10,046,249		772,736
Consumer Products Fund		1,762,526		8,745,313		2,161,370
Electronics Fund		16,916,418		11,756,159		1,438,314
Energy Fund		8,481,778		9,619,549		(50,141	)
Energy Services Fund		5,608,979		6,341,949		(748,747	)
Financial Services Fund		10,811,228		7,412,580		(174,543	)
Health Care Fund		8,391,241		19,869,281		1,646,840
Internet Fund		11,676,665		28,142,385		2,642,520
Leisure Fund		13,257,900		2,588,271		60,305
Precious Metals Fund		8,279,428		7,870,669		(95,866	)
Real Estate Fund		2,193,441		4,056,302		(61,490	)
Retailing Fund		10,179,264		5,248,103		216,099
Technology Fund		17,310,984		37,389,126		3,001,966
Telecommunications Fund		1,593,090		1,986,336		42,412
Transportation Fund		8,024,576		5,586,619		546,173
Utilities Fund		2,100,238		5,003,078		126,266

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 March 31, 2021, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Bond
0.01%					2.38%
Due 04/01/21	$	124,999,036	$	124,999,053	11/15/49	$	126,141,600	$	127,499,092
Barclays Capital, Inc.					U.S. Treasury Inflation Indexed Bond
0.01%					0.13%
Due 04/01/21		56,830,637		56,830,653	02/15/51		57,053,077		57,967,257
BofA Securities, Inc.					U.S. Treasury Note
0.01%					0.38%
Due 04/01/21		51,866,820		51,866,827	04/30/25		53,449,300		52,904,236

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.

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NOTES TO FINANCIAL STATEMENTS (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 their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At March 31, 2021, 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	$	108,491	$	(108,491	)	$	—	$	115,144		$	—	$	115,144
Basic Materials Fund		844,355		(844,355	)		—		850,597			—		850,597
Biotechnology Fund		4,673,992		(4,514,930	)		159,062		4,514,930	*		—		4,514,930
Consumer Products Fund		1,487,292		(1,487,292	)		—		1,504,750			—		1,504,750
Electronics Fund		1,494,033		(1,476,009	)		18,024		1,476,009	*		—		1,476,009
Energy Fund		17,261		(17,261	)		—		17,740			—		17,740
Energy Services Fund		99,992		(99,992	)		—		101,115			—		101,115
Financial Services Fund		430,876		(430,876	)		—		442,611			—		442,611
Health Care Fund		508,604		(504,567	)		4,037		504,567	*		—		504,567
Internet Fund		460,922		(455,086	)		5,836		455,086	*		—		455,086
Leisure Fund		866,939		(866,939	)		—		883,846			—		883,846
Precious Metals Fund		2,346,682		(2,325,137	)		21,545		2,325,137	*		—		2,325,137
Real Estate Fund		31,204		(31,204	)		—		32,671			—		32,671
Retailing Fund		265,813		(263,122	)		2,691		263,122	*		—		263,122
Technology Fund		608,783		(606,261	)		2,522		606,261	*		—		606,261
Telecommunications Fund		8,570		(8,570	)		—		8,570			—		8,570
Transportation Fund		2,616,657		(2,616,657	)		—		2,639,008			—		2,639,008

(a)	Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.
*	Subsequent to March 31, 2021, additional collateral was received.

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 – 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 expired June 8, 2020. On June 8, 2020, the line of credit agreement was renewed at an increased amount of $150,000,000 and expires on June 7, 2021. On February 10, 2021, the line of credit was increased from $150,000,000 to $200,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the year ended March 31, 2021. The Funds did not have any borrowings outstanding under this agreement at March 31, 2021.

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The average daily balances borrowed for the year ended March 31, 2021, were as follows:

Fund	Average Daily Balance
Banking Fund	$	312
Basic Materials Fund		2,121
Biotechnology Fund		21,027
Consumer Products Fund		521
Electronics Fund		37,233
Energy Fund		6,312
Energy Services Fund		2,888
Financial Services Fund		1,858
Health Care Fund		581
Internet Fund		3,945
Leisure Fund		945
Precious Metals Fund		8,378
Real Estate Fund		1,570
Retailing		279
Technology Fund		1,581
Telecommunications Fund		885
Transportation Fund		5,616
Utilities Fund		18,737

Note 9 – Reverse Share Splits

Effective on August 10, 2020, reverse share splits occurred for the following Funds:

Fund	Split Type
Energy Fund	One-for-Three Reverse Share Split
Energy Services Fund	One-for-Fifteen Reverse Share Split

The effect of these transactions was to divide the number of outstanding shares of the Energy Fund and the Energy Services Fund by their respective reverse 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 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.

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.

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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-2296 (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. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020. On July 6, 2020, plaintiffs filed a new petition for a writ of certiorari in the U.S. Supreme Court. In that petition, plaintiffs stated that “[t]o make it more likely that there will be a quorum for this petition,” they have “abandon[ed] the case and let the judgment below stand” with respect to certain defendants. That list did not include the Rydex Series Funds. Defendants filed an opposition to the certiorari petition on August 26, 2020, and plaintiffs filed a reply in support of the petition for certiorari on September 8, 2020. On March 12, 2021, the Solicitor General filed an amicus brief recommending that certiorari be denied. Plaintiffs filed a supplemental brief in response to the Solicitor General’s amicus brief on March 31, 2021, and Defendants filed a supplemental brief on April 1, 2021.

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 intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

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. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions.

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The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020. Plaintiff filed a reply brief on May 18, 2020. The Court held oral argument on August 24, 2020.

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.

Note 11 – COVID-19

The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, the financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in the Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

Note 12 – Subsequent Events

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds’ financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (collectively referred to as the “Funds”), (eighteen of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2021, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (eighteen of the funds constituting Rydex Series Funds) at March 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 26, 2021

172 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Federal Income Tax Information

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

In January 2022, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2021.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2021, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2021, the following funds had the corresponding percentages qualify as qualified short-term capital gains as permitted by IRC Section 871(k)(2). See qualified short-term capital gain column in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Short-Term Capital Gain
Banking Fund		100.00	%		100.00	%		0.00	%
Basic Materials Fund		36.45	%		17.83	%		100.00	%
Biotechnology Fund		0.00	%		0.00	%		100.00	%
Consumer Products Fund		100.00	%		96.91	%		100.00	%
Energy Fund		100.00	%		100.00	%		0.00	%
Energy Services Fund		100.00	%		100.00	%		0.00	%
Health Care Fund		4.73	%		3.43	%		100.00	%
Precious Metals Fund		15.47	%		9.48	%		0.00	%
Real Estate Fund		16.90	%		16.95	%		0.00	%
Telecommunications Fund		98.16	%		97.52	%		0.00	%
Utilities Fund		100.00	%		100.00	%		0.00	%

With respect to the taxable year ended March 31, 2021, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
Basic Materials Fund	$	424,181	$	—
Biotechnology Fund		13,301,693		18,833,106
Consumer Products Fund		6,624,818		4,655,282
Electronics Fund		946,545		5,990,907
Financial Services Fund		—		155,340
Health Care Fund		—		747,830
Internet Fund		—		1,632,406
Technology Fund		1,060,519		7,081,869

Final regulations dated June 24, 2020 enable a regulated investment company to pay Section 199A dividends to its shareholders. Section 199A, enacted as part of the Tax Cuts and Jobs Act of 2017, may allow non-corporate tax payers a deduction of up to 20% of qualified business income from flow-through entities, including dividends from real estate investment trusts. The qualifying percentage of the Fund’s ordinary income and short-term capital gain distributions, if any, for the purposes of the Section 199A deduction was 74.25% for Real Estate Fund.

THE RYDEX FUNDS ANNUAL REPORT | 173

OTHER INFORMATION (Unaudited)(concluded)

Delivery of Shareholder Reports

Paper copies of the Funds’ annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim funds held with your financial intermediary.

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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

174 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee and Chair of the Valuation Oversight Committee	Since 2019 (Trustee) Since 2020 (Chair of the Valuation Oversight Committee)	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Thomas F. Lydon, Jr. (1960)	Trustee and Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2020 (Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Of Counsel, Momkus LLP (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (2) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS ANNUAL REPORT | 175

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). Former: SSGA Master Trust (1) (2018-2020).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

176 | THE RYDEX FUNDS ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2019	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.
***	Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

THE RYDEX FUNDS ANNUAL REPORT | 177

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

178 | THE RYDEX FUNDS ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	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, Mutual Fund Administration for 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).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, 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 Chief Compliance Officer, 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); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

THE RYDEX FUNDS ANNUAL REPORT | 179

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, 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.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

180 | THE RYDEX FUNDS ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

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

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

THE RYDEX FUNDS ANNUAL REPORT | 181

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

182 | THE RYDEX FUNDS ANNUAL REPORT

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3.31.2021

Rydex Funds Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

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-ANN-0321x0322

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	28
INVERSE S&P 500® STRATEGY FUND	41
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	51
INVERSE NASDAQ-100® STRATEGY FUND	61
MID-CAP 1.5x STRATEGY FUND	71
INVERSE MID-CAP STRATEGY FUND	85
RUSSELL 2000® 1.5x STRATEGY FUND	93
RUSSELL 2000® FUND	102
INVERSE RUSSELL 2000® STRATEGY FUND	110
DOW JONES INDUSTRIAL AVERAGE® FUND	119
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	128
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	138
HIGH YIELD STRATEGY FUND	150
INVERSE HIGH YIELD STRATEGY FUND	161
U.S. GOVERNMENT MONEY MARKET FUND	169
NOTES TO FINANCIAL STATEMENTS	176
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	197
OTHER INFORMATION	198
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	200
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	205

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2021

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the 12-month period ended March 31, 2021.

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

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

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

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

Sincerely,

Security Investors, LLC

April 30, 2021

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.

COVID-19. The ongoing crisis caused by COVID-19 continues to materially impact local, national, and global economies in very unpredictable ways. Notably, it continues to disrupt supply chains, resulting in market closures, travel restrictions and quarantines. Investors should be aware that in light of this uncertainty, volatility and distress in economies, financial markets, and labor and health conditions all over the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to investment risk, including the possible loss of the entire principal amount invested. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2021

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 Government Long Bond 1.2x Strategy and Inverse Government Long Bond Strategy 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, 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. ● 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 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 Funds’ holdings consistent with their strategies, as frequently as daily. ● In general, bond prices rise when interest rates fall, and vice versa. Moreover, while securities with longer maturities tend to produce higher yields, the price of longer maturity securities is also subject to greater fluctuations as a result of changes in interest rates. ● It is important to note that the Funds are not guaranteed by the U.S. government. ● There are no assurances that any Guggenheim fund will achieve its objective and/or strategy. These Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Fund’s ability to achieve its investment objective, and may decrease the Fund’s performance. ● For more on these and other risks, please read the prospectus.

The High Yield Strategy Fund and Inverse High Yield Strategy Fund may not be suitable for all investors. ● The Fund’s use of derivatives such as futures, options, and swap agreements will expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● A highly liquid secondary market may not exist for the credit default swaps the Fund invests in, and there can be no assurance that a highly liquid secondary market will develop. ● The Fund’s 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 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. ● It is important to note that the Fund is not guaranteed by the U.S. government. ● The Fund is subject to active trading risks that may increase volatility and impact its ability to achieve its investment objective. ● For more on these and other risks, please read the prospectus.

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 prospectus.

The U.S. Government Money Market Fund may not be suitable for all investors. ● You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2021

In the 12 months ended March 31, 2021, the Standard & Poor’s 500^® (“S&P 500^®”) Index returned 56.35% as the equity market roared back to life after a sharp COVID-19-related selloff. This increase was in spite of ongoing personal and economic hardships imposed by COVID-19, highlighting the crucial role of policy support in the form of monetary and fiscal stimulus, which has succeeded in averting a lengthy recession in the U.S. These policy initiatives, particularly on the monetary side, increased market liquidity and lowered borrowing rates, reassuring equity investors that the Federal Reserve (the “Fed”) would do everything in its power to maintain market stability.

We upgraded our 2021 U.S. economic growth forecast during the first quarter from 5.5% to over 7%, factoring in more fiscal stimulus than previously anticipated. This forecast captures the effect of stimulus representing roughly 11% of 2020–2021 gross domestic product (“GDP”), versus the previous calculation of about 8%. We see strength in the consumer sector and in housing activity. In addition, U.S. vaccinations for COVID-19 continue to accelerate, nearing 3 million doses per day by the end of the first quarter. More than 213 million doses have been administered in the U.S. so far, and about 35% of the U.S. population has been fully vaccinated. The U.S. is seeing the best-case scenario unfold in its vaccine rollout, but other countries have not been as fortunate.

Europe’s vaccine rollout hit a major speedbump during the first quarter when questions surrounding the safety of the AstraZeneca vaccine led several major European countries to temporarily suspend distribution. Safety concerns, coupled with supply constraints, meant that less than 10% of the populations in Germany, France, and Italy had been vaccinated by the end of the first quarter, well under the pace needed to reach 70% inoculated by summer. Any delay in ending the pandemic on a global scale has implications for other countries too, including the U.S., where travel and hospitality workers represent a large share of the unemployed.

Despite vaccination delays in Europe and its implications abroad, we saw meaningful improvement in the labor market in the first quarter as states moved forward with business re-openings. Seasonally adjusted initial jobless claims fell by 97,000 to 684,000 in the week ending March 20, 2021 the lowest level since the pandemic began, before seeing an uptick the following week to 719,000. We saw more positive news across the board in the March payroll report with 916,000 jobs added, with 156,000 more from revisions. Standing in the way of additional labor market gains are local government restrictions on certain sectors, although easing of these restrictions is expected by summer.

Economic developments drove a sharp increase in U.S. Treasury yields. The market pulled forward expectations of the next Fed rate hike from December 2023 to December 2022, while repricing the long-run terminal fed funds rate estimate to 2.25% from just 0.55% last August. We do not expect the Fed to raise interest rates as early as the market is anticipating, even though we expect strong GDP growth in coming years.

Year-over-year inflation measures will rise over the next several months due to base effects, which may be compounded by supply chain disruptions in the goods sector and potential capacity constraints for certain services. However, we think these factors will prove to be short-lived, with base effects set to dampen inflation starting in the summer months. Moreover, the Fed is focused on generating sustainably higher inflation. Even if core inflation rises above the Fed’s 2% target in 2021, the Fed’s focus is on a long-term average of 2%. With years of shortfalls to make up, and the Fed now targeting labor market disparities as part of an expanded definition of full employment, we expect policymakers to remain resolutely patient. Any tapering of asset purchases will likely be deferred until later in 2022, with the first rate hike likely to come sometime after that.

We expect easy financial conditions and low rates to support credit over the next few years. With market optimism pulling forward rate hike expectations and causing bond yields to rise, we view this as an opportunity to add incremental yield to portfolios.

For the 12-month period ended March 31, 2021, the S&P 500^® Index* returned, as noted, 56.35%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 44.57%. The return of the MSCI Emerging Markets Index* was 58.39%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 0.71% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 23.72%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.12% for the 12-month period.

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2021

*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. Long Treasury 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 nonconvertible. The U.S. Long Treasury Index is market capitalization weighted and the securities in the index are updated on the last business day of each month.

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.

Dow Jones Industrial Average^® is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

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

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

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

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

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

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

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

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in-line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period 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 to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

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

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

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2020 and ending March 31, 2021.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.29%	28.35%	$ 1,000.00	$ 1,283.50	$ 7.34
A-Class	1.54%	28.21%	1,000.00	1,282.10	8.76
C-Class	2.29%	27.72%	1,000.00	1,277.20	13.00
H-Class	1.54%	28.22%	1,000.00	1,282.20	8.76
S&P 500® Fund
A-Class	1.61%	18.11%	1,000.00	1,181.10	8.75
C-Class	2.36%	17.66%	1,000.00	1,176.60	12.81
H-Class	1.61%	18.09%	1,000.00	1,180.90	8.75
Inverse S&P 500® Strategy Fund
Investor Class	1.44%	(17.40%)	1,000.00	826.00	6.56
A-Class	1.70%	(17.52%)	1,000.00	824.80	7.73
C-Class	2.45%	(17.80%)	1,000.00	822.00	11.13
H-Class	1.69%	(17.50%)	1,000.00	825.00	7.69
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.32%	29.37%	1,000.00	1,293.70	7.55
C-Class	2.07%	28.89%	1,000.00	1,288.90	11.81
H-Class	1.33%	29.37%	1,000.00	1,293.70	7.61
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.48%	(15.83%)	1,000.00	841.70	6.80
A-Class	1.73%	(15.94%)	1,000.00	840.60	7.94
C-Class	2.49%	(16.26%)	1,000.00	837.40	11.41
H-Class	1.74%	(15.98%)	1,000.00	840.20	7.98
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	64.48%	1,000.00	1,644.80	11.01
C-Class	2.42%	63.89%	1,000.00	1,638.90	15.92
H-Class	1.69%	64.48%	1,000.00	1,644.80	11.14
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	(30.96%)	1,000.00	690.40	7.04
C-Class	2.40%	(31.21%)	1,000.00	687.90	10.10
H-Class	1.68%	(30.95%)	1,000.00	690.50	7.08
Russell 2000® 1.5x Strategy Fund
A-Class	1.73%	76.57%	1,000.00	1,765.70	11.93
C-Class	2.46%	75.89%	1,000.00	1,758.90	16.92
H-Class	1.73%	76.56%	1,000.00	1,765.60	11.93
Russell 2000® Fund
A-Class	1.64%	46.88%	1,000.00	1,468.80	10.09
C-Class	2.39%	46.36%	1,000.00	1,463.60	14.68
H-Class	1.64%	46.89%	1,000.00	1,468.90	10.09
Inverse Russell 2000® Strategy Fund
A-Class	1.73%	(35.09%)	1,000.00	649.10	7.11
C-Class	2.49%	(35.32%)	1,000.00	646.80	10.22
H-Class	1.72%	(35.07%)	1,000.00	649.30	7.07

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.65%	19.00%	$ 1,000.00	$ 1,190.00	$ 9.01
C-Class	2.39%	18.55%	1,000.00	1,185.50	13.02
H-Class	1.64%	18.99%	1,000.00	1,189.90	8.95
Government Long Bond 1.2x Strategy Fund
Investor Class	1.00%	(23.04%)	1,000.00	769.60	4.41
A-Class	1.25%	(23.23%)	1,000.00	767.70	5.51
C-Class	2.00%	(23.52%)	1,000.00	764.80	8.80
H-Class	1.23%	(23.21%)	1,000.00	767.90	5.42
Inverse Government Long Bond Strategy Fund
Investor Class	2.84%	21.57%	1,000.00	1,215.70	15.69
A-Class	3.05%	21.40%	1,000.00	1,214.00	16.84
C-Class	3.78%	20.94%	1,000.00	1,209.40	20.82
H-Class	3.07%	21.40%	1,000.00	1,214.00	16.95
High Yield Strategy Fund
A-Class	1.53%	5.47%	1,000.00	1,054.70	7.84
C-Class	2.28%	5.07%	1,000.00	1,050.70	11.66
H-Class	1.54%	5.47%	1,000.00	1,054.70	7.89
Inverse High Yield Strategy Fund
A-Class	1.52%	(5.45%)	1,000.00	945.50	7.37
C-Class	2.26%	(6.59%)	1,000.00	934.10	10.90
H-Class	1.53%	(6.26%)	1,000.00	937.40	7.39
U.S. Government Money Market Fund
Money Market Class	0.11%	0.05%	1,000.00	1,000.50	0.55

THE RYDEX FUNDS ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.29%	5.00%	$ 1,000.00	$ 1,018.50	$ 6.49
A-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
C-Class	2.29%	5.00%	1,000.00	1,013.51	11.50
H-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
S&P 500® Fund
A-Class	1.61%	5.00%	1,000.00	1,016.90	8.10
C-Class	2.36%	5.00%	1,000.00	1,013.16	11.85
H-Class	1.61%	5.00%	1,000.00	1,016.90	8.10
Inverse S&P 500® Strategy Fund
Investor Class	1.44%	5.00%	1,000.00	1,017.75	7.24
A-Class	1.70%	5.00%	1,000.00	1,016.45	8.55
C-Class	2.45%	5.00%	1,000.00	1,012.72	12.29
H-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.32%	5.00%	1,000.00	1,018.35	6.64
C-Class	2.07%	5.00%	1,000.00	1,014.61	10.40
H-Class	1.33%	5.00%	1,000.00	1,018.30	6.69
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.48%	5.00%	1,000.00	1,017.55	7.44
A-Class	1.73%	5.00%	1,000.00	1,016.31	8.70
C-Class	2.49%	5.00%	1,000.00	1,012.52	12.49
H-Class	1.74%	5.00%	1,000.00	1,016.26	8.75
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
C-Class	2.42%	5.00%	1,000.00	1,012.86	12.14
H-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.60	8.40
C-Class	2.40%	5.00%	1,000.00	1,012.96	12.04
H-Class	1.68%	5.00%	1,000.00	1,016.55	8.45
Russell 2000® 1.5x Strategy Fund
A-Class	1.73%	5.00%	1,000.00	1,016.31	8.70
C-Class	2.46%	5.00%	1,000.00	1,012.67	12.34
H-Class	1.73%	5.00%	1,000.00	1,016.31	8.70
Russell 2000® Fund
A-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Inverse Russell 2000® Strategy Fund
A-Class	1.73%	5.00%	1,000.00	1,016.31	8.70
C-Class	2.49%	5.00%	1,000.00	1,012.52	12.49
H-Class	1.72%	5.00%	1,000.00	1,016.36	8.65

10 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.65%	5.00%	$ 1,000.00	$ 1,016.70	$ 8.30
C-Class	2.39%	5.00%	1,000.00	1,013.01	11.99
H-Class	1.64%	5.00%	1,000.00	1,016.75	8.25
Government Long Bond 1.2x Strategy Fund
Investor Class	1.00%	5.00%	1,000.00	1,019.95	5.04
A-Class	1.25%	5.00%	1,000.00	1,018.70	6.29
C-Class	2.00%	5.00%	1,000.00	1,014.96	10.05
H-Class	1.23%	5.00%	1,000.00	1,018.80	6.19
Inverse Government Long Bond Strategy Fund
Investor Class	2.84%	5.00%	1,000.00	1,010.77	14.24
A-Class	3.05%	5.00%	1,000.00	1,009.72	15.28
C-Class	3.78%	5.00%	1,000.00	1,006.08	18.91
H-Class	3.07%	5.00%	1,000.00	1,009.62	15.38
High Yield Strategy Fund
A-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
C-Class	2.28%	5.00%	1,000.00	1,013.56	11.45
H-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
Inverse High Yield Strategy Fund
A-Class	1.52%	5.00%	1,000.00	1,017.35	7.64
C-Class	2.26%	5.00%	1,000.00	1,013.66	11.35
H-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
U.S. Government Money Market Fund
Money Market Class	0.11%	5.00%	1,000.00	1,024.38	0.56

1	This ratio represents annualized Net Expense, which includes interest expense related to securities sold short. Excluding short interest expense, the operating ratio of the Inverse Government Long Bond Strategy Fund would be 1.42%, 1.67%, 2.42% and 1.68% for Investor Class, A-Class, C-Class, and H-Class, respectively. Excludes expenses of the underlying funds in which the Funds invests, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2020 to March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

NOVA FUND

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

For the one-year period ended March 31, 2021, Nova Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index.

Nova Fund Investor Class returned 90.46%, while the S&P 500 Index returned 56.35% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Financials.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Microsoft Corp., and Amazon.com, Inc. The holdings detracting the most were Gilead Sciences, Inc. and Biogen, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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 Ultra Short Duration Fund — Institutional Class	4.8%
Apple, Inc.	4.6%
Microsoft Corp.	4.2%
Amazon.com, Inc.	3.1%
Guggenheim Strategy Fund II	2.7%
Facebook, Inc. — Class A	1.7%
Alphabet, Inc. — Class A	1.5%
Alphabet, Inc. — Class C	1.4%
Tesla, Inc.	1.2%
Guggenheim Strategy Fund III	1.1%
Top Ten Total	26.3%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	90.46%	20.54%	17.71%
A-Class Shares	90.00%	20.25%	17.43%
A-Class Shares with sales charge‡	80.97%	19.08%	16.86%
C-Class Shares	88.56%	19.37%	16.55%
C-Class Shares with CDSC§	87.56%	19.37%	16.55%
S&P 500 Index	56.35%	16.29%	13.91%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	90.03%	20.28%	15.86%
S&P 500 Index	56.35%	16.29%	13.22%

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

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2021
NOVA FUND

	Shares		Value
COMMON STOCKS† - 79.3%
Technology - 17.7%
Apple, Inc.		149,658	$	18,280,725
Microsoft Corp.		71,528		16,864,157
NVIDIA Corp.		5,880		3,139,508
Intel Corp.		38,532		2,466,048
Adobe, Inc.*		4,546		2,161,032
salesforce.com, Inc.*		8,704		1,844,116
Broadcom, Inc.		3,872		1,795,291
Accenture plc — Class A		6,015		1,661,644
Texas Instruments, Inc.		8,727		1,649,316
QUALCOMM, Inc.		10,774		1,428,525
Oracle Corp.		17,589		1,234,220
Applied Materials, Inc.		8,702		1,162,587
International Business Machines Corp.		8,474		1,129,245
Intuit, Inc.		2,597		994,807
Micron Technology, Inc.*		10,608		935,732
ServiceNow, Inc.*		1,860		930,205
Advanced Micro Devices, Inc.*		11,492		902,122
Fidelity National Information Services, Inc.		5,890		828,193
Lam Research Corp.		1,355		806,550
Activision Blizzard, Inc.		7,348		683,364
Fiserv, Inc.*		5,460		649,958
Autodesk, Inc.*		2,085		577,858
Analog Devices, Inc.		3,499		542,625
NXP Semiconductor N.V.		2,627		528,920
KLA Corp.		1,461		482,714
Roper Technologies, Inc.		995		401,323
Microchip Technology, Inc.		2,554		396,432
Cognizant Technology Solutions Corp. — Class A		5,031		393,022
HP, Inc.		11,879		377,158
Electronic Arts, Inc.		2,727		369,154
Cadence Design Systems, Inc.*		2,646		362,476
Synopsys, Inc.*		1,445		358,042
MSCI, Inc. — Class A		783		328,296
Paychex, Inc.		3,044		298,373
Xilinx, Inc.		2,331		288,811
Skyworks Solutions, Inc.		1,564		286,963
ANSYS, Inc.*		823		279,458
Zebra Technologies Corp. — Class A*		507		245,986
Fortinet, Inc.*		1,285		236,980
Maxim Integrated Products, Inc.		2,542		232,263
Cerner Corp.		2,905		208,811
Qorvo, Inc.*		1,074		196,220
Hewlett Packard Enterprise Co.		12,340		194,232
Western Digital Corp.		2,903		193,775
Take-Two Interactive Software, Inc.*		1,092		192,956
Teradyne, Inc.		1,581		192,376
Paycom Software, Inc.*		465		172,078
Broadridge Financial Solutions, Inc.		1,098		168,104
Citrix Systems, Inc.		1,166		163,660
Tyler Technologies, Inc.*		385		163,444
Akamai Technologies, Inc.*		1,548		157,741
NetApp, Inc.		2,111		153,406
Seagate Technology plc		1,905		146,209
Monolithic Power Systems, Inc.		407		143,756
Leidos Holdings, Inc.		1,265		121,794
Jack Henry & Associates, Inc.		721		109,390
DXC Technology Co.*		2,415		75,493
IPG Photonics Corp.*		340		71,720
Total Technology				71,359,364
Consumer, Non-cyclical - 16.0%
Johnson & Johnson		24,929		4,097,081
UnitedHealth Group, Inc.		8,965		3,335,607
Procter & Gamble Co.		23,354		3,162,832
PayPal Holdings, Inc.*		11,107		2,697,224
Abbott Laboratories		16,800		2,013,312
Coca-Cola Co.		36,782		1,938,779
Pfizer, Inc.		52,896		1,916,422
PepsiCo, Inc.		13,084		1,850,732
Merck & Company, Inc.		23,997		1,849,929
AbbVie, Inc.		16,746		1,812,252
Thermo Fisher Scientific, Inc.		3,734		1,704,123
Medtronic plc		12,785		1,510,292
Eli Lilly & Co.		7,544		1,409,370
Amgen, Inc.		5,478		1,362,981
Danaher Corp.		6,011		1,352,956
Bristol-Myers Squibb Co.		21,248		1,341,386
Philip Morris International, Inc.		14,769		1,310,601
CVS Health Corp.		12,436		935,560
Altria Group, Inc.		17,627		901,798
Anthem, Inc.		2,323		833,841
Intuitive Surgical, Inc.*		1,116		824,657
Cigna Corp.		3,337		806,686
S&P Global, Inc.		2,283		805,602
Mondelez International, Inc. — Class A		13,391		783,775
Gilead Sciences, Inc.		11,917		770,196
Automatic Data Processing, Inc.		4,058		764,811
Stryker Corp.		3,103		755,829
Zoetis, Inc.		4,506		709,605
Becton Dickinson and Co.		2,756		670,122
Colgate-Palmolive Co.		8,048		634,424
Estee Lauder Companies, Inc. — Class A		2,179		633,762
Global Payments, Inc.		2,799		564,223
Illumina, Inc.*		1,384		531,539
Vertex Pharmaceuticals, Inc.*		2,465		529,704
Boston Scientific Corp.*		13,440		519,456
Humana, Inc.		1,222		512,323
Edwards Lifesciences Corp.*		5,923		495,400
HCA Healthcare, Inc.		2,514		473,487
Regeneron Pharmaceuticals, Inc.*		998		472,194
Moody’s Corp.		1,525		455,380
Kimberly-Clark Corp.		3,205		445,655
Biogen, Inc.*		1,445		404,239
Baxter International, Inc.		4,790		403,989
IDEXX Laboratories, Inc.*		809		395,852
Sysco Corp.		4,840		381,102
Align Technology, Inc.*		683		369,865
Constellation Brands, Inc. — Class A		1,613		367,764
General Mills, Inc.		5,798		355,533
Centene Corp.*		5,515		352,464

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

	Shares		Value
IQVIA Holdings, Inc.*		1,814	$	350,356
IHS Markit Ltd.		3,535		342,117
Corteva, Inc.		7,056		328,951
DexCom, Inc.*		912		327,764
Monster Beverage Corp.*		3,506		319,361
Alexion Pharmaceuticals, Inc.*		2,085		318,817
Zimmer Biomet Holdings, Inc.		1,971		315,518
Archer-Daniels-Midland Co.		5,296		301,872
McKesson Corp.		1,508		294,120
Cintas Corp.		837		285,677
Verisk Analytics, Inc. — Class A		1,544		272,809
ResMed, Inc.		1,380		267,747
Kroger Co.		7,219		259,812
Kraft Heinz Co.		6,148		245,920
Laboratory Corporation of America Holdings*		926		236,158
Clorox Co.		1,193		230,106
United Rentals, Inc.*		684		225,248
Hershey Co.		1,389		219,684
FleetCor Technologies, Inc.*		791		212,486
McCormick & Company, Inc.		2,361		210,507
Equifax, Inc.		1,155		209,205
Tyson Foods, Inc. — Class A		2,795		207,669
Church & Dwight Company, Inc.		2,324		203,001
West Pharmaceutical Services, Inc.		703		198,091
Teleflex, Inc.		443		184,049
Hologic, Inc.*		2,443		181,710
MarketAxess Holdings, Inc.		360		179,251
Cooper Companies, Inc.		466		178,986
Conagra Brands, Inc.		4,634		174,238
Catalent, Inc.*		1,614		169,970
Cardinal Health, Inc.		2,785		169,189
AmerisourceBergen Corp. — Class A		1,397		164,944
Quest Diagnostics, Inc.		1,266		162,478
Viatris, Inc.*		11,447		159,915
STERIS plc		809		154,098
Varian Medical Systems, Inc.*		871		153,758
Gartner, Inc.*		841		153,525
Kellogg Co.		2,414		152,806
Avery Dennison Corp.		787		144,533
Incyte Corp.*		1,772		144,010
ABIOMED, Inc.*		429		136,735
PerkinElmer, Inc.		1,063		136,372
Dentsply Sirona, Inc.		2,077		132,533
J M Smucker Co.		1,039		131,465
Hormel Foods Corp.		2,663		127,238
Brown-Forman Corp. — Class B		1,732		119,456
Bio-Rad Laboratories, Inc. — Class A*		204		116,519
Quanta Services, Inc.		1,312		115,430
Lamb Weston Holdings, Inc.		1,388		107,542
Universal Health Services, Inc. — Class B		738		98,442
Campbell Soup Co.		1,925		96,770
Henry Schein, Inc.*		1,351		93,543
Molson Coors Beverage Co. — Class B*		1,785		91,303
Nielsen Holdings plc		3,393		85,334
Robert Half International, Inc.		1,073		83,769
DaVita, Inc.*		684		73,715
Rollins, Inc.		2,100		72,282
Perrigo Company plc		1,262		51,073
Total Consumer, Non-cyclical				64,406,693
Communications - 12.8%
Amazon.com, Inc.*		4,059		12,558,871
Facebook, Inc. — Class A*		22,812		6,718,818
Alphabet, Inc. — Class A*		2,852		5,882,307
Alphabet, Inc. — Class C*		2,734		5,655,634
Walt Disney Co.*		17,215		3,176,512
Comcast Corp. — Class A		43,351		2,345,723
Verizon Communications, Inc.		39,245		2,282,097
Netflix, Inc.*		4,200		2,190,972
Cisco Systems, Inc.		40,037		2,070,313
AT&T, Inc.		67,636		2,047,342
Booking Holdings, Inc.*		388		903,978
Charter Communications, Inc. — Class A*		1,341		827,424
T-Mobile US, Inc.*		5,539		693,981
Twitter, Inc.*		7,569		481,615
eBay, Inc.		6,130		375,401
Corning, Inc.		7,286		317,014
Motorola Solutions, Inc.		1,603		301,444
ViacomCBS, Inc. — Class B		5,385		242,863
Etsy, Inc.*		1,195		240,996
Expedia Group, Inc.*		1,312		225,821
CDW Corp.		1,337		221,608
VeriSign, Inc.*		943		187,431
Arista Networks, Inc.*		521		157,285
Omnicom Group, Inc.		2,038		151,117
Lumen Technologies, Inc.		9,361		124,969
F5 Networks, Inc.*		585		122,043
NortonLifeLock, Inc.		5,518		117,313
Fox Corp. — Class A		3,171		114,505
Interpublic Group of Companies, Inc.		3,705		108,186
Discovery, Inc. — Class C*		2,747		101,337
News Corp. — Class A		3,709		94,320
DISH Network Corp. — Class A*		2,347		84,961
Juniper Networks, Inc.		3,112		78,827
Discovery, Inc. — Class A*,1		1,541		66,972
Fox Corp. — Class B		1,458		50,928
News Corp. — Class B		1,155		27,096
Total Communications				51,348,024
Financial - 12.1%
Berkshire Hathaway, Inc. — Class B*		18,082		4,619,408
JPMorgan Chase & Co.		28,940		4,405,536
Visa, Inc. — Class A		16,086		3,405,889
Mastercard, Inc. — Class A		8,315		2,960,556
Bank of America Corp.		72,049		2,787,576
Wells Fargo & Co.		39,207		1,531,818
Citigroup, Inc.		19,795		1,440,086
Morgan Stanley		14,232		1,105,257
Goldman Sachs Group, Inc.		3,263		1,067,001
BlackRock, Inc. — Class A		1,346		1,014,830
American Tower Corp. — Class A REIT		4,214		1,007,399
Charles Schwab Corp.		14,193		925,100

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

	Shares		Value
American Express Co.		6,188	$	875,231
Truist Financial Corp.		12,776		745,096
Prologis, Inc. REIT		7,013		743,378
U.S. Bancorp		12,964		717,039
PNC Financial Services Group, Inc.		4,021		705,324
Crown Castle International Corp. REIT		4,090		704,012
CME Group, Inc. — Class A		3,404		695,199
Chubb Ltd.		4,270		674,532
Intercontinental Exchange, Inc.		5,327		594,919
Marsh & McLennan Companies, Inc.		4,819		586,954
Equinix, Inc. REIT		847		575,613
Capital One Financial Corp.		4,355		554,086
Progressive Corp.		5,555		531,114
Aon plc — Class A		2,143		493,126
MetLife, Inc.		7,129		433,372
American International Group, Inc.		8,201		378,968
Digital Realty Trust, Inc. REIT		2,666		375,479
T. Rowe Price Group, Inc.		2,162		370,999
Bank of New York Mellon Corp.		7,651		361,816
Travelers Companies, Inc.		2,392		359,757
Public Storage REIT		1,442		355,828
Simon Property Group, Inc. REIT		3,115		354,394
Prudential Financial, Inc.		3,765		342,991
Allstate Corp.		2,872		329,993
Aflac, Inc.		6,073		310,816
SBA Communications Corp. REIT		1,037		287,819
Welltower, Inc. REIT		3,958		283,511
State Street Corp.		3,336		280,257
Willis Towers Watson plc		1,223		279,920
First Republic Bank		1,669		278,306
Discover Financial Services		2,909		276,326
Ameriprise Financial, Inc.		1,107		257,322
Fifth Third Bancorp		6,743		252,525
Weyerhaeuser Co. REIT		7,092		252,475
CBRE Group, Inc. — Class A*		3,183		251,807
SVB Financial Group*		496		244,855
AvalonBay Communities, Inc. REIT		1,323		244,107
Equity Residential REIT		3,251		232,869
Arthur J Gallagher & Co.		1,837		229,202
Hartford Financial Services Group, Inc.		3,389		226,351
Realty Income Corp. REIT		3,541		224,853
Synchrony Financial		5,151		209,440
Northern Trust Corp.		1,976		207,697
Alexandria Real Estate Equities, Inc. REIT		1,206		198,146
Ventas, Inc. REIT		3,553		189,517
Regions Financial Corp.		9,110		188,213
M&T Bank Corp.		1,220		184,964
KeyCorp		9,187		183,556
Citizens Financial Group, Inc.		4,030		177,925
Essex Property Trust, Inc. REIT		616		167,453
Extra Space Storage, Inc. REIT		1,252		165,953
Healthpeak Properties, Inc. REIT		5,109		162,160
Nasdaq, Inc.		1,094		161,321
Mid-America Apartment Communities, Inc. REIT		1,085		156,631
Huntington Bancshares, Inc.		9,647		151,651
Duke Realty Corp. REIT		3,544		148,600
Cincinnati Financial Corp.		1,422		146,594
Principal Financial Group, Inc.		2,404		144,144
Raymond James Financial, Inc.		1,162		142,415
Boston Properties, Inc. REIT		1,345		136,195
UDR, Inc. REIT		2,815		123,466
Host Hotels & Resorts, Inc. REIT*		6,690		112,726
Loews Corp.		2,153		110,406
Lincoln National Corp.		1,711		106,544
Iron Mountain, Inc. REIT		2,735		101,222
Cboe Global Markets, Inc.		1,017		100,368
W R Berkley Corp.		1,329		100,140
Western Union Co.		3,897		96,100
Comerica, Inc.		1,319		94,625
Everest Re Group Ltd.		379		93,920
Invesco Ltd.		3,570		90,035
Globe Life, Inc.		901		87,064
Zions Bancorp North America		1,557		85,573
Regency Centers Corp. REIT		1,498		84,952
Assurant, Inc.		549		77,832
Kimco Realty Corp. REIT		4,101		76,894
Franklin Resources, Inc.		2,588		76,605
People’s United Financial, Inc.		4,036		72,244
Vornado Realty Trust REIT		1,488		67,540
Federal Realty Investment Trust REIT		662		67,160
Unum Group		1,932		53,768
Total Financial				48,644,756
Consumer, Cyclical - 7.8%
Tesla, Inc.*		7,282		4,863,866
Home Depot, Inc.		10,210		3,116,602
Walmart, Inc.		13,148		1,785,893
NIKE, Inc. — Class B		12,058		1,602,388
McDonald’s Corp.		7,070		1,584,670
Costco Wholesale Corp.		4,198		1,479,711
Lowe’s Companies, Inc.		6,933		1,318,518
Starbucks Corp.		11,165		1,220,000
Target Corp.		4,750		940,833
TJX Companies, Inc.		11,386		753,184
General Motors Co.*		12,024		690,899
Dollar General Corp.		2,323		470,686
Ford Motor Co.*		37,061		453,997
Ross Stores, Inc.		3,376		404,816
Chipotle Mexican Grill, Inc. — Class A*		267		379,359
Marriott International, Inc. — Class A*		2,523		373,682
Walgreens Boots Alliance, Inc.		6,801		373,375
Cummins, Inc.		1,404		363,791
Aptiv plc*		2,561		353,162
Southwest Airlines Co.*		5,601		341,997
O’Reilly Automotive, Inc.*		665		337,321
Hilton Worldwide Holdings, Inc.*		2,633		318,382
Yum! Brands, Inc.		2,846		307,880
PACCAR, Inc.		3,290		305,707
AutoZone, Inc.*		210		294,903
Delta Air Lines, Inc.*		6,052		292,191
DR Horton, Inc.		3,139		279,747
Fastenal Co.		5,447		273,875

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

	Shares		Value
Lennar Corp. — Class A		2,603	$	263,502
Dollar Tree, Inc.*		2,231		255,360
Best Buy Company, Inc.		2,185		250,860
VF Corp.		3,046		243,436
Copart, Inc.*		1,972		214,179
CarMax, Inc.*		1,541		204,429
Carnival Corp.*		7,566		200,802
Tractor Supply Co.		1,103		195,319
Las Vegas Sands Corp.*		3,114		189,207
Royal Caribbean Cruises Ltd.*		2,076		177,726
Darden Restaurants, Inc.		1,236		175,512
United Airlines Holdings, Inc.*		3,020		173,771
Caesars Entertainment, Inc.*		1,975		172,714
WW Grainger, Inc.		417		167,188
Ulta Beauty, Inc.*		534		165,097
Genuine Parts Co.		1,370		158,358
NVR, Inc.*		33		155,461
MGM Resorts International		3,894		147,933
Penn National Gaming, Inc.*		1,410		147,824
American Airlines Group, Inc.*		6,066		144,977
L Brands, Inc.*		2,216		137,082
Domino’s Pizza, Inc.		368		135,347
PulteGroup, Inc.		2,521		132,201
Pool Corp.		382		131,882
Whirlpool Corp.		595		131,108
Wynn Resorts Ltd.*		998		125,119
Hasbro, Inc.		1,211		116,401
Live Nation Entertainment, Inc.*		1,361		115,209
Advance Auto Parts, Inc.		621		113,947
LKQ Corp.*		2,646		112,005
Tapestry, Inc.*		2,635		108,588
Mohawk Industries, Inc.*		559		107,501
BorgWarner, Inc.		2,267		105,098
Newell Brands, Inc.		3,584		95,979
Norwegian Cruise Line Holdings Ltd.*,1		3,445		95,048
Alaska Air Group, Inc.*		1,178		81,529
PVH Corp.*		674		71,242
Hanesbrands, Inc.		3,308		65,069
Gap, Inc.		1,951		58,101
Leggett & Platt, Inc.		1,261		57,565
Ralph Lauren Corp. — Class A*		457		56,284
Under Armour, Inc. — Class A*		1,789		39,644
Under Armour, Inc. — Class C*		1,848		34,114
Total Consumer, Cyclical				31,311,153
Industrial - 6.8%
Honeywell International, Inc.		6,596		1,431,794
Union Pacific Corp.		6,352		1,400,044
Boeing Co.*		5,203		1,325,308
Caterpillar, Inc.		5,171		1,199,000
United Parcel Service, Inc. — Class B		6,824		1,160,012
Raytheon Technologies Corp.		14,410		1,113,461
Deere & Co.		2,973		1,112,318
General Electric Co.		83,152		1,091,786
3M Co.		5,491		1,058,006
Lockheed Martin Corp.		2,337		863,522
CSX Corp.		7,231		697,213
FedEx Corp.		2,313		656,985
Norfolk Southern Corp.		2,389		641,494
Illinois Tool Works, Inc.		2,732		605,193
Eaton Corporation plc		3,775		522,007
Emerson Electric Co.		5,690		513,352
Waste Management, Inc.		3,692		476,342
Northrop Grumman Corp.		1,470		475,751
Johnson Controls International plc		6,831		407,606
TE Connectivity Ltd.		3,138		405,147
General Dynamics Corp.		2,199		399,250
L3Harris Technologies, Inc.		1,950		395,226
Parker-Hannifin Corp.		1,224		386,086
Amphenol Corp. — Class A		5,681		374,776
Trane Technologies plc		2,261		374,331
Agilent Technologies, Inc.		2,890		367,435
Carrier Global Corp.		7,749		327,163
TransDigm Group, Inc.*		519		305,130
Stanley Black & Decker, Inc.		1,526		304,697
Rockwell Automation, Inc.		1,101		292,249
AMETEK, Inc.		2,187		279,346
Otis Worldwide Corp.		3,866		264,628
Ball Corp.		3,109		263,457
Mettler-Toledo International, Inc.*		222		256,563
Keysight Technologies, Inc.*		1,765		253,101
Kansas City Southern		862		227,499
Fortive Corp.		3,206		226,472
Old Dominion Freight Line, Inc.		909		218,533
Vulcan Materials Co.		1,257		212,119
Martin Marietta Materials, Inc.		591		198,469
Republic Services, Inc. — Class A		1,996		198,302
Generac Holdings, Inc.*		596		195,160
Garmin Ltd.		1,417		186,831
Dover Corp.		1,362		186,771
Trimble, Inc.*		2,380		185,140
Xylem, Inc.		1,710		179,858
Ingersoll Rand, Inc.*		3,535		173,957
Amcor plc		14,812		173,004
Expeditors International of Washington, Inc.		1,606		172,950
Waters Corp.*		590		167,660
Jacobs Engineering Group, Inc.		1,234		159,519
IDEX Corp.		719		150,501
Masco Corp.		2,439		146,096
Teledyne Technologies, Inc.*		351		145,191
Westinghouse Air Brake Technologies Corp.		1,684		133,306
J.B. Hunt Transport Services, Inc.		792		133,111
Westrock Co.		2,499		130,073
Fortune Brands Home & Security, Inc.		1,315		126,003
CH Robinson Worldwide, Inc.		1,269		121,101
Packaging Corporation of America		899		120,897
Textron, Inc.		2,152		120,684
Howmet Aerospace, Inc.*		3,701		118,913
Snap-on, Inc.		514		118,600
Allegion plc		860		108,033
Pentair plc		1,575		98,154
A O Smith Corp.		1,284		86,811

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

	Shares		Value
Huntington Ingalls Industries, Inc.		382	$	78,635
FLIR Systems, Inc.		1,244		70,249
Sealed Air Corp.		1,469		67,310
Total Industrial				27,135,691
Energy - 2.3%
Exxon Mobil Corp.		40,149		2,241,519
Chevron Corp.		18,268		1,914,304
ConocoPhillips		12,847		680,505
EOG Resources, Inc.		5,534		401,381
Schlumberger N.V.		13,260		360,539
Phillips 66		4,143		337,820
Marathon Petroleum Corp.		6,177		330,408
Pioneer Natural Resources Co.		1,951		309,858
Kinder Morgan, Inc.		18,462		307,392
Valero Energy Corp.		3,875		277,450
Williams Companies, Inc.		11,511		272,696
ONEOK, Inc.		4,220		213,785
Occidental Petroleum Corp.		7,951		211,656
Enphase Energy, Inc.*		1,223		198,322
Hess Corp.		2,591		183,339
Halliburton Co.		8,427		180,844
Baker Hughes Co.		6,913		149,390
Diamondback Energy, Inc.		1,715		126,035
Devon Energy Corp.		5,617		122,731
Marathon Oil Corp.		7,486		79,950
Cabot Oil & Gas Corp. — Class A		3,788		71,139
APA Corp.		3,583		64,136
HollyFrontier Corp.		1,417		50,700
NOV, Inc.*		3,682		50,517
Total Energy				9,136,416
Utilities - 2.1%
NextEra Energy, Inc.		18,586		1,405,288
Duke Energy Corp.		7,289		703,607
Southern Co.		10,021		622,905
Dominion Energy, Inc.		7,641		580,410
Exelon Corp.		9,259		404,989
American Electric Power Company, Inc.		4,709		398,852
Sempra Energy		2,869		380,372
Xcel Energy, Inc.		5,099		339,135
Public Service Enterprise Group, Inc.		4,790		288,406
Eversource Energy		3,253		281,677
WEC Energy Group, Inc.		2,992		280,021
American Water Works Company, Inc.		1,721		258,012
DTE Energy Co.		1,838		244,711
Consolidated Edison, Inc.		3,247		242,876
Edison International		3,597		210,784
PPL Corp.		7,293		210,330
Ameren Corp.		2,403		195,508
Entergy Corp.		1,901		189,093
FirstEnergy Corp.		5,152		178,723
AES Corp.		6,336		169,868
CMS Energy Corp.		2,740		167,743
Alliant Energy Corp.		2,370		128,359
Evergy, Inc.		2,152		128,109
Atmos Energy Corp.		1,215		120,102
CenterPoint Energy, Inc.		5,231		118,482
NiSource, Inc.		3,716		89,593
NRG Energy, Inc.		2,320		87,534
Pinnacle West Capital Corp.		1,069		86,963
Total Utilities				8,512,452
Basic Materials - 1.7%
Linde plc		4,958		1,388,934
Air Products and Chemicals, Inc.		2,099		590,533
Sherwin-Williams Co.		765		564,578
Ecolab, Inc.		2,359		504,991
Newmont Corp.		7,590		457,449
Freeport-McMoRan, Inc.		13,831		455,455
Dow, Inc.		7,067		451,864
DuPont de Nemours, Inc.		5,106		394,592
PPG Industries, Inc.		2,247		337,634
International Flavors & Fragrances, Inc.		2,359		329,340
LyondellBasell Industries N.V. — Class A		2,440		253,882
Nucor Corp.		2,826		226,843
International Paper Co.		3,728		201,573
Celanese Corp. — Class A		1,083		162,244
Albemarle Corp.		1,106		161,598
Eastman Chemical Co.		1,288		141,835
FMC Corp.		1,227		135,718
Mosaic Co.		3,271		103,396
CF Industries Holdings, Inc.		2,030		92,121
Total Basic Materials				6,954,580
Total Common Stocks
(Cost $284,103,793)				318,809,129
MUTUAL FUNDS† - 8.6%
Guggenheim Ultra Short Duration Fund — Institutional Class2		1,933,234		19,255,008
Guggenheim Strategy Fund II2		428,246		10,697,596
Guggenheim Strategy Fund III2		184,563		4,639,905
Total Mutual Funds
(Cost $34,381,511)				34,592,509

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 4.2%
U.S. Treasury Bills
0.03% due 04/01/213,4	$	4,660,000	$	4,660,000
0.09% due 04/01/213,4		4,500,000		4,500,000
0.01% due 04/22/214,5		642,000		641,995
0.04% due 04/01/213,4		424,000		424,000
U.S. Cash Management Bill
0.03% due 08/03/214		6,500,000		6,499,356
Total U.S. Treasury Bills
(Cost $16,725,350)				16,725,351
REPURCHASE AGREEMENTS††,6 - 7.3%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213		15,661,763		15,661,763
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		7,120,599		7,120,599
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		6,498,657		6,498,657
Total Repurchase Agreements
(Cost $29,281,019)				29,281,019

	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%8		94,247		94,247
Total Securities Lending Collateral
(Cost $94,247)				94,247
Total Investments - 99.4%
(Cost $364,585,920)			$	399,502,255
Other Assets & Liabilities, net - 0.6%				2,566,519
Total Net Assets - 100.0%			$	402,068,774

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts		34		Jun 2021	$	6,746,450	$	18,515

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements††

Barclays Bank plc

S&P 500 Index

0.54% (1 Week USD LIBOR + 0.45%)

At Maturity

04/07/21

16,989

$

67,496,262

$

845,787

BNP Paribas

S&P 500 Index

0.66% (1 Month USD LIBOR + 0.55%)

At Maturity

04/08/21

6,918

27,484,873

294,567

Goldman Sachs International

S&P 500 Index

0.54% (1 Week USD LIBOR + 0.45%)

At Maturity

05/27/21

45,872

182,244,595

(70,406

)

$

277,225,730

$

1,069,948

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NOVA FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 on loan at March 31, 2021 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Repurchase Agreements — See Note 6.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2021.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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	$	318,809,129	$	—	$	—	$	318,809,129
Mutual Funds		34,592,509		—		—		34,592,509
U.S. Treasury Bills		—		16,725,351		—		16,725,351
Repurchase Agreements		—		29,281,019		—		29,281,019
Securities Lending Collateral		94,247		—		—		94,247
Equity Futures Contracts**		18,515		—		—		18,515
Equity Index Swap Agreements**		—		1,140,354		—		1,140,354
Total Assets	$	353,514,400	$	47,146,724	$	—	$	400,661,124

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	70,406	$	—	$	70,406

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
NOVA FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	11,261,712	$	—	$	(1,000,000	)	$	5,870	$	430,014	$	10,697,596		428,246	$	191,829
Guggenheim Strategy Fund III		1,704,973		2,800,000		—			—		134,932		4,639,905		184,563		71,229
Guggenheim Ultra Short Duration Fund — Institutional Class		7,748,990		17,800,000		(6,500,000	)		3,641		202,377		19,255,008		1,933,234		159,530
	$	20,715,675	$	20,600,000	$	(7,500,000	)	$	9,511	$	767,323	$	34,592,509			$	422,588

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value - including $92,813 of securities loaned (cost $300,923,390)	$	335,628,727
Investments in affiliated issuers, at value (cost $34,381,511)		34,592,509
Repurchase agreements, at value (cost $29,281,019)		29,281,019
Cash		2,869
Unrealized appreciation on OTC swap agreements		1,140,354
Receivables:
Fund shares sold		14,068,125
Dividends		240,519
Variation margin on futures contracts		35,360
Securities lending income		9
Interest		5
Total assets		414,989,496
Liabilities:
Unrealized depreciation on OTC swap agreements		70,406
Payable for:
Securities purchased		11,450,578
Fund shares redeemed		331,417
Management fees		229,228
Swap settlement		208,200
Return of securities lending collateral		94,247
Transfer agent and administrative fees		83,574
Portfolio accounting fees		28,609
Distribution and service fees		17,723
Trustees’ fees*		5,593
Miscellaneous		401,147
Total liabilities		12,920,722
Commitments and contingent liabilities (Note 12)		—
Net assets	$	402,068,774
Net assets consist of:
Paid in capital	$	362,235,859
Total distributable earnings (loss)		39,832,915
Net assets	$	402,068,774
Investor Class:
Net assets	$	326,237,076
Capital shares outstanding		2,707,091
Net asset value per share	$	120.51
A-Class:
Net assets	$	18,595,796
Capital shares outstanding		167,190
Net asset value per share	$	111.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	116.78
C-Class:
Net assets	$	3,576,171
Capital shares outstanding		36,883
Net asset value per share	$	96.96
H-Class:
Net assets	$	53,659,731
Capital shares outstanding		481,930
Net asset value per share	$	111.34

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

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

NOVA FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers	$	3,210,519
Dividends from securities of affiliated issuers		422,588
Interest		25,267
Income from securities lending, net		1,663
Total investment income		3,660,037
Expenses:
Management fees		2,001,410
Distribution and service fees:
A-Class		40,363
C-Class		38,048
H-Class		103,134
Transfer agent and administrative fees		740,040
Portfolio accounting fees		255,066
Professional fees		81,101
Trustees’ fees*		39,678
Custodian fees		37,292
Line of credit fees		1,635
Interest expense		83
Miscellaneous		404,392
Total expenses		3,742,242
Less:
Expenses waived by Adviser		(34,760	)
Net expenses		3,707,482
Net investment loss		(47,445	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	32,820,295
Investments in affiliated issuers		9,511
Swap agreements		55,840,352
Futures contracts		24,288,964
Net realized gain		112,959,122
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		34,654,389
Investments in affiliated issuers		767,323
Swap agreements		2,322,272
Futures contracts		12,728
Net change in unrealized appreciation (depreciation)		37,756,712
Net realized and unrealized gain		150,715,834
Net increase in net assets resulting from operations	$	150,668,389

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

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	(47,445	)	$	1,903,401
Net realized gain (loss) on investments		112,959,122			(3,430,932	)
Net change in unrealized appreciation (depreciation) on investments		37,756,712			(25,554,771	)
Net increase (decrease) in net assets resulting from operations		150,668,389			(27,082,302	)
Distributions to shareholders:
Investor Class		(1,491,578	)		—
A-Class		(113,091	)		—
C-Class		(25,544	)		—
H-Class		(282,790	)		—
Total distributions to shareholders		(1,913,003	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,819,212,195			1,884,601,216
A-Class		91,209,558			134,948,538
C-Class		135,213			1,007,068
H-Class		388,284,290			389,155,191
Distributions reinvested
Investor Class		1,356,726			—
A-Class		110,585			—
C-Class		25,096			—
H-Class		282,790			—
Cost of shares redeemed
Investor Class		(1,645,409,127	)		(2,067,340,105	)
A-Class		(89,125,245	)		(150,323,713	)
C-Class		(2,253,309	)		(1,175,937	)
H-Class		(363,214,241	)		(433,198,924	)
Net increase (decrease) from capital share transactions		200,614,531			(242,326,666	)
Net increase (decrease) in net assets		349,369,917			(269,408,968	)
Net assets:
Beginning of year		52,698,857			322,107,825
End of year	$	402,068,774		$	52,698,857
Capital share activity:
Shares sold
Investor Class		19,353,964			22,279,494
A-Class		1,009,467			1,760,253
C-Class		1,947			16,542
H-Class		4,730,952			4,984,254
Shares issued from reinvestment of distributions
Investor Class		12,683			—
A-Class		1,119			—
C-Class		291			—
H-Class		2,860			—
Shares redeemed
Investor Class		(17,254,830	)		(24,844,947	)
A-Class		(969,642	)		(1,999,067	)
C-Class		(29,742	)		(18,108	)
H-Class		(4,320,709	)		(5,603,433	)
Net increase (decrease) in shares		2,538,360			(3,425,012	)

24 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	63.62		$	76.83		$	69.63		$	60.14		$	49.18
Income (loss) from investment operations:
Net investment income (loss)a		.05			.61			.48			.40			.08
Net gain (loss) on investments (realized and unrealized)		57.43			(13.82	)		6.72			10.50			11.56
Total from investment operations		57.48			(13.21	)		7.20			10.90			11.64
Less distributions from:
Net investment income		(.59	)		—			—			(.02	)		(.02	)
Net realized gains		—			—			—			(1.39	)		(.66	)
Total distributions		(.59	)		—			—			(1.41	)		(.68	)
Net asset value, end of period	$	120.51		$	63.62		$	76.83		$	69.63		$	60.14
Total Return		90.46	%		(17.19	%)		10.34	%		18.09	%		23.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	326,237		$	37,874		$	242,831		$	451,764		$	78,531
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.71	%		0.65	%		0.58	%		0.15	%
Total expensesb		1.33	%		1.37	%		1.35	%		1.26	%		1.28	%
Net expenses c		1.32	%		1.36	%		1.35	%		1.26	%		1.28	%
Portfolio turnover rate		785	%		690	%		1,078	%		2,067	%		1,288	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	58.89		$	71.28		$	64.72		$	56.18		$	46.08
Income (loss) from investment operations:
Net investment income (loss)a		(.18	)		.40			.28			.25			(.02	)
Net gain (loss) on investments (realized and unrealized)		53.11			(12.79	)		6.28			9.70			10.80
Total from investment operations		52.93			(12.39	)		6.56			9.95			10.78
Less distributions from:
Net investment income		(.59	)		—			—			(.02	)		(.02	)
Net realized gains		—			—			—			(1.39	)		(.66	)
Total distributions		(.59	)		—			—			(1.41	)		(.68	)
Net asset value, end of period	$	111.23		$	58.89		$	71.28		$	64.72		$	56.18
TotalReturnd		90.00	%		(17.38	%)		10.14	%		17.68	%		23.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,596		$	7,435		$	26,022		$	35,094		$	3,528
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		0.52	%		0.41	%		0.39	%		(0.05	%)
Total expensesb		1.59	%		1.62	%		1.60	%		1.51	%		1.53	%
Net expenses c		1.58	%		1.61	%		1.60	%		1.51	%		1.53	%
Portfolio turnover rate		785	%		690	%		1,078	%		2,067	%		1,288	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	51.77		$	63.15		$	57.77		$	50.57		$	41.86
Income (loss) from investment operations:
Net investment income (loss)a		(.74	)		(.22	)		(.20	)		(.27	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		46.52			(11.16	)		5.58			8.88			9.79
Total from investment operations		45.78			(11.38	)		5.38			8.61			9.39
Less distributions from:
Net investment income		(.59	)		—			—			(.02	)		(.02	)
Net realized gains		—			—			—			(1.39	)		(.66	)
Total distributions		(.59	)		—			—			(1.41	)		(.68	)
Net asset value, end of period	$	96.96		$	51.77		$	63.15		$	57.77		$	50.57
Total Returnd		88.56	%		(18.02	%)		9.31	%		17.01	%		22.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,576		$	3,333		$	4,165		$	9,952		$	9,676
Ratios to average net assets:
Net investment income (loss)		(0.97	%)		(0.32	%)		(0.33	%)		(0.48	%)		(0.89	%)
Total expensesb		2.35	%		2.38	%		2.35	%		2.28	%		2.27	%
Net expenses c		2.33	%		2.37	%		2.35	%		2.28	%		2.27	%
Portfolio turnover rate		785	%		690	%		1,078	%		2,067	%		1,288	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	58.94		$	71.35		$	64.80		$	56.15		$	46.06
Income (loss) from investment operations:
Net investment income (loss)a		(.18	)		.36			.30			.19			(.07	)
Net gain (loss) on investments (realized and unrealized)		53.17			(12.77	)		6.25			9.87			10.84
Total from investment operations		52.99			(12.41	)		6.55			10.06			10.77
Less distributions from:
Net investment income		(.59	)		—			—			(.02	)		(.02	)
Net realized gains		—			—			—			(1.39	)		(.66	)
Total distributions		(.59	)		—			—			(1.41	)		(.68	)
Net asset value, end of period	$	111.34		$	58.94		$	71.35		$	64.80		$	56.15
Total Return		90.03	%		(17.39	%)		10.11	%		17.88	%		23.56	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,660		$	4,057		$	49,090		$	28,985		$	17,716
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		0.46	%		0.44	%		0.30	%		(0.15	%)
Total expensesb		1.59	%		1.62	%		1.61	%		1.52	%		1.52	%
Net expenses c		1.58	%		1.61	%		1.61	%		1.52	%		1.52	%
Portfolio turnover rate		785	%		690	%		1,078	%		2,067	%		1,288	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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”).

For the one-year period ended March 31, 2021, S&P 500^® Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the S&P 500 Index.

S&P 500^® Fund H-Class returned 53.64%, while the S&P 500 Index returned 56.35%.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Financials.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Microsoft Corp., and Amazon.com, Inc. The holdings detracting the most were Gilead Sciences, Inc. and Biogen, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	4.6%
Microsoft Corp.	4.2%
Amazon.com, Inc.	3.1%
Facebook, Inc. — Class A	1.7%
Alphabet, Inc. — Class A	1.5%
Alphabet, Inc. — Class C	1.4%
Tesla, Inc.	1.2%
Berkshire Hathaway, Inc. — Class B	1.2%
JPMorgan Chase & Co.	1.1%
Johnson & Johnson	1.0%
Top Ten Total	21.0%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

28 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	53.64%	14.29%	12.00%
A-Class Shares with sales charge‡	46.33%	13.18%	11.46%
C-Class Shares	52.49%	13.44%	11.16%
C-Class Shares with CDSC§	51.49%	13.44%	11.16%
H-Class Shares	53.64%	14.30%	12.01%
S&P 500 Index	56.35%	16.29%	13.91%

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

THE RYDEX FUNDS ANNUAL REPORT | 29

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 79.5%
Technology - 17.8%
Apple, Inc.		57,568	$	7,031,931
Microsoft Corp.		27,513		6,486,740
NVIDIA Corp.		2,262		1,207,750
Intel Corp.		14,821		948,544
Adobe, Inc.*		1,749		831,422
salesforce.com, Inc.*		3,348		709,341
Broadcom, Inc.		1,489		690,390
Accenture plc — Class A		2,314		639,242
Texas Instruments, Inc.		3,357		634,439
QUALCOMM, Inc.		4,144		549,453
Oracle Corp.		6,766		474,770
Applied Materials, Inc.		3,348		447,293
International Business Machines Corp.		3,260		434,428
Intuit, Inc.		999		382,677
Micron Technology, Inc.*		4,081		359,985
ServiceNow, Inc.*		715		357,579
Advanced Micro Devices, Inc.*		4,421		347,049
Fidelity National Information Services, Inc.		2,266		318,622
Lam Research Corp.		521		310,120
Activision Blizzard, Inc.		2,826		262,818
Fiserv, Inc.*		2,100		249,984
Autodesk, Inc.*		802		222,274
Analog Devices, Inc.		1,346		208,738
NXP Semiconductor N.V.		1,010		203,353
KLA Corp.		562		185,685
Roper Technologies, Inc.		383		154,479
Microchip Technology, Inc.		982		152,426
Cognizant Technology Solutions Corp. — Class A		1,936		151,240
HP, Inc.		4,569		145,066
Electronic Arts, Inc.		1,049		142,003
Cadence Design Systems, Inc.*		1,018		139,456
Synopsys, Inc.*		556		137,766
MSCI, Inc. — Class A		301		126,203
Paychex, Inc.		1,171		114,781
Xilinx, Inc.		897		111,138
Skyworks Solutions, Inc.		602		110,455
ANSYS, Inc.*		316		107,301
Zebra Technologies Corp. — Class A*		195		94,610
Fortinet, Inc.*		494		91,103
Maxim Integrated Products, Inc.		978		89,360
Cerner Corp.		1,117		80,290
Qorvo, Inc.*		413		75,455
Hewlett Packard Enterprise Co.		4,746		74,702
Western Digital Corp.		1,117		74,560
Take-Two Interactive Software, Inc.*		420		74,214
Teradyne, Inc.		608		73,981
Paycom Software, Inc.*		179		66,241
Broadridge Financial Solutions, Inc.		422		64,608
Citrix Systems, Inc.		449		63,022
Tyler Technologies, Inc.*		148		62,831
Akamai Technologies, Inc.*		595		60,631
NetApp, Inc.		812		59,008
Seagate Technology plc		733		56,258
Monolithic Power Systems, Inc.		156		55,101
Leidos Holdings, Inc.		487		46,888
Jack Henry & Associates, Inc.		278		42,178
DXC Technology Co.*		929		29,041
IPG Photonics Corp.*		131		27,633
Total Technology				27,448,656
Consumer, Non-cyclical - 16.1%
Johnson & Johnson		9,589		1,575,952
UnitedHealth Group, Inc.		3,448		1,282,897
Procter & Gamble Co.		8,983		1,216,568
PayPal Holdings, Inc.*		4,272		1,037,412
Abbott Laboratories		6,462		774,406
Coca-Cola Co.		14,148		745,741
Pfizer, Inc.		20,347		737,172
PepsiCo, Inc.		5,033		711,918
Merck & Company, Inc.		9,230		711,541
AbbVie, Inc.		6,442		697,153
Thermo Fisher Scientific, Inc.		1,437		655,818
Medtronic plc		4,918		580,963
Eli Lilly & Co.		2,902		542,152
Amgen, Inc.		2,107		524,242
Danaher Corp.		2,312		520,385
Bristol-Myers Squibb Co.		8,173		515,962
Philip Morris International, Inc.		5,681		504,132
CVS Health Corp.		4,784		359,900
Altria Group, Inc.		6,780		346,865
Anthem, Inc.		893		320,542
Intuitive Surgical, Inc.*		429		317,005
Cigna Corp.		1,283		310,152
S&P Global, Inc.		878		309,820
Mondelez International, Inc. — Class A		5,151		301,488
Gilead Sciences, Inc.		4,584		296,264
Automatic Data Processing, Inc.		1,561		294,202
Stryker Corp.		1,194		290,835
Zoetis, Inc.		1,733		272,913
Becton Dickinson and Co.		1,060		257,739
Colgate-Palmolive Co.		3,095		243,979
Estee Lauder Companies, Inc. — Class A		838		243,732
Global Payments, Inc.		1,077		217,102
Illumina, Inc.*		532		204,320
Vertex Pharmaceuticals, Inc.*		948		203,716
Boston Scientific Corp.*		5,170		199,820
Humana, Inc.		470		197,047
Edwards Lifesciences Corp.*		2,278		190,532
HCA Healthcare, Inc.		967		182,125
Regeneron Pharmaceuticals, Inc.*		384		181,686
Moody’s Corp.		587		175,284
Kimberly-Clark Corp.		1,233		171,448
Biogen, Inc.*		556		155,541
Baxter International, Inc.		1,843		155,439
IDEXX Laboratories, Inc.*		312		152,665
Sysco Corp.		1,862		146,614
Align Technology, Inc.*		263		142,422
Constellation Brands, Inc. — Class A		620		141,360
General Mills, Inc.		2,230		136,744
Centene Corp.*		2,122		135,617

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® FUND

	Shares		Value
IQVIA Holdings, Inc.*		698	$	134,812
IHS Markit Ltd.		1,360		131,621
Corteva, Inc.		2,714		126,527
DexCom, Inc.*		351		126,146
Monster Beverage Corp.*		1,349		122,880
Alexion Pharmaceuticals, Inc.*		802		122,634
Zimmer Biomet Holdings, Inc.		758		121,341
Archer-Daniels-Midland Co.		2,037		116,109
McKesson Corp.		580		113,123
Cintas Corp.		322		109,902
Verisk Analytics, Inc. — Class A		594		104,954
ResMed, Inc.		531		103,025
Kroger Co.		2,777		99,944
Kraft Heinz Co.		2,365		94,600
Laboratory Corporation of America Holdings*		356		90,791
Clorox Co.		459		88,532
United Rentals, Inc.*		263		86,608
Hershey Co.		535		84,616
FleetCor Technologies, Inc.*		304		81,663
McCormick & Company, Inc.		908		80,957
Equifax, Inc.		444		80,422
Tyson Foods, Inc. — Class A		1,075		79,872
Church & Dwight Company, Inc.		894		78,091
West Pharmaceutical Services, Inc.		270		76,081
Teleflex, Inc.		170		70,628
Hologic, Inc.*		940		69,917
MarketAxess Holdings, Inc.		139		69,211
Cooper Companies, Inc.		179		68,752
Conagra Brands, Inc.		1,782		67,003
Catalent, Inc.*		621		65,397
Cardinal Health, Inc.		1,071		65,063
AmerisourceBergen Corp. — Class A		538		63,522
Quest Diagnostics, Inc.		487		62,502
Viatris, Inc.*		4,403		61,510
STERIS plc		311		59,239
Gartner, Inc.*		324		59,146
Varian Medical Systems, Inc.*		335		59,138
Kellogg Co.		928		58,742
Avery Dennison Corp.		303		55,646
Incyte Corp.*		682		55,426
ABIOMED, Inc.*		165		52,590
PerkinElmer, Inc.		409		52,471
Dentsply Sirona, Inc.		799		50,984
J M Smucker Co.		400		50,612
Hormel Foods Corp.		1,025		48,975
Brown-Forman Corp. — Class B		666		45,934
Bio-Rad Laboratories, Inc. — Class A*		79		45,122
Quanta Services, Inc.		505		44,430
Lamb Weston Holdings, Inc.		534		41,374
Universal Health Services, Inc. — Class B		284		37,883
Campbell Soup Co.		740		37,200
Henry Schein, Inc.*		520		36,005
Molson Coors Beverage Co. — Class B*		687		35,140
Nielsen Holdings plc		1,305		32,821
Robert Half International, Inc.		413		32,243
DaVita, Inc.*		263		28,344
Rollins, Inc.		808		27,811
Perrigo Company plc		486		19,668
Total Consumer, Non-cyclical				24,775,032
Communications - 12.8%
Amazon.com, Inc.*		1,561		4,829,859
Facebook, Inc. — Class A*		8,775		2,584,501
Alphabet, Inc. — Class A*		1,097		2,262,584
Alphabet, Inc. — Class C*		1,051		2,174,130
Walt Disney Co.*		6,622		1,221,891
Comcast Corp. — Class A		16,675		902,284
Verizon Communications, Inc.		15,095		877,774
Netflix, Inc.*		1,616		843,003
Cisco Systems, Inc.		15,401		796,386
AT&T, Inc.		26,016		787,504
Booking Holdings, Inc.*		149		347,146
Charter Communications, Inc. — Class A*		516		318,382
T-Mobile US, Inc.*		2,131		266,993
Twitter, Inc.*		2,912		185,291
eBay, Inc.		2,358		144,404
Corning, Inc.		2,803		121,959
Motorola Solutions, Inc.		617		116,027
ViacomCBS, Inc. — Class B		2,143		96,649
Etsy, Inc.*		460		92,768
Expedia Group, Inc.*		505		86,921
CDW Corp.		514		85,195
VeriSign, Inc.*		363		72,150
Arista Networks, Inc.*		200		60,378
Omnicom Group, Inc.		784		58,134
Lumen Technologies, Inc.		3,601		48,073
F5 Networks, Inc.*		225		46,939
NortonLifeLock, Inc.		2,123		45,135
Fox Corp. — Class A		1,220		44,054
Interpublic Group of Companies, Inc.		1,425		41,610
Discovery, Inc. — Class C*		1,057		38,993
News Corp. — Class A		1,427		36,289
DISH Network Corp. — Class A*		903		32,689
Juniper Networks, Inc.		1,197		30,320
Discovery, Inc. — Class A*,1		593		25,772
Fox Corp. — Class B		561		19,596
News Corp. — Class B		444		10,416
Total Communications				19,752,199
Financial - 12.1%
Berkshire Hathaway, Inc. — Class B*		6,955		1,776,794
JPMorgan Chase & Co.		11,132		1,694,624
Visa, Inc. — Class A		6,187		1,309,974
Mastercard, Inc. — Class A		3,198		1,138,648
Bank of America Corp.		27,714		1,072,255
Wells Fargo & Co.		15,081		589,215
Citigroup, Inc.		7,614		553,918
Morgan Stanley		5,474		425,111
Goldman Sachs Group, Inc.		1,255		410,385
BlackRock, Inc. — Class A		518		390,551
American Tower Corp. — Class A REIT		1,621		387,516
Charles Schwab Corp.		5,459		355,818

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® FUND

	Shares		Value
American Express Co.		2,380	$	336,627
Truist Financial Corp.		4,914		286,584
Prologis, Inc. REIT		2,698		285,988
U.S. Bancorp		4,986		275,776
PNC Financial Services Group, Inc.		1,547		271,359
Crown Castle International Corp. REIT		1,573		270,761
CME Group, Inc. — Class A		1,310		267,541
Chubb Ltd.		1,642		259,387
Intercontinental Exchange, Inc.		2,049		228,832
Marsh & McLennan Companies, Inc.		1,854		225,817
Equinix, Inc. REIT		326		221,546
Capital One Financial Corp.		1,675		213,110
Progressive Corp.		2,137		204,319
Aon plc — Class A		824		189,611
MetLife, Inc.		2,742		166,686
American International Group, Inc.		3,155		145,792
Digital Realty Trust, Inc. REIT		1,025		144,361
T. Rowe Price Group, Inc.		832		142,771
Bank of New York Mellon Corp.		2,943		139,174
Travelers Companies, Inc.		920		138,368
Public Storage REIT		555		136,952
Simon Property Group, Inc. REIT		1,198		136,296
Prudential Financial, Inc.		1,448		131,913
Allstate Corp.		1,105		126,964
Aflac, Inc.		2,336		119,556
SBA Communications Corp. REIT		399		110,742
Welltower, Inc. REIT		1,523		109,093
State Street Corp.		1,283		107,785
Willis Towers Watson plc		470		107,574
First Republic Bank		642		107,054
Discover Financial Services		1,119		106,294
Ameriprise Financial, Inc.		426		99,024
SVB Financial Group*		197		97,251
Fifth Third Bancorp		2,594		97,145
Weyerhaeuser Co. REIT		2,728		97,117
CBRE Group, Inc. — Class A*		1,224		96,830
AvalonBay Communities, Inc. REIT		509		93,916
Equity Residential REIT		1,251		89,609
Arthur J Gallagher & Co.		707		88,212
Hartford Financial Services Group, Inc.		1,304		87,094
Realty Income Corp. REIT		1,362		86,487
Synchrony Financial		1,981		80,547
Northern Trust Corp.		760		79,884
Alexandria Real Estate Equities, Inc. REIT		464		76,235
Ventas, Inc. REIT		1,367		72,916
Regions Financial Corp.		3,504		72,393
M&T Bank Corp.		469		71,105
KeyCorp		3,534		70,609
Citizens Financial Group, Inc.		1,551		68,477
Essex Property Trust, Inc. REIT		237		64,426
Extra Space Storage, Inc. REIT		482		63,889
Healthpeak Properties, Inc. REIT		1,965		62,369
Nasdaq, Inc.		421		62,081
Mid-America Apartment Communities, Inc. REIT		417		60,198
Huntington Bancshares, Inc.		3,711		58,337
Duke Realty Corp. REIT		1,363		57,151
Cincinnati Financial Corp.		547		56,390
Principal Financial Group, Inc.		925		55,463
Raymond James Financial, Inc.		447		54,784
Boston Properties, Inc. REIT		517		52,351
UDR, Inc. REIT		1,083		47,500
Host Hotels & Resorts, Inc. REIT*		2,573		43,355
Loews Corp.		828		42,460
Lincoln National Corp.		658		40,974
Iron Mountain, Inc. REIT		1,052		38,935
Cboe Global Markets, Inc.		391		38,588
W R Berkley Corp.		511		38,504
Western Union Co.		1,499		36,965
Comerica, Inc.		508		36,444
Everest Re Group Ltd.		146		36,180
Invesco Ltd.		1,373		34,627
Globe Life, Inc.		347		33,531
Zions Bancorp North America		599		32,921
Regency Centers Corp. REIT		576		32,665
Assurant, Inc.		211		29,913
Kimco Realty Corp. REIT		1,577		29,569
Franklin Resources, Inc.		996		29,482
People’s United Financial, Inc.		1,552		27,781
Vornado Realty Trust REIT		572		25,963
Federal Realty Investment Trust REIT		255		25,870
Unum Group		743		20,678
Total Financial				18,714,637
Consumer, Cyclical - 7.8%
Tesla, Inc.*		2,801		1,870,872
Home Depot, Inc.		3,927		1,198,717
Walmart, Inc.		5,057		686,892
NIKE, Inc. — Class B		4,638		616,344
McDonald’s Corp.		2,720		609,661
Costco Wholesale Corp.		1,615		569,255
Lowe’s Companies, Inc.		2,667		507,210
Starbucks Corp.		4,295		469,315
Target Corp.		1,827		361,874
TJX Companies, Inc.		4,380		289,737
General Motors Co.*		4,626		265,810
Dollar General Corp.		894		181,142
Ford Motor Co.*		14,255		174,624
Ross Stores, Inc.		1,299		155,763
Chipotle Mexican Grill, Inc. — Class A*		103		146,345
Marriott International, Inc. — Class A*		970		143,667
Walgreens Boots Alliance, Inc.		2,616		143,618
Cummins, Inc.		540		139,919
Aptiv plc*		985		135,831
Southwest Airlines Co.*		2,155		131,584
O’Reilly Automotive, Inc.*		256		129,856
Hilton Worldwide Holdings, Inc.*		1,013		122,492
Yum! Brands, Inc.		1,095		118,457
PACCAR, Inc.		1,266		117,637
AutoZone, Inc.*		81		113,748
Delta Air Lines, Inc.*		2,328		112,396
DR Horton, Inc.		1,207		107,568
Fastenal Co.		2,095		105,337

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® FUND

	Shares		Value
Lennar Corp. — Class A		1,001	$	101,331
Dollar Tree, Inc.*		858		98,207
Best Buy Company, Inc.		841		96,555
VF Corp.		1,172		93,666
Copart, Inc.*		759		82,435
CarMax, Inc.*		593		78,667
Carnival Corp.*		2,910		77,232
Tractor Supply Co.		424		75,082
Las Vegas Sands Corp.*		1,198		72,790
Royal Caribbean Cruises Ltd.*		799		68,402
Darden Restaurants, Inc.		475		67,450
United Airlines Holdings, Inc.*		1,162		66,861
Caesars Entertainment, Inc.*		760		66,462
WW Grainger, Inc.		160		64,149
Ulta Beauty, Inc.*		206		63,689
NVR, Inc.*		13		61,242
Genuine Parts Co.		527		60,916
MGM Resorts International		1,498		56,909
Penn National Gaming, Inc.*		542		56,823
American Airlines Group, Inc.*		2,333		55,759
L Brands, Inc.*		852		52,705
Domino’s Pizza, Inc.		142		52,226
PulteGroup, Inc.		970		50,867
Pool Corp.		147		50,750
Whirlpool Corp.		229		50,460
Wynn Resorts Ltd.*		384		48,142
Hasbro, Inc.		466		44,792
Live Nation Entertainment, Inc.*		524		44,357
Advance Auto Parts, Inc.		239		43,854
LKQ Corp.*		1,018		43,092
Tapestry, Inc.*		1,014		41,787
Mohawk Industries, Inc.*		215		41,347
BorgWarner, Inc.		872		40,426
Newell Brands, Inc.		1,379		36,930
Norwegian Cruise Line Holdings Ltd.*,1		1,325		36,557
Alaska Air Group, Inc.*		453		31,352
PVH Corp.*		259		27,377
Hanesbrands, Inc.		1,272		25,020
Gap, Inc.		750		22,335
Leggett & Platt, Inc.		485		22,140
Ralph Lauren Corp. — Class A*		176		21,676
Under Armour, Inc. — Class A*		688		15,246
Under Armour, Inc. — Class C*		711		13,125
Total Consumer, Cyclical				12,046,861
Industrial - 6.8%
Honeywell International, Inc.		2,537		550,707
Union Pacific Corp.		2,443		538,462
Boeing Co.*		2,001		509,695
Caterpillar, Inc.		1,989		461,189
United Parcel Service, Inc. — Class B		2,625		446,224
Raytheon Technologies Corp.		5,543		428,308
Deere & Co.		1,143		427,642
General Electric Co.		31,984		419,950
3M Co.		2,112		406,940
Lockheed Martin Corp.		899		332,180
CSX Corp.		2,782		268,240
FedEx Corp.		890		252,796
Norfolk Southern Corp.		919		246,770
Illinois Tool Works, Inc.		1,051		232,817
Eaton Corporation plc		1,452		200,783
Emerson Electric Co.		2,189		197,492
Waste Management, Inc.		1,420		183,208
Northrop Grumman Corp.		566		183,180
Johnson Controls International plc		2,627		156,753
TE Connectivity Ltd.		1,207		155,836
General Dynamics Corp.		846		153,600
L3Harris Technologies, Inc.		750		152,010
Parker-Hannifin Corp.		471		148,568
Amphenol Corp. — Class A		2,186		144,210
Trane Technologies plc		870		144,037
Agilent Technologies, Inc.		1,112		141,380
Carrier Global Corp.		2,981		125,858
Stanley Black & Decker, Inc.		587		117,206
TransDigm Group, Inc.*		199		116,996
Rockwell Automation, Inc.		424		112,546
AMETEK, Inc.		841		107,421
Otis Worldwide Corp.		1,487		101,785
Ball Corp.		1,196		101,349
Mettler-Toledo International, Inc.*		85		98,234
Keysight Technologies, Inc.*		679		97,369
Kansas City Southern		331		87,358
Fortive Corp.		1,233		87,099
Old Dominion Freight Line, Inc.		350		84,143
Vulcan Materials Co.		484		81,675
Republic Services, Inc. — Class A		768		76,301
Martin Marietta Materials, Inc.		227		76,231
Generac Holdings, Inc.*		229		74,986
Garmin Ltd.		545		71,858
Dover Corp.		524		71,856
Trimble, Inc.*		916		71,256
Xylem, Inc.		658		69,208
Ingersoll Rand, Inc.*		1,360		66,926
Amcor plc		5,698		66,553
Expeditors International of Washington, Inc.		618		66,552
Waters Corp.*		227		64,506
Jacobs Engineering Group, Inc.		475		61,403
IDEX Corp.		277		57,982
Masco Corp.		938		56,186
Teledyne Technologies, Inc.*		135		55,843
Westinghouse Air Brake Technologies Corp.		648		51,296
J.B. Hunt Transport Services, Inc.		305		51,261
Westrock Co.		961		50,020
Fortune Brands Home & Security, Inc.		506		48,485
CH Robinson Worldwide, Inc.		488		46,570
Packaging Corporation of America		346		46,530
Textron, Inc.		828		46,434
Howmet Aerospace, Inc.*		1,424		45,753
Snap-on, Inc.		198		45,687
Allegion plc		331		41,580
Pentair plc		606		37,766
A O Smith Corp.		494		33,399

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® FUND

	Shares		Value
Huntington Ingalls Industries, Inc.		147	$	30,260
FLIR Systems, Inc.		479		27,049
Sealed Air Corp.		565		25,888
Total Industrial				10,437,641
Energy - 2.3%
Exxon Mobil Corp.		15,443		862,183
Chevron Corp.		7,027		736,359
ConocoPhillips		4,942		261,778
EOG Resources, Inc.		2,129		154,416
Schlumberger N.V.		5,101		138,696
Phillips 66		1,593		129,893
Marathon Petroleum Corp.		2,376		127,092
Pioneer Natural Resources Co.		751		119,274
Kinder Morgan, Inc.		7,102		118,248
Valero Energy Corp.		1,490		106,684
Williams Companies, Inc.		4,428		104,900
ONEOK, Inc.		1,623		82,221
Occidental Petroleum Corp.		3,058		81,404
Enphase Energy, Inc.*		471		76,377
Hess Corp.		997		70,548
Halliburton Co.		3,242		69,573
Baker Hughes Co.		2,659		57,461
Diamondback Energy, Inc.		660		48,503
Devon Energy Corp.		2,161		47,218
Marathon Oil Corp.		2,880		30,759
Cabot Oil & Gas Corp. — Class A		1,457		27,363
APA Corp.		1,378		24,666
HollyFrontier Corp.		545		19,500
NOV, Inc.*		1,416		19,428
Total Energy				3,514,544
Utilities - 2.1%
NextEra Energy, Inc.		7,149		540,536
Duke Energy Corp.		2,804		270,670
Southern Co.		3,854		239,565
Dominion Energy, Inc.		2,939		223,246
Exelon Corp.		3,562		155,802
American Electric Power Company, Inc.		1,812		153,476
Sempra Energy		1,104		146,368
Xcel Energy, Inc.		1,961		130,426
Public Service Enterprise Group, Inc.		1,843		110,967
Eversource Energy		1,251		108,324
WEC Energy Group, Inc.		1,151		107,722
American Water Works Company, Inc.		662		99,247
DTE Energy Co.		707		94,130
Consolidated Edison, Inc.		1,249		93,425
Edison International		1,384		81,102
PPL Corp.		2,805		80,896
Ameren Corp.		924		75,177
Entergy Corp.		731		72,713
FirstEnergy Corp.		1,982		68,756
AES Corp.		2,437		65,336
CMS Energy Corp.		1,054		64,526
Alliant Energy Corp.		912		49,394
Evergy, Inc.		828		49,291
Atmos Energy Corp.		468		46,262
CenterPoint Energy, Inc.		2,012		45,572
NiSource, Inc.		1,429		34,453
NRG Energy, Inc.		893		33,693
Pinnacle West Capital Corp.		411		33,435
Total Utilities				3,274,510
Basic Materials - 1.7%
Linde plc		1,907		534,227
Air Products and Chemicals, Inc.		807		227,041
Sherwin-Williams Co.		294		216,975
Ecolab, Inc.		907		194,161
Newmont Corp.		2,919		175,928
Freeport-McMoRan, Inc.		5,320		175,188
Dow, Inc.		2,718		173,789
DuPont de Nemours, Inc.		1,964		151,778
PPG Industries, Inc.		864		129,825
International Flavors & Fragrances, Inc.		907		126,626
LyondellBasell Industries N.V. — Class A		939		97,703
Nucor Corp.		1,087		87,253
International Paper Co.		1,434		77,536
Celanese Corp. — Class A		416		62,321
Albemarle Corp.		425		62,097
Eastman Chemical Co.		496		54,620
FMC Corp.		472		52,208
Mosaic Co.		1,258		39,765
CF Industries Holdings, Inc.		781		35,442
Total Basic Materials				2,674,483
Total Common Stocks
(Cost $84,468,825)				122,638,563
	Face Amount
U.S. TREASURY BILLS†† - 4.2%
U.S. Treasury Bills
0.01% due 04/27/212	$	5,100,000		5,099,935
0.09% due 04/01/212,3		500,000		500,000
U.S. Cash Management Bill
0.03% due 08/03/212		900,000		899,911
Total U.S. Treasury Bills
(Cost $6,499,893)				6,499,846
REPURCHASE AGREEMENTS††,4 - 13.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213		11,356,244		11,356,244
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		5,163,101		5,163,101
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		4,712,135		4,712,135
Total Repurchase Agreements
(Cost $21,231,480)				21,231,480

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,5 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%6		41,708		41,708
Total Securities Lending Collateral
(Cost $41,708)				41,708
Total Investments - 97.5%
(Cost $112,241,906)			$	150,411,597
Other Assets & Liabilities, net - 2.5%				3,893,996
Total Net Assets - 100.0%			$	154,305,593

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P 500 Index	0.54% (1 Week USD LIBOR + 0.45%)	At Maturity		04/08/21		4,576	$	18,178,343	$	24,350
BNP Paribas	S&P 500 Index	0.66% (1 Month USD LIBOR + 0.55%)	At Maturity		04/08/21		251		997,152		10,430
Barclays Bank plc	S&P 500 Index	0.54% (1 Week USD LIBOR + 0.45%)	At Maturity		04/07/21		3,133		12,446,419		7,786
								$	31,621,914	$	42,566

*	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 a portion of this security is on loan at March 31, 2021 — See Note 7.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	Repurchase Agreements — See Note 6.
5	Securities lending collateral — See Note 7.
6	Rate indicated is the 7-day yield as of March 31, 2021.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P 500® FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	122,638,563	$	—	$	—	$	122,638,563
U.S. Treasury Bills		—		6,499,846		—		6,499,846
Repurchase Agreements		—		21,231,480		—		21,231,480
Securities Lending Collateral		41,708		—		—		41,708
Equity Index Swap Agreements**		—		42,566		—		42,566
Total Assets	$	122,680,271	$	27,773,892	$	—	$	150,454,163

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $41,120 of securities loaned (cost $91,010,426)	$	129,180,117
Repurchase agreements, at value (cost $21,231,480)		21,231,480
Cash		7,069
Segregated cash with broker		160,000
Unrealized appreciation on OTC swap agreements		42,566
Receivables:
Fund shares sold		4,999,377
Dividends		94,980
Swap settlement		36,383
Variation margin on futures contracts		4,788
Securities lending income		4
Interest		4
Total assets		155,756,768
Liabilities:
Payable for:
Securities purchased		899,911
Fund shares redeemed		139,624
Management fees		98,361
Return of securities lending collateral		41,708
Distribution and service fees		40,657
Transfer agent and administrative fees		35,279
Portfolio accounting fees		19,672
Trustees’ fees*		2,408
Miscellaneous		173,555
Total liabilities		1,451,175
Commitments and contingent liabilities (Note 12)		—
Net assets	$	154,305,593
Net assets consist of:
Paid in capital	$	130,922,288
Total distributable earnings (loss)		23,383,305
Net assets	$	154,305,593
A-Class:
Net assets	$	18,653,165
Capital shares outstanding		295,777
Net asset value per share	$	63.06
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.20
C-Class:
Net assets	$	12,039,796
Capital shares outstanding		220,828
Net asset value per share	$	54.52
H-Class:
Net assets	$	123,612,632
Capital shares outstanding		1,960,030
Net asset value per share	$	63.07

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	2,335,476
Interest		8,532
Income from securities lending, net		1,074
Total investment income		2,345,082
Expenses:
Management fees		1,158,635
Distribution and service fees:
A-Class		42,281
C-Class		113,638
H-Class		315,522
Transfer agent and administrative fees		432,296
Portfolio accounting fees		231,706
Professional fees		70,728
Trustees’ fees*		30,599
Custodian fees		22,462
Interest expense		13
Miscellaneous		213,943
Total expenses		2,631,823
Net investment loss		(286,741	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		23,842,043
Swap agreements		2,625,337
Futures contracts		2,389,472
Net realized gain		28,856,852
Net change in unrealized appreciation (depreciation) on:
Investments		28,649,981
Swap agreements		681,773
Futures contracts		(794,086	)
Net change in unrealized appreciation (depreciation)		28,537,668
Net realized and unrealized gain		57,394,520
Net increase in net assets resulting from operations	$	57,107,779

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

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

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(286,741	)	$	303,913
Net realized gain on investments		28,856,852			28,531,508
Net change in unrealized appreciation (depreciation) on investments		28,537,668			(30,796,646	)
Net increase (decrease) in net assets resulting from operations		57,107,779			(1,961,225	)
Distributions to shareholders:
A-Class		(2,097,148	)		(170,248	)
C-Class		(1,988,516	)		(224,547	)
H-Class		(17,353,786	)		(1,236,817	)
Total distributions to shareholders		(21,439,450	)		(1,631,612	)
Capital share transactions:
Proceeds from sale of shares
A-Class		81,748,960			87,906,591
C-Class		10,752,839			29,691,610
H-Class		770,668,766			769,142,083
Distributions reinvested
A-Class		2,020,425			161,590
C-Class		1,870,486			215,561
H-Class		17,262,763			1,225,304
Cost of shares redeemed
A-Class		(82,637,657	)		(95,911,253	)
C-Class		(12,101,344	)		(34,726,021	)
H-Class		(805,526,433	)		(774,454,754	)
Net decrease from capital share transactions		(15,941,195	)		(16,749,289	)
Net increase (decrease) in net assets		19,727,134			(20,342,126	)
Net assets:
Beginning of year		134,578,459			154,920,585
End of year	$	154,305,593		$	134,578,459
Capital share activity:
Shares sold
A-Class		1,376,150			1,691,515
C-Class		204,841			615,341
H-Class		13,337,703			14,338,970
Shares issued from reinvestment of distributions
A-Class		34,379			2,804
C-Class		36,734			4,209
H-Class		293,734			21,273
Shares redeemed
A-Class		(1,389,174	)		(1,813,839	)
C-Class		(237,843	)		(718,973	)
H-Class		(14,090,159	)		(14,269,930	)
Net decrease in shares		(433,635	)		(128,630	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	46.64		$	51.55		$	48.72		$	45.52		$	39.85
Income (loss) from investment operations:
Net investment income (loss)a		(.08	)		.17			.15			.13			.06
Net gain (loss) on investments (realized and unrealized)		24.50			(4.54	)		3.45			5.44			5.97
Total from investment operations		24.42			(4.37	)		3.60			5.57			6.03
Less distributions from:
Net investment income		(.02	)		(.12	)		(.05	)		(.12	)		(.05	)
Net realized gains		(7.98	)		(.42	)		(.72	)		(2.25	)		(.31	)
Total distributions		(8.00	)		(.54	)		(.77	)		(2.37	)		(.36	)
Net asset value, end of period	$	63.06		$	46.64		$	51.55		$	48.72		$	45.52
Total Returnb		53.64	%		(8.67	%)		7.59	%		12.16	%		15.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,653		$	12,798		$	20,307		$	21,041		$	20,960
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		0.31	%		0.30	%		0.27	%		0.14	%
Total expenses		1.65	%		1.68	%		1.67	%		1.58	%		1.57	%
Portfolio turnover rate		284	%		227	%		157	%		151	%		133	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	41.37		$	46.12		$	44.00		$	41.62		$	36.74
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.24	)		(.20	)		(.19	)		(.22	)
Net gain (loss) on investments (realized and unrealized)		21.61			(3.97	)		3.09			4.94			5.46
Total from investment operations		21.15			(4.21	)		2.89			4.75			5.24
Less distributions from:
Net investment income		(.02	)		(.12	)		(.05	)		(.12	)		(.05	)
Net realized gains		(7.98	)		(.42	)		(.72	)		(2.25	)		(.31	)
Total distributions		(8.00	)		(.54	)		(.77	)		(2.37	)		(.36	)
Net asset value, end of period	$	54.52		$	41.37		$	46.12		$	44.00		$	41.62
Total Returnb		52.49	%		(9.35	%)		6.78	%		11.29	%		14.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,040		$	8,981		$	14,599		$	20,484		$	20,931
Ratios to average net assets:
Net investment income (loss)		(0.88	%)		(0.50	%)		(0.45	%)		(0.44	%)		(0.57	%)
Total expenses		2.39	%		2.43	%		2.41	%		2.33	%		2.33	%
Portfolio turnover rate		284	%		227	%		157	%		151	%		133	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	46.64		$	51.54		$	48.71		$	45.51		$	39.84
Income (loss) from investment operations:
Net investment income (loss)a		(.08	)		.15			.16			.15			.07
Net gain (loss) on investments (realized and unrealized)		24.51			(4.51	)		3.44			5.42			5.96
Total from investment operations		24.43			(4.36	)		3.60			5.57			6.03
Less distributions from:
Net investment income		(.02	)		(.12	)		(.05	)		(.12	)		(.05	)
Net realized gains		(7.98	)		(.42	)		(.72	)		(2.25	)		(.31	)
Total distributions		(8.00	)		(.54	)		(.77	)		(2.37	)		(.36	)
Net asset value, end of period	$	63.07		$	46.64		$	51.54		$	48.71		$	45.51
Total Return		53.64	%		(8.65	%)		7.59	%		12.14	%		15.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	123,613		$	112,799		$	120,014		$	178,533		$	226,744
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		0.28	%		0.32	%		0.31	%		0.16	%
Total expenses		1.65	%		1.68	%		1.66	%		1.58	%		1.58	%
Portfolio turnover rate		284	%		227	%		157	%		151	%		133	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE S&P 500^® STRATEGY FUND

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

For the one-year period ended March 31, 2021, Inverse S&P 500^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index.

