DEF 14A

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

                                  SCHEDULE 14A

                  Proxy Statement Pursuant to Section 14(a) of
               the Securities Exchange Act of 1934 (Amendment No.)

                           Filed by the Registrant [X]
                 Filed by a Party other than the Registrant [ ]

Check the appropriate box:
 [ ]    Preliminary Proxy Statement
 [ ]    CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY (AS PERMITTED BY RULE
        14A-6(E)(2))
 [X]    Definitive Proxy Statement
 [ ]    Definitive Additional Materials
 [ ]    Soliciting Material Pursuant to [Section]240.14a-12

                (Name of Registrant as Specified In Its Charter)
                              SECURITY EQUITY FUND

    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):
 [X]    No fee required.
 [ ]    Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
          (1)    Title of each class of securities to which transaction applies:

          (2)    Aggregate number of securities to which transaction applies:

          (3)    Per unit price or other underlying value of transaction
                 computed pursuant to Exchange Act Rule 0-11 (set forth the
                 amount on which the filing fee is calculated and state how it
                 was determined):

          (4)    Proposed maximum aggregate value of transaction:

          (5)    Total fee paid:
 [ ]    Fee paid previously with preliminary materials.
 [ ]    Check box if any part of the fee is offset as provided by Exchange Act
        Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
        paid previously. Identify the previous filing by registration statement
        number, or the Form or Schedule and the date of its filing.
          (1)    Amount Previously Paid:

          (2)    Form, Schedule or Registration Statement No.:

          (3)    Filing Party:

          (4)    Date Filed:


                              SECURITY EQUITY FUND
                          SECURITY LARGE CAP VALUE FUND
                          SECURITY MID CAP GROWTH FUND
                              SECURITY INCOME FUND
                                    SBL FUND

Dear Insurance Product Owner and Shareholder:

       I am writing to you on an important matter relating to the Rydex|SGI
family of funds (the "Funds"). On September 20, 2011, Security Investors, LLC
(the "Investment Manager"), and an indirect wholly-owned subsidiary of an entity
that is managed by a subsidiary of Guggenheim Capital, LLC ("Guggenheim
Capital"), announced a transaction whereby Guggenheim Capital will acquire 100%
of the Investment Manager and certain affiliated businesses. This transaction is
expected to be completed in late 2011 or early 2012.

       This transaction will not result in material changes to the day-to-day
management and operations of the Funds or any increase in fees. For example, the
portfolio managers of the Funds will remain the same and your daily experience
in dealing with the Funds will remain unchanged. However, for legal reasons,
the transaction would terminate the Funds' investment management agreements with
the Investment Manager unless you approve new, substantially identical,
agreements.

       Accordingly, by this joint proxy statement, we are requesting that you
vote to approve investment management agreements to take the place of the
current agreements, so that the Investment Manager may continue to manage the
Funds after the transaction is completed in a manner that is substantially
similar to the current management of the Funds.

       With respect to SBL Fund, the Funds are available as an investment option
under variable annuity contracts and variable life insurance policies
("insurance products").

       In addition, you will be asked to elect seven individuals to the Boards
of Directors of Security Equity Fund, Security Large Cap Value Fund, Security
Mid Cap Growth Fund, Security Income Fund and SBL Fund.

       If you are an insurance product owner of SBL Fund--Series N (Managed
Asset Allocation Series) ("Series N"), we are requesting that you vote to
approve a change to Series N's "fundamental investment policy" on
diversification of investments.

       A Special Joint Meeting of Shareholders (the "Meeting") of each of the
Funds, which are listed in an attachment to the Notice of Special Joint Meeting
of Shareholders, has been scheduled for November 22, 2011 to vote on these
matters. If you are a shareholder (or, with respect to SBL Fund, an insurance
product owner) of record of any of the Funds as of the close of business on
October 3, 2011, you are entitled to vote at the Meeting and any adjournment of
the Meeting, even if you no longer own Fund shares or an insurance product.


       Pursuant to these materials, you are being asked to approve proposals for
the Funds, as listed above. Please note that you may receive similar materials
if you own shares of other funds in the Rydex|SGI fund complex asking you to
approve proposals for the other funds.

       You can vote in one of four ways:

       o     By mail with the enclosed proxy card - be sure to sign, date and
             return it in the enclosed postage-paid envelope,

       o     Through the web site listed in the proxy voting instructions,

       o     By telephone using the toll-free number listed in the proxy voting
             instructions, or

       o     In person at the shareholder meeting on November 22, 2011.

       We encourage you to vote over the Internet or by telephone, using the
voting control number that appears on your proxy card. Your vote is extremely
important. Shareholder meetings of the Funds do not generally occur with great
frequency, so we ask that you take the time to carefully consider and vote on
the important proposals. Please read the enclosed information carefully before
voting. If you have questions, please call The Altman Group at 1-877-864-5058.

Proxies may be revoked prior to the Meeting by timely executing and submitting a
revised proxy (following the methods noted above), by giving written notice of
revocation to the Fund(s) prior to the Meeting, or by voting in person at the
Meeting.

       We appreciate your participation and prompt response in this matter and
thank you for your continued support.

                                  Sincerely,

                                  /s/ Richard M. Goldman
                                  Richard M. Goldman
                                  President, Chairman of the Boards of Directors

PROMPT EXECUTION AND RETURN OF THE ENCLOSED PROXY CARD IS REQUESTED. A
SELF-ADDRESSED, POSTAGE-PAID ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE, ALONG
WITH INSTRUCTIONS ON HOW TO VOTE OVER THE INTERNET OR BY TELEPHONE SHOULD YOU
PREFER TO VOTE BY ONE OF THOSE METHODS.


                      VERY IMPORTANT NEWS FOR SHAREHOLDERS

       By its very nature, the following "Questions and Answers" section is a
summary and is not intended to be as detailed as the discussion found later in
the proxy materials. For that reason, the information is qualified in its
entirety by reference to the enclosed joint proxy statement to shareholders
("Joint Proxy Statement").

                              QUESTIONS AND ANSWERS

Q.     WHY AM I RECEIVING THIS JOINT PROXY STATEMENT?

A.     You are receiving these proxy materials -- a booklet that includes the
       Joint Proxy Statement and your proxy card -- because you have the right
       to vote on important matters concerning the Rydex|SGI family of funds
       (the "Funds").

       Proposal 1 relates to actions that need to be taken in light of a
       transaction (the "Transaction") involving a change in the corporate
       ownership structure of Security Investors, LLC, the investment manager
       to each of the Funds (the "Investment Manager"). The Investment Manager
       is managed by an indirect wholly-owned subsidiary of Guggenheim Capital,
       LLC ("Guggenheim Capital"). Guggenheim Capital wishes to purchase the
       Investment Manager and certain affiliated businesses. This Transaction
       will be effected by Guggenheim Capital buying 100% of the equity of the
       holding company that owns the Investment Manager. After the
       Transaction, Guggenheim Capital will control the Investment Manager
       (through one or more of its subsidiaries), and it is expected that the
       services rendered to the Funds by the Investment Manager will not
       change. The Transaction would terminate the Funds' current investment
       management agreements with the Investment Manager (the "Current
       Investment Management Agreements") unless you approve new substantially
       identical agreements (attached hereto as Appendix B).

       Proposal 2 relates to the election of seven individuals to the Boards of
       Directors (collectively, the "Board") of Security Equity Fund, Security
       Large Cap Value Fund, Security Mid Cap Growth Fund, Security Income Fund
       and SBL Fund (the "Companies"). The Board proposes the election of the
       following nominees: Donald C. Cacciapaglia, Donald A. Chubb, Jr., Harry
       W. Craig, Jr., Jerry B. Farley, Richard M. Goldman, Penny A. Lumpkin
       and Maynard F. Oliverius. Each of the nominees, other than Mr.
       Cacciapaglia, currently serves as a Director. In connection with the
       Transaction, the Board believes that expanding the Board to include Mr.
       Cacciapaglia, who is a member of senior management of Guggenheim's
       investment management business, and who would serve on other boards in
       the Rydex|SGI family of funds, would be beneficial to the Funds and
       their shareholders. For regulatory and governance reasons (in order to
       maintain the balance on the Board among Directors who are non-interested
       and those who have affiliations with the Investment Manager so that at
       least 75% of Directors are non-interested), the term of Mr.
       Cacciapaglia, an "interested person" (as that term is defined for
       regulatory purposes) would not be effective (and

                                      - i -


       Mr. Cacciapaglia would not qualify to serve as a Director) until an
       additional non-interested Director is appointed by the Board (or the 75%
       balance is otherwise maintained). This search for an additional
       non-interested Director is still underway. A committee composed of
       non-interested Directors will select and nominate the additional
       non-interested Director. Shareholders will not be asked to vote on the
       initial election of this additional non-interested Director but the
       non-interested Directors will continue to constitute at least 75% of the
       Directors for as long as is required by applicable law.

       Proposal 3 only concerns insurance product owners of SBL Fund--Series N
       (Managed Asset Allocation Series) ("Series N"). Investors in other Funds
       are not asked to vote on the third proposal. The third proposal relates
       to a proposed change to the "fundamental investment policy" on
       diversification of investments for Series N to permit Series N to make
       changes to its investment program as discussed in more detail below.
       Currently, Series N's diversification policy is more prohibitive than
       necessary than applicable law requires.

Q.     WHY AM I BEING ASKED TO VOTE?

A.     The Investment Company Act of 1940 (the "1940 Act"), the law that
       regulates mutual funds, including the Funds, provides that a mutual
       fund's investment management agreement terminates whenever there is a
       "change in control" of the investment manager. The change in the
       corporate ownership structure of the Investment Manager contemplated by
       the Transaction would constitute a "change in control" (as this term is
       used for regulatory purposes) of the Investment Manager. Before an
       investment management agreement terminates, a new investment management
       agreement must be in effect in order for the investment manager to
       continue to manage the mutual fund's investments. For that reason, we
       are seeking shareholder approval of new investment management agreements
       for the Funds (the "New Investment Management Agreements").

       The Transaction will not result in material changes to the day-to-day
       management and operations of the Funds or any increase in fees. The
       personnel, officers and managers of the Investment Manager will remain
       the same. Upon completion of the Transaction, Guggenheim Capital will be
       the parent company of the Investment Manager.

       The Board considered the Transaction and voted in favor of the New
       Investment Management Agreements, pursuant to which, subject to their
       approval by each Fund's respective shareholders, the Investment Manager
       will continue to serve as investment manager to the Funds after the
       completion of the Transaction. The fees charged by the Investment
       Manager for its services to the Funds under the New Investment
       Management Agreements will be the same as its fees under the Current
       Investment Management Agreements. The other terms of the New Investment
       Management Agreements will also be the same in all material respects to
       those of the Current Investment Management Agreements.

                                     - ii -


       With respect to the second proposal, you are being asked to vote for the
       election of board members ("Directors") because the Board believes it
       would be appropriate, in light of the Transaction, to subject the
       current Directors to a shareholder vote and to ask shareholders to vote
       to add a new Director who is affiliated with Guggenheim Capital (if, as
       discussed above, an additional non-interested Director is appointed to
       the Board in the future). The Board believes that it is in shareholders'
       best interest, to the extent practicable, to have a Board that is
       composed of elected Directors.

       With respect to the third proposal, the 1940 Act requires Series N's
       shareholders to approve a change to Series N's "fundamental investment
       policies," including Series N's policy with respect to diversification
       of investments. Diversification relates in particular to the percentage
       of assets that may be invested in a single issuer's securities. Series N
       currently has in place a fundamental investment policy on
       diversification of investments that is more prohibitive than the 1940
       Act requires, which unnecessarily limits investment strategies, in
       particular, the ability of Series N to invest in the securities of other
       mutual funds to the extent permitted by law. Upon a request from
       management of Series N to make changes to Series N's investment program
       and invest a larger portion of the Fund's assets in other funds, the
       Board has reviewed Series N's fundamental investment policy on
       diversification of investments and has recommended a change intended to
       provide Series N with more flexibility to make investments in other
       funds. The proposal to amend Series N's fundamental investment policy
       on diversification of investments is unrelated to the Transaction and
       only concerns insurance product owners of Series N.

Q.     WILL THE PROPOSED TRANSACTION AFFECT ME?

A.     No. The operations of the Investment Manager, the fees payable to the
       Investment Manager and the persons responsible for the day-to-day
       investment management of the Funds will remain unchanged. The Board has
       been assured that there will be no reduction in the nature or quality of
       the investment management and sub-advisory services provided to each
       Fund, as applicable, due to the Transaction.

Q.     WILL THERE BE ANY CHANGES TO THE FUNDS' OTHER SERVICE PROVIDERS?

A.     The Transaction would also affect the control of the Funds' principal
       underwriter/distributor (co-principal underwriter/distributor with
       respect to SBL Fund), Rydex Distributors, LLC (the "Distributor"), and
       transfer agent, Rydex Fund Services, LLC (the "Transfer Agent"),
       affiliates of the Investment Manager because they are commonly held. The
       Board was assured that there will be no material change in the nature or
       quality of the services provided by the Distributor to each Fund, as
       applicable, and Transfer Agent, due to the Transaction. The Board has
       approved the continuation of services from the Distributor and Transfer
       Agent. Under the 1940 Act, shareholder approval is not required in order
       for the

                                     - iii -


       Distributor and Transfer Agent to continue providing services to the
       Funds after the closing of the Transaction. The Transaction will not
       affect the control of Security Distributors, Inc., the co-principal
       underwriter for the series of SBL Fund. In addition, the Investment
       Manager, which also serves as each Fund's administrator under separate
       agreements with the Funds, will continue to serve in that role without
       the need for shareholder approval.

Q.     WILL MY FUND'S FEES FOR INVESTMENT MANAGEMENT AND SUB-ADVISORY SERVICES
       INCREASE?

A.     No. The fee rates under the New Investment Management Agreement are
       identical to those under the Current Investment Management Agreement.
       Services also will remain substantially the same.

Q.     FOR INSURANCE PRODUCT OWNERS OF SERIES N ONLY. WHAT EFFECT WILL THE
       PROPOSED CHANGE TO SERIES N's FUNDAMENTAL INVESTMENT POLICY ON
       DIVERSIFICATION HAVE ON SERIES N?

A.     While this proposal is intended to provide Series N with greater
       flexibility to invest in other funds, Series N would continue to be
       managed subject to the diversification limitations imposed by the 1940
       Act, as interpreted or modified by regulatory authority having
       jurisdiction from time to time, as well as the investment objectives,
       strategies, and policies expressed in Series N's registration statement
       as may be changed by the Board from time to time.

       If the proposal is approved by shareholders, Series N would be permitted
       to invest a greater percentage of its total assets in the shares of
       other investment companies. As a shareholder of another investment
       company, Series N would bear, along with other shareholders, its pro
       rata portion of the other investment company's expenses, including
       advisory fees and would be exposed to the risks attributable to
       investing in the selected funds. These expenses would be in addition to
       the advisory and other expenses that Series N bears directly in
       connection with its own operations. Notwithstanding the proposed change,
       at all times, Series N will comply with the provisions of the 1940 Act
       that apply to investments in other investment companies.

       This third proposal is motivated by the decision to change Series N's
       investment objective and strategies in order to use a different asset
       allocation strategy that involves, among other things, investments in
       other mutual funds and exchange traded funds ("ETFs"), including
       affiliated funds. Series N's current diversification limitations
       restrict unnecessarily the Fund's ability to invest in other investment
       companies (e.g., mutual funds and ETFs) so the Investment Manager
       proposed, and the Board agreed, to change Series N's diversification
       limitations in order to permit additional investments in investment
       companies.

       Should Series N's shareholders not approve the proposal to amend Series
       N's fundamental investment policy on diversification of investments, the
       Fund's current fundamental investment policy on diversification of
       investments would

                                     - iv -


       continue to apply unchanged and the Board would decide whether to make
       changes to Series N's investment program.

Q.     I OWN SHARES OF OTHER FUNDS IN THE RYDEX|SGI FUND COMPLEX AND RECEIVED
       SIMILAR SOLICITATION MATERIALS REGARDING THOSE FUNDS. AM I ALSO BEING
       ASKED TO APPROVE THE PROPOSALS CONTAINED IN THIS PROXY STATEMENT?

A.     Yes. You are being asked to approve the proposals contained in this
       Proxy Statement, in addition to any other proposals contained in other
       proxy statements that you may receive for funds in the Rydex|SGI fund
       complex.

Q.     WHO IS ASKING FOR MY VOTE?

A.     The enclosed proxy is being solicited by the Board of your Fund for use
       at the Special Joint Meeting of Shareholders to be held on November 22,
       2011 (the "Meeting"), and, if the Meeting is adjourned or postponed, at
       any later meetings, for the purposes stated in the Notice of Special
       Joint Meeting.

Q.     HOW DOES THE BOARD SUGGEST THAT I VOTE?

A.     After careful consideration, the Board unanimously recommends that you
       vote "FOR" all of the proposals contained in the Joint Proxy Statement.
       Please see the section entitled "Board Recommendation" with respect to
       each proposal for a discussion of the Board's considerations in making
       such recommendations.

Q.     WHY AM I RECEIVING INFORMATION ABOUT FUNDS I DO NOT OWN?

A.     The proposals are similar for each Fund, and management of the Funds has
       concluded that it is cost-effective to hold the Meeting concurrently for
       all of the Funds. You will be asked to vote separately on the proposals
       with respect to the Fund(s) that you own. Assuming that the requisite
       levels of aggregate shareholder consent are attained, an unfavorable
       vote on a proposal by the shareholders of one Fund will not affect the
       implementation of a comparable proposal by another Fund if such proposal
       is approved by shareholders of that Fund.

Q.     WHAT VOTE IS REQUIRED TO APPROVE THE PROPOSALS?

A.     To be approved with respect to a particular Fund, the New Investment
       Management Agreement must be approved by a "vote of a majority of the
       outstanding voting securities" of that Fund. With respect to Series N,
       the proposed change to Series N's fundamental investment policy on
       diversification of investment also must be approved by a "vote of a
       majority of the outstanding voting securities" of Series N. In each
       case, the "vote of a majority of the outstanding voting securities" is
       defined in the 1940 Act as the lesser of the vote of (i) 67% or more of
       the voting securities of a Fund entitled to vote thereon present at the
       Meeting or represented by proxy, if more than 50% of the Fund's
       outstanding voting securities are present or represented by proxy; or
       (ii) more than 50% of the outstanding voting securities of the Fund
       entitled to vote thereon.

                                      - v -


       With respect to Proposal 2, each shareholder is entitled to vote that
       number of shares owned as of the record date multiplied by the number of
       Directors to be elected. A shareholder may cast all such votes for a
       single director or distribute them among two or more directors. This
       method of voting for the election of directors is commonly known as
       "cumulative voting." A plurality of the combined votes cast at the
       Meeting by the shareholders of a Company is sufficient to approve the
       election of a Director.

Q.     WILL MY VOTE MAKE A DIFFERENCE?

A.     Yes! Your vote is needed to ensure that the proposals can be acted upon.
       We encourage all shareholders to participate in the governance of their
       Fund(s). Additionally, your immediate response on the enclosed proxy
       card, on the Internet or over the phone will help save the costs of any
       further solicitations.

Q.     IF I AM A SMALL INVESTOR, WHY SHOULD I BOTHER TO VOTE?

A.     You should vote because every vote is important. If numerous
       shareholders just like you fail to vote, the Funds may not receive
       enough votes to go forward with the Meeting. If this happens, the Funds
       will need to solicit votes again. This may delay the Meeting and the
       approval of the New Investment Management Agreements and generate
       unnecessary costs.

Q.     I'M A SBL FUND INSURANCE PRODUCT OWNER. HOW WILL MY VOTE BE COUNTED?

A.     As a variable annuity contract or variable life insurance policy owner
       of record at the close of business on the record date, you have the
       right to instruct the life insurance company that issued your product as
       to how the shares of the SBL Fund(s) attributable to your product should
       be voted. If no voting instructions are received, the life insurance
       company will vote the shares attributable to your product in proportion
       ("for" or "withhold authority") to those SBL Fund shares for which
       instructions are received. As a result, a small number of product owners
       could determine the outcome of the vote if other product owners fail to
       vote.

Q.     HOW DO I PLACE MY VOTE?

A.     You may provide a Fund with your vote by mail with the enclosed proxy
       card, by Internet by following the instructions in the proxy voting
       instructions, by telephone using the toll-free number listed in the
       proxy voting instructions, or in person at the Meeting. You may use the
       enclosed postage-paid envelope to mail your proxy card. Please follow
       the enclosed instructions to utilize any of these voting methods. If you
       need more information on how to vote, or if you have any questions,
       please call the Funds' proxy solicitation agent at the telephone number
       below.

Q.     WHOM DO I CALL IF I HAVE QUESTIONS?

A.     We will be happy to answer your questions about this proxy solicitation.
       If you have questions, please call The Altman Group at 1-877-864-5058.

                                     - vi -


       Proxies may be revoked prior to the Meeting by timely executing and
       submitting a revised proxy (following the methods noted above), by
       giving written notice of revocation to the Fund(s) prior to the Meeting,
       or by voting in person at the Meeting.

PROMPT EXECUTION AND RETURN OF THE ENCLOSED PROXY CARD IS REQUESTED. A
SELF-ADDRESSED, POSTAGE-PAID ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE, ALONG
WITH INSTRUCTIONS ON HOW TO VOTE OVER THE INTERNET OR BY TELEPHONE SHOULD YOU
PREFER TO VOTE BY ONE OF THOSE METHODS.

                                     - vii -


                              SECURITY EQUITY FUND
                          SECURITY LARGE CAP VALUE FUND
                          SECURITY MID CAP GROWTH FUND
                              SECURITY INCOME FUND
                                    SBL FUND

                           One Security Benefit Place
                            Topeka, Kansas 66636-0001
                                 (800) 820-0888

                 NOTICE OF SPECIAL JOINT MEETING OF SHAREHOLDERS

                         TO BE HELD ON NOVEMBER 22, 2011

       Notice is hereby given that a Special Joint Meeting of Shareholders (the
"Meeting") of each of Security Equity Fund, Security Large Cap Value Fund,
Security Mid Cap Growth Fund, Security Income Fund and SBL Fund (each, a
"Company" and collectively, the "Companies") and each of their respective series
listed on the attached list (each, a "Fund" and collectively, the "Funds") will
be held at the Companies' offices at One Security Benefit Place, Topeka, Kansas
66636-0001 on November 22, 2011 at 1:00 p.m. Central Time for the purposes
listed below:



               PROPOSAL                                 SHAREHOLDERS SOLICITED TO VOTE
                                                
1.   THE APPROVAL OF A NEW INVESTMENT                             ALL FUNDS
     MANAGEMENT AGREEMENT BETWEEN EACH
     COMPANY AND SECURITY INVESTORS, LLC,
     WITH RESPECT TO EACH FUND

2.   THE APPROVAL OF THE ELECTION OF NOMINEES                     ALL FUNDS
     TO THE BOARD OF DIRECTORS

3.   THE APPROVAL OF A CHANGE TO THE                          SBL FUND--SERIES N
     FUNDAMENTAL INVESTMENT POLICY ON                 (MANAGED ASSET ALLOCATION SERIES)
     DIVERSIFICATION OF INVESTMENTS

4.   TO TRANSACT SUCH OTHER BUSINESS AS MAY
     PROPERLY COME BEFORE THE MEETING


       After careful consideration, the Board of Directors of each Company
unanimously recommends that shareholders vote "FOR" Proposals 1 and 3 and
unanimously recommends that shareholders vote "FOR" the election of all
nominees.

       Shareholders (or, with respect to SBL Fund, variable annuity contract or
variable life insurance policy ("insurance products") owners) of record at the
close of business on October 3, 2011 are entitled to notice of, and to vote at,
the Meeting, even if you no longer own an insurance product or Fund shares. With
respect to SBL Fund, you are invested in the Fund through the insurance products
that you own.

       We call your attention to the accompanying Joint Proxy Statement. You are
requested to complete, date, and sign the enclosed proxy card and return it
promptly in

                                    - viii -


the envelope provided for that purpose. Your proxy card also provides
instructions for voting via telephone or the Internet if you wish to take
advantage of these voting options. Proxies may be revoked prior to the Meeting
by timely executing and submitting a revised proxy (following the methods noted
above), by giving written notice of revocation to the Fund(s) prior to the
Meeting, or by voting in person at the Meeting.

                                             By Order of the Boards,

                                             /s/ Amy J. Lee
                                             Amy J. Lee
                                             Secretary

YOUR VOTE IS VERY IMPORTANT TO US REGARDLESS OF THE NUMBER OF VOTES YOU HOLD.
SHAREHOLDERS WHO DO NOT EXPECT TO ATTEND THE MEETING ARE REQUESTED TO COMPLETE,
SIGN, DATE AND RETURN THE ACCOMPANYING PROXY CARD IN THE ENCLOSED ENVELOPE,
WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES. IT IS IMPORTANT THAT YOUR
PROXY CARD BE RETURNED PROMPTLY.

FOR YOUR CONVENIENCE, YOU MAY ALSO VOTE BY TELEPHONE OR INTERNET BY FOLLOWING
THE ENCLOSED INSTRUCTIONS. IF YOU VOTE BY TELEPHONE OR VIA THE INTERNET, PLEASE
DO NOT RETURN YOUR PROXY CARD UNLESS YOU ELECT TO CHANGE YOUR VOTE.

                                     - ix -


                       FUNDS PARTICIPATING IN THE MEETING

                              ON NOVEMBER 22, 2011



                                                   SECURITY EQUITY FUND
                                                                               
    Rydex|SGI All Cap Value Fund                   Rydex|SGI Large Cap                Rydex|SGI Mid Cap Value Fund
  Rydex|SGI Alpha Opportunity Fund               Concentrated Growth Fund               Rydex|SGI Mid Cap Value
Rydex|SGI MSCI EAFE Equal Weight Fund         Rydex|SGI Large Cap Core Fund                Institutional Fund
   (formerly Rydex|SGI Global Fund)           Rydex|SGI Small Cap Value Fund         Rydex|SGI Small Cap Growth Fund


                                               SECURITY LARGE CAP VALUE FUND
                                                           
                        Rydex|SGI Large Cap Value Fund        Rydex|SGI Large Cap Value Institutional Fund


                                               SECURITY MID CAP GROWTH FUND
                                               
                                               Rydex|SGI Mid Cap Growth Fund


                                                   SECURITY INCOME FUND
                                                           
                        Rydex|SGI High Yield Fund             Rydex|SGI U.S. Intermediate Bond Fund


                                                         SBL FUND
                                                                                      
     Series A (Large Cap Core Series)             Series J (Mid Cap Growth Series)            Series Q (Small Cap Value Series)
    Series B (Large Cap Value Series)        Series N (Managed Asset Allocation Series)        Series V (Mid Cap Value Series)
     Series C (Money Market Series)               Series O (All Cap Value Series)            Series X (Small Cap Growth Series)
       Series D (MSCI EAFE Equal                   Series P (High Yield Series)                     Series Y (Large Cap
   Weight Series) (formerly Series D                                                            Concentrated Growth Series)
            (Global Series))                                                                Series Z (Alpha Opportunity Series)
Series E (U.S. Intermediate Bond Series)



                                      - x -


                                     TABLE OF CONTENTS

                                                                                     
OVERVIEW OF THE PROPOSALS ............................................................   3

    PROPOSAL 1: Approval of the New Investment Management Agreements .................   3

         Information Regarding the Transaction .......................................   3

         Section 15(f) of the 1940 Act ...............................................   5

         Approval of the New Investment Management Agreements by the Board ...........   5

         Board Considerations in Approving the New Investment Management Agreements ..   6

         New Investment Management Agreements ........................................   7

    PROPOSAL 2: Approval of the Election of Directors ................................   8

    PROPOSAL 3: Series N only--Approval of a Change to Series N's Fundamental
         Investment Policy on Diversification of Investments .........................   9

PROPOSAL 1 - THE APPROVAL OF NEW INVESTMENT MANAGEMENT AGREEMENTS WITH
    RESPECT TO ALL FUNDS .............................................................  11

    The Investment Manager ...........................................................  11

    Material Terms of the New Investment Management Agreements........................  12

    Note Regarding Funds with Sub-advisory Agreements ................................  13

BOARD RECOMMENDATION ON PROPOSAL 1 ...................................................  13

PROPOSAL 2--THE APPROVAL OF THE ELECTION OF DIRECTORS FOR THE COMPANIES ..............  14

    Information Regarding the Nominees ...............................................  15

    Board's Consideration of Each Nominee's Qualifications, Experience, Attributes
         or Skills ...................................................................  19

    Principal Officers of the Funds ..................................................  21

    Nominee Ownership of Portfolio Shares ............................................  24

    Board Compensation ...............................................................  26

    Committees and Meetings of the Board .............................................  29

    Independent Registered Public Accounting Firm ....................................  30

BOARD RECOMMENDATION ON PROPOSAL 2 ...................................................  32

PROPOSAL 3 - THE APPROVAL OF A CHANGE TO THE FUNDAMENTAL INVESTMENT POLICY ON
    DIVERSIFICATION OF INVESTMENTS WITH RESPECT TO SERIES N ..........................  33

    Proposed New Fundamental Investment Policy .......................................  33

    Current Fundamental Investment Policy ............................................  33

    Discussion of Proposed Modification ..............................................  34

    Note Regarding Related Change to Investment Program ..............................  35



                                     - xi -


                                                                                     
BOARD RECOMMENDATION ON PROPOSAL 3 ...................................................  36

OTHER BUSINESS .......................................................................  36

ADDITIONAL INFORMATION ...............................................................  36

    Administrator, Principal Underwriter, Custodian and Transfer Agent ...............  36

    Sub-Advisers for Certain Funds ...................................................  37

    Affiliations and Affiliated Brokerage ............................................  37

    Other Information ................................................................  37

    Voting Information ...............................................................  38

    Shareholder Proposals ............................................................  40



                                     - xii -


                                   APPENDICES

                                                                                               
Appendix A       CORPORATE STRUCTURE OF THE INVESTMENT MANAGER ...................................   A-1

Appendix B       FORMS OF NEW INVESTMENT MANAGEMENT AGREEMENTS ...................................   B-1

Appendix C       INFORMATION REGARDING THE INVESTMENT MANAGEMENT AGREEMENTS AND FEES
                 PAID TO THE INVESTMENT MANAGER AND DISTRIBUTOR...................................   C-1

Appendix D       DIRECTORS/MANAGERS AND OFFICERS OF THE INVESTMENT ADVISER .......................   D-1

Appendix E       ADVISORY FEE RATES OF FUNDS WITH SIMILAR INVESTMENT OBJECTIVES ADVISED
                 BY SECURITY INVESTORS, LLC.......................................................   E-1

Appendix F       OUTSTANDING SHARES ..............................................................   F-1

Appendix G       BENEFICIAL OWNERS OF MORE THAN 5% OF A CLASS OF EACH FUND .......................   G-1

Appendix H       MANAGEMENT OWNERSHIP ............................................................   H-1

Appendix I       NOMINATING COMMITTEE CHARTER.....................................................   I-1



                                    - xiii -


                              SECURITY EQUITY FUND
                          SECURITY LARGE CAP VALUE FUND
                          SECURITY MID CAP GROWTH FUND
                              SECURITY INCOME FUND
                                    SBL FUND

                           One Security Benefit Place
                            Topeka, Kansas 66636-0001
                                 (800) 820-0888

                 JOINT PROXY STATEMENT SPECIAL JOINT MEETING OF
                  SHAREHOLDERS TO BE HELD ON NOVEMBER 22, 2011

       This joint proxy statement ("Joint Proxy Statement") and enclosed notice
and proxy card are being furnished in connection with the solicitation of
proxies by the Boards of Directors (collectively, the "Board") of each of
Security Equity Fund, Security Large Cap Value Fund, Security Mid Cap Growth
Fund, Security Income Fund and SBL Fund (each, a "Company" and collectively, the
"Companies"). The proxies are being solicited for use at a special joint meeting
of shareholders of each Company to be held at the Companies' offices at One
Security Benefit Place, Topeka, Kansas 66636-0001 on November 22, 2011 at 1:00
p.m. Central Time, and at any and all adjournments or postponements thereof (the
"Meeting").

       The Board has called the Meeting and is soliciting proxies from
shareholders of each series of the Companies listed in the accompanying notice
to this Joint Proxy Statement (each, a "Fund" and collectively, the "Funds")
with respect to the following proposals (the "Proposals") as follows:



PROPOSAL                                                    SHAREHOLDERS SOLICITED TO VOTE
                                                 
1.       THE APPROVAL OF A NEW INVESTMENT                           ALL FUNDS
         MANAGEMENT AGREEMENT BETWEEN EACH
         COMPANY AND SECURITY INVESTORS, LLC,
         WITH RESPECT TO EACH FUND ("PROPOSAL
         1")

2.       THE APPROVAL OF THE ELECTION OF NOMINEES                   ALL FUNDS
         TO THE BOARD OF DIRECTORS ("PROPOSAL 2")

3.       THE APPROVAL OF A CHANGE TO THE                       SBL FUND--SERIES N
         FUNDAMENTAL INVESTMENT POLICY ON              (MANAGED ASSET ALLOCATION SERIES)
         DIVERSIFICATION OF INVESTMENTS
         ("PROPOSAL 3")

4.       TO TRANSACT SUCH OTHER BUSINESS AS MAY
         PROPERLY COME BEFORE THE MEETING


       This Joint Proxy Statement and the accompanying notice and the proxy card
are being first mailed to shareholders on or about October 17, 2011.

                                      - 1 -


       The Board has determined that the use of this Joint Proxy Statement for
the Meeting is in the best interests of each Fund and its shareholders in light
of the similar matters being considered and voted on by the shareholders of the
other Funds.

