UNITED STATESSECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

Rydex Series Funds

(Exact name of registrant as specified in charter)

805 King Farm Boulevard, Suite 600

Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds

805 King Farm Boulevard, Suite 600

Rockville, Maryland 20850

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-301-296-5100

Date of fiscal year end: March 31

Date of reporting period: September 30, 2016

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

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

Item 1. Reports to Stockholders.

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

9.30.2016

Rydex Funds Semi-Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

GuggenheimInvestments.com RSECF-SEMI-0916x0917

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
BANKING FUND	9
BASIC MATERIALS FUND	16
BIOTECHNOLOGY FUND	23
CONSUMER PRODUCTS FUND	30
ELECTRONICS FUND	38
ENERGY FUND	45
ENERGY SERVICES FUND	54
FINANCIAL SERVICES FUND	60
HEALTH CARE FUND	70
INTERNET FUND	78
LEISURE FUND	85
PRECIOUS METALS FUND	93
REAL ESTATE FUND	99
RETAILING FUND	107
TECHNOLOGY FUND	114
TELECOMMUNICATIONS FUND	122
TRANSPORTATION FUND	129
UTILITIES FUND	136
NOTES TO FINANCIAL STATEMENTS	143
OTHER INFORMATION	152
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	155
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	159

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2016

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for 18 of our Sector Funds (the “Funds”) for the six-month period ended September 30, 2016.

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

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

We encourage you to read the Economic and Market Overview section of the report, which follows this letter.

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

Sincerely,

Donald C. Cacciapaglia
President and Chief Executive Officer
October 31, 2016

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2016

Economic growth continues to rebound, even though the rise in U.S. Gross Domestic Product (“GDP”) disappointed in the first half of 2016. There was a large headwind from inventory drawdowns, which should soon reverse after five quarters of dragging on growth. Real GDP growth is expected to be around 2.5 percent in the second half of the year, driven by consumption, housing, and a fading trade drag, and supporting the view that U.S. economic growth remains resilient to global weakness.

The euro zone economy is slowly improving, but inflation will likely persist well below the European Central Bank’s (“ECB”) target in the coming quarters due to substantial slack. The ECB has indicated that more quantitative easing is possible, but will soon need to alter the quantitative easing program in order to keep up their purchase pace. Both China and Japan need weaker currencies. Chinese growth and capital flows have stabilized for now, but surging construction and a credit boom raise the prospect of future instability. Japan’s economic prospects are weak, and inflation remains far from the Bank of Japan’s (“BOJ”) target. The surging yen could drive further policy easing, including an increase in fiscal stimulus.

It appears the U.S. Federal Reserve (the “Fed”) will move forward with raising rates in December, absent any economic or geopolitical surprise or a meaningful tightening of financial conditions over the fourth quarter. But key events could influence risk asset performance for the balance of the year: A continued recovery in oil prices following the Organization of Petroleum Exporting Countries (“OPEC”) agreement to keep production between 32.5 to 33 million barrels per day would help sustain the rally (although we are skeptical that they will adhere to any quota based on historical production levels). Global oil inventories remain high, but supply and demand are moving toward balance. A rebound in GDP growth would also lift U.S. equity and corporate bond prices higher.

The macroeconomic picture remains the same; we are not on the verge of a recession. But despite our positive outlook on the U.S. economy, valuations across risk assets argue for caution. Ongoing accommodation from central bankers across the globe has alleviated much of the initial macroeconomic tail risk posed by Brexit but may not be enough to dampen the seasonal volatility typically observed in the fourth quarter. Ongoing troubles in the banking sector, such as the woes afflicting Deutsche Bank and Wells Fargo, coupled with uncertainty surrounding upcoming political events, which include the new Trump administration, the Italian constitutional referendum, and key European elections, may create volatility for risk assets for the balance of the year.

For the six months ended September 30, 2016, the Standard & Poor’s 500^® (“S&P 500^®”) Index* returned 6.40%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 4.88%. The return of the MSCI Emerging Markets Index* was 9.75%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.68% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 11.38%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.17% for the six-month period.

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

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

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

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

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

MSCI EAFE Index is a capitalization-weighted measure of stock markets in Europe, Australasia, and the Far East.

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2016 and ending September 30, 2016.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.36%	10.42%	$ 1,000.00	$ 1,104.20	$ 7.17
A-Class	1.61%	10.32%	1,000.00	1,103.20	8.49
C-Class	2.36%	9.89%	1,000.00	1,098.90	12.42
H-Class	1.61%	10.33%	1,000.00	1,103.30	8.49
Basic Materials Fund
Investor Class	1.37%	13.59%	1,000.00	1,135.90	7.34
A-Class	1.61%	13.46%	1,000.00	1,134.60	8.62
C-Class	2.36%	13.03%	1,000.00	1,130.30	12.60
H-Class	1.61%	13.49%	1,000.00	1,134.90	8.62
Biotechnology Fund
Investor Class	1.36%	14.35%	1,000.00	1,143.50	7.31
A-Class	1.60%	14.21%	1,000.00	1,142.10	8.59
C-Class	2.35%	13.76%	1,000.00	1,137.60	12.59
H-Class	1.60%	14.16%	1,000.00	1,141.60	8.59
Consumer Products Fund
Investor Class	1.36%	3.18%	1,000.00	1,031.80	6.93
A-Class	1.61%	3.06%	1,000.00	1,030.60	8.20
C-Class	2.35%	2.67%	1,000.00	1,026.70	11.94
H-Class	1.61%	3.06%	1,000.00	1,030.60	8.20
Electronics Fund
Investor Class	1.37%	17.69%	1,000.00	1,176.90	7.48
A-Class	1.62%	17.59%	1,000.00	1,175.90	8.84
C-Class	2.36%	17.12%	1,000.00	1,171.20	12.85
H-Class	1.61%	17.46%	1,000.00	1,174.60	8.78
Energy Fund
Investor Class	1.36%	19.34%	1,000.00	1,193.40	7.48
A-Class	1.61%	19.14%	1,000.00	1,191.40	8.84
C-Class	2.36%	18.74%	1,000.00	1,187.40	12.94
H-Class	1.61%	19.12%	1,000.00	1,191.20	8.84
Energy Services Fund
Investor Class	1.36%	7.92%	1,000.00	1,079.20	7.09
A-Class	1.61%	7.71%	1,000.00	1,077.10	8.38
C-Class	2.36%	7.32%	1,000.00	1,073.20	12.27
H-Class	1.61%	7.67%	1,000.00	1,076.70	8.38
Financial Services Fund
Investor Class	1.37%	7.24%	1,000.00	1,072.40	7.12
A-Class	1.61%	7.11%	1,000.00	1,071.10	8.36
C-Class	2.36%	6.70%	1,000.00	1,067.00	12.23
H-Class	1.61%	7.11%	1,000.00	1,071.10	8.36
Health Care Fund
Investor Class	1.36%	7.57%	1,000.00	1,075.70	7.08
A-Class	1.61%	7.38%	1,000.00	1,073.80	8.37
C-Class	2.36%	7.00%	1,000.00	1,070.00	12.25
H-Class	1.61%	7.41%	1,000.00	1,074.10	8.37

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Internet Fund
Investor Class	1.37%	14.91%	$ 1,000.00	$ 1,149.10	$ 7.38
A-Class	1.61%	14.77%	1,000.00	1,147.70	8.67
C-Class	2.36%	14.33%	1,000.00	1,143.30	12.68
H-Class	1.61%	14.79%	1,000.00	1,147.90	8.67
Leisure Fund
Investor Class	1.36%	1.73%	1,000.00	1,017.30	6.88
A-Class	1.61%	1.61%	1,000.00	1,016.10	8.14
C-Class	2.36%	1.22%	1,000.00	1,012.20	11.90
H-Class	1.61%	1.59%	1,000.00	1,015.90	8.14
Precious Metals Fund
Investor Class	1.26%	34.53%	1,000.00	1,345.30	7.41
A-Class	1.51%	34.33%	1,000.00	1,343.30	8.87
C-Class	2.26%	33.88%	1,000.00	1,338.80	13.25
H-Class	1.51%	34.40%	1,000.00	1,344.00	8.87
Real Estate Fund
A-Class	1.62%	6.49%	1,000.00	1,064.90	8.39
C-Class	2.37%	6.11%	1,000.00	1,061.10	12.25
H-Class	1.62%	6.50%	1,000.00	1,065.00	8.39
Retailing Fund
Investor Class	1.37%	(2.26%)	1,000.00	977.40	6.79
A-Class	1.62%	(2.37%)	1,000.00	976.30	8.03
C-Class	2.36%	(2.76%)	1,000.00	972.40	11.67
H-Class	1.61%	(2.39%)	1,000.00	976.10	7.98
Technology Fund
Investor Class	1.37%	12.67%	1,000.00	1,126.70	7.30
A-Class	1.62%	12.55%	1,000.00	1,125.50	8.63
C-Class	2.36%	12.11%	1,000.00	1,121.10	12.55
H-Class	1.61%	12.49%	1,000.00	1,124.90	8.58
Telecommunications Fund
Investor Class	1.37%	9.81%	1,000.00	1,098.10	7.21
A-Class	1.61%	9.63%	1,000.00	1,096.30	8.46
C-Class	2.36%	9.25%	1,000.00	1,092.50	12.38
H-Class	1.61%	9.65%	1,000.00	1,096.50	8.46
Transportation Fund
Investor Class	1.37%	2.18%	1,000.00	1,021.80	6.94
A-Class	1.61%	2.08%	1,000.00	1,020.80	8.16
C-Class	2.36%	1.70%	1,000.00	1,017.00	11.93
H-Class	1.62%	2.06%	1,000.00	1,020.60	8.21
Utilities Fund
Investor Class	1.39%	1.74%	1,000.00	1,017.40	7.03
A-Class	1.64%	1.59%	1,000.00	1,015.90	8.29
C-Class	2.38%	1.21%	1,000.00	1,012.10	12.00
H-Class	1.62%	1.62%	1,000.00	1,016.20	8.19

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.36%	5.00%	$ 1,000.00	$ 1,018.25	$ 6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Basic Materials Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Biotechnology Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
C-Class	2.35%	5.00%	1,000.00	1,013.29	11.86
H-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
Consumer Products Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.35%	5.00%	1,000.00	1,013.29	11.86
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Electronics Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Energy Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Energy Services Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Financial Services Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Health Care Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Internet Fund
Investor Class	1.37%	5.00%	$ 1,000.00	$ 1,018.20	$ 6.93
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Leisure Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Precious Metals Fund
Investor Class	1.26%	5.00%	1,000.00	1,018.75	6.38
A-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
C-Class	2.26%	5.00%	1,000.00	1,013.74	11.41
H-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
Real Estate Fund
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
H-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
Retailing Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Technology Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Telecommunications Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Transportation Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
Utilities Fund
Investor Class	1.39%	5.00%	1,000.00	1,018.10	7.03
A-Class	1.64%	5.00%	1,000.00	1,016.85	8.29
C-Class	2.38%	5.00%	1,000.00	1,013.14	12.01
H-Class	1.62%	5.00%	1,000.00	1,016.95	8.19

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2016 to September 30, 2016.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2016

BANKING FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Citigroup, Inc.	4.1%
JPMorgan Chase & Co.	4.1%
Bank of America Corp.	4.0%
Wells Fargo & Co.	3.9%
U.S. Bancorp	3.0%
PNC Financial Services Group, Inc.	2.3%
Bank of New York Mellon Corp.	2.3%
Capital One Financial Corp.	2.1%
BB&T Corp.	1.9%
State Street Corp.	1.8%
Top Ten Total	29.5%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
BANKING FUND

	Shares		Value
COMMON STOCKS† - 98.5%
Banks - 93.1%
Citigroup, Inc.		25,081	$	1,184,576
JPMorgan Chase & Co.		17,701		1,178,710
Bank of America Corp.		73,873		1,156,112
Wells Fargo & Co.		25,605		1,133,789
U.S. Bancorp		20,041		859,558
PNC Financial Services Group, Inc.		7,432		669,549
Bank of New York Mellon Corp.		16,327		651,120
Capital One Financial Corp.		8,578		616,158
BB&T Corp.		14,681		553,767
State Street Corp.		7,520		523,618
SunTrust Banks, Inc.		10,659		466,864
M&T Bank Corp.		3,715		431,312
Fifth Third Bancorp		19,484		398,643
Northern Trust Corp.		5,765		391,962
Citizens Financial Group, Inc.		14,697		363,163
KeyCorp		29,749		362,045
Regions Financial Corp.		35,619		351,560
First Republic Bank		4,439		342,291
Huntington Bancshares, Inc.		32,945		324,840
Banco Bradesco S.A. ADR		34,507		312,978
Comerica, Inc.		6,152		291,113
Credicorp Ltd.		1,780		270,952
ICICI Bank Ltd. ADR		35,850		267,799
Toronto-Dominion Bank		6,028		267,643
Signature Bank*		2,250		266,513
HDFC Bank Ltd. ADR		3,657		262,902
HSBC Holdings plc ADR		6,971		262,179
Royal Bank of Canada		4,210		260,852
Zions Bancorporation		8,285		257,001
SVB Financial Group*		2,302		254,463
Bank of Montreal		3,783		248,051
Canadian Imperial Bank of Commerce		3,175		246,158
Bank of Nova Scotia		4,570		242,164
Popular, Inc.		6,292		240,480
Barclays plc ADR		27,642		240,209
Credit Suisse Group AG ADR		17,886		235,022
East West Bancorp, Inc.		6,384		234,357
ING Groep N.V. ADR		18,904		233,275
PacWest Bancorp		5,323		228,410
Deutsche Bank AG*		17,280		226,195
Banco Santander Chile ADR		10,910		225,728
Grupo Financiero Santander Mexico SAB de CV ADR		25,645		225,676
Banco Santander Brasil S.A. ADR		33,510		224,517
UBS Group AG		16,464		224,240
Bancolombia S.A. ADR		5,718		223,231
Sumitomo Mitsui Financial Group, Inc. ADR		33,032		222,966
Banco Santander S.A. ADR		50,338		221,991
Commerce Bancshares, Inc.		4,492		221,277
Banco Bilbao Vizcaya Argentaria S.A. ADR		36,751		219,036
BOK Financial Corp.		3,163		218,152
Cullen/Frost Bankers, Inc.		3,023		217,475
Bank of the Ozarks, Inc.		5,658		217,267
Western Alliance Bancorporation*		5,430		203,842
First Citizens BancShares, Inc. — Class A		685		201,315
Synovus Financial Corp.		6,177		200,938
Prosperity Bancshares, Inc.		3,652		200,458
PrivateBancorp, Inc. — Class A		4,236		194,517
First Horizon National Corp.		12,460		189,766
Webster Financial Corp.		4,949		188,111
Umpqua Holdings Corp.		12,125		182,481
Chemical Financial Corp.		3,988		175,990
BankUnited, Inc.		5,820		175,764
UMB Financial Corp.		2,928		174,070
Associated Banc-Corp.		8,875		173,861
United Bankshares, Inc.		4,554		171,549
Wintrust Financial Corp.		3,073		170,767
MB Financial, Inc.		4,447		169,164
Home BancShares, Inc.		7,958		165,606
Texas Capital Bancshares, Inc.*		2,995		164,485
FNB Corp.		13,271		163,233
Valley National Bancorp		16,678		162,277
Hancock Holding Co.		4,964		160,983
Fulton Financial Corp.		11,010		159,865
TCF Financial Corp.		10,948		158,855
First Financial Bankshares, Inc.		4,316		157,275
Cathay General Bancorp		5,106		157,163
Pinnacle Financial Partners, Inc.		2,904		157,048
Hope Bancorp, Inc.		8,987		156,104
Hilltop Holdings, Inc.*		6,716		150,841
Community Bank System, Inc.		3,093		148,804
Glacier Bancorp, Inc.		5,217		148,789
BancorpSouth, Inc.		6,317		146,554
Great Western Bancorp, Inc.		4,249		141,577
CVB Financial Corp.		8,039		141,567
Bank of Hawaii Corp.		1,949		141,536
South State Corp.		1,880		141,075
Old National Bancorp		9,988		140,431
Columbia Banking System, Inc.		4,240		138,733
Trustmark Corp.		4,995		137,662
IBERIABANK Corp.		1,966		131,958
First Midwest Bancorp, Inc.		6,570		127,195
United Community Banks, Inc.		5,943		124,922
LegacyTexas Financial Group, Inc.		3,935		124,464
Westamerica Bancorporation		2,405		122,366
Boston Private Financial Holdings, Inc.		8,220		105,463
Total Banks				26,819,333
Savings & Loans - 3.2%
New York Community Bancorp, Inc.		18,396		261,775
People’s United Financial, Inc.		14,101		223,078
Investors Bancorp, Inc.		16,285		195,583
Sterling Bancorp		8,792		153,860
Banc of California, Inc.		4,987		87,073
Total Savings & Loans				921,369
Diversified Financial Services - 1.0%
CIT Group, Inc.		7,619		276,570

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
BANKING FUND

	Shares		Value
Insurance - 0.8%
Voya Financial, Inc.		8,304	$	239,321
Real Estate - 0.4%
HFF, Inc. — Class A		3,829		106,025
Total Common Stocks
(Cost $24,760,053)				28,362,618
PREFERRED STOCKS†† - 1.1%
Financial - 1.1%
Itau Unibanco Holding S.A. ADR due		29,415		321,800
Total Preferred Stocks
(Cost $273,052)				321,800

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	119,708		119,708
Total Repurchase Agreement
(Cost $119,708)				119,708
Total Investments - 100.0%
(Cost $25,152,813)			$	28,804,126
Other Assets & Liabilities, net - 0.0%				4,058
Total Net Assets - 100.0%			$	28,808,184

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	28,362,618	$	—	$	—	$	28,362,618
Preferred Stocks		321,800		—		—		321,800
Repurchase Agreement		—		119,708		—		119,708
Total	$	28,684,418	$	119,708	$	—	$	28,804,126

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

For the period ended September 30, 2016, there were no transfers between levels.

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $25,033,105)	$	28,684,418
Repurchase agreements, at value (cost $119,708)		119,708
Total investments (cost $25,152,813)		28,804,126
Receivables:
Securities sold		159,096
Fund shares sold		34,270
Dividends		58,606
Foreign taxes reclaim		3,873
Total assets		29,059,971
Liabilities:
Payable for:
Fund shares redeemed		213,990
Management fees		21,303
Transfer agent and administrative fees		6,266
Distribution and service fees		3,897
Portfolio accounting fees		2,506
Miscellaneous		3,825
Total liabilities		251,787
Commitments and contingent liabilities (Note 9)		—
Net assets	$	28,808,184
Net assets consist of:
Paid in capital	$	52,249,802
Undistributed net investment income		362,505
Accumulated net realized loss on investments		(27,455,436	)
Net unrealized appreciation on investments		3,651,313
Net assets	$	28,808,184
Investor Class:
Net assets	$	19,651,626
Capital shares outstanding		317,023
Net asset value per share	$	61.99
A-Class:
Net assets	$	1,838,674
Capital shares outstanding		32,330
Net asset value per share	$	56.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	59.71
C-Class:
Net assets	$	3,208,712
Capital shares outstanding		61,827
Net asset value per share	$	51.90
H-Class:
Net assets	$	4,109,172
Capital shares outstanding		74,157
Net asset value per share	$	55.41

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $4,847)	$	238,706
Interest		201
Total investment income		238,907
Expenses:
Management fees		76,869
Transfer agent and administrative fees		22,609
Distribution and service fees:
A-Class		1,366
C-Class		16,027
H-Class		4,553
Portfolio accounting fees		9,043
Custodian fees		1,066
Trustees’ fees*		775
Line of credit fees		38
Miscellaneous		13,104
Total expenses		145,450
Net investment income		93,457
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		747,843
Net realized gain		747,843
Net change in unrealized appreciation (depreciation) on:
Investments		(68,711	)
Net change in unrealized appreciation (depreciation)		(68,711	)
Net realized and unrealized gain		679,132
Net increase in net assets resulting from operations	$	772,589

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

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

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	93,457		$	269,048
Net realized gain (loss) on investments		747,843			(3,164,939	)
Net change in unrealized appreciation (depreciation) on investments		(68,711	)		(31,048	)
Net increase (decrease) in net assets resulting from operations		772,589			(2,926,939	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(51,827	)
A-Class		—			(8,948	)
C-Class		—			(21,332	)
H-Class		—			(2,387	)*
Total distributions to shareholders		—			(84,494	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		111,747,789			87,235,741
A-Class		1,521,136			10,514,018
C-Class		2,422,746			17,189,341
H-Class		133,844,228			112,516,867	*
Distributions reinvested
Investor Class		—			49,679
A-Class		—			8,716
C-Class		—			21,120
H-Class		—			2,376	*
Cost of shares redeemed
Investor Class		(99,916,325	)		(123,610,616	)
A-Class		(626,210	)		(9,638,810	)
C-Class		(2,690,294	)		(16,568,748	)
H-Class		(130,897,396	)		(111,099,432	)*
Net increase (decrease) from capital share transactions		15,405,674			(33,379,748	)
Net increase (decrease) in net assets		16,178,263			(36,391,181	)
Net assets:
Beginning of period		12,629,921			49,021,102
End of period	$	28,808,184		$	12,629,921
Undistributed net investment income at end of period	$	362,505		$	269,048
Capital share activity:
Shares sold
Investor Class		1,858,484			1,376,130
A-Class		26,975			175,337
C-Class		48,725			320,598
H-Class		2,651,848			2,045,614	*
Shares issued from reinvestment of distributions
Investor Class		—			788
A-Class		—			150
C-Class		—			396
H-Class		—			42	*
Shares redeemed
Investor Class		(1,669,838	)		(1,949,956	)
A-Class		(11,645	)		(176,727	)
C-Class		(54,413	)		(312,183	)
H-Class		(2,604,769	)		(2,033,623	)*
Net increase (decrease) in shares		245,367			(553,434	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

BANKING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	56.13		$	62.71		$	63.60		$	52.58		$	46.75		$	49.75
Income (loss) from investment operations:
Net investment income (loss)b		.40			.68			.51			.54			.54			.44
Net gain (loss) on investments (realized and unrealized)		5.46			(6.97	)		(.98	)		11.09			5.44			(3.39	)
Total from investment operations		5.86			(6.29	)		(.47	)		11.63			5.98			(2.95	)
Less distributions from:
Net investment income		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Total distributions		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Net asset value, end of period	$	61.99		$	56.13		$	62.71		$	63.60		$	52.58		$	46.75
Total Returnc		10.42	%		(10.10	%)		(0.73	%)		22.17	%		12.84	%		(5.89	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,652		$	7,206		$	43,989		$	11,241		$	8,915		$	29,061
Ratios to average net assets:
Net investment income (loss)		1.33	%		1.07	%		0.82	%		0.92	%		1.16	%		1.02	%
Total expenses		1.36	%		1.34	%		1.34	%		1.37	%		1.35	%		1.34	%
Portfolio turnover rate		1,080	%		514	%		583	%		481	%		382	%		544	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	51.55		$	57.76		$	58.75		$	48.74		$	43.45		$	46.38
Income (loss) from investment operations:
Net investment income (loss)b		.30			.40			.26			.39			.36			.30
Net gain (loss) on investments (realized and unrealized)		5.02			(6.32	)		(.83	)		10.23			5.08			(3.18	)
Total from investment operations		5.32			(5.92	)		(.57	)		10.62			5.44			(2.88	)
Less distributions from:
Net investment income		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Total distributions		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Net asset value, end of period	$	56.87		$	51.55		$	57.76		$	58.75		$	48.74		$	43.45
Total Returnc		10.32	%		(10.31	%)		(0.98	%)		21.84	%		12.60	%		(6.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,839		$	876		$	1,054		$	8,305		$	2,103		$	3,088
Ratios to average net assets:
Net investment income (loss)		1.08	%		0.69	%		0.45	%		0.71	%		0.88	%		0.73	%
Total expenses		1.61	%		1.59	%		1.60	%		1.62	%		1.59	%		1.61	%
Portfolio turnover rate		1,080	%		514	%		583	%		481	%		382	%		544	%

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

BANKING FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	47.22		$	53.34		$	54.69		$	45.74		$	41.09		$	44.20
Income (loss) from investment operations:
Net investment income (loss)b		.09			.03			(.14	)		(.05	)		.01			(.01	)
Net gain (loss) on investments (realized and unrealized)		4.59			(5.86	)		(.79	)		9.61			4.79			(3.05	)
Total from investment operations		4.68			(5.83	)		(.93	)		9.56			4.80			(3.06	)
Less distributions from:
Net investment income		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Total distributions		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Net asset value, end of period	$	51.90		$	47.22		$	53.34		$	54.69		$	45.74		$	41.09
Total Returnc		9.89	%		(10.99	%)		(1.71	%)		20.95	%		11.74	%		(6.88	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,209		$	3,188		$	3,131		$	4,307		$	4,036		$	3,841
Ratios to average net assets:
Net investment income (loss)		0.36	%		0.05	%		(0.26	%)		(0.10	%)		0.02	%		(0.03	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		1,080	%		514	%		583	%		481	%		382	%		544	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	50.22		$	56.30		$	57.40		$	47.71		$	42.63		$	45.63
Income (loss) from investment operations:
Net investment income (loss)b		.20			.33			(.01	)		.23			.17			.12
Net gain (loss) on investments (realized and unrealized)		4.99			(6.12	)		(.67	)		10.07			5.06			(3.07	)
Total from investment operations		5.19			(5.79	)		(.68	)		10.30			5.23			(2.95	)
Less distributions from:
Net investment income		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Total distributions		—			(.29	)		(.42	)		(.61	)		(.15	)		(.05	)
Net asset value, end of period	$	55.41		$	50.22		$	56.30		$	57.40		$	47.71		$	42.63
Total Returnc		10.33	%		(10.34	%)		(1.19	%)		21.64	%		12.32	%		(6.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,109		$	1,360		$	847		$	540		$	4,235		$	1,105
Ratios to average net assets:
Net investment income (loss)		0.78	%		0.57	%		(0.02	%)		0.44	%		0.38	%		0.30	%
Total expenses		1.61	%		1.68	%		1.85	%		1.87	%		1.86	%		1.83	%
Portfolio turnover rate		1,080	%		514	%		583	%		481	%		382	%		544	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

BASIC MATERIALS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
EI du Pont de Nemours & Co.	2.8%
Dow Chemical Co.	2.8%
Monsanto Co.	2.4%
Ecolab, Inc.	2.2%
LyondellBasell Industries N.V. — Class A	2.2%
Praxair, Inc.	2.2%
Air Products & Chemicals, Inc.	2.1%
PPG Industries, Inc.	1.9%
Sherwin-Williams Co.	1.9%
Newmont Mining Corp.	1.7%
Top Ten Total	22.2%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

16 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 100.1%
Chemicals - 42.7%
EI du Pont de Nemours & Co.		48,828	$	3,270,011
Dow Chemical Co.		62,674		3,248,393
Monsanto Co.		28,026		2,864,256
LyondellBasell Industries N.V. — Class A		31,666		2,554,180
Praxair, Inc.		21,052		2,543,713
Air Products & Chemicals, Inc.		16,518		2,483,316
PPG Industries, Inc.		22,070		2,281,155
Sherwin-Williams Co.		7,916		2,190,040
International Flavors & Fragrances, Inc.		10,461		1,495,609
Albemarle Corp.		16,379		1,400,241
Eastman Chemical Co.		20,568		1,392,042
Celanese Corp. — Class A		20,762		1,381,919
Potash Corporation of Saskatchewan, Inc.		81,830		1,335,466
Valspar Corp.		11,824		1,254,172
Mosaic Co.		50,013		1,223,318
RPM International, Inc.		21,797		1,170,935
Westlake Chemical Corp.		21,740		1,163,090
Axalta Coating Systems Ltd.*		40,090		1,133,344
Ashland Global Holdings, Inc.		9,772		1,133,063
FMC Corp.		22,570		1,091,034
CF Industries Holdings, Inc.		42,270		1,029,275
NewMarket Corp.		2,326		998,598
WR Grace & Co.		13,286		980,507
Agrium, Inc.		10,033		909,893
Huntsman Corp.		55,698		906,206
Methanex Corp.		23,980		855,606
Olin Corp.		40,034		821,498
Sensient Technologies Corp.		10,520		797,416
Chemours Co.		49,700		795,200
Cabot Corp.		15,158		794,431
PolyOne Corp.		21,942		741,859
Syngenta AG ADR		8,120		711,312
Minerals Technologies, Inc.		9,905		700,184
Chemtura Corp.*		20,660		677,855
HB Fuller Co.		14,030		651,974
Ingevity Corp.*		12,956		597,272
Platform Specialty Products Corp.*		70,800		574,188
Total Chemicals				50,152,571
Mining - 24.3%
Newmont Mining Corp.		50,067		1,967,133
Barrick Gold Corp.		106,544		1,887,960
Freeport-McMoRan, Inc.		159,006		1,726,805
Alcoa, Inc.		159,839		1,620,767
Goldcorp, Inc.		85,088		1,405,654
Silver Wheaton Corp.		50,618		1,368,204
BHP Billiton Ltd. ADR		37,915		1,313,755
Rio Tinto plc ADR		38,345		1,280,723
Teck Resources Ltd. — Class B		61,961		1,117,157
Agnico Eagle Mines Ltd.		20,580		1,115,024
Randgold Resources Ltd. ADR		10,404		1,041,128
AngloGold Ashanti Ltd. ADR*		64,001		1,018,896
Royal Gold, Inc.		12,729		985,606
Kinross Gold Corp.*		219,649		924,722
Franco-Nevada Corp.		12,422		867,925
Pan American Silver Corp.		48,487		854,341
Tahoe Resources, Inc.		66,118		848,294
First Majestic Silver Corp.*		82,192		846,578
Southern Copper Corp.		29,750		782,425
Eldorado Gold Corp.*		192,445		756,309
Cia de Minas Buenaventura S.A.A. ADR*		50,803		703,114
Silver Standard Resources, Inc.*		58,200		701,892
Compass Minerals International, Inc.		9,358		689,685
Hecla Mining Co.		113,100		644,670
Coeur Mining, Inc.*		49,667		587,561
Stillwater Mining Co.*		42,998		574,453
Kaiser Aluminum Corp.		6,350		549,212
Century Aluminum Co.*		52,702		366,279
Total Mining				28,546,272
Packaging & Containers - 10.3%
Ball Corp.		20,144		1,650,801
WestRock Co.		31,619		1,532,888
Sealed Air Corp.		27,863		1,276,683
Crown Holdings, Inc.*		21,734		1,240,794
Packaging Corporation of America		14,684		1,193,222
Sonoco Products Co.		18,730		989,506
Berry Plastics Group, Inc.*		22,346		979,872
Bemis Company, Inc.		18,422		939,706
Graphic Packaging Holding Co.		64,329		899,963
Owens-Illinois, Inc.*		40,300		741,117
KapStone Paper and Packaging Corp.		31,700		599,764
Total Packaging & Containers				12,044,316
Iron & Steel - 8.9%
Nucor Corp.		35,981		1,779,261
Vale S.A. ADR		279,392		1,536,656
Steel Dynamics, Inc.		43,415		1,084,941
ArcelorMittal*		176,954		1,068,802
Reliance Steel & Aluminum Co.		14,018		1,009,717
United States Steel Corp.		44,108		831,877
POSCO ADR		14,090		719,717
Allegheny Technologies, Inc.		35,659		644,358
Carpenter Technology Corp.		15,558		641,923
Commercial Metals Co.		37,381		605,198
Cliffs Natural Resources, Inc.*		87,900		514,215
Total Iron & Steel				10,436,665
Building Materials - 6.3%
Vulcan Materials Co.		14,894		1,693,894
Martin Marietta Materials, Inc.		8,109		1,452,403
Cemex SAB de CV ADR*		165,354		1,312,911
Eagle Materials, Inc.		10,861		839,555
Louisiana-Pacific Corp.*		36,963		696,013
Summit Materials, Inc. — Class A*		31,370		581,914
Boise Cascade Co.*		17,090		434,086
US Concrete, Inc.*		7,500		345,488
Total Building Materials				7,356,264

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
BASIC MATERIALS FUND

	Shares		Value
Commercial Services - 2.2%
Ecolab, Inc.		21,349	$	2,598,600
Forest Products & Paper - 2.2%
International Paper Co.		39,673		1,903,510
Domtar Corp.		18,021		669,120
Total Forest Products & Paper				2,572,630
Miscellaneous Manufacturing - 1.4%
AptarGroup, Inc.		12,194		943,938
Trinseo S.A.		12,490		706,434
Total Miscellaneous Manufacturing				1,650,372
Household Products & Housewares - 1.0%
Avery Dennison Corp.		14,525		1,129,900
Housewares - 0.8%
Scotts Miracle-Gro Co. — Class A		11,780		980,921
Total Common Stocks
(Cost $99,687,607)				117,468,511

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	528,312		528,312
Total Repurchase Agreement
(Cost $528,312)				528,312
Total Investments - 100.5%
(Cost $100,215,919)			$	117,996,823
Other Assets & Liabilities, net - (0.5)%				(535,432	)
Total Net Assets - 100.0%			$	117,461,391

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	117,468,511	$	—	$	—	$	117,468,511
Repurchase Agreement		—		528,312		—		528,312
Total	$	117,468,511	$	528,312	$	—	$	117,996,823

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

For the period ended September 30, 2016, there were no transfers between levels.

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $99,687,607)	$	117,468,511
Repurchase agreements, at value (cost $528,312)		528,312
Total investments (cost $100,215,919)		117,996,823
Receivables:
Fund shares sold		54,990
Dividends		124,450
Interest		5
Total assets		118,176,268
Liabilities:
Overdraft due to custodian bank		7,792
Payable for:
Fund shares redeemed		548,337
Management fees		87,208
Transfer agent and administrative fees		25,650
Distribution and service fees		10,859
Portfolio accounting fees		10,260
Miscellaneous		24,771
Total liabilities		714,877
Commitments and contingent liabilities (Note 9)		—
Net assets	$	117,461,391
Net assets consist of:
Paid in capital	$	124,110,611
Undistributed net investment income		163,675
Accumulated net realized loss on investments		(24,593,799	)
Net unrealized appreciation on investments		17,780,904
Net assets	$	117,461,391
Investor Class:
Net assets	$	80,427,134
Capital shares outstanding		1,566,950
Net asset value per share	$	51.33
A-Class:
Net assets	$	28,603,847
Capital shares outstanding		591,078
Net asset value per share	$	48.39
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.80
C-Class:
Net assets	$	4,408,235
Capital shares outstanding		101,231
Net asset value per share	$	43.55
H-Class:
Net assets	$	4,022,175
Capital shares outstanding		85,659
Net asset value per share	$	46.96

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $13,826)	$	903,537
Interest		863
Total investment income		904,400
Expenses:
Management fees		457,127
Transfer agent and administrative fees		134,449
Distribution and service fees:
A-Class		29,177
C-Class		20,856
H-Class		16,018
Portfolio accounting fees		53,779
Custodian fees		6,376
Trustees’ fees*		5,111
Line of credit fees		45
Miscellaneous		79,413
Total expenses		802,351
Net investment income		102,049
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,425,366
Net realized gain		2,425,366
Net change in unrealized appreciation (depreciation) on:
Investments		7,922,916
Net change in unrealized appreciation (depreciation)		7,922,916
Net realized and unrealized gain		10,348,282
Net increase in net assets resulting from operations	$	10,450,331

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	102,049		$	117,635
Net realized gain on investments		2,425,366			884,104
Net change in unrealized appreciation (depreciation) on investments		7,922,916			(5,935,320	)
Net increase (decrease) in net assets resulting from operations		10,450,331			(4,933,581	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(195,078	)
A-Class		—			(71,772	)
C-Class		—			(53,293	)
H-Class		—			(28,410	)*
Total distributions to shareholders		—			(348,553	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		182,467,644			80,427,494
A-Class		39,480,076			14,088,359
C-Class		3,799,940			6,344,599
H-Class		25,966,620			83,252,748	*
Distributions reinvested
Investor Class		—			192,206
A-Class		—			67,673
C-Class		—			51,084
H-Class		—			28,316	*
Cost of shares redeemed
Investor Class		(138,360,540	)		(95,728,062	)
A-Class		(17,331,261	)		(15,228,557	)
C-Class		(2,274,066	)		(6,757,601	)
H-Class		(26,583,669	)		(79,518,030	)*
Net increase (decrease) from capital share transactions		67,164,744			(12,779,771	)
Net increase (decrease) in net assets		77,615,075			(18,061,905	)
Net assets:
Beginning of period		39,846,316			57,908,221
End of period	$	117,461,391		$	39,846,316
Undistributed net investment income at end of period	$	163,675		$	61,626
Capital share activity:
Shares sold
Investor Class		3,684,098			1,809,760
A-Class		863,967			314,160
C-Class		92,153			159,907
H-Class		596,136			1,979,353	*
Shares issued from reinvestment of distributions
Investor Class		—			4,625
A-Class		—			1,725
C-Class		—			1,437
H-Class		—			744	*
Shares redeemed
Investor Class		(2,795,637	)		(2,062,804	)
A-Class		(370,242	)		(348,813	)
C-Class		(53,997	)		(170,516	)
H-Class		(573,604	)		(1,961,860	)*
Net increase (decrease) in shares		1,442,874			(272,282	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	45.18		$	50.18		$	52.53		$	49.94		$	49.80		$	56.36
Income (loss) from investment operations:
Net investment income (loss)b		.08			.26			.29			.32			.46			.09
Net gain (loss) on investments (realized and unrealized)		6.07			(4.39	)		(2.26	)		2.58			(.15	)		(6.65	)
Total from investment operations		6.15			(4.13	)		(1.97	)		2.90			.31			(6.56	)
Less distributions from:
Net investment income		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Total distributions		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Net asset value, end of period	$	51.33		$	45.18		$	50.18		$	52.53		$	49.94		$	49.80
Total Returnc		13.59	%		(8.07	%)		(3.77	%)		5.84	%		0.65	%		(11.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	80,427		$	30,653		$	46,509		$	33,687		$	36,012		$	36,847
Ratios to average net assets:
Net investment income (loss)		0.33	%		0.55	%		0.56	%		0.66	%		0.95	%		0.17	%
Total expenses		1.37	%		1.35	%		1.34	%		1.38	%		1.36	%		1.36	%
Portfolio turnover rate		121	%		471	%		358	%		349	%		251	%		217	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	42.65		$	47.54		$	49.93		$	47.60		$	47.58		$	53.99
Income (loss) from investment operations:
Net investment income (loss)b		.01			.10			.13			.22			.32			(.01	)
Net gain (loss) on investments (realized and unrealized)		5.73			(4.12	)		(2.14	)		2.42			(.13	)		(6.40	)
Total from investment operations		5.74			(4.02	)		(2.01	)		2.64			.19			(6.41	)
Less distributions from:
Net investment income		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Total distributions		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Net asset value, end of period	$	48.39		$	42.65		$	47.54		$	49.93		$	47.60		$	47.58
Total Returnc		13.46	%		(8.29	%)		(4.05	%)		5.58	%		0.41	%		(11.87	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,604		$	4,152		$	6,194		$	13,347		$	11,104		$	9,410
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.24	%		0.27	%		0.47	%		0.69	%		(0.03	%)
Total expenses		1.61	%		1.60	%		1.60	%		1.63	%		1.61	%		1.61	%
Portfolio turnover rate		121	%		471	%		358	%		349	%		251	%		217	%

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	38.52		$	43.36		$	45.91		$	44.12		$	44.45		$	50.80
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.17	)		(.23	)		(.15	)		(.03	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		5.18			(3.80	)		(1.94	)		2.25			(.13	)		(6.02	)
Total from investment operations		5.03			(3.97	)		(2.17	)		2.10			(.16	)		(6.35	)
Less distributions from:
Net investment income		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Total distributions		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Net asset value, end of period	$	43.55		$	38.52		$	43.36		$	45.91		$	44.12		$	44.45
Total Returnc		13.03	%		(8.98	%)		(4.76	%)		4.80	%		(0.35	%)		(12.50	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,408		$	2,430		$	3,133		$	5,150		$	6,666		$	8,317
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.43	%)		(0.49	%)		(0.34	%)		(0.07	%)		(0.73	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.38	%		2.36	%		2.36	%
Portfolio turnover rate		121	%		471	%		358	%		349	%		251	%		217	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	41.37		$	46.19		$	48.64		$	46.50		$	46.61		$	53.00
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		.09			—	d		.08			.19			.08
Net gain (loss) on investments (realized and unrealized)		5.60			(4.04	)		(2.07	)		2.37			(.13	)		(6.47	)
Total from investment operations		5.59			(3.95	)		(2.07	)		2.45			.06			(6.39	)
Less distributions from:
Net investment income		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Total distributions		—			(.87	)		(.38	)		(.31	)		(.17	)		—
Net asset value, end of period	$	46.96		$	41.37		$	46.19		$	48.64		$	46.50		$	46.61
Total Returnc		13.49	%		(8.36	%)		(4.30	%)		5.31	%		0.16	%		(12.08	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,022		$	2,612		$	2,073		$	2,678		$	3,616		$	5,287
Ratios to average net assets:
Net investment income (loss)		(0.03	%)		0.24	%		0.00	%e		0.18	%		0.43	%		0.17	%
Total expenses		1.61	%		1.64	%		1.85	%		1.88	%		1.86	%		1.86	%
Portfolio turnover rate		121	%		471	%		358	%		349	%		251	%		217	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Net investment income is less than $0.01 per share.
e	Less than 0.01%.
f	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

BIOTECHNOLOGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services (“Biotechnology Companies”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Amgen, Inc.	6.0%
Gilead Sciences, Inc.	5.6%
AbbVie, Inc.	5.6%
Celgene Corp.	4.9%
Biogen, Inc.	4.6%
Shire plc ADR	4.2%
Regeneron Pharmaceuticals, Inc.	3.6%
Illumina, Inc.	2.9%
Alexion Pharmaceuticals, Inc.	2.8%
Incyte Corp.	2.5%
Top Ten Total	42.7%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 23

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Biotechnology - 62.3%
Amgen, Inc.		126,999	$	21,184,704
Gilead Sciences, Inc.		249,792		19,763,544
Celgene Corp.*		163,925		17,135,081
Biogen, Inc.*		51,881		16,240,309
Regeneron Pharmaceuticals, Inc.*		31,310		12,587,246
Illumina, Inc.*		56,100		10,191,126
Alexion Pharmaceuticals, Inc.*		80,317		9,842,045
Incyte Corp.*		92,962		8,765,387
Vertex Pharmaceuticals, Inc.*		99,464		8,674,255
BioMarin Pharmaceutical, Inc.*		81,782		7,566,471
Seattle Genetics, Inc.*		99,187		5,357,090
Ionis Pharmaceuticals, Inc.*		121,157		4,439,192
Alnylam Pharmaceuticals, Inc.*		65,341		4,428,813
Bio-Rad Laboratories, Inc. — Class A*		26,372		4,319,997
United Therapeutics Corp.*		36,316		4,288,193
Intercept Pharmaceuticals, Inc.*		24,535		4,038,216
Charles River Laboratories International, Inc.*		46,715		3,893,228
Prothena Corporation plc*		63,280		3,794,902
Intrexon Corp.*		126,210		3,536,404
Juno Therapeutics, Inc.*		114,970		3,450,250
ARIAD Pharmaceuticals, Inc.*		245,041		3,354,611
Exelixis, Inc.*		255,300		3,265,287
Kite Pharma, Inc.*		57,400		3,206,364
Medicines Co.*		83,668		3,157,630
Ultragenyx Pharmaceutical, Inc.*		44,000		3,121,360
Puma Biotechnology, Inc.*		44,800		3,003,840
Bluebird Bio, Inc.*		43,500		2,948,430
Exact Sciences Corp.*		143,794		2,670,255
Ligand Pharmaceuticals, Inc. — Class B*		26,120		2,665,807
Sage Therapeutics, Inc.*		55,600		2,560,380
Halozyme Therapeutics, Inc.*		208,655		2,520,552
Alder Biopharmaceuticals, Inc.*		74,960		2,456,439
Five Prime Therapeutics, Inc.*		45,900		2,409,291
Myriad Genetics, Inc.*		107,387		2,210,024
Achillion Pharmaceuticals, Inc.*		254,700		2,063,070
AMAG Pharmaceuticals, Inc.*		71,106		1,742,808
Acorda Therapeutics, Inc.*		81,338		1,698,337
Novavax, Inc.*		347,062		721,889
Total Biotechnology				219,272,827
Pharmaceuticals - 33.1%
AbbVie, Inc.		310,034		19,553,843
Shire plc ADR		75,395		14,616,075
Mylan N.V.*		220,003		8,386,515
Quintiles IMS Holdings, Inc.*		75,804		6,144,672
OPKO Health, Inc.*		453,079		4,798,107
Sarepta Therapeutics, Inc.*		76,100		4,673,301
Jazz Pharmaceuticals plc*		37,900		4,604,092
TESARO, Inc.*		43,803		4,390,813
Alkermes plc*		88,458		4,160,180
Neurocrine Biosciences, Inc.*		77,581		3,928,702
PRA Health Sciences, Inc.*		65,360		3,693,494
ACADIA Pharmaceuticals, Inc.*		113,854		3,621,696
Akorn, Inc.*		129,091		3,519,021
Horizon Pharma plc*		175,624		3,184,063
Agios Pharmaceuticals, Inc.*		58,704		3,100,745
Ironwood Pharmaceuticals, Inc. — Class A*		188,096		2,986,964
Radius Health, Inc.*		54,200		2,931,678
Depomed, Inc.*		115,258		2,880,298
Nektar Therapeutics*		163,260		2,804,807
Impax Laboratories, Inc.*		103,499		2,452,926
Ophthotech Corp.*		47,500		2,191,175
Portola Pharmaceuticals, Inc.*		94,950		2,156,315
Eagle Pharmaceuticals, Inc.*		30,500		2,135,000
Pacira Pharmaceuticals, Inc.*		58,800		2,012,136
Heron Therapeutics, Inc.*		85,480		1,472,820
Total Pharmaceuticals				116,399,438
Healthcare-Products - 3.3%
Bio-Techne Corp.		35,757		3,915,392
QIAGEN N.V.*		140,800		3,863,552
Cepheid*		72,118		3,799,897
Total Healthcare-Products				11,578,841
Commercial Services - 0.9%
Incorporated Research Holdings, Inc. — Class A*		68,300		3,044,814
Total Common Stocks
(Cost $175,660,696)				350,295,920
RIGHTS††† - 0.0%
Chelsea Therapeutics International
Expires 12/31/17*		231,107		—
Dyax Corp.
Expires 01/25/17*		167,165		—
Clinical Data, Inc.
Expires 12/31/20*		24,000		—
Total Rights
(Cost $17,304)				—
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	426		426
Total Repurchase Agreement
(Cost $426)				426
Total Investments - 99.6%
(Cost $175,678,426)			$	350,296,346
Other Assets & Liabilities, net - 0.4%				1,365,359
Total Net Assets - 100.0%			$	351,661,705

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
BIOTECHNOLOGY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	350,295,920	$	—	$	—	$	350,295,920
Repurchase Agreement		—		426		—		426
Rights		—		—		—		—
Total	$	350,295,920	$	426	$	—	$	350,296,346

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

For the period ended September 30, 2016, there were no transfers between levels.