Inverse S&P 500^® Strategy Fund Investor Class returned -39.21%, while the S&P 500 Index returned 56.35% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Financials.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Microsoft Corp., and Amazon.com, Inc. The holdings detracting the most were Gilead Sciences, Inc. and Biogen, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 41

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	12.4%
Guggenheim Ultra Short Duration Fund — Institutional Class	9.3%
Total	21.7%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	(39.21%)	(15.93%)	(14.70%)
A-Class Shares	(39.38%)	(16.15%)	(14.91%)
A-Class Shares with sales charge‡	(42.26%)	(16.96%)	(15.33%)
C-Class Shares	(39.82%)	(16.78%)	(15.55%)
C-Class Shares with CDSC§	(40.41%)	(16.78%)	(15.55%)
S&P 500 Index	56.35%	16.29%	13.91%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(39.37%)	(16.14%)	(14.06%)
S&P 500 Index	56.35%	16.29%	13.22%

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

42 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 21.7%
Guggenheim Strategy Fund II1		282,633	$	7,060,175
Guggenheim Ultra Short Duration Fund — Institutional Class1		527,442		5,253,327
Total Mutual Funds
(Cost $12,230,892)				12,313,502
	Face Amount
FEDERAL AGENCY NOTES†† - 43.2%
Federal Farm Credit Bank
0.28% (U.S. Prime Rate - 2.98%, Rate Floor: 0.00%) due 05/10/212	$	5,000,000		5,001,259
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		4,500,000		4,514,247
0.29% (3 Month U.S. Treasury Bill Rate + 0.27%, Rate Floor: 0.00%) due 05/16/222		4,000,000		4,009,137
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		3,040,000		3,052,231
0.31% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		3,000,000		3,006,890
Fannie Mae
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/222		5,000,000		5,009,753
Total Federal Agency Notes
(Cost $24,539,656)				24,593,517

U.S. GOVERNMENT SECURITIES†† - 12.4%
U.S. Treasury Note
1.75% due 11/30/21	7,000,000		7,078,750
Total U.S. Government Securities
(Cost $7,076,274)			7,078,750
U.S. TREASURY BILLS†† - 8.1%
U.S. Treasury Bills
0.04% due 04/01/213,4	2,000,000		2,000,000
0.09% due 04/01/213,4	1,500,000		1,500,000
0.01% due 04/22/214,5	100,000		99,999
U.S. Cash Management Bill
0.03% due 08/03/214	1,000,000		999,901
Total U.S. Treasury Bills
(Cost $4,599,900)			4,599,900
REPURCHASE AGREEMENTS††,6 - 17.3%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	5,258,783		5,258,783
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213	2,390,898		2,390,898
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213	2,182,067		2,182,067
Total Repurchase Agreements
(Cost $9,831,748)			9,831,748
Total Investments - 102.7%
(Cost $58,278,470)		$	58,417,417
Other Assets & Liabilities, net - (2.7)%			(1,558,253	)
Total Net Assets - 100.0%		$	56,859,164

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Sold Short†
S&P 500 Index Mini Futures Contracts		41		Jun 2021	$	8,135,425	$	(24,089	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	S&P 500 Index	0.39% (1 Week USD LIBOR + 0.30%)	At Maturity		04/07/21		1,793	$	7,121,758	$	(72,241	)
Goldman Sachs International	S&P 500 Index	0.44% (1 Week USD LIBOR + 0.35%)	At Maturity		04/08/21		4,015		15,952,603		(163,358	)
BNP Paribas	S&P 500 Index	0.16% (1 Month USD LIBOR + 0.05%)	At Maturity		04/08/21		6,457		25,651,071		(273,402	)
								$	48,725,432	$	(509,001	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
INVERSE S&P 500® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Mutual Funds	$	12,313,502	$	—	$	—	$	12,313,502
Federal Agency Notes		—		24,593,517		—		24,593,517
U.S. Government Securities		—		7,078,750		—		7,078,750
U.S. Treasury Bills		—		4,599,900		—		4,599,900
Repurchase Agreements		—		9,831,748		—		9,831,748
Total Assets	$	12,313,502	$	46,103,915	$	—	$	58,417,417

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	24,089	$	—	$	—	$	24,089
Equity Index Swap Agreements**		—		509,001		—		509,001
Total Liabilities	$	24,089	$	509,001	$	—	$	533,090

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE S&P 500® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	6,797,326	$	—	$	—	$	—	$	262,849	$	7,060,175		282,633	$	119,880
Guggenheim Ultra Short Duration Fund — Institutional Class		4,355,562		800,000		—		—		97,765		5,253,327		527,442		60,246
	$	11,152,888	$	800,000	$	—	$	—	$	360,614	$	12,313,502			$	180,126

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $36,215,830)	$	36,272,167
Investments in affiliated issuers, at value (cost $12,230,892)		12,313,502
Repurchase agreements, at value (cost $9,831,748)		9,831,748
Segregated cash with broker		351,501
Receivables:
Interest		49,723
Fund shares sold		16,095
Dividends		12,740
Total assets		58,847,476
Liabilities:
Unrealized depreciation on OTC swap agreements		509,001
Payable for:
Securities purchased		999,901
Swap settlement		183,179
Fund shares redeemed		120,226
Management fees		44,705
Variation margin on futures contracts		42,640
Transfer agent and administrative fees		13,696
Portfolio accounting fees		5,091
Distribution and service fees		1,271
Trustees’ fees*		934
Miscellaneous		67,668
Total liabilities		1,988,312
Commitments and contingent liabilities (Note 12)		—
Net assets	$	56,859,164
Net assets consist of:
Paid in capital	$	314,920,181
Total distributable earnings (loss)		(258,061,017	)
Net assets	$	56,859,164
Investor Class:
Net assets	$	53,937,182
Capital shares outstanding		1,565,114
Net asset value per share	$	34.46
A-Class:
Net assets	$	1,540,286
Capital shares outstanding		48,767
Net asset value per share	$	31.58
Maximum offering price per share (Net asset value divided by 95.25%)	$	33.15
C-Class:
Net assets	$	448,528
Capital shares outstanding		16,113
Net asset value per share	$	27.84
H-Class:
Net assets	$	933,168
Capital shares outstanding		29,546
Net asset value per share	$	31.58

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	180,126
Interest		162,442
Total investment income		342,568
Expenses:
Management fees		813,520
Distribution and service fees:
A-Class		8,339
C-Class		27,826
H-Class		8,229
Transfer agent and administrative fees		256,298
Registration fees		108,698
Portfolio accounting fees		90,406
Professional fees		59,457
Trustees’ fees*		24,220
Custodian fees		13,653
Miscellaneous		1,296
Total expenses		1,411,942
Less:
Expenses waived by Adviser		(13,060	)
Net expenses		1,398,882
Net investment loss		(1,056,314	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		7,090
Swap agreements		(45,285,886	)
Futures contracts		(2,730,560	)
Net realized loss		(48,009,356	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		51,135
Investments in affiliated issuers		360,614
Swap agreements		(1,877,952	)
Futures contracts		855,464
Net change in unrealized appreciation (depreciation)		(610,739	)
Net realized and unrealized loss		(48,620,095	)
Net decrease in net assets resulting from operations	$	(49,676,409	)

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

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,056,314	)	$	300,608
Net realized loss on investments		(48,009,356	)		(4,221,749	)
Net change in unrealized appreciation (depreciation) on investments		(610,739	)		787,183
Net decrease in net assets resulting from operations		(49,676,409	)		(3,133,958	)
Distributions to shareholders:
Investor Class		(277,176	)		(404,392	)
A-Class		(9,604	)		(30,961	)
C-Class		(3,226	)		(17,735	)
H-Class		(10,602	)		(31,456	)
Total distributions to shareholders		(300,608	)		(484,544	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		178,190,566			191,676,284
A-Class		12,807,868			32,213,820
C-Class		2,841,557			14,599,836
H-Class		63,823,950			55,422,179
Distributions reinvested
Investor Class		272,737			392,366
A-Class		9,367			30,236
C-Class		3,194			17,213
H-Class		10,599			30,608
Cost of shares redeemed
Investor Class		(167,214,983	)		(150,547,290	)
A-Class		(16,491,894	)		(27,995,128	)
C-Class		(6,780,375	)		(10,836,227	)
H-Class		(69,316,249	)		(51,569,418	)
Net increase (decrease) from capital share transactions		(1,843,663	)		53,434,479
Net increase (decrease) in net assets		(51,820,680	)		49,815,977
Net assets:
Beginning of year		108,679,844			58,863,867
End of year	$	56,859,164		$	108,679,844
Capital share activity:
Shares sold
Investor Class		3,928,771			3,369,987
A-Class		303,444			638,191
C-Class		70,485			327,353
H-Class		1,571,175			1,099,080
Shares issued from reinvestment of distributions
Investor Class		7,211			7,737
A-Class		270			648
C-Class		104			414
H-Class		305			656
Shares redeemed
Investor Class		(3,878,838	)		(2,681,827	)
A-Class		(399,699	)		(557,215	)
C-Class		(191,634	)		(247,750	)
H-Class		(1,711,838	)		(1,059,178	)
Net increase (decrease) in shares		(300,244	)		898,096

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017 e
Per Share Data
Net asset value, beginning of period	$	56.92		$	56.77		$	61.76		$	70.35		$	83.09
Income (loss) from investment operations:
Net investment income (loss)a		(.47	)		.31			.46			(.07	)		(.55	)
Net gain (loss) on investments (realized and unrealized)		(21.84	)		.26			(5.45	)		(8.52	)		(12.19	)
Total from investment operations		(22.31	)		.57			(4.99	)		(8.59	)		(12.74	)
Less distributions from:
Net investment income		(.15	)		(.42	)		—			—			—
Total distributions		(.15	)		(.42	)		—			—			—
Net asset value, end of period	$	34.46		$	56.92		$	56.77		$	61.76		$	70.35
Total Return		(39.21	%)		1.10	%		(8.08	%)		(12.21	%)		(15.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,937		$	85,839		$	46,105		$	57,342		$	76,404
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		0.58	%		0.78	%		(0.10	%)		(0.70	%)
Total expensesb		1.51	%		1.53	%		1.52	%		1.43	%		1.42	%
Net expensesc		1.50	%		1.51	%		1.51	%		1.43	%		1.42	%
Portfolio turnover rate		—			—			—			56	%		114	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017 e
Per Share Data
Net asset value, beginning of period	$	52.33		$	52.36		$	57.11		$	65.22		$	77.21
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		.21			.27			(.22	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		(20.04	)		.18			(5.02	)		(7.89	)		(11.29	)
Total from investment operations		(20.60	)		.39			(4.75	)		(8.11	)		(11.99	)
Less distributions from:
Net investment income		(.15	)		(.42	)		—			—			—
Total distributions		(.15	)		(.42	)		—			—			—
Net asset value, end of period	$	31.58		$	52.33		$	52.36		$	57.11		$	65.22
Total Returnd		(39.38	%)		0.85	%		(8.32	%)		(12.43	%)		(15.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,540		$	7,575		$	3,306		$	4,637		$	6,331
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		0.43	%		0.50	%		(0.37	%)		(0.96	%)
Total expensesb		1.78	%		1.78	%		1.76	%		1.68	%		1.67	%
Net expensesc		1.77	%		1.76	%		1.76	%		1.68	%		1.67	%
Portfolio turnover rate		—			—			—			56	%		114	%

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017 e
Per Share Data
Net asset value, beginning of period	$	46.49		$	46.92		$	51.56		$	59.34		$	70.79
Income (loss) from investment operations:
Net investment income (loss)a		(.80	)		(.22	)		(.13	)		(.63	)		(1.12	)
Net gain (loss) on investments (realized and unrealized)		(17.70	)		.21			(4.51	)		(7.15	)		(10.33	)
Total from investment operations		(18.50	)		(.01	)		(4.64	)		(7.78	)		(11.45	)
Less distributions from:
Net investment income		(.15	)		(.42	)		—			—			—
Total distributions		(.15	)		(.42	)		—			—			—
Net asset value, end of period	$	27.84		$	46.49		$	46.92		$	51.56		$	59.34
Total Returnd		(39.82	%)		0.09	%		(9.00	%)		(13.11	%)		(16.20	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	449		$	6,376		$	2,681		$	4,203		$	6,760
Ratios to average net assets:
Net investment income (loss)		(2.16	%)		(0.51	%)		(0.27	%)		(1.14	%)		(1.69	%)
Total expensesb		2.54	%		2.53	%		2.51	%		2.43	%		2.42	%
Net expensesc		2.53	%		2.51	%		2.51	%		2.43	%		2.42	%
Portfolio turnover rate		—			—			—			56	%		114	%

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017 e
Per Share Data
Net asset value, beginning of period	$	52.32		$	52.35		$	57.11		$	65.22		$	77.17
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		.17			.29			(.27	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		(20.03	)		.22			(5.05	)		(7.84	)		(11.25	)
Total from investment operations		(20.59	)		.39			(4.76	)		(8.11	)		(11.95	)
Less distributions from:
Net investment income		(.15	)		(.42	)		—			—			—
Total distributions		(.15	)		(.42	)		—			—			—
Net asset value, end of period	$	31.58		$	52.32		$	52.35		$	57.11		$	65.22
Total Return		(39.37	%)		0.85	%		(8.33	%)		(12.43	%)		(15.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	933		$	8,890		$	6,772		$	4,672		$	2,857
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		0.34	%		0.52	%		(0.45	%)		(0.96	%)
Total expensesb		1.78	%		1.78	%		1.77	%		1.69	%		1.67	%
Net expensesc		1.76	%		1.76	%		1.76	%		1.69	%		1.67	%
Portfolio turnover rate		—			—			—			56	%		114	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflect the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect 1:6 reverse share split effective October 28, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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.

For the one-year period ended March 31, 2021, the Monthly Rebalance NASDAQ-100^® 2X Strategy Fund H-Class returned 164.81%, while the NASDAQ-100 Index returned 68.88%.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Amazon.com, Inc., and Microsoft Corp. The holdings detracting the most were Biogen, Inc., Gilead Sciences, Inc., and Peloton Interactive, Inc. Class A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

Due to compounding, the Fund’s performance generally will not correlate to the performance of the benchmark over periods greater than a full calendar month. For example, the Fund’s compounded returns for periods greater than a full calendar month will be different than the performance of the benchmark over the same period. The effects of compounding on the performance of the Fund will be more pronounced when the underlying index experiences increased volatility, the greater the leverage employed in the Fund, and over longer holding periods. Investors in the Fund should actively monitor and manage their investments to ensure they are consistent with their strategies. The effects of compounding are discussed in more detail on page 6 of this report.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 51

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Inception Dates:
A-Class	November 28, 2014
C-Class	November 28, 2014
H-Class	November 28, 2014

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	22.2%
Guggenheim Strategy Fund II	10.3%
Apple, Inc.	4.7%
Microsoft Corp.	4.1%
Amazon.com, Inc.	3.6%
Tesla, Inc.	1.8%
Facebook, Inc. — Class A	1.6%
Alphabet, Inc. — Class C	1.5%
Alphabet, Inc. — Class A	1.4%
NVIDIA Corp.	1.2%
Top Ten Total	52.4%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	Since Inception (11/28/14)
A-Class Shares	164.83%	47.18%	37.50%
A-Class Shares with sales charge‡	152.27%	45.75%	36.45%
C-Class Shares	162.86%	46.08%	36.43%
C-Class Shares with CDSC§	161.86%	46.08%	36.43%
H-Class Shares	164.81%	47.16%	38.01%
NASDAQ-100 Index	68.88%	25.22%	20.34%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to difference in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

52 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 42.6%
Technology - 18.9%
Apple, Inc.		37,580	$	4,590,397
Microsoft Corp.		16,884		3,980,741
NVIDIA Corp.		2,112		1,127,660
Intel Corp.		13,840		885,760
Adobe, Inc.*		1,631		775,328
Broadcom, Inc.		1,391		644,951
Texas Instruments, Inc.		3,135		592,484
QUALCOMM, Inc.		3,870		513,123
Applied Materials, Inc.		3,126		417,634
Intuit, Inc.		933		357,395
Micron Technology, Inc.*		3,811		336,168
Advanced Micro Devices, Inc.*		4,126		323,891
Lam Research Corp.		487		289,882
Fiserv, Inc.*		2,280		271,411
Activision Blizzard, Inc.		2,639		245,427
Zoom Video Communications, Inc. — Class A*		694		222,975
Autodesk, Inc.*		749		207,585
Analog Devices, Inc.		1,257		194,936
NXP Semiconductor N.V.		944		190,065
KLA Corp.		525		173,460
ASML Holding N.V. — Class G		265		163,600
Workday, Inc. — Class A*		613		152,288
Microchip Technology, Inc.		917		142,337
Cognizant Technology Solutions Corp. — Class A		1,808		141,241
Electronic Arts, Inc.		980		132,663
Cadence Design Systems, Inc.*		950		130,140
Synopsys, Inc.*		519		128,598
DocuSign, Inc.*		635		128,556
Paychex, Inc.		1,228		120,369
Marvell Technology Group Ltd.		2,288		112,066
NetEase, Inc. ADR		1,021		105,428
Xilinx, Inc.		836		103,580
Skyworks Solutions, Inc.		562		103,116
ANSYS, Inc.*		296		100,510
Atlassian Corporation plc — Class A*		453		95,474
Maxim Integrated Products, Inc.		913		83,421
Cerner Corp.		1,043		74,971
Splunk, Inc.*		551		74,649
Check Point Software Technologies Ltd.*		478		53,522
Total Technology				18,487,802
Communications - 13.5%
Amazon.com, Inc.*		1,127		3,487,028
Facebook, Inc. — Class A*		5,385		1,586,044
Alphabet, Inc. — Class C*		733		1,516,306
Alphabet, Inc. — Class A*		673		1,388,076
Comcast Corp. — Class A		15,572		842,601
Netflix, Inc.*		1,509		787,185
Cisco Systems, Inc.		14,381		743,641
T-Mobile US, Inc.*		4,234		530,478
Charter Communications, Inc. — Class A*		660		407,233
Booking Holdings, Inc.*		140		326,178
MercadoLibre, Inc.*		170		250,264
JD.com, Inc. ADR*		2,830		238,654
Baidu, Inc. ADR*		924		201,016
Pinduoduo, Inc. ADR*		1,177		157,577
eBay, Inc.		2,318		141,954
Match Group, Inc.*		916		125,840
Okta, Inc.*		413		91,037
Sirius XM Holdings, Inc.1		14,103		85,887
CDW Corp.		480		79,560
VeriSign, Inc.*		385		76,523
Trip.com Group Ltd. ADR*		1,795		71,136
Fox Corp. — Class A		1,139		41,130
Fox Corp. — Class B		873		30,494
Total Communications				13,205,842
Consumer, Non-cyclical - 5.6%
PayPal Holdings, Inc.*		3,990		968,932
PepsiCo, Inc.		4,700		664,815
Amgen, Inc.		1,967		489,409
Intuitive Surgical, Inc.*		401		296,315
Mondelez International, Inc. — Class A		4,810		281,529
Gilead Sciences, Inc.		4,281		276,681
Automatic Data Processing, Inc.		1,458		274,789
Illumina, Inc.*		497		190,878
Vertex Pharmaceuticals, Inc.*		886		190,392
Moderna, Inc.*		1,362		178,354
Regeneron Pharmaceuticals, Inc.*		359		169,857
Kraft Heinz Co.		4,167		166,680
Keurig Dr Pepper, Inc.		4,794		164,770
Monster Beverage Corp.*		1,798		163,780
Align Technology, Inc.*		270		146,213
Biogen, Inc.*		519		145,190
IDEXX Laboratories, Inc.*		291		142,389
Cintas Corp.		358		122,189
DexCom, Inc.*		328		117,880
Alexion Pharmaceuticals, Inc.*		749		114,530
Verisk Analytics, Inc. — Class A		555		98,063
Seagen, Inc.*		617		85,677
Incyte Corp.*		749		60,871
Total Consumer, Non-cyclical				5,510,183
Consumer, Cyclical - 4.0%
Tesla, Inc.*		2,659		1,776,026
Costco Wholesale Corp.		1,509		531,892
Starbucks Corp.		4,010		438,173
Marriott International, Inc. — Class A*		1,105		163,662
Walgreens Boots Alliance, Inc.		2,943		161,571
Ross Stores, Inc.		1,214		145,571
Lululemon Athletica, Inc.*		426		130,658
O’Reilly Automotive, Inc.*		239		121,233
PACCAR, Inc.		1,182		109,831
Peloton Interactive, Inc. — Class A*		898		100,971
Fastenal Co.		1,956		98,348
Dollar Tree, Inc.*		801		91,682
Copart, Inc.*		805		87,431
Total Consumer, Cyclical				3,957,049

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Utilities - 0.4%
Exelon Corp.		3,326	$	145,479
American Electric Power Company, Inc.		1,692		143,312
Xcel Energy, Inc.		1,831		121,780
Total Utilities				410,571
Industrial - 0.2%
CSX Corp.		2,597		250,403
Total Common Stocks
(Cost $34,157,537)				41,821,850
MUTUAL FUNDS† - 32.5%
Guggenheim Ultra Short Duration Fund — Institutional Class2		2,183,560		21,748,256
Guggenheim Strategy Fund II2		403,950		10,090,677
Total Mutual Funds
(Cost $31,544,280)				31,838,933
	Face Amount
U.S. TREASURY BILLS†† - 24.7%
U.S. Treasury Bills
0.09% due 04/01/213,4	$	12,907,000		12,907,000
0.01% due 04/22/214,5		1,351,000		1,350,990
U.S. Cash Management Bill
0.03% due 08/03/214		10,000,000		9,999,009
Total U.S. Treasury Bills
(Cost $24,256,997)				24,256,999

REPURCHASE AGREEMENTS††,6 - 15.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213		8,224,345		8,224,345
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		3,739,187		3,739,187
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		3,412,591		3,412,591
Total Repurchase Agreements
(Cost $15,376,123)				15,376,123
	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%8		50,356		50,356
Total Securities Lending Collateral
(Cost $50,356)				50,356
Total Investments - 115.6%
(Cost $105,385,293)			$	113,344,261
Other Assets & Liabilities, net - (15.6)%				(15,312,917	)
Total Net Assets - 100.0%			$	98,031,344

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		79		Jun 2021	$	20,673,905	$	255,378

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements††

Goldman Sachs International

NASDAQ-100 Index

0.64% (1 Week USD LIBOR + 0.55%)

At Maturity

04/08/21

2,346

$

30,714,347

$

973,157

Barclays Bank plc

NASDAQ-100 Index

0.59% (1 Week USD LIBOR + 0.50%)

At Maturity

05/26/21

7,427

97,232,622

834,244

BNP Paribas

NASDAQ-100 Index

0.76% (1 Month USD LIBOR + 0.65%)

At Maturity

04/08/21

429

5,611,601

(260,733

)

$

133,558,570

$

1,546,668

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 on loan at March 31, 2021 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Repurchase Agreements — See Note 6.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2021.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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	$	41,821,850	$	—	$	—	$	41,821,850
Mutual Funds		31,838,933		—		—		31,838,933
U.S. Treasury Bills		—		24,256,999		—		24,256,999
Repurchase Agreements		—		15,376,123		—		15,376,123
Securities Lending Collateral		50,356		—		—		50,356
Equity Futures Contracts**		255,378		—		—		255,378
Equity Index Swap Agreements**		—		1,807,401		—		1,807,401
Total Assets	$	73,966,517	$	41,440,523	$	—	$	115,407,040

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	260,733	$	—	$	260,733

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,209,488	$	8,650,000	$	—		$	—	$	231,189	$	10,090,677		403,950	$	153,251
Guggenheim Ultra Short Duration Fund — Institutional Class		1,143,698		21,500,000		(1,000,000	)		284		104,274		21,748,256		2,183,560		151,357
	$	2,353,186	$	30,150,000	$	(1,000,000	)	$	284	$	335,463	$	31,838,933			$	304,608

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value - including $49,067 of securities loaned (cost $58,464,890)	$	66,129,205
Investments in affiliated issuers, at value (cost $31,544,280)		31,838,933
Repurchase agreements, at value (cost $15,376,123)		15,376,123
Segregated cash with broker		311,769
Unrealized appreciation on OTC swap agreements		1,807,401
Receivables:
Fund shares sold		7,607,576
Variation margin on futures contracts		284,405
Investment Adviser		53,996
Dividends		38,682
Securities lending income		42
Interest		3
Total assets		123,448,135
Liabilities:
Unrealized depreciation on OTC swap agreements		260,733
Payable for:
Securities purchased		19,961,552
Swap settlement		4,382,561
Fund shares redeemed		254,736
Management fees		138,554
Return of securities lending collateral		50,356
Transfer agent and administrative fees		42,794
Distribution and service fees		40,848
Portfolio accounting fees		14,957
Trustees’ fees*		3,304
Miscellaneous		266,396
Total liabilities		25,416,791
Commitments and contingent liabilities (Note 12)		—
Net assets	$	98,031,344
Net assets consist of:
Paid in capital	$	95,952,879
Total distributable earnings (loss)		2,078,465
Net assets	$	98,031,344
A-Class:
Net assets	$	5,504,387
Capital shares outstanding		15,487
Net asset value per share	$	355.42
Maximum offering price per share (Net asset value divided by 95.25%)	$	373.14
C-Class:
Net assets	$	1,750,646
Capital shares outstanding		5,189
Net asset value per share	$	337.38
H-Class:
Net assets	$	90,776,311
Capital shares outstanding		249,152
Net asset value per share	$	364.34

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $2,038)	$	1,715,497
Dividends from securities of affiliated issuers		304,608
Interest		36,146
Income from securities lending, net		510
Total investment income		2,056,761
Expenses:
Management fees		2,521,668
Distribution and service fees:
A-Class		14,247
C-Class		15,710
H-Class		682,296
Transfer agent and administrative fees		775,088
Portfolio accounting fees		263,786
Professional fees		118,019
Custodian fees		38,860
Trustees’ fees*		38,550
Line of credit fees		610
Interest expense		95
Miscellaneous		488,646
Total expenses		4,957,575
Less:
Expenses waived by Adviser		(1,207,139	)
Net expenses		3,750,436
Net investment loss		(1,693,675	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		57,691,524
Investments in affiliated issuers		284
Swap agreements		103,455,523
Futures contracts		27,183,266
Net realized gain		188,330,597
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		7,417,426
Investments in affiliated issuers		335,463
Swap agreements		1,879,026
Futures contracts		(89,874	)
Net change in unrealized appreciation (depreciation)		9,542,041
Net realized and unrealized gain		197,872,638
Net increase in net assets resulting from operations	$	196,178,963

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

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,693,675	)	$	100,881
Net realized gain (loss) on investments		188,330,597			(5,559,290	)
Net change in unrealized appreciation (depreciation) on investments		9,542,041			(8,523,966	)
Net increase (decrease) in net assets resulting from operations		196,178,963			(13,982,375	)
Distributions to shareholders:
A-Class		(432,118	)		(3,735	)
C-Class		(107,529	)		(832	)
H-Class		(18,988,998	)		(203,974	)
Total distributions to shareholders		(19,528,645	)		(208,541	)
Capital share transactions:
Proceeds from sale of shares
A-Class		9,606,083			14,654,383
C-Class		1,448,846			737,827
H-Class		1,221,379,062			1,626,392,692
Distributions reinvested
A-Class		339,817			2,826
C-Class		102,321			735
H-Class		18,765,952			202,106
Cost of shares redeemed
A-Class		(10,958,122	)		(14,843,489	)
C-Class		(1,479,784	)		(746,073	)
H-Class		(1,343,395,643	)		(1,718,544,874	)
Net decrease from capital share transactions		(104,191,468	)		(92,143,867	)
Net increase (decrease) in net assets		72,458,850			(106,334,783	)
Net assets:
Beginning of year		25,572,494			131,907,277
End of year	$	98,031,344		$	25,572,494
Capital share activity:
Shares sold
A-Class		36,828			92,924
C-Class		5,768			5,051
H-Class		4,521,174			9,985,485
Shares issued from reinvestment of distributions
A-Class		1,061			17
C-Class		336			5
H-Class		57,156			1,173
Shares redeemed
A-Class		(39,563	)		(98,653	)
C-Class		(4,971	)		(4,660	)
H-Class		(4,484,693	)		(10,762,621	)
Net increase (decrease) in shares		93,096			(781,279	)

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	141.86		$	134.54		$	113.31		$	79.32		$	54.45
Income (loss) from investment operations:
Net investment income (loss)a		(1.74	)		.23			.25			(.23	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		233.57			7.28			20.98			34.22			25.05
Total from investment operations		231.83			7.51			21.23			33.99			24.87
Less distributions from:
Net investment income		—			(.19	)		—			—			—
Net realized gains		(18.27	)		—			—			—			—
Total distributions		(18.27	)		(.19	)		—			—			—
Net asset value, end of period	$	355.42		$	141.86		$	134.54		$	113.31		$	79.32
Total Returnb		164.83	%		5.56	%		18.74	%		42.85	%		45.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,504		$	2,434		$	3,077		$	1,990		$	1,010
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		0.15	%		0.19	%		(0.23	%)		(0.28	%)
Total expensesc		1.77	%		1.83	%		1.81	%		1.71	%		1.72	%
Net expensesd,e		1.33	%		1.34	%		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		509	%		990	%		467	%		385	%		259	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	136.06		$	130.01		$	110.32		$	77.79		$	53.80
Income (loss) from investment operations:
Net investment income (loss)a		(3.70	)		(.83	)		(.64	)		(1.00	)		(.73	)
Net gain (loss) on investments (realized and unrealized)		223.29			7.07			20.33			33.53			24.72
Total from investment operations		219.59			6.24			19.69			32.53			23.99
Less distributions from:
Net investment income		—			(.19	)		—			—			—
Net realized gains		(18.27	)		—			—			—			—
Total distributions		(18.27	)		(.19	)		—			—			—
Net asset value, end of period	$	337.38		$	136.06		$	130.01		$	110.32		$	77.79
Total Returnb		162.86	%		4.77	%		17.85	%		41.82	%		44.52	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,751		$	552		$	476		$	170		$	89
Ratios to average net assets:
Net investment income (loss)		(1.34	%)		(0.55	%)		(0.52	%)		(1.02	%)		(1.10	%)
Total expensesc		2.52	%		2.58	%		2.57	%		2.46	%		2.47	%
Net expensesd,e		2.08	%		2.09	%		2.11	%		2.10	%		2.10	%
Portfolio turnover rate		509	%		990	%		467	%		385	%		259	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	145.23		$	137.80		$	116.07		$	81.25		$	55.79
Income (loss) from investment operations:
Net investment income (loss)a		(1.81	)		.12			.19			(.25	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		239.19			7.50			21.54			35.07			25.69
Total from investment operations		237.38			7.62			21.73			34.82			25.46
Less distributions from:
Net investment income		—			(.19	)		—			—			—
Net realized gains		(18.27	)		—			—			—			—
Total distributions		(18.27	)		(.19	)		—			—			—
Net asset value, end of period	$	364.34		$	145.23		$	137.80		$	116.07		$	81.25
Total Return		164.81	%		5.51	%		18.72	%		42.86	%		45.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	90,776		$	22,586		$	128,354		$	25,304		$	28,573
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		0.08	%		0.15	%		(0.24	%)		(0.35	%)
Total expensesc		1.77	%		1.82	%		1.81	%		1.71	%		1.72	%
Net expensesd,e		1.33	%		1.34	%		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		509	%		990	%		467	%		385	%		259	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the net expense ratios for the years ended would be:

	03/31/21	03/31/20	03/31/19	03/29/18	03/31/17
A-Class	1.33%	1.33%	1.35%	1.35%	1.35%
C-Class	2.08%	2.08%	2.10%	2.10%	2.10%
H-Class	1.33%	1.34%	1.35%	1.35%	1.35%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Inverse NASDAQ-100^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.

Inverse NASDAQ-100^® Strategy Fund Investor Class returned -45.03%, while the NASDAQ-100 Index returned 68.88%.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Amazon.com, Inc., and Microsoft Corp. The holdings detracting the most were Biogen, Inc., Gilead Sciences, Inc., and Peloton Interactive, Inc. Class A.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 61

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	5.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	5.4%
Total	10.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	(45.03%)	(22.83%)	(19.76%)
A-Class Shares	(45.17%)	(23.01%)	(19.88%)
A-Class Shares with sales charge‡	(47.78%)	(23.76%)	(20.27%)
C-Class Shares	(45.58%)	(23.61%)	(20.59%)
C-Class Shares with CDSC§	(46.12%)	(23.61%)	(20.59%)
NASDAQ-100 Index	68.88%	25.22%	20.18%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(45.21%)	(23.05%)	(20.28%)
NASDAQ-100 Index	68.88%	25.22%	20.75%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

62 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 10.9%
Guggenheim Strategy Fund II1		61,417	$	1,534,196
Guggenheim Ultra Short Duration Fund — Institutional Class1		152,495		1,518,853
Total Mutual Funds
(Cost $2,973,832)				3,053,049
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 28.7%
Federal Home Loan Bank
0.01% due 04/12/212	$	3,400,000		3,399,990
0.01% due 04/14/212		3,000,000		2,999,992
0.01% due 04/09/212		1,600,000		1,599,996
Total Federal Agency Discount Notes
(Cost $7,999,978)				7,999,978
FEDERAL AGENCY NOTES†† - 17.9%
Federal Farm Credit Bank
0.23% due 06/09/22		2,500,000		2,500,566
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/223		750,000		752,374
0.29% (3 Month U.S. Treasury Bill Rate + 0.27%, Rate Floor: 0.00%) due 05/16/223		500,000		501,142
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/223		240,000		240,966
Farmer Mac
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 11/22/213		1,000,000		1,000,018
Total Federal Agency Notes
(Cost $4,990,320)				4,995,066

U.S. TREASURY BILLS†† - 12.3%
U.S. Treasury Bills
0.09% due 04/01/212,4	2,000,000		2,000,000
0.01% due 04/22/212,5	226,000		225,998
U.S. Cash Management Bill
0.03% due 08/03/212	1,200,000		1,199,881
Total U.S. Treasury Bills
(Cost $3,425,879)			3,425,879
REPURCHASE AGREEMENTS††,6 - 31.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/214	4,754,350		4,754,350
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/214	2,161,559		2,161,559
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/214	1,972,759		1,972,759
Total Repurchase Agreements
(Cost $8,888,668)			8,888,668
Total Investments - 101.6%
(Cost $28,278,677)		$	28,362,640
Other Assets & Liabilities, net - (1.6)%			(445,254	)
Total Net Assets - 100.0%		$	27,917,386

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Sold Short†
NASDAQ-100 Index Mini Futures Contracts		14		Jun 2021	$	3,663,730	$	(44,931	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Barclays Bank plc	NASDAQ-100 Index	0.44% (1 Week USD LIBOR + 0.35%)	At Maturity		04/07/21		792	$	10,364,253	$	540,183
BNP Paribas	NASDAQ-100 Index	0.26% (1 Month USD LIBOR + 0.15%)	At Maturity		04/08/21		510		6,675,620		310,165
Goldman Sachs International	NASDAQ-100 Index	0.34% (1 Week USD LIBOR + 0.25%)	At Maturity		04/08/21		550		7,202,048		267,473
								$	24,241,921	$	1,117,821

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
INVERSE NASDAQ-100® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Mutual Funds	$	3,053,049	$	—	$	—	$	3,053,049
Federal Agency Discount Notes		—		7,999,978		—		7,999,978
Federal Agency Notes		—		4,995,066		—		4,995,066
U.S. Treasury Bills		—		3,425,879		—		3,425,879
Repurchase Agreements		—		8,888,668		—		8,888,668
Equity Index Swap Agreements**		—		1,117,821		—		1,117,821
Total Assets	$	3,053,049	$	26,427,412	$	—	$	29,480,461

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	44,931	$	—	$	—	$	44,931

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE NASDAQ-100® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,621,432	$	1,150,000	$	(1,300,000	)	$	(23,890	)	$	86,654	$	1,534,196		61,417	$	25,931
Guggenheim Ultra Short Duration Fund — Institutional Class		2,781,641		—		(1,299,999	)		(15,470	)		52,681		1,518,853		152,495		18,729
	$	4,403,073	$	1,150,000	$	(2,599,999	)	$	(39,360	)	$	139,335	$	3,053,049			$	44,660

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $16,416,177)	$	16,420,923
Investments in affiliated issuers, at value (cost $2,973,832)		3,053,049
Repurchase agreements, at value (cost $8,888,668)		8,888,668
Unrealized appreciation on OTC swap agreements		1,117,821
Receivables:
Fund shares sold		52,198
Dividends		3,108
Interest		2,353
Total assets		29,538,120
Liabilities:
Payable for:
Securities purchased		1,199,881
Swap settlement		242,001
Variation margin on futures contracts		57,820
Fund shares redeemed		54,088
Management fees		22,093
Transfer agent and administrative fees		6,700
Portfolio accounting fees		2,490
Trustees’ fees*		457
Distribution and service fees		376
Miscellaneous		34,828
Total liabilities		1,620,734
Commitments and contingent liabilities (Note 12 )		—
Net assets	$	27,917,386
Net assets consist of:
Paid in capital	$	83,320,856
Total distributable earnings (loss)		(55,403,470	)
Net assets	$	27,917,386
Investor Class:
Net assets	$	26,017,809
Capital shares outstanding		994,328
Net asset value per share	$	26.17
A-Class:
Net assets	$	1,489,371
Capital shares outstanding		59,062
Net asset value per share	$	25.22
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.48
C-Class:
Net assets	$	73,344
Capital shares outstanding		3,481
Net asset value per share	$	21.07
H-Class:
Net assets	$	336,862
Capital shares outstanding		13,566
Net asset value per share	$	24.83

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	44,660
Interest		28,418
Total investment income		73,078
Expenses:
Management fees		267,391
Distribution and service fees:
A-Class		2,946
C-Class		978
H-Class		1,339
Transfer agent and administrative fees		85,110
Registration fees		35,623
Portfolio accounting fees		29,715
Professional fees		22,922
Trustees’ fees*		10,039
Custodian fees		4,662
Interest expense		5
Miscellaneous		883
Total expenses		461,613
Less:
Expenses waived by Adviser		(4,040	)
Net expenses		457,573
Net investment loss		(384,495	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		7,989
Investments in affiliated issuers		(39,360	)
Swap agreements		(18,186,753	)
Futures contracts		(1,072,867	)
Net realized loss		(19,290,991	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(5,203	)
Investments in affiliated issuers		139,335
Swap agreements		573,266
Futures contracts		312,304
Net change in unrealized appreciation (depreciation)		1,019,702
Net realized and unrealized loss		(18,271,289	)
Net decrease in net assets resulting from operations	$	(18,655,784	)

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

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(384,495	)	$	23,879
Net realized loss on investments		(19,290,991	)		(3,760,361	)
Net change in unrealized appreciation (depreciation) on investments		1,019,702			218,274
Net decrease in net assets resulting from operations		(18,655,784	)		(3,518,208	)
Distributions to shareholders:
Investor Class		(22,226	)		(110,169	)
A-Class		(1,054	)		(5,386	)
C-Class		(91	)		(975	)
H-Class		(508	)		(3,185	)
Total distributions to shareholders		(23,879	)		(119,715	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		144,882,020			178,666,654
A-Class		3,667,695			2,499,290
C-Class		193,217			232,896
H-Class		6,088,524			22,452,898
Distributions reinvested
Investor Class		22,181			110,048
A-Class		1,054			5,386
C-Class		91			940
H-Class		508			3,185
Cost of shares redeemed
Investor Class		(160,545,957	)		(122,161,471	)
A-Class		(2,125,089	)		(2,798,481	)
C-Class		(281,311	)		(106,531	)
H-Class		(5,965,750	)		(22,382,916	)
Net increase (decrease) from capital share transactions		(14,062,817	)		56,521,898
Net increase (decrease) in net assets		(32,742,480	)		52,883,975
Net assets:
Beginning of year		60,659,866			7,775,891
End of year	$	27,917,386		$	60,659,866
Capital share activity:
Shares sold
Investor Class		3,947,180			3,532,372
A-Class		119,568			52,824
C-Class		7,518			5,698
H-Class		185,652			484,862
Shares issued from reinvestment of distributions
Investor Class		785			2,293
A-Class		39			116
C-Class		4			24
H-Class		19			70
Shares redeemed
Investor Class		(4,198,573	)		(2,408,027	)
A-Class		(71,894	)		(57,338	)
C-Class		(10,068	)		(2,529	)
H-Class		(184,954	)		(478,602	)
Net increase (decrease) in shares		(204,724	)		1,131,763

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	47.65		$	54.72		$	63.05		$	77.68		$	96.42
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		.09			.56			.11			(.51	)
Net gain (loss) on investments (realized and unrealized)		(21.05	)		(6.83	)		(8.89	)		(14.74	)		(18.23	)
Total from investment operations		(21.45	)		(6.74	)		(8.33	)		(14.63	)		(18.74	)
Less distributions from:
Net investment income		(.03	)		(.33	)		—			—			—
Total distributions		(.03	)		(.33	)		—			—			—
Net asset value, end of period	$	26.17		$	47.65		$	54.72		$	63.05		$	77.68
Total Return		(45.03	%)		(12.32	%)		(13.21	%)		(18.83	%)		(19.42	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26,018		$	59,321		$	6,473		$	5,474		$	6,286
Ratios to average net assets:
Net investment income (loss)		(1.28	%)		0.17	%		0.93	%		0.16	%		(0.57	%)
Total expensesb		1.54	%		1.57	%		1.56	%		1.46	%		1.46	%
Net expensesc		1.52	%		1.54	%		1.54	%		1.46	%		1.46	%
Portfolio turnover rate		37	%		37	%		38	%		—			486	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	46.04		$	53.01		$	61.24		$	75.63		$	94.01
Income (loss) from investment operations:
Net investment income (loss)a		(0.45	)		.19			.41			(.08	)		(1.00	)
Net gain (loss) on investments (realized and unrealized)		(20.34	)		(6.83	)		(8.64	)		(14.31	)		(17.38	)
Total from investment operations		(20.79	)		(6.64	)		(8.23	)		(14.39	)		(18.38	)
Less distributions from:
Net investment income		(.03	)		(.33	)		—			—			—
Total distributions		(.03	)		(.33	)		—			—			—
Net asset value, end of period	$	25.22		$	46.04		$	53.01		$	61.24		$	75.63
Total Returnd		(45.17	%)		(12.53	%)		(13.44	%)		(19.03	%)		(19.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,489		$	523		$	835		$	1,037		$	2,626
Ratios to average net assets:
Net investment income (loss)		(1.51	%)		0.39	%		0.72	%		(0.12	%)		(1.08	%)
Total expensesb		1.78	%		1.81	%		1.81	%		1.72	%		1.70	%
Net expensesc		1.76	%		1.76	%		1.79	%		1.72	%		1.70	%
Portfolio turnover rate		37	%		37	%		38	%		—			486	%

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	38.76		$	45.03		$	52.43		$	65.23		$	81.79
Income (loss) from investment operations:
Net investment income (loss)a		(.60	)		(.17	)		(.06	)		(.48	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(17.06	)		(5.77	)		(7.34	)		(12.32	)		(15.42	)
Total from investment operations		(17.66	)		(5.94	)		(7.40	)		(12.80	)		(16.56	)
Less distributions from:
Net investment income		(.03	)		(.33	)		—			—			—
Total distributions		(.03	)		(.33	)		—			—			—
Net asset value, end of period	$	21.07		$	38.76		$	45.03		$	52.43		$	65.23
Total Returnd		(45.58	%)		(13.19	%)		(14.11	%)		(19.62	%)		(20.26	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	73		$	234		$	128		$	881		$	1,247
Ratios to average net assets:
Net investment income (loss)		(2.26	%)		(0.41	%)		(0.13	%)		(0.84	%)		(1.51	%)
Total expensesb		2.55	%		2.57	%		2.53	%		2.46	%		2.46	%
Net expensesc		2.54	%		2.53	%		2.53	%		2.46	%		2.46	%
Portfolio turnover rate		37	%		37	%		38	%		—			486	%

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	45.36		$	52.24		$	60.37		$	74.56		$	92.82
Income (loss) from investment operations:
Net investment income (loss)a		(.46	)		(.02	)		.37			.07			(.86	)
Net gain (loss) on investments (realized and unrealized)		(20.04	)		(6.53	)		(8.50	)		(14.26	)		(17.40	)
Total from investment operations		(20.50	)		(6.55	)		(8.13	)		(14.19	)		(18.26	)
Less distributions from:
Net investment income		(.03	)		(.33	)		—			—			—
Total distributions		(.03	)		(.33	)		—			—			—
Net asset value, end of period	$	24.83		$	45.36		$	52.24		$	60.37		$	74.56
Total Return		(45.21	%)		(12.54	%)		(13.47	%)		(19.03	%)		(19.65	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	337		$	583		$	341		$	2,403		$	460
Ratios to average net assets:
Net investment income (loss)		(1.51	%)		(0.05	%)		0.63	%		0.11	%		(0.95	%)
Total expensesb		1.79	%		1.82	%		1.81	%		1.71	%		1.70	%
Net expensesc		1.78	%		1.79	%		1.79	%		1.71	%		1.70	%
Portfolio turnover rate		37	%		37	%		38	%		—			486	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.
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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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 midcap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Mid-Cap 1.5x Strategy Fund had a correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.

Mid-Cap 1.5x Strategy Fund H-Class returned 136.39%, while the S&P MidCap 400 Index returned 83.46% over the same period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Information Technology, and Industrials.

The holdings contributing the most to the return of the underlying index were Enphase Energy, Inc., Penn National Gaming, Inc., and Etsy, Inc. The holdings detracting the most were Strategic Education, Inc., Quidel Corp., and Kinsdale Capital Group, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 71

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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 Ultra Short Duration Fund — Institutional Class	13.8%
Guggenheim Strategy Fund II	7.4%
SolarEdge Technologies, Inc.	0.3%
Bio-Techne Corp.	0.3%
Cognex Corp.	0.3%
PTC, Inc.	0.3%
Charles River Laboratories International, Inc.	0.3%
Fair Isaac Corp.	0.3%
Williams-Sonoma, Inc.	0.3%
Molina Healthcare, Inc.	0.3%
Top Ten Total	23.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	136.41%	16.86%	13.83%
A-Class Shares with sales charge‡	125.20%	15.73%	13.28%
C-Class Shares	134.67%	16.00%	12.99%
C-Class Shares with CDSC§	133.67%	16.00%	12.99%
H-Class Shares	136.39%	16.87%	13.88%
S&P MidCap 400 Index	83.46%	14.37%	11.92%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

72 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 52.6%
Financial - 12.9%
Signature Bank		227	$	51,325
Medical Properties Trust, Inc. REIT		2,306		49,072
Camden Property Trust REIT		388		42,645
Brown & Brown, Inc.		931		42,556
East West Bancorp, Inc.		563		41,549
First Horizon Corp.		2,208		37,337
Jones Lang LaSalle, Inc.*		203		36,345
Alleghany Corp.*		56		35,072
Reinsurance Group of America, Inc. — Class A		270		34,033
Omega Healthcare Investors, Inc. REIT		922		33,773
CyrusOne, Inc. REIT		479		32,438
RenaissanceRe Holdings Ltd.		202		32,371
Lamar Advertising Co. — Class A REIT		344		32,309
Commerce Bancshares, Inc.		419		32,100
STORE Capital Corp. REIT		954		31,959
American Financial Group, Inc.		278		31,720
National Retail Properties, Inc. REIT		697		30,717
SEI Investments Co.		474		28,881
TCF Financial Corp.		607		28,201
Prosperity Bancshares, Inc.		369		27,634
Kilroy Realty Corp. REIT		421		27,630
Synovus Financial Corp.		591		27,038
Pinnacle Financial Partners, Inc.		302		26,775
Stifel Financial Corp.		417		26,713
First Financial Bankshares, Inc.		566		26,449
Rexford Industrial Realty, Inc. REIT		523		26,359
Life Storage, Inc. REIT		300		25,785
Apartment Income REIT Corp.		592		25,314
Affiliated Managers Group, Inc.		169		25,186
First American Financial Corp.		437		24,756
Old Republic International Corp.		1,125		24,570
Cullen/Frost Bankers, Inc.		224		24,362
Jefferies Financial Group, Inc.		805		24,230
SLM Corp.		1,333		23,954
Brixmor Property Group, Inc. REIT		1,180		23,871
American Campus Communities, Inc. REIT		547		23,614
First Industrial Realty Trust, Inc. REIT		513		23,490
Interactive Brokers Group, Inc. — Class A		321		23,446
New York Community Bancorp, Inc.		1,852		23,372
Primerica, Inc.		156		23,060
EastGroup Properties, Inc. REIT		158		22,638
Alliance Data Systems Corp.		198		22,194
Valley National Bancorp		1,613		22,163
Evercore, Inc. — Class A		167		22,000
Glacier Bancorp, Inc.		379		21,633
Essent Group Ltd.		449		21,323
Janus Henderson Group plc		678		21,120
Cousins Properties, Inc. REIT		591		20,892
Douglas Emmett, Inc. REIT		656		20,598
CoreSite Realty Corp. REIT		170		20,375
Park Hotels & Resorts, Inc. REIT*		940		20,285
CIT Group, Inc.		392		20,192
United Bankshares, Inc.		513		19,792
Webster Financial Corp.		359		19,785
Bank OZK		481		19,649
Kemper Corp.		245		19,531
Spirit Realty Capital, Inc. REIT		457		19,423
SL Green Realty Corp. REIT		276		19,317
Hanover Insurance Group, Inc.		145		18,772
MGIC Investment Corp.		1,346		18,642
Highwoods Properties, Inc. REIT		413		17,734
Sterling Bancorp		769		17,702
PacWest Bancorp		464		17,702
Rayonier, Inc. REIT		548		17,673
RLI Corp.		158		17,628
Selective Insurance Group, Inc.		238		17,265
Wintrust Financial Corp.		226		17,131
Healthcare Realty Trust, Inc. REIT		556		16,858
Home BancShares, Inc.		604		16,338
Hudson Pacific Properties, Inc. REIT		600		16,278
FNB Corp.		1,278		16,231
UMB Financial Corp.		172		15,881
Umpqua Holdings Corp.		876		15,374
Brighthouse Financial, Inc.*		347		15,355
Physicians Realty Trust REIT		837		14,790
Sabra Health Care REIT, Inc.		838		14,548
Hancock Whitney Corp.		345		14,493
Bank of Hawaii Corp.		160		14,318
Texas Capital Bancshares, Inc.*		201		14,255
PotlatchDeltic Corp. REIT		266		14,077
Kinsale Capital Group, Inc.		85		14,008
JBG SMITH Properties REIT		440		13,988
EPR Properties REIT		297		13,837
CNO Financial Group, Inc.		535		12,995
Associated Banc-Corp.		608		12,975
Weingarten Realty Investors REIT		477		12,836
Pebblebrook Hotel Trust REIT		522		12,679
BancorpSouth Bank		383		12,440
PS Business Parks, Inc. REIT		80		12,366
Cathay General Bancorp		297		12,112
Corporate Office Properties Trust REIT		446		11,743
Federated Hermes, Inc. — Class B		374		11,706
PROG Holdings, Inc.		269		11,645
Fulton Financial Corp.		645		10,984
Navient Corp.		731		10,461
International Bancshares Corp.		221		10,259
Washington Federal, Inc.		302		9,302
LendingTree, Inc.*		43		9,159
Trustmark Corp.		252		8,482
Service Properties Trust REIT		655		7,768
Urban Edge Properties REIT		437		7,219
Genworth Financial, Inc. — Class A*		2,012		6,680
Mercury General Corp.		106		6,446
Macerich Co. REIT1		461		5,394
Total Financial				2,201,450
Industrial - 10.7%
Cognex Corp.		700		58,093
XPO Logistics, Inc.*		406		50,060
Graco, Inc.		671		48,057

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Toro Co.		428	$	44,144
Nordson Corp.		215		42,716
Lennox International, Inc.		137		42,688
Trex Company, Inc.*		460		42,108
Hubbell, Inc.		216		40,368
Universal Display Corp.		170		40,251
Owens Corning		417		38,401
Builders FirstSource, Inc.*		821		38,070
AECOM*		587		37,632
AptarGroup, Inc.		259		36,692
Middleby Corp.*		221		36,631
Axon Enterprise, Inc.*		254		36,175
AGCO Corp.		245		35,194
Carlisle Companies, Inc.		212		34,891
Arrow Electronics, Inc.*		297		32,914
Oshkosh Corp.		272		32,276
ITT, Inc.		344		31,273
Tetra Tech, Inc.		216		29,315
Donaldson Company, Inc.		501		29,138
Lincoln Electric Holdings, Inc.		237		29,137
II-VI, Inc.*		417		28,510
Woodward, Inc.		233		28,107
Jabil, Inc.		538		28,062
TopBuild Corp.*		131		27,435
Littelfuse, Inc.		98		25,915
Sonoco Products Co.		399		25,257
Landstar System, Inc.		153		25,254
MDU Resources Group, Inc.		797		25,193
Stericycle, Inc.*		364		24,574
Coherent, Inc.*		97		24,530
EMCOR Group, Inc.		218		24,451
Acuity Brands, Inc.		143		23,595
Louisiana-Pacific Corp.		423		23,460
Knight-Swift Transportation Holdings, Inc.		487		23,420
Regal Beloit Corp.		161		22,971
National Instruments Corp.		523		22,586
Eagle Materials, Inc.*		167		22,446
Timken Co.		271		21,997
MSA Safety, Inc.		145		21,753
KBR, Inc.		560		21,498
MasTec, Inc.*		224		20,989
Vontier Corp.*		670		20,281
Colfax Corp.*		459		20,109
Flowserve Corp.		518		20,104
Valmont Industries, Inc.		84		19,964
Curtiss-Wright Corp.		163		19,332
SYNNEX Corp.		164		18,834
nVent Electric plc		669		18,672
Hexcel Corp.*		332		18,592
Crane Co.		197		18,500
Simpson Manufacturing Company, Inc.		172		17,842
Clean Harbors, Inc.*		200		16,812
Avnet, Inc.		395		16,396
Ryder System, Inc.		213		16,113
Mercury Systems, Inc.*		223		15,755
EnerSys		170		15,436
Kirby Corp.*		239		14,407
Kennametal, Inc.		332		13,270
Silgan Holdings, Inc.		311		13,071
GATX Corp.		140		12,984
Terex Corp.		276		12,715
Vishay Intertechnology, Inc.		527		12,690
Fluor Corp.*		498		11,499
Dycom Industries, Inc.*		122		11,328
Energizer Holdings, Inc.		231		10,963
Werner Enterprises, Inc.		227		10,708
Trinity Industries, Inc.		326		9,288
Worthington Industries, Inc.		137		9,192
Belden, Inc.		178		7,898
Greif, Inc. — Class A		105		5,985
Total Industrial				1,826,967
Consumer, Non-cyclical - 9.4%
Bio-Techne Corp.		154		58,817
Charles River Laboratories International, Inc.*		198		57,386
Molina Healthcare, Inc.*		231		53,999
Darling Ingredients, Inc.*		646		47,533
Masimo Corp.*		202		46,391
Boston Beer Company, Inc. — Class A*		37		44,632
Repligen Corp.*		203		39,465
PRA Health Sciences, Inc.*		257		39,406
WEX, Inc.*		176		36,823
Jazz Pharmaceuticals plc*		224		36,819
Penumbra, Inc.*		135		36,528
Neurocrine Biosciences, Inc.*		372		36,177
Amedisys, Inc.*		131		34,688
Service Corporation International		674		34,408
Encompass Health Corp.		395		32,351
United Therapeutics Corp.*		177		29,607
Chemed Corp.		64		29,428
Hill-Rom Holdings, Inc.		264		29,167
Exelixis, Inc.*		1,240		28,011
Arrowhead Pharmaceuticals, Inc.*		413		27,386
Paylocity Holding Corp.*		149		26,795
Post Holdings, Inc.*		238		25,161
Syneos Health, Inc.*		329		24,955
LHC Group, Inc.*		126		24,092
Ingredion, Inc.		267		24,009
CoreLogic, Inc.		291		23,062
HealthEquity, Inc.*		330		22,440
Haemonetics Corp.*		202		22,424
Tenet Healthcare Corp.*		422		21,944
ManpowerGroup, Inc.		219		21,659
Halozyme Therapeutics, Inc.*		506		21,095
Helen of Troy Ltd.*		97		20,434
Acadia Healthcare Company, Inc.*		354		20,228
ASGN, Inc.*		211		20,138
Grand Canyon Education, Inc.*		186		19,920
Quidel Corp.*		153		19,573
STAAR Surgical Co.*		185		19,501
Integra LifeSciences Holdings Corp.*		282		19,484
FTI Consulting, Inc.*		136		19,055

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Globus Medical, Inc. — Class A*		307	$	18,933
Neogen Corp.*		212		18,845
Sabre Corp.*		1,262		18,690
Flowers Foods, Inc.		783		18,635
Medpace Holdings, Inc.*		109		17,881
Emergent BioSolutions, Inc.*		180		16,724
ICU Medical, Inc.*		78		16,024
H&R Block, Inc.		729		15,892
Brink’s Co.		197		15,608
Avis Budget Group, Inc.*		205		14,871
Nektar Therapeutics*		724		14,480
LivaNova plc*		193		14,230
Hain Celestial Group, Inc.*		326		14,214
LiveRamp Holdings, Inc.*		266		13,800
Lancaster Colony Corp.		78		13,678
NuVasive, Inc.*		204		13,374
Grocery Outlet Holding Corp.*		345		12,727
Sprouts Farmers Market, Inc.*		469		12,485
Sanderson Farms, Inc.		79		12,307
Cantel Medical Corp.*		150		11,976
Insperity, Inc.		141		11,807
TreeHouse Foods, Inc.*		222		11,597
Patterson Companies, Inc.		346		11,055
Coty, Inc. — Class A*		1,128		10,163
Ligand Pharmaceuticals, Inc. — Class B*		66		10,062
John Wiley & Sons, Inc. — Class A		173		9,377
Graham Holdings Co. — Class B		16		8,999
Strategic Education, Inc.		97		8,915
Avanos Medical, Inc.*		191		8,354
Adtalem Global Education, Inc.*		199		7,868
WW International, Inc.*		189		5,912
Pilgrim’s Pride Corp.*		194		4,615
Tootsie Roll Industries, Inc.		72		2,384
Total Consumer, Non-cyclical				1,611,473
Consumer, Cyclical - 8.4%
Williams-Sonoma, Inc.		305		54,656
Five Below, Inc.*		222		42,355
Lithia Motors, Inc. — Class A		106		41,350
Scotts Miracle-Gro Co. — Class A		162		39,685
Lear Corp.		217		39,331
RH*		65		38,779
Kohl’s Corp.		627		37,375
Deckers Outdoor Corp.*		112		37,007
Gentex Corp.		969		34,564
Watsco, Inc.		131		34,158
Casey’s General Stores, Inc.		147		31,780
Churchill Downs, Inc.		138		31,384
Polaris, Inc.		232		30,972
Capri Holdings Ltd.*		601		30,651
Thor Industries, Inc.		220		29,643
IAA, Inc.*		535		29,500
Brunswick Corp.		309		29,469
Marriott Vacations Worldwide Corp.*		164		28,566
Tempur Sealy International, Inc.		759		27,749
Mattel, Inc.*		1,384		27,569
Wyndham Hotels & Resorts, Inc.		370		25,819
JetBlue Airways Corp.*		1,256		25,547
Toll Brothers, Inc.		445		25,245
Texas Roadhouse, Inc. — Class A*		260		24,944
BJ’s Wholesale Club Holdings, Inc.*		546		24,494
Harley-Davidson, Inc.		610		24,461
Foot Locker, Inc.		414		23,287
Skechers USA, Inc. — Class A*		544		22,690
YETI Holdings, Inc.*		298		21,519
Fox Factory Holding Corp.*		166		21,092
Travel + Leisure Co.		342		20,917
AutoNation, Inc.*		219		20,415
Dick’s Sporting Goods, Inc.		261		19,875
Ollie’s Bargain Outlet Holdings, Inc.*		226		19,662
Boyd Gaming Corp.*		320		18,867
American Eagle Outfitters, Inc.		595		17,398
Avient Corp.		363		17,159
MSC Industrial Direct Company, Inc. — Class A		186		16,775
Adient plc*		374		16,531
KB Home		354		16,471
Nordstrom, Inc.*		433		16,398
Goodyear Tire & Rubber Co.*		928		16,305
Cracker Barrel Old Country Store, Inc.		94		16,251
Taylor Morrison Home Corp. — Class A*		512		15,775
Carter’s, Inc.*		175		15,563
Wingstop, Inc.		118		15,006
Murphy USA, Inc.		101		14,601
Univar Solutions, Inc.*		673		14,497
Wendy’s Co.		712		14,425
Dana, Inc.		575		13,990
Six Flags Entertainment Corp.*		301		13,987
Visteon Corp.*		111		13,536
Columbia Sportswear Co.		121		12,781
Choice Hotels International, Inc.*		115		12,338
Papa John’s International, Inc.		131		11,612
FirstCash, Inc.		163		10,704
Nu Skin Enterprises, Inc. — Class A		202		10,684
Urban Outfitters, Inc.*		272		10,116
Jack in the Box, Inc.		91		9,990
Tri Pointe Homes, Inc.*		474		9,651
Herman Miller, Inc.		234		9,629
World Fuel Services Corp.		251		8,835
Cinemark Holdings, Inc.*		429		8,756
Scientific Games Corp. — Class A*		224		8,628
Healthcare Services Group, Inc.		297		8,325
KAR Auction Services, Inc.*		516		7,740
Total Consumer, Cyclical				1,439,834
Technology - 4.3%
PTC, Inc.*		418		57,538
Fair Isaac Corp.*		116		56,382
Cree, Inc.*		458		49,524
Ceridian HCM Holding, Inc.*		521		43,905
MKS Instruments, Inc.		220		40,792
Manhattan Associates, Inc.*		254		29,815
Lumentum Holdings, Inc.*		301		27,496
CDK Global, Inc.		484		26,165

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Concentrix Corp.*		165	$	24,704
Silicon Laboratories, Inc.*		175		24,687
CACI International, Inc. — Class A*		100		24,666
Brooks Automation, Inc.		295		24,087
MAXIMUS, Inc.		244		21,726
CMC Materials, Inc.		116		20,508
J2 Global, Inc.*		169		20,256
NCR Corp.*		517		19,620
Cirrus Logic, Inc.*		231		19,587
Science Applications International Corp.		231		19,309
Synaptics, Inc.*		139		18,823
Sailpoint Technologies Holdings, Inc.*		364		18,433
Semtech Corp.*		258		17,802
ACI Worldwide, Inc.*		466		17,731
Teradata Corp.*		433		16,688
Xerox Holdings Corp.		663		16,091
Perspecta, Inc.		544		15,803
Qualys, Inc.*		134		14,041
Blackbaud, Inc.*		192		13,647
CommVault Systems, Inc.*		187		12,061
Amkor Technology, Inc.		426		10,100
NetScout Systems, Inc.*		292		8,223
Total Technology				730,210
Basic Materials - 2.3%
RPM International, Inc.		517		47,486
Steel Dynamics, Inc.		797		40,456
Reliance Steel & Aluminum Co.		253		38,529
Cleveland-Cliffs, Inc.*		1,825		36,701
Royal Gold, Inc.		261		28,089
United States Steel Corp.		1,044		27,321
Olin Corp.		568		21,567
Ashland Global Holdings, Inc.		217		19,263
Valvoline, Inc.		721		18,797
Chemours Co.		657		18,337
Commercial Metals Co.		477		14,711
Sensient Technologies Corp.		169		13,182
Ingevity Corp.*		161		12,160
Cabot Corp.		225		11,799
NewMarket Corp.		29		11,025
Minerals Technologies, Inc.		135		10,168
Compass Minerals International, Inc.		135		8,467
Domtar Corp.		219		8,092
Total Basic Materials				386,150
Utilities - 1.6%
Essential Utilities, Inc.		888		39,738
UGI Corp.		829		33,997
OGE Energy Corp.		795		25,726
IDACORP, Inc.		201		20,094
Hawaiian Electric Industries, Inc.		434		19,283
National Fuel Gas Co.		362		18,096
PNM Resources, Inc.		341		16,726
Black Hills Corp.		250		16,693
ONE Gas, Inc.		212		16,305
Southwest Gas Holdings, Inc.		228		15,666
New Jersey Resources Corp.		383		15,270
Spire, Inc.		205		15,148
ALLETE, Inc.		207		13,908
NorthWestern Corp.		201		13,105
Total Utilities				279,755
Communications - 1.6%
FactSet Research Systems, Inc.		151		46,597
Cable One, Inc.		22		40,224
Ciena Corp.*		617		33,762
New York Times Co. — Class A		576		29,157
Grubhub, Inc.*		371		22,260
TripAdvisor, Inc.*		383		20,602
Iridium Communications, Inc.*		470		19,388
TEGNA, Inc.		873		16,439
Viasat, Inc.*		259		12,450
Yelp, Inc. — Class A*		280		10,920
World Wrestling Entertainment, Inc. — Class A		186		10,092
Telephone & Data Systems, Inc.		396		9,092
InterDigital, Inc.		123		7,804
Total Communications				278,787
Energy - 1.4%
SolarEdge Technologies, Inc.*		205		58,925
Sunrun, Inc.*		636		38,465
First Solar, Inc.*		337		29,420
Cimarex Energy Co.		409		24,291
Equities Corp.*		1,109		20,605
ChampionX Corp.*		741		16,102
Equitrans Midstream Corp.		1,622		13,236
CNX Resources Corp.*		874		12,848
Antero Midstream Corp.		1,138		10,276
Murphy Oil Corp.		574		9,419
Total Energy				233,587
Total Common Stocks
(Cost $5,925,213)				8,988,213
MUTUAL FUNDS† - 21.2%
Guggenheim Ultra Short Duration Fund — Institutional Class2		236,138		2,351,937
Guggenheim Strategy Fund II2		50,475		1,260,878
Total Mutual Funds
(Cost $3,604,246)				3,612,815
	Face Amount
U.S. TREASURY BILLS†† - 13.8%
U.S. Treasury Bills
0.03% due 04/01/213,4	$	590,000		590,000
0.09% due 04/01/213,4		540,000		540,000
0.02% due 04/01/213,4		200,000		200,000
0.01% due 04/22/214,5		28,000		28,000

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

	Face Amount		Values
U.S. Cash Management Bill
0.03% due 08/03/214	$	1,000,000	$	999,901
Total U.S. Treasury Bills
(Cost $2,357,901)				2,357,901
REPURCHASE AGREEMENTS††,6 - 14.9%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213		1,361,489		1,361,489
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		618,999		618,999
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		564,933		564,933
Total Repurchase Agreements
(Cost $2,545,421)			$	2,545,421

	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%8		4,226		4,226
Total Securities Lending Collateral
(Cost $4,226)				4,226
Total Investments - 102.5%
(Cost $14,437,007)			$	17,508,576
Other Assets & Liabilities, net - (2.5)%				(429,810	)
Total Net Assets - 100.0%			$	17,078,766

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
S&P MidCap 400 Index Mini Futures Contracts		4		Jun 2021	$	1,042,640	$	(2,707	)

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements††

Barclays Bank plc

S&P MidCap 400 Index

0.44% (1 Week USD LIBOR + 0.35%)

At Maturity

04/07/21

3,842

$

10,025,230

$

268,994

BNP Paribas

S&P MidCap 400 Index

0.56% (1 Month USD LIBOR + 0.45%)

At Maturity

04/08/21

560

1,460,030

30,075

Goldman Sachs International

S&P MidCap 400 Index

0.49% (1 Week USD LIBOR + 0.40%)

At Maturity

05/27/21

1,593

4,156,784

(26,949

)

$

15,642,044

$

272,120

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 on loan at March 31, 2021 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Repurchase Agreements — See Note 6.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of March 31, 2021.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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	$	8,988,213	$	—	$	—	$	8,988,213
Mutual Funds		3,612,815		—		—		3,612,815
U.S. Treasury Bills		—		2,357,901		—		2,357,901
Repurchase Agreements		—		2,545,421		—		2,545,421
Securities Lending Collateral		4,226		—		—		4,226
Equity Index Swap Agreements**		—		299,069		—		299,069
Total Assets	$	12,605,254	$	5,202,391	$	—	$	17,807,645

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	2,707	$	—	$	—	$	2,707
Equity Index Swap Agreements**		—		26,949		—		26,949
Total Liabilities	$	2,707	$	26,949	$	—	$	29,656

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
MID-CAP 1.5x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	492,048	$	745,000	$	—		$	—	$	23,830	$	1,260,878		50,475	$	16,230
Guggenheim Ultra Short Duration Fund — Institutional Class		509,945		2,732,000		(900,000	)		196		9,796		2,351,937		236,138		15,352
	$	1,001,993	$	3,477,000	$	(900,000	)	$	196	$	33,626	$	3,612,815			$	31,582

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value - including $4,037 of securities loaned (cost $8,287,340)	$	11,350,340
Investments in affiliated issuers, at value (cost $3,604,246)		3,612,815
Repurchase agreements, at value (cost $2,545,421)		2,545,421
Cash		68
Unrealized appreciation on OTC swap agreements		299,069
Receivables:
Fund shares sold		465,663
Dividends		11,368
Swap settlement		10,878
Variation margin on futures contracts		716
Securities lending income		2
Total assets		18,296,340
Liabilities:
Unrealized depreciation on OTC swap agreements		26,949
Payable for:
Securities purchased		999,901
Fund shares redeemed		143,881
Management fees		12,821
Return of securities lending collateral		4,226
Distribution and service fees		4,184
Transfer agent and administrative fees		3,981
Portfolio accounting fees		1,480
Trustees’ fees*		274
Miscellaneous		19,877
Total liabilities		1,217,574
Commitments and contingent liabilities (Note 12)		—
Net assets	$	17,078,766
Net assets consist of:
Paid in capital	$	11,657,964
Total distributable earnings (loss)		5,420,802
Net assets	$	17,078,766
A-Class:
Net assets	$	4,336,584
Capital shares outstanding		32,873
Net asset value per share	$	131.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	138.50
C-Class:
Net assets	$	652,809
Capital shares outstanding		5,800
Net asset value per share	$	112.55
H-Class:
Net assets	$	12,089,373
Capital shares outstanding		91,292
Net asset value per share	$	132.43

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers	$	127,436
Dividends from securities of affiliated issuers		31,582
Interest		4,423
Income from securities lending, net		393
Total investment income		163,834
Expenses:
Management fees		141,597
Distribution and service fees:
A-Class		7,565
C-Class		11,060
H-Class		29,003
Transfer agent and administrative fees		43,821
Portfolio accounting fees		15,735
Professional fees		6,931
Trustees’ fees*		2,871
Custodian fees		2,266
Line of credit fees		94
Interest expense		38
Miscellaneous		21,458
Total expenses		282,439
Less:
Expenses waived by Adviser		(3,595	)
Net expenses		278,844
Net investment loss		(115,010	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		4,456,103
Investments in affiliated issuers		196
Swap agreements		7,299,869
Futures contracts		3,429,084
Net realized gain		15,185,252
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		3,094,818
Investments in affiliated issuers		33,626
Swap agreements		167,347
Futures contracts		(107,305	)
Net change in unrealized appreciation (depreciation)		3,188,486
Net realized and unrealized gain		18,373,738
Net increase in net assets resulting from operations	$	18,258,728

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(115,010	)	$	89,713
Net realized gain on investments		15,185,252			2,791,371
Net change in unrealized appreciation (depreciation) on investments		3,188,486			(165,198	)
Net increase in net assets resulting from operations		18,258,728			2,715,886
Distributions to shareholders:
A-Class		(10,762	)		(6,471	)
C-Class		(3,249	)		(7,932	)
H-Class		(75,702	)		(209,346	)
Total distributions to shareholders		(89,713	)		(223,749	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,852,099			1,361,417
C-Class		274,431			75,744
H-Class		117,613,646			326,944,951
Distributions reinvested
A-Class		10,667			6,428
C-Class		3,249			7,890
H-Class		72,127			84,839
Cost of shares redeemed
A-Class		(2,938,816	)		(1,750,513	)
C-Class		(2,613,497	)		(639,883	)
H-Class		(124,300,488	)		(341,855,663	)
Net decrease from capital share transactions		(9,026,582	)		(15,764,790	)
Net increase (decrease) in net assets		9,142,433			(13,272,653	)
Net assets:
Beginning of year		7,936,333			21,208,986
End of year	$	17,078,766		$	7,936,333
Capital share activity:
Shares sold
A-Class		32,695			16,057
C-Class		2,977			951
H-Class		1,334,264			3,423,458
Shares issued from reinvestment of distributions
A-Class		101			66
C-Class		36			94
H-Class		678			869
Shares redeemed
A-Class		(34,729	)		(19,942	)
C-Class		(37,321	)		(8,742	)
H-Class		(1,315,725	)		(3,507,691	)
Net decrease in shares		(17,024	)		(94,880	)

82 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	56.02		$	89.82		$	90.38		$	79.90		$	61.64
Income (loss) from investment operations:
Net investment income (loss)a		(.68	)		.37			.58			.15			(.09	)
Net gain (loss) on investments (realized and unrealized)		77.00			(33.98	)		(.73	)		10.83			18.50
Total from investment operations		76.32			(33.61	)		(.15	)		10.98			18.41
Less distributions from:
Net investment income		(.42	)		(.19	)		(.11	)		—			—
Net realized gains		—			—			(.30	)		(.50	)		(.15	)
Total distributions		(.42	)		(.19	)		(.41	)		(.50	)		(.15	)
Net asset value, end of period	$	131.92		$	56.02		$	89.82		$	90.38		$	79.90
Total Returnb		136.41	%		(37.52	%)		(0.11	%)		13.74	%		29.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,337		$	1,950		$	3,469		$	2,382		$	1,935
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		0.40	%		0.64	%		0.17	%		(0.13	%)
Total expensesc		1.75	%		1.77	%		1.77	%		1.67	%		1.68	%
Net expensesd		1.72	%		1.72	%		1.75	%		1.67	%		1.68	%
Portfolio turnover rate		501	%		617	%		721	%		722	%		1,216	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	48.18		$	77.86		$	78.99		$	70.42		$	54.73
Income (loss) from investment operations:
Net investment income (loss)a		(1.12	)		(.27	)		(.09	)		(.51	)		(.65	)
Net gain (loss) on investments (realized and unrealized)		65.91			(29.22	)		(.63	)		9.58			16.49
Total from investment operations		64.79			(29.49	)		(.72	)		9.07			15.84
Less distributions from:
Net investment income		(.42	)		(.19	)		(.11	)		—			—
Net realized gains		—			—			(.30	)		(.50	)		(.15	)
Total distributions		(.42	)		(.19	)		(.41	)		(.50	)		(.15	)
Net asset value, end of period	$	112.55		$	48.18		$	77.86		$	78.99		$	70.42
Total Returnb		134.67	%		(37.98	%)		(0.86	%)		12.89	%		28.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	653		$	1,933		$	3,722		$	5,875		$	7,720
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(0.34	%)		(0.12	%)		(0.68	%)		(1.05	%)
Total expensesc		2.52	%		2.52	%		2.51	%		2.43	%		2.42	%
Net expensesd		2.50	%		2.47	%		2.50	%		2.43	%		2.42	%
Portfolio turnover rate		501	%		617	%		721	%		722	%		1,216	%

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	56.24		$	90.18		$	90.82		$	80.23		$	61.85
Income (loss) from investment operations:
Net investment income (loss)a		(.60	)		.27			.42			.35			(.37	)
Net gain (loss) on investments (realized and unrealized)		77.21			(34.02	)		(.65	)		10.74			18.90
Total from investment operations		76.61			(33.75	)		(.23	)		11.09			18.53
Less distributions from:
Net investment income		(.42	)		(.19	)		(.11	)		—			—
Net realized gains		—			—			(.30	)		(.50	)		(.15	)
Total distributions		(.42	)		(.19	)		(.41	)		(.50	)		(.15	)
Net asset value, end of period	$	132.43		$	56.24		$	90.18		$	90.82		$	80.23
Total Return		136.39	%		(37.52	%)		(0.21	%)		13.82	%		29.97	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,089		$	4,054		$	14,017		$	13,956		$	20,071
Ratios to average net assets:
Net investment income (loss)		(0.64	%)		0.28	%		0.49	%		0.39	%		(0.50	%)
Total expensesc		1.74	%		1.79	%		1.78	%		1.66	%		1.68	%
Net expensesd		1.72	%		1.77	%		1.77	%		1.66	%		1.68	%
Portfolio turnover rate		501	%		617	%		721	%		722	%		1,216	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the year ended March 31, 2021, Inverse Mid-Cap Strategy Fund achieved a daily correlation of 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.

