¹Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
Rydex SGI Event Driven and Distressed Strategies Fund, Long Short Equity Strategy Fund and Alternative Strategy Fund (the “funds”) are subject to a number of risks and are not suitable for all investors. The funds’ use of derivatives such as futures, options, structured notes, exchange traded notes and swap agreements may expose the funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default and adverse tax treatment. The funds’ use of short selling involves increased risk and costs including paying more for a security than received from its sale and the risk of unlimited losses. The more the funds invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The funds’ investments in developed and emerging foreign markets may increase volatility due to the impact of diplomatic, political or economic developments on the country in question. Additionally, the funds’ 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. In certain circumstances the funds may be subject to liquidity risk and it may be difficult for the funds to purchase and sell particular investments within a reasonable time at a fair price. The funds are subject to tracking error risk, which may cause the funds’ performance not to match that of or be lower than the fund’s underlying benchmark. The 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.
Rydex SGI Long Short Interest Rate Strategy Fund is subject to a number of risks and is not suitable for all investors. The fund’s use of derivatives such as futures, options 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. Certain of the derivative instruments, such as swaps and structured notes, are also subject to the risks of counterparty default. 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 is not guaranteed by the U.S. government. See the prospectus for more information on these and other risks.
Alternative investment mutual funds may not be suitable for all investors because of the sophisticated and aggressive investment techniques such investments employ, including leverage, the use of derivatives and short selling.
The Funds may not be suitable for all investors. Certain Funds may be affected by risks that include those associated with sector concentration, international investing, investing in small and/or medium size companies, and/or the Funds' possible use of investment techniques and strategies such as leverage, derivatives and short sales of securities and alternative or non-traditional asset classes and strategies such as absolute return, long/short, commodities, currencies and managed futures. Please see the Funds’ prospectus for more information. Shares of the Funds are not deposits of, or guaranteed or endorsed by, any financial institution; are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other agency; and involve risk, including the possible loss of the principal amount invested. Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
Any performance data displayed, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate so that when shares are redeemed they may be worth more or less than original costs.
For more complete information regarding the funds click here for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Read the prospectus carefully before you invest or send money.
The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global InvestorsSM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are affiliates and are subsidiaries of Security Benefit.
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