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $175,678,000)	$	350,295,920
Repurchase agreements, at value (cost $426)		426
Total investments (cost $175,678,426)		350,296,346
Cash		2,673,290
Receivables:
Securities sold		37,147,985
Fund shares sold		812,286
Dividends		11,278
Total assets		390,941,185
Liabilities:
Payable for:
Fund shares redeemed		38,802,263
Management fees		258,009
Transfer agent and administrative fees		75,885
Distribution and service fees		35,021
Portfolio accounting fees		27,888
Miscellaneous		80,414
Total liabilities		39,279,480
Commitments and contingent liabilities (Note 9)		—
Net assets	$	351,661,705
Net assets consist of:
Paid in capital	$	201,942,381
Accumulated net investment loss		(2,824,844	)
Accumulated net realized loss on investments		(22,073,752	)
Net unrealized appreciation on investments		174,617,920
Net assets	$	351,661,705
Investor Class:
Net assets	$	257,552,893
Capital shares outstanding		3,297,673
Net asset value per share	$	78.10
A-Class:
Net assets	$	43,492,800
Capital shares outstanding		597,905
Net asset value per share	$	72.74
Maximum offering price per share (Net asset value divided by 95.25%)	$	76.37
C-Class:
Net assets	$	25,632,232
Capital shares outstanding		386,600
Net asset value per share	$	66.30
H-Class:
Net assets	$	24,983,780
Capital shares outstanding		352,948
Net asset value per share	$	70.79

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	912,992
Interest		2,057
Total investment income		915,049
Expenses:
Management fees		1,558,568
Transfer agent and administrative fees		458,403
Distribution and service fees:
A-Class		56,673
C-Class		131,061
H-Class		33,768
Portfolio accounting fees		168,769
Custodian fees		21,608
Trustees’ fees*		14,694
Line of credit fees		1,033
Miscellaneous		268,884
Total expenses		2,713,461
Net investment loss		(1,798,412	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,142,004
Net realized gain		1,142,004
Net change in unrealized appreciation (depreciation) on:
Investments		46,246,492
Net change in unrealized appreciation (depreciation)		46,246,492
Net realized and unrealized gain		47,388,496
Net increase in net assets resulting from operations	$	45,590,084

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,798,412	)	$	(6,270,830	)
Net realized gain on investments		1,142,004			7,692,022
Net change in unrealized appreciation (depreciation) on investments		46,246,492			(184,506,116	)
Net increase (decrease) in net assets resulting from operations		45,590,084			(183,084,924	)
Distributions to shareholders from:
Net realized gains
Investor Class		—			(6,254,804	)
A-Class		—			(1,249,744	)
C-Class		—			(670,534	)
H-Class		—			(945,732	)*
Total distributions to shareholders		—			(9,120,814	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		244,822,779			417,939,980
A-Class		4,770,236			49,892,327
C-Class		3,636,773			25,666,356
H-Class		139,950,179			179,430,634	*
Distributions reinvested
Investor Class		—			6,001,463
A-Class		—			1,177,072
C-Class		—			654,350
H-Class		—			945,257	*
Cost of shares redeemed
Investor Class		(281,455,201	)		(524,242,886	)
A-Class		(16,114,270	)		(66,310,633	)
C-Class		(7,531,656	)		(29,104,862	)
H-Class		(144,685,769	)		(199,112,976	)*
Net decrease from capital share transactions		(56,606,929	)		(137,063,918	)
Net decrease in net assets		(11,016,845	)		(329,269,656	)
Net assets:
Beginning of period		362,678,550			691,948,206
End of period	$	351,661,705		$	362,678,550
Accumulated net investment loss at end of period	$	(2,824,844	)	$	(1,026,432	)
Capital share activity:
Shares sold
Investor Class		3,255,313			4,464,545
A-Class		68,449			581,344
C-Class		58,011			323,436
H-Class		2,195,969			2,176,992	*
Shares issued from reinvestment of distributions
Investor Class		—			69,159
A-Class		—			14,537
C-Class		—			8,806
H-Class		—			11,990	*
Shares redeemed
Investor Class		(3,771,307	)		(6,039,629	)
A-Class		(234,683	)		(850,368	)
C-Class		(120,759	)		(395,078	)
H-Class		(2,284,108	)		(2,488,023	)*
Net decrease in shares		(833,115	)		(2,122,289	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	68.30		$	93.63		$	68.47		$	48.97		$	36.90		$	29.16
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.75	)		(.27	)		(.51	)		(.40	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		10.12			(23.30	)		28.59			20.01			12.47			8.08
Total from investment operations		9.80			(24.05	)		28.32			19.50			12.07			7.74
Less distributions from:
Net realized gains		—			(1.28	)		(3.16	)		—			—			—
Total distributions		—			(1.28	)		(3.16	)		—			—			—
Net asset value, end of period	$	78.10		$	68.30		$	93.63		$	68.47		$	48.97		$	36.90
Total Returnc		14.35	%		(25.98	%)		42.19	%		39.82	%		32.71	%		26.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	257,553		$	260,476		$	498,068		$	313,324		$	171,844		$	89,027
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(0.84	%)		(0.34	%)		(0.82	%)		(0.98	%)		(1.09	%)
Total expenses		1.36	%		1.32	%		1.33	%		1.36	%		1.35	%		1.36	%
Portfolio turnover rate		88	%		83	%		107	%		119	%		197	%		333	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	63.69		$	87.63		$	64.41		$	46.18		$	34.88		$	27.64
Income (loss) from investment operations:
Net investment income (loss)b		(.38	)		(.91	)		(.44	)		(.62	)		(.48	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		9.43			(21.75	)		26.82			18.85			11.78			7.61
Total from investment operations		9.05			(22.66	)		26.38			18.23			11.30			7.24
Less distributions from:
Net realized gains		—			(1.28	)		(3.16	)		—			—			—
Total distributions		—			(1.28	)		(3.16	)		—			—			—
Net asset value, end of period	$	72.74		$	63.69		$	87.63		$	64.41		$	46.18		$	34.88
Total Returnc		14.21	%		(26.17	%)		41.83	%		39.48	%		32.40	%		26.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,493		$	48,672		$	89,260		$	51,270		$	26,391		$	4,741
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		(1.09	%)		(0.59	%)		(1.07	%)		(1.21	%)		(1.30	%)
Total expenses		1.60	%		1.57	%		1.58	%		1.61	%		1.61	%		1.61	%
Portfolio turnover rate		88	%		83	%		107	%		119	%		197	%		333	%

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	58.27		$	80.88		$	60.10		$	43.41		$	33.04		$	26.38
Income (loss) from investment operations:
Net investment income (loss)b		(.58	)		(1.40	)		(.92	)		(.99	)		(.73	)		(.58	)
Net gain (loss) on investments (realized and unrealized)		8.61			(19.93	)		24.86			17.68			11.10			7.24
Total from investment operations		8.03			(21.33	)		23.94			16.69			10.37			6.66
Less distributions from:
Net realized gains		—			(1.28	)		(3.16	)		—			—			—
Total distributions		—			(1.28	)		(3.16	)		—			—			—
Net asset value, end of period	$	66.30		$	58.27		$	80.88		$	60.10		$	43.41		$	33.04
Total Returnc		13.76	%		(26.72	%)		40.75	%		38.45	%		31.39	%		25.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,632		$	26,185		$	41,424		$	27,170		$	13,677		$	6,969
Ratios to average net assets:
Net investment income (loss)		(1.85	%)		(1.84	%)		(1.34	%)		(1.82	%)		(1.96	%)		(2.06	%)
Total expenses		2.35	%		2.33	%		2.33	%		2.36	%		2.36	%		2.36	%
Portfolio turnover rate		88	%		83	%		107	%		119	%		197	%		333	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	62.00		$	85.38		$	62.98		$	45.27		$	34.27		$	27.22
Income (loss) from investment operations:
Net investment income (loss)b		(.38	)		(.96	)		(.61	)		(.74	)		(.56	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		9.17			(21.14	)		26.17			18.45			11.56			7.53
Total from investment operations		8.79			(22.10	)		25.56			17.71			11.00			7.05
Less distributions from:
Net realized gains		—			(1.28	)		(3.16	)		—			—			—
Total distributions		—			(1.28	)		(3.16	)		—			—			—
Net asset value, end of period	$	70.79		$	62.00		$	85.38		$	62.98		$	45.27		$	34.27
Total Returnc		14.16	%		(26.22	%)		41.49	%		39.12	%		32.10	%		25.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,984		$	27,346		$	63,196		$	37,978		$	22,486		$	8,313
Ratios to average net assets:
Net investment income (loss)		(1.13	%)		(1.17	%)		(0.84	%)		(1.32	%)		(1.46	%)		(1.65	%)
Total expenses		1.60	%		1.65	%		1.83	%		1.86	%		1.86	%		1.87	%
Portfolio turnover rate		88	%		83	%		107	%		119	%		197	%		333	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

CONSUMER PRODUCTS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	July 6, 1998
A-Class	September 1, 2004
C-Class	July 24, 2001
H-Class*	August 17, 1998

Ten Largest Holdings (% of Total Net Assets)
Procter & Gamble Co.	5.2%
Coca-Cola Co.	4.5%
PepsiCo, Inc.	4.3%
Philip Morris International, Inc.	4.1%
Altria Group, Inc.	3.7%
Kraft Heinz Co.	3.5%
Mondelez International, Inc. — Class A	2.8%
Colgate-Palmolive Co.	2.8%
Reynolds American, Inc.	2.8%
Kimberly-Clark Corp.	2.3%
Top Ten Total	36.0%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Food - 38.3%
Kraft Heinz Co.		182,721	$	16,355,356
Mondelez International, Inc. — Class A		297,536		13,061,830
General Mills, Inc.		150,227		9,596,501
Tyson Foods, Inc. — Class A		115,469		8,622,070
Sysco Corp.		166,464		8,158,401
Kellogg Co.		105,056		8,138,688
Kroger Co.		272,094		8,075,750
ConAgra Foods, Inc.		157,732		7,430,755
Hormel Foods Corp.		188,016		7,131,447
Hershey Co.		73,992		7,073,635
Campbell Soup Co.		116,607		6,378,403
JM Smucker Co.		45,531		6,171,272
McCormick & Company, Inc.		56,350		5,630,492
Ingredion, Inc.		36,730		4,887,294
WhiteWave Foods Co. — Class A*		88,881		4,837,793
Whole Foods Market, Inc.		164,797		4,671,995
Pinnacle Foods, Inc.		76,200		3,822,954
BRF S.A. ADR		222,000		3,787,320
Pilgrim’s Pride Corp.		171,889		3,630,296
Post Holdings, Inc.*		46,200		3,565,254
TreeHouse Foods, Inc.*		39,801		3,470,249
Blue Buffalo Pet Products, Inc.*		138,700		3,295,512
Hain Celestial Group, Inc.*		84,745		3,015,227
Lancaster Colony Corp.		22,652		2,992,103
B&G Foods, Inc.		58,031		2,853,965
Snyder’s-Lance, Inc.		83,800		2,814,004
Fresh Del Monte Produce, Inc.		46,800		2,803,320
Sprouts Farmers Market, Inc.*		134,800		2,783,620
Flowers Foods, Inc.		182,592		2,760,791
Darling Ingredients, Inc.*		175,564		2,371,870
Sanderson Farms, Inc.		24,098		2,321,360
United Natural Foods, Inc.*		55,930		2,239,437
Cal-Maine Foods, Inc.		53,200		2,050,328
Dean Foods Co.		115,163		1,888,673
Total Food				178,687,965
Beverages - 22.9%
Coca-Cola Co.		500,240		21,170,157
PepsiCo, Inc.		183,405		19,948,962
Constellation Brands, Inc. — Class A		54,319		9,043,570
Monster Beverage Corp.*		56,486		8,292,710
Molson Coors Brewing Co. — Class B		71,540		7,855,091
Brown-Forman Corp. — Class B		147,970		7,019,697
Dr Pepper Snapple Group, Inc.		71,219		6,503,007
Anheuser-Busch InBev S.A. ADR		44,780		5,884,540
Coca-Cola European Partners plc		134,094		5,350,351
Ambev S.A. ADR		870,552		5,301,662
Fomento Economico Mexicano SAB de CV ADR		47,983		4,416,355
Diageo plc ADR		33,000		3,829,320
Boston Beer Company, Inc. — Class A*		13,700		2,127,062
Total Beverages				106,742,484
Agriculture - 14.9%
Philip Morris International, Inc.		195,814		19,037,037
Altria Group, Inc.		275,701		17,432,574
Reynolds American, Inc.		272,777		12,861,436
Archer-Daniels-Midland Co.		183,916		7,755,738
Bunge Ltd.		75,400		4,465,942
British American Tobacco plc ADR		25,500		3,255,075
Vector Group Ltd.		121,192		2,609,264
Universal Corp.		31,484		1,832,998
Total Agriculture				69,250,064
Cosmetics & Personal Care - 13.0%
Procter & Gamble Co.		272,274		24,436,592
Colgate-Palmolive Co.		174,599		12,944,770
Estee Lauder Companies, Inc. — Class A		101,156		8,958,375
Coty, Inc. — Class A*		184,202		4,328,747
Unilever N.V. — Class Y		82,751		3,814,821
Edgewell Personal Care Co.*		43,788		3,482,022
Avon Products, Inc.		452,600		2,561,716
Total Cosmetics & Personal Care				60,527,043
Household Products & Housewares - 5.9%
Kimberly-Clark Corp.		85,109		10,735,649
Clorox Co.		51,067		6,392,567
Church & Dwight Company, Inc.		116,032		5,560,253
Spectrum Brands Holdings, Inc.		33,300		4,585,077
Total Household Products & Housewares				27,273,546
Pharmaceuticals - 2.1%
Mead Johnson Nutrition Co. — Class A		76,879		6,074,210
Herbalife Ltd.*		60,159		3,729,256
Total Pharmaceuticals				9,803,466
Retail - 1.4%
Casey’s General Stores, Inc.		28,423		3,415,024
Nu Skin Enterprises, Inc. — Class A		48,930		3,169,685
Total Retail				6,584,709
Electrical Components & Equipment - 0.6%
Energizer Holdings, Inc.		57,735		2,884,441
Holding Companies-Diversified - 0.6%
HRG Group, Inc.*		178,600		2,804,020
Total Common Stocks
(Cost $354,884,359)				464,557,738
RIGHTS††† - 0.0%
PDC
Expires 01/17/17*		93,765		—
Casa Ley
Expires 01/17/19*		93,765		—
Total Rights
(Cost $23,055)				—

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
CONSUMER PRODUCTS FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,1 - 0.2%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	1,056,385	$	1,056,385
Total Repurchase Agreement
(Cost $1,056,385)				1,056,385
Total Investments - 99.9%
(Cost $355,963,799)			$	465,614,123
Other Assets & Liabilities, net - 0.1%				505,980
Total Net Assets - 100.0%			$	466,120,103

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	464,557,738	$	—	$	—	$	464,557,738
Repurchase Agreement		—		1,056,385		—		1,056,385
Rights		—		—		—		—
Total	$	464,557,738	$	1,056,385	$	—	$	465,614,123

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

For the period ended September 30, 2016, there were no transfers between levels.

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $354,907,414)	$	464,557,738
Repurchase agreements, at value (cost $1,056,385)		1,056,385
Total investments (cost $355,963,799)		465,614,123
Receivables:
Fund shares sold		332,353
Dividends		1,212,252
Foreign taxes reclaim		30,323
Interest		11
Total assets		467,189,062
Liabilities:
Overdraft due to custodian bank		140,156
Payable for:
Management fees		331,360
Fund shares redeemed		328,039
Transfer agent and administrative fees		97,459
Distribution and service fees		51,347
Portfolio accounting fees		34,361
Miscellaneous		86,237
Total liabilities		1,068,959
Commitments and contingent liabilities (Note 9)		—
Net assets	$	466,120,103
Net assets consist of:
Paid in capital	$	362,190,432
Undistributed net investment income		4,927,805
Accumulated net realized loss on investments		(10,648,458	)
Net unrealized appreciation on investments		109,650,324
Net assets	$	466,120,103
Investor Class:
Net assets	$	311,318,936
Capital shares outstanding		4,800,790
Net asset value per share	$	64.85
A-Class:
Net assets	$	53,123,204
Capital shares outstanding		882,106
Net asset value per share	$	60.22
Maximum offering price per share (Net asset value divided by 95.25%)	$	63.23
C-Class:
Net assets	$	32,346,441
Capital shares outstanding		605,358
Net asset value per share	$	53.43
H-Class:
Net assets	$	69,331,522
Capital shares outstanding		1,190,599
Net asset value per share	$	58.23

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $15,952)	$	5,596,658
Interest		3,025
Total investment income		5,599,683
Expenses:
Management fees		2,015,777
Transfer agent and administrative fees		592,877
Distribution and service fees:
A-Class		68,967
C-Class		144,869
H-Class		89,102
Portfolio accounting fees		208,899
Custodian fees		28,004
Trustees’ fees*		24,378
Line of credit fees		131
Miscellaneous		358,650
Total expenses		3,531,654
Net investment income		2,068,029
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,454,733
Net realized gain		8,454,733
Net change in unrealized appreciation (depreciation) on:
Investments		2,391,945
Net change in unrealized appreciation (depreciation)		2,391,945
Net realized and unrealized gain		10,846,678
Net increase in net assets resulting from operations	$	12,914,707

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

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,068,029		$	2,837,658
Net realized gain on investments		8,454,733			973,509
Net change in unrealized appreciation (depreciation) on investments		2,391,945			24,512,809
Net increase in net assets resulting from operations		12,914,707			28,323,976
Distributions to shareholders from:
Net investment income
Investor Class		—			(1,910,579	)
A-Class		—			(334,945	)
C-Class		—			(184,219	)
H-Class		—			(391,960	)*
Net realized gains
Investor Class		—			(2,901,894	)
A-Class		—			(508,733	)
C-Class		—			(279,802	)
H-Class		—			(595,331	)*
Total distributions to shareholders		—			(7,107,463	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		189,942,688			350,581,088
A-Class		26,374,851			60,872,986
C-Class		11,420,730			20,783,158
H-Class		99,671,685			167,016,501	*
Distributions reinvested
Investor Class		—			4,699,482
A-Class		—			687,164
C-Class		—			448,009
H-Class		—			985,550	*
Cost of shares redeemed
Investor Class		(163,738,250	)		(316,067,877	)
A-Class		(28,320,730	)		(43,169,090	)
C-Class		(3,492,293	)		(16,365,257	)
H-Class		(98,292,204	)		(155,233,554	)*
Net increase from capital share transactions		33,566,477			75,238,160
Net increase in net assets		46,481,184			96,454,673
Net assets:
Beginning of period		419,638,919			323,184,246
End of period	$	466,120,103		$	419,638,919
Undistributed net investment income at end of period	$	4,927,805		$	2,859,776

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

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:
Shares sold
Investor Class		2,933,625			5,896,971
A-Class		440,484			1,101,512
C-Class		213,149			420,631
H-Class		1,759,338			3,121,495	*
Shares issued from reinvestment of distributions
Investor Class		—			81,887
A-Class		—			12,863
C-Class		—			9,390
H-Class		—			19,078	*
Shares redeemed
Investor Class		(2,534,212	)		(5,385,440	)
A-Class		(475,033	)		(797,084	)
C-Class		(65,118	)		(332,936	)
H-Class		(1,731,536	)		(2,917,566	)*
Net increase in shares		540,697			1,230,801

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	62.84		$	58.55		$	52.08		$	47.79		$	40.19		$	36.37
Income (loss) from investment operations:
Net investment income (loss)b		.32			.61			.71			.46			.57			.49
Net gain (loss) on investments (realized and unrealized)		1.69			4.92			6.44			5.81			7.14			4.82
Total from investment operations		2.01			5.53			7.15			6.27			7.71			5.31
Less distributions from:
Net investment income		—			(.49	)		(.24	)		(.46	)		(.11	)		(.57	)
Net realized gains		—			(.75	)		(.44	)		(1.52	)		—			(.92	)
Total distributions		—			(1.24	)		(.68	)		(1.98	)		(.11	)		(1.49	)
Net asset value, end of period	$	64.85		$	62.84		$	58.55		$	52.08		$	47.79		$	40.19
Total Returnc		3.18	%		9.65	%		13.77	%		13.24	%		19.26	%		15.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	311,319		$	276,578		$	222,954		$	102,231		$	181,945		$	155,432
Ratios to average net assets:
Net investment income (loss)		1.00	%		1.03	%		1.27	%		0.91	%		1.38	%		1.29	%
Total expenses		1.36	%		1.34	%		1.34	%		1.37	%		1.35	%		1.35	%
Portfolio turnover rate		42	%		104	%		87	%		112	%		230	%		402	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	58.43		$	54.66		$	48.79		$	45.00		$	37.93		$	34.49
Income (loss) from investment operations:
Net investment income (loss)b		.23			.45			.48			.33			.44			.40
Net gain (loss) on investments (realized and unrealized)		1.56			4.56			6.07			5.44			6.74			4.53
Total from investment operations		1.79			5.01			6.55			5.77			7.18			4.93
Less distributions from:
Net investment income		—			(.49	)		(.24	)		(.46	)		(.11	)		(.57	)
Net realized gains		—			(.75	)		(.44	)		(1.52	)		—			(.92	)
Total distributions		—			(1.24	)		(.68	)		(1.98	)		(.11	)		(1.49	)
Net asset value, end of period	$	60.22		$	58.43		$	54.66		$	48.79		$	45.00		$	37.93
Total Returnc		3.06	%		9.38	%		13.47	%		12.95	%		18.98	%		14.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,123		$	53,560		$	32,762		$	25,538		$	21,604		$	21,021
Ratios to average net assets:
Net investment income (loss)		0.76	%		0.82	%		0.92	%		0.70	%		1.12	%		1.11	%
Total expenses		1.61	%		1.60	%		1.60	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		42	%		104	%		87	%		112	%		230	%		402	%

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	52.04		$	49.18		$	44.29		$	41.32		$	35.11		$	32.28
Income (loss) from investment operations:
Net investment income (loss)b		—	d		.03			.09			(.01	)		.13			.12
Net gain (loss) on investments (realized and unrealized)		1.39			4.07			5.48			4.96			6.19			4.20
Total from investment operations		1.39			4.10			5.57			4.95			6.32			4.32
Less distributions from:
Net investment income		—			(.49	)		(.24	)		(.46	)		(.11	)		(.57	)
Net realized gains		—			(.75	)		(.44	)		(1.52	)		—			(.92	)
Total distributions		—			(1.24	)		(.68	)		(1.98	)		(.11	)		(1.49	)
Net asset value, end of period	$	53.43		$	52.04		$	49.18		$	44.29		$	41.32		$	35.11
Total Returnc		2.67	%		8.57	%		12.62	%		12.11	%		18.06	%		13.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,346		$	23,799		$	17,717		$	14,125		$	11,699		$	9,712
Ratios to average net assets:
Net investment income (loss)		0.01	%		0.05	%		0.20	%		(0.02	%)		0.37	%		0.36	%
Total expenses		2.35	%		2.35	%		2.35	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		42	%		104	%		87	%		112	%		230	%		402	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	56.50		$	52.94		$	47.39		$	43.87		$	37.08		$	33.84
Income (loss) from investment operations:
Net investment income (loss)b		.22			.39			.37			.24			.35			.24
Net gain (loss) on investments (realized and unrealized)		1.51			4.41			5.86			5.26			6.55			4.49
Total from investment operations		1.73			4.80			6.23			5.50			6.90			4.73
Less distributions from:
Net investment income		—			(.49	)		(.24	)		(.46	)		(.11	)		(.57	)
Net realized gains		—			(.75	)		(.44	)		(1.52	)		—			(.92	)
Total distributions		—			(1.24	)		(.68	)		(1.98	)		(.11	)		(1.49	)
Net asset value, end of period	$	58.23		$	56.50		$	52.94		$	47.39		$	43.87		$	37.08
Total Returnc		3.06	%		9.29	%		13.19	%		12.66	%		18.66	%		14.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,332		$	65,702		$	49,751		$	27,162		$	10,148		$	16,975
Ratios to average net assets:
Net investment income (loss)		0.74	%		0.72	%		0.74	%		0.51	%		0.93	%		0.68	%
Total expenses		1.61	%		1.66	%		1.85	%		1.87	%		1.85	%		1.84	%
Portfolio turnover rate		42	%		104	%		87	%		112	%		230	%		402	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Net investment income is less than $0.01 per share.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

ELECTRONICS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Intel Corp.	8.6%
QUALCOMM, Inc.	6.7%
Texas Instruments, Inc.	5.4%
NVIDIA Corp.	4.0%
Broadcom Ltd.	3.9%
Applied Materials, Inc.	3.6%
NXP Semiconductor N.V.	3.3%
Analog Devices, Inc.	2.9%
Micron Technology, Inc.	2.7%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	2.5%
Top Ten Total	43.6%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Semiconductors - 90.8%
Intel Corp.		89,257	$	3,369,451
QUALCOMM, Inc.		38,275		2,621,837
Texas Instruments, Inc.		29,947		2,101,679
NVIDIA Corp.		22,918		1,570,341
Broadcom Ltd.		8,904		1,536,117
Applied Materials, Inc.		47,391		1,428,839
NXP Semiconductor N.V.*		12,514		1,276,553
Analog Devices, Inc.		17,399		1,121,366
Micron Technology, Inc.*		60,284		1,071,850
Taiwan Semiconductor Manufacturing Company Ltd. ADR		32,508		994,420
Lam Research Corp.		10,448		989,530
Linear Technology Corp.		15,955		945,972
Skyworks Solutions, Inc.		12,271		934,314
Xilinx, Inc.		17,175		933,290
Microchip Technology, Inc.		14,896		925,637
Maxim Integrated Products, Inc.		21,299		850,469
KLA-Tencor Corp.		11,720		817,001
Marvell Technology Group Ltd.		51,407		682,171
Advanced Micro Devices, Inc.*		97,070		670,754
Qorvo, Inc.*		11,886		662,526
ON Semiconductor Corp.*		48,761		600,736
Microsemi Corp.*		13,036		547,251
Teradyne, Inc.		24,442		527,458
ASML Holding N.V. — Class G		4,602		504,287
Cypress Semiconductor Corp.		40,440		491,750
Monolithic Power Systems, Inc.		5,863		471,972
Cavium, Inc.*		8,017		466,589
Integrated Device Technology, Inc.*		19,988		461,723
Cirrus Logic, Inc.*		8,481		450,765
Mellanox Technologies Ltd.*		10,268		444,091
Silicon Motion Technology Corp. ADR		8,340		431,929
Intersil Corp. — Class A		19,690		431,802
MKS Instruments, Inc.		8,422		418,826
Silicon Laboratories, Inc.*		6,892		405,250
Ambarella, Inc.*		5,495		404,487
MACOM Technology Solutions Holdings, Inc.*		8,926		377,927
Tessera Technologies, Inc.		9,640		370,562
Synaptics, Inc.*		6,119		358,451
Power Integrations, Inc.		5,599		352,905
Inphi Corp.*		8,019		348,907
Semtech Corp.*		12,259		339,942
Himax Technologies, Inc. ADR		37,285		320,278
MaxLinear, Inc. — Class A*		14,321		290,287
Rambus, Inc.*		23,114		288,925
Total Semiconductors				35,611,217
Energy-Alternate Sources - 4.6%
First Solar, Inc.*		13,447		531,022
Canadian Solar, Inc.*		33,666		462,571
SolarEdge Technologies, Inc.*		24,947		429,837
Trina Solar Ltd. ADR*		37,150		380,416
Total Energy-Alternate Sources				1,803,846
Electrical Components & Equipment - 1.6%
Advanced Energy Industries, Inc.*		7,520		355,847
SunPower Corp. — Class A*		32,677		291,479
Total Electrical Components & Equipment				647,326
Telecommunications - 1.2%
Acacia Communications, Inc.*		4,650		480,252
Building Materials - 1.1%
Cree, Inc.*		16,106		414,246
Total Common Stocks
(Cost $34,384,356)				38,956,887
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	445		445
Total Repurchase Agreement
(Cost $445)				445
Total Investments - 99.3%
(Cost $34,384,801)			$	38,957,332
Other Assets & Liabilities, net - 0.7%				276,697
Total Net Assets - 100.0%			$	39,234,029

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
ELECTRONICS FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	38,956,887	$	—	$	—	$	38,956,887
Repurchase Agreement		—		445		—		445
Total	$	38,956,887	$	445	$	—	$	38,957,332

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

For the period ended September 30, 2016, there were no transfers between levels.

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $34,384,356)	$	38,956,887
Repurchase agreements, at value (cost $445)		445
Total investments (cost $34,384,801)		38,957,332
Receivables:
Fund shares sold		480,508
Dividends		9,612
Total assets		39,447,452
Liabilities:
Overdraft due to custodian bank		39,025
Payable for:
Fund shares redeemed		127,169
Management fees		27,138
Transfer agent and administrative fees		7,982
Portfolio accounting fees		3,192
Distribution and service fees		2,095
Miscellaneous		6,822
Total liabilities		213,423
Commitments and contingent liabilities (Note 9)		—
Net assets	$	39,234,029
Net assets consist of:
Paid in capital	$	48,749,738
Undistributed net investment income		57,101
Accumulated net realized loss on investments		(14,145,341	)
Net unrealized appreciation on investments		4,572,531
Net assets	$	39,234,029
Investor Class:
Net assets	$	31,107,346
Capital shares outstanding		325,464
Net asset value per share	$	95.58
A-Class:
Net assets	$	3,477,105
Capital shares outstanding		38,791
Net asset value per share	$	89.64
Maximum offering price per share (Net asset value divided by 95.25%)	$	94.11
C-Class:
Net assets	$	963,965
Capital shares outstanding		11,756
Net asset value per share	$	82.00
H-Class:
Net assets	$	3,685,613
Capital shares outstanding		42,224
Net asset value per share	$	87.29

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $374)	$	271,858
Interest		160
Total investment income		272,018
Expenses:
Management fees		124,778
Transfer agent and administrative fees		36,700
Distribution and service fees:
A-Class		1,741
C-Class		4,172
H-Class		7,789
Portfolio accounting fees		14,680
Custodian fees		1,730
Trustees’ fees*		1,326
Line of credit fees		469
Miscellaneous		21,532
Total expenses		214,917
Net investment income		57,101
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,758,409
Net realized gain		1,758,409
Net change in unrealized appreciation (depreciation) on:
Investments		(594,083	)
Net change in unrealized appreciation (depreciation)		(594,083	)
Net realized and unrealized gain		1,164,326
Net increase in net assets resulting from operations	$	1,221,427

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	57,101		$	(48,472	)
Net realized gain (loss) on investments		1,758,409			(613,224	)
Net change in unrealized appreciation (depreciation) on investments		(594,083	)		(2,220,822	)
Net increase (decrease) in net assets resulting from operations		1,221,427			(2,882,518	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(18,251	)
A-Class		—			(3,858	)
C-Class		—			(1,389	)
H-Class		—			(18,915	)*
Total distributions to shareholders		—			(42,413	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		137,131,997			83,406,696
A-Class		5,712,878			14,991,695
C-Class		1,761,907			13,427,149
H-Class		83,941,860			136,348,968	*
Distributions reinvested
Investor Class		—			16,547
A-Class		—			925
C-Class		—			1,387
H-Class		—			18,915	*
Cost of shares redeemed
Investor Class		(116,059,476	)		(91,725,809	)
A-Class		(4,257,278	)		(14,864,321	)
C-Class		(1,626,414	)		(13,783,514	)
H-Class		(90,548,112	)		(130,346,155	)*
Net increase (decrease) from capital share transactions		16,057,362			(2,507,517	)
Net increase (decrease) in net assets		17,278,789			(5,432,448	)
Net assets:
Beginning of period		21,955,240			27,387,688
End of period	$	39,234,029		$	21,955,240
Undistributed net investment income at end of period	$	57,101		$	—
Capital share activity:
Shares sold
Investor Class		1,602,212			1,040,573
A-Class		68,830			198,666
C-Class		24,055			195,375
H-Class		1,165,066			1,832,769	*
Shares issued from reinvestment of distributions
Investor Class		—			213
A-Class		—			13
C-Class		—			21
H-Class		—			266	*
Shares redeemed
Investor Class		(1,377,901	)		(1,156,806	)
A-Class		(53,152	)		(196,930	)
C-Class		(22,574	)		(202,714	)
H-Class		(1,274,300	)		(1,763,553	)*
Net increase (decrease) in shares		132,236			(52,107	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	81.23		$	83.54		$	69.82		$	52.11		$	55.09		$	60.57
Income (loss) from investment operations:
Net investment income (loss)b		.20			.02			.29			(.04	)		.22			(.12	)
Net gain (loss) on investments (realized and unrealized)		14.15			(2.20	)		13.43			17.79			(3.20	)		(5.36	)
Total from investment operations		14.35			(2.18	)		13.72			17.75			(2.98	)		(5.48	)
Less distributions from:
Net investment income		—			(.13	)		—			(.04	)		—			—
Total distributions		—			(.13	)		—			(.04	)		—			—
Net asset value, end of period	$	95.58		$	81.23		$	83.54		$	69.82		$	52.11		$	55.09
Total Returnc		17.69	%		(2.61	%)		19.65	%		34.07	%		(5.41	%)		(9.05	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,116		$	8,217		$	18,144		$	9,655		$	2,942		$	5,453
Ratios to average net assets:
Net investment income (loss)		0.46	%		0.02	%		0.38	%		(0.07	%)		0.45	%		(0.22	%)
Total expenses		1.37	%		1.34	%		1.35	%		1.37	%		1.35	%		1.35	%
Portfolio turnover rate		666	%		769	%		562	%		1,436	%		1,640	%		1,329	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	76.25		$	78.62		$	65.87		$	49.29		$	52.23		$	57.59
Income (loss) from investment operations:
Net investment income (loss)b		.06			(.20	)		(.17	)		(.33	)		.24			(.19	)
Net gain (loss) on investments (realized and unrealized)		13.33			(2.04	)		12.92			16.95			(3.18	)		(5.17	)
Total from investment operations		13.39			(2.24	)		12.75			16.62			(2.94	)		(5.36	)
Less distributions from:
Net investment income		—			(.13	)		—			(.04	)		—			—
Total distributions		—			(.13	)		—			(.04	)		—			—
Net asset value, end of period	$	89.64		$	76.25		$	78.62		$	65.87		$	49.29		$	52.23
Total Returnc		17.59	%		(2.84	%)		19.36	%		33.72	%		(5.63	%)		(9.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,478		$	1,762		$	1,680		$	5,329		$	299		$	659
Ratios to average net assets:
Net investment income (loss)		0.14	%		(0.26	%)		(0.24	%)		(0.59	%)		0.51	%		(0.36	%)
Total expenses		1.62	%		1.60	%		1.61	%		1.62	%		1.60	%		1.62	%
Portfolio turnover rate		666	%		769	%		562	%		1,436	%		1,640	%		1,329	%

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	70.02		$	72.76		$	61.40		$	46.32		$	49.50		$	55.03
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.63	)		(.35	)		(.54	)		(.18	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		12.20			(1.98	)		11.71			15.66			(3.00	)		(4.83	)
Total from investment operations		11.98			(2.61	)		11.36			15.12			(3.18	)		(5.53	)
Less distributions from:
Net investment income		—			(.13	)		—			(.04	)		—			—
Total distributions		—			(.13	)		—			(.04	)		—			—
Net asset value, end of period	$	82.00		$	70.02		$	72.76		$	61.40		$	46.32		$	49.50
Total Returnc		17.12	%		(3.58	%)		18.50	%		32.65	%		(6.44	%)		(10.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	964		$	719		$	1,280		$	1,043		$	667		$	263
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		(0.91	%)		(0.55	%)		(1.03	%)		(0.41	%)		(1.42	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		666	%		769	%		562	%		1,436	%		1,640	%		1,329	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	74.32		$	76.66		$	64.40		$	48.33		$	51.40		$	56.77
Income (loss) from investment operations:
Net investment income (loss)b		.12			(.30	)		.06			(.17	)		(.12	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		12.85			(1.91	)		12.20			16.28			(2.95	)		(5.03	)
Total from investment operations		12.97			(2.21	)		12.26			16.11			(3.07	)		(5.37	)
Less distributions from:
Net investment income		—			(.13	)		—			(.04	)		—			—
Total distributions		—			(.13	)		—			(.04	)		—			—
Net asset value, end of period	$	87.29		$	74.32		$	76.66		$	64.40		$	48.33		$	51.40
Total Returnc		17.46	%		(2.88	%)		19.04	%		33.34	%		(5.97	%)		(9.46	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,687		$	11,257		$	6,285		$	3,577		$	1,288		$	1,271
Ratios to average net assets:
Net investment income (loss)		0.33	%		(0.40	%)		0.09	%		(0.29	%)		(0.26	%)		(0.67	%)
Total expenses		1.61	%		1.74	%		1.85	%		1.87	%		1.85	%		1.86	%
Portfolio turnover rate		666	%		769	%		562	%		1,436	%		1,640	%		1,329	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

ENERGY FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 21, 1998
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class*	May 5, 1998

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	6.0%
Chevron Corp.	4.4%
Schlumberger Ltd.	3.3%
ConocoPhillips	2.4%
Occidental Petroleum Corp.	2.3%
EOG Resources, Inc.	2.3%
Kinder Morgan, Inc.	2.3%
Phillips 66	2.0%
Halliburton Co.	2.0%
Anadarko Petroleum Corp.	1.9%
Top Ten Total	28.9%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Oil & Gas - 71.8%
Exxon Mobil Corp.		34,742	$	3,032,282
Chevron Corp.		21,705		2,233,879
ConocoPhillips		27,701		1,204,163
Occidental Petroleum Corp.		16,172		1,179,262
EOG Resources, Inc.		12,169		1,176,864
Phillips 66		12,745		1,026,609
Anadarko Petroleum Corp.		15,451		978,975
Pioneer Natural Resources Co.		4,824		895,576
Apache Corp.		12,480		797,098
Devon Energy Corp.		17,715		781,409
Valero Energy Corp.		14,320		758,960
Continental Resources, Inc.*		14,279		741,937
Concho Resources, Inc.*		5,223		717,379
Marathon Petroleum Corp.		17,158		696,443
Hess Corp.		12,949		694,325
Range Resources Corp.		17,277		669,484
Noble Energy, Inc.		17,837		637,494
Marathon Oil Corp.		38,385		606,866
Cimarex Energy Co.		4,270		573,760
Equities Corp.		7,697		558,956
Cabot Oil & Gas Corp. — Class A		21,500		554,700
Royal Dutch Shell plc — Class A ADR		11,000		550,770
Transocean Ltd.*		51,636		550,440
BP plc ADR		15,553		546,843
Petroleo Brasileiro S.A. ADR*		54,658		509,959
Tesoro Corp.		6,082		483,884
Newfield Exploration Co.*		11,017		478,799
Helmerich & Payne, Inc.		6,831		459,726
Antero Resources Corp.*		16,782		452,275
Diamondback Energy, Inc.*		4,602		444,277
Ensco plc — Class A		52,146		443,241
Suncor Energy, Inc.		15,441		428,951
Parsley Energy, Inc. — Class A*		12,556		420,752
Southwestern Energy Co.*		29,435		407,380
Noble Corporation plc		63,903		405,145
Encana Corp.		38,674		404,917
Canadian Natural Resources Ltd.		12,296		393,964
Energen Corp.		6,802		392,611
Murphy Oil Corp.		12,775		388,360
QEP Resources, Inc.		18,844		368,023
WPX Energy, Inc.*		26,723		352,476
Nabors Industries Ltd.		26,917		327,311
Chesapeake Energy Corp.*		51,368		322,077
HollyFrontier Corp.		13,122		321,489
Statoil ASA ADR		19,060		320,208
Patterson-UTI Energy, Inc.		13,881		310,518
Rice Energy, Inc.*		11,891		310,474
RSP Permian, Inc.*		7,979		309,426
SM Energy Co.		7,969		307,444
PDC Energy, Inc.*		4,547		304,922
Gulfport Energy Corp.*		10,548		297,981
Laredo Petroleum, Inc.*		23,046		297,293
Cenovus Energy, Inc.		20,100		288,837
YPF S.A. ADR		15,229		277,472
Whiting Petroleum Corp.*		31,381		274,270
Carrizo Oil & Gas, Inc.*		6,564		266,630
Western Refining, Inc.		9,970		263,806
CNOOC Ltd. ADR		2,080		263,099
Callon Petroleum Co.*		16,560		259,992
Diamond Offshore Drilling, Inc.		14,559		256,384
Oasis Petroleum, Inc.*		22,350		256,355
Matador Resources Co.*		10,454		254,450
Rowan Companies plc — Class A		15,549		235,723
PBF Energy, Inc. — Class A		10,318		233,600
Synergy Resources Corp.*		28,133		194,962
Delek US Holdings, Inc.		9,161		158,394
Atwood Oceanics, Inc.		15,216		132,227
Total Oil & Gas				36,444,558
Oil & Gas Services - 13.7%
Schlumberger Ltd.		21,134		1,661,977
Halliburton Co.		22,583		1,013,524
Baker Hughes, Inc.		14,666		740,193
National Oilwell Varco, Inc.		16,793		616,975
Targa Resources Corp.		9,350		459,179
FMC Technologies, Inc.*		14,172		420,483
Weatherford International plc*		69,987		393,327
Core Laboratories N.V.		3,129		351,481
RPC, Inc.*		19,260		323,568
Superior Energy Services, Inc.		15,632		279,813
Oceaneering International, Inc.		9,750		268,223
Dril-Quip, Inc.*		4,210		234,665
Oil States International, Inc.*		6,609		208,646
Total Oil & Gas Services				6,972,054
Pipelines - 10.3%
Kinder Morgan, Inc.		50,810		1,175,235
Spectra Energy Corp.		20,238		865,175
Williams Companies, Inc.		25,004		768,373
ONEOK, Inc.		10,577		543,552
Cheniere Energy, Inc.*		11,582		504,975
Plains GP Holdings, LP — Class A		37,225		481,692
TransCanada Corp.		6,878		327,118
Enbridge, Inc.		7,357		325,400
SemGroup Corp. — Class A		6,330		223,829
Total Pipelines				5,215,349
Mining - 1.1%
U.S. Silica Holdings, Inc.		6,111		284,528
Cameco Corp.		30,062		257,331
Total Mining				541,859
Coal - 0.7%
CONSOL Energy, Inc.		18,598		357,082
Metal Fabricate & Hardware - 0.6%
Tenaris S.A. ADR		11,635		330,434

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
ENERGY FUND

	Shares		Value
Retail - 0.6%
World Fuel Services Corp.		6,223	$	287,876
Transportation - 0.6%
Golar LNG Ltd.		13,419		284,483
Total Common Stocks
(Cost $31,062,967)				50,433,695

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.2%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	94,940	$	94,940
Total Repurchase Agreement
(Cost $94,940)				94,940
Total Investments - 99.6%
(Cost $31,157,907)			$	50,528,635
Other Assets & Liabilities, net - 0.4%				192,003
Total Net Assets - 100.0%			$	50,720,638

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	50,433,695	$	—	$	—	$	50,433,695
Repurchase Agreement		—		94,940		—		94,940
Total	$	50,433,695	$	94,940	$	—	$	50,528,635

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

For the period ended September 30, 2016, there were no transfers between levels.

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $31,062,967)	$	50,433,695
Repurchase agreements, at value (cost $94,940)		94,940
Total investments (cost $31,157,907)		50,528,635
Receivables:
Fund shares sold		1,542,289
Dividends		40,253
Total assets		52,111,177
Liabilities:
Overdraft due to custodian bank		5,702
Payable for:
Securities purchased		1,271,343
Fund shares redeemed		41,908
Management fees		40,243
Transfer agent and administrative fees		11,836
Distribution and service fees		5,950
Portfolio accounting fees		4,735
Miscellaneous		8,822
Total liabilities		1,390,539
Commitments and contingent liabilities (Note 9)		—
Net assets	$	50,720,638
Net assets consist of:
Paid in capital	$	55,843,446
Undistributed net investment income		642,901
Accumulated net realized loss on investments		(25,136,437	)
Net unrealized appreciation on investments		19,370,728
Net assets	$	50,720,638
Investor Class:
Net assets	$	34,378,732
Capital shares outstanding*		432,470
Net asset value per share*	$	79.49
A-Class:
Net assets	$	5,964,264
Capital shares outstanding*		79,842
Net asset value per share*	$	74.70
Maximum offering price per share (Net asset value divided by 95.25%)*	$	78.43
C-Class:
Net assets	$	5,031,422
Capital shares outstanding*		74,924
Net asset value per share*	$	67.15
H-Class:
Net assets	$	5,346,220
Capital shares outstanding*		73,714
Net asset value per share*	$	72.53

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $7,032)	$	573,620
Interest		338
Total investment income		573,958
Expenses:
Management fees		229,443
Transfer agent and administrative fees		67,483
Distribution and service fees:
A-Class		10,274
C-Class		24,368
H-Class		4,693
Portfolio accounting fees		26,993
Custodian fees		3,190
Trustees’ fees**		2,558
Line of credit fees		219
Miscellaneous		38,634
Total expenses		407,855
Net investment income		166,103
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		471,761
Net realized gain		471,761
Net change in unrealized appreciation (depreciation) on:
Investments		7,109,735
Net change in unrealized appreciation (depreciation)		7,109,735
Net realized and unrealized gain		7,581,496
Net increase in net assets resulting from operations	$	7,747,599

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:4 reverse share split effective November 7, 2016. See Note 10.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	166,103		$	476,798
Net realized gain (loss) on investments		471,761			(15,081,328	)
Net change in unrealized appreciation (depreciation) on investments		7,109,735			(4,158,406	)
Net increase (decrease) in net assets resulting from operations		7,747,599			(18,762,936	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(242,198	)
A-Class		—			(32,840	)
C-Class		—			(41,958	)
H-Class		—			(17,380	)**
Net realized gains
Investor Class		—			(267,745	)
A-Class		—			(36,304	)
C-Class		—			(46,384	)
H-Class		—			(19,214	)**
Total distributions to shareholders		—			(704,023	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		270,879,717			150,597,823
A-Class		10,624,385			36,665,768
C-Class		1,856,647			10,483,191
H-Class		53,719,094			121,269,635	**
Distributions reinvested
Investor Class		—			504,502
A-Class		—			63,735
C-Class		—			86,557
H-Class		—			36,578	**
Cost of shares redeemed
Investor Class		(263,702,968	)		(144,378,187	)
A-Class		(11,860,717	)		(32,806,713	)
C-Class		(1,822,194	)		(11,203,791	)
H-Class		(52,204,573	)		(122,368,423	)**
Net increase from capital share transactions		7,489,391			8,950,675
Net increase (decrease) in net assets		15,236,990			(10,516,284	)
Net assets:
Beginning of period		35,483,648			45,999,932
End of period	$	50,720,638		$	35,483,648
Undistributed net investment income at end of period	$	642,901		$	476,798

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:*
Shares sold
Investor Class	$	3,621,815		$	1,809,980
A-Class		152,345			486,100
C-Class		29,943			151,465
H-Class		828,150			1,772,212	**
Shares issued from reinvestment of distributions
Investor Class		—			6,687
A-Class		—			898
C-Class		—			1,348
H-Class		—			530	**
Shares redeemed
Investor Class		(3,522,888	)		(1,785,596	)
A-Class		(172,615	)		(440,104	)
C-Class		(29,264	)		(163,063	)
H-Class		(800,336	)		(1,802,431	)**
Net increase in shares		107,150			38,026

*	Capital share activity for the periods presented through September 30, 2016, has been restated to reflect a 1:4 reverse share split effective November 7, 2016. See Note 10.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

ENERGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	66.61		$	92.98		$	118.79		$	104.48		$	98.30		$	114.81
Income (loss) from investment operations:
Net investment income (loss)b		.28			1.12			.84			.60			.48			.28
Net gain (loss) on investments (realized and unrealized)		12.60			(26.37	)		(26.21	)		13.71			7.58			(16.79	)
Total from investment operations		12.88			(25.25	)		(25.37	)		14.31			8.06			(16.51	)
Less distributions from:
Net investment income		—			(.52	)		(.44	)		—			(.28	)		—
Net realized gains		—			(.60	)		—			—			—			—
Return of capital		—			—			—			—			(1.60	)		—
Total distributions		—			(1.12	)		(.44	)		—			(1.88	)		—
Net asset value, end of period	$	79.49		$	66.61		$	92.98		$	118.79		$	104.48		$	98.30
Total Returnc		19.34	%		(27.30	%)		(21.42	%)		13.71	%		8.50	%		(14.39	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,379		$	22,216		$	28,123		$	35,546		$	49,160		$	40,947
Ratios to average net assets:
Net investment income (loss)		0.78	%		1.38	%		0.72	%		0.55	%		0.52	%		0.27	%
Total expenses		1.36	%		1.35	%		1.35	%		1.37	%		1.35	%		1.36	%
Portfolio turnover rate		550	%		595	%		463	%		231	%		248	%		288	%

A-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	62.67		$	87.76		$	112.30		$	99.06		$	93.54		$	109.60
Income (loss) from investment operations:
Net investment income (loss)b		.20			.76			.48			.32			.32			(.04	)
Net gain (loss) on investments (realized and unrealized)		11.83			(24.73	)		(24.58	)		12.92			7.08			(16.02	)
Total from investment operations		12.03			(23.97	)		(24.10	)		13.24			7.40			(16.06	)
Less distributions from:
Net investment income		—			(.52	)		(.44	)		—			(.28	)		—
Net realized gains		—			(.60	)		—			—			—			—
Return of capital		—			—			—			—			(1.60	)		—
Total distributions		—			(1.12	)		(.44	)		—			(1.88	)		—
Net asset value, end of period	$	74.70		$	62.67		$	87.76		$	112.30		$	99.06		$	93.54
Total Returnc		19.14	%		(27.46	%)		(21.49	%)		13.37	%		8.20	%		(14.67	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,964		$	6,274		$	4,671		$	6,624		$	5,586		$	5,622
Ratios to average net assets:
Net investment income (loss)		0.55	%		1.02	%		0.43	%		0.30	%		0.38	%		(0.05	%)
Total expenses		1.61	%		1.60	%		1.60	%		1.62	%		1.60	%		1.61	%
Portfolio turnover rate		550	%		595	%		463	%		231	%		248	%		288	%

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

ENERGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	56.55		$	79.93		$	103.21		$	91.72		$	87.40		$	103.12
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		.08			(.20	)		(.48	)		(.36	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		10.68			(22.34	)		(22.64	)		11.97			6.56			(14.96	)
Total from investment operations		10.60			(22.26	)		(22.84	)		11.49			6.20			(15.72	)
Less distributions from:
Net investment income		—			(.52	)		(.44	)		—			(.28	)		—
Net realized gains		—			(.60	)		—			—			—			—
Return of capital		—			—			—			—			(1.60	)		—
Total distributions		—			(1.12	)		(.44	)		—			(1.88	)		—
Net asset value, end of period	$	67.15		$	56.55		$	79.93		$	103.21		$	91.72		$	87.40
Total Returnc		18.74	%		(28.01	%)		(22.18	%)		12.52	%		7.40	%		(15.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,031		$	4,198		$	6,754		$	8,357		$	9,693		$	13,153
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		0.15	%		(0.20	%)		(0.52	%)		(0.45	%)		(0.84	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		550	%		595	%		463	%		231	%		248	%		288	%

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

ENERGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016d,e			Year Ended March 31, 2015d,e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e			Year Ended March 31, 2012d,e
Per Share Data
Net asset value, beginning of period	$	60.90		$	85.36		$	109.61		$	96.92		$	91.78		$	107.74
Income (loss) from investment operations:
Net investment income (loss)b		.04			.40			.28			(.08	)		.04			(.32	)
Net gain (loss) on investments (realized and unrealized)		11.59			(23.74	)		(24.09	)		12.77			6.98			(15.64	)
Total from investment operations		11.63			(23.34	)		(23.81	)		12.69			7.02			(15.96	)
Less distributions from:
Net investment income		—			(.52	)		(.44	)		—			(.28	)		—
Net realized gains		—			(.60	)		—			—			—			—
Return of capital		—			—			—			—			(1.60	)		—
Total distributions		—			(1.12	)		(.44	)		—			(1.88	)		—
Net asset value, end of period	$	72.53		$	60.90		$	85.36		$	109.61		$	96.92		$	91.78
Total Returnc		19.12	%		(27.53	%)		(21.76	%)		13.08	%		7.92	%		(14.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,346		$	2,795		$	6,452		$	4,764		$	5,272		$	11,080
Ratios to average net assets:
Net investment income (loss)		0.17	%		0.55	%		0.27	%		(0.09	%)		0.06	%		(0.33	%)
Total expenses		1.61	%		1.70	%		1.85	%		1.87	%		1.85	%		1.86	%
Portfolio turnover rate		550	%		595	%		463	%		231	%		248	%		288	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.
e	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:4 reverse share split effective November 7, 2016. See Note 10.

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

FUND PROFILE (Unaudited) September 30, 2016

ENERGY SERVICES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Schlumberger Ltd.	14.9%
Halliburton Co.	9.0%
Baker Hughes, Inc.	6.6%
National Oilwell Varco, Inc.	5.5%
Transocean Ltd.	4.2%
Helmerich & Payne, Inc.	4.1%
FMC Technologies, Inc.	3.8%
Nabors Industries Ltd.	2.9%
Ensco plc — Class A	2.9%
Patterson-UTI Energy, Inc.	2.8%
Top Ten Total	56.7%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Oil & Gas Services - 65.8%
Schlumberger Ltd.		29,349	$	2,308,004
Halliburton Co.		31,103		1,395,903
Baker Hughes, Inc.		20,316		1,025,349
National Oilwell Varco, Inc.		23,320		856,777
FMC Technologies, Inc.*		19,580		580,939
Weatherford International plc*		76,009		427,171
RPC, Inc.*		23,944		402,259
Superior Energy Services, Inc.		21,604		386,712
Core Laboratories N.V.		3,149		353,727
Oceaneering International, Inc.		12,063		331,853
Dril-Quip, Inc.*		5,830		324,964
Forum Energy Technologies, Inc.*		15,971		317,184
Oil States International, Inc.*		9,133		288,329
McDermott International, Inc.*		48,239		241,677
SEACOR Holdings, Inc.*		3,831		227,906
Helix Energy Solutions Group, Inc.*		27,850		226,421
Frank’s International N.V.		15,351		199,563
Bristow Group, Inc.		11,960		167,679
CARBO Ceramics, Inc.		9,622		105,265
Total Oil & Gas Services				10,167,682
Oil & Gas - 26.6%
Transocean Ltd.*		60,764		647,744
Helmerich & Payne, Inc.		9,445		635,649
Nabors Industries Ltd.		37,152		451,768
Ensco plc — Class A		52,691		447,874
Patterson-UTI Energy, Inc.		19,190		429,280
Noble Corporation plc		62,496		396,225
Diamond Offshore Drilling, Inc.		20,145		354,753
Rowan Companies plc — Class A		21,577		327,107
Unit Corp.*		12,289		228,575
Atwood Oceanics, Inc.		21,090		183,272
Total Oil & Gas				4,102,247
Mining - 4.5%
U.S. Silica Holdings, Inc.		8,424		392,222
Fairmount Santrol Holdings, Inc.*		35,690		302,651
Total Mining				694,873
Metal Fabricate & Hardware - 1.9%
Tenaris S.A. ADR		10,386		294,962
Transportation - 0.7%
Hornbeck Offshore Services, Inc.*		18,567		102,119
Total Common Stocks
(Cost $8,768,210)				15,361,883
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	354		354
Total Repurchase Agreement
(Cost $354)				354
Total Investments - 99.5%
(Cost $8,768,564)			$	15,362,237
Other Assets & Liabilities, net - 0.5%				80,722
Total Net Assets - 100.0%			$	15,442,959

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	15,361,883	$	—	$	—	$	15,361,883
Repurchase Agreement		—		354		—		354
Total	$	15,361,883	$	354	$	—	$	15,362,237

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

For the period ended September 30, 2016, there were no transfers between levels.