       You are entitled to vote at the Meeting of each Fund of which you are a
shareholder as of the close of business on October 3, 2011 (the "Record Date").
Shares of each series of SBL Fund are not offered directly to the public but are
sold only to insurance companies and their separate accounts as the underlying
investment medium for owners of variable annuity contracts and variable life
insurance policies ("insurance products"). As such, for SBL Fund, Security
Benefit Life Insurance Company, First Security Benefit Life Insurance and
Annuity Company of New York, Nationwide Life Insurance Company and Jefferson
National Life Insurance Company (each, an "Insurance Company" and collectively,
the "Insurance Companies") are the only Fund shareholders of record. SBL Fund is
soliciting voting instructions from insurance product owners invested in each
Fund in connection with the Proposals, as applicable. As such and for ease of
reference, throughout this Joint Proxy Statement, insurance product owners may
be referred to as "shareholders" of a Fund.

       If you have any questions about the Proposals or about voting, please
call The Altman Group, the Funds' proxy solicitor, at 1-877-864-5058.

         IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS
                 FOR THE MEETING TO BE HELD ON NOVEMBER 22, 2011

       This Joint Proxy Statement is available at www.proxyonline.us/docs/
rydexsgi. In addition, with respect to Security Income Fund and SBL Fund,
shareholders can find important information about each Fund in the Fund's annual
report, dated December 31, 2010, including financial reports for the fiscal year
ended December 31, 2010, and in any recent semi-annual report succeeding such
annual report, if any. With respect to Security Equity Fund, Security Large Cap
Value Fund or Security Mid Cap Growth Fund, shareholders can find important
information about each Fund in the Fund's annual report, dated September 30,
2010, including financial reports for the fiscal year ended September 30, 2010,
and in any recent semi-annual report succeeding such annual report, if any. You
may obtain copies of these reports without charge by writing to a Company, by
calling the telephone number shown on the front page of this Joint Proxy
Statement or at www.rydex-sgi.com.

                                      - 2 -


                            OVERVIEW OF THE PROPOSALS

                                   PROPOSAL 1

              APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS

       Proposal 1 relates to actions that need to be taken in response to an
impending transaction (the "Transaction") involving Securities Investors, LLC,
the investment manager to each of the Funds (the "Investment Manager").

       The Investment Company Act of 1940 (the "1940 Act"), the law that
regulates mutual funds, such as the Funds, provides that a mutual fund's
investment advisory agreement terminates whenever there is a "change in control"
of the investment adviser. (In this context, the term "investment adviser"
applies to both an investment manager and a sub-adviser.) Pursuant to the
Transaction there will be a "change in control" of the Investment Manager. In
order for the Investment Manager to continue to advise the Funds and manage
their investments, a new investment advisory agreement must be in effect upon
the consummation of the Transaction. For that reason, we are seeking shareholder
approval of new investment advisory agreements (the "New Investment Management
Agreements") for the Funds.

              FOR THE REASONS DISCUSSED BELOW, THE BOARD RECOMMENDS
              THAT SHAREHOLDERS VOTE "FOR" THE APPROVAL OF THE NEW
                        INVESTMENT MANAGEMENT AGREEMENTS.

                      INFORMATION REGARDING THE TRANSACTION

       Summary Discussion--Currently, the Investment Manager is a part of a
large group of companies that also includes businesses such as Security Benefit
Life Insurance Company. The Investment Manager is managed by an indirect
wholly-owned subsidiary of Guggenheim Capital, LLC ("Guggenheim Capital").
Guggenheim Capital wishes to purchase the Investment Manager and certain
affiliated businesses. This Transaction will be effected by Guggenheim Capital
buying 100% of the equity of the holding company that owns the Investment
Manager. After the Transaction, Guggenheim Capital will control the Investment
Manager (through one or more of its subsidiaries), and it is expected that the
services rendered to the Funds by the Investment Manager will not change.

       Detailed Discussion--On September 20, 2011, Guggenheim Capital agreed to
purchase Security Benefit Asset Management Holdings, LLC, the indirect holding
company of the Investment Manager. Guggenheim Capital's subsidiary, Guggenheim
Partners, LLC ("Guggenheim") is a global, independent, privately-held,
diversified financial services firm with more than 1,500 dedicated
professionals. Headquartered in Chicago and New York, the firm operates through
offices in 25 cities in the U.S., Europe and Asia. Guggenheim operates
businesses in investment management, capital markets, wealth management and
merchant banking. Within the investment and wealth management businesses,
Guggenheim specializes in fixed income and alternative

                                      - 3 -


investments, and in providing sophisticated wealth advisory and family office
services. Within capital markets, it specializes in providing debt financing and
structured finance solutions to clients. Its merchant banking activities include
a portfolio of investments in funds managed by it, joint venture business
investments and new business launch activities not integrated into other primary
operating businesses. Detailed information on the effect of the Transaction on
the ownership structure of the Investment Manager is set forth in Appendix A to
this Joint Proxy Statement.

       The Transaction will not result in material changes to the day-to-day
management and operations of the Funds. The personnel, officers and managers of
the Investment Adviser will remain the same. Guggenheim Capital will be the
parent company of the Investment Adviser.

       In addition, as a result of the Transaction, Guggenheim Capital will
acquire control of the Funds' principal underwriter/distributor, Rydex
Distributors, LLC (the "Distributor") and transfer agent, Rydex Funds Services,
LLC (the "Transfer Agent"), affiliates of the Investment Manager. The Board has
approved the continuation of services from the Distributor and Transfer Agent.
Under the 1940 Act, shareholder approval is not required in order for the
Distributor and Transfer Agent to continue providing services to the Funds after
the closing of the Transaction. The Board has also approved the continuation of
the agreements related to the implementation of the distribution plans adopted
by the Board on behalf of such Funds pursuant to Rule 12b-1 under the 1940 Act.
In addition, the Investment Manager, which also serves as each Fund's
administrator under separate agreements with the Funds, will continue to serve
in that role without the need for shareholder approval. Security Distributors,
Inc., the co-principal underwriter for the series of SBL Fund, will continue to
be held by SBC following the Transaction and thus will not be deemed to have
gone through a "change in control."

       While the parties expect the Transaction to be completed in late 2011 or
early 2012, it is subject to various conditions (including a condition that 80%
or more of the Funds' assets managed by the Investment Manager approve the New
Investment Management Agreements), and may be delayed or even terminated due to
unforeseen circumstances. If for some reason the Transaction does not occur, the
current investment management agreements between the Investment Manager and the
Funds (the "Current Investment Management Agreements") will not terminate and
will remain in effect, and the New Investment Management Agreements will not be
entered into, even if they have been approved by Fund shareholders. If Proposal
1 is not approved by shareholders of any Fund, the Board will evaluate other
short- and long-term options permitted by law, which could include interim
investment management agreements of limited durations with the Investment
Manager, or maintaining the current ownership structure pending further
discussions.

                                      - 4 -


                          SECTION 15(f) OF THE 1940 ACT

       Section 15(f) of the 1940 Act provides that, when a change in control of
an investment adviser occurs, the investment adviser or any of its affiliated
persons may receive any amount or benefit in connection with the change in
control as long as two conditions are met. The first condition specifies that no
"unfair burden" may be imposed on the fund as a result of a transaction relating
to the change in control, including any express or implied terms, conditions or
understandings. The term "unfair burden," as defined in the 1940 Act, includes
any arrangement during the two-year period after the change in control
transaction whereby the investment adviser (or predecessor or successor
adviser), or any "interested person" (as defined in the 1940 Act) of any such
investment adviser, receives or is entitled to receive any compensation,
directly or indirectly, from the investment company or its security holders
(other than fees for bona fide investment advisory or other services), or from
any person in connection with the purchase or sale of securities or other
property to, from, or on behalf of the fund (other than fees for bona fide
principal underwriting services), which could limit the ability of the fund to
engage in brokerage transactions with certain broker-dealers, although such
limits are not expected to cause any fund to change its brokerage relationships.
The second condition specifies that, during the three-year period immediately
following consummation of the change in control transaction, at least 75% of the
fund's board of directors must not be "interested persons" (as defined in the
1940 Act) of the investment adviser or predecessor adviser.

       Consistent with the conditions of Section 15(f), Guggenheim Capital has
agreed that it will not take any action that would have the effect, directly or
indirectly, of causing any requirement of the provisions of Section 15(f) to be
violated with respect to the Transaction. The Investment Manager has represented
to the Board that no unfair burden would be imposed on the Funds as a result of
the Transaction.

        APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS BY THE BOARD

       At a Special Meeting of the Board held on August 16, 2011 (the "Special
Board Meeting"), at which a majority of the members of the Board (the
"Directors"), including a majority of the Directors who are not "interested
persons" (as defined under the 1940 Act) of the Companies and who are
non-interested persons of any party to the New Investment Management Agreements
(the "Independent Directors"), were present, the Directors considered and voted
in favor of the New Investment Management Agreements, pursuant to which, subject
to their approval by each Fund's shareholders, as applicable, the Investment
Manager and sub-adviser will continue to serve as investment manager and
sub-adviser to each Fund, as applicable, after the completion of the
Transaction. The Investment Manager's rate of fees for its services to each Fund
under each applicable New Investment Management Agreement, as applicable, will
be the same as its fees under the corresponding Current Investment Management
Agreement. The other terms of each New Investment Management Agreement will also
be the same in all material respects to those of the corresponding Current
Investment Management Agreement.

                                      - 5 -


   BOARD CONSIDERATIONS IN APPROVING THE NEW INVESTMENT MANAGEMENT AGREEMENTS

       Prior to the Special Board Meeting, representatives of Guggenheim Capital
informed the Board of the Transaction. With respect to the Transaction, the
Board reviewed materials received from Guggenheim Capital, including information
relating to the terms of the Transaction. The Board also reviewed information
regarding Guggenheim Capital, including, but not limited to: (a) certain
representations concerning Guggenheim Capital's financial condition, (b)
information regarding the new proposed ownership structure and its possible
effect on shareholders, (c) information regarding the consideration to be paid
by Guggenheim Capital, and (d) potential conflicts of interest.

       In considering the New Investment Management Agreements, the Directors
determined that the New Investment Management Agreements would enable
shareholders of the Funds to continue to obtain high quality services at a cost
that is appropriate, reasonable, and in the best interests of their
shareholders. The Directors, including the Independent Directors, unanimously
approved the New Investment Management Agreements. In reaching their decision,
the Directors carefully considered information that they had received throughout
the year as part of their regular oversight of the Funds, including, in
particular, information from the Investment Manager that the Board had received
relating to the Current Investment Management Agreements at the Board's contract
review meeting on August 15, 2011 (the "2011 Renewal Meeting"). The Directors
noted that, at the 2011 Renewal Meeting, they had obtained and reviewed a wide
variety of information, including certain comparative information regarding
performance of the Funds relative to performance of other comparable mutual
funds. They also considered the evolution of the Rydex|SGI family of funds and
the Investment Manager since the change in control of the Investment Manager in
2010 and Guggenheim Capital's commitment to the success of the Investment
Manager and the Funds.

       In addition, as a part of their required consideration of the renewal of
the Current Investment Management Agreements at the 2011 Renewal Meeting, the
Directors, including the Independent Directors, had evaluated a number of
considerations, including among others: (a) the quality of the Investment
Manager's investment advisory and other services; (b) the Investment Manager's
investment management personnel; (c) the Investment Manager's operations and
financial condition; (d) the Investment Manager's brokerage practices (including
any soft dollar arrangements) and investment strategies; (e) the level of the
fees that the Investment Manager charges compared with the fees charged to
comparable mutual funds or accounts; (f) each Fund's overall fees and operating
expenses compared with similar mutual funds; (g) the level of the Investment
Manager's profitability from its Fund-related operations; (h) revenue sharing
arrangements entered into by the Investment Manager (whereby certain of its
profits are shared with other parties in exchange for certain services); (i) the
Investment Manager's compliance systems; (j) the Investment Manager's policies
on and compliance procedures for personal securities transactions;

                                      - 6 -


(k) the Investment Manager's reputation, expertise and resources in the
financial markets; and (l) Fund performance compared with similar mutual funds.
Based on the Board's deliberations at the 2011 Renewal Meeting, and its
evaluation of the information regarding the Transaction and the fact that the
Transaction is not expected to change the level and quality of services rendered
by the Investment Manager to any of the Funds, the Board, including all of the
Independent Directors, unanimously: (a) concluded that terms of the New
Investment Management Agreements are fair and reasonable; (b) concluded that the
Investment Manager's fees were reasonable in light of the services that it
provides to the Funds; and (c) agreed to approve the New Investment Management
Agreements, subject to shareholder approval.

                         NEW INVESTMENT MANAGEMENT AGREEMENTS

       NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY THE INVESTMENT
MANAGER. At the 2011 Renewal Meeting, the Board reviewed the scope of services
to be provided by the Investment Manager under the Current Investment Management
Agreements, and, at the Special Board Meeting, noted that there would be no
significant differences between the scope of services required to be provided by
the Investment Manager under the Current Investment Management Agreements (which
had been recently approved by shareholders and renewed by the Board at the 2011
Renewal Meeting) and the scope of services required to be provided by the
Investment Manager under the New Investment Management Agreements. The Board
noted that the key investment and management personnel of the Investment Manager
servicing the Funds are expected to remain with the Investment Manager following
the Transaction. The Directors also considered Guggenheim Capital's
representations to the Board that the Investment Manager would continue to
provide investment and related services that were materially the same quality
and quantity as services provided to the Funds in the past, and that these
services are appropriate in scope and extent in light of the Funds' operations,
the competitive landscape of the investment company business and investor needs.

       THE INVESTMENT PERFORMANCE OF THE FUNDS. At the 2011 Renewal Meeting, the
Board had reviewed statistical information prepared by the Investment Manager
regarding the expense ratio components and performance of each Fund. Based on
the representations made by Guggenheim Capital at the Special Board Meeting that
the Investment Manager would continue to operate following the closing of the
Transaction in much the same manner as it currently operates, the Board
concluded that the investment performance of the Investment Manager was not
expected to be affected by the Transaction.

       THE COST OF INVESTMENT MANAGEMENT AND SUB-ADVISORY SERVICES PROVIDED AND
THE LEVEL OF PROFITABILITY. At the 2011 Renewal Meeting, the Board had reviewed
information about the profitability of the Funds to the Investment Manager based
on the advisory fees payable under the Current Investment Management Agreements.
At that meeting, the Board had also analyzed the Funds' expenses, including the
investment advisory fees paid to the Investment Manager. At the Special Board

                                      - 7 -


Meeting, the Board considered the fact that the fee rates payable to the
Investment Manager would be the same under each Fund's New Investment Management
Agreement as they are under such Fund's Current Investment Management Agreement.
With respect to anticipated profitability, the Board noted that it was too early
to predict how the Transaction would affect the Investment Manager's
profitability with respect to the Funds, but noted that this matter would be
given further consideration on an ongoing basis.

       WHETHER THE INVESTMENT MANAGEMENT FEES REFLECT ECONOMIES OF SCALE. In
connection with its review of the Funds' profitability analysis at the 2011
Renewal Meeting, the Board reviewed information regarding economies of scale or
other efficiencies that may result from increases in the Funds' asset levels.
The Directors noted that the fees would not change under the New Investment
Management Agreements, and that no additional economies of scale would be
directly realized as a result of the Transaction. They also noted that they will
have the opportunity to again review the appropriateness of the fee payable to
the Investment Manager under the Agreements when the next renewal of the
Agreements comes before the Board.

       BENEFITS (SUCH AS SOFT DOLLARS) TO THE INVESTMENT MANAGER FROM ITS
RELATIONSHIP WITH THE FUNDS. In addition to evaluating the services provided by
the Investment Manager, the Board had considered the nature, extent, quality and
cost of the distribution services performed by the Distributor under a separate
agreement at the 2011 Renewal Meeting. The Board also considered the terms of
the Transaction and the changes to the corporate ownership structure of the
Investment Manager, noting that the Investment Manager would no longer be a
subsidiary of SBC. In this regard, the Board noted that, under the corporate
structure after the Transaction, the Investment Manager would be more closely
controlled by Guggenheim Capital, which could benefit Guggenheim Capital. The
Board also noted that the costs associated with the Transaction would be borne
by Guggenheim Capital (or its affiliates) and not the Funds.

                                   PROPOSAL 2

                      APPROVAL OF THE ELECTION OF DIRECTORS

       Proposal 2 relates to the election of the following seven individuals to
the Board: Donald C. Cacciapaglia, Donald A. Chubb, Jr., Harry W. Craig, Jr.,
Jerry B. Farley, Richard M. Goldman, Penny A. Lumpkin and Maynard F. Oliverius.
All of the nominees, except for Mr. Cacciapaglia, currently serve on the Board.
If elected, the terms of the nominees, other than Mr. Cacciapaglia, will begin
shortly after the shareholder vote. Until that time, the current Directors will
continue their terms.

       The Board believes that it is in the best interests of the Funds to
expand the size of the Board, given the anticipated Transaction, the creation of
new funds within the complex and the need to prepare for future retirements from
the Board. In connection with the Transaction, the Board believes that adding
Mr. Cacciapaglia, who is a member of the senior management of Guggenheim's
investment management business, and who

                                      - 8 -


would serve on other boards in the Rydex|SGI family of funds, would be
beneficial to the Funds and their shareholders. For regulatory and governance
reasons (in order to maintain the balance on the Board among Directors who are
non-interested and those who have affiliations with the Investment Manager so
that at least 75% of Directors are non-interested), the term of Mr.
Cacciapaglia, an "interested person" (as that term is defined for regulatory
purposes) would not be effective (and Mr. Cacciapaglia would not qualify to
serve as a Director) until an additional non-interested Director is appointed
(or the balance is otherwise maintained and Mr. Cacciapaglia then qualifies to
serve as a Director). This search for an additional non-interested Director is
still underway. A committee composed of non-interested Directors will select and
nominate the additional non-interested Director. The shareholders will not be
asked to vote on the initial election of the additional non-interested Director
but the non-interested Directors will continue to constitute at least 75% of the
Directors for as long as required by applicable law.

       The Board further believes that it is in shareholders' best interest to
have a Board that is, to the extent possible, composed of elected Directors (and
to comply with certain legal requirements regarding the proportion of board
members that need to have been elected by shareholders). Because a shareholder
vote is required to approve the New Investment Management Agreements, the Board
has proposed that shareholders elect all of the nominees during the same
shareholder meeting, which would avoid the expense of preparing and mailing
another proxy statement solely for the election of Directors.

                                   PROPOSAL 3

 SERIES N ONLY--APPROVAL OF A CHANGE TO SERIES N's FUNDAMENTAL INVESTMENT POLICY
                        ON DIVERSIFICATION OF INVESTMENTS

       In addition to considering the New Investment Management Agreements in
Proposal 1, shareholders of SBL Fund--Series N (Managed Allocation Series)
("Series N") also are being asked to consider the approval of a change to Series
N's current fundamental investment policy on diversification of investments. The
1940 Act requires that a fund adopt a fundamental investment policy on
diversification of investments. Diversification relates to the percentage of
assets that may be invested in a single issuer's securities and the percentage
of voting securities of such issuer that may be owned. Under the 1940 Act, any
deviation from a fundamental investment policy must be approved by shareholders
of the fund. Series N's current fundamental investment policy on diversification
of investments is more prohibitive than the 1940 Act requires, unnecessarily
limiting investment strategies, notably with regard to investments in other
funds. This third proposal is motivated by the decision to change Series N's
investment objective and strategies in order to use a different asset allocation
strategy that involves, among other things, investments in other mutual funds
and exchange traded funds ("ETFs"), including affiliated funds. Series N's
current diversification limitations restrict unnecessarily the Fund's ability to
invest in other investment companies (e.g., mutual funds and ETFs) so the
Investment Manager proposed, and the Board agreed, to change Series N's
diversification limitations in order to permit additional investments in
investment companies. Accordingly, Proposal 3 seeks approval of a change to
Series N's fundamental

                                      - 9 -


investment policy on diversification of investments in order to permit Series N
to invest in a diversified manner to the maximum extent permitted by law.
Proposal 3 is unrelated to Proposal 1.

                 THE BOARD, INCLUDING THE INDEPENDENT DIRECTORS,
               UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE "FOR"
         THE APPROVAL OF THE NEW AGREEMENTS, "FOR" THE ELECTION OF EACH
           NOMINEE AND "FOR" THE CHANGE TO THE FUNDAMENTAL INVESTMENT
        POLICY ON DIVERSIFICATION OF INVESTMENTS FOR SERIES N. UNMARKED,
               PROPERLY SIGNED AND DATED PROXIES WILL BE SO VOTED.

                                     - 10 -


                                   PROPOSAL 1

                    THE APPROVAL OF NEW INVESTMENT MANAGEMENT
                      AGREEMENTS WITH RESPECT TO ALL FUNDS

       As discussed above, Proposal 1 relates to the approval by shareholders of
the New Investment Management Agreements between the Investment Manager and each
of the Funds. Each Company, on behalf of its underlying Funds, has executed a
Current Investment Management Agreement with the Investment Manager in
connection with management services to such Funds, which were recently approved
by shareholders. Therefore, this Joint Proxy Statement solicits proxies with
respect to five separate investment management agreements (i.e., one investment
management agreement for each Company). You are being asked to vote separately
on Proposal 1 solely with respect to the Fund(s) that you own. Forms of the New
Investment Management Agreements are attached in Appendix B.

       The terms of each New Investment Management Agreement are substantially
identical to those of the corresponding Current Investment Management Agreement,
which were recently approved by shareholders, except with respect to the date of
execution. Consequently, upon shareholder approval, the Investment Manager will
continue to render substantially the same services to the Funds under the New
Investment Management Agreements that it currently renders to the Funds under
the Current Investment Management Agreements.

       The Current Investment Management Agreements will remain in place until
the completion of the Transaction, at which time, as a result of the change in
the control of the Investment Manager, the Current Investment Management
Agreements will terminate. If for any reason the Transaction does not occur, the
Current Investment Management Agreements will not terminate and will remain in
effect, and the New Investment Management Agreements will not be entered into,
even if they have been approved by Fund shareholders.

                             THE INVESTMENT MANAGER

       Security Investors, LLC, located at One Security Benefit Place, Topeka,
Kansas 66636- 0001, currently serves as investment manager to the Funds pursuant
to the Current Investment Management Agreements. Information regarding the
Current Investment Management Agreements, including (a) the date of the
agreements, (b) the date on which they were last approved by shareholders and
(c) the rate of compensation to the Investment Manager, is provided in Appendix
C. If the New Investment Management Agreements are approved by shareholders,
they will continue for an initial term of two years and for subsequent one-year
terms so long as they are renewed annually in accordance with their terms (see
discussion under "Term and Continuance" below).

       Information regarding the name(s), address(es) and principal
occupation(s) of the principal executive officer(s) and managing member(s) of
the Investment Manager is set forth in Appendix D. A list of the Directors and
officers of each

                                     - 11 -


Company who hold positions with the Investment Manager also is set forth in
Appendix D. In addition, set forth in Appendix E is a list of other registered
investment companies with similar investment objectives as each Fund, for which
the Investment Manager acts as investment manager, adviser or sub-adviser.  (As
previously noted, the ownership structure of the Investment Manager is set forth
in Appendix A.)

           MATERIAL TERMS OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS

       The following summary of the New Investment Management Agreements
summarizes the material terms of the New Investment Management Agreements and is
qualified in its entirety by reference to the New Investment Management
Agreements, forms of which are attached in Appendix B.

       DUTIES OF THE INVESTMENT MANAGER. Under the Current Investment Management
Agreements and the New Investment Management Agreements (each, a "Management
Agreement" and collectively, the "Management Agreements"), the Investment
Manager manages the investment operations of the Funds and supervises the
composition of the Funds' portfolios, including the purchase, retention and
disposition of portfolio securities, subject to supervision by the Board. It is
authorized to enter into sub-advisory agreements for investment advisory
services in connection with the management of the Funds. The Investment Manager
has responsibility for all investment advisory services furnished pursuant to
any sub-advisory agreement. The Investment Manager bears: (a) all expenses
incurred by the Investment Manager or by the Funds in connection with managing
the ordinary course of the business of the Funds, other than those assumed by
the Fund; and (b) the fees payable to a sub-adviser pursuant to sub-advisory
agreements between the Investment Manager and any sub-advisers.

       LIMITATION OF LIABILITY. Under each Management Agreement, so long as the
Investment Manager provides a Fund the benefit of its best judgment and effort
in rendering investment advisory services, the Investment Manager is not be
liable for any errors of judgment or mistake of law, or for any loss arising out
of any investment if the investment is made with due care and in good faith. The
Investment Manager is not protected for losses arising by reason of willful
misfeasance, bad faith or gross negligence in the performance of its duties or
by reason of its reckless disregard of its investment advisory duties.

       TERM AND CONTINUANCE. Each Management Agreement provides for an initial
term of two years from the date of implementation. Thereafter, consistent with
the applicable provision of the 1940 Act, if not terminated, each Management
Agreement continues in effect for successive 12-month periods thereafter, unless
terminated, provided each such continuance is specifically approved at least
annually by (a) the vote of a majority of the entire Board of a Company, or by
the vote of holders of a majority of the outstanding voting securities of a
Fund, and (b) the vote of a majority of the Independent Directors cast in person
at a meeting of such Directors called for the purpose of voting upon such
approval.

                                     - 12 -


       Each Management Agreement may be terminated with respect to a Fund at any
time without payment of any penalty, by a Fund upon the vote of either a
majority of the Board or by a majority of the outstanding voting securities of
the Fund, or by the Investment Manager, in each case on 60 days' written notice
to the other party. Each Management Agreement will terminate automatically in
the event of its "assignment" (as that term is defined under the 1940 Act).

                NOTE REGARDING FUNDS WITH SUB-ADVISORY AGREEMENTS

       Certain of the Funds have retained third-party investment sub-advisers to
manage their assets. Under the 1940 Act, the agreements currently in place
between the Investment Manager and the applicable sub-advisers will also
terminate as a result of the Transaction because of the change in control of the
Investment Manager. Their renewal, however, does not require shareholder
approval because the Investment Manager has received an exemptive order from the
SEC pursuant to which the Investment Manager is permitted to enter into
agreements with sub-advisers and amend the terms of existing sub-advisory
agreements with unaffiliated sub-advisers without shareholder approval.
Accordingly, after consummation of the Transaction, the sub-advisory agreements
simply will be renewed with identical terms. Services rendered by the
sub-advisers will not change.

                       BOARD RECOMMENDATION ON PROPOSAL 1

                    THE DIRECTORS UNANIMOUSLY RECOMMEND THAT
                 SHAREHOLDERS OF THE FUNDS VOTE "FOR" PROPOSAL 1

                                     - 13 -


                                   PROPOSAL 2

             THE APPROVAL OF THE ELECTION OF DIRECTORS FOR ALL FUNDS

       Proposal 2 relates to the election of Directors for the Board. The Board
proposes the election of the following nominees: Donald C. Cacciapaglia, Donald
A. Chubb, Jr., Harry W. Craig, Jr., Jerry B. Farley, Richard M. Goldman, Penny
A. Lumpkin, Maynard F. Oliverius. Each nominee has indicated a willingness to
serve if elected. If elected, each nominee will serve indefinitely until their
successors are duly elected and qualified (however, as noted above and below,
Mr. Cacciapaglia's term would not start until certain board composition
requirements are met).

       The Board believes that it is in the best interests of the Funds to
expand the size of the Board. In connection with the Transaction, the Board
believes that expanding the Board to include Mr. Cacciapaglia, who is a member
of the senior management of Guggenheim's investment management business, and who
would serve on other boards in the Rydex|SGI family of funds, would be
beneficial to the Funds and their shareholders. If elected, Mr. Cacciapaglia
would be an Interested Director due to the position he holds with Guggenheim
Capital. In addition, the Board considered the increased number of funds under
its oversight and the future need for additional board members to fill vacancies
from scheduled retirements.

       The Board believes that it is in shareholders' best interest to have a
Board that is, to the extent possible, composed entirely of elected directors.
The Board also believes that good governance practices involve having a majority
of its members be Independent Directors. If all of the nominees are elected, the
Board will consist of five Directors who are not considered to be "interested
persons" of the Funds as defined in the 1940 Act and two Directors who are
considered to be "interested persons" of the Funds as defined in the 1940 Act.
If elected, Mr. Cacciapaglia would not immediately qualify to become a Director.
For regulatory and governance reasons (in order to maintain the balance on the
Board among Directors who are non-interested and those who have affiliations
with the Investment Manager so that at least 75% of Directors are
non-interested), however, Mr. Cacciapaglia would not qualify to be a Director
until an additional Independent Director is appointed by the Board (or the
balance is otherwise maintained and Mr. Cacciapaglia thus qualifies to serve as
Director). This search for an additional Independent Director is still underway.
It is currently anticipated, however, that an additional Independent Director
would be appointed (without a shareholder vote, as authorized by law) once he or
she is selected.

       The Companies' Nominating Committee, which is responsible for considering
and presenting to the Board candidates it proposes for nomination as Directors
of the Companies, recommended that the Board expand in size to eight members,
and include a Director who is affiliated with the Investment Manager's parent
company, Guggenheim Capital, as well as an additional Independent Director when
selected. The Board considered the long-term ability of the Rydex|SGI family of
funds to operate in an efficient and cohesive manner and determined that
expanding the size

                                     - 14 -


of the Board to include a representative of the parent of the Investment Manager
would benefit the Funds and that creating an eighth position on the Board to add
an Independent Director also would benefit the Funds and would be necessary to
maintain the current balance of interested and non-interested Directors. The
Nominating Committee also considered Mr. Cacciapaglia's skills and background,
and noted that his past and current experience in various aspects of banking and
finance would make him a strong addition to the Board. At a meeting held on
September 19, 2011, the Board approved the Nominating Committee's recommendation
that the seven nominees stand for election.

                       INFORMATION REGARDING THE NOMINEES

       The following table lists the nominees for Director, including the
current Directors, their ages, current position(s) held with the Companies,
length of time served, principal occupations during the past five years, number
of funds overseen within the fund complex and other directorships/directorships
held outside of the fund complex. For the new Director nominee, the table shows
the number of funds the nominee will oversee if elected. The fund complex
consists of Rydex ETF Trust, Rydex Variable Trust, Rydex Series Funds, Rydex
Dynamic Funds, Rydex Equity Fund, Security Income Fund, Security Large Cap Value
Fund, Security Mid Cap Growth Fund and SBL Fund. The mailing address of each
nominee is One Security Benefit Place, Topeka, KS 66636.

                                     - 15 -




---------------------------------------------------------------------------------------------------------------------------------
                                                                                                  NUMBER OF
                                                                                                 PORTFOLIOS
                                                                                                   IN FUND
                                               TERM OF OFFICE                                     COMPLEX             OTHER
                           POSITION(s) HELD     AND LENGTH OF        PRINCIPAL OCCUPATION(s)      OVERSEEN        DIRECTORSHIPS
 NAME, ADDRESS AND AGE      WITH THE FUNDS      TIME SERVED(1)       DURING THE PAST 5 YEARS     BY DIRECTOR     HELD BY DIRECTOR
---------------------------------------------------------------------------------------------------------------------------------
                                                      INDEPENDENT DIRECTORS
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                       
Donald A. Chubb, Jr.             Lead            Director        Current: Business broker            33               None
One Security Benefit Place    Independent       since 1994       and manager of commercial real
Topeka, KS 66636-0001           Director,                        estate, Griffith & Blair, Inc.
(64)                            Chair of
                               Nominating
                               Committee
---------------------------------------------------------------------------------------------------------------------------------
Harry W. Craig, Jr.             Director,       Since 2004       Current: Chairman, CEO, &           33               None
One Security Benefit Place      Chair of                         Director, The Craig Group,
Topeka, KS 66636-0001           Contract                         Inc.; Managing Member of Craig
(72)                             Renewal                         Family Investments, LLC. Prior
                                Committee                        to November 1, 2009, Chairman,
                                                                 CEO, Secretary & Director, The
                                                                 Martin Tractor Company, Inc.
---------------------------------------------------------------------------------------------------------------------------------
Penny A. Lumpkin                Director,       Since 1993       Current: Partner, Vivian's Gift     33               None
One Security Benefit Place      Chair of                         Shop (Corporate Retail); Vice
Topeka, KS 66636-0001            Audit                           President, Palmer Companies, Inc.
(72)                           Committee                         (Small Business and Shopping
                                                                 Center Development); PLB (Real
                                                                 Estate Equipment Leasing).
---------------------------------------------------------------------------------------------------------------------------------
Maynard F. Oliverius            Director        Since 1998       Current: President and Chief        33               None
One Security Benefit Place                                       Executive Officer, Stormont-Vail
Topeka, KS 66636-0001                                            HealthCare.
(67)
---------------------------------------------------------------------------------------------------------------------------------
Jerry B. Farley                 Director        Since 2005      Current: President, Washburn         33           Westar Energy;
One Security Benefit Place                                      University.                                          CoreFirst
Topeka, KS 66636-0001                                                                                              Bank & Trust
(65)
---------------------------------------------------------------------------------------------------------------------------------


                                     - 16 -




---------------------------------------------------------------------------------------------------------------------------------
                                                                                                  NUMBER OF
                                                                                                 PORTFOLIOS
                                                                                                   IN FUND
                                                                                                   COMPLEX            OTHER
                                               TERM OF OFFICE                                     OVERSEEN        DIRECTORSHIPS
                           POSITION(s) HELD     AND LENGTH OF        PRINCIPAL OCCUPATION(s)     BY DIRECTOR     HELD BY DIRECTOR
 NAME, ADDRESS AND AGE      WITH THE FUNDS      TIME SERVED(1)       DURING THE PAST 5 YEARS     OR NOMINEE         OR NOMINEE
---------------------------------------------------------------------------------------------------------------------------------
                                        DIRECTORS OR NOMINEES WHO ARE "INTERESTED PERSONS"
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Richard M. Goldman             Director,         Since 2008    Current: Senior Vice President,       212           None
Six Landmark Square            President,                      Security Benefit Corporation;
Stamford, CT 06901               and                           CEO, Security Benefit Asset
(50)(2)                       Chairman of                      Management Holdings, LLC; CEO,
                               the Board                       President & Manager Representative,
                                                               Security Investors, LLC; CEO &
                                                               Manager, Rydex Holdings, LLC; CEO,
                                                               President, & Manager, Rydex
                                                               Distributors, LLC; Manager, Rydex
                                                               Fund Services, LLC; and President &
                                                               Director, Rydex Series Funds, Rydex
                                                               ETF Trust, Rydex Dynamic Funds and
                                                               Rydex Variable Trust Director,
                                                               First Security Benefit Life
                                                               Insurance Company (2007-2010);
                                                               President & Director, Security
                                                               Global Investors (2010-2011); CEO &
                                                               Director, Rydex Advisors, LLC &
                                                               Rydex Advisor II, LLC (2010); and
                                                               Director, Security Distributors,
                                                               Inc. (2007-2009). Managing Member,
                                                               RM Goldman Partners, LLC
                                                               (2006-2007). President and CEO,
                                                               ForstmannLeff (2003-2005).


