Rydex SGI offers its innovative funds in several different share classes. Multiple classes of shares represent ownership in the same pool of assets - the Fund. Each class within the Fund charges different fees in an effort to provide a variety of fee structures that fit varying needs for Registered Investment Advisors, Broker/Dealers and individual investors. The different fees charged by each Class account for the differences in daily NAVs.

Class A Shares - High Yield Fund & U.S. Intermediate Bond Fund
Class A shares are subject to a sales charge of 4.75% at the time of purchase. An order for Class A shares will be priced at a Fund’s net asset value per share (NAV) next calculated after the order is received in good order and accepted by the Fund or an authorized financial intermediary, plus the sales charge set forth below. The NAV plus the sales charge is the “offering price.” A Fund’s NAV is generally calculated as of the close of trading on each day the New York Stock Exchange (“NYSE”) is open (usually 4:00 p.m. Eastern Time).

Class A Shares
Class A shares are subject to a sales charge at the time of purchase. An order for Class A shares will be priced at a Fund’s NAV next calculated after the order is accepted by the Funds or an authorized financial intermediary, plus the sales charge set forth below. The NAV, plus the sales charge, is the “offering price.” A Fund’s NAV is generally calculated as of the close of trading on every day the New York Stock Exchange (NYSE) is open. An order for Class A shares is priced at the NAV next calculated after the order is accepted by the Fund, plus the sales charge.

Class B Shares
Class B shares are not subject to a sales charge at the time of purchase. An order for Class B shares will be priced at a Fund’s NAV next calculated after the order is accepted by the Fund or an authorized financial intermediary. A Fund’s NAV is generally calculated as of the close of trading on every day the NYSE is open. Class B shares are subject to a deferred sales charge if redeemed within 5 years from the date of purchase. The deferred sales charge is a percentage of the NAV of the shares at the time they are redeemed or the original purchase price, whichever is less. Shares that are not subject to the deferred sales charge are redeemed first. Then, shares held the longest will be the first to be redeemed. The amount of the deferred sales charge is based upon the number of years since the shares were purchased, as follows:

Class C Shares
Class C shares are not subject to a sales charge at the time of purchase. An order for Class C shares will be priced at a Fund’s NAV next calculated after the order is accepted by the Fund or an authorized financial intermediary. A Fund’s NAV is generally calculated as of the close of trading on every day the NYSE is open. Class C shares are subject to a deferred sales charge of 1.00% if redeemed within one year from the date of purchase. The deferred sales charge is a percentage of the NAV of the shares at the time they are redeemed or the original purchase price, whichever is less. Shares that are not subject to the deferred sales charge are redeemed first. Then, shares held the longest will be the first to be redeemed. The Distributor will waive the deferred sales charge under certain circumstances. See the Prospectus for details.

Institutional Class Shares
Rydex SGI offers certain institutional funds and also funds that have an institutional share class available. Institutional funds and institutional share classes are offered primarily for direct investment by institutions such as pension and profit sharing plans, employee benefit trusts, endowments, foundations, and corporations. Shares may also be offered through certain financial intermediaries (such as broker/dealers, banks and other intermediaries that have an agreement with the Funds’ distributor, invest­ment manager, or transfer agent) that charge their customers transaction or other fees in connection with an investment in the Funds. The minimum initial investment is $2 million. Additional details can be found in the Funds’ prospectus.

Investor Class:
This class offers shares with a fee structure that does not include a 12b-1 or service fee. It was designed for both Registered Investment Advisors and individual investors.

Advisor Class:
This class offers shares with a fee structure that includes both .25% 12b-1 and .25% service fees. Registered Investment Advisors may select this and collect up to a .25% service fee from the Fund.

H Class:
This class offers shares with a fee structure that includes a .25% 12b-1 fee. This class is a hybrid (hence the 'H' Class) of the Investor class. It was designed for both financial professionals and individual investors.

C Class:
This Class is offered with a deferred sales charge of one percent (CDSC) that applies for the first year following purchase. Financial intermediaries (RIAs and Brokers) can receive, up front, a 1% commission and an annualized 1% trail that begins accruing in the thirteenth month. This fee option is commonly referred to as "Traditional C Shares." However, financial intermediaries have the option to enter into arrangements with Rydex Distributors, Inc., to forgo receipt of the initial 1% sales commission, whereby the Fund will waive any otherwise applicable deferred sales charge and the annualized 1% trailer begins accruing immediately after purchase. This fee option is commonly referred to as "Level Load C Shares".

Please note: Rydex SGI offers a waiver of CDSC on Traditional C Shares equaling up to 10% of the initial value of each purchase into the account during any rolling 12 month period.

A Class:
Class A shares are mutual fund shares that carry a front-end load (sales charge). Unlike our current H, Investor and Advisor Class of shares, Class A shares are front-end load funds. Like our C Class, A shares are a loaded class of shares. Class A shares typically have lower total expense than C shares but carry a front-end load (sales charge) that is subtracted from the clients purchase. Class A shares are typically more economical for large purchases or if the client intends to hold a position at Rydex SGI for a long period of time. You may be eligible for a reduced sales charge. The sales charge varies depending on the amount of your purchase. The current sales charge rates are as follows:

Amount of Investment (Offering Price)	Sales Charge as % of Offering Price	Sales Charge as % of Net Amount Invested
Less than $100,000	4.75%	4.99%
$100,000 but less than $250,000	3.75%	3.90%
$250,000 but less than $500,00	2.75%	2.83%
$500,000 but less than $1,000,000	1.60%	1.63%
$1,000,000 or greater	*	*
*For investments of $1 million or more, A-Class Shares are sold at NAV, without any upfront sales charge. However, if you sell your shares within 18 months of purchase, you will normally have to pay a 1% CDSC based on your initial purchase price or current market value, whichever is lower. The CDSC is used to reimburse the Distributor for paying your financial intermediary a sales commission up to a total of 1.00% of the purchase price of your investment in connection with your initial purchase. For more information about whether your financial intermediary has entered into such an agreement, contact your financial intermediary directly.

Investor2 Class:
This class offers shares with a fee structure that does not include a 12b-1 or service fee. It was designed for shareholders of the All Cap Value, Large Cap Value, Mid Cap Value, Small Cap Value, Large Cap Core, Mid Cap Growth, Large Cap Concentrated Growth, Small Cap Growth, Global, Alpha Opportunity, U.S. Intermediate Bond, and High Yield Funds, which can only be purchased through a financial professional. If you are interested in these funds, please contact 800.888.2461.