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $8,768,210)	$	15,361,883
Repurchase agreements, at value (cost $354)		354
Total investments (cost $8,768,564)		15,362,237
Receivables:
Securities sold		168,379
Fund shares sold		104,892
Dividends		46,785
Total assets		15,682,293
Liabilities:
Overdraft due to custodian bank		98,000
Payable for:
Fund shares redeemed		115,756
Management fees		14,252
Transfer agent and administrative fees		4,192
Distribution and service fees		2,527
Portfolio accounting fees		1,677
Miscellaneous		2,930
Total liabilities		239,334
Commitments and contingent liabilities (Note 9)		—
Net assets	$	15,442,959
Net assets consist of:
Paid in capital	$	49,815,753
Undistributed net investment income		113,247
Accumulated net realized loss on investments		(41,079,714	)
Net unrealized appreciation on investments		6,593,673
Net assets	$	15,442,959
Investor Class:
Net assets	$	10,193,199
Capital shares outstanding		332,396
Net asset value per share	$	30.67
A-Class:
Net assets	$	1,254,140
Capital shares outstanding		43,342
Net asset value per share	$	28.94
Maximum offering price per share (Net asset value divided by 95.25%)	$	30.38
C-Class:
Net assets	$	2,554,064
Capital shares outstanding		97,302
Net asset value per share	$	26.25
H-Class:
Net assets	$	1,441,556
Capital shares outstanding		51,343
Net asset value per share	$	28.08

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $1,581)	$	176,628
Interest		155
Total investment income		176,783
Expenses:
Management fees		102,707
Transfer agent and administrative fees		30,208
Distribution and service fees:
A-Class		2,445
C-Class		13,174
H-Class		8,199
Portfolio accounting fees		12,083
Custodian fees		1,427
Trustees’ fees*		1,204
Line of credit fees		185
Miscellaneous		17,179
Total expenses		188,811
Net investment loss		(12,028	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,357,998	)
Net realized loss		(2,357,998	)
Net change in unrealized appreciation (depreciation) on:
Investments		(818,536	)
Net change in unrealized appreciation (depreciation)		(818,536	)
Net realized and unrealized loss		(3,176,534	)
Net decrease in net assets resulting from operations	$	(3,188,562	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(12,028	)	$	125,275
Net realized loss on investments		(2,357,998	)		(4,376,432	)
Net change in unrealized appreciation (depreciation) on investments		(818,536	)		(3,821,798	)
Net decrease in net assets resulting from operations		(3,188,562	)		(8,072,955	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(130,036	)
A-Class		—			(22,719	)
C-Class		—			(36,447	)
H-Class		—			(42,281	)*
Total distributions to shareholders		—			(231,483	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		164,230,305			88,241,476
A-Class		4,887,513			22,986,249
C-Class		930,928			7,557,655
H-Class		109,387,586			206,028,733	*
Distributions reinvested
Investor Class		—			126,359
A-Class		—			22,184
C-Class		—			36,117
H-Class		—			42,273	*
Cost of shares redeemed
Investor Class		(163,085,960	)		(90,245,009	)
A-Class		(6,404,393	)		(22,683,979	)
C-Class		(1,081,395	)		(7,871,938	)
H-Class		(106,846,688	)		(204,714,157	)*
Net increase (decrease) from capital share transactions		2,017,896			(474,037	)
Net decrease in net assets		(1,170,666	)		(8,778,475	)
Net assets:
Beginning of period		16,613,625			25,392,100
End of period	$	15,442,959		$	16,613,625
Undistributed net investment income at end of period	$	113,247		$	125,275
Capital share activity:
Shares sold
Investor Class		5,643,641			2,540,657
A-Class		168,308			622,276
C-Class		35,752			251,887
H-Class		3,958,222			6,776,423	*
Shares issued from reinvestment of distributions
Investor Class		—			3,947
A-Class		—			733
C-Class		—			1,305
H-Class		—			1,438	*
Shares redeemed
Investor Class		(5,646,361	)		(2,619,654	)
A-Class		(231,054	)		(611,902	)
C-Class		(42,460	)		(262,624	)
H-Class		(3,972,100	)		(6,762,627	)*
Net decrease in shares		(86,052	)		(58,141	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	28.41		$	39.36		$	62.43		$	54.43		$	50.87		$	62.66
Income (loss) from investment operations:
Net investment income (loss)b		.07			.29			.48			.02			(.05	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		2.19			(10.90	)		(23.55	)		7.98			3.61			(11.65	)
Total from investment operations		2.26			(10.61	)		(23.07	)		8.00			3.56			(11.79	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—			—
Total distributions		—			(.34	)		—			—			—			—
Net asset value, end of period	$	30.67		$	28.41		$	39.36		$	62.43		$	54.43		$	50.87
Total Returnc		7.92	%		(27.05	%)		(36.95	%)		14.70	%		7.00	%		(18.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,193		$	9,521		$	16,144		$	33,244		$	26,097		$	34,353
Ratios to average net assets:
Net investment income (loss)		0.46	%		0.83	%		0.86	%		0.03	%		(0.10	%)		(0.25	%)
Total expenses		1.36	%		1.35	%		1.36	%		1.37	%		1.35	%		1.36	%
Portfolio turnover rate		1,143	%		1,241	%		494	%		350	%		275	%		162	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	26.86		$	37.32		$	59.34		$	51.86		$	48.59		$	60.01
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		.24			.25			(.13	)		(.17	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		2.13			(10.36	)		(22.27	)		7.61			3.44			(11.17	)
Total from investment operations		2.08			(10.12	)		(22.02	)		7.48			3.27			(11.42	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—			—
Total distributions		—			(.34	)		—			—			—			—
Net asset value, end of period	$	28.94		$	26.86		$	37.32		$	59.34		$	51.86		$	48.59
Total Returnc		7.71	%		(27.22	%)		(37.11	%)		14.42	%		6.73	%		(19.03	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,254		$	2,849		$	3,545		$	7,557		$	5,535		$	7,115
Ratios to average net assets:
Net investment income (loss)		(0.36	%)		0.73	%		0.47	%		(0.23	%)		(0.37	%)		(0.47	%)
Total expenses		1.61	%		1.59	%		1.60	%		1.62	%		1.60	%		1.61	%
Portfolio turnover rate		1,143	%		1,241	%		494	%		350	%		275	%		162	%

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	24.46		$	34.28		$	54.92		$	48.37		$	45.66		$	56.81
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.05	)		(.12	)		(.50	)		(.49	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		1.93			(9.43	)		(20.52	)		7.05			3.20			(10.61	)
Total from investment operations		1.79			(9.48	)		(20.64	)		6.55			2.71			(11.15	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—			—
Total distributions		—			(.34	)		—			—			—			—
Net asset value, end of period	$	26.25		$	24.46		$	34.28		$	54.92		$	48.37		$	45.66
Total Returnc		7.32	%		(27.76	%)		(37.58	%)		13.54	%		5.94	%		(19.63	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,554		$	2,544		$	3,889		$	8,616		$	8,654		$	10,144
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(0.16	%)		(0.24	%)		(0.97	%)		(1.11	%)		(1.13	%)
Total expenses		2.36	%		2.35	%		2.36	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		1,143	%		1,241	%		494	%		350	%		275	%		162	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	26.07		$	36.29		$	57.89		$	50.72		$	47.64		$	58.97
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		.05			.07			(.27	)		(.25	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		2.11			(9.93	)		(21.67	)		7.44			3.33			(10.99	)
Total from investment operations		2.01			(9.88	)		(21.60	)		7.17			3.08			(11.33	)
Less distributions from:
Net investment income		—			(.34	)		—			—			—			—
Total distributions		—			(.34	)		—			—			—			—
Net asset value, end of period	$	28.08		$	26.07		$	36.29		$	57.89		$	50.72		$	47.64
Total Returnc		7.67	%		(27.31	%)		(37.33	%)		14.14	%		6.47	%		(19.21	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,442		$	1,700		$	1,814		$	4,933		$	9,685		$	8,025
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		0.15	%		0.13	%		(0.50	%)		(0.54	%)		(0.66	%)
Total expenses		1.61	%		1.67	%		1.86	%		1.87	%		1.85	%		1.86	%
Portfolio turnover rate		1,143	%		1,241	%		494	%		350	%		275	%		162	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

FINANCIAL SERVICES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 2, 1998
A-Class	September 1, 2004
C-Class	April 19, 2001
H-Class*	April 6, 1998

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	2.4%
JPMorgan Chase & Co.	2.0%
Wells Fargo & Co.	1.9%
Bank of America Corp.	1.6%
Citigroup, Inc.	1.5%
U.S. Bancorp	1.1%
Goldman Sachs Group, Inc.	1.0%
American International Group, Inc.	1.0%
Simon Property Group, Inc.	1.0%
BlackRock, Inc. — Class A	1.0%
Top Ten Total	14.5%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 98.6%
REITs - 32.7%
Simon Property Group, Inc.		2,419	$	500,757
American Tower Corp. — Class A		3,913		443,461
Public Storage		1,776		396,297
Equinix, Inc.		955		344,039
Crown Castle International Corp.		3,637		342,642
Welltower, Inc.		4,431		331,305
Prologis, Inc.		6,171		330,395
Ventas, Inc.		4,510		318,541
Weyerhaeuser Co.		9,893		315,982
General Growth Properties, Inc.		11,117		306,829
Equity Residential		4,720		303,637
Boston Properties, Inc.		2,112		287,845
AvalonBay Communities, Inc.		1,589		282,588
Vornado Realty Trust		2,735		276,809
HCP, Inc.		7,069		268,269
Realty Income Corp.		3,791		253,731
Essex Property Trust, Inc.		1,114		248,088
Digital Realty Trust, Inc.		2,480		240,858
Kimco Realty Corp.		7,610		220,310
Federal Realty Investment Trust		1,412		217,349
SL Green Realty Corp.		2,003		216,525
Host Hotels & Resorts, Inc.		13,561		211,145
Annaly Capital Management, Inc.		19,601		205,810
Extra Space Storage, Inc.		2,589		205,592
VEREIT, Inc.		19,675		204,030
Iron Mountain, Inc.		5,436		204,013
Macerich Co.		2,488		201,205
UDR, Inc.		5,491		197,621
Duke Realty Corp.		7,225		197,459
Alexandria Real Estate Equities, Inc.		1,690		183,821
Regency Centers Corp.		2,307		178,769
Brixmor Property Group, Inc.		6,397		177,773
National Retail Properties, Inc.		3,482		177,060
Apartment Investment & Management Co. — Class A		3,808		174,825
Camden Property Trust		2,076		173,844
Omega Healthcare Investors, Inc.		4,789		169,770
Mid-America Apartment Communities, Inc.		1,787		167,960
American Campus Communities, Inc.		3,296		167,668
Lamar Advertising Co. — Class A		2,566		167,585
Equity LifeStyle Properties, Inc.		2,169		167,403
WP Carey, Inc.		2,529		163,196
Spirit Realty Capital, Inc.		12,063		160,800
AGNC Investment Corp.		8,227		160,756
Kilroy Realty Corp.		2,289		158,742
DDR Corp.		9,036		157,497
Forest City Realty Trust, Inc. — Class A		6,755		156,243
Liberty Property Trust		3,861		155,791
Sun Communities, Inc.		1,925		151,074
Senior Housing Properties Trust		6,591		149,682
Douglas Emmett, Inc.		4,067		148,974
Highwoods Properties, Inc.		2,842		148,125
Starwood Property Trust, Inc.		6,492		146,200
American Homes 4 Rent — Class A		6,650		143,906
Hospitality Properties Trust		4,826		143,429
CubeSmart		5,157		140,580
Weingarten Realty Investors		3,600		140,328
STORE Capital Corp.		4,684		138,037
Taubman Centers, Inc.		1,833		136,394
Healthcare Trust of America, Inc. — Class A		4,170		136,025
Equity One, Inc.		4,424		135,419
Life Storage, Inc.		1,519		135,100
DCT Industrial Trust, Inc.		2,738		132,930
Healthcare Realty Trust, Inc.		3,727		126,942
CyrusOne, Inc.		2,661		126,584
Hudson Pacific Properties, Inc.		3,830		125,892
CoreSite Realty Corp.		1,700		125,868
Post Properties, Inc.		1,875		123,994
Tanger Factory Outlet Centers, Inc.		3,149		122,685
Medical Properties Trust, Inc.		8,276		122,237
First Industrial Realty Trust, Inc.		4,154		117,226
Equity Commonwealth*		3,864		116,770
New Residential Investment Corp.		8,322		114,927
Education Realty Trust, Inc.		2,601		112,207
Physicians Realty Trust		5,144		110,802
DuPont Fabros Technology, Inc.		2,631		108,529
Corporate Office Properties Trust		3,807		107,928
Two Harbors Investment Corp.		12,462		106,301
Sunstone Hotel Investors, Inc.		8,279		105,888
Brandywine Realty Trust		6,723		105,013
LaSalle Hotel Properties		4,317		103,047
RLJ Lodging Trust		4,865		102,311
Mack-Cali Realty Corp.		3,658		99,571
NorthStar Realty Finance Corp.		7,439		97,972
Washington Prime Group, Inc.		7,843		97,096
CBL & Associates Properties, Inc.		7,280		88,379
Pebblebrook Hotel Trust		3,235		86,051
DiamondRock Hospitality Co.		9,232		84,011
Corrections Corporation of America		5,142		71,320
EPR Properties		537		42,283
Total REITs				16,070,672
Banks - 26.9%
JPMorgan Chase & Co.		14,604		972,481
Wells Fargo & Co.		20,679		915,667
Bank of America Corp.		50,462		789,730
Citigroup, Inc.		15,633		738,347
U.S. Bancorp		12,491		535,740
Goldman Sachs Group, Inc.		3,145		507,194
Morgan Stanley		15,364		492,570
PNC Financial Services Group, Inc.		4,616		415,856
Bank of New York Mellon Corp.		10,178		405,900
Capital One Financial Corp.		5,402		388,026
BB&T Corp.		9,153		345,250
State Street Corp.		4,748		330,603
SunTrust Banks, Inc.		6,643		290,963
M&T Bank Corp.		2,300		267,030
Banco Bradesco S.A. ADR		29,292		265,678
Fifth Third Bancorp		12,138		248,343
Northern Trust Corp.		3,579		243,336

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
FINANCIAL SERVICES FUND

	Shares		Value
Toronto-Dominion Bank		5,133	$	227,906
ICICI Bank Ltd. ADR		30,489		227,752
Citizens Financial Group, Inc.		9,157		226,269
KeyCorp		18,542		225,656
Credicorp Ltd.		1,479		225,133
Regions Financial Corp.		22,655		223,605
HSBC Holdings plc ADR		5,855		220,207
HDFC Bank Ltd. ADR		3,059		219,912
Royal Bank of Canada		3,528		218,595
Bank of Montreal		3,270		214,414
Huntington Bancshares, Inc.		20,934		206,409
First Republic Bank		2,587		199,484
Bank of Nova Scotia		3,671		194,526
Deutsche Bank AG*		14,538		190,302
Comerica, Inc.		3,826		181,046
Signature Bank*		1,403		166,185
Zions Bancorporation		5,162		160,125
SVB Financial Group*		1,419		156,856
East West Bancorp, Inc.		4,030		147,941
PacWest Bancorp		3,302		141,689
Bank of the Ozarks, Inc.		3,615		138,816
Cullen/Frost Bankers, Inc.		1,869		134,455
Synovus Financial Corp.		3,837		124,818
PrivateBancorp, Inc. — Class A		2,718		124,811
Prosperity Bancshares, Inc.		2,264		124,271
First Horizon National Corp.		7,773		118,383
Webster Financial Corp.		3,074		116,843
Umpqua Holdings Corp.		7,560		113,778
Texas Capital Bancshares, Inc.*		1,849		101,547
Total Banks				13,224,448
Insurance - 21.3%
Berkshire Hathaway, Inc. — Class B*		8,157		1,178,441
American International Group, Inc.		8,506		504,746
MetLife, Inc.		9,908		440,212
Prudential Financial, Inc.		4,718		385,225
Marsh & McLennan Companies, Inc.		5,550		373,237
Chubb Ltd.		2,885		362,500
Travelers Companies, Inc.		3,132		358,770
Aflac, Inc.		4,783		343,754
Allstate Corp.		4,443		307,367
Aon plc		2,651		298,211
Progressive Corp.		8,600		270,900
XL Group Ltd.		7,754		260,767
Hartford Financial Services Group, Inc.		6,018		257,691
Principal Financial Group, Inc.		4,879		251,317
Arch Capital Group Ltd.*		3,081		244,200
Willis Towers Watson plc		1,793		238,057
Markel Corp.*		255		236,836
Loews Corp.		5,697		234,432
Everest Re Group Ltd.		1,214		230,624
RenaissanceRe Holdings Ltd.		1,835		220,494
Cincinnati Financial Corp.		2,917		220,000
Axis Capital Holdings Ltd.		3,930		213,517
Lincoln National Corp.		4,454		209,249
Manulife Financial Corp.		14,687		207,234
Assured Guaranty Ltd.		7,319		203,102
Endurance Specialty Holdings Ltd.		3,078		201,455
Arthur J Gallagher & Co.		3,722		189,338
Unum Group		5,170		182,553
Torchmark Corp.		2,696		172,247
Reinsurance Group of America, Inc. — Class A		1,582		170,761
WR Berkley Corp.		2,892		167,042
Alleghany Corp.*		315		165,381
American Financial Group, Inc.		2,128		159,600
Assurant, Inc.		1,712		157,932
Brown & Brown, Inc.		3,834		144,580
Voya Financial, Inc.		5,004		144,215
Old Republic International Corp.		7,537		132,802
First American Financial Corp.		3,209		126,050
Radian Group, Inc.		7,914		107,235
MGIC Investment Corp.*		12,983		103,864
Genworth Financial, Inc. — Class A*		19,738		97,900
Total Insurance				10,473,838
Diversified Financial Services - 12.6%
BlackRock, Inc. — Class A		1,376		498,744
American Express Co.		7,567		484,591
Charles Schwab Corp.		12,963		409,241
CME Group, Inc. — Class A		3,479		363,625
Intercontinental Exchange, Inc.		1,346		362,559
Synchrony Financial		11,021		308,589
Discover Financial Services		5,251		296,944
Franklin Resources, Inc.		7,982		283,920
TD Ameritrade Holding Corp.		7,873		277,445
T. Rowe Price Group, Inc.		3,823		254,230
Ameriprise Financial, Inc.		2,325		231,965
Invesco Ltd.		7,265		227,177
Nasdaq, Inc.		3,065		207,010
Ally Financial, Inc.		9,921		193,162
Raymond James Financial, Inc.		3,113		181,208
E*TRADE Financial Corp.*		6,199		180,515
Affiliated Managers Group, Inc.*		1,229		177,836
CIT Group, Inc.		4,805		174,422
SEI Investments Co.		3,753		171,174
CBOE Holdings, Inc.		2,250		145,913
Navient Corp.		9,524		137,812
Eaton Vance Corp.		3,505		136,870
Legg Mason, Inc.		3,440		115,171
SLM Corp.*		14,918		111,437
Janus Capital Group, Inc.		7,216		101,096
LendingClub Corp.*		15,652		96,729
WisdomTree Investments, Inc.		7,050		72,545
Total Diversified Financial Services				6,201,930
Commercial Services - 1.8%
S&P Global, Inc.		2,877		364,113
Moody’s Corp.		2,627		284,452
MarketAxess Holdings, Inc.		973		161,119
LendingTree, Inc.*		754		73,070
Total Commercial Services				882,754

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
FINANCIAL SERVICES FUND

	Shares		Value
Real Estate - 1.4%
Brookfield Asset Management, Inc. — Class A		6,063	$	213,296
CBRE Group, Inc. — Class A*		6,852		191,718
Jones Lang LaSalle, Inc.		1,273		144,855
Realogy Holdings Corp.		4,774		123,456
Total Real Estate				673,325
Savings & Loans - 1.0%
New York Community Bancorp, Inc.		11,488		163,475
People’s United Financial, Inc.		8,789		139,042
Investors Bancorp, Inc.		10,149		121,889
BofI Holding, Inc.*		3,165		70,896
Total Savings & Loans				495,302
Software - 0.4%
MSCI, Inc. — Class A		2,070		173,756
Entertainment - 0.3%
Gaming and Leisure Properties, Inc.		4,974		166,380
Holding Companies-Diversified - 0.3%
Leucadia National Corp.		8,603		163,801
Media - 0.3%
FactSet Research Systems, Inc.		957		155,130
Investment Companies - 0.1%
American Capital Ltd.*		3,000		50,730
Total Common Stocks
(Cost $43,046,198)				48,732,066
PREFERRED STOCKS† - 0.6%
Financial – 0.6%
Itau Unibanco Holding S.A. ADR		24,884		272,232
Total Preferred Stocks
(Cost $227,832)				272,232
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.2%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	122,182		122,182
Total Repurchase Agreement
(Cost $122,182)				122,182
Total Investments - 99.9%
(Cost $43,396,212)			$	49,126,480
Other Assets & Liabilities, net - 0.1%				27,686
Total Net Assets - 100.0%			$	49,154,166

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	48,732,066	$	—	$	—	$	48,732,066
Preferred Stocks		272,232		—		—		272,232
Repurchase Agreement		—		122,182		—		122,182
Total	$	49,004,298	$	122,182	$	—	$	49,126,480

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

For the period ended September 30, 2016, there were no transfers between levels.

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $43,274,030)	$	49,004,298
Repurchase agreements, at value (cost $122,182)		122,182
Total investments (cost $43,396,212)		49,126,480
Receivables:
Securities sold		298,766
Fund shares sold		31,701
Dividends		116,955
Foreign taxes reclaim		35
Total assets		49,573,937
Liabilities:
Overdraft due to custodian bank		5,453
Payable for:
Fund shares redeemed		348,555
Management fees		36,442
Transfer agent and administrative fees		10,718
Portfolio accounting fees		4,287
Distribution and service fees		2,544
Miscellaneous		11,772
Total liabilities		419,771
Commitments and contingent liabilities (Note 9)		—
Net assets	$	49,154,166
Net assets consist of:
Paid in capital	$	52,935,945
Undistributed net investment income		738,635
Accumulated net realized loss on investments		(10,250,682	)
Net unrealized appreciation on investments		5,730,268
Net assets	$	49,154,166
Investor Class:
Net assets	$	40,136,372
Capital shares outstanding*		694,270
Net asset value per share*	$	57.81
A-Class:
Net assets	$	3,543,026
Capital shares outstanding*		64,858
Net asset value per share*	$	54.63
Maximum offering price per share (Net asset value divided by 95.25%)*	$	57.35
C-Class:
Net assets	$	1,268,743
Capital shares outstanding*		25,708
Net asset value per share*	$	49.35
H-Class:
Net assets	$	4,206,025
Capital shares outstanding*		79,278
Net asset value per share*	$	53.05

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $2,481)	$	374,188
Interest		172
Total investment income		374,360
Expenses:
Management fees		120,308
Transfer agent and administrative fees		35,385
Distribution and service fees:
A-Class		2,441
C-Class		5,506
H-Class		4,248
Portfolio accounting fees		14,154
Custodian fees		1,675
Trustees’ fees**		709
Line of credit fees		146
Miscellaneous		21,406
Total expenses		205,978
Net investment income		168,382
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,179,019
Net realized gain		1,179,019
Net change in unrealized appreciation (depreciation) on:
Investments		(731,992	)
Net change in unrealized appreciation (depreciation)		(731,992	)
Net realized and unrealized gain		447,027
Net increase in net assets resulting from operations	$	615,409

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 2:1 share split effective October 31, 2016. See Note 10.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	168,382		$	570,268
Net realized gain (loss) on investments		1,179,019			(6,440,895	)
Net change in unrealized appreciation (depreciation) on investments		(731,992	)		(2,679,547	)
Net increase (decrease) in net assets resulting from operations		615,409			(8,550,174	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(197,056	)
A-Class		—			(34,956	)
C-Class		—			(9,406	)
H-Class		—			(36,355	)**
Net realized gains
Investor Class		—			(100,426	)
A-Class		—			(17,815	)
C-Class		—			(4,794	)
H-Class		—			(18,528	)**
Total distributions to shareholders		—			(419,336	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		60,070,897			81,929,333
A-Class		7,685,597			19,166,428
C-Class		1,757,810			15,134,609
H-Class		4,616,496			39,630,649	**
Distributions reinvested
Investor Class		—			230,452
A-Class		—			52,090
C-Class		—			14,200
H-Class		—			54,808	**
Cost of shares redeemed
Investor Class		(35,512,391	)		(111,107,892	)
A-Class		(5,128,621	)		(19,489,521	)
C-Class		(1,611,785	)		(15,116,335	)
H-Class		(3,580,204	)		(39,652,502	)**
Net increase (decrease) from capital share transactions		28,297,799			(29,153,681	)
Net increase (decrease) in net assets		28,913,208			(38,123,191	)
Net assets:
Beginning of period		20,240,958			58,364,149
End of period	$	49,154,166		$	20,240,958
Undistributed net investment income at end of period	$	738,635		$	570,253

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:*
Shares sold
Investor Class	$	1,046,424		$	1,449,078
A-Class		142,590			356,434
C-Class		36,268			308,394
H-Class		88,348			758,632	**
Shares issued from reinvestment of distributions
Investor Class		—			4,140
A-Class		—			988
C-Class		—			296
H-Class		—			1,070	**
Shares redeemed
Investor Class		(632,460	)		(2,036,418	)
A-Class		(98,106	)		(386,912	)
C-Class		(33,580	)		(310,694	)
H-Class		(70,198	)		(782,598	)**
Net increase (decrease) in shares		479,286			(637,590	)

*	Capital share activity for the periods presented through September 30, 2016, has been restated to reflect a 2:1 share split effective October 31, 2016. See Note 10.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	53.90		$	57.78		$	53.05		$	45.33		$	39.23		$	40.59
Income (loss) from investment operations:
Net investment income (loss)b		.37			.77			.46			.39			.38			.31
Net gain (loss) on investments (realized and unrealized)		3.54			(4.19	)		4.40			7.61			6.00			(1.65	)
Total from investment operations		3.91			(3.42	)		4.86			8.00			6.38			(1.34	)
Less distributions from:
Net investment income		—			(.30	)		(.13	)		(.28	)		(.28	)		(.02	)
Net realized gains		—			(.16	)		—			—			—			—
Total distributions		—			(.46	)		(.13	)		(.28	)		(.28	)		(.02	)
Net asset value, end of period	$	57.81		$	53.90		$	57.78		$	53.05		$	45.33		$	39.23
Total Returnc		7.24	%		(5.95	%)		9.17	%		17.67	%		16.37	%		(3.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	40,136		$	15,110		$	49,897		$	17,688		$	17,007		$	19,973
Ratios to average net assets:
Net investment income (loss)		1.30	%		1.36	%		0.82	%		0.81	%		0.95	%		0.86	%
Total expenses		1.37	%		1.34	%		1.34	%		1.37	%		1.36	%		1.34	%
Portfolio turnover rate		133	%		268	%		326	%		414	%		590	%		970	%

A-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	51.00		$	54.83		$	50.47		$	43.24		$	37.53		$	38.93
Income (loss) from investment operations:
Net investment income (loss)b		.34			.46			.21			.29			.26			.23
Net gain (loss) on investments (realized and unrealized)		3.29			(3.83	)		4.28			7.22			5.73			(1.61	)
Total from investment operations		3.63			(3.37	)		4.49			7.51			5.99			(1.38	)
Less distributions from:
Net investment income		—			(.30	)		(.13	)		(.28	)		(.28	)		(.02	)
Net realized gains		—			(.16	)		—			—			—			—
Total distributions		—			(.46	)		(.13	)		(.28	)		(.28	)		(.02	)
Net asset value, end of period	$	54.63		$	51.00		$	54.83		$	50.47		$	43.24		$	37.53
Total Returnc		7.11	%		(6.17	%)		8.89	%		17.41	%		16.06	%		(3.57	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,543		$	1,039		$	2,734		$	7,698		$	1,826		$	632
Ratios to average net assets:
Net investment income (loss)		1.26	%		0.87	%		0.41	%		0.62	%		0.66	%		0.64	%
Total expenses		1.61	%		1.60	%		1.59	%		1.62	%		1.61	%		1.61	%
Portfolio turnover rate		133	%		268	%		326	%		414	%		590	%		970	%

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	46.24		$	50.14		$	46.51		$	40.15		$	35.13		$	36.71
Income (loss) from investment operations:
Net investment income (loss)b		.02			.11			(.11	)		(.08	)		.02			(.06	)
Net gain (loss) on investments (realized and unrealized)		3.09			(3.55	)		3.87			6.72			5.28			(1.50	)
Total from investment operations		3.11			(3.44	)		3.76			6.64			5.30			(1.56	)
Less distributions from:
Net investment income		—			(.30	)		(.13	)		(.28	)		(.28	)		(.02	)
Net realized gains		—			(.16	)		—			—			—			—
Total distributions		—			(.46	)		(.13	)		(.28	)		(.28	)		(.02	)
Net asset value, end of period	$	49.35		$	46.24		$	50.14		$	46.51		$	40.15		$	35.13
Total Returnc		6.70	%		(6.89	%)		8.08	%		16.58	%		15.21	%		(4.27	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,269		$	1,065		$	1,255		$	1,051		$	1,440		$	817
Ratios to average net assets:
Net investment income (loss)		0.07	%		0.22	%		(0.23	%)		(0.18	%)		0.04	%		(0.18	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.36	%		2.36	%
Portfolio turnover rate		133	%		268	%		326	%		414	%		590	%		970	%

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016d,e			Year Ended March 31, 2015d,e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e			Year Ended March 31, 2012d,e
Per Share Data
Net asset value, beginning of period	$	49.53		$	53.30		$	49.18		$	42.25		$	36.77		$	38.24
Income (loss) from investment operations:
Net investment income (loss)b		.22			.43			.15			.12			.11			.13
Net gain (loss) on investments (realized and unrealized)		3.30			(3.74	)		4.10			7.09			5.65			(1.58	)
Total from investment operations		3.52			(3.31	)		4.25			7.21			5.76			(1.45	)
Less distributions from:
Net investment income		—			(.30	)		(.13	)		(.28	)		(.28	)		(.02	)
Net realized gains		—			(.16	)		—			—			—			—
Total distributions		—			(.46	)		(.13	)		(.28	)		(.28	)		(.02	)
Net asset value, end of period	$	53.05		$	49.53		$	53.30		$	49.18		$	42.25		$	36.77
Total Returnc		7.11	%		(6.25	%)		8.63	%		17.10	%		15.80	%		(3.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,206		$	3,028		$	4,479		$	4,583		$	7,103		$	4,243
Ratios to average net assets:
Net investment income (loss)		0.83	%		0.83	%		0.28	%		0.26	%		0.29	%		0.37	%
Total expenses		1.61	%		1.65	%		1.85	%		1.87	%		1.85	%		1.85	%
Portfolio turnover rate		133	%		268	%		326	%		414	%		590	%		970	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.
e	Share split — Per share amounts for the periods presented through September 30 , 2016 have been restated to reflect a 2:1 share split effective October 31, 2016. See Note 10.

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

FUND PROFILE (Unaudited) September 30, 2016

HEALTH CARE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.3%
Pfizer, Inc.	2.6%
Merck & Company, Inc.	2.4%
UnitedHealth Group, Inc.	2.2%
Amgen, Inc.	2.0%
Gilead Sciences, Inc.	1.9%
AbbVie, Inc.	1.8%
Eli Lilly & Co.	1.7%
Allergan plc	1.7%
Bristol-Myers Squibb Co.	1.7%
Top Ten Total	21.3%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

70 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Pharmaceuticals - 35.5%
Johnson & Johnson		13,826	$	1,633,264
Pfizer, Inc.		38,281		1,296,576
Merck & Company, Inc.		19,070		1,190,158
AbbVie, Inc.		14,603		921,011
Eli Lilly & Co.		10,785		865,604
Allergan plc*		3,719		856,523
Bristol-Myers Squibb Co.		15,696		846,328
Shire plc ADR		3,617		701,192
Express Scripts Holding Co.*		8,566		604,160
McKesson Corp.		3,287		548,107
Zoetis, Inc.		9,040		470,170
Cardinal Health, Inc.		5,922		460,139
Teva Pharmaceutical Industries Ltd. ADR		9,557		439,718
Mylan N.V.*		10,342		394,237
AmerisourceBergen Corp. — Class A		4,860		392,591
AstraZeneca plc ADR		10,286		337,998
GlaxoSmithKline plc ADR		7,597		327,659
Jazz Pharmaceuticals plc*		2,470		300,056
Novartis AG ADR		3,731		294,600
Quintiles IMS Holdings, Inc.*		3,629		294,167
Alkermes plc*		6,098		286,789
Novo Nordisk A/S ADR		6,380		265,344
Valeant Pharmaceuticals International, Inc.*		10,144		249,035
DexCom, Inc.*		2,830		248,078
Mallinckrodt plc*		3,374		235,438
OPKO Health, Inc.*		21,407		226,700
Sarepta Therapeutics, Inc.*		3,650		224,147
VCA, Inc.*		3,095		216,588
Perrigo Company plc		2,270		209,589
TESARO, Inc.*		2,090		209,502
Neurocrine Biosciences, Inc.*		3,720		188,381
PRA Health Sciences, Inc.*		3,150		178,007
ACADIA Pharmaceuticals, Inc.*		5,365		170,661
Akorn, Inc.*		6,135		167,240
Endo International plc*		8,110		163,417
Catalent, Inc.*		6,254		161,603
Prestige Brands Holdings, Inc.*		3,160		152,533
Agios Pharmaceuticals, Inc.*		2,860		151,065
Horizon Pharma plc*		8,300		150,479
Radius Health, Inc.*		2,560		138,470
Owens & Minor, Inc.		3,951		137,218
Depomed, Inc.*		5,090		127,199
Impax Laboratories, Inc.*		4,840		114,708
Ophthotech Corp.*		2,250		103,793
Pacira Pharmaceuticals, Inc.*		2,830		96,843
Total Pharmaceuticals				17,747,085
HealthCare-Products - 24.2%
Thermo Fisher Scientific, Inc.		4,699		747,424
Medtronic plc		8,647		747,100
Abbott Laboratories		17,225		728,445
Stryker Corp.		5,220		607,659
Becton Dickinson and Co.		3,149		565,970
Boston Scientific Corp.*		21,736		517,317
Zimmer Biomet Holdings, Inc.		3,711		482,504
Intuitive Surgical, Inc.*		658		476,938
Edwards Lifesciences Corp.*		3,948		475,971
Baxter International, Inc.		9,764		464,766
St. Jude Medical, Inc.		5,478		436,925
CR Bard, Inc.		1,588		356,157
Danaher Corp.		4,360		341,780
Dentsply Sirona, Inc.		5,654		336,017
Henry Schein, Inc.*		2,060		335,739
IDEXX Laboratories, Inc.*		2,704		304,822
Hologic, Inc.*		7,820		303,651
STERIS plc		4,110		300,441
Varian Medical Systems, Inc.*		2,927		291,324
ResMed, Inc.		4,302		278,727
LivaNova plc*		4,381		263,342
Cooper Companies, Inc.		1,400		250,964
Align Technology, Inc.*		2,674		250,687
Teleflex, Inc.		1,390		233,590
ABIOMED, Inc.*		1,720		221,158
West Pharmaceutical Services, Inc.		2,790		207,855
Patterson Companies, Inc.		4,267		196,026
Hill-Rom Holdings, Inc.		3,020		187,180
Cepheid*		3,467		182,676
Alere, Inc.*		4,140		179,014
Bio-Techne Corp.		1,610		176,295
Bruker Corp.		7,770		175,991
NuVasive, Inc.*		2,500		166,650
Nevro Corp.*		1,510		157,629
Wright Medical Group N.V.*		5,960		146,199
Total Healthcare-Products				12,094,933
Biotechnology - 18.8%
Amgen, Inc.		6,053		1,009,700
Gilead Sciences, Inc.		11,778		931,875
Celgene Corp.*		7,829		818,365
Biogen, Inc.*		2,458		769,428
Regeneron Pharmaceuticals, Inc.*		1,424		572,476
Illumina, Inc.*		2,624		476,676
Alexion Pharmaceuticals, Inc.*		3,844		471,044
Incyte Corp.*		4,417		416,479
Vertex Pharmaceuticals, Inc.*		4,705		410,323
BioMarin Pharmaceutical, Inc.*		3,912		361,938
Seattle Genetics, Inc.*		4,697		253,685
Ionis Pharmaceuticals, Inc.*		5,700		208,848
Alnylam Pharmaceuticals, Inc.*		3,065		207,746
United Therapeutics Corp.*		1,746		206,168
Charles River Laboratories International, Inc.*		2,205		183,765
Intercept Pharmaceuticals, Inc.*		1,110		182,695
Intrexon Corp.*		6,020		168,680
Juno Therapeutics, Inc.*		5,420		162,654
ARIAD Pharmaceuticals, Inc.*		11,555		158,188
Kite Pharma, Inc.*		2,800		156,408
Exelixis, Inc.*		12,030		153,864
Medicines Co.*		3,975		150,017
Ultragenyx Pharmaceutical, Inc.*		2,100		148,974

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
HEALTH CARE FUND

	Shares		Value
Puma Biotechnology, Inc.*		2,130	$	142,817
Bluebird Bio, Inc.*		2,070		140,305
Exact Sciences Corp.*		6,720		124,790
Ligand Pharmaceuticals, Inc. — Class B*		1,180		120,431
Myriad Genetics, Inc.*		5,070		104,341
AMAG Pharmaceuticals, Inc.*		3,320		81,373
Acorda Therapeutics, Inc.*		3,880		81,014
Novavax, Inc.*		16,345		33,998
Total Biotechnology				9,409,065
HealthCare-Services - 14.5%
UnitedHealth Group, Inc.		7,725		1,081,499
Aetna, Inc.		5,039		581,753
Cigna Corp.		4,110		535,615
Anthem, Inc.		4,254		533,069
HCA Holdings, Inc.*		6,424		485,846
Humana, Inc.		2,672		472,650
Laboratory Corporation of America Holdings*		2,512		345,349
DaVita, Inc.*		5,171		341,648
Quest Diagnostics, Inc.		3,774		319,394
Universal Health Services, Inc. — Class B		2,576		317,415
Centene Corp.*		4,607		308,485
MEDNAX, Inc.*		3,506		232,273
WellCare Health Plans, Inc.*		1,850		216,617
Acadia Healthcare Company, Inc.*		3,890		192,750
Envision Healthcare Holdings, Inc.*		8,430		187,736
Amsurg Corp. — Class A*		2,640		177,012
HealthSouth Corp.		4,330		175,668
Molina Healthcare, Inc.*		2,996		174,727
Brookdale Senior Living, Inc. — Class A*		9,464		165,147
LifePoint Health, Inc.*		2,501		148,134
Tenet Healthcare Corp.*		6,110		138,453
Community Health Systems, Inc.*		9,481		109,411
Total Healthcare-Services				7,240,651
Software - 2.9%
Cerner Corp.*		6,627		409,218
IMS Health Holdings, Inc.*		9,510		298,043
Veeva Systems, Inc. — Class A*		5,290		218,371
athenahealth, Inc.*		1,560		196,747
Medidata Solutions, Inc.*		2,989		166,667
Allscripts Healthcare Solutions, Inc.*		10,860		143,026
Total Software				1,432,072
Electronics - 2.5%
Agilent Technologies, Inc.		7,813		367,914
Waters Corp.*		2,097		332,354
Mettler-Toledo International, Inc.*		710		298,079
PerkinElmer, Inc.		4,159		233,361
Total Electronics				1,231,708
Commercial Services - 1.1%
PAREXEL International Corp.*		2,570		178,487
Incorporated Research Holdings, Inc. — Class A*		3,180		141,764
Team Health Holdings, Inc.*		4,338		141,245
AMN Healthcare Services, Inc.*		3,340		106,446
Total Commercial Services				567,942
Total Common Stocks
(Cost $32,284,007)				49,723,456
RIGHTS††† - 0.0%
Dyax Corp.
Expires 01/25/17*		5,700		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	132		132
Total Repurchase Agreement
(Cost $132)				132
Total Investments - 99.5%
(Cost $32,284,139)			$	49,723,588
Other Assets & Liabilities, net - 0.5%				241,970
Total Net Assets - 100.0%			$	49,965,558

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
HEALTH CARE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	49,723,456	$	—	$	—	$	49,723,456
Repurchase Agreement		—		132		—		132
Rights		—		—		—		—
Total	$	49,723,456	$	132	$	—	$	49,723,588

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

For the period ended September 30, 2016, there were no transfers between levels.

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $32,284,007)	$	49,723,456
Repurchase agreements, at value (cost $132)		132
Total investments (cost $32,284,139)		49,723,588
Cash		255,794
Receivables:
Securities sold		1,105,015
Fund shares sold		209,559
Dividends		33,309
Foreign taxes reclaim		401
Total assets		51,327,666
Liabilities:
Payable for:
Fund shares redeemed		1,292,636
Management fees		35,118
Transfer agent and administrative fees		10,329
Distribution and service fees		8,398
Portfolio accounting fees		4,131
Miscellaneous		11,496
Total liabilities		1,362,108
Commitments and contingent liabilities (Note 9)		—
Net assets	$	49,965,558
Net assets consist of:
Paid in capital	$	26,026,689
Accumulated net investment loss		(217,197	)
Accumulated net realized gain on investments		6,716,617
Net unrealized appreciation on investments		17,439,449
Net assets	$	49,965,558
Investor Class:
Net assets	$	28,942,640
Capital shares outstanding		939,115
Net asset value per share	$	30.82
A-Class:
Net assets	$	5,201,684
Capital shares outstanding		181,514
Net asset value per share	$	28.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	30.09
C-Class:
Net assets	$	6,770,201
Capital shares outstanding		262,183
Net asset value per share	$	25.82
H-Class:
Net assets	$	9,051,033
Capital shares outstanding		325,187
Net asset value per share	$	27.83

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $502)	$	249,326
Interest		267
Total investment income		249,593
Expenses:
Management fees		222,284
Transfer agent and administrative fees		65,378
Distribution and service fees:
A-Class		8,289
C-Class		37,428
H-Class		8,735
Portfolio accounting fees		26,151
Custodian fees		3,074
Trustees’ fees*		2,105
Line of credit fees		34
Miscellaneous		38,700
Total expenses		412,178
Net investment loss		(162,585	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,123,948
Net realized gain		8,123,948
Net change in unrealized appreciation (depreciation) on:
Investments		(5,124,613	)
Net change in unrealized appreciation (depreciation)		(5,124,613	)
Net realized and unrealized gain		2,999,335
Net increase in net assets resulting from operations	$	2,836,750

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(162,585	)	$	(518,753	)
Net realized gain on investments		8,123,948			28,773,483
Net change in unrealized appreciation (depreciation) on investments		(5,124,613	)		(55,109,991	)
Net increase (decrease) in net assets resulting from operations		2,836,750			(26,855,261	)
Distributions to shareholders from:
Net realized gains
Investor Class		—			(2,551,979	)
A-Class		—			(751,373	)
C-Class		—			(771,085	)
H-Class		—			(2,499,031	)*
Total distributions to shareholders		—			(6,573,468	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		105,620,505			288,312,509
A-Class		7,540,160			51,799,265
C-Class		2,114,902			20,161,059
H-Class		8,374,395			245,917,636	*
Distributions reinvested
Investor Class		—			2,527,332
A-Class		—			734,523
C-Class		—			758,819
H-Class		—			2,496,935	*
Cost of shares redeemed
Investor Class		(122,882,912	)		(402,516,466	)
A-Class		(9,230,694	)		(68,969,564	)
C-Class		(4,150,694	)		(21,424,094	)
H-Class		(4,856,934	)		(287,555,879	)*
Net decrease from capital share transactions		(17,471,272	)		(167,757,925	)
Net decrease in net assets		(14,634,522	)		(201,186,654	)
Net assets:
Beginning of period		64,600,080			265,786,734
End of period	$	49,965,558		$	64,600,080
Accumulated net investment loss at end of period	$	(217,197	)	$	(54,612	)
Capital share activity:
Shares sold
Investor Class		3,445,839			8,380,890
A-Class		267,488			1,575,077
C-Class		82,489			680,967
H-Class		301,112			7,391,856	*
Shares issued from reinvestment of distributions
Investor Class		—			81,233
A-Class		—			25,356
C-Class		—			28,863
H-Class		—			88,733	*
Shares redeemed
Investor Class		(4,065,386	)		(11,798,319	)
A-Class		(326,223	)		(2,214,540	)
C-Class		(163,591	)		(741,300	)
H-Class		(178,303	)		(8,810,947	)*
Net decrease in shares		(636,575	)		(5,312,131	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	28.65		$	35.83		$	27.76		$	22.35		$	18.83		$	17.14
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.04	)		(.07	)		(.03	)		.09			.01
Net gain (loss) on investments (realized and unrealized)		2.23			(5.11	)		8.50			7.00			3.48			1.68
Total from investment operations		2.17			(5.15	)		8.43			6.97			3.57			1.69
Less distributions from:
Net investment income		—			—			—			(.03	)		(.05	)		—
Net realized gains		—			(2.03	)		(.36	)		(1.53	)		—			—
Total distributions		—			(2.03	)		(.36	)		(1.56	)		(.05	)		—
Net asset value, end of period	$	30.82		$	28.65		$	35.83		$	27.76		$	22.35		$	18.83
Total Returnc		7.57	%		(14.82	%)		30.51	%		31.70	%		18.98	%		9.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,943		$	44,663		$	175,397		$	98,209		$	104,525		$	39,036
Ratios to average net assets:
Net investment income (loss)		(0.42	%)		(0.11	%)		(0.23	%)		(0.12	%)		0.45	%		0.08	%
Total expenses		1.36	%		1.34	%		1.34	%		1.37	%		1.35	%		1.36	%
Portfolio turnover rate		187	%		249	%		176	%		277	%		266	%		582	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	26.68		$	33.60		$	26.11		$	21.15		$	17.87		$	16.30
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.13	)		(.14	)		(.09	)		.04			(.02	)
Net gain (loss) on investments (realized and unrealized)		2.07			(4.76	)		7.99			6.61			3.29			1.59
Total from investment operations		1.98			(4.89	)		7.85			6.52			3.33			1.57
Less distributions from:
Net investment income		—			—			—			(.03	)		(.05	)		—
Net realized gains		—			(2.03	)		(.36	)		(1.53	)		—			—
Total distributions		—			(2.03	)		(.36	)		(1.56	)		(.05	)		—
Net asset value, end of period	$	28.66		$	26.68		$	33.60		$	26.11		$	21.15		$	17.87
Total Returnc		7.38	%		(15.04	%)		30.21	%		31.36	%		18.65	%		9.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,202		$	6,410		$	28,704		$	7,909		$	3,660		$	2,964
Ratios to average net assets:
Net investment income (loss)		(0.66	%)		(0.42	%)		(0.47	%)		(0.37	%)		0.20	%		(0.13	%)
Total expenses		1.61	%		1.59	%		1.59	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		187	%		249	%		176	%		277	%		266	%		582	%

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	24.13		$	30.82		$	24.16		$	19.81		$	16.86		$	15.50
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.33	)		(.33	)		(.26	)		(.09	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		1.87			(4.33	)		7.35			6.17			3.09			1.50
Total from investment operations		1.69			(4.66	)		7.02			5.91			3.00			1.36
Less distributions from:
Net investment income		—			—			—			(.03	)		(.05	)		—
Net realized gains		—			(2.03	)		(.36	)		(1.53	)		—			—
Total distributions		—			(2.03	)		(.36	)		(1.56	)		(.05	)		—
Net asset value, end of period	$	25.82		$	24.13		$	30.82		$	24.16		$	19.81		$	16.86
Total Returnc		7.00	%		(15.67	%)		29.21	%		30.38	%		17.81	%		8.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,770		$	8,284		$	11,551		$	7,318		$	4,589		$	3,468
Ratios to average net assets:
Net investment income (loss)		(1.41	%)		(1.17	%)		(1.24	%)		(1.14	%)		(0.53	%)		(0.91	%)
Total expenses		2.36	%		2.35	%		2.34	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		187	%		249	%		176	%		277	%		266	%		582	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	25.91		$	32.71		$	25.49		$	20.73		$	17.55		$	16.04
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.14	)		(.21	)		(.15	)		(.06	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		2.01			(4.63	)		7.79			6.47			3.29			1.58
Total from investment operations		1.92			(4.77	)		7.58			6.32			3.23			1.51
Less distributions from:
Net investment income		—			—			—			(.03	)		(.05	)		—
Net realized gains		—			(2.03	)		(.36	)		(1.53	)		—			—
Total distributions		—			(2.03	)		(.36	)		(1.56	)		(.05	)		—
Net asset value, end of period	$	27.83		$	25.91		$	32.71		$	25.49		$	20.73		$	17.55
Total Returnc		7.41	%		(15.08	%)		29.89	%		31.03	%		18.43	%		9.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,051		$	5,244		$	50,135		$	38,480		$	3,605		$	4,275
Ratios to average net assets:
Net investment income (loss)		(0.62	%)		(0.44	%)		(0.73	%)		(0.62	%)		(0.31	%)		(0.44	%)
Total expenses		1.61	%		1.71	%		1.85	%		1.87	%		1.86	%		1.85	%
Portfolio turnover rate		187	%		249	%		176	%		277	%		266	%		582	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

INTERNET FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Alphabet, Inc. — Class A	6.2%
Amazon.com, Inc.	5.6%
Facebook, Inc. — Class A	5.2%
Cisco Systems, Inc.	3.4%
QUALCOMM, Inc.	2.8%
Alibaba Group Holding Ltd. ADR	2.6%
Priceline Group, Inc.	2.2%
Time Warner, Inc.	2.2%
Broadcom Ltd.	2.0%
PayPal Holdings, Inc.	1.9%
Top Ten Total	34.1%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

78 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Internet - 52.7%
Alphabet, Inc. — Class A*		3,509	$	2,821,446
Amazon.com, Inc.*		3,020		2,528,675
Facebook, Inc. — Class A*		18,237		2,339,259
Alibaba Group Holding Ltd. ADR*		11,340		1,199,659
Priceline Group, Inc.*		668		982,956
Netflix, Inc.*		8,079		796,186
Yahoo!, Inc.*		17,848		769,249
eBay, Inc.*		22,822		750,844
Baidu, Inc. ADR*		4,081		743,028
LinkedIn Corp. — Class A*		3,216		614,642
JD.com, Inc. ADR*		21,809		568,997
Twitter, Inc.*		23,894		550,757
Ctrip.com International Ltd. ADR*		11,234		523,167
Expedia, Inc.		4,434		517,536
Symantec Corp.		19,252		483,225
TripAdvisor, Inc.*		5,882		371,625
Vipshop Holdings Ltd. ADR*		24,645		361,542
58.com, Inc. ADR*		7,413		353,304
VeriSign, Inc.*		4,507		352,628
F5 Networks, Inc.*		2,768		345,004
MercadoLibre, Inc.		1,760		325,547
Zillow Group, Inc. — Class A*		8,998		309,981
Zillow Group, Inc. — Class C*		8,885		307,865
SINA Corp.*		4,163		307,354
Weibo Corp. ADR*		6,052		303,462
YY, Inc. ADR*		5,671		302,151
Shopify, Inc. — Class A*		6,920		297,006
GoDaddy, Inc. — Class A*		8,510		293,850
Bitauto Holdings Ltd. ADR*		10,057		292,458
Liberty Ventures*		7,256		289,297
Autohome, Inc. ADR*		11,583		280,888
IAC/InterActiveCorp		4,477		279,678
Fang Holdings Ltd. ADR*		59,182		265,727
GrubHub, Inc.*		5,555		238,809
Pandora Media, Inc.*		16,140		231,286
Yelp, Inc. — Class A*		5,448		227,182
Wayfair, Inc. — Class A*		5,564		219,055
Groupon, Inc. — Class A*		38,765		199,640
Shutterstock, Inc.*		2,788		177,596
WebMD Health Corp. — Class A*		3,306		164,308
comScore, Inc.*		5,297		162,406
Cogent Communications Holdings, Inc.		4,345		159,939
Stamps.com, Inc.*		1,648		155,752
Shutterfly, Inc.*		3,097		138,250
Total Internet				23,903,216
Telecommunications - 14.1%
Cisco Systems, Inc.		48,586		1,541,148
Palo Alto Networks, Inc.*		3,026		482,133
Motorola Solutions, Inc.		5,696		434,491
Juniper Networks, Inc.		15,669		376,996
Nokia Oyj ADR		52,825		305,857
Arista Networks, Inc.*		3,482		296,249
CommScope Holding Company, Inc.*		9,670		291,164
Telefonaktiebolaget LM Ericsson ADR		39,862		287,405
ARRIS International plc*		9,905		280,609
Ubiquiti Networks, Inc.*		4,800		256,800
Finisar Corp.*		7,687		229,073
ViaSat, Inc.*		3,016		225,144
Ciena Corp.*		9,880		215,384
InterDigital, Inc.		2,481		196,495
LogMeIn, Inc.		1,939		175,266
NETGEAR, Inc.*		2,784		168,404
Plantronics, Inc.		3,124		162,323
Viavi Solutions, Inc.*		21,630		159,846
Infinera Corp.*		15,470		139,694
Oclaro, Inc.*		15,740		134,577
Gogo, Inc.*		8,123		89,678
Total Telecommunications				6,448,736
Software - 12.1%
salesforce.com, Inc.*		11,707		835,059
Intuit, Inc.		5,897		648,729
Red Hat, Inc.*		6,028		487,243
NetEase, Inc. ADR		1,895		456,278
Citrix Systems, Inc.*		5,244		446,894
Check Point Software Technologies Ltd.*		5,576		432,753
Akamai Technologies, Inc.*		7,077		375,011
NetSuite, Inc.*		3,308		366,163
Veeva Systems, Inc. — Class A*		7,060		291,437
Twilio, Inc. — Class A*		4,510		290,264
Rackspace Hosting, Inc.*		7,709		244,298
j2 Global, Inc.		3,220		214,484
Cornerstone OnDemand, Inc.*		4,340		199,423
Allscripts Healthcare Solutions, Inc.*		14,370		189,253
Total Software				5,477,289
Semiconductors - 4.9%
QUALCOMM, Inc.		18,678		1,279,443
Broadcom Ltd.		5,214		899,519
Total Semiconductors				2,178,962
Diversified Financial Services - 4.5%
Charles Schwab Corp.		25,167		794,521
TD Ameritrade Holding Corp.		15,270		538,115
E*TRADE Financial Corp.*		11,958		348,217
LendingClub Corp.*		30,635		189,324
BGC Partners, Inc. — Class A		21,366		186,953
Total Diversified Financial Services				2,057,130
Commercial Services - 3.8%
PayPal Holdings, Inc.*		20,918		857,011
CoStar Group, Inc.*		1,412		305,740
Live Nation Entertainment, Inc.*		10,700		294,036
Cimpress N.V.*		2,660		269,139
Total Commercial Services				1,725,926
Media - 2.2%
Time Warner, Inc.		12,341		982,467

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INTERNET FUND

	Shares		Value
Computers - 1.9%
BlackBerry Ltd.*		36,267	$	289,411
Brocade Communications Systems, Inc.		25,358		234,054
NetScout Systems, Inc.*		6,801		198,929
Lumentum Holdings, Inc.*		4,750		198,408
Total Computers				920,802
REITs - 1.3%
Equinix, Inc.		1,642		591,531
Aerospace & Defense - 0.9%
Harris Corp.		4,482		410,596
Retail - 0.9%
Liberty Interactive Corporation QVC Group — Class A*		19,273		385,652
Leisure Time - 0.3%
Liberty TripAdvisor Holdings, Inc. — Class A*		7,190		157,102
Total Common Stocks
(Cost $36,143,713)				45,239,409

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	209,870		209,870
Total Repurchase Agreement
(Cost $209,870)				209,870
Total Investments - 100.1%
(Cost $36,353,583)			$	45,449,279
Other Assets & Liabilities, net - (0.1)%				(45,485	)
Total Net Assets - 100.0%			$	45,403,794

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	45,239,409	$	—	$	—	$	45,239,409
Repurchase Agreement		—		209,870		—		209,870
Total	$	45,239,409	$	209,870	$	—	$	45,449,279

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $36,143,713)	$	45,239,409
Repurchase agreements, at value (cost $209,870)		209,870
Total investments (cost $36,353,583)		45,449,279
Cash		1,710
Receivables:
Fund shares sold		46,752
Dividends		3,954
Interest		2
Total assets		45,501,697
Liabilities:
Payable for:
Fund shares redeemed		47,429
Management fees		28,550
Transfer agent and administrative fees		8,397
Portfolio accounting fees		3,359
Distribution and service fees		3,252
Miscellaneous		6,916
Total liabilities		97,903
Commitments and contingent liabilities (Note 9)		—
Net assets	$	45,403,794
Net assets consist of:
Paid in capital	$	43,275,566
Accumulated net investment loss		(166,009	)
Accumulated net realized loss on investments		(6,801,459	)
Net unrealized appreciation on investments		9,095,696
Net assets	$	45,403,794
Investor Class:
Net assets	$	37,634,140
Capital shares outstanding		420,336
Net asset value per share	$	89.53
A-Class:
Net assets	$	3,787,581
Capital shares outstanding		44,874
Net asset value per share	$	84.40
Maximum offering price per share (Net asset value divided by 95.25%)	$	88.61
C-Class:
Net assets	$	2,774,645
Capital shares outstanding		36,496
Net asset value per share	$	76.03
H-Class:
Net assets	$	1,207,428
Capital shares outstanding		14,731
Net asset value per share	$	81.97

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $6,619)	$	113,607
Interest		187
Total investment income		113,794
Expenses:
Management fees		127,206
Transfer agent and administrative fees		37,414
Distribution and service fees:
A-Class		3,872
C-Class		12,650
H-Class		6,073
Portfolio accounting fees		14,965
Custodian fees		1,760
Trustees’ fees*		1,180
Line of credit fees		48
Miscellaneous		22,244
Total expenses		227,412
Net investment loss		(113,618	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,774,515
Net realized gain		3,774,515
Net change in unrealized appreciation (depreciation) on:
Investments		285,305
Net change in unrealized appreciation (depreciation)		285,305
Net realized and unrealized gain		4,059,820
Net increase in net assets resulting from operations	$	3,946,202