                                     - 17 -




---------------------------------------------------------------------------------------------------------------------------------
                                                                                                  NUMBER OF
                                                                                                 PORTFOLIOS
                                                                                                   IN FUND
                                                                                                   COMPLEX            OTHER
                                               TERM OF OFFICE                                     OVERSEEN         DIRECTORSHIPS
                           POSITION(s) HELD     AND LENGTH OF        PRINCIPAL OCCUPATION(s)     BY DIRECTOR     HELD BY DIRECTOR
 NAME, ADDRESS AND AGE      WITH THE FUNDS      TIME SERVED(1)       DURING THE PAST 5 YEARS     OR NOMINEE         OR NOMINEE
---------------------------------------------------------------------------------------------------------------------------------
                                              DIRECTORS WHO ARE "INTERESTED PERSONS"
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Donald C. Cacciapaglia        Nominee            N/A           Guggenheim Investments: President     212           None
(60)(2)                                                        and Chief Administrative Officer
                                                               from February 2010 to present

                                                               Channel Capital Group Inc.:
                                                               Chairman and CEO from April
                                                               2002 to February 2010
---------------------------------------------------------------------------------------------------------------------------------
  (1)    Directors serve until the next annual meeting or their successors are duly elected and qualified.
  (2)    This director is deemed to be an "interested person" of the Funds under the 1940 Act by reason of his position with the
         Funds' Investment Manager and/or the parent of the Investment Manager.
---------------------------------------------------------------------------------------------------------------------------------


                                     - 18 -


       The Chairman of the Board of Directors, Richard M. Goldman, is an
"interested person," as that term is defined by the 1940 Act, of the Funds.
Donald A. Chubb, Jr., who is not an interested person of the Fund, serves as its
Lead Independent Director. The Board has determined that the leadership
structure of the Funds is appropriate given its specific characteristics and
circumstances; in particular, the Board has considered that the Independent
Directors will constitute a substantial majority of the Board and are advised by
independent counsel experienced in 1940 Act matters, and the role of the Lead
Independent Director is to act as a liaison between the Independent Directors
and management and promote the open flow of information and views between Fund
management and the Independent Directors. In addition, the Board considered the
benefits of having the Board meetings run by a member of management who is
immersed in the Funds' business on a day-to-day basis and is a mutual fund
industry participant. The Board also considered that the current structure and
processes for developing Board meeting agendas and conducting Board meetings
results in full and constructive discussions of Fund business that focus the
Directors on important issues facing the Funds.

                     BOARD'S CONSIDERATION OF EACH NOMINEE'S
                QUALIFICATIONS, EXPERIENCE, ATTRIBUTES OR SKILLS

       The Board has concluded that each of the nominees should serve on the
Board because of his or her ability to review and understand information about
the Companies and the Funds provided to him or her by management; to identify
and request other information he or she may deem relevant to the performance of
their duties; to question management and other service providers regarding
material factors bearing on the management and administration of the Funds; and
to exercise his or her business judgment in a manner that serves the best
interests of the Funds' shareholders. The Board has concluded that each of the
nominees should serve as a Director based on his or her own experience,
qualifications, attributes and skills as described below.

       Donald C. Cacciapaglia is President and Chief Administrative Officer of
Guggenheim's investment management business. Most recently he was chairman and
CEO of Channel Capital Group Inc. and its subsidiary broker-dealer, Channel
Capital Group LLC, an affiliate of Guggenheim Capital, from 2002 through 2010.
From 1996 until 2002 when he joined Channel Capital Group, Mr. Cacciapaglia held
the position of Managing Director and Chief Operating Officer of the Investment
Banking Group at PaineWebber. Additionally, in 1998, he started PaineWebber's
Private Equity Group and assumed responsibility for the coverage of Leveraged
Buyout firms and the Investment Bank's Business Development Group. Before that,
Mr. Cacciapaglia was Chief Operating Officer of the Short and Intermediate
Trading Group at CS First Boston (1995-1996). However, based on the requirement
that applies to the Funds that 75% of the Board be composed of "independent"
Directors, Mr. Cacciapaglia will only qualify to become a Director when an
additional Independent Director is appointed (or the balance is otherwise
maintained).

                                     - 19 -


       Donald A. Chubb, Jr. has served as a Director since 1994 and has served
as Chair of the Nominating Committee since 2005 and as Lead Independent Director
since 2010. Mr. Chubb has worked in the business brokerage and commercial real
estate market for over 13 years. Prior he owned and operated electric sign
companies and was a director of Fidelity Bank and Trust.

       Harry W. Craig, Jr. has served as a Director since 2004 and as Chair of
the Contract Renewal Committee since 2005. Mr. Craig is the retired Chairman and
Chief Executive Officer of Martin Tractor Company, Inc., a Caterpillar
Dealership. Mr. Craig is currently the Chairman, Chief Executive Officer, and
Director of The Craig Group, Inc. He is also the Managing Member of Craig Family
Investments, LLC. Mr. Craig was Director and Treasurer of Sunflower Foundation:
Health Care for Kansans for eight years. Mr. Craig is a director, finance
committee member, and past Chairman on the board of Stormont-Vail HealthCare.
Mr. Craig practiced as a lawyer prior to his business career.

       Richard M. Goldman has served as Chairman and a Director of Security
Income Fund Board since 2008. Mr. Goldman has over 17 years experience in the
asset management business. Currently, he is the Chief Executive Officer of the
Investment Manager. Prior to joining the Investment Manager in 2007, Mr. Goldman
was the President, Chief Executive Officer, and Chairman of Forstmann-Leff
Associates from 2003 until 2005, and he was the Managing Director and Head of
Americas Institutional Business at Deutsche Asset Management from 1999 until
2003. Before 1999, Mr. Goldman was Head of Institutional Sales and Multinational
Organizations at State Street Global Advisors from 1993 until 1999, and the
Director of New Business Development at Loyalty Management Group from 1992 until
1993. Mr. Goldman also was a sales representative at Proctor & Gamble from 1983
until 1984, when he joined IBM as a Unit Manager until 1992.

       Penny A. Lumpkin has served as a Director since 1993 and as Chair of the
Audit Committee since 1995. Ms. Lumpkin has experience with various business and
real estate ventures, currently as Partner of Vivian's Gift Shop (corporate
retail), Vice President, Palmer Companies, Inc. (small business and shopping
center development) and Senior Vice President, PLB (real estate equipment
leasing).

       Maynard F. Oliverius has served as a Director since 1998. Mr. Oliverius
is President and Chief Executive Officer of Stormont-Vail HealthCare. From 2005
through 2008 Mr. Oliverius was on the Board of Directors of the American
Hospital Association. Mr. Oliverius has a masters degree in Health Care
Administration.

       Dr. Jerry B. Farley has served as a Director since 2005. Dr. Farley has
over 38 years of experience in the administration of the academic, business and
fiscal operations of educational institutions. Dr. Farley has served as
President of Washburn University since 1997. Prior to 1997, Dr. Farley worked in
various executive positions for the University of Oklahoma and Oklahoma State
University, including Vice President of Community Relations and Economic
Development, Vice President

                                     - 20 -


of Administration and Chief Financial Officer. Dr. Farley holds an MBA and a
Ph.D. in Higher Education Administration and is a C.P.A. Dr. Farley serves on
the board of Westar Energy, Inc., a NYSE listed company, and CoreFirst Bank and
Trust.

       If the nominees are elected, Mr. Goldman would remain the Chairman of the
Board of Directors and Mr. Chubb would remain the Lead Independent Director.

                         PRINCIPAL OFFICERS OF THE FUNDS

       Officers of the Funds are appointed by the Board and serve at the
pleasure of the Board. The following table shows information about the
principal officers, including their ages, their positions with the Companies and
their principal occupations during the past five years. The mailing address of
each officer is One Security Benefit Place, Topeka, KS 66636. Each officer will
hold office until his or her successor has been duly elected or appointed or
until his or her earlier death, resignation or removal.



---------------------------------------------------------------------------------------------------------------------------------
                                                    TERM OF OFFICE
                              POSITION(s) HELD       AND LENGTH OF
 NAME, ADDRESS AND AGE         WITH THE FUNDS         TIME SERVED            PRINCIPAL OCCUPATION(s) DURING THE PAST 5 YEARS
---------------------------------------------------------------------------------------------------------------------------------
OFFICERS
---------------------------------------------------------------------------------------------------------------------------------
                                                             
Mark P. Bronzo                 Vice President           Since         Current: Portfolio Manager, Security Investors, LLC.
One Security Benefit Place                               2008         Managing Director and Chief Compliance Officer, Nationwide
Topeka, KS 66636-0001                                                 Separate Accounts LLC. (2003-2008)
(DOB 11/1/60)
---------------------------------------------------------------------------------------------------------------------------------
Keith A. Fletcher              Vice President           Since         Current: Senior Vice President, Security Investors, LLC;
One Security Benefit Place                               2010         Vice President, Rydex Holdings, LLC; Vice President, Rydex
Topeka, KS 66636-0001                                                 Specialized Products, LLC; Vice President, Rydex
(DOB 02/18/58)                                                        Distributors, LLC; Vice President, Rydex Fund Services,
                                                                      LLC; Vice President and Director, Advisor Research Center,
                                                                      Inc.; and Vice President, Rydex Series Funds, Rydex ETF
                                                                      Trust, Rydex Dynamic Funds and Rydex Variable Trust
                                                                      Vice President, Security Global Investors, LLC (2010-2011);
                                                                      Vice President, Rydex Advisors, LLC (2010); and Vice
                                                                      President, Rydex Advisors II, LLC (2010)
---------------------------------------------------------------------------------------------------------------------------------


                                     - 21 -




---------------------------------------------------------------------------------------------------------------------------------
                                                    TERM OF OFFICE
                              POSITION(s) HELD       AND LENGTH OF
 NAME, ADDRESS AND AGE         WITH THE FUNDS         TIME SERVED            PRINCIPAL OCCUPATION(s) DURING THE PAST 5 YEARS
---------------------------------------------------------------------------------------------------------------------------------
OFFICERS
---------------------------------------------------------------------------------------------------------------------------------
                                                             
Joanna M. Haigney Catalucci         Chief               Since         Current: Chief Compliance Officer & Secretary, Rydex
One Security Benefit Place       Compliance              2010         Series Funds, Rydex ETF Trust, Rydex Dynamic Funds, and
Topeka, KS 66636-0001              Officer                            Rydex Variable Trust; Vice President, Rydex Holdings, LLC;
(DOB 10/10/1966)                                                      Vice President, Security Benefit Asset Management Holdings,
                                                                      LLC; and Senior Vice President & Chief Compliance Officer,
                                                                      Security Investors, LLC Senior Vice President, Security
                                                                      Global Investors, LLC (2010-2011); Chief Compliance Officer
                                                                      and Senior Vice President, Rydex Advisors, LLC & Rydex
                                                                      Advisors II, LLC (2010)
---------------------------------------------------------------------------------------------------------------------------------
Nikolaos Bonos                   Treasurer              Since         Current: Senior Vice President, Security Investors, LLC;
One Security Benefit Place                               2010         Chief Executive Officer & Manager, Rydex Specialized
Topeka, KS 66636-0001                                                 Products, LLC; Chief Executive Officer & President, Rydex
(DOB 05/30/1963)                                                      Fund Services, LLC; Vice President, Rydex Holdings, LLC;
                                                                      Vice President & Treasurer, Rydex Series Funds; Rydex ETF
                                                                      Trust; Rydex Dynamic Funds; and Rydex Variable Trust; and
                                                                      Vice President, Security Benefit Asset Management Holdings,
                                                                      LLC Senior Vice President, Security Global Investors, LLC
                                                                      (2010-2011); and Senior Vice President, Rydex Advisors, LLC
                                                                      and Rydex Advisors II, LLC
---------------------------------------------------------------------------------------------------------------------------------
Joseph M. Arruda                 Assistant              Since         Current: Vice President, Security Investors, LLC; Chief
One Security Benefit Place       Treasurer               2010         Financial Officer & Manager, Rydex Specialized Products,
Topeka, KS 66636-0001                                                 LLC; and Assistant Treasurer, Rydex Series Funds; Rydex
(DOB 09/05/1966)                                                      Dynamic Funds; Rydex ETF Trust; and Rydex Variable Trust
                                                                      Vice President, Security Global Investors, LLC (2010-2011);
                                                                      and Vice President, Rydex Advisors, LLC and Rydex Advisors
                                                                      II, LLC (2010)
---------------------------------------------------------------------------------------------------------------------------------


                                     - 22 -




---------------------------------------------------------------------------------------------------------------------------------
                                                    TERM OF OFFICE
                              POSITION(s) HELD       AND LENGTH OF
 NAME, ADDRESS AND AGE         WITH THE FUNDS         TIME SERVED            PRINCIPAL OCCUPATION(s) DURING THE PAST 5 YEARS
---------------------------------------------------------------------------------------------------------------------------------
OFFICERS
---------------------------------------------------------------------------------------------------------------------------------
                                                             
Amy J. Lee                     Secretary and            Since         Current: Senior Vice President & Secretary, Security
One Security Benefit Place     Vice President            1987         Investors, LLC; Secretary & Chief Compliance Officer,
Topeka, KS 66636-0001                                (Secretary)      Security Distributors, Inc.; Vice President, Associate
(DOB 6/5/61)                                            Since         General Counsel & Assistant Secretary, Security Benefit
                                                         2007         Life Insurance Company and Security Benefit Corporation;
                                                        (Vice         Associate General Counsel, First Security Benefit Life
                                                      President)      Insurance and Annuity of New York; Vice President &
                                                                      Assistant Secretary, Rydex Series Funds, Rydex ETF Trust,
                                                                      Rydex Dynamic Funds, and Rydex Variable Trust; Vice
                                                                      President & Secretary, Rydex Holdings, LLC Secretary,
                                                                      Advisor Research Center, Inc., Rydex Specialized Products,
                                                                      LLC, Rydex Distributors, LLC and Rydex Fund Services, LLC;
                                                                      and Assistant Secretary, Security Benefit Clinic and
                                                                      Hospital Senior Vice President & Secretary, Security
                                                                      Global Investors, LLC (2007-2011); Senior Vice President &
                                                                      Secretary, Rydex Advisors, LLC and Rydex Advisors II, LLC
                                                                      (2010); and Director, Brecek & Young Advisors, Inc.
                                                                      (2004-2008)
---------------------------------------------------------------------------------------------------------------------------------
Mark A. Mitchell               Vice President           Since         Current: Portfolio Manager, Security Investors, LLC
One Security Benefit Place                               2003         Vice President and Portfolio Manager, Security Benefit
Topeka, KS 66636-0001                                                 Life Insurance Company (2003-2010)
(DOB 8/24/64)
---------------------------------------------------------------------------------------------------------------------------------
Joseph C. O'Connor             Vice President           Since         Current: Portfolio Manager, Security Investors, LLC.
One Security Benefit Place                               2008         Managing Director, Nationwide Separate Accounts LLC.
Topeka, KS 66636-0001                                                 (2003-2008)
(DOB 7/15/60)
---------------------------------------------------------------------------------------------------------------------------------
Daniel W. Portanova            Vice President           Since         Current: Portfolio Manager, Security Investors, LLC.
One Security Benefit Place                               2008         Managing Director, Nationwide Separate Accounts LLC.
Topeka, KS 66636-0001                                                 (2003-2008)
(DOB 10/2/60)
---------------------------------------------------------------------------------------------------------------------------------
James P. Schier                Vice President           Since         Current: Senior Portfolio Manager, Security Investors, LLC
One Security Benefit Place                               1998         Vice President & Senior Portfolio Manager, Security Benefit
Topeka, KS 66636-0001                                                 Life Insurance Company (1998-2010)
(DOB 12/28/57)
---------------------------------------------------------------------------------------------------------------------------------
David G. Toussaint             Vice President           Since         Current: Portfolio Manager, Security Investors, LLC.
One Security Benefit Place                               2005         Assistant Vice President and Portfolio Manager, Security
Topeka, KS 66636-0001                                                 Benefit Life Insurance Company. (2005-2009)
(DOB 10/10/66)
---------------------------------------------------------------------------------------------------------------------------------


                                     - 23 -


                      NOMINEE OWNERSHIP OF PORTFOLIO SHARES

       As of December 31, 2010, the Nominees beneficially owned shares of the
Funds in the dollar ranges set forth below and also beneficially owned shares of
other mutual funds in the family of mutual funds that would be overseen by the
Nominees in the dollar ranges set forth below.



---------------------------------------------------------------------------------------------------------------------------------
                                                                                                      AGGREGATE DOLLAR RANGE OF
                                                                                                       EQUITY SECURITIES IN ALL
                                                                                                         REGISTERED INVESTMENT
                                                                                    DOLLAR                COMPANIES OVERSEEN
 NAME OF INDEPENDENT                                                            RANGE OF EQUITY        BY DIRECTOR IN FAMILY OF
 DIRECTOR OR NOMINEE                    NAME OF FUND                           SECURITIES IN FUND        INVESTMENT COMPANIES
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                     
                      Security Income Fund-U.S. Intermediate Bond Fund             $1-$10,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-Mid Cap Value Institutional Fund     $10,001-$50,000
Donald A. Chubb, Jr.  --------------------------------------------------------------------------              Over $100,000
                      Security Equity Fund-Small Cap Growth Fund                   $1-$10,000
                      --------------------------------------------------------------------------
                      Security Mid Cap Growth Fund                              $10,001-$50,000
---------------------------------------------------------------------------------------------------------------------------------
                      Security Equity Fund-Mid Cap Value Fund                     Over $100,000
Harry A. Craig        --------------------------------------------------------------------------              Over $100,000
                      Security Equity Fund-Small Cap Value Fund                   Over $100,000
---------------------------------------------------------------------------------------------------------------------------------
                      Security Income Fund-U.S. Intermediate Bond Fund          $50,001-$100,000
                      --------------------------------------------------------------------------
                      Security Large Cap Value Fund                                $1-$10,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-Large Cap Core Fund                  $10,001-$50,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-Mid Cap Value Fund                   $10,001-$50,000
Penny A. Lumpkin      --------------------------------------------------------------------------              Over $100,000
                      Security Equity Fund-Large Cap Concentrated Growth
                      Fund                                                         $1-$10,000
                      --------------------------------------------------------------------------
                      Security Mid Cap Growth Fund                                 $1-$10,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-MSCI EAFE Equal Weight Fund          $10,001-$50,000
---------------------------------------------------------------------------------------------------------------------------------
Maynard F. Oliverius  Security Income Fund-U.S. Intermediate Bond Fund          $50,001-$100,000              Over $100,000
---------------------------------------------------------------------------------------------------------------------------------


                                     - 24 -




---------------------------------------------------------------------------------------------------------------------------------
                                                                                                      AGGREGATE DOLLAR RANGE OF
                                                                                                       EQUITY SECURITIES IN ALL
                                                                                                         REGISTERED INVESTMENT
                                                                                    DOLLAR                COMPANIES OVERSEEN
 NAME OF INDEPENDENT                                                            RANGE OF EQUITY        BY DIRECTOR IN FAMILY OF
 DIRECTOR OR NOMINEE                    NAME OF FUND                           SECURITIES IN FUND        INVESTMENT COMPANIES
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                     
                      Security Income Fund-High Yield Fund                        Over $100,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-Mid Cap Value Fund                     Over $100,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-Small Cap Value Fund                   Over $100,000
                      --------------------------------------------------------------------------
                      Security Income Fund, High Yield Fund                            $0
---------------------------------------------------------------------------------------------------------------------------------
                      Security Equity Fund-Alpha Opportunity Fund               $50,001-$100,000
                      --------------------------------------------------------------------------
Jerry B. Farley       Security Equity Fund-Small Cap Value Fund                   Over $100,000               Over $100,000
                      --------------------------------------------------------------------------
                      Security Equity Fund-MSCI EAFE Equal Weight Fund           $10,001-$50,000
---------------------------------------------------------------------------------------------------------------------------------


                                     - 25 -


       As of December 31, 2010, the Nominees who would be considered "interested
persons" of the Funds beneficially owned shares of the Funds in the dollar
ranges set forth below and also beneficially owned shares of other mutual funds
in the family of mutual funds that would be overseen by the Nominees in the
dollar ranges set forth below.



---------------------------------------------------------------------------------------------------------------------------------
                                                                                                       AGGREGATE DOLLAR RANGE OF
                                                                                                       EQUITY SECURITIES IN ALL
                                                                                                         REGISTERED INVESTMENT
                                                                                      DOLLAR              COMPANIES OVERSEEN
 NAME OF "INTERESTED"                                                             RANGE OF EQUITY      BY DIRECTOR IN FAMILY OF
 DIRECTOR OR NOMINEE                       NAME OF FUND                         SECURITIES IN FUND        INVESTMENT COMPANIES
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Donald C. Cacciapaglia   None                                                          None                        None
Richard M. Goldman       Security Equity Fund-Mid Cap Value Institutional Fund    $10,001-$50,000            $10,001-$50,000


       None of the nominees for Independent Director or their immediate family
members had any interest in the Investment Manager or Distributor, or any person
controlling, controlled by or under common control with such persons. For this
purpose, "immediate family member" includes the Nominee's spouse, children
residing the in the Nominee's household and dependents of the Nominee.

       As of October 3, 2011, the Directors and officers as a group owned less
than 1% of the outstanding shares of each Fund, except as listed in Appendix H.

                               BOARD COMPENSATION

       The Funds' Directors, except those directors who are "interested persons"
of the Funds, receive from all of the registered investment companies to which
the Investment Manager provides investment advisory services an annual retainer
of $32,000 and a fee of $6,000 per meeting, plus reasonable travel costs, for
each meeting of the board attended. In addition, certain directors who are
members of the Funds' joint audit committee receive a fee of $3,500 per meeting
and reasonable travel costs for each meeting of the Funds' audit committee
attended and $2,500 per any telephone board meeting for which there is an
agenda, minutes and a duration of one hour or more. Each Fund pays
proportionately its respective share of Independent Directors' fees, audit
committee fees and travel costs based on relative net assets. The Investment
Manager compensates its officers and directors who may also serve as officers or
directors of the Funds. The Funds do not pay any fees to, or reimburse expenses
of, directors who are considered "interested persons" of the Funds.

       The aggregate compensation paid by Security Equity Fund to each of the
Directors during the fiscal year ended September 30, 2010, and the aggregate

                                     - 26 -


compensation paid to each of the Independent Directors during calendar year 2010
by the Rydex | SGI Funds, are set forth below.



----------------------------------------------------------------------------------------------------------------------------
                                                                                                   TOTAL COMPENSATION FROM
                                                  PENSION OR RETIREMENT        ESTIMATED ANNUAL     THE RYDEX | SGI FUNDS
NAMES OF INDEPENDENT            AGGREGATE      BENEFITS ACCRUED AS PART OF      BENEFITS UPON       COMPLEX, INCLUDING THE
DIRECTORS OF THE FUND         COMPENSATION            FUND EXPENSES              RETIREMENT                 FUNDS
----------------------------------------------------------------------------------------------------------------------------
                                                                                                
Donald A. Chubb, Jr.             $38,486                   $0                        $0                     $77,500
Harry W. Craig, Jr.              $38,486                   $0                        $0                     $77,500
Penny A. Lumpkin                 $38,486                   $0                        $0                     $77,500
Jerry B. Farley                  $37,064                   $0                        $0                     $77,500
Maynard F. Oliverius             $38,486                   $0                        $0                     $77,500
----------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------
                                                                                                   TOTAL COMPENSATION FROM
NAMES OF DIRECTORS WHO ARE                        PENSION OR RETIREMENT        ESTIMATED ANNUAL     THE RYDEX | SGI FUNDS
"INTERESTED PERSONS" OF THE     AGGREGATE      BENEFITS ACCRUED AS PART OF      BENEFITS UPON       COMPLEX, INCLUDING THE
FUND                          COMPENSATION            FUND EXPENSES              RETIREMENT                 FUNDS
----------------------------------------------------------------------------------------------------------------------------
                                                                                                
Richard M. Goldman               $0                        $0                        $0                     $0
----------------------------------------------------------------------------------------------------------------------------


       The aggregate compensation paid by Security Large Cap Value Fund to each
of the directors during the fiscal year ended September 30, 2010, and the
aggregate compensation paid to each of the Independent Directors during calendar
year 2010 by the Rydex | SGI Funds, are set forth below.



----------------------------------------------------------------------------------------------------------------------------
                                                                                                   TOTAL COMPENSATION FROM
                                                  PENSION OR RETIREMENT        ESTIMATED ANNUAL     THE RYDEX | SGI FUNDS
NAMES OF INDEPENDENT            AGGREGATE      BENEFITS ACCRUED AS PART OF      BENEFITS UPON       COMPLEX, INCLUDING THE
DIRECTORS OF THE FUND         COMPENSATION            FUND EXPENSES              RETIREMENT                 FUNDS
----------------------------------------------------------------------------------------------------------------------------
                                                                                                
Donald A. Chubb, Jr.             $1,131                    $0                        $0                     $77,500
Harry W. Craig, Jr.              $1,131                    $0                        $0                     $77,500
Penny A. Lumpkin                 $1,131                    $0                        $0                     $77,500
Jerry B. Farley                  $1,087                    $0                        $0                     $77,500
Maynard F. Oliverius             $1,131                    $0                        $0                     $77,500
----------------------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------------------
                                                                                                   TOTAL COMPENSATION FROM
NAMES OF DIRECTORS WHO ARE                        PENSION OR RETIREMENT        ESTIMATED ANNUAL     THE RYDEX | SGI FUNDS
"INTERESTED PERSONS" OF THE     AGGREGATE      BENEFITS ACCRUED AS PART OF      BENEFITS UPON       COMPLEX, INCLUDING THE
FUND                          COMPENSATION            FUND EXPENSES              RETIREMENT                 FUNDS
----------------------------------------------------------------------------------------------------------------------------
                                                                                                
Richard M. Goldman               $0                        $0                        $0                     $0
----------------------------------------------------------------------------------------------------------------------------


                                     - 27 -


       The aggregate compensation paid by Security Mid Cap Growth Fund to each
of the directors during the fiscal year ended September 30, 2010, and the
aggregate compensation paid to each of the Independent Directors during calendar
year 2010 by the Rydex | SGI Funds, are set forth below.



----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
                                               PENSION OR RETIREMENT       ESTIMATED ANNUAL    THE RYDEX | SGI FUNDS
NAMES OF INDEPENDENT           AGGREGATE    BENEFITS ACCRUED AS PART OF      BENEFITS UPON    COMPLEX, INCLUDING THE
DIRECTORS OF THE FUND         COMPENSATION         FUND EXPENSES              RETIREMENT               FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                          
Donald A. Chubb, Jr.             $1,718                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Harry W. Craig, Jr.              $1,718                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Penny A. Lumpkin                 $1,718                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Jerry B. Farley                  $1,648                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Maynard F. Oliverius             $1,718                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------




----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
NAMES OF DIRECTORS WHO ARE                     PENSION OR RETIREMENT       ESTIMATED ANNUAL    THE RYDEX | SGI FUNDS
"INTERESTED PERSONS" OF THE    AGGREGATE    BENEFITS ACCRUED AS PART OF      BENEFITS UPON    COMPLEX, INCLUDING THE
FUND                          COMPENSATION          FUND EXPENSES             RETIREMENT               FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                            
Richard M. Goldman                 $0                    $0                      $0                     $0
----------------------------------------------------------------------------------------------------------------------


    The aggregate compensation paid by Security Income Fund to each of the
directors during the fiscal year ended December 31, 2010, and the aggregate
compensation paid to each of the Independent Directors during calendar year 2010
by the Rydex | SGI Funds, are set forth below.



----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
                                               PENSION OR RETIREMENT       ESTIMATED ANNUAL    THE RYDEX | SGI FUNDS
NAMES OF INDEPENDENT           AGGREGATE     BENEFITS ACCRUED AS PART OF    BENEFITS UPON      COMPLEX, INCLUDING THE
DIRECTORS OF THE FUND         COMPENSATION         FUND EXPENSES              RETIREMENT               FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                          
Donald A. Chubb, Jr.             $5,697                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Harry W. Craig, Jr.               5,697                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Penny A. Lumpkin                  5,697                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Jerry B. Farley                   5,697                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Maynard F. Oliverius              5,697                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------


                                     - 28 -




----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
NAMES OF DIRECTORS WHO ARE                     PENSION OR RETIREMENT       ESTIMATED ANNUAL     THE RYDEX | SGI FUNDS
"INTERESTED PERSONS" OF THE    AGGREGATE     BENEFITS ACCRUED AS PART OF    BENEFITS UPON      COMPLEX, INCLUDING THE
FUND                          COMPENSATION          FUND EXPENSES              RETIREMENT              FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                            
Richard M. Goldman                 $0                    $0                      $0                     $0
----------------------------------------------------------------------------------------------------------------------


    The aggregate compensation paid by SBL Fund to each of the directors during
the fiscal year ended December 31, 2010, and the aggregate compensation paid to
each of the Independent Directors during calendar year 2010 by the Rydex | SGI
Funds, are set forth below.



----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
                                               PENSION OR RETIREMENT       ESTIMATED ANNUAL    THE RYDEX | SGI FUNDS
NAMES OF INDEPENDENT           AGGREGATE     BENEFITS ACCRUED AS PART OF    BENEFITS UPON      COMPLEX, INCLUDING THE
DIRECTORS OF THE FUND         COMPENSATION          FUND EXPENSES             RETIREMENT               FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                          
Donald A. Chubb, Jr.            $35,877                  $0                      $0                   $77,500
----------------------------------------------------------------------------------------------------------------------
Harry W. Craig, Jr.             $35,877                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Penny A. Lumpkin                $35,877                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Jerry B. Farley                 $35,877                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------
Maynard F. Oliverius            $35,877                   0                       0                    77,500
----------------------------------------------------------------------------------------------------------------------




----------------------------------------------------------------------------------------------------------------------
                                                                                              TOTAL COMPENSATION FROM
NAMES OF DIRECTORS WHO ARE                     PENSION OR RETIREMENT       ESTIMATED ANNUAL    THE RYDEX | SGI FUNDS
"INTERESTED PERSONS" OF THE    AGGREGATE     BENEFITS ACCRUED AS PART OF    BENEFITS UPON     COMPLEX, INCLUDING THE
FUND                          COMPENSATION         FUND EXPENSES              RETIREMENT               FUNDS
----------------------------------------------------------------------------------------------------------------------
                                                                                            
Richard M. Goldman                 $0                    $0                      $0                     $0
----------------------------------------------------------------------------------------------------------------------


                      COMMITTEES AND MEETINGS OF THE BOARD

     The Board is responsible for overseeing the management and affairs of the
Funds. The Board held 4 regular meetings during each Company's most recent
fiscal year. The Board of each Company (other than Security Income Fund) held 3
special meetings during the respective Company's most recent fiscal year. The
Board of Security Income Fund held 4 special meetings during Security Income
Fund's most recent fiscal year. Each Director then in office attended at least
75% of the aggregate of the total number of meetings of the Board and the total
number of meetings held by all committees of the Board on which the Director
served. The Companies currently do not have a policy with respect to Directors'
attendance at shareholder meetings. Shareholders wishing to communicate with
the Board or individual directors should send such correspondence to the Board
at the Companies' offices. Shareholder communications will be sent directly to
the applicable Board member(s). The Board has established the following standing
committees:

                                     - 29 -


    AUDIT COMMITTEE -- The Board of Directors has an Audit Committee, the
purpose of which is to meet with the independent registered public accountants,
to review the work of the auditors, and to oversee the handling by the
Investment Manager of the accounting functions for the Funds. The Audit
Committee consists of the following Independent Directors: Messrs. Craig, Chubb,
Farley and Oliverius and Ms. Lumpkin. The Audit Committee held two meetings
during the fiscal year ended December 31, 2010.

    CONTRACT RENEWAL COMMITTEE -- The Board of Directors has a Contract Renewal
Committee, the purpose of which is to meet in advance of the annual contract
renewal meeting and review relevant information before voting on whether to
renew the Funds' investment advisory agreements. The Committee also considers
whether additional information should be requested from management in connection
with the annual review of the Funds' advisory agreements. The Contract Renewal
Committee consists of the following Independent Directors: Messrs. Craig, Chubb,
Farley and Oliverius and Ms. Lumpkin. The Contract Renewal Committee held no
meetings during the calendar year ended December 31, 2010.