Inverse Mid-Cap Strategy Fund H-Class returned -49.94%, while the S&P MidCap 400 Index returned 83.46% over the same period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Information Technology, and Industrials.

The holdings contributing the most to the return of the underlying index were Enphase Energy, Inc., Penn National Gaming, Inc., and Etsy, Inc. The holdings detracting the most were Strategic Education, Inc., Quidel Corp., and Kinsdale Capital Group, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

Holdings Diversification (Market Exposure as % of Net Assets)

THE RYDEX FUNDS ANNUAL REPORT | 85

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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 Ultra Short Duration Fund — Institutional Class	9.2%
Guggenheim Strategy Fund II	9.2%
Total	18.4%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	(49.94%)	(15.92%)	(14.41%)
A-Class Shares with sales charge‡	(52.33%)	(16.74%)	(14.82%)
C-Class Shares	(50.08%)	(16.52%)	(15.04%)
C-Class Shares with CDSC§	(50.58%)	(16.52%)	(15.04%)
H-Class Shares	(49.94%)	(15.90%)	(14.39%)
S&P MidCap 400 Index	83.46%	14.37%	11.92%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

86 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 18.4%
Guggenheim Ultra Short Duration Fund — Institutional Class1		8,145	$	81,121
Guggenheim Strategy Fund II1		3,222		80,483
Total Mutual Funds
(Cost $160,346)				161,604
	Face Amount
REPURCHASE AGREEMENTS††,2 - 83.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	$	393,548		393,548
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		178,926		178,926
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		163,298		163,298
Total Repurchase Agreements
(Cost $735,772)				735,772
Total Investments - 101.8%
(Cost $896,118)			$	897,376
Other Assets & Liabilities, net - (1.8)%				(15,662	)
Total Net Assets - 100.0%			$	881,714

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	S&P MidCap 400 Index	0.19% (1 Week USD LIBOR + 0.10%)	At Maturity		04/08/21		123	$	319,937	$	5,004
Barclays Bank plc	S&P MidCap 400 Index	0.29% (1 Week USD LIBOR + 0.20%)	At Maturity		04/07/21		43		111,055		(2,980	)
BNP Paribas	S&P MidCap 400 Index	0.06% (1 Month USD LIBOR - 0.05%)	At Maturity		04/08/21		171		445,838		(10,711	)
								$	876,830	$	(8,687	)

†	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 March 31, 2021.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE MID-CAP STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	161,604	$	—	$	—	$	161,604
Repurchase Agreements		—		735,772		—		735,772
Equity Index Swap Agreements**		—		5,004		—		5,004
Total Assets	$	161,604	$	740,776	$	—	$	902,380

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	13,691	$	—	$	13,691

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	105,850	$	50,000	$	(80,000	)	$	521	$	4,112	$	80,483		3,222	$	2,271
Guggenheim Ultra Short Duration Fund — Institutional Class		103,595		55,018		(80,000	)		317		2,191		81,121		8,145		1,499
	$	209,445	$	105,018	$	(160,000	)	$	838	$	6,303	$	161,604			$	3,770

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in affiliated issuers, at value (cost $160,346)	$	161,604
Repurchase agreements, at value (cost $735,772)		735,772
Unrealized appreciation on OTC swap agreements		5,004
Receivables:
Fund shares sold		1,030
Dividends		164
Total assets		903,574
Liabilities:
Unrealized depreciation on OTC swap agreements		13,691
Payable for:
Swap settlement		6,690
Management fees		476
Transfer agent and administrative fees		147
Distribution and service fees		139
Portfolio accounting fees		55
Trustees’ fees*		9
Miscellaneous		653
Total liabilities		21,860
Commitments and contingent liabilities (Note 12)		—
Net assets	$	881,714
Net assets consist of:
Paid in capital	$	6,641,691
Total distributable earnings (loss)		(5,759,977	)
Net assets	$	881,714
A-Class:
Net assets	$	99,666
Capital shares outstanding		1,567
Net asset value per share	$	63.60
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.77
C-Class:
Net assets	$	3,431
Capital shares outstanding		62
Net asset value per share	$	55.65
H-Class:
Net assets	$	778,617
Capital shares outstanding		12,232
Net asset value per share	$	63.65

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	3,770
Interest		444
Total investment income		4,214
Expenses:
Management fees		10,055
Distribution and service fees:
A-Class		332
C-Class		33
H-Class		2,453
Transfer agent and administrative fees		3,164
Registration fees		1,310
Portfolio accounting fees		1,118
Professional fees		707
Trustees’ fees*		285
Custodian fees		168
Miscellaneous		209
Total expenses		19,834
Less:
Expenses waived by Adviser		(322	)
Net expenses		19,512
Net investment loss		(15,298	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		838
Swap agreements		(847,113	)
Futures contracts		(11,374	)
Net realized loss		(857,649	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		6,303
Swap agreements		(29,801	)
Net change in unrealized appreciation (depreciation)		(23,498	)
Net realized and unrealized loss		(881,147	)
Net decrease in net assets resulting from operations	$	(896,445	)

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

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

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(15,298	)	$	5,436
Net realized loss on investments		(857,649	)		(47,542	)
Net change in unrealized appreciation (depreciation) on investments		(23,498	)		25,491
Net decrease in net assets resulting from operations		(896,445	)		(16,615	)
Distributions to shareholders:
A-Class		(726	)		(688	)
C-Class		(30	)		—
H-Class		(4,681	)		(4,900	)
Total distributions to shareholders		(5,437	)		(5,588	)
Capital share transactions:
Proceeds from sale of shares
A-Class		231,753			79,204
C-Class		10,000			—
H-Class		6,299,520			9,983,986
Distributions reinvested
A-Class		726			688
C-Class		30			—
H-Class		4,677			4,841
Cost of shares redeemed
A-Class		(79,006	)		(170,994	)
C-Class		(4,247	)		(107	)
H-Class		(6,227,459	)		(9,229,767	)
Net increase from capital share transactions		235,994			667,851
Net increase (decrease) in net assets		(665,888	)		645,648
Net assets:
Beginning of year		1,547,602			901,954
End of year	$	881,714		$	1,547,602
Capital share activity:*
Shares sold
A-Class		2,034			622
C-Class		109			—
H-Class		67,331			90,347
Shares issued from reinvestment of distributions
A-Class		10			7
H-Class		62			47
Shares redeemed
A-Class		(944	)		(1,380	)
C-Class		(48	)		(1	)
H-Class		(66,785	)		(85,812	)
Net increase in shares		1,769			3,830

* Capital share activity for the year ended March 31, 2020, has been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020i			Year Ended March 31, 2019i			Year Ended March 29, 2018i			Year Ended March 31, 2017i
Per Share Data
Net asset value, beginning of period	$	127.90		$	109.10		$	111.55		$	124.57		$	153.53
Income (loss) from investment operations:
Net investment income (loss)a		(.45	)		.75			.65			(.55	)		(1.40	)
Net gain (loss) on investments (realized and unrealized)		(63.36	)		18.85	e		(3.10	)		(12.47	)		(27.56	)
Total from investment operations		(63.81	)		19.60			(2.45	)		(13.02	)		(28.96	)
Less distributions from:
Net investment income		(.49	)		(.80	)		—			—			—
Total distributions		(.49	)		(.80	)		—			—			—
Net asset value, end of period	$	63.60		$	127.90		$	109.10		$	111.55		$	124.57
Total Returnb		(49.94	%)		18.13	%		(2.20	%)		(10.47	%)		(18.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	100		$	60		$	133		$	156		$	226
Ratios to average net assets:
Net investment income (loss)		(1.29	%)		0.68	%		0.60	%		(0.49	%)		(1.02	%)
Total expensesc		1.76	%		1.77	%		1.77	%		1.68	%		1.68	%
Net expensesd		1.73	%		1.70	%		1.75	%		1.68	%		1.68	%
Portfolio turnover rate		42	%		—			48	%		37	%		120	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020i			Year Ended March 31, 2019i			Year Ended March 29, 2018i			Year Ended March 31, 2017i
Per Share Data
Net asset value, beginning of period	$	112.07		$	97.04		$	99.70		$	112.28		$	139.43
Income (loss) from investment operations:
Net investment income (loss)a		(.83	)		—	f		(.30	)		(1.40	)		(2.40	)
Net gain (loss) on investments (realized and unrealized)		(55.10	)		15.83	e		(2.36	)		(11.18	)		(24.75	)
Total from investment operations		(55.93	)		15.83			(2.66	)		(12.58	)		(27.15	)
Less distributions from:
Net investment income		(.49	)		(.80	)		—			—			—
Total distributions		(.49	)		(.80	)		—			—			—
Net asset value, end of period	$	55.65		$	112.07		$	97.04		$	99.70		$	112.28
Total Returnb		(50.08	%)		16.78	%		(2.71	%)		(11.22	%)		(19.51	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3		$	—	g	$	—	g	$	2		$	36
Ratios to average net assets:
Net investment income (loss)		(1.95	%)		0.00	%h		(0.33	%)		(1.30	%)		(1.85	%)
Total expensesc		2.49	%		2.63	%		2.47	%		2.44	%		2.42	%
Net expensesd		2.46	%		2.63	%		2.47	%		2.44	%		2.42	%
Portfolio turnover rate		42	%		—			48	%		37	%		120	%

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020i			Year Ended March 31, 2019i			Year Ended March 29, 2018i			Year Ended March 31, 2017i
Per Share Data
Net asset value, beginning of period	$	128.00		$	109.20		$	111.46		$	124.52		$	153.44
Income (loss) from investment operations:
Net investment income (loss)a		(.42	)		.70			.65			(.45	)		(1.55	)
Net gain (loss) on investments (realized and unrealized)		(63.44	)		18.90	e		(2.91	)		(12.61	)		(27.37	)
Total from investment operations		(63.86	)		19.60			(2.26	)		(13.06	)		(28.92	)
Less distributions from:
Net investment income		(.49	)		(.80	)		—			—			—
Total distributions		(.49	)		(.80	)		—			—			—
Net asset value, end of period	$	63.65		$	128.00		$	109.20		$	111.46		$	124.52
Total Return		(49.94	%)		18.11	%		(2.02	%)		(10.48	%)		(18.87	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	779		$	1,488		$	769		$	509		$	606
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		0.65	%		0.61	%		(0.39	%)		(1.10	%)
Total expensesc		1.77	%		1.78	%		1.77	%		1.68	%		1.67	%
Net expensesd		1.75	%		1.70	%		1.75	%		1.68	%		1.67	%
Portfolio turnover rate		42	%		—			48	%		37	%		120	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
f	Less than $0.01 per share.
g	Less than $1,000 in Net Assets.
h	Less than 0.01%.
i	Reverse share split — Per share amounts for the periods presented through March 31, 2020 have been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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 Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Russell 2000^® 1.5x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index.

Russell 2000^® 1.5x Strategy Fund H-Class returned 159.27%, while the Russell 2000 Index returned 94.85% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Health Care, Consumer Discretionary, and Industrials.

The holdings contributing the most to the return of the underlying index were Penn National Gaming, Inc., Plug Power, Inc., and MyoKardia, Inc. The holdings detracting the most were eHealth, Inc., Green Dot Corp. Class A, and Merit Medical Systems, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 93

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	9.9%
Guggenheim Strategy Fund II	8.2%
Total	18.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	159.26%	20.14%	13.45%
A-Class Shares with sales charge‡	146.96%	18.97%	12.90%
C-Class Shares	157.38%	19.24%	12.60%
C-Class Shares with CDSC§	156.38%	19.24%	12.60%
H-Class Shares	159.27%	20.06%	13.43%
Russell 2000 Index	94.85%	16.35%	13.85%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

94 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
RIGHTS††† - 0.0%
Consumer, Non-cyclical - 0.0%
Tobira Therapeutics, Inc.*		14	$	—
Omthera Pharmaceuticals, Inc.*		57		—
Total Consumer, Non-cyclical				—
Communications - 0.0%
Nexstar Media Group, Inc.*		85		—
Total Rights
(Cost $—)				—
MUTUAL FUNDS† - 18.1%
Guggenheim Ultra Short Duration Fund — Institutional Class1		112,170		1,117,210
Guggenheim Strategy Fund II1		36,876		921,165
Total Mutual Funds
(Cost $2,023,780)				2,038,375
	Face Amount
U.S. TREASURY BILLS†† - 33.6%
U.S. Treasury Bills
0.09% due 04/01/212,3	$	1,100,000		1,100,000
0.01% due 04/20/212		800,000		799,991
0.03% due 04/01/212,3		380,000		380,000
0.01% due 04/22/212,4		20,000		20,000
U.S. Cash Management Bill
0.03% due 08/03/212		1,500,000		1,499,851
Total U.S. Treasury Bills
(Cost $3,799,848)				3,799,842

FEDERAL AGENCY NOTES†† - 15.5%
Federal Farm Credit Bank
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/225	1,000,000		1,003,796
0.14% (1 Month USD LIBOR + 0.03%, Rate Floor: 0.00%) due 12/29/215	500,000		500,232
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/225	250,000		250,791
Total Federal Agency Notes
(Cost $1,750,305)			1,754,819
FEDERAL AGENCY DISCOUNT NOTES†† - 11.5%
Federal Home Loan Bank
0.01% due 04/14/212	1,300,000		1,299,997
Total Federal Agency Discount Notes
(Cost $1,299,997)			1,299,997
REPURCHASE AGREEMENTS††,6 - 34.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	2,093,998		2,093,998
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213	952,033		952,033
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213	868,879		868,879
Total Repurchase Agreements
(Cost $3,914,910)			3,914,910
Total Investments - 113.3%
(Cost $12,788,840)		$	12,807,943
Other Assets & Liabilities, net - (13.3)%			(1,502,287	)
Total Net Assets - 100.0%		$	11,305,656

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		5		Jun 2021	$	555,825	$	(31,803	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	Russell 2000 Index	0.34% (1 Week USD LIBOR + 0.25%)	At Maturity		05/27/21		2,278	$	5,058,807	$	(1,324	)
Barclays Bank plc	Russell 2000 Index	0.09% (1 Week USD LIBOR)	At Maturity		05/26/21		4,266		9,471,722		(4,037	)
BNP Paribas	Russell 2000 Index	0.21% (1 Month USD LIBOR + 0.10%)	At Maturity		04/08/21		854		1,896,427		(27,507	)
								$	16,426,956	$	(32,868	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
RUSSELL 2000® 1.5x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	All or a portion of this security is pledged as futures collateral at March 31, 2021.
5	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
6	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Rights	$	—	$	—	$	—	*	$	—
Mutual Funds		2,038,375		—		—			2,038,375
U.S. Treasury Bills		—		3,799,842		—			3,799,842
Federal Agency Notes		—		1,754,819		—			1,754,819
Federal Agency Discount Notes		—		1,299,997		—			1,299,997
Repurchase Agreements		—		3,914,910		—			3,914,910
Total Assets	$	2,038,375	$	10,769,568	$	—		$	12,807,943

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	31,803	$	—	$	—	$	31,803
Equity Index Swap Agreements**		—		32,868		—		32,868
Total Liabilities	$	31,803	$	32,868	$	—	$	64,671

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
RUSSELL 2000® 1.5x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	205,017	$	704,999	$	—	$	—	$	11,149	$	921,165		36,876	$	10,250
Guggenheim Ultra Short Duration Fund — Institutional Class		204,752		908,000		—		—		4,458		1,117,210		112,170		7,045
	$	409,769	$	1,612,999	$	—	$	—	$	15,607	$	2,038,375			$	17,295

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $6,850,150)	$	6,854,658
Investments in affiliated issuers, at value (cost $2,023,780)		2,038,375
Repurchase agreements, at value (cost $3,914,910)		3,914,910
Segregated cash with broker		12,600
Receivables:
Fund shares sold		31,023
Variation margin on futures contracts		7,725
Swap settlement		5,466
Dividends		2,050
Interest		418
Total assets		12,867,225
Liabilities:
Unrealized depreciation on OTC swap agreements		32,868
Payable for:
Securities purchased		1,499,851
Management fees		8,560
Transfer agent and administrative fees		2,630
Distribution and service fees		2,493
Portfolio accounting fees		978
Trustees’ fees*		180
Fund shares redeemed		7
Miscellaneous		14,002
Total liabilities		1,561,569
Commitments and contingent liabilities (Note 12)		—
Net assets	$	11,305,656
Net assets consist of:
Paid in capital	$	7,364,887
Total distributable earnings (loss)		3,940,769
Net assets	$	11,305,656
A-Class:
Net assets	$	1,748,715
Capital shares outstanding		17,276
Net asset value per share	$	101.22
Maximum offering price per share (Net asset value divided by 95.25%)	$	106.27
C-Class:
Net assets	$	74,602
Capital shares outstanding		882
Net asset value per share	$	84.58
H-Class:
Net assets	$	9,482,339
Capital shares outstanding		94,058
Net asset value per share	$	100.81

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	17,295
Interest		11,430
Total investment income		28,725
Expenses:
Management fees		75,361
Distribution and service fees:
A-Class		3,545
C-Class		416
H-Class		17,285
Transfer agent and administrative fees		23,322
Portfolio accounting fees		8,375
Professional fees		2,187
Trustees’ fees*		1,457
Custodian fees		1,186
Interest expense		65
Miscellaneous		16,285
Total expenses		149,484
Less:
Expenses waived by Adviser		(1,635	)
Net expenses		147,849
Net investment loss		(119,124	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,520
Swap agreements		8,079,448
Futures contracts		611,821
Net realized gain		8,693,789
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		337
Investments in affiliated issuers		15,607
Swap agreements		(135,523	)
Futures contracts		(112,041	)
Net change in unrealized appreciation (depreciation)		(231,620	)
Net realized and unrealized gain		8,462,169
Net increase in net assets resulting from operations	$	8,343,045

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

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(119,124	)	$	25,700
Net realized gain (loss) on investments		8,693,789			(99,789	)
Net change in unrealized appreciation (depreciation) on investments		(231,620	)		(79,838	)
Net increase (decrease) in net assets resulting from operations		8,343,045			(153,927	)
Distributions to shareholders:
A-Class		(4,708	)		—
C-Class		(156	)		—
H-Class		(20,841	)		—
Total distributions to shareholders		(25,705	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		57,548			193,205
C-Class		39,120			11,734
H-Class		35,843,045			212,569,841
Distributions reinvested
A-Class		4,547			—
C-Class		156			—
H-Class		20,710			—
Cost of shares redeemed
A-Class		(556,001	)		(674,399	)
C-Class		(19,899	)		(54,294	)
H-Class		(36,717,049	)		(216,394,438	)
Net decrease from capital share transactions		(1,327,823	)		(4,348,351	)
Net increase (decrease) in net assets		6,989,517			(4,502,278	)
Net assets:
Beginning of year		4,316,139			8,818,417
End of year	$	11,305,656		$	4,316,139
Capital share activity:
Shares sold
A-Class		969			3,369
C-Class		588			210
H-Class		558,116			3,198,054
Shares issued from reinvestment of distributions
A-Class		55			—
C-Class		2			—
H-Class		253			—
Shares redeemed
A-Class		(7,944	)		(11,618	)
C-Class		(368	)		(995	)
H-Class		(550,126	)		(3,217,593	)
Net increase (decrease) in shares		1,545			(28,573	)

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	39.16		$	63.62		$	64.49		$	55.99		$	44.78
Income (loss) from investment operations:
Net investment income (loss)a		(.94	)		.32			.34			.02			(.32	)
Net gain (loss) on investments (realized and unrealized)		63.25			(24.78	)		(1.21	)e		8.48			16.87
Total from investment operations		62.31			(24.46	)		(.87	)		8.50			16.55
Less distributions from:
Net investment income		(.25	)		—			—			—			—
Net realized gains		—			—			—			—			(5.34	)
Total distributions		(.25	)		—			—			—			(5.34	)
Net asset value, end of period	$	101.22		$	39.16		$	63.62		$	64.49		$	55.99
Total Returnb		159.26	%		(38.45	%)		(1.35	%)		15.18	%		38.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,749		$	948		$	2,064		$	1,400		$	1,172
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		0.50	%		0.52	%		0.03	%		(0.62	%)
Total expensesc		1.79	%		1.82	%		1.80	%		1.72	%		1.73	%
Net expensesd		1.77	%		1.76	%		1.78	%		1.72	%		1.73	%
Portfolio turnover rate		—			93	%		258	%		580	%		1,315	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	32.98		$	54.00		$	55.14		$	48.24		$	39.44
Income (loss) from investment operations:
Net investment income (loss)a		(1.27	)		(.12	)		(.30	)		(.40	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		53.12			(20.90	)		(.84	)e		7.30			14.77
Total from investment operations		51.85			(21.02	)		(1.14	)		6.90			14.14
Less distributions from:
Net investment income		(.25	)		—			—			—			—
Net realized gains		—			—			—			—			(5.34	)
Total distributions		(.25	)		—			—			—			(5.34	)
Net asset value, end of period	$	84.58		$	32.98		$	54.00		$	55.14		$	48.24
Total Returnb		157.38	%		(38.93	%)		(2.07	%)		14.30	%		36.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	75		$	22		$	78		$	1,017		$	1,494
Ratios to average net assets:
Net investment income (loss)		(2.16	%)		(0.22	%)		(0.50	%)		(0.78	%)		(1.41	%)
Total expensesc		2.52	%		2.57	%		2.54	%		2.48	%		2.47	%
Net expensesd		2.50	%		2.51	%		2.53	%		2.48	%		2.47	%
Portfolio turnover rate		—			93	%		258	%		580	%		1,315	%

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	39.00		$	63.37		$	64.22		$	55.86		$	44.75
Income (loss) from investment operations:
Net investment income (loss)a		(.98	)		.09			.29			(.11	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		63.04			(24.46	)		(1.14	)e		8.47			16.96
Total from investment operations		62.06			(24.37	)		(.85	)		8.36			16.45
Less distributions from:
Net investment income		(.25	)		—			—			—			—
Net realized gains		—			—			—			—			(5.34	)
Total distributions		(.25	)		—			—			—			(5.34	)
Net asset value, end of period	$	100.81		$	39.00		$	63.37		$	64.22		$	55.86
Total Return		159.27	%		(38.46	%)		(1.32	%)		14.97	%		37.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,482		$	3,347		$	6,676		$	7,178		$	8,447
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		0.14	%		0.46	%		(0.18	%)		(0.98	%)
Total expensesc		1.78	%		1.84	%		1.81	%		1.72	%		1.73	%
Net expensesd		1.76	%		1.80	%		1.80	%		1.72	%		1.73	%
Portfolio turnover rate		—			93	%		258	%		580	%		1,315	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not agree with the aggregate net gain on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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”).

For the one-year period ended March 31, 2021, Russell 2000^® Fund maintained a daily correlation of over 99% to its benchmark of the daily price movement of the Russell 2000 Index.

Russell 2000^® Fund H-Class returned 91.73%, while the Russell 2000 Index returned 94.85% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Health Care, Consumer Discretionary, and Industrials.

The holdings contributing the most to the return of the underlying index were Penn National Gaming, Inc., Plug Power, Inc., and MyoKardia, Inc. The holdings detracting the most were eHealth, Inc., Green Dot Corp. Class A, and Merit Medical Systems, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

102 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	91.75%	14.40%	9.88%
A-Class Shares with sales charge‡	82.63%	13.29%	9.34%
C-Class Shares	90.32%	13.54%	9.03%
C-Class Shares with CDSC§	89.32%	13.54%	9.03%
H-Class Shares	91.73%	14.40%	9.86%
Russell 2000 Index	94.85%	16.35%	13.85%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 103

SCHEDULE OF INVESTMENTS	March 31, 2021
RUSSELL 2000® FUND

	Shares		Value
RIGHTS††† - 0.0%
Consumer, Non-cyclical - 0.0%
Elanco Animal Health, Inc.*		505	$	—
Oncternal Therapeutics, Inc.*		7		—
Omthera Pharmaceuticals, Inc.*		86		—
Tobira Therapeutics, Inc.*		141		—
Total Consumer, Non-cyclical				—
Communications - 0.0%
Nexstar Media Group, Inc.*		2,530		—
Total Rights
(Cost $103)				—
	Face Amount
FEDERAL AGENCY NOTES†† - 78.5%
Federal Farm Credit Bank
1.20% due 04/01/24	$	10,000,000		10,000,000
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 05/28/211		6,000,000		6,000,320
0.23% due 06/09/22		5,000,000		5,001,131
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/221		4,000,000		4,012,664
0.31% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/221		2,000,000		2,004,593
0.14% (1 Month USD LIBOR + 0.03%, Rate Floor: 0.00%) due 12/29/211		2,000,000		2,000,926
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/221		1,000,000		1,003,795

Farmer Mac
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 11/22/211	4,000,000		4,000,072
0.10% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 08/03/211	2,000,000		2,000,147
Total Federal Agency Notes
(Cost $36,002,834)			36,023,648
U.S. TREASURY BILLS†† - 38.8%
U.S. Treasury Bills
0.09% due 04/01/212,3	4,500,000		4,500,000
0.01% due 04/27/212	3,500,000		3,499,956
0.03% due 04/01/212,3	2,871,000		2,871,000
0.04% due 04/01/212,3	1,000,000		1,000,000
0.01% due 04/22/212,4	210,000		209,998
0.02% due 04/01/212,3	200,000		200,000
U.S. Cash Management Bill
0.03% due 08/03/212	5,500,000		5,499,455
Total U.S. Treasury Bills
(Cost $17,780,440)			17,780,409
REPURCHASE AGREEMENTS††,5 - 2.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	639,774		639,774
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213	290,873		290,873
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213	265,467		265,467
Total Repurchase Agreements
(Cost $1,196,114)			1,196,114
Total Investments - 119.9%
(Cost $54,979,491)		$	55,000,171
Other Assets & Liabilities, net - (19.9)%			(9,119,755	)
Total Net Assets - 100.0%		$	45,880,416

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts		31		Jun 2021	$	3,446,115	$	(178,332	)

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
RUSSELL 2000® FUND

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements††

BNP Paribas

Russell 2000 Index

0.21% (1 Month USD LIBOR + 0.10%)

At Maturity

04/08/21

640

$

1,422,165

$

40,414

Goldman Sachs International

Russell 2000 Index

0.34% (1 Week USD LIBOR + 0.25%)

At Maturity

04/08/21

926

2,055,109

34,429

Barclays Bank plc

Russell 2000 Index

0.09% (1 Week USD LIBOR)

At Maturity

05/26/21

17,542

38,952,415

(2,348

)

$

42,429,689

$

72,495

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	All or a portion of this security is pledged as futures collateral at March 31, 2021.
5	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Rights	$	—	$	—	$	—	*	$	—
Federal Agency Notes		—		36,023,648		—			36,023,648
U.S. Treasury Bills		—		17,780,409		—			17,780,409
Repurchase Agreements		—		1,196,114		—			1,196,114
Equity Index Swap Agreements**		—		74,843		—			74,843
Total Assets	$	—	$	55,075,014	$	—		$	55,075,014

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	178,332	$	—	$	—	$	178,332
Equity Index Swap Agreements**		—		2,348		—		2,348
Total Liabilities	$	178,332	$	2,348	$	—	$	180,680

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

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

RUSSELL 2000^® FUND

STATEMENT OF
ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $53,783,377)	$	53,804,057
Repurchase agreements, at value (cost $1,196,114)		1,196,114
Unrealized appreciation on OTC swap agreements		74,843
Receivables:
Fund shares sold		155,133
Interest		62,701
Variation margin on futures contracts		47,895
Total assets		55,340,743
Liabilities:
Unrealized depreciation on OTC swap agreements		2,348
Payable for:
Securities purchased		5,499,455
Fund shares redeemed		3,698,924
Swap settlement		97,192
Management fees		42,301
Distribution and service fees		16,452
Transfer agent and administrative fees		15,172
Portfolio accounting fees		8,460
Trustees’ fees*		1,090
Miscellaneous		78,933
Total liabilities		9,460,327
Commitments and contingent liabilities (Note 12)		—
Net assets	$	45,880,416
Net assets consist of:
Paid in capital	$	41,649,211
Total distributable earnings (loss)		4,231,205
Net assets	$	45,880,416
A-Class:
Net assets	$	12,420,874
Capital shares outstanding		200,915
Net asset value per share	$	61.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	64.90
C-Class:
Net assets	$	3,716,617
Capital shares outstanding		68,517
Net asset value per share	$	54.24
H-Class:
Net assets	$	29,742,925
Capital shares outstanding		482,192
Net asset value per share	$	61.68

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Interest	$	48,619
Total investment income		48,619
Expenses:
Management fees		253,551
Distribution and service fees:
A-Class		31,512
C-Class		22,395
H-Class		47,410
Transfer agent and administrative fees		94,122
Portfolio accounting fees		50,708
Professional fees		13,824
Trustees’ fees*		5,973
Custodian fees		4,755
Interest expense		103
Miscellaneous		57,138
Total expenses		581,491
Net investment loss		(532,872	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,516	)
Swap agreements		18,290,067
Futures contracts		801,037
Net realized gain		19,088,588
Net change in unrealized appreciation (depreciation) on:
Investments		28,271
Swap agreements		(335,233	)
Futures contracts		(342,408	)
Net change in unrealized appreciation (depreciation)		(649,370	)
Net realized and unrealized gain		18,439,218
Net increase in net assets resulting from operations	$	17,906,346

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

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

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(532,872	)	$	(17,866	)
Net realized gain (loss) on investments		19,088,588			(4,222,937	)
Net change in unrealized appreciation (depreciation) on investments		(649,370	)		(3,894,018	)
Net increase (decrease) in net assets resulting from operations		17,906,346			(8,134,821	)
Distributions to shareholders:
A-Class		—			(245,858	)
C-Class		—			(43,126	)
H-Class		—			(276,721	)
Total distributions to shareholders		—			(565,705	)
Capital share transactions:
Proceeds from sale of shares
A-Class		16,968,164			3,057,098
C-Class		2,759,107			815,695
H-Class		106,439,279			178,802,664
Distributions reinvested
A-Class		—			241,990
C-Class		—			36,271
H-Class		—			274,144
Cost of shares redeemed
A-Class		(22,364,500	)		(7,262,452	)
C-Class		(2,002,731	)		(1,845,375	)
H-Class		(92,858,855	)		(187,602,791	)
Net increase (decrease) from capital share transactions		8,940,464			(13,482,756	)
Net increase (decrease) in net assets		26,846,810			(22,183,282	)
Net assets:
Beginning of year		19,033,606			41,216,888
End of year	$	45,880,416		$	19,033,606
Capital share activity:
Shares sold
A-Class		323,213			73,128
C-Class		61,590			21,433
H-Class		2,060,052			4,120,156
Shares issued from reinvestment of distributions
A-Class		—			5,216
C-Class		—			883
H-Class		—			5,922
Shares redeemed
A-Class		(454,528	)		(169,984	)
C-Class		(48,862	)		(50,018	)
H-Class		(1,787,076	)		(4,360,424	)
Net increase (decrease) in shares		154,389			(353,688	)

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	32.24		$	43.81		$	43.67		$	41.61		$	33.56
Income (loss) from investment operations:
Net investment income (loss)a		(.77	)		—	c		(.05	)		(.17	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		30.35			(10.89	)		.19	d		4.34			8.26
Total from investment operations		29.58			(10.89	)		.14			4.17			8.05
Less distributions from:
Net investment income		—			(.01	)		—			—			—
Net realized gains		—			(.67	)		—			(2.11	)		—
Total distributions		—			(.68	)		—			(2.11	)		—
Net asset value, end of period	$	61.82		$	32.24		$	43.81		$	43.67		$	41.61
Total Returnb		91.75	%		(25.32	%)		0.32	%		10.03	%		23.96	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,421		$	10,712		$	18,569		$	17,163		$	14,650
Ratios to average net assets:
Net investment income (loss)		(1.53	%)		—	e		(0.11	%)		(0.40	%)		(0.54	%)
Total expenses		1.67	%		1.73	%		1.71	%		1.63	%		1.62	%
Portfolio turnover rate		—			35	%		112	%		167	%		203	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	28.50		$	39.09		$	39.26		$	37.87		$	30.78
Income (loss) from investment operations:
Net investment income (loss)a		(.95	)		(.29	)		(.37	)		(.45	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		26.69			(9.62	)		.20	d		3.95			7.53
Total from investment operations		25.74			(9.91	)		(.17	)		3.50			7.09
Less distributions from:
Net investment income		—			(.01	)		—			—			—
Net realized gains		—			(.67	)		—			(2.11	)		—
Total distributions		—			(.68	)		—			(2.11	)		—
Net asset value, end of period	$	54.24		$	28.50		$	39.09		$	39.26		$	37.87
Total Returnb		90.32	%		(25.88	%)		(0.43	%)		9.21	%		23.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,717		$	1,590		$	3,264		$	5,277		$	5,841
Ratios to average net assets:
Net investment income (loss)		(2.28	%)		(0.74	%)		(0.91	%)		(1.16	%)		(1.27	%)
Total expenses		2.43	%		2.48	%		2.46	%		2.38	%		2.38	%
Portfolio turnover rate		—			35	%		112	%		167	%		203	%

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	32.17		$	43.70		$	43.57		$	41.51		$	33.48
Income (loss) from investment operations:
Net investment income (loss)a		(.75	)		.01			(.06	)		(.19	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		30.26			(10.86	)		.19	d		4.36			8.24
Total from investment operations		29.51			(10.85	)		.13			4.17			8.03
Less distributions from:
Net investment income		—			(.01	)		—			—			—
Net realized gains		—			(.67	)		—			(2.11	)		—
Total distributions		—			(.68	)		—			(2.11	)		—
Net asset value, end of period	$	61.68		$	32.17		$	43.70		$	43.57		$	41.51
Total Return		91.73	%		(25.30	%)		0.30	%		10.03	%		23.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	29,743		$	6,731		$	19,384		$	24,713		$	29,466
Ratios to average net assets:
Net investment income (loss)		(1.52	%)		0.01	%		(0.14	%)		(0.43	%)		(0.54	%)
Total expenses		1.67	%		1.73	%		1.71	%		1.63	%		1.63	%
Portfolio turnover rate		—			35	%		112	%		167	%		203	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Less than $0.01 per share.
d	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
e	Less than 0.01%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Inverse Russell 2000^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the Russell 2000 Index.

Inverse Russell 2000^® Strategy Fund H-Class returned -54.13%, while the Russell 2000 Index returned 94.85% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Health Care, Consumer Discretionary, and Industrials.

The holdings contributing the most to the return of the underlying index were Penn National Gaming, Inc., Plug Power, Inc., and MyoKardia, Inc. The holdings detracting the most were eHealth, Inc., Green Dot Corp. Class A, and Merit Medical Systems, Inc.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

Holdings Diversification (Market Exposure as % of Net Assets)

110 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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 II	23.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	23.4%
Total	46.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	(54.13%)	(18.37%)	(15.39%)
A-Class Shares with sales charge‡	(56.30%)	(19.16%)	(15.81%)
C-Class Shares	(54.49%)	(18.98%)	(16.02%)
C-Class Shares with CDSC§	(54.95%)	(18.98%)	(16.02%)
H-Class Shares	(54.13%)	(18.34%)	(15.37%)
Russell 2000 Index	94.85%	16.35%	13.85%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 111

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 46.9%
Guggenheim Strategy Fund II1		51,129	$	1,277,205
Guggenheim Ultra Short Duration Fund — Institutional Class1		127,491		1,269,811
Total Mutual Funds
(Cost $2,512,853)				2,547,016
	Face Amount
U.S. TREASURY BILLS†† - 27.2%
U.S. Treasury Bills
0.01% due 04/20/212	$	900,000		899,990
0.09% due 04/01/212,3		200,000		200,000
0.01% due 04/22/212,4		177,000		176,999
U.S. Cash Management Bill
0.03% due 08/03/212		200,000		199,980
Total U.S. Treasury Bills
(Cost $1,476,975)				1,476,969

FEDERAL AGENCY NOTES†† - 2.2%
Federal Farm Credit Bank
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/225	120,000		120,483
Total Federal Agency Notes
(Cost $120,000)			120,483
REPURCHASE AGREEMENTS††,6 - 18.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	545,975		545,975
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213	248,227		248,227
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213	226,545		226,545
Total Repurchase Agreements
(Cost $1,020,747)			1,020,747
Total Investments - 95.1%
(Cost $5,130,575)		$	5,165,215
Other Assets & Liabilities, net - 4.9%			268,439
Total Net Assets - 100.0%		$	5,433,654

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Sold Short†
Russell 2000 Index Mini Futures Contracts		5		Jun 2021	$	555,825	$	31,475

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation (Depreciation)

OTC Equity Index Swap Agreements Sold Short††

Goldman Sachs International

Russell 2000 Index

(0.04)% (1 Week USD LIBOR - 0.05%)

At Maturity

04/08/21

1,182

$

2,624,333

$

108,634

Barclays Bank plc

Russell 2000 Index

0.41% (1 Week USD LIBOR - 0.50%)

At Maturity

04/07/21

438

973,425

14,181

BNP Paribas

Russell 2000 Index

0.29% (1 Month USD LIBOR - 0.40%)

At Maturity

04/08/21

583

1,295,286

(11,559

)

$

4,893,044

$

111,256

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
INVERSE RUSSELL 2000® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
4	All or a portion of this security is pledged as futures collateral at March 31, 2021.
5	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
6	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Mutual Funds	$	2,547,016	$	—	$	—	$	2,547,016
U.S. Treasury Bills		—		1,476,969		—		1,476,969
Federal Agency Notes		—		120,483		—		120,483
Repurchase Agreements		—		1,020,747		—		1,020,747
Equity Futures Contracts**		31,475		—		—		31,475
Equity Index Swap Agreements**		—		122,815		—		122,815
Total Assets	$	2,578,491	$	2,741,014	$	—	$	5,319,505

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	11,559	$	—	$	11,559

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE RUSSELL 2000® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	826,823	$	600,000	$	(200,000	)	$	1,320	$	49,062	$	1,277,205		51,129	$	24,640
Guggenheim Ultra Short Duration Fund — Institutional Class		1,068,939		375,000		(200,000	)		200		25,672		1,269,811		127,491		16,613
	$	1,895,762	$	975,000	$	(400,000	)	$	1,520	$	74,734	$	2,547,016			$	41,253

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $1,596,975)	$	1,597,452
Investments in affiliated issuers, at value (cost $2,512,853)		2,547,016
Repurchase agreements, at value (cost $1,020,747)		1,020,747
Unrealized appreciation on OTC swap agreements		122,815
Receivables:
Swap settlement		210,035
Fund shares sold		198,314
Dividends		2,892
Interest		59
Total assets		5,699,330
Liabilities:
Unrealized depreciation on OTC swap agreements		11,559
Payable for:
Securities purchased		199,980
Fund shares redeemed		14,716
Management fees		8,902
Variation margin on futures contracts		7,725
Transfer agent and administrative fees		2,752
Distribution and service fees		2,575
Portfolio accounting fees		1,023
Trustees’ fees*		210
Miscellaneous		16,234
Total liabilities		265,676
Commitments and contingent liabilities (Note 12)		—
Net assets	$	5,433,654
Net assets consist of:
Paid in capital	$	46,512,226
Total distributable earnings (loss)		(41,078,572	)
Net assets	$	5,433,654
A-Class:
Net assets	$	319,922
Capital shares outstanding		5,787
Net asset value per share	$	55.28
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.04
C-Class:
Net assets	$	26,339
Capital shares outstanding		543
Net asset value per share	$	48.51
H-Class:
Net assets	$	5,087,393
Capital shares outstanding		91,653
Net asset value per share	$	55.51

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	41,253
Interest		17,585
Total investment income		58,838
Expenses:
Management fees		143,828
Distribution and service fees:
A-Class		1,108
C-Class		615
H-Class		38,691
Transfer agent and administrative fees		45,404
Registration fees		22,960
Portfolio accounting fees		15,984
Professional fees		12,256
Trustees’ fees*		4,408
Custodian fees		2,429
Miscellaneous		2,409
Total expenses		290,092
Less:
Expenses waived by Adviser		(3,610	)
Net expenses		286,482
Net investment loss		(227,644	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,732
Investments in affiliated issuers		1,520
Swap agreements		(11,789,560	)
Futures contracts		(1,451,853	)
Net realized loss		(13,238,161	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(7,083	)
Investments in affiliated issuers		74,734
Swap agreements		(333,033	)
Futures contracts		31,475
Net change in unrealized appreciation (depreciation)		(233,907	)
Net realized and unrealized loss		(13,472,068	)
Net decrease in net assets resulting from operations	$	(13,699,712	)

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

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(227,644	)	$	6,140
Net realized loss on investments		(13,238,161	)		(1,841,497	)
Net change in unrealized appreciation (depreciation) on investments		(233,907	)		532,960
Net decrease in net assets resulting from operations		(13,699,712	)		(1,302,397	)
Distributions to shareholders:
A-Class		(286	)		(1,975	)
C-Class		(39	)		(2,914	)
H-Class		(5,815	)		(47,851	)
Total distributions to shareholders		(6,140	)		(52,740	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,016,352			504,699
C-Class		69,459			42,769
H-Class		86,070,796			83,248,259
Distributions reinvested
A-Class		286			1,705
C-Class		39			2,557
H-Class		5,776			47,493
Cost of shares redeemed
A-Class		(566,925	)		(1,102,154	)
C-Class		(85,226	)		(512,240	)
H-Class		(90,085,151	)		(68,762,044	)
Net increase (decrease) from capital share transactions		(3,574,594	)		13,471,044
Net increase (decrease) in net assets		(17,280,446	)		12,115,907
Net assets:
Beginning of year		22,714,100			10,598,193
End of year	$	5,433,654		$	22,714,100
Capital share activity:*
Shares sold
A-Class		10,628			4,925
C-Class		895			408
H-Class		1,035,477			755,791
Shares issued from reinvestment of distributions
A-Class		4			18
C-Class		1			31
H-Class		87			500
Shares redeemed
A-Class		(6,557	)		(10,540	)
C-Class		(1,230	)		(4,610	)
H-Class		(1,129,019	)		(662,873	)
Net increase (decrease) in shares		(89,714	)		83,650

* Capital share activity for the year ended March 31, 2020, has been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020e			Year Ended March 31, 2019e			Year Ended March 29, 2018e			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	120.61		$	102.08		$	104.50		$	118.12		$	153.78
Income (loss) from investment operations:
Net investment income (loss)a		(.45	)		.50			.70			(.90	)		(1.55	)
Net gain (loss) on investments (realized and unrealized)		(64.83	)		18.73	f		(3.12	)		(12.72	)		(34.11	)
Total from investment operations		(65.28	)		19.23			(2.42	)		(13.62	)		(35.66	)
Less distributions from:
Net investment income		(.05	)		(.70	)		—			—			—
Total distributions		(.05	)		(.70	)		—			—			—
Net asset value, end of period	$	55.28		$	120.61		$	102.08		$	104.50		$	118.12
Total Returnb		(54.13	%)		19.00	%		(2.30	%)		(11.52	%)		(23.21	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	320		$	207		$	746		$	262		$	8,645
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		0.51	%		0.65	%		(0.76	%)		(1.11	%)
Total expensesc		1.80	%		1.82	%		1.83	%		1.74	%		1.71	%
Net expensesd		1.78	%		1.78	%		1.81	%		1.74	%		1.71	%
Portfolio turnover rate		14	%		7	%		40	%		—			58	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020e			Year Ended March 31, 2019e			Year Ended March 29, 2018e			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	106.73		$	91.07		$	93.97		$	107.05		$	140.35
Income (loss) from investment operations:
Net investment income (loss)a		(.61	)		(.30	)		(.25	)		(1.25	)		(2.25	)
Net gain (loss) on investments (realized and unrealized)		(57.56	)		16.66	f		(2.65	)		(11.83	)		(31.05	)
Total from investment operations		(58.17	)		16.36			(2.90	)		(13.08	)		(33.30	)
Less distributions from:
Net investment income		(.05	)		(.70	)		—			—			—
Total distributions		(.05	)		(.70	)		—			—			—
Net asset value, end of period	$	48.51		$	106.73		$	91.07		$	93.97		$	107.05
Total Returnb		(54.49	%)		18.22	%		(3.09	%)		(12.24	%)		(23.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26		$	94		$	460		$	607		$	1,028
Ratios to average net assets:
Net investment income (loss)		(2.15	%)		(0.34	%)		(0.26	%)		(1.22	%)		1.83	%
Total expensesc		2.57	%		2.57	%		2.56	%		2.48	%		2.47	%
Net expensesd		2.54	%		2.53	%		2.55	%		2.48	%		2.47	%
Portfolio turnover rate		14	%		7	%		40	%		—			58	%

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020e			Year Ended March 31, 2019e			Year Ended March 29, 2018e			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	121.09		$	102.43		$	104.78		$	118.47		$	154.15
Income (loss) from investment operations:
Net investment income (loss)a		(.44	)		.10			.55			(.45	)		(1.60	)
Net gain (loss) on investments (realized and unrealized)		(65.09	)		19.26	f		(2.90	)		(13.24	)		(34.08	)
Total from investment operations		(65.53	)		19.36			(2.35	)		(13.69	)		(35.68	)
Less distributions from:
Net investment income		(.05	)		(.70	)		—			—			—
Total distributions		(.05	)		(.70	)		—			—			—
Net asset value, end of period	$	55.51		$	121.09		$	102.43		$	104.78		$	118.47
Total Return		(54.13	%)		19.08	%		(2.24	%)		(11.52	%)		(23.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,087		$	22,414		$	9,392		$	3,543		$	5,777
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		0.07	%		0.53	%		(0.39	%)		(1.14	%)
Total expensesc		1.81	%		1.82	%		1.82	%		1.72	%		1.72	%
Net expensesd		1.79	%		1.79	%		1.81	%		1.72	%		1.72	%
Portfolio turnover rate		14	%		7	%		40	%		—			58	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the periods presented through March 31, 2020 have been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.
f	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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”).

For the one-year period ended March 31, 2021, Dow Jones Industrial Average^® Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the Dow Jones Industrial Average Index.

Dow Jones Industrial Average^® Fund H-Class returned 51.64%, while the Dow Jones Industrial Average Index returned 53.78% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Financials, Information Technology, and Industrials.

The holdings contributing the most to the return of the underlying index were Boeing Co., Goldman Sachs Group, Inc., and Apple, Inc. The holdings detracting the most were Merck & Co., Inc., Verizon Communications, Inc., and Coca-Cola Co.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

Holdings Diversification (Market Exposure as % of Net Assets)

THE RYDEX FUNDS ANNUAL REPORT | 119

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	7.9%
UnitedHealth Group, Inc.	5.7%
Goldman Sachs Group, Inc.	5.0%
Home Depot, Inc.	4.6%
Boeing Co.	3.9%
Amgen, Inc.	3.8%
Microsoft Corp.	3.6%
Caterpillar, Inc.	3.5%
McDonald’s Corp.	3.4%
Honeywell International, Inc.	3.3%
Top Ten Total	44.7%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	Since Inception (12/01/15)
A-Class Shares	51.61%	14.01%	12.91%
A-Class Shares with sales charge‡	44.41%	12.91%	11.89%
C-Class Shares	50.52%	13.16%	12.07%
C-Class Shares with CDSC§	49.52%	13.16%	12.07%
H-Class Shares	51.64%	14.03%	12.93%
Dow Jones Industrial Average Index	53.78%	15.99%	14.85%

*	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. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

120 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
DOW JONES INDUSTRIAL AVERAGE® FUND

	Shares		Value
COMMON STOCKS† - 76.3%
Consumer, Non-cyclical - 16.0%
UnitedHealth Group, Inc.		3,545	$	1,318,988
Amgen, Inc.		3,545		882,032
Johnson & Johnson		3,545		582,621
Procter & Gamble Co.		3,545		480,099
Merck & Company, Inc.		3,545		273,284
Coca-Cola Co.		3,545		186,857
Total Consumer, Non-cyclical				3,723,881
Financial - 14.9%
Goldman Sachs Group, Inc.		3,545		1,159,215
Visa, Inc. — Class A		3,545		750,583
JPMorgan Chase & Co.		3,545		539,655
Travelers Companies, Inc.		3,545		533,168
American Express Co.		3,545		501,405
Total Financial				3,484,026
Industrial - 13.6%
Boeing Co.*		3,545		902,982
Caterpillar, Inc.		3,545		821,979
Honeywell International, Inc.		3,545		769,513
3M Co.		3,545		683,051
Total Industrial				3,177,525
Consumer, Cyclical - 13.0%
Home Depot, Inc.		3,545		1,082,111
McDonald’s Corp.		3,545		794,576
Walmart, Inc.		3,545		481,518
NIKE, Inc. — Class B		3,545		471,095
Walgreens Boots Alliance, Inc.		3,545		194,621
Total Consumer, Cyclical				3,023,921
Technology - 11.7%
Microsoft Corp.		3,545		835,805
salesforce.com, Inc.*		3,545		751,079
International Business Machines Corp.		3,545		472,406
Apple, Inc.		3,545		433,022
Intel Corp.		3,545		226,880
Total Technology				2,719,192
Communications - 4.5%
Walt Disney Co.*		3,545		654,123
Verizon Communications, Inc.		3,545		206,142
Cisco Systems, Inc.		3,545		183,312
Total Communications				1,043,577
Energy - 1.6%
Chevron Corp.		3,545		371,481
Basic Materials - 1.0%
Dow, Inc.		3,545		226,667
Total Common Stocks
(Cost $12,526,161)				17,770,270
MUTUAL FUNDS† - 10.5%
Guggenheim Strategy Fund II1		73,498		1,835,969
Guggenheim Ultra Short Duration Fund — Institutional Class1		62,558		623,081
Total Mutual Funds
(Cost $2,442,626)				2,459,050
	Face Amount
U.S. TREASURY BILLS†† - 1.8%
U.S. Treasury Bills
0.09% due 04/01/212,3	$	200,000		200,000
0.01% due 04/22/213,4		10,000		10,000
U.S. Cash Management Bill
0.03% due 08/03/213		200,000		199,980
Total U.S. Treasury Bills
(Cost $409,980)				409,980
REPURCHASE AGREEMENTS††,5 - 11.0%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/212		1,367,738		1,367,738
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/212		621,840		621,840
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/212		567,526		567,526
Total Repurchase Agreements
(Cost $2,557,104)				2,557,104
Total Investments - 99.6%
(Cost $17,935,871)			$	23,196,404
Other Assets & Liabilities, net - 0.4%				97,226
Total Net Assets - 100.0%			$	23,293,630

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
Dow Jones Industrial Average Index Mini Futures Contracts		3		Jun 2021	$	493,575	$	1,836

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
DOW JONES INDUSTRIAL AVERAGE® FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements††
BNP Paribas	Dow Jones Industrial Average Index	0.61% (1 Month USD LIBOR + 0.50%)	At Maturity		04/08/21		91	$	2,987,710	$	102,222
Barclays Bank plc	Dow Jones Industrial Average Index	0.59% (1 Week USD LIBOR + 0.50%)	At Maturity		04/07/21		63		2,082,336		52,246
								$	5,070,046	$	154,468

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at March 31, 2021.
5	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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	$	17,770,270	$	—	$	—	$	17,770,270
Mutual Funds		2,459,050		—		—		2,459,050
U.S. Treasury Bills		—		409,980		—		409,980
Repurchase Agreements		—		2,557,104		—		2,557,104
Equity Futures Contracts**		1,836		—		—		1,836
Equity Index Swap Agreements**		—		154,468		—		154,468
Total Assets	$	20,231,156	$	3,121,552	$	—	$	23,352,708

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
DOW JONES INDUSTRIAL AVERAGE® FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,767,616	$	—	$	—		$	—	$	68,353	$	1,835,969		73,498	$	31,174
Guggenheim Ultra Short Duration Fund — Institutional Class		1,493,141		—		(900,000	)		2,634		27,306		623,081		62,558		13,125
	$	3,260,757	$	—	$	(900,000	)	$	2,634	$	95,659	$	2,459,050			$	44,299

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $12,936,141)	$	18,180,250
Investments in affiliated issuers, at value (cost $2,442,626)		2,459,050
Repurchase agreements, at value (cost $2,557,104)		2,557,104
Segregated cash with broker		17,050
Unrealized appreciation on OTC swap agreements		154,468
Receivables:
Fund shares sold		179,210
Swap settlement		19,674
Dividends		10,230
Total assets		23,577,036
Liabilities:
Payable for:
Securities purchased		199,980
Fund shares redeemed		28,291
Management fees		13,022
Distribution and service fees		6,121
Transfer agent and administrative fees		4,718
Portfolio accounting fees		1,754
Trustees’ fees*		313
Variation margin on futures contracts		300
Miscellaneous		28,907
Total liabilities		283,406
Commitments and contingent liabilities (Note 12)		—
Net assets	$	23,293,630
Net assets consist of:
Paid in capital	$	18,920,305
Total distributable earnings (loss)		4,373,325
Net assets	$	23,293,630
A-Class:
Net assets	$	2,951,816
Capital shares outstanding		35,641
Net asset value per share	$	82.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	86.95
C-Class:
Net assets	$	2,842,144
Capital shares outstanding		35,865
Net asset value per share	$	79.25
H-Class:
Net assets	$	17,499,670
Capital shares outstanding		211,146
Net asset value per share	$	82.88

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers	$	332,087
Dividends from securities of affiliated issuers		44,299
Interest		2,109
Total investment income		378,495
Expenses:
Management fees		163,894
Distribution and service fees:
A-Class		8,550
C-Class		21,831
H-Class		40,623
Transfer agent and administrative fees		61,619
Portfolio accounting fees		21,856
Licensing fees		21,804
Professional fees		9,996
Trustees’ fees*		5,228
Custodian fees		3,238
Miscellaneous		29,314
Total expenses		387,953
Less:
Expenses waived by Adviser		(2,744	)
Net expenses		385,209
Net investment loss		(6,714	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,856,528
Investments in affiliated issuers		2,634
Swap agreements		1,322,980
Futures contracts		660,570
Net realized gain		3,842,712
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		4,403,089
Investments in affiliated issuers		95,659
Swap agreements		421,783
Futures contracts		(175,221	)
Net change in unrealized appreciation (depreciation)		4,745,310
Net realized and unrealized gain		8,588,022
Net increase in net assets resulting from operations	$	8,581,308

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

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(6,714	)	$	201,192
Net realized gain on investments		3,842,712			5,067,156
Net change in unrealized appreciation (depreciation) on investments		4,745,310			(7,146,849	)
Net increase (decrease) in net assets resulting from operations		8,581,308			(1,878,501	)
Distributions to shareholders:
A-Class		(219,502	)		(159,709	)
C-Class		(100,677	)		(98,345	)
H-Class		(667,482	)		(892,516	)
Total distributions to shareholders		(987,661	)		(1,150,570	)
Capital share transactions:
Proceeds from sale of shares
A-Class		16,573,038			16,273,565
C-Class		1,170,506			2,489,125
H-Class		55,034,990			141,553,466
Distributions reinvested
A-Class		124,588			127,980
C-Class		100,157			93,396
H-Class		665,388			889,793
Cost of shares redeemed
A-Class		(17,549,236	)		(32,450,685	)
C-Class		(806,262	)		(2,248,063	)
H-Class		(68,232,740	)		(156,450,347	)
Net decrease from capital share transactions		(12,919,571	)		(29,721,770	)
Net decrease in net assets		(5,325,924	)		(32,750,841	)
Net assets:
Beginning of year		28,619,554			61,370,395
End of year	$	23,293,630		$	28,619,554
Capital share activity:
Shares sold
A-Class		229,982			272,947
C-Class		16,492			35,697
H-Class		787,958			2,026,607
Shares issued from reinvestment of distributions
A-Class		1,651			1,746
C-Class		1,384			1,316
H-Class		8,811			12,134
Shares redeemed
A-Class		(242,246	)		(498,107	)
C-Class		(11,565	)		(32,647	)
H-Class		(1,009,796	)		(2,189,993	)
Net decrease in shares		(217,329	)		(370,300	)

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	57.33		$	70.54		$	66.00		$	58.25		$	49.60
Income (loss) from investment operations:
Net investment income (loss)a		.02			.47			.55			.34			.23
Net gain (loss) on investments (realized and unrealized)		29.21			(10.67	)		4.78			9.91			8.73
Total from investment operations		29.23			(10.20	)		5.33			10.25			8.96
Less distributions from:
Net investment income		(.06	)		(.31	)		(.64	)		(.35	)		(.02	)
Net realized gains		(3.68	)		(2.70	)		(.15	)		(2.15	)		(.29	)
Total distributions		(3.74	)		(3.01	)		(.79	)		(2.50	)		(.31	)
Net asset value, end of period	$	82.82		$	57.33		$	70.54		$	66.00		$	58.25
Total Returnb		51.61	%		(15.38	%)		8.15	%		17.55	%		18.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,952		$	2,652		$	19,022		$	20,953		$	19,523
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.65	%		0.80	%		0.54	%		0.44	%
Total expensesc		1.69	%		1.66	%		1.61	%		1.56	%		1.56	%
Net expensesd		1.68	%		1.64	%		1.61	%		1.56	%		1.56	%
Portfolio turnover rate		110	%		186	%		465	%		168	%		668	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	55.37		$	68.74		$	64.81		$	57.66		$	49.47
Income (loss) from investment operations:
Net investment income (loss)a		(.49	)		(.02	)		.03			(.09	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		28.11			(10.34	)		4.69			9.74			8.61
Total from investment operations		27.62			(10.36	)		4.72			9.65			8.50
Less distributions from:
Net investment income		(.06	)		(.31	)		(.64	)		(.35	)		(.02	)
Net realized gains		(3.68	)		(2.70	)		(.15	)		(2.15	)		(.29	)
Total distributions		(3.74	)		(3.01	)		(.79	)		(2.50	)		(.31	)
Net asset value, end of period	$	79.25		$	55.37		$	68.74		$	64.81		$	57.66
Total Returnb		50.52	%		(16.03	%)		7.37	%		16.66	%		17.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,842		$	1,637		$	1,731		$	3,294		$	2,144
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.03	%)		0.04	%		(0.14	%)		(0.21	%)
Total expensesc		2.44	%		2.42	%		2.36	%		2.30	%		2.32	%
Net expensesd		2.43	%		2.40	%		2.36	%		2.36	%		2.32	%
Portfolio turnover rate		110	%		186	%		465	%		168	%		668	%

126 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	57.36		$	70.59		$	66.04		$	58.28		$	49.59
Income (loss) from investment operations:
Net investment income (loss)a		.03			.51			.55			.39			.28
Net gain (loss) on investments (realized and unrealized)		29.23			(10.73	)		4.79			9.87			8.72
Total from investment operations		29.26			(10.22	)		5.34			10.26			9.00
Less distributions from:
Net investment income		(.06	)		(.31	)		(.64	)		(.35	)		(.02	)
Net realized gains		(3.68	)		(2.70	)		(.15	)		(2.15	)		(.29	)
Total distributions		(3.74	)		(3.01	)		(.79	)		(2.50	)		(.31	)
Net asset value, end of period	$	82.88		$	57.36		$	70.59		$	66.04		$	58.28
Total Return		51.64	%		(15.40	%)		8.16	%		17.54	%		18.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,500		$	24,331		$	40,617		$	68,766		$	42,495
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.70	%		0.80	%		0.61	%		0.52	%
Total expensesc		1.70	%		1.66	%		1.62	%		1.55	%		1.57	%
Net expensesd		1.69	%		1.64	%		1.62	%		1.55	%		1.57	%
Portfolio turnover rate		110	%		186	%		465	%		168	%		668	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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 most recently issued 30 Year U.S. Treasury Bond. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, the Government Long Bond 1.2x Strategy Fund Investor Class returned -24.72%.

The Price Movement of the Long Treasury Bond was -21.49% for the period.

The return of a comparison index, the Bloomberg Barclays U.S. Long Treasury Index was -15.80%.

As prices of long-term Treasury bonds fell over the period, their yields rose, from 1.32% to 2.41%. This performance masked considerable volatility, as investors fearful of global economic fallout from the coronavirus outbreak and oil price instability early in the period rushed into safe havens and sent prices of U.S. Treasuries skyrocketing. In April 2020, the yield on the 30-year Treasury yield dipped to its period low of 1.17%. Yields gradually creeped back to end the year at their highest level since the pandemic, and on the strength of the economic recovery continued to rise until mid-March 2021, when the yield on the 30-year Treasury yield reached its period high of 2.45%. Investors shifted from Treasuries to higher-yielding corners of the market, and reacted to a substantial increase in Treasury supply, as the U.S. Government continued its emergency fiscal measures and stimulus spending. The market also has been absorbing expected increases in economic growth and inflation. The Treasury yield curve steepened significantly over the period, as short-term yields fell slightly and longer-term yields jumped.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

128 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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 Bonds	78.9%
Guggenheim Ultra Short Duration Fund — Institutional Class	3.6%
Guggenheim Strategy Fund II	3.6%
Total	86.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 129

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	(24.72%)	1.88%	7.34%
A-Class Shares	(24.98%)	1.62%	7.12%
A-Class Shares with sales charge‡	(28.55%)	0.64%	6.60%
C-Class Shares	(25.55%)	0.86%	6.29%
C-Class Shares with CDSC§	(26.06%)	0.86%	6.29%
Bloomberg Barclays U.S. Long Treasury Index	(15.80%)	3.13%	6.35%
Price Movement of Long Treasury Bond**	(21.49%)	0.42%	3.45%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(24.98%)	1.62%	4.44%
Bloomberg Barclays U.S. Long Treasury Index	(15.80%)	3.13%	5.15%
Price Movement of Long Treasury Bond**	(21.49%)	0.42%	2.44%

*	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 Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Does not reflect any interest.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

130 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 7.2%
Guggenheim Ultra Short Duration Fund — Institutional Class1		563,138	$	5,608,852
Guggenheim Strategy Fund II1		222,800		5,565,542
Total Mutual Funds
(Cost $11,153,238)				11,174,394
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 78.9%
U.S. Treasury Bonds
1.88% due 02/15/51	$	138,850,000		123,251,070
Total U.S. Government Securities
(Cost $124,485,184)				123,251,070
U.S. TREASURY BILLS†† - 9.2%
U.S. Treasury Bills
0.01% due 04/20/212		12,400,000		12,399,869
0.01% due 04/22/212,3		2,049,000		2,048,985
Total U.S. Treasury Bills
(Cost $14,448,933)				14,448,854

REPURCHASE AGREEMENTS††,4 - 7.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	6,502,400		6,502,400
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21	2,956,307		2,956,307
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21	2,698,092		2,698,092
Total Repurchase Agreements
(Cost $12,156,799)			12,156,799
Total Investments - 103.1%
(Cost $162,244,154)		$	161,031,117
Other Assets & Liabilities, net - (3.1)%			(4,805,494	)
Total Net Assets - 100.0%		$	156,225,623

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury Ultra Long Bond Futures Contracts		421		Jun 2021	$	76,635,156	$	352,265

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as futures collateral at March 31, 2021.
4	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	11,174,394	$	—	$	—	$	11,174,394
U.S. Government Securities		—		123,251,070		—		123,251,070
U.S. Treasury Bills		—		14,448,854		—		14,448,854
Repurchase Agreements		—		12,156,799		—		12,156,799
Interest Rate Futures Contracts**		352,265		—		—		352,265
Total Assets	$	11,526,659	$	149,856,723	$	—	$	161,383,382

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	10,417,042	$	2,150,000	$	(7,300,000	)	$	(69,128	)	$	367,628	$	5,565,542		222,800	$	98,204
Guggenheim Ultra Short Duration Fund — Institutional Class		10,511,293		6,450,000		(11,500,000	)		(59,184	)		206,743		5,608,852		563,138		63,281
	$	20,928,335	$	8,600,000	$	(18,800,000	)	$	(128,312	)	$	574,371	$	11,174,394			$	161,485

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $138,934,117)	$	137,699,924
Investments in affiliated issuers, at value (cost $11,153,238)		11,174,394
Repurchase agreements, at value (cost $12,156,799)		12,156,799
Segregated cash with broker		1,800,665
Receivables:
Securities sold		9,764,219
Fund shares sold		569,624
Interest		373,634
Dividends		10,385
Total assets		173,549,644
Liabilities:
Payable for:
Fund shares redeemed		16,888,717
Variation margin on futures contracts		169,426
Management fees		54,247
Transfer agent and administrative fees		24,210
Distribution and service fees		19,836
Portfolio accounting fees		11,055
Trustees’ fees*		1,852
Distributions to shareholders		547
Miscellaneous		154,131
Total liabilities		17,324,021
Commitments and contingent liabilities (Note 12)		—
Net assets	$	156,225,623
Net assets consist of:
Paid in capital	$	174,304,402
Total distributable earnings (loss)		(18,078,779	)
Net assets	$	156,225,623
Investor Class:
Net assets	$	69,359,695
Capital shares outstanding		1,828,689
Net asset value per share	$	37.93
A-Class:
Net assets	$	1,609,500
Capital shares outstanding		41,976
Net asset value per share	$	38.34
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.25
C-Class:
Net assets	$	169,309
Capital shares outstanding		4,499
Net asset value per share	$	37.63
H-Class:
Net assets	$	85,087,119
Capital shares outstanding		2,217,061
Net asset value per share	$	38.38

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	161,485
Interest		1,169,545
Total investment income		1,331,030
Expenses:
Management fees		447,780
Distribution and service fees:
A-Class		6,545
C-Class		6,941
H-Class		132,330
Transfer agent and administrative fees		214,224
Portfolio accounting fees		89,568
Registration fees		82,715
Professional fees		57,292
Trustees’ fees*		35,165
Custodian fees		14,458
Line of credit fees		440
Miscellaneous		1,952
Total expenses		1,089,410
Less:
Expenses waived by Adviser		(13,186	)
Net expenses		1,076,224
Net investment income		254,806
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(6,270,120	)
Investments in affiliated issuers		(128,312	)
Futures contracts		(186,535	)
Net realized loss		(6,584,967	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(12,718,685	)
Investments in affiliated issuers		574,371
Futures contracts		(7,122,200	)
Net change in unrealized appreciation (depreciation)		(19,266,514	)
Net realized and unrealized loss		(25,851,481	)
Net decrease in net assets resulting from operations	$	(25,596,675	)

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

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	254,806		$	1,630,386
Net realized gain (loss) on investments		(6,584,967	)		42,346,916
Net change in unrealized appreciation (depreciation) on investments		(19,266,514	)		11,247,858
Net increase (decrease) in net assets resulting from operations		(25,596,675	)		55,225,160
Distributions to shareholders:
Investor Class		(4,960,713	)		(2,108,783	)
A-Class		(901,622	)		(435,810	)
C-Class		(236,487	)		(21,938	)
H-Class		(9,855,303	)		(1,738,251	)
Total distributions to shareholders		(15,954,125	)		(4,304,782	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,148,184,621			962,124,357
A-Class		3,059,120			4,581,047
C-Class		2,804,995			7,550,985
H-Class		1,008,418,309			790,950,225
Distributions reinvested
Investor Class		4,881,667			1,970,914
A-Class		837,688			423,677
C-Class		220,470			20,877
H-Class		9,847,832			1,736,665
Cost of shares redeemed
Investor Class		(1,108,072,277	)		(1,014,887,608	)
A-Class		(3,431,050	)		(32,933,999	)
C-Class		(3,616,674	)		(7,268,837	)
H-Class		(985,371,192	)		(779,922,941	)
Net increase (decrease) from capital share transactions		77,763,509			(65,654,638	)
Net increase (decrease) in net assets		36,212,709			(14,734,260	)
Net assets:
Beginning of year		120,012,914			134,747,174
End of year	$	156,225,623		$	120,012,914
Capital share activity:
Shares sold
Investor Class		18,090,039			16,000,438
A-Class		49,028			74,378
C-Class		48,918			126,059
H-Class		16,125,875			13,427,183
Shares issued from reinvestment of distributions
Investor Class		104,624			33,535
A-Class		17,803			7,261
C-Class		4,770			359
H-Class		209,359			29,371
Shares redeemed
Investor Class		(16,877,614	)		(16,783,183	)
A-Class		(62,007	)		(503,938	)
C-Class		(66,029	)		(120,980	)
H-Class		(15,162,526	)		(13,202,385	)
Net increase (decrease) in shares		2,482,240			(911,902	)

134 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	74.11		$	53.22		$	51.21		$	50.49		$	58.12
Income (loss) from investment operations:
Net investment income (loss)a		.25			.77			.96			.80			.70
Net gain (loss) on investments (realized and unrealized)		(14.59	)		22.86			2.00			.72			(5.50	)
Total from investment operations		(14.34	)		23.63			2.96			1.52			(4.80	)
Less distributions from:
Net investment income		(.25	)		(.77	)		(.95	)		(.80	)		(.72	)
Net realized gains		(21.59	)		(1.97	)		—			—			(2.11	)
Total distributions		(21.84	)		(2.74	)		(.95	)		(.80	)		(2.83	)
Net asset value, end of period	$	37.93		$	74.11		$	53.22		$	51.21		$	50.49
Total Return		(24.72	%)		45.84	%		5.93	%		3.01	%		(8.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,360		$	37,919		$	67,103		$	37,496		$	16,496
Ratios to average net assets:
Net investment income (loss)		0.40	%		1.28	%		1.94	%		1.52	%		1.21	%
Total expensesb		1.07	%		1.07	%		1.07	%		0.98	%		0.98	%
Net expensesd		1.05	%		1.05	%		1.06	%		0.98	%		0.98	%
Portfolio turnover rate		1,938	%		1,130	%		1,182	%		1,468	%		2,490	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	74.70		$	53.63		$	51.62		$	50.87		$	58.50
Income (loss) from investment operations:
Net investment income (loss)a		.11			.72			.83			.69			.63
Net gain (loss) on investments (realized and unrealized)		(14.78	)		22.95			2.01			.74			(5.57	)
Total from investment operations		(14.67	)		23.67			2.84			1.43			(4.94	)
Less distributions from:
Net investment income		(.10	)		(.63	)		(.83	)		(.68	)		(.58	)
Net realized gains		(21.59	)		(1.97	)		—			—			(2.11	)
Total distributions		(21.69	)		(2.60	)		(.83	)		(.68	)		(2.69	)
Net asset value, end of period	$	38.34		$	74.70		$	53.63		$	51.62		$	50.87
Total Returnc		(24.98	%)		45.48	%		5.63	%		2.78	%		(8.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,610		$	2,775		$	24,639		$	6,158		$	15,827
Ratios to average net assets:
Net investment income (loss)		0.18	%		1.24	%		1.65	%		1.31	%		1.19	%
Total expensesb		1.30	%		1.32	%		1.33	%		1.23	%		1.24	%
Net expensesd		1.29	%		1.30	%		1.32	%		1.23	%		1.24	%
Portfolio turnover rate		1,938	%		1,130	%		1,182	%		1,468	%		2,490	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	74.15		$	53.27		$	51.24		$	50.52		$	58.13
Income (loss) from investment operations:
Net investment income (loss)a		(.33	)		.13			.45			.27			.13
Net gain (loss) on investments (realized and unrealized)		(14.60	)		22.92			2.04			.73			(5.47	)
Total from investment operations		(14.93	)		23.05			2.49			1.00			(5.34	)
Less distributions from:
Net investment income		—			(.20	)		(.46	)		(.28	)		(.16	)
Net realized gains		(21.59	)		(1.97	)		—			—			(2.11	)
Total distributions		(21.59	)		(2.17	)		(.46	)		(.28	)		(2.27	)
Net asset value, end of period	$	37.63		$	74.15		$	53.27		$	51.24		$	50.52
Total Returnc		(25.55	%)		44.41	%		4.92	%		1.97	%		(9.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	169		$	1,249		$	607		$	724		$	1,770
Ratios to average net assets:
Net investment income (loss)		(0.55	%)		0.21	%		0.91	%		0.52	%		0.22	%
Total expensesb		2.05	%		2.08	%		2.07	%		1.98	%		1.97	%
Net expensesd		2.03	%		2.06	%		2.06	%		1.98	%		1.97	%
Portfolio turnover rate		1,938	%		1,130	%		1,182	%		1,468	%		2,490	%

136 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	74.75		$	53.65		$	51.64		$	50.91		$	58.55
Income (loss) from investment operations:
Net investment income (loss)a		.13			.61			.84			.69			.58
Net gain (loss) on investments (realized and unrealized)		(14.82	)		23.09			2.01			.72			(5.53	)
Total from investment operations		(14.69	)		23.70			2.85			1.41			(4.95	)
Less distributions from:
Net investment income		(.09	)		(.63	)		(.84	)		(.68	)		(.58	)
Net realized gains		(21.59	)		(1.97	)		—			—			(2.11	)
Total distributions		(21.68	)		(2.60	)		(.84	)		(.68	)		(2.69	)
Net asset value, end of period	$	38.38		$	74.75		$	53.65		$	51.64		$	50.91
Total Return		(24.98	%)		45.55	%		5.63	%		2.74	%		(8.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	85,087		$	78,070		$	42,397		$	76,018		$	12,077
Ratios to average net assets:
Net investment income (loss)		0.23	%		1.02	%		1.67	%		1.31	%		1.00	%
Total expensesb		1.29	%		1.32	%		1.32	%		1.23	%		1.22	%
Net expensesd		1.28	%		1.30	%		1.31	%		1.23	%		1.22	%
Portfolio turnover rate		1,938	%		1,130	%		1,182	%		1,468	%		2,490	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Total return does not reflect the impact of any applicable sales charges.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contract on a specified debt instrument on a daily basis. The Fund’s current benchmark is the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the most recently issued 30 Year U.S. Treasury Bond. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, the Inverse Government Long Bond Strategy Fund Investor Class returned 22.19%.

The Price Movement of the Long Treasury Bond was -21.49% for the period.

The return of a comparison index, the Bloomberg Barclays U.S. Long Treasury Index was -15.80%.

As prices of long-term Treasury bonds fell over the period, their yields rose, from 1.32% to 2.41%. This performance masked considerable volatility, as investors fearful of global economic fallout from the coronavirus outbreak and oil price instability early in the period rushed into safe havens and sent prices of U.S. Treasuries skyrocketing. In April 2020, the yield on the 30-year Treasury yield dipped to its period low of 1.17%. Yields gradually creeped back to end the year at their highest level since the pandemic, and on the strength of the economic recovery continued to rise until mid-March 2021, when the yield on the 30-year Treasury yield reached its period high of 2.45%. Investors shifted from Treasuries to higher-yielding corners of the market, and reacted to a substantial increase in Treasury supply, as the U.S. Government continued its emergency fiscal measures and stimulus spending. The market also has been absorbing expected increases in economic growth and inflation. The Treasury yield curve steepened significantly over the period, as short-term yields fell slightly and longer-term yields jumped.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the most efficient manner possible and to provide leverage and not for hedging purposes. Derivatives performed as expected.