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

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

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(113,618	)	$	(292,593	)
Net realized gain (loss) on investments		3,774,515			(8,402,113	)
Net change in unrealized appreciation (depreciation) on investments		285,305			2,939,491
Net increase (decrease) in net assets resulting from operations		3,946,202			(5,755,215	)
Distributions to shareholders from:
Net realized gains
Investor Class		—			(131,247	)
A-Class		—			(27,718	)
C-Class		—			(14,060	)
H-Class		—			(57,824	)*
Total distributions to shareholders		—			(230,849	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		60,030,189			97,142,398
A-Class		11,641,648			19,084,067
C-Class		1,331,334			7,825,210
H-Class		15,754,033			181,150,735	*
Distributions reinvested
Investor Class		—			130,284
A-Class		—			27,197
C-Class		—			13,853
H-Class		—			57,824	*
Cost of shares redeemed
Investor Class		(49,718,713	)		(78,468,395	)
A-Class		(9,879,257	)		(19,052,730	)
C-Class		(1,693,018	)		(7,377,638	)
H-Class		(22,176,330	)		(172,995,235	)*
Net increase from capital share transactions		5,289,886			27,537,570
Net increase in net assets		9,236,088			21,551,506
Net assets:
Beginning of period		36,167,706			14,616,200
End of period	$	45,403,794		$	36,167,706
Accumulated net investment loss at end of period	$	(166,009	)	$	(52,391	)
Capital share activity:
Shares sold
Investor Class		716,383			1,219,475
A-Class		152,414			253,474
C-Class		18,865			114,412
H-Class		217,466			2,463,941	*
Shares issued from reinvestment of distributions
Investor Class		—			1,607
A-Class		—			355
C-Class		—			199
H-Class		—			777	*
Shares redeemed
Investor Class		(609,666	)		(1,014,411	)
A-Class		(132,054	)		(256,742	)
C-Class		(24,447	)		(108,804	)
H-Class		(302,618	)		(2,390,380	)*
Net increase in shares		36,343			283,903

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

INTERNET FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	77.91		$	77.87		$	75.05		$	55.46		$	51.90		$	52.28
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.41	)		(.49	)		(.62	)		(.44	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		11.86			.78			5.27			20.53			5.26			.13
Total from investment operations		11.62			.37			4.78			19.91			4.82			(.38	)
Less distributions from:
Net realized gains		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Total distributions		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Net asset value, end of period	$	89.53		$	77.91		$	77.87		$	75.05		$	55.46		$	51.90
Total Returnc		14.91	%		0.46	%		6.40	%		35.93	%		9.65	%		(0.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,634		$	24,435		$	8,328		$	26,828		$	6,109		$	6,206
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		(0.52	%)		(0.64	%)		(0.87	%)		(0.87	%)		(1.05	%)
Total expenses		1.37	%		1.35	%		1.35	%		1.37	%		1.35	%		1.36	%
Portfolio turnover rate		207	%		520	%		495	%		472	%		442	%		380	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	73.54		$	73.71		$	71.32		$	52.85		$	49.63		$	50.13
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.69	)		(.61	)		(.79	)		(.52	)		(.64	)
Net gain (loss) on investments (realized and unrealized)		11.18			.85			4.96			19.58			5.00			.14
Total from investment operations		10.86			.16			4.35			18.79			4.48			(.50	)
Less distributions from:
Net realized gains		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Total distributions		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Net asset value, end of period	$	84.40		$	73.54		$	73.71		$	71.32		$	52.85		$	49.63
Total Returnc		14.77	%		0.20	%		6.12	%		35.58	%		9.41	%		(1.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,788		$	1,803		$	2,022		$	12,566		$	1,192		$	828
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(0.92	%)		(0.86	%)		(1.12	%)		(1.08	%)		(1.39	%)
Total expenses		1.61	%		1.60	%		1.61	%		1.62	%		1.60	%		1.61	%
Portfolio turnover rate		207	%		520	%		495	%		472	%		442	%		380	%

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

INTERNET FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	66.49		$	67.17		$	65.64		$	49.03		$	46.50		$	47.30
Income (loss) from investment operations:
Net investment income (loss)b		(.55	)		(1.03	)		(1.11	)		(1.16	)		(.85	)		(.94	)
Net gain (loss) on investments (realized and unrealized)		10.09			.68			4.60			18.09			4.64			.14
Total from investment operations		9.54			(.35	)		3.49			16.93			3.79			(.80	)
Less distributions from:
Net realized gains		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Total distributions		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Net asset value, end of period	$	76.03		$	66.49		$	67.17		$	65.64		$	49.03		$	46.50
Total Returnc		14.33	%		(0.54	%)		5.34	%		34.56	%		8.55	%		(1.69	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,775		$	2,798		$	2,436		$	4,655		$	1,111		$	643
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.53	%)		(1.68	%)		(1.85	%)		(1.91	%)		(2.17	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		207	%		520	%		495	%		472	%		442	%		380	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	71.40		$	71.64		$	69.58		$	51.70		$	48.71		$	49.31
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.72	)		(.78	)		(1.07	)		(.64	)		(.71	)
Net gain (loss) on investments (realized and unrealized)		10.93			.81			4.80			19.27			4.89			.11
Total from investment operations		10.57			.09			4.02			18.20			4.25			(.60	)
Less distributions from:
Net realized gains		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Total distributions		—			(.33	)		(1.96	)		(.32	)		(1.26	)		—
Net asset value, end of period	$	81.97		$	71.40		$	71.64		$	69.58		$	51.70		$	48.71
Total Returnc		14.79	%		0.11	%		5.80	%		35.23	%		9.13	%		(1.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,207		$	7,132		$	1,830		$	11,814		$	552		$	719
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(0.97	%)		(1.12	%)		(1.53	%)		(1.36	%)		(1.58	%)
Total expenses		1.61	%		1.67	%		1.85	%		1.87	%		1.85	%		1.86	%
Portfolio turnover rate		207	%		520	%		495	%		472	%		442	%		380	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

LEISURE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Comcast Corp. — Class A	3.8%
Walt Disney Co.	3.7%
Philip Morris International, Inc.	3.7%
Altria Group, Inc.	3.4%
McDonald’s Corp.	3.0%
Charter Communications, Inc. — Class A	2.8%
Starbucks Corp.	2.7%
Reynolds American, Inc.	2.5%
Time Warner, Inc.	2.5%
Twenty-First Century Fox, Inc. — Class A	2.1%
Top Ten Total	30.2%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 85

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Media - 31.6%
Comcast Corp. — Class A		11,205	$	743,340
Walt Disney Co.		7,737		718,457
Charter Communications, Inc. — Class A*		2,016		544,260
Time Warner, Inc.		5,962		474,635
Twenty-First Century Fox, Inc. — Class A		16,509		399,848
DISH Network Corp. — Class A*		5,526		302,714
CBS Corp. — Class B		5,435		297,512
Discovery Communications, Inc. — Class A*		9,341		251,461
Viacom, Inc. — Class B		6,122		233,248
Liberty Broadband Corp. — Class C*		2,970		212,296
Liberty Media Corporation-Liberty SiriusXM — Class A*		5,840		198,443
News Corp. — Class A		12,232		171,003
Scripps Networks Interactive, Inc. — Class A		2,674		169,772
Liberty Global plc*		4,809		158,889
Tribune Media Co. — Class A		3,900		142,428
Grupo Televisa SAB ADR		5,170		132,817
TEGNA, Inc.		5,939		129,827
AMC Networks, Inc. — Class A*		2,220		115,129
Liberty Global plc LiLAC — Class C*		3,701		103,813
Starz — Class A*		3,297		102,833
Sinclair Broadcast Group, Inc. — Class A		3,380		97,614
Media General, Inc.*		5,000		92,150
Meredith Corp.		1,740		90,463
Gannett Company, Inc.		7,333		85,356
Nexstar Broadcasting Group, Inc. — Class A		1,410		81,371
Time, Inc.		4,845		70,156
Total Media				6,119,835
Retail - 18.1%
McDonald’s Corp.		5,039		581,299
Starbucks Corp.		9,684		524,292
Yum! Brands, Inc.		3,911		355,158
Chipotle Mexican Grill, Inc. — Class A*		499		211,327
Darden Restaurants, Inc.		2,643		162,069
Domino’s Pizza, Inc.		1,044		158,531
Dunkin’ Brands Group, Inc.		2,570		133,846
Panera Bread Co. — Class A*		638		124,231
Restaurant Brands International, Inc.		2,531		112,832
Jack in the Box, Inc.		1,080		103,615
Cracker Barrel Old Country Store, Inc.		770		101,809
Papa John’s International, Inc.		1,284		101,243
Wendy’s Co.		9,092		98,194
Brinker International, Inc.		1,944		98,036
Texas Roadhouse, Inc. — Class A		2,374		92,657
Cheesecake Factory, Inc.		1,840		92,110
Buffalo Wild Wings, Inc.*		637		89,651
Bloomin’ Brands, Inc.		4,762		82,097
Dave & Buster’s Entertainment, Inc.*		1,880		73,658
DineEquity, Inc.		910		72,063
Shake Shack, Inc. — Class A*		1,920		66,566
Sonic Corp.		2,509		65,686
Total Retail				3,500,970
Lodging - 10.7%
Las Vegas Sands Corp.		6,867		395,126
Marriott International, Inc. — Class A		5,798		390,366
Hilton Worldwide Holdings, Inc.		12,230		280,434
MGM Resorts International*		8,750		227,763
Wynn Resorts Ltd.		1,811		176,428
Wyndham Worldwide Corp.		2,361		158,966
Hyatt Hotels Corp. — Class A*		2,990		147,168
Melco Crown Entertainment Ltd. ADR		7,623		122,807
Boyd Gaming Corp.*		4,573		90,454
Interval Leisure Group, Inc.		5,114		87,807
Total Lodging				2,077,319
Agriculture - 10.1%
Philip Morris International, Inc.		7,341		713,691
Altria Group, Inc.		10,342		653,925
Reynolds American, Inc.		10,226		482,156
Vector Group Ltd.		4,645		100,013
Total Agriculture				1,949,785
Beverages - 7.5%
Constellation Brands, Inc. — Class A		2,046		340,639
Molson Coors Brewing Co. — Class B		2,685		294,813
Brown-Forman Corp. — Class B		5,548		263,197
Anheuser-Busch InBev S.A. ADR		1,443		189,625
Ambev S.A. ADR		27,788		169,229
Diageo plc ADR		1,000		116,040
Boston Beer Company, Inc. — Class A*		520		80,735
Total Beverages				1,454,278
Leisure Time - 6.9%
Carnival Corp.		7,430		362,733
Royal Caribbean Cruises Ltd.		3,342		250,483
Harley-Davidson, Inc.		3,467		182,330
Norwegian Cruise Line Holdings Ltd.*		4,670		176,059
Polaris Industries, Inc.		1,770		137,069
Brunswick Corp.		2,605		127,072
Vista Outdoor, Inc.*		2,318		92,395
Total Leisure Time				1,328,141
Entertainment - 6.6%
Gaming and Leisure Properties, Inc.		4,662		155,944
Vail Resorts, Inc.		880		138,054
Six Flags Entertainment Corp.		2,480		132,953
International Game Technology plc		5,380		131,164
Cinemark Holdings, Inc.		3,226		123,491
Madison Square Garden Co. — Class A*		703		119,095
Regal Entertainment Group — Class A		4,980		108,315
Lions Gate Entertainment Corp.		5,017		100,290
Marriott Vacations Worldwide Corp.		1,121		82,192
SeaWorld Entertainment, Inc.		4,970		66,996
Penn National Gaming, Inc.*		4,647		63,060

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
LEISURE FUND

	Shares		Value
Pinnacle Entertainment, Inc.*		4,126	$	50,915
Total Entertainment				1,272,469
Software - 3.9%
Activision Blizzard, Inc.		7,579		335,750
Electronic Arts, Inc.*		3,510		299,754
Take-Two Interactive Software, Inc.*		2,562		115,495
Total Software				750,999
Toys, Games & Hobbies - 1.9%
Hasbro, Inc.		2,372		188,170
Mattel, Inc.		6,159		186,495
Total Toys, Games & Hobbies				374,665
Commercial Services - 1.7%
Aramark		4,746		180,490
Live Nation Entertainment, Inc.*		5,164		141,907
Total Commercial Services				322,397
Electronics - 0.5%
IMAX Corp.*		3,508		101,626
Miscellaneous Manufacturing - 0.4%
Smith & Wesson Holding Corp.*		2,650		70,464
Total Common Stocks
(Cost $15,274,382)				19,322,948

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	299		299
Total Repurchase Agreement
(Cost $299)				299
Total Investments - 99.9%
(Cost $15,274,681)			$	19,323,247
Other Assets & Liabilities, net - 0.1%				20,046
Total Net Assets - 100.0%			$	19,343,293

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	19,322,948	$	—	$	—	$	19,322,948
Repurchase Agreement		—		299		—		299
Total	$	19,322,948	$	299	$	—	$	19,323,247

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

For the period ended September 30, 2016, there were no transfers between levels.

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $15,274,382)	$	19,322,948
Repurchase agreements, at value (cost $299)		299
Total investments (cost $15,274,681)		19,323,247
Receivables:
Fund shares sold		15,591
Dividends		34,835
Foreign taxes reclaim		3,881
Total assets		19,377,554
Liabilities:
Overdraft due to custodian bank		2,244
Payable for:
Management fees		14,582
Transfer agent and administrative fees		4,289
Fund shares redeemed		4,284
Distribution and service fees		2,639
Portfolio accounting fees		1,716
Miscellaneous		4,507
Total liabilities		34,261
Commitments and contingent liabilities (Note 9)		—
Net assets	$	19,343,293
Net assets consist of:
Paid in capital	$	16,580,137
Undistributed net investment income		181,841
Accumulated net realized loss on investments		(1,467,251	)
Net unrealized appreciation on investments		4,048,566
Net assets	$	19,343,293
Investor Class:
Net assets	$	9,285,890
Capital shares outstanding		148,755
Net asset value per share	$	62.42
A-Class:
Net assets	$	6,199,697
Capital shares outstanding		106,541
Net asset value per share	$	58.19
Maximum offering price per share (Net asset value divided by 95.25%)	$	61.09
C-Class:
Net assets	$	1,160,503
Capital shares outstanding		21,776
Net asset value per share	$	53.29
H-Class:
Net assets	$	2,697,203
Capital shares outstanding		47,531
Net asset value per share	$	56.75

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $2,154)	$	232,496
Interest		110
Total investment income		232,607
Expenses:
Management fees		100,779
Transfer agent and administrative fees		29,641
Distribution and service fees:
A-Class		9,340
C-Class		6,434
H-Class		4,780
Portfolio accounting fees		11,856
Custodian fees		1,393
Trustees’ fees*		943
Line of credit fees		45
Miscellaneous		17,310
Total expenses		182,521
Net investment income		50,086
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,871,041
Net realized gain		3,871,041
Net change in unrealized appreciation (depreciation) on:
Investments		(3,555,477	)
Net change in unrealized appreciation (depreciation)		(3,555,477	)
Net realized and unrealized gain		315,564
Net increase in net assets resulting from operations	$	365,650

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	50,086		$	131,755
Net realized gain (loss) on investments		3,871,041			(3,323,030	)
Net change in unrealized appreciation (depreciation) on investments		(3,555,477	)		84,303
Net increase (decrease) in net assets resulting from operations		365,650			(3,106,972	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(136,576	)
A-Class		—			(73,115	)
C-Class		—			(10,686	)
H-Class		—			(65,152	)*
Net realized gains
Investor Class		—			(46,005	)
A-Class		—			(24,629	)
C-Class		—			(3,600	)
H-Class		—			(21,946	)*
Total distributions to shareholders		—			(381,709	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		20,816,026			71,375,657
A-Class		5,782,299			23,772,534
C-Class		37,202			946,866
H-Class		15,304,191			98,127,231	*
Distributions reinvested
Investor Class		—			178,912
A-Class		—			83,611
C-Class		—			13,503
H-Class		—			87,017	*
Cost of shares redeemed
Investor Class		(26,925,902	)		(102,869,164	)
A-Class		(7,702,844	)		(26,178,067	)
C-Class		(244,668	)		(1,158,823	)
H-Class		(25,817,050	)		(91,022,759	)*
Net decrease from capital share transactions		(18,750,746	)		(26,643,482	)
Net decrease in net assets		(18,385,096	)		(30,132,163	)
Net assets:
Beginning of period		37,728,389			67,860,552
End of period	$	19,343,293		$	37,728,389
Undistributed net investment income at end of period	$	181,841		$	131,755

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:
Shares sold
Investor Class		336,226			1,162,945
A-Class		100,541			421,600
C-Class		710			18,122
H-Class		275,036			1,771,250	*
Shares issued from reinvestment of distributions
Investor Class		—			2,989
A-Class		—			1,495
C-Class		—			262
H-Class		—			1,596	*
Shares redeemed
Investor Class		(434,743	)		(1,716,917	)
A-Class		(133,502	)		(471,745	)
C-Class		(4,628	)		(22,844	)
H-Class		(464,078	)		(1,663,736	)*
Net decrease in shares		(324,438	)		(494,983	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

LEISURE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	61.36		$	60.75		$	55.81		$	44.93		$	36.94		$	33.50
Income (loss) from investment operations:
Net investment income (loss)b		.20			.22			.52			.20			.36			.17
Net gain (loss) on investments (realized and unrealized)		.86			.82			5.64			10.95			7.66			3.27
Total from investment operations		1.06			1.04			6.16			11.15			8.02			3.44
Less distributions from:
Net investment income		—			(.32	)		(.12	)		(.27	)		(.03	)		—
Net realized gains		—			(.11	)		(1.10	)		—			—			—
Total distributions		—			(.43	)		(1.22	)		(.27	)		(.03	)		—
Net asset value, end of period	$	62.42		$	61.36		$	60.75		$	55.81		$	44.93		$	36.94
Total Returnc		1.73	%		1.72	%		11.15	%		24.83	%		21.74	%		10.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,286		$	15,173		$	48,494		$	24,139		$	22,005		$	12,687
Ratios to average net assets:
Net investment income (loss)		0.64	%		0.35	%		0.89	%		0.39	%		0.92	%		0.49	%
Total expenses		1.36	%		1.34	%		1.34	%		1.37	%		1.35	%		1.35	%
Portfolio turnover rate		141	%		339	%		343	%		265	%		517	%		797	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	57.27		$	56.88		$	52.46		$	42.35		$	34.91		$	31.75
Income (loss) from investment operations:
Net investment income (loss)b		.10			.08			.38			.04			.29			.07
Net gain (loss) on investments (realized and unrealized)		.82			.74			5.26			10.34			7.18			3.09
Total from investment operations		.92			.82			5.64			10.38			7.47			3.16
Less distributions from:
Net investment income		—			(.32	)		(.12	)		(.27	)		(.03	)		—
Net realized gains		—			(.11	)		(1.10	)		—			—			—
Total distributions		—			(.43	)		(1.22	)		(.27	)		(.03	)		—
Net asset value, end of period	$	58.19		$	57.27		$	56.88		$	52.46		$	42.35		$	34.91
Total Returnc		1.61	%		1.45	%		10.86	%		24.53	%		21.42	%		9.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,200		$	7,990		$	10,703		$	1,778		$	1,409		$	448
Ratios to average net assets:
Net investment income (loss)		0.35	%		0.15	%		0.69	%		0.09	%		0.80	%		0.23	%
Total expenses		1.61	%		1.60	%		1.58	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		141	%		339	%		343	%		265	%		517	%		797	%

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

LEISURE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	52.65		$	52.72		$	49.07		$	39.92		$	33.16		$	30.36
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.28	)		(.19	)		(.27	)		.01			(.15	)
Net gain (loss) on investments (realized and unrealized)		.74			.64			5.06			9.69			6.78			2.95
Total from investment operations		.64			.36			4.87			9.42			6.79			2.80
Less distributions from:
Net investment income		—			(.32	)		(.12	)		(.27	)		(.03	)		—
Net realized gains		—			(.11	)		(1.10	)		—			—			—
Total distributions		—			(.43	)		(1.22	)		(.27	)		(.03	)		—
Net asset value, end of period	$	53.29		$	52.65		$	52.72		$	49.07		$	39.92		$	33.16
Total Returnc		1.22	%		0.69	%		10.04	%		23.61	%		20.54	%		9.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,161		$	1,353		$	1,590		$	1,460		$	928		$	1,345
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.54	%)		(0.37	%)		(0.59	%)		0.03	%		(0.50	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		141	%		339	%		343	%		265	%		517	%		797	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	55.85		$	55.50		$	51.31		$	41.54		$	34.33		$	31.29
Income (loss) from investment operations:
Net investment income (loss)b		.06			.27			.30			(.11	)		.29			(.01	)
Net gain (loss) on investments (realized and unrealized)		.84			.51			5.11			10.15			6.95			3.05
Total from investment operations		.90			.78			5.41			10.04			7.24			3.04
Less distributions from:
Net investment income		—			(.32	)		(.12	)		(.27	)		(.03	)		—
Net realized gains		—			(.11	)		(1.10	)		—			—			—
Total distributions		—			(.43	)		(1.22	)		(.27	)		(.03	)		—
Net asset value, end of period	$	56.75		$	55.85		$	55.50		$	51.31		$	41.54		$	34.33
Total Returnc		1.59	%		1.41	%		10.66	%		24.18	%		21.12	%		9.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,697		$	13,212		$	7,074		$	3,115		$	1,241		$	1,379
Ratios to average net assets:
Net investment income (loss)		0.21	%		0.49	%		0.55	%		(0.23	%)		0.80	%		(0.03	%)
Total expenses		1.61	%		1.64	%		1.83	%		1.87	%		1.85	%		1.86	%
Portfolio turnover rate		141	%		339	%		343	%		265	%		517	%		797	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

PRECIOUS METALS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Newmont Mining Corp.	6.2%
Barrick Gold Corp.	6.1%
Freeport-McMoRan, Inc.	5.4%
Goldcorp, Inc.	5.2%
Agnico Eagle Mines Ltd.	4.8%
Franco-Nevada Corp.	4.7%
Silver Wheaton Corp.	4.7%
Randgold Resources Ltd. ADR	4.2%
VanEck Vectors Junior Gold Miners ETF	3.9%
AngloGold Ashanti Ltd. ADR	3.5%
Top Ten Total	48.7%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.6%
Mining - 95.6%
Newmont Mining Corp.		176,139	$	6,920,500
Barrick Gold Corp.		387,461		6,865,808
Freeport-McMoRan, Inc.		557,619		6,055,742
Goldcorp, Inc.		351,233		5,802,369
Agnico Eagle Mines Ltd.		99,641		5,398,549
Franco-Nevada Corp.		75,350		5,264,705
Silver Wheaton Corp.		193,432		5,228,467
Randgold Resources Ltd. ADR		46,825		4,685,778
AngloGold Ashanti Ltd. ADR*		244,085		3,885,833
Kinross Gold Corp.*		830,362		3,495,824
Royal Gold, Inc.		44,453		3,441,996
Gold Fields Ltd. ADR		621,859		3,016,016
Yamana Gold, Inc.		694,875		2,994,911
Tahoe Resources, Inc.		232,502		2,983,001
Cia de Minas Buenaventura S.A.A. ADR*		210,862		2,918,330
Sibanye Gold Ltd. ADR		192,526		2,720,392
Eldorado Gold Corp.*		658,684		2,588,628
Pan American Silver Corp.		142,111		2,503,996
B2Gold Corp.*		910,204		2,393,837
Hecla Mining Co.		397,924		2,268,167
New Gold, Inc.*		514,919		2,239,898
Alamos Gold, Inc. — Class A		268,455		2,201,331
Novagold Resources, Inc.*		374,001		2,094,406
Coeur Mining, Inc.*		173,783		2,055,853
IAMGOLD Corp.*		506,154		2,049,924
Pretium Resources, Inc.*		197,317		2,026,446
Stillwater Mining Co.*		151,374		2,022,357
Harmony Gold Mining Company Ltd. ADR		547,046		1,909,191
First Majestic Silver Corp.*		178,911		1,842,783
Silver Standard Resources, Inc.*		148,774		1,794,214
Sandstorm Gold Ltd.*		248,585		1,250,383
Seabridge Gold, Inc.*		105,979		1,168,948
McEwen Mining, Inc.		216,660		795,142
Fortuna Silver Mines, Inc.*		104,320		755,277
Richmont Mines, Inc.*		61,870		621,794
Endeavour Silver Corp.*		120,500		618,165
AuRico Metals, Inc.*		5		4
Total Mining				106,878,965
Total Common Stocks
(Cost $63,588,526)				106,878,965
EXCHANGE-TRADED FUND† - 3.9%
VanEck Vectors Junior Gold Miners ETF		98,923		4,381,300
Total Exchange-Traded Fund
(Cost $2,228,620)				4,381,300
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	47		47
Total Repurchase Agreement
(Cost $47)				47
Total Investments - 99.5%
(Cost $65,817,193)			$	111,260,312
Other Assets & Liabilities, net - 0.5%				529,860
Total Net Assets - 100.0%			$	111,790,172

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	106,878,965	$	—	$	—	$	106,878,965
Exchange-Traded Fund		4,381,300		—		—		4,381,300
Repurchase Agreement		—		47		—		47
Total	$	111,260,265	$	47	$	—	$	111,260,312

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

For the period ended September 30, 2016, there were no transfers between levels.

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $65,817,146)	$	111,260,265
Repurchase agreements, at value (cost $47)		47
Total investments (cost $65,817,193)		111,260,312
Receivables:
Securities sold		28,647,499
Fund shares sold		1,247,505
Dividends		58,834
Total assets		141,214,150
Liabilities:
Overdraft due to custodian bank		274,000
Payable for:
Fund shares redeemed		28,986,890
Management fees		80,518
Transfer agent and administrative fees		26,839
Distribution and service fees		11,334
Portfolio accounting fees		10,736
Miscellaneous		33,661
Total liabilities		29,423,978
Commitments and contingent liabilities (Note 9)		—
Net assets	$	111,790,172
Net assets consist of:
Paid in capital	$	124,077,392
Accumulated net investment loss		(486,573	)
Accumulated net realized loss on investments		(57,243,766	)
Net unrealized appreciation on investments		45,443,119
Net assets	$	111,790,172
Investor Class:
Net assets	$	85,948,160
Capital shares outstanding		2,333,919
Net asset value per share	$	36.83
A-Class:
Net assets	$	12,210,128
Capital shares outstanding		344,379
Net asset value per share	$	35.46
Maximum offering price per share (Net asset value divided by 95.25%)	$	37.22
C-Class:
Net assets	$	8,826,473
Capital shares outstanding		281,982
Net asset value per share	$	31.30
H-Class:
Net assets	$	4,805,411
Capital shares outstanding		139,427
Net asset value per share	$	34.47

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $22,744)	$	243,139
Interest		944
Total investment income		244,083
Expenses:
Management fees		436,357
Transfer agent and administrative fees		145,453
Distribution and service fees:
A-Class		15,739
C-Class		45,418
H-Class		8,575
Portfolio accounting fees		58,180
Custodian fees		6,900
Trustees’ fees*		4,459
Line of credit fees		81
Miscellaneous		85,217
Total expenses		806,379
Net investment loss		(562,296	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,708,279
Net realized gain		4,708,279
Net change in unrealized appreciation (depreciation) on:
Investments		22,679,643
Net change in unrealized appreciation (depreciation)		22,679,643
Net realized and unrealized gain		27,387,922
Net increase in net assets resulting from operations	$	26,825,626

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(562,296	)	$	(184,033	)
Net realized gain (loss) on investments		4,708,279			(7,581,988	)
Net change in unrealized appreciation (depreciation) on investments		22,679,643			12,729,730
Net increase in net assets resulting from operations		26,825,626			4,963,709
Distributions to shareholders from:
Net investment income
Investor Class		—			(126,920	)
A-Class		—			(12,863	)
C-Class		—			(26,376	)
H-Class		—			(17,754	)*
Total distributions to shareholders		—			(183,913	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		324,961,954			253,246,357
A-Class		23,074,451			32,975,820
C-Class		6,480,585			11,345,908
H-Class		40,034,903			219,344,787	*
Distributions reinvested
Investor Class		—			121,222
A-Class		—			9,017
C-Class		—			26,086
H-Class		—			17,751	*
Cost of shares redeemed
Investor Class		(309,709,964	)		(238,675,293	)
A-Class		(16,939,813	)		(34,545,272	)
C-Class		(6,540,930	)		(10,512,858	)
H-Class		(38,809,349	)		(225,166,382	)*
Net increase from capital share transactions		22,551,837			8,187,143
Net increase in net assets		49,377,463			12,966,939
Net assets:
Beginning of period		62,412,709			49,445,770
End of period	$	111,790,172		$	62,412,709
Accumulated net investment loss/Undistributed net investment income at end of period	$	(486,573	)	$	75,723
Capital share activity:
Shares sold
Investor Class		8,753,241			11,832,927
A-Class		668,340			1,496,099
C-Class		206,851			599,391
H-Class		1,252,819			10,896,192	*
Shares issued from reinvestment of distributions
Investor Class		—			6,994
A-Class		—			540
C-Class		—			1,755
H-Class		—			1,092	*
Shares redeemed
Investor Class		(8,221,281	)		(11,253,817	)
A-Class		(464,591	)		(1,558,936	)
C-Class		(216,773	)		(567,160	)
H-Class		(1,213,048	)		(11,153,001	)*
Net increase in shares		765,558			302,076

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	27.37		$	25.11		$	35.78		$	51.65		$	65.73		$	86.74
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.07	)		.01			.36			.34			(.02	)
Net gain (loss) on investments (realized and unrealized)		9.62			2.44			(9.88	)		(16.06	)		(12.12	)		(20.70	)
Total from investment operations		9.46			2.37			(9.87	)		(15.70	)		(11.78	)		(20.72	)
Less distributions from:
Net investment income		—			(.11	)		(.80	)		(.17	)		(.10	)		(.29	)
Net realized gains		—			—			—			—			(2.20	)		—
Total distributions		—			(.11	)		(.80	)		(.17	)		(2.30	)		(.29	)
Net asset value, end of period	$	36.83		$	27.37		$	25.11		$	35.78		$	51.65		$	65.73
Total Returnc		34.53	%		9.67	%		(27.88	%)		(30.37	%)		(18.60	%)		(23.91	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	85,948		$	49,321		$	30,528		$	42,846		$	71,386		$	79,637
Ratios to average net assets:
Net investment income (loss)		(0.84	%)		(0.31	%)		0.04	%		0.96	%		0.55	%		(0.03	%)
Total expensesd		1.26	%		1.25	%		1.25	%		1.27	%		1.25	%		1.26	%
Portfolio turnover rate		217	%		797	%		371	%		348	%		206	%		235	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	26.39		$	24.28		$	34.75		$	50.28		$	64.21		$	84.97
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.12	)		(.10	)		.16			.21			(.22	)
Net gain (loss) on investments (realized and unrealized)		9.27			2.34			(9.57	)		(15.52	)		(11.84	)		(20.25	)
Total from investment operations		9.07			2.22			(9.67	)		(15.36	)		(11.63	)		(20.47	)
Less distributions from:
Net investment income		—			(.11	)		(.80	)		(.17	)		(.10	)		(.29	)
Net realized gains		—			—			—			—			(2.20	)		—
Total distributions		—			(.11	)		(.80	)		(.17	)		(2.30	)		(.29	)
Net asset value, end of period	$	35.46		$	26.39		$	24.28		$	34.75		$	50.28		$	64.21
Total Returnc		34.33	%		9.38	%		(28.13	%)		(30.52	%)		(18.80	%)		(24.13	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,210		$	3,711		$	4,928		$	5,235		$	5,988		$	6,412
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		(0.54	%)		(0.29	%)		0.45	%		0.35	%		(0.30	%)
Total expensesd		1.51	%		1.50	%		1.50	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		217	%		797	%		371	%		348	%		206	%		235	%

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.38		$	21.67		$	31.34		$	45.72		$	59.02		$	78.70
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.26	)		(.29	)		(.07	)		(.23	)		(.72	)
Net gain (loss) on investments (realized and unrealized)		8.21			2.08			(8.58	)		(14.14	)		(10.77	)		(18.67	)
Total from investment operations		7.92			1.82			(8.87	)		(14.21	)		(11.00	)		(19.39	)
Less distributions from:
Net investment income		—			(.11	)		(.80	)		(.17	)		(.10	)		(.29	)
Net realized gains		—			—			—			—			(2.20	)		—
Total distributions		—			(.11	)		(.80	)		(.17	)		(2.30	)		(.29	)
Net asset value, end of period	$	31.30		$	23.38		$	21.67		$	31.34		$	45.72		$	59.02
Total Returnc		33.88	%		8.66	%		(28.64	%)		(31.05	%)		(19.39	%)		(24.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,826		$	6,825		$	5,590		$	9,250		$	18,608		$	26,533
Ratios to average net assets:
Net investment income (loss)		(1.86	%)		(1.34	%)		(0.99	%)		(0.22	%)		(0.42	%)		(1.04	%)
Total expensesd		2.26	%		2.25	%		2.25	%		2.27	%		2.25	%		2.26	%
Portfolio turnover rate		217	%		797	%		371	%		348	%		206	%		235	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	25.64		$	23.64		$	33.92		$	49.20		$	63.02		$	83.59
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.11	)		(.14	)		.12			(.02	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		9.03			2.22			(9.34	)		(15.23	)		(11.50	)		(19.84	)
Total from investment operations		8.83			2.11			(9.48	)		(15.11	)		(11.52	)		(20.28	)
Less distributions from:
Net investment income		—			(.11	)		(.80	)		(.17	)		(.10	)		(.29	)
Net realized gains		—			—			—			—			(2.20	)		—
Total distributions		—			(.11	)		(.80	)		(.17	)		(2.30	)		(.29	)
Net asset value, end of period	$	34.47		$	25.64		$	23.64		$	33.92		$	49.20		$	63.02
Total Returnc		34.40	%		9.17	%		(28.24	%)		(30.71	%)		(18.99	%)		(24.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,805		$	2,556		$	8,400		$	4,009		$	3,148		$	9,610
Ratios to average net assets:
Net investment income (loss)		(1.13	%)		(0.53	%)		(0.45	%)		0.34	%		(0.04	%)		(0.59	%)
Total expensesd		1.51	%		1.59	%		1.75	%		1.77	%		1.75	%		1.76	%
Portfolio turnover rate		217	%		797	%		371	%		348	%		206	%		235	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

REAL ESTATE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Simon Property Group, Inc.	2.2%
American Tower Corp. — Class A	1.9%
Public Storage	1.7%
Crown Castle International Corp.	1.6%
EPR Properties	1.5%
Prologis, Inc.	1.5%
Equinix, Inc.	1.5%
Welltower, Inc.	1.4%
Ventas, Inc.	1.4%
Weyerhaeuser Co.	1.4%
Top Ten Total	16.1%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
REITs - 93.9%
REITs-Diversified - 21.8%
American Tower Corp. — Class A		5,853	$	663,319
Crown Castle International Corp.		5,705		537,468
EPR Properties		6,660		524,408
Equinix, Inc.		1,394		502,189
Weyerhaeuser Co.		14,722		470,221
Vornado Realty Trust		4,050		409,901
Digital Realty Trust, Inc.		3,680		357,402
Duke Realty Corp.		10,748		293,743
WP Carey, Inc.		3,740		241,342
Lamar Advertising Co. — Class A		3,683		240,537
Forest City Realty Trust, Inc. — Class A		10,056		232,595
Liberty Property Trust		5,702		230,076
Communications Sales & Leasing, Inc.		6,555		205,893
STORE Capital Corp.		6,865		202,312
Retail Properties of America, Inc. — Class A		11,279		189,487
CoreSite Realty Corp.		2,409		178,362
Outfront Media, Inc.		7,287		172,338
New Residential Investment Corp.		12,365		170,761
Rayonier, Inc.		6,418		170,334
PS Business Parks, Inc.		1,473		167,289
DuPont Fabros Technology, Inc.		3,888		160,380
Lexington Realty Trust		14,418		148,505
NorthStar Realty Finance Corp.		11,070		145,792
Washington Real Estate Investment Trust		4,562		141,969
Cousins Properties, Inc.		13,016		135,887
American Assets Trust, Inc.		3,031		131,485
STAG Industrial, Inc.		5,358		131,325
GEO Group, Inc.		5,457		129,767
Potlatch Corp.		3,060		119,003
Corrections Corporation of America		7,926		109,934
Total REITs-Diversified				7,514,024
REITs-Office Property - 11.7%
Boston Properties, Inc.		3,130		426,588
SL Green Realty Corp.		2,842		307,220
VEREIT, Inc.		29,273		303,561
Alexandria Real Estate Equities, Inc.		2,511		273,121
Kilroy Realty Corp.		3,378		234,264
Douglas Emmett, Inc.		6,082		222,784
Highwoods Properties, Inc.		4,072		212,233
Gramercy Property Trust		19,806		190,930
Hudson Pacific Properties, Inc.		5,709		187,655
Equity Commonwealth*		6,044		182,650
Paramount Group, Inc.		10,676		174,980
Piedmont Office Realty Trust, Inc. — Class A		7,881		171,569
Empire State Realty Trust, Inc. — Class A		8,090		169,486
Corporate Office Properties Trust		5,532		156,832
Brandywine Realty Trust		9,998		156,169
Columbia Property Trust, Inc.		6,892		154,312
Mack-Cali Realty Corp.		5,458		148,567
Parkway Properties, Inc.		7,448		126,690
Government Properties Income Trust		5,300		119,886
New York REIT, Inc.		12,629		115,555
Total REITs-Office Property				4,035,052
REITs-Apartments - 9.9%
AvalonBay Communities, Inc.		2,596		461,672
Equity Residential		7,054		453,784
Essex Property Trust, Inc.		1,589		353,870
UDR, Inc.		8,184		294,542
Apartment Investment & Management Co. — Class A		5,595		256,866
Camden Property Trust		2,981		249,629
American Campus Communities, Inc.		4,895		249,009
Mid-America Apartment Communities, Inc.		2,643		248,416
American Homes 4 Rent — Class A		9,891		214,041
Post Properties, Inc.		2,659		175,840
Education Realty Trust, Inc.		3,837		165,528
Colony Starwood Homes		5,388		154,636
Monogram Residential Trust, Inc.		12,233		130,159
Total REITs-Apartments				3,407,992
REITs-Health Care - 9.4%
Welltower, Inc.		6,522		487,649
Ventas, Inc.		6,728		475,199
HCP, Inc.		10,506		398,703
Omega Healthcare Investors, Inc.		7,013		248,611
Senior Housing Properties Trust		9,810		222,785
Healthcare Trust of America, Inc. — Class A		6,234		203,353
Healthcare Realty Trust, Inc.		5,511		187,705
Medical Properties Trust, Inc.		12,326		182,055
Physicians Realty Trust		7,662		165,039
National Health Investors, Inc.		2,079		163,160
Care Capital Properties, Inc.		5,083		144,866
LTC Properties, Inc.		2,576		133,926
Sabra Health Care REIT, Inc.		4,951		124,666
New Senior Investment Group, Inc.		8,048		92,874
Total REITs-Health Care				3,230,591
REITs-Shopping Centers - 7.7%
Kimco Realty Corp.		11,310		327,425
Federal Realty Investment Trust		1,985		305,551
Brixmor Property Group, Inc.		9,861		274,037
Regency Centers Corp.		3,416		264,706
DDR Corp.		13,461		234,625
Weingarten Realty Investors		5,384		209,868
Equity One, Inc.		6,499		198,934
Acadia Realty Trust		4,440		160,906
Urban Edge Properties		5,642		158,766
Retail Opportunity Investments Corp.		6,692		146,956
Kite Realty Group Trust		5,162		143,091
Seritage Growth Properties		2,410		122,139
Ramco-Gershenson Properties Trust		6,219		116,544
Total REITs-Shopping Centers				2,663,548

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
REAL ESTATE FUND

	Shares		Value
REITs-Mortgage - 6.7%
Annaly Capital Management, Inc.		29,134	$	305,907
AGNC Investment Corp.		12,245		239,267
Starwood Property Trust, Inc.		9,642		217,138
Chimera Investment Corp.		10,087		160,888
Two Harbors Investment Corp.		18,568		158,385
Blackstone Mortgage Trust, Inc. — Class A		5,345		157,410
MFA Financial, Inc.		20,753		155,232
Colony Capital, Inc. — Class A		7,438		135,595
Invesco Mortgage Capital, Inc.		7,918		120,591
Apollo Commercial Real Estate Finance, Inc.		6,512		106,601
CYS Investments, Inc.		12,203		106,410
Redwood Trust, Inc.		7,082		100,281
PennyMac Mortgage Investment Trust		6,241		97,235
Capstead Mortgage Corp.		9,227		87,011
ARMOUR Residential REIT, Inc.		3,783		85,269
iStar, Inc.*		7,683		82,439
Total REITs-Mortgage				2,315,659
REITs-Regional Malls - 6.6%
Simon Property Group, Inc.		3,603		745,856
General Growth Properties, Inc.		16,535		456,366
Macerich Co.		3,919		316,930
Taubman Centers, Inc.		2,638		196,294
Tanger Factory Outlet Centers, Inc.		4,616		179,839
Washington Prime Group, Inc.		11,661		144,363
CBL & Associates Properties, Inc.		10,833		131,513
Pennsylvania Real Estate Investment Trust		5,137		118,305
Total REITs-Regional Malls				2,289,466
REITs-Hotels - 6.7%
Host Hotels & Resorts, Inc.		20,176		314,139
MGM Growth Properties LLC — Class A		8,605		224,332
Hospitality Properties Trust		7,068		210,061
Apple Hospitality REIT, Inc.		10,288		190,431
Sunstone Hotel Investors, Inc.		12,320		157,573
LaSalle Hotel Properties		6,323		150,930
RLJ Lodging Trust		7,141		150,175
Ryman Hospitality Properties, Inc.		2,931		141,157
Pebblebrook Hotel Trust		4,816		128,106
DiamondRock Hospitality Co.		13,749		125,116
Xenia Hotels & Resorts, Inc.		7,816		118,647
Chesapeake Lodging Trust		4,714		107,951
Summit Hotel Properties, Inc.		7,485		98,503
FelCor Lodging Trust, Inc.		13,580		87,319
Hersha Hospitality Trust		4,413		79,522
Total REITs-Hotels				2,283,962
REITs-Storage - 4.8%
Public Storage		2,629		586,634
Iron Mountain, Inc.		7,967		299,002
Extra Space Storage, Inc.		3,717		295,167
CubeSmart		7,684		209,466
Life Storage, Inc.		2,118		188,375
National Storage Affiliates Trust		3,970		83,132
Total REITs-Storage				1,661,776
REITs-Warehouse/Industries - 4.3%
Prologis, Inc.		9,463		506,649
DCT Industrial Trust, Inc.		4,048		196,530
CyrusOne, Inc.		3,820		181,717
First Industrial Realty Trust, Inc.		6,116		172,594
EastGroup Properties, Inc.		2,019		148,518
QTS Realty Trust, Inc. — Class A		2,741		144,862
Rexford Industrial Realty, Inc.		5,223		119,554
Total REITs-Warehouse/Industries				1,470,424
REITs-Single Tenant - 3.0%
Realty Income Corp.		5,930		396,895
National Retail Properties, Inc.		5,151		261,928
Spirit Realty Capital, Inc.		17,959		239,393
Select Income REIT		5,453		146,686
Total REITs-Single Tenant				1,044,902
REITs-Manufactured Homes - 1.3%
Equity LifeStyle Properties, Inc.		3,092		238,641
Sun Communities, Inc.		2,855		224,060
Total REITs-Manufactured Homes				462,701
Total REITs				32,380,097
Real Estate - 4.5%
Real Estate Management/Services - 2.7%
CBRE Group, Inc. — Class A*		10,207		285,593
Jones Lang LaSalle, Inc.		1,843		209,715
Realogy Holdings Corp.		7,113		183,942
Kennedy-Wilson Holdings, Inc.		6,717		151,468
Four Corners Property Trust, Inc.		5,122		109,252
Total Real Estate Management/Services				939,970
Real Estate Operations/Development - 1.8%
Howard Hughes Corp.*		1,742		199,459
Brookfield Asset Management, Inc. — Class A		5,542		194,968
Alexander & Baldwin, Inc.		3,339		128,284
St. Joe Co.*		6,086		111,861
Total Real Estate Operations/Development				634,572
Total Real Estate				1,574,542
Entertainment - 0.7%
Casino Services - 0.7%
Gaming and Leisure Properties, Inc.		7,402		247,597
Diversified Financial Services - 0.5%
Investment Management/Advisory Services - 0.5%
Altisource Portfolio Solutions S.A.*		4,913		159,181
Total Common Stocks
(Cost $30,271,493)				34,361,417

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
REAL ESTATE FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,1 - 0.1%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	35,928	$	35,928
Total Repurchase Agreement
(Cost $35,928)				35,928
Total Investments - 99.7%
(Cost $30,307,421)			$	34,397,345
Other Assets & Liabilities, net - 0.3%				98,868
Total Net Assets - 100.0%			$	34,496,213

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	34,361,417	$	—	$	—	$	34,361,417
Repurchase Agreement		—		35,928		—		35,928
Total	$	34,361,417	$	35,928	$	—	$	34,397,345

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

For the period ended September 30, 2016, there were no transfers between levels.

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $30,271,493)	$	34,361,417
Repurchase agreements, at value (cost $35,928)		35,928
Total investments (cost $30,307,421)		34,397,345
Cash		1,307
Receivables:
Securities sold		1,714,920
Fund shares sold		76,624
Dividends		179,673
Total assets		36,369,869
Liabilities:
Payable for:
Fund shares redeemed		1,817,100
Management fees		27,794
Distribution and service fees		9,731
Transfer agent and administrative fees		8,175
Portfolio accounting fees		3,270
Miscellaneous		7,586
Total liabilities		1,873,656
Commitments and contingent liabilities (Note 9)		—
Net assets	$	34,496,213
Net assets consist of:
Paid in capital	$	40,700,512
Undistributed net investment income		771,747
Accumulated net realized loss on investments		(11,065,970	)
Net unrealized appreciation on investments		4,089,924
Net assets	$	34,496,213
A-Class:
Net assets	$	5,163,128
Capital shares outstanding		129,930
Net asset value per share	$	39.74
Maximum offering price per share (Net asset value divided by 95.25%)	$	41.71
C-Class:
Net assets	$	2,296,916
Capital shares outstanding		64,497
Net asset value per share	$	35.61
H-Class:
Net assets	$	27,036,169
Capital shares outstanding		682,229
Net asset value per share	$	39.63

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $1,149)	$	883,503
Interest		363
Total investment income		883,866
Expenses:
Management fees		261,334
Transfer agent and administrative fees		76,863
Distribution and service fees:
A-Class		11,775
C-Class		11,483
H-Class		62,217
Portfolio accounting fees		30,745
Trustees’ fees*		3,682
Custodian fees		3,639
Line of credit fees		55
Miscellaneous		46,604
Total expenses		508,397
Net investment income		375,469
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		7,401,986
Net realized gain		7,401,986
Net change in unrealized appreciation (depreciation) on:
Investments		(2,433,266	)
Net change in unrealized appreciation (depreciation)		(2,433,266	)
Net realized and unrealized gain		4,968,720
Net increase in net assets resulting from operations	$	5,344,189

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

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

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	375,469		$	476,009
Net realized gain (loss) on investments		7,401,986			(225,778	)
Net change in unrealized appreciation (depreciation) on investments		(2,433,266	)		(1,899,319	)
Net increase (decrease) in net assets resulting from operations		5,344,189			(1,649,088	)
Distributions to shareholders from:
Net investment income
A-Class		—			(72,600	)
C-Class		—			(24,943	)
H-Class		—			(335,675	)
Total distributions to shareholders		—			(433,218	)
Capital share transactions:
Proceeds from sale of shares
A-Class		8,364,671			37,206,021
C-Class		5,234,219			18,768,804
H-Class		269,524,719			281,436,754
Distributions reinvested
A-Class		—			66,044
C-Class		—			24,184
H-Class		—			335,273
Cost of shares redeemed
A-Class		(13,266,631	)		(34,288,463	)
C-Class		(5,028,462	)		(19,545,538	)
H-Class		(281,350,707	)		(283,137,988	)
Net increase (decrease) from capital share transactions		(16,522,191	)		865,091
Net decrease in net assets		(11,178,002	)		(1,217,215	)
Net assets:
Beginning of period		45,674,215			46,891,430
End of period	$	34,496,213		$	45,674,215
Undistributed net investment income at end of period	$	771,747		$	396,278
Capital share activity:
Shares sold
A-Class		213,645			1,043,014
C-Class		148,168			581,211
H-Class		6,954,264			7,922,736
Shares issued from reinvestment of distributions
A-Class		—			1,903
C-Class		—			772
H-Class		—			9,684
Shares redeemed
A-Class		(330,931	)		(962,786	)
C-Class		(141,690	)		(608,356	)
H-Class		(7,199,220	)		(7,988,853	)
Net decrease in shares		(355,764	)		(675	)

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	37.31		$	38.34		$	33.47		$	34.43		$	30.27		$	29.06
Income (loss) from investment operations:
Net investment income (loss)b		.27			.65			.42			.65			.58			.45
Net gain (loss) on investments (realized and unrealized)		2.16			(1.24	)		4.77			(.14	)		4.18			1.07
Total from investment operations		2.43			(.59	)		5.19			.51			4.76			1.52
Less distributions from:
Net investment income		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Total distributions		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Net asset value, end of period	$	39.74		$	37.31		$	38.34		$	33.47		$	34.43		$	30.27
Total Returnc		6.49	%		(1.46	%)		15.58	%		1.86	%		16.03	%		5.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,163		$	9,223		$	6,329		$	4,124		$	12,495		$	2,364
Ratios to average net assets:
Net investment income (loss)		1.36	%		1.82	%		1.13	%		1.92	%		1.82	%		1.59	%
Total expenses		1.62	%		1.62	%		1.60	%		1.65	%		1.61	%		1.61	%
Portfolio turnover rate		363	%		880	%		599	%		788	%		699	%		974	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	33.56		$	34.81		$	30.64		$	31.89		$	28.29		$	27.41
Income (loss) from investment operations:
Net investment income (loss)b		.21			.22			.23			.29			.27			.22
Net gain (loss) on investments (realized and unrealized)		1.84			(1.03	)		4.26			(.07	)		3.93			.97
Total from investment operations		2.05			(.81	)		4.49			.22			4.20			1.19
Less distributions from:
Net investment income		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Total distributions		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Net asset value, end of period	$	35.61		$	33.56		$	34.81		$	30.64		$	31.89		$	28.29
Total Returnc		6.11	%		(2.25	%)		14.73	%		1.09	%		15.12	%		4.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,297		$	1,947		$	2,937		$	2,497		$	2,910		$	1,798
Ratios to average net assets:
Net investment income (loss)		1.16	%		0.69	%		0.70	%		0.93	%		0.92	%		0.83	%
Total expenses		2.37	%		2.36	%		2.35	%		2.38	%		2.35	%		2.36	%
Portfolio turnover rate		363	%		880	%		599	%		788	%		699	%		974	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	37.21		$	38.25		$	33.40		$	34.38		$	30.23		$	29.02
Income (loss) from investment operations:
Net investment income (loss)b		.23			.71			.48			.52			.46			.42
Net gain (loss) on investments (realized and unrealized)		2.19			(1.31	)		4.69			(.03	)		4.29			1.10
Total from investment operations		2.42			(.60	)		5.17			.49			4.75			1.52
Less distributions from:
Net investment income		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Total distributions		—			(.44	)		(.32	)		(1.47	)		(.60	)		(.31	)
Net asset value, end of period	$	39.63		$	37.21		$	38.25		$	33.40		$	34.38		$	30.23
Total Returnc		6.50	%		(1.49	%)		15.55	%		1.84	%		15.95	%		5.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,036		$	34,504		$	37,625		$	19,753		$	10,273		$	13,511
Ratios to average net assets:
Net investment income (loss)		1.19	%		1.97	%		1.32	%		1.52	%		1.45	%		1.48	%
Total expenses		1.62	%		1.62	%		1.60	%		1.64	%		1.60	%		1.61	%
Portfolio turnover rate		363	%		880	%		599	%		788	%		699	%		974	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

RETAILING FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 1, 1998
A-Class	September 1, 2004
C-Class	May 9, 2001
H-Class*	April 21, 1998

Ten Largest Holdings (% of Total Net Assets)
Amazon.com, Inc.	7.1%
Wal-Mart Stores, Inc.	5.1%
Home Depot, Inc.	4.3%
CVS Health Corp.	3.3%
Walgreens Boots Alliance, Inc.	3.2%
Priceline Group, Inc.	2.9%
Costco Wholesale Corp.	2.8%
Lowe’s Companies, Inc.	2.7%
TJX Companies, Inc.	2.4%
Netflix, Inc.	2.2%
Top Ten Total	36.0%
“Ten Largest Holdings” excludes any temporary cash investments.

^* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 107

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 98.9%
Retail - 73.7%
Wal-Mart Stores, Inc.		7,684	$	554,169
Home Depot, Inc.		3,663		471,355
CVS Health Corp.		4,031		358,719
Walgreens Boots Alliance, Inc.		4,286		345,537
Costco Wholesale Corp.		1,987		303,037
Lowe’s Companies, Inc.		4,121		297,577
TJX Companies, Inc.		3,482		260,384
Target Corp.		3,378		232,001
O’Reilly Automotive, Inc.*		693		194,117
Ross Stores, Inc.		2,965		190,650
AutoZone, Inc.*		226		173,645
L Brands, Inc.		2,347		166,097
Dollar General Corp.		2,305		161,327
Dollar Tree, Inc.*		1,986		156,755
Genuine Parts Co.		1,463		146,958
Ulta Salon Cosmetics & Fragrance, Inc.*		605		143,978
Best Buy Company, Inc.		3,425		130,767
Macy’s, Inc.		3,470		128,563
Advance Auto Parts, Inc.		836		124,664
Liberty Interactive Corporation QVC Group — Class A*		5,903		118,119
CarMax, Inc.*		2,160		115,237
Foot Locker, Inc.		1,677		113,566
Nordstrom, Inc.		2,145		111,283
Tiffany & Co.		1,525		110,760
Tractor Supply Co.		1,642		110,589
The Gap, Inc.		4,811		106,997
Kohl’s Corp.		2,413		105,569
Rite Aid Corp.*		13,442		103,369
Bed Bath & Beyond, Inc.		2,233		96,265
Dick’s Sporting Goods, Inc.		1,607		91,149
Burlington Stores, Inc.*		1,087		88,069
Staples, Inc.		10,238		87,534
Signet Jewelers Ltd.		1,152		85,859
Michaels Companies, Inc.*		3,440		83,145
AutoNation, Inc.*		1,694		82,515
Williams-Sonoma, Inc.		1,572		80,298
Cabela’s, Inc.*		1,395		76,627
Penske Automotive Group, Inc.		1,540		74,197
Urban Outfitters, Inc.*		2,099		72,457
CST Brands, Inc.		1,483		71,317
Sally Beauty Holdings, Inc.*		2,762		70,928
American Eagle Outfitters, Inc.		3,660		65,368
GameStop Corp. — Class A		2,288		63,126
PriceSmart, Inc.		717		60,056
Lithia Motors, Inc. — Class A		620		59,222
J.C. Penney Company, Inc.*		6,399		58,999
Dillard’s, Inc. — Class A		919		57,906
Five Below, Inc.*		1,350		54,392
Big Lots, Inc.		1,128		53,862
HSN, Inc.		1,327		52,815
Office Depot, Inc.		14,650		52,301
Chico’s FAS, Inc.		3,860		45,934
DSW, Inc. — Class A		2,200		45,056
Group 1 Automotive, Inc.		697		44,524
Children’s Place, Inc.		551		44,008
Restoration Hardware Holdings, Inc.*		1,267		43,813
GNC Holdings, Inc. — Class A		2,101		42,903
Asbury Automotive Group, Inc.*		740		41,196
Genesco, Inc.*		747		40,682
Guess?, Inc.		2,757		40,280
Sears Holdings Corp.*		3,496		40,064
Buckle, Inc.		1,646		39,553
Caleres, Inc.		1,530		38,694
Abercrombie & Fitch Co. — Class A		2,306		36,642
Finish Line, Inc. — Class A		1,586		36,605
Express, Inc.*		3,000		35,370
Hibbett Sports, Inc.*		870		34,713
Barnes & Noble, Inc.		3,048		34,442
Ascena Retail Group, Inc.*		5,876		32,847
Tailored Brands, Inc.		2,009		31,541
Lumber Liquidators Holdings, Inc.*		1,530		30,095
Vitamin Shoppe, Inc.*		1,111		29,830
Francesca’s Holdings Corp.*		1,830		28,237
Pier 1 Imports, Inc.		5,387		22,841
Total Retail				8,034,066
Internet - 20.5%
Amazon.com, Inc.*		922		771,999
Priceline Group, Inc.*		217		319,313
Netflix, Inc.*		2,480		244,404
JD.com, Inc. ADR*		6,320		164,889
Expedia, Inc.		1,355		158,156
Ctrip.com International Ltd. ADR*		3,160		147,161
TripAdvisor, Inc.*		1,804		113,977
Vipshop Holdings Ltd. ADR*		6,328		92,832
Wayfair, Inc. — Class A*		1,700		66,929
Groupon, Inc. — Class A*		12,240		63,036
Etsy, Inc.*		3,400		48,552
Shutterfly, Inc.*		951		42,453
Total Internet				2,233,701
Distribution & Wholesale - 2.2%
LKQ Corp.*		3,452		122,408
Pool Corp.		786		74,293
Core-Mark Holding Company, Inc.		1,333		47,721
Total Distribution & Wholesale				244,422
Commercial Services - 1.2%
Monro Muffler Brake, Inc.		870		53,218
Aaron’s, Inc.		2,001		50,866
Rent-A-Center, Inc.		2,399		30,323
Total Commercial Services				134,407
Oil & Gas - 0.6%
Murphy USA, Inc.*		861		61,441
Leisure Time - 0.4%
Liberty TripAdvisor Holdings, Inc. — Class A*		2,197		48,004

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
RETAILING FUND

	Shares		Value
Home Furnishings - 0.3%
Select Comfort Corp.*		1,602	$	34,603
Total Common Stocks
(Cost $7,407,002)				10,790,644

	Face Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	51,294		51,294
Total Repurchase Agreement
(Cost $51,294)				51,294
Total Investments - 99.4%
(Cost $7,458,296)			$	10,841,938
Other Assets & Liabilities, net - 0.6%				64,005
Total Net Assets - 100.0%			$	10,905,943

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	10,790,644	$	—	$	—	$	10,790,644
Repurchase Agreement		—		51,294		—		51,294
Total	$	10,790,644	$	51,294	$	—	$	10,841,938

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

For the period ended September 30, 2016, there were no transfers between levels.

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $7,407,002)	$	10,790,644
Repurchase agreements, at value (cost $51,294)		51,294
Total investments (cost $7,458,296)		10,841,938
Receivables:
Fund shares sold		320,998
Dividends		7,107
Total assets		11,170,043
Liabilities:
Overdraft due to custodian bank		7,012
Payable for:
Securities purchased		234,898
Management fees		11,761
Transfer agent and administrative fees		3,459
Distribution and service fees		2,181
Portfolio accounting fees		1,384
Miscellaneous		3,405
Total liabilities		264,100
Commitments and contingent liabilities (Note 9)		—
Net assets	$	10,905,943
Net assets consist of:
Paid in capital	$	10,853,629
Accumulated net investment loss		(19,724	)
Accumulated net realized loss on investments		(3,311,604	)
Net unrealized appreciation on investments		3,383,642
Net assets	$	10,905,943
Investor Class:
Net assets	$	6,801,811
Capital shares outstanding		257,939
Net asset value per share	$	26.37
A-Class:
Net assets	$	1,380,612
Capital shares outstanding		55,040
Net asset value per share	$	25.08
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.33
C-Class:
Net assets	$	2,161,066
Capital shares outstanding		95,670
Net asset value per share	$	22.59
H-Class:
Net assets	$	562,454
Capital shares outstanding		22,980
Net asset value per share	$	24.48

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $1,271)	$	113,586
Interest		97
Total investment income		113,683
Expenses:
Management fees		72,617
Transfer agent and administrative fees		21,358
Distribution and service fees:
A-Class		2,323
C-Class		11,514
H-Class		2,671
Portfolio accounting fees		8,543
Custodian fees		1,004
Trustees’ fees*		679
Line of credit fees		142
Miscellaneous		12,556
Total expenses		133,407
Net investment loss		(19,724	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,489,348
Net realized gain		4,489,348
Net change in unrealized appreciation (depreciation) on:
Investments		(4,990,539	)
Net change in unrealized appreciation (depreciation)		(4,990,539	)
Net realized and unrealized loss		(501,191	)
Net decrease in net assets resulting from operations	$	(520,915	)

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

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

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(19,724	)	$	(136,470	)
Net realized gain (loss) on investments		4,489,348			(1,114,146	)
Net change in unrealized appreciation (depreciation) on investments		(4,990,539	)		(4,279,916	)
Net decrease in net assets resulting from operations		(520,915	)		(5,530,532	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(14,287	)
A-Class		—			(4,835	)
C-Class		—			(3,881	)
H-Class		—			(9,230	)*
Total distributions to shareholders		—			(32,233	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		49,765,174			58,531,964
A-Class		537,412			26,869,075
C-Class		869,284			21,109,377
H-Class		39,783,156			75,174,384	*
Distributions reinvested
Investor Class		—			14,238
A-Class		—			4,654
C-Class		—			2,509
H-Class		—			9,207	*
Cost of shares redeemed
Investor Class		(52,994,896	)		(91,432,944	)
A-Class		(5,261,304	)		(39,196,534	)
C-Class		(1,168,445	)		(21,796,959	)
H-Class		(42,620,498	)		(79,319,706	)*
Net decrease from capital share transactions		(11,090,117	)		(50,030,735	)
Net decrease in net assets		(11,611,032	)		(55,593,500	)
Net assets:
Beginning of period		22,516,975			78,110,475
End of period	$	10,905,943		$	22,516,975
Accumulated net investment loss at end of period	$	(19,724	)	$	—
Capital share activity:
Shares sold
Investor Class		1,886,827			2,149,723
A-Class		21,408			1,066,330
C-Class		38,773			896,154
H-Class		1,691,155			2,910,370	*
Shares issued from reinvestment of distributions
Investor Class		—			555
A-Class		—			190
C-Class		—			113
H-Class		—			386	*
Shares redeemed
Investor Class		(2,009,372	)		(3,415,362	)
A-Class		(212,090	)		(1,547,153	)
C-Class		(52,094	)		(928,517	)
H-Class		(1,804,078	)		(3,113,107	)*
Net decrease in shares		(439,471	)		(1,980,318	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	26.98		$	28.13		$	23.54		$	19.62		$	17.45		$	14.66
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.03	)		.11			—	c		.09			.01
Net gain (loss) on investments (realized and unrealized)		(.60	)		(1.10	)		4.48			3.92			2.08			2.79
Total from investment operations		(.61	)		(1.13	)		4.59			3.92			2.17			2.80
Less distributions from:
Net investment income		—			(.02	)		—			—			—			(.01	)
Total distributions		—			(.02	)		—			—			—			(.01	)
Net asset value, end of period	$	26.37		$	26.98		$	28.13		$	23.54		$	19.62		$	17.45
Total Returnd		(2.26	%)		(4.01	%)		19.50	%		19.98	%		12.44	%		19.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,802		$	10,265		$	46,283		$	65,195		$	14,671		$	34,802
Ratios to average net assets:
Net investment income (loss)		(0.04	%)		(0.10	%)		0.42	%		0.01	%		0.51	%		0.04	%
Total expenses		1.37	%		1.34	%		1.33	%		1.37	%		1.35	%		1.34	%
Portfolio turnover rate		517	%		238	%		395	%		671	%		472	%		822	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	25.69		$	26.85		$	22.48		$	18.79		$	16.77		$	14.14
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.09	)		.06			(.09	)		.03			(.03	)
Net gain (loss) on investments (realized and unrealized)		(.56	)		(1.05	)		4.31			3.78			1.99			2.67
Total from investment operations		(.61	)		(1.14	)		4.37			3.69			2.02			2.64
Less distributions from:
Net investment income		—			(.02	)		—			—			—			(.01	)
Total distributions		—			(.02	)		—			—			—			(.01	)
Net asset value, end of period	$	25.08		$	25.69		$	26.85		$	22.48		$	18.79		$	16.77
Total Returnd		(2.37	%)		(4.24	%)		19.44	%		19.64	%		12.05	%		18.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,381		$	6,313		$	19,502		$	2,049		$	1,500		$	5,697
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.36	%)		0.25	%		(0.42	%)		0.20	%		(0.18	%)
Total expenses		1.62	%		1.60	%		1.58	%		1.62	%		1.59	%		1.58	%
Portfolio turnover rate		517	%		238	%		395	%		671	%		472	%		822	%

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

RETAILING FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.23		$	24.46		$	20.64		$	17.40		$	15.62		$	13.27
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.24	)		(.19	)		(.23	)		(.06	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(.52	)		(.97	)		4.01			3.47			1.84			2.49
Total from investment operations		(.64	)		(1.21	)		3.82			3.24			1.78			2.36
Less distributions from:
Net investment income		—			(.02	)		—			—			—			(.01	)
Total distributions		—			(.02	)		—			—			—			(.01	)
Net asset value, end of period	$	22.59		$	23.23		$	24.46		$	20.64		$	17.40		$	15.62
Total Returnd		(2.76	%)		(4.94	%)		18.51	%		18.62	%		11.40	%		17.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,161		$	2,532		$	3,455		$	2,503		$	1,831		$	2,603
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(1.04	%)		(0.88	%)		(1.16	%)		(0.39	%)		(0.96	%)
Total expenses		2.36	%		2.35	%		2.34	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		517	%		238	%		395	%		671	%		472	%		822	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	25.07		$	26.22		$	22.00		$	18.45		$	16.45		$	13.91
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.11	)		.01			(.14	)		(.01	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		(.57	)		(1.02	)		4.21			3.69			2.01			2.64
Total from investment operations		(.59	)		(1.13	)		4.22			3.55			2.00			2.55
Less distributions from:
Net investment income		—			(.02	)		—			—			—			(.01	)
Total distributions		—			(.02	)		—			—			—			(.01	)
Net asset value, end of period	$	24.48		$	25.07		$	26.22		$	22.00		$	18.45		$	16.45
Total Returnd		(2.39	%)		(4.31	%)		19.18	%		19.24	%		12.16	%		18.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	562		$	3,407		$	8,871		$	5,391		$	2,454		$	3,979
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		(0.44	%)		0.05	%		(0.64	%)		(0.05	%)		(0.66	%)
Total expenses		1.61	%		1.71	%		1.83	%		1.87	%		1.85	%		1.84	%
Portfolio turnover rate		517	%		238	%		395	%		671	%		472	%		822	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

TECHNOLOGY FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware and peripherals companies (“Technology Companies”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.4%
Alphabet, Inc. — Class A	3.2%
Microsoft Corp.	3.0%
Facebook, Inc. — Class A	2.7%
Visa, Inc. — Class A	2.0%
Intel Corp.	1.9%
Cisco Systems, Inc.	1.8%
Oracle Corp.	1.7%
International Business Machines Corp.	1.7%
Alibaba Group Holding Ltd. ADR	1.6%
Top Ten Total	23.0%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

114 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 100.3%
Software - 23.4%
Microsoft Corp.		25,615	$	1,475,425
Oracle Corp.		22,048		866,046
Adobe Systems, Inc.*		4,908		532,714
salesforce.com, Inc.*		6,692		477,340
Activision Blizzard, Inc.		8,949		396,441
VMware, Inc. — Class A*		5,288		387,875
Intuit, Inc.		3,436		377,994
Electronic Arts, Inc.*		4,141		353,641
Fidelity National Information Services, Inc.		4,533		349,177
Fiserv, Inc.*		3,326		330,837
NetEase, Inc. ADR		1,320		317,830
Paychex, Inc.		5,424		313,887
Workday, Inc. — Class A*		3,370		308,995
Check Point Software Technologies Ltd.*		3,790		294,142
Autodesk, Inc.*		3,967		286,933
Red Hat, Inc.*		3,527		285,087
Citrix Systems, Inc.*		3,081		262,563
CA, Inc.		7,883		260,770
SAP SE ADR		2,818		257,593
ServiceNow, Inc.*		3,230		255,655
First Data Corp. — Class A*		18,005		236,945
Akamai Technologies, Inc.*		4,045		214,345
NetSuite, Inc.*		1,880		208,097
CDK Global, Inc.		3,584		205,579
Broadridge Financial Solutions, Inc.		2,970		201,336
ANSYS, Inc.*		2,110		195,407
Twilio, Inc. — Class A*		2,840		182,782
Jack Henry & Associates, Inc.		2,090		178,800
SS&C Technologies Holdings, Inc.		5,520		177,468
Tyler Technologies, Inc.*		1,010		172,942
Ultimate Software Group, Inc.*		814		166,373
PTC, Inc.*		3,653		161,864
Tableau Software, Inc. — Class A*		2,560		141,491
Aspen Technology, Inc.*		3,000		140,370
Nuance Communications, Inc.*		9,680		140,360
Take-Two Interactive Software, Inc.*		3,110		140,199
Rackspace Hosting, Inc.*		4,403		139,531
j2 Global, Inc.		1,830		121,896
Proofpoint, Inc.*		1,620		121,257
Total Software				11,637,987
Internet - 18.3%
Alphabet, Inc. — Class A*		2,001		1,608,924
Facebook, Inc. — Class A*		10,423		1,336,959
Alibaba Group Holding Ltd. ADR*		7,370		779,672
Yahoo!, Inc.*		10,202		439,706
Baidu, Inc. ADR*		2,386		434,419
eBay, Inc.*		13,054		429,477
LinkedIn Corp. — Class A*		1,835		350,706
Twitter, Inc.*		13,662		314,909
Symantec Corp.		11,021		276,627
58.com, Inc. ADR*		5,730		273,092
MercadoLibre, Inc.		1,423		263,212
SINA Corp.*		3,337		246,371
Weibo Corp. ADR*		4,889		245,119
YY, Inc. ADR*		4,500		239,760
F5 Networks, Inc.*		1,638		204,160
VeriSign, Inc.*		2,563		200,529
Splunk, Inc.*		3,390		198,925
CDW Corp.		4,198		191,975
Zillow Group, Inc. — Class C*		5,080		176,022
IAC/InterActiveCorp		2,550		159,299
GrubHub, Inc.*		3,260		140,147
Yelp, Inc. — Class A*		3,202		133,523
Pandora Media, Inc.*		9,219		132,108
FireEye, Inc.*		7,660		112,832
WebMD Health Corp. — Class A*		1,880		93,436
Stamps.com, Inc.*		970		91,675
Total Internet				9,073,584
Semiconductors - 18.2%
Intel Corp.		24,909		940,316
QUALCOMM, Inc.		10,670		730,894
Texas Instruments, Inc.		8,350		586,003
Broadcom Ltd.		2,766		477,190
NXP Semiconductor N.V.*		4,307		439,357
NVIDIA Corp.		6,395		438,185
Applied Materials, Inc.		13,223		398,674
Taiwan Semiconductor Manufacturing Company Ltd. ADR		11,767		359,953
Analog Devices, Inc.		4,850		312,583
Micron Technology, Inc.*		16,819		299,042
Marvell Technology Group Ltd.		22,312		296,080
Lam Research Corp.		2,964		280,720
Skyworks Solutions, Inc.		3,503		266,718
Linear Technology Corp.		4,446		263,603
Xilinx, Inc.		4,785		260,017
Microchip Technology, Inc.		4,153		258,067
ASML Holding N.V. — Class G		2,338		256,198
Maxim Integrated Products, Inc.		5,941		237,224
KLA-Tencor Corp.		3,348		233,389
Qorvo, Inc.*		3,397		189,349
Advanced Micro Devices, Inc.*		27,090		187,192
ON Semiconductor Corp.*		13,609		167,663
Microsemi Corp.*		3,631		152,429
Teradyne, Inc.		6,818		147,132
IPG Photonics Corp.*		1,760		144,936
Cypress Semiconductor Corp.		11,282		137,189
Integrated Device Technology, Inc.*		5,567		128,598
Cavium, Inc.*		2,200		128,040
Cirrus Logic, Inc.*		2,327		123,680
Ambarella, Inc.*		1,510		111,151
Synaptics, Inc.*		1,682		98,532
Total Semiconductors				9,050,104
Computers - 16.9%
Apple, Inc.		15,032		1,699,367
International Business Machines Corp.		5,438		863,826
Accenture plc — Class A		3,787		462,658
Hewlett Packard Enterprise Co.		18,945		430,999
HP, Inc.		23,905		371,245

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
TECHNOLOGY FUND

	Shares		Value
Cognizant Technology Solutions Corp. — Class A*		7,376	$	351,909
Western Digital Corp.		5,074		296,677
Infosys Ltd. ADR		16,850		265,893
BlackBerry Ltd.*		32,003		255,384
Seagate Technology plc		6,313		243,366
FleetMatics Group plc*		4,030		241,719
Dell Technologies Incorporated - VMware Inc — Class V*		4,695		224,416
NetApp, Inc.		6,216		222,657
Synopsys, Inc.*		3,620		214,847
Amdocs Ltd.		3,570		206,525
Cadence Design Systems, Inc.*		7,518		191,935
Computer Sciences Corp.		3,676		191,924
Leidos Holdings, Inc.		4,140		179,179
Fortinet, Inc.*		4,838		178,667
CSRA, Inc.		5,570		149,833
Teradata Corp.*		4,575		141,825
NCR Corp.*		4,320		139,061
Manhattan Associates, Inc.*		2,400		138,288
DST Systems, Inc.		1,140		134,429
Brocade Communications Systems, Inc.		14,498		133,817
MAXIMUS, Inc.		2,340		132,350
EPAM Systems, Inc.*		1,890		130,996
3D Systems Corp.*		5,807		104,236
VeriFone Systems, Inc.*		5,150		81,061
Total Computers				8,379,089
Commercial Services - 5.9%
PayPal Holdings, Inc.*		11,919		488,321
Automatic Data Processing, Inc.		4,999		440,913
FleetCor Technologies, Inc.*		1,650		286,655
Global Payments, Inc.		3,221		247,244
Vantiv, Inc. — Class A*		4,130		232,395
Western Union Co.		10,794		224,731
Total System Services, Inc.		4,283		201,943
Sabre Corp.		7,007		197,457
Gartner, Inc.*		2,080		183,976
Booz Allen Hamilton Holding Corp.		4,869		153,909
WEX, Inc.*		1,390		150,245
Square, Inc. — Class A*		11,980		139,687
Total Commercial Services				2,947,476
Telecommunications - 5.3%
Cisco Systems, Inc.		27,792		881,562
Palo Alto Networks, Inc.*		1,720		274,048
Motorola Solutions, Inc.		3,337		254,546
Nokia Oyj ADR		42,807		247,853
Juniper Networks, Inc.		8,953		215,409
Arista Networks, Inc.*		1,980		168,458
CommScope Holding Company, Inc.*		5,528		166,448
ARRIS International plc*		5,655		160,206
Acacia Communications, Inc.*		1,280		132,198
Ciena Corp.*		5,645		123,061
Total Telecommunications				2,623,789
Electronics - 4.8%
Corning, Inc.		14,899		352,361
Amphenol Corp. — Class A		4,871		316,225
TE Connectivity Ltd.		4,781		307,801
Flextronics International Ltd.*		14,257		194,180
Trimble, Inc.*		6,734		192,324
Arrow Electronics, Inc.*		2,656		169,904
Keysight Technologies, Inc.*		5,218		165,358
Avnet, Inc.		3,934		161,530
FLIR Systems, Inc.		4,610		144,846
Jabil Circuit, Inc.		6,352		138,601
Tech Data Corp.*		1,553		131,555
Fitbit, Inc. — Class A*		8,090		120,056
Total Electronics				2,394,741
Diversified Financial Services - 4.3%
Visa, Inc. — Class A		12,051		996,618
Mastercard, Inc. — Class A		7,516		764,903
Alliance Data Systems Corp.*		1,139		244,350
Ellie Mae, Inc.*		1,280		134,784
Total Diversified Financial Services				2,140,655
Auto Parts & Equipment - 0.6%
Mobileye N.V.*		6,576		279,940
Aerospace & Defense - 0.5%
Harris Corp.		2,550		233,606
Electrical Components & Equipment - 0.5%
Belden, Inc.		1,761		121,491
Universal Display Corp.*		1,950		108,245
Total Electrical Components & Equipment				229,736
Office & Business Equipment - 0.5%
Xerox Corp.		22,331		226,213
Distribution & Wholesale - 0.3%
Ingram Micro, Inc. — Class A		4,562		162,681
Energy-Alternate Sources - 0.3%
First Solar, Inc.*		3,834		151,405
Machinery-Diversified - 0.3%
Zebra Technologies Corp. — Class A*		1,940		135,043
Building Materials - 0.2%
Cree, Inc.*		4,485		115,354
Total Common Stocks
(Cost $42,032,092)				49,781,403

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
TECHNOLOGY FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,1 - 0.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	216,866		216,866
Total Repurchase Agreement
(Cost $216,866)				216,866
Total Investments - 100.7%
(Cost $42,248,958)			$	49,998,269
Other Assets & Liabilities, net - (0.7)%				(327,761	)
Total Net Assets - 100.0%			$	49,670,508

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	49,781,403	$	—	$	—	$	49,781,403
Repurchase Agreement		—		216,866		—		216,866
Total	$	49,781,403	$	216,866	$	—	$	49,998,269

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

For the period ended September 30, 2016, there were no transfers between levels.

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $42,032,092)	$	49,781,403
Repurchase agreements, at value (cost $216,866)		216,866
Total investments (cost $42,248,958)		49,998,269
Cash		7,988
Receivables:
Fund shares sold		1,154,066
Dividends		22,887
Foreign taxes reclaim		1,105
Interest		2
Total assets		51,184,317
Liabilities:
Payable for:
Fund shares redeemed		1,450,264
Management fees		34,232
Transfer agent and administrative fees		10,068
Portfolio accounting fees		4,027
Distribution and service fees		3,709
Miscellaneous		11,509
Total liabilities		1,513,809
Commitments and contingent liabilities (Note 9)		—
Net assets	$	49,670,508
Net assets consist of:
Paid in capital	$	44,290,571
Accumulated net investment loss		(28,722	)
Accumulated net realized loss on investments		(2,340,652	)
Net unrealized appreciation on investments		7,749,311
Net assets	$	49,670,508
Investor Class:
Net assets	$	37,181,101
Capital shares outstanding		545,172
Net asset value per share	$	68.20
A-Class:
Net assets	$	5,203,599
Capital shares outstanding		81,278
Net asset value per share	$	64.02
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.21
C-Class:
Net assets	$	2,208,825
Capital shares outstanding		37,619
Net asset value per share	$	58.72
H-Class:
Net assets	$	5,076,983
Capital shares outstanding		80,992
Net asset value per share	$	62.69

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2016
Investment Income:
Dividends (net of foreign withholding tax of $3,086)	$	244,938
Interest		206
Total investment income		245,144
Expenses:
Management fees		140,071
Transfer agent and administrative fees		41,197
Distribution and service fees:
A-Class		4,033
C-Class		9,162
H-Class		3,582
Portfolio accounting fees		16,479
Custodian fees		1,947
Trustees’ fees*		1,046
Line of credit fees		135
Miscellaneous		24,686
Total expenses		242,338
Net investment income		2,806
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,060,140
Net realized gain		5,060,140
Net change in unrealized appreciation (depreciation) on:
Investments		(1,122,913	)
Net change in unrealized appreciation (depreciation)		(1,122,913	)
Net realized and unrealized gain		3,937,227
Net increase in net assets resulting from operations	$	3,940,033

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

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

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	2,806		$	(90,295	)
Net realized gain on investments		5,060,140			123,656
Net change in unrealized appreciation (depreciation) on investments		(1,122,913	)		(4,049,840	)
Net increase (decrease) in net assets resulting from operations		3,940,033			(4,016,479	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		52,612,985			99,486,819
A-Class		3,563,375			20,272,499
C-Class		2,254,285			17,598,381
H-Class		23,346,790			60,138,342	*
Cost of shares redeemed
Investor Class		(40,805,745	)		(94,488,616	)
A-Class		(6,899,227	)		(21,811,056	)
C-Class		(2,470,469	)		(18,142,641	)
H-Class		(20,428,191	)		(60,639,611	)*
Net increase from capital share transactions		11,173,803			2,414,117
Net increase (decrease) in net assets		15,113,836			(1,602,362	)
Net assets:
Beginning of period		34,556,672			36,159,034
End of period	$	49,670,508		$	34,556,672
Accumulated net investment loss at end of period	$	(28,722	)	$	(31,528	)
Capital share activity:
Shares sold
Investor Class		832,341			1,642,615
A-Class		57,770			358,240
C-Class		41,305			332,333
H-Class		417,915			1,063,419	*
Shares redeemed
Investor Class		(653,390	)		(1,610,504	)
A-Class		(122,878	)		(384,505	)
C-Class		(46,337	)		(344,075	)
H-Class		(369,751	)		(1,080,659	)*
Net increase (decrease) in shares		156,975			(23,136	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	60.53		$	61.23		$	55.90		$	43.58		$	42.92		$	41.81
Income (loss) from investment operations:
Net investment income (loss)b		.04			(.06	)		(.10	)		(.09	)		.03			(.03	)
Net gain (loss) on investments (realized and unrealized)		7.63			(.64	)		5.43			12.41			.63			1.14
Total from investment operations		7.67			(.70	)		5.33			12.32			.66			1.11
Net asset value, end of period	$	68.20		$	60.53		$	61.23		$	55.90		$	43.58		$	42.92
Total Returnc		12.67	%		(1.14	%)		9.53	%		28.24	%		1.54	%		2.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,181		$	22,167		$	20,458		$	32,858		$	8,325		$	19,985
Ratios to average net assets:
Net investment income (loss)		0.13	%		(0.10	%)		(0.17	%)		(0.18	%)		0.10	%		(0.10	%)
Total expenses		1.37	%		1.35	%		1.35	%		1.37	%		1.35	%		1.36	%
Portfolio turnover rate		166	%		388	%		280	%		321	%		324	%		487	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	56.88		$	57.69		$	52.79		$	41.30		$	40.76		$	39.83
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.14	)		(.21	)		(.23	)		(.09	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		7.20			(.67	)		5.11			11.72			.63			1.23
Total from investment operations		7.14			(.81	)		4.90			11.49			.54			.93
Net asset value, end of period	$	64.02		$	56.88		$	57.69		$	52.79		$	41.30		$	40.76
Total Returnc		12.55	%		(1.40	%)		9.28	%		27.79	%		1.32	%		2.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,204		$	8,327		$	9,960		$	5,873		$	1,998		$	7,367
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.25	%)		(0.39	%)		(0.47	%)		(0.27	%)		(0.76	%)
Total expenses		1.62	%		1.60	%		1.59	%		1.62	%		1.59	%		1.59	%
Portfolio turnover rate		166	%		388	%		280	%		321	%		324	%		487	%

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	52.37		$	53.50		$	49.30		$	38.84		$	38.65		$	38.07
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.59	)		(.58	)		(.50	)		(.33	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		6.60			(.54	)		4.78			10.96			.52			1.09
Total from investment operations		6.35			(1.13	)		4.20			10.46			.19			.58
Net asset value, end of period	$	58.72		$	52.37		$	53.50		$	49.30		$	38.84		$	38.65
Total Returnc		12.11	%		(2.11	%)		8.52	%		26.90	%		0.54	%		1.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,209		$	2,234		$	2,910		$	2,827		$	1,715		$	2,743
Ratios to average net assets:
Net investment income (loss)		(0.91	%)		(1.12	%)		(1.13	%)		(1.13	%)		(0.90	%)		(1.45	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		166	%		388	%		280	%		321	%		324	%		487	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e			Year Ended March 31, 2012d,e
Per Share Data
Net asset value, beginning of period	$	55.72		$	56.54		$	51.87		$	40.65		$	40.22		$	39.39
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.23	)		(.37	)		(.27	)		(.12	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		7.02			(.59	)		5.04			11.49			.55			1.16
Total from investment operations		6.97			(.82	)		4.67			11.22			.43			.83
Net asset value, end of period	$	62.69		$	55.72		$	56.54		$	51.87		$	40.65		$	40.22
Total Returnc		12.49	%		(1.45	%)		9.00	%		27.60	%		1.04	%		2.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,077		$	1,829		$	2,831		$	6,915		$	1,286		$	2,361
Ratios to average net assets:
Net investment income (loss)		(0.16	%)		(0.42	%)		(0.69	%)		(0.54	%)		(0.33	%)		(0.87	%)
Total expenses		1.61	%		1.68	%		1.85	%		1.87	%		1.85	%		1.85	%
Portfolio turnover rate		166	%		388	%		280	%		321	%		324	%		487	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.
e	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

TELECOMMUNICATIONS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
AT&T, Inc.	8.9%
Verizon Communications, Inc.	8.1%
Cisco Systems, Inc.	7.1%
QUALCOMM, Inc.	5.9%
T-Mobile US, Inc.	3.4%
Crown Castle International Corp.	3.2%
Sprint Corp.	2.8%
Level 3 Communications, Inc.	2.2%
Palo Alto Networks, Inc.	2.2%
CenturyLink, Inc.	2.2%
Top Ten Total	46.0%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

122 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 98.1%
Telecommunications – 77.8%
AT&T, Inc.		37,630	$	1,528,155
Verizon Communications, Inc.		27,021		1,404,552
Cisco Systems, Inc.		38,719		1,228,167
T-Mobile US, Inc.*		12,726		594,559
Sprint Corp.*		73,256		485,687
Level 3 Communications, Inc.*		8,300		384,954
Palo Alto Networks, Inc.*		2,411		384,145
CenturyLink, Inc.		13,934		382,210
Motorola Solutions, Inc.		4,538		346,159
Juniper Networks, Inc.		12,489		300,486
Vodafone Group plc ADR		9,744		284,038
Zayo Group Holdings, Inc.*		8,838		262,577
Arista Networks, Inc.*		2,766		235,331
America Movil SAB de CV — Class L ADR		20,319		232,449
CommScope Holding Company, Inc.*		7,708		232,088
ARRIS International plc*		7,887		223,439
Nokia Oyj ADR		37,185		215,301
Frontier Communications Corp.		50,753		211,132
EchoStar Corp. — Class A*		4,796		210,209
China Mobile Ltd. ADR		3,409		209,722
Ubiquiti Networks, Inc.*		3,820		204,370
BCE, Inc.		4,304		198,759
KT Corp. ADR		12,360		198,378
Telefonaktiebolaget LM Ericsson ADR		27,320		196,977
SK Telecom Company Ltd. ADR		8,570		193,682
Telekomunikasi Indonesia Persero Tbk PT ADR		2,850		188,327
ViaSat, Inc.*		2,494		186,177
Nippon Telegraph & Telephone Corp. ADR		4,042		185,164
Finisar Corp.*		6,126		182,555
TIM Participacoes S.A. ADR		14,635		179,132
Rogers Communications, Inc. — Class B		4,184		177,485
Chunghwa Telecom Company Ltd. ADR		5,020		175,851
Telefonica S.A. ADR		17,266		174,041
Ciena Corp.*		7,876		171,697
Telephone & Data Systems, Inc.		6,123		166,423
InterDigital, Inc.		2,046		162,043
NETGEAR, Inc.*		2,301		139,187
Plantronics, Inc.		2,493		129,536
Viavi Solutions, Inc.*		17,234		127,359
Infinera Corp.*		12,660		114,320
Shenandoah Telecommunications Co.		4,140		112,649
Consolidated Communications Holdings, Inc.		4,413		111,384
Windstream Holdings, Inc.		9,988		100,379
ADTRAN, Inc.		4,995		95,604
Iridium Communications, Inc.*		10,911		88,488
Vonage Holdings Corp.*		8,955		59,193
Oclaro, Inc.*		6,260		53,523
Total Telecommunications				13,428,043
Semiconductors - 5.9%
QUALCOMM, Inc.		14,889		1,019,896
Computers - 4.1%
BlackBerry Ltd.*		25,862		206,379
Brocade Communications Systems, Inc.		20,201		186,455
NetScout Systems, Inc.*		5,407		158,155
Lumentum Holdings, Inc.*		3,784		158,058
Total Computers				709,047
REITs - 3.2%
Crown Castle International Corp.		5,881		554,049
Internet - 3.1%
F5 Networks, Inc.*		2,284		284,678
Cogent Communications Holdings, Inc.		3,467		127,620
8x8, Inc.*		7,562		116,682
Total Internet				528,980
Engineering & Construction - 2.1%
SBA Communications Corp. — Class A*		3,275		367,324
Aerospace & Defense - 1.9%
Harris Corp.		3,579		327,872
Total Common Stocks
(Cost $14,878,194)				16,935,211
PREFERRED STOCKS†† - 1.3%
Communications - 1.3%
Telefonica Brasil S.A. ADR		14,971		216,630
Total Preferred Stocks
(Cost $172,326)				216,630
RIGHTS††† - 0.0%
Leap Wireless International, Inc.
Expires 03/06/17		1,848		—
Total Rights
(Cost $4,327)				—
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.6%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	103,877		103,877
Total Repurchase Agreement
(Cost $103,877)				103,877
Total Investments - 100.0%
(Cost $15,158,724)			$	17,255,718
Other Assets & Liabilities, net - 0.0%				972
Total Net Assets - 100.0%			$	17,256,690

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
TELECOMMUNICATIONS FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	16,935,211	$	—	$	—	$	16,935,211
Preferred Stocks		216,630		—		—		216,630
Repurchase Agreement		—		103,877		—		103,877
Rights		—		—		—		—
Total	$	17,151,841	$	103,877	$	—	$	17,255,718

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

For the period ended September 30, 2016, there were no transfers between levels.

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $15,054,847)	$	17,151,841
Repurchase agreements, at value (cost $103,877)		103,877
Total investments (cost $15,158,724)		17,255,718
Cash		10,320
Receivables:
Fund shares sold		122,881
Dividends		10,822
Foreign taxes reclaim		920
Total assets		17,400,661
Liabilities:
Payable for:
Fund shares redeemed		125,581
Management fees		9,580
Transfer agent and administrative fees		2,818
Portfolio accounting fees		1,127
Distribution and service fees		710
Miscellaneous		4,155
Total liabilities		143,971
Commitments and contingent liabilities (Note 9)		—
Net assets	$	17,256,690
Net assets consist of:
Paid in capital	$	17,117,849
Undistributed net investment income		299,396
Accumulated net realized loss on investments		(2,257,549	)
Net unrealized appreciation on investments		2,096,994
Net assets	$	17,256,690
Investor Class:
Net assets	$	13,090,261
Capital shares outstanding		277,766
Net asset value per share	$	47.13
A-Class:
Net assets	$	948,060
Capital shares outstanding		21,682
Net asset value per share	$	43.73
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.90
C-Class:
Net assets	$	438,580
Capital shares outstanding		11,019
Net asset value per share	$	39.80
H-Class:
Net assets	$	2,779,789
Capital shares outstanding		65,248
Net asset value per share	$	42.60

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2016
Investment Income:
Dividends (net of foreign withholding tax of $11,301)	$	464,858
Interest		168
Total investment income		465,026
Expenses:
Management fees		138,379
Transfer agent and administrative fees		40,700
Distribution and service fees:
A-Class		9,471
C-Class		2,171
H-Class		11,481
Portfolio accounting fees		16,279
Custodian fees		1,924
Trustees’ fees*		1,653
Line of credit fees		108
Miscellaneous		23,209
Total expenses		245,375
Net investment income		219,651
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,732,785
Net realized gain		3,732,785
Net change in unrealized appreciation (depreciation) on:
Investments		(475,370	)
Net change in unrealized appreciation (depreciation)		(475,370	)
Net realized and unrealized gain		3,257,415
Net increase in net assets resulting from operations	$	3,477,066

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

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

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	219,651		$	96,347
Net realized gain (loss) on investments		3,732,785			(1,013,651	)
Net change in unrealized appreciation (depreciation) on investments		(475,370	)		1,646,482
Net increase in net assets resulting from operations		3,477,066			729,178
Distributions to shareholders from:
Net investment income
Investor Class		—			(53,710	)
A-Class		—			(14,192	)
C-Class		—			(14,927	)
H-Class		—			(14,554	)*
Total distributions to shareholders		—			(97,383	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		48,277,799			74,044,688
A-Class		36,214,349			10,919,225
C-Class		2,546,568			11,849,862
H-Class		13,184,683			19,440,257	*
Distributions reinvested
Investor Class		—			52,983
A-Class		—			14,149
C-Class		—			14,893
H-Class		—			14,553	*
Cost of shares redeemed
Investor Class		(54,954,399	)		(55,976,185	)
A-Class		(38,521,726	)		(9,651,492	)
C-Class		(2,406,250	)		(12,071,566	)
H-Class		(21,903,957	)		(10,361,614	)*
Net increase (decrease) from capital share transactions		(17,562,933	)		28,289,753
Net increase (decrease) in net assets		(14,085,867	)		28,921,548
Net assets:
Beginning of period		31,342,557			2,421,009
End of period	$	17,256,690		$	31,342,557
Undistributed net investment income at end of period	$	299,396		$	79,745
Capital share activity:
Shares sold
Investor Class		1,082,922			1,679,168
A-Class		901,623			264,455
C-Class		68,092			312,004
H-Class		330,057			531,126	*
Shares issued from reinvestment of distributions
Investor Class		—			1,285
A-Class		—			370
C-Class		—			424
H-Class		—			390	*
Shares redeemed
Investor Class		(1,252,573	)		(1,261,930	)
A-Class		(918,652	)		(236,776	)
C-Class		(63,878	)		(318,305	)
H-Class		(531,256	)		(268,701	)*
Net increase (decrease) in shares		(383,665	)		703,510

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	42.91		$	45.56		$	45.51		$	40.76		$	41.52		$	47.13
Income (loss) from investment operations:
Net investment income (loss)b		.25			.44			.72			1.06			.81			1.23
Net gain (loss) on investments (realized and unrealized)		3.97			(1.64	)		.63			4.26			(.67	)		(5.52	)
Total from investment operations		4.22			(1.20	)		1.35			5.32			.14			(4.29	)
Less distributions from:
Net investment income		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Total distributions		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Net asset value, end of period	$	47.13		$	42.91		$	45.56		$	45.51		$	40.76		$	41.52
Total Returnc		9.81	%		(2.49	%)		2.93	%		13.12	%		0.50	%		(8.77	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,090		$	19,198		$	1,316		$	2,497		$	2,970		$	7,028
Ratios to average net assets:
Net investment income (loss)		1.12	%		0.97	%		1.55	%		2.47	%		2.06	%		2.86	%
Total expenses		1.37	%		1.34	%		1.36	%		1.38	%		1.35	%		1.36	%
Portfolio turnover rate		212	%		660	%		804	%		1,271	%		1,550	%		793	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	39.88		$	42.63		$	42.74		$	38.44		$	39.27		$	44.72
Income (loss) from investment operations:
Net investment income (loss)b		.31			.58			.58			.72			.72			.54
Net gain (loss) on investments (realized and unrealized)		3.54			(1.88	)		.61			4.15			(.65	)		(4.67	)
Total from investment operations		3.85			(1.30	)		1.19			4.87			.07			(4.13	)
Less distributions from:
Net investment income		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Total distributions		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Net asset value, end of period	$	43.73		$	39.88		$	42.63		$	42.74		$	38.44		$	39.27
Total Returnc		9.63	%		(2.90	%)		2.75	%		12.80	%		0.30	%		(8.91	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	948		$	1,544		$	454		$	2,631		$	553		$	1,566
Ratios to average net assets:
Net investment income (loss)		1.50	%		1.41	%		1.35	%		1.79	%		1.98	%		1.41	%
Total expenses		1.61	%		1.59	%		1.60	%		1.63	%		1.61	%		1.60	%
Portfolio turnover rate		212	%		660	%		804	%		1,271	%		1,550	%		793	%

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

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	36.43		$	39.35		$	39.89		$	36.00		$	37.04		$	42.57
Income (loss) from investment operations:
Net investment income (loss)b		.07			(.01	)		.06			.54			.48			.15
Net gain (loss) on investments (realized and unrealized)		3.30			(1.46	)		.70			3.92			(.62	)		(4.36	)
Total from investment operations		3.37			(1.47	)		.76			4.46			(.14	)		(4.21	)
Less distributions from:
Net investment income		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Total distributions		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Net asset value, end of period	$	39.80		$	36.43		$	39.35		$	39.89		$	36.00		$	37.04
Total Returnc		9.25	%		(3.59	%)		1.86	%		12.49	%		(0.24	%)		(9.52	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	439		$	248		$	499		$	271		$	784		$	672
Ratios to average net assets:
Net investment income (loss)		0.36	%		(0.03	%)		0.14	%		1.42	%		1.41	%		0.39	%
Total expenses		2.36	%		2.35	%		2.35	%		2.38	%		2.36	%		2.36	%
Portfolio turnover rate		212	%		660	%		804	%		1,271	%		1,550	%		793	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d,e			Year Ended March 28, 2013d,e			Year Ended March 31, 2012d,e
Per Share Data
Net asset value, beginning of period	$	38.85		$	41.59		$	41.86		$	37.75		$	38.69		$	44.21
Income (loss) from investment operations:
Net investment income (loss)b		.32			.17			.60			.29			.57			.66
Net gain (loss) on investments (realized and unrealized)		3.43			(1.46	)		.43			4.39			(.61	)		(4.86	)
Total from investment operations		3.75			(1.29	)		1.03			4.68			(.04	)		(4.20	)
Less distributions from:
Net investment income		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Total distributions		—			(1.45	)		(1.30	)		(.57	)		(.90	)		(1.32	)
Net asset value, end of period	$	42.60		$	38.85		$	41.59		$	41.86		$	37.75		$	38.69
Total Returnc		9.65	%		(2.95	%)		2.42	%		12.53	%		(0.01	%)		(9.15	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,780		$	10,353		$	151		$	316		$	133		$	200
Ratios to average net assets:
Net investment income (loss)		1.65	%		0.44	%		1.40	%		0.74	%		1.59	%		1.65	%
Total expenses		1.61	%		1.64	%		1.86	%		1.88	%		1.86	%		1.85	%
Portfolio turnover rate		212	%		660	%		804	%		1,271	%		1,550	%		793	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 2016

TRANSPORTATION FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
United Parcel Service, Inc. — Class B	5.0%
Union Pacific Corp.	4.7%
General Motors Co.	3.6%
FedEx Corp.	3.6%
Ford Motor Co.	3.5%
Johnson Controls International plc	3.5%
Delta Air Lines, Inc.	2.8%
Tesla Motors, Inc.	2.8%
Norfolk Southern Corp.	2.8%
CSX Corp.	2.8%
Top Ten Total	35.1%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 129

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Transportation - 39.5%
United Parcel Service, Inc. — Class B		10,848	$	1,186,337
Union Pacific Corp.		11,319		1,103,943
FedEx Corp.		4,866		849,993
Norfolk Southern Corp.		6,756		655,737
CSX Corp.		21,483		655,232
CH Robinson Worldwide, Inc.		5,616		395,703
Kansas City Southern		4,103		382,892
Canadian Pacific Railway Ltd.		2,457		375,184
Expeditors International of Washington, Inc.		7,169		369,347
J.B. Hunt Transport Services, Inc.		4,429		359,368
Canadian National Railway Co.		4,360		285,144
Old Dominion Freight Line, Inc.*		4,138		283,908
XPO Logistics, Inc.*		6,692		245,396
Genesee & Wyoming, Inc. — Class A*		3,511		242,083
Kirby Corp.*		3,720		231,235
Ryder System, Inc.		3,390		223,571
Landstar System, Inc.		2,986		203,287
Swift Transportation Co. — Class A*		9,402		201,861
Knight Transportation, Inc.		6,279		180,145
Matson, Inc.		4,005		159,719
Werner Enterprises, Inc.		6,657		154,908
Heartland Express, Inc.		7,752		146,358
Hub Group, Inc. — Class A*		3,454		140,785
Forward Air Corp.		3,080		133,241
Atlas Air Worldwide Holdings, Inc.*		3,013		129,017
Total Transportation				9,294,394
Airlines - 17.6%
Delta Air Lines, Inc.		16,974		668,096
Southwest Airlines Co.		15,486		602,251
American Airlines Group, Inc.		14,411		527,587
United Continental Holdings, Inc.*		9,408		493,638
Alaska Air Group, Inc.		5,137		338,323
JetBlue Airways Corp.*		16,205		279,374
Copa Holdings S.A. — Class A		2,727		239,785
Ryanair Holdings plc ADR		2,916		218,787
Spirit Airlines, Inc.*		5,144		218,774
Hawaiian Holdings, Inc.*		4,041		196,393
Allegiant Travel Co. — Class A		1,393		183,974
Virgin America, Inc.*		3,391		181,452
Total Airlines				4,148,434
Auto Manufacturers - 15.1%
General Motors Co.		26,788		851,054
Ford Motor Co.		68,759		829,921
Tesla Motors, Inc.*		3,251		663,302
Tata Motors Ltd. ADR		6,736		269,305
Toyota Motor Corp. ADR		2,163		251,038
Ferrari N.V.		4,508		233,830
Fiat Chrysler Automobiles N.V.		36,152		231,373
Honda Motor Company Ltd. ADR		7,598		219,734
Total Auto Manufacturers				3,549,557
Auto Parts & Equipment - 14.7%
Delphi Automotive plc		6,936		494,675
Lear Corp.		2,948		357,357
Goodyear Tire & Rubber Co.		10,797		348,743
BorgWarner, Inc.		9,383		330,094
Magna International, Inc.		6,620		284,329
Autoliv, Inc.		2,455		262,194
Tenneco, Inc.*		3,748		218,396
Visteon Corp.		2,581		184,954
Dana, Inc.		11,702		182,434
Cooper Tire & Rubber Co.		4,695		178,504
Dorman Products, Inc.*		2,771		177,067
Cooper-Standard Holding, Inc.*		1,640		162,032
American Axle & Manufacturing Holdings, Inc.*		8,116		139,758
Gentherm, Inc.*		4,130		129,765
Total Auto Parts & Equipment				3,450,302
Electronics - 4.6%
Johnson Controls International plc		17,500		814,273
Gentex Corp.		15,348		269,511
Total Electronics				1,083,784
Commercial Services - 3.1%
Macquarie Infrastructure Corp.		3,782		314,814
Avis Budget Group, Inc.*		6,184		211,554
Hertz Global Holdings, Inc.*		5,018		201,523
Total Commercial Services				727,891
Leisure Time - 1.6%
Harley-Davidson, Inc.		7,048		370,654
Trucking & Leasing - 1.2%
AMERCO		900		291,807
Home Builders - 1.1%
Thor Industries, Inc.		3,063		259,436
Building Materials - 0.8%
Drew Industries, Inc.		2,000		196,040
Total Common Stocks
(Cost $15,122,229)				23,372,299

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
TRANSPORTATION FUND

	Face Amount		Value
REPURCHASE AGREEMENT††,1 - 0.6%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	135,358	$	135,358
Total Repurchase Agreement
(Cost $135,358)				135,358
Total Investments - 99.9%
(Cost $15,257,587)			$	23,507,657
Other Assets & Liabilities, net - 0.1%				18,779
Total Net Assets - 100.0%			$	23,526,436

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	23,372,299	$	—	$	—	$	23,372,299
Repurchase Agreement		—		135,358		—		135,358
Total	$	23,372,299	$	135,358	$	—	$	23,507,657

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

For the period ended September 30, 2016, there were no transfers between levels.