    NOMINATING COMMITTEE -- The Board of Directors has established a Nominating
Committee for the purpose of considering and presenting to the Board candidates
it proposes for nomination to fill Independent Director vacancies on the Board.
Specific qualifications of candidates for Board membership will be based on the
needs of the Board at the time of nomination. The Nominating Committee is
willing to consider nominations received from shareholders and shall assess
shareholder nominees in the same manner as it reviews its own nominees. A
shareholder nominee for director should be submitted in writing to the Funds'
Secretary. Any such shareholder nomination should include, at a minimum, the
following information as to each individual proposed for nominations as
director: such individual's written consent to be named in the proxy statement
as a nominee (if nominated) and to serve as a director (if elected) and all
information relating to such individual that is required to be disclosed in the
solicitation of proxies for election of directors, or is otherwise required, in
each case under applicable federal securities laws, rules and regulations. The
Nominating Committee consists of Messrs. Chubb, Farley, Craig, and Oliverius and
Ms. Lumpkin. The Nominating Committee held no meetings during the calendar year
ended December 31, 2010. Additional information regarding the Nominating
Committee may be found in the charter of the Nominating Committee, which may be
found in Appendix I.

                  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

    The firm of Ernst & Young LLP ("Ernst & Young") has been selected as
independent auditors of the Companies for the current fiscal year. Ernst & Young
has confirmed to the Audit Committee that they are independent auditors with
respect to the Companies. Representatives of Ernst & Young are not expected to
be present at the Meeting, but will have the opportunity to make a statement if
they wish, and will be available should any matter arise requiring their
presence.

                                     - 30 -


    Certain information concerning the fees and services provided by Ernst &
Young to the Companies and to the Investment Manager and its affiliates for the
two most recently completed fiscal years of the Companies is provided below. The
Audit Committee is responsible for the engagement, compensation, and oversight
of Ernst & Young. The Audit Committee is required to pre-approve all audit and
permitted non-audit services performed by Ernst & Young for the Funds in
accordance with the Audit Committee Charter and the 1940 Act and makes a
determination with respect to Ernst & Young's independence each year. For the
two most recent fiscal years for each if the Funds, none of the services
provided to the Companies or described under "Audit-Related Fees," "Tax Fees,"
and "All Other Fees" were approved by the Audit Committee pursuant to the de
minimis exception to the pre-approval requirements.

    The following table sets forth the aggregate fees billed by Ernst & Young
for professional services rendered to the Companies during the two most recent
fiscal years.



------------------------------------------------------------------------------------------------------------------
              SECURITY EQUITY     SECURITY LARGE      SECURITY MID CAP     SECURITY INCOME          SBL FUND
                   FUND           CAP VALUE FUND        GROWTH FUND             FUND
------------------------------------------------------------------------------------------------------------------
                                                                                
AUDIT FEES   9/30/10: $162,500   9/30/10: $13,000    9/30/10: $13,000     12/31/10: $26,000    12/31/10: $287,500
             9/30/09: $271,000   9/30/09: $13,000    9/30/09: $13,000     12/31/09: $26,000    12/31/09: $188,500
------------------------------------------------------------------------------------------------------------------
AUDIT-       9/30/10: $  7,673   9/30/10: $ 4,135    9/30/10: $ 3,692     12/31/10: $ 6,200    12/31/10: $ 11,020
RELATED      9/30/09: $  7,673   9/30/09: $ 4,315    9/30/09: $ 3,692     12/31/09: $ 6,200    12/31/09: $ 11,020
FEES
------------------------------------------------------------------------------------------------------------------
TAX FEES    9/30/10:  $ 32,075   9/30/10: $ 6,415    9/30/10: $ 3,208     12/31/10: $ 6,415    12/31/10: $ 48,113
            9/30/09:  $ 33,633   9/30/09: $ 6,727    9/30/09: $ 3,363     12/31/09: $ 6,727    12/31/09: $ 50,450
------------------------------------------------------------------------------------------------------------------
ALL OTHER   9/30/10:  $  7,667   9/30/10: $ 1,533    9/30/10: $   767     12/31/10: $ 1,533    12/31/10: $ 11,500
FEES        9/30/09:  $  7,667   9/30/09: $ 1,533    9/30/09: $   767     12/31/09: $ 1,533    12/31/09: $ 11,500
------------------------------------------------------------------------------------------------------------------
AGGREGATE   9/30/10:  $      0   9/30/10: $     0   9/30/10:  $     0     12/31/10: $     0    12/31/10: $      0
NON-AUDIT   9/30/09:  $      0   9/30/09: $     0   9/30/09:  $     0     12/31/09: $     0    12/31/09: $      0
FEES
------------------------------------------------------------------------------------------------------------------


                                     - 31 -


    AUDIT FEES. The aggregate fees billed by Ernst & Young for audit of the
annual financial statements in connection with statutory and regulatory filings.

    AUDIT-RELATED FEES. The aggregate fees billed by Ernst & Young for assurance
and related services reasonably related to the performance of the annual audit
or review of the Company's financial statements (and not reported above).

    TAX FEES. The aggregate tax fees billed by Ernst & Young for professional
services rendered for tax compliance, tax advice, and tax planning, including
preparation of tax returns and distribution assistance.

    ALL OTHER FEES. The aggregate fees billed by Ernst & Young for products and
services provided by Ernst & Young to the Funds, other than the services
reported above.

    AGGREGATE NON-AUDIT FEES. The aggregate non-audit fees were for tax fees
billed by Ernst & Young for professional services rendered for tax compliance,
tax advice, and tax planning, including preparation of tax returns and
distribution assistance. All non-audit services rendered were pre-approved by
the Audit Committee. As such, the Audit Committee has considered these services
in maintaining Ernst & Young's independence.

                       BOARD RECOMMENDATION ON PROPOSAL 2

                    THE DIRECTORS UNANIMOUSLY RECOMMEND THAT
                    SHAREHOLDERS OF THE FUNDS VOTE "FOR" THE
                            ELECTION OF EACH NOMINEE

                                     - 32 -


                                   PROPOSAL 3

                   THE APPROVAL OF A CHANGE TO THE FUNDAMENTAL
               INVESTMENT POLICY ON DIVERSIFICATION OF INVESTMENTS
                            WITH RESPECT TO SERIES N

    Proposal 3 relates to a change to the "fundamental investment policy" on
diversification of investments for Series N. The 1940 Act requires that each
Fund adopt a "fundamental" investment policy with respect to several types of
activities, including diversification of investments. Diversification relates to
the percentage of assets that may be invested in a single issuer's securities
and the percentage of voting securities of such issuer that may be owned. Under
the 1940 Act, an investment policy that is "fundamental" may only be modified
with the approval of shareholders. Series N currently has in place a fundamental
investment policy on diversification of investments that is more prohibitive
than the 1940 Act requires, unnecessarily limiting the Series' investment
strategies. Proposal 3 is thus intended to provide Series N with greater
flexibility to invest in issuers, particularly investment companies, to the
maximum extent permitted as a diversified fund, consistent with current
applicable law and with Series N's investment strategies and objectives. If this
change is approved by shareholders of Series N, the investment program of Series
N will change as discussed below.

                   PROPOSED FUNDAMENTAL NEW INVESTMENT POLICY

    If Proposal 3 is approved by shareholders, the fundamental investment policy
on diversification of investments for Series N would read:

         The fundamental policies of the Series are:

         1.   Series N shall be a "diversified company" as that term is defined
              under the Investment Company Act of 1940, and as interpreted,
              modified or applied by government or regulatory authorities having
              jurisdiction from time to time.

                      CURRENT FUNDAMENTAL INVESTMENT POLICY

    The current fundamental investment policy on diversification of investments
for Series N reads:

         The fundamental policies of the Series are:

         1.   PERCENT LIMIT ON ASSETS INVESTED IN ANY ONE ISSUER Not to invest
              more than 5% of its total assets in the securities of any one
              issuer (other than obligations of, or guaranteed by, the U.S.
              government, its agencies or instrumentalities), provided, that
              this limitation applies only with respect to 75% of the Fund's
              total assets.

         2.   PERCENT LIMIT ON SHARE OWNERSHIP OF ANY ONE ISSUER Not to purchase
              a security if, as a result, with respect to 75% of the value of
              the Series' total assets, more than 10% of the outstanding voting
              securities of any one issuer would be held by the Series
              (other than obligations issued or guaranteed by the U.S.
              government, its agencies or instrumentalities).

                                     - 33 -


                       DISCUSSION OF PROPOSED MODIFICATION

    The proposed modification to Series N's fundamental investment policy on
diversification of investments would allow the Funds to invest in securities of
any one issuer of securities to the extent permitted by the 1940 Act. The 1940
Act requires each series of an investment company to state whether it is
"diversified" or "non-diversified," as those terms are defined in the 1940 Act.
The term "diversified" is defined in the 1940 Act as follows: "a management
company which meets the following requirements: at least 75 per centum of the
value of its total assets is represented by cash and cash items (including
receivables), Government securities, securities of other investment companies,
and other securities for the purposes of this calculation limited in respect of
any one issuer to an amount not greater in value than five per centum of the
value of the total assets of such management company and to not more than 10 per
centum of the outstanding voting securities of such issuer" ("75% test"). Under
the 1940 Act, a "non-diversified" mutual fund generally is any mutual fund that
is not considered diversified and is not, therefore, constrained by the 75%
test.

    Under the 75% test, a fund, such as Series N, may not invest more than
5% of its assets in a single issuer (e.g., a company) of securities. This
provision is intended in part to limit the amount of investment exposure (and
thus risk) that a "diversified" fund, such as Series N, can incur with regard to
individual issuers. The 1940 Act provision carves out from the prohibition
investments in cash and government securities (as these investments can
generally be deemed less risky) as well as securities of other investment
companies. The two current fundamental diversification policies of Series N that
are shown above largely restate the 1940 Act provisions but fail to explicitly
carve-out shares of investment companies, which could potentially prevent Series
N from investing its assets in funds. The two current policies also
unnecessarily limit the percentage of outstanding shares of another fund in
which Series N may invest.

    If approved, the change would permit Series N to invest in other investment
companies to the extent permitted by the 1940 Act, the rules thereunder and
applicable exemptive relief. Pursuant to provisions of the 1940 Act and the
rules thereunder, a fund may invest almost without limitation in investment
companies that are part of the same group of investment companies and can also
invest in other investment companies within certain limits.

    As a shareholder of another investment company, Series N would bear, along
with other shareholders, its pro rata portion of the other investment company's
expenses, including advisory fees. These expenses would be in addition to the
advisory and other expenses that Series N bears directly in connection with its
own operations.

    The tables below shows the current fees and expenses disclosed in Series N's
prospectus and estimated pro forma fees and expenses of Series N that would be
incurred if Series N invests in other investment companies.

                                     - 34 -




ANNUAL OPERATING EXPENSES (Expenses that you pay each year         CURRENT      ESTIMATED
as a percentage of the value of your investment)*
-----------------------------------------------------------------------------------------
                                                                          
Management fees                                                    1.00%        0.65%
-----------------------------------------------------------------------------------------
Acquired fund fees and expenses                                    0.02%        0.15%
-----------------------------------------------------------------------------------------
Other expenses                                                     0.50%        0.50%
-----------------------------------------------------------------------------------------
TOTAL ANNUAL FUND OPERATING EXPENSES                               1.52%        1.30%
-----------------------------------------------------------------------------------------


*   The table does not take into account any of the expenses associated with an
    investment in variable insurance products offered by participating insurance
    companies. Series N is available only through the purchase of such
    products. If such fees and expenses were reflected, the overall expenses
    would be higher.

    EXAMPLE. This Example is intended to help you compare the cost of investing
in Series N with the cost of investing in other mutual funds. It does not
reflect separate account or insurance contract fees and charges, which if
reflected would increase expenses. The Example assumes that you invest $10,000
in the Series for the time periods indicated and reflects expenses whether or
not you redeem your shares at the end of those periods. The Example is based on
the current expenses of Series N and provides a comparison based on the pro
forma expenses Series N may incur if Proposal 3 is approved. The Example also
assumes that your investment has a 5% return each year and that the Series'
operating expenses remain the same. Although the actual costs may be higher or
lower, based on these assumptions your costs would be:



                              1 YEAR     3 YEARS      5 YEARS      10 YEARS
-----------------------------------------------------------------------------
                                                        
CURRENT                        $155        $480         $829        $1,813
ESTIMATED                      $132        $412         $713        $1,568


    Notwithstanding this greater freedom to invest in other investment
companies, Series N would continue to comply with other provisions of the 1940
Act relating to investments in other investment companies.

    No change is being proposed to Series N's designation as a diversified fund.
Rather, Proposal 3 would permit Series N to invest in other issuers to the
extent permitted under the 1940 Act as a diversified fund. The proposed
modification would also allow Series N to conform to future changes in the 1940
Act--and interpretations thereunder--without further Board or shareholder
action. The modification would therefore ensure that Series N maintains the
maximum amount of flexibility to invest in securities while maintaining its
status as a diversified investment company, without incurring the additional
expenses necessary to further amend the fundamental investment policies.

               NOTE REGARDING RELATED CHANGE TO INVESTMENT PROGRAM

    This third proposal is motivated by the Investment Manager's recommendation,
which was approved by the SBL Fund Board to modify Series N's investment
objective and strategies in order to use a new asset allocation strategy which
involve the investment of a predominant portion of the Fund's assets in exchange
traded funds

                                     - 35 -


("ETFs"), including ETFs within the Rydex|SGI family of funds in order to
provide exposure to equity, fixed income and money market assets. Series N's
assets would be compared to a diversified portfolio of ETFs seeking to track the
investment performance of major equity and fixed income indexes. Series N also
could invest in futures contracts in order to get exposure to such indexes. This
asset allocation strategy would be dynamic, which means that it could rapidly
change in order to adapt to market conditions. In addition, Series N would no
longer be managed by its current sub-adviser. It is not believed that these
investments in other investment companies will materially increase risks.
Series N does not expect that the Investment Manager would waive the management
fees for the services that it renders to Series N because it believes that these
fees are justified based on the services provided, which are in addition to the
management services rendered by the Investment Manager or its affiliates at the
underlying fund level.

    Should Series N shareholders not approve the proposal to amend Series N's
fundamental investment policy on diversification of investments, Series N's
current fundamental investment policy on diversification of investments would
continue to apply unchanged and the Board would decide whether to make changes
to Series N's investment program.

                       BOARD RECOMMENDATION ON PROPOSAL 3

    Based on their deliberations on and evaluation of the information described
above and such other information deemed relevant, the Board, including all of
the Independent Directors, unanimously agreed to approve the proposed new
fundamental investment policy on diversification of investments and to recommend
the approval of the proposed new fundamental investment policy on
diversification of investments to shareholders of Series N.

                    THE DIRECTORS UNANIMOUSLY RECOMMEND THAT
                 SHAREHOLDERS OF SERIES N VOTE "FOR" PROPOSAL 3

                                 OTHER BUSINESS

    The Directors do not know of any matters to be presented at the Meeting
other than those set forth in this Joint Proxy Statement. If other business
should properly come before the Meeting, proxies will be voted in accordance
with the judgment of the persons named in the accompanying proxy.

                             ADDITIONAL INFORMATION

            ADMINISTRATOR, PRINCIPAL UNDERWRITERS AND TRANSFER AGENT

    The Investment Manager also serves as each Fund's administrator and until
February 21, 2011 served as each Fund's transfer agent. Effective February 21,
2011, Rydex Fund Services, LLC (the "Transfer Agent"), located at 805 King Farm
Boulevard, Suite 600, Rockville, Maryland 20850 has served as transfer agent of
the Funds. The principal underwriter/distributor of the Funds (co-principal
underwriter/distributor with respect to SBL Fund) is Rydex Distributors, LLC
(the "Distributor"), located at 805 King Farm Boulevard, Suite 600, Rockville,
Maryland

                                     - 36 -


20850. The Transfer Agent and the Distributor are affiliates of the Investment
Manager because they are commonly held with the Investment Manager (and will
remain under common control after the Transaction). Information regarding the
fees paid by each Fund to the Investment Manager for administrative and transfer
agent services during the previous fiscal year is provided in Appendix B.
Information regarding the fees paid by each Fund to the Distributor (or any
predecessor affiliated distributor), as applicable, during the previous fiscal
year also is provided in Appendix C.

    The Transaction would affect the control of the Distributor and Transfer
Agent because they are commonly held with the Investment Manager. However,
shareholder approval is not required in order for the Distributor and Transfer
Agent to continue providing services to the Funds after the closing of the
Transaction. The Transaction will not affect the control of Security
Distributors, Inc., the co-principal underwriter for the series of SBL Fund, as
it is not under the common control of the immediate parent of the Investment
Manager. The Board has been assured that there will be no material change in the
nature or quality of the services provided by the Distributor and Transfer Agent
to each Fund due to the change in control.

                         SUB-ADVISERS FOR CERTAIN FUNDS

    Mainstream Investment Advisers, LLC ("Mainstream"), 101 West Spring Street,
New Albany, Indiana 47150, is currently the sub-adviser to Rydex|SGI Alpha
Opportunity Fund and Series Z (Alpha Opportunity Series). T. Rowe Price
Associates, Inc. ("T. Rowe Price"), 100 East Pratt Street, Baltimore, Maryland
2102, is currently the sub-adviser to Series N.

    The Investment Manager and the Funds have received an order from the SEC
that permits them to retain sub-advisers or amend the terms of an existing
sub-advisory agreement without shareholder approval, except when the sub-adviser
is affiliated with the Investment Manager. As a result, although the
sub-advisory agreements with Mainstream and T. Rowe Price will be terminated
upon completion of the Transaction, shareholder approval of the new sub-advisory
agreements with Mainstream and T. Rowe Price is not required under the SEC
exemptive order. At the Special Board Meeting, the Directors unanimously
approved the new sub-advisory agreements with Mainstream and T. Rowe Price.

                      AFFILIATIONS AND AFFILIATED BROKERAGE

    During the Funds' most recent fiscal year, the Funds paid no commissions on
portfolio brokerage transactions to brokers who may be deemed to be affiliated
persons of the Funds, the Investment Manager or affiliated persons of such
persons ("Affiliated Brokers").

                                OTHER INFORMATION

    Proxy materials, reports and other information filed by the Funds can be
inspected and copied at the Public Reference Facilities maintained by the SEC at
100

                                     - 37 -


F Street, NE, Washington, DC 20549. The SEC maintains an Internet web site (at
http://www.sec.gov) which contains other information about the Funds.

                               VOTING INFORMATION

    PROXY SOLICITATION. The principal solicitation of proxies will be by the
mailing of this Joint Proxy Statement on or about October 13, 2011, but proxies
may also be solicited by telephone and/or in person by representatives of the
Companies, regular employees of the Investment Manager or its affiliate(s), or
The Altman Group, a private proxy services firm. If we have not received your
vote as the date of the Meeting approaches, you may receive a telephone call
from these parties to ask for your vote. Arrangements will be made with
brokerage houses and other custodians, nominees, and fiduciaries to forward
proxies and proxy materials to their principals.

    COST OF THE MEETING. The cost of the Meeting, including the costs of
retaining The Altman Group, preparing and mailing of the notice, proxy statement
and proxy, and the solicitation of proxies, including reimbursement to
broker-dealers and others who forwarded proxy materials to their clients, will
be borne by Guggenheim Capital or its affiliates, and not the Funds. The
estimated cost of retaining The Altman Group is approximately $434,496.

    SHAREHOLDER VOTING. Shareholders of the Funds who own shares at the close of
business on October 3, 2011 will be entitled to notice of, and to vote at, the
Meeting. Shareholders are entitled to one vote for each share held and
fractional votes for fractional shares held. With respect to SBL Fund, the
number of shares of each Fund as to which voting instructions may be given to
the Company is determined by dividing the amount of the shareholder's insurance
product account value attributable to a Fund on the Record Date by the net asset
value per share of the Fund as of the same date. Fractional votes will be
counted.

    Information regarding the number of issued and outstanding shares of each
Fund as of the Record Date is provided in Appendix F, representing the same
number of votes for each of such Funds. The persons (or, with respect to SBL
Fund, the Insurance Companies) who are known to have owned beneficially 5% or
more of each Fund's outstanding shares as of the Record Date are listed in
Appendix G.

    With respect to SBL Fund, Insurance Companies that use shares of a Fund as
funding media for their insurance products will vote shares of the Fund held by
their separate accounts in accordance with the instructions received from owners
of the insurance products. An Insurance Company also will vote shares of a Fund
held in such separate account for which it has not received timely instructions
in the same proportion as it votes shares held by that separate account for
which it has received instructions. An Insurance Company whose separate account
invests in a Fund will vote shares by its general account and its subsidiaries
in the same proportion as other votes cast by its separate account in the
aggregate. As a result, a small number of insurance product owners could
determine the outcome of the vote if other owners fail to vote.

                                     - 38 -


    More than 50% of a Fund's shares, represented in person or by proxy, will
constitute a quorum for the Meeting and must be present for the transaction of
business at the Meeting with respect to the Fund. Only proxies that are voted,
abstentions and "broker non-votes" will be counted toward establishing a quorum.
"Broker non-votes" are shares held by a broker or nominee as to which
instructions have not been received from the beneficial owners or persons
entitled to vote, and the broker or nominee does not have discretionary voting
power.

    In the event that a quorum is not present at the Meeting, or a quorum is
present but sufficient votes to approve a Proposal are not received, the persons
named as proxies may propose one or more adjournments of the Meeting to permit
further solicitation of proxies. Any such adjournment will require the
affirmative vote of a majority of a Fund's shares represented at the Meeting in
person or by proxy (excluding abstentions and broker non-votes). The persons
named as proxies will vote those proxies that they are entitled to vote "FOR"
Proposals 1, 2 and 3 in favor of an adjournment of the Meeting, and will vote
those proxies required to be voted "AGAINST" Proposals 1, 2 and 3 against such
adjournment. A shareholder vote may be taken on any proposal prior to any such
adjournment if sufficient votes have been received and it is otherwise
appropriate.

    The person(s) named as proxies on the enclosed proxy card will vote in
accordance with your directions, if your proxy is received properly executed. If
we receive your proxy, and it is executed properly, but you give no voting
instructions with respect to any proposal, your shares will be voted "FOR"
Proposals 1, 2 and 3. The duly appointed proxies may, in their discretion, vote
upon such other matters as may properly come before the Meeting.

    In order that your shares may be represented at the Meeting, you are
requested to vote your shares by mail, Internet or telephone by following the
enclosed instructions. IF YOU VOTE BY TELEPHONE OR INTERNET, PLEASE DO NOT
RETURN YOUR PROXY CARD, UNLESS YOU LATER ELECT TO CHANGE YOUR VOTE. You may
revoke your proxy: (a) at any time prior to its exercise by written notice of
its revocation to the secretary of a Company prior to the Meeting; (b) by the
subsequent execution and timely return of another proxy prior to the Meeting
(following the methods noted above); or (c) by being present and voting in
person at the Meeting and giving oral notice of revocation to the chair of the
Meeting. However, attendance in-person at the Meeting, by itself, will not
revoke a previously-tendered proxy.

    REQUIRED VOTE. Approval of Proposal 1 and Proposal 3 requires the vote of a
"majority of the outstanding voting securities" of a Fund, which means the vote
of 67% or more of the shares that are present at the Meeting, provided that the
holders of more than 50% of the outstanding shares are present or represented by
proxy, or the vote of more than 50% of the Fund's outstanding shares, whichever
is less. Accordingly, assuming the presence of a quorum, abstentions and broker
non-votes have the effect of a negative vote on Proposal 1 and Proposal 3.

                                     - 39 -


    With respect to Proposal 2, each shareholder is entitled to vote that number
of shares owned as of the record date multiplied by the number of Directors to
be elected. A shareholder may cast all such votes for a single director or
distribute them among two or more directors. This method of voting for the
election of directors is commonly known as "cumulative voting." A plurality of
the combined votes cast at the Meeting by the shareholders of a Company is
sufficient to approve the election of a Director. Abstentions and broker
non-votes will have no effect on Proposal 2.

    The Current Investment Management Agreements will remain in place until the
completion of the Transaction, at which time, the Current Investment Management
Agreements will terminate and, subject to shareholder approval, the New
Investment Management Agreements will go into effect. As a result, if for some
reason the Transaction does not occur, the Current Investment Management
Agreements will not automatically terminate and will remain in effect, and the
New Investment Management Agreements will not be entered into, even if they have
been approved by Fund shareholders.

    If Proposal 1 is not approved by shareholders of any Fund, the Board will
evaluate other short-and long-term options, as previously discussed. If the
nominees are not elected, the current Directors will continue their current
terms. New Directors could be appointed in compliance with applicable law. With
respect to Proposal 3, should Series N's shareholders not approve the proposal
to amend Series N's fundamental policy on diversification of investments, Series
N's fundamental investment policy on diversification would continue to apply
unchanged.

    SHAREHOLDERS SHARING THE SAME ADDRESS. As permitted by law, only one copy of
this Joint Proxy Statement may be delivered to shareholders residing at the same
address, unless such shareholders have notified the Companies of their desire to
receive multiple copies of the shareholder reports and proxy statements that the
Companies send. If you would like to receive an additional copy, please contact
the Companies by writing to the Companies' address, or by calling the telephone
number shown on the front page of this Joint Proxy Statement. A Company will
then promptly deliver, upon request, a separate copy of this Joint Proxy
Statement to any shareholder residing at an address to which only one copy was
mailed. Shareholders wishing to receive separate copies of a Company's
shareholder reports and proxy statements in the future, and shareholders sharing
an address that wish to receive a single copy if they are receiving multiple
copies, should also send a request as indicated.

                              SHAREHOLDER PROPOSALS

    As a general matter, each Company does not hold annual meetings of
shareholders. Shareholders wishing to submit proposals for inclusion in a proxy
statement for a subsequent shareholders' meeting should send their written
proposal to the secretary of a Company, One Security Benefit Place, Topeka,
Kansas 66636-0001.

                                     - 40 -


    Proposals must be received a reasonable time before the Companies begin to
print and set the proxy materials in order to be considered for inclusion in the
proxy materials for the meeting. Timely submission of a proposal does not,
however, necessarily mean that the proposal will be included. Persons named as
proxies for any subsequent shareholders' meeting will vote in their discretion
with respect to proposals submitted on an untimely basis.

TO ENSURE THE PRESENCE OF A QUORUM AT THE SPECIAL MEETING, PROMPT EXECUTION AND
RETURN OF THE ENCLOSED PROXY IS REQUESTED. A SELF-ADDRESSED, POSTAGE-PAID
ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE, ALONG WITH INSTRUCTIONS ON HOW TO
VOTE OVER THE INTERNET OR BY TELEPHONE SHOULD YOU PREFER TO VOTE BY ONE OF THOSE
METHODS.

                                 By Order of the Boards of Directors,

                                 Richard M. Goldman
                                 President, Chairman of the Boards of Directors

                                     - 41 -


                                   APPENDIX A

                  CORPORATE STRUCTURE OF THE INVESTMENT MANAGER

The following sets forth the name and business address of each parent company of
the Investment Manager, and the basis of each parent company's control of the
Investment Manager as of September 20, 2011.

The Investment Adviser is an indirect wholly-owned subsidiary of an entity that
is managed by Guggenheim Partners, LLC ("Guggenheim Partners"). Guggenheim
Partners is a wholly-owned subsidiary of Guggenheim Capital, LLC ("Guggenheim
Capital"), 227 West Monroe Street, 48th Floor, Chicago, Illinois 60606. Sage
Assets, Inc., 5949 Sherry Lane, Suite 1900, Dallas, Texas 76225, a wholly-owned
subsidiary of Sammons Enterprises, Inc., 5949 Sherry Lane, Suite 1900, Dallas,
Texas 75225, is a control person of Guggenheim Partners as a result of its
equity ownership in excess of 25% (but less than 50%) of Guggenheim Capital.
Following the Transaction, the Investment Adviser will be an indirect
wholly-owned subsidiary of Guggenheim Capital.

                                       A-1


                                   APPENDIX B

                  FORMS OF NEW INVESTMENT MANAGEMENT AGREEMENTS

                         INVESTMENT MANAGEMENT AGREEMENT

    This Agreement, made and entered into this [ ] day of [ ], 2011 by and
between SECURITY EQUITY FUND, a Kansas corporation (hereinafter referred to as
the "Fund"), and SECURITY INVESTORS, LLC, a Kansas limited liability company
(hereinafter referred to as the "Adviser").

                               W I T N E S S E T H

    WHEREAS, the Fund is engaged in business as an open-end, management
investment company registered under the Investment Company Act of 1940 ("1940
Act"); and

    WHEREAS, the Adviser is willing to provide investment research and advice to
the Fund on the terms and conditions hereinafter set forth;

    NOW, THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties agree as follows:

    1.  EMPLOYMENT OF THE ADVISER. The Fund hereby employs the Adviser to act as
investment adviser to the Fund with respect to the investment of its assets and
to supervise and arrange for the purchase of securities of the Fund and the
sales of securities held in the portfolio of the Fund, subject always to the
supervision of the Board of Directors of the Fund (or a duly appointed committee
thereof), during the period and upon and subject to the terms and conditions
described herein. The Adviser agrees to maintain sufficient trained personnel
and equipment and supplies to perform its responsibilities under this Agreement
and in conformity with the current Prospectus(es) of the Fund and such other
reasonable standards of performance as the Fund may from time to time specify.

    The Adviser hereby accepts such employment and agrees to perform the
services required by this Agreement for the compensation herein provided.

    2.  ALLOCATION OF EXPENSES AND CHARGES.

        (a) Expenses of the Adviser. The Adviser shall pay all expenses in
    connection with the performance of its services under this Agreement, except
    as provided otherwise herein.

        (b) Expenses of the Fund. Anything in this Agreement to the contrary
    notwithstanding, the Fund shall pay or reimburse the Adviser for the payment
    of the following described expenses of the Fund whether or not billed to the
    Fund, the Adviser or any related entity:

           (i)    brokerage fees and commissions;

           (ii)   taxes;

                                       B-1


           (iii)  interest expenses;

           (iv)   any extraordinary expenses approved by the Board of Directors
    of the Fund; and

           (v)    distribution fees paid under the Fund's Class A, Class B
    and Class C Distribution Plans;

    and, in addition to those expenses set forth above, the Fund shall pay
    all of its expenses whether or not billed to the Fund, the Adviser or any
    related entity.

    (c) Expense Cap. For each of the Fund's full fiscal years that this
Agreement remains in force, the Adviser agrees that if total annual expenses of
each Series of the Fund identified below, exclusive of interest, taxes,
extraordinary expenses (such as litigation), brokerage fees and commissions, and
12b-1 fees paid under a Fund's Class A, Class B or Class C Distribution Plans,
but inclusive of the Adviser's compensation, exceeds the amount set forth below
(the "Expense Cap"), the Adviser shall contribute to such Series such funds or
waive such portion of its fee, adjusted monthly, as may be required to insure
that the total annual expenses of the Series shall not exceed the Expense Cap.
If this Agreement shall be effective for only a portion of a Series' fiscal
year, then the maximum annual expenses shall be prorated for such portion.

                                   EXPENSE CAP

    Large Cap Concentrated Growth Series, Class A, B and C - 1.75%

3.  COMPENSATION OF THE ADVISER.

    (a) As compensation for the investment advisory services to be rendered by
the Adviser to the MSCI EAFE Equal Weight Series, for each of the years this
Agreement is in effect, the MSCI EAFE Equal Weight Series shall pay the Adviser
an annual fee equal to 0.70% of its average daily net assets. Such fee shall be
calculated daily and payable monthly. As compensation for the investment
advisory services to be rendered by the Adviser to Small Cap Value Series, for
each of the years this Agreement is in

                                       B-2


effect, Small Cap Value Series shall pay the Adviser an annual fee equal to
1.00% of its average daily net assets. Such fee shall be calculated daily and
payable monthly. As compensation for the investment advisory services to be
rendered by the Adviser to Large Cap Core Series, Large Cap Concentrated Growth
Series and Mid Cap Value Institutional Fund, for each of the years this
Agreement is in effect, each of the foregoing shall pay the Adviser an annual
fee equal to 0.75% of its respective average daily net assets. As compensation
for the investment advisory services to be rendered by the Adviser to Small Cap
Growth Series, for each of the years this Agreement is in effect, Small Cap
Growth Series shall pay the Adviser an annual fee equal to 0.85% of average
daily net assets. Such fee shall be calculated daily and payable monthly. As
compensation for the investment advisory services to be rendered by the Adviser
to Mid Cap Value Series for each of the years this Agreement is in effect, the
Mid Cap Value Series shall pay the Adviser an annual fee equal to 1.00% of its
average daily net assets of $200 million or less; plus an annual rate of 0.75%
of its average daily net assets of more than $200 million. Such fee shall be
calculated daily and payable monthly. As compensation for the investment
advisory services to be rendered by the Adviser to All Cap Value Series for each
of the years this Agreement is in effect, the All Cap Value Series shall pay the
Adviser an annual fee equal to 0.70% of its average daily net assets. Such fee
shall be calculated daily and payable monthly. As compensation for the
investment advisory services to be rendered by the Adviser to Alpha Opportunity
Series for each of the years this Agreement is in effect, the Alpha Opportunity
Series shall pay the Adviser an annual fee equal to 1.25% of its average daily
net assets. Such fee shall be calculated daily and payable monthly. If this
Agreement shall be effective for only a portion of a year, then the Adviser's
compensation for said year shall be prorated for such portion. For purposes of
this Section 3, the value of the net assets of each Series shall be computed in
the same manner at the end of the business day as the value of such net assets
is computed in connection with the determination of the net asset value of the
Fund's shares as described in the Fund's prospectus(es).

    (b) For each of the Fund's fiscal years this Agreement remains in force, the
Adviser agrees that if total annual expenses of any Series of the Fund,
exclusive of interest and taxes, extraordinary expenses (such as litigation) and
distribution fees paid under the Fund's Class A, Class B and Class C
Distribution Plans, but inclusive of the Adviser's compensation, exceed any
expense limitation imposed by state securities law or regulation in any state in
which shares of such Series of the Fund are then qualified for sale, as such
regulations may be amended from time to time, the Adviser will contribute to
such Series such funds or waive such portion of its fee, adjusted monthly, as
may be requisite to insure that such annual expenses will not exceed any such
limitation. If this Agreement shall be effective for only a portion of any
Series' fiscal year, then the maximum annual expenses shall be prorated for such
portion. Brokerage fees and commissions incurred in connection with the purchase
or sale of any securities by a Series shall not be deemed to be expenses within
the meaning of this paragraph (b).