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

138 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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 Ultra Short Duration Fund — Institutional Class	10.4%
Guggenheim Strategy Fund II	10.4%
Total	20.8%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 139

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	22.19%	(3.96%)	(8.13%)
A-Class Shares	21.95%	(4.19%)	(8.36%)
A-Class Shares with sales charge‡	16.17%	(5.12%)	(8.81%)
C-Class Shares	21.00%	(4.91%)	(9.04%)
C-Class Shares with CDSC§	20.00%	(4.91%)	(9.04%)
Bloomberg Barclays U.S. Long Treasury Index	(15.80%)	3.13%	6.35%
Price Movement of Long Treasury Bond**	(21.49%)	0.42%	3.45%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	22.18%	(4.12%)	(6.57%)
Bloomberg Barclays U.S. Long Treasury Index	(15.80%)	3.13%	5.15%
Price Movement of Long Treasury Bond**	(21.49%)	0.42%	2.44%

*	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 Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
**	Does not reflect any interest.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

140 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 20.8%
Guggenheim Ultra Short Duration Fund — Institutional Class1		528,512	$	5,263,977
Guggenheim Strategy Fund II1		210,588		5,260,486
Total Mutual Funds
(Cost $10,470,929)				10,524,463
	Face Amount
FEDERAL AGENCY NOTES†† - 35.0%
Federal Farm Credit Bank
0.14% (1 Month USD LIBOR + 0.03%, Rate Floor: 0.00%) due 12/29/212	$	3,500,000		3,501,621
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222		3,000,000		3,011,387
0.23% due 06/09/22		2,500,000		2,500,566
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		2,220,000		2,228,932
3.78% due 08/02/28		2,000,000		2,024,076
Farmer Mac
0.10% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 08/03/212		2,000,000		2,000,147
Freddie Mac
0.32% due 10/20/22		1,775,000		1,775,583
0.15% (U.S. Secured Overnight Financing Rate + 0.14%, Rate Floor: 0.00%) due 12/10/212		140,000		140,066
Fannie Mae
0.18% (U.S. Secured Overnight Financing Rate + 0.17%, Rate Floor: 0.00%) due 03/11/222		100,000		100,133
0.18% (U.S. Secured Overnight Financing Rate + 0.17%, Rate Floor: 0.00%) due 03/09/222		100,000		100,128
0.16% (U.S. Secured Overnight Financing Rate + 0.15%, Rate Floor: 0.00%) due 12/10/212		100,000		100,080
0.15% (U.S. Secured Overnight Financing Rate + 0.14%, Rate Floor: 0.00%) due 09/10/212		100,000		100,042
0.16% (U.S. Secured Overnight Financing Rate + 0.15%, Rate Floor: 0.00%) due 12/09/212		25,000		25,014
Federal Home Loan Bank
0.13% (U.S. Secured Overnight Financing Rate + 0.12%, Rate Floor: 0.00%) due 02/10/222		100,000		100,070
Total Federal Agency Notes
(Cost $17,686,873)				17,707,845

FEDERAL AGENCY DISCOUNT NOTES†† - 23.1%
Federal Home Loan Bank
0.01% due 05/14/213	7,000,000		6,999,941
0.01% due 04/0/213	700,000		699,995
0.01% due 04/06/213	4,000,000		3,999,997
Total Federal Agency Discount Notes
(Cost $11,699,933)			11,699,933
U.S. TREASURY BILLS†† - 2.0%
U.S. Treasury Bills
0.01% due 04/22/213,4	1,049,000		1,048,993
Total U.S. Treasury Bills
(Cost $1,048,991)			1,048,993
REPURCHASE AGREEMENTS†† - 87.2%
Individual Repurchase Agreements6
Mizuho Securities USA LLC issued 03/31/21 at (0.25)% due 04/01/21 (secured by a U.S. Treasury Bond, at a rate of 1.88% and maturing 02/15/51 as collateral, with a value of $25,760,635) to be repurchased at $25,255,349	25,255,525		25,255,525
Barclays Capital, Inc. issued 03/31/21 at (0.25)% due 04/01/21 (secured by a U.S. Treasury Bond, at a rate of 1.88% and maturing 02/15/51 as collateral, with a value of $13,138,492) to be repurchased at $12,880,786	12,880,875		12,880,875
Joint Repurchase Agreements5
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	3,220,978		3,220,978
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21	1,464,413		1,464,413
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21	1,336,506		1,336,506
Total Repurchase Agreements
(Cost $44,158,297)			44,158,297
Total Investments - 168.1%
(Cost $85,065,023)		$	85,139,531
U.S. Government Securities Sold Short†† - (78.0)%
U.S. Treasury Bonds
1.88% due 02/15/51	44,500,000		(39,500,703	)
Total U.S. Government Securities Sold Short
(Proceeds $41,970,260)		$	(39,500,703	)
Other Assets & Liabilities, net - 9.9%			4,994,190
Total Net Assets - 100.0%		$	50,633,018

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Sold Short†
U.S. Treasury Ultra Long Bond Futures Contracts		74		Jun 2021	$	13,470,313	$	328,417

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at March 31, 2021.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as short security collateral at March 31, 2021.
	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 March 31, 2021 (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
Mutual Funds	$	10,524,463	$	—	$	—	$	10,524,463
Federal Agency Notes		—		17,707,845		—		17,707,845
Federal Agency Discount Notes		—		11,699,933		—		11,699,933
U.S. Treasury Bills		—		1,048,993		—		1,048,993
Repurchase Agreements		—		44,158,297		—		44,158,297
Interest Rate Futures Contracts**		328,417		—		—		328,417
Total Assets	$	10,852,880	$	74,615,068	$	—	$	85,467,948

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Government Securities	$	—	$	39,500,703	$	—	$	39,500,703

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	3,812,960	$	1,300,000	$	—	$	—	$	147,526	$	5,260,486		210,588	$	71,786
Guggenheim Ultra Short Duration Fund — Institutional Class		3,399,177		1,800,001		—		—		64,799		5,263,977		528,512		44,498
	$	7,212,137	$	3,100,001	$	—	$	—	$	212,325	$	10,524,463			$	116,284

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $30,435,797)	$	30,456,771
Investments in affiliated issuers, at value (cost $10,470,929)		10,524,463
Repurchase agreements, at value (cost $44,158,297)		44,158,297
Receivables:
Fund shares sold		4,379,353
Securities sold		887,656
Interest		20,145
Variation margin on futures contracts		15,175
Dividends		10,298
Total assets		90,452,158
Liabilities:
Securities sold short, at value (proceeds $(41,970,260)		39,500,703
Payable for:
Interest payable on short sales		103,721
Management fees		65,568
Transfer agent and administrative fees		19,917
Fund shares redeemed		9,939
Portfolio accounting fees		7,404
Distribution and service fees		3,897
Trustees’ fees*		1,521
Miscellaneous		106,470
Total liabilities		39,819,140
Commitments and contingent liabilities (Note 12)		—
Net assets	$	50,633,018
Net assets consist of:
Paid in capital	$	307,532,554
Total distributable earnings (loss)		(256,899,536	)
Net assets	$	50,633,018
Investor Class:
Net assets	$	36,863,446
Capital shares outstanding		264,221
Net asset value per share	$	139.52
A-Class:
Net assets	$	4,798,043
Capital shares outstanding		36,039
Net asset value per share	$	133.13
Maximum offering price per share (Net asset value divided by 95.25%)	$	139.77
C-Class:
Net assets	$	1,499,691
Capital shares outstanding		13,152
Net asset value per share	$	114.03
H-Class:
Net assets	$	7,471,838
Capital shares outstanding		55,887
Net asset value per share	$	133.70

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

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	116,284
Interest		29,300
Total investment income		145,584
Expenses:
Management fees		462,376
Distribution and service fees:
A-Class		10,414
C-Class		18,438
H-Class		18,852
Transfer agent and administrative fees		143,411
Short interest expense		642,115
Portfolio accounting fees		51,382
Professional fees		20,938
Trustees’ fees*		9,684
Custodian fees		7,339
Miscellaneous		68,198
Total expenses		1,453,147
Less:
Expenses waived by Adviser		(9,762	)
Net expenses		1,443,385
Net investment loss		(1,297,801	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	30,271
Investments sold short		4,587,021
Futures contracts		2,288,042
Net realized gain		6,905,334
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(10,775	)
Investments in affiliated issuers		212,325
Investments sold short		4,045,660
Futures contracts		1,409,965
Net change in unrealized appreciation (depreciation)		5,657,175
Net realized and unrealized gain		12,562,509
Net increase in net assets resulting from operations	$	11,264,708

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

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,297,801	)	$	136,337
Net realized gain (loss) on investments		6,905,334			(14,164,556	)
Net change in unrealized appreciation (depreciation) on investments		5,657,175			(1,003,492	)
Net increase (decrease) in net assets resulting from operations		11,264,708			(15,031,711	)
Distributions to shareholders:
Investor Class		(56,720	)		—
A-Class		(14,821	)		—
C-Class		(6,967	)		—
H-Class		(44,328	)		—
Total distributions to shareholders		(122,836	)		—
Capital share transactions:
Proceeds from sale of shares
Investor Class		997,313,292			196,858,764
A-Class		916,083			1,089,420
C-Class		301,809			286,088
H-Class		319,883,148			268,283,102
Distributions reinvested
Investor Class		52,751			—
A-Class		13,927			—
C-Class		6,457			—
H-Class		44,310			—
Cost of shares redeemed
Investor Class		(990,204,987	)		(209,131,964	)
A-Class		(1,748,207	)		(5,068,402	)
C-Class		(1,576,934	)		(3,361,315	)
H-Class		(319,678,304	)		(270,810,021	)
Net increase (decrease) from capital share transactions		5,323,345			(21,854,328	)
Net increase (decrease) in net assets		16,465,217			(36,886,039	)
Net assets:
Beginning of year		34,167,801			71,053,840
End of year	$	50,633,018		$	34,167,801
Capital share activity:*
Shares sold
Investor Class		8,356,273			1,263,769
A-Class		7,562			7,642
C-Class		2,878			2,490
H-Class		2,875,315			1,761,507
Shares issued from reinvestment of distributions
Investor Class		440			—
A-Class		122			—
C-Class		66			—
H-Class		386			—
Shares redeemed
Investor Class		(8,275,612	)		(1,341,454	)
A-Class		(15,730	)		(35,469	)
C-Class		(15,918	)		(26,633	)
H-Class		(2,873,346	)		(1,768,085	)
Net increase (decrease) in shares		62,436			(136,233	)

* Capital share activity for the year ended March 31, 2020, has been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

146 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	114.58		$	165.45		$	173.19		$	180.08		$	171.34
Income (loss) from investment operations:
Net investment income (loss)a		(1.30	)		.60			(.65	)		(2.80	)		(4.40	)
Net gain (loss) on investments (realized and unrealized)		26.68			(51.47	)		(7.09	)		(4.09	)		13.14
Total from investment operations		25.38			(50.87	)		(7.74	)		(6.89	)		8.74
Less distributions from:
Net investment income		(.44	)		—			—			—			—
Total distributions		(.44	)		—			—			—			—
Net asset value, end of period	$	139.52		$	114.58		$	165.45		$	173.19		$	180.08
Total Return		22.19	%		(30.73	%)		(4.47	%)		(3.83	%)		5.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	36,863		$	20,983		$	43,149		$	78,110		$	84,123
Ratios to average net assets:
Net investment income (loss)		(2.46	%)		0.40	%		(0.37	%)		(1.63	%)		(2.59	%)
Total expensesb		2.75	%		2.91	%		4.12	%		3.71	%		3.38	%
Net expensesd,e		2.73	%		2.89	%		4.12	%		3.71	%		3.38	%
Portfolio turnover rate		2,159	%		864	%		603	%		908	%		1,436	%

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	109.61		$	158.62		$	166.49		$	173.55		$	165.55
Income (loss) from investment operations:
Net investment income (loss)a		(1.09	)		.20			(.95	)		(3.15	)		(4.70	)
Net gain (loss) on investments (realized and unrealized)		25.05			(49.21	)		(6.92	)		(3.91	)		12.70
Total from investment operations		23.96			(49.01	)		(7.87	)		(7.06	)		8.00
Less distributions from:
Net investment income		(.44	)		—			—			—			—
Total distributions		(.44	)		—			—			—			—
Net asset value, end of period	$	133.13		$	109.61		$	158.62		$	166.49		$	173.55
Total Returnc		21.95	%		(30.90	%)		(4.74	%)		(4.06	%)		4.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,798		$	4,832		$	11,407		$	14,455		$	18,678
Ratios to average net assets:
Net investment income (loss)		(2.59	%)		0.15	%		(0.57	%)		(1.90	%)		(2.85	%)
Total expensesb		2.97	%		3.17	%		4.38	%		3.97	%		3.67	%
Net expensesd,e		2.94	%		3.15	%		4.37	%		3.97	%		3.67	%
Portfolio turnover rate		2,159	%		864	%		603	%		908	%		1,436	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	94.64		$	138.00		$	145.93		$	153.27		$	147.30
Income (loss) from investment operations:
Net investment income (loss)a		(1.11	)		(.75	)		(2.15	)		(3.85	)		(5.25	)
Net gain (loss) on investments (realized and unrealized)		20.94			(42.61	)		(5.78	)		(3.49	)		11.22
Total from investment operations		19.83			(43.36	)		(7.93	)		(7.34	)		5.97
Less distributions from:
Net investment income		(.44	)		—			—			—			—
Total distributions		(.44	)		—			—			—			—
Net asset value, end of period	$	114.03		$	94.64		$	138.00		$	145.93		$	153.27
Total Returnc		21.00	%		(31.41	%)		(5.45	%)		(4.76	%)		4.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,500		$	2,472		$	6,937		$	18,296		$	23,343
Ratios to average net assets:
Net investment income (loss)		(3.32	%)		(0.59	%)		(1.44	%)		(2.63	%)		(3.59	%)
Total expensesb		3.70	%		3.93	%		5.14	%		4.71	%		4.41	%
Net expensesd,e		3.68	%		3.91	%		5.13	%		4.71	%		4.41	%
Portfolio turnover rate		2,159	%		864	%		603	%		908	%		1,436	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	109.85		$	159.05		$	166.92		$	174.14		$	165.60
Income (loss) from investment operations:
Net investment income (loss)a		(.98	)		.25			(1.00	)		(3.25	)		(4.60	)
Net gain (loss) on investments (realized and unrealized)		25.27			(49.45	)		(6.87	)		(3.97	)		13.14
Total from investment operations		24.29			(49.20	)		(7.87	)		(7.22	)		8.54
Less distributions from:
Net investment income		(.44	)		—			—			—			—
Total distributions		(.44	)		—			—			—			—
Net asset value, end of period	$	133.70		$	109.85		$	159.05		$	166.92		$	174.14
Total Return		22.18	%		(30.93	%)		(4.70	%)		(4.16	%)		5.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,472		$	5,881		$	9,561		$	4,858		$	43,784
Ratios to average net assets:
Net investment income (loss)		(2.62	%)		0.16	%		(0.58	%)		(1.94	%)		(2.80	%)
Total expensesb		2.94	%		3.30	%		4.37	%		4.00	%		3.60	%
Net expensesd,e		2.92	%		3.28	%		4.36	%		4.00	%		3.60	%
Portfolio turnover rate		2,159	%		872	%		603	%		908	%		1,436	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Total return does not reflect the impact of any applicable sales charges.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years presented were as follows:

	03/31/21	03/31/20	03/31/19	03/29/18	03/31/17
Investor Class	1.47%	1.50%	1.50%	1.43%	1.43%
A-Class	1.73%	1.75%	1.75%	1.68%	1.63%
C-Class	2.48%	2.50%	2.50%	2.43%	2.43%
H-Class	1.73%	1.75%	1.75%	1.68%	1.68%

^f Reverse share split — Per share amounts for the periods presented through March 31, 2020 have been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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.

For the one-year period ended March 31, 2021, High Yield Strategy Fund H-Class returned 12.87%. For comparison, the Bloomberg Barclays U.S. Corporate High Yield Index returned 23.72% for the same period.

The Fund primarily invests in credit default swaps to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A buyer of credit default swaps is buying credit protection or mitigating credit risk. A seller of credit default swaps is selling credit protection or assuming credit risk. The Fund will normally be a seller of credit protection (assuming credit risk) as it seeks to gain exposure to the high yield bond market. In addition, the Fund may invest in bond futures for the purpose of managing duration risk. For cash management purposes, the Fund may invest in other fixed income securities and money market instruments.

The economy in 2020 experienced an abrupt and unprecedented decline in output, corporate leverage spiked, and default volume and negative rating migration were the worst in over a decade. In contrast, equity indexes touched new highs, corporate bond yields set record lows, and primary credit issuance saw record volumes. High-yield corporate bond spreads tightened over the period as investors gained confidence that the economy will eventually make a full recovery, owing in part to the vast amount of policy support that continues to buttress financial conditions.

It is hard to estimate the volume of defaults, restructurings and personal bankruptcies that global policy support helped prevent. Nevertheless, there was still $150 billion in total U.S. defaulted corporate debt, mostly in energy, but also in cable/satellite, retail, and services. Given that the peak-to-trough decline in U.S. economic activity was 3.8 times that of the last financial crisis, defaults could have been more than double were it not for the tidal wave of government liquidity that turned this shock into a V-shaped recovery.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

150 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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 III	10.9%
Guggenheim Ultra Short Duration Fund — Institutional Class	8.7%
Guggenheim Strategy Fund II	5.1%
Total	24.7%
“ Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 151

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A- Class Shares	12.81%	4.71%	5.62%
A-Class Shares with sales charge‡	7.47%	3.70%	5.11%
C-Class Shares	11.97%	3.94%	4.82%
C-Class Shares with CDSC§	10.97%	3.94%	4.82%
H-Class Shares	12.87%	4.71%	5.63%
Bloomberg Barclays U.S. Corporate High Yield Index	23.72%	8.06%	6.48%

*	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 is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

152 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.7%
Guggenheim Strategy Fund III1		112,348	$	2,824,433
Guggenheim Ultra Short Duration Fund — Institutional Class1		227,842		2,269,308
Guggenheim Strategy Fund II1		53,173		1,328,255
Total Mutual Funds
(Cost $6,316,655)				6,421,996
	Face Amount
FEDERAL AGENCY NOTES†† - 49.3%
Federal Farm Credit Bank
0.23% due 06/09/22	$	3,200,000		3,200,724
0.31% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		2,500,000		2,505,742
0.14% (1 Month USD LIBOR + 0.03%, Rate Floor: 0.00%) due 12/29/212		2,000,000		2,000,926
0.28% (U.S. Prime Rate - 2.97%, Rate Floor: 0.00%) due 05/27/222		620,000		620,802
Fannie Mae
2.50% due 04/13/21		3,487,000		3,489,856
Farmer Mac
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 11/22/212		1,000,000		1,000,018
Total Federal Agency Notes
(Cost $12,812,576)				12,818,068

U.S. TREASURY BILLS†† - 5.2%
U.S. Treasury Bills
0.01% due 04/22/213,4	1,346,000		1,345,990
Total U.S. Treasury Bills
(Cost $1,345,988)			1,345,990
REPURCHASE AGREEMENTS††,5 - 3.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/216	445,308		445,308
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/216	202,459		202,459
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/216	184,775		184,775
Total Repurchase Agreements
(Cost $832,542)			832,542
Total Investments - 82.4%
(Cost $21,307,761)		$	21,418,596
Other Assets & Liabilities, net - 17.6%			4,573,657
Total Net Assets - 100.0%		$	25,992,253

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		161		Jun 2021	$	19,877,211	$	(168,134	)

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date	Notional Amount		Value		Upfront Premiums Paid		Unrealized Appreciation**
Goldman Sachs International	ICE	CDX.NA.HY.36.V1		5.00	%	Quarterly	06/20/26		$	13,800,000	$	1,234,072	$	1,167,028	$	67,044
Barclays Bank plc	ICE	CDX.NA.HY.36.V1		5.00	%	Quarterly	06/20/26			6,050,000		541,024		530,186		10,838
											$	1,775,096	$	1,697,214	$	77,882

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
HIGH YIELD STRATEGY FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Credit Index Swap Agreements††
Goldman Sachs International	iShares iBoxx $ High Yield Corporate Bond ETF	0.43% (1 Week USD LIBOR + 0.35%)	At Maturity		04/29/21		9,924	$	865,174	$	2,084
BNP Paribas	iShares iBoxx $ High Yield Corporate Bond ETF	0.46% (1 Month USD LIBOR + 0.35%)	At Maturity		04/08/21		32,659		2,847,254		(12,848	)
BNP Paribas	SPDR Bloomberg Barclays High Yield Bond ETF	0.51% (1 Month USD LIBOR + 0.40%)	At Maturity		04/08/21		25,578		2,782,889		(13,773	)
								$	6,495,317	$	(24,537	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures and credit default swap collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as credit index swap collateral at March 31, 2021.
	CDX.NA.HY.36.V1 — Credit Default Swap North American High Yield Series 36 Index Version 1
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
Mutual Funds	$	6,421,996	$	—	$	—	$	6,421,996
Federal Agency Notes		—		12,818,068		—		12,818,068
U.S. Treasury Bills		—		1,345,990		—		1,345,990
Repurchase Agreements		—		832,542		—		832,542
Credit Default Swap Agreements**		—		77,882		—		77,882
Credit Index Swap Agreements**		—		2,084		—		2,084
Total Assets	$	6,421,996	$	15,076,566	$	—	$	21,498,562

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	168,134	$	—	$	—	$	168,134
Credit Index Swap Agreements**		—		26,621		—		26,621
Total Liabilities	$	168,134	$	26,621	$	—	$	194,755

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
HIGH YIELD STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	692,308	$	3,800,000	$	(3,225,000	)	$	4,953	$	55,994	$	1,328,255		53,173	$	26,297
Guggenheim Strategy Fund III		2,704,221		—		—			—		120,212		2,824,433		112,348		48,912
Guggenheim Ultra Short Duration Fund — Institutional Class		1,907,641		6,800,000		(6,500,000	)		4,772		56,895		2,269,308		227,842		37,990
	$	5,304,170	$	10,600,000	$	(9,725,000	)	$	9,725	$	233,101	$	6,421,996			$	113,199

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $14,158,564)	$	14,164,058
Investments in affiliated issuers, at value (cost $6,316,655)		6,421,996
Repurchase agreements, at value (cost $832,542)		832,542
Segregated cash with broker		30,212
Unamortized upfront premiums paid on credit default swap agreements		1,697,214
Unrealized appreciation on OTC swap agreements		2,084
Receivables:
Fund shares sold		4,369,427
Variation margin on credit default swap agreements		75,044
Interest		45,138
Protection fees on credit default swap agreements		22,569
Dividends		7,410
Total assets		27,667,694
Liabilities:
Segregated cash due to broker		1,186,515
Unrealized depreciation on OTC swap agreements		26,621
Payable for:
Securities purchased		321,430
Swap settlement		40,130
Fund shares redeemed		22,126
Management fees		17,345
Variation margin on futures contracts		13,254
Distribution and service fees		7,340
Transfer agent and administrative fees		6,409
Portfolio accounting fees		2,383
Trustees’ fees*		449
Miscellaneous		31,439
Total liabilities		1,675,441
Commitments and contingent liabilities (Note 12)		—
Net assets	$	25,992,253
Net assets consist of:
Paid in capital	$	35,811,733
Total distributable earnings (loss)		(9,819,480	)
Net assets	$	25,992,253
A-Class:
Net assets	$	4,020,512
Capital shares outstanding		32,795
Net asset value per share	$	122.60
Maximum offering price per share (Net asset value divided by 95.25%)	$	128.71
C-Class:
Net assets	$	2,136,439
Capital shares outstanding		20,307
Net asset value per share	$	105.21
H-Class:
Net assets	$	19,835,302
Capital shares outstanding		161,906
Net asset value per share	$	122.51

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

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

HIGH YIELD STRATEGY FUND

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	113,199
Interest		44,570
Total investment income		157,769
Expenses:
Management fees		327,084
Distribution and service fees:
A-Class		10,991
C-Class		20,464
H-Class		92,921
Transfer agent and administrative fees		122,626
Portfolio accounting fees		43,618
Registration fees		39,297
Professional fees		22,185
Trustees’ fees*		9,544
Custodian fees		6,414
Miscellaneous		22,292
Total expenses		717,436
Less:
Expenses waived by Adviser		(8,248	)
Net expenses		709,188
Net investment loss		(551,419	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	2,350
Investments in affiliated issuers		9,725
Swap agreements		(559,812	)
Futures contracts		274,116
Net realized loss		(273,621	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		9,655
Investments in affiliated issuers		233,101
Swap agreements		438,167
Futures contracts		(470,106	)
Net change in unrealized appreciation (depreciation)		210,817
Net realized and unrealized loss		(62,804	)
Net decrease in net assets resulting from operations	$	(614,223	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 157

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(551,419	)	$	493,714
Net realized gain (loss) on investments		(273,621	)		1,518,599
Net change in unrealized appreciation (depreciation) on investments		210,817			(1,798,543	)
Net increase (decrease) in net assets resulting from operations		(614,223	)		213,770
Distributions to shareholders:
A-Class		—			(196,039	)
C-Class		—			(45,921	)
H-Class		—			(3,642,315	)
Total distributions to shareholders		—			(3,884,275	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,259,400			6,892,359
C-Class		2,018,920			1,043,362
H-Class		378,213,977			285,721,192
Distributions reinvested
A-Class		—			182,416
C-Class		—			40,065
H-Class		—			3,613,386
Cost of shares redeemed
A-Class		(1,703,972	)		(10,370,325	)
C-Class		(992,031	)		(1,586,654	)
H-Class		(380,114,068	)		(364,232,406	)
Net decrease from capital share transactions		(1,317,774	)		(78,696,605	)
Net decrease in net assets		(1,931,997	)		(82,367,110	)
Net assets:
Beginning of year		27,924,250			110,291,360
End of year	$	25,992,253		$	27,924,250
Capital share activity:*
Shares sold
A-Class		11,120			56,141
C-Class		21,128			9,667
H-Class		3,287,792			2,315,105
Shares issued from reinvestment of distributions
A-Class		—			1,496
C-Class		—			379
H-Class		—			29,667
Shares redeemed
A-Class		(14,515	)		(84,787	)
C-Class		(10,037	)		(14,843	)
H-Class		(3,338,954	)		(2,972,658	)
Net decrease in shares		(43,466	)		(659,833	)

* Capital share activity for the year ended March 31, 2020, has been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

158 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	108.68		$	120.48		$	116.32		$	123.71		$	116.62
Income (loss) from investment operations:
Net investment income (loss)a		(.55	)		.70			.70			(.40	)		(1.00	)
Net gain (loss) on investments (realized and unrealized)		14.47	e		(7.05	)		7.41			3.11			10.44
Total from investment operations		13.92			(6.35	)		(8.11	)		2.71			9.44
Less distributions from:
Net investment income		—			(5.45	)		(3.95	)		(8.30	)		(2.35	)
Net realized gains		—			—			—			(1.80	)		—
Total distributions		—			(5.45	)		(3.95	)		(10.10	)		(2.35	)
Net asset value, end of period	$	122.60		$	108.68		$	120.48		$	116.32		$	123.71
Total Returnb		12.81	%		(5.76	%)		7.18	%		2.08	%		8.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,021		$	3,933		$	7,631		$	8,427		$	20,290
Ratios to average net assets:
Net investment income (loss)		(1.21	%)		0.58	%		0.59	%		(0.31	%)		(0.85	%)
Total expensesc		1.60	%		1.63	%		1.61	%		1.52	%		1.51	%
Net expensesd		1.57	%		1.61	%		1.60	%		1.52	%		1.51	%
Portfolio turnover rate		134	%		—			21	%		422	%		97	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	93.96		$	105.62		$	103.17		$	111.65		$	106.26
Income (loss) from investment operations:
Net investment income (loss)a		(.81	)		(.20	)		(.20	)		(1.10	)		(1.80	)
Net gain (loss) on investments (realized and unrealized)		12.06	e		(6.01	)		6.60			2.72			9.54
Total from investment operations		11.25			(6.21	)		6.40			1.62			7.74
Less distributions from:
Net investment income		—			(5.45	)		(3.95	)		(8.30	)		(2.35	)
Net realized gains		—			—			—			(1.80	)		—
Total distributions		—			(5.45	)		(3.95	)		(10.10	)		(2.35	)
Net asset value, end of period	$	105.21		$	93.96		$	105.62		$	103.17		$	111.65
Total Returnb		11.97	%		(6.45	%)		6.39	%		1.35	%		7.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,136		$	866		$	1,480		$	3,994		$	4,533
Ratios to average net assets:
Net investment income (loss)		(1.96	%)		(0.20	%)		(0.21	%)		(1.00	%)		(1.65	%)
Total expensesc		2.34	%		2.38	%		2.35	%		2.27	%		2.26	%
Net expensesd		2.32	%		2.36	%		2.35	%		2.27	%		2.26	%
Portfolio turnover rate		134	%		—			21	%		422	%		97	%

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020f			Year Ended March 31, 2019f			Year Ended March 29, 2018f			Year Ended March 31, 2017f
Per Share Data
Net asset value, beginning of period	$	108.54		$	120.32		$	116.17		$	123.58		$	116.56
Income (loss) from investment operations:
Net investment income (loss)a		(.47	)		.75			.60			(.50	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		14.44	e		(7.08	)		7.50			3.19			10.27
Total from investment operations		13.97			(6.33	)		8.10			2.69			9.37
Less distributions from:
Net investment income		—			(5.45	)		(3.95	)		(8.30	)		(2.35	)
Net realized gains		—			—			—			(1.80	)		—
Total distributions		—			(5.45	)		(3.95	)		(10.10	)		(2.35	)
Net asset value, end of period	$	122.51		$	108.54		$	120.32		$	116.17		$	123.58
Total Return		12.87	%		(5.73	%)		7.15	%		2.08	%		8.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,835		$	23,125		$	101,180		$	23,860		$	435,334
Ratios to average net assets:
Net investment income (loss)		(1.23	%)		0.59	%		0.49	%		(0.41	%)		(0.74	%)
Total expensesc		1.61	%		1.63	%		1.60	%		1.52	%		1.51	%
Net expensesd		1.59	%		1.61	%		1.60	%		1.52	%		1.51	%
Portfolio turnover rate		134	%		—			21	%		422	%		97	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
f	Reverse share split — Per share amounts for the periods presented through March 31, 2020 have been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

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.

For the one-year period ended March 31, 2021, Inverse High Yield Strategy Fund H-Class returned -13.58%. For comparison, the Bloomberg Barclays U.S. Corporate High Yield Index returned 23.72% for the same period.

The economy in 2020 experienced an abrupt and unprecedented decline in output, corporate leverage spiked, and default volume and negative rating migration were the worst in over a decade. In contrast, equity indexes touched new highs, corporate bond yields set record lows, and primary credit issuance saw record volumes. High-yield corporate bond spreads tightened over the period as investors gained confidence that the economy will eventually make a full recovery, owing in part to the vast amount of policy support that continues to buttress financial conditions.

It is hard to estimate the volume of defaults, restructurings and personal bankruptcies that global policy support helped prevent. Nevertheless, there was still $150 billion in total U.S. defaulted corporate debt, mostly in energy, but also in cable/satellite, retail, and services. Given that the peak-to-trough decline in U.S. economic activity was 3.8 times that of the last financial crisis, defaults could have been more than double were it not for the tidal wave of government liquidity that turned this shock into a V-shaped recovery.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the most efficient manner possible and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 161

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	9.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	9.2%
Total	18.4%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	(12.88%)	(5.50%)	(8.26%)
A-Class Shares with sales charge‡	(17.01%)	(6.41%)	(8.70%)
C-Class Shares	(14.23%)	(6.42%)	(8.98%)
C-Class Shares with CDSC§	(15.02%)	(6.42%)	(8.98%)
H-Class Shares	(13.58%)	(5.49%)	(8.14%)
Bloomberg Barclays U.S. Corporate High Yield Index	23.72%	8.06%	6.48%

*	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 is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

162 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 18.4%
Guggenheim Strategy Fund II1		35,046	$	875,453
Guggenheim Ultra Short Duration Fund — Institutional Class1		87,773		874,218
Total Mutual Funds
(Cost $1,747,665)				1,749,671
	Face Amount
FEDERAL AGENCY NOTES†† - 2.1%
Federal Farm Credit Bank
0.31% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222	$	200,000		200,459
Total Federal Agency Notes
(Cost $200,000)				200,459
U.S. TREASURY BILLS†† - 0.3%
U.S. Treasury Bills
0.01% due 04/22/213,4		25,000		25,000
Total U.S. Treasury Bills
(Cost $25,000)				25,000

REPURCHASE AGREEMENTS††,5 - 76.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	3,867,732		3,867,732
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21	1,758,459		1,758,459
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21	1,604,868		1,604,868
Total Repurchase Agreements
(Cost $7,231,059)			7,231,059
Total Investments - 97.0%
(Cost $9,203,724)		$	9,206,189
Other Assets & Liabilities, net - 3.0%			287,663
Total Net Assets - 100.0%		$	9,493,852

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Sold Short†
U.S. Treasury 5 Year Note Futures Contracts		71		Jun 2021	$	8,765,727	$	32,177

Centrally Cleared Credit Default Swap Agreements Protection Purchased††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date	Notional Amount		Value			Upfront Premiums Received			Unrealized Depreciation**
Barclays Bank plc	ICE	CDX.NA.HY.36.V1		5.00	%	Quarterly	06/20/26		$	8,800,000	$	(786,944	)	$	(753,761	)	$	(33,183	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
	CDX.NA.HY.36.V1 — Credit Default Swap North American High Yield Series 36 Index Version 1
	ICE — Intercontinental Exchange
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
INVERSE HIGH YIELD STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	1,749,671	$	—	$	—	$	1,749,671
Federal Agency Notes		—		200,459		—		200,459
U.S. Treasury Bills		—		25,000		—		25,000
Repurchase Agreements		—		7,231,059		—		7,231,059
Interest Rate Futures Contracts**		32,177		—		—		32,177
Total Assets	$	1,781,848	$	7,456,518	$	—	$	9,238,366

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Credit Default Swap Agreements**	$	—	$	33,183	$	—	$	33,183

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,537,959	$	3,110,000	$	(3,805,000	)	$	(17,699	)	$	50,193	$	875,453		35,046	$	9,436
Guggenheim Ultra Short Duration Fund — Institutional Class		1,550,914		2,760,000		(3,455,000	)		(13,849	)		32,153		874,218		87,773		8,134
	$	3,088,873	$	5,870,000	$	(7,260,000	)	$	(31,548	)	$	82,346	$	1,749,671			$	17,570

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $225,000)	$	225,459
Investments in affiliated issuers, at value (cost $1,747,665)		1,749,671
Repurchase agreements, at value (cost $7,231,059)		7,231,059
Segregated cash with broker		1,362,685
Receivables:
Variation margin on futures contracts		7,311
Dividends		1,521
Fund shares sold		341
Interest		152
Total assets		10,578,199
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		753,761
Payable for:
Fund shares redeemed		236,584
Variation margin on credit default swap agreements		40,335
Swap settlement		17,857
Protection fees on credit default swap agreements		12,500
Management fees		6,219
Transfer agent and administrative fees		2,285
Distribution and service fees		2,248
Portfolio accounting fees		850
Trustees’ fees*		165
Miscellaneous		11,543
Total liabilities		1,084,347
Commitments and contingent liabilities (Note 12)		—
Net assets	$	9,493,852
Net assets consist of:
Paid in capital	$	19,896,738
Total distributable earnings (loss)		(10,402,886	)
Net assets	$	9,493,852
A-Class:
Net assets	$	5,612,112
Capital shares outstanding		111,896
Net asset value per share	$	50.15
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.65
C-Class:
Net assets	$	162,259
Capital shares outstanding		3,627
Net asset value per share	$	44.74
H-Class:
Net assets	$	3,719,481
Capital shares outstanding		72,951
Net asset value per share	$	50.99

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	17,570
Interest		4,267
Total investment income		21,837
Expenses:
Management fees		49,031
Distribution and service fees:
A-Class		2,844
C-Class		3,017
H-Class		12,745
Transfer agent and administrative fees		19,220
Portfolio accounting fees		6,538
Registration fees		6,083
Professional fees		4,978
Trustees’ fees*		1,776
Custodian fees		1,149
Miscellaneous		97
Total expenses		107,478
Less:
Expenses waived by Adviser		(1,666	)
Net expenses		105,812
Net investment loss		(83,975	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		461
Investments in affiliated issuers		(31,548	)
Swap agreements		(857,303	)
Futures contracts		(16,355	)
Net realized loss		(904,745	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		204
Investments in affiliated issuers		82,346
Swap agreements		(188,678	)
Futures contracts		67,789
Net change in unrealized appreciation (depreciation)		(38,339	)
Net realized and unrealized loss		(943,084	)
Net decrease in net assets resulting from operations	$	(1,027,059	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 165

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(83,975	)	$	6,901
Net realized gain (loss) on investments		(904,745	)		463,322
Net change in unrealized appreciation (depreciation) on investments		(38,339	)		118,038
Net increase (decrease) in net assets resulting from operations		(1,027,059	)		588,261
Distributions to shareholders:
A-Class		(5,744	)		—
C-Class		(21,683	)		—
H-Class		(45,200	)		—
Total distributions to shareholders		(72,627	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		74,155,944			43,047,779
C-Class		14,384			40,360
H-Class		245,184,512			120,594,884
Distributions reinvested
A-Class		5,708			—
C-Class		21,683			—
H-Class		44,957			—
Cost of shares redeemed
A-Class		(68,655,970	)		(43,306,242	)
C-Class		(164,080	)		(411,911	)
H-Class		(254,110,821	)		(112,151,071	)
Net increase (decrease) from capital share transactions		(3,503,683	)		7,813,799
Net increase (decrease) in net assets		(4,603,369	)		8,402,060
Net assets:
Beginning of year		14,097,221			5,695,161
End of year	$	9,493,852		$	14,097,221
Capital share activity:
Shares sold
A-Class		1,387,615			731,426
C-Class		283			724
H-Class		4,244,689			1,978,712
Shares issued from reinvestment of distributions
A-Class		114			—
C-Class		480			—
H-Class		875			—
Shares redeemed
A-Class		(1,279,966	)		(731,958	)
C-Class		(3,521	)		(7,581	)
H-Class		(4,385,063	)		(1,841,697	)
Net increase (decrease) in shares		(34,494	)		129,626

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	62.01		$	60.47		$	64.28		$	65.78		$	71.69
Income (loss) from investment operations:
Net investment income (loss)a		(.68	)		.24			.42			(.07	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		(7.31	)		1.30			(4.23	)		(1.43	)		(5.40	)
Total from investment operations		(7.99	)		1.54			(3.81	)		(1.50	)		(5.91	)
Less distributions from:
Net investment income		(3.87	)		—			—			—			—
Total distributions		(3.87	)		—			—			—			—
Net asset value, end of period	$	50.15		$	62.01		$	60.47		$	64.28		$	65.78
Total Returnb		(12.88	%)		2.56	%		(5.93	%)		(2.28	%)		(8.26	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,612		$	256		$	282		$	8,746		$	915
Ratios to average net assets:
Net investment income (loss)		(1.28	%)		0.40	%		0.66	%		(0.12	%)		(0.74	%)
Total expensesc		1.56	%		1.62	%		1.60	%		1.52	%		1.52	%
Net expensesd		1.54	%		1.61	%		1.60	%		1.52	%		1.52	%
Portfolio turnover rate		438	%		254	%		—			41	%		480	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	56.62		$	55.76		$	59.73		$	61.63		$	67.67
Income (loss) from investment operations:
Net investment income (loss)a		(.90	)		(.05	)		.01			(.39	)		(.85	)
Net gain (loss) on investments (realized and unrealized)		(7.11	)		.91			(3.98	)		(1.51	)		(5.19	)
Total from investment operations		(8.01	)		.86			(3.97	)		(1.90	)		(6.04	)
Less distributions from:
Net investment income		(3.87	)		—			—			—			—
Total distributions		(3.87	)		—			—			—			—
Net asset value, end of period	$	44.74		$	56.62		$	55.76		$	59.73		$	61.63
Total Returnb		(14.23	%)		1.54	%		(6.65	%)		(3.08	%)		(8.97	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	162		$	362		$	738		$	769		$	1,042
Ratios to average net assets:
Net investment income (loss)		(1.78	%)		(0.09	%)		0.02	%		(0.65	%)		(1.32	%)
Total expensesc		2.36	%		2.37	%		2.36	%		2.27	%		2.27	%
Net expensesd		2.31	%		2.34	%		2.35	%		2.27	%		2.27	%
Portfolio turnover rate		438	%		254	%		—			41	%		480	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 167

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	63.45		$	61.97		$	65.89		$	67.70		$	72.70
Income (loss) from investment operations:
Net investment income (loss)a		(.74	)		.06			.41			(.12	)		(.74	)
Net gain (loss) on investments (realized and unrealized)		(7.85	)		1.42			(4.33	)		(1.69	)		(4.26	)
Total from investment operations		(8.59	)		1.48			(3.92	)		(1.81	)		(5.00	)
Less distributions from:
Net investment income		(3.87	)		—			—			—			—
Total distributions		(3.87	)		—			—			—			—
Net asset value, end of period	$	50.99		$	63.45		$	61.97		$	65.89		$	67.70
Total Return		(13.58	%)		2.39	%		(5.95	%)		(2.67	%)		(6.90	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,719		$	13,479		$	4,675		$	8,755		$	14,855
Ratios to average net assets:
Net investment income (loss)		(1.26	%)		0.09	%		0.63	%		(0.18	%)		(1.06	%)
Total expensesc		1.62	%		1.64	%		1.61	%		1.52	%		1.52	%
Net expensesd		1.60	%		1.62	%		1.59	%		1.52	%		1.52	%
Portfolio turnover rate		438	%		254	%		—			41	%		480	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

For the year ended March 31, 2021, U.S. Government Money Market Fund returned 0.05%.

The U.S. Federal Reserve (“Fed”) target range for interest rates remained in the 0.00% to 0.25% range over the past year. It is not expected that the Fed will increase interest rates over the coming year.

The U.S. economy was hit hard due to the COVID-19 pandemic, with 2nd quarter GDP falling 31%. Most economic indicators improved over the second half of the year. However, most indicators remain below early 2020 levels. The combination of vaccinations, multiple rounds of government stimulus, and a gradual reopening has helped improve economic conditions in recent months. The Fed has indicated a willingness to tolerate higher inflation after a decade of undershooting their 2% target level. This new policy is described as “average inflation targeting.” The most recent dot plot in March 2021 indicated that no members of the Fed expected to raise interest rates in 2021 and only four members expect an increase in interest rates by the end of 2022.

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

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Holdings Diversification (Market Exposure as % of Net Assets)

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

FADN – Federal Agency Discount Note
FAN – Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

THE RYDEX FUNDS ANNUAL REPORT | 169

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	Since Inception (06/18/12)
U.S. Government Money Market Fund	0.05%	0.47%	0.27%

* 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.

170 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 49.7%
Farmer Mac
0.15% (U.S. Prime Rate - 3.10%, Rate Floor: 0.00%) due 01/07/221	$	29,000,000	$	29,000,000
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 11/22/211		25,000,000		25,000,000
0.07% (3 Month USD LIBOR - 0.13%) due 08/13/211		17,525,000		17,523,101
0.10% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 08/03/211		15,000,000		15,000,000
0.14% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 10/06/211		14,160,000		14,160,822
Federal Farm Credit Bank
0.06% due 02/10/22		10,000,000		9,998,062
0.28% (U.S. Prime Rate - 2.98%, Rate Floor: 0.00%) due 05/10/211		9,500,000		9,500,598
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 05/28/211		9,185,000		9,185,313
0.17% (U.S. Prime Rate - 3.08%, Rate Floor: 0.00%) due 06/29/211		6,000,000		5,999,558
0.17% due 02/17/22		5,000,000		5,000,602
0.14% due 01/05/22		1,965,000		1,965,010
0.15% (1 Month USD LIBOR + 0.03%, Rate Floor: 0.00%) due 11/02/211		1,900,000		1,900,492
2.54% due 04/05/21		1,500,000		1,500,395
0.19% (3 Month USD LIBOR, Rate Floor: 0.00%) due 11/16/211		835,000		835,602
0.19% (1 Month USD LIBOR + 0.08%, Rate Floor: 0.00%) due 07/26/211		785,000		785,253
0.38% (1 Month USD LIBOR + 0.27%, Rate Floor: 0.00%) due 05/25/211		145,000		145,065
Federal Home Loan Bank
0.05% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 06/02/211		10,475,000		10,475,152
1.88% due 07/07/21		5,515,000		5,541,124
0.09% (3 Month USD LIBOR - 0.10%, Rate Floor: 0.00%) due 09/13/211		2,135,000		2,135,015
0.10% (3 Month USD LIBOR - 0.08%, Rate Floor: 0.00%) due 08/24/211		930,000		930,070
3.00% due 10/12/21		765,000		776,790
Fannie Mae
1.88% due 04/05/22		2,281,000		2,321,539
1.25% due 08/17/21		1,100,000		1,104,804
2.50% due 04/13/21		1,446,000		1,447,146
Freddie Mac
2.38% due 01/13/22		1,259,000		1,281,273
1.76% due 08/09/21		100,000		100,593
Total Federal Agency Notes
(Cost $173,613,379)				173,613,379
U.S. TREASURY BILLS†† - 29.6%
U.S. Treasury Bills
0.09% due 04/29/212		47,000,000		46,996,527
0.01% due 05/06/212		20,000,000		19,999,767
0.03% due 04/01/212		17,000,000		17,000,000
0.09% due 04/01/212		2,200,000		2,200,000
U.S. Cash Management Bill
0.05% due 07/06/212		17,000,000		16,997,711
Total U.S. Treasury Bills
(Cost $103,194,005)				103,194,005
FEDERAL AGENCY DISCOUNT NOTES†† - 4.8%
Federal Home Loan Bank
0.01% due 04/28/212		15,000,000		14,999,887
0.01% due 05/14/212		1,600,000		1,599,981
Total Federal Agency Discount Notes
(Cost $16,599,868)				16,599,868
REPURCHASE AGREEMENTS††,3 - 17.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21		32,123,102		32,123,102
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		14,604,723		14,604,723
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		13,329,088		13,329,088
Total Repurchase Agreements
(Cost $60,056,913)				60,056,913
Total Investments - 101.3%
(Cost $353,464,165)			$	353,464,165
Other Assets & Liabilities, net - (1.3)%				(4,493,088	)
Total Net Assets - 100.0%			$	348,971,077

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 171

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
U.S. GOVERNMENT MONEY MARKET FUND

††	Value determined based on Level 2 inputs — See Note 4.
1	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
2	Rate indicated is the effective yield at the time of purchase.
3	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 March 31, 2021 (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 Notes	$	—	$	173,613,379	$	—	$	173,613,379
U.S. Treasury Bills		—		103,194,005		—		103,194,005
Federal Agency Discount Notes		—		16,599,868		—		16,599,868
Repurchase Agreements		—		60,056,913		—		60,056,913
Total Assets	$	—	$	353,464,165	$	—	$	353,464,165

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $293,407,252)	$	293,407,252
Repurchase agreements, at value (cost $60,056,913)		60,056,913
Receivables:
Fund shares sold		30,372,696
Interest		128,548
Total assets		383,965,409
Liabilities:
Overdraft due to custodian bank		331
Payable for:
Fund shares redeemed		34,622,805
Trustees’ fees*		5,483
Miscellaneous		365,713
Total liabilities		34,994,332
Commitments and contingent liabilities (Note 12)		—
Net assets	$	348,971,077
Net assets consist of:
Paid in capital	$	348,966,514
Total distributable earnings (loss)		4,563
Net assets	$	348,971,077
Capital shares outstanding		348,945,598
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Interest	$	469,979
Total investment income		469,979
Expenses:
Management fees		1,515,037
Transfer agent and administrative fees		706,635
Registration fees		289,827
Portfolio accounting fees		289,789
Professional fees		170,447
Trustees’ fees*		81,211
Custodian fees		45,624
Miscellaneous		57,969
Total expenses		3,156,539
Less:
Expenses reimbursed by Adviser		(948,520	)
Expenses waived by Adviser		(1,738,150	)
Total waived/reimbursed expenses		(2,686,670	)
Net expenses		469,869
Net investment income		110
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,498
Net realized gain		4,498
Net increase in net assets resulting from operations	$	4,608

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 173

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	110		$	4,103,787
Net realized gain on investments		4,498			55,390
Net change in unrealized appreciation (depreciation) on investments		—			—
Net increase in net assets resulting from operations		4,608			4,159,177
Distributions to shareholders		(150,937	)		(4,103,774	)
Capital share transactions:
Proceeds from sale of shares		6,163,255,356			5,994,438,512
Distributions reinvested		150,049			4,076,467
Cost of shares redeemed		(6,205,079,456	)		(6,020,978,588	)
Net decrease from capital share transactions		(41,674,051	)		(22,463,609	)
Net decrease in net assets		(41,820,380	)		(22,408,206	)
Net assets:
Beginning of year		390,791,457			413,199,663
End of year	$	348,971,077		$	390,791,457
Capital share activity:
Shares sold		6,163,255,356			5,994,438,513
Shares issued from reinvestment of distributions		150,020			4,076,837
Shares redeemed		(6,205,079,456	)		(6,020,978,588	)
Net decrease in shares		(41,674,080	)		(22,463,238	)

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

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGHLIGHTS

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

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)a		—	b		.01			.01			—	b		—	b
Net gain (loss) on investments (realized and unrealized)		—	b		—	b		—	b		—	b		—	b
Total from investment operations		—	b		.01			.01			—	b		—	b
Less distributions from:
Net investment income		—			(.01	)		(.01	)		(—	)b		(—	)b
Net realized gains		—			—			—			—			(—	)b
Total distributions		—			(.01	)		(.01	)		(—	)b		(—	)b
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	0.99
Total Return		0.05	%		0.99	%		1.10	%		0.22	%		0.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	348,971		$	390,791		$	413,200		$	544,528		$	627,514
Ratios to average net assets:
Net investment income (loss)		0.00	%d		1.01	%		1.10	%		0.22	%		0.00	%d
Total expenses		1.04	%		1.06	%		1.05	%		0.96	%		0.95	%
Net expensesc		0.16	%		1.03	%		1.05	%		0.94	%		0.47	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Less than $0.01 per share.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Less than 0.01%.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS ANNUAL REPORT | 175

NOTES TO FINANCIAL STATEMENTS

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 (each, a “Fund”). The Trust may issue an unlimited number of authorized 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. 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 March 31, 2021, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Nova Fund	Non-diversified
S&P 500® Fund	Non-diversified
Inverse S&P 500® Strategy Fund	Non-diversified
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Non-diversified
Inverse NASDAQ-100® Strategy Fund	Non-diversified
Mid-Cap 1.5x Strategy Fund	Non-diversified
Inverse Mid-Cap Strategy Fund	Non-diversified
Russell 2000® 1.5x Strategy Fund	Non-diversified
Russell 2000® Fund	Non-diversified
Inverse Russell 2000® Strategy Fund	Non-diversified
Dow Jones Industrial Average® Fund	Non-diversified
Government Long Bond 1.2x Strategy Fund	Diversified
Inverse Government Long Bond Strategy Fund	Diversified
High Yield Strategy Fund	Non-diversified
Inverse High Yield Strategy Fund	Non-diversified
U.S. Government Money Market Fund	Diversified

At March 31, 2021, Investor Class, A-Class, C-Class, H-Class and Money Market Class shares have 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 a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Russell 2000^® Fund and the S&P 500^® Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2021, 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,

176 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities and other assets 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 or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds 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.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation 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 swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’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 U.S. Treasury securities, 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.

THE RYDEX FUNDS ANNUAL REPORT | 177

NOTES TO FINANCIAL STATEMENTS (continued)

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

(d) 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 appreciation or depreciation. 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 appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

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 receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. 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.

Upfront payments received or made by a Fund on credit default swap agreements and interest rate 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) 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 Statements 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 March 31, 2021, 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 a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. 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 Real Estate Investment Trusts (“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 realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) 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. 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. 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 U.S. federal 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 appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in

178 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 based on the respective 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 0.06% at March 31, 2021.

(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 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 may utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on 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 Contracts

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 RYDEX FUNDS ANNUAL REPORT | 179

NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the Funds’ use and volume of futures on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	37,384,031	$	6,260,880
S&P 500® Fund	Index exposure, Liquidity		3,675,799		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		633,021		3,101,617
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		73,983,105		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		1,699,624
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		4,773,889		345,390
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		19,188
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		892,925		—
Russell 2000® Fund	Index exposure, Liquidity		1,588,403		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		2,989,180
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		1,171,642		—
Government Long Bond 1.2x Strategy Fund	Duration, Index exposure, Leverage, Liquidity		37,649,081		—
Inverse Government Long Bond Strategy Fund	Duration, Index exposure, Liquidity		—		12,443,206
High Yield Strategy Fund	Duration, Index exposure, Liquidity		25,452,276		—
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		—		4,286,897

Swap Agreements

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. When utilizing over-the-counter (“OTC”) swaps, 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 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 exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. 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 an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset 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. When utilizing total return swaps, 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 if the underlying reference asset declines in value.

The following table represents the Funds’ use and volume of total return swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	167,647,831	$	—
S&P 500® Fund	Index exposure, Liquidity		11,523,952		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		84,719,539
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		274,329,297		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		26,812,923
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		11,826,926		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		1,036,952
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		14,146,579		—
Russell 2000® Fund	Index exposure, Liquidity		32,062,046		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		12,442,345
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		5,579,319		—
High Yield Strategy Fund	Duration, Index exposure, Liquidity		9,199,704		—

180 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the investment grade and/or 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. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller 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 amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, 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 a fund is selling credit protection, the default of a third party issuer.

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 monthly basis:

		Average Notional Amount
Fund	Use	Protection Purchased		Protection Sold
High Yield Strategy Fund	Duration, Index exposure, Liquidity	$	—	$	30,644,750
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		5,026,042		—

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 March 31, 2021:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin on futures contracts	Variation margin on futures contracts
Equity/Credit contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
Credit contracts	Variation margin on credit default swap agreements	Variation margin on credit default swap agreements
	Unamortized upfront premiums paid on credit default swap agreements	Unamortized upfront premiums received on credit default swap agreements

THE RYDEX FUNDS ANNUAL REPORT | 181

NOTES TO FINANCIAL STATEMENTS (continued)

The following tables set forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2021:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2021
Nova Fund	$	18,515	$	1,140,354	$	—	$	—	$	1,158,869
S&P 500® Fund		—		42,566		—		—		42,566
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		255,378		1,807,401		—		—		2,062,779
Inverse NASDAQ-100® Strategy Fund		—		1,117,821		—		—		1,117,821
Mid-Cap 1.5x Strategy Fund		—		299,069		—		—		299,069
Inverse Mid-Cap Strategy Fund		—		5,004		—		—		5,004
Russell 2000® Fund		—		74,843		—		—		74,843
Inverse Russell 2000® Strategy Fund		31,475		122,815		—		—		154,290
Dow Jones Industrial Average® Fund		1,836		154,468		—		—		156,304
Government Long Bond 1.2x Strategy Fund		—		—		352,265		—		352,265
Inverse Government Long Bond Strategy Fund		—		—		328,417		—		328,417
High Yield Strategy Fund		—		—		—		79,966		79,966
Inverse High Yield Strategy Fund		—		—		32,177		—		32,177

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2021
Nova Fund	$	—	$	70,406	$	—	$	—	$	70,406
Inverse S&P 500® Strategy Fund		24,089		509,001		—		—		533,090
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		260,733		—		—		260,733
Inverse NASDAQ-100® Strategy Fund		44,931		—		—		—		44,931
Mid-Cap 1.5x Strategy Fund		2,707		26,949		—		—		29,656
Inverse Mid-Cap Strategy Fund		—		13,691		—		—		13,691
Russell 2000® 1.5x Strategy Fund		31,803		32,868		—		—		64,671
Russell 2000® Fund		178,332		2,348		—		—		180,680
Inverse Russell 2000® Strategy Fund		—		11,559		—		—		11,559
High Yield Strategy Fund		—		—		168,134		26,621		194,755
Inverse High Yield Strategy Fund		—		—		—		33,183		33,183

* Includes cumulative appreciation (depreciation) of futures contracts and centrally-cleared swaps as reported on the Schedules of Investments. Variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2021:

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

182 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2021:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	24,288,964		$	55,840,352		$	—		$	—		$	80,129,316
S&P 500® Fund		2,389,472			2,625,337			—			—			5,014,809
Inverse S&P 500® Strategy Fund		(2,730,560	)		(45,285,886	)		—			—			(48,016,446	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		27,183,266			103,455,523			—			—			130,638,789
Inverse NASDAQ-100® Strategy Fund		(1,072,867	)		(18,186,753	)		—			—			(19,259,620	)
Mid-Cap 1.5x Strategy Fund		3,429,084			7,299,869			—			—			10,728,953
Inverse Mid-Cap Strategy Fund		(11,374	)		(847,113	)		—			—			(858,487	)
Russell 2000® 1.5x Strategy Fund		611,821			8,079,448			—			—			8,691,269
Russell 2000® Fund		801,037			18,290,067			—			—			19,091,104
Inverse Russell 2000® Strategy Fund		(1,451,853	)		(11,789,560	)		—			—			(13,241,413	)
Dow Jones Industrial Average® Fund		660,570			1,322,980			—			—			1,983,550
Government Long Bond 1.2x Strategy Fund		—			—			(186,535	)		—			(186,535	)
Inverse Government Long Bond Strategy Fund		—			—			2,288,042			—			2,288,042
High Yield Strategy Fund		—			—			274,116			(559,812	)		(285,696	)
Inverse High Yield Strategy Fund		—			—			(16,355	)		(857,303	)		(873,658	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	12,728		$	2,322,272		$	—		$	—		$	2,335,000
S&P 500® Fund		(794,086	)		681,773			—			—			(112,313	)
Inverse S&P 500® Strategy Fund		855,464			(1,877,952	)		—			—			(1,022,488	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(89,874	)		1,879,026			—			—			1,789,152
Inverse NASDAQ-100® Strategy Fund		312,304			573,266			—			—			885,570
Mid-Cap 1.5x Strategy Fund		(107,305	)		167,347			—			—			60,042
Inverse Mid-Cap Strategy Fund		—			(29,801	)		—			—			(29,801	)
Russell 2000® 1.5x Strategy Fund		(112,041	)		(135,523	)		—			—			(247,564	)
Russell 2000® Fund		(342,408	)		(335,233	)		—			—			(677,641	)
Inverse Russell 2000® Strategy Fund		31,475			(333,033	)		—			—			(301,558	)
Dow Jones Industrial Average® Fund		(175,221	)		421,783			—			—			246,562
Government Long Bond 1.2x Strategy Fund		—			—			(7,122,200	)		—			(7,122,200	)
Inverse Government Long Bond Strategy Fund		—			—			1,409,965			—			1,409,965
High Yield Strategy Fund		—			—			(470,106	)		438,167			(31,939	)
Inverse High Yield Strategy Fund		—			—			67,789			(188,678	)		(120,889	)

In conjunction with short sales and the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

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 ANNUAL REPORT | 183

NOTES TO FINANCIAL STATEMENTS (continued)

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, 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. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. 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:

								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	$	1,140,354	$	—	$	1,140,354	$	—	$	—		$	1,140,354
S&P 500® Fund	Swap equity contracts		42,566		—		42,566		—		—			42,566
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		1,807,401		—		1,807,401		—		—			1,807,401
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		1,117,821		—		1,117,821		—		—			1,117,821
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		299,069		—		299,069		—		—			299,069
Inverse Mid-Cap Strategy Fund	Swap equity contracts		5,004		—		5,004		—		—			5,004
Russell 2000® Fund	Swap equity contracts		74,843		—		74,843		—		—			74,843
Inverse Russell 2000® Strategy Fund	Swap equity contracts		122,815		—		122,815		—		—			122,815
Dow Jones Industrial Average® Fund	Swap equity contracts		154,468		—		154,468		—		—			154,468
High Yield Strategy Fund	Swap credit contracts		2,084		—		2,084		—		(2,084	)		—

184 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (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
Nova Fund	Swap equity contracts	$	70,406	$	—	$	70,406	$	(70,406	)	$	—	$	—
Inverse S&P 500® Strategy Fund	Swap equity contracts		509,001		—		509,001		(509,001	)		—		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		260,733		—		260,733		(260,733	)		—		—
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		26,949		—		26,949		(26,949	)		—		—
Inverse Mid-Cap Strategy Fund	Swap equity contracts		13,691		—		13,691		—			—		13,691
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		32,868		—		32,868		(5,361	)		—		27,507
Russell 2000® Fund	Swap equity contracts		2,348		—		2,348		(2,348	)		—		—
Inverse Russell 2000® Strategy Fund	Swap equity contracts		11,559		—		11,559		(3	)		—		11,556
High Yield Strategy Fund	Swap credit contracts		26,621		—		26,621		(26,621	)		—		—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2021.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
S&P 500® Fund	Barclays Bank plc	Total return swap agreements	$	50,000	$	—
	Goldman Sachs International	Futures contracts		110,000		—
S&P 500® Fund Total				160,000		—
Inverse S&P 500® Strategy Fund	Goldman Sachs International	Futures contracts		351,501		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Goldman Sachs International	Futures contracts		311,769		—
Russell 2000® 1.5x Strategy Fund	Goldman Sachs International	Futures contracts		12,600		—
Dow Jones Industrial Average® Fund	Goldman Sachs International	Futures contracts		17,050		—
Government Long Bond 1.2x Strategy Fund	Goldman Sachs International	Futures contracts		1,800,665		—
High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		25,711		—
	Goldman Sachs International	Credit default swap agreements		—		1,186,515
	Goldman Sachs International	Futures contracts		4,501		—
High Yield Strategy Fund Total				30,212		1,186,515
Inverse High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		1,329,960		—
	Goldman Sachs International	Futures contracts		32,725		—
Inverse High Yield Strategy Fund Total				1,362,685		—

THE RYDEX FUNDS ANNUAL REPORT | 185

NOTES TO FINANCIAL STATEMENTS (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 – Investment Advisory Agreement and Other Agreements

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	%

186 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

For the year ended March 31, 2021, GFD retained sales charges of $128,465 relating to sales of A-Class shares of the Trust.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended March 31, 2021, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Nova Fund	$	34,760
Inverse S&P 500® Strategy Fund		13,060
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		34,337
Inverse NASDAQ-100® Strategy Fund		4,040
Mid-Cap 1.5x Strategy Fund		3,595
Inverse Mid-Cap Strategy Fund		322
Russell 2000® 1.5x Strategy Fund		1,635
Inverse Russell 2000® Strategy Fund		3,610
Dow Jones Industrial Average® Fund		2,744
Government Long Bond 1.2x Strategy Fund		13,186
Inverse Government Long Bond Strategy Fund		9,762
High Yield Strategy Fund		8,248
Inverse High Yield Strategy Fund		1,666

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.

THE RYDEX FUNDS ANNUAL REPORT | 187

NOTES TO FINANCIAL STATEMENTS (continued)

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 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.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets 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 March 31, 2021, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Bond
0.01%					2.38%
Due 04/01/21	$	124,999,036	$	124,999,053	11/15/49	$	126,141,600	$	127,499,092
Barclays Capital, Inc.					U.S. Treasury Inflation Indexed Bond
0.01%					0.13%
Due 04/01/21		56,830,637		56,830,653	02/15/51		57,053,077		57,967,257
BofA Securities, Inc.					U.S. Treasury Note
0.01%					0.38%
Due 04/01/21		51,866,820		51,866,827	04/30/25		53,449,300		52,904,236

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.

188 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At March 31, 2021, 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	$	92,813	$	(92,813	)	$	—	$	94,247	$	—	$	94,247
S&P 500® Fund		41,120		(41,120	)		—		41,708		—		41,708
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		49,067		(49,067	)		—		50,356		—		50,356
Mid-Cap 1.5x Strategy Fund		4,037		(4,037	)		—		4,226		—		4,226

^(a) Actual collateral received by the Fund is generally 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 or federal excise 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 U.S. 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’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

THE RYDEX FUNDS ANNUAL REPORT | 189

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Nova Fund	$	1,913,003	$	—	$	1,913,003
S&P 500® Fund		11,038,973		10,400,477		21,439,450
Inverse S&P 500® Strategy Fund		300,608		—		300,608
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		19,528,645		—		19,528,645
Inverse NASDAQ-100® Strategy Fund		23,879		—		23,879
Mid-Cap 1.5x Strategy Fund		89,713		—		89,713
Inverse Mid-Cap Strategy Fund		5,437		—		5,437
Russell 2000® 1.5x Strategy Fund		25,705		—		25,705
Inverse Russell 2000® Strategy Fund		6,140		—		6,140
Dow Jones Industrial Average® Fund		987,661		—		987,661
Government Long Bond 1.2x Strategy Fund		15,954,125		—		15,954,125
Inverse Government Long Bond Strategy Fund		122,836		—		122,836
Inverse High Yield Strategy Fund		72,627		—		72,627
U.S. Government Money Market Fund		146,286		4,651		150,937

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Fund	$	1,631,612	$	—	$	1,631,612
Inverse S&P 500® Strategy Fund		484,544		—		484,544
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		208,541		—		208,541
Inverse NASDAQ-100® Strategy Fund		119,715		—		119,715
Mid-Cap 1.5x Strategy Fund		223,749		—		223,749
Inverse Mid-Cap Strategy Fund		5,588		—		5,588
Russell 2000® Fund		120,988		444,717		565,705
Inverse Russell 2000® Strategy Fund		52,740		—		52,740
Dow Jones Industrial Average® Fund		1,150,570		—		1,150,570
Government Long Bond 1.2x Strategy Fund		2,384,007		1,920,775		4,304,782
High Yield Strategy Fund		3,884,275		—		3,884,275
U.S. Government Money Market Fund		4,103,774		—		4,103,774

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

The tax components of distributable earnings/(loss) as of March 31, 2021 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
Nova Fund	$	20,301,386	$	—	$	19,531,529		$	—		$	39,832,915
S&P 500® Fund		2,781,735		—		20,601,570			—			23,383,305
Inverse S&P 500® Strategy Fund		—		—		(370,053	)		(257,690,964	)		(258,061,017	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		2,061,637		—		16,828			—			2,078,465
Inverse NASDAQ-100® Strategy Fund		—		—		1,177,505			(56,580,975	)		(55,403,470	)
Mid-Cap 1.5x Strategy Fund		2,302,154		—		3,118,648			—			5,420,802
Inverse Mid-Cap Strategy Fund		—		—		(7,429	)		(5,752,548	)		(5,759,977	)
Russell 2000® 1.5x Strategy Fund		3,956,807		—		(16,038	)		—			3,940,769
Russell 2000® Fund		4,144,986		—		86,219			—			4,231,205
Inverse Russell 2000® Strategy Fund		—		—		145,896			(41,224,468	)		(41,078,572	)
Dow Jones Industrial Average® Fund		441,042		—		3,932,283			—			4,373,325
Government Long Bond 1.2x Strategy Fund		—		—		(5,827,002	)		(12,251,777	)		(18,078,779	)
Inverse Government Long Bond Strategy Fund		—		—		1,845,407			(258,744,943	)		(256,899,536	)
High Yield Strategy Fund		—		—		137,169			(9,956,649	)		(9,819,480	)
Inverse High Yield Strategy Fund		111,114		—		(32,085	)		(10,481,915	)		(10,402,886	)
U.S. Government Money Market Fund		4,475		88		—			—			4,563

190 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of March 31, 2021, capital loss carryforwards for the Funds were as follows:

	Unlimited
Fund	Short-Term			Long-Term			Total Capital Loss Carryforward
Inverse S&P 500® Strategy Fund	$	(231,536,836	)	$	(26,154,128	)	$	(257,690,964	)
Inverse NASDAQ-100® Strategy Fund		(53,273,999	)		(3,216,792	)		(56,490,791	)
Inverse Mid-Cap Strategy Fund		(5,011,555	)		(739,562	)		(5,751,117	)
Inverse Russell 2000® Strategy Fund		(34,470,922	)		(6,710,344	)		(41,181,266	)
Government Long Bond 1.2x Strategy Fund		(7,742,154	)		(4,509,623	)		(12,251,777	)
Inverse Government Long Bond Strategy Fund		(210,133,078	)		(48,148,308	)		(258,281,386	)
High Yield Strategy Fund		(8,262,739	)		(132,124	)		(8,394,863	)
Inverse High Yield Strategy Fund		(8,431,474	)		(2,050,441	)		(10,481,915	)

For the year ended March 31, 2021, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Nova Fund	$	32,724,511
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		42,677,565
Mid-Cap 1.5x Strategy Fund		8,023,914
Russell 2000® 1.5x Strategy Fund		58,086
Inverse Government Long Bond Strategy Fund		6,921,290
High Yield Strategy Fund		371,806

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, investments in swaps, losses deferred due to wash sales, distributions in connection with redemption of fund shares, distribution reclasses, return of capital distributions received, taxable overdistributions, and the deferral of qualified late-year losses. Additional differences may result from the tax treatment of net operating losses, bond premium/discount amortization, and the “mark-to-market” of certain derivatives. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2021 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
Nova Fund	$	72,539,640		$	(72,539,640	)
S&P 500® Fund		22,515,202			(22,515,202	)
Inverse S&P 500® Strategy Fund		(1,034,656	)		1,034,656
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		111,103,562			(111,103,562	)
Inverse NASDAQ-100® Strategy Fund		(288,424	)		288,424
Mid-Cap 1.5x Strategy Fund		4,681,985			(4,681,985	)
Inverse Mid-Cap Strategy Fund		(13,868	)		13,868
Russell 2000® 1.5x Strategy Fund		4,447,730			(4,447,730	)
Russell 2000® Fund		5,886,793			(5,886,793	)
Inverse Russell 2000® Strategy Fund		(182,652	)		182,652
Dow Jones Industrial Average® Fund		1,839,290			(1,839,290	)
Government Long Bond 1.2x Strategy Fund		(3,960	)		3,960
Inverse Government Long Bond Strategy Fund		(821,805	)		821,805
High Yield Strategy Fund		(1,494,758	)		1,494,758

THE RYDEX FUNDS ANNUAL REPORT | 191

NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2021, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Tax Unrealized Appreciation/ (Depreciation)
Nova Fund	$	381,040,674	$	20,470,348	$	(938,819	)	$	19,531,529
S&P 500® Fund		129,852,593		20,763,988		(162,418	)		20,601,570
Inverse S&P 500® Strategy Fund		58,278,469		138,947		(509,000	)		(370,053	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		114,874,101		326,567		(309,739	)		16,828
Inverse NASDAQ-100® Strategy Fund		28,302,956		1,220,700		(43,195	)		1,177,505
Mid-Cap 1.5x Strategy Fund		14,662,048		3,166,241		(47,593	)		3,118,648
Inverse Mid-Cap Strategy Fund		896,118		6,262		(13,691	)		(7,429	)
Russell 2000® 1.5x Strategy Fund		12,791,113		16,917		(32,955	)		(16,038	)
Russell 2000® Fund		54,986,447		141,774		(55,555	)		86,219
Inverse Russell 2000® Strategy Fund		5,130,575		159,655		(13,759	)		145,896
Dow Jones Industrial Average® Fund		19,418,589		4,128,945		(196,662	)		3,932,283
Government Long Bond 1.2x Strategy Fund		166,858,119		—		(5,827,002	)		(5,827,002	)
Inverse Government Long Bond Strategy Fund		43,793,421		1,846,632		(1,225	)		1,845,407
High Yield Strategy Fund		21,334,772		213,274		(76,105	)		137,169
Inverse High Yield Strategy Fund		9,205,091		17,560		(49,645	)		(32,085	)
U.S. Government Money Market Fund		353,464,165		—		—			—

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2021, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2021:

Fund	Ordinary			Capital
Inverse NASDAQ-100® Strategy Fund	$	(90,184	)	$	—
Inverse Mid-Cap Strategy Fund		(1,431	)		—
Inverse Russell 2000® Strategy Fund		(43,202	)		—
Inverse Government Long Bond Strategy Fund		(463,557	)		—
High Yield Strategy Fund		(1,561,786	)		—

192 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 9 – Securities Transactions

For the year ended March 31, 2021, 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	$	1,893,942,976	$	1,629,582,120
S&P 500® Fund		380,846,135		392,296,817
Inverse S&P 500® Strategy Fund		800,000		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		1,101,857,015		1,110,090,216
Inverse NASDAQ-100® Strategy Fund		1,150,000		2,600,000
Mid-Cap 1.5x Strategy Fund		70,178,417		66,323,259
Inverse Mid-Cap Strategy Fund		105,018		160,000
Russell 2000® 1.5x Strategy Fund		1,612,999		—
Russell 2000® Fund		—		—
Inverse Russell 2000® Strategy Fund		975,000		400,000
Dow Jones Industrial Average® Fund		20,272,865		23,315,664
Government Long Bond 1.2x Strategy Fund		8,600,000		18,800,000
Inverse Government Long Bond Strategy Fund		3,100,000		—
High Yield Strategy Fund		10,600,000		9,725,000
Inverse High Yield Strategy Fund		5,870,000		7,260,000
U.S. Government Money Market Fund		3,613,539		—

For the year ended March 31, 2021, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	1,841,747,086	$	1,785,130,336
Inverse Government Long Bond Strategy Fund		972,700,477		995,619,188

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. 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 year ended March 31, 2021, 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	$	597,332,194	$	412,840,069	$	9,235,681
S&P 500® Fund		202,758,088		275,312,049		6,146,086
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		472,112,100		193,892,753		1,151,928
Mid-Cap 1.5x Strategy Fund		3,002,105		4,289,263		116,695
Dow Jones Industrial Average® Fund		8,990,542		11,491,700		745,578

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 expired June 8, 2020. On June 8, 2020, the line of credit agreement was renewed at an increased amount of $150,000,000 and expires on June 7, 2021. On February 10, 2021, the line of credit was increased from $150,000,000 to $200,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the year ended March 31, 2021. The Funds did not have any borrowings outstanding under this agreement at March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 193

NOTES TO FINANCIAL STATEMENTS (continued)

The average daily balances borrowed for the year ended March 31, 2021, were as follows:

Fund	Average Daily Balance
Nova Fund	$	129,000
S&P 500® Strategy Fund		526
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		48,170
Inverse NASDAQ-100® Strategy Fund		30
Mid-Cap 1.5x Strategy Fund		7,386
Government Long Bond 1.2x Strategy Fund		34,693

Note 11 – Reverse Share Splits

Effective on August 17, 2020, reverse share splits occurred for the following Funds:

Fund	Split Type
Inverse Mid-Cap Strategy Fund	One-for-Five Reverse Share Split
Inverse Russell 2000® Strategy Fund	One-for-Five Reverse Share Split
Inverse Government Long Bond Strategy Fund	One-for-Five Reverse Share Split
High Yield Strategy Fund	One-for-Five Reverse Share Split

The effect of these transactions was to divide the number of outstanding shares of the Inverse Mid-Cap Strategy Fund, the Inverse Russell 2000 Strategy Fund, the Inverse Government Long Bond Strategy Fund and the High Yield Strategy Fund, by their respective reverse share split ratios, resulting in a corresponding increase in the NAV. The share transactions presented in the Statement of Changes in Net Assets and the Per Share Data in the Financial Highlights for each of the periods presented prior to the effective date, have been restated to reflect these 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 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-2296 (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.

194 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020. On July 6, 2020, plaintiffs filed a new petition for a writ of certiorari in the U.S. Supreme Court. In that petition, plaintiffs stated that “[t]o make it more likely that there will be a quorum for this petition,” they have “abandon[ed] the case and let the judgment below stand” with respect to certain defendants. That list did not include the Rydex Series Funds. Defendants filed an opposition to the certiorari petition on August 26, 2020, and plaintiffs filed a reply in support of the petition for certiorari on September 8, 2020. On March 12, 2021, the Solicitor General filed an amicus brief recommending that certiorari be denied. Plaintiffs filed a supplemental brief in response to the Solicitor General’s amicus brief on March 31, 2021, and Defendants filed a supplemental brief on April 1, 2021.

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 intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

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. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020. Plaintiff filed a reply brief on May 18, 2020. The Court held oral argument on August 24, 2020.

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NOTES TO FINANCIAL STATEMENTS (concluded)

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

Note 13 – COVID-19

The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

Note 14 – Subsequent Events

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds’ financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, 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 and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, 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 (collectively referred to as the “Funds”), (sixteen of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2021, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (sixteen of the funds constituting Rydex Series Funds) at March 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 26, 2021

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OTHER INFORMATION (Unaudited)

Federal Income Tax Information

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

In January 2022, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2021.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2021, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2021, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively. See qualified interest income and qualified short-term capital gain columns, respectively, in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Interest Income			Qualified Short-Term Capital Gain
Nova Fund		0.00	%		0.00	%		0.17	%		0.00	%
S&P 500® Fund		24.87	%		24.83	%		1.54	%		100.00	%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		1.00	%		1.31	%		0.20	%		100.00	%
Mid-Cap 1.5x Strategy Fund		86.40	%		99.12	%		0.25	%		0.00	%
Russell 2000® 1.5x Strategy Fund		0.00	%		0.00	%		0.10	%		0.00	%
Dow Jones Industrial Average® Fund		13.33	%		13.47	%		0.00	%		100.00	%
Government Long Bond 1.2x Strategy Fund		0.00	%		0.00	%		52.14	%		100.00	%
Inverse High Yield Strategy Fund		0.16	%		0.16	%		5.59	%		0.00	%
U.S. Government Money Market Fund		0.00	%		0.00	%		99.13	%		100.00	%

With respect to the taxable year ended March 31, 2021, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
S&P 500® Fund	$	10,400,477	$	14,419,235
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		—		13,152,316
Mid-Cap 1.5x Strategy Fund		—		768,173
Russell 2000® 1.5x Strategy Fund		—		302,260
Dow Jones Industrial Average® Fund		—		866,215
U.S. Government Money Market Fund		4,651		—

Delivery of Shareholder Reports

Paper copies of the Funds’ annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

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OTHER INFORMATION (Unaudited)(concluded)

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim funds held with your financial intermediary.

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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee and Chair of the Valuation Oversight Committee	Since 2019 (Trustee) Since 2020 (Chair of the Valuation Oversight Committee)	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Thomas F. Lydon, Jr. (1960)	Trustee and Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2020 (Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Of Counsel, Momkus LLP (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (2) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). Former: SSGA Master Trust (1) (2018-2020).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2019	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.
***	Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	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, Mutual Fund Administration for 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).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, 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 Chief Compliance Officer, 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); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, 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.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

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

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

THE RYDEX FUNDS ANNUAL REPORT | 207

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3.31.2021

Rydex Funds Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy Fund

Weakening Dollar 2x Strategy Fund

GuggenheimInvestments.com RBENF2-ANN-0321x0322

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	27
S&P MIDCAP 400® PURE VALUE FUND	35
S&P SMALLCAP 600® PURE GROWTH FUND	43
S&P SMALLCAP 600® PURE VALUE FUND	52
EUROPE 1.25x STRATEGY FUND	61
JAPAN 2x STRATEGY FUND	70
STRENGTHENING DOLLAR 2x STRATEGY FUND	78
WEAKENING DOLLAR 2x STRATEGY FUND	86
NOTES TO FINANCIAL STATEMENTS	94
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	110
OTHER INFORMATION	111
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	113
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	118

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2021

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the 12-month period ended March 31, 2021.

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

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

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

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

Sincerely,

Security Investors, LLC

April 30, 2021

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.

COVID-19. The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to investment risk, including the possible loss of the entire principal amount invested. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other 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.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2021

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 under-perform 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 or to lessen the impact of a market decline ● The Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Funds’ ability to achieve its investment objective and may decrease the Fund’s performance. ● These Funds are 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. ● 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 ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2021

For the 12-month period ended March 31, 2021, the Standard & Poor’s 500^® (“S&P 500^®”) Index returned 56.35% as the equity market roared back to life after a sharp selloff following the outbreak of COVID-19. This increase was in spite of ongoing personal and economic hardships imposed by COVID-19, highlighting the crucial role of policy support in the form of monetary and fiscal stimulus, which has succeeded in averting a lengthy recession in the U.S. These policy initiatives, particularly on the monetary side, increased market liquidity and lowered borrowing rates, reassuring equity investors that the Federal Reserve (the “Fed”) would do everything in its power to maintain market stability.

Our 2021 U.S. economic growth forecast increased during the first quarter of 2021 from an annualized 5.5% to over 7%, factoring in more fiscal stimulus than previously anticipated. This forecast captures the effect of stimulus representing roughly 11% of 2020–2021 gross domestic product (“GDP”), versus the previous calculation of about 8%. We see strength in the consumer sector and in housing activity. In addition, U.S. vaccinations for COVID-19 continue to accelerate, nearing 3 million doses per day by the end of the first quarter. More than 213 million doses have been administered in the U.S. so far, and about 35% of the U.S. population has been fully vaccinated. The U.S. is seeing the best-case scenario unfold in its vaccine rollout, but other countries have not been as fortunate.

Europe’s vaccine rollout hit a major speedbump during the first quarter when questions surrounding the safety of the AstraZeneca vaccine led several major European countries to temporarily suspend distribution. Safety concerns, coupled with supply constraints, meant that less than 10% of the populations of Germany, France, and Italy had been vaccinated by the end of the first quarter, well under the pace needed to reach 70% inoculated by summer. Any delay in ending the pandemic on a global scale has implications for other countries too, including the U.S., where travel and hospitality workers represent a large share of the unemployed.

Despite vaccination delays in Europe and its implications abroad, we saw meaningful improvement in the domestic labor market during the first quarter as states moved forward with business re-openings. Seasonally adjusted initial jobless claims fell by 97,000 to 684,000 in the week ending March 20, 2021, the lowest level since the pandemic began, before seeing an uptick the following week to 719,000. We saw more positive news across the board in the March payroll report with 916,000 jobs added, and with 156,000 more from revisions. Standing in the way of additional labor market gains are local government restrictions on certain sectors, although easing of these restrictions is expected by summer.

Economic developments drove a sharp increase in U.S. Treasury yields. The market pulled forward expectations of the next Fed rate hike from December 2023 to December 2022, while repricing the long-run terminal Fed funds rate estimate to 2.25% from just 0.55% last August. We do not expect the Fed to raise interest rates as early as the market is anticipating, even though we expect strong GDP growth in coming years.

Year-over-year inflation measures will rise over the next several months due to base effects, which may be compounded by supply chain disruptions in the goods sector and potential capacity constraints for certain services. However, these factors could prove to be short-lived, with base effects set to dampen inflation starting in the summer months. Moreover, the Fed is focused on generating sustainably higher inflation. Even if core inflation rises above the Fed’s 2% target in 2021, the Fed’s focus is on a long-term average of 2%. With years of shortfalls to make up, and the Fed now targeting labor market disparities as part of an expanded definition of full employment, we expect policymakers to remain resolutely patient. Any tapering of asset purchases will likely be deferred until later in 2022, with the first rate hike likely to come sometime after that.

Easy financial conditions and low rates will likely support credit over the next few years. With market optimism pulling forward rate hike expectations and causing bond yields to rise, we view this as an opportunity to add incremental yield to portfolios.

For the 12-month period ended March 31, 2021, the S&P 500^® Index* returned, as noted, 56.35%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 44.57%. The return of the MSCI Emerging Markets Index* was 58.39%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 0.71% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 23.72%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.12% for the 12-month period.

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

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2021

*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.

ICE 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.

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^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

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.

STOXX Europe 50^® Index provides a blue-chip representation of supersector leaders in Europe. The index covers 50 stocks from 17 European countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

USD or U.S. Dollar Index^® (USDX) is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated “basket” of currencies comprises the weighting of six other currencies as follows: Euro (EUR), 57.6% + Japanese Yen (JPY), 13.6% + Pound Sterling (GBP), 11.9% + Canadian Dollar (CAD), 9.1% + Swedish Krona (SEK), 4.2% + Swiss Franc (CHF) 3.6%.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited) March 31, 2021

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 to ensure that they are consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

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

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

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2020 and ending March 31, 2021.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.56%	15.19%	$ 1,000.00	$ 1,151.90	$ 8.37
C-Class	2.31%	14.76%	1,000.00	1,147.60	12.37
H-Class	1.56%	15.20%	1,000.00	1,152.00	8.37
S&P 500® Pure Value Fund
A-Class	1.56%	50.57%	1,000.00	1,505.70	9.75
C-Class	2.31%	50.01%	1,000.00	1,500.10	14.40
H-Class	1.55%	50.57%	1,000.00	1,505.70	9.68
S&P MidCap 400® Pure Growth Fund
A-Class	1.56%	29.51%	1,000.00	1,295.10	8.93
C-Class	2.31%	29.04%	1,000.00	1,290.40	13.19
H-Class	1.56%	29.51%	1,000.00	1,295.10	8.93
S&P MidCap 400® Pure Value Fund
A-Class	1.55%	64.53%	1,000.00	1,645.30	10.22
C-Class	2.30%	63.94%	1,000.00	1,639.40	15.13
H-Class	1.54%	64.55%	1,000.00	1,645.50	10.16
S&P SmallCap 600® Pure Growth Fund
A-Class	1.55%	46.66%	1,000.00	1,466.60	9.53
C-Class	2.31%	46.09%	1,000.00	1,460.90	14.17
H-Class	1.53%	46.68%	1,000.00	1,466.80	9.41
S&P SmallCap 600® Pure Value Fund
A-Class	1.55%	72.98%	1,000.00	1,729.80	10.55
C-Class	2.30%	72.34%	1,000.00	1,723.40	15.62
H-Class	1.53%	72.96%	1,000.00	1,729.60	10.41
Europe 1.25x Strategy Fund
A-Class	1.69%	19.61%	1,000.00	1,196.10	9.25
C-Class	2.43%	18.82%	1,000.00	1,188.20	13.26
H-Class	1.69%	19.23%	1,000.00	1,192.30	9.24
Japan 2x Strategy Fund
A-Class	1.53%	41.29%	1,000.00	1,412.90	9.20
C-Class	2.28%	40.76%	1,000.00	1,407.60	13.69
H-Class	1.53%	41.29%	1,000.00	1,412.90	9.20
Strengthening Dollar 2x Strategy Fund
A-Class	1.86%	(2.06%)	1,000.00	979.40	9.18
C-Class	2.61%	(2.45%)	1,000.00	975.50	12.85
H-Class	1.86%	(2.05%)	1,000.00	979.50	9.18
Weakening Dollar 2x Strategy Fund
A-Class	1.86%	0.06%	1,000.00	1,000.60	9.28
C-Class	2.61%	(0.30%)	1,000.00	997.00	12.99
H-Class	1.86%	0.07%	1,000.00	1,000.70	9.28

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.56%	5.00%	$ 1,000.00	$ 1,017.15	$ 7.85
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
H-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
S&P 500® Pure Value Fund
A-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
H-Class	1.55%	5.00%	1,000.00	1,017.20	7.80
S&P MidCap 400® Pure Growth Fund
A-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
H-Class	1.56%	5.00%	1,000.00	1,017.15	7.85
S&P MidCap 400® Pure Value Fund
A-Class	1.55%	5.00%	1,000.00	1,017.20	7.80
C-Class	2.30%	5.00%	1,000.00	1,013.46	11.55
H-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
S&P SmallCap 600® Pure Growth Fund
A-Class	1.55%	5.00%	1,000.00	1,017.20	7.80
C-Class	2.31%	5.00%	1,000.00	1,013.41	11.60
H-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
S&P SmallCap 600® Pure Value Fund
A-Class	1.55%	5.00%	1,000.00	1,017.20	7.80
C-Class	2.30%	5.00%	1,000.00	1,013.46	11.55
H-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
Europe 1.25x Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
C-Class	2.43%	5.00%	1,000.00	1,012.81	12.19
H-Class	1.69%	5.00%	1,000.00	1,016.50	8.50
Japan 2x Strategy Fund
A-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
C-Class	2.28%	5.00%	1,000.00	1,013.56	11.45
H-Class	1.53%	5.00%	1,000.00	1,017.30	7.70
Strengthening Dollar 2x Strategy Fund
A-Class	1.86%	5.00%	1,000.00	1,015.66	9.35
C-Class	2.61%	5.00%	1,000.00	1,011.92	13.09
H-Class	1.86%	5.00%	1,000.00	1,015.66	9.35
Weakening Dollar 2x Strategy Fund
A-Class	1.86%	5.00%	1,000.00	1,015.66	9.35
C-Class	2.61%	5.00%	1,000.00	1,011.92	13.09
H-Class	1.86%	5.00%	1,000.00	1,015.66	9.35

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2020 to March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P 500^® PURE GROWTH FUND

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

For the year ended March 31, 2021, S&P 500^® Pure Growth Fund H-Class returned 61.92%, compared with a return of 64.96% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Industrials.

The holdings contributing the most to the return of the underlying index were United Rentals, Inc., Lam Research Corp., and PayPal Holdings, Inc. The holdings detracting the most from return were Enphase Energy, Inc., DexCom, Inc., and Monolithic Power Systems, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Etsy, Inc.	2.7%
PayPal Holdings, Inc.	2.4%
Tesla, Inc.	2.4%
SVB Financial Group	2.3%
Monolithic Power Systems, Inc.	2.3%
Align Technology, Inc.	2.1%
Teradyne, Inc.	2.1%
ServiceNow, Inc.	2.0%
Amazon.com, Inc.	2.0%
Generac Holdings, Inc.	2.0%
Top Ten Total	22.3%
“Ten Largest Holdings” excludes any temporary cash investments.