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $15,122,229)	$	23,372,299
Repurchase agreements, at value (cost $135,358)		135,358
Total investments (cost $15,257,587)		23,507,657
Cash		993
Receivables:
Fund shares sold		256,721
Dividends		4,253
Foreign taxes reclaim		191
Total assets		23,769,815
Liabilities:
Payable for:
Fund shares redeemed		215,719
Management fees		15,674
Transfer agent and administrative fees		4,610
Distribution and service fees		2,602
Portfolio accounting fees		1,844
Miscellaneous		2,930
Total liabilities		243,379
Commitments and contingent liabilities (Note 9)		—
Net assets	$	23,526,436
Net assets consist of:
Paid in capital	$	22,088,297
Undistributed net investment income		53,832
Accumulated net realized loss on investments		(6,865,763	)
Net unrealized appreciation on investments		8,250,070
Net assets	$	23,526,436
Investor Class:
Net assets	$	16,654,340
Capital shares outstanding		352,491
Net asset value per share	$	47.25
A-Class:
Net assets	$	4,077,156
Capital shares outstanding		93,158
Net asset value per share	$	43.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.94
C-Class:
Net assets	$	1,927,540
Capital shares outstanding		47,275
Net asset value per share	$	40.77
H-Class:
Net assets	$	867,400
Capital shares outstanding		20,373
Net asset value per share	$	42.58

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $2,129)	$	188,132
Interest		119
Total investment income		188,251
Expenses:
Management fees		98,592
Transfer agent and administrative fees		28,998
Distribution and service fees:
A-Class		6,085
C-Class		10,870
H-Class		4,180
Portfolio accounting fees		11,599
Custodian fees		1,364
Trustees’ fees*		1,200
Line of credit fees		176
Tax expense		85
Miscellaneous		16,883
Total expenses		180,032
Net investment income		8,219
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,691,663
Net realized gain		1,691,663
Net change in unrealized appreciation (depreciation) on:
Investments		(772,323	)
Net change in unrealized appreciation (depreciation)		(772,323	)
Net realized and unrealized gain		919,340
Net increase in net assets resulting from operations	$	927,559

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	8,219		$	45,613
Net realized gain on investments		1,691,663			12,642,987
Net change in unrealized appreciation (depreciation) on investments		(772,323	)		(19,150,904	)
Net increase (decrease) in net assets resulting from operations		927,559			(6,462,304	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(68,541	)
A-Class		—			(39,806	)
C-Class		—			(17,180	)
H-Class		—			(6,812	)*
Total distributions to shareholders		—			(132,339	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		35,959,747			59,874,682
A-Class		6,627,858			9,344,709
C-Class		1,973,523			13,489,052
H-Class		54,086,156			25,514,022	*
Distributions reinvested
Investor Class		—			66,183
A-Class		—			37,973
C-Class		—			16,835
H-Class		—			6,762	*
Cost of shares redeemed
Investor Class		(33,213,791	)		(85,095,507	)
A-Class		(7,697,468	)		(18,030,528	)
C-Class		(3,008,840	)		(16,300,469	)
H-Class		(63,113,668	)		(22,304,004	)*
Net decrease from capital share transactions		(8,386,483	)		(33,380,290	)
Net decrease in net assets		(7,458,924	)		(39,974,933	)
Net assets:
Beginning of period		30,985,360			70,960,293
End of period	$	23,526,436		$	30,985,360
Undistributed net investment income at end of period	$	53,832		$	45,613
Capital share activity:
Shares sold
Investor Class		791,051			1,248,273
A-Class		154,101			212,086
C-Class		50,232			323,931
H-Class		1,417,111			585,638	*
Shares issued from reinvestment of distributions
Investor Class		—			1,414
A-Class		—			874
C-Class		—			413
H-Class		—			160	*
Shares redeemed
Investor Class		(733,587	)		(1,779,677	)
A-Class		(185,500	)		(405,659	)
C-Class		(77,216	)		(390,453	)
H-Class		(1,613,255	)		(501,890	)*
Net decrease in shares		(197,063	)		(704,890	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	46.23		$	52.06		$	44.63		$	32.07		$	26.96		$	27.85
Income (loss) from investment operations:
Net investment income (loss)b		.07			.16			.18			(.04	)		(.07	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		.95			(5.78	)		7.25			12.60			5.18			(.83	)
Total from investment operations		1.02			(5.62	)		7.43			12.56			5.11			(.89	)
Less distributions from:
Net investment income		—			(.21	)		—			—			—			—
Total distributions		—			(.21	)		—			—			—			—
Net asset value, end of period	$	47.25		$	46.23		$	52.06		$	44.63		$	32.07		$	26.96
Total Returnc		2.18	%		(10.80	%)		16.65	%		39.16	%		18.95	%		(3.20	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,654		$	13,638		$	42,947		$	44,021		$	78,644		$	8,031
Ratios to average net assets:
Net investment income (loss)		0.31	%		0.33	%		0.37	%		(0.09	%)		(0.25	%)		(0.22	%)
Total expenses		1.37	%		1.34	%		1.35	%		1.37	%		1.37	%		1.35	%
Portfolio turnover rate		351	%		219	%		247	%		593	%		737	%		1,082	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	42.87		$	48.41		$	41.61		$	29.96		$	25.25		$	26.15
Income (loss) from investment operations:
Net investment income (loss)b		.02			.04			.05			(.11	)		(.01	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		.88			(5.37	)		6.75			11.76			4.72			(.78	)
Total from investment operations		.90			(5.33	)		6.80			11.65			4.71			(.90	)
Less distributions from:
Net investment income		—			(.21	)		—			—			—			—
Total distributions		—			(.21	)		—			—			—			—
Net asset value, end of period	$	43.77		$	42.87		$	48.41		$	41.61		$	29.96		$	25.25
Total Returnc		2.08	%		(11.01	%)		16.34	%		38.89	%		18.70	%		(3.48	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,077		$	5,340		$	15,359		$	12,938		$	4,558		$	1,600
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.08	%		0.12	%		(0.28	%)		(0.05	%)		(0.51	%)
Total expenses		1.61	%		1.60	%		1.60	%		1.62	%		1.60	%		1.61	%
Portfolio turnover rate		351	%		219	%		247	%		593	%		737	%		1,082	%

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	40.09		$	45.63		$	39.52		$	28.67		$	24.34		$	25.38
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.24	)		(.27	)		(.37	)		(.26	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		.81			(5.09	)		6.38			11.22			4.59			(.75	)
Total from investment operations		.68			(5.33	)		6.11			10.85			4.33			(1.04	)
Less distributions from:
Net investment income		—			(.21	)		—			—			—			—
Total distributions		—			(.21	)		—			—			—			—
Net asset value, end of period	$	40.77		$	40.09		$	45.63		$	39.52		$	28.67		$	24.34
Total Returnc		1.70	%		(11.69	%)		15.46	%		37.84	%		17.79	%		(4.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,928		$	2,977		$	6,405		$	3,734		$	2,727		$	2,729
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.57	%)		(0.62	%)		(1.07	%)		(1.06	%)		(1.24	%)
Total expenses		2.36	%		2.35	%		2.35	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		351	%		219	%		247	%		593	%		737	%		1,082	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	41.71		$	47.12		$	40.61		$	29.32		$	24.76		$	25.70
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.09	)		(.10	)		(.18	)		(.15	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		.95			(5.11	)		6.61			11.47			4.71			(.80	)
Total from investment operations		.87			(5.20	)		6.51			11.29			4.56			(.94	)
Less distributions from:
Net investment income		—			(.21	)		—			—			—			—
Total distributions		—			(.21	)		—			—			—			—
Net asset value, end of period	$	42.58		$	41.71		$	47.12		$	40.61		$	29.32		$	24.76
Total Returnc		2.06	%		(11.04	%)		16.03	%		38.51	%		18.42	%		(3.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	867		$	9,031		$	6,249		$	2,583		$	4,483		$	2,355
Ratios to average net assets:
Net investment income (loss)		(0.38	%)		(0.20	%)		(0.22	%)		(0.50	%)		(0.57	%)		(0.55	%)
Total expenses		1.62	%		1.72	%		1.85	%		1.87	%		1.86	%		1.86	%
Portfolio turnover rate		351	%		219	%		247	%		593	%		737	%		1,082	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

FUND PROFILE (Unaudited) September 30, 2016

UTILITIES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	April 3, 2000
A-Class	September 1, 2004
C-Class	April 27, 2001
H-Class*	April 3, 2000

Ten Largest Holdings (% of Total Net Assets)
NextEra Energy, Inc.	3.7%
Duke Energy Corp.	3.6%
Southern Co.	3.5%
Dominion Resources, Inc.	3.3%
American Electric Power Company, Inc.	2.7%
PG&E Corp.	2.7%
Exelon Corp.	2.7%
Sempra Energy	2.5%
Edison International	2.4%
PPL Corp.	2.3%
Top Ten Total	29.4%
“Ten Largest Holdings” excludes any temporary cash investments.

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

136 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Electric - 75.4%
NextEra Energy, Inc.		19,719	$	2,412,027
Duke Energy Corp.		30,041		2,404,482
Southern Co.		44,415		2,278,490
Dominion Resources, Inc.		29,482		2,189,628
American Electric Power Company, Inc.		28,145		1,807,190
PG&E Corp.		28,995		1,773,624
Exelon Corp.		53,007		1,764,603
Edison International		21,640		1,563,490
PPL Corp.		44,838		1,550,050
Consolidated Edison, Inc.		20,548		1,547,264
Xcel Energy, Inc.		35,843		1,474,581
Public Service Enterprise Group, Inc.		35,196		1,473,657
WEC Energy Group, Inc.		23,236		1,391,372
Eversource Energy		24,703		1,338,409
DTE Energy Co.		14,143		1,324,775
FirstEnergy Corp.		36,511		1,207,784
Entergy Corp.		15,540		1,192,384
Avangrid, Inc.		27,875		1,164,618
Ameren Corp.		22,693		1,116,042
CMS Energy Corp.		26,224		1,101,670
SCANA Corp.		14,401		1,042,200
Alliant Energy Corp.		24,790		949,705
AES Corp.		73,207		940,710
Pinnacle West Capital Corp.		12,340		937,717
Westar Energy, Inc.		16,214		920,145
ITC Holdings Corp.		18,728		870,477
OGE Energy Corp.		25,696		812,508
MDU Resources Group, Inc.		29,166		741,983
Calpine Corp.*		53,128		671,538
Great Plains Energy, Inc.		24,434		666,804
IDACORP, Inc.		8,270		647,376
Portland General Electric Co.		14,647		623,816
NRG Energy, Inc.		53,268		597,134
Black Hills Corp.		9,661		591,446
Atlantica Yield plc		30,994		589,195
Hawaiian Electric Industries, Inc.		19,397		579,000
Korea Electric Power Corp. ADR		23,640		576,343
Enersis Americas S.A. ADR		68,675		562,448
NRG Yield, Inc. — Class C		32,612		553,100
ALLETE, Inc.		9,254		551,723
NorthWestern Corp.		9,451		543,716
Avista Corp.		12,745		532,614
PNM Resources, Inc.		15,953		521,982
El Paso Electric Co.		9,747		455,867
Talen Energy Corp.*		31,004		429,405
Empire District Electric Co.		11,661		398,107
Dynegy, Inc.*		31,102		385,354
Total Electric				49,768,553
Gas - 18.0%
Sempra Energy		15,646		1,677,096
CenterPoint Energy, Inc.		44,288		1,028,810
NiSource, Inc.		37,435		902,558
Atmos Energy Corp.		12,117		902,353
UGI Corp.		19,800		895,752
Piedmont Natural Gas Company, Inc.		11,978		719,159
National Fuel Gas Co.		12,541		678,092
Vectren Corp.		13,311		668,212
National Grid plc ADR		9,146		650,372
Southwest Gas Corp.		8,566		598,421
ONE Gas, Inc.		9,529		589,273
WGL Holdings, Inc.		9,333		585,179
Spire, Inc.		8,722		555,940
New Jersey Resources Corp.		16,383		538,345
South Jersey Industries, Inc.		17,024		503,059
Northwest Natural Gas Co.		6,974		419,207
Total Gas				11,911,828
Water - 5.1%
American Water Works Company, Inc.		15,796		1,182,172
Aqua America, Inc.		24,742		754,136
Cia de Saneamento Basico do Estado de Sao Paulo ADR		69,979		648,006
California Water Service Group		12,700		407,543
American States Water Co.		9,970		399,299
Total Water				3,391,156
Energy-Alternate Sources - 1.4%
TerraForm Power, Inc. — Class A*		33,143		461,020
Pattern Energy Group, Inc.		19,607		440,961
Total Energy-Alternate Sources				901,981
Pipelines - 0.0%
Kinder Morgan, Inc.		1		23
Total Common Stocks
(Cost $54,187,760)				65,973,541
	Face Amount
REPURCHASE AGREEMENT††,1 - 0.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16	$	254,582		254,582
Total Repurchase Agreement
(Cost $254,582)				254,582
Total Investments - 100.3%
(Cost $54,442,342)			$	66,228,123
Other Assets & Liabilities, net - (0.3)%				(203,912	)
Total Net Assets - 100.0%			$	66,024,211

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
UTILITIES FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreement — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	65,973,541	$	—	$	—	$	65,973,541
Repurchase Agreement		—		254,582		—		254,582
Total	$	65,973,541	$	254,582	$	—	$	66,228,123

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

For the period ended September 30, 2016, there were no transfers between levels.

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $54,187,760)	$	65,973,541
Repurchase agreements, at value (cost $254,582)		254,582
Total investments (cost $54,442,342)		66,228,123
Receivables:
Securities sold		615,666
Fund shares sold		246,186
Dividends		142,553
Interest		3
Total assets		67,232,531
Liabilities:
Payable for:
Fund shares redeemed		1,128,711
Management fees		44,020
Transfer agent and administrative fees		12,947
Distribution and service fees		11,372
Portfolio accounting fees		5,179
Miscellaneous		6,091
Total liabilities		1,208,320
Commitments and contingent liabilities (Note 9)		—
Net assets	$	66,024,211
Net assets consist of:
Paid in capital	$	51,046,418
Undistributed net investment income		634,385
Accumulated net realized gain on investments		2,557,627
Net unrealized appreciation on investments		11,785,781
Net assets	$	66,024,211
Investor Class:
Net assets	$	46,294,073
Capital shares outstanding		1,131,055
Net asset value per share	$	40.93
A-Class:
Net assets	$	6,505,517
Capital shares outstanding		170,131
Net asset value per share	$	38.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	40.14
C-Class:
Net assets	$	11,003,015
Capital shares outstanding		329,780
Net asset value per share	$	33.36
H-Class:
Net assets	$	2,221,606
Capital shares outstanding		60,053
Net asset value per share	$	36.99

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $9,481)	$	1,376,101
Interest		488
Total investment income		1,376,589
Expenses:
Management fees		394,712
Transfer agent and administrative fees		116,092
Distribution and service fees:
A-Class		26,971
C-Class		58,643
H-Class		11,359
Portfolio accounting fees		46,436
Trustees’ fees*		6,848
Custodian fees		5,484
Line of credit fees		251
Miscellaneous		75,408
Total expenses		742,204
Net investment income		634,385
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,337,287
Net realized gain		9,337,287
Net change in unrealized appreciation (depreciation) on:
Investments		(8,323,113	)
Net change in unrealized appreciation (depreciation)		(8,323,113	)
Net realized and unrealized gain		1,014,174
Net increase in net assets resulting from operations	$	1,648,559

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

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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	634,385		$	957,252
Net realized gain on investments		9,337,287			376,530
Net change in unrealized appreciation (depreciation) on investments		(8,323,113	)		4,295,317
Net increase in net assets resulting from operations		1,648,559			5,629,099
Distributions to shareholders from:
Net investment income
Investor Class		—			(406,169	)
A-Class		—			(268,532	)
C-Class		—			(122,718	)
H-Class		—			(173,650	)*
Total distributions to shareholders		—			(971,069	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		157,815,337			150,469,741
A-Class		25,158,141			48,138,913
C-Class		5,589,626			22,853,937
H-Class		89,734,743			142,307,243	*
Distributions reinvested
Investor Class		—			394,790
A-Class		—			260,843
C-Class		—			121,826
H-Class		—			173,410	*
Cost of shares redeemed
Investor Class		(162,445,140	)		(157,218,282	)
A-Class		(41,773,799	)		(37,759,601	)
C-Class		(5,161,907	)		(21,684,803	)
H-Class		(94,628,598	)		(149,530,278	)*
Net decrease from capital share transactions		(25,711,597	)		(1,472,261	)
Net increase (decrease) in net assets		(24,063,038	)		3,185,769
Net assets:
Beginning of period		90,087,249			86,901,480
End of period	$	66,024,211		$	90,087,249
Undistributed net investment income at end of period	$	634,385		$	—
Capital share activity:
Shares sold
Investor Class		3,798,655			4,123,058
A-Class		641,674			1,422,806
C-Class		166,009			771,627
H-Class		2,461,009			4,366,895	*
Shares issued from reinvestment of distributions
Investor Class		—			11,581
A-Class		—			8,172
C-Class		—			4,346
H-Class		—			5,619	*
Shares redeemed
Investor Class		(3,929,163	)		(4,364,735	)
A-Class		(1,068,069	)		(1,116,343	)
C-Class		(152,976	)		(733,416	)
H-Class		(2,578,093	)		(4,598,364	)*
Net decrease in shares		(660,954	)		(98,754	)

* Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares — See Note 8.

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	40.23		$	36.98		$	34.01		$	32.71		$	29.13		$	27.00
Income (loss) from investment operations:
Net investment income (loss)b		.33			.73			.84			.78			.74			.73
Net gain (loss) on investments (realized and unrealized)		.37			3.09			2.26			1.98			3.96			1.80
Total from investment operations		.70			3.82			3.10			2.76			4.70			2.53
Less distributions from:
Net investment income		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Total distributions		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Net asset value, end of period	$	40.93		$	40.23		$	36.98		$	34.01		$	32.71		$	29.13
Total Returnc		1.74	%		10.61	%		9.12	%		8.88	%		16.75	%		9.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	46,294		$	50,753		$	55,156		$	95,854		$	42,907		$	37,469
Ratios to average net assets:
Net investment income (loss)		1.58	%		2.00	%		2.31	%		2.38	%		2.45	%		2.59	%
Total expenses		1.39	%		1.35	%		1.35	%		1.40	%		1.35	%		1.35	%
Portfolio turnover rate		241	%		475	%		384	%		508	%		534	%		549	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	37.63		$	34.70		$	32.02		$	30.95		$	27.69		$	25.75
Income (loss) from investment operations:
Net investment income (loss)b		.25			.63			.66			.63			.65			.67
Net gain (loss) on investments (realized and unrealized)		.36			2.87			2.15			1.90			3.73			1.67
Total from investment operations		.61			3.50			2.81			2.53			4.38			2.34
Less distributions from:
Net investment income		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Total distributions		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Net asset value, end of period	$	38.24		$	37.63		$	34.70		$	32.02		$	30.95		$	27.69
Total Returnc		1.59	%		10.38	%		8.78	%		8.64	%		16.46	%		9.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,506		$	22,448		$	9,782		$	11		$	6,938		$	7,912
Ratios to average net assets:
Net investment income (loss)		1.29	%		1.85	%		1.93	%		2.05	%		2.26	%		2.47	%
Total expenses		1.64	%		1.60	%		1.60	%		1.63	%		1.61	%		1.60	%
Portfolio turnover rate		241	%		475	%		384	%		508	%		534	%		549	%

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	32.96		$	30.70		$	28.55		$	27.96		$	25.31		$	23.76
Income (loss) from investment operations:
Net investment income (loss)b		.13			.28			.36			.34			.42			.42
Net gain (loss) on investments (realized and unrealized)		.27			2.55			1.92			1.71			3.35			1.53
Total from investment operations		.40			2.83			2.28			2.05			3.77			1.95
Less distributions from:
Net investment income		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Total distributions		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Net asset value, end of period	$	33.36		$	32.96		$	30.70		$	28.55		$	27.96		$	25.31
Total Returnc		1.21	%		9.55	%		7.99	%		7.83	%		15.58	%		8.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,003		$	10,439		$	8,417		$	8,387		$	7,001		$	6,961
Ratios to average net assets:
Net investment income (loss)		0.78	%		0.94	%		1.18	%		1.22	%		1.62	%		1.70	%
Total expenses		2.38	%		2.35	%		2.35	%		2.38	%		2.36	%		2.35	%
Portfolio turnover rate		241	%		475	%		384	%		508	%		534	%		549	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	36.40		$	33.61		$	31.09		$	30.19		$	27.10		$	25.26
Income (loss) from investment operations:
Net investment income (loss)b		.20			.54			.60			.69			.48			.56
Net gain (loss) on investments (realized and unrealized)		.39			2.82			2.05			1.67			3.73			1.68
Total from investment operations		.59			3.36			2.65			2.36			4.21			2.24
Less distributions from:
Net investment income		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Total distributions		—			(.57	)		(.13	)		(1.46	)		(1.12	)		(.40	)
Net asset value, end of period	$	36.99		$	36.40		$	33.61		$	31.09		$	30.19		$	27.10
Total Returnc		1.62	%		10.31	%		8.53	%		8.29	%		16.23	%		8.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,222		$	6,448		$	13,546		$	2,269		$	4,812		$	8,036
Ratios to average net assets:
Net investment income (loss)		1.06	%		1.65	%		1.79	%		2.32	%		1.70	%		2.11	%
Total expenses		1.62	%		1.68	%		1.84	%		1.88	%		1.85	%		1.84	%
Portfolio turnover rate		241	%		475	%		384	%		508	%		534	%		549	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class — See Note 8.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (“1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2016, the Trust consisted of fifty-three funds.

This report covers the Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (the “Funds”), each a non-diversified investment company. Only Investor Class, A-Class, C-Class and H-Class had been issued by the Funds.

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

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

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities; RFS ceased to be an affiliate of GI as of October 4, 2016, when it was acquired by MUFG Investor Services. In connection with its acquisition, RFS changed its name to MUFG Investor Services (US), LLC (“MUIS”). This change has no impact on the financial statements of the Funds.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

A. The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 143

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Valuations of the Funds’ securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies (“mutual funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds (“ETFs”) are valued at the last quoted sales price.

Repurchase agreements are valued at amortized cost, provided such amounts approximate market value.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI under the direction of the Board using methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

B. The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

C. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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

E. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses

144 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

F. The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.29% at September 30, 2016.

G. Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Fees and Other Transactions with Affiliates

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

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

RFS provided transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

RFS also provided accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund:

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

GI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

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

For the period ended September 30, 2016, GFD retained sales charges of $145,031 relating to sales of A-Class shares of the Trust.

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

3. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 145

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on Federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

At September 30, 2016, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Banking Fund	$	28,529,494	$	351,889	$	(77,258	)	$	274,631
Basic Materials Fund		110,242,034		8,680,420		(925,631	)		7,754,789
Biotechnology Fund		202,925,223		152,577,509		(5,206,386	)		147,371,123
Consumer Products Fund		376,330,868		94,047,990		(4,764,735	)		89,283,255
Electronics Fund		39,860,817		—		(903,485	)		(903,485	)
Energy Fund		46,881,184		3,664,892		(17,441	)		3,647,451
Energy Services Fund		15,730,009		—		(367,772	)		(367,772	)
Financial Services Fund		47,232,189		2,868,323		(974,032	)		1,894,291
Health Care Fund		37,842,162		12,392,190		(510,764	)		11,881,426
Internet Fund		40,442,007		5,360,120		(352,848	)		5,007,272
Leisure Fund		17,995,188		1,519,366		(191,307	)		1,328,059
Precious Metals Fund		98,178,538		13,226,686		(144,913	)		13,081,773
Real Estate Fund		34,141,502		388,814		(132,971	)		255,843
Retailing Fund		10,340,283		581,775		(80,120	)		501,655
Technology Fund		45,574,226		4,949,912		(525,868	)		4,424,044
Telecommunications Fund		16,027,966		1,316,125		(88,374	)		1,227,751
Transportation Fund		17,367,443		6,204,340		(64,126	)		6,140,214
Utilities Fund		60,126,279		6,574,049		(472,205	)		6,101,844

4. Fair Value Measurement

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

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2016, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
Royal Bank of Canada					U.S. TIP Notes
0.36%					0.63%
Due 10/03/16	$	3,446,119	$	3,446,222	07/15/21	$	3,127,500	$	3,515,043

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment adviser, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

6. Securities Transactions

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Banking Fund	$	231,851,852	$	216,437,499
Basic Materials Fund		185,878,703		118,364,021
Biotechnology Fund		322,443,284		381,739,931
Consumer Products Fund		233,919,273		196,672,531
Electronics Fund		205,398,741		189,556,066
Energy Fund		291,895,168		284,446,095
Energy Services Fund		257,648,515		255,695,759
Financial Services Fund		67,286,590		38,822,474
Health Care Fund		97,983,201		115,790,213
Internet Fund		71,639,801		66,375,032
Leisure Fund		36,049,391		54,594,830
Precious Metals Fund		250,501,315		228,589,152
Real Estate Fund		213,797,115		229,507,731
Retailing Fund		79,477,624		90,617,959
Technology Fund		67,529,622		56,077,698
Telecommunications Fund		70,935,347		88,355,522
Transportation Fund		82,860,502		91,270,552
Utilities Fund		217,404,006		242,019,674

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2016, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Banking Fund	$	7,463,395	$	9,196,752	$	325,001
Basic Materials Fund		15,497,951		10,414,627		226,555
Biotechnology Fund		12,788,137		23,792,916		1,220,238
Consumer Products Fund		19,526,134		5,081,797		74,500
Electronics Fund		7,042,168		10,038,101		108,337
Energy Fund		21,315,447		13,171,680		3,816
Energy Services Fund		9,156,168		8,169,156		(31,010	)
Financial Services Fund		11,814,879		9,641,087		38,932
Health Care Fund		15,638,266		12,765,727		(105,600	)
Internet Fund		16,089,136		10,310,639		344,529
Leisure Fund		3,648,496		6,946,532		532,597
Precious Metals Fund		20,060,490		16,654,089		1,122,305
Real Estate Fund		14,821,195		19,003,518		450,828
Retailing Fund		4,133,750		7,430,731		379,676
Technology Fund		10,486,116		6,956,791		414,386
Telecommunications Fund		4,886,653		7,110,186		866,127
Transportation Fund		1,754,835		2,039,474		175,075
Utilities Fund		13,158,003		10,644,285		553,866

7. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2017. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2016. The Funds did not have any borrowings outstanding under this agreement at September 30, 2016.

The average daily balances borrowed for the period ended September 30, 2016, were as follows:

Fund	Average Daily Balance
Banking Fund	$	5,960
Basic Materials Fund		7,156
Biotechnology Fund		192,494
Consumer Products Fund		20,642
Electronics Fund		74,049
Energy Fund		34,469
Energy Services Fund		29,698
Financial Services Fund		22,956
Health Care Fund		5,880
Internet Fund		7,510
Leisure Fund		7,137
Precious Metals Fund		14,590
Real Estate Fund		8,664
Retailing Fund		22,375
Technology Fund		21,315
Telecommunications Fund		17,086
Transportation Fund		27,644
Utilities Fund		39,567

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

8. Conversion of Advisor Class Shares to H-Class Shares

Effective upon the close of business on September 30, 2015, the Funds converted their existing Advisor Class shares to H-Class shares, which effectively reduced the distribution and shareholder services fees paid by the Funds.

9. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

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

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

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust Action”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

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

On May 8, 2014, the plaintiff in the Litigation Trust Action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

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10. Subsequent Event

Share Splits.

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

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

The effect of the reverse share split was to divide the number of outstanding shares of the Energy Fund by its split ratio, resulting in a corresponding increase in the NAV. The effect of the share split was to multiply the number of outstanding shares of the Financial Services Fund by its split ratio, resulting in a corresponding decrease in the NAV. The share transactions presented in the Statements of Changes in net assets and the per share data in the Financial Highlights for each of the periods presented through September 30, 2016, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Portfolio Securities Loaned

Effective October 6, 2016, each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds’ securities lending agent. The loans would be collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of securities loaned as determined at the close of business on the preceding business day. The cash collateral received would be held in a separately managed account established for each respective Fund and maintained by the lending agent exclusively for the investment of securities lending cash collateral on behalf of each Fund. The separately managed accounts will invest in short-term investments valued at amortized cost, which approximates market value. Each Fund will receive compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees paid to the lending agent. Such compensation will be accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned will be accounted for in the same manner as other dividend and interest income. The borrower will pay to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as “qualified dividend income” under the Jobs and Growth Tax Reconciliation Act of 2003. The Funds would retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower.

Although the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 19, 2016, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 26, 2016 (together, with the May 19 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from Fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance

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OTHER INFORMATION (Unaudited)(continued)

policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of each Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

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OTHER INFORMATION (Unaudited)(concluded)

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, the Board considered the nature and amount of other benefits to be received by the Advisor and its affiliates as a result of their relationship with the Fund, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle***** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm) Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Epiphany Funds (4) (2009-present).

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - concluded
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	135	None.
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem***** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.

156 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Managing Director of Transparent Value, LLC (2015-present); Managing Director of Guggenheim Investments (2015-present). Former: Director, Transparent Value, LLC (2010-2015); Director, Guggenheim Investments (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 157

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.
****	Some of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.
*****	Mses. Brock-Kyle and Sponem commenced serving as independent Trustees effective August 18, 2016.

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

When you become a Guggenheim Investments investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g. purchase and redemption history).

How We Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below.

To complete certain transactions or account changes that you direct, it may be necessary to provide your personal information to companies, individuals or groups that are not affiliated with Guggenheim Investments. For example if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. In connection with servicing your accounts or to alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new funds or the services offered through another Guggenheim Investments affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your personal information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally we will share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

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9.30.2016

Rydex Funds Semi-Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

Dow Jones Industrial Average^® Fund

Fixed Income Funds

Government Long Bond 1.2x Strategy Fund

Inverse Government Long Bond Strategy Fund

High Yield Strategy Fund

Inverse High Yield Strategy Fund

Money Market Fund

U.S. Government Money Market Fund

GuggenheimInvestments.com RBENF-SEMI-0916x0317

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NOVA FUND	10
S&P 500® FUND	24
INVERSE S&P 500® STRATEGY FUND	36
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	44
INVERSE NASDAQ-100® STRATEGY FUND	52
MID-CAP 1.5x STRATEGY FUND	60
INVERSE MID-CAP STRATEGY FUND	71
RUSSELL 2000® 1.5x STRATEGY FUND	78
RUSSELL 2000® FUND	103
INVERSE RUSSELL 2000® STRATEGY FUND	129
DOW JONES INDUSTRIAL AVERAGE® FUND	136
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	143
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	152
HIGH YIELD STRATEGY FUND	160
INVERSE HIGH YIELD STRATEGY FUND	168
U.S. GOVERNMENT MONEY MARKET FUND	175
NOTES TO FINANCIAL STATEMENTS	181
OTHER INFORMATION	200
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	203
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	207

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2016

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for 16 of our Target Beta 1 Funds (the “Funds”) for the six-month period ended September 30, 2016.

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

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter.

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

Sincerely,

Donald C. Cacciapaglia
President and Chief Executive Officer
October 31, 2016

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2016

Economic growth continues to rebound, even though the rise in U.S. Gross Domestic Product (“GDP”) disappointed in the first half of 2016. There was a large headwind from inventory drawdowns, which should soon reverse after five quarters of dragging on growth. Real GDP growth is expected to be around 2.5 percent in the second half of the year, driven by consumption, housing, and a fading trade drag, and supporting the view that U.S. economic growth remains resilient to global weakness.

The euro zone economy is slowly improving, but inflation will likely persist well below the European Central Bank’s (“ECB”) target in the coming quarters due to substantial slack. The ECB has indicated that more quantitative easing is possible, but will soon need to alter the quantitative easing program in order to keep up their purchase pace. Both China and Japan need weaker currencies. Chinese growth and capital flows have stabilized for now, but surging construction and a credit boom raise the prospect of future instability. Japan’s economic prospects are weak, and inflation remains far from the Bank of Japan’s (“BOJ”) target. The surging yen could drive further policy easing, including an increase in fiscal stimulus.

It appears the U.S. Federal Reserve (the “Fed”) will move forward with raising rates in December, absent any economic or geopolitical surprise or a meaningful tightening of financial conditions over the fourth quarter. But key events could influence risk asset performance for the balance of the year. A continued recovery in oil prices following the Organization of Petroleum Exporting Countries (“OPEC”) agreement to keep production between 32.5 to 33 million barrels per day would help sustain the rally (although we are skeptical that they will adhere to any quota based on historical production levels). Global oil inventories remain high, but supply and demand are moving toward balance. A rebound in GDP growth would also lift U.S. equity and corporate bond prices higher.

The macroeconomic picture remains the same; we are not on the verge of a recession. But despite our positive outlook on the U.S. economy, valuations across risk assets argue for caution. Ongoing accommodation from central bankers across the globe has alleviated much of the initial macroeconomic tail risk posed by Brexit but may not be enough to dampen the seasonal volatility typically observed in the fourth quarter. Ongoing troubles in the banking sector, such as the woes afflicting Deutsche Bank and Wells Fargo, coupled with uncertainty surrounding upcoming political events, which include the new Trump administration, the Italian constitutional referendum, and key European elections, may create volatility for risk assets for the balance of the year.

For the six months ended September 30, 2016, the Standard & Poor’s 500^® (“S&P 500^®”) Index* returned 6.40%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 4.88%. The return of the MSCI Emerging Markets Index* was 9.75%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.68% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 11.38%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.17% for the six-month period.

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

*Index Definitions:

The following indicies are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

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

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

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

MSCI EAFE Index is a capitalization-weighted measure of stock markets in Europe, Australasia, and the Far East.

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2016 and ending September 30, 2016.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.27%	8.50%	$ 1,000.00	$ 1,085.00	$ 6.64
A-Class	1.52%	8.42%	1,000.00	1,084.20	7.94
C-Class	2.27%	7.98%	1,000.00	1,079.80	11.84
H-Class	1.52%	8.36%	1,000.00	1,083.60	7.94
S&P 500® Fund
A-Class	1.57%	5.50%	1,000.00	1,055.00	8.09
C-Class	2.32%	5.09%	1,000.00	1,050.90	11.93
H-Class	1.57%	5.50%	1,000.00	1,055.00	8.09
Inverse S&P 500® Strategy Fund
Investor Class	1.42%	(6.64%)	1,000.00	933.60	6.88
A-Class	1.67%	(6.76%)	1,000.00	932.40	8.09
C-Class	2.42%	(7.12%)	1,000.00	928.80	11.70
H-Class	1.67%	(6.61%)	1,000.00	933.90	8.10
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.35%	17.63%	1,000.00	1,176.30	7.37
C-Class	2.10%	17.19%	1,000.00	1,171.90	11.38
H-Class	1.35%	17.66%	1,000.00	1,176.60	7.37
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.46%	(9.50%)	1,000.00	905.00	6.92
A-Class	1.70%	(9.49%)	1,000.00	905.10	8.12
C-Class	2.46%	(9.98%)	1,000.00	900.20	11.67
H-Class	1.70%	(9.66%)	1,000.00	903.40	8.11
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	11.21%	1,000.00	1,112.10	8.84
C-Class	2.42%	10.78%	1,000.00	1,107.80	12.73
H-Class	1.67%	11.20%	1,000.00	1,112.00	8.84
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	(8.86%)	1,000.00	911.40	8.00
C-Class	2.41%	(9.21%)	1,000.00	907.90	11.53
H-Class	1.66%	(8.83%)	1,000.00	911.70	7.96
Russell 2000® 1.5x Strategy Fund
A-Class	1.71%	18.83%	1,000.00	1,188.30	9.38
C-Class	2.46%	18.38%	1,000.00	1,183.80	13.47
H-Class	1.71%	18.77%	1,000.00	1,187.70	9.38
Russell 2000® Fund
A-Class	1.61%	12.13%	1,000.00	1,121.30	8.56
C-Class	2.36%	11.70%	1,000.00	1,117.00	12.52
H-Class	1.61%	12.10%	1,000.00	1,121.00	8.56
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	(13.13%)	1,000.00	868.70	8.01
C-Class	2.46%	(13.47%)	1,000.00	865.30	11.50
H-Class	1.71%	(13.10%)	1,000.00	869.00	8.01

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.55%	4.13%	$ 1,000.00	$ 1,041.30	$ 7.93
C-Class	2.30%	3.74%	1,000.00	1,037.40	11.75
H-Class	1.55%	4.21%	1,000.00	1,042.10	7.93
Government Long Bond 1.2x Strategy Fund
Investor Class	0.97%	8.91%	1,000.00	1,089.10	5.08
A-Class	1.22%	8.78%	1,000.00	1,087.80	6.39
C-Class	1.97%	8.36%	1,000.00	1,083.60	10.29
H-Class	1.22%	8.82%	1,000.00	1,088.20	6.33
Inverse Government Long Bond Strategy Fund
Investor Class	3.04%	(7.79%)	1,000.00	922.10	14.60
A-Class	3.32%	(7.91%)	1,000.00	920.90	15.94
C-Class	4.08%	(8.25%)	1,000.00	917.50	19.56
H-Class	3.36%	(7.64%)	1,000.00	923.60	16.20
High Yield Strategy Fund
A-Class	1.50%	5.81%	1,000.00	1,058.10	7.74
C-Class	2.25%	5.38%	1,000.00	1,053.80	11.53
H-Class	1.50%	5.77%	1,000.00	1,057.70	7.74
Inverse High Yield Strategy Fund
A-Class	1.51%	(5.41%)	1,000.00	945.90	7.37
C-Class	2.27%	(5.85%)	1,000.00	941.50	11.00
H-Class	1.51%	(4.79%)	1,000.00	952.10	7.39
U.S. Government Money Market Fund
Money Market Class	0.30%	0.00%	1,000.00	1,000.00	1.50

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.27%	5.00%	$ 1,000.00	$ 1,018.70	$ 6.43
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P 500® Fund
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.32%	5.00%	1,000.00	1,013.44	11.71
H-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
Inverse S&P 500® Strategy Fund
Investor Class	1.42%	5.00%	1,000.00	1,017.95	7.18
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.35%	5.00%	1,000.00	1,018.30	6.83
C-Class	2.10%	5.00%	1,000.00	1,014.59	10.56
H-Class	1.35%	5.00%	1,000.00	1,018.30	6.83
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.80	7.33
A-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
C-Class	2.46%	5.00%	1,000.00	1,012.78	12.36
H-Class	1.70%	5.00%	1,000.00	1,016.55	8.59
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.99	12.16
H-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.41%	5.00%	1,000.00	1,012.99	12.16
H-Class	1.66%	5.00%	1,000.00	1,016.75	8.39
Russell 2000® 1.5x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
Russell 2000® Fund
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.55%	5.00%	$ 1,000.00	$ 1,017.30	$ 7.84
C-Class	2.30%	5.00%	1,000.00	1,013.54	11.61
H-Class	1.55%	5.00%	1,000.00	1,017.30	7.84
Government Long Bond 1.2x Strategy Fund
Investor Class	0.97%	5.00%	1,000.00	1,020.21	4.91
A-Class	1.22%	5.00%	1,000.00	1,018.95	6.17
C-Class	1.97%	5.00%	1,000.00	1,015.19	9.95
H-Class	1.22%	5.00%	1,000.00	1,019.00	6.12
Inverse Government Long Bond Strategy Fund
Investor Class	3.04%	5.00%	1,000.00	1,009.88	15.27
A-Class	3.32%	5.00%	1,000.00	1,008.47	16.67
C-Class	4.08%	5.00%	1,000.00	1,004.66	20.45
H-Class	3.36%	5.00%	1,000.00	1,008.22	16.92
High Yield Strategy Fund
A-Class	1.50%	5.00%	1,000.00	1,017.55	7.59
C-Class	2.25%	5.00%	1,000.00	1,013.84	11.31
H-Class	1.50%	5.00%	1,000.00	1,017.55	7.59
Inverse High Yield Strategy Fund
A-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
C-Class	2.27%	5.00%	1,000.00	1,013.74	11.41
H-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
U.S. Government Money Market Fund
Money Market Class	0.30%	5.00%	1,000.00	1,023.56	1.52

1	This ratio represents annualized Net Expenses, which include interest expense related to securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 1.41%, 1.66%, 2.41% and 1.67% for the Investor Class, A-Class, C-Class and H-Class, respectively. Excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2016 to September 30, 2016.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

FUND PROFILE (Unaudited) September 30, 2016

NOVA FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	July 12, 1993
A-Class	March 31, 2004
C-Class	March 14, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	4.4%
Guggenheim Strategy Fund II	3.9%
Federal Farm Credit Bank	3.7%
Apple, Inc.	2.0%
Microsoft Corp.	1.4%
Exxon Mobil Corp.	1.2%
Amazon.com, Inc.	1.1%
Johnson & Johnson	1.0%
Facebook, Inc. — Class A	1.0%
Berkshire Hathaway, Inc. — Class B	0.9%
Top Ten Total	20.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
NOVA FUND

	Shares		Value
COMMON STOCKS† - 59.8%
Consumer, Non-cyclical - 14.3%
Johnson & Johnson		23,650	$	2,793,774
Procter & Gamble Co.		23,070		2,070,532
Pfizer, Inc.		52,434		1,775,939
Merck & Company, Inc.		23,904		1,491,849
Coca-Cola Co.		33,579		1,421,063
PepsiCo, Inc.		12,441		1,353,208
Philip Morris International, Inc.		13,410		1,303,720
UnitedHealth Group, Inc.		8,233		1,152,621
Amgen, Inc.		6,469		1,079,093
Altria Group, Inc.		16,890		1,067,955
Medtronic plc		11,946		1,032,134
Gilead Sciences, Inc.		11,407		902,521
AbbVie, Inc.		14,078		887,899
Allergan plc*		3,423		788,351
Bristol-Myers Squibb Co.		14,444		778,820
Celgene Corp.*		6,700		700,351
Eli Lilly & Co.		8,396		673,863
Biogen, Inc.*		1,894		592,879
Mondelez International, Inc. — Class A		13,447		590,322
Colgate-Palmolive Co.		7,706		571,323
Thermo Fisher Scientific, Inc.		3,408		542,077
Abbott Laboratories		12,707		537,379
Kraft Heinz Co.		5,150		460,977
Danaher Corp.		5,253		411,783
PayPal Holdings, Inc.*		9,702		397,491
Kimberly-Clark Corp.		3,109		392,169
Express Scripts Holding Co.*		5,448		384,248
Aetna, Inc.		3,032		350,044
Automatic Data Processing, Inc.		3,943		347,773
Reynolds American, Inc.		7,156		337,405
Becton Dickinson and Co.		1,841		330,883
General Mills, Inc.		5,160		329,621
McKesson Corp.		1,951		325,329
Stryker Corp.		2,686		312,677
Cigna Corp.		2,218		289,050
S&P Global, Inc.		2,281		288,683
Anthem, Inc.		2,275		285,080
Boston Scientific Corp.*		11,763		279,959
Ecolab, Inc.		2,269		276,183
Regeneron Pharmaceuticals, Inc.*		652		262,117
Constellation Brands, Inc. — Class A		1,531		254,897
Kroger Co.		8,203		243,465
Intuitive Surgical, Inc.*		333		241,368
Alexion Pharmaceuticals, Inc.*		1,938		237,483
Illumina, Inc.*		1,267		230,163
Humana, Inc.		1,289		228,011
Zimmer Biomet Holdings, Inc.		1,729		224,805
Zoetis, Inc.		4,279		222,551
Edwards Lifesciences Corp.*		1,840		221,830
Sysco Corp.		4,415		216,379
Cardinal Health, Inc.		2,753		213,908
Archer-Daniels-Midland Co.		5,029		212,073
Baxter International, Inc.		4,231		201,396
St. Jude Medical, Inc.		2,463		196,449
HCA Holdings, Inc.*		2,553		193,084
Tyson Foods, Inc. — Class A		2,571		191,977
Vertex Pharmaceuticals, Inc.*		2,142		186,804
Molson Coors Brewing Co. — Class B		1,592		174,802
Monster Beverage Corp.*		1,168		171,474
ConAgra Foods, Inc.		3,603		169,737
Estee Lauder Companies, Inc. — Class A		1,909		169,061
Kellogg Co.		2,180		168,885
Moody’s Corp.		1,446		156,573
Nielsen Holdings plc		2,903		155,514
Mylan N.V.*		3,977		151,603
Dr Pepper Snapple Group, Inc.		1,602		146,279
CR Bard, Inc.		635		142,418
Clorox Co.		1,118		139,951
Equifax, Inc.		1,032		138,887
JM Smucker Co.		1,006		136,353
AmerisourceBergen Corp. — Class A		1,563		126,259
Mead Johnson Nutrition Co. — Class A		1,596		126,100
Laboratory Corporation of America Holdings*		884		121,532
DENTSPLY SIRONA, Inc.		2,013		119,633
Hershey Co.		1,213		115,963
Henry Schein, Inc.*		707		115,227
Perrigo Company plc		1,238		114,305
Verisk Analytics, Inc. — Class A*		1,358		110,378
Church & Dwight Company, Inc.		2,227		106,718
Global Payments, Inc.		1,328		101,937
Quest Diagnostics, Inc.		1,202		101,725
McCormick & Company, Inc.		994		99,320
Centene Corp.*		1,476		98,833
Universal Health Services, Inc. — Class B		779		95,988
DaVita, Inc.*		1,431		94,546
Hologic, Inc.*		2,398		93,114
Campbell Soup Co.		1,681		91,951
Hormel Foods Corp.		2,335		88,567
Western Union Co.		4,216		87,777
Cintas Corp.		739		83,211
Varian Medical Systems, Inc.*		807		80,321
Whole Foods Market, Inc.		2,755		78,104
Cooper Companies, Inc.		421		75,468
Brown-Forman Corp. — Class B		1,576		74,765
Total System Services, Inc.		1,430		67,425
Mallinckrodt plc*		931		64,965
Avery Dennison Corp.		768		59,743
United Rentals, Inc.*		745		58,475
H&R Block, Inc.		1,894		43,846
Robert Half International, Inc.		1,125		42,593
Quanta Services, Inc.*		1,305		36,527
Endo International plc*		1,713		34,517
Patterson Companies, Inc.		719		33,031
Coty, Inc. — Class A*		599		14,077
Total Consumer, Non-cyclical				38,764,266
Financial - 10.1%
Berkshire Hathaway, Inc. — Class B*		16,413		2,371,186
JPMorgan Chase & Co.		31,223		2,079,139
Wells Fargo & Co.		39,254		1,738,167

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NOVA FUND

	Shares		Value
Bank of America Corp.		88,214	$	1,380,549
Visa, Inc. — Class A		16,307		1,348,589
Citigroup, Inc.		25,115		1,186,181
Mastercard, Inc. — Class A		8,289		843,572
U.S. Bancorp		13,907		596,471
Simon Property Group, Inc.		2,715		562,032
Goldman Sachs Group, Inc.		3,260		525,740
American International Group, Inc.		8,792		521,716
Chubb Ltd.		4,020		505,113
American Express Co.		6,708		429,580
MetLife, Inc.		9,498		421,995
American Tower Corp. — Class A		3,678		416,827
Morgan Stanley		12,725		407,964
PNC Financial Services Group, Inc.		4,248		382,702
BlackRock, Inc. — Class A		1,055		382,395
Bank of New York Mellon Corp.		9,229		368,053
Charles Schwab Corp.		10,407		328,549
Capital One Financial Corp.		4,375		314,256
Prudential Financial, Inc.		3,778		308,474
CME Group, Inc. — Class A		2,928		306,035
Marsh & McLennan Companies, Inc.		4,480		301,280
Public Storage		1,289		287,628
Travelers Companies, Inc.		2,492		285,459
Intercontinental Exchange, Inc.		1,029		277,171
Crown Castle International Corp.		2,918		274,905
BB&T Corp.		7,041		265,587
Aon plc		2,296		258,277
Aflac, Inc.		3,540		254,420
Prologis, Inc.		4,554		243,821
Welltower, Inc.		3,094		231,338
Allstate Corp.		3,211		222,137
Equinix, Inc.		614		221,194
State Street Corp.		3,169		220,657
Ventas, Inc.		3,036		214,433
AvalonBay Communities, Inc.		1,187		211,096
Weyerhaeuser Co.		6,472		206,716
Equity Residential		3,160		203,283
Discover Financial Services		3,489		197,303
Synchrony Financial		6,848		191,744
SunTrust Banks, Inc.		4,334		189,829
Boston Properties, Inc.		1,329		181,129
Progressive Corp.		5,030		158,445
M&T Bank Corp.		1,355		157,316
HCP, Inc.		4,041		153,356
Vornado Realty Trust		1,485		150,297
Realty Income Corp.		2,235		149,589
Willis Towers Watson plc		1,121		148,835
T. Rowe Price Group, Inc.		2,149		142,909
Hartford Financial Services Group, Inc.		3,335		142,805
General Growth Properties, Inc.		5,047		139,297
Ameriprise Financial, Inc.		1,395		139,179
Fifth Third Bancorp		6,625		135,548
Essex Property Trust, Inc.		566		126,048
Northern Trust Corp.		1,841		125,170
Digital Realty Trust, Inc.		1,269		123,245
Principal Financial Group, Inc.		2,312		119,091
KeyCorp		9,355		113,850
Citizens Financial Group, Inc.		4,490		110,948
Invesco Ltd.		3,543		110,790
Alliance Data Systems Corp.*		506		108,552
Franklin Resources, Inc.		3,037		108,026
Regions Financial Corp.		10,850		107,090
Kimco Realty Corp.		3,631		105,118
Host Hotels & Resorts, Inc.		6,418		99,928
Loews Corp.		2,390		98,349
Cincinnati Financial Corp.		1,295		97,669
Lincoln National Corp.		2,012		94,524
Federal Realty Investment Trust		613		94,359
SL Green Realty Corp.		867		93,723
Huntington Bancshares, Inc.		9,383		92,516
Extra Space Storage, Inc.		1,087		86,319
Macerich Co.		1,042		84,267
UDR, Inc.		2,309		83,101
XL Group Ltd.		2,377		79,939
Iron Mountain, Inc.		2,116		79,413
Arthur J Gallagher & Co.		1,530		77,831
CBRE Group, Inc. — Class A*		2,582		72,244
Unum Group		2,028		71,609
Comerica, Inc.		1,503		71,122
E*TRADE Financial Corp.*		2,366		68,898
Affiliated Managers Group, Inc.*		466		67,430
Nasdaq, Inc.		987		66,662
Apartment Investment & Management Co. — Class A		1,354		62,162
Torchmark Corp.		963		61,526
Zions Bancorporation		1,773		54,998
Assurant, Inc.		520		47,970
People’s United Financial, Inc.		2,688		42,524
Navient Corp.		2,740		39,648
Legg Mason, Inc.		796		26,650
Total Financial				27,455,577
Communications - 8.2%
Amazon.com, Inc.*		3,401		2,847,692
Facebook, Inc. — Class A*		20,081		2,575,791
AT&T, Inc.		53,180		2,159,640
Alphabet, Inc. — Class A*		2,548		2,048,745
Alphabet, Inc. — Class C*		2,554		1,985,199
Verizon Communications, Inc.		35,237		1,831,619
Cisco Systems, Inc.		43,479		1,379,154
Comcast Corp. — Class A		20,767		1,377,682
Walt Disney Co.		12,781		1,186,843
Priceline Group, Inc.*		429		631,269
Time Warner, Inc.		6,724		535,298
Charter Communications, Inc. — Class A*		1,874		505,924
Netflix, Inc.*		3,706		365,226
Yahoo!, Inc.*		7,569		326,224
eBay, Inc.*		9,077		298,633
Twenty-First Century Fox, Inc. — Class A		9,198		222,776
CBS Corp. — Class B		3,517		192,520
Omnicom Group, Inc.		2,045		173,825
Symantec Corp.		5,321		133,557
CenturyLink, Inc.		4,720		129,470

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NOVA FUND

	Shares		Value
Expedia, Inc.		1,042	$	121,622
Level 3 Communications, Inc.*		2,517		116,738
Viacom, Inc. — Class B		3,002		114,376
Motorola Solutions, Inc.		1,441		109,919
Twenty-First Century Fox, Inc. — Class B		4,211		104,180
Juniper Networks, Inc.		3,310		79,639
Interpublic Group of Companies, Inc.		3,464		77,420
F5 Networks, Inc.*		572		71,294
VeriSign, Inc.*		802		62,748
TripAdvisor, Inc.*		988		62,422
Scripps Networks Interactive, Inc. — Class A		822		52,189
Discovery Communications, Inc. — Class C*		1,938		50,989
News Corp. — Class A		3,290		45,994
Frontier Communications Corp.		10,140		42,182
TEGNA, Inc.		1,852		40,485
Discovery Communications, Inc. — Class A*		1,304		35,104
News Corp. — Class B		1,035		14,718
Total Communications				22,109,106
Technology – 8.0%
Apple, Inc.		46,580		5,265,868
Microsoft Corp.		67,362		3,880,051
Intel Corp.		40,897		1,543,861
International Business Machines Corp.		7,519		1,194,393
Oracle Corp.		26,016		1,021,908
QUALCOMM, Inc.		12,739		872,622
Accenture plc — Class A		5,382		657,519
Texas Instruments, Inc.		8,672		608,600
Broadcom Ltd.		3,419		589,846
Adobe Systems, Inc.*		4,307		467,481
salesforce.com, Inc.*		5,566		397,023
Hewlett Packard Enterprise Co.		14,365		326,804
NVIDIA Corp.		4,625		316,905
Applied Materials, Inc.		9,344		281,722
Activision Blizzard, Inc.		5,897		261,237
Cognizant Technology Solutions Corp. — Class A*		5,246		250,287
Intuit, Inc.		2,118		233,001
HP, Inc.		14,789		229,673
Electronic Arts, Inc.*		2,600		222,040
Fidelity National Information Services, Inc.		2,834		218,304
Fiserv, Inc.*		1,900		188,993
Analog Devices, Inc.		2,657		171,244
Paychex, Inc.		2,774		160,531
Cerner Corp.*		2,598		160,427
Micron Technology, Inc.*		8,976		159,593
Western Digital Corp.		2,457		143,660
Lam Research Corp.		1,385		131,173
Red Hat, Inc.*		1,565		126,499
Skyworks Solutions, Inc.		1,621		123,423
Linear Technology Corp.		2,072		122,849
Autodesk, Inc.*		1,687		122,021
Xilinx, Inc.		2,191		119,059
Microchip Technology, Inc.		1,861		115,643
Citrix Systems, Inc.*		1,346		114,706
Seagate Technology plc		2,581		99,498
KLA-Tencor Corp.		1,348		93,969
CA, Inc.		2,716		89,845
NetApp, Inc.		2,408		86,255
Akamai Technologies, Inc.*		1,510		80,015
Xerox Corp.		7,358		74,537
Qorvo, Inc.*		1,105		61,593
Dun & Bradstreet Corp.		313		42,762
Teradata Corp.*		1,127		34,937
CSRA, Inc.		1,259		33,867
Pitney Bowes, Inc.		1,604		29,129
Total Technology				21,525,373
Industrial - 5.7%
General Electric Co.		77,464		2,294,483
3M Co.		5,224		920,625
Honeywell International, Inc.		6,577		766,811
Union Pacific Corp.		7,199		702,118
United Technologies Corp.		6,728		683,565
Boeing Co.		5,015		660,676
United Parcel Service, Inc. — Class B		5,976		653,535
Lockheed Martin Corp.		2,182		523,069
Caterpillar, Inc.		5,050		448,289
General Dynamics Corp.		2,480		384,797
FedEx Corp.		2,112		368,924
Raytheon Co.		2,551		347,268
Illinois Tool Works, Inc.		2,762		330,998
Northrop Grumman Corp.		1,544		330,339
Emerson Electric Co.		5,563		303,240
Eaton Corporation plc		3,931		258,306
CSX Corp.		8,178		249,429
Norfolk Southern Corp.		2,537		246,241
Waste Management, Inc.		3,517		224,244
Deere & Co.		2,501		213,460
Corning, Inc.		8,963		211,975
TE Connectivity Ltd.		3,073		197,840
Amphenol Corp. — Class A		2,668		173,207
Cummins, Inc.		1,341		171,849
Stanley Black & Decker, Inc.		1,300		159,874
Roper Technologies, Inc.		875		159,661
Ingersoll-Rand plc		2,230		151,506
Parker-Hannifin Corp.		1,157		145,238
Rockwell Automation, Inc.		1,119		136,898
Agilent Technologies, Inc.		2,814		132,511
Vulcan Materials Co.		1,150		130,790
TransDigm Group, Inc.*		433		125,189
Ball Corp.		1,506		123,417
Waters Corp.*		697		110,468
WestRock Co.		2,174		105,396
Republic Services, Inc. — Class A		2,015		101,657
L-3 Communications Holdings, Inc.		668		100,688
Acuity Brands, Inc.		379		100,283
Dover Corp.		1,342		98,825
Harris Corp.		1,074		98,389
Martin Marietta Materials, Inc.		548		98,152