4.  INVESTMENT ADVISORY DUTIES.

    (a) Investment Advice. The Adviser shall regularly provide the Fund with
investment research, advice and supervision, continuously furnish an investment
program, recommend which securities shall be purchased and sold and what portion
of the assets of the Fund shall be held uninvested and arrange for the purchase
of securities and other investments for the Fund and the sale of securities and
other investments held in the portfolio of the Fund. All investment advice
furnished by the Adviser to the Fund under this Section 4 shall at all times
conform to any requirements imposed by the provisions of the Fund's Articles of
Incorporation and Bylaws, the 1940 Act, the Investment Advisors Act of 1940 and
the rules and regulations promulgated thereunder, and other applicable

                                       B-3


provisions of law, and the terms of the registration statements of the Fund
under the Securities Act of 1933 ("1933 Act") and/or the 1940 Act, as may be
applicable at the time, all as from time to time amended. The Adviser shall
advise and assist the officers or other agents of the Fund in taking such steps
as are necessary or appropriate to carry out the decisions of the Board of
Directors of the Fund (and any duly appointed committee thereof) with regard to
the foregoing matters and the general account of the Fund's business.

    (b) Subadvisers. Subject to the provisions of the 1940 Act and any
applicable exemptions thereto, the Adviser is authorized, but is under no
obligation, to enter into sub-advisory agreements (the "Sub-Advisory
Agreements") with one or more subadvisers (each a "Subadviser") to provide
investment advisory services to any series of the Fund. Each Subadviser shall
have investment discretion with respect to the assets of the series assigned to
that Subadviser by the Adviser. Consistent with the provisions of the 1940 Act
and any applicable exemption thereto, the Adviser may enter into Sub-Advisory
Agreements or amend Sub-Advisory Agreements without the approval of the
shareholders of the affected series.

    (c)  PORTFOLIO TRANSACTIONS AND BROKERAGE.

         (i) Transactions in portfolio securities shall be effected by the
    Adviser, through brokers or otherwise (including affiliated brokers),
    in the manner permitted in this Section 4 and in such manner as the
    Adviser shall deem to be in the best interests of the Fund after
    consideration is given to all relevant factors.

         (ii) In reaching a judgment relative to the qualification of a broker
    to obtain the best execution of a particular transaction, the Adviser may
    take into account all relevant factors and circumstances, including the size
    of any contemporaneous market in such securities; the importance to the Fund
    of speed and efficiency of execution; whether the particular transaction is
    part of a larger intended change of portfolio position in the same
    securities; the execution capabilities required by the circumstances of the
    particular transaction; the capital required by the transaction; the overall
    capital strength of the broker; the broker's apparent knowledge of or
    familiarity with sources from or to whom such securities may be purchased or
    sold; as well as the efficiency, reliability and confidentiality with which
    the broker has handled the execution of prior similar transactions.

         (iii) Subject to any statements concerning the allocation of brokerage
    contained in the Fund's Prospectus(es) or Statement(s) of Additional
    Information, the Adviser is authorized to direct the execution of portfolio
    transactions for the Fund to brokers who furnish investment information or
    research service to the Adviser. Such allocations shall be in such amounts
    and proportions as the Adviser may determine. If the transaction is directed
    to a broker providing brokerage and research services to the Adviser, the

                                       B-4


    commission paid for such transaction may be in excess of the commission
    another broker would have charged for effecting that transaction, if the
    Adviser shall have determined in good faith that the commission is
    reasonable in relation to the value of the brokerage and research services
    provided, viewed in terms of either that particular transaction or the
    overall responsibilities of the Adviser with respect to all accounts as to
    which it now or hereafter exercises investment discretion For purposes of
    the immediately preceding sentence, "providing brokerage and research
    services" shall have the meaning generally given such terms or similar terms
    under Section 28(e)(3) of the Securities Exchange Act of 1934, as amended.

         (iv) In the selection of a broker for the execution of any transaction
    not subject to fixed commission rates, the Adviser shall have no duty or
    obligation to seek advance competitive bidding for the most favorable
    negotiated commission rate to be applicable to such transaction, or to
    select any broker solely on the basis of its purported or "posted"
    commission rates.

         (v) In connection with transactions on markets other than national or
    regional securities exchanges, the Fund will deal directly with the selling
    principal or market maker without incurring charges for the services of a
    broker on its behalf unless, in the best judgment of the Adviser, better
    price or execution can be obtained by utilizing the services of a broker.

         (d) Limitation of Liability of the Adviser with Respect to Rendering
    Investment Advisory Services. So long as the Adviser shall give the Fund
    the benefit of its best judgment and effort in rendering investment
    advisory services hereunder, the Adviser shall not be liable for any errors
    of judgment or mistake of law, or for any loss sustained by reason of the
    adoption of any investment policy or the purchase, sale or retention of any
    security on its recommendation shall have been based upon its own
    investigation and research or upon investigation and research made by any
    other individual, firm or corporation, if such recommendation shall have
    been made and such other individual, firm or corporation shall have been
    selected with due care and in good faith. Nothing herein contained shall,
    however, be construed to protect the Adviser against any liability to the
    Fund or its shareholders by reason of willful misfeasance, bad faith or
    gross negligence in the performance of its duties or by reason of its
    reckless disregard of its obligations and duties under this Section 4. As
    used in this Section 4, the "Adviser" shall include directors, officers and
    employees of the Adviser, as well as the Adviser itself.

    5.  OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall prevent
the Adviser or any officer thereof from acting as investment adviser for any
other person, firm or corporation, nor shall it in any way limit or restrict the
Adviser or any of its directors, officers, stockholders or employees from
buying, selling, or trading any securities for their own accounts or for the
accounts of others for whom they may be acting; provided, however, that the
Adviser expressly represents that it will undertake

                                       B-5


no activities which, in its judgment, will conflict with the performance of its
obligations to the Fund under this Agreement. The Fund acknowledges that the
Adviser acts as investment adviser to other investment companies, and it
expressly consents to the Adviser acting as such; provided, however, that if in
the opinion of the Adviser, particular securities are consistent with the
investment objectives of, and desirable purchases or sales for the portfolios of
one or more of such other investment companies or series of such companies at
approximately the same time, such purchases or sales will be made on a
proportionate basis if feasible, and if not feasible, then on a rotating or
other equitable basis.

    6.  AMENDMENT. This Agreement may be amended at any time, without
shareholder approval to the extent permitted by applicable law, by a writing
signed by each of the parties hereto. Any change in the Fund's registration
statements or other documents of compliance or in the forms relating to any
plan, program or service offered by its current Prospectus(es) which would
require a change in the Adviser's obligations hereunder shall be subject to the
Adviser's approval, which shall not be unreasonably withheld.

    7.  DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
force with respect to a Series for an initial term of up to two years, and then
for successive 12- month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote of a
majority of the entire Board of Directors of the Fund, or by the vote of the
holders of a majority of the outstanding voting securities of each series of the
Fund (as defined in the 1940 Act), and (b) the vote of a majority of the
directors of the Fund who are not parties to this Agreement or interested
persons (as such terms are defined in the Investment Company Act of 1940) of any
such party cast in person at a meeting of such directors called for the purpose
of voting upon such approval. In the event a majority of the outstanding shares
of one series vote for continuance of the Agreement, it will be continued for
that series even though the Agreement is not approved by either a majority of
the outstanding shares of any other series or by a majority of outstanding
shares of the Fund.

    Upon this Agreement becoming effective, any previous Agreement between the
Fund and the Adviser providing for investment advisory services shall
concurrently terminate, except that such termination shall not affect any fees
accrued and guarantees of expenses with respect to any period prior to
termination.

    This Agreement may be terminated at any time as to any series of the Fund
without payment of any penalty, by the Fund upon the vote of a majority of the
Fund's Board of Directors or, by a majority of the outstanding voting securities
of the applicable series of the Fund, or by the Adviser, in each case on sixty
(60) days' written notice to the other party. This Agreement shall automatically
terminate in the event of its assignment (as such term is defined in the 1940
Act).

    8.  SEVERABILITY. If any clause or provision of this Agreement is determined
to be illegal, invalid or unenforceable under present or future laws effective
during the term

                                       B-6


hereof, then such clause or provision shall be considered severed herefrom and
the remainder of this Agreement shall continue in full force and effect.

    9.  APPLICABLE LAW. This Agreement shall be subject to and construed in
accordance with the laws of the State of Kansas.

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereto duly authorized on the day, month
and year first above written.

                                           SECURITY EQUITY FUND

                                           By:
                                              --------------------------------
                                              Name: Richard M. Goldman
                                              Title: President

ATTEST:

---------------------------------
Name: Amy J. Lee
Title: Secretary

                                           SECURITY INVESTORS, LLC

                                           By:
                                              --------------------------------
                                              Name: Richard M. Goldman
                                              Title: President

ATTEST:

--------------------------------
Name: Amy J. Lee
Title: Secretary

                                       B-7


                         INVESTMENT MANAGEMENT AGREEMENT

    This Agreement, made and entered into as of this [ ] day of [ ], 2011 by and
between SECURITY LARGE CAP VALUE FUND, a Kansas corporation (hereinafter
referred to as the "Fund"), and SECURITY INVESTORS, LLC, a limited liability
company (hereinafter referred to as the "Adviser").

                               W I T N E S S E T H

    WHEREAS, the Fund is engaged in business as an open-end management
investment company registered under the Investment Company Act of 1940 ("1940
Act"); and

    WHEREAS, the Fund is authorized to issue shares of capital stock in separate
Series, with each such Series representing interests in a separate portfolio of
securities and other assets; and

    WHEREAS, the Fund currently offers shares in two separate series, including
the Large Cap Value Series and the Large Cap Value Institutional Series, such
series together with all other series subsequently established by the Fund with
respect to which the Fund desires to retain the Adviser to render investment
advisory services hereunder and with respect to which the Adviser is willing so
to do, being herein collectively referred to as the "Series"; and

    WHEREAS, the Adviser is willing to provide investment research and advice to
the Fund on the terms and conditions hereinafter set forth;

    NOW THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties agree as follows:

    1.  EMPLOYMENT OF THE ADVISER. The Fund hereby employs the Adviser to act as
investment adviser to the Fund with respect to the investment of its assets and
to supervise and arrange for the purchase of securities of the Fund and the
sales of securities held in the portfolio of the Fund, subject always to the
supervision of the Board of Directors of the Fund (or a duly appointed committee
thereof), during the period and upon and subject to the terms and conditions
described herein. The Adviser agrees to maintain sufficient trained personnel
and equipment and supplies to perform its responsibilities under this Agreement
and in conformity with the current Prospectus(es) of the Fund and such other
reasonable standards of performance as the Fund may from time to time specify.

    The Adviser hereby accepts such employment and agrees to perform the
services required by this Agreement for the compensation herein provided.

    2.  ALLOCATION OF EXPENSES AND CHARGES.

         (a) Expenses of the Adviser. The Adviser shall pay all expenses in
    connection with the performance of its services under this Agreement, except
    as provided otherwise herein.

                                       B-8


    (b) Expenses of the Fund. Anything in this Agreement to the contrary
notwithstanding, the Fund shall pay or reimburse the Adviser for the payment of
the following described expenses of the Fund whether or not billed to the Fund,
the Adviser or any related entity;

        (i)     brokerage fees and commissions;

        (ii)    taxes;

        (iii)   interest expenses;

        (iv)    any extraordinary expenses approved by the Board of Directors of
    the Fund; and

        (v)     distribution fees paid under the Fund's Class A, Class B and
    Class C Distribution Plans;

    and, in addition to those expenses set forth above, the Fund shall pay all
    of its expenses whether or not billed to the Fund, the Adviser or any
    related entity.

3.  COMPENSATION OF THE ADVISER.

    (a) As compensation for the investment advisory services to be rendered by
the Adviser to the Fund for each of the years this Agreement is in effect, the
Fund shall pay the Adviser an annual fee equal to 0.65% of the Fund's average
daily net assets. Such fee shall be calculated daily and payable monthly. If
this Agreement shall be effective for only a portion of a year, then the
Adviser's compensation for said year shall be prorated for such portion. For
purposes of this Section 3, the value of the net assets of the Fund shall be
computed in the same manner at the end of the business day as the value of such
net assets is computed in connection with the determination of the net asset
value of the Fund's shares as described in the Fund's Prospectus(es).

    (b) For each of the Fund's fiscal years that this Agreement remains in
force, the Adviser agrees that if total annual expenses of any Series of the
Fund, exclusive of interest and taxes, extraordinary expenses (such as
litigation), distribution fees paid by the Fund under the Fund's Class A, Class
B and Class C Distribution Plans, but inclusive of the Adviser's compensation,
exceed any expense limitation imposed by state securities law or regulation in
any state in which shares of such Series of the Fund are then qualified for
sale, as such regulations may be amended from time to time, the Adviser will
contribute to such Series such funds or waive such portion of its fee, adjusted
monthly, as may be requisite to insure that such annual expenses will not exceed
any such limitation. If this Agreement shall be effective for only a portion of
any fiscal year, then the maximum annual expenses shall be prorated for such
portion. Brokerage fees and commissions incurred in connection with the purchase
or sale of any securities by the Fund shall not be deemed to be expenses within
the meaning of this paragraph (b).

                                       B-9


4.  INVESTMENT ADVISORY DUTIES.

    (a) Investment Advice. The Adviser shall regularly provide the Fund with
investment research, advice and supervision, continuously furnish an investment
program, recommend which securities shall be purchased and sold and what portion
of the assets of the Fund shall be held uninvested and arrange for the purchase
of securities and other investments for the Fund and the sale of securities and
other investments held in the portfolio of the Fund. All investment advice
furnished by the Adviser to the Fund under this Section 4 shall at all times
conform to any requirements imposed by the provisions of the Fund's Articles of
Incorporation and Bylaws, the 1940 Act, the Investment Advisors Act of 1940 and
the rules and regulations promulgated thereunder, and other applicable
provisions of law, and the terms of the registration statement of the Fund under
the Securities Act of 1933 ("1933 Act") and/or the 1940 Act, as may be
applicable at the time, all as from time to time amended The Adviser shall
advise and assist the officers or other agents of the Fund in taking such steps
as are necessary or appropriate to carry out the decisions of the Board of
Directors of the Fund (and any duly appointed committee thereof) with regard to
the foregoing matters and the general account of the Fund's business.

    (b) Subadvisers. Subject to the provisions of the 1940 Act and any
applicable exemptions thereto, the Adviser is authorized, but is under no
obligation, to enter into sub-advisory agreements (the "Sub-Advisory
Agreements") with one or more subadvisers (each a "Subadviser") to provide
investment advisory services to any series of the Fund. Each Subadviser shall
have investment discretion with respect to the assets assigned to that
Subadviser by the Adviser. Consistent with the provisions of the 1940 Act and
any applicable exemption thereto, the Adviser may enter into Sub-Advisory
Agreements or amend Sub-Advisory Agreements without the approval of the
shareholders of the affected series.

    (c) Portfolio Transactions and Brokerage.
        ------------------------------------

        (i) Transactions in portfolio securities shall be effected by the
    Adviser, through brokers or otherwise (including affiliated brokers), in the
    manner permitted in this Section 4 and in such manner as the Adviser shall
    deem to be in the best interests of the Fund after consideration is given to
    all relevant factors.

        (ii) In reaching a judgment relative to the qualification of a broker
    to obtain the best execution of a particular transaction, the Adviser may
    take into account all relevant factors and circumstances, including the
    size of any contemporaneous market in such securities; the importance to
    the Fund of speed and efficiency of execution; whether the particular
    transaction is part of a larger intended change of portfolio position in
    the same securities; the Execution capabilities required by the
    circumstances of the particular transaction; the capital required by the
    transaction; the overall capital strength

                                      B-10


    of the broker; the broker's apparent knowledge of or familiarity with
    sources from or to whom such securities may be purchased or sold; as well as
    the efficiency, reliability and confidentiality with which the broker has
    handled the execution of prior similar transactions.

         (iii) Subject to any statements concerning the allocation of brokerage
    contained in the Fund's Prospectus(es) or Statement(s) of Additional
    Information, the Adviser is authorized to direct the execution of portfolio
    transactions for the Fund to brokers who furnish investment information or
    research service to the Adviser. Such allocations shall be in such amounts
    and proportions as the Adviser may determine. If the transaction is directed
    to a broker providing brokerage and research services to the Adviser, the
    commission paid for such transaction may be in excess of the commission
    another broker would have charged for effecting that transaction, if the
    Adviser shall have determined in good faith that the commission is
    reasonable in relation to the value of the brokerage and research services
    provided, viewed in terms of either that particular transaction or the
    overall responsibilities of the Adviser with respect to all accounts as to
    which it now or hereafter exercises investment discretion. For purposes of
    the immediately preceding sentence, "providing brokerage and research
    services" shall have the meaning generally given such terms or similar terms
    under Section 28(e)(3) of the Securities Exchange Act of 1934, as amended.

         (iv) In the selection of a broker for the execution of any
    transaction not subject to fixed commission rates, the Adviser shall have
    no duty or obligation to seek advance competitive bidding for the most
    favorable negotiated commission rate to be applicable to such transaction,
    or to select any broker solely on the basis of its purported or "posted"
    commission rates.

         (v) In connection with transactions on markets other than
    national or regional securities exchanges, the Fund will deal directly with
    the selling principal or market maker without incurring charges for the
    services of a broker on its behalf unless, in the best judgment of the
    Adviser, better price or execution can be obtained by utilizing the
    services of a broker.

    (d) Limitation of Liability of the Adviser with Respect to Rendering
Investment Advisory Services. So long as the Adviser shall give the Fund the
benefit of its best judgment and effort in rendering investment advisory
services hereunder, the Adviser shall not be liable for any errors of judgment
or mistake of law, or for any loss sustained by reason of the adoption of any
investment policy or the purchase, sale or retention of any security on its
recommendation, whether or not such recommendation shall have been based upon
its own investigation and research or upon investigation and research made by
any other individual, firm or corporation, if such recommendation shall have
been made and such other individual, firm or corporation shall have been
selected with due care and in good faith. Nothing herein contained, however,
shall be construed to

                                      B-11


protect the Adviser against any liability to the Fund or its shareholders by
reason of willful misfeasance, bad faith or gross negligence in the performance
of its duties or by reason of its reckless disregard of its obligations and
duties under this Section 4. As used in this Section 4, "the Adviser" shall
include directors, officers and employees of the Adviser, as well as the Adviser
itself.

    5.  OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall prevent
the Adviser or any officer thereof from acting as investment adviser for any
other person, firm or corporation, nor shall it in any way limit or restrict the
Adviser or any of its directors, officers, stockholders or employees from
buying, selling, or trading any securities for its own accounts or for the
accounts of others for whom it may be acting; provided, however, that the
Adviser expressly represents that it will undertake no activities which, in its
judgment, will conflict with the performance of its obligations to the Fund
under this Agreement. The Fund acknowledges that the Adviser acts as investment
adviser to other investment companies, and it expressly consents to the Adviser
acting as such; provided, however, that if in the opinion of the Adviser,
particular securities are consistent with the investment objectives of, and
desirable purchases or sales for the portfolios of one or more of such other
investment companies or series of such companies at approximately the same time,
such purchases or sales will be made on a proportionate basis if feasible, and
if not feasible, then on a rotating or other equitable basis.

    6.  AMENDMENT. This Agreement may be amended at any time, without
shareholder approval to the extent permitted by applicable law, by a writing
signed by each of the parties hereto. Any change in the Fund's registration
statements or other documents of compliance or in the forms relating to any
plan, program or service offered by its current Prospectus which would require a
change in the Adviser's obligations hereunder shall be subject to the Adviser's
approval, which shall not be unreasonably withheld.

    7.  DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
force with respect to a Series for an initial term of up to two years, and then
for successive 12- month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote of
the majority of the entire Board of Directors of the Fund, and the vote of the
majority of those directors who are not parties to this Agreement or interested
persons (as such terms are defined in the 1940 Act) of any such party cast in
person at a meeting called for the purpose of voting on such approval, or (b) by
the vote of a majority of those directors who are not parties to this Agreement
or interested persons (as such terms are defined in the 1940 Act) of any such
party cast in person at a meeting called for the purpose of voting on such
approval.

    Upon this Agreement becoming effective, any previous Agreement between the
Fund and the Adviser providing for investment advisory services shall
concurrently terminate, except that such termination shall not affect any fees
accrued and guarantees of expenses with respect to any period prior to
termination.

                                      B-12


    This Agreement may be terminated at any time without payment of any penalty,
by the Fund upon the vote of a majority of the Fund's Board of Directors or, by
a majority of the outstanding voting securities of the Fund, or by the Adviser,
in each case on sixty (60) days' written notice to the other party. This
Agreement shall automatically terminate in the event of its assignment (as such
term is defined in the 1940 Act).

    8.  SEVERABILITY. If any clause or provision of this Agreement is determined
to be illegal, invalid or unenforceable under present or future laws effective
during the term hereof, then such clause or provision shall be considered
severed herefrom and the remainder of this Agreement shall continue in full
force and effect.

    9.  APPLICABLE LAW. This Agreement shall be subject to and construed in
accordance with the laws of the State of Kansas.

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereto duly authorized on this [ ] day of
[ ], 2011.

                                          SECURITY LARGE CAP VALUE FUND

                                          By:
                                             ---------------------------------
                                             Name: Richard M. Goldman
                                             Title: President

ATTEST:

-------------------------------------
Name: Amy J. Lee
Title: Secretary

                                          SECURITY INVESTORS, LLC

                                          By:
                                             ---------------------------------
                                             Name: Richard M. Goldman
                                             Title: President

ATTEST:

--------------------------------------
Name: Amy J. Lee
Title: Secretary

                                      B-13


                         INVESTMENT MANAGEMENT AGREEMENT

    This Agreement, made and entered into as of this [ ] day of [ ], 2011, by
and between SECURITY MID CAP GROWTH FUND, a Kansas corporation (hereinafter
referred to as the "Fund"), and SECURITY INVESTORS, LLC, a limited liability
company (hereinafter referred to as "SI").

                               W I T N E S S E T H

    WHEREAS, the Fund is engaged in business as an open-end management
investment company registered under the Investment Company Act of 1940 ("1940
Act"); and

    WHEREAS, SI is willing to provide investment research and advice to the Fund
on the terms and conditions hereinafter set forth;

    NOW THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties agree as follows:

    1.  EMPLOYMENT OF SI. The Fund hereby employs SI to act as investment
adviser to the Fund with respect to the investment of its assets and to
supervise and arrange for the purchase of securities for the Fund and the sale
of securities held in the portfolio of the Fund, subject always to the
supervision of the Board of Directors of the Fund (or a duly appointed committee
thereof), during the period and upon and subject to the terms and conditions
described herein. SI agrees to maintain sufficient trained personnel and
equipment and supplies to perform its responsibilities under this Agreement and
in conformity with the current Prospectus of the Fund and such other reasonable
standards of performance as the Fund may from time to time specify.

    SI hereby accepts such employment and agrees to perform the services
required by this Agreement for the compensation herein provided.

    2.  ALLOCATION OF EXPENSES AND CHARGES.

         (a) Expenses of SI. SI shall pay all expenses in connection with the
    performance of its services under this Agreement, except as provided
    otherwise herein.

         (b) Expenses of the Fund. Anything in this Agreement to the contrary
    notwithstanding, the Fund shall pay or reimburse SI for the payment of the
    following described expenses of the Fund whether or not billed to the Fund,
    SI or any related entity;

             (i)    brokerage fees and commissions;

             (ii)   taxes;

             (iii)  interest expenses;

             (iv)  any extraordinary expenses approved by the Board of Directors
         of the Fund; and

                                      B-14


             (v)   distribution fees paid under the Fund's Class A, Class B and
         Class C Distribution Plans;

         and, in addition to those expenses set forth above, the Fund shall pay
         all of its expenses whether or not billed to the Fund, SI or any
         related entity.

    3.  COMPENSATION OF SI.

         (a) As compensation for the investment advisory services to be
    rendered by SI to the Fund for each of the years this Agreement is in
    effect, the Fund shall pay SI an annual fee equal to 0.75% of the Fund's
    average daily net assets. Such fee shall be calculated daily and payable
    monthly. If this Agreement shall be effective for only a portion of a year,
    then SI's compensation for said year shall be prorated for such portion. For
    purposes of this Section 3, the value of the net assets of the Fund shall be
    computed in the same manner at the end of the business day as the value of
    such net assets is computed in connection with the determination of the net
    asset value of the Fund's shares as described in the Fund's prospectus.

        (b) For each of the Fund's fiscal years that this Agreement remains in
    force, SI agrees that if total annual expenses of the Fund, exclusive of
    interest and taxes, extraordinary expenses (such as litigation),
    distribution fees paid under the Fund's Class A, Class B and Class C
    Distribution Plans, but inclusive of SI's compensation, exceed any expense
    limitation imposed by state securities law or regulation in any state in
    which shares of the Fund are then qualified for sale, as such regulations
    may be amended from time to time, SI will contribute to the Fund such funds
    or waive such portion of its fee, adjusted monthly, as may be requisite to
    insure that such annual expenses will not exceed any such limitation. If
    this Agreement shall be effective for only a portion of any fiscal year,
    then the maximum annual expenses shall be prorated for such portion.
    Brokerage fees and commissions incurred in connection with the purchase or
    sale of any securities by the Fund shall not be deemed to be expenses within
    the meaning of this paragraph (b).

    4. INVESTMENT ADVISORY DUTIES.

         (a) Investment Advice. SI shall regularly provide the Fund with
    investment research, advice and supervision, continuously furnish an
    investment program, recommend which securities shall be purchased and sold
    and what portion of the assets of the Fund shall be held uninvested and
    arrange for the purchase of securities and other investments for the Fund
    and the sale of securities and other investments held in the portfolio of
    the Fund. All investment advice furnished by SI to the Fund under this
    Section 4 shall at all times conform to any requirements imposed by the
    provisions of the Fund's Articles of Incorporation and Bylaws, the 1940 Act,
    the Investment Advisors Act of 1940 and the rules and regulations
    promulgated thereunder, and other applicable provisions of law, and the
    terms of the registration statement of the Fund under the Securities Act of
    1933 ("1933 Act")

                                      B-15


    and/or the 1940 Act, as may be applicable at the time, all as from time to
    time amended SI shall advise and assist the officers or other agents of the
    Fund in taking such steps as are necessary or appropriate to carry out the
    decisions of the Board of Directors of the Fund (and any duly appointed
    committee thereof) with regard to the foregoing matters and the general
    account of the Fund's business.

         (b)  Subadvisers. Subject to the provisions of the 1940 Act and any
    applicable exemptions thereto, SI is authorized, but is under no obligation,
    to enter into sub-advisory agreements (the "Sub-Advisory Agreements") with
    one or more subadvisers (each a "Subadviser") to provide investment advisory
    services to the Fund, or any series thereof. Each Subadviser shall have
    investment discretion with respect to the assets assigned to that Subadviser
    by SI. Consistent with the provisions of the 1940 Act and any applicable
    exemption thereto, SI may enter into Sub-Advisory Agreements or amend
    Sub-Advisory Agreements without the approval of the shareholders of the
    Fund, or series thereof as applicable.

         (c)  Portfolio Transactions and Brokerage.
              -------------------------------------

              (i) Transactions in portfolio securities shall be effected by SI,
         through brokers or otherwise (including affiliated brokers), in the
         manner permitted in this Section 4 and in such manner as SI shall deem
         to be in the best interests of the Fund after consideration is given to
         all relevant factors.

              (ii) In reaching a judgment relative to the qualification
         of a broker to obtain the best execution of a particular transaction,
         SI may take into account all relevant factors and circumstances,
         including the size of any contemporaneous market in such securities;
         the importance to the Fund of speed and efficiency of execution;
         whether the particular transaction is part of a larger intended change
         of portfolio position in the same securities; the execution
         capabilities required by the circumstances of the particular
         transaction; the capital required by the transaction; the overall
         capital strength of the broker; the broker's apparent knowledge of or
         familiarity with sources from or to whom such securities may be
         purchased or sold; as well as the efficiency, reliability and
         confidentiality with which the broker has handled the execution of
         prior similar transactions.

              (iii) Subject to any statements concerning the allocation of
         brokerage contained in the Fund's Prospectus or Statement of Additional
         Information, SI is authorized to direct the execution of portfolio
         transactions for the Fund to brokers who furnish investment information
         or research service to SI. Such allocations shall be in such amounts
         and proportions as SI may determine. If the transaction is directed to
         a broker providing brokerage and research services to SI, the
         commission paid for such transaction may be in excess of the commission
         another broker would have charged for effecting that transaction, if SI
         shall have determined in good faith that the commission is

                                      B-16


         reasonable in relation to the value of the brokerage and research
         services provided, viewed in terms of either that particular
         transaction or the overall responsibilities of SI with respect to all
         accounts as to which it now or hereafter exercises investment
         discretion. For purposes of the immediately preceding sentence,
         "providing brokerage and research services" shall have the meaning
         generally given such terms or similar terms under Section 28(e)(3) of
         the Securities Exchange Act of 1934, as amended.

              (iv) In the selection of a broker for the execution of any
         transaction not subject to fixed commission rates, SI shall have no
         duty or obligation to seek advance competitive bidding for the most
         favorable negotiated commission rate to be applicable to such
         transaction, or to select any broker solely on the basis of its
         purported or "posted" commission rates.

              (v) In connection with transactions on markets other than
         national or regional securities exchanges, the Fund will deal directly
         with the selling principal or market maker without incurring charges
         for the services of a broker on its behalf unless, in the best judgment
         of SI, better price or execution can be obtained by utilizing the
         services of a broker.

         (d) Limitation of Liability of SI with Respect to Rendering
    Investment Advisory Services. So long as SI shall give the Fund the
    benefit of its best judgment and effort in rendering investment advisory
    services hereunder, SI shall not be liable for any errors of judgment or
    mistake of law, or for any loss sustained by reason of the adoption of any
    investment policy or the purchase, sale or retention of any security on
    its recommendation, whether or not such recommendation shall have been
    based upon its own investigation and research or upon investigation and
    research made by any other individual, firm or corporation, if such
    recommendation shall have been made and such other individual, firm or
    corporation shall have been selected with due care and in good faith.
    Nothing herein contained, however, shall be construed to protect SI
    against any liability to the Fund or its shareholders by reason of willful
    misfeasance, bad faith or gross negligence in the performance of its
    duties or by reason of its reckless disregard of its obligations and
    duties under this Section 4. As used in this Section 4, "SI" shall include
    directors, officers and employees of SI, as well as SI itself.

    5.  OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall
prevent SI or any officer thereof from acting as investment adviser for any
other person, firm or corporation, nor shall it in any way limit or restrict SI
or any of its directors, officers, stockholders or employees from buying,
selling, or trading any securities for its own accounts or for the accounts of
others for whom it may be acting; provided, however, that SI expressly
represents that it will undertake no activities which, in its judgment, will
conflict with the performance of its obligations to the Fund under this
Agreement. The Fund acknowledges that SI acts as investment adviser to other
investment companies, and it expressly consents to SI acting as such; provided,

                                      B-17


however, that if in the opinion of SI, particular securities are consistent with
the investment objectives of, and desirable purchases or sales for the
portfolios of one or more of such other investment companies or series of such
companies at approximately the same time, such purchases or sales will be made
on a proportionate basis if feasible, and if not feasible, then on a rotating or
other equitable basis.

    6.  AMENDMENT. This Agreement may be amended at any time, without
shareholder approval to the extent permitted by applicable law, by a writing
signed by each of the parties hereto Any change in the Fund's registration
statements or other documents of compliance or in the forms relating to any
plan, program or service offered by its current Prospectus which would require a
change in SI's obligations hereunder shall be subject to SI's approval, which
shall not be unreasonably withheld.

    7.  DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
force with respect to the Fund for an initial term of up to two years, and then
for successive 12- month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote of
the majority of the entire Board of Directors of the Fund, and the vote of the
majority of those directors who are not parties to this Agreement or interested
persons (as such terms are defined in the 1940 Act) of any such party cast in
person at a meeting called for the purpose of voting on such approval, or (b) by
the vote of a majority of the outstanding voting securities of the Fund (as
defined in the 1940 Act).

    Upon this Agreement becoming effective, any previous Agreement between the
Fund and SI providing for investment advisory services shall concurrently
terminate, except that such termination shall not affect any fees accrued and
guarantees of expenses with respect to any period prior to termination.

    This Agreement may be terminated at any time without payment of any penalty,
by the Fund upon the vote of a majority of the Fund's Board of Directors or, by
a majority of the outstanding voting securities of the Fund, or by SI, in each
case on sixty (60) days' written notice to the other party This Agreement shall
automatically terminate in the event of its assignment (as such term is defined
in the 1940 Act).

    8.  SEVERABILITY. If any clause or provision of this Agreement is
determined to be illegal, invalid or unenforceable under present or future laws
effective during the term hereof, then such clause or provision shall be
considered severed herefrom and the remainder of this Agreement shall continue
in full force and effect.

    9.  APPLICABLE LAW. This Agreement shall be subject to and construed in
accordance with the laws of the State of Kansas.

                                   B-18


    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereto duly authorized on the day, month
and year first above written.