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	61.92%	14.73%	12.67%
A-Class Shares with sales charge‡	54.22%	13.62%	12.13%
C-Class Shares	60.69%	13.87%	11.83%
C-Class Shares with CDSC§	59.69%	13.87%	11.83%
H-Class Shares	61.92%	14.73%	12.68%
S&P 500 Pure Growth Index	64.96%	16.68%	14.58%

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

THE RYDEX FUNDS ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Technology - 36.5%
Monolithic Power Systems, Inc.		2,524	$	891,502
Teradyne, Inc.		6,740		820,123
ServiceNow, Inc.*		1,550		775,170
NVIDIA Corp.		1,440		768,859
KLA Corp.		2,235		738,444
Fortinet, Inc.*		3,662		675,346
Autodesk, Inc.*		2,341		648,808
Lam Research Corp.		1,070		636,907
Adobe, Inc.*		1,320		627,488
Apple, Inc.		4,890		597,314
Cadence Design Systems, Inc.*		4,140		567,139
Advanced Micro Devices, Inc.*		7,211		566,064
Applied Materials, Inc.		4,180		558,448
salesforce.com, Inc.*		2,557		541,752
Paycom Software, Inc.*		1,449		536,217
Take-Two Interactive Software, Inc.*		2,914		514,904
Microsoft Corp.		2,150		506,905
MSCI, Inc. — Class A		1,199		502,717
Synopsys, Inc.*		1,980		490,604
QUALCOMM, Inc.		3,600		477,324
Qorvo, Inc.*		2,487		454,375
Intuit, Inc.		1,047		401,064
ANSYS, Inc.*		1,076		365,367
Tyler Technologies, Inc.*		748		317,548
Xilinx, Inc.		2,460		304,794
Total Technology				14,285,183
Consumer, Non-cyclical - 27.1%
PayPal Holdings, Inc.*		3,929		954,118
Align Technology, Inc.*		1,535		831,248
United Rentals, Inc.*		2,304		758,730
IDEXX Laboratories, Inc.*		1,320		645,889
DaVita, Inc.*		5,690		613,211
DexCom, Inc.*		1,700		610,963
West Pharmaceutical Services, Inc.		2,120		597,374
Bio-Rad Laboratories, Inc. — Class A*		1,010		576,882
Catalent, Inc.*		5,340		562,356
ABIOMED, Inc.*		1,730		551,403
Regeneron Pharmaceuticals, Inc.*		1,130		534,648
MarketAxess Holdings, Inc.		868		432,195
Thermo Fisher Scientific, Inc.		941		429,454
Monster Beverage Corp.*		4,530		412,638
Vertex Pharmaceuticals, Inc.*		1,867		401,199
PerkinElmer, Inc.		2,980		382,304
Rollins, Inc.		10,980		377,932
ResMed, Inc.		1,760		341,475
S&P Global, Inc.		889		313,701
Verisk Analytics, Inc. — Class A		1,580		279,170
Total Consumer, Non-cyclical				10,606,890
Communications - 14.1%
Etsy, Inc.*		5,310		1,070,868
Amazon.com, Inc.*		250		773,520
Netflix, Inc.*		1,308		682,331
Facebook, Inc. — Class A*		1,993		586,998
eBay, Inc.		9,180		562,183
Twitter, Inc.*		6,850		435,865
Arista Networks, Inc.*		1,315		396,985
Charter Communications, Inc. — Class A*		630		388,723
Alphabet, Inc. — Class A*		153		315,566
Alphabet, Inc. — Class C*		141		291,677
Total Communications				5,504,716
Consumer, Cyclical - 10.0%
Tesla, Inc.*		1,380		921,743
Tractor Supply Co.		3,780		669,362
Pool Corp.		1,530		528,217
Domino’s Pizza, Inc.		1,397		513,803
Chipotle Mexican Grill, Inc. — Class A*		335		475,975
Dollar General Corp.		2,232		452,248
Copart, Inc.*		3,126		339,515
Total Consumer, Cyclical				3,900,863
Industrial - 5.3%
Generac Holdings, Inc.*		2,350		769,507
Old Dominion Freight Line, Inc.		2,009		482,984
Trimble, Inc.*		5,900		458,961
Mettler-Toledo International, Inc.*		300		346,707
Total Industrial				2,058,159
Basic Materials - 2.4%
Albemarle Corp.		3,530		515,768
FMC Corp.		4,010		443,546
Total Basic Materials				959,314
Financial - 2.3%
SVB Financial Group*		1,860		918,208
Energy - 1.9%
Enphase Energy, Inc.*		4,661		755,828
Total Common Stocks
(Cost $28,828,472)				38,989,161

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P 500® PURE GROWTH FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	49,869	$	49,869
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		22,673		22,673
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		20,693		20,693
Total Repurchase Agreements
(Cost $93,235)				93,235
Total Investments - 99.8%
(Cost $28,921,707)			$	39,082,396
Other Assets & Liabilities, net - 0.2%				95,720
Total Net Assets - 100.0%			$	39,178,116

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	38,989,161	$	—	$	—	$	38,989,161
Repurchase Agreements		—		93,235		—		93,235
Total Assets	$	38,989,161	$	93,235	$	—	$	39,082,396

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $28,828,472)	$	38,989,161
Repurchase agreements, at value (cost $93,235)		93,235
Receivables:
Securities sold		228,221
Fund shares sold		27,766
Dividends		6,461
Total assets		39,344,844
Liabilities:
Payable for:
Fund shares redeemed		74,508
Management fees		24,253
Distribution and service fees		12,799
Professional fees		11,404
Printing fees		9,321
Transfer agent and administrative fees		8,699
Portfolio accounting fees		3,234
Trustees’ fees*		588
Miscellaneous		21,922
Total liabilities		166,728
Commitments and contingent liabilities (Note 12)		—
Net assets	$	39,178,116
Net assets consist of:
Paid in capital	$	27,394,243
Total distributable earnings (loss)		11,783,873
Net assets	$	39,178,116
A-Class:
Net assets	$	9,723,592
Capital shares outstanding		115,715
Net asset value per share	$	84.03
Maximum offering price per share (Net asset value divided by 95.25%)	$	88.22
C-Class:
Net assets	$	7,313,693
Capital shares outstanding		102,401
Net asset value per share	$	71.42
H-Class:
Net assets	$	22,140,831
Capital shares outstanding		263,586
Net asset value per share	$	84.00

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	252,471
Interest		141
Income from securities lending, net		7
Total investment income		252,619
Expenses:
Management fees		337,861
Distribution and service fees:
A-Class		22,561
C-Class		85,197
H-Class		68,758
Transfer agent and administrative fees		127,498
Registration fees		50,347
Portfolio accounting fees		45,055
Professional fees		28,195
Trustees’ fees*		12,000
Custodian fees		6,764
Miscellaneous		1,828
Total expenses		786,064
Net investment loss		(533,445	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,985,795
Net realized gain		5,985,795
Net change in unrealized appreciation (depreciation) on:
Investments		14,848,012
Net change in unrealized appreciation (depreciation)		14,848,012
Net realized and unrealized gain		20,833,807
Net increase in net assets resulting from operations	$	20,300,362

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

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

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(533,445	)	$	(453,701	)
Net realized gain on investments		5,985,795			17,941,754
Net change in unrealized appreciation (depreciation) on investments		14,848,012			(22,350,953	)
Net increase (decrease) in net assets resulting from operations		20,300,362			(4,862,900	)
Distributions to shareholders:
A-Class		(347,944	)		(584,364	)
C-Class		(375,991	)		(524,964	)
H-Class		(942,938	)		(3,413,894	)
Total distributions to shareholders		(1,666,873	)		(4,523,222	)
Capital share transactions:
Proceeds from sale of shares
A-Class		3,027,956			2,672,682
C-Class		3,741,861			2,747,902
H-Class		89,764,435			238,586,181
Distributions reinvested
A-Class		342,450			579,514
C-Class		373,797			521,531
H-Class		923,354			3,389,391
Cost of shares redeemed
A-Class		(5,118,294	)		(9,216,614	)
C-Class		(6,297,073	)		(5,821,318	)
H-Class		(105,900,746	)		(292,741,951	)
Net decrease from capital share transactions		(19,142,260	)		(59,282,682	)
Net decrease in net assets		(508,771	)		(68,668,804	)
Net assets:
Beginning of year		39,686,887			108,355,691
End of year	$	39,178,116		$	39,686,887
Capital share activity:
Shares sold
A-Class		39,994			39,759
C-Class		65,460			46,633
H-Class		1,203,307			3,527,207
Shares issued from reinvestment of distributions
A-Class		4,216			8,697
C-Class		5,402			9,061
H-Class		11,370			50,884
Shares redeemed
A-Class		(70,507	)		(141,129	)
C-Class		(98,665	)		(104,655	)
H-Class		(1,433,175	)		(4,350,136	)
Net decrease in shares		(272,598	)		(913,679	)

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	53.91		$	65.86		$	66.50		$	57.84		$	51.74
Income (loss) from investment operations:
Net investment income (loss)a		(.80	)		(.29	)		(.50	)		(.36	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		34.07			(8.09	)		3.42			12.57			6.56
Total from investment operations		33.27			(8.38	)		2.92			12.21			6.12
Less distributions from:
Net realized gains		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Total distributions		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Net asset value, end of period	$	84.03		$	53.91		$	65.86		$	66.50		$	57.84
Total Returnb		61.92	%		(13.76	%)		4.88	%		21.39	%		11.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,724		$	7,656		$	15,456		$	17,254		$	15,575
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(0.43	%)		(0.75	%)		(0.56	%)		(0.82	%)
Total expenses		1.60	%		1.63	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		240	%		282	%		177	%		215	%		184	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	46.47		$	57.65		$	59.10		$	52.13		$	46.99
Income (loss) from investment operations:
Net investment income (loss)a		(1.16	)		(.69	)		(.90	)		(.75	)		(.77	)
Net gain (loss) on investments (realized and unrealized)		29.26			(6.92	)		3.01			11.27			5.93
Total from investment operations		28.10			(7.61	)		2.11			10.52			5.16
Less distributions from:
Net realized gains		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Total distributions		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Net asset value, end of period	$	71.42		$	46.47		$	57.65		$	59.10		$	52.13
Total Returnb		60.69	%		(14.40	%)		4.09	%		20.50	%		10.99	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,314		$	6,050		$	10,329		$	13,442		$	10,951
Ratios to average net assets:
Net investment income (loss)		(1.80	%)		(1.18	%)		(1.52	%)		(1.32	%)		(1.57	%)
Total expenses		2.35	%		2.38	%		2.36	%		2.28	%		2.27	%
Portfolio turnover rate		240	%		282	%		177	%		215	%		184	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	53.89		$	65.84		$	66.49		$	57.83		$	51.73
Income (loss) from investment operations:
Net investment income (loss)a		(.77	)		(.29	)		(.53	)		(.38	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		34.03			(8.09	)		3.44			12.59			6.56
Total from investment operations		33.26			(8.38	)		2.91			12.21			6.12
Less distributions from:
Net realized gains		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Total distributions		(3.15	)		(3.57	)		(3.56	)		(3.55	)		(.02	)
Net asset value, end of period	$	84.00		$	53.89		$	65.84		$	66.49		$	57.83
Total Return		61.92	%		(13.77	%)		4.86	%		21.40	%		11.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,141		$	25,981		$	82,570		$	109,644		$	78,673
Ratios to average net assets:
Net investment income (loss)		(1.03	%)		(0.44	%)		(0.79	%)		(0.59	%)		(0.81	%)
Total expenses		1.61	%		1.63	%		1.61	%		1.53	%		1.52	%
Portfolio turnover rate		240	%		282	%		177	%		215	%		184	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P 500^® PURE VALUE FUND

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

For the year ended March 31, 2021, S&P 500^® Pure Value Fund H-Class returned 85.15%, compared with a return of 89.80% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Financials, Consumer Discretionary, and Energy.

The holdings contributing the most to the return of the underlying index for the period were General Motors Co., Gap, Inc., and Ford Motor Co. The holdings detracting the most from return were Perrigo Company plc, Macy’s, Inc., and Walmart, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Unum Group	2.2%
Berkshire Hathaway, Inc. — Class B	2.1%
Lumen Technologies, Inc.	2.0%
HollyFrontier Corp.	2.0%
Lincoln National Corp.	1.9%
MetLife, Inc.	1.8%
Ford Motor Co.	1.8%
Prudential Financial, Inc.	1.7%
Valero Energy Corp.	1.7%
Hartford Financial Services Group, Inc.	1.6%
Top Ten Total	18.8%
“Ten Largest Holdings” excludes any temporary cash investments.

18 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	85.10%	8.79%	9.57%
A-Class Shares with sales charge‡	76.30%	7.74%	9.04%
C-Class Shares	83.72%	7.98%	8.76%
C-Class Shares with CDSC§	82.72%	7.98%	8.76%
H-Class Shares	85.15%	8.80%	9.58%
S&P 500 Pure Value Index	89.80%	10.66%	11.66%

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

THE RYDEX FUNDS ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Financial - 43.4%
Unum Group		45,503	$	1,266,349
Berkshire Hathaway, Inc. — Class B*		4,730		1,208,373
Lincoln National Corp.		17,472		1,087,981
MetLife, Inc.		17,325		1,053,187
Prudential Financial, Inc.		10,513		957,734
Hartford Financial Services Group, Inc.		14,176		946,815
Invesco Ltd.		34,930		880,935
Principal Financial Group, Inc.		12,859		771,026
People’s United Financial, Inc.		38,918		696,632
Citigroup, Inc.		9,356		680,649
Wells Fargo & Co.		16,477		643,756
Capital One Financial Corp.		4,895		622,791
Citizens Financial Group, Inc.		13,923		614,700
Fifth Third Bancorp		16,328		611,484
Allstate Corp.		5,221		599,893
American International Group, Inc.		12,852		593,891
Loews Corp.		11,570		593,310
Everest Re Group Ltd.		2,363		585,575
Bank of New York Mellon Corp.		12,033		569,040
Comerica, Inc.		7,866		564,307
Aflac, Inc.		10,885		557,094
Zions Bancorp North America		9,778		537,399
Goldman Sachs Group, Inc.		1,620		529,740
Assurant, Inc.		3,614		512,357
Regions Financial Corp.		24,331		502,678
Travelers Companies, Inc.		3,261		490,454
KeyCorp		24,362		486,753
Bank of America Corp.		12,288		475,423
Franklin Resources, Inc.		15,430		456,728
M&T Bank Corp.		2,907		440,730
State Street Corp.		5,122		430,299
Truist Financial Corp.		7,074		412,556
Cincinnati Financial Corp.		3,770		388,649
Morgan Stanley		4,963		385,427
Kimco Realty Corp. REIT		18,140		340,125
Huntington Bancshares, Inc.		21,099		331,676
Globe Life, Inc.		3,310		319,845
Chubb Ltd.		1,880		296,984
PNC Financial Services Group, Inc.		1,670		292,935
Raymond James Financial, Inc.		2,286		280,172
CBRE Group, Inc. — Class A*		3,300		261,063
U.S. Bancorp		4,420		244,470
Synchrony Financial		5,450		221,597
JPMorgan Chase & Co.		1,400		213,122
Total Financial				24,956,704
Consumer, Non-cyclical - 16.2%
CVS Health Corp.		11,279		848,519
Archer-Daniels-Midland Co.		13,783		785,631
Centene Corp.*		12,220		780,980
Kroger Co.		20,521		738,551
Molson Coors Beverage Co. — Class B*		13,462		688,581
Cigna Corp.		2,830		684,124
Tyson Foods, Inc. — Class A		8,460		628,578
McKesson Corp.		2,968		578,879
Viatris, Inc.*		40,184		561,370
Kraft Heinz Co.		13,298		531,920
Cardinal Health, Inc.		8,170		496,328
Anthem, Inc.		1,150		412,793
Corteva, Inc.		6,713		312,960
Universal Health Services, Inc. — Class B		2,320		309,465
Perrigo Company plc		6,890		278,838
J M Smucker Co.		2,036		257,615
AmerisourceBergen Corp. — Class A		1,855		219,020
Henry Schein, Inc.*		2,900		200,796
Total Consumer, Non-cyclical				9,314,948
Consumer, Cyclical - 11.1%
Ford Motor Co.*		84,664		1,037,134
Walgreens Boots Alliance, Inc.		16,166		887,513
General Motors Co.*		13,060		750,428
Mohawk Industries, Inc.*		3,600		692,316
Lennar Corp. — Class A		5,497		556,461
Whirlpool Corp.		1,699		374,375
Hanesbrands, Inc.		17,130		336,947
LKQ Corp.*		7,710		326,364
BorgWarner, Inc.		6,979		323,546
CarMax, Inc.*		2,140		283,892
PVH Corp.*		2,467		260,762
Gap, Inc.		7,179		213,791
Advance Auto Parts, Inc.		1,150		211,014
Walmart, Inc.		1,120		152,130
Total Consumer, Cyclical				6,406,673
Energy - 9.3%
HollyFrontier Corp.		31,583		1,130,040
Valero Energy Corp.		13,337		954,929
Exxon Mobil Corp.		13,476		752,365
Phillips 66		8,830		719,998
Marathon Petroleum Corp.		8,317		444,876
Marathon Oil Corp.		35,650		380,742
Kinder Morgan, Inc.		18,853		313,902
Pioneer Natural Resources Co.		1,530		242,995
Chevron Corp.		2,041		213,877
EOG Resources, Inc.		2,940		213,238
Total Energy				5,366,962
Communications - 6.6%
Lumen Technologies, Inc.		84,880		1,133,148
ViacomCBS, Inc. — Class B		11,100		500,610
AT&T, Inc.		12,577		380,706
DISH Network Corp. — Class A*		8,586		310,813
Juniper Networks, Inc.		10,477		265,382
Discovery, Inc. — Class C*		7,050		260,075
Fox Corp. — Class A		6,668		240,781
Interpublic Group of Companies, Inc.		7,070		206,444
News Corp. — Class A		7,117		180,985
Discovery, Inc. — Class A*,1		3,660		159,064
Fox Corp. — Class B		3,070		107,235
News Corp. — Class B		2,208		51,800
Total Communications				3,797,043

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P 500® PURE VALUE FUND

	Shares		Value
Industrial - 4.4%
Westrock Co.		11,640	$	605,862
Textron, Inc.		6,279		352,126
Huntington Ingalls Industries, Inc.		1,670		343,769
Howmet Aerospace, Inc.*		9,800		314,874
Raytheon Technologies Corp.		3,430		265,036
Westinghouse Air Brake Technologies Corp.		3,060		242,230
General Dynamics Corp.		1,150		208,794
General Electric Co.		14,650		192,355
Total Industrial				2,525,046
Technology - 3.5%
Hewlett Packard Enterprise Co.		59,497		936,483
Western Digital Corp.		7,060		471,255
HP, Inc.		12,122		384,874
DXC Technology Co.*		7,028		219,695
Total Technology				2,012,307
Utilities - 2.8%
Exelon Corp.		9,324		407,832
Consolidated Edison, Inc.		3,210		240,108
Evergy, Inc.		3,590		213,713
FirstEnergy Corp.		5,940		206,058
Pinnacle West Capital Corp.		2,260		183,851
PPL Corp.		6,060		174,770
Edison International		2,530		148,258
Total Utilities				1,574,590
Basic Materials - 2.0%
Nucor Corp.		6,341		508,992
Mosaic Co.		14,245		450,285
International Paper Co.		3,644		197,031
Total Basic Materials				1,156,308
Total Common Stocks
(Cost $50,932,241)				57,110,581
	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	192,183		192,183
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		87,376		87,376
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		79,744		79,744
Total Repurchase Agreements
(Cost $359,303)				359,303
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		119,794		119,794
Total Securities Lending Collateral
(Cost $119,794)				119,794
Total Investments - 100.1%
(Cost $51,411,338)			$	57,589,678
Other Assets & Liabilities, net - (0.1)%				(62,595	)
Total Net Assets - 100.0%			$	57,527,083

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P 500® PURE VALUE FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	57,110,581	$	—	$	—	$	57,110,581
Repurchase Agreements		—		359,303		—		359,303
Securities Lending Collateral		119,794		—		—		119,794
Total Assets	$	57,230,375	$	359,303	$	—	$	57,589,678

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

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $116,994 of securities loaned (cost $51,052,035)	$	57,230,375
Repurchase agreements, at value (cost $359,303)		359,303
Cash		2,345
Receivables:
Fund shares sold		117,093
Dividends		51,014
Securities lending income		1
Total assets		57,760,131
Liabilities:
Payable for:
Return of securities lending collateral		119,794
Management fees		31,687
Distribution and service fees		11,467
Transfer agent and administrative fees		11,365
Fund shares redeemed		7,649
Portfolio accounting fees		4,225
Trustees’ fees*		647
Miscellaneous		46,214
Total liabilities		233,048
Commitments and contingent liabilities (Note 12)		—
Net assets	$	57,527,083
Net assets consist of:
Paid in capital	$	60,570,333
Total distributable earnings (loss)		(3,043,250	)
Net assets	$	57,527,083
A-Class:
Net assets	$	2,925,205
Capital shares outstanding		32,781
Net asset value per share	$	89.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	93.68
C-Class:
Net assets	$	1,805,228
Capital shares outstanding		24,169
Net asset value per share	$	74.69
H-Class:
Net assets	$	52,796,650
Capital shares outstanding		588,983
Net asset value per share	$	89.64

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	532,027
Interest		54
Income from securities lending, net		1,658
Total investment income		533,739
Expenses:
Management fees		146,633
Distribution and service fees:
A-Class		4,813
C-Class		13,085
H-Class		40,793
Transfer agent and administrative fees		54,370
Portfolio accounting fees		19,553
Professional fees		8,261
Trustees’ fees*		3,449
Custodian fees		2,944
Line of credit fees		215
Miscellaneous		24,595
Total expenses		318,711
Net investment income		215,028
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,593,666	)
Net realized loss		(3,593,666	)
Net change in unrealized appreciation (depreciation) on:
Investments		9,801,986
Net change in unrealized appreciation (depreciation)		9,801,986
Net realized and unrealized gain		6,208,320
Net increase in net assets resulting from operations	$	6,423,348

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

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

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	215,028		$	504,854
Net realized gain (loss) on investments		(3,593,666	)		1,699,354
Net change in unrealized appreciation (depreciation) on investments		9,801,986			(8,983,225	)
Net increase (decrease) in net assets resulting from operations		6,423,348			(6,779,017	)
Distributions to shareholders:
A-Class		(18,692	)		(35,656	)
C-Class		(15,043	)		(34,327	)
H-Class		(268,123	)		(345,333	)
Total distributions to shareholders		(301,858	)		(415,316	)
Capital share transactions:
Proceeds from sale of shares
A-Class		874,138			1,349,084
C-Class		4,340,519			8,884,403
H-Class		277,399,114			97,623,692
Distributions reinvested
A-Class		18,484			34,706
C-Class		14,913			32,664
H-Class		262,826			344,762
Cost of shares redeemed
A-Class		(835,197	)		(2,191,323	)
C-Class		(4,645,403	)		(9,179,384	)
H-Class		(234,482,610	)		(130,456,068	)
Net increase (decrease) from capital share transactions		42,946,784			(33,557,464	)
Net increase (decrease) in net assets		49,068,274			(40,751,797	)
Net assets:
Beginning of year		8,458,809			49,210,606
End of year	$	57,527,083		$	8,458,809
Capital share activity:
Shares sold
A-Class		10,614			17,823
C-Class		72,449			137,298
H-Class		3,827,657			1,239,820
Shares issued from reinvestment of distributions
A-Class		247			428
C-Class		238			475
H-Class		3,496			4,229
Shares redeemed
A-Class		(13,352	)		(29,223	)
C-Class		(80,649	)		(141,719	)
H-Class		(3,353,123	)		(1,700,575	)
Net increase (decrease) in shares		467,577			(471,444	)

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	48.65		$	76.07		$	83.46		$	76.42		$	66.03
Income (loss) from investment operations:
Net investment income (loss)a		.70			1.02			.85			.60			.55
Net gain (loss) on investments (realized and unrealized)		40.58			(27.62	)		(2.17	)		7.41			10.52
Total from investment operations		41.28			(26.60	)		(1.32	)		8.01			11.07
Less distributions from:
Net investment income		(.70	)		(.82	)		(1.14	)		(.27	)		(.68	)
Net realized gains		—			—			(4.93	)		(.70	)		—
Total distributions		(.70	)		(.82	)		(6.07	)		(.97	)		(.68	)
Net asset value, end of period	$	89.23		$	48.65		$	76.07		$	83.46		$	76.42
Total Returnb		85.10	%		(35.38	%)		(1.26	%)		10.48	%		16.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,925		$	1,716		$	3,518		$	6,108		$	6,686
Ratios to average net assets:
Net investment income (loss)		1.06	%		1.32	%		1.01	%		0.74	%		0.79	%
Total expenses		1.60	%		1.63	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		1,207	%		254	%		190	%		252	%		321	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	41.11		$	64.87		$	72.64		$	67.13		$	58.51
Income (loss) from investment operations:
Net investment income (loss)a		.18			.17			.12			(.03	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		34.10			(23.11	)		(1.82	)		6.51			9.31
Total from investment operations		34.28			(22.94	)		(1.70	)		6.48			9.30
Less distributions from:
Net investment income		(.70	)		(.82	)		(1.14	)		(.27	)		(.68	)
Net realized gains		—			—			(4.93	)		(.70	)		—
Total distributions		(.70	)		(.82	)		(6.07	)		(.97	)		(.68	)
Net asset value, end of period	$	74.69		$	41.11		$	64.87		$	72.64		$	67.13
Total Returnb		83.72	%		(35.87	%)		(2.00	%)		9.66	%		15.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,805		$	1,321		$	2,340		$	4,058		$	3,913
Ratios to average net assets:
Net investment income (loss)		0.32	%		0.26	%		0.17	%		(0.05	%)		(0.01	%)
Total expenses		2.35	%		2.38	%		2.36	%		2.28	%		2.28	%
Portfolio turnover rate		1,207	%		254	%		190	%		252	%		321	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	48.87		$	76.39		$	83.78		$	76.71		$	66.28
Income (loss) from investment operations:
Net investment income (loss)a		.84			.96			.81			.57			.59
Net gain (loss) on investments (realized and unrealized)		40.63			(27.66	)		(2.13	)		7.47			10.52
Total from investment operations		41.47			(26.70	)		(1.32	)		8.04			11.11
Less distributions from:
Net investment income		(.70	)		(.82	)		(1.14	)		(.27	)		(.68	)
Net realized gains		—			—			(4.93	)		(.70	)		—
Total distributions		(.70	)		(.82	)		(6.07	)		(.97	)		(.68	)
Net asset value, end of period	$	89.64		$	48.87		$	76.39		$	83.78		$	76.71
Total Return		85.15	%		(35.38	%)		(1.25	%)		10.48	%		16.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	52,797		$	5,422		$	43,352		$	59,536		$	55,613
Ratios to average net assets:
Net investment income (loss)		1.17	%		1.22	%		0.97	%		0.70	%		0.83	%
Total expenses		1.58	%		1.63	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		1,207	%		254	%		190	%		252	%		321	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Share split — Per share amounts for the year ended March 31, 2017 have been restated to reflect a 2:1 share split effective October 28, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P MIDCAP 400^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Growth Index (the “underlying index”).

For the year ended March 31, 2021, S&P MidCap 400^® Pure Growth Fund H-Class returned 93.53%, compared with a return of 96.96% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Information Technology, and Industrials.

The holdings contributing the most to the return of the underlying index for the period were SolarEdge Technologies, Inc., RH, and Generac Holdings Inc. The holdings detracting the most from return were Quidel Corp., Kinsale Capital Group, Inc., and Grubhub, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
RH	2.6%
Boston Beer Company, Inc. — Class A	2.6%
Scotts Miracle-Gro Co. — Class A	2.4%
STAAR Surgical Co.	2.3%
Brighthouse Financial, Inc.	2.2%
Repligen Corp.	2.2%
SolarEdge Technologies, Inc.	2.1%
Medpace Holdings, Inc.	2.1%
Lithia Motors, Inc. — Class A	2.1%
SLM Corp.	2.0%
Top Ten Total	22.6%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 27

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	93.55%	11.81%	9.20%
A-Class Shares with sales charge‡	84.38%	10.72%	8.67%
C-Class Shares	92.12%	10.97%	8.38%
C-Class Shares with CDSC§	91.12%	10.97%	8.38%
H-Class Shares	93.53%	11.81%	9.20%
S&P MidCap 400 Pure Growth Index	96.96%	13.51%	10.67%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

28 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P MIDCAP 400® PURE GROWTH FUND

	Shares			Value
COMMON STOCKS† - 99.9%
Consumer, Non-cyclical - 36.6%
Boston Beer Company, Inc. — Class A*		1,420		$	1,712,918
STAAR Surgical Co.*		14,660			1,545,311
Repligen Corp.*		7,340			1,426,969
Medpace Holdings, Inc.*		8,350			1,369,817
Emergent BioSolutions, Inc.*		12,290			1,141,864
Darling Ingredients, Inc.*		14,430			1,061,759
Charles River Laboratories International, Inc.*		3,570			1,034,693
Paylocity Holding Corp.*		5,700			1,025,031
Syneos Health, Inc.*		12,860			975,431
Quidel Corp.*		7,440			951,799
Halozyme Therapeutics, Inc.*		21,480			895,501
Avanos Medical, Inc.*		19,900			870,426
Penumbra, Inc.*		3,160			855,033
Exelixis, Inc.*		37,050			836,959
Amedisys, Inc.*		2,820			746,708
CoreLogic, Inc.		9,090			720,382
HealthEquity, Inc.*		10,250			697,000
ASGN, Inc.*		7,090			676,670
Bio-Techne Corp.		1,730			660,739
Masimo Corp.*		2,689			617,556
PRA Health Sciences, Inc.*		3,981			610,407
Helen of Troy Ltd.*		2,870			604,594
FTI Consulting, Inc.*		4,080			571,649
Neurocrine Biosciences, Inc.*		5,220			507,645
LHC Group, Inc.*		2,300			439,783
Arrowhead Pharmaceuticals, Inc.*		6,580			436,320
Insperity, Inc.		5,160			432,098
Jazz Pharmaceuticals plc*		2,270			373,120
Chemed Corp.		651			299,343
Total Consumer, Non-cyclical					24,097,525
Consumer, Cyclical - 21.6%
RH*		2,920			1,742,072
Scotts Miracle-Gro Co. — Class A		6,510			1,594,755
Lithia Motors, Inc. — Class A		3,490			1,361,414
Williams-Sonoma, Inc.		7,180			1,286,656
YETI Holdings, Inc.*		15,210			1,098,314
Wingstop, Inc.		8,330			1,059,326
Fox Factory Holding Corp.*		8,020			1,019,021
Churchill Downs, Inc.		4,341			987,230
Ollie’s Bargain Outlet Holdings, Inc.*		10,510			914,370
Deckers Outdoor Corp.*		2,610			862,396
Five Below, Inc.*		3,760			717,370
Tempur Sealy International, Inc.		14,410			526,830
Texas Roadhouse, Inc. — Class A*		3,820			366,491
Mattel, Inc.*		18,100			360,552
Jack in the Box, Inc.		2,820			309,580
Total Consumer, Cyclical					14,206,377
Industrial - 14.4%
TopBuild Corp.*		5,890			1,233,543
II-VI, Inc.*		17,740			1,212,884
Axon Enterprise, Inc.*		8,510			1,211,994
Trex Company, Inc.*		13,190			1,207,412
Knight-Swift Transportation Holdings, Inc.		17,740			853,117
Timken Co.		7,210			585,236
Simpson Manufacturing Company, Inc.		5,090	��		527,986
Tetra Tech, Inc.		3,570			484,520
Toro Co.		3,820			393,995
Cognex Corp.		4,720			391,713
Graco, Inc.		5,370			384,599
Mercury Systems, Inc.*		5,350			377,977
Universal Display Corp.		1,460			345,684
Lincoln Electric Holdings, Inc.		2,450			301,203
Total Industrial					9,511,863
Technology - 8.5%
Brooks Automation, Inc.		15,800			1,290,070
CMC Materials, Inc.		4,860			859,199
Sailpoint Technologies Holdings, Inc.*		16,440			832,522
PTC, Inc.*		4,440			611,166
Fair Isaac Corp.*		1,201			583,746
Qualys, Inc.*		5,250			550,095
Lumentum Holdings, Inc.*		5,730			523,435
MKS Instruments, Inc.		2,040			378,257
Total Technology					5,628,490
Financial - 7.9%
Brighthouse Financial, Inc.*		33,460			1,480,605
SLM Corp.		73,450			1,319,897
Kinsale Capital Group, Inc.		6,120			1,008,576
Brown & Brown, Inc.		10,250			468,528
Primerica, Inc.		3,161			467,259
Interactive Brokers Group, Inc. — Class A		6,110			446,274
Total Financial					5,191,139
Energy - 7.0%
SolarEdge Technologies, Inc.*		4,870			1,399,833
Sunrun, Inc.*		18,470			1,117,066
Antero Midstream Corp.		89,040			804,031
First Solar, Inc.*		9,130			797,049
CNX Resources Corp.*		31,610			464,667
Total Energy					4,582,646
Communications - 2.9%
Grubhub, Inc.*		14,160			849,600
Cable One, Inc.		266			486,344
FactSet Research Systems, Inc.		1,080			333,277
New York Times Co. — Class A		5,030			254,619
Total Communications					1,923,840
Basic Materials - 1.0%
Cleveland-Cliffs, Inc.*		33,300			669,663
Total Common Stocks
(Cost $48,861,529)					65,811,543

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P MIDCAP 400® PURE GROWTH FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.9%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	306,408	$	306,408
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		139,308		139,308
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		127,141		127,141
Total Repurchase Agreements
(Cost $572,857)				572,857
Total Investments - 100.8%
(Cost $49,434,386)			$	66,384,400
Other Assets & Liabilities, net - (0.8)%				(508,451	)
Total Net Assets - 100.0%			$	65,875,949

*	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 6.
	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 March 31, 2021 (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	$	65,811,543	$	—	$	—	$	65,811,543
Repurchase Agreements		—		572,857		—		572,857
Total Assets	$	65,811,543	$	572,857	$	—	$	66,384,400

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $48,861,529)	$	65,811,543
Repurchase agreements, at value (cost $572,857)		572,857
Receivables:
Dividends		4,656
Fund shares sold		2,300
Securities lending income		1
Total assets		66,391,357
Liabilities:
Payable for:
Fund shares redeemed		364,890
Management fees		40,989
Distribution and service fees		16,395
Transfer agent and administrative fees		14,701
Portfolio accounting fees		5,465
Trustees’ fees*		998
Miscellaneous		71,970
Total liabilities		515,408
Commitments and contingent liabilities (Note 12)		—
Net assets	$	65,875,949
Net assets consist of:
Paid in capital	$	45,363,990
Total distributable earnings (loss)		20,511,959
Net assets	$	65,875,949
A-Class:
Net assets	$	11,272,219
Capital shares outstanding		174,350
Net asset value per share	$	64.65
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.87
C-Class:
Net assets	$	4,004,680
Capital shares outstanding		74,985
Net asset value per share	$	53.41
H-Class:
Net assets	$	50,599,050
Capital shares outstanding		781,545
Net asset value per share	$	64.74

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	336,796
Interest		197
Income from securities lending, net		2,980
Total investment income		339,973
Expenses:
Management fees		480,358
Distribution and service fees:
A-Class		19,339
C-Class		56,274
H-Class		126,711
Transfer agent and administrative fees		178,388
Portfolio accounting fees		64,056
Registration fees		53,621
Professional fees		28,122
Trustees’ fees*		11,167
Custodian fees		9,099
Line of credit fees		117
Miscellaneous		35,745
Total expenses		1,062,997
Net investment loss		(723,024	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		13,406,949
Net realized gain		13,406,949
Net change in unrealized appreciation (depreciation) on:
Investments		23,828,110
Net change in unrealized appreciation (depreciation)		23,828,110
Net realized and unrealized gain		37,235,059
Net increase in net assets resulting from operations	$	36,512,035

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

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(723,024	)	$	(417,707	)
Net realized gain on investments		13,406,949			6,126,223
Net change in unrealized appreciation (depreciation) on investments		23,828,110			(18,577,132	)
Net increase (decrease) in net assets resulting from operations		36,512,035			(12,868,616	)
Distributions to shareholders:
A-Class		(92,247	)		—
C-Class		(79,217	)		—
H-Class		(619,526	)		—
Total distributions to shareholders		(790,990	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		5,361,892			2,320,669
C-Class		2,087,074			734,313
H-Class		219,371,534			57,910,692
Distributions reinvested
A-Class		90,297			—
C-Class		77,936			—
H-Class		615,438			—
Cost of shares redeemed
A-Class		(3,203,286	)		(6,586,092	)
C-Class		(5,492,423	)		(3,685,518	)
H-Class		(225,113,804	)		(68,683,226	)
Net decrease from capital share transactions		(6,205,342	)		(17,989,162	)
Net increase (decrease) in net assets		29,515,703			(30,857,778	)
Net assets:
Beginning of year		36,360,246			67,218,024
End of year	$	65,875,949		$	36,360,246
Capital share activity:
Shares sold
A-Class		101,948			52,212
C-Class		49,253			19,823
H-Class		4,529,915			1,345,912
Shares issued from reinvestment of distributions
A-Class		1,559			—
C-Class		1,626			—
H-Class		10,613			—
Shares redeemed
A-Class		(64,073	)		(150,079	)
C-Class		(116,347	)		(102,639	)
H-Class		(4,582,472	)		(1,565,661	)
Net decrease in shares		(67,978	)		(400,432	)

32 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	33.77		$	45.88		$	54.96		$	50.84		$	46.51
Income (loss) from investment operations:
Net investment income (loss)a		(.57	)		(.32	)		(.30	)		(.41	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		32.09			(11.79	)		(2.39	)		8.09			5.41
Total from investment operations		31.52			(12.11	)		(2.69	)		7.68			5.07
Less distributions from:
Net realized gains		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Total distributions		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Net asset value, end of period	$	64.65		$	33.77		$	45.88		$	54.96		$	50.84
Total Returnb		93.55	%		(26.39	%)		(4.19	%)		15.33	%		10.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,272		$	4,556		$	10,681		$	11,327		$	16,269
Ratios to average net assets:
Net investment income (loss)		(1.08	%)		(0.72	%)		(0.59	%)		(0.77	%)		(0.71	%)
Total expenses		1.59	%		1.63	%		1.62	%		1.53	%		1.52	%
Portfolio turnover rate		407	%		190	%		165	%		160	%		127	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	28.17		$	38.56		$	47.66		$	44.83		$	41.41
Income (loss) from investment operations:
Net investment income (loss)a		(.78	)		(.54	)		(.62	)		(.71	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		26.66			(9.85	)		(2.09	)		7.10			4.77
Total from investment operations		25.88			(10.39	)		(2.71	)		6.39			4.16
Less distributions from:
Net realized gains		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Total distributions		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Net asset value, end of period	$	53.41		$	28.17		$	38.56		$	47.66		$	44.83
Total Returnb		92.12	%		(26.95	%)		(4.90	%)		14.47	%		10.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,005		$	3,956		$	8,609		$	14,046		$	15,049
Ratios to average net assets:
Net investment income (loss)		(1.82	%)		(1.47	%)		(1.37	%)		(1.49	%)		(1.44	%)
Total expenses		2.35	%		2.38	%		2.36	%		2.28	%		2.27	%
Portfolio turnover rate		407	%		190	%		165	%		160	%		127	%

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	33.82		$	45.94		$	55.03		$	50.89		$	46.56
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		(.31	)		(.34	)		(.40	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		32.12			(11.81	)		(2.36	)		8.10			5.40
Total from investment operations		31.56			(12.12	)		(2.70	)		7.70			5.07
Less distributions from:
Net realized gains		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Total distributions		(.64	)		—			(6.39	)		(3.56	)		(.74	)
Net asset value, end of period	$	64.74		$	33.82		$	45.94		$	55.03		$	50.89
Total Return		93.53	%		(26.38	%)		(4.19	%)		15.32	%		10.99	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	50,599		$	27,848		$	47,929		$	73,714		$	78,373
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(0.71	%)		(0.64	%)		(0.74	%)		(0.68	%)
Total expenses		1.59	%		1.63	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		407	%		190	%		165	%		160	%		127	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P MIDCAP 400^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Value Index (the “underlying index”).

For the year ended March 31, 2021, S&P MidCap 400^® Pure Value Fund H-Class returned 129.92%, compared with a return of 136.36% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Industrials, and Financials.

The holdings contributing the most to the return of the underlying index for the period were Penn National Gaming, Inc., CNX Resources Corp., and SYNNEX Corp. The holdings detracting the most from return were Kemper Corp., Concentrix Corp., and SL Green Realty Corp.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Telephone & Data Systems, Inc.	2.2%
Avnet, Inc.	2.2%
Commercial Metals Co.	2.0%
Kohl’s Corp.	2.0%
World Fuel Services Corp.	2.0%
Domtar Corp.	1.9%
Xerox Holdings Corp.	1.8%
AutoNation, Inc.	1.7%
Taylor Morrison Home Corp. — Class A	1.7%
Reinsurance Group of America, Inc. — Class A	1.7%
Top Ten Total	19.2%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 35

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	129.91%	11.72%	9.00%
A-Class Shares with sales charge‡	119.00%	10.63%	8.47%
C-Class Shares	128.24%	10.89%	8.18%
C-Class Shares with CDSC§	127.24%	10.89%	8.18%
H-Class Shares	129.92%	11.71%	8.99%
S&P MidCap 400 Pure Value Index	136.36%	14.15%	11.54%

*	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 S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

36 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.2%
Financial - 40.0%
Reinsurance Group of America, Inc. — Class A		20,712	$	2,610,748
Navient Corp.		173,718		2,485,905
Jefferies Financial Group, Inc.		74,861		2,253,316
Genworth Financial, Inc. — Class A*		675,569		2,242,889
CNO Financial Group, Inc.		85,845		2,085,175
Old Republic International Corp.		89,997		1,965,534
Mercury General Corp.		31,762		1,931,447
Associated Banc-Corp.		86,404		1,843,861
FNB Corp.		139,868		1,776,324
Sterling Bancorp		69,729		1,605,162
Valley National Bancorp		114,558		1,574,027
First American Financial Corp.		27,650		1,566,373
Fulton Financial Corp.		90,370		1,539,001
Wintrust Financial Corp.		20,206		1,531,615
Jones Lang LaSalle, Inc.*		8,370		1,498,565
New York Community Bancorp, Inc.		117,970		1,488,781
First Horizon Corp.		82,776		1,399,742
Pinnacle Financial Partners, Inc.		15,366		1,362,349
Trustmark Corp.		39,780		1,338,995
Bank OZK		31,806		1,299,275
SL Green Realty Corp. REIT		18,450		1,291,316
Washington Federal, Inc.		41,890		1,290,212
Alleghany Corp.*		2,030		1,271,369
Kemper Corp.		15,835		1,262,366
United Bankshares, Inc.		31,330		1,208,711
Cathay General Bancorp		29,510		1,203,418
Hancock Whitney Corp.		28,602		1,201,570
Hanover Insurance Group, Inc.		9,200		1,191,032
Alliance Data Systems Corp.		10,398		1,165,512
Synovus Financial Corp.		25,210		1,153,357
MGIC Investment Corp.		83,180		1,152,043
TCF Financial Corp.		24,531		1,139,710
International Bancshares Corp.		24,130		1,120,115
Macerich Co. REIT1		95,020		1,111,734
American Financial Group, Inc.		9,690		1,105,629
BancorpSouth Bank		32,420		1,053,002
Prosperity Bancshares, Inc.		12,280		919,649
Webster Financial Corp.		16,190		892,231
East West Bancorp, Inc.		11,860		875,268
Pebblebrook Hotel Trust REIT		34,196		830,621
Service Properties Trust REIT		68,570		813,240
UMB Financial Corp.		8,400		775,572
CIT Group, Inc.		14,510		747,410
Texas Capital Bancshares, Inc.*		9,602		680,974
Selective Insurance Group, Inc.		8,810		639,077
Sabra Health Care REIT, Inc.		32,910		571,318
Cousins Properties, Inc. REIT		16,050		567,367
Janus Henderson Group plc		16,610		517,401
Total Financial				63,150,308
Consumer, Cyclical - 21.1%
Kohl’s Corp.		52,674		3,139,897
World Fuel Services Corp.		88,527		3,116,150
AutoNation, Inc.*		29,620		2,761,177
Taylor Morrison Home Corp. — Class A*		86,181		2,655,237
Dana, Inc.		95,947		2,334,391
Foot Locker, Inc.		38,424		2,161,350
Tri Pointe Homes, Inc.*		103,142		2,099,971
KB Home		42,670		1,985,435
Univar Solutions, Inc.*		90,912		1,958,244
Dick’s Sporting Goods, Inc.		22,885		1,742,693
Murphy USA, Inc.		11,620		1,679,787
Goodyear Tire & Rubber Co.*		80,237		1,409,764
Thor Industries, Inc.		10,021		1,350,229
BJ’s Wholesale Club Holdings, Inc.*		28,672		1,286,226
Lear Corp.		6,959		1,261,319
Adient plc*		21,387		945,305
Urban Outfitters, Inc.*		23,771		884,044
KAR Auction Services, Inc.*		34,215		513,225
Total Consumer, Cyclical				33,284,444
Industrial - 15.0%
Avnet, Inc.		82,339		3,417,892
SYNNEX Corp.		22,684		2,605,031
Arrow Electronics, Inc.*		21,772		2,412,773
Ryder System, Inc.		26,165		1,979,382
Jabil, Inc.		33,170		1,730,147
Greif, Inc. — Class A		24,572		1,400,604
MasTec, Inc.*		14,460		1,354,902
EMCOR Group, Inc.		11,300		1,267,408
MDU Resources Group, Inc.		34,450		1,088,964
Oshkosh Corp.		9,130		1,083,366
Dycom Industries, Inc.*		10,932		1,015,036
AECOM*		15,372		985,499
KBR, Inc.		20,060		770,104
Kirby Corp.*		11,520		694,426
Trinity Industries, Inc.		23,162		659,885
Colfax Corp.*		14,750		646,197
GATX Corp.		5,790		536,965
Total Industrial				23,648,581
Consumer, Non-cyclical - 8.8%
Graham Holdings Co. — Class B		4,430		2,491,609
Sprouts Farmers Market, Inc.*		78,144		2,080,193
Pilgrim’s Pride Corp.*		84,650		2,013,823
ManpowerGroup, Inc.		18,230		1,802,947
TreeHouse Foods, Inc.*		32,978		1,722,771
Adtalem Global Education, Inc.*		32,018		1,265,992
Tenet Healthcare Corp.*		23,501		1,222,052
Ingredion, Inc.		9,080		816,474
Strategic Education, Inc.		5,530		508,262
Total Consumer, Non-cyclical				13,924,123
Basic Materials - 6.5%
Commercial Metals Co.		104,639		3,227,067
Domtar Corp.		79,796		2,948,462
Reliance Steel & Aluminum Co.		7,860		1,196,999
United States Steel Corp.		41,009		1,073,205

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
Steel Dynamics, Inc.		21,060	$	1,069,006
Minerals Technologies, Inc.		10,244		771,578
Total Basic Materials				10,286,317
Communications - 3.2%
Telephone & Data Systems, Inc.		153,686		3,528,630
Viasat, Inc.*		32,800		1,576,696
Total Communications				5,105,326
Technology - 3.2%
Xerox Holdings Corp.		114,310		2,774,304
NCR Corp.*		31,180		1,183,281
NetScout Systems, Inc.*		37,556		1,057,577
Total Technology				5,015,162
Utilities - 1.4%
Southwest Gas Holdings, Inc.		12,870		884,298
UGI Corp.		16,820		689,788
ALLETE, Inc.		8,530		573,131
Total Utilities				2,147,217
Total Common Stocks
(Cost $133,754,998)				156,561,478
	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	544,253		544,253
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		247,444		247,444
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		225,831		225,831
Total Repurchase Agreements
(Cost $1,017,528)				1,017,528
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		744,237		744,237
Total Securities Lending Collateral
(Cost $744,237)				744,237
Total Investments - 100.3%
(Cost $135,516,763)			$	158,323,243
Other Assets & Liabilities, net - (0.3)%				(497,039	)
Total Net Assets - 100.0%			$	157,826,204

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	156,561,478	$	—	$	—	$	156,561,478
Repurchase Agreements		—		1,017,528		—		1,017,528
Securities Lending Collateral		744,237		—		—		744,237
Total Assets	$	157,305,715	$	1,017,528	$	—	$	158,323,243

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $710,822 of securities loaned (cost $134,499,235)	$	157,305,715
Repurchase agreements, at value (cost $1,017,528)		1,017,528
Receivables:
Fund shares sold		425,489
Dividends		162,540
Securities lending income		211
Total assets		158,911,483
Liabilities:
Payable for:
Return of securities lending collateral		744,237
Management fees		90,255
Transfer agent and administrative fees		32,372
Distribution and service fees		30,755
Fund shares redeemed		19,999
Portfolio accounting fees		12,034
Trustees’ fees*		2,165
Miscellaneous		153,462
Total liabilities		1,085,279
Commitments and contingent liabilities (Note 12)		—
Net assets	$	157,826,204
Net assets consist of:
Paid in capital	$	137,102,305
Total distributable earnings (loss)		20,723,899
Net assets	$	157,826,204
A-Class:
Net assets	$	1,867,500
Capital shares outstanding		26,617
Net asset value per share	$	70.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	73.66
C-Class:
Net assets	$	1,690,063
Capital shares outstanding		27,863
Net asset value per share	$	60.66
H-Class:
Net assets	$	154,268,641
Capital shares outstanding		2,202,292
Net asset value per share	$	70.05

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	766,241
Interest		89
Income from securities lending, net		10,860
Total investment income		777,190
Expenses:
Management fees		284,033
Distribution and service fees:
A-Class		2,537
C-Class		7,464
H-Class		90,275
Transfer agent and administrative fees		102,785
Portfolio accounting fees		37,873
Professional fees		9,377
Custodian fees		4,800
Trustees’ fees*		1,528
Line of credit fees		204
Miscellaneous		48,755
Total expenses		589,631
Net investment income		187,559
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,068,767
Net realized gain		1,068,767
Net change in unrealized appreciation (depreciation) on:
Investments		23,654,933
Net change in unrealized appreciation (depreciation)		23,654,933
Net realized and unrealized gain		24,723,700
Net increase in net assets resulting from operations	$	24,911,259

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	187,559		$	53,489
Net realized gain on investments		1,068,767			93,505
Net change in unrealized appreciation (depreciation) on investments		23,654,933			(2,510,628	)
Net increase (decrease) in net assets resulting from operations		24,911,259			(2,363,634	)
Distributions to shareholders:
A-Class		(543	)		—
C-Class		(537	)		—
H-Class		(27,686	)		—
Total distributions to shareholders		(28,766	)		—
Capital share transactions:
Proceeds from sale of shares
A-Class		1,287,192			2,888,368
C-Class		1,653,870			801,208
H-Class		284,454,714			151,848,364
Distributions reinvested
A-Class		492			—
C-Class		456			—
H-Class		27,659			—
Cost of shares redeemed
A-Class		(981,623	)		(2,875,817	)
C-Class		(1,321,500	)		(1,579,032	)
H-Class		(155,253,673	)		(159,616,730	)
Net increase (decrease) from capital share transactions		129,867,587			(8,533,639	)
Net increase (decrease) in net assets		154,750,080			(10,897,273	)
Net assets:
Beginning of year		3,076,124			13,973,397
End of year	$	157,826,204		$	3,076,124
Capital share activity:
Shares sold
A-Class		22,547			56,905
C-Class		32,691			22,021
H-Class		5,152,410			2,970,212
Shares issued from reinvestment of distributions
A-Class		9			—
C-Class		9			—
H-Class		486			—
Shares redeemed
A-Class		(20,488	)		(55,665	)
C-Class		(31,471	)		(36,039	)
H-Class		(3,003,708	)		(3,129,154	)
Net increase (decrease) in shares		2,152,485			(171,720	)

40 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.53		$	51.62		$	53.32		$	51.39		$	42.43
Income (loss) from investment operations:
Net investment income (loss)a		.20			.34			(.04	)		.02			(.08	)
Net gain (loss) on investments (realized and unrealized)		39.45			(21.43	)		(.17	)		2.89			9.14
Total from investment operations		39.65			(21.09	)		(.21	)		2.91			9.06
Less distributions from:
Net investment income		(.02	)		—			(.02	)		—			(.10	)
Net realized gains		—			—			(1.47	)		(.98	)		—
Total distributions		(.02	)		—			(1.49	)		(.98	)		(.10	)
Net asset value, end of period	$	70.16		$	30.53		$	51.62		$	53.32		$	51.39
Total Returnb		129.91	%		(40.86	%)		(0.16	%)		5.63	%		21.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,868		$	749		$	1,203		$	1,084		$	2,957
Ratios to average net assets:
Net investment income (loss)		0.41	%		0.68	%		(0.07	%)		0.03	%		(0.17	%)
Total expenses		1.59	%		1.63	%		1.62	%		1.54	%		1.53	%
Portfolio turnover rate		454	%		993	%		558	%		506	%		628	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	26.59		$	45.31		$	47.35		$	46.08		$	38.33
Income (loss) from investment operations:
Net investment income (loss)a		(.13	)		(.05	)		(.41	)		(.29	)		(.36	)
Net gain (loss) on investments (realized and unrealized)		34.22			(18.67	)		(.14	)		2.54			8.21
Total from investment operations		34.09			(18.72	)		(.55	)		2.25			7.85
Less distributions from:
Net investment income		(.02	)		—			(.02	)		—			(.10	)
Net realized gains		—			—			(1.47	)		(.98	)		—
Total distributions		(.02	)		—			(1.49	)		(.98	)		(.10	)
Net asset value, end of period	$	60.66		$	26.59		$	45.31		$	47.35		$	46.08
Total Returnb		128.24	%		(41.32	%)		(0.88	%)		4.82	%		20.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,690		$	708		$	1,842		$	1,859		$	3,266
Ratios to average net assets:
Net investment income (loss)		(0.30	%)		(0.12	%)		(0.85	%)		(0.62	%)		(0.85	%)
Total expenses		2.34	%		2.37	%		2.37	%		2.28	%		2.28	%
Portfolio turnover rate		454	%		993	%		558	%		506	%		628	%

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	30.48		$	51.54		$	53.25		$	51.33		$	42.38
Income (loss) from investment operations:
Net investment income (loss)a		.31			.20			(.07	)		.04			(.07	)
Net gain (loss) on investments (realized and unrealized)		39.28			(21.26	)		(.15	)		2.86			9.12
Total from investment operations		39.59			(21.06	)		(.22	)		2.90			9.05
Less distributions from:
Net investment income		(.02	)		—			(.02	)		—			(.10	)
Net realized gains		—			—			(1.47	)		(.98	)		—
Total distributions		(.02	)		—			(1.49	)		(.98	)		(.10	)
Net asset value, end of period	$	70.05		$	30.48		$	51.54		$	53.25		$	51.33
Total Return		129.92	%		(40.86	%)		(0.16	%)		5.58	%		21.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	154,269		$	1,618		$	10,928		$	7,888		$	21,143
Ratios to average net assets:
Net investment income (loss)		0.51	%		0.39	%		(0.13	%)		0.08	%		(0.16	%)
Total expenses		1.54	%		1.63	%		1.62	%		1.53	%		1.53	%
Portfolio turnover rate		454	%		993	%		558	%		506	%		628	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P SMALLCAP 600^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Growth Index (the “underlying index”).

For the year ended March 31, 2021, S&P SmallCap 600^® Pure Growth Fund H-Class return was 103.49%, compared with a return of 107.53% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Information Technology, and Health Care.

The holdings contributing the most to the return of the underlying index for the period were Sleep Number Corp., Kinsale Capital Group, Inc., and LGI Homes, Inc. The holdings detracting the most from return were eHealth, Inc., Zynex, Inc., and Safehold, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Fulgent Genetics, Inc.	2.6%
Mr Cooper Group, Inc.	2.0%
MarineMax, Inc.	1.9%
Big Lots, Inc.	1.9%
iRobot Corp.	1.8%
Vista Outdoor, Inc.	1.7%
Glu Mobile, Inc.	1.7%
Sleep Number Corp.	1.6%
MicroStrategy, Inc. — Class A	1.6%
Community Health Systems, Inc.	1.6%
Top Ten Total	18.4%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS ANNUAL REPORT | 43

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	103.49%	13.71%	10.67%
A-Class Shares with sales charge‡	93.81%	12.60%	10.13%
C-Class Shares	102.00%	12.85%	9.84%
C-Class Shares with CDSC§	101.00%	12.85%	9.84%
H-Class Shares	103.49%	13.70%	10.66%
S&P SmallCap 600 Pure Growth Index	107.53%	15.78%	12.73%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

44 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Non-cyclical - 29.0%
Fulgent Genetics, Inc.*,1		8,180	$	790,351
Community Health Systems, Inc.*		35,930		485,774
Medifast, Inc.		1,904		403,305
Meridian Bioscience, Inc.*		14,530		381,412
Alarm.com Holdings, Inc.*		4,337		374,630
Celsius Holdings, Inc.*		7,560		363,258
R1 RCM, Inc.*		13,830		341,325
Corcept Therapeutics, Inc.*		14,181		337,366
Rent-A-Center, Inc.		5,144		296,603
Zynex, Inc.*,1		18,880		288,298
Coherus Biosciences, Inc.*		19,730		288,255
Collegium Pharmaceutical, Inc.*		11,260		266,862
Ensign Group, Inc.		2,770		259,937
National Beverage Corp.		5,190		253,843
Pacira BioSciences, Inc.*		3,570		250,222
Pennant Group, Inc.*		5,439		249,106
NeoGenomics, Inc.*		5,149		248,336
Merit Medical Systems, Inc.*		4,050		242,514
B&G Foods, Inc.1		7,430		230,776
Vericel Corp.*		4,110		228,311
Green Dot Corp. — Class A*		4,930		225,745
Innoviva, Inc.*		18,871		225,508
Supernus Pharmaceuticals, Inc.*		8,240		215,723
Xencor, Inc.*		4,460		192,048
ModivCare, Inc.*		1,280		189,594
Arlo Technologies, Inc.*		23,490		147,517
Cytokinetics, Inc.*		5,900		137,234
REGENXBIO, Inc.*		3,744		127,708
Luminex Corp.		3,780		120,582
Omnicell, Inc.*		910		118,182
Addus HomeCare Corp.*		1,094		114,421
WD-40 Co.		350		107,163
EVERTEC, Inc.		2,547		94,799
Tactile Systems Technology, Inc.*		1,690		92,088
LeMaitre Vascular, Inc.		1,818		88,682
Forrester Research, Inc.*		1,880		79,862
Heska Corp.*		470		79,176
Total Consumer, Non-cyclical				8,936,516
Consumer, Cyclical - 18.8%
MarineMax, Inc.*		12,070		595,775
Big Lots, Inc.		8,612		588,200
iRobot Corp.*		4,560		557,141
Vista Outdoor, Inc.*		16,480		528,514
Sleep Number Corp.*		3,462		496,762
Century Communities, Inc.*		7,260		437,923
Hibbett Sports, Inc.*		6,220		428,496
LGI Homes, Inc.*		2,698		402,838
Crocs, Inc.*		3,937		316,732
Installed Building Products, Inc.		2,560		283,853
Meritage Homes Corp.*		2,490		228,881
Lumber Liquidators Holdings, Inc.*		8,840		222,061
Dine Brands Global, Inc.*		2,040		183,661
PetMed Express, Inc.		3,960		139,293
LCI Industries		842		111,380
Shake Shack, Inc. — Class A*		968		109,161
Dorman Products, Inc.*		1,020		104,693
Tupperware Brands Corp.*		2,860		75,532
Total Consumer, Cyclical				5,810,896
Financial - 16.0%
Mr Cooper Group, Inc.*		18,090		628,808
Innovative Industrial Properties, Inc. REIT		2,436		438,870
St. Joe Co.		9,506		407,807
StoneX Group, Inc.*		5,344		349,391
Safehold, Inc. REIT		4,673		327,577
Brightsphere Investment Group, Inc.		13,890		283,078
Trupanion, Inc.*		3,590		273,594
Axos Financial, Inc.*		5,290		248,683
Triumph Bancorp, Inc.*		3,130		242,231
Virtus Investment Partners, Inc.		1,003		236,207
HCI Group, Inc.		2,880		221,242
Palomar Holdings, Inc.*		3,160		211,846
ServisFirst Bancshares, Inc.		3,201		196,317
Walker & Dunlop, Inc.		1,759		180,720
eHealth, Inc.*		2,331		169,534
Essential Properties Realty Trust, Inc. REIT		6,959		158,874
PRA Group, Inc.*		3,460		128,262
NMI Holdings, Inc. — Class A*		5,374		127,041
Community Healthcare Trust, Inc. REIT		2,064		95,192
Total Financial				4,925,274
Technology - 13.7%
Glu Mobile, Inc.*		41,132		513,327
MicroStrategy, Inc. — Class A*		730		495,524
Simulations Plus, Inc.		4,810		304,184
SPS Commerce, Inc.*		2,777		275,784
TTEC Holdings, Inc.		2,527		253,837
Ultra Clean Holdings, Inc.*		4,219		244,871
FormFactor, Inc.*		5,000		225,550
Onto Innovation, Inc.*		3,100		203,701
CEVA, Inc.*		3,320		186,418
Power Integrations, Inc.		2,072		168,827
LivePerson, Inc.*		3,160		166,658
Diodes, Inc.*		2,034		162,394
Ebix, Inc.		4,720		151,182
Agilysys, Inc.*		3,032		145,415
8x8, Inc.*		4,475		145,169
Cohu, Inc.*		3,100		129,704
Allscripts Healthcare Solutions, Inc.*		8,300		124,625
ExlService Holdings, Inc.*		1,350		121,716
Tabula Rasa HealthCare, Inc.*,1		2,340		107,757
OneSpan, Inc.*		3,680		90,160
Total Technology				4,216,803
Industrial - 12.0%
Chart Industries, Inc.*		2,530		360,145
Saia, Inc.*		1,392		320,967
Advanced Energy Industries, Inc.		2,689		293,558
Comfort Systems USA, Inc.		3,770		281,883
AeroVironment, Inc.*		2,250		261,135

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Patrick Industries, Inc.		3,014	$	256,190
Vicor Corp.*		2,901		246,672
PGT Innovations, Inc.*		8,800		222,200
AAON, Inc.		2,466		172,645
Matson, Inc.		2,460		164,082
Proto Labs, Inc.*		1,190		144,883
Gibraltar Industries, Inc.*		1,550		141,840
Alamo Group, Inc.		886		138,349
Forward Air Corp.		1,517		134,725
Exponent, Inc.		1,377		134,189
Marten Transport Ltd.		7,090		120,317
Federal Signal Corp.		3,045		116,624
Franklin Electric Company, Inc.		1,259		99,385
Badger Meter, Inc.		1,020		94,932
Total Industrial				3,704,721
Communications - 5.5%
TechTarget, Inc.*		5,228		363,085
Stamps.com, Inc.*		1,662		331,586
Shutterstock, Inc.		2,817		250,826
Cincinnati Bell, Inc.*		9,942		152,609
QuinStreet, Inc.*		7,505		152,351
Vonage Holdings Corp.*		12,028		142,171
Perficient, Inc.*		2,296		134,821
NIC, Inc.		2,697		91,509
Viavi Solutions, Inc.*		5,780		90,746
Total Communications				1,709,704
Energy - 3.3%
Renewable Energy Group, Inc.*		6,950		458,978
Bonanza Creek Energy, Inc.*		12,500		446,625
DMC Global, Inc.*		2,050		111,233
Total Energy				1,016,836
Basic Materials - 1.2%
Quaker Chemical Corp.		840	$	204,767
Livent Corp.*		9,530		165,059
Total Basic Materials				369,826
Total Common Stocks
(Cost $23,474,186)				30,690,576
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	132,126		132,126
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		60,071		60,071
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		54,824		54,824
Total Repurchase Agreements
(Cost $247,021)				247,021
	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		1,068,144		1,068,144
Total Securities Lending Collateral
(Cost $1,068,144)				1,068,144
Total Investments - 103.8%
(Cost $24,789,351)			$	32,005,741
Other Assets & Liabilities, net - (3.8)%				(1,158,091	)
Total Net Assets - 100.0%			$	30,847,650

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P SMALLCAP 600® PURE GROWTH FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	30,690,576	$	—	$	—	$	30,690,576
Repurchase Agreements		—		247,021		—		247,021
Securities Lending Collateral		1,068,144		—		—		1,068,144
Total Assets	$	31,758,720	$	247,021	$	—	$	32,005,741

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $1,078,312 of securities loaned (cost $24,542,330)	$	31,758,720
Repurchase agreements, at value (cost $247,021)		247,021
Receivables:
Securities sold		784,294
Fund shares sold		117,451
Dividends		17,457
Securities lending income		1,721
Total assets		32,926,664
Liabilities:
Payable for:
Return of securities lending collateral		1,068,144
Fund shares redeemed		885,340
Management fees		32,856
Distribution and service fees		12,223
Transfer agent and administrative fees		11,784
Portfolio accounting fees		4,381
Trustees’ fees*		887
Miscellaneous		63,399
Total liabilities		2,079,014
Commitments and contingent liabilities (Note 12)		—
Net assets	$	30,847,650
Net assets consist of:
Paid in capital	$	21,979,990
Total distributable earnings (loss)		8,867,660
Net assets	$	30,847,650
A-Class:
Net assets	$	3,447,756
Capital shares outstanding		38,641
Net asset value per share	$	89.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	93.68
C-Class:
Net assets	$	2,328,596
Capital shares outstanding		30,011
Net asset value per share	$	77.59
H-Class:
Net assets	$	25,071,298
Capital shares outstanding		281,052
Net asset value per share	$	89.21

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	139,371
Interest		70
Income from securities lending, net		14,931
Total investment income		154,372
EXPENSES:
Management fees		219,671
Distribution and service fees:
A-Class		6,975
C-Class		14,972
H-Class		62,505
Transfer agent and administrative fees		79,939
Portfolio accounting fees		29,291
Professional fees		9,074
Custodian fees		3,772
Trustees’ fees*		1,861
Line of credit fees		145
Miscellaneous		36,705
Total expenses		464,910
Net investment loss		(310,538	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,147,682
Net realized gain		6,147,682
Net change in unrealized appreciation (depreciation) on:
Investments		7,971,113
Net change in unrealized appreciation (depreciation)		7,971,113
Net realized and unrealized gain		14,118,795
Net increase in net assets resulting from operations	$	13,808,257

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

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(310,538	)	$	(73,979	)
Net realized gain (loss) on investments		6,147,682			(384,045	)
Net change in unrealized appreciation (depreciation) on investments		7,971,113			(2,835,633	)
Net increase (decrease) in net assets resulting from operations		13,808,257			(3,293,657	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,066,328			719,908
C-Class		1,838,147			378,469
H-Class		184,102,636			56,396,230
Cost of shares redeemed
A-Class		(4,727,157	)		(1,307,711	)
C-Class		(1,154,354	)		(595,749	)
H-Class		(172,363,238	)		(59,193,712	)
Net increase (decrease) from capital share transactions		12,762,362			(3,602,565	)
Net increase (decrease) in net assets		26,570,619			(6,896,222	)
Net assets:
Beginning of year		4,277,031			11,173,253
End of year	$	30,847,650		$	4,277,031
Capital share activity:
Shares sold
A-Class		72,794			11,355
C-Class		30,205			6,675
H-Class		2,423,701			877,834
Shares redeemed
A-Class		(60,805	)		(21,456	)
C-Class		(17,857	)		(10,753	)
H-Class		(2,198,078	)		(937,806	)
Net increase (decrease) in shares		249,960			(74,151	)

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	43.85		$	65.22		$	71.79		$	65.58		$	52.28
Income (loss) from investment operations:
Net investment income (loss)a		(.62	)		(.44	)		(.70	)		(.63	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		46.00			(20.93	)		(.94	)		9.35			13.71
Total from investment operations		45.38			(21.37	)		(1.64	)		8.72			13.30
Less distributions from:
Net realized gains		—			—			(4.93	)		(2.51	)		—
Total distributions		—			—			(4.93	)		(2.51	)		—
Net asset value, end of period	$	89.23		$	43.85		$	65.22		$	71.79		$	65.58
Total Returnb		103.49	%		(32.77	%)		(2.34	%)		13.41	%		25.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,448		$	1,169		$	2,397		$	1,857		$	2,526
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(0.69	%)		(0.93	%)		(0.91	%)		(0.71	%)
Total expenses		1.58	%		1.63	%		1.62	%		1.53	%		1.52	%
Portfolio turnover rate		752	%		628	%		421	%		643	%		818	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	38.41		$	57.57		$	64.43		$	59.55		$	47.82
Income (loss) from investment operations:
Net investment income (loss)a		(.96	)		(.79	)		(1.16	)		(.96	)		(.79	)
Net gain (loss) on investments (realized and unrealized)		40.14			(18.37	)		(.77	)		8.35			12.52
Total from investment operations		39.18			(19.16	)		(1.93	)		7.39			11.73
Less distributions from:
Net realized gains		—			—			(4.93	)		(2.51	)		—
Total distributions		—			—			(4.93	)		(2.51	)		—
Net asset value, end of period	$	77.59		$	38.41		$	57.57		$	64.43		$	59.55
Total Returnb		102.00	%		(33.28	%)		(3.06	%)		12.52	%		24.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,329		$	678		$	1,252		$	2,354		$	3,054
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.43	%)		(1.70	%)		(1.52	%)		(1.48	%)
Total expenses		2.33	%		2.38	%		2.36	%		2.28	%		2.28	%
Portfolio turnover rate		752	%		628	%		421	%		643	%		818	%

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	43.84		$	65.21		$	71.78		$	65.58		$	52.27
Income (loss) from investment operations:
Net investment income (loss)a		(.86	)		(.40	)		(.77	)		(.55	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		46.23			(20.97	)		(.87	)		9.26			13.75
Total from investment operations		45.37			(21.37	)		(1.64	)		8.71			13.31
Less distributions from:
Net realized gains		—			—			(4.93	)		(2.51	)		—
Total distributions		—			—			(4.93	)		(2.51	)		—
Net asset value, end of period	$	89.21		$	43.84		$	65.21		$	71.78		$	65.58
Total Return		103.49	%		(32.77	%)		(2.33	%)		13.38	%		25.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,071		$	2,430		$	7,525		$	15,523		$	31,750
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(0.63	%)		(0.99	%)		(0.80	%)		(0.75	%)
Total expenses		1.54	%		1.63	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		752	%		628	%		421	%		643	%		818	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

S&P SMALLCAP 600^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Value Index (the “underlying index”).

For the year ended March 31, 2021, S&P SmallCap 600^® Pure Value Fund H-Class returned 149.16%, compared with a return of 156.94% for the underlying index. The Fund maintained a daily correlation of over 99% to its benchmark for the period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Industrials, and Energy.

The holdings contributing the most to the return of the underlying index for the period were Renewable Energy Group, Inc., Atlas Air Worldwide Holdings, Inc., and MarineMax, Inc. The holdings detracting the most from return were CoreCivic, Inc., Oasis Petroleum, Inc., and KLX Energy Services Holdings, Inc.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Veritiv Corp.	1.9%
Olympic Steel, Inc.	1.5%
Aaron’s Company, Inc.	1.4%
Conn’s, Inc.	1.3%
CONSOL Energy, Inc.	1.3%
Green Plains, Inc.	1.2%
Greenbrier Companies, Inc.	1.2%
SunCoke Energy, Inc.	1.2%
US Concrete, Inc.	1.1%
G-III Apparel Group Ltd.	1.1%
Top Ten Total	13.2%
“Ten Largest Holdings” excludes any temporary cash investments.

52 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	149.04%	7.72%	6.79%
A-Class Shares with sales charge‡	137.21%	6.68%	6.27%
C-Class Shares	147.34%	6.93%	5.99%
C-Class Shares with CDSC§	146.34%	6.93%	5.99%
H-Class Shares	149.16%	7.75%	6.79%
S&P SmallCap 600 Pure Value Index	156.94%	10.35%	9.38%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 53

SCHEDULE OF INVESTMENTS	March 31, 2021
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 98.5%
Financial - 23.6%
Customers Bancorp, Inc.*		10,013	$	318,614
Hanmi Financial Corp.		14,765		291,313
Realogy Holdings Corp.*		18,589		281,252
United Insurance Holdings Corp.		37,224		268,385
Stewart Information Services Corp.		5,087		264,677
Boston Private Financial Holdings, Inc.		19,724		262,724
Universal Insurance Holdings, Inc.		18,032		258,579
Employers Holdings, Inc.		5,992		258,015
American Equity Investment Life Holding Co.		8,112		255,771
EZCORP, Inc. — Class A*		51,131		254,121
United Fire Group, Inc.		7,151		248,855
Investors Bancorp, Inc.		16,080		236,215
Enova International, Inc.*		6,570		233,104
Dime Community Bancshares, Inc.		7,730		232,982
Encore Capital Group, Inc.*		5,459		219,615
First Midwest Bancorp, Inc.		9,526		208,715
Hope Bancorp, Inc.		13,790		207,677
Simmons First National Corp. — Class A		6,978		207,037
GEO Group, Inc. REIT1		26,655		206,843
First Financial Bancorp		8,355		200,520
Central Pacific Financial Corp.		7,499		200,073
Assured Guaranty Ltd.		4,577		193,516
SiriusPoint Ltd.*		19,018		193,413
Office Properties Income Trust REIT		6,664		183,393
Provident Financial Services, Inc.		7,938		176,859
RPT Realty REIT		15,251		174,014
Northfield Bancorp, Inc.		10,279		163,642
First BanCorp		13,790		155,275
First Commonwealth Financial Corp.		10,488		150,713
Diversified Healthcare Trust REIT		31,487		150,508
Ameris Bancorp		2,861		150,231
WSFS Financial Corp.		2,860		142,399
S&T Bancorp, Inc.		4,195		140,533
Renasant Corp.		3,337		138,085
Horace Mann Educators Corp.		3,187		137,710
OFG Bancorp		6,061		137,100
Ready Capital Corp. REIT		10,209		137,005
Franklin Street Properties Corp. REIT		25,055		136,550
PennyMac Mortgage Investment Trust REIT		6,885		134,946
Banner Corp.		2,410		128,525
Allegiance Bancshares, Inc.		3,024		122,593
Veritex Holdings, Inc.		3,719		121,686
BankUnited, Inc.		2,720		119,544
Old National Bancorp		5,981		115,673
HomeStreet, Inc.		2,561		112,863
Eagle Bancorp, Inc.		2,052		109,187
Apollo Commercial Real Estate Finance, Inc. REIT		7,209		100,710
Acadia Realty Trust REIT		5,261		99,801
Safety Insurance Group, Inc.		1,136		95,708
Whitestone REIT — Class B		9,793		94,992
First Bancorp		2,122		92,307
Waddell & Reed Financial, Inc. — Class A		3,649		91,407
Independent Bank Group, Inc.		1,229		88,783
DiamondRock Hospitality Co. REIT*		8,192		84,377
Total Financial				9,489,135
Consumer, Cyclical - 22.3%
Veritiv Corp.*		17,870		760,190
Conn’s, Inc.*		26,771		520,696
G-III Apparel Group Ltd.*		14,602		440,104
ODP Corp.*		9,085		393,290
Daktronics, Inc.*		59,818		375,059
M/I Homes, Inc.*		6,328		373,795
Signet Jewelers Ltd.*		5,957		345,387
Cato Corp. — Class A*		28,277		339,324
Group 1 Automotive, Inc.		2,053		323,943
Vera Bradley, Inc.*		29,725		300,222
Bed Bath & Beyond, Inc.*		9,723		283,425
Asbury Automotive Group, Inc.*		1,367		268,615
Unifi, Inc.*		9,746		268,600
GMS, Inc.*		6,397		267,075
Resideo Technologies, Inc.*		9,411		265,861
Abercrombie & Fitch Co. — Class A*		7,696		264,050
Genesco, Inc.*		5,528		262,580
Barnes & Noble Education, Inc.*		31,290		254,701
ScanSource, Inc.*		8,286		248,166
Core-Mark Holding Company, Inc.		6,050		234,074
Shoe Carnival, Inc.		3,593		222,335
Michaels Companies, Inc.*		9,862		216,372
Chico’s FAS, Inc.*		63,160		209,060
Sally Beauty Holdings, Inc.*		10,210		205,527
SkyWest, Inc.*		3,477		189,427
PC Connection, Inc.		3,847		178,462
Sonic Automotive, Inc. — Class A		3,569		176,915
Cooper Tire & Rubber Co.		2,770		155,065
Interface, Inc. — Class A		12,134		151,432
Marcus Corp.*		6,721		134,353
Ethan Allen Interiors, Inc.		4,508		124,466
Motorcar Parts of America, Inc.*		4,705		105,862
HNI Corp.		2,640		104,439
Total Consumer, Cyclical				8,962,872
Industrial - 19.0%
Olympic Steel, Inc.		20,898		615,446
Greenbrier Companies, Inc.		10,037		473,947
US Concrete, Inc.*		6,224		456,344
Bel Fuse, Inc. — Class B		20,688		411,484
ArcBest Corp.		5,829		410,187
Granite Construction, Inc.		9,688		389,942
Benchmark Electronics, Inc.		11,450		354,034
Sanmina Corp.*		8,495		351,523
Griffon Corp.		11,983		325,578
DXP Enterprises, Inc.*		9,793		295,455
Powell Industries, Inc.		8,494		287,692
Boise Cascade Co.		4,693		280,782
O-I Glass, Inc.*		18,980		279,765
Apogee Enterprises, Inc.		6,745		275,736
Comtech Telecommunications Corp.		9,769		242,662
Atlas Air Worldwide Holdings, Inc.*		3,999		241,699

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
AAR Corp.*		5,795	$	241,362
TTM Technologies, Inc.*		15,993		231,899
Aegion Corp. — Class A*		7,996		229,885
Haynes International, Inc.		7,568		224,543
TimkenSteel Corp.*		18,438		216,646
SEACOR Holdings, Inc.*		4,453		181,460
Hub Group, Inc. — Class A*		2,690		180,983
Matthews International Corp. — Class A		3,302		130,594
Encore Wire Corp.		1,924		129,158
Trinseo S.A.		1,993		126,894
Tredegar Corp.		3,059		45,916
Total Industrial				7,631,616
Consumer, Non-cyclical - 12.7%
Aaron’s Company, Inc.		21,660		556,229
CoreCivic, Inc.		47,631		431,060
Seneca Foods Corp. — Class A*		8,657		407,658
Andersons, Inc.		14,834		406,155
Fresh Del Monte Produce, Inc.		14,035		401,822
SpartanNash Co.		19,087		374,678
Magellan Health, Inc.*		3,315		309,090
Kelly Services, Inc. — Class A*		13,454		299,621
Universal Corp.		4,879		287,812
ABM Industries, Inc.		4,438		226,382
Invacare Corp.		26,586		213,220
Edgewell Personal Care Co.		5,210		206,316
Cross Country Healthcare, Inc.*		16,131		201,476
Lannett Company, Inc.*		37,978		200,524
Resources Connection, Inc.		14,590		197,549
Deluxe Corp.		3,510		147,280
TrueBlue, Inc.*		5,748		126,571
Prestige Consumer Healthcare, Inc.*		2,500		110,200
Total Consumer, Non-cyclical				5,103,643
Energy - 10.8%
CONSOL Energy, Inc.*		53,286		517,940
Green Plains, Inc.*		17,917		485,013
SunCoke Energy, Inc.		67,401		472,481
ProPetro Holding Corp.*		34,970		372,780
Matrix Service Co.*		26,574		348,385
SM Energy Co.		17,964		294,071
Helix Energy Solutions Group, Inc.*		57,934		292,567
Callon Petroleum Co.*,1		7,220		278,331
Talos Energy, Inc.*		19,829		238,741
US Silica Holdings, Inc.*		16,903		207,738
PBF Energy, Inc. — Class A*		12,679		179,408
NOW, Inc.*		13,756		138,798
Nabors Industries Ltd.*,1		1,483		138,586
Oil States International, Inc.*		19,773		119,231
Penn Virginia Corp.*		8,147		109,170
Bristow Group, Inc.*		3,594		93,013
Warrior Met Coal, Inc.		4,206		72,049
Total Energy				4,358,302
Basic Materials - 5.1%
Mercer International, Inc.		22,749		327,358
AdvanSix, Inc.*		12,169		326,373
Clearwater Paper Corp.*		8,170		307,355
Rayonier Advanced Materials, Inc.*		33,492		303,772
Carpenter Technology Corp.		7,150		294,222
Koppers Holdings, Inc.*		7,972		277,107
Allegheny Technologies, Inc.*		7,070		148,894
Glatfelter Corp.		4,577		78,496
Total Basic Materials				2,063,577
Communications - 4.0%
Consolidated Communications Holdings, Inc.*		57,887		416,786
Scholastic Corp.		9,828		295,921
EW Scripps Co. — Class A		13,246		255,250
AMC Networks, Inc. — Class A*		3,012		160,118
Spok Holdings, Inc.		13,578		142,433
Gannett Company, Inc.*		25,263		135,915
NETGEAR, Inc.*		2,365		97,202
ePlus, Inc.*		882		87,883
Total Communications				1,591,508
Technology - 1.0%
Insight Enterprises, Inc.*		2,954		281,871
MTS Systems Corp.*		1,623		94,458
BM Technologies, Inc.*		428		4,986
Total Technology				381,315
Total Common Stocks
(Cost $35,306,115)				39,581,968
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21	$	176,712		176,712
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		80,342		80,342
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		73,325		73,325
Total Repurchase Agreements
(Cost $330,379)				330,379

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 0.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%4		332,723	$	332,723
Total Securities Lending Collateral
(Cost $332,723)				332,723
Total Investments - 100.1%
(Cost $35,969,217)			$	40,245,070
Other Assets & Liabilities, net - (0.1)%				(31,640	)
Total Net Assets - 100.0%			$	40,213,430

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at March 31, 2021 — 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 March 31, 2021.
	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 March 31, 2021 (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	$	39,581,968	$	—	$	—	$	39,581,968
Repurchase Agreements		—		330,379		—		330,379
Securities Lending Collateral		332,723		—		—		332,723
Total Assets	$	39,914,691	$	330,379	$	—	$	40,245,070

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $330,025 of securities loaned (cost $35,638,838)	$	39,914,691
Repurchase agreements, at value (cost $330,379)		330,379
Receivables:
Fund shares sold		445,070
Dividends		30,590
Securities lending income		142
Total assets		40,720,872
Liabilities:
Payable for:
Return of securities lending collateral		332,723
Management fees		42,995
Fund shares redeemed		15,985
Transfer agent and administrative fees		15,421
Distribution and service fees		15,074
Portfolio accounting fees		5,733
Trustees’ fees*		1,112
Miscellaneous		78,399
Total liabilities		507,442
Commitments and contingent liabilities (Note 12)		—
Net assets	$	40,213,430
Net assets consist of:
Paid in capital	$	50,249,965
Total distributable earnings (loss)		(10,036,535	)
Net assets	$	40,213,430
A-Class:
Net assets	$	3,242,145
Capital shares outstanding		19,301
Net asset value per share	$	167.98
Maximum offering price per share (Net asset value divided by 95.25%)	$	176.36
C-Class:
Net assets	$	1,472,491
Capital shares outstanding		10,388
Net asset value per share	$	141.75
H-Class:
Net assets	$	35,498,794
Capital shares outstanding		211,861
Net asset value per share	$	167.56

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $254)	$	168,282
Interest		28
Income from securities lending, net		6,918
Total investment income		175,228
Expenses:
Management fees		96,915
Distribution and service fees:
A-Class		2,972
C-Class		6,129
H-Class		27,800
Transfer agent and administrative fees		35,374
Portfolio accounting fees		12,923
Professional fees		2,943
Custodian fees		1,700
Trustees’ fees*		1,161
Line of credit fees		32
Miscellaneous		17,609
Total expenses		205,558
Net investment loss		(30,330	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(6,205,696	)
Net realized loss		(6,205,696	)
Net change in unrealized appreciation (depreciation) on:
Investments		4,636,470
Net change in unrealized appreciation (depreciation)		4,636,470
Net realized and unrealized loss		(1,569,226	)
Net decrease in net assets resulting from operations	$	(1,599,556	)

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

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(30,330	)	$	(52,458	)
Net realized loss on investments		(6,205,696	)		(777,560	)
Net change in unrealized appreciation (depreciation) on investments		4,636,470			(1,353,130	)
Net decrease in net assets resulting from operations		(1,599,556	)		(2,183,148	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,465,579			1,507,622
C-Class		1,663,534			873,764
H-Class		203,832,028			136,769,330
Cost of shares redeemed
A-Class		(1,084,818	)		(1,281,826	)
C-Class		(1,347,358	)		(1,203,729	)
H-Class		(166,730,073	)		(142,913,535	)
Net increase (decrease) from capital share transactions		38,798,892			(6,248,374	)
Net increase (decrease) in net assets		37,199,336			(8,431,522	)
Net assets:
Beginning of year		3,014,094			11,445,616
End of year	$	40,213,430		$	3,014,094
Capital share activity:*
Shares sold
A-Class		15,794			13,594
C-Class		14,505			11,634
H-Class		1,508,948			1,100,304
Shares redeemed
A-Class		(10,365	)		(10,001	)
C-Class		(14,088	)		(11,191	)
H-Class		(1,319,497	)		(1,148,134	)
Net increase (decrease) in shares		195,297			(43,794	)

* Capital share activity for the year ended March 31, 2020 has been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.

58 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	67.45		$	129.32		$	138.22		$	136.22		$	115.78
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		(.50	)		.30			(.40	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		100.67	d		(61.37	)		(9.20	)		2.40			21.14
Total from investment operations		100.53			(61.87	)		(8.90	)		2.00			20.44
Net asset value, end of period	$	167.98		$	67.45		$	129.32		$	138.22		$	136.22
Total Returnb		149.04	%		(47.83	%)		(6.44	%)		1.47	%		17.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,242		$	936		$	1,329		$	762		$	1,720
Ratios to average net assets:
Net investment income (loss)		(0.31	%)		(0.42	%)		0.21	%		(0.30	%)		(0.50	%)
Total expenses		1.59	%		1.63	%		1.62	%		1.53	%		1.53	%
Portfolio turnover rate		1,503	%		1,104	%		534	%		1,832	%		1,449	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	57.31		$	110.69		$	119.22		$	118.40		$	101.41
Income (loss) from investment operations:
Net investment income (loss)a		(.40	)		(1.25	)		(.65	)		(1.05	)		(1.40	)
Net gain (loss) on investments (realized and unrealized)		84.84	d		(52.13	)		(7.88	)		1.87			18.39
Total from investment operations		84.44			(53.38	)		(8.53	)		.82			16.99
Net asset value, end of period	$	141.75		$	57.31		$	110.69		$	119.22		$	118.40
Total Returnb		147.34	%		(48.24	%)		(7.13	%)		0.68	%		16.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,472		$	571		$	1,055		$	1,532		$	1,778
Ratios to average net assets:
Net investment income (loss)		(1.07	%)		(1.20	%)		(0.53	%)		(0.90	%)		(1.26	%)
Total expenses		2.34	%		2.38	%		2.36	%		2.28	%		2.28	%
Portfolio turnover rate		1,503	%		1,104	%		534	%		1,832	%		1,449	%

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020c			Year Ended March 31, 2019c			Year Ended March 29, 2018c			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	67.25		$	129.01		$	137.86		$	135.65		$	115.35
Income (loss) from investment operations:
Net investment income (loss)a		(.13	)		(.55	)		.10			(.45	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		100.44	d		(61.21	)		(8.95	)		2.66			20.90
Total from investment operations		100.31			(61.76	)		(8.85	)		2.21			20.30
Net asset value, end of period	$	167.56		$	67.25		$	129.01		$	137.86		$	135.65
Total Return		149.16	%		(47.87	%)		(6.42	%)		1.62	%		17.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,499		$	1,507		$	9,062		$	7,595		$	19,782
Ratios to average net assets:
Net investment income (loss)		(0.18	%)		(0.44	%)		0.06	%		(0.32	%)		(0.47	%)
Total expenses		1.55	%		1.64	%		1.62	%		1.53	%		1.53	%
Portfolio turnover rate		1,503	%		1,104	%		534	%		1,832	%		1,449	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the years presented through March 31, 2020 have been restated to reflect a 1:5 reverse share split effective August 17, 2020 — See Note 11.
d	The amount shown for a share outstanding throughout the year does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX Europe 50^® Index (the “underlying index”).