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NOVA FUND

	Shares		Value
Masco Corp.		2,854	$	97,921
AMETEK, Inc.		2,009		95,990
Mettler-Toledo International, Inc.*		228		95,721
Rockwell Collins, Inc.		1,122		94,629
Textron, Inc.		2,329		92,578
Pentair plc		1,440		92,506
Kansas City Southern		933		87,068
CH Robinson Worldwide, Inc.		1,234		86,948
Xylem, Inc.		1,549		81,245
Expeditors International of Washington, Inc.		1,565		80,629
Sealed Air Corp.		1,700		77,894
Fortune Brands Home & Security, Inc.		1,330		77,273
Snap-on, Inc.		502		76,284
Fluor Corp.		1,204		61,790
J.B. Hunt Transport Services, Inc.		760		61,666
Stericycle, Inc.*		735		58,903
Allegion plc		829		57,126
Flowserve Corp.		1,127		54,366
Jacobs Engineering Group, Inc.*		1,049		54,254
PerkinElmer, Inc.		946		53,080
Garmin Ltd.		996		47,918
FLIR Systems, Inc.		1,187		37,296
Ryder System, Inc.		462		30,469
Owens-Illinois, Inc.*		1,401		25,764
Total Industrial				15,423,548
Consumer, Cyclical - 5.6%
Home Depot, Inc.		10,681		1,374,432
Wal-Mart Stores, Inc.		13,102		944,917
McDonald’s Corp.		7,377		851,011
CVS Health Corp.		9,217		820,221
Starbucks Corp.		12,678		686,387
NIKE, Inc. — Class B		11,656		613,688
Walgreens Boots Alliance, Inc.		7,391		595,862
Costco Wholesale Corp.		3,787		577,556
Lowe’s Companies, Inc.		7,561		545,980
TJX Companies, Inc.		5,676		424,452
Ford Motor Co.		33,734		407,169
General Motors Co.		12,287		390,358
Target Corp.		4,969		341,271
Yum! Brands, Inc.		3,202		290,774
Delta Air Lines, Inc.		6,474		254,817
O’Reilly Automotive, Inc.*		820		229,690
Ross Stores, Inc.		3,428		220,420
Newell Brands, Inc.		4,168		219,487
Southwest Airlines Co.		5,362		208,528
AutoZone, Inc.*		252		193,622
Marriott International, Inc. — Class A		2,765		186,181
Carnival Corp.		3,742		182,684
PACCAR, Inc.		3,030		178,103
Delphi Automotive plc		2,358		168,173
American Airlines Group, Inc.		4,581		167,710
Dollar Tree, Inc.*		2,038		160,859
VF Corp.		2,868		160,751
Dollar General Corp.		2,241		156,848
L Brands, Inc.		2,077		146,989
United Continental Holdings, Inc.*		2,536		133,064
Genuine Parts Co.		1,287		129,279
Ulta Salon Cosmetics & Fragrance, Inc.*		507		120,656
Mohawk Industries, Inc.*		545		109,186
Royal Caribbean Cruises Ltd.		1,451		108,752
WW Grainger, Inc.		481		108,148
Chipotle Mexican Grill, Inc. — Class A*		252		106,722
Whirlpool Corp.		652		105,728
Fastenal Co.		2,498		104,366
Macy’s, Inc.		2,667		98,813
Advance Auto Parts, Inc.		636		94,840
LKQ Corp.*		2,655		94,146
Best Buy Company, Inc.		2,386		91,097
Mattel, Inc.		2,944		89,144
DR Horton, Inc.		2,929		88,456
CarMax, Inc.*		1,655		88,294
Coach, Inc.		2,411		88,146
Hanesbrands, Inc.		3,266		82,467
Harley-Davidson, Inc.		1,546		81,304
Foot Locker, Inc.		1,170		79,232
Tractor Supply Co.		1,155		77,789
Hasbro, Inc.		976		77,426
PVH Corp.		694		76,687
Goodyear Tire & Rubber Co.		2,269		73,289
Alaska Air Group, Inc.		1,064		70,075
Lennar Corp. — Class A		1,624		68,760
Michael Kors Holdings Ltd.*		1,461		68,360
Kohl’s Corp.		1,552		67,900
Tiffany & Co.		928		67,401
Darden Restaurants, Inc.		1,091		66,900
Wynn Resorts Ltd.		686		66,830
Wyndham Worldwide Corp.		950		63,964
Under Armour, Inc. — Class A*		1,585		61,308
BorgWarner, Inc.		1,741		61,248
Bed Bath & Beyond, Inc.		1,334		57,509
Under Armour, Inc. — Class C*		1,594		53,973
PulteGroup, Inc.		2,673		53,567
Leggett & Platt, Inc.		1,156		52,690
Nordstrom, Inc.		1,005		52,139
Harman International Industries, Inc.		603		50,923
Ralph Lauren Corp. — Class A		487		49,255
Signet Jewelers Ltd.		652		48,594
Staples, Inc.		5,622		48,068
The Gap, Inc.		1,894		42,123
AutoNation, Inc.*		574		27,960
Urban Outfitters, Inc.*		770		26,580
Total Consumer, Cyclical				15,232,098
Energy - 4.4%
Exxon Mobil Corp.		35,845		3,128,551
Chevron Corp.		16,307		1,678,316
Schlumberger Ltd.		12,022		945,410
Occidental Petroleum Corp.		6,604		481,564
ConocoPhillips		10,706		465,390
EOG Resources, Inc.		4,759		460,243
Kinder Morgan, Inc.		16,595		383,842
Halliburton Co.		7,444		334,087

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NOVA FUND

	Shares		Value
Phillips 66		3,842	$	309,473
Anadarko Petroleum Corp.		4,716		298,806
Pioneer Natural Resources Co.		1,465		271,977
Spectra Energy Corp.		6,061		259,108
Valero Energy Corp.		3,988		211,364
Apache Corp.		3,280		209,494
Devon Energy Corp.		4,526		199,642
Baker Hughes, Inc.		3,698		186,638
Marathon Petroleum Corp.		4,570		185,496
Williams Companies, Inc.		5,904		181,430
Concho Resources, Inc.*		1,228		168,666
Noble Energy, Inc.		3,714		132,738
Hess Corp.		2,327		124,774
National Oilwell Varco, Inc.		3,264		119,919
Marathon Oil Corp.		7,324		115,792
Cimarex Energy Co.		820		110,183
Equities Corp.		1,493		108,422
Cabot Oil & Gas Corp. — Class A		4,020		103,716
ONEOK, Inc.		1,819		93,478
Tesoro Corp.		1,027		81,708
Newfield Exploration Co.*		1,717		74,621
Range Resources Corp.		1,625		62,969
Helmerich & Payne, Inc.		934		62,858
Southwestern Energy Co.*		4,266		59,041
FMC Technologies, Inc.*		1,950		57,857
Murphy Oil Corp.		1,399		42,530
Chesapeake Energy Corp.*		5,641		35,369
Transocean Ltd.*		2,969		31,650
First Solar, Inc.*		663		26,182
Total Energy				11,803,304
Utilities - 2.0%
NextEra Energy, Inc.		4,037		493,805
Duke Energy Corp.		5,954		476,558
Southern Co.		8,460		433,998
Dominion Resources, Inc.		5,409		401,727
American Electric Power Company, Inc.		4,250		272,893
Exelon Corp.		7,978		265,588
PG&E Corp.		4,309		263,582
Sempra Energy		2,159		231,423
Edison International		2,816		203,456
PPL Corp.		5,861		202,615
Consolidated Edison, Inc.		2,631		198,114
Public Service Enterprise Group, Inc.		4,373		183,098
Xcel Energy, Inc.		4,391		180,646
WEC Energy Group, Inc.		2,728		163,353
Eversource Energy		2,742		148,562
DTE Energy Co.		1,551		145,282
FirstEnergy Corp.		3,676		121,602
Entergy Corp.		1,547		118,701
American Water Works Company, Inc.		1,537		115,029
Ameren Corp.		2,097		103,130
CMS Energy Corp.		2,411		101,286
SCANA Corp.		1,235		89,377
CenterPoint Energy, Inc.		3,723		86,485
Alliant Energy Corp.		1,965		75,279
AES Corp.		5,697		73,207
Pinnacle West Capital Corp.		960		72,950
NiSource, Inc.		2,785		67,146
NRG Energy, Inc.		2,725		30,547
Total Utilities				5,319,439
Basic Materials - 1.4%
EI du Pont de Nemours & Co.		7,558		506,160
Dow Chemical Co.		9,741		504,876
Monsanto Co.		3,783		386,623
Praxair, Inc.		2,465		297,846
Air Products & Chemicals, Inc.		1,871		281,286
PPG Industries, Inc.		2,302		237,935
LyondellBasell Industries N.V. — Class A		2,947		237,706
Sherwin-Williams Co.		694		192,002
Newmont Mining Corp.		4,586		180,184
International Paper Co.		3,554		170,521
Nucor Corp.		2,752		136,086
Alcoa, Inc.		11,371		115,302
Freeport-McMoRan, Inc.		10,563		114,714
International Flavors & Fragrances, Inc.		688		98,363
Eastman Chemical Co.		1,277		86,427
Albemarle Corp.		972		83,096
Mosaic Co.		3,027		74,040
FMC Corp.		1,157		55,929
CF Industries Holdings, Inc.		2,014		49,041
Total Basic Materials				3,808,137
Consumer Discretionary - 0.1%
Johnson Controls International plc		8,161		379,711
Information Technology - 0.0%
Fortive Corp.		2,599		132,289
Dell Technologies Incorporated - VMware Inc — Class V*		1		39
Total Information Technology				132,328
Diversified - 0.0%
Leucadia National Corp.		2,804		53,388
Total Common Stocks
(Cost $152,334,222)				162,006,275
MUTUAL FUNDS† - 8.3%
Guggenheim Strategy Fund I1		481,979		12,044,643
Guggenheim Strategy Fund II1		422,407		10,534,842
Total Mutual Funds
(Cost $22,468,825)				22,579,485
	Face Amount
FEDERAL AGENCY NOTES†† - 3.7%
Federal Farm Credit Bank2
0.73% due 09/14/173	$	10,000,000		10,015,380
Total Federal Agency Notes
(Cost $10,012,530)				10,015,380

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NOVA FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 3.0%
Farmer Mac2
0.66% due 12/09/16	$	8,000,000	$	7,996,128
Total Federal Agency Discount Notes
(Cost $7,989,880)				7,996,128
U.S. TREASURY BILLS† - 0.2%
United States Treasury Bill
0.00% due 10/13/16††,4,5		500,000		499,977
Total U.S. Treasury Bills
(Cost $499,987)				499,977
REPURCHASE AGREEMENTS††,6 - 23.1%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/167		37,550,042		37,550,042
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		24,984,144		24,984,144
Total Repurchase Agreements
(Cost $62,534,186)				62,534,186
Total Investments - 98.1%
(Cost $255,839,630)			$	265,631,431
Other Assets & Liabilities, net - 1.9%				5,159,225
Total Net Assets - 100.0%			$	270,790,656

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $25,490,950)		236	$	490,032
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2016 S&P 500 Index Swap 0.95%8, Terminating 10/27/16 (Notional Value $91,166,334)		42,046	$	926,186
BNP Paribas November 2016 S&P 500 Index Swap 0.78%8, Terminating 11/01/16 (Notional Value $83,179,822)		38,362		652,780
Barclays Bank plc October 2016 S&P 500 Index Swap 0.80%8, Terminating 10/27/16 (Notional Value $44,424,870)		20,489		(54,685	)
(Total Notional Value $218,771,026)			$	1,524,281

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	All or a portion of this security is pledged as futures collateral at September 30, 2016.
5	Zero coupon rate security.
6	Repurchase Agreements — See Note 5.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
8	Total Return based on S&P 500 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
NOVA FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	162,006,275	$	—	$	—	$	—	$	—	$	162,006,275
Equity Futures Contracts		—		490,032		—		—		—		490,032
Equity Index Swap Agreements		—		—		—		1,578,966		—		1,578,966
Federal Agency Discount Notes		—		—		7,996,128		—		—		7,996,128
Federal Agency Notes		—		—		10,015,380		—		—		10,015,380
Mutual Funds		22,579,485		—		—		—		—		22,579,485
Repurchase Agreements		—		—		62,534,186		—		—		62,534,186
U.S. Treasury Bills		—		—		499,977		—		—		499,977
Total	$	184,585,760	$	490,032	$	81,045,671	$	1,578,966	$	—	$	267,700,429
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	54,685	$	—	$	54,685

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $170,836,619)	$	180,517,760
Investments in affiliated issuers, at value (cost $22,468,825)		22,579,485
Repurchase agreements, at value (cost $62,534,186)		62,534,186
Total investments (cost $255,839,630)		265,631,431
Segregated cash with broker		5,374,710
Unrealized appreciation on swap agreements		1,578,966
Cash		2,583
Receivables:
Swap settlement		111
Variation margin		141,707
Securities sold		9,685
Fund shares sold		967,971
Dividends		199,642
Interest		4,086
Total assets		273,910,892
Liabilities:
Unrealized depreciation on swap agreements		54,685
Payable for:
Securities purchased		1,996,609
Fund shares redeemed		735,526
Management fees		141,074
Transfer agent and administrative fees		47,025
Portfolio accounting fees		18,652
Distribution and service fees		12,784
Miscellaneous		113,881
Total liabilities		3,120,236
Commitments and contingent liabilities (Note 13)		—
Net assets	$	270,790,656
Net assets consist of:
Paid in capital	$	234,460,793
Undistributed net investment income		272,166
Accumulated net realized gain on investments		24,251,583
Net unrealized appreciation on investments		11,806,114
Net assets	$	270,790,656
Investor Class:
Net assets	$	228,820,226
Capital shares outstanding		4,288,036
Net asset value per share	$	53.36
A-Class:
Net assets	$	15,383,991
Capital shares outstanding		307,915
Net asset value per share	$	49.96
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.45
C-Class:
Net assets	$	9,723,748
Capital shares outstanding		215,113
Net asset value per share	$	45.20
H-Class:
Net assets	$	16,862,691
Capital shares outstanding		337,845
Net asset value per share	$	49.91

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

NOVA FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $50)	$	1,353,894
Dividends from securities of affiliated issuers		179,116
Interest		98,888
Total investment income		1,631,898
Expenses:
Management fees		771,949
Transfer agent and administrative fees		257,316
Distribution and service fees:
A-Class		13,714
C-Class		47,468
H-Class		23,439
Portfolio accounting fees		102,714
Custodian fees		12,161
Trustees’ fees*		8,157
Line of credit fees		634
Miscellaneous		158,202
Total expenses		1,395,754
Net investment income		236,144
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	19,484,368
Investments in affiliated issuers		54,712
Swap agreements		7,288,690
Futures contracts		709,524
Net realized gain		27,537,294
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(12,187,959	)
Investments in affiliated issuers		109,759
Swap agreements		912,532
Futures contracts		325,968
Net change in unrealized appreciation (depreciation)		(10,839,700	)
Net realized and unrealized gain		16,697,594
Net increase in net assets resulting from operations	$	16,933,738

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

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	236,144		$	36,022
Net realized gain on investments		27,537,294			8,569,413
Net change in unrealized appreciation (depreciation) on investments		(10,839,700	)		(9,602,834	)
Net increase (decrease) in net assets resulting from operations		16,933,738			(997,399	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(220,226	)
Advisor Class		—			—	*
A-Class		—			(16,296	)
C-Class		—			(17,646	)
H-Class		—			(6,865	)
Total distributions to shareholders		—			(261,033	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		851,695,893			1,146,890,963
Advisor Class		—			42,136,814	*
A-Class		69,517,891			97,617,577
C-Class		1,449,020			5,328,959
H-Class		213,401,789			338,809,074
Distributions reinvested
Investor Class		—			211,470
Advisor Class		—			—	*
A-Class		—			16,174
C-Class		—			17,443
H-Class		—			6,864
Cost of shares redeemed
Investor Class		(801,226,103	)		(1,116,506,927	)
Advisor Class		—			(40,531,593	)*
A-Class		(68,526,456	)		(88,372,143	)
C-Class		(3,502,799	)		(6,024,829	)
H-Class		(212,426,470	)		(333,139,118	)
Conversion activity*
Advisor Class		—			(4,895,263	)
H-Class		—			4,895,263
Net increase from capital share transactions		50,382,765			46,460,728
Net increase in net assets		67,316,503			45,202,296
Net assets:
Beginning of period		203,474,153			158,271,857
End of period	$	270,790,656		$	203,474,153
Undistributed net investment income at end of period	$	272,166		$	36,022

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

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:
Shares sold
Investor Class		16,699,756			24,114,641
Advisor Class		—			945,322	*
A-Class		1,463,916			2,237,941
C-Class		33,437			129,164
H-Class		4,487,942			7,584,301
Shares issued from reinvestment of distributions
Investor Class		—			4,228
Advisor Class		—			—	*
A-Class		—			345
C-Class		—			408
H-Class		—			146
Shares redeemed
Investor Class		(15,763,180	)		(23,535,529	)
Advisor Class		—			(909,434	)*
A-Class		(1,451,696	)		(2,027,298	)
C-Class		(83,237	)		(146,842	)
H-Class		(4,452,696	)		(7,436,202	)
Conversion activity*
Advisor Class		—			(121,453	)
H-Class		—			117,885
Net increase in shares		934,242			957,623

* Effective September 30, 2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.

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

NOVA FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	49.18		$	49.42		$	42.15		$	32.05		$	26.82		$	24.59
Income (loss) from investment operations:
Net investment income (loss)b		.08			.07			.14			.14			.05			.08
Net gain (loss) on investments (realized and unrealized)		4.10			(.25	)		7.18			9.96			5.21			2.15
Total from investment operations		4.18			(.18	)		7.32			10.10			5.26			2.23
Less distributions from:
Net investment income		—			(.06	)		(.05	)		—			(.03	)		—
Total distributions		—			(.06	)		(.05	)		—			(.03	)		—
Net asset value, end of period	$	53.36		$	49.18		$	49.42		$	42.15		$	32.05		$	26.82
Total Returnc		8.50	%		(0.36	%)		17.36	%		31.51	%		19.62	%		9.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	228,820		$	164,820		$	136,800		$	103,254		$	52,785		$	54,598
Ratios to average net assets:
Net investment income (loss)		0.32	%		0.14	%		0.31	%		0.37	%		0.20	%		0.36	%
Total expensesd		1.27	%		1.25	%		1.27	%		1.28	%		1.26	%		1.26	%
Portfolio turnover rate		427	%		619	%		403	%		259	%		137	%		116	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	46.08		$	46.40		$	39.67		$	30.23		$	25.38		$	23.32
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.05	)		.02			.05			(.01	)		.01
Net gain (loss) on investments (realized and unrealized)		3.85			(.21	)		6.76			9.39			4.89			2.05
Total from investment operations		3.88			(.26	)		6.78			9.44			4.88			2.06
Less distributions from:
Net investment income		—			(.06	)		(.05	)		—			(.03	)		—
Total distributions		—			(.06	)		(.05	)		—			(.03	)		—
Net asset value, end of period	$	49.96		$	46.08		$	46.40		$	39.67		$	30.23		$	25.38
Total Returnc		8.42	%		(0.56	%)		17.09	%		31.23	%		19.28	%		8.79	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,384		$	13,626		$	3,930		$	1,237		$	1,189		$	1,472
Ratios to average net assets:
Net investment income (loss)		0.10	%		(0.11	%)		0.05	%		0.14	%		(0.04	%)		0.06	%
Total expensesd		1.52	%		1.51	%		1.52	%		1.53	%		1.50	%		1.51	%
Portfolio turnover rate		427	%		619	%		403	%		259	%		137	%		116	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	41.86		$	42.50		$	36.62		$	28.11		$	23.77		$	22.01
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.34	)		(.28	)		(.20	)		(.19	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		3.50			(.24	)		6.21			8.71			4.56			1.89
Total from investment operations		3.34			(.58	)		5.93			8.51			4.37			1.76
Less distributions from:
Net investment income		—			(.06	)		(.05	)		—			(.03	)		—
Total distributions		—			(.06	)		(.05	)		—			(.03	)		—
Net asset value, end of period	$	45.20		$	41.86		$	42.50		$	36.62		$	28.11		$	23.77
Total Returnc		7.98	%		(1.36	%)		16.19	%		30.27	%		18.39	%		8.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,724		$	11,090		$	11,993		$	10,394		$	8,705		$	8,829
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.83	%)		(0.70	%)		(0.62	%)		(0.79	%)		(0.62	%)
Total expensesd		2.27	%		2.26	%		2.27	%		2.28	%		2.25	%		2.26	%
Portfolio turnover rate		427	%		619	%		403	%		259	%		137	%		116	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	46.06		$	46.40		$	44.40
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.06	)		.02
Net gain (loss) on investments (realized and unrealized)		3.85			(.22	)		2.03
Total from investment operations		3.85			(.28	)		2.05
Less distributions from:
Net investment income		—			(.06	)		(.05	)
Total distributions		—			(.06	)		(.05	)
Net asset value, end of period	$	49.91		$	46.06		$	46.40
Total Returnc		8.36	%		(0.60	%)		4.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,863		$	13,938		$	1,692
Ratios to average net assets:
Net investment income (loss)		(0.02	%)		(0.14	%)		0.08	%
Total expensesd		1.52	%		1.51	%		1.51	%
Portfolio turnover rate		427	%		619	%		403	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since the commencement of operations of the Class.
f	Net investment income is less than $0.01 per share.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P 500^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the S&P 500^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	2.6%
Alphabet, Inc.	2.0%
Microsoft Corp.	1.9%
Exxon Mobil Corp.	1.6%
Amazon.com, Inc.	1.4%
Johnson & Johnson	1.4%
Facebook, Inc. — Class A	1.3%
Berkshire Hathaway, Inc. — Class B	1.2%
General Electric Co.	1.1%
AT&T, Inc.	1.1%
Top Ten Total	15.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 80.6%
Consumer, Non-cyclical - 19.3%
Johnson & Johnson		25,369	$	2,996,840
Procter & Gamble Co.		24,745		2,220,864
Pfizer, Inc.		56,242		1,904,917
Merck & Company, Inc.		25,639		1,600,130
Coca-Cola Co.		36,017		1,524,239
PepsiCo, Inc.		13,345		1,451,536
Philip Morris International, Inc.		14,384		1,398,412
UnitedHealth Group, Inc.		8,833		1,236,620
Amgen, Inc.		6,940		1,157,662
Altria Group, Inc.		18,118		1,145,601
Medtronic plc		12,814		1,107,129
Gilead Sciences, Inc.		12,236		968,112
AbbVie, Inc.		15,100		952,357
Allergan plc*		3,672		845,698
Bristol-Myers Squibb Co.		15,492		835,329
Celgene Corp.*		7,187		751,257
Eli Lilly & Co.		9,007		722,902
Biogen, Inc.*		2,033		636,390
Mondelez International, Inc. — Class A		14,423		633,169
Colgate-Palmolive Co.		8,267		612,915
Thermo Fisher Scientific, Inc.		3,656		581,523
Abbott Laboratories		13,631		576,455
Kraft Heinz Co.		5,525		494,542
Danaher Corp.		5,634		441,649
PayPal Holdings, Inc.*		10,407		426,375
Kimberly-Clark Corp.		3,335		420,677
Express Scripts Holding Co.*		5,844		412,177
Aetna, Inc.		3,253		375,559
Automatic Data Processing, Inc.		4,231		373,174
Reynolds American, Inc.		7,677		361,971
Becton Dickinson and Co.		1,974		354,787
General Mills, Inc.		5,536		353,640
McKesson Corp.		2,093		349,007
Stryker Corp.		2,881		335,377
Cigna Corp.		2,379		310,031
S&P Global, Inc.		2,448		309,819
Anthem, Inc.		2,440		305,756
Boston Scientific Corp.*		12,617		300,285
Ecolab, Inc.		2,433		296,145
Regeneron Pharmaceuticals, Inc.*		700		281,414
Constellation Brands, Inc. — Class A		1,643		273,543
Kroger Co.		8,800		261,184
Intuitive Surgical, Inc.*		357		258,764
Alexion Pharmaceuticals, Inc.*		2,081		255,006
Illumina, Inc.*		1,359		246,876
Humana, Inc.		1,382		244,462
Zimmer Biomet Holdings, Inc.		1,855		241,187
Zoetis, Inc.		4,592		238,830
Edwards Lifesciences Corp.*		1,975		238,106
Sysco Corp.		4,735		232,062
Cardinal Health, Inc.		2,954		229,526
Archer-Daniels-Midland Co.		5,396		227,549
Baxter International, Inc.		4,539		216,056
St. Jude Medical, Inc.		2,642		210,726
HCA Holdings, Inc.*		2,739		207,150
Tyson Foods, Inc. — Class A		2,759		206,015
Vertex Pharmaceuticals, Inc.*		2,297		200,321
Molson Coors Brewing Co. — Class B		1,709		187,648
Monster Beverage Corp.*		1,254		184,100
ConAgra Foods, Inc.		3,865		182,080
Estee Lauder Companies, Inc. — Class A		2,049		181,459
Kellogg Co.		2,339		181,202
Moody’s Corp.		1,551		167,942
Nielsen Holdings plc		3,115		166,871
Mylan N.V.*		4,266		162,620
Dr Pepper Snapple Group, Inc.		1,719		156,962
CR Bard, Inc.		681		152,735
Clorox Co.		1,200		150,216
Equifax, Inc.		1,106		148,845
JM Smucker Co.		1,080		146,383
AmerisourceBergen Corp. — Class A		1,678		135,549
Mead Johnson Nutrition Co. — Class A		1,712		135,265
Laboratory Corporation of America Holdings*		949		130,469
DENTSPLY SIRONA, Inc.		2,161		128,428
Hershey Co.		1,301		124,376
Henry Schein, Inc.*		758		123,539
Perrigo Company plc		1,329		122,707
Verisk Analytics, Inc. — Class A*		1,458		118,506
Church & Dwight Company, Inc.		2,389		114,481
Global Payments, Inc.		1,426		109,460
Quest Diagnostics, Inc.		1,289		109,088
McCormick & Company, Inc.		1,068		106,715
Centene Corp.*		1,583		105,998
Universal Health Services, Inc. — Class B		835		102,889
DaVita, Inc.*		1,535		101,417
Hologic, Inc.*		2,573		99,910
Campbell Soup Co.		1,803		98,624
Hormel Foods Corp.		2,506		95,053
Western Union Co.		4,522		94,148
Cintas Corp.		793		89,292
Varian Medical Systems, Inc.*		866		86,193
Whole Foods Market, Inc.		2,956		83,803
Cooper Companies, Inc.		452		81,026
Brown-Forman Corp. — Class B		1,691		80,221
Total System Services, Inc.		1,535		72,375
Mallinckrodt plc*		999		69,710
Avery Dennison Corp.		825		64,177
United Rentals, Inc.*		799		62,714
H&R Block, Inc.		2,032		47,041
Robert Half International, Inc.		1,207		45,697
Quanta Services, Inc.*		1,401		39,214
Endo International plc*		1,838		37,036
Patterson Companies, Inc.		773		35,512
Coty, Inc. — Class A*		644		15,134
Total Consumer, Non-cyclical				41,584,635
Financial - 13.6%
Berkshire Hathaway, Inc. — Class B*		17,604		2,543,250
JPMorgan Chase & Co.		33,492		2,230,231
Wells Fargo & Co.		42,105		1,864,410

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P 500® FUND

	Shares		Value
Bank of America Corp.		94,624	$	1,480,866
Visa, Inc. — Class A		17,492		1,446,589
Citigroup, Inc.		26,940		1,272,376
Mastercard, Inc. — Class A		8,892		904,939
U.S. Bancorp		14,917		639,790
Simon Property Group, Inc.		2,914		603,227
Goldman Sachs Group, Inc.		3,497		563,961
American International Group, Inc.		9,431		559,636
Chubb Ltd.		4,312		541,803
American Express Co.		7,195		460,768
MetLife, Inc.		10,189		452,697
American Tower Corp. — Class A		3,945		447,088
Morgan Stanley		13,650		437,619
PNC Financial Services Group, Inc.		4,557		410,541
BlackRock, Inc. — Class A		1,132		410,304
Bank of New York Mellon Corp.		9,900		394,812
Charles Schwab Corp.		11,163		352,416
Capital One Financial Corp.		4,692		337,026
Prudential Financial, Inc.		4,052		330,846
CME Group, Inc. — Class A		3,142		328,402
Marsh & McLennan Companies, Inc.		4,806		323,204
Public Storage		1,383		308,602
Travelers Companies, Inc.		2,674		306,307
Intercontinental Exchange, Inc.		1,105		297,643
Crown Castle International Corp.		3,130		294,877
BB&T Corp.		7,552		284,861
Aon plc		2,464		277,175
Aflac, Inc.		3,798		272,962
Prologis, Inc.		4,886		261,596
Welltower, Inc.		3,319		248,161
Allstate Corp.		3,445		238,325
Equinix, Inc.		660		237,765
State Street Corp.		3,399		236,672
Ventas, Inc.		3,258		230,113
AvalonBay Communities, Inc.		1,274		226,568
Weyerhaeuser Co.		6,943		221,759
Equity Residential		3,390		218,079
Discover Financial Services		3,743		211,667
Synchrony Financial		7,346		205,688
SunTrust Banks, Inc.		4,650		203,670
Boston Properties, Inc.		1,425		194,213
Progressive Corp.		5,396		169,974
M&T Bank Corp.		1,454		168,809
HCP, Inc.		4,335		164,513
Vornado Realty Trust		1,593		161,228
Realty Income Corp.		2,397		160,431
Willis Towers Watson plc		1,203		159,722
T. Rowe Price Group, Inc.		2,305		153,283
Hartford Financial Services Group, Inc.		3,579		153,253
General Growth Properties, Inc.		5,414		149,426
Ameriprise Financial, Inc.		1,497		149,356
Fifth Third Bancorp		7,106		145,389
Essex Property Trust, Inc.		607		135,179
Northern Trust Corp.		1,976		134,348
Digital Realty Trust, Inc.		1,362		132,277
Principal Financial Group, Inc.		2,481		127,796
KeyCorp		10,035		122,126
Citizens Financial Group, Inc.		4,817		119,028
Invesco Ltd.		3,802		118,889
Alliance Data Systems Corp.*		544		116,704
Franklin Resources, Inc.		3,259		115,923
Regions Financial Corp.		11,639		114,877
Kimco Realty Corp.		3,895		112,760
Host Hotels & Resorts, Inc.		6,885		107,199
Loews Corp.		2,563		105,467
Cincinnati Financial Corp.		1,389		104,758
Lincoln National Corp.		2,158		101,383
Federal Realty Investment Trust		657		101,132
SL Green Realty Corp.		932		100,749
Huntington Bancshares, Inc.		10,065		99,241
Extra Space Storage, Inc.		1,166		92,592
Macerich Co.		1,119		90,494
UDR, Inc.		2,476		89,111
XL Group Ltd.		2,550		85,757
Iron Mountain, Inc.		2,271		85,231
Arthur J Gallagher & Co.		1,641		83,478
CBRE Group, Inc. — Class A*		2,770		77,505
Unum Group		2,176		76,835
Comerica, Inc.		1,613		76,327
E*TRADE Financial Corp.*		2,538		73,907
Affiliated Managers Group, Inc.*		500		72,350
Nasdaq, Inc.		1,059		71,525
Apartment Investment & Management Co. — Class A		1,452		66,661
Torchmark Corp.		1,033		65,998
Zions Bancorporation		1,902		59,000
Assurant, Inc.		559		51,568
People’s United Financial, Inc.		2,884		45,625
Navient Corp.		2,940		42,542
Legg Mason, Inc.		855		28,625
Total Financial				29,453,855
Communications - 11.0%
Amazon.com, Inc.*		3,651		3,057,019
Facebook, Inc. — Class A*		21,539		2,762,807
AT&T, Inc.		57,045		2,316,598
Alphabet, Inc. — Class A*		2,734		2,198,300
Alphabet, Inc. — Class C*		2,740		2,129,775
Verizon Communications, Inc.		37,798		1,964,740
Cisco Systems, Inc.		46,637		1,479,326
Comcast Corp. — Class A		22,276		1,477,789
Walt Disney Co.		13,709		1,273,017
Priceline Group, Inc.*		461		678,357
Time Warner, Inc.		7,212		574,147
Charter Communications, Inc. — Class A*		2,010		542,640
Netflix, Inc.*		3,977		391,933
Yahoo!, Inc.*		8,120		349,972
eBay, Inc.*		9,736		320,314
Twenty-First Century Fox, Inc. — Class A		9,866		238,955
CBS Corp. — Class B		3,774		206,589
Omnicom Group, Inc.		2,193		186,405
Symantec Corp.		5,708		143,271
CenturyLink, Inc.		5,062		138,851

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P 500® FUND

	Shares		Value
Expedia, Inc.		1,118	$	130,493
Level 3 Communications, Inc.*		2,700		125,226
Viacom, Inc. — Class B		3,219		122,644
Motorola Solutions, Inc.		1,547		118,005
Twenty-First Century Fox, Inc. — Class B		4,516		111,726
Juniper Networks, Inc.		3,553		85,485
Interpublic Group of Companies, Inc.		3,715		83,030
F5 Networks, Inc.*		614		76,529
VeriSign, Inc.*		861		67,365
TripAdvisor, Inc.*		1,059		66,908
Scripps Networks Interactive, Inc. — Class A		883		56,062
Discovery Communications, Inc. — Class C*		2,080		54,725
News Corp. — Class A		3,528		49,321
Frontier Communications Corp.		10,878		45,252
TEGNA, Inc.		1,987		43,436
Discovery Communications, Inc. — Class A*		1,399		37,661
News Corp. — Class B		1,112		15,813
Total Communications				23,720,486
Technology - 10.7%
Apple, Inc.		49,965		5,648,544
Microsoft Corp.		72,254		4,161,831
Intel Corp.		43,867		1,655,980
International Business Machines Corp.		8,066		1,281,284
Oracle Corp.		27,906		1,096,148
QUALCOMM, Inc.		13,664		935,984
Accenture plc — Class A		5,772		705,165
Texas Instruments, Inc.		9,302		652,814
Broadcom Ltd.		3,668		632,803
Adobe Systems, Inc.*		4,620		501,454
salesforce.com, Inc.*		5,971		425,911
Hewlett Packard Enterprise Co.		15,408		350,532
NVIDIA Corp.		4,961		339,928
Applied Materials, Inc.		10,023		302,193
Activision Blizzard, Inc.		6,325		280,197
Cognizant Technology Solutions Corp. — Class A*		5,628		268,512
Intuit, Inc.		2,273		250,053
HP, Inc.		15,865		246,383
Electronic Arts, Inc.*		2,789		238,181
Fidelity National Information Services, Inc.		3,040		234,172
Fiserv, Inc.*		2,039		202,819
Analog Devices, Inc.		2,851		183,747
Paychex, Inc.		2,975		172,163
Cerner Corp.*		2,787		172,097
Micron Technology, Inc.*		9,629		171,204
Western Digital Corp.		2,636		154,126
Lam Research Corp.		1,486		140,739
Red Hat, Inc.*		1,680		135,794
Skyworks Solutions, Inc.		1,738		132,331
Linear Technology Corp.		2,223		131,802
Autodesk, Inc.*		1,811		130,990
Xilinx, Inc.		2,350		127,699
Microchip Technology, Inc.		1,996		124,031
Citrix Systems, Inc.*		1,445		123,143
Seagate Technology plc		2,770		106,784
KLA-Tencor Corp.		1,446		100,801
CA, Inc.		2,913		96,362
NetApp, Inc.		2,584		92,559
Akamai Technologies, Inc.*		1,622		85,950
Xerox Corp.		7,892		79,946
Qorvo, Inc.*		1,186		66,108
Dun & Bradstreet Corp.		337		46,041
Teradata Corp.*		1,209		37,479
CSRA, Inc.		1,350		36,315
Pitney Bowes, Inc.		1,721		31,253
Total Technology				23,090,352
Industrial - 7.7%
General Electric Co.		83,092		2,461,186
3M Co.		5,604		987,593
Honeywell International, Inc.		7,055		822,542
Union Pacific Corp.		7,723		753,224
United Technologies Corp.		7,217		733,247
Boeing Co.		5,380		708,761
United Parcel Service, Inc. — Class B		6,410		700,997
Lockheed Martin Corp.		2,341		561,185
Caterpillar, Inc.		5,418		480,955
General Dynamics Corp.		2,661		412,881
FedEx Corp.		2,265		395,650
Raytheon Co.		2,736		372,452
Illinois Tool Works, Inc.		2,963		355,087
Northrop Grumman Corp.		1,656		354,301
Emerson Electric Co.		5,969		325,369
Eaton Corporation plc		4,216		277,034
CSX Corp.		8,772		267,546
Norfolk Southern Corp.		2,722		264,197
Waste Management, Inc.		3,774		240,631
Deere & Co.		2,682		228,909
Corning, Inc.		9,615		227,395
TE Connectivity Ltd.		3,297		212,261
Amphenol Corp. — Class A		2,863		185,866
Cummins, Inc.		1,439		184,408
Stanley Black & Decker, Inc.		1,395		171,557
Roper Technologies, Inc.		940		171,522
Ingersoll-Rand plc		2,393		162,580
Parker-Hannifin Corp.		1,242		155,908
Rockwell Automation, Inc.		1,200		146,808
Agilent Technologies, Inc.		3,018		142,117
Vulcan Materials Co.		1,235		140,456
TransDigm Group, Inc.*		465		134,441
Ball Corp.		1,617		132,513
Waters Corp.*		747		118,392
WestRock Co.		2,332		113,055
Republic Services, Inc. — Class A		2,162		109,073
Acuity Brands, Inc.		408		107,957
L-3 Communications Holdings, Inc.		716		107,923
Dover Corp.		1,439		105,968
Harris Corp.		1,153		105,626
Martin Marietta Materials, Inc.		589		105,496

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P 500® FUND

	Shares		Value
Masco Corp.		3,062	$	105,057
Mettler-Toledo International, Inc.*		246		103,278
AMETEK, Inc.		2,156		103,014
Rockwell Collins, Inc.		1,205		101,630
Textron, Inc.		2,500		99,375
Pentair plc		1,545		99,251
Kansas City Southern		1,002		93,507
CH Robinson Worldwide, Inc.		1,323		93,219
Xylem, Inc.		1,661		87,119
Expeditors International of Washington, Inc.		1,679		86,502
Sealed Air Corp.		1,824		83,576
Fortune Brands Home & Security, Inc.		1,427		82,909
Snap-on, Inc.		540		82,058
Fluor Corp.		1,292		66,305
J.B. Hunt Transport Services, Inc.		815		66,129
Stericycle, Inc.*		789		63,230
Allegion plc		889		61,261
Flowserve Corp.		1,210		58,370
Jacobs Engineering Group, Inc.*		1,126		58,237
PerkinElmer, Inc.		1,014		56,896
Garmin Ltd.		1,068		51,381
FLIR Systems, Inc.		1,273		39,998
Ryder System, Inc.		496		32,711
Owens-Illinois, Inc.*		1,504		27,659
Total Industrial				16,547,741
Consumer, Cyclical - 7.6%
Home Depot, Inc.		11,456		1,474,158
Wal-Mart Stores, Inc.		14,054		1,013,574
McDonald’s Corp.		7,913		912,843
CVS Health Corp.		9,886		879,755
Starbucks Corp.		13,598		736,195
NIKE, Inc. — Class B		12,502		658,230
Walgreens Boots Alliance, Inc.		7,929		639,236
Costco Wholesale Corp.		4,062		619,496
Lowe’s Companies, Inc.		8,110		585,623
TJX Companies, Inc.		6,090		455,409
Ford Motor Co.		36,185		436,753
General Motors Co.		13,180		418,729
Target Corp.		5,330		366,064
Yum! Brands, Inc.		3,434		311,842
Delta Air Lines, Inc.		6,944		273,316
O’Reilly Automotive, Inc.*		880		246,497
Ross Stores, Inc.		3,677		236,431
Newell Brands, Inc.		4,472		235,496
Southwest Airlines Co.		5,751		223,656
AutoZone, Inc.*		271		208,220
Marriott International, Inc. — Class A		2,999		201,923
Carnival Corp.		4,015		196,012
PACCAR, Inc.		3,252		191,153
Delphi Automotive plc		2,529		180,368
American Airlines Group, Inc.		4,914		179,902
Dollar Tree, Inc.*		2,187		172,620
VF Corp.		3,077		172,465
Dollar General Corp.		2,403		168,186
L Brands, Inc.		2,228		157,676
United Continental Holdings, Inc.*		2,720		142,718
Genuine Parts Co.		1,381		138,722
Ulta Salon Cosmetics & Fragrance, Inc.*		544		129,462
Mohawk Industries, Inc.*		584		116,998
Royal Caribbean Cruises Ltd.		1,559		116,847
WW Grainger, Inc.		515		115,792
Chipotle Mexican Grill, Inc. — Class A*		270		114,345
Whirlpool Corp.		700		113,512
Fastenal Co.		2,679		111,929
Macy’s, Inc.		2,860		105,963
Advance Auto Parts, Inc.		683		101,849
LKQ Corp.*		2,848		100,990
Best Buy Company, Inc.		2,560		97,741
Mattel, Inc.		3,158		95,624
DR Horton, Inc.		3,142		94,888
CarMax, Inc.*		1,775		94,696
Coach, Inc.		2,587		94,581
Hanesbrands, Inc.		3,503		88,451
Harley-Davidson, Inc.		1,659		87,247
Foot Locker, Inc.		1,255		84,989
Tractor Supply Co.		1,240		83,514
Hasbro, Inc.		1,047		83,059
PVH Corp.		744		82,212
Goodyear Tire & Rubber Co.		2,433		78,586
Alaska Air Group, Inc.		1,142		75,212
Lennar Corp. — Class A		1,742		73,756
Michael Kors Holdings Ltd.*		1,567		73,320
Kohl’s Corp.		1,665		72,844
Tiffany & Co.		996		72,339
Darden Restaurants, Inc.		1,171		71,806
Wynn Resorts Ltd.		737		71,799
Wyndham Worldwide Corp.		1,019		68,609
Under Armour, Inc. — Class A*		1,701		65,795
BorgWarner, Inc.		1,868		65,716
Bed Bath & Beyond, Inc.		1,431		61,690
Under Armour, Inc. — Class C*		1,709		57,867
PulteGroup, Inc.		2,869		57,495
Leggett & Platt, Inc.		1,239		56,474
Nordstrom, Inc.		1,077		55,875
Harman International Industries, Inc.		647		54,639
Ralph Lauren Corp. — Class A		523		52,896
Signet Jewelers Ltd.		701		52,246
Staples, Inc.		6,031		51,565
The Gap, Inc.		2,032		45,192
AutoNation, Inc.*		615		29,957
Urban Outfitters, Inc.*		825		28,479
Total Consumer, Cyclical				16,342,114
Energy - 5.9%
Exxon Mobil Corp.		38,449		3,355,828
Chevron Corp.		17,492		1,800,277
Schlumberger Ltd.		12,896		1,014,141
Occidental Petroleum Corp.		7,084		516,565
ConocoPhillips		11,484		499,209
EOG Resources, Inc.		5,106		493,802
Kinder Morgan, Inc.		17,801		411,737
Halliburton Co.		7,984		358,322

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P 500® FUND

	Shares		Value
Phillips 66		4,121	$	331,947
Anadarko Petroleum Corp.		5,060		320,602
Pioneer Natural Resources Co.		1,573		292,027
Spectra Energy Corp.		6,501		277,918
Valero Energy Corp.		4,278		226,734
Apache Corp.		3,519		224,759
Devon Energy Corp.		4,855		214,154
Baker Hughes, Inc.		3,968		200,265
Marathon Petroleum Corp.		4,903		199,013
Williams Companies, Inc.		6,334		194,644
Concho Resources, Inc.*		1,318		181,027
Noble Energy, Inc.		3,985		142,424
Hess Corp.		2,496		133,836
National Oilwell Varco, Inc.		3,501		128,627
Marathon Oil Corp.		7,856		124,203
Cimarex Energy Co.		881		118,380
Equities Corp.		1,603		116,410
Cabot Oil & Gas Corp. — Class A		4,313		111,275
ONEOK, Inc.		1,952		100,313
Tesoro Corp.		1,102		87,675
Newfield Exploration Co.*		1,842		80,053
Range Resources Corp.		1,743		67,541
Helmerich & Payne, Inc.		1,002		67,434
Southwestern Energy Co.*		4,575		63,318
FMC Technologies, Inc.*		2,092		62,070
Murphy Oil Corp.		1,501		45,630
Chesapeake Energy Corp.*		6,051		37,940
Transocean Ltd.*		3,186		33,963
First Solar, Inc.*		712		28,117
Total Energy				12,662,180
Utilities - 2.6%
NextEra Energy, Inc.		4,331		529,767
Duke Energy Corp.		6,388		511,295
Southern Co.		9,076		465,599
Dominion Resources, Inc.		5,804		431,063
American Electric Power Company, Inc.		4,559		292,733
Exelon Corp.		8,558		284,896
PG&E Corp.		4,623		282,789
Sempra Energy		2,317		248,359
Edison International		3,023		218,412
PPL Corp.		6,287		217,342
Consolidated Edison, Inc.		2,823		212,572
Public Service Enterprise Group, Inc.		4,692		196,454
Xcel Energy, Inc.		4,710		193,769
WEC Energy Group, Inc.		2,926		175,209
Eversource Energy		2,942		159,398
DTE Energy Co.		1,664		155,867
FirstEnergy Corp.		3,942		130,401
Entergy Corp.		1,660		127,372
American Water Works Company, Inc.		1,650		123,486
Ameren Corp.		2,251		110,704
CMS Energy Corp.		2,587		108,680
SCANA Corp.		1,325		95,890
CenterPoint Energy, Inc.		3,994		92,781
Alliant Energy Corp.		2,109		80,796
AES Corp.		6,111		78,526
Pinnacle West Capital Corp.		1,031		78,346
NiSource, Inc.		2,987		72,017
NRG Energy, Inc.		2,924		32,778
Total Utilities				5,707,301
Basic Materials - 1.9%
EI du Pont de Nemours & Co.		8,107		542,926
Dow Chemical Co.		10,448		541,520
Monsanto Co.		4,058		414,727
Praxair, Inc.		2,645		319,595
Air Products & Chemicals, Inc.		2,008		301,883
PPG Industries, Inc.		2,470		255,299
LyondellBasell Industries N.V. — Class A		3,162		255,046
Sherwin-Williams Co.		744		205,835
Newmont Mining Corp.		4,920		193,307
International Paper Co.		3,813		182,948
Nucor Corp.		2,952		145,976
Alcoa, Inc.		12,196		123,667
Freeport-McMoRan, Inc.		11,331		123,055
International Flavors & Fragrances, Inc.		739		105,655
Eastman Chemical Co.		1,370		92,722
Albemarle Corp.		1,042		89,081
Mosaic Co.		3,247		79,422
FMC Corp.		1,241		59,990
CF Industries Holdings, Inc.		2,162		52,645
Total Basic Materials				4,085,299
Consumer Discretionary - 0.2%
Johnson Controls International plc		8,752		407,240
Information Technology - 0.1%
Fortive Corp.		2,788		141,924
Total Information Technology				141,924
Diversified - 0.0%
Leucadia National Corp.		3,007		57,253
Total Common Stocks
(Cost $130,824,926)				173,800,380
	Face Amount
FEDERAL AGENCY NOTES†† - 4.6%
Federal Farm Credit Bank1
0.73% due 09/14/172	$	10,000,000		10,015,380
Total Federal Agency Notes
(Cost $10,012,530)				10,015,380
FEDERAL AGENCY DISCOUNT NOTES†† - 3.7%
Farmer Mac1
0.66% due 12/09/16		8,000,000		7,996,128
Total Federal Agency Discount Notes
(Cost $7,989,880)				7,996,128

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P 500® FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,3 - 13.3%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/164	$	14,700,866	$	14,700,866
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		14,100,388		14,100,388
Total Repurchase Agreements
(Cost $28,801,254)				28,801,254
Total Investments - 102.2%
(Cost $177,628,590)			$	220,613,142
Other Assets & Liabilities, net - (2.2)%				(4,646,673	)
Total Net Assets - 100.0%			$	215,966,469

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $1,728,200)		16	$	14,225
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2016 S&P 500 Index Swap 0.95%5, Terminating 10/27/16 (Notional Value $14,888,124)		6,866	$	156,638
BNP Paribas November 2016 S&P 500 Index Swap 0.78%5, Terminating 11/01/16 (Notional Value $15,155,507)		6,990		118,938
Barclays Bank plc October 2016 S&P 500 Index Swap 0.80%5, Terminating 10/27/16 (Notional Value $10,139,498)		4,676		(10,380	)
(Total Notional Value $40,183,129)			$	265,196

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Variable rate security. Rate indicated is rate effective at September 30, 2016.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
5	Total Return based on S&P 500 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P 500® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	173,800,380	$	—	$	—	$	—	$	—	$	173,800,380
Equity Futures Contracts		—		14,225		—		—		—		14,225
Equity Index Swap Agreements		—		—		—		275,576		—		275,576
Federal Agency Discount Notes		—		—		7,996,128		—		—		7,996,128
Federal Agency Notes		—		—		10,015,380		—		—		10,015,380
Repurchase Agreements		—		—		28,801,254		—		—		28,801,254
Total	$	173,800,380	$	14,225	$	46,812,762	$	275,576	$	—	$	220,902,943
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	10,380	$	—	$	10,380

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $148,827,336)	$	191,811,888
Repurchase agreements, at value (cost $28,801,254)		28,801,254
Total investments (cost $177,628,590)		220,613,142
Segregated cash with broker		1,429,200
Unrealized appreciation on swap agreements		275,576
Cash		3,195
Receivables:
Swap settlement		44,123
Variation margin		15,513
Securities sold		6,976,937
Fund shares sold		816,601
Dividends		192,672
Interest		3,743
Total assets		230,370,702
Liabilities:
Unrealized depreciation on swap agreements		10,380
Payable for:
Fund shares redeemed		13,905,873
Management fees		132,679
Distribution and service fees		53,973
Transfer agent and administrative fees		44,226
Portfolio accounting fees		26,536
Securities purchased		15,718
Miscellaneous		214,848
Total liabilities		14,404,233
Commitments and contingent liabilities (Note 13)		—
Net assets	$	215,966,469
Net assets consist of:
Paid in capital	$	169,623,939
Undistributed net investment income		83,300
Accumulated net realized gain on investments		2,995,257
Net unrealized appreciation on investments		43,263,973
Net assets	$	215,966,469
A-Class:
Net assets	$	26,889,480
Capital shares outstanding		639,635
Net asset value per share	$	42.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	44.14
C-Class:
Net assets	$	15,902,651
Capital shares outstanding		411,838
Net asset value per share	$	38.61
H-Class:
Net assets	$	173,174,338
Capital shares outstanding		4,119,787
Net asset value per share	$	42.03

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $136)	$	1,984,778
Interest		110,762
Total investment income		2,095,540
Expenses:
Management fees		932,132
Transfer agent and administrative fees		310,711
Distribution and service fees:
A-Class		38,950
C-Class		78,633
H-Class		252,105
Portfolio accounting fees		186,429
Custodian fees		14,664
Trustees’ fees*		11,966
Miscellaneous		186,650
Total expenses		2,012,240
Net investment income		83,300
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		25,496,338
Swap agreements		1,796,786
Futures contracts		848,586
Net realized gain		28,141,710
Net change in unrealized appreciation (depreciation) on:
Investments		(15,772,116	)
Swap agreements		(166,449	)
Futures contracts		(260,103	)
Net change in unrealized appreciation (depreciation)		(16,198,668	)
Net realized and unrealized gain		11,943,042
Net increase in net assets resulting from operations	$	12,026,342

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

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

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	83,300		$	(65,779	)
Net realized gain on investments		28,141,710			24,739,527
Net change in unrealized appreciation (depreciation) on investments		(16,198,668	)		(38,842,371	)
Net increase (decrease) in net assets resulting from operations		12,026,342			(14,168,623	)
Distributions to shareholders from:
Net investment income
A-Class		—			(6,128	)
C-Class		—			(5,127	)
H-Class		—			(73,343	)
Net realized gains
A-Class		—			(964,527	)
C-Class		—			(806,970	)
H-Class		—			(11,544,030	)
Total distributions to shareholders		—			(13,400,125	)
Capital share transactions:
Proceeds from sale of shares
A-Class		32,634,261			164,205,961
C-Class		11,194,225			36,973,427
H-Class		667,789,577			1,458,575,350
Distributions reinvested
A-Class		—			885,581
C-Class		—			784,294
H-Class		—			11,569,754
Cost of shares redeemed
A-Class		(46,903,492	)		(153,213,908	)
C-Class		(11,787,562	)		(41,974,574	)
H-Class		(733,866,928	)		(1,468,966,601	)
Net increase (decrease) from capital share transactions		(80,939,919	)		8,839,284
Net decrease in net assets		(68,913,577	)		(18,729,464	)
Net assets:
Beginning of period		284,880,046			303,609,510
End of period	$	215,966,469		$	284,880,046
Undistributed net investment income at end of period	$	83,300		$	—
Capital share activity:
Shares sold
A-Class		811,811			4,121,399
C-Class		298,012			995,592
H-Class		16,326,536			36,101,253
Shares issued from reinvestment of distributions
A-Class		—			22,217
C-Class		—			21,289
H-Class		—			290,260
Shares redeemed
A-Class		(1,170,812	)		(3,821,927	)
C-Class		(312,633	)		(1,134,175	)
H-Class		(17,964,906	)		(36,783,666	)
Net decrease in shares		(2,011,992	)		(187,758	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	39.85		$	41.40		$	37.78		$	31.55		$	28.20		$	26.41
Income (loss) from investment operations:
Net investment income (loss)b		.03			.03			.04			.07			.06			.01
Net gain (loss) on investments (realized and unrealized)		2.16			—			4.08			6.20			3.36			1.78
Total from investment operations		2.19			.03			4.12			6.27			3.42			1.79
Less distributions from:
Net investment income		—			(.01	)		(.02	)		(.04	)		(.07	)		—
Net realized gains		—			(1.57	)		(.48	)		—			—			—
Total distributions		—			(1.58	)		(.50	)		(.04	)		(.07	)		—
Net asset value, end of period	$	42.04		$	39.85		$	41.40		$	37.78		$	31.55		$	28.20
Total Returnc		5.50	%		0.08	%		10.90	%		19.87	%		12.16	%		6.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	26,889		$	39,793		$	28,022		$	28,028		$	12,014		$	13,413
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.02	%		0.11	%		0.19	%		0.22	%		0.05	%
Total expenses		1.57	%		1.55	%		1.59	%		1.57	%		1.50	%		1.51	%
Portfolio turnover rate		68	%		181	%		256	%		157	%		76	%		196	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	36.74		$	38.58		$	35.51		$	29.87		$	26.91		$	25.41
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.26	)		(.23	)		(.19	)		(.14	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		1.99			—			3.80			5.87			3.17			1.70
Total from investment operations		1.87			(.26	)		3.57			5.68			3.03			1.50
Less distributions from:
Net investment income		—			(.01	)		(.02	)		(.04	)		(.07	)		—
Net realized gains		—			(1.57	)		(.48	)		—			—			—
Total distributions		—			(1.58	)		(.50	)		(.04	)		(.07	)		—
Net asset value, end of period	$	38.61		$	36.74		$	38.58		$	35.51		$	29.87		$	26.91
Total Returnc		5.09	%		(0.67	%)		10.04	%		19.01	%		11.29	%		5.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,903		$	15,667		$	20,977		$	16,182		$	10,231		$	10,110
Ratios to average net assets:
Net investment income (loss)		(0.64	%)		(0.70	%)		(0.62	%)		(0.59	%)		(0.52	%)		(0.80	%)
Total expenses		2.32	%		2.31	%		2.34	%		2.32	%		2.28	%		2.26	%
Portfolio turnover rate		68	%		181	%		256	%		157	%		76	%		196	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (continued)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	39.84		$	41.40		$	37.78		$	31.55		$	28.20		$	26.39
Income (loss) from investment operations:
Net investment income (loss)b		.02			.03			.05			.05			.07			(.02	)
Net gain (loss) on investments (realized and unrealized)		2.17			(.01	)		4.07			6.22			3.35			1.83
Total from investment operations		2.19			.02			4.12			6.27			3.42			1.81
Less distributions from:
Net investment income		—			(.01	)		(.02	)		(.04	)		(.07	)		—
Net realized gains		—			(1.57	)		(.48	)		—			—			—
Total distributions		—			(1.58	)		(.50	)		(.04	)		(.07	)		—
Net asset value, end of period	$	42.03		$	39.84		$	41.40		$	37.78		$	31.55		$	28.20
Total Returnc		5.50	%		0.06	%		10.90	%		19.87	%		12.16	%		6.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	173,174		$	229,420		$	254,610		$	255,912		$	265,358		$	240,847
Ratios to average net assets:
Net investment income (loss)		0.11	%		0.07	%		0.12	%		0.15	%		0.24	%		(0.07	%)
Total expenses		1.57	%		1.55	%		1.58	%		1.56	%		1.50	%		1.50	%
Portfolio turnover rate		68	%		181	%		256	%		157	%		76	%		196	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