                                   SECURITY MID CAP GROWTH FUND

                                   By:
                                      ----------------------------------
                                      Name: Richard M. Goldman
                                      Title: President

ATTEST:

------------------------------
Name: Amy J. Lee
Title: Secretary

                                   SECURITY INVESTORS, LLC

                                   By:
                                      -----------------------------------
                                      Name: Richard M. Goldman
                                      Title: President

ATTEST:

-------------------------------
Name: Amy J. Lee
Title: Secretary

                                      B-19


                          INVESTMENT ADVISORY CONTRACT

    THIS AGREEMENT, made and entered into this [ ] day of [ ] 2011, between
SECURITY INCOME FUND, a Kansas corporation (hereinafter referred to as the
"Fund"), and SECURITY INVESTORS, LLC, a Kansas limited liability company
(hereinafter referred to as the "Management Company").

                               W I T N E S S E T H

    WHEREAS, the Fund is engaged in business as an open-end management
investment company registered under the Federal Investment Company Act of 1940;
and

    WHEREAS, the Fund is authorized to issue shares of capital stock in separate
Series, with each such Series representing interests in a separate portfolio of
securities and other assets; and

    WHEREAS, the Fund currently offers shares in two separate series, the
Intermediate Bond Series and the High Yield Series, such series together with
all other series subsequently established by the Fund with respect to which the
Fund desires to retain the Management Company to render investment advisory
services hereunder and with respect to which the Management Company is willing
so to do, being herein collectively referred to as the "Series"; and

    WHEREAS, the Management Company is willing to provide investment research
and advice to the Fund on the terms and conditions hereinafter set forth;

    NOW, THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties hereto agree as follows:

    1.  EMPLOYMENT OF MANAGEMENT COMPANY. The Fund hereby employs the
Management Company to act as investment adviser to each Series of the Fund with
respect to the investment of its assets, and to supervise and arrange the
purchase of securities for and the sale of securities held in the portfolios of
the Series of the Fund, subject always to the supervision of the Board of
Directors of the Fund, during the period and upon and subject to the terms and
conditions herein set forth. The Management Company hereby accepts such
employment and agrees to perform the services required by this Agreement for the
compensation herein provided.

    In the event the Fund establishes additional series with respect to which it
desires to retain the Management Company to render investment advisory services
hereunder, it shall notify the Management Company in writing. If the Management
Company is willing to render such services it shall notify the Fund in writing,
whereupon such series shall become a Series subject to the terms and conditions
hereunder, and to such amended or additional provisions as shall be specifically
agreed to by the Fund and the Management Company in accordance with applicable
law.

                                      B-20


2. INVESTMENT ADVISORY DUTIES.

    (a) The Management Company shall regularly provide each Series of the Fund
with investment research, advice and supervision, continuously furnish an
investment program and recommend that securities shall be purchased and sold and
what portion of the assets of each Series shall be held uninvested and shall
arrange for the purchase of securities and other investments for and the sale of
securities and other investments held in the portfolio of each Series. All
investment advice furnished by the Management Company to each Series under this
Section 2 shall at all times conform to any requirements imposed by the
provisions of the Fund's Articles of Incorporation and Bylaws, the Investment
Company Act of 1940 and the rules and regulations promulgated thereunder, any
other applicable provisions of law, and the terms of the registration statements
of the Fund under the Securities Act of 1933 and the Investment Company Act of
1940, all as from time to time amended. The Management Company shall advise and
assist the officers or other agents of the Fund in taking such steps as are
necessary or appropriate to carry out the decisions of the Fund's Board of
Directors (and any duly appointed committee thereof) with regard to the
foregoing matters and the general conduct of the Fund's business.

    (b) Subject to the provisions of the Investment Company Act of 1940 (the
"1940 Act") and any applicable exemptions thereto, the Management Company is
authorized, but is under no obligation, to enter into sub-advisory agreements
(the "Sub-Advisory Agreements") with one or more sub-advisers (each a
"Sub-adviser") to provide investment advisory services to any Series of the
Fund. Each Sub-adviser shall have investment discretion with respect to the
assets of the Series assigned to that Sub-adviser by the Management Company. The
Management Company shall not be responsible or liable with respect to any
investment decision made by a Sub-adviser, whether such decision be to purchase,
sell or hold such investment. Consistent with the provisions of the 1940 Act and
any applicable exemption thereto, the Investment Manager may enter into
Sub-Advisory Agreements or amend Sub-Advisory Agreements without the approval of
the shareholders of the affected Series.

3. PORTFOLIO TRANSACTIONS AND BROKERAGE.

    (a) Transactions in portfolio securities shall be effected by the Management
Company, through brokers or otherwise, in the manner permitted in this Section 3
and in such manner as the Management Company shall deem to be in the best
interests of the Fund after consideration is given to all relevant factors.

    (b) In reaching a judgment relative to the qualification of a broker to
obtain the best execution of a particular transaction, the Management Company
may take into account all relevant factors and circumstances, including the size
of any contemporaneous market in such securities; the importance to the Fund of
speed and efficiency of execution; whether the particular transaction is part of
a larger intended change in portfolio position in the same securities; the
execution

                                      B-21


capabilities required by the circumstances of the particular transaction; the
capital required by the transaction; the overall capital strength of the broker;
the broker's apparent knowledge of or familiarity with sources from or to whom
such securities may be purchased or sold; as well as the efficiency, reliability
and confidentiality with which the broker has handled the execution of prior
similar transactions.

         (c) Subject to any statements concerning the allocation of
    brokerage contained in the Fund's prospectus or statement of additional
    information, the Management Company is authorized to direct the execution
    of portfolio transactions for the Fund to brokers who furnish investment
    information or research service to the Management Company. Such allocation
    shall be in such amounts and proportions as the Management Company may
    determine. If the transaction is directed to a broker providing brokerage
    and research services to the Management Company, the commission paid for
    such transaction may be in excess of the commission another broker would
    have charged for effecting that transaction, if the Management Company
    shall have determined in good faith that the commission is reasonable in
    relation to the value of the brokerage and research services provided,
    viewed in terms of either that particular transaction or the overall
    responsibilities of the Management Company with respect to all accounts as
    to which it now or hereafter exercises investment discretion. For purposes
    of the immediately preceding sentence, "providing brokerage and research
    services" shall have the meaning generally given such terms or similar
    terms under Section 28(e)(3) of the Securities Exchange Act of 1934, as
    amended.

         (d) In the selection of a broker for the execution of any transaction
    not subject to fixed commission rates, the Management Company shall have
    no duty or obligation to seek advance competitive bidding for the most
    favorable negotiated commission rate to be applicable to such transaction,
    or to select any broker solely on the basis of its purported or "posted"
    commission rates.

         (e) In connection with transactions on markets other than national or
    regional securities exchanges, the Fund will deal directly with the
    selling principal or market maker without incurring charges for the
    services of a broker on its behalf unless, in the best judgment of the
    Management Company, better price or execution can be obtained in utilizing
    the services of a broker.

    4. ALLOCATION OF EXPENSES AND CHARGES. The Management Company shall provide
investment advisory, statistical and research facilities and all clerical
services relating to research, statistical and investment work, and shall
provide for the compilation and maintenance of such records relating to these
functions as shall be required under applicable law and the rules and
regulations of the Securities and Exchange Commission. The Management Company
will also provide the Fund with a president, a chief financial officer, and a
secretary, subject to the approval of the

                                      B-22


Board of Directors, and will pay the salaries and expenses of such officers of
the Fund who are also directors, officer or employees of the Management Company.

    Other than as specifically indicated in the preceding sentences, the
Management Company shall not be required to pay any expenses of the Fund, and in
particular, but without limiting the generality of the foregoing, the Management
Company shall not be required to pay office rental or general administrative
expenses; Board of Directors' fees; legal, auditing and accounting expenses;
insurance premiums; broker's commissions; taxes and governmental fees and any
membership dues; fees of custodian, transfer agent, registrar and dividend
disbursing agent (if any); expenses of obtaining quotations on the Fund's
portfolio securities and pricing of the Fund's shares; cost of stock
certificates and any other expenses (including clerical expenses) of issue,
sale, repurchase or redemption of shares of the Fund's capital stock; costs and
expenses in connection with the registration of the Fund's capital stock under
the Securities Act of 1933 and qualification of the Fund's capital stock under
the Blue Sky laws of the states where such stock is offered; costs and expenses
in connection with the registration of the Fund under the Investment Company Act
of 1940 and all periodic and other reports required thereunder; expenses of
preparing, printing and distributing reports, proxy statements, prospectuses,
statements or additional information, notices and distributions to stockholders;
costs of stationery; costs of stockholder and other meetings; expenses of
maintaining the Fund's corporate existence; and such nonrecurring expenses as
may arise including litigation affecting the Fund and the legal obligations the
Fund may have to indemnify its officers and directors.

    5.  COMPENSATION OF MANAGEMENT COMPANY.

         (a) As compensation for the services to be rendered by the Management
    Company as provided for herein, for each of the years this Agreement is in
    effect, the Fund shall pay the Management Company an annual fee equal to
    0.60 percent of the average daily net assets of High Yield Series and 0.50
    percent of the average daily net assets of Intermediate Bond Series. Such
    fee shall be adjusted and payable monthly. If this Agreement shall be
    effective for only a portion of a year, then the Management Company's
    compensation for said year shall be prorated for such portion. For
    purposes of this Section 5, the value of the net assets of each such
    Series shall be computed in the same manner at the end of the business day
    as the value of such net assets is computed in connection with the
    determination of the net asset value of the Fund's shares as described in
    the Fund's prospectus.

         (b) For each of the Fund's full fiscal years this Agreement remains in
    force, the Management Company agrees that if the total annual expenses of
    each Series of the Fund, exclusive of interest and taxes, extraordinary
    expenses (such as litigation), and distribution fees paid under the Fund's
    Class B and Class C Distribution Plans, but inclusive of the Management
    Company's compensation, exceed any expense limitation imposed by state
    securities law or regulation in

                                      B-23


    any state in which shares of the Fund are then qualified for sale, as such
    regulations may be amended from time to time, the Management Company will
    contribute to such Series such funds or waive such portion of its fee,
    adjusted monthly as may be requisite to insure that such annual expenses
    will not exceed any such limitation. If this Contract shall be effective for
    only a portion of one of the Series' fiscal years, then the maximum annual
    expenses shall be prorated for such portion. Brokerage fees and commissions
    incurred in connection with the purchase or sale of any securities by a
    Series shall not be deemed to be expenses with the meaning of this
    paragraph (b).

    6.   MANAGEMENT COMPANY NOT TO RECEIVE COMMISSIONS. In connection with the
purchase or sale of portfolio securities for the account of the Fund, neither
the Management Company nor any officer or director of the Management Company
shall act as principal or receive any compensation from the Fund other than its
compensation as provided for in Section 5 above. If the Management Company, or
any "affiliated person" (as defined in the Investment Company Act of 1940)
receives any cash, credits, commissions or tender fees from any person in
connection with transactions in the Fund's portfolio securities (including but
not limited to the tender or delivery of any securities held in the Fund's
portfolio), the Management company shall immediately pay such amount to the Fund
in cash or as a credit against any then earned but unpaid management fees due by
the Fund to the Management Company.

    7.   LIMITATION OF LIABILITY OF MANAGEMENT COMPANY. So long as the
Management Company shall give the Fund the benefit of its best judgment and
effort in rendering services hereunder, the Management Company shall not be
liable for any errors of judgment or mistake of law, or for any loss sustained
by reason of the adoption of any investment policy or the purchase, sale or
retention of any security on its recommendation, whether or not such
recommendation shall have been based upon its own investigation and research or
upon investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been made and such other
individual, firm or corporation shall have been selected with due care and in
good faith. Nothing herein contained shall, however, be construed to protect the
Management Company against any liability to the Fund or its security holders by
reason of willful misfeasance, bad faith or gross negligence in the performance
of its duties or by reason of its reckless disregard of its obligations and
duties under this Agreement. As used in this Section 7, "Management Company"
shall include directors, officers and employees of the Management Company, as
well as the Management Company itself.

    8.   OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall
prevent the Management Company or any officer thereof from acting as investment
adviser for any other person, firm, or corporation, nor shall it in any way
limit or restrict the Management Company or any of its directors, officers,
stockholders or employees from buying, selling, or trading any securities for
its own accounts or for the accounts of others for whom it may be acting;
provided, however, that the Management Company expressly represents that it will
undertake no activities which, in its

                                      B-24


judgment, will conflict with the performance of its obligations to the Fund
under this Agreement. The Fund acknowledges that the Management Company acts as
investment adviser to other investment companies, and it expressly consents to
the Management Company acting as such; provided, however, that if in the opinion
of the Management Company, particular securities are consistent with the
investment objectives of and are desirable purchases or sales for the portfolios
of one or more Series and one or more of such other investment companies or
series of such companies at approximately the same time, such purchases or sales
will be made on a proportionate basis if feasible, and if not feasible, then on
a rotating or other equitable basis.

    9.   DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
force with respect to a Series for an initial term of up to two years, and then
for successive 12- month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote of a
majority of the entire Board of Directors of the Fund, or by the vote of the
holders of a majority of the outstanding voting securities of each series of the
Fund (as defined in the 1940 Act), and (b) the vote of a majority of the
directors of the Fund who are not parties to this Agreement or interested
persons (as such terms are defined in the Investment Company Act of 1940) of any
such party cast in person at a meeting of such directors called for the purpose
of voting upon such approval. In the event a majority of the outstanding shares
of one series vote for continuance of the Advisory Contract, it will be
continued for that series even though the Advisory Contract is not approved by
either a majority of the outstanding shares of any other series or by a majority
of outstanding shares of the Fund. Upon this Agreement becoming effective, any
previous agreement between the Fund and the Management Company providing for
investment advisory and management services shall concurrently terminate, except
that such termination shall not affect fees accrued and guarantees of expenses
with respect to any period prior to termination.

    This Agreement may be terminated at any time as to any series of the Fund,
without payment of any penalty, by vote of the Board of Directors of the Fund or
by vote of the holders of a majority of the outstanding voting securities of
that series of the Fund, or by the Management Company, upon 60 days' written
notice to the other party.

    This Agreement shall automatically terminate in the event of its
"assignment" (as defined in the Investment Company Act of 1940).

                                      B-25


    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective corporate officers thereto duly authorized on the
day, month and year first above written.

                                    SECURITY EQUITY FUND

                                    By:
                                       -----------------------------------
                                       Name: Richard M. Goldman
                                       Title: President

ATTEST:

----------------------------
Name: Amy J. Lee
Title: Secretary

                                    SECURITY INVESTORS, LLC

                                    By:
                                       -----------------------------------
                                       Name: Richard M. Goldman
                                       Title: President

ATTEST:

---------------------------
Name: Amy J. Lee
Title: Secretary

                                      B-26


                          INVESTMENT ADVISORY CONTRACT

    THIS AGREEMENT, made and entered into this [ ] day of [ ], 2011, by and
between SBL FUND, a Kansas corporation (hereinafter referred to as the "Fund"),
and SECURITY INVESTORS, LLC, a Kansas limited liability company (hereinafter
referred to as the "Management Company").

                               W I T N E S S E T H

    WHEREAS, the Fund is engaged in business as an open-end, management
investment company registered under the Federal Investment Company Act of 1940;
and

    WHEREAS, the Management Company is willing to provide investment research
and advice to the Fund on the terms and conditions hereinafter set forth:

    NOW, THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties hereto agree as follows:

    1.   EMPLOYMENT OF MANAGEMENT COMPANY. The Fund hereby employs the
Management Company to act as investment adviser to the Fund with respect to the
investment of its assets and to supervise and arrange the purchase of securities
for the Fund and the sale of securities held in the portfolio of the Fund,
subject always to the supervision of the board of directors of the Fund (or a
duly appointed committee thereof), during the period and upon and subject to the
terms and conditions herein set forth. The Management Company hereby accepts
such employment and agrees to perform the services required by this Agreement
for the compensation herein provided.

    2.   INVESTMENT ADVISORY DUTIES.

         (a) The Management Company shall regularly provide the Fund with
    investment research, advice and supervision, continuously furnish an
    investment program and recommend what securities shall be purchased and
    sold and what portion of the assets of the Fund shall be held uninvested
    and shall arrange for the purchase of securities and other investments for
    the Fund and the sale of securities and other investments held in the
    portfolio of the Fund. All investment advice furnished by the Management
    Company to the Fund under this Section 2 shall at all times conform to any
    requirements imposed by the provisions of the Fund's Articles of
    Incorporation and Bylaws, the Investment Company Act of 1940, the
    Investment Advisors Act of 1940 and the rules and regulations promulgated
    thereunder, any other applicable provisions of law, and the terms of the
    registration statements of the Fund under the Securities Act of 1933 and
    the Investment Company Act of 1940, all as from time to time amended. The
    Management Company shall advise and assist the officers or other agents of
    the Fund in taking such steps as are necessary or appropriate to carry out
    the decisions of the board of directors of the Fund (and any duly
    appointed committee thereof) in regard to the foregoing matters and the
    general conduct of the Fund's business.

                                   B-27


         (b) Subject to the provisions of the Investment Company Act of 1940
    and any applicable exemptions thereto, the Management Company is
    authorized, but is under no obligation, to enter into sub-advisory
    agreements (the "Sub-Advisory Agreements") with one or more subadvisers
    (each a "Subadviser") to provide investment advisory services to any
    series of the Fund. Each Subadviser shall have investment discretion with
    respect to the assets of the series assigned to that Subadviser by the
    Management Company. Consistent with the provisions of the Investment
    Company Act of 1940 and any applicable exemption thereto, the Management
    Company may enter into Sub-Advisory Agreements or amend Sub-Advisory
    Agreements without the approval of the shareholders of the effected series.

3.  PORTFOLIO TRANSACTIONS AND BROKERAGE.

         (a) Transactions in portfolio securities shall be effected by the
    Management Company, through brokers or otherwise (including affiliated
    brokers), in the manner permitted in this Section 3 and in such manner as
    the Management Company shall deem to be in the best interests of the Fund
    after consideration is given to all relevant factors.

         (b) In reaching a judgment relative to the qualification of a broker
    to obtain the best execution of a particular transaction, the Management
    Company may take into account all relevant factors and circumstances,
    including the size of any contemporaneous market in such securities; the
    importance to the Fund of speed and efficiency of execution; whether the
    particular transaction is part of a larger intended change of portfolio
    position in the same securities; the execution capabilities required by
    the circumstances of the particular transaction; the capital to be
    required by the transaction; the overall capital strength of the broker;
    the broker's apparent knowledge of or familiarity with sources from or to
    whom such securities may be purchased or sold; as well as the efficiency,
    reliability and confidentiality with which the broker has handled the
    execution of prior similar transactions.

         (c) Subject to any statements concerning the allocation of brokerage
    contained in the Fund's prospectus, the Management Company is authorized
    to direct the execution of the portfolio transactions of the Fund to
    brokers who furnish investment information or research services to the
    Management Company. Such allocation shall be in such amounts and
    proportions as the Management Company may determine. If a transaction is
    directed to a broker supplying brokerage and research services to the
    Management Company, the commission paid for such transaction may be in
    excess of the commission another broker would have charged for effecting
    that transaction, provided that the Management Company shall have
    determined in good faith that the commission is reasonable in relation to
    the value of the brokerage and research services provided, viewed in terms
    of either that particular transaction or the overall responsibilities of
    the Management Company with respect to all accounts

                                      B-28


    as to which it now or hereafter exercises investment discretion. For
    purposes of the immediately preceding sentence, "providing brokerage and
    research services" shall have the meaning generally given such terms or
    similar terms under Section 28(e)(3) of the Securities Exchange Act of 1934,
    as amended.

         (d) In the selection of a broker for the execution of any transaction
    not subject to fixed commission rates, the Management Company shall have
    no duty or obligation to seek advance competitive bidding for the most
    favorable negotiated commission rate to be applicable to such transaction,
    or to select any broker solely on the basis of its purported or "posted"
    commission rates.

         (e) In connection with transactions on markets other than national or
    regional securities exchanges, the Fund will deal directly with the
    selling principal or market maker without incurring charges for the
    services of a broker on its behalf unless, in the best judgment of the
    Management Company, better price or execution can be obtained by utilizing
    the services of a broker.

    31.  ALLOCATION OF EXPENSES AND CHARGES. The Management Company shall
provide investment advisory, statistical and research facilities and all
clerical services relating to research, statistical and investment work, and
shall provide for the compilation and maintenance of such records relating to
these functions as shall be required under applicable law and the rules and
regulations of the Securities and Exchange Commission. Other than as
specifically indicated in the preceding sentence, the Management Company shall
not be required to pay any expenses of the Fund, and in particular, but without
limiting the generality of the foregoing, the Management Company shall not be
required to pay office rental or general administrative expenses; board of
directors' fees; legal, auditing and accounting expenses; broker's commissions;
taxes and governmental fees; membership dues; fees of custodian, transfer agent,
registrar and dividend disbursing agent (if any); expenses (including clerical
expenses) of issue, sale or redemption of shares of the Fund's capital stock;
costs and expenses in connection with the registration of such capital stock
under the Securities Act of 1933 and qualification of the Fund's capital stock
under the "Blue Sky" laws of the states where such stock is offered; costs and
expenses in connection with the registration of the Fund under the Investment
Company Act of 1940 and all periodic and other reports required thereunder;
expenses of preparing and distributing reports, proxy statements, notices and
distributions to stockholders; costs of stationery; expenses of printing
prospectuses; costs of stockholder and other meetings; and such nonrecurring
expenses as may arise including litigation affecting the Fund and the legal
obligations the Fund may have to indemnify its officers and the members of its
board of directors.

    4.   COMPENSATION OF MANAGEMENT COMPANY.

         (a) As compensation for the services to be rendered by the Management
    Company as provided for herein, for each of the years this Agreement is in
    effect, the Series shall pay the Management Company an annual fee computed
    on a

                                      B-29


    daily basis equal to 0.50 percent of the average daily closing value of the
    net assets of Series C of the Fund, 0.65 percent of the average daily
    closing value of the net assets of Series B of the Fund, 0.70 percent of the
    average daily closing value of the net assets of Series O, 0.75 percent of
    the average daily closing value of the net assets of Series A, Series E,
    Series H, Series J, Series P, Series V, and Series Y of the Fund, 0.85
    percent of the average daily closing value of the net assets of Series X,
    0.95 percent of the average daily closing value of the net assets of Series
    Q, 1.00 percent of the average daily closing value of the net assets of
    Series D, and Series N, and 1.25 percent of the average daily closing value
    of the net assets of Series Z of the Fund. Such fee shall be adjusted and
    payable monthly. If this Agreement shall be effective for only a portion
    of a year, then the Management Company's compensation for said year shall
    be prorated for such portion. For purposes of this Section 5, the value of
    the net assets of each such Series shall be computed in the same manner at
    the end of the business day as the value of such net assets is computed in
    connection with the determination of the net asset value of the Fund's
    shares as described in the Fund's prospectus.

         (b) For each of the Fund's full fiscal years this Agreement remains in
    force, the Management Company agrees that if total annual expenses of each
    Series of the Fund, exclusive of interest and taxes and extraordinary
    expenses (such as litigation), but inclusive of the Management Company's
    compensation, exceed any expense limitation imposed by state securities
    law or regulation in any state in which shares of the Fund are then
    qualified for sale, as such regulations may be amended from time to time,
    the Management Company will contribute to such Series such funds or to
    waive such portion of its fee, adjusted monthly, as may be requisite to
    insure that such annual expenses will not exceed any such limitation. If
    this contract shall be effective for only a portion of one of the Series'
    fiscal years, then the maximum annual expenses shall be prorated for such
    portion. Brokerage fees and commissions incurred in connection with the
    purchase or sale of any securities by a Series shall not be deemed to be
    expenses within the meaning of this paragraph (b).

         (c) For each of the Fund's full fiscal years this Agreement remains in
    force, the Management Company agrees that if total annual expenses of each
    Series of the Fund identified below, exclusive of interest, taxes,
    extraordinary expenses (such as litigation), and brokerage fees and
    commissions, but inclusive of the Management Company's compensation, exceeds
    the amount set forth below (the "Expense Cap"), the Management Company will
    contribute to such Series such funds or waive such portion of its fee,
    adjusted monthly, as may be required to insure that the total annual
    expenses of the Series will not exceed the Expense Cap. If this Agreement
    shall be effective for only a portion of a Series' fiscal year, then the
    maximum annual expenses shall be prorated for such portion.

                                      B-30


                                    EXPENSE CAP

                                 Series H -- 1.75%
                                 Series Y -- 1.75%

     5.   LIMITATION OF LIABILITY OF MANAGEMENT COMPANY. So long as the
Management Company shall give the Fund the benefit of its best judgment and
effort in rendering services hereunder, the Management Company shall not be
liable for any errors of judgment or mistake of law, or for any loss sustained
by reason of the adoption of any investment policy or the purchase, sale or
retention of any security on its recommendation, whether or not such
recommendation shall have been based upon its own investigation and research or
upon investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been made and such other
individual firm or corporation shall have been selected with due care and in
good faith. Nothing herein contained shall, however, be construed to protect the
Management Company against any liability to the Fund or its shareholders by
reason of willful misfeasance, bad faith, or gross negligence in the performance
of its duties or by reason of its reckless disregard of its obligations and
duties under the Agreement. As used in this Section 6, "Management Company"
shall include directors, officers and employees of the Management Company, as
well as the Management Company itself.

    6.   OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall
prevent the Management Company or any officer thereof from acting as investment
adviser for any other person, firm or corporation, nor shall it in any way limit
or restrict the Management Company or any of its directors, officers,
stockholders or employees from buying, selling, or trading any securities for
its own accounts or for the accounts of others for whom it may be acting;
provided, however, that the Management Company expressly represents that it will
undertake no activities which, in its judgment, will conflict with the
performance of its obligations to the Fund under this Agreement. The Fund
acknowledges that the Management Company acts as investment adviser to other
investment companies, and it expressly consents to the Management Company acting
as such; provided, however, that if securities of one issuer are purchased or
sold, the purchase or sale of such securities is consistent with the investment
objectives of, and, in the opinion of the Management Company, such securities
are desirable purchases or sales for the portfolios of the Fund and one or more
of such other investment companies at approximately the same time, such
purchases or sales will be made on a proportionate basis if feasible, and if not
feasible, then on a rotating or other equitable basis.

    7.   DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
force with respect to a Series for an initial term of up to two years, and then
for successive 12- month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote of a
majority of the entire Board of Directors of the Fund, or by the vote of the
holders of a majority of the outstanding voting securities of each Series of the
Fund (as defined in the 1940

                                      B-31


Act) and (b) the vote of a majority of the directors of the Fund who are not
parties to this Agreement or interested persons (as such terms are defined in
the Investment Company Act of 1940) of any such party cast in person at a
meeting of such directors called for the purpose of voting upon such approval.
In the event a majority of the outstanding shares of one series vote for
continuance of the Agreement, it will be continued for that series even though
the Agreement is not approved by either a majority of the outstanding shares of
any other series or by a majority of outstanding shares of the Fund. Upon this
Agreement becoming effective, any previous agreement between the Fund and the
Management Company providing for investment advisory and management services
shall concurrently terminate, except that such termination shall not affect fees
accrued and guarantees of expenses with respect to any period prior to
termination.

    This Agreement may be terminated at any time as to any series of the Fund,
without payment of any penalty, by vote of the Board of Directors of the Fund or
by vote of the holders of a majority of the outstanding voting securities of
that series of the Fund, or by the Management Company, in each case upon 60
days' written notice to the other party.

    This Agreement shall automatically terminate in the event of its
"assignment" (as defined in the Investment Company Act of 1940).

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective officers thereto duly authorized on the day, month
and year first above written.

                                     SBL FUND

                                     By:
                                        ----------------------------------
                                        Name: Richard M. Goldman
                                        Title: President

ATTEST:

-----------------------------
Name: Amy J. Lee
Title: Secretary

                                     SECURITY INVESTORS, LLC

                                     By:
                                        ----------------------------------
                                        Name: Richard M. Goldman
                                        Title: President

ATTEST:

-----------------------------
Name: Amy J. Lee
Title: Secretary

                                      B-32


                                   APPENDIX C

               INFORMATION REGARDING THE INVESTMENT MANAGEMENT
           AGREEMENTS AND FEES PAID TO THE INVESTMENT MANAGER AND
                                 DISTRIBUTOR

       Security Investors, LLC (the "Investment Manager") currently serves as
investment manager to all series (collectively, the "Funds") of Security Equity
Fund, Security Large Cap Value Fund, Security Mid Cap Growth Fund, Security
Income Fund and SBL Fund (collectively, the "Companies") pursuant to investment
management agreements between each of the Companies, on behalf of its series,
and the Investment Manager. The Investment Manager also serves as the
administrator for the Funds. Rydex Fund Services, LLC ("RFS") serves as the
transfer agent of the Funds. Rydex Distributors, LLC ("RDL") and Security
Distributors, Inc. ("SDI" and, together with RDL, the "Distributors") serve as
principal underwriters to the Funds, as applicable. The tables below and the
accompanying footnotes provide the following information:

(i)    the date of each investment management agreement;

(ii)   the date on which each Fund's shareholders last approved the Fund's
       investment management agreement;

(iii)  the annual rate of management fees paid by each Fund to the Investment
       Manager, stated as a percentage of that Fund's average daily net assets;

(iv)   the Investment Manager's expense limits for certain Funds (determined as
       a percentage of each Fund's average daily net assets and including
       distribution fees but not brokerage costs, dividends on securities sold
       short, acquired fund fees and expenses, interest, taxes, litigation,
       indemnification, or extraordinary expenses) effective until (a) November
       30, 2012 for certain series of Security Equity Fund and Security Large
       Cap Value Fund and (b) April 30, 2011 for certain series of Security
       Income Fund and SBL Fund.

(v)    the aggregate amount of management fees paid by each Fund to the
       Investment Manager, as well as fee waivers/reimbursements from the
       Investment Manager, for the Fund's fiscal year ended September 30, 2010
       for series of Security Equity Fund, Security Large Cap Value Fund and
       Security Mid Cap Growth Fund, and December 31, 2010 for series of
       Security Income Fund and SBL Fund;

(vi)   the amount of administrative service fees paid by each Fund to the
       Investment Manager for the Investment Manager's services as the
       administrative agent for the Fund during the Fund's fiscal year ended
       September 30, 2010 for series of Security Equity Fund, Security Large
       Cap Value Fund and Security Mid Cap Growth Fund, and December 31, 2010
       for series of Security Income Fund and SBL Fund; and

                                       C-1


(vii)  the amount of transfer agency service fees paid by each Fund to the
       Investment Manager for the Investment Manager's services as the transfer
       agent for the Fund during the Fund's fiscal year ended September 30,
       2010 for series of Security Equity Fund, Security Large Cap Value Fund
       and Security Mid Cap Growth Fund, and December 31, 2010 for series of
       Security Income Fund and SBL Fund.

(viii) The amount of distribution fees, as applicable, paid by each Fund to RDL
       and SDI, each an affiliate of the Investment Manager, for each
       Distributor's services as principal underwriter to the Fund pursuant to
       the Fund's distribution agreement with each Distributor during the
       Fund's fiscal year ended September 30, 2010 for series of Security
       Equity Fund, Security Large Cap Value Fund and Security Mid Cap Growth
       Fund, and December 31, 2010 for series of Security Income Fund and SBL
       Fund. Effective March 16, 2009, SDI and RDL served as co-principal
       underwriters for series of Security Equity Fund, Security Large Cap
       Value Fund, Security Mid Cap Growth Fund and Security Income Fund and,
       effective October 16, 2009, RDI began serving as the sole principal
       underwriter for those Funds. Effective January 1, 2010, SDI and RDL
       serve as co-principal underwriters for series of SBL Fund.