For the one year period ended March 31, 2021, Europe 1.25x Strategy Fund maintained a daily correlation of over 98% to its benchmark of 125% of the daily price movement of the underlying index. Europe 1.25x Strategy Fund H-Class returned 42.96% while the underlying index returned 33.63% over the same period.

The sectors contributing most to the return of the underlying index for the period were Consumer Discretionary, Industrials, and Information Technology. The only sector to detract was Real Estate.

The holdings contributing the most to the return of the underlying index for the period were ASML Holding N.V. - Class G, LVMH Moet Hennessy Louis Vuitton SE, and Siemens AG. The holdings detracting the most from return were Wirecard AG, BP plc, and HSBC Holdings plc.

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

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

THE RYDEX FUNDS ANNUAL REPORT | 61

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Country Diversification

Country	% of Long-Term Investments
United Kingdom	28.8%
France	21.4%
Switzerland	19.6%
Germany	14.6%
Netherlands	6.8%
Italy	2.6%
Denmark	2.4%
Other	3.8%
Total Long-Term Investments	100.0%

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	16.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	16.4%
Nestle S.A. ADR	2.2%
ASML Holding N.V. — Class G	1.8%
Roche Holding AG ADR	1.5%
Novartis AG ADR	1.4%
LVMH Moet Hennessy Louis Vuitton SE ADR	1.2%
Unilever plc ADR	1.0%
Linde plc	1.0%
SAP SE ADR	0.9%
Top Ten Total	43.9%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	43.39%	7.00%	2.79%
A-Class Shares with sales charge‡	36.57%	5.97%	2.30%
C-Class Shares	41.93%	6.18%	1.92%
C-Class Shares with CDSC§	40.93%	6.18%	1.92%
H-Class Shares	42.96%	6.99%	2.69%
STOXX Europe 50 Index	33.63%	7.54%	4.01%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

62 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 32.3%
Consumer, Non-cyclical - 13.0%
Nestle S.A. ADR		327	$	36,464
Roche Holding AG ADR		639		25,918
Novartis AG ADR		281		24,020
Unilever plc ADR		298		16,637
AstraZeneca plc ADR1		299		14,866
Novo Nordisk A/S ADR		192		12,945
Sanofi ADR		259		12,810
Diageo plc ADR		66		10,838
L’Oreal S.A. ADR		139		10,653
GlaxoSmithKline plc ADR		283		10,100
British American Tobacco plc ADR		243		9,414
Reckitt Benckiser Group plc ADR		411		7,476
Adyen N.V. ADR*		159		7,112
Bayer AG ADR		447		7,098
Anheuser-Busch InBev S.A. ADR		96		6,034
RELX plc ADR		224		5,636
Total Consumer, Non-cyclical				218,021
Financial - 3.9%
HSBC Holdings plc ADR		471		13,725
Allianz SE ADR		469		11,997
BNP Paribas S.A. ADR*,1		262		8,017
Zurich Insurance Group AG ADR		171		7,341
AXA S.A. ADR		235		6,359
Prudential plc ADR1		148		6,318
UBS Group AG		403		6,259
Intesa Sanpaolo SpA ADR*		345		5,628
Total Financial				65,644
Industrial - 3.0%
Siemens AG ADR1		170		13,990
Schneider Electric SE ADR		322		9,795
Airbus SE ADR*		263		7,466
Vinci S.A. ADR		269		6,935
ABB Ltd. ADR		203		6,186
Safran S.A. ADR*		173		5,889
Total Industrial				50,261
Basic Materials - 3.0%
Linde plc		59		16,529
Rio Tinto plc ADR		120		9,318
Air Liquide S.A. ADR		269		8,788
BASF SE ADR		417		8,636
BHP Group plc ADR		120		6,943
Total Basic Materials				50,214
Technology - 2.7%
ASML Holding N.V. — Class G		48		29,633
SAP SE ADR1		124		15,226
Total Technology				44,859
Consumer, Cyclical - 2.4%
LVMH Moet Hennessy Louis Vuitton SE ADR		150		20,076
Daimler AG ADR		383		8,514
Adidas AG ADR*,1		42		6,594
Kering S.A. ADR		83		5,730
Total Consumer, Cyclical				40,914
Energy - 1.9%
Total SE ADR		298		13,869
BP plc ADR		384		9,350
Royal Dutch Shell plc — Class A ADR		233		9,136
Total Energy				32,355
Utilities - 1.3%
Enel SpA ADR		884		8,752
Iberdrola S.A. ADR1		167		8,635
National Grid plc ADR		80		4,739
Total Utilities				22,126
Communications - 1.1%
Deutsche Telekom AG ADR		368		7,448
Prosus N.V. ADR		253		5,624
Vodafone Group plc ADR		301		5,548
Total Communications				18,620
Total Common Stocks
(Cost $482,806)				543,014
MUTUAL FUNDS† - 32.9%
Guggenheim Strategy Fund II2		11,082		276,836
Guggenheim Ultra Short Duration Fund — Institutional Class2		27,782		276,705
Total Mutual Funds
(Cost $552,516)				553,541
	Face Amount
U.S. TREASURY BILLS†† - 12.3%
U.S. Treasury Bills
0.01% due 04/22/213,4	$	207,000		206,999
Total U.S. Treasury Bills
(Cost $206,998)				206,999
REPURCHASE AGREEMENTS††,5 - 31.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21		282,219		282,219
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		128,311		128,311
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		117,103		117,103
Total Repurchase Agreements
(Cost $527,633)				527,633

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
EUROPE 1.25x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,6 - 1.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%7		30,559	$	30,559
Total Securities Lending Collateral
(Cost $30,559)				30,559
Total Investments - 110.7%
(Cost $1,800,512)			$	1,861,746
Other Assets & Liabilities, net - (10.7)%				(180,701	)
Total Net Assets - 100.0%			$	1,681,045

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Equity Futures Contracts Purchased†
STOXX Europe 50 Index Futures Contracts		40		Jun 2021	$	1,541,979	$	25,568
Currency Futures Contracts Purchased†
Euro FX Futures Contracts		11		Jun 2021		1,614,663		(15,786	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 on loan at March 31, 2021 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as futures collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	Securities lending collateral — See Note 7.
7	Rate indicated is the 7-day yield as of March 31, 2021.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
EUROPE 1.25x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	543,014	$	—	$	—	$	543,014
Mutual Funds		553,541		—		—		553,541
U.S. Treasury Bills		—		206,999		—		206,999
Repurchase Agreements		—		527,633		—		527,633
Securities Lending Collateral		30,559		—		—		30,559
Equity Futures Contracts**		25,568		—		—		25,568
Total Assets	$	1,152,682	$	734,632	$	—	$	1,887,314

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	15,786	$	—	$	—	$	15,786

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	269,269	$	120,000	$	(120,000	)	$	(1,670	)	$	9,237	$	276,836		11,082	$	3,214
Guggenheim Ultra Short Duration Fund — Institutional Class		252,254		50,000		(30,000	)		(304	)		4,755		276,705		27,782		2,741
	$	521,523	$	170,000	$	(150,000	)	$	(1,974	)	$	13,992	$	553,541			$	5,955

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value - including $29,827 of securities loaned (cost $720,363)	$	780,572
Investments in affiliated issuers, at value (cost $552,516)		553,541
Repurchase agreements, at value (cost $527,633)		527,633
Receivables:
Fund shares sold		58,305
Foreign tax reclaims		16,725
Dividends		1,537
Securities lending income		33
Total assets		1,938,346
Liabilities:
Overdraft due to custodian bank		6
Payable for:
Fund shares redeemed		215,610
Return of securities lending collateral		30,559
Variation margin on futures contracts		4,745
Management fees		1,348
Transfer agent and administrative fees		421
Distribution and service fees		406
Portfolio accounting fees		156
Trustees’ fees*		29
Miscellaneous		4,021
Total liabilities		257,301
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,681,045
Net assets consist of:
Paid in capital	$	1,701,821
Total distributable earnings (loss)		(20,776	)
Net assets	$	1,681,045
A-Class:
Net assets	$	129,642
Capital shares outstanding		1,371
Net asset value per share	$	94.56
Maximum offering price per share (Net asset value divided by 95.25%)	$	99.28
C-Class:
Net assets	$	141,593
Capital shares outstanding		1,818
Net asset value per share	$	77.88
H-Class:
Net assets	$	1,409,810
Capital shares outstanding		15,069
Net asset value per share	$	93.56

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $1,393)	$	9,149
Dividends from securities of affiliated issuers		5,955
Interest		706
Income from securities lending, net		231
Total investment income		16,041
Expenses:
Management fees		17,058
Distribution and service fees:
A-Class		367
C-Class		683
H-Class		4,200
Transfer agent and administrative fees		5,331
Portfolio accounting fees		1,896
Registration fees		1,728
Professional fees		1,003
Custodian fees		468
Trustees’ fees*		428
Miscellaneous		923
Total expenses		34,085
Less:
Expenses waived by Adviser		(595	)
Net expenses		33,490
Net investment loss		(17,449	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(54,116	)
Investments in affiliated issuers		(1,974	)
Futures contracts		574,857
Foreign currency transactions		12,656
Net realized gain		531,423
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		44,284
Investments in affiliated issuers		13,992
Futures contracts		(135,207	)
Foreign currency translations		(295	)
Net change in unrealized appreciation (depreciation)		(77,226	)
Net realized and unrealized gain		454,197
Net increase in net assets resulting from operations	$	436,748

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

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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(17,449	)	$	61,455
Net realized gain on investments		531,423			140,578
Net change in unrealized appreciation (depreciation) on investments		(77,226	)		(79,364	)
Net increase in net assets resulting from operations		436,748			122,669
Distributions to shareholders:
A-Class		(3,005	)		(1,228	)
C-Class		(864	)		(1,486	)
H-Class		(64,304	)		(58,704	)
Total distributions to shareholders		(68,173	)		(61,418	)
Capital share transactions:
Proceeds from sale of shares
A-Class		12,145,953			260,090
C-Class		758,238			1,532,352
H-Class		24,728,511			341,054,759
Distributions reinvested
A-Class		2,277			999
C-Class		864			1,157
H-Class		52,203			57,686
Cost of shares redeemed
A-Class		(12,156,789	)		(241,632	)
C-Class		(963,363	)		(1,307,652	)
H-Class		(25,112,437	)		(377,010,299	)
Net decrease from capital share transactions		(544,543	)		(35,652,540	)
Net decrease in net assets		(175,968	)		(35,591,289	)
Net assets:
Beginning of year		1,857,013			37,448,302
End of year	$	1,681,045		$	1,857,013
Capital share activity:
Shares sold
A-Class		132,762			3,600
C-Class		10,252			21,584
H-Class		294,697			3,874,912
Shares issued from reinvestment of distributions
A-Class		25			11
C-Class		12			15
H-Class		589			633
Shares redeemed
A-Class		(134,552	)		(2,632	)
C-Class		(13,530	)		(16,852	)
H-Class		(299,748	)		(4,296,290	)
Net decrease in shares		(9,493	)		(415,019	)

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	69.30		$	85.18		$	94.56		$	84.99		$	78.10
Income (loss) from investment operations:
Net investment income (loss)a		(.93	)		.63			1.70			.82			1.08
Net gain (loss) on investments (realized and unrealized)		30.74			(16.07	)f		(4.78	)		8.99			6.51
Total from investment operations		29.81			(15.44	)		(3.08	)		9.81			7.59
Less distributions from:
Net investment income		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Total distributions		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Net asset value, end of period	$	94.56		$	69.30		$	85.18		$	94.56		$	84.99
Total Returnb		43.39	%		(18.25	%)		(2.32	%)		11.53	%		9.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	130		$	217		$	184		$	401		$	417
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		0.72	%		1.89	%		0.88	%		1.35	%
Total expensesc		1.75	%		1.77	%		1.76	%		1.71	%		1.72	%
Net expensesd		1.73	%		1.73	%		1.76	%		1.71	%		1.72	%
Portfolio turnover rate		534	%		1,787	%		1,411	%		422	%		1,616	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	58.24		$	72.13		$	81.77		$	74.07		$	68.62
Income (loss) from investment operations:
Net investment income (loss)a		(.96	)		(.18	)		.96			(.09	)		.35
Net gain (loss) on investments (realized and unrealized)		25.15			(13.27	)f		(4.30	)		8.03			5.80
Total from investment operations		24.19			(13.45	)		(3.34	)		7.94			6.15
Less distributions from:
Net investment income		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Total distributions		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Net asset value, end of period	$	77.88		$	58.24		$	72.13		$	81.77		$	74.07
Total Returnb		41.93	%		(18.79	%)		(3.04	%)		10.70	%		9.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	142		$	296		$	24		$	187		$	840
Ratios to average net assets:
Net investment income (loss)		(1.50	%)		(0.25	%)		1.22	%		(0.11	%)		0.50	%
Total expensesc		2.58	%		2.49	%		2.50	%		2.46	%		2.49	%
Net expensesd		2.55	%		2.45	%		2.50	%		2.46	%		2.49	%
Portfolio turnover rate		534	%		1,787	%		1,411	%		422	%		1,616	%

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	68.79		$	84.58		$	93.89		$	84.38		$	77.38
Income (loss) from investment operations:
Net investment income (loss)a		(.74	)		.58			1.26			1.02			.46
Net gain (loss) on investments (realized and unrealized)		30.06			(15.93	)f		(4.27	)		8.73			7.24
Total from investment operations		29.32			(15.35	)		(3.01	)		9.75			7.70
Less distributions from:
Net investment income		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Total distributions		(4.55	)		(.44	)		(6.30	)		(.24	)		(.70	)
Net asset value, end of period	$	93.56		$	68.79		$	84.58		$	93.89		$	84.38
Total Return		42.96	%		(18.28	%)		(2.28	%)		11.55	%		10.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,410		$	1,344		$	37,240		$	3,967		$	6,439
Ratios to average net assets:
Net investment income (loss)		(0.88	%)		0.66	%		1.42	%		1.09	%		0.59	%
Total expensesc		1.77	%		1.80	%		1.76	%		1.71	%		1.73	%
Net expensesd		1.74	%		1.76	%		1.76	%		1.71	%		1.73	%
Portfolio turnover rate		534	%		1,787	%		1,411	%		422	%		1,616	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the year ended March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.
f	The amount shown for a share outstanding throughout the year does not agree with the aggregate net gain on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

For the one year period ended March 31, 2021, Japan 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the fair value of the underlying index. Japan 2x Strategy Fund H-Class returned 112.94%, while the underlying index returned 50.30% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Consumer Discretionary, Industrials, and Information Technology.

The holdings contributing the most to the return of the underlying index for the period were Fast Retailing Co. Ltd., SoftBank Group Corp., and Tokyo Electron Ltd. Those detracting most from return were Kao Corp., Japan Exchange Group, Inc., and West Japan Railway Co.

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

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

70 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	7.7%
Guggenheim Strategy Fund II	7.6%
Top Ten Total	15.3%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	112.92%	21.83%	13.46%
A-Class Shares with sales charge‡	102.80%	20.65%	12.91%
C-Class Shares	111.34%	20.92%	12.69%
C-Class Shares with CDSC§	110.34%	20.92%	12.69%
H-Class Shares	112.94%	21.90%	13.52%
Nikkei-225 Stock Average Index	50.30%	12.11%	8.40%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 71

SCHEDULE OF INVESTMENTS	March 31, 2021
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 15.3%
Guggenheim Ultra Short Duration Fund — Institutional Class1		14,448	$	143,902
Guggenheim Strategy Fund II1		5,636		140,782
Total Mutual Funds
(Cost $283,661)				284,684
	Face Amount
U.S. TREASURY BILLS†† - 15.5%
U.S. Treasury Bills
0.01% due 04/22/212,3	$	290,000		289,998
Total U.S. Treasury Bills
(Cost $289,997)				289,998
FEDERAL AGENCY NOTES†† - 10.7%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/224		100,000		100,316
0.31% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/224		100,000		100,230
Total Federal Agency Notes
(Cost $200,000)				200,546
REPURCHASE AGREEMENTS††,5 - 61.6%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/21		615,642		615,642
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/21		279,901		279,901
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/21		255,453		255,453
Total Repurchase Agreements
(Cost $1,150,996)				1,150,996
Total Investments - 103.1%
(Cost $1,924,654)			$	1,926,224
Other Assets & Liabilities, net - (3.1)%				(58,537	)
Total Net Assets - 100.0%			$	1,867,687

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Equity Futures Contracts Purchased†
Nikkei 225 (CME) Index Futures Contracts		26		Jun 2021	$	3,818,100	$	84,264
Currency Futures Contracts Purchased†
Japanese Yen Futures Contracts		34		Jun 2021		3,840,725		(64,489	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	All or a portion of this security is pledged as futures collateral at March 31, 2021.
3	Rate indicated is the effective yield at the time of purchase.
4	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
5	Repurchase Agreements — See Note 6.
	CME — Chicago Mercantile Exchange
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
JAPAN 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	284,684	$	—	$	—	$	284,684
U.S. Treasury Bills		—		289,998		—		289,998
Federal Agency Notes		—		200,546		—		200,546
Repurchase Agreements		—		1,150,996		—		1,150,996
Equity Futures Contracts**		84,264		—		—		84,264
Total Assets	$	368,948	$	1,641,540	$	—	$	2,010,488

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	64,489	$	—	$	—	$	64,489

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	156,143	$	40,000	$	(60,000	)	$	(1,252	)	$	5,891	$	140,782		5,636	$	1,945
Guggenheim Ultra Short Duration Fund — Institutional Class		160,954		21		(20,000	)		(271	)		3,198		143,902		14,448		1,687
	$	317,097	$	40,021	$	(80,000	)	$	(1,523	)	$	9,089	$	284,684			$	3,632

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $489,997)	$	490,544
Investments in affiliated issuers, at value (cost $283,661)		284,684
Repurchase agreements, at value (cost $1,150,996)		1,150,996
Receivables:
Fund shares sold		1,036
Dividends		289
Interest		98
Total assets		1,927,647
Liabilities:
Payable for:
Fund shares redeemed		36,886
Variation margin on futures contracts		17,938
Management fees		1,386
Distribution and service fees		509
Transfer agent and administrative fees		508
Portfolio accounting fees		189
Trustees’ fees*		36
Miscellaneous		2,508
Total liabilities		59,960
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,867,687
Net assets consist of:
Paid in capital	$	3,549,507
Total distributable earnings (loss)		(1,681,820	)
Net assets	$	1,867,687
A-Class:
Net assets	$	254,568
Capital shares outstanding		1,266
Net asset value per share	$	201.08
Maximum offering price per share (Net asset value divided by 95.25%)	$	211.11
C-Class:
Net assets	$	53,300
Capital shares outstanding		292
Net asset value per share	$	182.53
H-Class:
Net assets	$	1,559,819
Capital shares outstanding		7,697
Net asset value per share	$	202.65

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	3,632
Interest		1,623
Total investment income		5,255
Expenses:
Management fees		13,557
Distribution and service fees:
A-Class		529
C-Class		385
H-Class		3,894
Transfer agent and administrative fees		5,021
Portfolio accounting fees		1,808
Professional fees		605
Trustees’ fees*		291
Custodian fees		253
Miscellaneous		2,459
Total expenses		28,802
Less:
Expenses waived by Adviser		(365	)
Net expenses		28,437
Net investment loss		(23,182	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(1,523	)
Swap agreements		93
Futures contracts		1,144,166
Net realized gain		1,142,736
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		442
Investments in affiliated issuers		9,089
Futures contracts		42,466
Net change in unrealized appreciation (depreciation)		51,997
Net realized and unrealized gain		1,194,733
Net increase in net assets resulting from operations	$	1,171,551

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

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(23,182	)	$	14,233
Net realized gain (loss) on investments		1,142,736			(377,386	)
Net change in unrealized appreciation (depreciation) on investments		51,997			(6,787	)
Net increase (decrease) in net assets resulting from operations		1,171,551			(369,940	)
Distributions to shareholders:
A-Class		(1,352	)		(2,129	)
C-Class		(252	)		(330	)
H-Class		(12,629	)		(17,851	)
Total distributions to shareholders		(14,233	)		(20,310	)
Capital share transactions:
Proceeds from sale of shares
A-Class		129,406			444,621
C-Class		25,877			353,184
H-Class		9,996,652			26,008,199
Distributions reinvested
A-Class		1,352			1,354
C-Class		245			321
H-Class		11,506			14,464
Cost of shares redeemed
A-Class		(163,139	)		(458,558	)
C-Class		(16,392	)		(353,755	)
H-Class		(10,253,391	)		(26,780,558	)
Net decrease from capital share transactions		(267,884	)		(770,728	)
Net increase (decrease) in net assets		889,434			(1,160,978	)
Net assets:
Beginning of year		978,253			2,139,231
End of year	$	1,867,687		$	978,253
Capital share activity:
Shares sold
A-Class		746			3,455
C-Class		138			2,897
H-Class		60,690			205,913
Shares issued from reinvestment of distributions
A-Class		7			9
C-Class		1			2
H-Class		60			98
Shares redeemed
A-Class		(967	)		(3,747	)
C-Class		(87	)		(2,928	)
H-Class		(61,589	)		(213,175	)
Net decrease in shares		(1,001	)		(7,476	)

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	94.96		$	119.96		$	136.57		$	102.24		$	78.81
Income (loss) from investment operations:
Net investment income (loss)a		(1.95	)		.91			1.22			(.03	)		(.74	)
Net gain (loss) on investments (realized and unrealized)		109.13			(24.67	)		(17.32	)		38.80	f		24.17
Total from investment operations		107.18			(23.76	)		(16.10	)		38.77			23.43
Less distributions from:
Net investment income		(1.06	)		(1.24	)		(.51	)		—			—
Net realized gains		—			—			—			(4.44	)		—
Total distributions		(1.06	)		(1.24	)		(.51	)		(4.44	)		—
Net asset value, end of period	$	201.08		$	94.96		$	119.96		$	136.57		$	102.24
Total Returnb		112.92	%		(20.15	%)		(11.79	%)		37.94	%		29.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	255		$	141		$	211		$	404		$	389
Ratios to average net assets:
Net investment income (loss)		(1.26	%)		0.70	%		0.93	%		(0.02	%)		(0.80	%)
Total expensesc		1.58	%		1.63	%		1.58	%		1.51	%		1.52	%
Net expensesd		1.56	%		1.57	%		1.56	%		1.51	%		1.52	%
Portfolio turnover rate		15	%		—			—			17	%		1,225	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	87.00		$	110.80		$	127.14		$	96.17		$	74.63
Income (loss) from investment operations:
Net investment income (loss)a		(2.98	)		(.06	)		.19			(.80	)		(1.33	)
Net gain (loss) on investments (realized and unrealized)		99.57			(22.50	)		(16.02	)		36.21	f		22.87
Total from investment operations		96.59			(22.56	)		(15.83	)		35.41			21.54
Less distributions from:
Net investment income		(1.06	)		(1.24	)		(.51	)		—			—
Net realized gains		—			—			—			(4.44	)		—
Total distributions		(1.06	)		(1.24	)		(.51	)		(4.44	)		—
Net asset value, end of period	$	182.53		$	87.00		$	110.80		$	127.14		$	96.17
Total Returnb		111.34	%		(20.75	%)		(12.43	%)		36.90	%		28.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53		$	21		$	30		$	69		$	52
Ratios to average net assets:
Net investment income (loss)		(2.02	%)		(0.05	%)		0.16	%		(0.68	%)		(1.53	%)
Total expensesc		2.32	%		2.38	%		2.33	%		2.26	%		2.27	%
Net expensesd		2.30	%		2.32	%		2.31	%		2.26	%		2.27	%
Portfolio turnover rate		15	%		—			—			17	%		1,225	%

76 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	95.70		$	120.89		$	137.58		$	102.97		$	79.15
Income (loss) from investment operations:
Net investment income (loss)a		(2.07	)		.90			1.09			(.12	)		(.86	)
Net gain (loss) on investments (realized and unrealized)		110.08			(24.85	)		(17.27	)		39.17	f		24.68
Total from investment operations		108.01			(23.95	)		(16.18	)		39.05			23.82
Less distributions from:
Net investment income		(1.06	)		(1.24	)		(.51	)		—			—
Net realized gains		—			—			—			(4.44	)		—
Total distributions		(1.06	)		(1.24	)		(.51	)		(4.44	)		—
Net asset value, end of period	$	202.65		$	95.70		$	120.89		$	137.58		$	102.97
Total Return		112.94	%		(20.17	%)		(11.76	%)		37.95	%		30.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,560		$	817		$	1,898		$	4,946		$	3,145
Ratios to average net assets:
Net investment income (loss)		(1.27	%)		0.69	%		0.83	%		(0.10	%)		(0.95	%)
Total expensesc		1.58	%		1.63	%		1.58	%		1.50	%		1.52	%
Net expensesd		1.56	%		1.58	%		1.57	%		1.50	%		1.52	%
Portfolio turnover rate		15	%		—			—			17	%		1,225	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the year ended March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016.
f	The amount shown for a share outstanding throughout the year does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

STRENGTHENING 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 performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one year period ended March 31, 2021, Strengthening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the underlying index. Strengthening Dollar 2x Strategy Fund H-Class returned -11.86%, compared with a return of -5.88% for its benchmark, the underlying index.

Contributing the most to performance of the underlying index for the year were the Japanese Yen, Swiss Franc and Swedish Krona. The Euro, British Pound, and Canadian Dollar detracted the most from performance.

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

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

78 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	17.4%
Guggenheim Ultra Short Duration Fund — Institutional Class	14.7%
Total	32.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	(11.88%)	0.62%	2.40%
A-Class Shares with sales charge‡	(16.07%)	(0.36%)	1.90%
C-Class Shares	(12.56%)	(0.13%)	1.63%
C-Class Shares with CDSC§	(13.43%)	(0.13%)	1.63%
H-Class Shares	(11.86%)	0.63%	2.41%
U.S. Dollar Index	(5.88%)	(0.29%)	2.08%

Cumulative Fund Performance*

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

THE RYDEX FUNDS ANNUAL REPORT | 79

SCHEDULE OF INVESTMENTS	March 31, 2021
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 32.1%
Guggenheim Strategy Fund II1		27,327	$	682,634
Guggenheim Ultra Short Duration Fund — Institutional Class1		58,216		579,831
Total Mutual Funds
(Cost $1,255,062)				1,262,465
	Face Amount
FEDERAL AGENCY NOTES†† - 30.0%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	500,000		501,583
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		180,000		180,724
Fannie Mae
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/222		500,000		500,976
Total Federal Agency Notes
(Cost $1,180,000)				1,183,283
U.S. TREASURY BILLS†† - 3.0%
U.S. Treasury Bills
0.01% due 04/22/213,4		117,000		116,999
Total U.S. Treasury Bills
(Cost $116,999)				116,999
REPURCHASE AGREEMENTS††,5 - 19.3%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/216		406,014		406,014
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/216		184,594		184,594
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/216		168,470		168,470
Total Repurchase Agreements
(Cost $759,078)				759,078
Total Investments - 84.4%
(Cost $3,311,139)			$	3,321,825
Other Assets & Liabilities, net - 15.6%				613,408
Total Net Assets - 100.0%			$	3,935,233

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Currency Futures Contracts Purchased†
U.S. Dollar Index Futures Contracts		74		Jun 2021	$	6,900,130	$	91,505

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay (Receive)	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Currency Index Swap Agreements††
Goldman Sachs International	U.S. Dollar Index	N/A	At Maturity		06/17/21		10,489	$	977,453	$	4,670

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at March 31, 2021.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
STRENGTHENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	1,262,465	$	—	$	—	$	1,262,465
Federal Agency Notes		—		1,183,283		—		1,183,283
U.S. Treasury Bills		—		116,999		—		116,999
Repurchase Agreements		—		759,078		—		759,078
Currency Futures Contracts**		91,505		—		—		91,505
Currency Index Swap Agreements**		—		4,670		—		4,670
Total Assets	$	1,353,970	$	2,064,030	$	—	$	3,418,000

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,251,036	$	—	$	(610,000	)	$	(2,689	)	$	44,287	$	682,634		27,327	$	14,738
Guggenheim Ultra Short Duration Fund — Institutional Class		1,267,630		—		(710,000	)		(6,569	)		28,770		579,831		58,216		10,054
	$	2,518,666	$	—	$	(1,320,000	)	$	(9,258	)	$	73,057	$	1,262,465			$	24,792

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $1,296,999)	$	1,300,282
Investments in affiliated issuers, at value (cost $1,255,062)		1,262,465
Repurchase agreements, at value (cost $759,078)		759,078
Segregated cash with broker		7,086
Unrealized appreciation on OTC swap agreements		4,670
Receivables:
Fund shares sold		652,833
Dividends		1,296
Interest		252
Total assets		3,987,962
Liabilities:
Payable for:
Fund shares redeemed		33,172
Licensing fees		6,054
Variation margin on futures contracts		4,962
Management fees		2,340
Swap settlement		1,073
Transfer agent and administrative fees		736
Distribution and service fees		707
Portfolio accounting fees		274
Trustees’ fees*		48
Miscellaneous		3,363
Total liabilities		52,729
Commitments and contingent liabilities (Note 12)		—
Net assets	$	3,935,233
Net assets consist of:
Paid in capital	$	23,161,122
Total distributable earnings (loss)		(19,225,889	)
Net assets	$	3,935,233
A-Class:
Net assets	$	1,463,694
Capital shares outstanding		30,199
Net asset value per share	$	48.47
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.89
C-Class:
Net assets	$	34,822
Capital shares outstanding		817
Net asset value per share	$	42.62
H-Class:
Net assets	$	2,436,717
Capital shares outstanding		50,464
Net asset value per share	$	48.29

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	24,792
Interest		5,628
Total investment income		30,420
Expenses:
Management fees		48,603
Distribution and service fees:
A-Class		4,325
C-Class		499
H-Class		9,052
Transfer agent and administrative fees		15,662
Licensing fees		8,047
Portfolio accounting fees		5,401
Professional fees		4,740
Trustees’ fees*		2,128
Custodian fees		887
Miscellaneous		5,133
Total expenses		104,477
Less:
Expenses waived by Adviser		(2,110	)
Net expenses		102,367
Net investment loss		(71,947	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		3
Investments in affiliated issuers		(9,258	)
Swap agreements		(14,257	)
Futures contracts		(503,763	)
Net realized loss		(527,275	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		2,691
Investments in affiliated issuers		73,057
Swap agreements		(50,495	)
Futures contracts		(122,095	)
Net change in unrealized appreciation (depreciation)		(96,842	)
Net realized and unrealized loss		(624,117	)
Net decrease in net assets resulting from operations	$	(696,064	)

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

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(71,947	)	$	17,189
Net realized loss on investments		(527,275	)		(64,902	)
Net change in unrealized appreciation (depreciation) on investments		(96,842	)		86,847
Net increase (decrease) in net assets resulting from operations		(696,064	)		39,134
Distributions to shareholders:
A-Class		(6,655	)		(9,611	)
C-Class		(292	)		(807	)
H-Class		(10,242	)		(35,177	)
Total distributions to shareholders		(17,189	)		(45,595	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,906,912			3,235,923
C-Class		493,961			215,609
H-Class		48,911,545			77,816,276
Distributions reinvested
A-Class		4,700			9,238
C-Class		292			804
H-Class		10,066			34,387
Cost of shares redeemed
A-Class		(2,675,694	)		(2,491,383	)
C-Class		(548,182	)		(919,579	)
H-Class		(56,636,089	)		(72,303,681	)
Net increase (decrease) from capital share transactions		(8,532,489	)		5,597,594
Net increase (decrease) in net assets		(9,245,742	)		5,591,133
Net assets:
Beginning of year		13,180,975			7,589,842
End of year	$	3,935,233		$	13,180,975
Capital share activity:
Shares sold
A-Class		36,511			57,467
C-Class		11,281			4,363
H-Class		976,940			1,436,108
Shares issued from reinvestment of distributions
A-Class		102			173
C-Class		7			17
H-Class		219			648
Shares redeemed
A-Class		(52,229	)		(45,804	)
C-Class		(12,434	)		(19,278	)
H-Class		(1,118,071	)		(1,341,390	)
Net increase (decrease) in shares		(157,674	)		92,304

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	55.34		$	52.46		$	43.45		$	53.23		$	47.68
Income (loss) from investment operations:
Net investment income (loss)a		(.64	)		.16			.19			(.16	)		(.55	)
Net gain (loss) on investments (realized and unrealized)		(5.95	)		3.17			8.82			(9.62	)		6.10
Total from investment operations		(6.59	)		3.33			9.01			(9.78	)		5.55
Less distributions from:
Net investment income		(.28	)		(.45	)		—			—			—
Total distributions		(.28	)		(.45	)		—			—			—
Net asset value, end of period	$	48.47		$	55.34		$	52.46		$	43.45		$	53.23
Total Returnb		(11.88	%)		6.38	%		20.74	%		(18.37	%)		11.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,464		$	2,535		$	1,782		$	1,517		$	2,245
Ratios to average net assets:
Net investment income (loss)		(1.26	%)		0.29	%		0.40	%		(0.34	%)		(1.07	%)
Total expensesc		1.91	%		2.00	%		1.83	%		1.72	%		1.73	%
Net expensesd		1.87	%		1.96	%		1.82	%		1.72	%		1.73	%
Portfolio turnover rate		—			—			9	%		—			142	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	49.08		$	46.91		$	39.14		$	48.32		$	43.60
Income (loss) from investment operations:
Net investment income (loss)a		(.90	)		(.16	)		(.15	)		(.48	)		(.82	)
Net gain (loss) on investments (realized and unrealized)		(5.28	)		2.78			7.92			(8.70	)		5.54
Total from investment operations		(6.18	)		2.62			7.77			(9.18	)		4.72
Less distributions from:
Net investment income		(.28	)		(.45	)		—			—			—
Total distributions		(.28	)		(.45	)		—			—			—
Net asset value, end of period	$	42.62		$	49.08		$	46.91		$	39.14		$	48.32
Total Returnb		(12.56	%)		5.62	%		19.85	%		(18.98	%)		10.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35		$	96		$	791		$	795		$	1,309
Ratios to average net assets:
Net investment income (loss)		(2.00	%)		(0.33	%)		(0.33	%)		(1.14	%)		(1.80	%)
Total expensesc		2.67	%		2.77	%		2.59	%		2.47	%		2.48	%
Net expensesd		2.63	%		2.72	%		2.58	%		2.47	%		2.48	%
Portfolio turnover rate		—			—			9	%		—			142	%

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	55.12		$	52.25		$	43.27		$	53.03		$	47.49
Income (loss) from investment operations:
Net investment income (loss)a		(.70	)		.12			.18			(.17	)		(.56	)
Net gain (loss) on investments (realized and unrealized)		(5.85	)		3.20			8.80			(9.59	)		6.10
Total from investment operations		(6.55	)		3.32			8.98			(9.76	)		5.54
Less distributions from:
Net investment income		(.28	)		(.45	)		—			—			—
Total distributions		(.28	)		(.45	)		—			—			—
Net asset value, end of period	$	48.29		$	55.12		$	52.25		$	43.27		$	53.03
Total Return		(11.86	%)		6.39	%		20.75	%		(18.39	%)		11.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,437		$	10,549		$	5,017		$	6,301		$	7,506
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		0.22	%		0.36	%		(0.36	%)		(1.11	%)
Total expensesc		1.94	%		2.00	%		1.83	%		1.72	%		1.73	%
Net expensesd		1.90	%		1.96	%		1.82	%		1.72	%		1.73	%
Portfolio turnover rate		—			—			9	%		—			142	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one year period ended March 31, 2021, Weakening Dollar 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the underlying index. Weakening Dollar 2x Strategy Fund H-Class returned 10.29%, compared with a return of -5.88% for its benchmark, the underlying index.

Contributing the most to performance of the underlying index for the year were the Japanese Yen, Swiss Franc and Swedish Krona. The Euro, British Pound, and Canadian Dollar detracted the most from performance.

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

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

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

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but the Fund’s adviser has agreed to waive fees to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in Guggenheim Ultra Short Duration Fund. For the one year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments, investments in Guggenheim Strategy Funds Trust mutual funds, or investments in Guggenheim Ultra Short Duration Fund. 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.

86 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

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	26.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	25.8%
Total	52.3%
“Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	10.32%	(3.19%)	(6.25%)
A-Class Shares with sales charge‡	5.09%	(4.13%)	(6.70%)
C-Class Shares	9.50%	(3.93%)	(6.95%)
C-Class Shares with CDSC§	8.50%	(3.93%)	(6.95%)
H-Class Shares	10.29%	(3.21%)	(6.25%)
U.S. Dollar Index	(5.88%)	(0.29%)	2.08%

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

THE RYDEX FUNDS ANNUAL REPORT | 87

SCHEDULE OF INVESTMENTS	March 31, 2021
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 52.3%
Guggenheim Strategy Fund II1		15,742	$	393,238
Guggenheim Ultra Short Duration Fund — Institutional Class1		38,580		384,261
Total Mutual Funds
(Cost $772,094)				777,499
	Face Amount
FEDERAL AGENCY NOTES†† - 20.9%
Federal Farm Credit Bank
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	250,000		250,792
0.44% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		60,000		60,241
Total Federal Agency Notes
(Cost $310,000)				311,033
U.S. TREASURY BILLS†† - 3.6%
U.S. Treasury Bills
0.01% due 04/22/213,4		54,000		54,000
Total U.S. Treasury Bills
(Cost $54,000)				54,000
REPURCHASE AGREEMENTS††,5 - 27.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/216		217,512		217,512
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/216		98,891		98,891
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/216		90,254		90,254
Total Repurchase Agreements
(Cost $406,657)				406,657
Total Investments - 104.2%
(Cost $1,542,751)			$	1,549,189
Other Assets & Liabilities, net - (4.2)%				(62,408	)
Total Net Assets - 100.0%			$	1,486,781

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Currency Futures Contracts Sold Short†
U.S. Dollar Index Futures Contracts		26		Jun 2021	$	2,424,370	$	(32,638	)

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Depreciation

OTC Currency Index Swap Agreements Sold Short††

Goldman Sachs International

U.S. Dollar Index

N/A

At Maturity

06/17/21

5,978

$

557,034

$

(8,243

)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at March 31, 2021.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at March 31, 2021.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
WEAKENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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
Mutual Funds	$	777,499	$	—	$	—	$	777,499
Federal Agency Notes		—		311,033		—		311,033
U.S. Treasury Bills		—		54,000		—		54,000
Repurchase Agreements		—		406,657		—		406,657
Total Assets	$	777,499	$	771,690	$	—	$	1,549,189

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	32,638	$	—	$	—	$	32,638
Currency Index Swap Agreements**		—		8,243		—		8,243
Total Liabilities	$	32,638	$	8,243	$	—	$	40,881

** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	165,222	$	370,000	$	(150,000	)	$	(423	)	$	8,439	$	393,238		15,742	$	5,662
Guggenheim Ultra Short Duration Fund — Institutional Class		170,685		370,000		(160,000	)		(507	)		4,083		384,261		38,580		3,646
	$	335,907	$	740,000	$	(310,000	)	$	(930	)	$	12,522	$	777,499			$	9,308

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value (cost $364,000)	$	365,033
Investments in affiliated issuers, at value (cost $772,094)		777,499
Repurchase agreements, at value (cost $406,657)		406,657
Receivables:
Fund shares sold		4,084
Variation margin on futures contracts		1,976
Dividends		792
Interest		85
Total assets		1,556,126
Liabilities:
Unrealized depreciation on OTC swap agreements		8,243
Payable for:
Fund shares redeemed		47,749
Swap settlement		6,511
Management fees		1,185
Distribution and service fees		382
Transfer agent and administrative fees		379
Portfolio accounting fees		141
Trustees’ fees*		26
Miscellaneous		4,729
Total liabilities		69,345
Commitments and contingent liabilities (Note 12)		—
Net assets	$	1,486,781
Net assets consist of:
Paid in capital	$	11,338,250
Total distributable earnings (loss)		(9,851,469	)
Net assets	$	1,486,781
A-Class:
Net assets	$	387,087
Capital shares outstanding		6,076
Net asset value per share	$	63.71
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.89
C-Class:
Net assets	$	37,105
Capital shares outstanding		665
Net asset value per share	$	55.80
H-Class:
Net assets	$	1,062,589
Capital shares outstanding		16,709
Net asset value per share	$	63.59

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends from securities of affiliated issuers	$	9,308
Interest		3,616
Total investment income		12,924
Expenses:
Management fees		28,268
Distribution and service fees:
A-Class		1,019
C-Class		292
H-Class		6,760
Transfer agent and administrative fees		8,859
Licensing fees		4,298
Registration fees		3,143
Portfolio accounting fees		3,142
Professional fees		1,701
Trustees’ fees*		772
Custodian fees		462
Miscellaneous		673
Total expenses		59,389
Less:
Expenses waived by Adviser		(813	)
Net expenses		58,576
Net investment loss		(45,652	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,070
Investments in affiliated issuers		(930	)
Swap agreements		57,037
Futures contracts		363,687
Net realized gain		420,864
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		859
Investments in affiliated issuers		12,522
Swap agreements		(11,416	)
Futures contracts		(49	)
Net change in unrealized appreciation (depreciation)		1,916
Net realized and unrealized gain		422,780
Net increase in net assets resulting from operations	$	377,128

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

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(45,652	)	$	3,912
Net realized gain (loss) on investments		420,864			(248,640	)
Net change in unrealized appreciation (depreciation) on investments		1,916			(4,453	)
Net increase (decrease) in net assets resulting from operations		377,128			(249,181	)
Distributions to shareholders:
A-Class		(726	)		(981	)
C-Class		(70	)		(86	)
H-Class		(3,116	)		(11,434	)
Total distributions to shareholders		(3,912	)		(12,501	)
Capital share transactions:
Proceeds from sale of shares
A-Class		686,728			3,412,501
C-Class		81,908			5,000
H-Class		50,241,475			34,836,156
Distributions reinvested
A-Class		690			918
C-Class		70			86
H-Class		2,901			11,032
Cost of shares redeemed
A-Class		(563,534	)		(3,440,177	)
C-Class		(64,608	)		(17,656	)
H-Class		(50,838,141	)		(34,990,291	)
Net decrease from capital share transactions		(452,511	)		(182,431	)
Net decrease in net assets		(79,295	)		(444,113	)
Net assets:
Beginning of year		1,566,076			2,010,189
End of year	$	1,486,781		$	1,566,076
Capital share activity:
Shares sold
A-Class		10,681			54,128
C-Class		1,385			99
H-Class		802,800			565,225
Shares issued from reinvestment of distributions
A-Class		10			15
C-Class		1			2
H-Class		43			179
Shares redeemed
A-Class		(8,718	)		(54,689	)
C-Class		(1,129	)		(320	)
H-Class		(808,775	)		(569,120	)
Net decrease in shares		(3,702	)		(4,481	)

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WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	57.85		$	63.74		$	77.67		$	64.99		$	75.31
Income (loss) from investment operations:
Net investment income (loss)a		(.84	)		.16			.23			(.35	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		6.82			(5.84	)		(14.16	)		13.03			(9.52	)
Total from investment operations		5.98			(5.68	)		(13.93	)		12.68			(10.32	)
Less distributions from:
Net investment income		(.12	)		(.21	)		—			—			—
Total distributions		(.12	)		(.21	)		—			—			—
Net asset value, end of period	$	63.71		$	57.85		$	63.74		$	77.67		$	64.99
Total Returnb		10.32	%		(8.94	%)		(17.93	%)		19.51	%		(13.69	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	387		$	237		$	296		$	3,306		$	324
Ratios to average net assets:
Net investment income (loss)		(1.30	%)		0.26	%		0.32	%		(0.48	%)		(1.13	%)
Total expensesc		1.90	%		2.01	%		1.80	%		1.72	%		1.72	%
Net expensesd		1.86	%		2.00	%		1.80	%		1.72	%		1.72	%
Portfolio turnover rate		48	%		—			—			28	%		77	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	51.07		$	56.74		$	69.66		$	58.72		$	68.57
Income (loss) from investment operations:
Net investment income (loss)a		(1.17	)		(.29	)		(.27	)		(.80	)		(1.19	)
Net gain (loss) on investments (realized and unrealized)		6.02			(5.17	)		(12.65	)		11.74			(8.66	)
Total from investment operations		4.85			(5.46	)		(12.92	)		10.94			(9.85	)
Less distributions from:
Net investment income		(.12	)		(.21	)		—			—			—
Total distributions		(.12	)		(.21	)		—			—			—
Net asset value, end of period	$	55.80		$	51.07		$	56.74		$	69.66		$	58.72
Total Returnb		9.50	%		(9.65	%)		(18.55	%)		18.65	%		(14.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37		$	21		$	36		$	388		$	695
Ratios to average net assets:
Net investment income (loss)		(2.04	%)		(0.53	%)		(0.42	%)		(1.23	%)		(1.88	%)
Total expensesc		2.66	%		2.75	%		2.53	%		2.47	%		2.47	%
Net expensesd		2.62	%		2.73	%		2.53	%		2.47	%		2.47	%
Portfolio turnover rate		48	%		—			—			28	%		77	%

92 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e
Per Share Data
Net asset value, beginning of period	$	57.76		$	63.67		$	77.60		$	64.92		$	75.23
Income (loss) from investment operations:
Net investment income (loss)a		(.93	)		.07			.28			(.36	)		(.85	)
Net gain (loss) on investments (realized and unrealized)		6.88			(5.77	)		(14.21	)		13.04			(9.46	)
Total from investment operations		5.95			(5.70	)		(13.93	)		12.68			(10.31	)
Less distributions from:
Net investment income		(.12	)		(.21	)		—			—			—
Total distributions		(.12	)		(.21	)		—			—			—
Net asset value, end of period	$	63.59		$	57.76		$	63.67		$	77.60		$	64.92
Total Return		10.29	%		(8.98	%)		(17.95	%)		19.55	%		(13.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,063		$	1,308		$	1,678		$	3,267		$	5,068
Ratios to average net assets:
Net investment income (loss)		(1.47	%)		0.12	%		0.41	%		(0.49	%)		(1.19	%)
Total expensesc		1.88	%		1.99	%		1.83	%		1.72	%		1.71	%
Net expensesd		1.86	%		1.97	%		1.83	%		1.72	%		1.71	%
Portfolio turnover rate		48	%		—			—			28	%		77	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Reverse share split — Per share amounts for the year ended March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.

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

NOTES TO FINANCIAL STATEMENTS

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 (each, a “Fund”). The Trust may issue an unlimited number of authorized 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. 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 March 31, 2021, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
S&P 500® Pure Growth Fund	Non-diversified
S&P 500® Pure Value Fund	Non-diversified
S&P MidCap 400® Pure Growth Fund	Non-diversified
S&P MidCap 400® Pure Value Fund	Non-diversified
S&P SmallCap 600® Pure Growth Fund	Non-diversified
S&P SmallCap 600® Pure Value Fund	Non-diversified
Europe 1.25x Strategy Fund	Non-diversified
Japan 2x Strategy Fund	Non-diversified
Strengthening Dollar 2x Strategy Fund	Non-diversified
Weakening Dollar 2x Strategy Fund	Non-diversified

At March 31, 2021, only A-Class, C-Class and H-Class shares have 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 a fund is calculated by dividing the market value of a 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 and other assets 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

94 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are valued at the last quoted sale price.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation 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 appreciation or depreciation 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, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’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 U.S. Treasury securities, 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) 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 appreciation or depreciation. 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 appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

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NOTES TO FINANCIAL STATEMENTS (continued)

(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 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 gain or loss and unrealized appreciation or depreciation 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 appreciation and depreciation 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 Statements 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 March 31, 2021, 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 a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. 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 Real Estate Investment Trusts (“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 realized gains. The actual amounts of income, return of capital, and realized 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 U.S. federal 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 appreciation and depreciation 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 based on the respective 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 0.06% at March 31, 2021.

(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 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.

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Note 2 – Derivatives

As part of their investment strategy, the Funds may utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on 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 are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For 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 Contracts

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 monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Europe 1.25x Strategy Fund	Index exposure, Leverage, Liquidity	$	4,068,082	$	—
Japan 2x Strategy Fund	Index exposure, Leverage, Liquidity		7,354,808		—
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		7,943,199		—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		5,735,267

Swap Agreements

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. When utilizing over-the-counter (“OTC”) swaps, 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 if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and

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NOTES TO FINANCIAL STATEMENTS (continued)

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 exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. 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 following table represents the Funds’ use and volume of currency swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	1,432,896	$	—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		890,329

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 March 31, 2021:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin on futures contracts	Variation margin on futures contracts
Currency contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements

The following tables set forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2021:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Futures Foreign Currency Exchange Risk*		Swaps Currency Risk		Total Value at March 31, 2021
Europe 1.25x Strategy Fund	$	25,568	$	—	$	—	$	25,568
Japan 2x Strategy Fund		84,264		—		—		84,264
Strengthening Dollar 2x Strategy Fund		—		91,505		4,670		96,175

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Futures Foreign Currency Exchange Risk*		Swaps Currency Risk		Total Value at March 31, 2021
Europe 1.25x Strategy Fund	$	—	$	15,786	$	—	$	15,786
Japan 2x Strategy Fund		—		64,489		—		64,489
Weakening Dollar 2x Strategy Fund		—		32,638		8,243		40,881

* Includes cumulative appreciation (depreciation) of exchange-traded, OTC and centrally-cleared derivatives contracts as reported on the Schedules of Investments. For exchange-traded and centrally-cleared derivatives, variation margin is reported within the Statements of Assets and Liabilities.

98 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2021:

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
Currency 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 year ended March 31, 2021:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk		Swaps Equity Risk		Futures Foreign Currency Exchange Risk			Swaps Currency Risk			Total
Europe 1.25x Strategy Fund	$	448,877	$	—	$	125,980		$	—		$	574,857
Japan 2x Strategy Fund		1,276,597		93		(132,431	)		—			1,144,259
Strengthening Dollar 2x Strategy Fund		—		—		(503,763	)		(14,257	)		(518,020	)
Weakening Dollar 2x Strategy Fund		—		—		363,687			57,037			420,724

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk		Futures Foreign Currency Exchange Risk			Swaps Currency Risk			Total
Europe 1.25x Strategy Fund	$	(135,425	)	$	—	$	218		$	—		$	(135,207	)
Japan 2x Strategy Fund		136,690			—		(94,224	)		—			42,466
Strengthening Dollar 2x Strategy Fund		—			—		(122,095	)		(50,495	)		(172,590	)
Weakening Dollar 2x Strategy Fund		—			—		(49	)		(11,416	)		(11,465	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. 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:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	4,670	$	—	$	4,670	$	—	$	—	$	4,670

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged		Net Amount
Weakening Dollar 2x Strategy Fund	Swap currency contracts	$	8,243	$	—	$	8,243	$	(8,243	)	$	—	$	—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

100 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2021.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Strengthening Dollar 2x Strategy Fund	Goldman Sachs International	Futures contracts	$	7,086	$	—

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 – Investment Advisory Agreement and Other Agreements

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	%

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NOTES TO FINANCIAL STATEMENTS (continued)

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million – $1 billion	0.025%
> $1 billion – $2 billion	0.050%
> $2 billion	0.075%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

For the year ended March 31, 2021, GFD retained sales charges of $128,465 relating to sales of A-Class shares of the Trust.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the year ended March 31, 2021, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Europe 1.25x Strategy Fund	$	595
Japan 2x Strategy Fund		365
Strengthening Dollar 2x Strategy Fund		2,110
Weakening Dollar 2x Strategy Fund		813

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

102 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 March 31, 2021, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Bond
0.01%					2.38%
Due 04/01/21	$	124,999,036	$	124,999,053	11/15/49	$	126,141,600	$	127,499,092
Barclays Capital, Inc.					U.S. Treasury Inflation Indexed Bond
0.01%					0.13%
Due 04/01/21		56,830,637		56,830,653	02/15/51		57,053,077		57,967,257
BofA Securities, Inc.					U.S. Treasury Note
0.01%					0.38%
Due 04/01/21		51,866,820		51,866,827	04/30/25		53,449,300		52,904,236

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 fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

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NOTES TO FINANCIAL STATEMENTS (continued)

At March 31, 2021, 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 Value Fund	$	116,994	$	(116,994	)	$	—	$	119,794		$	—	$	119,794
S&P MidCap 400® Pure Value Fund		710,822		(710,822	)		—		744,237			—		744,237
S&P SmallCap 600® Pure Growth Fund		1,078,312		(1,068,144	)		10,168		1,068,144	*		—		1,068,144
S&P SmallCap 600® Pure Value Fund		330,025		(330,025	)		—		332,723			—		332,723
Europe 1.25x Strategy Fund		29,827		(29,827	)		—		30,559			—		30,559

(a)	Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.
*	Subsequent to March 31, 2021, additional collateral was received.

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 or federal excise 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 U.S. 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’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	1,666,873	$	—	$	1,666,873
S&P 500® Pure Value Fund		301,858		—		301,858
S&P MidCap 400® Pure Growth Fund		183,257		607,733		790,990
S&P MidCap 400® Pure Value Fund		28,766		—		28,766
Europe 1.25x Strategy Fund		68,173		—		68,173
Japan 2x Strategy Fund		14,233		—		14,233
Strengthening Dollar 2x Strategy Fund		17,189		—		17,189
Weakening Dollar 2x Strategy Fund		3,912		—		3,912

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
S&P 500® Pure Growth Fund	$	—	$	4,523,222	$	4,523,222
S&P 500® Pure Value Fund		415,316		—		415,316
Europe 1.25x Strategy Fund		61,418		—		61,418
Japan 2x Strategy Fund		20,310		—		20,310
Strengthening Dollar 2x Strategy Fund		45,595		—		45,595
Weakening Dollar 2x Strategy Fund		12,501		—		12,501

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

The tax components of distributable earnings/(loss) as of March 31, 2021 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
S&P 500® Pure Growth Fund	$	570,074	$	1,958,508	$	9,255,291		$	—		$	11,783,873
S&P 500® Pure Value Fund		71,502		—		2,989,779			(6,104,531	)		(3,043,250	)
S&P MidCap 400® Pure Growth Fund		6,277,168		—		14,234,791			—			20,511,959
S&P MidCap 400® Pure Value Fund		1,372,146		—		19,351,753			—			20,723,899
S&P SmallCap 600® Pure Growth Fund		2,458,980		—		6,408,680			—			8,867,660
S&P SmallCap 600® Pure Value Fund		—		—		(489,344	)		(9,547,191	)		(10,036,535	)
Europe 1.25x Strategy Fund		—		—		46,657			(67,433	)		(20,776	)
Japan 2x Strategy Fund		—		—		1,569			(1,683,389	)		(1,681,820	)
Strengthening Dollar 2x Strategy Fund		—		—		10,548			(19,236,437	)		(19,225,889	)
Weakening Dollar 2x Strategy Fund		—		—		6,349			(9,857,818	)		(9,851,469	)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of March 31, 2021, capital loss carryforwards for the Funds were as follows:

	Unlimited
Fund	Short-Term			Long-Term			Total Capital Loss Carryforward
S&P 500® Pure Value Fund	$	(757,600	)	$	(5,346,931	)	$	(6,104,531	)
S&P SmallCap 600® Pure Value Fund		(8,058,414	)		(1,470,714	)		(9,529,128	)
Europe 1.25x Strategy Fund		(65,182	)		—			(65,182	)
Japan 2x Strategy Fund		(346,715	)		(1,327,927	)		(1,674,642	)
Strengthening Dollar 2x Strategy Fund		(7,741,599	)		(11,484,516	)		(19,226,115	)
Weakening Dollar 2x Strategy Fund		(3,952,653	)		(5,898,629	)		(9,851,282	)

For the year ended March 31, 2021, the following capital loss carryforward amounts were utilized:

Fund	Utilized
S&P MidCap 400® Pure Growth Fund	$	1,990,791
S&P SmallCap 600® Pure Growth Fund		1,312,703
Europe 1.25x Strategy Fund		373,339
Japan 2x Strategy Fund		1,185,201
Weakening Dollar 2x Strategy Fund		409,370

THE RYDEX FUNDS ANNUAL REPORT | 105

NOTES TO FINANCIAL STATEMENTS (continued)

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to foreign currency gains and losses, losses deferred due to wash sales, distributions in connection with redemption of fund shares, and the “mark-to-market” of certain derivatives. Additional differences may result from the tax treatment of net operating losses and the deferral of qualified late-year losses. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2021 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
S&P 500® Pure Growth Fund	$	2,328,498		$	(2,328,498	)
S&P MidCap 400® Pure Growth Fund		3,628,199			(3,628,199	)
S&P MidCap 400® Pure Value Fund		457,299			(457,299	)
S&P SmallCap 600® Pure Growth Fund		2,010,048			(2,010,048	)
S&P SmallCap 600® Pure Value Fund		(37,132	)		37,132
Europe 1.25x Strategy Fund		(2,542	)		2,542
Japan 2x Strategy Fund		(14,435	)		14,435
Strengthening Dollar 2x Strategy Fund		(61,625	)		61,625
Weakening Dollar 2x Strategy Fund		(39,116	)		39,116

At March 31, 2021, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Tax Unrealized Appreciation/ (Depreciation)
S&P 500® Pure Growth Fund	$	29,827,105	$	9,914,501	$	(659,210	)	$	9,255,291
S&P 500® Pure Value Fund		54,599,899		3,330,516		(340,737	)		2,989,779
S&P MidCap 400® Pure Growth Fund		52,149,609		15,933,989		(1,699,198	)		14,234,791
S&P MidCap 400® Pure Value Fund		138,971,490		19,595,339		(243,586	)		19,351,753
S&P SmallCap 600® Pure Growth Fund		25,597,061		6,800,519		(391,839	)		6,408,680
S&P SmallCap 600® Pure Value Fund		40,734,414		—		(489,344	)		(489,344	)
Europe 1.25x Strategy Fund		1,815,093		66,376		(19,723	)		46,653
Japan 2x Strategy Fund		1,924,655		74,631		(73,062	)		1,569
Strengthening Dollar 2x Strategy Fund		3,311,277		10,548		—			10,548
Weakening Dollar 2x Strategy Fund		1,542,840		6,349		—			6,349

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2021, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2021:

Fund	Ordinary			Capital
S&P SmallCap 600® Pure Value Fund	$	(18,063	)	$	—
Europe 1.25x Strategy Fund		(2,251	)		—
Japan 2x Strategy Fund		(8,747	)		—
Strengthening Dollar 2x Strategy Fund		(10,322	)		—
Weakening Dollar 2x Strategy Fund		(6,536	)		—

106 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Note 9 – Securities Transactions

For the year ended March 31, 2021, 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	$	109,661,571	$	131,061,118
S&P 500® Pure Value Fund		262,623,144		220,156,139
S&P MidCap 400® Pure Growth Fund		256,793,373		264,314,908
S&P MidCap 400® Pure Value Fund		303,694,413		174,886,278
S&P SmallCap 600® Pure Growth Fund		204,186,241		191,854,915
S&P SmallCap 600® Pure Value Fund		206,907,804		168,749,256
Europe 1.25x Strategy Fund		4,556,001		4,430,553
Japan 2x Strategy Fund		40,021		80,000
Strengthening Dollar 2x Strategy Fund		—		1,320,000
Weakening Dollar 2x Strategy Fund		740,000		310,000

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. 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 year ended March 31, 2021, 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)
S&P 500® Pure Growth Fund	$	16,592,526	$	33,285,612	$	578,644
S&P 500® Pure Value Fund		13,167,609		25,159,417		(245,794	)
S&P MidCap 400® Pure Growth Fund		7,620,533		7,575,467		811,365
S&P MidCap 400® Pure Value Fund		11,764,722		6,572,116		299,190
S&P SmallCap 600® Pure Growth Fund		4,568,071		4,457,549		281,984
S&P SmallCap 600® Pure Value Fund		7,343,904		6,955,521		618,162
Europe 1.25x Strategy Fund		891,689		966,260		18,638

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 expired June 8, 2020. On June 8, 2020, the line of credit agreement was renewed at an increased amount of $150,000,000 and expires on June 7, 2021. On February 10, 2021, the line of credit was increased from $150,000,000 to $200,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the year ended March 31, 2021. The Funds did not have any borrowings outstanding under this agreement at March 31, 2021.

The average daily balances borrowed for the year ended March 31, 2021, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Value Fund	$	16,956
S&P MidCap 400® Pure Growth Fund		9,271
S&P MidCap 400® Pure Value Fund		16,077
S&P SmallCap 600® Pure Growth Fund		11,488
S&P SmallCap 600® Pure Value Fund		2,518
Strengthening Dollar 2x Strategy Fund		162

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NOTES TO FINANCIAL STATEMENTS (continued)

Note 11 – Reverse Share Splits

Effective on August 17, 2020, a reverse share split occurred for the following Fund:

Fund	Split Type
S&P SmallCap 600® Pure Value Fund	One-for-Five 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 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-2296 (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. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020. On July 6, 2020, plaintiffs filed a new petition for a writ of certiorari in the U.S. Supreme Court. In that petition, plaintiffs stated that “[t]o make it more likely that there will be a quorum for this petition,” they have “abandon[ed] the case and let the judgment below stand” with respect to certain defendants. That list did not include the Rydex Series Funds. Defendants filed an opposition to the certiorari

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NOTES TO FINANCIAL STATEMENTS (concluded)

petition on August 26, 2020, and plaintiffs filed a reply in support of the petition for certiorari on September 8, 2020. On March 12, 2021, the Solicitor General filed an amicus brief recommending that certiorari be denied. Plaintiffs filed a supplemental brief in response to the Solicitor General’s amicus brief on March 31, 2021, and Defendants filed a supplemental brief on April 1, 2021.

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 intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

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. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020. Plaintiff filed a reply brief on May 18, 2020. The Court held oral argument on August 24, 2020.

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.

Note 13 – COVID-19

The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

Note 14 – Subsequent Events

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds’ financial statements.

THE RYDEX FUNDS ANNUAL REPORT | 109

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund (collectively referred to as the “Funds”), (ten of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2021, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (ten of the funds constituting Rydex Series Funds) at March 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 26, 2021

110 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Federal Income Tax Information

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

In January 2022, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2021.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2021, the following funds had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2021, the following funds had the corresponding percentages qualify as interest related dividends and qualified short-term capital gains as permitted by IRC Section 871(k)(1) and IRC Section 871(k)(2), respectively. See qualified interest income and qualified short-term capital gain columns, respectively, in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction			Qualified Interest Income			Qualified Short-Term Capital Gain
S&P 500® Pure Growth Fund		0.00	%		0.00	%		0.00	%		100.00	%
S&P 500® Pure Value Fund		93.14	%		91.65	%		0.00	%		0.00	%
S&P MidCap 400® Pure Growth Fund		4.09	%		4.02	%		0.00	%		100.00	%
S&P MidCap 400® Pure Value Fund		28.79	%		27.04	%		0.00	%		0.00	%
Europe 1.25x Strategy Fund		100.00	%		28.77	%		6.93	%		0.00	%

With respect to the taxable year ended March 31, 2021, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

Fund	From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
S&P 500® Pure Growth Fund	$	—	$	2,328,498
S&P MidCap 400® Pure Growth Fund		607,733		3,567,405
S&P SmallCap 600® Pure Growth Fund		—		331,885

Delivery of Shareholder Reports

Paper copies of the Funds’ annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim funds held with your financial intermediary.

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OTHER INFORMATION (Unaudited)(concluded)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at 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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee and Chair of the Valuation Oversight Committee	Since 2019 (Trustee) Since 2020 (Chair of the Valuation Oversight Committee)	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Thomas F. Lydon, Jr. (1960)	Trustee and Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2020 (Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Of Counsel, Momkus LLP (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (2) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). Former: SSGA Master Trust (1) (2018-2020).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2019	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.
***	Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	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, Mutual Fund Administration for 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).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, 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 Chief Compliance Officer, 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); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

THE RYDEX FUNDS ANNUAL REPORT | 117

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, 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.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

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

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request. Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to

THE RYDEX FUNDS ANNUAL REPORT | 119

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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3.31.2021

Rydex Funds Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

GuggenheimInvestments.com ROTC-ANN-2-0321x0322

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
NASDAQ-100® FUND	10
NOTES TO FINANCIAL STATEMENTS	28
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	47
OTHER INFORMATION	49
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	51
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	58

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2021

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for NASDAQ-100^® Fund (the “Fund”). This report covers performance for the 12-month period ended March 31, 2021.

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

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

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

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

Sincerely,

Security Investors, LLC

April 30, 2021

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.

COVID-19. The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Fund’s investments and a shareholder’s investment in the Fund are subject to investment risk, including the possible loss of the entire principal amount invested. Firms through which investors invest with the Fund, the Fund, its service providers, the markets in which it invests and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2021

The Nasdaq-100^® Fund may not be suitable for all investors. ● Investing in the NASDAQ-100^® Fund involves certain risks, which may include increased volatility due to the use of futures and the possibility that companies in which the Fund invests may not be commercially successful or may become obsolete more quickly. ● There are no assurances that any Rydex Fund will achieve its objective and/or strategy. This Fund is subject to active trading and tracking error risks, which may increase volatility, impact the Fund’s ability to achieve its investment objective and may decrease the Fund’s performance. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2021

For the 12-month period ended March 31, 2021, the Standard & Poor’s 500^® (“S&P 500^®”) Index returned 56.35% as the equity market roared back to life after a sharp selloff following the outbreak of COVID-19. This increase was in spite of ongoing personal and economic hardships imposed by COVID-19, highlighting the crucial role of policy support in the form of monetary and fiscal stimulus, which has succeeded in averting a lengthy recession in the U.S. These policy initiatives, particularly on the monetary side, increased market liquidity and lowered borrowing rates, reassuring equity investors that the Federal Reserve (the “Fed”) would do everything in its power to maintain market stability.

Our 2021 U.S. economic growth forecast increased during the first quarter of 2021 from an annualized 5.5% to over 7%, factoring in more fiscal stimulus than previously anticipated. This forecast captures the effect of stimulus representing roughly 11% of 2020–2021 gross domestic product (“GDP”), versus the previous calculation of about 8%. We see strength in the consumer sector and in housing activity. In addition, U.S. vaccinations for COVID-19 continue to accelerate, nearing 3 million doses per day by the end of the first quarter. More than 213 million doses have been administered in the U.S. so far, and about 35% of the U.S. population has been fully vaccinated. The U.S. is seeing the best-case scenario unfold in its vaccine rollout, but other countries have not been as fortunate.

Europe’s vaccine rollout hit a major speedbump during the first quarter when questions surrounding the safety of the AstraZeneca vaccine led several major European countries to temporarily suspend distribution. Safety concerns, coupled with supply constraints, meant that less than 10% of the populations of Germany, France, and Italy had been vaccinated by the end of the first quarter, well under the pace needed to reach 70% inoculated by summer. Any delay in ending the pandemic on a global scale has implications for other countries too, including the U.S., where travel and hospitality workers represent a large share of the unemployed.

Despite vaccination delays in Europe and its implications abroad, we saw meaningful improvement in the domestic labor market during the first quarter as states moved forward with business re-openings. Seasonally adjusted initial jobless claims fell by 97,000 to 684,000 in the week ending March 20, 2021, the lowest level since the pandemic began, before seeing an uptick the following week to 719,000. We saw more positive news across the board in the March payroll report with 916,000 jobs added, and with 156,000 more from revisions. Standing in the way of additional labor market gains are local government restrictions on certain sectors, although easing of these restrictions is expected by summer.

Economic developments drove a sharp increase in U.S. Treasury yields. The market pulled forward expectations of the next Fed rate hike from December 2023 to December 2022, while repricing the long-run terminal Fed funds rate estimate to 2.25% from just 0.55% last August. We do not expect the Fed to raise interest rates as early as the market is anticipating, even though we expect strong GDP growth in coming years.

4 | THE RYDEX FUNDS ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(continued) March 31, 2021

Year-over-year inflation measures will rise over the next several months due to base effects, which may be compounded by supply chain disruptions in the goods sector and potential capacity constraints for certain services. However, these factors could prove to be short-lived, with base effects set to dampen inflation starting in the summer months. Moreover, the Fed is focused on generating sustainably higher inflation. Even if core inflation rises above the Fed’s 2% target in 2021, the Fed’s focus is on a long-term average of 2%. With years of shortfalls to make up, and the Fed now targeting labor market disparities as part of an expanded definition of full employment, we expect policymakers to remain resolutely patient. Any tapering of asset purchases will likely be deferred until later in 2022, with the first rate hike likely to come sometime after that.

Easy financial conditions and low rates will likely support credit over the next few years. With market optimism pulling forward rate hike expectations and causing bond yields to rise, we view this as an opportunity to add incremental yield to portfolios.

For the 12-month period ended March 31, 2021, the S&P 500^® Index* returned, as noted, 56.35%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 44.57%. The return of the MSCI Emerging Markets Index* was 58.39%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 0.71% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 23.72%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.12% for the 12-month period.

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

*Index Definitions:

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

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.

ICE 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 ANNUAL REPORT | 5

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2021

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

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

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

6 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning September 30, 2020 and ending March 31, 2021.

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 ANNUAL REPORT | 7

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.

8 | THE RYDEX FUNDS ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Investor Class	1.29%	14.32%	$ 1,000.00	$ 1,143.20	$ 6.89
A-Class	1.54%	14.20%	1,000.00	1,142.00	8.22
C-Class	2.29%	13.76%	1,000.00	1,137.60	12.20
H-Class	1.55%	14.18%	1,000.00	1,141.80	8.28
Table 2. Based on hypothetical 5% return (before expenses)
Investor Class	1.29%	5.00%	$ 1,000.00	$ 1,018.50	$ 6.49
A-Class	1.54%	5.00%	1,000.00	1,017.25	7.75
C-Class	2.29%	5.00%	1,000.00	1,013.51	11.50
H-Class	1.55%	5.00%	1,000.00	1,017.20	7.80

1	Annualized and excludes expenses of the underlying funds in which the Fund invests, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2020 to March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

NASDAQ-100^® FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for over-the-counter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100^® Index (the “underlying index”).

For the one-year period ended March 31, 2021, NASDAQ-100 Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100^® Index. The Fund Investor Class returned 66.78%, while the NASDAQ-100 Index returned 68.88% over the same time period.

All sectors contributed to the return of the underlying index for the period, led by Information Technology, Consumer Discretionary, and Communication Services.

The holdings contributing the most to the return of the underlying index were Apple, Inc., Amazon.com, Inc., and Microsoft Corp. The holdings detracting the most were Biogen, Inc., Gilead Sciences, Inc., and Peloton Interactive, Inc. - Class A.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage and not for hedging purposes. Derivatives performed as expected.

The Fund may invest in certain of the underlying series of Guggenheim Funds Trust and Guggenheim Strategy Funds Trust, including Guggenheim Ultra Short Duration, Guggenheim Strategy Fund II and Guggenheim Strategy Fund III (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by Guggenheim Investments. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by Guggenheim Investments and/or its affiliates, and are not available to the public, with the exception of Guggenheim Ultra Short Duration Fund, which is available to the public. Guggenheim Strategy Fund II and Guggenheim Strategy Fund III do not charge an investment management fee. Guggenheim Ultra Short Duration Fund charges an investment management fee but that fee is waived by the respective investee fund. For the one-year period ended March 31, 2021, investment in the Short Term Investment Vehicles benefited Fund performance.

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

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	February 14, 1994
A-Class	March 31, 2004
C-Class	March 26, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	10.3%
Microsoft Corp.	9.0%
Amazon.com, Inc.	7.8%
Tesla, Inc.	4.0%
Facebook, Inc. — Class A	3.6%
Alphabet, Inc. — Class C	3.4%
Alphabet, Inc. — Class A	3.1%
NVIDIA Corp.	2.5%
PayPal Holdings, Inc.	2.2%
Intel Corp.	2.0%
Top Ten Total	47.9%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

Cumulative Fund Performance*

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
Investor Class Shares	66.78%	23.53%	18.65%
A-Class Shares	66.37%	23.19%	18.34%
A-Class Shares with sales charge‡	58.47%	22.00%	17.77%
C-Class Shares	65.17%	22.30%	17.47%
C-Class Shares with CDSC§	64.17%	22.30%	17.47%
NASDAQ-100 Index	68.88%	25.22%	20.18%

	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	66.36%	23.22%	18.85%
NASDAQ-100 Index	68.88%	25.22%	20.75%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on the Investor Class shares and A-Class shares only; performance for C-Class shares and H-Class shares will vary due to differences in fee structures.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2021
NASDAQ-100® Fund

	Shares		Value
COMMON STOCKS† - 94.1%
Technology - 41.6%
Apple, Inc.		1,349,888	$	164,888,819
Microsoft Corp.		606,451		142,982,952
NVIDIA Corp.		75,862		40,504,998
Intel Corp.		497,139		31,816,896
Adobe, Inc.*		58,573		27,843,847
Broadcom, Inc.		49,949		23,159,353
Texas Instruments, Inc.		112,599		21,280,085
QUALCOMM, Inc.		138,998		18,429,745
Applied Materials, Inc.		112,283		15,001,009
Intuit, Inc.		33,506		12,834,808
Micron Technology, Inc.*		136,878		12,074,008
Advanced Micro Devices, Inc.*		148,215		11,634,877
Lam Research Corp.		17,486		10,408,367
Fiserv, Inc.*		81,913		9,750,924
Activision Blizzard, Inc.		94,797		8,816,121
Zoom Video Communications, Inc. — Class A*		24,944		8,014,258
Autodesk, Inc.*		26,905		7,456,721
Analog Devices, Inc.		45,137		6,999,846
NXP Semiconductor N.V.		33,894		6,824,218
KLA Corp.		18,852		6,228,701
ASML Holding N.V. — Class G		9,512		5,872,328
Workday, Inc. — Class A*		22,024		5,471,422
Microchip Technology, Inc.		32,946		5,113,878
Cognizant Technology Solutions Corp. — Class A		64,925		5,071,941
Electronic Arts, Inc.		35,193		4,764,076
Cadence Design Systems, Inc.*		34,135		4,676,154
DocuSign, Inc.*		22,827		4,621,326
Synopsys, Inc.*		18,644		4,619,610
Paychex, Inc.		44,126		4,325,231
Marvell Technology Group Ltd.		82,200		4,026,156
NetEase, Inc. ADR		36,660		3,785,512
Xilinx, Inc.		30,012		3,718,487
Skyworks Solutions, Inc.		20,177		3,702,076
ANSYS, Inc.*		10,615		3,604,429
Atlassian Corporation plc — Class A*		16,277		3,430,541
Maxim Integrated Products, Inc.		32,797		2,996,662
Cerner Corp.		37,477		2,693,847
Splunk, Inc.*		19,788		2,680,878
Check Point Software Technologies Ltd.*		17,155		1,920,845
Total Technology				664,045,952
Communications - 29.7%
Amazon.com, Inc.*		40,490		125,279,299
Facebook, Inc. — Class A*		193,416		56,966,815
Alphabet, Inc. — Class C*		26,338		54,483,577
Alphabet, Inc. — Class A*		24,182		49,875,859
Comcast Corp. — Class A		559,323		30,264,968
Netflix, Inc.*		54,192		28,269,799
Cisco Systems, Inc.		516,567		26,711,679
T-Mobile US, Inc.*		152,066		19,052,349
Charter Communications, Inc. — Class A*		23,705		14,626,459
Booking Holdings, Inc.*		5,012		11,677,158
MercadoLibre, Inc.*		6,103		8,984,470
JD.com, Inc. ADR*		101,640		8,571,301
Baidu, Inc. ADR*		33,204		7,223,530
Pinduoduo, Inc. ADR*		42,271		5,659,241

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NASDAQ-100® Fund

	Shares		Value
eBay, Inc.		83,258	$	5,098,720
Match Group, Inc.*		32,911		4,521,313
Okta, Inc.*		14,832		3,269,418
Sirius XM Holdings, Inc.1		506,558		3,084,938
CDW Corp.		17,252		2,859,519
VeriSign, Inc.*		13,838		2,750,441
Trip.com Group Ltd. ADR*		64,463		2,554,669
Fox Corp. — Class A		40,911		1,477,296
Fox Corp. — Class B		31,347		1,094,951
Total Communications				474,357,769
Consumer, Non-cyclical - 12.4%
PayPal Holdings, Inc.*		143,302		34,799,458
PepsiCo, Inc.		168,805		23,877,467
Amgen, Inc.		70,670		17,583,403
Intuitive Surgical, Inc.*		14,404		10,643,692
Mondelez International, Inc. — Class A		172,783		10,112,989
Gilead Sciences, Inc.		153,754		9,937,121
Automatic Data Processing, Inc.		52,362		9,868,666
Illumina, Inc.*		17,852		6,856,239
Vertex Pharmaceuticals, Inc.*		31,808		6,835,221
Moderna, Inc.*		48,915		6,405,419
Regeneron Pharmaceuticals, Inc.*		12,882		6,094,989
Kraft Heinz Co.		149,665		5,986,600
Keurig Dr Pepper, Inc.		172,190		5,918,170
Monster Beverage Corp.*		64,595		5,883,959
Align Technology, Inc.*		9,682		5,243,094
Biogen, Inc.*		18,640		5,214,540
IDEXX Laboratories, Inc.*		10,453		5,114,757
Cintas Corp.		12,851		4,386,175
DexCom, Inc.*		11,768		4,229,301
Alexion Pharmaceuticals, Inc.*		26,900		4,113,279
Verisk Analytics, Inc. — Class A		19,919		3,519,488
Seagen, Inc.*		22,167		3,078,110
Incyte Corp.*		26,899		2,186,082
Total Consumer, Non-cyclical				197,888,219
Consumer, Cyclical - 8.9%
Tesla, Inc.*		95,512		63,795,330
Costco Wholesale Corp.		54,199		19,104,063
Starbucks Corp.		144,052		15,740,562
Marriott International, Inc. — Class A*		39,695		5,879,226
Walgreens Boots Alliance, Inc.		105,722		5,804,138
Ross Stores, Inc.		43,616		5,229,995
Lululemon Athletica, Inc.*		15,310		4,695,730
O’Reilly Automotive, Inc.*		8,590		4,357,277
PACCAR, Inc.		42,451		3,944,547
Peloton Interactive, Inc. — Class A*		32,258		3,627,090
Fastenal Co.		70,275		3,533,427
Dollar Tree, Inc.*		28,778		3,293,930
Copart, Inc.*		28,916		3,140,567
Total Consumer, Cyclical				142,145,882
Utilities - 0.9%
Exelon Corp.		119,462		5,225,268
American Electric Power Company, Inc.		60,763		5,146,626
Xcel Energy, Inc.		65,785		4,375,361
Total Utilities				14,747,255
Industrial - 0.6%
CSX Corp.		93,298		8,995,793
Total Common Stocks
(Cost $444,746,673)			$	1,502,180,870

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NASDAQ-100® Fund

	Shares		Value
MUTUAL FUNDS† - 3.1%
Guggenheim Ultra Short Duration Fund — Institutional Class2		2,563,180	$	25,529,268
Guggenheim Strategy Fund II2		575,584		14,378,100
Guggenheim Strategy Fund III2		370,504		9,314,465
Total Mutual Funds
(Cost $49,178,710)				49,221,833
	Face Amount
U.S. TREASURY BILLS†† - 1.8%
U.S. Treasury Bills
0.01% due 04/06/213	$	15,000,000		14,999,979
0.04% due 04/01/213,4		8,000,000		8,000,000
0.01% due 04/22/213,5		3,828,000		3,827,972
0.09% due 04/01/213,4		1,500,000		1,500,000
U.S. Cash Management Bill
0.03% due 08/03/213		1,000,000		999,901
Total U.S. Treasury Bills
(Cost $29,327,857)				29,327,852
FEDERAL AGENCY NOTES†† - 0.5%
Federal Farm Credit Bank
0.40% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/226		3,000,000		3,011,387
0.27% due 06/09/22		2,000,000		1,999,041
0.45% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 11/23/216		1,400,000		1,403,422

Fannie Mae
0.23% (U.S. Secured Overnight Financing Rate + 0.22%, Rate Floor: 0.00%) due 03/16/226		2,000,000		2,003,901
Total Federal Agency Notes
(Cost $8,399,264)				8,417,751
REPURCHASE AGREEMENTS††,7 - 0.7%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/214		5,900,683		5,900,683
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/214		2,682,738		2,682,738
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/214		2,448,416		2,448,416
Total Repurchase Agreements
(Cost $11,031,837)				11,031,837
	Shares
SECURITIES LENDING COLLATERAL†,8 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%9		2,374,488		2,374,488
Total Securities Lending Collateral
(Cost $2,374,488)				2,374,488
Total Investments - 100.4%
(Cost $545,058,829)			$	1,602,554,631
Other Assets & Liabilities, net - (0.4)%				(6,178,681	)
Total Net Assets - 100.0%			$	1,596,375,950

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NASDAQ-100® Fund

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		241		Jun 2021	$	63,068,495	$	769,277

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Goldman Sachs International	NASDAQ-100 Index	0.64% (1 Week USD LIBOR + 0.55%)	At Maturity		04/08/21		1,791	$	23,448,538	$	520,858
BNP Paribas	NASDAQ-100 Index	0.76% (1 Month USD LIBOR + 0.65%)	At Maturity		04/08/21		295		3,866,563		(179,649	)
Barclays Bank plc	NASDAQ-100 Index	0.59% (1 Week USD LIBOR + 0.50%)	At Maturity		04/07/21		339		4,439,641		(231,389	)
								$	31,754,742	$	109,820

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
NASDAQ-100® Fund

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 on loan at March 31, 2021 — See Note 7.
2	Affiliated issuer.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as equity index swap collateral at March 31, 2021.
5	All or a portion of this security is pledged as futures collateral at March 31, 2021.
6	Variable rate security. Rate indicated is the rate effective at March 31, 2021. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
7	Repurchase Agreements — See Note 6.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7-day yield as of March 31, 2021.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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	$	1,502,180,870	$	—	$	—	$	1,502,180,870
Mutual Funds		49,221,833		—		—		49,221,833
U.S. Treasury Bills		—		29,327,852		—		29,327,852
Federal Agency Notes		—		8,417,751		—		8,417,751
Repurchase Agreements		—		11,031,837		—		11,031,837
Securities Lending Collateral		2,374,488		—		—		2,374,488
Equity Futures Contracts**		769,277		—		—		769,277
Equity Index Swap Agreements**		—		520,858		—		520,858
Total Assets	$	1,554,546,468	$	49,298,298	$	—	$	1,603,844,766

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	411,038	$	—	$	411,038

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
NASDAQ-100® Fund

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Short Term Investment Vehicles”), each of which are open-end management investment companies managed by GI. The Short Term Investment Vehicles, which launched on March 11, 2014, are offered as short term investment options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Short Term Investment Vehicles pay no investment management fees. The Short Term Investment Vehicles’ annual report on Form N-CSR dated September 30, 2020, 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/1601445/000182126820000133/gug81042-ncsr.htm.

Transactions during the year ended March 31, 2021, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/20		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)
Mutual Funds
Guggenheim Strategy Fund II	$	13,842,806	$	—	$	—	$	—	$	535,294
Guggenheim Strategy Fund III		8,569,619		350,000		—		—		394,846
Guggenheim Ultra Short Duration Fund — Institutional Class		15,735,775		9,500,000		—		—		293,493
	$	38,148,200	$	9,850,000	$	—	$	—	$	1,223,633

Security Name	Value 03/31/21		Shares 03/31/21		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	14,378,100		575,584	$	244,136
Guggenheim Strategy Fund III		9,314,465		370,504		161,143
Guggenheim Ultra Short Duration Fund — Institutional Class		25,529,268		2,563,180		209,716
	$	49,221,833			$	614,995

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

STATEMENT OF ASSETS AND LIABILITIES

NASDAQ-100^® Fund

March 31, 2021

Assets:
Investments in unaffiliated issuers, at value - including $2,313,701 of securities loaned (cost $484,848,282)	$	1,542,300,961
Investments in affiliated issuers, at value (cost $49,178,710)		49,221,833
Repurchase agreements, at value (cost $11,031,837)		11,031,837
Segregated cash with broker		47,178
Unrealized appreciation on OTC swap agreements		520,858
Receivables:
Variation margin on futures contracts		995,330
Fund shares sold		746,109
Dividends		260,126
Interest		3,601
Securities lending income		476
Total assets		1,605,128,309
Liabilities:
Unrealized depreciation on OTC swap agreements		411,038
Payable for:
Return of securities lending collateral		2,374,488
Securities purchased		999,901
Management fees		966,191
Swap settlement		875,213
Fund shares redeemed		770,811
Professional fees		376,840
Transfer agent and administrative fees		348,490
Printing		308,022
Distribution and service fees		117,809
Portfolio accounting fees		67,529
Trustees’ fees*		23,427
Miscellaneous		1,112,600
Total liabilities		8,752,359
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,596,375,950
Net assets consist of:
Paid in capital	$	497,387,178
Total distributable earnings (loss)		1,098,988,772
Net assets	$	1,596,375,950
Investor Class:
Net assets	$	1,386,720,784
Capital shares outstanding		21,861,253
Net asset value per share	$	63.43
A-Class:
Net assets	$	69,807,822
Capital shares outstanding		1,211,334
Net asset value per share	$	57.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.50
C-Class:
Net assets	$	115,315,041
Capital shares outstanding		2,364,990
Net asset value per share	$	48.76
H-Class:
Net assets	$	24,532,303
Capital shares outstanding		425,801
Net asset value per share	$	57.61

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

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

STATEMENT OF OPERATIONS

NASDAQ-100^® Fund

Year Ended March 31, 2021

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $15,664)	$	11,650,168
Dividends from securities of affiliated issuers		614,995
Interest		75,218
Income from securities lending, net		6,839
Total investment income		12,347,220
Expenses:
Management fees		11,164,640
Distribution and service fees:
A-Class		149,789
C-Class		1,122,171
H-Class		92,473
Transfer agent and administrative fees		4,168,282
Registration fees		1,422,512
Portfolio accounting fees		784,128
Professional fees		757,800
Trustees’ fees*		301,593
Custodian fees		214,911
Interest expense		2,113
Line of credit fees		23
Miscellaneous		1,044,238
Total expenses		21,224,673
Less:
Expenses waived by Adviser		(46,286	)
Net expenses		21,178,387
Net investment loss		(8,831,167	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	124,858,452
Swap agreements		13,197,218
Futures contracts		34,572,061
Net realized gain		172,627,731
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		537,021,374
Investments in affiliated issuers		1,223,633
Swap agreements		675,752
Futures contracts		(3,151,089	)
Net change in unrealized appreciation (depreciation)		535,769,670
Net realized and unrealized gain		708,397,401
Net increase in net assets resulting from operations	$	699,566,234

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

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

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® Fund

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(8,831,167	)	$	(3,453,284	)
Net realized gain on investments		172,627,731			108,686,367
Net change in unrealized appreciation (depreciation) on investments		535,769,670			(37,088,730	)
Net increase in net assets resulting from operations		699,566,234			68,144,353
Distributions to shareholders:
Investor Class		(57,127,526	)		(20,287,863	)
A-Class		(2,931,676	)		(1,043,499	)
C-Class		(6,450,194	)		(2,257,087	)
H-Class		(2,043,797	)		(648,117	)
Total distributions to shareholders		(68,553,193	)		(24,236,566	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,533,725,604			1,328,414,692
A-Class		26,461,104			30,863,059
C-Class		22,888,440			18,499,187
H-Class		96,094,160			140,487,069
Distributions reinvested
Investor Class		55,008,153			19,606,905
A-Class		2,792,916			977,143
C-Class		6,162,238			2,159,664
H-Class		2,043,207			645,234
Cost of shares redeemed
Investor Class		(1,635,030,147	)		(1,477,875,968	)
A-Class		(25,477,996	)		(52,878,356	)
C-Class		(39,910,076	)		(26,781,762	)
H-Class		(113,048,391	)		(164,617,240	)
Net decrease from capital share transactions		(68,290,788	)		(180,500,373	)
Net increase (decrease) in net assets		562,722,253			(136,592,586	)
Net assets:
Beginning of year		1,033,653,697			1,170,246,283
End of year	$	1,596,375,950		$	1,033,653,697

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

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

NASDAQ-100^® Fund

	Year Ended March 31, 2021			Year Ended March 31, 2020
Capital share activity:
Shares sold
Investor Class		28,111,919			32,616,628
A-Class		526,023			865,992
C-Class		548,678			567,526
H-Class		2,033,470			3,768,582
Shares issued from reinvestment of distributions
Investor Class		913,757			458,320
A-Class		51,031			24,959
C-Class		132,778			64,046
H-Class		37,339			16,485
Shares redeemed
Investor Class		(29,550,246	)		(36,205,571	)
A-Class		(497,139	)		(1,433,295	)
C-Class		(902,170	)		(829,227	)
H-Class		(2,300,380	)		(4,442,249	)
Net decrease in shares		(894,940	)		(4,527,804	)

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

FINANCIAL HIGHLIGHTS

NASDAQ-100^® Fund

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

Investor Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	39.68		$	38.39		$	34.94		$	30.68		$	25.75
Income (loss) from investment operations:
Net investment income (loss)a		(.28	)		(.08	)		(.05	)		(.05	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		26.64			2.21			4.11			6.35			5.47
Total from investment operations		26.36			2.13			4.06			6.30			5.41
Less distributions from:
Net realized gains		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Total distributions		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Net asset value, end of period	$	63.43		$	39.68		$	38.39		$	34.94		$	30.68
Total Return		66.78	%		5.40	%		11.79	%		20.76	%		21.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,386,721		$	888,189		$	979,675		$	926,146		$	760,485
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(0.19	%)		(0.14	%)		(0.14	%)		(0.21	%)
Total expensesb		1.33	%		1.37	%		1.36	%		1.28	%		1.29	%
Net expensesc		1.33	%		1.37	%		1.36	%		1.28	%		1.29	%
Portfolio turnover rate		57	%		54	%		32	%		48	%		72	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® Fund

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	36.29		$	35.26		$	32.22		$	28.49		$	24.04
Income (loss) from investment operations:
Net investment income (loss)a		(.39	)		(.17	)		(.13	)		(.12	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		24.34			2.04			3.78			5.89			5.06
Total from investment operations		23.95			1.87			3.65			5.77			4.93
Less distributions from:
Net realized gains		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Total distributions		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Net asset value, end of period	$	57.63		$	36.29		$	35.26		$	32.22		$	28.49
Total Returnd		66.37	%		5.14	%		11.51	%		20.44	%		20.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,808		$	41,054		$	59,021		$	52,257		$	63,311
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(0.44	%)		(0.38	%)		(0.39	%)		(0.51	%)
Total expensesb		1.58	%		1.62	%		1.61	%		1.53	%		1.53	%
Net expensesc		1.58	%		1.62	%		1.61	%		1.53	%		1.53	%
Portfolio turnover rate		57	%		54	%		32	%		48	%		72	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® Fund

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

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	31.18		$	30.64		$	28.29		$	25.41		$	21.62
Income (loss) from investment operations:
Net investment income (loss)a		(.66	)		(.39	)		(.34	)		(.32	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		20.85			1.77			3.30			5.24			4.55
Total from investment operations		20.19			1.38			2.96			4.92			4.27
Less distributions from:
Net realized gains		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Total distributions		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Net asset value, end of period	$	48.76		$	31.18		$	30.64		$	28.29		$	25.41
Total Returnd		65.17	%		4.31	%		10.70	%		19.57	%		19.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	115,315		$	80,633		$	85,274		$	85,149		$	58,647
Ratios to average net assets:
Net investment income (loss)		(1.50	%)		(1.19	%)		(1.14	%)		(1.15	%)		(1.21	%)
Total expensesb		2.33	%		2.37	%		2.36	%		2.28	%		2.28	%
Net expensesc		2.33	%		2.37	%		2.36	%		2.28	%		2.28	%
Portfolio turnover rate		57	%		54	%		32	%		48	%		72	%

26 | THE RYDEX FUNDS 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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	36.28		$	35.26		$	32.22		$	28.49		$	24.00
Income (loss) from investment operations:
Net investment income (loss)a		(.38	)		(.16	)		(.13	)		(.12	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		24.32			2.02			3.78			5.89			5.11
Total from investment operations		23.94			1.86			3.65			5.77			4.97
Less distributions from:
Net realized gains		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Total distributions		(2.61	)		(.84	)		(.61	)		(2.04	)		(.48	)
Net asset value, end of period	$	57.61		$	36.28		$	35.26		$	32.22		$	28.49
Total Return		66.36	%		5.11	%		11.51	%		20.49	%		20.92	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,532		$	23,777		$	46,276		$	64,483		$	53,441
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(0.43	%)		(0.37	%)		(0.37	%)		(0.57	%)
Total expensesb		1.59	%		1.62	%		1.61	%		1.53	%		1.54	%
Net expensesc		1.59	%		1.62	%		1.61	%		1.53	%		1.54	%
Portfolio turnover rate		57	%		54	%		32	%		48	%		72	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Does not include expenses of the underlying funds in which the Fund invests.
c	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
d	Total return does not reflect the impact of any applicable sales charges.

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

NOTES TO FINANCIAL STATEMENTS

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 may issue an unlimited number of authorized 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. C-Class shares automatically convert to A-Class shares on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. 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 March 31, 2021, the Trust consisted of fifty-two funds (the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”), a non-diversified investment company.

At March 31, 2021, A-Class, C-Class, Investor Class and H-Class shares have 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.

28 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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 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 and other assets 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 or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

THE RYDEX FUNDS ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (continued)

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

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.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation 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 the Fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’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 U.S. Treasury securities, 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 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.

30 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

(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 are recorded by the Fund as unrealized appreciation or depreciation. 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 appreciation or depreciation. 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 Fund invests. 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 March 31, 2021, 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 a reduction to cost if the securities are still held and as realized gains if no longer held in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. 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 Real Estate Investment Trusts (“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 realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

THE RYDEX FUNDS ANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (continued)

(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 U.S. federal income tax regulations which may differ from U.S. GAAP.

(h) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation 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 based on the respective 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 0.06% at March 31, 2021.

(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 – 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 amounts recognized on 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 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

32 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Fund utilized 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 Contracts

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 monthly basis:

	Average Notional Amount
Use	Long
Index exposure, Liquidity	$	61,596,006

Swap Agreements

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. When utilizing OTC swaps, the 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 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 exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay.

THE RYDEX FUNDS ANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (continued)

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 an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset 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. When utilizing total return, the 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 if the underlying reference asset declines in value.

The following table represents the Fund’s use and volume of total return swaps on a monthly basis:

	Average Notional Amount
Use	Long
Index exposure, Liquidity	$	21,921,046

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 March 31, 2021:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation margin on futures contracts	—
	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at March 31, 2021:

Asset Derivative Investments Value
	Futures Equity Risk*		Swaps Equity Risk		Total Value at March 31, 2021
	$	769,277	$	520,858	$	1,290,135

34 | THE RYDEX FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Liability Derivative Investments Value
	Futures Equity Risk*		Swaps Equity Risk		Total Value at March 31, 2021
	$	—	$	411,038	$	411,038

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. For exchange-traded derivatives, 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 year ended March 31, 2021:

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

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the year ended March 31, 2021:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk		Swaps Equity Risk		Total
	$	34,572,061	$	13,197,218	$	47,769,279

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk			Swaps Equity Risk		Total
	$	(3,151,089	)	$	675,752	$	(2,475,337	)

In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Fund uses margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Fund as collateral.

THE RYDEX FUNDS ANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (continued)

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 its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Fund in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Fund, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Fund, as applicable. 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 it believes to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

							Gross Amounts Not Offset in the Statement of Assets and Liabilities
Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amount of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Swap equity contracts	$	520,858	$	—	$	520,858	$	—	$	—	$	520,858

							Gross Amounts Not Offset in the Statement of Assets and Liabilities
Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amount of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged		Net Amount
Swap equity contracts	$	411,038	$	—	$	411,038	$	(411,038	)	$	—	$	—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Fund has the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2021.

Counterparty	Asset Type	Cash Pledged		Cash Received
Goldman Sachs International	Futures contracts	$	47,178	$	—

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 – Investment Advisory Agreement and Other Agreements

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.

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by the Fund (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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NOTES TO FINANCIAL STATEMENTS (continued)

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

For the year ended March 31, 2021, GFD retained sales charges of $128,465 relating to sales of A-Class shares of the Trust.

If the Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. 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 year ended March 31, 2021, the Fund waived $46,286 related to investments in affiliated funds.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

MUFG Investor Services (US), LLC (“MUIS”) acts as the Fund’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Fund’s securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Fund’s custodian. As custodian, U.S. Bank is responsible for the custody of the Fund’s assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of the Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Fund transfers 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

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NOTES TO FINANCIAL STATEMENTS (continued)

Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At March 31, 2021, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Bond
0.01%					2.38%
Due 04/01/21	$	124,999,036	$	124,999,053	11/15/49	$	126,141,600	$	127,499,092
Barclays Capital, Inc.					U.S. Treasury Inflation Indexed Bond
0.01%					0.13%
Due 04/01/21		56,830,637		56,830,653	02/15/51		57,053,077		57,967,257
BofA Securities, Inc.					U.S. Treasury Note
0.01%					0.38%
Due 04/01/21		51,866,820		51,866,827	04/30/25		53,449,300		52,904,236

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 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 Funds 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. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although the collateral mitigates the risk, the Fund could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Fund has

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NOTES TO FINANCIAL STATEMENTS (continued)

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 March 31, 2021, the Fund participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

Gross Amounts Not Offset in the Statement of Assets and Liabilities							Securities Lending Collateral
Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
$	2,313,701	$	(2,313,701	)	$	—	$	2,374,488	$	—	$	2,374,488

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

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 or federal excise 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 U.S. federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund’s U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

Ordinary Income		Long-Term Capital Gain		Total Distributions
$	14,003,461	$	54,549,732	$	68,553,193

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Ordinary Income		Long-Term Capital Gain		Total Distributions
$	157,143	$	24,079,423	$	24,236,566

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

The tax components of distributable earnings/(loss) as of March 31, 2021 were as follows:

Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)		Accumulated Capital and Other Losses		Total
$	71,808,723	$	17,530,058	$	1,009,649,991	$	—	$	1,098,988,772

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to losses deferred due to wash sales, distributions in connection with redemption of fund shares, and the “mark-to-market” of certain derivatives. Additional differences may result from the tax treatment of net operating losses and the tax treatment of bond premium/discount amortization. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statement of Assets and Liabilities as of March 31, 2021 for permanent book/tax differences:

Paid In Capital		Total Distributable Earnings/(Loss)
$	69,783,443	$	(69,783,443	)

At March 31, 2021, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Tax Unrealized Appreciation/ (Depreciation)
$	593,014,460	$	1,013,231,793	$	(3,581,802	)	$	1,009,649,991

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NOTES TO FINANCIAL STATEMENTS (continued)

Note 9 – Securities Transactions

For the year ended March 31, 2021, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Purchases		Sales
$	808,543,346	$	885,691,592

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. The procedures have been designed to ensure that any purchase or sale of securities by the 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 year ended March 31, 2021, the Fund engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Purchases		Sales		Realized Gain
$	244,800,906	$	412,286,478	$	41,793,691

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 expired June 8, 2020. On June 8, 2020, the line of credit agreement was renewed at an increased amount of $150,000,000 and expires on June 7, 2021. On February 10, 2021, the line of credit was increased from $150,000,000 to $200,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the year ended March 31, 2021. The Fund did not have any borrowings outstanding under this agreement at March 31, 2021.

The average daily balance borrowed for the year ended March 31, 2021 was $1,792.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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-2296 (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. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order

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NOTES TO FINANCIAL STATEMENTS (continued)

recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020. On July 6, 2020, plaintiffs filed a new petition for a writ of certiorari in the U.S. Supreme Court. In that petition, plaintiffs stated that “[t]o make it more likely that there will be a quorum for this petition,” they have “abandon[ed] the case and let the judgment below stand” with respect to certain defendants. That list did not include the Rydex Series Funds. Defendants filed an opposition to the certiorari petition on August 26, 2020, and plaintiffs filed a reply in support of the petition for certiorari on September 8, 2020. On March 12, 2021, the Solicitor General filed an amicus brief recommending that certiorari be denied. Plaintiffs filed a supplemental brief in response to the Solicitor General’s amicus brief on March 31, 2021, and Defendants filed a supplemental brief on April 1, 2021.

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 intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

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. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its

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NOTES TO FINANCIAL STATEMENTS (concluded)

intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020. Plaintiff filed a reply brief on May 18, 2020. The Court held oral argument on August 24, 2020.

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.

Note 12 – COVID-19

The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Fund’s investments and a shareholder’s investment in the Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Fund, the Fund, its service providers, the markets in which it invests and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

Note 13 – Subsequent Events

The Fund evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Fund’s financial statements.

46 | THE RYDEX FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of NASDAQ-100^® Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of NASDAQ-100^® Fund (the “Fund”) (one of the funds constituting Rydex Series Funds (the “Trust”)), including the schedule of investments, as of March 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Rydex Series Funds) at March 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities

THE RYDEX FUNDS ANNUAL REPORT | 47

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (concluded)

owned as of March 31, 2021, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 26, 2021

48 | THE RYDEX FUNDS ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Federal Income Tax Information

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

In January 2022, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2021.

The Fund’s investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2021, the Fund had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Additionally, of the taxable ordinary income distributions paid during the fiscal year ended March 31, 2021, the Fund had the corresponding percentages qualify as qualified short-term capital gains as permitted by IRC Section 871(k)(2). See qualified short-term capital gain column in the table below.

Qualified Dividend Income			Dividend Received Deduction			Qualified Short-Term Capital Gain
	100.00	%		100.00	%		100.00	%

With respect to the taxable year ended March 31, 2021, the Fund hereby designates as capital gain dividends the amount listed below, or, if subsequently determined to be different, the net capital gain of such year:

From long-term capital gain:		From long-term capital gain, using proceeds from shareholder redemptions:
$	54,549,732	$	69,783,443

Delivery of Shareholder Reports

Paper copies of the Fund’s annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

THE RYDEX FUNDS ANNUAL REPORT | 49

OTHER INFORMATION (Unaudited)(concluded)

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim funds held with your financial intermediary.

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 Fund’s portfolio 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 Fund’s 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. The Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Fund usually classifies 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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Fund’s Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

50 | THE RYDEX FUNDS ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee and Chair of the Valuation Oversight Committee	Since 2019 (Trustee) Since 2020 (Chair of the Valuation Oversight Committee)	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Thomas F. Lydon, Jr. (1960)	Trustee and Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2020 (Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).

THE RYDEX FUNDS ANNUAL REPORT | 51

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - continued
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Of Counsel, Momkus LLP (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (2) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). Former: SSGA Master Trust (1) (2018-2020).

52 | THE RYDEX FUNDS ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS ANNUAL REPORT | 53

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2019	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.
***	Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Fund under the 1940 Act by reason of her position with the Fund’s Investment Manager and/or the parent of the Investment Manager.

54 | THE RYDEX FUNDS ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).

THE RYDEX FUNDS ANNUAL REPORT | 55

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - continued
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	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, Mutual Fund Administration for 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).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, 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 Chief Compliance Officer, 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); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).

56 | THE RYDEX FUNDS ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

THE RYDEX FUNDS ANNUAL REPORT | 57

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, 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.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law. In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do.

THE RYDEX FUNDS ANNUAL REPORT | 59

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

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

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes.

You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

THE RYDEX FUNDS ANNUAL REPORT | 61

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3.31.2021

Rydex Funds Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity 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-ANN-0321x0322

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
EMERGING MARKETS 2x STRATEGY FUND	32
INVERSE EMERGING MARKETS 2x STRATEGY FUND	41
EMERGING MARKETS BOND STRATEGY FUND	48
NOTES TO FINANCIAL STATEMENTS	56
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	72
OTHER INFORMATION	73
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	74
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	79

THE RYDEX FUNDS ANNUAL REPORT | 1

March 31, 2021

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the annual shareholder report for a selection of our alternative strategy funds (the “Fund” or “Funds”) for the one-year period ended March 31, 2021.

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

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

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

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

Sincerely,

Security Investors, LLC

April 30, 2021

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.

COVID-19. The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to investment risk, including the possible loss of the entire principal amount invested. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

The Long Short Equity Fund may not be suitable for all investors. ● The Fund is subject to the risk that the Advisor’s use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. ● It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. ● The Fund’s loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The use of derivatives, such as futures, options and swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund may invest in American Depositary Receipts (“ADRs”) therefore subjecting the value of the Fund’s portfolio to fluctuations in foreign exchange rates. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. See the prospectus for more information on these and additional risks.

2 | THE RYDEX FUNDS ANNUAL REPORT

March 31, 2021

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 information 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 in 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. ● See the prospectus for more information on these and other risks.

THE RYDEX FUNDS ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) March 31, 2021

For the 12-month period ended March 31, 2021, the Standard & Poor’s 500^® (“S&P 500^®”) Index returned 56.35% as the equity market roared back to life after a sharp selloff following the outbreak of COVID-19. This increase was in spite of ongoing personal and economic hardships imposed by COVID-19, highlighting the crucial role of policy support in the form of monetary and fiscal stimulus, which has succeeded in averting a lengthy recession in the U.S. These policy initiatives, particularly on the monetary side, increased market liquidity and lowered borrowing rates, reassuring equity investors that the Federal Reserve (the “Fed”) would do everything in its power to maintain market stability.

Our 2021 U.S. economic growth forecast increased during the first quarter of 2021 from an annualized 5.5% to over 7%, factoring in more fiscal stimulus than previously anticipated. This forecast captures the effect of stimulus representing roughly 11% of 2020–2021 gross domestic product (“GDP”), versus the previous calculation of about 8%. We see strength in the consumer sector and in housing activity. In addition, U.S. vaccinations for COVID-19 continue to accelerate, nearing 3 million doses per day by the end of the first quarter. More than 213 million doses have been administered in the U.S. so far, and about 35% of the U.S. population has been fully vaccinated. The U.S. is seeing the best-case scenario unfold in its vaccine rollout, but other countries have not been as fortunate.

Europe’s vaccine rollout hit a major speedbump during the first quarter when questions surrounding the safety of the AstraZeneca vaccine led several major European countries to temporarily suspend distribution. Safety concerns, coupled with supply constraints, meant that less than 10% of the populations of Germany, France, and Italy had been vaccinated by the end of the first quarter, well under the pace needed to reach 70% inoculated by summer. Any delay in ending the pandemic on a global scale has implications for other countries too, including the U.S., where travel and hospitality workers represent a large share of the unemployed.

Despite vaccination delays in Europe and its implications abroad, we saw meaningful improvement in the domestic labor market during the first quarter as states moved forward with business re-openings. Seasonally adjusted initial jobless claims fell by 97,000 to 684,000 in the week ending March 20, 2021, the lowest level since the pandemic began, before seeing an uptick the following week to 719,000. We saw more positive news across the board in the March payroll report with 916,000 jobs added, and with 156,000 more from revisions. Standing in the way of additional labor market gains are local government restrictions on certain sectors, although easing of these restrictions is expected by summer.

Economic developments drove a sharp increase in U.S. Treasury yields. The market pulled forward expectations of the next Fed rate hike from December 2023 to December 2022, while repricing the long-run terminal Fed funds rate estimate to 2.25% from just 0.55% last August. We do not expect the Fed to raise interest rates as early as the market is anticipating, even though we expect strong GDP growth in coming years.

Year-over-year inflation measures will rise over the next several months due to base effects, which may be compounded by supply chain disruptions in the goods sector and potential capacity constraints for certain services. However, these factors could prove to be short-lived, with base effects set to dampen inflation starting in the summer months. Moreover, the Fed is focused on generating sustainably higher inflation. Even if core inflation rises above the Fed’s 2% target in 2021, the Fed’s focus is on a long-term average of 2%. With years of shortfalls to make up, and the Fed now targeting labor market disparities as part of an expanded definition of full employment, we expect policymakers to remain resolutely patient. Any tapering of asset purchases will likely be deferred until later in 2022, with the first rate hike likely to come sometime after that.

Easy financial conditions and low rates will likely support credit over the next few years. With market optimism pulling forward rate hike expectations and causing bond yields to rise, we view this as an opportunity to add incremental yield to portfolios.

For the 12-month period ended March 31, 2021, the S&P 500^® Index* returned, as noted, 56.35%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 44.57%. The return of the MSCI Emerging Markets Index* was 58.39%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 0.71% return for the 12-month period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 23.72%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.12% for the 12-month period.

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

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ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) March 31, 2021

*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.

BNY Mellon Emerging Markets 50 ADR Index is capitalization-weighted and designed to track the performance of approximately 50 emerging market-based depositary receipts.

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.

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.

ICE 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.

ICE 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.

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.

Morningstar Long/Short Equity Category Average represents long-short portfolios which hold sizable stakes in both long and short positions in equities and related derivatives. Some funds that fall into this category will shift their exposure to long and short positions depending on their macro outlook or the opportunities they uncover through bottom-up research. Some funds may simply hedge long stock positions through exchange traded funds or derivatives. At least 75% of the assets are in equity securities or derivatives.

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

Russell 3000^® Index measures the performance of the largest 3,000 U.S. companies, representing approximately 98% of the investable U.S. equity market

S&P 500^® is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.

THE RYDEX FUNDS ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

The Rydex Emerging Markets 2x Strategy Fund and Rydex Inverse Emerging Markets 2x Strategy Fund 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 to ensure that they are 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.

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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 September 30, 2020 and ending March 31, 2021.

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 ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	1.71%	18.88%	$ 1,000.00	$ 1,188.80	$ 9.33
C-Class	2.46%	18.39%	1,000.00	1,183.90	13.39
P-Class	1.71%	18.82%	1,000.00	1,188.20	9.33
Institutional Class	1.46%	19.03%	1,000.00	1,190.30	7.97
Emerging Markets 2x Strategy Fund
A-Class	1.81%	39.60%	1,000.00	1,396.00	10.81
C-Class	2.55%	39.07%	1,000.00	1,390.70	15.20
H-Class	1.79%	39.58%	1,000.00	1,395.80	10.69
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.95%	(39.38%)	1,000.00	606.20	7.81
C-Class	2.63%	(39.54%)	1,000.00	604.60	10.52
H-Class	1.79%	(38.47%)	1,000.00	615.30	7.21
Emerging Markets Bond Strategy Fund
A-Class	1.61%	(0.31%)	1,000.00	996.90	8.02
C-Class	2.36%	(0.68%)	1,000.00	993.20	11.73
H-Class	1.61%	(0.31%)	1,000.00	996.90	8.02

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ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value September 30, 2020	Ending Account Value March 31, 2021	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	1.71%	5.00%	$ 1,000.00	$ 1,016.40	$ 8.60
C-Class	2.46%	5.00%	1,000.00	1,012.67	12.34
P-Class	1.71%	5.00%	1,000.00	1,016.40	8.60
Institutional Class	1.46%	5.00%	1,000.00	1,017.65	7.34
Emerging Markets 2x Strategy Fund
A-Class	1.81%	5.00%	1,000.00	1,015.91	9.10
C-Class	2.55%	5.00%	1,000.00	1,012.22	12.79
H-Class	1.79%	5.00%	1,000.00	1,016.01	9.00
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.95%	5.00%	1,000.00	1,015.21	9.80
C-Class	2.63%	5.00%	1,000.00	1,011.82	13.19
H-Class	1.79%	5.00%	1,000.00	1,016.01	9.00
Emerging Markets Bond Strategy Fund
A-Class	1.61%	5.00%	1,000.00	1,016.90	8.10
C-Class	2.36%	5.00%	1,000.00	1,013.16	11.85
H-Class	1.61%	5.00%	1,000.00	1,016.90	8.10

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period September 30, 2020 to March 31, 2021.

THE RYDEX FUNDS ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

For the one-year period ended March 31, 2021, the Long Short Equity Fund P-Class returned 35.09%. The two benchmarks used by the Fund in the period, the Morningstar Long/Short Equity Category Average and the S&P 500 Index, returned 24.72% and 56.35%, respectively, for the same one-year period.

Investment Approach

The Fund is managed as an opportunistic long/short strategy, looking to invest in areas of the market where stock prices look priced at a discount vis-à-vis their company fundamentals and risks, while shorting areas of the market that look overpriced or are not compensating for risks appropriately. The strategy philosophy is founded in part on the academic view that markets are primarily efficient—investors require higher compensation for characteristics that increase the riskiness of future cash flows (such as being very small, or having lots of economic sensitivity in the business). Academics have noted that companies exhibiting certain risk factors have on average outperformed safer firms as the ‘risk premium’ leads to better performance. However, unlike most academic research in this field, the Fund’s strategy does not assume historic risk premia are constant. Investors’ perceptions of what is risky can change dramatically over time. Investors can harbor new fears about avoiding the companies that were vulnerable in the most recent economic crisis, or alternatively become over-excited about some new hot technology and completely forget about the risks involved.

The Fund’s strategy is to quantitatively compute what forward-looking compensation level is embedded in a large universe of stocks—and ascertain what broad risk factors are being overvalued or undervalued. The Fund’s portfolio is adaptive to changing market dynamics and aims to buy a highly diversified set of names with undervalued risk factors, and short a highly diversified set of stocks with overvalued characteristics.

The Fund will ordinarily hold simultaneous long and short positions in equity securities or securities markets that provide exposure up to a level equal to 200% of the Fund’s net assets for the long and up to 150% of the Fund’s net assets for the short positions. The Fund intends to maintain a hedged overall net exposure (the difference between the notional value of long positions and the notional value of short positions), typically varying between 0% and 80% net long, in order to maintain lower-than-market volatility and beta, and to seek to provide consistent return above an approximately 30% market weighted internal benchmark. The overall net exposure will change as market opportunities change and may, based on the Fund’s view of current market conditions, be outside this range.

Derivatives in the Fund are used to take short positions as well as long exposure above 100% of NAV (that is, to take leverage). The performance discussion below referencing short position performance would be entirely due to custom basket swap derivatives, and performance of long positions would be partially due to custom basket swap derivatives.

Performance Review

The year started at the depths of market uncertainty regarding the rapidly spreading COVID-19 pandemic and global shutdowns, and ended with a broad-based economic resurgence and strong stimulatory government backdrop. In between those extremes, the Fund navigated a host of rapidly evolving government, corporate, and economic cycles. This year, more than most, required both constant risk diligence, quick position rebalancing, as well as portfolio manager oversight of the quantitative approach in order to appropriately capture the benefits of never-before-seen governmental actions.

The COVID-19 pandemic halted global economies in quick fashion during March of 2020 and, as a result, market returns temporarily cratered in the worst showing since the 2008 Global Financial Crisis. Industries most impacted by global stay-at-home orders were hit the hardest, including airlines, hotels, cruise lines, and brick-and-mortar apparel retailers. Within the energy sector, on top of a big drop in oil demand due to shutdowns, a price war broke out between Russia and Saudi Arabia when they could not agree on the extent of OPEC supply cuts. This led to a collapse in oil prices and even a short stint of negative pricing in the oil futures market. Banks also suffered as investors foresaw big write-offs on loan books as a result of the impact of COVID-19 on company and individual borrowers.

Congress took unusually quick action, passing the CARES act, which provided direct payment to certain U.S. citizens, funding for extended unemployment, and small business relief to prevent layoffs. The Fed was also busy announcing an emergency rate cut with a zero lower bound, and massive quantitative easing and emergency lending facilities. These quick actions helped stabilize the markets and provided a backstop to

10 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

liquidity and credit flow, massively shrinking the “risk premium” across several fixed income asset classes. That low risk premium spilled into the stock market as investors were ready to invest at ever-higher valuations driven by low rates, low credit spreads, the promise of further stimulus, and positive news on COVID-19 vaccines.

The Presidential and Congressional election results led to a manic bullish environment to end the year. A strong emphasis on COVID-19 control and heavy stimulus on the Democratic platform fed the rally in many of the remaining beaten-down industries most impacted by the pandemic.

As 2021 began, interest rates rallied off their generational lows as the market anticipated a re-inflationary environment driven by demand shocks. While this was a bullish economic signal, and stocks broadly continued their advance in the first quarter, the biggest beneficiaries were cyclicals and higher cash flow names. For the first time in years, high growth but less profitable names began to underperform as the discount rates on far distant cash flows began to rise.

The broad market (S&P 500 Index) surged 56.35% off the March 31, 2020 starting point for the fiscal year. Riskier corners of the market achieved even more astounding rebounds. The Russell 2000 small cap benchmark for example notched a 94.8% return for the fiscal year.

At period end, the Fund held about 143% of assets in long securities, and 69% short, for a net-dollar exposure of 74%. The net exposure averaged 73% during the year (ranging between a low of 60% at the start of the fiscal year and a high of 78% in the months right before the election). The realized net beta (sensitivity of daily Fund returns to the S&P 500 index) averaged around 0.60 during the year. The beta is lower than the net dollar exposure because the shorts exhibit higher beta versus the market than the more-defensive long positions.

Fund long positions (on a standalone unlevered basis) averaged a return of 58.9% for the year, while short positions returned 62.6% on a standalone basis. Although standalone returns for long positions was lower than the short positions, the Fund ended with a positive return for the year as the total weight invested in long positions was at the high range of historic net exposure for much of the strong recovery portion of the year.

Compared to our internal benchmark of 30% S&P 500 Index and 70% cash—the Fund positions outperformed by a strong +22.1% excess return. Relative to that blended benchmark, the Fund’s net long bias added most of the excess return. Sector positioning had a positive impact of about +3.1%, with key contributors being a net long in Consumer Discretionary while those names had strong recoveries, as well as a net short in Energy which was one of the few higher-beta sectors that underperformed (at least for most of the fiscal year). The Fund’s fundamental style tilts detracted by about -2%. The Fund’s tilts towards value and high free cash flowing companies began to outperform at the tail end of the year; however, net long positions in higher-profitable companies and larger size firms caused more drag as the risk-on trade firmly set in. Stock selection–after controlling for the style and sector tilts described above–was about flat for the full year.

The portfolio managers kept a close eye on the ‘COVID-19 risk’ inherent in certain narrow industries that most directly suffered or benefited from the pandemic. This was a strong but transient factor that explained so many stock moves this year. It was more difficult for traditional quant techniques to identify due to the uniqueness of the risk factor and lack of historic precedent. Our goal this past year was to understand the risks of both shutdowns and re-openings, and make sure the portfolio was not inadvertently exposed to this unpredictable risk. This approach had a positive impact on the Fund profits and losses and risk control as we were able to quickly rebalance out of winning positions (both long and short) that overreacted to pandemic news and were likely to have massive volatility on the recovery.

Positioning

The Fund maintains its style bias towards less expensive valuation names, while maintaining a quality bias, including higher free cash flow names and stronger profitability bias. However, due to the quite-expensive valuations afforded high growth names, we remain net short growth.

From an industry perspective, the Fund remains net long several defensive sectors with relatively well-priced stocks, including Healthcare, Staples, and Utilities. After being short the Financials sector for a few years, the Fund has closed that out and now remains close to neutral in that sector. The largest net short exposures currently are Materials and Real Estate.

Looking forward, we are starting to see some positive indicators for our valuation disciplined approach. The Democratic presidential and Congressional victories will likely lead to some stock market positives (bigger stimulus, more traditional international dealings) as well as some corporate negatives (higher corporate taxes, more regulations on certain industries). The interest rate markets have started pricing this in with higher yields and a steeper yield curve. These developments have spurred a long-awaited recovery in ‘Value Stocks’. These are generally the

THE RYDEX FUNDS ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(continued) March 31, 2021

companies that deliver strong earnings increases during robust economic environments. Meanwhile, strong secular growth companies within each industry have had solid fundamentals in recent years, but their prices have already incorporated much of the longer-term growth. As long-term rates rise, the discounting of far-off profitability will impact the valuation of those long duration profit streams. The Fund’s style positioning would likely benefit from a steady return to economic growth, higher interest rates, and some of the extreme valuation disparities starting to converge.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
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)
Apple, Inc.	1.2%
Verizon Communications, Inc.	1.1%
International Business Machines Corp.	1.1%
Microsoft Corp.	1.1%
Johnson & Johnson	1.1%
McKesson Corp.	1.1%
Cisco Systems, Inc.	1.1%
SS&C Technologies Holdings, Inc.	1.0%
Molson Coors Beverage Co. — Class B	1.0%
MetLife, Inc.	1.0%
Top Ten Total	10.8%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

12 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	35.04%	5.09%	3.23%
A-Class Shares with sales charge‡	28.67%	4.07%	2.73%
C-Class Shares	34.06%	4.31%	2.47%
C-Class Shares with CDSC§	33.06%	4.31%	2.47%
P-Class Shares	35.09%	5.09%	3.24%
Morningstar Long/Short Equity Category Average**	24.72%	4.90%	4.17%
S&P 500 Index**	56.35%	16.29%	13.91%

	1 Year	5 Year	Since Inception (11/30/11)
Institutional Class Shares	35.47%	5.38%	5.36%
Morningstar Long/Short Equity Category Average**	24.72%	4.90%	4.96%
S&P 500 Index**	56.35%	16.29%	15.55%

*	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 Morningstar Long/Short Equity Category Average and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The Morningstar Long/Short Equity Category Average is the equal-weighted, simple average daily return for all funds in the Morningstar Long/Short Equity Category. The graphs are based on A-Class shares and P-Class shares only; performance for C-Class shares and Institutional Class shares will vary due to differences in fee structure.
**	Effective May 31, 2017, the Fund changed its principal investment strategy. As a result of the investment strategy change, the Fund’s new benchmarks are the Morningstar Long/Short Equity Category Average and S&P 500 Index. Prior to May 31, 2017, the Fund’s benchmark was the HFRX Equity Hedge Index and Russell 3000 Index.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 100.1%
Consumer, Non-cyclical - 31.0%
Johnson & Johnson1		1,120	$	184,072
McKesson Corp.1		926		180,607
Molson Coors Beverage Co. — Class B*,1		3,385		173,143
Amgen, Inc.1		687		170,932
Merck & Company, Inc.1		2,190		168,827
Procter & Gamble Co.1		1,212		164,141
Bristol-Myers Squibb Co.		2,591		163,570
Philip Morris International, Inc.1		1,761		156,271
General Mills, Inc.1		2,521		154,588
Altria Group, Inc.1		3,008		153,889
J M Smucker Co.1		1,184		149,812
Colgate-Palmolive Co.		1,842		145,205
Humana, Inc.		324		135,837
Conagra Brands, Inc.		3,372		126,787
Cardinal Health, Inc.		2,062		125,266
Kimberly-Clark Corp.1		880		122,364
Campbell Soup Co.1		2,428		122,056
Kraft Heinz Co.		3,049		121,960
Kellogg Co.		1,863		117,928
United Rentals, Inc.*		348		114,600
Pfizer, Inc.1		2,995		108,509
Gilead Sciences, Inc.1		1,628		105,218
United Therapeutics Corp.*		542		90,660
Tyson Foods, Inc. — Class A		1,090		80,987
Coca-Cola Co.		1,530		80,646
Quanta Services, Inc.		902		79,358
Ingredion, Inc.1		795		71,486
Regeneron Pharmaceuticals, Inc.*		150		70,971
Kroger Co.		1,959		70,504
DaVita, Inc.*		654		70,481
Cigna Corp.		289		69,863
John B Sanfilippo & Son, Inc.		761		68,772
Sprouts Farmers Market, Inc.*		2,461		65,512
H&R Block, Inc.		2,977		64,898
Quest Diagnostics, Inc.		501		64,298
Post Holdings, Inc.*		576		60,895
Abbott Laboratories		467		55,965
Incyte Corp.*		686		55,751
Vector Group Ltd.		3,989		55,647
CVS Health Corp.1		734		55,219
Laboratory Corporation of America Holdings*		211		53,811
Hologic, Inc.*		699		51,992
Becton Dickinson and Co.		207		50,332
Medtronic plc		389		45,952
Hershey Co.		284		44,917
Hill-Rom Holdings, Inc.		394		43,529
Ionis Pharmaceuticals, Inc.*		957		43,027
UnitedHealth Group, Inc.		109		40,556
Innoviva, Inc.*		3,389		40,499
Constellation Brands, Inc. — Class A		166		37,848
FleetCor Technologies, Inc.*		137		36,802
Anthem, Inc.		101		36,254
Prestige Consumer Healthcare, Inc.*		820		36,146
PepsiCo, Inc.1		250		35,363
PayPal Holdings, Inc.*		139		33,755
Perrigo Company plc		830		33,590
AbbVie, Inc.		310		33,548
Thermo Fisher Scientific, Inc.1		73		33,316
Encompass Health Corp.		403		33,006
USANA Health Sciences, Inc.*		334		32,598
Boston Scientific Corp.*		838		32,389
Mondelez International, Inc. — Class A		399		23,353
Danaher Corp.		103		23,183
Eli Lilly & Co.1		107		19,990
Total Consumer, Non-cyclical				5,293,251
Industrial - 15.9%
General Dynamics Corp.		927		168,306
Parker-Hannifin Corp.		398		125,541
3M Co.		635		122,352
Lockheed Martin Corp.		324		119,718
Vishay Intertechnology, Inc.		4,511		108,625
Acuity Brands, Inc.		627		103,455
Union Pacific Corp.1		415		91,470
Trane Technologies plc		538		89,071
Oshkosh Corp.		714		84,723
Caterpillar, Inc.1		360		83,473
Arrow Electronics, Inc.*		742		82,229
Owens Corning		863		79,474
CSX Corp.		817		78,775
Masco Corp.		1,311		78,529
Fortive Corp.		1,049		74,101
Agilent Technologies, Inc.		572		72,724
Northrop Grumman Corp.		216		69,906
Snap-on, Inc.1		294		67,838
Hubbell, Inc.		362		67,654
AGCO Corp.		465		66,797
Norfolk Southern Corp.		245		65,787
Timken Co.		768		62,339
Eaton Corporation plc		442		61,120
Westinghouse Air Brake Technologies Corp.		683		54,067
Energizer Holdings, Inc.		1,111		52,728
TE Connectivity Ltd.		396		51,128
Lennox International, Inc.		150		46,738
Sanmina Corp.*		1,123		46,470
Waters Corp.*		163		46,320
Lincoln Electric Holdings, Inc.1		368		45,242
Mettler-Toledo International, Inc.*		38		43,916
Hillenbrand, Inc.		892		42,557
AECOM*		657		42,120
Donaldson Company, Inc.		680		39,549
O-I Glass, Inc.*		2,637		38,869
Deere & Co.		93		34,795
Berry Global Group, Inc.*		552		33,893
Westrock Co.		635		33,052
Honeywell International, Inc.		106		23,009
United Parcel Service, Inc. — Class B		135		22,949
Total Industrial				2,721,409

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Value
Technology - 13.8%
Apple, Inc.1		1,610	$	196,661
International Business Machines Corp.1		1,413		188,296
Microsoft Corp.1		798		188,144
SS&C Technologies Holdings, Inc.1		2,494		174,256
Seagate Technology plc		1,547		118,732
Cerner Corp.1		1,537		110,480
Intel Corp.1		1,458		93,312
Dell Technologies, Inc. — Class C*		1,022		90,089
HP, Inc.		2,506		79,566
CDK Global, Inc.		1,456		78,711
Kulicke & Soffa Industries, Inc.		1,406		69,049
Texas Instruments, Inc.		333		62,934
Dropbox, Inc. — Class A*		2,265		60,385
Oracle Corp.1		860		60,346
NetApp, Inc.		818		59,444
Cognizant Technology Solutions Corp. — Class A		726		56,715
Qorvo, Inc.*		304		55,541
Accenture plc — Class A		198		54,698
KLA Corp.		154		50,881
Fiserv, Inc.*		423		50,354
Bandwidth, Inc. — Class A*		395		50,062
Cirrus Logic, Inc.*		582		49,348
VMware, Inc. — Class A*,2		326		49,047
Paychex, Inc.		426		41,757
Microchip Technology, Inc.		254		39,426
NVIDIA Corp.		72		38,443
CSG Systems International, Inc.		829		37,214
Skyworks Solutions, Inc.		197		36,145
Broadcom, Inc.		76		35,238
Western Digital Corp.		526		35,111
Adobe, Inc.*		50		23,768
QUALCOMM, Inc.		175		23,203
Total Technology				2,357,356
Utilities - 11.5%
Evergy, Inc.		2,607		155,195
PPL Corp.1		5,357		154,496
Public Service Enterprise Group, Inc.1		2,558		154,017
Southern Co.1		2,354		146,325
Duke Energy Corp.		1,417		136,783
UGI Corp.		3,103		127,254
Exelon Corp.1		2,814		123,084
IDACORP, Inc.		1,178		117,765
Consolidated Edison, Inc.		1,540		115,192
NiSource, Inc.		4,524		109,074
ONE Gas, Inc.		1,384		106,443
OGE Energy Corp.		3,061		99,054
Pinnacle West Capital Corp.		1,049		85,336
Southwest Gas Holdings, Inc.		1,200		82,452
DTE Energy Co.		551		73,360
CenterPoint Energy, Inc.		3,123		70,736
Sempra Energy		329		43,619
AES Corp.		1,214		32,547
NextEra Energy, Inc.		300		22,683
Dominion Energy, Inc.		105		7,976
Total Utilities				1,963,391
Communications - 11.1%
Verizon Communications, Inc.1		3,347		194,628
Cisco Systems, Inc.1		3,469		179,382
Amazon.com, Inc.*,1		46		142,328
Viavi Solutions, Inc.*,1		8,322		130,655
Alphabet, Inc. — Class C*,1		63		130,324
Facebook, Inc. — Class A*,1		424		124,881
Juniper Networks, Inc.		3,998		101,269
T-Mobile US, Inc.*		714		89,457
AT&T, Inc.1		2,938		88,933
VeriSign, Inc.*		435		86,460
Charter Communications, Inc. — Class A*		138		85,149
Ciena Corp.*		1,409		77,101
Cogent Communications Holdings, Inc.		930		63,947
Sirius XM Holdings, Inc.2		10,404		63,360
Omnicom Group, Inc.1		854		63,324
Motorola Solutions, Inc.		325		61,116
InterDigital, Inc.		797		50,570
Vonage Holdings Corp.*		3,990		47,162
Walt Disney Co.*		225		41,517
Comcast Corp. — Class A1		647		35,009
Netflix, Inc.*		43		22,431
Discovery, Inc. — Class A*		303		13,169
Total Communications				1,892,172
Consumer, Cyclical - 9.0%
Gentex Corp.1		3,176		113,288
AutoZone, Inc.*		80		112,344
Genuine Parts Co.		948		109,579
Allison Transmission Holdings, Inc.1		2,541		103,749
Gentherm, Inc.*		1,360		100,790
Best Buy Company, Inc.1		836		95,981
Lowe’s Companies, Inc.		486		92,428
AutoNation, Inc.*		965		89,957
Cummins, Inc.1		304		78,769
Lear Corp.1		425		77,031
MSC Industrial Direct Company, Inc. — Class A		783		70,619
PACCAR, Inc.		731		67,924
O’Reilly Automotive, Inc.*		123		62,392
Lennar Corp. — Class A		604		61,143
PulteGroup, Inc.		1,062		55,691
Brunswick Corp.		526		50,165
Home Depot, Inc.1		125		38,156
Dolby Laboratories, Inc. — Class A		372		36,724
McDonald’s Corp.		160		35,862
Walmart, Inc.		259		35,180
Costco Wholesale Corp.		70		24,674
Tesla, Inc.*		34		22,710
Total Consumer, Cyclical				1,535,156

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Value
Financial - 7.6%
MetLife, Inc.		2,826	$	171,792
Berkshire Hathaway, Inc. — Class B*,1		521		133,100
Allstate Corp.1		993		114,096
Highwoods Properties, Inc. REIT		2,652		113,877
Travelers Companies, Inc.		596		89,638
Prudential Financial, Inc.		937		85,361
Aflac, Inc.		1,381		70,680
Brandywine Realty Trust REIT		5,451		70,372
Hartford Financial Services Group, Inc.		850		56,771
JPMorgan Chase & Co.		363		55,260
Synchrony Financial		1,306		53,102
Western Union Co.		1,726		42,563
Mastercard, Inc. — Class A		102		36,317
Bank of America Corp.		905		35,014
Wells Fargo & Co.		865		33,796
Sabra Health Care REIT, Inc.		1,881		32,654
Visa, Inc. — Class A		150		31,759
BlackRock, Inc. — Class A		31		23,373
Citigroup, Inc.		308		22,407
American Express Co.		152		21,499
Total Financial				1,293,431
Basic Materials - 0.2%
International Paper Co.		600		32,442
Total Common Stocks
(Cost $14,136,506)				17,088,608
MONEY MARKET FUND† - 2.4%
Invesco Short-Term Investments Trust Treasury Obligations Portfolio Institutional Class, 0.01%3		417,373		417,373
Total Money Market Fund
(Cost $417,373)				417,373
SECURITIES LENDING COLLATERAL†,4 - 0.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%3		86,162		86,162
Total Securities Lending Collateral
(Cost $86,162)				86,162
Total Investments - 103.0%
(Cost $14,640,041)			$	17,592,143
Other Assets & Liabilities, net - (3.0)%				(508,423	)
Total Net Assets - 100.0%			$	17,083,720

Custom Basket Swap Agreements
Counterparty	Reference Obligation	Financing Rate Pay (Receive)	Payment Frequency		Maturity Date	Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Custom Basket Swap Agreements††
Morgan Stanley Capital Services LLC	MS Equity Custom Basket	0.47% (Federal Funds Rate + 0.40%)	At Maturity	03/27/24		$	4,076,680	$	594,342
Goldman Sachs International	GS Equity Custom Basket	0.52% (Federal Funds Rate + 0.45%)	At Maturity	05/06/24			4,074,100		592,177
						$	8,150,780	$	1,186,519
OTC Custom Basket Swap Agreements Sold Short††
Goldman Sachs International	GS Equity Custom Basket	(0.13%) (Federal Funds Rate - 0.20%)	At Maturity	05/06/24		$	5,845,698	$	(701,874	)
Morgan Stanley Capital Services LLC	MS Equity Custom Basket	(0.23%) (Federal Funds Rate - 0.30%)	At Maturity	03/27/24			5,805,752		(716,647	)
						$	11,651,450	$	(1,418,521	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
MS EQUITY LONG CUSTOM BASKET
Utilities
UGI Corp.		738		0.75	%	$	3,938
Southern Co.		560		0.85	%		2,997
Public Service Enterprise Group, Inc.		608		0.90	%		2,792
CenterPoint Energy, Inc.		743		0.41	%		2,186
IDACORP, Inc.		280		0.69	%		2,167
Exelon Corp.		669		0.72	%		1,968
Evergy, Inc.		620		0.91	%		1,730
DTE Energy Co.		131		0.43	%		1,135
Pinnacle West Capital Corp.		249		0.50	%		888
NiSource, Inc.		1,076		0.64	%		742
Sempra Energy		78		0.25	%		731
OGE Energy Corp.		728		0.58	%		713
Duke Energy Corp.		337		0.80	%		649
Consolidated Edison, Inc.		366		0.67	%		517
ONE Gas, Inc.		329		0.62	%		175
NextEra Energy, Inc.		71		0.13	%		74
Dominion Energy, Inc.		25		0.05	%		74
AES Corp.		288		0.19	%		(253	)
Southwest Gas Holdings, Inc.		285		0.48	%		(354	)
PPL Corp.		1,275		0.90	%		(359	)
Total Utilities							22,510
Industrial
Caterpillar, Inc.		85		0.50	%		9,146
AGCO Corp.		110		0.39	%		8,479
Acuity Brands, Inc.		149		0.60	%		8,122
Snap-on, Inc.		70		0.40	%		7,961
Vishay Intertechnology, Inc.		1,073		0.63	%		7,528
Oshkosh Corp.		170		0.49	%		7,147
Owens Corning		205		0.46	%		6,960
TE Connectivity Ltd.		94		0.30	%		5,834
General Dynamics Corp.		220		0.98	%		5,410
Timken Co.		182		0.36	%		4,831
Arrow Electronics, Inc.		176		0.48	%		4,660
Hubbell, Inc.		86		0.39	%		4,516
3M Co.		151		0.71	%		3,924
Eaton Corporation plc		105		0.36	%		3,517
Lincoln Electric Holdings, Inc.		87		0.26	%		3,504
Waters Corp.		38		0.26	%		3,307
Trane Technologies plc		128		0.52	%		2,707
Union Pacific Corp.		98		0.53	%		1,882
Parker-Hannifin Corp.		94		0.73	%		1,583
Energizer Holdings, Inc.		264		0.31	%		1,447
Masco Corp.		312		0.46	%		1,286
Lennox International, Inc.		35		0.27	%		1,242
Northrop Grumman Corp.		51		0.40	%		1,196
O-I Glass, Inc.		627		0.23	%		1,184
Berry Global Group, Inc.		131		0.20	%		927
Agilent Technologies, Inc.		136		0.42	%		883
Mettler-Toledo International, Inc.		9		0.26	%		879
Westinghouse Air Brake Technologies Corp.		162		0.31	%		841
AECOM		156		0.25	%		701
Westrock Co.		151		0.19	%		655
CSX Corp.		194		0.46	%		600
Sanmina Corp.		267		0.27	%		477
Deere & Co.		22		0.20	%		438
United Parcel Service, Inc. — Class B		32		0.13	%		381
Norfolk Southern Corp.		58		0.38	%		354
Honeywell International, Inc.		25		0.13	%		241
Lockheed Martin Corp.		77		0.70	%		126
Fortive Corp.		249		0.43	%		119
Donaldson Company, Inc.		161		0.23	%		(198	)
Hillenbrand, Inc.		212		0.25	%		(514	)
Total Industrial							114,283
Consumer, Non-cyclical
United Rentals, Inc.		83		0.68	%		14,649
McKesson Corp.		220		1.05	%		12,241
Quanta Services, Inc.		214		0.46	%		7,645
Molson Coors Beverage Co. — Class B		805		1.01	%		7,553
Amgen, Inc.		163		0.99	%		6,985
Cardinal Health, Inc.		451		0.67	%		6,703
Johnson & Johnson		266		1.07	%		6,557
Altria Group, Inc.		715		0.90	%		6,457
United Therapeutics Corp.		129		0.53	%		5,888
Kraft Heinz Co.		725		0.71	%		5,703
Procter & Gamble Co.		288		0.96	%		5,268
J M Smucker Co.		282		0.88	%		4,512
Cigna Corp.		68		0.40	%		3,402
H&R Block, Inc.		708		0.38	%		3,300
Philip Morris International, Inc.		419		0.91	%		3,281
DaVita, Inc.		155		0.41	%		3,150
CVS Health Corp.		174		0.32	%		2,992
Sprouts Farmers Market, Inc.		585		0.38	%		2,824
Laboratory Corporation of America Holdings		50		0.31	%		2,788
Tyson Foods, Inc. — Class A		259		0.47	%		2,626
Anthem, Inc.		24		0.21	%		2,603
Abbott Laboratories		111		0.33	%		2,356
Medtronic plc		92		0.27	%		2,315
UnitedHealth Group, Inc.		26		0.24	%		2,165
Colgate-Palmolive Co.		438		0.85	%		2,068
Conagra Brands, Inc.		802		0.74	%		2,038
Eli Lilly & Co.		25		0.11	%		2,006

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Vector Group Ltd.		878		0.30	%	$	1,965
USANA Health Sciences, Inc.		79		0.19	%		1,807
Kroger Co.		466		0.41	%		1,756
Kellogg Co.		443		0.69	%		1,678
Post Holdings, Inc.		137		0.36	%		1,588
Campbell Soup Co.		824		1.02	%		1,574
Thermo Fisher Scientific, Inc.		17		0.19	%		1,530
Hill-Rom Holdings, Inc.		93		0.25	%		1,445
Prestige Consumer Healthcare, Inc.		195		0.21	%		1,439
Constellation Brands, Inc. — Class A		39		0.22	%		1,307
General Mills, Inc.		600		0.90	%		1,264
PayPal Holdings, Inc.		33		0.20	%		1,263
Pfizer, Inc.		713		0.63	%		964
Quest Diagnostics, Inc.		119		0.37	%		911
Humana, Inc.		77		0.79	%		894
PepsiCo, Inc.		59		0.20	%		802
Bristol-Myers Squibb Co.		616		0.95	%		670
Mondelez International, Inc. — Class A		95		0.14	%		606
Coca-Cola Co.		364		0.47	%		579
Hologic, Inc.		166		0.30	%		539
Hershey Co.		67		0.26	%		451
Danaher Corp.		24		0.13	%		366
AbbVie, Inc.		73		0.19	%		298
Ingredion, Inc.		189		0.42	%		283
Becton Dickinson and Co.		49		0.29	%		202
John B Sanfilippo & Son, Inc.		181		0.40	%		166
Kimberly-Clark Corp.		209		0.71	%		118
Encompass Health Corp.		96		0.19	%		1
Perrigo Company plc		197		0.20	%		(184	)
Boston Scientific Corp.		199		0.19	%		(258	)
Incyte Corp.		163		0.32	%		(290	)
FleetCor Technologies, Inc.		32		0.21	%		(551	)
Innoviva, Inc.		806		0.24	%		(589	)
Merck & Company, Inc.		521		0.99	%		(1,006	)
Regeneron Pharmaceuticals, Inc.		35		0.41	%		(1,093	)
Ionis Pharmaceuticals, Inc.		227		0.25	%		(1,955	)
Gilead Sciences, Inc.		387		0.61	%		(2,191	)
Total Consumer, Non-cyclical							148,424
Financial
MetLife, Inc.		672		1.00	%		12,222
Hartford Financial Services Group, Inc.		202		0.33	%		5,715
Berkshire Hathaway, Inc. — Class B		124		0.78	%		5,600
JPMorgan Chase & Co.		86		0.32	%		4,237
Aflac, Inc.		328		0.41	%		4,099
Allstate Corp.		236		0.67	%		3,849
Synchrony Financial		311		0.31	%		3,667
Travelers Companies, Inc.		141		0.52	%		3,578
Bank of America Corp.		215		0.20	%		3,223
Western Union Co.		410		0.25	%		2,023
Highwoods Properties, Inc.		631		0.66	%		1,355
Visa, Inc. — Class A		35		0.18	%		1,156
Wells Fargo & Co.		205		0.20	%		1,132
Mastercard, Inc. — Class A		24		0.21	%		696
BlackRock, Inc. — Class A		7		0.13	%		218
Citigroup, Inc.		73		0.13	%		61
American Express Co.		36		0.12	%		(154	)
Sabra Health Care REIT, Inc.		447		0.19	%		(214	)
Prudential Financial, Inc.		223		0.50	%		(257	)
Brandywine Realty Trust		1,297		0.41	%		(659	)
Total Financial							51,547
Technology
Apple, Inc.		383		1.16	%		24,206
Microsoft Corp.		189		1.09	%		18,361
Seagate Technology plc		368		0.69	%		9,386
HP, Inc.		596		0.46	%		8,816
Kulicke & Soffa Industries, Inc.		334		0.40	%		6,574
Texas Instruments, Inc.		79		0.37	%		6,063
NetApp, Inc.		194		0.35	%		5,956
CDK Global, Inc.		346		0.46	%		5,507
KLA Corp.		36		0.29	%		5,032
SS&C Technologies Holdings, Inc.		593		1.02	%		4,163
Intel Corp.		347		0.54	%		3,866
Dell Technologies, Inc. — Class C		243		0.53	%		3,705
Oracle Corp.		204		0.35	%		3,541
International Business Machines Corp.		336		1.10	%		2,727
Microchip Technology, Inc.		60		0.23	%		2,697
Cirrus Logic, Inc.		138		0.29	%		2,228
Skyworks Solutions, Inc.		46		0.21	%		2,039
QUALCOMM, Inc.		41		0.13	%		1,557
Accenture plc — Class A		47		0.32	%		1,449
Adobe, Inc.		12		0.14	%		1,430
Broadcom, Inc.		18		0.20	%		1,221
Dropbox, Inc. — Class A		539		0.35	%		1,073
Qorvo, Inc.		72		0.32	%		866
Cerner Corp.		366		0.65	%		668
Fiserv, Inc.		100		0.29	%		561
Cognizant Technology Solutions Corp. — Class A		173		0.33	%		550
VMware, Inc. — Class A		77		0.28	%		440
Paychex, Inc.		101		0.24	%		432
NVIDIA Corp.		17		0.22	%		124

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Western Digital Corp.		125		0.20	%	$	(390	)
CSG Systems International, Inc.		197		0.22	%		(480	)
Bandwidth, Inc. — Class A		94		0.29	%		(3,904	)
Total Technology							120,464
Communications
Alphabet, Inc. — Class C		15		0.76	%		13,742
Amazon.com, Inc.		10		0.76	%		11,130
Facebook, Inc. — Class A		100		0.72	%		8,454
Cisco Systems, Inc.		825		1.05	%		7,853
Viavi Solutions, Inc.		1,980		0.76	%		5,717
Discovery, Inc. — Class A		410		0.44	%		4,597
Juniper Networks, Inc.		951		0.59	%		2,742
Ciena Corp.		335		0.45	%		2,592
Motorola Solutions, Inc.		77		0.36	%		2,243
Comcast Corp. — Class A		154		0.20	%		1,968
T-Mobile US, Inc.		170		0.52	%		1,771
Walt Disney Co.		53		0.24	%		1,766
Cogent Communications Holdings, Inc.		221		0.37	%		1,753
Omnicom Group, Inc.		203		0.37	%		1,700
Netflix, Inc.		10		0.13	%		856
VeriSign, Inc.		103		0.50	%		668
Charter Communications, Inc. — Class A		32		0.48	%		(34	)
InterDigital, Inc.		189		0.29	%		(243	)
Sirius XM Holdings, Inc.		2,476		0.37	%		(274	)
Vonage Holdings Corp.		949		0.28	%		(851	)
Verizon Communications, Inc.		796		1.14	%		(964	)
AT&T, Inc.		699		0.52	%		(1,582	)
Total Communications							65,604
Consumer, Cyclical
Gentherm, Inc.		323		0.60	%		12,461
Lear Corp.		101		0.45	%		7,531
Cummins, Inc.		72		0.46	%		6,394
AutoNation, Inc.		229		0.52	%		5,340
Gentex Corp.		756		0.66	%		4,844
Brunswick Corp.		125		0.29	%		4,611
AutoZone, Inc.		19		0.65	%		4,434
Genuine Parts Co.		225		0.64	%		3,881
Lowe’s Companies, Inc.		115		0.54	%		3,731
Lennar Corp. — Class A		143		0.36	%		3,230
Home Depot, Inc.		29		0.22	%		2,826
MSC Industrial Direct Company, Inc. — Class A		186		0.41	%		2,819
Dolby Laboratories, Inc. — Class A		88		0.21	%		2,276
PACCAR, Inc.		174		0.40	%		2,196
PulteGroup, Inc.		252		0.32	%		2,011
Best Buy Company, Inc.		199		0.56	%		1,244
O’Reilly Automotive, Inc.		29		0.36	%		1,168
McDonald’s Corp.		38		0.21	%		1,046
Walmart, Inc.		61		0.20	%		671
Costco Wholesale Corp.		16		0.14	%		119
Allison Transmission Holdings, Inc.		604		0.60	%		(177	)
Tesla, Inc.		8		0.13	%		(1,491	)
Total Consumer, Cyclical							71,165
Basic Materials
International Paper Co.		142		0.19	%		345
Total MS Equity Long Custom Basket							594,342
MS EQUITY SHORT CUSTOM BASKET
Basic Materials
Southern Copper Corp.		578		(0.68	)%		1,667
LyondellBasell Industries N.V. — Class A		308		(0.55	)%		1,220
Westlake Chemical Corp.		280		(0.43	)%		(150	)
Royal Gold, Inc.		235		(0.44	)%		(308	)
PPG Industries, Inc.		443		(1.15	)%		(1,177	)
Steel Dynamics, Inc.		821		(0.72	)%		(2,493	)
Huntsman Corp.		1,583		(0.79	)%		(4,326	)
Axalta Coating Systems Ltd.		1,346		(0.69	)%		(5,014	)
RPM International, Inc.		359		(0.57	)%		(6,931	)
Nucor Corp.		547		(0.76	)%		(7,654	)
United States Steel Corp.		1,537		(0.69	)%		(7,925	)
Air Products and Chemicals, Inc.		394		(1.91	)%		(8,544	)
Balchem Corp.		489		(1.06	)%		(15,694	)
Quaker Chemical Corp.		227		(0.95	)%		(15,922	)
Celanese Corp. — Class A		425		(1.10	)%		(18,622	)
Linde plc		372		(1.79	)%		(20,071	)
Albemarle Corp.		292		(0.73	)%		(20,677	)
Freeport-McMoRan, Inc.		1,152		(0.65	)%		(21,065	)
Total Basic Materials							(153,686	)
Financial
Realty Income Corp.		1,892		(2.07	)%		6,687
Agree Realty Corp.		1,548		(1.79	)%		2,356
Goldman Sachs Group, Inc.		300		(1.69	)%		2,300
UDR, Inc.		570		(0.43	)%		2,283
JBG SMITH Properties		1,471		(0.81	)%		2,216
Federal Realty Investment Trust		322		(0.56	)%		1,741
CyrusOne, Inc.		466		(0.54	)%		1,464
Global Net Lease, Inc.		1,791		(0.56	)%		1,398
QTS Realty Trust, Inc. — Class A		484		(0.52	)%		1,264
Kilroy Realty Corp.		622		(0.70	)%		789

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Nasdaq, Inc.		279		(0.71	)%	$	(83	)
CubeSmart		887		(0.58	)%		(586	)
Host Hotels & Resorts, Inc.		2,325		(0.67	)%		(587	)
Life Storage, Inc.		428		(0.63	)%		(652	)
KKR & Company, Inc. — Class A		694		(0.58	)%		(1,016	)
Digital Realty Trust, Inc.		254		(0.62	)%		(1,363	)
Intercontinental Exchange, Inc.		446		(0.86	)%		(1,399	)
CME Group, Inc. — Class A		246		(0.87	)%		(1,459	)
Equity LifeStyle Properties, Inc.		712		(0.78	)%		(1,785	)
Americold Realty Trust		1,263		(0.84	)%		(2,119	)
Duke Realty Corp.		938		(0.68	)%		(3,287	)
Medical Properties Trust, Inc.		2,669		(0.98	)%		(3,805	)
Healthpeak Properties, Inc.		1,650		(0.90	)%		(4,214	)
Prologis, Inc.		572		(1.04	)%		(4,512	)
S&T Bancorp, Inc.		811		(0.47	)%		(4,790	)
Equinix, Inc.		77		(0.90	)%		(5,194	)
Camden Property Trust		603		(1.14	)%		(5,546	)
Rayonier, Inc.		1,179		(0.65	)%		(5,999	)
TFS Financial Corp.		1,553		(0.54	)%		(6,350	)
First Midwest Bancorp, Inc.		1,096		(0.41	)%		(7,160	)
Alleghany Corp.		130		(1.40	)%		(7,367	)
Southside Bancshares, Inc.		876		(0.58	)%		(7,424	)
First Industrial Realty Trust, Inc.		2,255		(1.78	)%		(8,875	)
Ares Management Corp. — Class A		929		(0.90	)%		(8,913	)
Howard Hughes Corp.		450		(0.74	)%		(8,915	)
EastGroup Properties, Inc.		346		(0.85	)%		(9,137	)
American Tower Corp. — Class A		285		(1.17	)%		(10,165	)
Loews Corp.		805		(0.71	)%		(10,238	)
Terreno Realty Corp.		670		(0.67	)%		(10,425	)
Brookline Bancorp, Inc.		2,944		(0.76	)%		(13,130	)
Sun Communities, Inc.		505		(1.31	)%		(14,013	)
First Financial Bankshares, Inc.		1,196		(0.96	)%		(16,579	)
Rexford Industrial Realty, Inc.		1,521		(1.32	)%		(21,718	)
First Republic Bank		464		(1.33	)%		(28,451	)
Total Financial							(214,758	)
Consumer, Cyclical
Lululemon Athletica, Inc.		188		(0.99	)%		8,534
IAA, Inc.		483		(0.46	)%		3,912
Wingstop, Inc.		140		(0.31	)%		(975	)
Copart, Inc.		541		(1.01	)%		(3,549	)
Avient Corp.		1,719		(1.40	)%		(3,616	)
TJX Companies, Inc.		431		(0.49	)%		(3,773	)
NIKE, Inc. — Class B		410		(0.94	)%		(7,183	)
Delta Air Lines, Inc.		711		(0.59	)%		(7,306	)
Live Nation Entertainment, Inc.		279		(0.41	)%		(9,104	)
Alaska Air Group, Inc.		631		(0.75	)%		(10,711	)
Hilton Worldwide Holdings, Inc.		474		(0.99	)%		(11,191	)
Burlington Stores, Inc.		182		(0.94	)%		(14,454	)
Starbucks Corp.		590		(1.11	)%		(18,391	)
Southwest Airlines Co.		1,052		(1.11	)%		(18,525	)
Scotts Miracle-Gro Co. — Class A		217		(0.92	)%		(26,112	)
Total Consumer, Cyclical							(122,444	)
Industrial
Worthington Industries, Inc.		487		(0.56	)%		1,731
Exponent, Inc.		253		(0.42	)%		(142	)
Raytheon Technologies Corp.		434		(0.58	)%		(855	)
TransDigm Group, Inc.		55		(0.56	)%		(1,986	)
US Ecology, Inc.		643		(0.46	)%		(2,645	)
HEICO Corp.		197		(0.43	)%		(3,207	)
Boeing Co.		72		(0.32	)%		(3,386	)
Ball Corp.		989		(1.44	)%		(7,901	)
Martin Marietta Materials, Inc.		143		(0.83	)%		(9,428	)
Crown Holdings, Inc.		404		(0.68	)%		(9,617	)
AptarGroup, Inc.		709		(1.73	)%		(10,313	)
Ingersoll Rand, Inc.		1,341		(1.14	)%		(12,241	)
Vulcan Materials Co.		262		(0.76	)%		(12,388	)
Tetra Tech, Inc.		310		(0.72	)%		(13,006	)
Casella Waste Systems, Inc. — Class A		858		(0.94	)%		(13,982	)
Total Industrial							(99,366	)
Consumer, Non-cyclical
Nevro Corp.		374		(0.90	)%		10,377
Verisk Analytics, Inc. — Class A		283		(0.86	)%		3,418
CoStar Group, Inc.		57		(0.81	)%		950
Moody’s Corp.		100		(0.51	)%		(2,460	)
Equifax, Inc.		251		(0.78	)%		(4,058	)
Avalara, Inc.		117		(0.27	)%		(4,663	)
WD-40 Co.		80		(0.42	)%		(5,473	)
Avery Dennison Corp.		222		(0.70	)%		(16,637	)
Total Consumer, Non-cyclical							(18,546	)
Energy
Valero Energy Corp.		556		(0.69	)%		3,597
Chevron Corp.		606		(1.09	)%		3,006
Exxon Mobil Corp.		606		(0.58	)%		2,858
Cheniere Energy, Inc.		565		(0.70	)%		(121	)
NOV, Inc.		1,547		(0.37	)%		(3,544	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Pioneer Natural Resources Co.		152		(0.42	)%	$	(4,009	)
Hess Corp.		292		(0.36	)%		(5,253	)
Phillips 66		878		(1.23	)%		(5,491	)
Schlumberger N.V.		2,189		(1.03	)%		(6,179	)
ChampionX Corp.		3,561		(1.33	)%		(21,571	)
Ovintiv, Inc.		3,216		(1.32	)%		(31,675	)
Total Energy							(68,382	)
Communications
Q2 Holdings, Inc.		274		(0.47	)%		(5,503	)
Liberty Broadband Corp. — Class C		600		(1.55	)%		(6,560	)
Zendesk, Inc.		259		(0.59	)%		(7,472	)
Total Communications							(19,535	)
Technology
Pegasystems, Inc.		331		(0.65	)%		2,239
Clarivate plc		1,322		(0.60	)%		828
Coupa Software, Inc.		59		(0.26	)%		(385	)
Rapid7, Inc.		411		(0.53	)%		(685	)
Tyler Technologies, Inc.		41		(0.30	)%		(1,461	)
Smartsheet, Inc. — Class A		260		(0.29	)%		(4,539	)
Varonis Systems, Inc.		480		(0.42	)%		(6,027	)
HubSpot, Inc.		37		(0.28	)%		(7,100	)
Total Technology							(17,130	)
Utilities
ALLETE, Inc.		380		(0.44	)%		(576	)
California Water Service Group		622		(0.60	)%		(2,224	)
Total Utilities							(2,800	)
Total MS Equity Short Custom Basket							(716,647	)
GS EQUITY LONG CUSTOM BASKET
Industrial
Caterpillar, Inc.		85		0.48	%		9,117
AGCO Corp.		110		0.39	%		8,469
Acuity Brands, Inc.		149		0.60	%		8,144
Snap-on, Inc.		70		0.40	%		7,928
Vishay Intertechnology, Inc.		1,073		0.63	%		7,503
Owens Corning		205		0.46	%		6,980
Oshkosh Corp.		170		0.50	%		6,684
TE Connectivity Ltd.		94		0.30	%		5,830
General Dynamics Corp.		220		0.98	%		5,474
Timken Co.		182		0.36	%		4,864
Arrow Electronics, Inc.		176		0.48	%		4,628
Hubbell, Inc.		86		0.39	%		4,513
3M Co.		151		0.71	%		3,948
Eaton Corporation plc		105		0.36	%		3,513
Lincoln Electric Holdings, Inc.		87		0.26	%		3,473
Waters Corp.		38		0.27	%		3,298
Trane Technologies plc		128		0.52	%		2,755
Union Pacific Corp.		98		0.53	%		1,892
Parker-Hannifin Corp.		94		0.73	%		1,577
Energizer Holdings, Inc.		264		0.31	%		1,449
Masco Corp.		312		0.46	%		1,279
Lennox International, Inc.		35		0.27	%		1,248
Northrop Grumman Corp.		51		0.41	%		1,206
O-I Glass, Inc.		627		0.23	%		1,172
Berry Global Group, Inc.		131		0.20	%		929
Agilent Technologies, Inc.		136		0.42	%		893
Mettler-Toledo International, Inc.		9		0.26	%		878
Westinghouse Air Brake Technologies Corp.		162		0.31	%		841
AECOM		156		0.25	%		696
Westrock Co.		151		0.19	%		660
CSX Corp.		194		0.46	%		586
Sanmina Corp.		267		0.27	%		473
Deere & Co.		22		0.20	%		400
United Parcel Service, Inc. — Class B		32		0.13	%		383
Norfolk Southern Corp.		58		0.38	%		362
Honeywell International, Inc.		25		0.13	%		226
Fortive Corp.		249		0.43	%		111
Lockheed Martin Corp.		77		0.70	%		106
Donaldson Company, Inc.		161		0.23	%		(204	)
Hillenbrand, Inc.		212		0.25	%		(514	)
Total Industrial							113,770
Financial
MetLife, Inc.		672		1.00	%		12,252
Hartford Financial Services Group, Inc.		202		0.33	%		5,726
Berkshire Hathaway, Inc. — Class B		124		0.78	%		5,561
JPMorgan Chase & Co.		86		0.32	%		4,248
Aflac, Inc.		328		0.41	%		4,082
Allstate Corp.		236		0.67	%		3,878
Synchrony Financial		311		0.31	%		3,663
Travelers Companies, Inc.		141		0.52	%		3,582
Bank of America Corp.		215		0.20	%		3,253
Western Union Co.		410		0.25	%		2,020
Highwoods Properties, Inc.		631		0.67	%		1,328
Visa, Inc. — Class A		35		0.18	%		1,182
Wells Fargo & Co.		205		0.20	%		1,143
Mastercard, Inc. — Class A		24		0.21	%		697
BlackRock, Inc. — Class A		7		0.13	%		204
Citigroup, Inc.		73		0.13	%		54
American Express Co.		36		0.12	%		(167	)
Sabra Health Care REIT, Inc.		447		0.19	%		(210	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Prudential Financial, Inc.		223		0.50	%	$	(253	)
Brandywine Realty Trust		1,297		0.41	%		(652	)
Total Financial							51,591
Consumer, Non-cyclical
United Rentals, Inc.		83		0.67	%		14,648
McKesson Corp.		220		1.05	%		9,813
Amgen, Inc.		163		1.00	%		7,905
Quanta Services, Inc.		214		0.46	%		7,619
Molson Coors Beverage Co. — Class B		805		1.01	%		7,546
Cardinal Health, Inc.		451		0.67	%		7,047
Johnson & Johnson		266		1.07	%		6,443
Altria Group, Inc.		715		0.90	%		6,431
United Therapeutics Corp.		129		0.53	%		5,914
Kraft Heinz Co.		725		0.71	%		5,681
Procter & Gamble Co.		288		0.96	%		4,719
J M Smucker Co.		282		0.88	%		4,498
Philip Morris International, Inc.		419		0.91	%		4,209
Cigna Corp.		68		0.40	%		3,442
H&R Block, Inc.		708		0.38	%		3,290
DaVita, Inc.		155		0.41	%		3,170
CVS Health Corp.		174		0.32	%		2,886
Sprouts Farmers Market, Inc.		585		0.38	%		2,795
Laboratory Corporation of America Holdings		50		0.31	%		2,789
Anthem, Inc.		24		0.21	%		2,610
Tyson Foods, Inc. — Class A		259		0.47	%		2,603
Abbott Laboratories		111		0.33	%		2,256
UnitedHealth Group, Inc.		26		0.24	%		2,148
Colgate-Palmolive Co.		438		0.85	%		2,072
Conagra Brands, Inc.		802		0.74	%		2,047
Eli Lilly & Co.		25		0.11	%		1,993
Vector Group Ltd.		878		0.30	%		1,961
USANA Health Sciences, Inc.		79		0.19	%		1,801
Kroger Co.		466		0.41	%		1,759
Medtronic plc		92		0.27	%		1,707
Kellogg Co.		443		0.69	%		1,619
Ingredion, Inc.		189		0.42	%		1,613
Campbell Soup Co.		824		1.02	%		1,570
Post Holdings, Inc.		137		0.36	%		1,558
Hill-Rom Holdings, Inc.		93		0.25	%		1,456
Prestige Consumer Healthcare, Inc.		195		0.21	%		1,436
Thermo Fisher Scientific, Inc.		17		0.19	%		1,400
Constellation Brands, Inc. — Class A		39		0.22	%		1,313
PayPal Holdings, Inc.		33		0.20	%		1,263
General Mills, Inc.		600		0.90	%		1,249
Humana, Inc.		77		0.79	%		930
Quest Diagnostics, Inc.		119		0.37	%		905
Bristol-Myers Squibb Co.		616		0.95	%		684
Coca-Cola Co.		364		0.47	%		563
Hologic, Inc.		166		0.30	%		551
Mondelez International, Inc. — Class A		95		0.14	%		521
PepsiCo, Inc.		59		0.20	%		474
Hershey Co.		67		0.26	%		461
Danaher Corp.		24		0.13	%		374
AbbVie, Inc.		73		0.19	%		306
Becton Dickinson and Co.		49		0.29	%		202
John B Sanfilippo & Son, Inc.		181		0.40	%		200
Kimberly-Clark Corp.		209		0.71	%		97
Encompass Health Corp.		96		0.19	%		7
Perrigo Company plc		197		0.20	%		(215	)
Boston Scientific Corp.		199		0.19	%		(255	)
Pfizer, Inc.		713		0.63	%		(288	)
Incyte Corp.		163		0.33	%		(303	)
FleetCor Technologies, Inc.		32		0.21	%		(536	)
Innoviva, Inc.		806		0.24	%		(695	)
Regeneron Pharmaceuticals, Inc.		35		0.41	%		(1,016	)
Merck & Company, Inc.		521		0.99	%		(1,040	)
Ionis Pharmaceuticals, Inc.		227		0.25	%		(1,942	)
Gilead Sciences, Inc.		387		0.61	%		(2,178	)
Total Consumer, Non-cyclical							146,086
Basic Materials
International Paper Co.		142		0.19	%		352
Consumer, Cyclical
Gentherm, Inc.		323		0.60	%		12,477
Lear Corp.		101		0.45	%		7,540
Cummins, Inc.		72		0.46	%		6,382
AutoNation, Inc.		229		0.52	%		5,310
Gentex Corp.		756		0.66	%		4,854
Brunswick Corp.		125		0.29	%		4,621
AutoZone, Inc.		19		0.65	%		4,465
Genuine Parts Co.		225		0.64	%		3,912
Lowe’s Companies, Inc.		115		0.54	%		3,744
Lennar Corp. — Class A		143		0.36	%		3,218
MSC Industrial Direct Company, Inc. — Class A		186		0.41	%		2,810
Home Depot, Inc.		29		0.22	%		2,628
Dolby Laboratories, Inc. — Class A		88		0.21	%		2,278
PACCAR, Inc.		174		0.40	%		2,185
PulteGroup, Inc.		252		0.32	%		2,020
Best Buy Company, Inc.		199		0.56	%		1,220
O’Reilly Automotive, Inc.		29		0.36	%		1,207
McDonald’s Corp.		38		0.21	%		1,064
Walmart, Inc.		42		0.14	%		549

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Allison Transmission Holdings, Inc.		604		0.61	%	$	131
Costco Wholesale Corp.		16		0.14	%		102
Tesla, Inc.		8		0.13	%		(1,402	)
Total Consumer, Cyclical							71,315
Technology
Apple, Inc.		383		1.15	%		23,677
Microsoft Corp.		189		1.09	%		16,013
Seagate Technology plc		368		0.69	%		9,388
HP, Inc.		596		0.46	%		8,832
Kulicke & Soffa Industries, Inc.		334		0.40	%		6,610
Texas Instruments, Inc.		79		0.37	%		6,074
NetApp, Inc.		194		0.35	%		5,963
CDK Global, Inc.		346		0.46	%		5,510
KLA Corp.		36		0.29	%		5,025
Intel Corp.		347		0.55	%		4,867
SS&C Technologies Holdings, Inc.		593		1.02	%		4,164
Dell Technologies, Inc. — Class C		243		0.53	%		3,707
Oracle Corp.		204		0.35	%		3,319
Microchip Technology, Inc.		60		0.23	%		2,699
International Business Machines Corp.		336		1.10	%		2,675
Cirrus Logic, Inc.		138		0.29	%		2,247
Skyworks Solutions, Inc.		46		0.21	%		2,045
QUALCOMM, Inc.		41		0.13	%		1,538
Adobe, Inc.		12		0.14	%		1,425
Accenture plc — Class A		47		0.32	%		1,395
Broadcom, Inc.		18		0.20	%		1,192
Dropbox, Inc. — Class A		539		0.35	%		1,055
Qorvo, Inc.		72		0.32	%		864
Cerner Corp.		366		0.65	%		673
Fiserv, Inc.		100		0.29	%		559
Cognizant Technology Solutions Corp. — Class A		173		0.33	%		549
VMware, Inc. — Class A		77		0.28	%		436
Paychex, Inc.		101		0.24	%		432
NVIDIA Corp.		17		0.22	%		113
Western Digital Corp.		125		0.20	%		(407	)
CSG Systems International, Inc.		197		0.22	%		(482	)
Bandwidth, Inc. — Class A		94		0.29	%		(3,892	)
Total Technology							118,265
Communications
Alphabet, Inc. — Class C		15		0.77	%		14,848
Amazon.com, Inc.		10		0.76	%		11,064
Facebook, Inc. — Class A		100		0.72	%		8,447
Cisco Systems, Inc.		825		1.05	%		7,854
Viavi Solutions, Inc.		1,980		0.76	%		5,557
Discovery, Inc. — Class A		410		0.44	%		4,593
Juniper Networks, Inc.		951		0.59	%		2,776
Ciena Corp.		335		0.45	%		2,608
Motorola Solutions, Inc.		77		0.36	%		2,252
Comcast Corp. — Class A		154		0.20	%		1,966
Walt Disney Co.		53		0.24	%		1,776
T-Mobile US, Inc.		170		0.52	%		1,773
Cogent Communications Holdings, Inc.		221		0.37	%		1,754
Omnicom Group, Inc.		203		0.37	%		1,281
Verizon Communications, Inc.		796		1.14	%		1,104
Netflix, Inc.		10		0.13	%		856
VeriSign, Inc.		103		0.50	%		671
Charter Communications, Inc. — Class A		32		0.48	%		(28	)
InterDigital, Inc.		189		0.29	%		(260	)
Sirius XM Holdings, Inc.		2,476		0.37	%		(289	)
Vonage Holdings Corp.		949		0.28	%		(832	)
AT&T, Inc.		699		0.52	%		(1,989	)
Total Communications							67,782
Utilities
UGI Corp.		738		0.76	%		3,936
Southern Co.		560		0.85	%		2,842
Public Service Enterprise Group, Inc.		608		0.90	%		2,786
CenterPoint Energy, Inc.		743		0.41	%		2,188
IDACORP, Inc.		280		0.69	%		2,152
Exelon Corp.		669		0.72	%		1,959
Evergy, Inc.		620		0.91	%		1,732
DTE Energy Co.		131		0.43	%		1,122
Pinnacle West Capital Corp.		249		0.50	%		877
NiSource, Inc.		1,076		0.64	%		730
Sempra Energy		78		0.25	%		724
OGE Energy Corp.		728		0.58	%		713
Duke Energy Corp.		337		0.80	%		642
Consolidated Edison, Inc.		366		0.67	%		505
PPL Corp.		1,275		0.90	%		381
ONE Gas, Inc.		329		0.62	%		203
Dominion Energy, Inc.		25		0.05	%		75
NextEra Energy, Inc.		71		0.13	%		71
AES Corp.		288		0.19	%		(259	)
Southwest Gas Holdings, Inc.		285		0.48	%		(363	)
Total Utilities							23,016
Total GS Equity Long Custom Basket							592,177
GS EQUITY SHORT CUSTOM BASKET
Basic Materials
Southern Copper Corp.		578		(0.67	)%		1,790