                                       C-2

                                     APPENDIX C




-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        TRANSFER
                                                                                      MANAGEMENT FEES  ADMINISTRATIVE    AGENCY
                                                                         MANAGEMENT    WAIVED BY AND   SERVICE FEES    SERVICE FEES
                           DATE OF LAST                                 FEES PAID TO   REIMBURSEMENTS    PAID TO          PAID TO
                           SHAREHOLDER    MANAGEMENT        EXPENSE      INVESTMENT   FROM INVESTMENT   INVESTMENT      INVESTMENT
   COMPANIES AND FUND        APPROVAL        FEES           LIMITS        MANAGER         MANAGER         MANAGER         MANAGER
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
SECURITY EQUITY FUND(1)
-----------------------------------------------------------------------------------------------------------------------------------
Rydex|SGI All Cap         5/21/2010         0.70%       Class A: 1.27%   $   17,156       $ 59,326      $    2,726      $    15,366
Value Fund                                              Class C: 2.02%
                                                         Institutional
                                                         Class: 1.02%

Rydex|SGI Alpha           5/21/2010         1.25%       Class A: 2.11%   $  169,597       $176,815      $   31,659       $   47,661
Opportunity Fund                                         Class B: 2.86
                                                        Class C: 2.86%
                                                         Institutional
                                                         Class: 1.86%

Rydex|SGI MSCI EAFE       5/21/2010         0.70%       Class A: 1.61%   $  986,496        None         $ 151, 213       $  252,325
Equal Weight Fund                                       Class B: 2.36%
(formerly Rydex|SGI                                     Class C: 2.36%
Global Fund)                                             Institutional
                                                         Class: 1.36%

Rydex|SGI Large Cap       5/21/2010         0.75%       Class A: 1.35%   $  297,673       $150,104      $   37,857       $  198,581
Concentrated                                            Class B: 2.10%
Growth Fund                                             Class C: 2.10%

Rydex|SGI Large           5/21/2010         0.75%           None         $1,426,137         None        $  180,964       $  471,179
Cap Core Fund

Rydex|SGI Mid Cap         5/21/2010     1.00% for the       None         $8,950,803         None        $1,071,380       $1,939,114
Value Fund                               first $200
                                         million and
                                      0.75% thereafter

Rydex|SGI Mid             5/21/2010         0.75%           0.90%        $2,914,159       $209,979      $  369,590       $  283,742
Cap Value
Institutional Fund

Rydex|SGI Small           5/21/2010         0.85%           None         $  122,319         None        $   25,866       $   87,581
Cap Growth Fund

Rydex|SGI Small           5/21/2010         1.00%       Class A: 1.30%   $   78,268       $ 90,347      $   19,331       $   21,303
Cap Value Fund                                          Class C: 2.05%
                                                         Institutional
                                                         Class: 1.05%
-----------------------------------------------------------------------------------------------------------------------------------


                                       C-3




-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        TRANSFER
                                                                                      MANAGEMENT FEES  ADMINISTRATIVE    AGENCY
                                                                         MANAGEMENT    WAIVED BY AND   SERVICE FEES    SERVICE FEES
                           DATE OF LAST                                 FEES PAID TO   REIMBURSEMENTS    PAID TO          PAID TO
                           SHAREHOLDER    MANAGEMENT        EXPENSE      INVESTMENT   FROM INVESTMENT  INVESTMENT       INVESTMENT
   COMPANIES AND FUND       APPROVAL        FEES            LIMITS        MANAGER         MANAGER        MANAGER          MANAGER
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   
SECURITY LARGE CAP
VALUE FUND(2)
-----------------------------------------------------------------------------------------------------------------------------------
Rydex|SGI Large Cap       5/21/2010         0.65%       Class A: 1.15%   $  330,582       $204,444      $   48,490       $  189,244
Value Fund                                              Class B: 1.90%
                                                        Class C: 1.90%

Rydex|SGI Large           5/21/2010         0.65%           0.96%        $   18,163       $ 61,962      $   17,610       $   19,008
Cap Value
Institutional Fund
-----------------------------------------------------------------------------------------------------------------------------------
SECURITY MID CAP
GROWTH FUND(3)
-----------------------------------------------------------------------------------------------------------------------------------
Rydex|SGI MidCap          5/21/2010         0.75%            None        $  610,509          None       $    77,511      $  293,786
Growth Fund
-----------------------------------------------------------------------------------------------------------------------------------
SECURITY INCOME FUND(4)
-----------------------------------------------------------------------------------------------------------------------------------
Rydex|SGI High            5/21/2010         0.60%       Class A: 1.16%   $1,083,328       $256,698      $   198,269      $  374,561
Yield Fund                                              Class B: 1.91%
                                                        Class C: 1.91%
                                                         Institutional
                                                         Class: 0.91%

Rydex|SGI U.S.            5/21/2010         0.50%       Class A: 1.00%   $  721,219       $319,988      $   146,592      $  334,052
Intermediate Bond Fund                                  Class B: 1.75%
                                                        Class C: 1.75%
-----------------------------------------------------------------------------------------------------------------------------------
SBL FUND(5)
-----------------------------------------------------------------------------------------------------------------------------------
Series A (Large Cap       5/21/2010         0.75%            None        $1,619,630          None       $   206,915      $   27,519
Core Series)

Series B (Large Cap       5/21/2010         0.65%            None        $1,829,913          None       $   267,699      $   25,529
Value Series)

Series C (Money           5/21/2010         0.50%            None        $  681,428          None       $   135,127      $   25,519
Market Series)

Series D (MSCI EAFE       5/21/2010         0.70%            None        $2,556,930          None       $   386,862      $   25,519
Equal Weight
Series (formerly
Global Series))

Series E (U.S.            5/21/2010         0.75%            0.81%       $  988,459       $162,543      $   129,915      $   25,448
Intermediate Bond
Series)

Series J (Mid Cap         5/21/2010         0.75%            None        $1,150,158          None       $   145,992      $   25,427
Growth Series)

Series N (Managed Asset   5/21/2010         1.00%            None        $  772,349          None       $   115,852      $   25,383
Allocation Series)


                                       C-4




-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        TRANSFER
                                                                                      MANAGEMENT FEES  ADMINISTRATIVE    AGENCY
                                                                         MANAGEMENT    WAIVED BY AND   SERVICE FEES    SERVICE FEES
                           DATE OF LAST                                 FEES PAID TO   REIMBURSEMENTS    PAID TO          PAID TO
                           SHAREHOLDER    MANAGEMENT        EXPENSE      INVESTMENT   FROM INVESTMENT  INVESTMENT       INVESTMENT
   COMPANIES AND FUND       APPROVAL        FEES            LIMITS        MANAGER         MANAGER        MANAGER          MANAGER
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                    
Series O (All Cap         5/21/2010         0.70%            1.00%       $1,116,412        None         $   152,007      $   25,412
Value Series)

Series P (High            5/21/2010         0.75%            None        $  985,177        None         $   133,174      $   25,245
Yield Series)

Series Q (Small Cap       5/21/2010         0.95%            None        $1,136,876        None         $   114,219      $   25,345
Value Series)

Series V (Mid Cap         5/21/2010         0.75%            None        $2,280,944        None         $    36,265      $   25,411
Value Series)

Series X (Small Cap       5/21/2010         0.85%            None        $  316,525        None         $   289,313      $   25,340
Growth Series)

Series Y (Large Cap       5/21/2010         0.75%            None        $  307,319        None         $    39,061      $   25,343
Concentrated
Growth Series)

Series Z (Alpha           5/21/2010         1.25%            2.35%       $  258,694       $41,595       $    31,043      $   25,167
Opportunity Series)


1.  The investment management agreement between Security Equity Fund, on
    behalf of its series, and Security Investors, LLC was made and entered into
    on August 1, 2010, amended and restated effective as of April 29, 2011.

2   The investment management agreement between Security Large Cap Value Fund,
    on behalf of its series, and Security Investors, LLC was made and entered
    into on August 1, 2010.

3   The investment management agreement between Security Mid Cap Growth Fund,
    on behalf of its series, and Security Investors, LLC was made and entered
    August 1, 2010.

4   The investment management agreement between Security Income Fund, on behalf
    of its series, and Security Investors, LLC was made and entered into on
    August 1, 2010.

5   The investment management agreement between SBL Fund, on behalf of its
    series, and Security Investors, LLC was made and entered into on August 1,
    2010.

                                       C-5


DISTRIBUTION FEES PAID TO RDL/SDI



---------------------------------------------------------------------------------------
FUND NAME                                           CLASS A      CLASS B     CLASS C
---------------------------------------------------------------------------------------
                                                                   
All Cap Value Fund                                   $3,835        $0        $6,072
---------------------------------------------------------------------------------------
Alpha Opportunity Fund                               22,431      13,399      16,246
---------------------------------------------------------------------------------------
MSCI EAFE Equal Weight Fund (formerly Global Fund)  213,352        0        45,079
---------------------------------------------------------------------------------------
Large Cap Concentrated Growth Fund                   75,860      58,853      34,604
---------------------------------------------------------------------------------------
Large Cap Core Fund                                  449,349     81,823      22,298
---------------------------------------------------------------------------------------
Mid Cap Value Fund                                  2,270,523    506,522    1,679,124
---------------------------------------------------------------------------------------
Mid Cap Value Institutional Fund                         0          0           0
---------------------------------------------------------------------------------------
Small Cap Growth Fund                                 28,244     15,943      14,986
---------------------------------------------------------------------------------------
Small Cap Value Fund                                  15,132        0        10,109
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
Large Cap Value Fund                                 110,912        0        26,224
---------------------------------------------------------------------------------------
Large Cap Value Institutional Fund                      0           0          0
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
Mid Cap Growth Fund                                  176,186     54,800      54,470
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
High Yield Fund                                      401,316        0        94,848
---------------------------------------------------------------------------------------
U.S. Intermediate Bond Fund                          273,214    144,386     205,199
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
Series A (Large Cap Core Series)                        0           0          0
---------------------------------------------------------------------------------------
Series B (Large Cap Value Series)                       0           0          0
---------------------------------------------------------------------------------------
Series C (Money Market Series)                          0           0          0
---------------------------------------------------------------------------------------
Series D (MSCI EAFE Equal Weight Series (formerly
Series D Global Series))                                0           0          0
---------------------------------------------------------------------------------------
Series E (U.S. Intermediate Bond Series)                0           0          0
---------------------------------------------------------------------------------------
Series J (Mid Cap Growth Series)                        0           0          0
---------------------------------------------------------------------------------------
Series N (Managed Asset Allocation Series)              0           0          0
---------------------------------------------------------------------------------------
Series O (All Cap Value Series)                         0           0          0
---------------------------------------------------------------------------------------
Series P (High Yield Series)                            0           0          0
---------------------------------------------------------------------------------------
Series Q ( Small Cap Value Series)                      0           0          0
---------------------------------------------------------------------------------------
Series V (Mid Cap Value Series)                         0           0          0
---------------------------------------------------------------------------------------
Series X (Small Cap Growth Series)                      0           0          0
---------------------------------------------------------------------------------------
Series Y (Large Cap Concentrated Growth Series)         0           0          0
---------------------------------------------------------------------------------------
Series Z (Alpha Opportunity Series)                     0           0          0
---------------------------------------------------------------------------------------


                                       C-6


                                   APPENDIX D

            DIRECTORS/MANAGERS AND OFFICERS OF THE INVESTMENT ADVISER

       MEMBER REPRESENTATIVE AND PRINCIPAL EXECUTIVE OFFICER OF SECURITY
INVESTORS, LLC. The business address of the member representative and principal
executive officer is One Security Benefit Place, Topeka, Kansas 66636-0001.



        NAME           POSITION HELD WITH                   OTHER PRINCIPAL
                       SECURITY INVESTORS,                 OCCUPATION/POSITION
                              LLC
--------------------------------------------------------------------------------------------------
                                          
Richard M. Goldman    President, Chief          Senior Vice President, Security Benefit
                      Executive Officer and     Corporation; CEO, Security Benefit Asset
                      Member Representative     Management Holdings, LLC; CEO, President and
                                                Manager Representative, Security Investors, LLC;
                                                CEO and Manager, Rydex Holdings, LLC; CEO,
                                                President, and Manager, Rydex Distributors, LLC;
                                                Manager, Rydex Fund Services, LLC; President
                                                and Trustee, Rydex Series Funds, Rydex ETF
                                                Trust, Rydex Dynamic Funds and Rydex Variable
                                                Trust; and President, Director and Chairman of
                                                the Board, Security Equity Fund, Security Income
                                                Fund, Security Large Cap Value Fund, Security
                                                Mid Cap Growth Fund and SBL Fund


DIRECTORS/OFFICERS OF THE FUNDS WHO HOLD POSITION(S) WITH SECURITY INVESTORS,
LLC. The business address of each of the following persons is 805 King Farm
Boulevard, Suite 600, Rockville, Maryland 20850.



        NAME         POSITION HELD WITH THE FUNDS       POSITION HELD WITH SECURITY INVESTORS,
                                                                        LLC
--------------------------------------------------------------------------------------------------
                                                 
Richard M. Goldman   Director, President and           President, Chief Executive Officer and
                     Chairman of the Board of each     Member Representative
                     Company

Nick Bonos           Treasurer                         Senior Vice President

Joanna M. Haigney    Chief Compliance Officer          Senior Vice President and Chief
                                                       Compliance Officer

Joseph Arrunda       Assistant Treasurer               Vice President

Keith Fletcher       Vice President                    Senior Vice President

Amy Lee              Vice President and Secretary      Senior Vice President and Secretary


                                       D-1


                                   APPENDIX E

               ADVISORY FEE RATES OF FUNDS WITH SIMILAR INVESTMENT
                  OBJECTIVES ADVISED BY SECURITY INVESTORS, LLC

        Each of the tables below lists the names of other mutual funds advised
by Security Investors, LLC (the "Investment Manager") with a similar investment
objective as the Funds, and information concerning the Funds' and such other
funds' net assets as of April 30, 2011 and the rate of compensation for the
Investment Manager for its services to the Funds and such other funds. The
Investment Manager has agreed to reduce or waive its investment advisory fees
for certain Funds as provided below.



NAME(S) OF FUND(S)                     ANNUAL COMPENSATION TO        NET ASSETS       MANAGEMENT FEES
SUBJECT TO THIS PROXY                  THE INVESTMENT MANAGER       (IN MILLIONS)      WAIVED BY AND
STATEMENT                            (AS A PERCENTAGE OF AVERAGE                      REIMBURSEMENTS
                                          DAILY NET ASSETS)                           FROM INVESTMENT
Name(s) of Other Fund(s) with                                                             MANAGER
Similar Objectives
-------------------------------------------------------------------------------------------------------
                                                                               
RYDEX|SGI LARGE CAP CORE                        0.75%                $    212.24             None
FUND, A SERIES OF SECURITY EQUITY
FUND

SERIES A (LARGE CAP CORE SERIES),               0.75%                $    250.61             None
A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI ALPHA OPPORTUNITY                     1.25%                $    14.17         $   176,815
FUND, A SERIES OF SECURITY EQUITY
FUND

SERIES Z (ALPHA OPPORTUNITY                     1.25%                $    21.68         $    41,595
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI MSCI EAFE EQUAL                       0.70%                $    97.83              None
WEIGHT FUND (FORMERLY
RYDEX|SGI GLOBAL FUND), A SERIES
OF SECURITY EQUITY FUND

SERIES D (MSCI EAFE EQUAL                       0.70%                $    271.90             None
WEIGHT SERIES) (FORMERLY SERIES D
(GLOBAL SERIES)), A SERIES OF SBL
FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI MID CAP VALUE FUND,            1.00% for the first         $   1646.84             None
A SERIES OF SECURITY EQUITY FUND          $200 million and
                                          0.75% thereafter

RYDEX|SGI MID CAP VALUE                         0.75%                $    681.81        $   209,976
INSTITUTIONAL FUND, A SERIES OF
SECURITY EQUITY FUND

SERIES V (MID CAP VALUE SERIES),                0.75%                $    340.77             None
A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------


                                       E-1




NAME(s) OF FUND(s)                     ANNUAL COMPENSATION TO        NET ASSETS       MANAGEMENT FEES
SUBJECT TO THIS PROXY                  THE INVESTMENT MANAGER       (IN MILLIONS)      WAIVED BY AND
STATEMENT                            (AS A PERCENTAGE OF AVERAGE                      REIMBURSEMENTS
                                          DAILY NET ASSETS)                           FROM INVESTMENT
Name(s) of Other Fund(s) with                                                             MANAGER
Similar Objectives
-------------------------------------------------------------------------------------------------------
                                                                                
RYDEX|SGI SMALL CAP                           0.85%                    $   20.84             None
GROWTH FUND, A SERIES OF
SECURITY EQUITY FUND

SERIES X (SMALL CAP GROWTH                    0.85%                    $   51.02             None
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI SMALL CAP VALUE                     1.00%                    $   12.75         $  90,347
FUND, A SERIES OF SECURITY
EQUITY FUND

SERIES Q (SMALL CAP VALUE                     0.95%                    $  143.87             None
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI LARGE CAP                           0.75%                    $   44.22         $  150,104
CONCENTRATED GROWTH
FUND, A SERIES OF SECURITY EQUITY
FUND

SERIES Y (LARGE CAP                           0.75%                    $   44.15             None
CONCENTRATED GROWTH SERIES), A
SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI ALL CAP VALUE                       0.70%                    $    3.58         $   59,326
FUND, A SERIES OF SECURITY
EQUITY FUND

SERIES O (ALL CAP VALUE                       0.70%                    $  176.22             None
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI LARGE CAP VALUE                     0.65%                    $   57.25         $   204,444
FUND, A SERIES OF SECURITY
LARGE CAP VALUE FUND

RYDEX|SGI LARGE CAP VALUE                     0.65%                    $   3.29          $   61,962
INSTITUTIONAL FUND, A SERIES OF
SECURITY LARGE CAP VALUE
FUND

SERIES B (LARGE CAP VALUE                     0.65%                    $  312.36            None
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI MID CAP GROWTH                      0.75%                    $   95.46            None
FUND, A SERIES OF SECURITY MID
CAP GROWTH FUND

SERIES J (MID CAP GROWTH                      0.75%                    $  174.24            None
SERIES), A SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------


                                       E-2




NAME(s) OF FUND(s)                     ANNUAL COMPENSATION TO        NET ASSETS       MANAGEMENT FEES
SUBJECT TO THIS PROXY                  THE INVESTMENT MANAGER       (IN MILLIONS)      WAIVED BY AND
STATEMENT                            (AS A PERCENTAGE OF AVERAGE                      REIMBURSEMENTS
                                          DAILY NET ASSETS)                           FROM INVESTMENT
Name(s) of Other Fund(s) with                                                             MANAGER
Similar Objectives
-------------------------------------------------------------------------------------------------------
                                                                               
RYDEX|SGI HIGH YIELD FUND, A                  0.60%                 $  180.95           $  256,698
SERIES OF SECURITY INCOME FUND

SERIES P (HIGH YIELD SERIES), A               0.75%                 $   141.57               None
SERIES OF SBL FUND
-------------------------------------------------------------------------------------------------------

RYDEX|SGI U.S. INTERMEDIATE                   0.50%                 $   131.59          $  319,988
BOND FUND, A SERIES OF
SECURITY INCOME FUND

SERIES E (U.S. INTERMEDIATE                   0.75%                 $   136.63          $  162,543
BOND SERIES), A SERIES OF
SBL FUND
-------------------------------------------------------------------------------------------------------

SERIES C (MONEY MARKET                        0.50%                 $  98.93                None
SERIES), A SERIES OF SBL FUND

None                                           N/A                      N/A                 N/A
-------------------------------------------------------------------------------------------------------

SERIES N (MANAGED ASSET                       1.00%                 $  78.62                None
ALLOCATION SERIES), A SERIES OF SBL
FUND

None                                           N/A                      N/A                 N/A
-------------------------------------------------------------------------------------------------------


                                       E-3


                                   APPENDIX F

                               OUTSTANDING SHARES

       As of the Record Date, the total number of shares outstanding for each
Fund and for each class of each Fund is set forth in the table below:



SECURITY EQUITY FUND
----------------------------------------------------------------------------------------------------------
                                                       SHARES OUTSTANDING
                                     ---------------------------------------------------------------------
                                                                              INSTITUTIONAL
FUNDS                                 CLASS A        CLASS B      CLASS C         CLASS         TOTAL
----------------------------------------------------------------------------------------------------------
                                                                               
Rydex|SGI All Cap Value Fund         150075.77      0.00         104632.54     30225.12       284933.43

Rydex|SGI Alpha Opportunity          682865.72      76417.90     142499.59     98009.39       999792.60
Fund

Rydex|SGI MCSI EAFE Equal            6762214.68     490472.89    411173.45     29425.78       7693286.80
Weight Fund

Rydex|SGI Large Cap Concentrated     3158437.52     427296.04    412493.40     N/A            3998226.96
Growth Fund

Rydex|SGI Large Cap Core Fund        9304336.44     374153.13    108063.11     N/A            9786552.68

Rydex|SGI Mid Cap Value Fund         35926334.42    1216382.13   7969825.07    N/A            45112541.61

Rydex|SGI Mid Cap Value              N/A            N/A          N/A           47340989.48    47340989.48
Institutional Fund

Rydex|SGI Small Cap Growth           872979.17      120521.99    123510.17     N/A            1117011.32
Fund

Rydex|SGI Small Cap Value Fund       651103.83      N/A          202804.53     54234.33       908142.69


                                       F-1




SECURITY EQUITY FUND
----------------------------------------------------------------------------------------------------------
                                                       SHARES OUTSTANDING
                                     ---------------------------------------------------------------------
                                                                              INSTITUTIONAL
FUNDS                                 CLASS A         CLASS B     CLASS C         CLASS           TOTAL
----------------------------------------------------------------------------------------------------------
                                                                               
SECURITY LARGE CAP VALUE FUND
----------------------------------------------------------------------------------------------------------
Rydex|SGI Large                      1669546.58      117879.01     87222.75       N/A             1874648.33
Cap Value Fund

Rydex|SGI Large                      N/A             N/A           N/A            286412.09       286412.09
Cap Value
Institutional Fund


SECURITY MID CAP GROWTH FUND
----------------------------------------------------------------------------------------------------------
                                                       SHARES OUTSTANDING
                                 -------------------------------------------------------------------------
FUNDS                                 CLASS A          CLASS B            CLASS C           TOTAL
----------------------------------------------------------------------------------------------------------
                                                                               
Rydex|SGI Mid Cap                    2183558.23         150100.80         170881.20        2504540.23
Growth Fund


SECURITY INCOME FUND
----------------------------------------------------------------------------------------------------------
                                                       SHARES OUTSTANDING
                                     ---------------------------------------------------------------------
                                                                             INSTITUTIONAL
FUNDS                                 CLASS A         CLASS B     CLASS C       CLASS            TOTAL
----------------------------------------------------------------------------------------------------------
                                                                               
Rydex|SGI High                       5663696.81     279196.91    796232.16     809375.45      7548501.32
Yield Fund

Rydex|SGI U.S.                       6346751.73     423008.66    1174737.76    N/A            7944498.16
Intermediate
Bond Fund


                                       F-2




SBL FUND
                                           SHARES OUTSTANDING
                                           ------------------
               FUNDS                                                        TOTAL
----------------------------------------------------------------------------------------
                                                                      
Series A (Large Cap Core Series)                                         9543954.70

Series B (Large Cap Value Series)                                        10428447.21

Series C (Money Market Series)                                           11144204.17

Series D (MCSI EAFE Equal Weight Series)                                 22471580.33

Series E (U.S. Intermediate Bond Series)                                  9638031.29

Series J (Mid Cap Growth Series)                                          4852884.44

Series N (Managed Asset Allocation Series)                                3501853.51

Series O (All Cap Value Series)                                           6723023.93

Series P (High Yield Series)                                              3891040.69

Series Q (Small Cap Value Series)                                         3420391.21

Series V (Mid Cap Value Series)                                           4803921.47

Series X (Small Cap Growth Series)                                        2010204.25

Series Y (Large Cap Growth Series)                                        3862983.68

Series Z (Alpha Opportunity Series)                                       1049931.41


                                       F-3


                                   APPENDIX G

                     BENEFICIAL OWNERS OF MORE THAN 5% OF A
                               CLASS OF EACH FUND

       As of the Record Date, the following persons owned, of record and
beneficially (unless otherwise indicated), 5% or more* of a class of each Fund's
outstanding securities:



                                                           AMOUNT OF    PERCENTAGE
                                            SHARE            SHARES       OF THE
      NAME OF THE FUND                      CLASS            OWNED        CLASS       NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI All Cap Value Fund              A Shares        53,439.52      35.61%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10091
Rydex|SGI All Cap Value Fund              A Shares        30,069.26      20.04%       SECURITY BENEFIT CORP, SEED ACCOUNT
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1000
Rydex|SGI All Cap Value Fund              A Shares        15,000.61      10.00%       JOSEPHINE A REECK AND DAVID A REECK CO-
                                                                                      TRUSTEES, WAYNE DISTRIBUTING CO INC MPPP
                                                                                      PO BOX 4566
                                                                                      TROY MI 48099-4566
Rydex|SGI All Cap Value Fund              A Shares        12,026.94      8.01%        UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1000
Rydex|SGI All Cap Value Fund              C shares        29,989.31      28.66%       SECURITY BENEFIT CORP, SEED ACCOUNT
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1001
Rydex|SGI All Cap Value Fund              C shares        22,296.14      21.27%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10092
Rydex|SGI All Cap Value Fund              Institutional   30,225.12      100.00%      SECURITY BENEFIT CORP, SEED ACCOUNT
                                          Share class                                 ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1002


                                       G-1




                                                           AMOUNT OF    PERCENTAGE
                                            SHARE            SHARES       OF THE
      NAME OF THE FUND                      CLASS            OWNED        CLASS       NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI Alpha Opportunity Fund          A Shares        364,683.36     53.40%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1001
Rydex|SGI Alpha Opportunity Fund          A Shares        44,307.52      6.49%        SBL VARIABLE ANNUITY ACCOUNT XIV
                                                                                      SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1000
Rydex|SGI Alpha Opportunity Fund          B Shares        11,938.94      15.62%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10093
Rydex|SGI Alpha Opportunity Fund          B Shares        8,354.64       10.94%       NFS LLC
                                                                                      7 LAYSBETH COURT
                                                                                      OLD BRIDGE NJ 08857
Rydex|SGI Alpha Opportunity Fund          B Shares        5,849.85       7.66%        KATHY HEMPHILL WALKER (SEP)
                                                                                      PO BOX 27849
                                                                                      PANAMA CITY FL 32411-7849
Rydex|SGI Alpha Opportunity Fund          C shares        16,348.20      11.47%       SECURITY BENEFIT CORP RET PROGRAMS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1000
Rydex|SGI Alpha Opportunity Fund          C shares        14,410.93      10.12%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10094
Rydex|SGI Alpha Opportunity Fund          C shares        11,403.87      8.01%        BUDDY SONCHAR TRSTE, BTU BLOCK &
                                                                                      CONCRETE INC 401K PSP
                                                                                      1905 ARMIJO ST
                                                                                      LAS VEGAS, NM 87701-3687
Rydex|SGI Alpha Opportunity Fund          C shares        10,793.24      7.57%        STERLING TRUST CO
                                                                                      PO BOX 2526
                                                                                      WACO TX 76702-2526
Rydex|SGI Alpha Opportunity Fund          C shares        8,469.22       5.94%        ROGER D MULKEY
                                                                                      2605 MANCHESTER DR
                                                                                      BRYAN TX 77802-4844
Rydex|SGI Alpha Opportunity Fund          Institutional   98,009.39      100.00%      SECURITY BENEFIT CORP, VARIOUS MUTUAL
                                          Share class                                 FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1002
Rydex|SGI High Yield Fund                 A Shares        2,421,614.02   42.76%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1002
Rydex|SGI High Yield Fund                 A Shares        430,851.09     7.61%        SBL VARIABLE ANNUITY ACCOUNT XIV
                                                                                      SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1001
Rydex|SGI High Yield Fund                 B Shares        27,088.81      9.71%        PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10095
Rydex|SGI High Yield Fund                 C shares        69,849.57      8.71%        PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10096
Rydex|SGI High Yield Fund                 Institutional   225,227.19     27.83%       SECURITY BENEFIT CORP, VARIOUS MUTUAL
                                          Share class                                 FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1003


                                       G-2




                                                           AMOUNT OF      PERCENTAGE
                                             SHARE          SHARES         OF THE
           NAME OF THE FUND                  CLASS          OWNED           CLASS     NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI Large Cap Concentrated Growth   A Shares        384,903.98     12.19%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
Fund                                                                                  RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1003
Rydex|SGI Large Cap Concentrated Growth   A Shares        190,183.61     6.02%        SECURITY BENEFIT CORP, VARIOUS MUTUAL
Fund                                                                                  FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1000
Rydex|SGI Large Cap Concentrated Growth   C shares        75,676.66      18.35%       SECURITY BENEFIT CORP RET PROGRAMS
Fund                                                                                  ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1001
Rydex|SGI Large Cap Concentrated Growth   C shares        53,021.91      12.85%       PERSHING LLC
Fund                                                                                  P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10099
Rydex|SGI Large Cap Core Fund             A Shares        1,052,463.12   11.31%       SBL VARIABLE ANNUITY ACCOUNT XIV
                                                                                      SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1002
Rydex|SGI Large Cap Core Fund             C shares        21,839.87      20.21%       SECURITY BENEFIT CORP RET PROGRAMS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1002
Rydex|SGI Large Cap Value Fund            A Shares        372,436.05     22.31%       SBL VARIABLE ANNUITY ACCOUNT XIV
                                                                                      SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1003
Rydex|SGI Large Cap Value Fund            A Shares        288,933.99     17.31%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1004
Rydex|SGI Large Cap Value Fund            C shares        8,288.96        9.50%       SECURITY BENEFIT CORP RET PROGRAMS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1003
Rydex|SGI Large Cap Value Fund            C shares        4,767.49        5.47%       RAYMOND JAMES & ASSOC INC
                                                                                      1662 SHADOWRIDGE
                                                                                      FAYETTEVILLE AR 72701
Rydex|SGI Large Cap Value Fund            C shares        4,503.82        5.15%       BUDDY SONCHAR TRSTE, BTU BLOCK &
                                                                                      CONCRETE INC 401K PSP
                                                                                      PO BOX 335
                                                                                      SPRINGER, NM 87747-0335
Rydex|SGI Large Cap Value Institutional   Institutional   286,412.09      100.00%     SECURITY BENEFIT CORP, VARIOUS MUTUAL
Fund                                      Share class                                 FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1004


                                       G-3




                                                           AM0UNT OF     PERCENTAGE
                                            SHARE           SHARES         OF THE
          NAME OF THE FUND                  CLASS           OWNED          CLASS      NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI Mid Cap Growth Fund             A Shares        342,929.39      15.71%      UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1005
Rydex|SGI Mid Cap Growth Fund             A Shares        146,361.85      6.70%       SECURITY BENEFIT CORP, VARIOUS MUTUAL
                                                                                      FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1005
Rydex|SGI Mid Cap Growth Fund             C shares        15,048.58       8.81%       SECURITY BENEFIT CORP RET PROGRAMS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1004
Rydex|SGI Mid Cap Growth Fund             C shares        13,226.81       7.75%       LPL FINANCIAL
                                                                                      9785 TOWNE CENTRE DRIVE
                                                                                      SAN DIEGO CA 92121-2002
Rydex|SGI Mid Cap Growth Fund             C shares        10,261.98       6.00%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10097
Rydex|SGI Mid Cap Growth Fund             C shares        8,838.29        5.16%       BUDDY SONCHAR TRSTE, BTU BLOCK &
                                                                                      CONCRETE INC 401K PSP
                                                                                      1905 ARMIJO ST
                                                                                      LAS VEGAS, NM 87701-3687
Rydex|SGI Mid Cap Value Fund              A Shares        3,730,586.12    10.38%      UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1006
Rydex|SGI Mid Cap Value Fund              A Shares        6,064,685.25    9.76%       NFS LLC
                                                                                      14 BITTERSWEET DR
                                                                                      SCITUATE MA 02066
Rydex|SGI Mid Cap Value Fund              B Shares        222,573.52      18.31%      PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10098
Rydex|SGI Mid Cap Value Fund              B Shares        63,359.21       5.16%       NFS LLC
                                                                                      1130 UTICA RIDGE CT APT 6
                                                                                      BETTENDORF IA 52722
Rydex|SGI Mid Cap Value Fund              C shares        777,042.12      8.04%       PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10100
Rydex|SGI Mid Cap Value Fund              C shares        642,947.50      7.21%       NFS LLC
                                                                                      6255 HABITAT DR APT 2026
                                                                                      BOULDER CO 80301-3219
Rydex|SGI Mid Cap Value Institutional     Institutional   11,358,797.42   23.99%      CHARLES SCHWAB & CO INC
Fund                                      Share class                                 101 MONTGOMERY ST
                                                                                      SAN FRANCISCO CA 94104-4151


                                       G-4




                                                           AM0UNT OF     PERCENTAGE
                                            SHARE           SHARES         OF THE
         NAME OF THE FUND                   CLASS           OWNED          CLASS      NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI MSCI EAFE Equal Weight          A Shares        3,374,856.49    49.91%      UMB BANK CUSTODIAN, SECURITY FINANCIAL
Fund                                                                                  RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1007
Rydex|SGI MSCI EAFE Equal Weight          A Shares        592,677.46     8.76%        SBL VARIABLE ANNUITY ACCOUNT XIV
Fund                                                                                  SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1004
Rydex|SGI MSCI EAFE Equal Weight          C shares        67,649.01      16.45%       SECURITY BENEFIT CORP RET PROGRAMS
Fund                                                                                  ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1005
Rydex|SGI Small Cap Growth Fund           A Shares        278,144.43     31.86%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1008
Rydex|SGI Small Cap Growth Fund           A Shares        150,094.03     17.19%       SECURITY BENEFIT CORP, VARIOUS MUTUAL
                                                                                      FUND PLANS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1001
Rydex|SGI Small Cap Growth Fund           C shares        30,443.85      24.65%       SECURITY BENEFIT CORP RET PROGRAMS
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1006
Rydex|SGI Small Cap Value Fund            A Shares        210,388.64     32.31%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1009
Rydex|SGI Small Cap Value Fund            A Shares        42,118.60      6.47%        SECURITY BENEFIT CORP, SEED ACCOUNT
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1003
Rydex|SGI Small Cap Value Fund            C shares        42,240.97      20.83%       SECURITY BENEFIT CORP, SEED ACCOUNT
                                                                                      ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1004
Rydex|SGI Small Cap Value Fund            C shares        11,156.86      5.49%        LPL FINANCIAL
                                                                                      9785 TOWNE CENTRE DRIVE
                                                                                      SAN DIEGO CA 92121-2003
Rydex|SGI Small Cap Value Fund            Institutional   42,073.93      77.58%       SECURITY BENEFIT CORP, SEED ACCOUNT
                                          Share class                                 ATTN: FINANCE
                                                                                      ONE SECURITY BENEFIT PL
                                                                                      TOPEKA KS 66636-1005


                                       G-5




                                                           AM0UNT OF     PERCENTAGE
                                            SHARE           SHARES         OF THE
           NAME OF THE FUND                 CLASS           OWNED          CLASS      NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                          
Rydex|SGI U.S. Intermediate Bond Fund     A Shares        2,626,001.72   41.38%       UMB BANK CUSTODIAN, SECURITY FINANCIAL
                                                                                      RESOURCES
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1010
Rydex|SGI U.S. Intermediate Bond Fund     A Shares        458,459.58     7.22%        SBL VARIABLE ANNUITY ACCOUNT XIV
                                                                                      SECURITY BENEFIT LIFE INSURANCE CO
                                                                                      5801 SW 6TH AVE
                                                                                      TOPEKA KS 66636-1005
Rydex|SGI U.S. Intermediate Bond Fund     A Shares        416,826.11     6.56%        CHARLES SCHWAB & CO INC
                                                                                      101 MONTGOMERY ST
                                                                                      SAN FRANCISCO CA 94104-4151
Rydex|SGI U.S. Intermediate Bond Fund     B Shares        23,435.84      5.54%        NFS LLC
                                                                                      336 LITITZ RD
                                                                                      MANHEIM PA 17545-9726
Rydex|SGI U.S. Intermediate Bond Fund     C shares        110,957.88     9.44%        PERSHING LLC
                                                                                      P. O. BOX 2052
                                                                                      JERSEY CITY, NJ 07303-10101
Rydex|SGI U.S. Intermediate Bond Fund     C shares        63,958.25      5.46%        NFS LLC
                                                                                      21170 BIG BASIN WAY
                                                                                      SARATOGA CA 95070-5754
Rydex|SGI U.S. Intermediate Bond Fund     C shares        61,791.65      5.27%        AMERITRADE INC
                                                                                      PO BOX 2226
                                                                                      OMAHA NE 68103-2234


                                                 AM0UNT OF     PERCENTAGE
                                                  SHARES         OF THE
           NAME OF THE FUND                       OWNED          CLASS      NAME AND ADDRESS OF THE BENEFICIAL OWNER
--------------------------------------------------------------------------------------------------------------------
                                                                   
Series A (Large Cap Core Series)                9,516,201.45     99.70%     SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1005
Series B (Large Cap Value Series)               10,296,830.33    98.74%     SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1006
Series C (Money Market Series)                  10,649,158.83    95.56%     SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1007
Series D (MSCI EAFE Equal Weight Series)        21,944,028.87    97.64%     SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1008
Series E (U.S. Intermediate Bond Series)        9,072,851.33     94.14%     SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1009


                                       G-6




                                                AM0UNT OF    PERCENTAGE
                                                 SHARES        OF THE
           NAME OF THE FUND                      OWNED         CLASS        NAME AND ADDRESS OF THE BENEFICIAL OWNER
------------------------------------------------------------------------------------------------------------------------------
                                                                   
Series J (Mid Cap Growth Series)             4,776,884.35      98.43%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1010
Series N (Managed Asset Allocation Series)   3,441,211.23      98.27%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1011
Series O (All Cap Value Series)              6,540,243.61      97.28%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1012
Series P (High Yield Series)                 3,692,785.35      94.90%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1013
Series Q (Small Cap Value Series)            3,304,741.92      96.61%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1014
Series V (Mid Cap Value Series)              4,644,646.50      96.70%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1015
Series X (Small Cap Growth Series)           1,938,861.82      96.45%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1016
Series Y (Large Cap Growth Series)           3,507,616.21      90.80%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1017
Series Z (Alpha Opportunity Series)          1,018,655.04      97.02%       SBL VARIABLE ANNUITY ACCOUNT XVII
                                                                            SECURITY BENEFIT LIFE INSURANCE CO
                                                                            5801 SW 6TH AVE
                                                                            TOPEKA KS 66636-1018


*A party holding in excess of 25% of the outstanding voting securities of a Fund
is presumed to be a "control person" (as defined in the 1940 Act) of such Fund,
based on the substantial ownership interest held and the party's resultant
ability to influence voting on certain matters submitted for shareholder
consideration.