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
LyondellBasell Industries N.V. — Class A		308		(0.55	)%	$	1,217
Westlake Chemical Corp.		280		(0.43	)%		(102	)
Royal Gold, Inc.		235		(0.43	)%		(257	)
PPG Industries, Inc.		443		(1.14	)%		(1,151	)
Steel Dynamics, Inc.		821		(0.71	)%		(2,602	)
Huntsman Corp.		1,583		(0.78	)%		(4,289	)
Axalta Coating Systems Ltd.		1,346		(0.68	)%		(4,986	)
RPM International, Inc.		359		(0.56	)%		(6,982	)
Nucor Corp.		547		(0.75	)%		(7,708	)
United States Steel Corp.		1,537		(0.69	)%		(7,921	)
Air Products and Chemicals, Inc.		394		(1.90	)%		(8,509	)
Balchem Corp.		489		(1.05	)%		(13,940	)
Quaker Chemical Corp.		227		(0.95	)%		(16,032	)
Celanese Corp. — Class A		425		(1.09	)%		(18,644	)
Linde plc		372		(1.78	)%		(20,051	)
Albemarle Corp.		292		(0.73	)%		(20,724	)
Freeport-McMoRan, Inc.		1,152		(0.65	)%		(21,058	)
Total Basic Materials							(151,949	)
Financial
Morgan Stanley		1,778		(2.36	)%		7,512
Realty Income Corp.		1,892		(2.06	)%		7,280
UDR, Inc.		570		(0.43	)%		2,269
JBG SMITH Properties		1,471		(0.80	)%		2,210
Federal Realty Investment Trust		322		(0.56	)%		1,917
Global Net Lease, Inc.		1,791		(0.55	)%		1,391
CyrusOne, Inc.		466		(0.54	)%		1,376
Kilroy Realty Corp.		622		(0.70	)%		782
Nasdaq, Inc.		279		(0.70	)%		(72	)
CubeSmart		887		(0.57	)%		(465	)
Host Hotels & Resorts, Inc.		2,325		(0.67	)%		(471	)
Life Storage, Inc.		428		(0.63	)%		(621	)
KKR & Company, Inc. — Class A		694		(0.58	)%		(984	)
Digital Realty Trust, Inc.		254		(0.61	)%		(1,340	)
Intercontinental Exchange, Inc.		446		(0.85	)%		(1,398	)
Agree Realty Corp.		1,548		(1.78	)%		(1,414	)
CME Group, Inc. — Class A		246		(0.86	)%		(1,525	)
Equity LifeStyle Properties, Inc.		712		(0.78	)%		(1,756	)
Duke Realty Corp.		938		(0.67	)%		(3,345	)
Equinix, Inc.		77		(0.90	)%		(3,647	)
QTS Realty Trust, Inc. — Class A		484		(0.51	)%		(3,756	)
Medical Properties Trust, Inc.		2,669		(0.97	)%		(3,803	)
Healthpeak Properties, Inc.		1,650		(0.90	)%		(4,235	)
Prologis, Inc.		572		(1.04	)%		(4,416	)
S&T Bancorp, Inc.		811		(0.46	)%		(4,791	)
Camden Property Trust		603		(1.13	)%		(5,535	)
Americold Realty Trust		1,263		(0.83	)%		(5,813	)
Rayonier, Inc.		1,179		(0.65	)%		(5,957	)
TFS Financial Corp.		1,553		(0.54	)%		(6,370	)
Terreno Realty Corp.		670		(0.66	)%		(7,049	)
First Midwest Bancorp, Inc.		1,096		(0.41	)%		(7,100	)
Alleghany Corp.		130		(1.39	)%		(7,143	)
Southside Bancshares, Inc.		876		(0.58	)%		(7,513	)
EastGroup Properties, Inc.		346		(0.85	)%		(8,533	)
Howard Hughes Corp.		450		(0.73	)%		(8,789	)
Ares Management Corp. — Class A		929		(0.89	)%		(8,846	)
First Industrial Realty Trust, Inc.		2,255		(1.77	)%		(8,886	)
Sun Communities, Inc.		505		(1.30	)%		(9,741	)
American Tower Corp. — Class A		285		(1.17	)%		(10,163	)
Loews Corp.		805		(0.71	)%		(10,222	)
Brookline Bancorp, Inc.		2,944		(0.76	)%		(13,148	)
Rexford Industrial Realty, Inc.		1,521		(1.31	)%		(16,188	)
First Financial Bankshares, Inc.		1,196		(0.96	)%		(16,573	)
First Republic Bank		464		(1.32	)%		(28,328	)
Total Financial							(205,199	)
Technology
Pegasystems, Inc.		331		(0.65	)%		2,259
Clarivate plc		1,322		(0.60	)%		815
Coupa Software, Inc.		59		(0.26	)%		(488	)
Rapid7, Inc.		411		(0.52	)%		(505	)
Tyler Technologies, Inc.		41		(0.30	)%		(1,468	)
Smartsheet, Inc. — Class A		260		(0.28	)%		(4,542	)
Varonis Systems, Inc.		480		(0.42	)%		(5,962	)
HubSpot, Inc.		37		(0.29	)%		(6,876	)
Total Technology							(16,767	)
Industrial
Worthington Industries, Inc.		487		(0.56	)%		1,723
Exponent, Inc.		253		(0.42	)%		(83	)
Raytheon Technologies Corp.		434		(0.57	)%		(824	)
TransDigm Group, Inc.		55		(0.55	)%		(2,009	)
US Ecology, Inc.		643		(0.46	)%		(2,657	)
HEICO Corp.		197		(0.42	)%		(3,173	)
Boeing Co.		72		(0.31	)%		(3,398	)
Ball Corp.		989		(1.43	)%		(7,743	)
Martin Marietta Materials, Inc.		143		(0.82	)%		(9,445	)
Crown Holdings, Inc.		404		(0.67	)%		(9,646	)

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
AptarGroup, Inc.		709		(1.72	)%	$	(10,280	)
Ingersoll Rand, Inc.		1,341		(1.13	)%		(12,243	)
Vulcan Materials Co.		262		(0.76	)%		(12,424	)
Tetra Tech, Inc.		310		(0.72	)%		(13,007	)
Casella Waste Systems, Inc. — Class A		858		(0.93	)%		(14,026	)
Total Industrial							(99,235	)
Consumer, Cyclical
Lululemon Athletica, Inc.		188		(0.99	)%		8,493
IAA, Inc.		483		(0.46	)%		3,947
Wingstop, Inc.		140		(0.30	)%		(976	)
Avient Corp.		1,719		(1.39	)%		(3,370	)
Copart, Inc.		541		(1.01	)%		(3,559	)
TJX Companies, Inc.		431		(0.49	)%		(3,750	)
NIKE, Inc. — Class B		410		(0.93	)%		(7,196	)
Delta Air Lines, Inc.		711		(0.59	)%		(7,301	)
Live Nation Entertainment, Inc.		279		(0.40	)%		(9,078	)
Alaska Air Group, Inc.		631		(0.75	)%		(10,847	)
Hilton Worldwide Holdings, Inc.		474		(0.98	)%		(11,144	)
Burlington Stores, Inc.		182		(0.93	)%		(14,672	)
Starbucks Corp.		590		(1.10	)%		(18,417	)
Southwest Airlines Co.		1,052		(1.10	)%		(18,510	)
Scotts Miracle-Gro Co. — Class A		217		(0.91	)%		(26,084	)
Total Consumer, Cyclical							(122,464	)
Communications
Q2 Holdings, Inc.		274		(0.47	)%		(4,783	)
Liberty Broadband Corp. — Class C		600		(1.54	)%		(6,531	)
Zendesk, Inc.		259		(0.60	)%		(7,419	)
Total Communications							(18,733	)
Energy
Valero Energy Corp.		556		(0.68	)%		3,608
Chevron Corp.		606		(1.09	)%		3,052
Exxon Mobil Corp.		606		(0.58	)%		2,888
Cheniere Energy, Inc.		565		(0.70	)%		(56	)
NOV, Inc.		1,547		(0.36	)%		(3,556	)
Pioneer Natural Resources Co.		152		(0.41	)%		(4,036	)
Hess Corp.		292		(0.35	)%		(5,262	)
Phillips 66		878		(1.22	)%		(5,491	)
Schlumberger N.V.		2,189		(1.02	)%		(5,930	)
ChampionX Corp.		3,561		(1.32	)%		(21,160	)
Ovintiv, Inc.		3,216		(1.31	)%		(31,298	)
Total Energy							(67,241	)
Consumer, Non-cyclical
Nevro Corp.		374		(0.89	)%		10,700
Verisk Analytics, Inc. — Class A		283		(0.86	)%		3,427
CoStar Group, Inc.		57		(0.80	)%		895
Moody’s Corp.		100		(0.51	)%		(2,478	)
Avalara, Inc.		117		(0.27	)%		(3,793	)
Equifax, Inc.		251		(0.78	)%		(4,099	)
WD-40 Co.		80		(0.41	)%		(5,494	)
Avery Dennison Corp.		222		(0.70	)%		(16,690	)
Total Consumer, Non-cyclical							(17,532	)
Utilities
ALLETE, Inc.		380		(0.43	)%		(583	)
California Water Service Group		622		(0.60	)%		(2,171	)
Total Utilities							(2,754	)
Total GS Equity Short Custom Basket							(701,874	)

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
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 custom basket swap collateral at March 31, 2021.
2	All or a portion of this security is on loan at March 31, 2021 — See Note 7.
3	Rate indicated is the 7-day yield as of March 31, 2021.
4	Securities lending collateral — See Note 7.
	GS — Goldman Sachs International
	MS — Morgan Stanley Capital Services LLC
	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 March 31, 2021 (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	$	17,088,608	$	—	$	—	$	17,088,608
Money Market Fund		417,373		—		—		417,373
Securities Lending Collateral		86,162		—		—		86,162
Equity Custom Basket Swap Agreements**		—		1,186,519		—		1,186,519
Total Assets	$	17,592,143	$	1,186,519	$	—	$	18,778,662

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Custom Basket Swap Agreements**	$	—	$	1,418,521	$	—	$	1,418,521

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $84,230 of securities loaned (cost $14,640,041)	$	17,592,143
Cash		1,902
Unrealized appreciation on OTC swap agreements		1,186,519
Receivables:
Dividends		23,198
Securities lending income		13
Fund shares sold		6
Total assets		18,803,781
Liabilities:
Unrealized depreciation on OTC swap agreements		1,418,521
Payable for:
Swap settlement		169,826
Return of securities lending collateral		86,162
Management fees		12,585
Fund shares redeemed		6,050
Transfer agent and administrative fees		3,762
Distribution and service fees		3,286
Portfolio accounting fees		1,398
Trustees’ fees*		253
Miscellaneous		18,218
Total liabilities		1,720,061
Commitments and contingent liabilities (Note 11)		—
Net assets	$	17,083,720
Net assets consist of:
Paid in capital	$	18,369,959
Total distributable earnings (loss)		(1,286,239	)
Net assets	$	17,083,720
A-Class:
Net assets	$	8,044,442
Capital shares outstanding		423,807
Net asset value per share	$	18.98
Maximum offering price per share (Net asset value divided by 95.25%)	$	19.93
C-Class:
Net assets	$	377,717
Capital shares outstanding		22,740
Net asset value per share	$	16.61
P-Class:
Net assets	$	6,414,564
Capital shares outstanding		336,875
Net asset value per share	$	19.04
Institutional Class:
Net assets	$	2,246,997
Capital shares outstanding		115,259
Net asset value per share	$	19.50

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends	$	371,993
Interest		69
Income from securities lending, net		60
Total investment income		372,122
Expenses:
Management fees		141,847
Distribution and service fees:
A-Class		18,606
C-Class		4,451
P-Class		14,594
Transfer agent and administrative fees		44,403
Portfolio accounting fees		15,763
Registration fees		13,488
Professional fees		7,800
Trustees’ fees*		3,740
Custodian fees		2,513
Miscellaneous		7,034
Total expenses		274,239
Net investment income		97,883
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,583,744
Swap agreements		(2,382,497	)
Net realized loss		(798,753	)
Net change in unrealized appreciation (depreciation) on:
Investments		5,319,586
Swap agreements		130,978
Net change in unrealized appreciation (depreciation)		5,450,564
Net realized and unrealized gain		4,651,811
Net increase in net assets resulting from operations	$	4,749,694

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

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	97,883		$	113,222
Net realized gain (loss) on investments		(798,753	)		1,100,712
Net change in unrealized appreciation (depreciation) on investments		5,450,564			(3,461,630	)
Net increase (decrease) in net assets resulting from operations		4,749,694			(2,247,696	)
Distributions to shareholders:
A-Class		(34,330	)		(68,033	)
P-Class		(28,015	)		(66,392	)
Institutional Class		(12,375	)		(19,220	)
Total distributions to shareholders		(74,720	)		(153,645	)
Capital share transactions:
Proceeds from sale of shares
A-Class		196,419			577,147
C-Class		8,000			7,950
P-Class		288,465			323,678
Institutional Class		204,066			835,323
Distributions reinvested
A-Class		33,556			67,459
P-Class		25,294			61,922
Institutional Class		12,308			19,220
Cost of shares redeemed
A-Class		(1,413,489	)		(2,659,455	)
C-Class		(328,519	)		(754,681	)
P-Class		(1,001,225	)		(3,414,692	)
Institutional Class		(367,376	)		(798,573	)
Net decrease from capital share transactions		(2,342,501	)		(5,734,702	)
Net increase (decrease) in net assets		2,332,473			(8,136,043	)
Net assets:
Beginning of year		14,751,247			22,887,290
End of year	$	17,083,720		$	14,751,247
Capital share activity:
Shares sold
A-Class		11,844			36,834
C-Class		564			575
P-Class		16,987			20,296
Institutional Class		12,752			51,644
Shares issued from reinvestment of distributions
A-Class		1,950			4,146
P-Class		1,465			3,794
Institutional Class		697			1,152
Shares redeemed
A-Class		(87,189	)		(169,933	)
C-Class		(23,557	)		(55,084	)
P-Class		(60,649	)		(217,505	)
Institutional Class		(22,057	)		(50,497	)
Net decrease in shares		(147,193	)		(374,578	)

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	14.12		$	16.20		$	17.41		$	15.80		$	15.26
Income (loss) from investment operations:
Net investment income (loss)a		.10			.09			.10			—	b		(.09	)
Net gain (loss) on investments (realized and unrealized)		4.84			(2.04	)		(1.02	)		1.61			.63
Total from investment operations		4.94			(1.95	)		(.92	)		1.61			.54
Less distributions from:
Net investment income		(.08	)		(.13	)		—			—			—
Net realized gains		—			—			(.29	)		—			—
Total distributions		(.08	)		(.13	)		(.29	)		—			—
Net asset value, end of period	$	18.98		$	14.12		$	16.20		$	17.41		$	15.80
Total Returnc		35.04	%		(12.15	%)		(5.31	%)		10.19	%		3.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,044		$	7,021		$	10,143		$	4,012		$	4,615
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.58	%		0.58	%		0.01	%		(0.59	%)
Total expensesd,e		1.75	%		1.78	%		1.78	%		1.77	%		2.25	%
Portfolio turnover rate		162	%		119	%		170	%		328	%		223	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	12.39		$	14.21		$	15.43		$	14.11		$	13.72
Income (loss) from investment operations:
Net investment income (loss)a		(.02	)		(.02	)		(.07	)		(.11	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		4.24			(1.80	)		(.86	)		1.43			.57
Total from investment operations		4.22			(1.82	)		(.93	)		1.32			.39
Less distributions from:
Net realized gains		—			—			(.29	)		—			—
Total distributions		—			—			(.29	)		—			—
Net asset value, end of period	$	16.61		$	12.39		$	14.21		$	15.43		$	14.11
Total Returnc		34.06	%		(12.81	%)		(6.00	%)		9.36	%		2.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	378		$	567		$	1,424		$	11,394		$	13,235
Ratios to average net assets:
Net investment income (loss)		(0.16	%)		(0.18	%)		(0.43	%)		(0.74	%)		(1.30	%)
Total expensesd,e		2.51	%		2.53	%		2.50	%		2.52	%		2.98	%
Portfolio turnover rate		162	%		119	%		170	%		328	%		223	%

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

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	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	14.17		$	16.25		$	17.47		$	15.86		$	15.31
Income (loss) from investment operations:
Net investment income (loss)a		.10			.09			.08			—	b		(.09	)
Net gain (loss) on investments (realized and unrealized)		4.85			(2.04	)		(1.01	)		1.61			.64
Total from investment operations		4.95			(1.95	)		(.93	)		1.61			.55
Less distributions from:
Net investment income		(.08	)		(.13	)		—			—			—
Net realized gains		—			—			(.29	)		—			—
Total distributions		(.08	)		(.13	)		(.29	)		—			—
Net asset value, end of period	$	19.04		$	14.17		$	16.25		$	17.47		$	15.86
Total Return		35.09	%		(12.17	%)		(5.35	%)		10.15	%		3.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,415		$	5,370		$	9,303		$	12,614		$	13,779
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.57	%		0.47	%		0.01	%		(0.58	%)
Total expensesd,e		1.75	%		1.78	%		1.77	%		1.76	%		2.24	%
Portfolio turnover rate		162	%		119	%		170	%		328	%		223	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	14.49		$	16.60		$	17.79		$	16.11		$	15.50
Income (loss) from investment operations:
Net investment income (loss)a		.15			.14			.12			.05			(.03	)
Net gain (loss) on investments (realized and unrealized)		4.97			(2.10	)		(1.02	)		1.63			.64
Total from investment operations		5.12			(1.96	)		(.90	)		1.68			.61
Less distributions from:
Net investment income		(.11	)		(.15	)		—			—			—
Net realized gains		—			—			(.29	)		—			—
Total distributions		(.11	)		(.15	)		(.29	)		—			—
Net asset value, end of period	$	19.50		$	14.49		$	16.60		$	17.79		$	16.11
Total Return		35.47	%		(11.96	%)		(5.08	%)		10.43	%		3.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,247		$	1,794		$	2,018		$	2,722		$	1,990
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.85	%		0.72	%		0.31	%		(0.20	%)
Total expensesd,e		1.50	%		1.53	%		1.51	%		1.50	%		1.96	%
Portfolio turnover rate		162	%		119	%		170	%		328	%		223	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Net investment income is less than $0.01 per share.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Excluding interest and dividend expense related to short sales, the operating expense ratios for the years or periods presented was as follows:

	03/31/21	03/31/20	03/31/19	03/29/18	03/31/17
A-Class	1.75%	1.78%	1.78%	1.68%	1.67%
C-Class	2.51%	2.53%	2.50%	2.44%	2.42%
P-Class	1.75%	1.78%	1.77%	1.69%	1.67%
Institutional Class	1.50%	1.53%	1.51%	1.43%	1.43%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Emerging Markets 2x Strategy Fund H-Class returned 162.59%, while the BNY Mellon Emerging Markets 50 ADR Index returned 70.41% over the same period.

For the period, the Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

The sectors that contributed the most to the performance of the underlying index over the past year were semiconductors & semiconductor equipment, banks, and metals & mining. The sectors that detracted the most were internet & direct marketing retail, diversified consumer services, and automobiles.

The stocks that contributed the most to the return of the underlying index over the past year were Taiwan Semiconductor Manufacturing Co. ADR, HDFC Bank Ltd. ADR, and Infosys Ltd. ADR. The stocks that detracted the most were Pinduoduo, Inc. ADR Class A, NIO, Inc. ADR Class A, and TAL Education Group ADR Class A.

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

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

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

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

32 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Country Diversification

Country	% of Long-Term Investments
China		25.9	%
Taiwan, Province of China		23.9	%
Cayman Islands		20.7	%
India		12.5	%
Brazil		9.5	%
Republic of Korea		2.9	%
Mexico		2.3	%
Other		2.3	%
Total Long-Term Investments		100.0	%

Ten Largest Holdings (% of Total Net Assets)
Taiwan Semiconductor Manufacturing Company Ltd. ADR	10.9%
Alibaba Group Holding Ltd. ADR	10.1%
HDFC Bank Ltd. ADR	2.6%
JD.com, Inc. ADR	2.2%
Infosys Ltd. ADR	2.0%
Vale S.A. ADR	1.7%
Baidu, Inc. ADR	1.7%
NIO, Inc. ADR	1.4%
Pinduoduo, Inc. ADR	1.3%
NetEase, Inc. ADR	1.2%
Top Ten Total	35.1%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	162.66%	21.18%	(0.50%)
A-Class Shares with sales charge‡	150.17%	20.00%	(0.98%)
C-Class Shares	160.68%	20.27%	(1.10%)
C-Class Shares with CDSC§	159.68%	20.27%	(1.10%)
H-Class Shares	162.59%	21.14%	(0.50%)
BNY Mellon Emerging Markets 50 ADR Index	70.41%	14.77%	3.88%
S&P 500 Index	56.35%	16.29%	13.91%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 33

SCHEDULE OF INVESTMENTS	March 31, 2021
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 50.0%
Communications - 18.6%
Alibaba Group Holding Ltd. ADR*		3,526	$	799,450
JD.com, Inc. ADR*		2,046		172,539
Baidu, Inc. ADR*		622		135,316
Pinduoduo, Inc. ADR*		797		106,702
Trip.com Group Ltd. ADR*		1,041		41,255
America Movil SAB de CV — Class L ADR		2,703		36,707
Chunghwa Telecom Company Ltd. ADR		867		33,934
Vipshop Holdings Ltd. ADR*		881		26,307
Telkom Indonesia Persero Tbk PT ADR		1,084		25,626
SK Telecom Company Ltd. ADR		812		22,111
GDS Holdings Ltd. ADR*		260		21,083
KE Holdings, Inc. ADR*		363		20,684
Tencent Music Entertainment Group ADR*		948		19,425
iQIYI, Inc. ADR*		739		12,282
Total Communications				1,473,421
Technology - 15.9%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		7,255		858,121
Infosys Ltd. ADR		8,351		156,331
NetEase, Inc. ADR		914		94,380
United Microelectronics Corp. ADR1		5,267		47,982
Bilibili, Inc. ADR*		354		37,899
ASE Technology Holding Company Ltd. ADR		3,868		29,784
Wipro Ltd. ADR		3,247		20,586
GSX Techedu, Inc. ADR*		257		8,707
Total Technology				1,253,790
Financial - 5.4%
HDFC Bank Ltd. ADR*		2,604		202,305
ICICI Bank Ltd. ADR*		5,830		93,455
Banco Bradesco S.A. ADR		10,110		47,517
KB Financial Group, Inc. ADR		891		44,042
China Life Insurance Company Ltd. ADR1		3,393		35,321
Total Financial				422,640
Basic Materials - 3.5%
Vale S.A. ADR		7,830		136,086
POSCO ADR		731		52,778
Sibanye Stillwater Ltd. ADR		1,566		27,969
AngloGold Ashanti Ltd. ADR		950		20,871
Suzano S.A. ADR*		1,614		19,723
Gold Fields Ltd. ADR		2,014		19,113
Total Basic Materials				276,540
Consumer, Non-cyclical - 3.1%
TAL Education Group ADR*		911		49,057
New Oriental Education & Technology Group, Inc. ADR*		3,414		47,796
Fomento Economico Mexicano SAB de CV ADR		424		31,940
BeiGene Ltd. ADR*		90		31,327
Ambev S.A. ADR		10,043		27,518
Zai Lab Ltd. ADR*		159		21,216
Dr Reddy’s Laboratories Ltd. ADR		277		17,005
Natura & Company Holding S.A. ADR*,1		956		16,242
Total Consumer, Non-cyclical				242,101
Consumer, Cyclical - 1.9%
NIO, Inc. ADR*		2,946		114,835
Huazhu Group Ltd. ADR*		330		18,117
Tata Motors Ltd. ADR*		863		17,942
Total Consumer, Cyclical				150,894
Energy - 0.8%
Petroleo Brasileiro S.A. ADR		4,241		35,963
China Petroleum & Chemical Corp. ADR		582		30,689
Total Energy				66,652
Industrial - 0.8%
ZTO Express Cayman, Inc. ADR		1,436		41,859
Cemex SAB de CV ADR*		3,451		24,054
Total Industrial				65,913
Total Common Stocks
(Cost $3,293,310)				3,951,951
PREFERRED STOCKS† - 1.2%
Financial - 0.7%
Itau Unibanco Holding S.A. ADR		11,047		54,793
Energy - 0.5%
Petroleo Brasileiro S.A. ADR		5,236		44,716
Total Preferred Stocks
(Cost $98,454)				99,509
	Face Amount
REPURCHASE AGREEMENTS††,2 - 71.0%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/213	$	3,000,378		3,000,378
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/213		1,364,118		1,364,118
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/213		1,244,970		1,244,970
Total Repurchase Agreements
(Cost $5,609,466)				5,609,466

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

SCHEDULE OF INVESTMENTS (continued)	March 31, 2021
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,4 - 0.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 0.03%5		32,816	$	32,816
Total Securities Lending Collateral
(Cost $32,816)				32,816
Total Investments - 122.6%
(Cost $9,034,046)			$	9,693,742
Other Assets & Liabilities, net - (22.6)%				(1,789,627	)
Total Net Assets - 100.0%			$	7,904,115

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency		Maturity Date	Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index	0.64% (1 Week USD LIBOR + 0.55%)	At Maturity	04/08/21			1,564	$	5,621,029	$	(1,153	)
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index	0.71% (1 Month USD LIBOR + 0.60%)	At Maturity	04/08/21			1,718		6,174,239		(897,774	)
								$	11,795,268	$	(898,927	)

*	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 on loan at March 31, 2021 — 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 March 31, 2021.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of March 31, 2021.
	ADR — American Depositary Receipt
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
EMERGING MARKETS 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at March 31, 2021 (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	$	3,951,951	$	—	$	—	$	3,951,951
Preferred Stocks		99,509		—		—		99,509
Repurchase Agreements		—		5,609,466		—		5,609,466
Securities Lending Collateral		32,816		—		—		32,816
Total Assets	$	4,084,276	$	5,609,466	$	—	$	9,693,742

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	898,927	$	—	$	898,927

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value - including $31,851 of securities loaned (cost $3,424,580)	$	4,084,276
Repurchase agreements, at value (cost $5,609,466)		5,609,466
Cash		5
Receivables:
Fund shares sold		543,125
Dividends		3,247
Foreign tax reclaims		477
Securities lending income		24
Total assets		10,240,620
Liabilities:
Unrealized depreciation on OTC swap agreements		898,927
Payable for:
Swap settlement		1,115,713
Fund shares redeemed		264,230
Return of securities lending collateral		32,816
Management fees		5,851
Distribution and service fees		1,933
Transfer agent and administrative fees		1,749
Portfolio accounting fees		975
Trustees’ fees*		121
Miscellaneous		14,190
Total liabilities		2,336,505
Commitments and contingent liabilities (Note 11)		—
Net assets	$	7,904,115
Net assets consist of:
Paid in capital	$	18,660,567
Total distributable earnings (loss)		(10,756,452	)
Net assets	$	7,904,115
A-Class:
Net assets	$	647,050
Capital shares outstanding		5,562
Net asset value per share	$	116.33
Maximum offering price per share (Net asset value divided by 95.25%)	$	122.13
C-Class:
Net assets	$	449,481
Capital shares outstanding		4,126
Net asset value per share	$	108.94
H-Class:
Net assets	$	6,807,584
Capital shares outstanding		58,533
Net asset value per share	$	116.30

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Dividends (net of foreign withholding tax of $3,146)	$	32,372
Interest		2,083
Income from securities lending, net		109
Total investment income		34,564
Expenses:
Management fees		56,021
Distribution and service fees:
A-Class		2,081
C-Class		3,908
H-Class		12,508
Transfer agent and administrative fees		17,216
Portfolio accounting fees		9,338
Professional fees		1,636
Custodian fees		1,038
Trustees’ fees*		856
Interest expense		33
Miscellaneous		11,157
Total expenses		115,792
Net investment loss		(81,228	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,173	)
Swap agreements		4,283,457
Futures contracts		60,369
Net realized gain		4,340,653
Net change in unrealized appreciation (depreciation) on:
Investments		630,547
Swap agreements		(796,482	)
Futures contracts		(107	)
Net change in unrealized appreciation (depreciation)		(166,042	)
Net realized and unrealized gain		4,174,611
Net increase in net assets resulting from operations	$	4,093,383

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

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(81,228	)	$	(2,403	)
Net realized gain (loss) on investments		4,340,653			(3,827,042	)
Net change in unrealized appreciation (depreciation) on investments		(166,042	)		(1,110,916	)
Net increase (decrease) in net assets resulting from operations		4,093,383			(4,940,361	)
Distributions to shareholders:
A-Class		—			(7,524	)
C-Class		—			(1,845	)
H-Class		—			(35,229	)
Total distributions to shareholders		—			(44,598	)
Capital share transactions:
Proceeds from sale of shares
A-Class		8,376,517			903,892
C-Class		412,755			1,815,669
H-Class		119,205,321			214,239,492
Distributions reinvested
A-Class		—			7,503
C-Class		—			1,805
H-Class		—			34,340
Cost of shares redeemed
A-Class		(9,178,674	)		(2,144,611	)
C-Class		(426,896	)		(1,980,620	)
H-Class		(116,830,877	)		(214,946,228	)
Net increase (decrease) from capital share transactions		1,558,146			(2,068,758	)
Net increase (decrease) in net assets		5,651,529			(7,053,717	)
Net assets:
Beginning of year		2,252,586			9,306,303
End of year	$	7,904,115		$	2,252,586
Capital share activity:
Shares sold
A-Class		77,226			14,019
C-Class		4,706			27,838
H-Class		1,339,008			3,178,461
Shares issued from reinvestment of distributions
A-Class		—			93
C-Class		—			24
H-Class		—			426
Shares redeemed
A-Class		(85,834	)		(31,579	)
C-Class		(4,440	)		(30,269	)
H-Class		(1,313,520	)		(3,239,286	)
Net increase (decrease) in shares		17,146			(80,273	)

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	44.29		$	71.02		$	87.20		$	60.99		$	44.79
Income (loss) from investment operations:
Net investment income (loss)a		(.94	)		.17			.40			(.24	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		72.98			(26.42	)		(16.58	)		26.45			16.68
Total from investment operations		72.04			(26.25	)		(16.18	)		26.21			16.20
Less distributions from:
Net investment income		—			(.48	)		—			—			—
Total distributions		—			(.48	)		—			—			—
Net asset value, end of period	$	116.33		$	44.29		$	71.02		$	87.20		$	60.99
Total Returnb		162.66	%		(37.27	%)		(18.56	%)		42.97	%		36.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	647		$	628		$	2,247		$	3,187		$	628
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		0.25	%		0.54	%		(0.30	%)		(0.96	%)
Total expenses		1.83	%		1.86	%		1.84	%		1.76	%		1.76	%
Portfolio turnover rate		632	%		974	%		1,978	%		1,006	%		2,568	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	41.79		$	67.53		$	83.55		$	58.90		$	43.56
Income (loss) from investment operations:
Net investment income (loss)a		(1.69	)		(.28	)		(.22	)		(.61	)		(.79	)
Net gain (loss) on investments (realized and unrealized)		68.84			(24.98	)		(15.80	)		25.26			16.13
Total from investment operations		67.15			(25.26	)		(16.02	)		24.65			15.34
Less distributions from:
Net investment income		—			(.48	)		—			—			—
Total distributions		—			(.48	)		—			—			—
Net asset value, end of period	$	108.94		$	41.79		$	67.53		$	83.55		$	58.90
Total Returnb		160.68	%		(37.73	%)		(19.17	%)		41.87	%		35.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	449		$	161		$	423		$	522		$	361
Ratios to average net assets:
Net investment income (loss)		(1.95	%)		(0.44	%)		(0.33	%)		(0.82	%)		(1.55	%)
Total expenses		2.57	%		2.60	%		2.59	%		2.56	%		2.50	%
Portfolio turnover rate		632	%		974	%		1,978	%		1,006	%		2,568	%

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017
Per Share Data
Net asset value, beginning of period	$	44.29		$	71.02		$	87.21		$	61.01		$	44.84
Income (loss) from investment operations:
Net investment income (loss)a		(1.28	)		(.05	)		.50			(.25	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		73.29			(26.20	)		(16.69	)		26.45			16.59
Total from investment operations		72.01			(26.25	)		(16.19	)		26.20			16.17
Less distributions from:
Net investment income		—			(.48	)		—			—			—
Total distributions		—			(.48	)		—			—			—
Net asset value, end of period	$	116.30		$	44.29		$	71.02		$	87.21		$	61.01
Total Return		162.59	%		(37.27	%)		(18.56	%)		42.95	%		36.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,808		$	1,464		$	6,636		$	27,270		$	6,698
Ratios to average net assets:
Net investment income (loss)		(1.29	%)		(0.07	%)		0.71	%		(0.32	%)		(0.82	%)
Total expenses		1.81	%		1.87	%		1.85	%		1.77	%		1.76	%
Portfolio turnover rate		632	%		974	%		1,978	%		1,006	%		2,568	%

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

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

INVERSE EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

For the one-year period ended March 31, 2021, Inverse Emerging Markets 2x Strategy Fund H-Class returned -72.97%, while the BNY Mellon Emerging Markets 50 ADR Index returned 70.41% over the same period.

For the period, the Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the BNY Mellon Emerging Markets 50 ADR Index.

The sectors that contributed the most to the performance of the underlying index over the past year were semiconductors & semiconductor equipment, banks, and metals & mining. The sectors that detracted the most were Internet & direct marketing retail, diversified consumer services, and automobiles.

The stocks that contributed the most to the return of the underlying index over the past year were Taiwan Semiconductor Manufacturing Co. ADR, HDFC Bank Ltd. ADR, and Infosys Ltd. ADR. The stocks that detracted the most were Pinduoduo, Inc. ADR Class A, NIO, Inc. ADR Class A, and TAL Education Group ADR Class A.

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

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

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

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS ANNUAL REPORT | 41

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	10 Year
A-Class Shares	(73.37%)	(34.19%)	(20.64%)
A-Class Shares with sales charge‡	(74.57%)	(34.83%)	(21.03%)
C-Class Shares	(73.52%)	(34.49%)	(20.74%)
C-Class Shares with CDSC§	(73.78%)	(34.49%)	(20.74%)
H-Class Shares	(72.97%)	(34.01%)	(20.58%)
S&P 500 Index	56.35%	16.29%	13.91%
BNY Mellon Emerging Markets 50 ADR Index	70.41%	14.77%	3.88%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The graphs are based on A-Class shares and H-Class shares only: performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

42 | THE RYDEX FUNDS ANNUAL REPORT

SCHEDULE OF INVESTMENTS	March 31, 2021
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 95.2%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/212	$	207,660	$	207,660
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/212		94,412		94,412
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/212		86,166		86,166
Total Repurchase Agreements
(Cost $388,238)				388,238
Total Investments - 95.2%
(Cost $388,238)			$	388,238
Other Assets & Liabilities, net - 4.8%				19,412
Total Net Assets - 100.0%			$	407,650

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive	Payment Frequency		Maturity Date	Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index	0.19% (1 Month USD LIBOR - 0.30%)	At Maturity	04/08/21			141	$	505,042	$	27,915
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index	0.36% (1 Week USD LIBOR - 0.45%)	At Maturity	04/09/21			87		314,502		10,460
								$	819,544	$	38,375

††	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 March 31, 2021.
	ADR — American Depositary Receipt
	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 March 31, 2021 (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
Repurchase Agreements	$	—	$	388,238	$	—	$	388,238
Equity Index Swap Agreements**		—		38,375		—		38,375
Total Assets	$	—	$	426,613	$	—	$	426,613

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Repurchase agreements, at value (cost $388,238)	$	388,238
Unrealized appreciation on OTC swap agreements		38,375
Receivables:
Fund shares sold		211,615
Swap settlement		62,148
Total assets		700,376
Liabilities:
Payable for:
Fund shares redeemed		290,892
Management fees		369
Transfer agent and administrative fees		111
Distribution and service fees		107
Portfolio accounting fees		62
Variation margin on futures contracts		24
Trustees’ fees*		7
Miscellaneous		1,154
Total liabilities		292,726
Commitments and contingent liabilities (Note 11)		—
Net assets	$	407,650
Net assets consist of:
Paid in capital	$	20,315,013
Total distributable earnings (loss)		(19,907,363	)
Net assets	$	407,650
A-Class:
Net assets	$	1,758
Capital shares outstanding		141
Net asset value per share	$	12.44
Maximum offering price per share (Net asset value divided by 95.25%)	$	13.06
C-Class:
Net assets	$	5,501
Capital shares outstanding		444
Net asset value per share	$	12.40
H-Class:
Net assets	$	400,391
Capital shares outstanding		31,933
Net asset value per share	$	12.54

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Interest	$	383
Total investment income		383
Expenses:
Management fees		8,092
Distribution and service fees:
A-Class		96
C-Class		301
H-Class		2,081
Transfer agent and administrative fees		2,580
Portfolio accounting fees		1,350
Registration fees		1,247
Professional fees		706
Trustees’ fees*		277
Custodian fees		137
Miscellaneous		338
Total expenses		17,205
Net investment loss		(16,822	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(1,578,473	)
Futures contracts		(13,003	)
Net realized loss		(1,591,476	)
Net change in unrealized appreciation (depreciation) on:
Swap agreements		36,619
Net change in unrealized appreciation (depreciation)		36,619
Net realized and unrealized loss		(1,554,857	)
Net decrease in net assets resulting from operations	$	(1,571,679	)

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

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(16,822	)	$	1,035
Net realized gain (loss) on investments		(1,591,476	)		174,492
Net change in unrealized appreciation (depreciation) on investments		36,619			42,848
Net increase (decrease) in net assets resulting from operations		(1,571,679	)		218,375
Distributions to shareholders:
A-Class		—			(74	)
C-Class		—			(291	)
H-Class		—			(4,157	)
Total distributions to shareholders		—			(4,522	)
Capital share transactions:
Proceeds from sale of shares
A-Class		55,618			948,187
C-Class		256,178			1,863,277
H-Class		66,477,775			52,112,944
Distributions reinvested
A-Class		—			55
C-Class		—			27
H-Class		—			3,705
Cost of shares redeemed
A-Class		(136,743	)		(813,060	)
C-Class		(292,788	)		(1,767,237	)
H-Class		(65,279,241	)		(53,439,146	)
Net increase (decrease) from capital share transactions		1,080,799			(1,091,248	)
Net decrease in net assets		(490,880	)		(877,395	)
Net assets:
Beginning of year		898,530			1,775,925
End of year	$	407,650		$	898,530
Capital share activity:
Shares sold
A-Class		3,229			22,942
C-Class		11,803			51,267
H-Class		3,478,109			1,307,127
Shares issued from reinvestment of distributions
A-Class		—			2
C-Class		—			1
H-Class		—			115
Shares redeemed
A-Class		(6,225	)		(20,207	)
C-Class		(13,555	)		(49,157	)
H-Class		(3,460,171	)		(1,336,862	)
Net increase (decrease) in shares		13,190			(24,772	)

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	46.71		$	40.57		$	39.08		$	63.42		$	101.83
Income (loss) from investment operations:
Net investment income (loss)a		(.54	)		(.16	)		.23			(.28	)		(1.42	)
Net gain (loss) on investments (realized and unrealized)		(33.73	)		6.64			1.26	d		(24.06	)		(36.99	)
Total from investment operations		(34.27	)		6.48			1.49			(24.34	)		(38.41	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—
Total distributions		—			(.34	)		—			—			—
Net asset value, end of period	$	12.44		$	46.71		$	40.57		$	39.08		$	63.42
Total Returnb		(73.37	%)		16.30	%		3.81	%		(38.35	%)		(37.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2		$	147		$	16		$	43		$	42
Ratios to average net assets:
Net investment income (loss)		(1.81	%)		(0.37	%)		0.51	%		(0.64	%)		(1.50	%)
Total expenses		1.86	%		1.89	%		1.88	%		1.76	%		1.75	%
Portfolio turnover rate		—			—			—			—			—

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	46.82		$	40.45		$	39.34		$	64.21		$	103.83
Income (loss) from investment operations:
Net investment income (loss)a		(.69	)		(.31	)		(.29	)		(.74	)		(1.88	)
Net gain (loss) on investments (realized and unrealized)		(33.73	)		7.02			1.40	d		(24.13	)		(37.74	)
Total from investment operations		(34.42	)		6.71			1.11			(24.87	)		(39.62	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—
Total distributions		—			(.34	)		—			—			—
Net asset value, end of period	$	12.40		$	46.82		$	40.45		$	39.34		$	64.21
Total Returnb		(73.52	%)		16.96	%		(2.82	%)		(38.77	%)		(38.17	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6		$	103		$	3		$	19		$	56
Ratios to average net assets:
Net investment income (loss)		(2.62	%)		(1.09	%)		(0.63	%)		(1.46	%)		(2.20	%)
Total expenses		2.66	%		2.79	%		2.53	%		2.49	%		2.48	%
Portfolio turnover rate		—			—			—			—			—

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	46.39		$	40.27		$	38.77		$	63.00		$	101.28
Income (loss) from investment operations:
Net investment income (loss)a		(.42	)		.07			.19			(.30	)		(1.23	)
Net gain (loss) on investments (realized and unrealized)		(33.43	)		6.39			1.31	d		(23.93	)		(37.05	)
Total from investment operations		(33.85	)		6.46			1.50			(24.23	)		(38.28	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—
Total distributions		—			(.34	)		—			—			—
Net asset value, end of period	$	12.54		$	46.39		$	40.27		$	38.77		$	63.00
Total Return		(72.97	%)		16.40	%		3.87	%		(38.46	%)		(37.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	400		$	649		$	1,756		$	743		$	890
Ratios to average net assets:
Net investment income (loss)		(1.85	%)		0.19	%		0.42	%		(0.68	%)		(1.46	%)
Total expenses		1.89	%		1.87	%		1.87	%		1.77	%		1.76	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 31, 2016.
d	The amount shown for a share outstanding throughout the period does not agree with the aggregate net loss on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) March 31, 2021

EMERGING MARKETS BOND STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Adviser.

The Emerging Markets Bond Fund H-Class returned 10.93% for the one-year period ended March 31, 2021. By comparison, the ICE Bank of America Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index returned 15.24% over the same period.

During 2020, emerging market countries experienced decreasing credit spreads, leading to positive performance for the Fund. After the first quarter of 2020, the combination of easing COVID-19 restrictions and positive COVID-19 vaccine and treatment news lead to an increase in consumer demand, which helped to alleviate some uncertainties of global consumption and global production resulting in decreased credit spreads. In addition, oil prices rebounded after the April price collapse leading to the decrease of credit spreads for some emerging market countries such as Kingdom of Saudi Arabia, Qatar and United Arab Emirates (Abu Dhabi). For the first quarter of 2021, emerging market credit spreads have increased with the resurgence of COVID-19 and reinitiated government-imposed restrictions.

Most emerging market countries experienced a decrease in credit default swap spreads, with Indonesia, South Africa, and Ukraine experiencing some of the largest decreases in credit default credit spreads. During this period, Argentina experienced a credit event and was subsequently added back to the credit default swap. Since being added back to the credit default swap Argentina has experienced an increase of its credit default swap spread.

Derivatives in the Fund were used to help provide efficient exposure to the emerging markets bond market and to provide leverage, not for hedging purposes. The results of derivatives use during the period were within our expectations and were a factor in the Fund’s positive performance.

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 8, 2013
C-Class	October 8, 2013
H-Class	October 8, 2013

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

48 | THE RYDEX FUNDS ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) March 31, 2021

Cumulative Fund Performance*

Average Annual Returns*

Periods Ended March 31, 2021

	1 Year	5 Year	Since Inception (10/08/13)
A-Class Shares	10.92%	2.31%	1.58%
A-Class Shares with sales charge‡	5.65%	1.32%	0.91%
C-Class Shares	10.10%	1.59%	0.75%
C-Class Shares with CDSC§	9.10%	1.59%	0.75%
H-Class Shares	10.93%	2.35%	1.51%
ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index	15.24%	4.35%	4.71%

*	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 ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return. The graphs are based on A-Class shares and H-Class shares only; performance for C-Class shares will vary due to differences in fee structure.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS ANNUAL REPORT | 49

SCHEDULE OF INVESTMENTS	March 31, 2021
EMERGING MARKETS BOND STRATEGY FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 0.5%
U.S. Treasury Bills
0.01% due 04/22/211,2	$	2,000	$	2,000
Total U.S. Treasury Bills
(Cost $2,000)				2,000
REPURCHASE AGREEMENTS††,3 - 88.4%
J.P. Morgan Securities LLC issued 03/31/21 at 0.01% due 04/01/214		209,410		209,410
Barclays Capital, Inc. issued 03/31/21 at 0.01% due 04/01/214		95,208		95,208
BofA Securities, Inc. issued 03/31/21 at 0.01% due 04/01/214		86,892		86,892
Total Repurchase Agreements
(Cost $391,510)				391,510
Total Investments - 88.9%
(Cost $393,510)			$	393,510
Other Assets & Liabilities, net - 11.1%				49,085
Total Net Assets - 100.0%			$	442,595

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury 5 Year Note Futures Contracts		2		Jun 2021	$	246,922	$	(2,022	)

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date	Notional Amount		Value			Upfront Premiums Received			Unrealized Depreciation**
Barclays Bank plc	ICE	CDX.EM.35.V1		1.00	%	Quarterly	06/20/26		$	300,000	$	(12,563	)	$	(10,810	)	$	(1,753	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay	Payment Frequency		Maturity Date	Units		Notional Amount		Value and Unrealized Appreciation
OTC Credit Index Swap Agreements††
Goldman Sachs International	Invesco Emerging Markets Sovereign Debt ETF	0.63% (1 Week USD LIBOR + 0.55%)	At Maturity	04/29/21			6,959	$	186,292	$	418

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

SCHEDULE OF INVESTMENTS (concluded)	March 31, 2021
EMERGING MARKETS BOND STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	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 futures collateral at March 31, 2021.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as credit index swap collateral at March 31, 2021.
	CDX.EM.35.V1 — Credit Default Swap Emerging Markets Series 35 Index Version 1
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	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 March 31, 2021 (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
U.S. Treasury Bills	$	—	$	2,000	$	—	$	2,000
Repurchase Agreements		—		391,510		—		391,510
Credit Index Swap Agreements**		—		418		—		418
Total Assets	$	—	$	393,928	$	—	$	393,928

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	2,022	$	—	$	—	$	2,022
Credit Default Swap Agreements**		—		1,753		—		1,753
Total Liabilities	$	2,022	$	1,753	$	—	$	3,775

** This derivative is reported as unrealized appreciation/depreciation at period end.

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2021

Assets:
Investments, at value (cost $2,000)	$	2,000
Repurchase agreements, at value (cost $391,510)		391,510
Segregated cash with broker		56,328
Unrealized appreciation on OTC swap agreements		418
Receivables:
Fund shares sold		5,734
Variation margin on credit default swap agreements		786
Protection fees on credit default swap agreements		83
Total assets		456,859
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		10,810
Payable for:
Fund shares redeemed		2,080
Management fees		307
Variation margin on futures contracts		203
Distribution and service fees		137
Transfer agent and administrative fees		110
Portfolio accounting fees		62
Trustees’ fees*		8
Swap settlement		3
Miscellaneous		544
Total liabilities		14,264
Commitments and contingent liabilities (Note 11)		—
Net assets	$	442,595
Net assets consist of:
Paid in capital	$	626,408
Total distributable earnings (loss)		(183,813	)
Net assets	$	442,595
A-Class:
Net assets	$	47,958
Capital shares outstanding		684
Net asset value per share	$	70.11
Maximum offering price per share (Net asset value divided by 95.25%)	$	73.61
C-Class:
Net assets	$	51,862
Capital shares outstanding		797
Net asset value per share	$	65.07
H-Class:
Net assets	$	342,775
Capital shares outstanding		4,922
Net asset value per share	$	69.64

STATEMENT OF OPERATIONS

Year Ended March 31, 2021

Investment Income:
Interest	$	402
Total investment income		402
Expenses:
Management fees		7,308
Distribution and service fees:
A-Class		488
C-Class		665
H-Class		1,785
Transfer agent and administrative fees		2,837
Registration fees		1,570
Portfolio accounting fees		1,463
Trustees’ fees*		420
Custodian fees		161
Miscellaneous		60
Total expenses		16,757
Net investment loss		(16,355	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		179,320
Futures contracts		4,808
Net realized gain		184,128
Net change in unrealized appreciation (depreciation) on:
Investments		(5	)
Swap agreements		17,069
Futures contracts		(9,280	)
Net change in unrealized appreciation (depreciation)		7,784
Net realized and unrealized gain		191,912
Net increase in net assets resulting from operations	$	175,557

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

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(16,355	)	$	12,923
Net realized gain (loss) on investments		184,128			(34,134	)
Net change in unrealized appreciation (depreciation) on investments		7,784			(47,946	)
Net increase (decrease) in net assets resulting from operations		175,557			(69,157	)
Distributions to shareholders:
A-Class		(403	)		(2,501	)
C-Class		(847	)		(5,902	)
H-Class		(6,005	)		(332,227	)
Total distributions to shareholders		(7,255	)		(340,630	)
Capital share transactions:
Proceeds from sale of shares
A-Class		344,712			1,927,596
C-Class		—			145,366
H-Class		5,679,241			5,754,621
Distributions reinvested
A-Class		403			2,501
C-Class		847			5,902
H-Class		6,005			332,224
Cost of shares redeemed
A-Class		(1,470,337	)		(1,529,027	)
C-Class		(17,197	)		(143,144	)
H-Class		(5,743,063	)		(14,659,065	)
Net decrease from capital share transactions		(1,199,389	)		(8,163,026	)
Net decrease in net assets		(1,031,087	)		(8,572,813	)
Net assets:
Beginning of year		1,473,682			10,046,495
End of year	$	442,595		$	1,473,682
Capital share activity:
Shares sold
A-Class		4,998			27,204
C-Class		—			2,040
H-Class		80,788			76,190
Shares issued from reinvestment of distributions
A-Class		5			35
C-Class		12			87
H-Class		82			4,616
Shares redeemed
A-Class		(21,600	)		(20,116	)
C-Class		(255	)		(1,923	)
H-Class		(80,778	)		(199,774	)
Net decrease in shares		(16,748	)		(111,641	)

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	63.93		$	74.95		$	73.42		$	71.93		$	72.75
Income (loss) from investment operations:
Net investment income (loss)a		(1.14	)		.03			.10			(.55	)		(.91	)
Net gain (loss) on investments (realized and unrealized)		8.16			(4.86	)		1.43			2.13			3.87
Total from investment operations		7.02			(4.83	)		1.53			1.58			2.96
Less distributions from:
Net investment income		(.84	)		(2.36	)		—			(.09	)		(3.70	)
Net realized gains		—			(3.83	)		—			—			(.08	)
Total distributions		(.84	)		(6.19	)		—			(.09	)		(3.78	)
Net asset value, end of period	$	70.11		$	63.93		$	74.95		$	73.42		$	71.93
Total Returnb		10.92	%		(7.41	%)		2.08	%		2.18	%		4.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	48		$	1,105		$	761		$	116		$	113
Ratios to average net assets:
Net investment income (loss)		(1.72	%)		0.03	%		0.14	%		(0.74	%)		(1.19	%)
Total expenses		1.74	%		1.68	%		1.66	%		1.58	%		1.58	%
Portfolio turnover rate		—			—			—			—			733	%

C-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	59.82		$	71.05		$	70.12		$	69.22		$	70.54
Income (loss) from investment operations:
Net investment income (loss)a		(1.56	)		(.46	)		(.54	)		(1.06	)		(1.10	)
Net gain (loss) on investments (realized and unrealized)		7.65			(4.58	)		1.47			2.05			3.56
Total from investment operations		6.09			(5.04	)		.93			.99			2.46
Less distributions from:
Net investment income		(.84	)		(2.36	)		—			(.09	)		(3.70	)
Net realized gains		—			(3.83	)		—			—			(.08	)
Total distributions		(.84	)		(6.19	)		—			(.09	)		(3.78	)
Net asset value, end of period	$	65.07		$	59.82		$	71.05		$	70.12		$	69.22
Total Returnb		10.10	%		(8.13	%)		1.33	%		1.41	%		4.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	52		$	62		$	59		$	82		$	90
Ratios to average net assets:
Net investment income (loss)		(2.36	%)		(0.61	%)		(0.79	%)		(1.49	%)		(1.54	%)
Total expenses		2.40	%		2.42	%		2.37	%		2.34	%		2.33	%
Portfolio turnover rate		—			—			—			—			733	%

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017c
Per Share Data
Net asset value, beginning of period	$	63.50		$	74.52		$	72.98		$	71.51		$	72.19
Income (loss) from investment operations:
Net investment income (loss)a		(1.14	)		.15			.23			(.55	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		8.12			(4.98	)		1.31			2.11			3.38
Total from investment operations		6.98			(4.83	)		1.54			1.56			3.10
Less distributions from:
Net investment income		(.84	)		(2.36	)		—			(.09	)		(3.70	)
Net realized gains		—			(3.83	)		—			—			(.08	)
Total distributions		(.84	)		(6.19	)		—			(.09	)		(3.78	)
Net asset value, end of period	$	69.64		$	63.50		$	74.52		$	72.98		$	71.51
Total Return		10.93	%		(7.45	%)		2.11	%		2.19	%		4.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	343		$	307		$	9,226		$	615		$	472
Ratios to average net assets:
Net investment income (loss)		(1.61	%)		0.20	%		0.32	%		(0.75	%)		(0.38	%)
Total expenses		1.65	%		1.67	%		1.70	%		1.58	%		1.54	%
Portfolio turnover rate		—			—			—			—			733	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any applicable sales charges.
c	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.

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

NOTES TO FINANCIAL STATEMENTS

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 (each, a “Fund”). The Trust may issue an unlimited number of authorized 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. 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 March 31, 2021, the Trust consisted of fifty-two funds.

This report covers the following funds (collectively, the “Funds”):

Fund Name	Investment Company Type
Long Short Equity Fund	Non-diversified
Emerging Markets 2x Strategy Fund	Non-diversified
Inverse Emerging Markets 2x Strategy Fund	Non-diversified
Emerging Markets Bond Strategy Fund	Diversified

At March 31, 2021, A-Class, C-Class, H-Class, P-Class and Institutional Class shares have been issued by the Funds.

The Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

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 a fund is calculated by dividing the market value of a fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the March 31, 2021, 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,

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NOTES TO FINANCIAL STATEMENTS (continued)

including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities and other assets 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 or traded on a recognized U.S. securities exchange or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) National Market System shall generally be valued on the basis of the last sale price on the primary U.S. exchange or market on which the security is listed or traded; provided, however, that securities listed on NASDAQ will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there is no sale on the valuation date, exchange-traded U.S. equity securities will be valued on the basis of the last bid price.

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds and closed-end investment companies are valued at the last quoted sale price.

U.S. Government securities are valued by independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Repurchase agreements are generally valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation 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 swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’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 U.S. Treasury securities, 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) 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 appreciation or depreciation. 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

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 receipts or payments are received or made by the Fund depending on fluctuations in the fair value of the reference entity and are recorded by the Fund as unrealized appreciation or depreciation. 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.

Upfront payments received or made by a Fund on credit default swap agreements and interest rate 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 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 gain or loss and unrealized appreciation or depreciation 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 appreciation and depreciation 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 Statements 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 March 31, 2021, 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 a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries, if any. 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 Real Estate Investment Trusts (“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 realized gains. The actual amounts of income, return of capital, and realized 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 U.S. federal income tax regulations which may differ from U.S. GAAP.

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(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation 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 based on the respective 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 0.06% at March 31, 2021.

(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 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 – Derivatives

As part of their investment strategy, the Funds may utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized on 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 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 Contracts

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the Funds’ use and volume of futures on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	35,814	$	11,325
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		11,325
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		444,437		—

Swap Agreements

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. When utilizing over-the-counter (“OTC”) swaps, 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 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 exchange-traded futures contracts. For a fund utilizing centrally-cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. 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 and custom basket swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index or custom basket of securities) for a fixed or variable interest rate. Total return and custom basket swaps will usually be computed based on the current value of the reference asset 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. When utilizing total return or custom basket swaps, 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 if the underlying reference asset declines in value.

The following table represents the Funds’ use and volume of total return and custom basket swaps on a monthly basis:

		Average Notional Amount
Fund	Use	Long		Short
Long Short Equity Fund	Index exposure, Liquidity	$	6,933,272	$	11,059,943
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		9,972,565		—
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,568,142
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity		419,826		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the investment grade and/or 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. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller 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 amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, 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 a fund is selling credit protection, the default of a third party issuer.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 monthly basis:

		Average Notional Amount
Fund	Use	Protection Sold		Protection Purchased
Emerging Markets Bond Strategy Fund	Duration, Index exposure, Leverage, Liquidity	$	726,458	$	—

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 March 31, 2021:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
		Variation margin on futures contracts
Credit contracts	Unrealized appreciation on OTC swap agreements	Unamortized upfront premiums received on credit default swap agreements
	Variation margin on credit default swap agreements	Variation margin on futures contracts

The following tables set forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at March 31, 2021:

Asset Derivative Investments Value
Fund	Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2021
Long Short Equity Fund	$	1,186,519	$	—	$	—	$	1,186,519
Inverse Emerging Markets 2x Strategy Fund		38,375		—		—		38,375
Emerging Markets Bond Strategy Fund		—		—		418		418

Liability Derivative Investments Value
Fund	Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk*		Total Value at March 31, 2021
Long Short Equity Fund	$	1,418,521	$	—	$	—	$	1,418,521
Emerging Markets 2x Strategy Fund		898,927		—		—		898,927
Emerging Markets Bond Strategy Fund		—		2,022		1,753		3,775

* Includes cumulative appreciation (depreciation) of exchange-traded, OTC and centrally-cleared derivatives as reported on the Schedules of Investments. For exchange-traded and centrally-cleared derivatives, variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended March 31, 2021:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

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NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the year ended March 31, 2021:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk		Swaps Credit Risk		Total
Long Short Equity Fund	$	—		$	(2,382,497	)	$	—	$	—	$	(2,382,497	)
Emerging Markets 2x Strategy Fund		60,369			4,283,457			—		—		4,343,826
Inverse Emerging Markets 2x Strategy Fund		(13,003	)		(1,578,473	)		—		—		(1,591,476	)
Emerging Markets Bond Strategy Fund		—			—			4,808		179,320		184,128

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk		Total
Long Short Equity Fund	$	—		$	130,978		$	—		$	—	$	130,978
Emerging Markets 2x Strategy Fund		(107	)		(796,482	)		—			—		(796,589	)
Inverse Emerging Markets 2x Strategy Fund		—			36,619			—			—		36,619
Emerging Markets Bond Strategy Fund		—			—			(9,280	)		17,069		7,789

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

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.

Foreign Investments

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 Funds may incur transaction costs in connection with conversions between various currencies. The Funds 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.

The Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Funds.

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								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	Custom basket swap agreements	$	1,186,519	$	—	$	1,186,519	$	(1,186,519	)	$	—	$	—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		38,375		—		38,375		—			—		38,375
Emerging Markets Bond Strategy Fund	Credit index swap agreements		418		—		418		—			—		418

								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	Custom basket swap agreements	$	1,418,521	$	—	$	1,418,521	$	(1,418,521	)	$	—	$	—
Emerging Markets 2x Strategy Fund	Swap equity contracts		898,927		—		898,927		(898,927	)		—		—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of March 31, 2021.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Emerging Markets Bond Strategy Fund	Barclays Bank plc	Credit default swap agreements	$	56,328	$	—

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.).

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

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

The 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 – Investment Advisory Agreement and Other Agreements

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	%
Emerging Markets 2x Strategy Fund		0.90	%
Inverse Emerging Markets 2x Strategy Fund		0.90	%
Emerging Markets Bond Strategy Fund		0.75	%

When the aggregate assets of each series of the Trust (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) and each series of Rydex Dynamic Funds equal or exceed $10 billion, the advisory fee rate paid by each individual Fund (excluding the Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund) will be reduced in accordance with the asset level and breakpoint schedule set forth below.

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion		0.025	%
> $1 billion - $2 billion		0.050	%
> $2 billion		0.075	%

GI pays operating expenses on behalf of the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, among others, on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Board has adopted a Distribution Plan applicable to A-Class shares, H-Class shares and P-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

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

For the year ended March 31, 2021, GFD retained sales charges of $128,465 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI and/or GFD. The Trust does not compensate its officers or trustees who are officers, directors and/or employees of GI or GFD.

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NOTES TO FINANCIAL STATEMENTS (continued)

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS maintains the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets 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 March 31, 2021, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
J.P. Morgan Securities LLC					U.S. Treasury Bond
0.01%					2.38%
Due 04/01/21	$	124,999,036	$	124,999,053	11/15/49	$	126,141,600	$	127,499,092
Barclays Capital, Inc.					U.S. Treasury Inflation Indexed Bond
0.01%					0.13%
Due 04/01/21		56,830,637		56,830,653	02/15/51		57,053,077		57,967,257
BofA Securities, Inc.					U.S. Treasury Note
0.01%					0.38%
Due 04/01/21		51,866,820		51,866,827	04/30/25		53,449,300		52,904,236

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 fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

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At March 31, 2021, 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	$	84,230	$	(84,230	)	$	—	$	86,162	$	—	$	86,162
Emerging Markets 2x Strategy Fund		31,851		(31,851	)		—		32,816		—		32,816

^(a) Actual collateral received by the Fund is generally 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 or federal excise 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 U.S. 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’ U.S. federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”) for a period of three years after they are filed.

The tax character of distributions paid during the year ended March 31, 2021 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	74,720	$	—	$	74,720
Emerging Markets Bond Strategy Fund		7,255		—		7,255

The tax character of distributions paid during the year ended March 31, 2020 was as follows:

Fund	Ordinary Income		Long-Term Capital Gain		Total Distributions
Long Short Equity Fund	$	153,645	$	—	$	153,645
Emerging Markets 2x Strategy Fund		44,598		—		44,598
Inverse Emerging Markets 2x Strategy Fund		4,522		—		4,522
Emerging Markets Bond Strategy Fund		340,630		—		340,630

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

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax components of distributable earnings/(loss) as of March 31, 2021 were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation)			Accumulated Capital and Other Losses			Total
Long Short Equity Fund	$	20,579	$	—	$	2,500,664		$	(3,807,482	)	$	(1,286,239	)
Emerging Markets 2x Strategy Fund		—		—		(409,848	)		(10,346,604	)		(10,756,452	)
Inverse Emerging Markets 2x Strategy Fund		—		—		38,375			(19,945,738	)		(19,907,363	)
Emerging Markets Bond Strategy Fund		—		—		(1,335	)		(182,478	)		(183,813	)

For U.S. federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward and applied against future capital gains. The Funds are permitted to carry forward capital losses for an unlimited period and such capital loss carryforwards retain their character as either short-term or long-term capital losses. As of March 31, 2021, capital loss carryforwards for the Funds were as follows:

							Total
	Unlimited						Capital Loss
Fund	Short-Term			Long-Term			Carryforwards
Long Short Equity Fund	$	(3,552,276	)	$	(255,206	)	$	(3,807,482	)
Emerging Markets 2x Strategy Fund		(9,210,813	)		(1,135,791	)		(10,346,604	)
Inverse Emerging Markets 2x Strategy Fund		(19,066,247	)		(877,256	)		(19,943,503	)
Emerging Markets Bond Strategy Fund		(172,790	)		—			(172,790	)

For the year ended March 31, 2021, the following capital loss carryforward amounts were utilized:

Fund	Utilized
Long Short Equity Fund	$	680,450
Emerging Markets 2x Strategy Fund		4,474,207

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to investments in real estate investment trusts, investments in swaps, losses deferred due to wash sales, taxable overdistributions, and the “mark-to-market” of certain derivatives. Additional differences may result from the tax treatment of net operating losses and the deferral of qualified late-year losses. To the extent these differences are permanent and would require a reclassification between Paid in Capital and Total Distributable Earnings (Loss), such reclassifications are made in the period that the differences arise. These reclassifications have no effect on net assets or NAV per share.

The following adjustments were made on the Statements of Assets and Liabilities as of March 31, 2021 for permanent book/tax differences:

Fund	Paid In Capital			Total Distributable Earnings/(Loss)
Long Short Equity Fund	$	(150	)	$	150
Emerging Markets 2x Strategy Fund		(83,631	)		83,631
Inverse Emerging Markets 2x Strategy Fund		(15,902	)		15,902
Emerging Markets Bond Strategy Fund		(24,955	)		24,955

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At March 31, 2021, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Tax Unrealized Appreciation/ (Depreciation)
Long Short Equity Fund	$	14,689,651	$	4,078,773	$	(1,578,109	)	$	2,500,664
Emerging Markets 2x Strategy Fund		9,204,663		495,574		(905,422	)		(409,848	)
Inverse Emerging Markets 2x Strategy Fund		388,238		38,375		—			38,375
Emerging Markets Bond Strategy Fund		393,510		618		(1,953	)		(1,335	)

Pursuant to U.S. federal income tax regulations applicable to regulated investment companies, the Funds have elected to treat net capital losses and certain ordinary losses realized between November 1 and March 31 of each year as occurring on the first day of the following tax year. The Funds have also elected to treat certain ordinary losses realized between January 1 and March 31 of each year as occurring on the first day of the following tax year. For the year ended March 31, 2021, the following losses reflected in the accompanying financial statements were deferred for U.S. federal income tax purposes until April 1, 2021:

Fund	Ordinary			Capital
Inverse Emerging Markets 2x Strategy Fund	$	(2,235	)	$	—
Emerging Markets Bond Strategy Fund		(9,688	)		—

Note 9 – Securities Transactions

For the year ended March 31, 2021, 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	$	25,310,820	$	26,963,333
Emerging Markets 2x Strategy Fund		12,692,398		9,818,361

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. 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 year ended March 31, 2021, 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)
Emerging Markets 2x Strategy Fund	$	73,097	$	—	$	—

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 expired June 8, 2020. On June 8, 2020, the line of credit agreement was renewed at an increased amount of $150,000,000 and expires on June 7, 2021. On February 10, 2021, the line of credit was increased from $150,000,000 to $200,000,000. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the year ended March 31, 2021. The Funds did not have any borrowings outstanding under this agreement at March 31, 2021.

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NOTES TO FINANCIAL STATEMENTS (continued)

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-2296 (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. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.” On December 19, 2019, the Second Circuit issued an amended opinion that again affirmed the district court’s ruling on the basis that plaintiffs’ claims were preempted by Section 546(e) of the Bankruptcy Code. Plaintiffs filed a motion for rehearing and rehearing en banc on January 2, 2020. The Second Circuit denied the petition on February 6, 2020. On July 6, 2020, plaintiffs filed a new petition for a writ of certiorari in the U.S. Supreme Court. In that petition, plaintiffs stated that “[t]o make it more likely that there will be a quorum for this petition,” they have “abandon[ed] the case and let the judgment below stand” with respect to certain defendants. That list did not include the Rydex Series Funds. Defendants filed an opposition to the certiorari petition on August 26, 2020, and plaintiffs filed a reply in support of the petition for certiorari on September 8, 2020. On March 12, 2021, the Solicitor General filed an amicus brief recommending that certiorari be denied. Plaintiffs filed a supplemental brief in response to the Solicitor General’s amicus brief on March 31, 2021, and Defendants filed a supplemental brief on April 1, 2021.

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

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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 intended to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

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. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend. Plaintiff filed an appellate brief on January 7, 2020. The shareholder defendants’ brief was filed on April 27, 2020. Plaintiff filed a reply brief on May 18, 2020. The Court held oral argument on August 24, 2020.

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.

Note 12 – COVID-19

The global ongoing crisis caused by the outbreak of COVID-19 and the current recovery underway is causing disruption to consumer demand and economic output and supply chains. There are still travel restrictions and quarantines, and adverse impacts on local and global economies. Investors should be aware that in light of the current uncertainty, volatility and distress in economies, financial markets, and labor and public health conditions around the world, the Funds’ investments and a shareholder’s investment in a Fund are subject to sudden and substantial losses, increased volatility and other adverse events. Firms through which investors invest with the Funds, the Funds, their service providers, the markets in which they invest and market intermediaries are also impacted by quarantines and similar measures intended to respond to and contain the ongoing pandemic, which can obstruct their functioning and subject them to heightened operational and other risks.

Note 13 – Subsequent Events

The Funds evaluated subsequent events through the date the financial statements were available for issue and determined there were no material events that would require adjustment to or disclosure in the Funds’ financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of Guggenheim Long Short Equity Fund, Rydex Emerging Markets 2x Strategy Fund, Rydex Inverse Emerging Markets 2x Strategy Fund and Rydex Emerging Markets Bond Strategy Fund and the Board of Trustees of Rydex Series Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Guggenheim Long Short Equity Fund, Rydex Emerging Markets 2x Strategy Fund, Rydex Inverse Emerging Markets 2x Strategy Fund and Rydex Emerging Markets Bond Strategy Fund (collectively referred to as the “Funds”), (four of the funds constituting Rydex Series Funds (the “Trust”)), including the schedules of investments, as of March 31, 2021, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (four of the funds constituting Rydex Series Funds) at March 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Guggenheim investment companies since 1979.

Tysons, Virginia
May 26, 2021

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OTHER INFORMATION (Unaudited)

Federal Income Tax Information

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

In January 2022, shareholders will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by shareholders in the calendar year 2021.

The Funds’ investment income (dividend income plus short-term capital gains, if any) qualifies as follows:

Of the taxable ordinary income distributions paid during the fiscal year ending March 31, 2021, the following fund had the corresponding percentages qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief and Reconciliation Act of 2003 or for the dividends received deduction for corporations. See the qualified dividend income and dividend received deduction columns, respectively, in the table below.

Fund	Qualified Dividend Income			Dividend Received Deduction
Long Short Equity Fund		100.00	%		100.00	%

Delivery of Shareholder Reports

Paper copies of the Funds’ annual and semi-annual shareholder reports are not sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports are made available on a website, and you are notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future shareholder reports in paper free of charge. If you hold shares of a fund directly, you can inform the Fund that you wish to receive paper copies of reports by calling 800.820.0888. If you hold shares of a fund through a financial intermediary, please contact the financial intermediary to make this election. Your election to receive reports in paper may apply to all Guggenheim Funds in which you are invested and may apply to all Guggenheim funds held with your financial intermediary.

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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee and Chair of the Valuation Oversight Committee	Since 2019 (Trustee) Since 2020 (Chair of the Valuation Oversight Committee)	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	157	Current: Purpose Investments Funds (2013-present). Former: Managed Duration Investment Grade Municipal Fund (2006-2016).
Angela Brock-Kyle (1959)	Trustee	Since 2016	Current: Founder and Chief Executive Officer, B.O.A.R.D.S. (2013-present). Former: Senior Leader, TIAA (1987-2012).	156	Current: Bowhead Insurance GP, LLC (2020-present); Hunt Companies, Inc. (2019-present). Former: Infinity Property & Casualty Corp. (2014-2018).
Thomas F. Lydon, Jr. (1960)	Trustee and Chair of the Contracts Review Committee	Since 2005 (Trustee) Since 2020 (Chair of the Contracts Review Committee)	Current: President, Global Trends Investments (1996-present); Co-Chief Executive Officer, ETF Flows, LLC (2019-present); Chief Executive Officer, Lydon Media (2016-present).	156	Current: US Global Investors (GROW) (1995-present). Former: Harvest Volatility Edge Trust (3) (2017-2019).
Ronald A. Nyberg (1953)	Trustee and Chair of the Nominating and Governance Committee	Since 2019	Current: Of Counsel, Momkus LLP (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	157	Current: PPM Funds (2) (2018-present); Edward-Elmhurst Healthcare System (2012-present). Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Sandra G. Sponem (1958)	Trustee and Chair of the Audit Committee	Since 2016 (Trustee) Since 2019 (Chair of the Audit Committee)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson-Companies, Inc. (2007-2017).	156	Current: SPDR Series Trust (81) (2018-present); SPDR Index Shares Funds (30) (2018-present); SSGA Active Trust (14) (2018-present). Former: SSGA Master Trust (1) (2018-2020).
Ronald E. Toupin, Jr. (1958)	Trustee, Chair of the Board and Chair of the Executive Committee	Since 2019	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	156	Former: Western Asset Inflation-Linked Opportunities & Income Fund (2004-2020); Western Asset Inflation-Linked Income Fund (2003-2020); Managed Duration Investment Grade Municipal Fund (2003-2016).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex Overseen	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer	Since 2019	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer, certain other funds in the Fund Complex (2017-2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	156	None.

*	The business address of each Trustee is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.
***	Each Trustee also serves on the Boards of Trustees of Guggenheim Funds Trust, Guggenheim Variable Funds Trust, Guggenheim Strategy Funds Trust, Fiduciary/Claymore Energy Infrastructure Fund, Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust, Guggenheim Strategic Opportunities Fund, Guggenheim Enhanced Equity Income Fund, Guggenheim Energy & Income Fund, Guggenheim Credit Allocation Fund, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Transparent Value Trust. Messrs. Barnes and Nyberg also serve on the Board of Trustees of Advent Convertible & Income Fund.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS
Brian E. Binder (1972)	President and Chief Executive Officer	Since 2019	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President, Chief Executive Officer and Chairman of the Board of Managers, Guggenheim Funds Investment Advisors, LLC (2018-present); President and Chief Executive Officer, Security Investors, LLC (2018-present); Board Member of Guggenheim Partners Fund Management (Europe) Limited (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer	Since 2016	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary	Since 2017	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer	Since 2016	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present).
Michael P. Megaris (1984)	Assistant Secretary	Since 2018	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer	Since 2012	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer	Since 2017	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Managing Director, Guggenheim Investments (2015-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

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

Name, Address* and Year of Birth	Position(s) Held with Trust	Term of Office and Length of Time Served**	Principal Occupation(s) During Past Five Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer	Since 2016	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, Mutual Fund Administration for 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).
Bryan Stone (1979)	Vice President	Since 2019	Current: Vice President, certain other funds in the Fund Complex (2014-present); Managing Director, Guggenheim Investments (2013-present). Former: Senior Vice President, Neuberger Berman Group LLC (2009-2013); Vice President, Morgan Stanley (2002-2009).
John L. Sullivan (1955)	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2016	Current: Chief Financial Officer, 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 Chief Compliance Officer, 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); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer	Since 2017	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014–2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	The business address of each officer is c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Each officer serves an indefinite term, until his or her successor is duly elected and qualified.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

This Privacy Notice describes the data protection practices of Guggenheim Investments. Guggenheim Investments as used herein refers to the affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Guggenheim Investment Advisors (Europe) Limited, Guggenheim Real Estate, LLC, GS Gamma Advisors, LLC, Guggenheim Partners India Management, LLC, Guggenheim Partners Europe Limited, as well as the funds in the Guggenheim Funds complex (the “Funds”) (“Guggenheim Investments,” “we,” “us,” or “our”).

Guggenheim Partners Investment Management Holdings, LLC, located at 330 Madison Avenue, New York, New York 10017 is the data controller for your information. The affiliates who are also controllers of certain of your information are: Guggenheim Investment Advisors (Europe) Limited, Guggenheim Partners Europe Limited, 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.

Our Commitment to You

Guggenheim Investments considers your privacy our utmost concern. When you become our client or investor, you entrust us with not only your hard-earned money but also with your personal and financial information. Because we have access to your private information, we hold ourselves to the highest standards in its safekeeping and use. We strictly limit how we share your information with others, whether you are a current or former Guggenheim Investments client or investor.

The Information We Collect About You

We collect certain nonpublic personal information about you from information you provide on applications, other forms, our website, and/or from third parties including investment advisors. This information includes Social Security or other tax identification number, assets, income, tax information, retirement and estate plan information, transaction history, account balance, payment history, bank account information, marital status, family relationships, information that we collect on our website through the use of “cookies,” and other personal information that you or others provide to us. We may also collect such information through your inquiries by mail, e-mail or telephone. We may also collect customer due diligence information, as required by applicable law and regulation, through third party service providers.

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

In addition to the specific uses described above, we also use your information in the following manner:

● We use your information in connection with servicing your accounts.

● We use information to respond to your requests or questions. For example, we might use your information to respond to your customer feedback.

● We use information to improve our products and services. We may use your information to make our website and products better. We may use your information to customize your experience with us.

● We use information for security purposes. We may use your information to protect our company and our customers.

● We use information to communicate with you. For example, we will communicate with you about your account or our relationship. We may contact you about your feedback. We might also contact you about this Privacy Notice. We may also enroll you in our email newsletter.

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

● We use information as otherwise permitted by law, as we may notify you.

● Aggregate/Anonymous Data. We may aggregate and/or anonymize any information collected through the website so that such information can no longer be linked to you or your device (“Aggregate/Anonymous Information”). We may use Aggregate/Anonymous Information for any purpose, including without limitation for research and marketing purposes, and may also share such data with any third parties, including advertisers, promotional partners, and sponsors.

We do not sell information about current or former clients or their accounts to third parties. Nor do we share this information, except when necessary to complete transactions at your request, to make you aware of investment products and services that we or our affiliates offer, or as permitted or required by law.

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

We will release information about you if you direct us to do so, if we are compelled by law to do so, or in other circumstances as permitted by law (for example, to protect your account from fraud).

If you close your account(s) or become an inactive client or investor, we will continue to adhere to the privacy policies and practices described in this notice.

Opt-Out Provisions and Your Data Choices

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

When you are no longer our client or investor, we continue to share your information as described in this notice, and you may contact us at any time to limit our sharing by sending an email to CorporateDataPrivacy@GuggenheimPartners.com.

European Union Data Subjects and certain others: In addition to the choices set forth above, residents of the European Union and certain other jurisdictions have certain rights to (1) request access to or rectification or deletion of information we collect about them, (2) request a restriction on the processing of their information, (3) object to the processing of their information, or (4) request the portability of certain information. To exercise these or other rights, please contact us using the contact information below. We will consider all requests and provide our response within the time period stated by applicable law. Please note, however, that certain information may be exempt from such requests in some circumstances, which may include if we need to keep processing your information for our legitimate interests or to comply with a legal obligation. We may request you provide us with information necessary to confirm your identity before responding to your request.

Residents of France and certain other jurisdictions may also provide us with instructions regarding the manner in which we may continue to store, erase and share your information after your death, and where applicable, the person you have designated to exercise these rights after your death.

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

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GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

We keep your information for no longer than necessary for the purposes for which it is processed. The length of time for which we retain information depends on the purposes for which we collected and use it and/or as required to comply with applicable laws. Information may persist in copies made for backup and business continuity purposes for additional time.

International Visitors

If you are not a resident of the United States, please be aware that your information may be transferred to, stored and processed in the United States where our servers are located and our databases are operated. The data protection and other laws of the United States and other countries might not be as comprehensive as those in your country.

In such cases, we ensure that a legal basis for such a transfer exists and that adequate protection is provided as required by applicable law, for example, by using standard contractual clauses or by transferring your data to a jurisdiction that has obtained an adequacy finding. Individuals whose data may be transferred on the basis of standard contractual clauses may contact us as described below.

We’ll Keep You Informed

If you have any questions or concerns about how we treat your personal data, we encourage you to consult with us first. You may also contact the relevant supervisory authority.

We reserve the right to modify this policy at any time and will inform you promptly of material changes. You may access our privacy policy from our web site at www.guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us by email at CorporateDataPrivacy@GuggenheimPartners.com.

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Item 2. Code of Ethics.

The registrant’s Board of Trustees has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The registrant's Board of Trustees has determined that it has at least one audit committee financial expert serving on its audit committee (the “Audit Committee”), Sandra G. Sponem. Ms. Sponem is “independent,” meaning that she is not an “interested person” of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) and she does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in her capacity as a Board or committee member).

Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the Audit Committee or Board of Trustees.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. The aggregate Audit Fees billed by the registrant’s principal accountant for professional services rendered for the audit of the annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal years ended March 31, 2021 and March 31, 2020 were $893,061 and $852,722, respectively.

(b) Audit Related Fees. The aggregate Audit-Related Fees billed by the registrant’s principal accountant for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item for the fiscal years ended March 31, 2021 and March 31, 2020 were $0 and $0, respectively.

(c) Tax Fees: The aggregate Tax Fees billed by the registrant’s principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended March 31, 2021 and March 31, 2020 were $440,430 and $456,085, respectively. These services consisted of (i) preparation of U.S. federal, state and excise tax returns; (ii) U.S. federal and state tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired and (iv) review of U.S. federal excise distribution calculations.

(d) All Other Fees. The aggregate All Other Fees billed by the registrant’s principal accountant for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item, for the fiscal years ended March 31, 2021 and March 31, 2020 were $0 and $0, respectively.

(e) Audit Committee Pre-Approval Policies and Procedures.

(1) Audit Committee pre-approval policies and procedures:

To fulfill its responsibilities and duties the Audit Committee (the “Committee”) shall:

1. Pre-Approval Policy (Trusts). Pre-approve any engagement of the independent auditors to provide any services, other than “prohibited non-audit services,” to the Trust, including the fees and other compensation to be paid to the independent auditors (unless an exception is available under Rule 2-01 of Regulation S-X).

(a) The categories of services to be reviewed and considered for pre-approval include those services set forth under Section II.A.1. of the Background and Definitions for Audit Committee Charter (collectively, “Identified Services”).

(b) The Committee has pre-approved Identified Services for which the estimated fees are less than $25,000.

(c) For Identified Services with estimated fees of $25,000 or more, but less than $50,000, the Chair or any member of the Committee designated by the Chair is hereby authorized to pre-approve such Identified Services on behalf of the Committee.

(d) For Identified Services with estimated fees of $50,000 or more, such Identified Services require pre-approval by the Committee.

(e) All requests for Identified Services to be provided by the independent auditor that were pre-approved by the Committee shall be submitted to the Principal/Chief Accounting Officer (“CAO”) of the Trust by the independent auditor using the pre-approval request form. The Trust’s CAO will determine whether such services are included within the list of services that have received the general pre-approval of the Committee.

(f) The independent auditors or the CAO of the Trust (or an officer of the Trust who reports to the CAO) shall report to the Committee at each of its regular scheduled meetings all audit, audit-related and permissible non-audit services initiated since the last such report (unless the services were contained in the initial audit plan, as previously presented to, and approved by, the Committee). The report shall include a general description of the services and projected fees, and the means by which such services were approved by the Committee (including the particular category of Identified Services under which pre-approval was obtained).

2. Pre-Approval Policy (Adviser or Any Control Affiliate). Pre-approve any engagement of the independent auditors, including the fees and other compensation to be paid to the independent auditors, to provide any non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust), if the engagement relates directly to the operations or financial reporting of the Trust (unless an exception is available under Rule 2-01 of Regulation S-X).

(a) The Chair or any member of the Committee designated by the Chair may grant the pre-approval for non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust) relating directly to the operations or financial reporting of the Trust for which the estimated fees are less than $25,000. All such delegated pre-approvals shall be presented to the Committee no later than the next Committee meeting.

(b) For non-audit services to the Adviser (or any “control affiliate” of the Adviser providing ongoing services to the Trust) relating directly to the operations or financial reporting of the Trust for which the estimated fees are $25,000 or more, such services require pre-approval by the Committee.

a. Pre-Approval Requirements

i. Categories of Services to be Reviewed and Considered for Pre-Approval

1. Audit Services

a. Annual financial statement audits

b. Seed audits (related to new product filings, as required)

c. SEC and regulatory filings and consents

2. Audit-Related Services

a. Accounting consultations

b. Fund merger/reorganization support services

c. Other accounting related matters

d. Agreed upon procedures reports

e. Attestation reports

f. Other internal control reports

3. Tax Services

a. Recurring tax services:

i. Preparation of Federal and state income tax returns, including extensions

ii. Preparation of calculations of taxable income, including fiscal year tax designations

iii. Preparation of annual Federal excise tax returns (if applicable)

iv. Preparation of calendar year excise distribution calculations

v. Calculation of tax equalization on an as-needed basis

vi. Preparation of monthly/quarterly estimates of tax undistributed position for closed-end funds

vii. Preparation of the estimated excise distribution calculations on an as-needed basis

viii. Preparation of calendar year shareholder reporting designations on Form 1099

ix. Preparation of quarterly Federal, state and local and franchise tax estimated tax payments on an as-needed basis

x. Preparation of state apportionment calculations to properly allocate Fund taxable income among the states for state tax filing purposes

xi. Assistance with management’s identification of passive foreign investment companies (PFICs) for tax purposes

b. Permissible non-recurring tax services upon request:

i. Assistance with determining ownership changes which impact a Fund’s utilization of loss carryforwards

ii. Assistance with corporate actions and tax treatment of complex securities and structured products

iii. Assistance with IRS ruling requests and calculation of deficiency dividends

iv. Conduct training sessions for the Adviser’s internal tax resources

v. Assistance with Federal, state, local and international tax planning and advice regarding the tax consequences of proposed or actual transactions

vi. Tax services related to amendments to Federal, state and local returns and sales and use tax compliance

vii. RIC qualification reviews

viii. Tax distribution analysis and planning

ix. Tax authority examination services

x. Tax appeals support services

xi. Tax accounting methods studies

xii. Fund merger, reorganization and liquidation support services

xiii. Tax compliance, planning and advice services and related projects

xiv. Assistance with out of state residency status

xv. Provision of tax compliance services in India for Funds with direct investments in India

(f) Not applicable.

(g) Non-Audit Fees. The aggregate non-audit fees billed by the registrant’s accountant for the most recent fiscal year and the preceding fiscal year for services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant were $440,430 and $456,085, respectively. These aggregate fees were less than the aggregate fees billed for the same periods by the registrant’s principal accountant for audit services rendered to the registrant, the investment advisor, and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant.

(h) Auditor Independence. The registrant’s Audit Committee was provided with information relating to the provision of non-audit services by Ernst & Young, LLP to the registrant’s investment adviser (not including any sub adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved by the Audit Committee so that a determination could be made whether the provision of such services is compatible with maintaining Ernst & Young, LLP’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

The 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.

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

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 period 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)(1) The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

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

(a)(3) Not applicable.

(a)(4) Not applicable.

(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/ Brian E. Binder
	Brian E. Binder, President and Chief Executive Officer
Date	June 7, 2021

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/ Brian E. Binder
	Brian E. Binder, President and Chief Executive Officer
Date	June 7, 2021
By (Signature and Title)*	/s/ John L. Sullivan
	John L. Sullivan, Chief Financial Officer, Chief Accounting Officer and Treasurer
Date	June 7, 2021

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