                                       G-7


                                   APPENDIX H

                              MANAGEMENT OWNERSHIP

    As of the Record Date, the Directors and officers owned, of record and
beneficially (unless otherwise indicated), as a group, the following of each
Fund's outstanding securities:



RYDEX|SGI ALPHA OPPORTUNITY FUND
--------------------------------------------------------------------------------
TITLE OF THE CLASS       AMOUNT OF SHARES OWNED          PERCENTAGE OF THE CLASS
--------------------------------------------------------------------------------
                                                           
Class A                         7,439.68                         1.1%


RYDEX|SGI SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
TITLE OF THE CLASS       AMOUNT OF SHARES OWNED          PERCENTAGE OF THE CLASS
--------------------------------------------------------------------------------
                                                           
Class A                         36,832.98                        5.7%


                                       H-1


                                   APPENDIX I

                          NOMINATING COMMITTEE CHARTER

                                 SECURITY FUNDS

A.   COMMITTEE MEMBERSHIP

1.   The Nominating Committee ("Committee") of the Security Funds shall be
     composed solely of Directors who are not "interested persons" of the Funds
     as defined in Section 2(a)(19) of the Investment Company Act of 1940, as
     amended ("1940 Act") ("Independent Directors"). Other Board members, while
     not serving as members of the Committee, may participate in the nominating
     process by identifying and recommending potential candidates to the
     Committee for its consideration, and by otherwise assisting the Committee
     in the discharge of its responsibilities. In addition, the investment
     advisers and other service providers of the Funds may suggest Director
     candidates (including Independent Director candidates) for service on the
     Boards, and may provide administrative assistance in the selection and
     nomination process.

B.   BOARD NOMINATIONS AND FUNCTIONS

1.   In the event of any vacancies on a Board, the Committee shall oversee the
     process for the identification, evaluation and nomination of potential
     candidates to serve on the Board. The Committee may solicit suggestions
     for nominations from any source it deems appropriate.

2.   The Committee shall evaluate candidates' qualifications for Board
     membership, and, with respect to nominees for Independent Director
     membership, their independence from the Funds' investment advisers and
     other principal service providers. The Committee shall consider the effect
     of any relationships beyond those delineated in the 1940 Act that might
     impair the independence of a prospective Independent Director.

3.   In assessing the qualifications of a potential candidate for membership on
     the Boards, the Committee may consider the candidate's potential
     contribution to the operation of the Boards and their committees, and such
     other factors as it may deem relevant. Specific desired qualities of
     Independent Director candidates are set forth in Schedule A to this
     Charter. All equally qualified nominees will be treated equally in
     consideration by the Nominating Committee. No person shall be qualified to
     be a Board member unless the Committee, in consultation with legal
     counsel, has determined that such person, if elected as a Director, would
     not cause the Funds to be in violation of or not in compliance with (a)
     applicable law, regulation or regulatory interpretation, (b) their
     organizational documents, or (c) any policy adopted by

                                       I-1


     the Board regarding either the retirement age of any Board member or the
     percentage of the Board that would be composed of Independent Directors.

4.   While the Committee is solely responsible for the selection and nomination
     of potential candidates to serve on the Boards, the Committee may consider
     nominations from shareholders of the Funds. Shareholders may submit for
     the Committee's consideration,

     recommendations regarding potential nominees for service on the Boards.
     Each eligible shareholder or shareholder group may submit no more than one
     nominee each calendar year.

     (a)     In order for the Committee to consider shareholder submissions, the
     following requirements must be satisfied regarding the nominee:

            (i)    The nominee must satisfy all qualifications provided herein
            and in the Funds' organizational documents, including qualification
            as a possible Independent Director if the nominee is to serve in
            that capacity.

            (ii)   The nominee may not be the nominating shareholder, a member
            of the nominating shareholder group or a member of the immediate
            family of the nominating shareholder or any member of the nominating
            shareholder group.(1)

            (iii)  Neither the nominee nor any member of the nominee's immediate
            family may be currently employed or employed within the year prior
            to the nomination by any nominating shareholder entity or entity in
            a nominating shareholder group.

            (iv)   Neither the nominee nor any immediate family member of the
            nominee is permitted to have accepted directly or indirectly,
            during the year of the election for which the nominee's name was
            submitted, during the immediately preceding calendar year, or
            during the year when the nominee's name was submitted, any
            consulting, advisory, or other compensatory fee from the
            nominating shareholder or any member of a nominating shareholder
            group.

            (v)    The nominee may not be an executive officer, director or
            person fulfilling similar functions of the nominating shareholder
            or any member of the nominating shareholder group, or of an
            affiliate of the nominating shareholder or any such member of the
            nominating shareholder group.

            (vi)   The nominee may not control the nominating shareholder or any
            member of the nominating shareholder group (or, in the case of a
            holder or member that is a fund, an interested person of such
            holder or member as defined by Section 2(a)(19) of the 1940 Act).

            (vii)  A shareholder or shareholder group may not submit for
            consideration a nominee which has previously been considered by the
            Committee.

     (b)    In order for the Committee to consider shareholder submissions, the
     following requirements must be satisfied regarding the shareholder or
     shareholder group submitting the proposed nominee:

------------------------
(1)  Terms such as "immediate family member" and "control" shall be interpreted
     in accordance with the federal securities laws.

                                       I-2


            (i)    Any shareholder or shareholder group submitting a proposed
            nominee must beneficially own, either individually or in the
            aggregate, more than 5% of a Fund's (or a series thereof)
            securities that are eligible to vote both at the time of
            submission of the nominee and at the time of the Board member
            election. Each of the securities used for purposes of calculating
            this ownership must have been held continuously for at least two
            years as of the date of the nomination. In addition, such
            securities must continue to be held through the date of the
            meeting. The nominating shareholder or shareholder group must
            also bear the economic risk of the investment.

            (ii)   The nominating shareholder or shareholder group must also
            submit a certification which provides the number of shares which
            the person or group has (a) sole power to vote or direct the
            vote; (b) shared power to vote or direct the vote; (c) sole power
            to dispose or direct the disposition of such shares; and (d)
            shared power to dispose or direct the disposition of such shares.
            In addition the certification shall provide that the shares have
            been held continuously for at least two years.

     (c)    Shareholders or shareholder groups submitting proposed nominees
     must substantiate compliance with the above requirements at the time of
     submitting their proposed nominee as part of their written submission to
     the attention of the Funds' Secretary, who will provide all submissions to
     the Committee. This submission to the Funds must include:

            (i)    the shareholder's contact information;

            (ii)   the nominee's contact information and the number of
            applicable Fund shares owned by the proposed nominee;

            (iii)  all information regarding the nominee that would be required
            to be disclosed in solicitations of proxies for elections of
            directors required by Regulation 14A under the Securities Exchange
            Act; and

            (iv)   a notarized letter executed by the nominee, stating his or
            her intention to serve as a nominee and be named in a Fund's proxy
            statement, if so designated by the Committee and the Fund's Board.

     The Committee will consider all submissions meeting the applicable
     requirements stated herein that are received not earlier than January 1 of
     the most recently completed calendar year. It shall be in the Committee's
     sole discretion whether to seek corrections of a deficient submission or
     to exclude a nominee from consideration.

                                       I-3


5.   The Committee shall evaluate as necessary the operations and effectiveness
     of the Board as a whole and shall evaluate the composition of the Board to
     determine whether it may be appropriate to add individuals with different
     backgrounds or skills from those already on the Board.

C.   COMMITTEE NOMINATIONS

1.   The Committee shall make nominations for membership on all committees and
     shall review Board committee assignments as necessary.

2.   The Committee shall review as necessary the responsibilities of any
     committee of the Boards, whether there is a continuing need for each
     committee, whether there is a need for additional committees, and whether
     committees should be combined or reorganized. The Committee shall make
     recommendations for any such action to the full Boards.

D.   OTHER POWERS AND RESPONSIBILITIES

1.   The Committee shall meet as necessary in connection with any vacancy on or
     addition to a Board, and otherwise from time to time as it deems
     appropriate to perform its responsibilities.

2.   The Committee shall have the resources and authority appropriate to
     discharge its responsibilities, including the ability to engage and
     compensate from Fund assets third party consultants to assist with
     identification and evaluation of potential Independent Directors.

3.   The Committee shall recommend to the Boards any revisions or modifications
     to this Charter that the Committee deems necessary or appropriate to the
     effective exercise of its responsibilities.

                                       I-4


                                SCHEDULE A

                  RESPONSIBILITIES AND DESIRED QUALITIES

                         OF INDEPENDENT DIRECTORS

PRIMARY RESPONSIBILITIES

     The Independent Director's primary responsibility is management oversight
of the Funds on behalf of shareholders. Diverse responsibilities include review
and negotiation of contractual arrangements with management and other service
providers; and oversight and review of service provider performance, investment
performance, compliance, shareholder services and communication with
shareholders.

PERSONAL ATTRIBUTES

       o      Public or private sector stature sufficient to instill confidence.
       o      High personal and professional integrity.
       o      Good business sense.
       o      Able to commit the necessary time to prepare for and attend
              meetings.
       o      Not financially dependent on director retainer and meeting fees.

SKILLS, EXPERIENCE AND QUALIFICATIONS FOR DECISION MAKING

       o      General understanding of financial issues, investing, financial
              markets and technology.
       o      General understanding of balance sheets and operating statements.
       o      First-hand knowledge of investing.
       o      Experience in working in highly regulated and complex legal
              framework.
       o      Demonstrated ability to maintain "independence" of management and
              other service agents while maintaining a constructive working
              relationship.
       o      Ability to be critical, but not confrontational.
       o      Demonstrated ability to contribute to Board and committee process.
       o      Ability to consider diverse issues and make timely, well-informed
              decisions.
       o      Familiarity with the securities industry.
       o      Qualification as an "Audit Committee Financial Expert" (desired
              but not required).

                                       I-5


                               FORM OF PROXY CARD

    [LOGO OF RYDEX | SGI]                PROXY CARD FOR
SECURITY GLOBAL INVESTORS[SM]            [FUND NAME PRINTS HERE]
                                         PROXY FOR A SPECIAL JOINT MEETING OF
                                         SHAREHOLDERS - NOVEMBER 22, 2011

The undersigned hereby appoint(s) Joanna Haigney, Amy Lee and Beth Miller or any
one of them, proxies, each of them with full power of substitution, to vote and
act with respect to all shares of the above referenced fund (the "Fund") which
the undersigned is entitled to vote at the Special Meeting of shareholders of
the Fund to be held at the executive offices of Security Investors, LLC at One
Security Benefit Place, Topeka, Kansas 66636 on November 22, 2011 at 1:00 p.m.
Central Time, and at any adjournment(s) or postponements thereof.

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. THIS PROXY CARD
WILL BE VOTED AS INSTRUCTED. IF NO SPECIFICATION IS MADE, THE PROXY CARD WILL BE
VOTED "FOR" THE PROPOSALS. THE PROXIES ARE AUTHORIZED, IN THEIR DISCRETION, TO
VOTE UPON SUCH MATTERS AS MAY COME BEFORE THE SPECIAL MEETING OR ANY
ADJOURNMENTS.

-----------------------------------------------

 TAG ID: 123456

 NA1 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA2 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA3 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA4 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA5 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA6 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY
 NA7 - RYDEX SGI - BALLOT 1 - BOOK 1 SECURITY

-----------------------------------------------

NOTE: This proxy must be signed exactly as your name(s) appears here on. If as
an attorney, executor, guardian or in some representative capacity or as an
officer of a corporation, please add titles as such. Joint owners must each
sign. By signing this proxy card, you acknowledge that you have received the
proxy statement that the proxy card accompanies.

-----------------------------------------------
Shareholder sign here                Date

-----------------------------------------------
Joint owner sign here                Date

PLEASE SEE THE INSTRUCTIONS BELOW IF YOU WISH TO VOTE BY PHONE (live proxy
representative or touch-tone phone), BY MAIL OR VIA THE INTERNET. Please use
whichever method is most convenient for you. If you choose to vote via the
Internet or by phone, you should not mail your proxy card. Please vote today!

                                                                          
PHONE:        To cast your vote by phone with a proxy voting
              representative, please call toll-free 1-877-864-5058.             -----------------------------------
              Representatives are available to take your voting                           CONTROL NUMBER:
              instructions Monday through Friday 9:00 a.m. to 11:00                        123456789112
              p.m. Eastern Time.                                                -----------------------------------

MAIL:         To vote your proxy by mail, check the appropriate voting
              box on the reverse side of this proxy card, sign and date            IMPORTANT NOTICE REGARDING THE
              the card and return it in the enclosed postage-paid               AVAILABILITY OF PROXY MATERIALS FOR
              envelope.                                                               THIS SPECIAL MEETING OF
                                                                                    SHAREHOLDERS TO BE HELD ON
    Options below are available 24 hours a day/7 days a week                           NOVEMBER 22, 2011

TOUCHTONE:    To cast your vote via a touch-tone voting line, call toll-           THE PROXY STATEMENT FOR THIS
              free 1-888-227-9349 and enter the control number to                    MEETING IS AVAILABLE AT:
              the right.                                                          www.proxyonline.us/docs/rydexsgi

INTERNET:     To vote via the Internet, go to www.proxyonline.us and
              enter the control number found to the right.



       IT IS IMPORTANT THAT PROXIES BE VOTED PROMPTLY. EVERY SHAREHOLDER'S
                               VOTE IS IMPORTANT.


[FUND NAME PRINTS HERE]

QUESTIONS ABOUT THIS PROXY? Should you have any questions about the proxy
materials or regarding how to vote your shares, please contact our proxy
information line TOLL-FREE AT 1-877-864-5058. Representatives are available
Monday through Friday 9:00 a.m. to 11:00 p.m. Eastern Time. We have retained The
Altman Group to assist our shareholders in the voting process. If we have not
received your proxy card or vote as the date of the Special meeting approaches,
representatives from The Altman Group may call you to remind you to exercise
your vote.

TO VOTE, MARK BOXES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: [ ]

YOU MAY VOTE ON THE PROPOSED CHANGES ON THE PROPOSALS AS A GROUP OR
INDIVIDUALLY. PLEASE USE ONLY ONE METHOD.


--------------------------------------------------------------------------------------------------------------------------
                                                                                                               
TO VOTE ALL OF THE PROPOSALS IN ACCORDANCE WITH MANAGEMENT'S                                                      FOR ALL
RECOMMENDATIONS, PLEASE CHECK THE BOX TO THE RIGHT.

IF THE FOR ALL BOX ON THIS BALLOT IS MARKED, THIS VOTE WILL
OVERRIDE ANY INDIVIDUAL VOTES MADE BELOW.                                                                           [ ]

--------------------------------------------------------------------------------------------------------------------------


                                                                                                      
                                                                              FOR             AGAINST             ABSTAIN
1.   To approve a new investment management agreement between the
     Company and Securities Investors, LLC                                    [ ]               [ ]                 [ ]

2.   To approve the following individuals as directors of the Company         FOR             WITHHOLD
     (allocating your cumulative votes equally):

          (1) Donald C. Cacciapaglia                                          [ ]               [ ]

          (2) Donald A. Chubb, Jr.                                            [ ]               [ ]

          (3) Harry W. Craig, Jr.                                             [ ]               [ ]

          (4) Jerry B. Farley                                                 [ ]               [ ]

          (5) Richard M. Goldman                                              [ ]               [ ]

          (6) Penny A. Lumpkin                                                [ ]               [ ]

          (7) Maynard F. Oliverius                                            [ ]               [ ]


     With respect to Proposal 2, each shareholder is entitled to vote that
     number of shares owned as of the record date multiplied by the number of
     Directors to be elected. A shareholder may cast all such votes for a single
     director or distribute them among two or more directors. This method of
     voting for the election of directors is commonly known as "cumulative
     voting." If you wish to allocate your votes other than equally among
     nominees, write the nominee(s) number and the percentage of your cumulative
     votes that you chose on the line provided below.

     ---------------------------------------------------------------------------

     Registered shareowners wishing to exercise cumulative voting rights must
     specify how their votes are to be cast by submitting a proxy card or, if
     voting in person at the Special Meeting, by submitting a ballot that
     includes instructions to cumulate votes and the manner in which votes are
     to be distributed among the nominees.



                                                                                FOR        AGAINST        ABSTAIN
                                                                                                
3.  To approve a new fundamental investment policy on diversification
    of investments for SBL Fund--Series N (Managed Asset Allocation Series).    [ ]          [ ]            [ ]


YOU MAY HAVE RECEIVED MORE THAN ONE BALLOT DUE TO MULTIPLE INVESTMENTS IN THE
FUNDS. PLEASE REMEMBER TO VOTE ALL OF YOUR BALLOTS! Remember to SIGN AND DATE
THE REVERSE SIDE before mailing in your vote. This proxy card is valid only when
signed and dated. Thank you for voting.

COVER

                             [Rydex|SGI Letterhead]

October 13, 2011

VIA EDGAR

Division of Investment Management
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549

Attn:   Ms. Allison White
        Mr. Richard Pfordte
        Ms. Kim Browning

Re:     Security Equity Fund (File No. 811-01136)
        Security Large Cap Value Fund (File No. 811-00487)
        Security Mid Cap Growth Fund (File No. 811-01316)
        Security Income Fund (File No. 811-02120)
        SBL Fund (File No. 811-02753)
        Rydex Series Funds (File No. 811-07584)
        Rydex Dynamic Funds (File No. 811-09525)
        Rydex Variable Trust (File No. 811-08821)
        Rydex ETF Trust (File No. 811-21261)
        (each, a "Registrant" and collectively, the "Registrants")

Ladies and Gentlemen:

On behalf of the Registrants, we are transmitting for filing pursuant to Rule
14a-6 under the Securities Act of 1934 ("1934 Act") definitive proxy statements,
forms of proxies and other soliciting materials ("Proxy Materials") relating to
a Special Joint Meeting of Shareholders of each series of the Registrants
(together, the "Funds"). No fees are required with this filing.

The Registrants wish to respond by this letter to comments of the U.S.
Securities and Exchange Commission ("SEC") staff on the preliminary Proxy
Materials filed pursuant to Rule 14a-6 under the 1934 Act on September 23, 2011.
Comments regarding the Proxy Materials filed on behalf of SBL Fund were conveyed
orally by Ms. White of the Division of Investment Management (the "Division")
via telephone to Sonia Kothari at Dechert LLP on September 29, 2011. Comments
regarding the Proxy Materials filed on behalf of the other Registrants were
conveyed orally by Mr. Pfordte and Ms. Browning of the Division via a telephone
conference with Julien Bourgeois and Ms. Kothari on October 7, 2011.

Throughout this letter, capitalized terms have the same meaning as in the Proxy
Materials, unless otherwise noted. A summary of the SEC staff's comments,
followed by the responses of the Registrants, is set forth below:

ALL REGISTRANTS

   1.  Comment:   The Proxy Materials state that the change in control "could be
       deemed to terminate" the investment management agreements. Please revise
       the Proxy Materials to


       more clearly provide that the change in control "would terminate" the
       investment management agreements.

       Response:  The Registrants have implemented the requested change.

   2.  Comment:   In the first question of the Q&A please add additional detail
       about the change of control transaction and the various parties
       involved, as has been done in other sections of the document.

       Response:  The Registrants have incorporated additional information
       regarding the change in control transaction.

   3.  Comment:   In the Q&A regarding the vote required to approve the
       proposals, please indicate that the definition of "vote of a majority
       of the outstanding voting securities" applies to both Proposal 1 and
       Proposal 3.

       Response:  The Registrants have implemented the requested change.

   4.  Comment:   In the "Notice of Special Joint Meeting of Shareholders,"
       please revise the statement regarding the Board's recommendation to
       make it clearer that the recommendation regarding the election of
       nominees is unanimous.

       Response:  The Registrants have implemented the requested change.

   5.  Comment:   In the discussion of Proposal 1, please consider adding
       additional material details regarding the Transaction as appropriate,
       including: (a) the purchase price; (b) the material terms of the
       Transaction; and (c) any other ancillary agreements that may affect the
       Funds, as each of these is relevant to whether the Transaction may
       impose an unfair burden on the Funds.

       Response:  The Registrants believe that the current disclosure
       sufficiently describes the material terms of the Transaction. In this
       regard, the Registrants note that the Proxy Materials explain which
       entities will ultimately be in control of the Investment Manager
       following the consummation of the Transaction. The Registrants
       respectfully disagree that the purchase price is material to the impact
       of the Transaction on the Funds and respectfully note that this
       information is not required by the Proxy Form items.

   6.  Comment:   If applicable, please address through disclosure the situation
       of the agreements relating to the implementation of the Rule 12b-1
       plans of the Funds which would terminate because of the "assignment"
       created by the change in control.

       Response:  The Registrants have implemented the requested change.

   7.  Comment:   Please disclose that if Proposal 1 is not approved, and the
       Funds enter into interim investment management agreements with the
       Investment Manager, that such agreements would be limited in duration.

       Response:  The Registrants have implemented the requested change.

                                        2


   8.  Comment:   Please consider whether to include additional disclosure about
       the relationships of the Funds with affiliated brokers in connection
       with the discussion of Section 15(f).

       Response:  The Registrants believe that all material information has
       already been disclosed.

   9.  Comment:   The Proxy Materials state that the "Investment Manager has
       represented to the Board that no unfair burden would be imposed on the
       Funds as a result of the Transaction." Please consider whether to
       include additional information about the Board's conclusions.

       Response:  The Registrants believe that all material information has
       already been disclosed.

   10. Comment:   Please consider adding additional detail regarding the revenue
       sharing agreements entered into by the Investment Manager.

       Response:  The Registrants have implemented the requested change.

   11. Comment:   Please add additional detail explaining the impact of the
       Transaction on the sub-advisory agreements.

       Response:  The Registrants have implemented the requested change.

   12. Comment:   Please clarify the Board's considerations and findings
       regarding economies of scale that may result from the Transaction.

       Response:  The Registrants have implemented the requested change.

   13. Comment:   Please confirm that December 31, 2010 is the most recent
       practicable date for the disclosure of the nominees' beneficial
       ownership of shares of the Funds.

       Response:  The Registrant confirms the foregoing.

   14. Comment:   In the description of the Nominating Committee, please
       disclose that the Nominating Committee has a charter.

       Response:  The Registrants have implemented the requested change.

   15. Comment:   In the description of the Nominating Committee, the disclosure
       required by Items 407(c)(2)(v) through (vii) of Reg S-K, as required by
       Item 22(b)(15)(ii)(A) of Schedule 14A, is not stated. Please confirm
       that no additional disclosure is required.

       Response:  The Registrant has incorporated the comment by adding a
       statement noting that the information set forth in Items 407(c)(2)(v)
       and (vi) of Reg S-K may be found in the Nominating Committee charter. No
       additional disclosure is required.

   16. Comment:   In the section "Additional Information--Voting Information--
       Shareholder Voting," please reiterate that the record date is October 3,
       2011.

       Response:  The Registrants have implemented the requested change.

                                        3


   17. Comment:   Please include standard Tandy representation language in your
       transmittal letter for your upcoming filing.

       Response:  Each Registrant agrees to make the following representations:

         o  the Registrant is responsible for the adequacy and accuracy of the
            disclosure in the filing;

         o  the staff comments or changes to disclosure in response to staff
            comments in the filing reviewed by the staff do not foreclose the
            SEC from taking any action with respect to the filing; and

         o  the Registrant may not assert staff comments as a defense in any
            proceeding initiated by the SEC under the federal securities laws.

SECURITY EQUITY FUND, SECURITY LARGE CAP VALUE FUND, SECURITY MID CAP GROWTH
FUND, SECURITY INCOME FUND AND SBL FUND

   18. Comment:   In the first paragraph of the cover letter, please confirm
       that the reference to the defined term "Investment Adviser" is correct.

       Response:  The reference to "Investment Adviser" has been corrected and
       replaced with the defined term "Investment Manager".

   19. Comment:   The Proxy Materials provide that if Mr. Cacciapaglia were
       elected by shareholders, his term of office would only begin upon the
       appointment by the Board of an additional Independent Director (or other
       action taken to maintain a Board composition of at least 75%
       non-interested Directors). Please explain how this arrangement is
       consistent with the 1940 Act and rules thereunder (and please indicate
       whether this arrangement would create a separate class of directors),
       state law principles, and the Fund's organizational documents.

       Response: The Proxy Materials contemplate that Mr. Cacciapaglia's
       election would be voted upon by shareholders at the Special Meeting, but
       that even if he were elected, he would not be "qualified" for service as
       a director until the occurrence of some future event (e.g., the
       appointment of an additional Director).(1)

       There is no provision of the 1940 Act or rules thereunder that would
       prohibit this arrangement. Section 10(a) requires that no more than 60%
       of a fund's board be comprised of "interested persons." The Board will
       comply with Section 10(a), regardless of whether the contingency were to
       occur and Mr. Cacciapaglia were to qualify as a Director. The Board also
       has a 75% requirement (consistent with Section 15(f)(1)(A)).

       Furthermore, Section 16(a) permits a board to fill vacancies without
       seeking a shareholder vote if immediately after filling any vacancy, at
       least two-thirds of the board has been elected by shareholders. This
       provision would permit the Board to later add an additional independent
       Director by appointment, which would then qualify Mr.

__________________________________
(1)    Kan. Stat. Ann. Section 17-6301(b) provides that "each director shall
hold office until a successor is elected and qualified or until such director's
earlier resignation or removal" (emphasis added).

                                        4


       Cacciapaglia. Section 16(a) also permits a fund board to divide itself
       into classes if permitted to do so under state law and the fund's
       organizational documents, provided that no class is elected for less
       than one year or for longer than five years, and the term of each class
       expires each year. The arrangement contemplated in the Proxy Materials
       would not classify the Board, as Mr. Cacciapaglia would not become a
       Director pursuant to state law until he qualifies for office at a later
       date.(2)

       Apart from the aforementioned provisions, the 1940 Act leaves to
       applicable state law the manner in which directors are elected and
       qualified. Section 50 of the 1940 Act provides, in relevant part, that
       "except where specific provision is made to the contrary, nothing in
       this title shall affect...the jurisdiction of any other commission,
       board, agency, or officer of...any State or political subdivision of any
       State, over any person, security or transaction, insofar as such
       jurisdiction does not conflict with any provision of this title or of
       any rule, regulation, or order hereunder." The SEC Staff has emphasized
       in no-action relief the governing application of state law over director
       elections, stating that "investment companies are incorporated and
       operate pursuant to state law subject to certain requirements imposed by
       [the 1940 Act]."(3)

       Applicable law in Kansas, where the Fund is organized, also does not
       prohibit this arrangement. Kansas corporate law sets forth only
       parameters as to how a director qualifies for service as a director,
       deferring instead to the corporation's organizational documents. Kan.
       Stat. Ann. Section 17-6301(b) provides that a director of a corporation
       need not be a shareholder unless required by the charter or bylaws; that
       the board must consist of at least one natural person; and that "the
       articles of incorporation or bylaws may prescribe other qualifications
       for directors."

       Neither do the Fund's organizational documents prohibit this
       arrangement. The Fund's Articles of Incorporation are silent on the
       matter of director qualification. However, Paragraph 22 of the Fund's
       Bylaws provides that "every Director of the Corporation, upon his/her
       election, shall qualify by accepting the office of the Director, and
       his/her attendance at, or his/her written approval of the minutes of,
       any meeting of the Board subsequent to his/her election shall constitute
       his/her acceptance of such office; or (s)he may execute such acceptance
       by a separate writing, which shall be placed in the minute book." This
       language clarifies the distinction between a director's election and his
       or her qualification. The Bylaws reflect that it would be permissible
       for Mr. Cacciapaglia to be elected by shareholders at the Special
       Meeting, but for his qualification as a director to occur at a later
       time. Accordingly, if elected by shareholders, Mr. Cacciapaglia would
       decline to accept the office of Director until an additional Director
       were appointed by the Board (or until some other action were taken to
       maintain a composition of at least 75% non-interested Directors).

   20. Comment:   Please also add additional disclosure explaining that: (a)
       shareholders are being asked to elect the other nominees so that if and
       when an additional Independent Director is appointed, the Board will
       continue to comprise a majority of Directors who have been elected by
       shareholders; and (b) Mr. Cacciapaglia will not be involved in the
       process of appointing the new Independent Director.

_______________________________
(2)    The other provisions of the 1940 Act and rules thereunder which bear upon
director elections, Section 16(b) and Rule 10e-1, are not relevant to Mr.
Cacciapaglia's election.

(3)    John Nuveen & Co. Inc. (pub. avail. Nov. 18, 1986). See also Burks v.
Lasker, 441 U.S. 471, 478 (1979).

                                        5


       Response:  The Registrants have implemented the requested change.

   21. Comment:   In the section "Additional Information--Voting Information--
       Shareholder Voting," please revise the reference to the appendix
       containing the number of outstanding shares as of the record date from
       Appendix E to Appendix F.

       Response:  The Registrants have implemented the requested change.

   22. Comment:   In the section "Additional Information--Administrator,
       Principal Underwriters and Transfer Agent," please revise the reference
       to the appendix containing information regarding fees paid for
       administrative and transfer agent services from Appendix B to Appendix C.

       Response:  The Registrants have implemented the requested change.

SBL FUND

   23. Comment:   With regard to Proposal 3, the Proxy Materials state that
       "Under the 1940 Act, any change to a fundamental investment policy must
       be approved by shareholders of the fund." Please revise this to state
       that "Under the 1940 Act, any deviation from a fundamental investment
       policy must be approved by shareholders of the fund," to more precisely
       state the 1940 Act requirement.

       Response:  The Registrants have implemented the requested change.

   24. Comment:   With regard to Proposal 3, please confirm that if the proposal
       is approved, and any additional investments in other investment
       companies are made that would materially affect Series N's fees, the
       fees and expenses of the series would not increase, such that the fee
       table in the prospectus would not need to be restated and included in
       the proxy statement per the requirement of Item 22(a)(3)(iv) of Schedule
       14A.

       Response:  The proposal would generate new acquired fees and expenses and
       includes the requested disclosure in response to the proposal.

   25. Comment:   In the discussion of the 1940 Act "75% test", please move the
       parenthetical "(as these investments can generally be deemed less
       risky)" so that it is clear that only government securities, and not
       other investment companies, are deemed less risky.

       Response:  The Registrants have implemented the requested change.

   26. Comment:   Please add additional detail regarding the extent to which the
       1940 Act permits investments in other investment companies.

       Response:  The Registrants have implemented the requested change.

   27. Comment:   With regard to Proposal 3, please disclose whether Series N
       would invest in other investment companies that are affiliates. If so,
       please explain whether the Investment Manager would be waiving any
       management fees with respect to such

                                        6


       investments, and whether there would be any additional benefits from
       investing in such affiliated funds.

        Response: The Registrants have implemented the requested change.

Please call Julien Bourgeois at Dechert LLP at 202.261.3451 with any questions
or comments regarding this letter, or if he may assist you in any way.

                                              Very truly yours,

                                              /s/ Amy J. Lee
                                              ----------------------------------
                                              Amy J. Lee

                                              Vice President and Secretary

                                        7