INVERSE S&P 500^® STRATEGY FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	January 7, 1994
A-Class	March 31, 2004
C-Class	March 15, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.7%
Guggenheim Strategy Fund I	6.4%
Total	13.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 13.0%
Guggenheim Strategy Fund II1		356,875	$	8,900,469
Guggenheim Strategy Fund I1		338,146		8,450,262
Total Mutual Funds
(Cost $17,244,306)				17,350,731
	Face Amount
FEDERAL AGENCY NOTES†† - 55.2%
Federal Farm Credit Bank2
0.65% due 08/10/183	$	35,000,000		34,977,601
0.55% due 12/08/173		600,000		600,120
Total Federal Farm Credit Bank				35,577,721
Federal Home Loan Bank2
0.56% due 12/20/173		15,000,000		14,989,155
0.63% due 05/17/183		7,000,000		6,994,862
Total Federal Home Loan Bank				21,984,017
Farmer Mac
5.13% due 04/19/172		8,000,000		8,193,600
Freddie Mac4
0.80% due 10/27/17		7,500,000		7,497,345
Total Federal Agency Notes
(Cost $73,277,046)				73,252,683
FEDERAL AGENCY DISCOUNT NOTES†† - 7.5%
Federal Home Loan Bank2
0.53% due 03/10/17		10,000,000		9,982,880
Total Federal Agency Discount Notes
(Cost $9,976,533)				9,982,880
REPURCHASE AGREEMENTS††,5 - 23.6%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/166		24,306,857		24,306,857

HSBC Group issued 09/30/16 at 0.38% due 10/03/16		7,110,336		7,110,336
Total Repurchase Agreements
(Cost $31,417,193)				31,417,193
Total Investments - 99.3%
(Cost $131,915,078)			$	132,003,487
Other Assets & Liabilities, net - 0.7%				955,575
Total Net Assets - 100.0%			$	132,959,062
	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2016 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $2,268,263)		21	$	(10,776	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2016 S&P 500 Index Swap 0.65%7, Terminating 10/27/16 (Notional Value $7,138,444)		3,292	$	(12,510	)
BNP Paribas November 2016 S&P 500 Index Swap 0.28%7, Terminating 11/01/16 (Notional Value $2,329,212)		1,074		(18,331	)
Goldman Sachs International October 2016 S&P 500 Index Swap 0.85%7, Terminating 10/27/16 (Notional Value $119,366,933)		55,052		(1,247,274	)
(Total Notional Value $128,834,589)			$	(1,278,115	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
5	Repurchase Agreements — See Note 5.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
7	Total Return based on S&P 500 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE S&P 500® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Federal Agency Discount Notes	$	—	$	—	$	9,982,880	$	—	$	—	$	9,982,880
Federal Agency Notes		—		—		73,252,683		—		—		73,252,683
Mutual Funds		17,350,731		—		—		—		—		17,350,731
Repurchase Agreements		—		—		31,417,193		—		—		31,417,193
Total	$	17,350,731	$	—	$	114,652,756	$	—	$	—	$	132,003,487
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Futures Contracts	$	—	$	10,776	$	—	$	—	$	—	$	10,776
Equity Index Swap Agreements		—		—		—		1,278,115		—		1,278,115
Total	$	—	$	10,776	$	—	$	1,278,115	$	—	$	1,288,891

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $83,253,579)	$	83,235,563
Investments in affiliated issuers, at value (cost $17,244,306)		17,350,731
Repurchase agreements, at value (cost $31,417,193)		31,417,193
Total investments (cost $131,915,078)		132,003,487
Segregated cash with broker		638,200
Receivables:
Fund shares sold		1,810,740
Dividends		26,914
Interest		251,636
Total assets		134,730,977
Liabilities:
Unrealized depreciation on swap agreements		1,278,115
Payable for:
Fund shares redeemed		247,933
Management fees		100,159
Swap settlement		35,526
Transfer agent and administrative fees		27,822
Variation margin		12,337
Portfolio accounting fees		11,129
Distribution and service fees		10,544
Miscellaneous		48,350
Total liabilities		1,771,915
Commitments and contingent liabilities (Note 13)		—
Net assets	$	132,959,062
Net assets consist of:
Paid in capital	$	484,690,035
Accumulated net investment loss		(1,053,306	)
Accumulated net realized loss on investments		(349,477,185	)
Net unrealized depreciation on investments		(1,200,482	)
Net assets	$	132,959,062
Investor Class:
Net assets	$	107,907,097
Capital shares outstanding*		1,390,382
Net asset value per share*	$	77.60
A-Class:
Net assets	$	12,033,871
Capital shares outstanding*		167,070
Net asset value per share*	$	72.03
Maximum offering price per share (Net asset value divided by 95.25%)*	$	75.62
C-Class:
Net assets	$	8,582,297
Capital shares outstanding*		130,470
Net asset value per share*	$	65.78
H-Class:
Net assets	$	4,435,797
Capital shares outstanding*		61,567
Net asset value per share*	$	72.04

* The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Interest	$	289,950
Dividends from securities of affiliated issuers		282,411
Total investment income		572,361
Expenses:
Management fees		765,012
Transfer agent and administrative fees		212,503
Distribution and service fees:
A-Class		16,695
C-Class		42,808
H-Class		7,968
Portfolio accounting fees		85,000
Custodian fees		9,997
Trustees’ fees*		8,221
Miscellaneous		126,756
Total expenses		1,274,960
Net investment loss		(702,599	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	32,042
Investments in affiliated issuers		69,777
Swap agreements		(10,664,125	)
Futures contracts		(1,807,306	)
Net realized loss		(12,369,612	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		10,224
Investments in affiliated issuers		225,138
Swap agreements		(98,977	)
Futures contracts		(12,114	)
Net change in unrealized appreciation (depreciation)		124,271
Net realized and unrealized loss		(12,245,341	)
Net decrease in net assets resulting from operations	$	(12,947,940	)

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

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(702,599	)	$	(1,289,467	)
Net realized loss on investments		(12,369,612	)		(16,589,035	)
Net change in unrealized appreciation (depreciation) on investments		124,271			(1,016,491	)
Net decrease in net assets resulting from operations		(12,947,940	)		(18,894,993	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		125,766,661			437,076,905
Advisor Class		—			17,264,802
A-Class		27,898,445			56,820,759
C-Class		6,636,001			16,209,864
H-Class		36,589,737			93,034,530
Cost of shares redeemed
Investor Class		(161,003,405	)		(328,788,115	)
Advisor Class		—			(8,791,665	)
A-Class		(23,892,363	)		(51,421,612	)
C-Class		(6,769,711	)		(11,608,019	)
H-Class		(38,680,876	)		(107,318,749	)
Conversion activity*
Advisor Class		—			(10,823,213	)
H-Class		—			10,823,213
Net increase (decrease) from capital share transactions		(33,455,511	)		112,478,700
Net increase (decrease) in net assets		(46,403,451	)		93,583,707
Net assets:
Beginning of period		179,362,513			85,778,806
End of period	$	132,959,062		$	179,362,513
Accumulated net investment loss at end of period	$	(1,053,306	)	$	(350,707	)
Capital share activity:**
Shares sold
Investor Class		1,561,673			4,893,922
Advisor Class		—			211,392
A-Class		365,809			685,595
C-Class		99,607			217,622
H-Class		482,896			1,134,310
Shares redeemed
Investor Class		(2,019,257	)		(3,739,882	)
Advisor Class		—			(107,453	)
A-Class		(318,607	)		(624,084	)
C-Class		(99,723	)		(155,015	)
H-Class		(516,165	)		(1,326,748	)
Conversion activity*
Advisor Class		—			(129,908	)
H-Class		—			126,804
Net increase (decrease) in shares		(2,662,603	)		7,119,325

*	Effective September 30, 2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.
**	Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	83.09		$	87.54		$	100.90		$	126.16		$	147.65		$	171.00
Income (loss) from investment operations:
Net investment income (loss)b		.30			(.78	)		(1.02	)		(1.50	)		(1.80	)		(2.28	)
Net gain (loss) on investments (realized and unrealized)		(5.79	)		(3.67	)		(12.34	)		(23.76	)		(19.69	)		(21.07	)
Total from investment operations		(5.49	)		(4.45	)		(13.36	)		(25.26	)		(21.49	)		(23.35	)
Net asset value, end of period	$	77.60		$	83.09		$	87.54		$	100.90		$	126.16		$	147.65
Total Returnc		(6.64	%)		(5.07	%)		(13.26	%)		(20.02	%)		(14.55	%)		(13.65	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	107,907		$	153,544		$	60,745		$	79,172		$	106,158		$	112,334
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(0.91	%)		(1.07	%)		(1.35	%)		(1.27	%)		(1.31	%)
Total expensesd		1.42	%		1.41	%		1.41	%		1.42	%		1.41	%		1.41	%
Portfolio turnover rate		42	%		63	%		103	%		—			—			—

A-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	77.21		$	81.54		$	94.27		$	118.13		$	138.59		$	160.92
Income (loss) from investment operations:
Net investment income (loss)b		.36			(.96	)		(1.14	)		(1.68	)		(2.04	)		(2.52	)
Net gain (loss) on investments (realized and unrealized)		(5.54	)		(3.37	)		(11.59	)		(22.18	)		(18.42	)		(19.81	)
Total from investment operations		(5.18	)		(4.33	)		(12.73	)		(23.86	)		(20.46	)		(22.33	)
Net asset value, end of period	$	72.03		$	77.21		$	81.54		$	94.27		$	118.13		$	138.59
Total Returnc		(6.76	%)		(5.30	%)		(13.49	%)		(20.21	%)		(14.76	%)		(13.87	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,034		$	9,256		$	4,758		$	5,468		$	5,912		$	7,915
Ratios to average net assets:
Net investment income (loss)		(1.00	%)		(1.18	%)		(1.32	%)		(1.58	%)		(1.52	%)		(1.56	%)
Total expensesd		1.67	%		1.66	%		1.66	%		1.68	%		1.65	%		1.66	%
Portfolio turnover rate		42	%		63	%		103	%		—			—			—

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	70.79		$	75.34		$	87.73		$	110.78		$	130.97		$	153.20
Income (loss) from investment operations:
Net investment income (loss)b		.60			(1.44	)		(1.68	)		(2.28	)		(2.88	)		(3.54	)
Net gain (loss) on investments (realized and unrealized)		(5.61	)		(3.11	)		(10.71	)		(20.77	)		(17.31	)		(18.69	)
Total from investment operations		(5.01	)		(4.55	)		(12.39	)		(23.05	)		(20.19	)		(22.23	)
Net asset value, end of period	$	65.78		$	70.79		$	75.34		$	87.73		$	110.78		$	130.97
Total Returnc		(7.12	%)		(6.05	%)		(14.09	%)		(20.80	%)		(15.44	%)		(14.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,582		$	9,244		$	5,121		$	6,177		$	7,041		$	7,870
Ratios to average net assets:
Net investment income (loss)		(1.75	%)		(1.93	%)		(2.07	%)		(2.34	%)		(2.27	%)		(2.31	%)
Total expensesd		2.42	%		2.41	%		2.41	%		2.42	%		2.40	%		2.42	%
Portfolio turnover rate		42	%		63	%		103	%		—			—			—

H-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Period Ended March 31, 2015e,f
Per Share Data
Net asset value, beginning of period	$	77.17		$	81.54		$	86.10
Income (loss) from investment operations:
Net investment income (loss)b		.36			(.90	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(5.49	)		(3.47	)		(4.02	)
Total from investment operations		(5.13	)		(4.37	)		(4.56	)
Net asset value, end of period	$	72.04		$	77.17		$	81.54
Total Returnc		(6.61	%)		(5.37	%)		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,436		$	7,319		$	13,085
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(1.08	%)		(1.27	%)
Total expensesd		1.67	%		1.67	%		1.60	%
Portfolio turnover rate		42	%		63	%		103	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover table rate stated is for the entire period of the Fund, not since the commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

MONTHLY REBALANCE NASDAQ-100 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a calendar month basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time different than a full calendar month.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	November 28, 2014
C-Class	November 28, 2014
H-Class	November 28, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	8.2%
Microsoft Corp.	6.1%
Guggenheim Strategy Fund II	5.8%
Guggenheim Strategy Fund I	5.7%
Amazon.com, Inc.	5.4%
Facebook, Inc. — Class A	4.0%
Alphabet, Inc. — Class C	3.6%
Alphabet, Inc. — Class A	3.2%
Intel Corp.	2.4%
Cisco Systems, Inc.	2.2%
Top Ten Total	46.6%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 76.3%
Communications - 28.4%
Amazon.com, Inc.*		3,460	$	2,897,092
Facebook, Inc. — Class A*		16,955		2,174,818
Alphabet, Inc. — Class C*		2,508		1,949,442
Alphabet, Inc. — Class A*		2,152		1,730,337
Cisco Systems, Inc.		36,711		1,164,473
Comcast Corp. — Class A		17,534		1,163,206
Charter Communications, Inc. — Class A*		1,977		533,731
Priceline Group, Inc.*		361		531,207
Baidu, Inc. ADR*		2,000		364,140
Netflix, Inc.*		3,129		308,363
Yahoo!, Inc.*		6,947		299,416
T-Mobile US, Inc.*		6,005		280,554
eBay, Inc.*		8,240		271,095
Twenty-First Century Fox, Inc. — Class A		7,766		188,093
JD.com, Inc. ADR*		6,685		174,412
Liberty Global plc*		4,706		155,486
Sirius XM Holdings, Inc.*		35,603		148,465
Twenty-First Century Fox, Inc. — Class B		5,828		144,185
Ctrip.com International Ltd. ADR*		2,731		127,183
Expedia, Inc.		1,001		116,837
Symantec Corp.		4,493		112,774
Viacom, Inc. — Class B		2,534		96,545
DISH Network Corp. — Class A*		1,653		90,551
Vodafone Group plc ADR		2,920		85,118
Liberty Global plc — Class A*		1,930		65,967
TripAdvisor, Inc.*		970		61,285
Discovery Communications, Inc. — Class C*		1,741		45,806
Liberty Ventures*		987		39,352
Discovery Communications, Inc. — Class A*		1,101		29,639
Liberty Global plc LiLAC — Class C*		63		1,767
Liberty Global plc LiLAC — Class A*		42		1,159
Total Communications				15,352,498
Technology - 27.8%
Apple, Inc.		39,329		4,446,144
Microsoft Corp.		56,876		3,276,057
Intel Corp.		34,531		1,303,544
QUALCOMM, Inc.		10,756		736,785
Texas Instruments, Inc.		7,322		513,858
Broadcom Ltd.		2,887		498,065
Adobe Systems, Inc.*		3,637		394,760
NVIDIA Corp.		3,905		267,571
NXP Semiconductor N.V.*		2,476		252,577
Activision Blizzard, Inc.		5,412		239,752
Applied Materials, Inc.		7,889		237,853
Cognizant Technology Solutions Corp. — Class A*		4,430		211,355
Intuit, Inc.		1,868		205,499
Electronic Arts, Inc.*		2,195		187,453
Fiserv, Inc.*		1,604		159,550
Paychex, Inc.		2,631		152,256
Cerner Corp.*		2,465		152,214
Analog Devices, Inc.		2,244		144,626
Micron Technology, Inc.*		7,579		134,755
NetEase, Inc. ADR		557		134,114
Western Digital Corp.		2,075		121,326
Autodesk, Inc.*		1,620		117,175
Lam Research Corp.		1,170		110,811
Skyworks Solutions, Inc.		1,368		104,160
Linear Technology Corp.		1,750		103,758
CA, Inc.		3,058		101,159
Xilinx, Inc.		1,850		100,529
Microchip Technology, Inc.		1,571		97,622
Check Point Software Technologies Ltd.*		1,252		97,168
Citrix Systems, Inc.*		1,137		96,895
Seagate Technology plc		2,188		84,347
Maxim Integrated Products, Inc.		2,069		82,615
NetApp, Inc.		2,031		72,750
Akamai Technologies, Inc.*		1,275		67,562
Total Technology				15,006,665
Consumer, Non-cyclical - 13.1%
Amgen, Inc.		5,462		911,117
Kraft Heinz Co.		8,887		795,475
Gilead Sciences, Inc.		9,632		762,085
Celgene Corp.*		5,657		591,326
Biogen, Inc.*		1,599		500,535
Mondelez International, Inc. — Class A		11,354		498,441
PayPal Holdings, Inc.*		8,809		360,905
Express Scripts Holding Co.*		4,600		324,438
Regeneron Pharmaceuticals, Inc.*		755		303,525
Automatic Data Processing, Inc.		3,330		293,706
Monster Beverage Corp.*		1,389		203,919
Intuitive Surgical, Inc.*		281		203,677
Alexion Pharmaceuticals, Inc.*		1,637		200,598
Illumina, Inc.*		1,070		194,376
Vertex Pharmaceuticals, Inc.*		1,808		157,676
Mylan N.V.*		3,904		148,820
Incyte Corp.*		1,372		129,366
BioMarin Pharmaceutical, Inc.*		1,249		115,557
DENTSPLY SIRONA, Inc.		1,701		101,090
Verisk Analytics, Inc. — Class A*		1,233		100,218
Henry Schein, Inc.*		597		97,299
Whole Foods Market, Inc.		2,327		65,970
Total Consumer, Non-cyclical				7,060,119
Consumer, Cyclical - 6.3%
Walgreens Boots Alliance, Inc.		7,900		636,897
Starbucks Corp.		10,704		579,515
Costco Wholesale Corp.		3,197		487,574
Tesla Motors, Inc.*		1,089		222,189
O’Reilly Automotive, Inc.*		693		194,116
Ross Stores, Inc.		2,916		187,499
PACCAR, Inc.		2,558		150,359
American Airlines Group, Inc.		3,868		141,607
Dollar Tree, Inc.*		1,720		135,760
Marriott International, Inc. — Class A		1,857		125,032
Ulta Salon Cosmetics & Fragrance, Inc.*		455		108,281
Fastenal Co.		2,109		88,114

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Mattel, Inc.		2,486	$	75,276
Tractor Supply Co.		976		65,734
Liberty Interactive Corporation QVC Group — Class A*		3,260		65,233
Norwegian Cruise Line Holdings Ltd.*		1,658		62,507
Bed Bath & Beyond, Inc.		1,127		48,585
Total Consumer, Cyclical				3,374,278
Industrial - 0.7%
CSX Corp.		6,905		210,602
SBA Communications Corp. — Class A*		910		102,066
Stericycle, Inc.*		621		49,767
Total Industrial				362,435
Total Common Stocks
(Cost $40,209,598)				41,155,995
MUTUAL FUNDS† - 11.5%
Guggenheim Strategy Fund II1		124,896		3,114,907
Guggenheim Strategy Fund I1		124,631		3,114,537
Total Mutual Funds
(Cost $6,219,870)				6,229,444
	Face Amount
REPURCHASE AGREEMENTS††,2 - 4.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/163	$	1,624,121		1,624,121
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		545,385		545,385
Total Repurchase Agreements
(Cost $2,169,506)				2,169,506
Total Investments - 91.8%
(Cost $48,598,974)			$	49,554,945
Other Assets & Liabilities, net - 8.2%				4,407,565
Total Net Assets - 100.0%			$	53,962,510

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $2,532,010)		26	$	104,661
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 NASDAQ-100 Index Swap 0.78%4, Terminating 11/01/16 (Notional Value $22,231,404)		4,560	$	169,115
Goldman Sachs International October 2016 NASDAQ-100 Index Swap 1.05%4, Terminating 10/27/16 (Notional Value $646,358)		133		7,760
Barclays Bank plc October 2016 NASDAQ-100 Index Swap 0.75%4, Terminating 10/27/16 (Notional Value $41,375,733)		8,486		500
(Total Notional Value $64,253,495)			$	177,375

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
4	Total Return based on NASDAQ-100 Index +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2016.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	41,155,995	$	—	$	—	$	—	$	—	$	41,155,995
Equity Futures Contracts		—		104,661		—		—		—		104,661
Equity Index Swap Agreements		—		—		—		177,375		—		177,375
Mutual Funds		6,229,444		—		—		—		—		6,229,444
Repurchase Agreements		—		—		2,169,506		—		—		2,169,506
Total	$	47,385,439	$	104,661	$	2,169,506	$	177,375	$	—	$	49,836,981

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $40,209,598)	$	41,155,995
Investments in affiliated issuers, at value (cost $6,219,870)		6,229,444
Repurchase agreements, at value (cost $2,169,506)		2,169,506
Total investments (cost $48,598,974)		49,554,945
Segregated cash with broker		4,358,400
Unrealized appreciation on swap agreements		177,375
Cash		1,449
Receivables:
Variation margin		13,000
Fund shares sold		16,002
Dividends		26,415
Interest		22
Investment adviser		17,444
Total assets		54,165,052
Liabilities:
Payable for:
Licensing fees		82,323
Management fees		42,777
Fund shares redeemed		38,836
Distribution and service fees		11,899
Transfer agent and administrative fees		11,882
Portfolio accounting fees		4,753
Miscellaneous		10,072
Total liabilities		202,542
Commitments and contingent liabilities (Note 13)		—
Net assets	$	53,962,510
Net assets consist of:
Paid in capital	$	148,873,903
Accumulated net investment loss		(39,105	)
Accumulated net realized loss on investments		(96,110,294	)
Net unrealized appreciation on investments		1,238,006
Net assets	$	53,962,510
A-Class:
Net assets	$	326,757
Capital shares outstanding		5,100
Net asset value per share	$	64.07
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.25
C-Class:
Net assets	$	32,098
Capital shares outstanding		509
Net asset value per share	$	63.06
H-Class:
Net assets	$	53,603,655
Capital shares outstanding		816,583
Net asset value per share	$	65.64

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $687)	$	52,328
Dividends from securities of affiliated issuers		16,132
Interest		1,399
Total investment income		69,859
Expenses:
Management fees		72,536
Transfer agent and administrative fees		20,149
Distribution and service fees:
A-Class		472
C-Class		138
H-Class		19,642
Portfolio accounting fees		8,059
Miscellaneous - Move to Misc		7,675
Custodian fees		958
Trustees’ fees*		137
Line of credit fees		66
Miscellaneous		8,467
Total expenses		138,299
Less:
Expenses waived by Adviser		(29,335	)
Net expenses		108,964
Net investment loss		(39,105	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(189,662	)
Investments in affiliated issuers		756
Swap agreements		865,472
Futures contracts		(13,742	)
Net realized gain		662,824
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		835,156
Investments in affiliated issuers		10,395
Swap agreements		147,847
Futures contracts		81,300
Net change in unrealized appreciation (depreciation)		1,074,698
Net realized and unrealized gain		1,737,522
Net increase in net assets resulting from operations	$	1,698,417

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

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(39,105	)	$	(427,077	)
Net realized gain (loss) on investments		662,824			(79,531,367	)
Net change in unrealized appreciation (depreciation) on investments		1,074,698			2,435,917
Net increase (decrease) in net assets resulting from operations		1,698,417			(77,522,527	)
Capital share transactions:
Proceeds from sale of shares
A-Class		410,462			4,791,065
C-Class		39,566			60,141
H-Class		63,767,806			722,965,697
Cost of shares redeemed
A-Class		(397,894	)		(4,159,012	)
C-Class		(33,782	)		(44,714	)
H-Class		(16,010,981	)		(984,738,898	)
Net increase (decrease) from capital share transactions		47,775,177			(261,125,721	)
Net increase (decrease) in net assets		49,473,594			(338,648,248	)
Net assets:
Beginning of period		4,488,916			343,137,164
End of period	$	53,962,510		$	4,488,916
Accumulated net investment loss at end of period	$	(39,105	)	$	—
Capital share activity:
Shares sold
A-Class		6,970			82,637
C-Class		690			1,072
H-Class		997,757			12,184,515
Shares redeemed
A-Class		(6,390	)		(87,115	)
C-Class		(606	)		(920	)
H-Class		(256,812	)		(18,752,891	)
Net increase (decrease) in shares		741,609			(6,572,702	)

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	54.45		$	51.68		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.07	)		(.27	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		9.69			3.04			1.75
Total from investment operations		9.62			2.77			1.68
Net asset value, end of period	$	64.07		$	54.45		$	51.68
Total Returnf		17.63	%		5.38	%		3.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	327		$	246		$	465
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		(0.48	%)		(0.38	%)
Total expensesd		1.71	%		1.70	%		1.63	%
Net expensese		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		66	%		551	%		84	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	53.80		$	51.55		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.30	)		(.56	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		9.56			2.81			1.74
Total from investment operations		9.26			2.25			1.55
Net asset value, end of period	$	63.06		$	53.80		$	51.55
Total Returnf		17.19	%		4.40	%		3.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32		$	23		$	14
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(1.04	%)		(1.13	%)
Total expensesd		2.46	%		2.51	%		2.43	%
Net expensese		2.10	%		2.17	%		2.13	%
Portfolio turnover rate		66	%		551	%		84	%

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	55.79		$	51.57		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.15	)		(.17	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		10.00			4.39			1.67
Total from investment operations		9.85			4.22			1.57
Net asset value, end of period	$	65.64		$	55.79		$	51.57
Total Returnf		17.66	%		8.18	%		3.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,604		$	4,220		$	342,658
Ratios to average net assets:
Net investment income (loss)		(0.49	%)		(0.30	%)		(0.60	%)
Total expensesd		1.71	%		1.67	%		1.64	%
Net expensese		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		66	%		551	%		84	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: November 28, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net expense information reflects the expense ratios after expense waivers.
f	Total return does not reflect the impact of any applicable sales charge and has not been annualized.
g	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the periods ended would be:

	9/30/16	3/31/16	3/31/15
A-Class	1.35%	1.35%	1.35%
C-Class	2.10%	2.10%	2.10%
H-Class	1.35%	1.35%	1.35%

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

FUND PROFILE (Unaudited) September 30, 2016

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	September 3, 1998
A-Class	March 31, 2004
C-Class	March 7, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	22.3%
Guggenheim Strategy Fund I	22.3%
Federal Farm Credit Bank	21.3%
Total	65.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 44.7%
Guggenheim Strategy Fund II1		104,998	$	2,618,643
Guggenheim Strategy Fund I1		104,616		2,614,361
Total Mutual Funds
(Cost $5,211,633)				5,233,004
	Face Amount
FEDERAL AGENCY NOTES†† - 21.3%
Federal Farm Credit Bank2
0.65% due 08/10/183	$	2,500,000		2,498,400
Total Federal Agency Notes
(Cost $2,498,595)				2,498,400
REPURCHASE AGREEMENTS††,4 - 32.6%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/165		2,519,708		2,519,708
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		1,305,130		1,305,130
Total Repurchase Agreements
(Cost $3,824,838)				3,824,838
Total Investments - 98.6%
(Cost $11,535,066)			$	11,556,242
Other Assets & Liabilities, net - 1.4%				164,656
Total Net Assets - 100.0%			$	11,720,898

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2016 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $97,385)		1	$	(406	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2016 NASDAQ-100 Index Swap 0.60%6, Terminating 10/27/16 (Notional Value $1,803,462)		370	$	(62	)
BNP Paribas November 2016 NASDAQ-100 Index Swap 0.28% 6, Terminating 11/01/16 (Notional Value $2,736,492)		561		(20,880	)
Goldman Sachs International October 2016 NASDAQ-100 Index Swap 0.75%6, Terminating 10/27/16 (Notional Value $7,112,410)		1,459		(85,449	)
(Total Notional Value $11,652,364)			$	(106,391	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
6	Total Return based on NASDAQ-100 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE NASDAQ-100® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Federal Agency Notes	$	—	$	—	$	2,498,400	$	—	$	—	$	2,498,400
Mutual Funds		5,233,004		—		—		—		—		5,233,004
Repurchase Agreements		—		—		3,824,838		—		—		3,824,838
Total	$	5,233,004	$	—	$	6,323,238	$	—	$	—	$	11,556,242
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Futures Contracts	$	—	$	406	$	—	$	—	$	—	$	406
Equity Index Swap Agreements		—		—		—		106,391		—		106,391
Total	$	—	$	406	$	—	$	106,391	$	—	$	106,797

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $2,498,595)	$	2,498,400
Investments in affiliated issuers, at value (cost $5,211,633)		5,233,004
Repurchase agreements, at value (cost $3,824,838)		3,824,838
Total investments (cost $11,535,066)		11,556,242
Segregated cash with broker		282,400
Receivables:
Swap settlement		813
Fund shares sold		27,559
Dividends		8,082
Interest		2,386
Total assets		11,877,482
Liabilities:
Unrealized depreciation on swap agreements		106,391
Payable for:
Fund shares redeemed		28,479
Management fees		9,827
Variation margin		4,530
Transfer agent and administrative fees		2,730
Distribution and service fees		1,992
Portfolio accounting fees		1,092
Miscellaneous		1,543
Total liabilities		156,584
Commitments and contingent liabilities (Note 13)		—
Net assets	$	11,720,898
Net assets consist of:
Paid in capital	$	64,375,199
Accumulated net investment loss		(286,898	)
Accumulated net realized loss on investments		(52,281,782	)
Net unrealized depreciation on investments		(85,621	)
Net assets	$	11,720,898
Investor Class:
Net assets	$	7,642,796
Capital shares outstanding*		87,601
Net asset value per share*	$	87.24
A-Class:
Net assets	$	2,148,260
Capital shares outstanding*		25,254
Net asset value per share*	$	85.06
Maximum offering price per share (Net asset value divided by 95.25%)*	$	89.30
C-Class:
Net assets	$	1,640,666
Capital shares outstanding*		22,275
Net asset value per share*	$	73.65
H-Class:
Net assets	$	289,176
Capital shares outstanding*		3,448
Net asset value per share*	$	83.87

* The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:4 reverse share split, effective November 4, 2016 — See Note 12.

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	55,650
Interest		33,160
Total investment income		88,810
Expenses:
Management fees		130,822
Transfer agent and administrative fees		36,339
Distribution and service fees:
A-Class		18,336
C-Class		8,685
H-Class		2,338
Portfolio accounting fees		14,536
Registration fees		13,900
Custodian fees		1,965
Trustees’ fees*		1,709
Line of credit fees		76
Miscellaneous		12,244
Total expenses		240,950
Net investment loss		(152,140	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	(821	)
Investments in affiliated issuers		16,107
Swap agreements		(4,354,267	)
Futures contracts		(780,104	)
Net realized loss		(5,119,085	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		5,450
Investments in affiliated issuers		18,956
Swap agreements		965,015
Futures contracts		246,930
Net change in unrealized appreciation (depreciation)		1,236,351
Net realized and unrealized loss		(3,882,734	)
Net decrease in net assets resulting from operations	$	(4,034,874	)

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

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(152,140	)	$	(432,506	)
Net realized loss on investments		(5,119,085	)		(3,792,495	)
Net change in unrealized appreciation (depreciation) on investments		1,236,351			(1,299,301	)
Net decrease in net assets resulting from operations		(4,034,874	)		(5,524,302	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		26,831,101			259,319,436
Advisor Class*		—			20,257,419
A-Class		194,094,379			751,596,238
C-Class		1,527,461			6,855,284
H-Class		25,547,151			298,858,706
Cost of shares redeemed
Investor Class		(29,880,435	)		(250,066,675	)
Advisor Class*		—			(18,148,285	)
A-Class		(244,871,505	)		(697,029,713	)
C-Class		(1,173,025	)		(6,200,636	)
H-Class		(24,832,672	)		(300,183,230	)
Conversion activity*
Advisor Class		—			(2,231,827	)
H-Class		—			2,231,827
Net increase (decrease) from capital share transactions		(52,757,545	)		65,258,544
Net increase (decrease) in net assets		(56,792,419	)		59,734,242
Net assets:
Beginning of period		68,513,317			8,779,075
End of period	$	11,720,898		$	68,513,317
Accumulated net investment loss at end of period	$	(286,898	)	$	(134,758	)
Capital share activity:**
Shares sold
Investor Class		287,635			1,681,015
Advisor Class*		—			140,061
A-Class		2,105,263			5,088,141
C-Class		19,423			53,909
H-Class		269,727			2,008,582
Shares redeemed
Investor Class		(323,011	)		(1,642,144	)
Advisor Class*		—			(125,569	)
A-Class		(2,664,508	)		(4,702,210	)
C-Class		(14,956	)		(49,400	)
H-Class		(268,993	)		(2,023,436	)
Conversion activity*
Advisor Class		—			(14,868	)
H-Class		—			14,469
Net increase (decrease) in shares		(589,420	)		2,571,297

*	Effective September 30,2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.
**	Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 12.

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a,g			Year Ended March 31, 2016g			Year Ended March 31, 2015g			Year Ended March 31, 2014f,g			Year Ended March 28, 2013f,g			Year Ended March 31, 2012f,g
Per Share Data
Net asset value, beginning of period	$	96.42		$	105.47		$	132.37		$	175.63		$	187.81		$	187.34
Income (loss) from investment operations:
Net investment income (loss)b		.36			(1.08	)		(1.32	)		(2.16	)		(2.40	)		(3.20	)
Net gain (loss) on investments (realized and unrealized)		(9.54	)		(7.97	)		(25.58	)		(41.10	)		(9.78	)		3.67
Total from investment operations		(9.18	)		(9.05	)		(26.90	)		(43.26	)		(12.18	)		(.47	)
Net asset value, end of period	$	87.24		$	96.42		$	105.47		$	132.37		$	175.63		$	187.81
Total Returnc		(9.50	%)		(8.61	%)		(20.31	%)		(24.62	%)		(6.50	%)		(21.22	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,643		$	11,857		$	6,821		$	6,865		$	7,709		$	8,792
Ratios to average net assets:
Net investment income (loss)		(0.77	%)		(1.04	%)		(1.14	%)		(1.44	%)		(1.32	%)		(1.38	%)
Total expensesd		1.46	%		1.44	%		1.46	%		1.46	%		1.44	%		1.45	%
Portfolio turnover rate		453	%		1,674	%		149	%		—			—			—

A-Class	Period Ended September 30, 2016a,g			Year Ended March 31, 2016g			Year Ended March 31, 2015g			Year Ended March 31, 2014f,g			Year Ended March 28, 2013f,g			Year Ended March 31, 2012f,g
Per Share Data
Net asset value, beginning of period	$	94.01		$	101.76		$	127.98		$	170.45		$	183.06		$	233.20
Income (loss) from investment operations:
Net investment income (loss)b		.56			(1.32	)		(1.48	)		(2.40	)		(2.80	)		(3.60	)
Net gain (loss) on investments (realized and unrealized)		(9.51	)		(6.43	)		(24.74	)		(40.07	)		(9.81	)		(46.54	)
Total from investment operations		(8.95	)		(7.75	)		(26.22	)		(42.47	)		(12.61	)		(50.14	)
Net asset value, end of period	$	85.06		$	94.01		$	101.76		$	127.98		$	170.45		$	183.06
Total Returnc		(9.49	%)		(7.63	%)		(20.50	%)		(24.88	%)		(6.89	%)		(21.53	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,148		$	54,948		$	570		$	372		$	183		$	474
Ratios to average net assets:
Net investment income (loss)		(1.17	%)		(1.36	%)		(1.35	%)		(1.69	%)		(1.56	%)		(1.62	%)
Total expensesd		1.70	%		1.69	%		1.71	%		1.71	%		1.68	%		1.69	%
Portfolio turnover rate		453	%		1,674	%		149	%		—			—			—

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a,g			Year Ended March 31, 2016g			Year Ended March 31, 2015g			Year Ended March 31, 2014f,g			Year Ended March 28, 2013f,g			Year Ended March 31, 2012f,g
Per Share Data
Net asset value, beginning of period	$	81.79		$	90.32		$	114.51		$	153.69		$	166.31		$	213.36
Income (loss) from investment operations:
Net investment income (loss)b		.68			(1.80	)		(2.12	)		(3.20	)		(3.80	)		(4.80	)
Net gain (loss) on investments (realized and unrealized)		(8.82	)		(6.73	)		(22.07	)		(35.98	)		(8.82	)		(42.25	)
Total from investment operations		(8.14	)		(8.53	)		(24.19	)		(39.18	)		(12.62	)		(47.05	)
Net asset value, end of period	$	73.65		$	81.79		$	90.32		$	114.51		$	153.69		$	166.31
Total Returnc		(9.98	%)		(9.43	%)		(21.13	%)		(25.44	%)		(7.58	%)		(22.12	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,641		$	1,457		$	998		$	561		$	678		$	752
Ratios to average net assets:
Net investment income (loss)		(1.72	%)		(2.09	%)		(2.12	%)		(2.44	%)		(2.32	%)		(2.37	%)
Total expensesd		2.46	%		2.44	%		2.46	%		2.46	%		2.44	%		2.45	%
Portfolio turnover rate		453	%		1,674	%		149	%		—			—			—

H-Class	Period Ended September 30, 2016a,g			Year Ended March 31, 2016g			Period Ended March 31, 2015e,g
Per Share Data
Net asset value, beginning of period	$	92.82		$	101.76		$	110.00
Income (loss) from investment operations:
Net investment income (loss)b		.52			(1.16	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		(9.47	)		(7.78	)		(7.44	)
Total from investment operations		(8.95	)		(8.94	)		(8.24	)
Net asset value, end of period	$	83.87		$	92.82		$	101.76
Total Returnc		(9.66	%)		(8.80	%)		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	289		$	252		$	335
Ratios to average net assets:
Net investment income (loss)		(1.08	%)		(1.18	%)		(1.35	%)
Total expensesd		1.70	%		1.70	%		1.68	%
Portfolio turnover rate		453	%		1,674	%		149	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
f	Reverse share split — Per share amounts for the periods presented through February 21, 2014, have been restated to reflect a 1:5 reverse share split effective February 21, 2014.
g	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for mid-cap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	10.6%
Guggenheim Strategy Fund I	10.5%
IDEXX Laboratories, Inc.	0.5%
WhiteWave Foods Co. — Class A	0.4%
Ingredion, Inc.	0.4%
Duke Realty Corp.	0.4%
ResMed, Inc.	0.4%
Synopsys, Inc.	0.4%
CDK Global, Inc.	0.4%
Alexandria Real Estate Equities, Inc.	0.4%
Top Ten Total	24.4%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 69.8%
Financial - 17.7%
Duke Realty Corp.		3,271	$	89,396
Alexandria Real Estate Equities, Inc.		727		79,077
Alleghany Corp.*		144		75,604
Regency Centers Corp.		974		75,476
Everest Re Group Ltd.		391		74,278
National Retail Properties, Inc.		1,371		69,715
Raymond James Financial, Inc.		1,176		68,455
Camden Property Trust		815		68,248
Mid-America Apartment Communities, Inc.		704		66,169
New York Community Bancorp, Inc.		4,542		64,633
Reinsurance Group of America, Inc. — Class A		597		64,440
Omega Healthcare Investors, Inc.		1,803		63,915
American Campus Communities, Inc.		1,217		61,909
Kilroy Realty Corp.		860		59,641
Signature Bank*		501		59,343
SEI Investments Co.		1,264		57,651
Liberty Property Trust		1,368		55,199
SVB Financial Group*		485		53,612
WR Berkley Corp.		916		52,908
American Financial Group, Inc.		681		51,075
Lamar Advertising Co. — Class A		773		50,485
Senior Housing Properties Trust		2,214		50,280
East West Bancorp, Inc.		1,344		49,338
CBOE Holdings, Inc.		758		49,156
Douglas Emmett, Inc.		1,338		49,011
PacWest Bancorp		1,123		48,188
Highwoods Properties, Inc.		920		47,950
Jones Lang LaSalle, Inc.		421		47,906
EPR Properties		593		46,693
RenaissanceRe Holdings Ltd.		384		46,141
Hospitality Properties Trust		1,531		45,501
Weingarten Realty Investors		1,097		42,761
Taubman Centers, Inc.		563		41,893
Eaton Vance Corp.		1,058		41,315
DCT Industrial Trust, Inc.		841		40,830
Medical Properties Trust, Inc.		2,731		40,337
Brown & Brown, Inc.		1,069		40,312
First American Financial Corp.		1,023		40,183
Old Republic International Corp.		2,276		40,103
Communications Sales & Leasing, Inc.		1,268		39,828
Endurance Specialty Holdings Ltd.		599		39,205
Life Storage, Inc.		433		38,511
Commerce Bancshares, Inc.		774		38,127
Synovus Financial Corp.		1,146		37,279
Cullen/Frost Bankers, Inc.		515		37,049
Healthcare Realty Trust, Inc.		1,080		36,785
Prosperity Bancshares, Inc.		648		35,569
Tanger Factory Outlet Centers, Inc.		896		34,908
PrivateBancorp, Inc. — Class A		741		34,027
Post Properties, Inc.		499		32,999
First Horizon National Corp.		2,164		32,958
Bank of the Ozarks, Inc.		847		32,525
Webster Financial Corp.		855		32,499
Umpqua Holdings Corp.		2,053		30,898
First Industrial Realty Trust, Inc.		1,090		30,760
Rayonier, Inc.		1,146		30,415
Hanover Insurance Group, Inc.		399		30,093
SLM Corp.*		3,990		29,805
Education Realty Trust, Inc.		681		29,378
Bank of Hawaii Corp.		400		29,048
Chemical Financial Corp.		652		28,773
Associated Banc-Corp.		1,386		27,152
Equity One, Inc.		858		26,263
Aspen Insurance Holdings Ltd.		561		26,137
Federated Investors, Inc. — Class B		875		25,926
MB Financial, Inc.		665		25,297
LaSalle Hotel Properties		1,054		25,159
Corporate Office Properties Trust		884		25,061
CNO Financial Group, Inc.		1,633		24,936
FNB Corp.		1,959		24,096
Urban Edge Properties		853		24,003
Stifel Financial Corp.*		617		23,724
Hancock Holding Co.		723		23,447
Fulton Financial Corp.		1,614		23,435
TCF Financial Corp.		1,595		23,143
Valley National Bancorp		2,372		23,080
Genworth Financial, Inc. — Class A*		4,647		23,049
Primerica, Inc.		433		22,962
Mack-Cali Realty Corp.		836		22,756
Washington Federal, Inc.		844		22,518
Care Capital Properties, Inc.		783		22,316
Cathay General Bancorp		691		21,269
Janus Capital Group, Inc.		1,335		18,703
Mercury General Corp.		340		18,649
BancorpSouth, Inc.		802		18,606
Kemper Corp.		453		17,812
Trustmark Corp.		631		17,390
Alexander & Baldwin, Inc.		429		16,482
International Bancshares Corp.		541		16,111
Corrections Corporation of America		1,096		15,202
Potlatch Corp.		378		14,700
Waddell & Reed Financial, Inc. — Class A		772		14,020
WisdomTree Investments, Inc.		1,070		11,010
Total Financial				3,594,980
Industrial - 12.0%
Packaging Corporation of America		879		71,427
Wabtec Corp.		840		68,586
AO Smith Corp.		691		68,264
Huntington Ingalls Industries, Inc.		436		66,891
IDEX Corp.		710		66,435
Trimble, Inc.*		2,324		66,374
Carlisle Companies, Inc.		603		61,850
Lennox International, Inc.		365		57,316
Arrow Electronics, Inc.*		851		54,439
Hubbell, Inc.		480		51,715
Keysight Technologies, Inc.*		1,585		50,229
Nordson Corp.		496		49,416
Sonoco Products Co.		935		49,396
B/E Aerospace, Inc.		948		48,973

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Avnet, Inc.		1,188	$	48,779
Gentex Corp.		2,674		46,955
Donaldson Company, Inc.		1,241		46,327
AptarGroup, Inc.		587		45,439
Bemis Company, Inc.		883		45,042
Old Dominion Freight Line, Inc.*		649		44,528
AECOM*		1,433		42,602
Cognex Corp.		794		41,971
Orbital ATK, Inc.		546		41,622
Jabil Circuit, Inc.		1,782		38,883
Graco, Inc.		519		38,406
Oshkosh Corp.		685		38,360
Curtiss-Wright Corp.		414		37,720
Lincoln Electric Holdings, Inc.		590		36,946
Genesee & Wyoming, Inc. — Class A*		534		36,819
Teledyne Technologies, Inc.*		323		34,861
Eagle Materials, Inc.		450		34,785
Trinity Industries, Inc.		1,421		34,360
Zebra Technologies Corp. — Class A*		492		34,248
EMCOR Group, Inc.		567		33,805
Woodward, Inc.		516		32,240
AGCO Corp.		635		31,318
Kirby Corp.*		502		31,204
ITT, Inc.		836		29,962
CLARCOR, Inc.		455		29,575
Crane Co.		463		29,174
Energizer Holdings, Inc.		577		28,827
Valmont Industries, Inc.		211		28,394
EnerSys		405		28,022
National Instruments Corp.		983		27,917
Tech Data Corp.*		328		27,785
Belden, Inc.		393		27,113
Landstar System, Inc.		393		26,755
Terex Corp.		1,013		25,740
Joy Global, Inc.		915		25,382
Louisiana-Pacific Corp.*		1,326		24,969
Regal Beloit Corp.		417		24,807
Cree, Inc.*		940		24,177
Dycom Industries, Inc.*		293		23,962
Clean Harbors, Inc.*		488		23,414
Timken Co.		657		23,087
Kennametal, Inc.		743		21,562
Esterline Technologies Corp.*		274		20,835
KBR, Inc.		1,329		20,108
Silgan Holdings, Inc.		383		19,376
Granite Construction, Inc.		369		18,354
Vishay Intertechnology, Inc.		1,257		17,711
KLX, Inc.*		491		17,283
MSA Safety, Inc.		290		16,832
GATX Corp.		377		16,795
Triumph Group, Inc.		462		12,881
Greif, Inc. — Class A		240		11,902
Knowles Corp.*		827		11,619
Werner Enterprises, Inc.		417		9,704
Total Industrial				2,422,555
Consumer, Non-cyclical - 10.8%
IDEXX Laboratories, Inc.*		835		94,129
WhiteWave Foods Co. — Class A*		1,652		89,918
Ingredion, Inc.		673		89,549
ResMed, Inc.		1,312		85,005
Teleflex, Inc.		411		69,069
Gartner, Inc.*		770		68,107
Align Technology, Inc.*		702		65,812
STERIS plc		803		58,699
MarketAxess Holdings, Inc.		351		58,122
MEDNAX, Inc.*		858		56,843
VCA, Inc.*		754		52,764
West Pharmaceutical Services, Inc.		683		50,884
WellCare Health Plans, Inc.*		413		48,358
ABIOMED, Inc.*		373		47,960
Service Corporation International		1,806		47,931
United Therapeutics Corp.*		405		47,822
Post Holdings, Inc.*		603		46,534
ManpowerGroup, Inc.		639		46,174
TreeHouse Foods, Inc.*		529		46,124
Edgewell Personal Care Co.*		550		43,736
WEX, Inc.*		359		38,804
Bio-Techne Corp.		348		38,106
Charles River Laboratories International, Inc.*		441		36,753
Hill-Rom Holdings, Inc.		556		34,461
Hain Celestial Group, Inc.*		965		34,335
Amsurg Corp. — Class A*		511		34,263
PAREXEL International Corp.*		493		34,239
Live Nation Entertainment, Inc.*		1,231		33,828
CoreLogic, Inc.*		823		32,278
Bio-Rad Laboratories, Inc. — Class A*		193		31,615
NuVasive, Inc.*		469		31,264
Deluxe Corp.		455		30,403
Avis Budget Group, Inc.*		879		30,071
Catalent, Inc.*		1,162		30,026
Sprouts Farmers Market, Inc.*		1,301		26,866
Snyder’s-Lance, Inc.		797		26,763
Rollins, Inc.		896		26,235
Flowers Foods, Inc.		1,698		25,674
LivaNova plc*		412		24,765
Lancaster Colony Corp.		182		24,040
Prestige Brands Holdings, Inc.*		493		23,797
LifePoint Health, Inc.*		398		23,574
Molina Healthcare, Inc.*		397		23,153
Avon Products, Inc.*		4,075		23,065
Akorn, Inc.*		823		22,435
Helen of Troy Ltd.*		260		22,404
Graham Holdings Co. — Class B		43		20,699
Owens & Minor, Inc.		582		20,213
United Natural Foods, Inc.*		470		18,819
FTI Consulting, Inc.*		393		17,512
Sotheby’s		447		16,995
Tenet Healthcare Corp.*		742		16,814
CEB, Inc.		300		16,341
Aaron’s, Inc.		604		15,354

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Halyard Health, Inc.*		435	$	15,077
Dean Foods Co.		843		13,825
Boston Beer Company, Inc. — Class A*		84		13,042
Community Health Systems, Inc.*		1,060		12,232
DeVry Education Group, Inc.		529		12,199
Tootsie Roll Industries, Inc.		164		6,040
Total Consumer, Non-cyclical				2,191,919
Technology - 8.8%
Synopsys, Inc.*		1,411		83,744
CDK Global, Inc.		1,400		80,304
ANSYS, Inc.*		813		75,292
Broadridge Financial Solutions, Inc.		1,103		74,772
MSCI, Inc. — Class A		882		74,035
Cadence Design Systems, Inc.*		2,726		69,595
Computer Sciences Corp.		1,309		68,343
Jack Henry & Associates, Inc.		732		62,623
Leidos Holdings, Inc.		1,326		57,389
Ultimate Software Group, Inc.*		270		55,185
Tyler Technologies, Inc.*		308		52,739
Fortinet, Inc.*		1,369		50,557
PTC, Inc.*		1,072		47,500
Advanced Micro Devices, Inc.*		6,843		47,286
Microsemi Corp.*		1,055		44,289
Teradyne, Inc.		1,887		40,721
Manhattan Associates, Inc.*		668		38,490
NCR Corp.*		1,154		37,147
Cypress Semiconductor Corp.		2,995		36,419
Fair Isaac Corp.		288		35,882
DST Systems, Inc.		304		35,848
Brocade Communications Systems, Inc.		3,738		34,502
MAXIMUS, Inc.		605		34,219
Rackspace Hosting, Inc.*		997		31,595
SYNNEX Corp.		271		30,924
Cirrus Logic, Inc.*		581		30,880
j2 Global, Inc.		448		29,841
Science Applications International Corp.		418		28,997
Integrated Device Technology, Inc.*		1,253		28,944
IPG Photonics Corp.*		347		28,575
Monolithic Power Systems, Inc.		347		27,934
Intersil Corp. — Class A		1,263		27,698
Convergys Corp.		894		27,195
Mentor Graphics Corp.		1,009		26,678
NetScout Systems, Inc.*		858		25,097
Lexmark International, Inc. — Class A		584		23,336
Allscripts Healthcare Solutions, Inc.*		1,740		22,916
Silicon Laboratories, Inc.*		388		22,814
ACI Worldwide, Inc.*		1,093		21,182
CommVault Systems, Inc.*		385		20,455
Acxiom Corp.*		722		19,241
Synaptics, Inc.*		325		19,039
3D Systems Corp.*		994		17,842
Diebold, Inc.		700		17,353
VeriFone Systems, Inc.*		1,035		16,291
Total Technology				1,781,708
Consumer, Cyclical - 8.3%
Domino’s Pizza, Inc.		450		68,332
NVR, Inc.*		34		55,755
JetBlue Airways Corp.*		3,018		52,030
Ingram Micro, Inc. — Class A		1,396		49,781
Copart, Inc.*		908		48,632
Toro Co.		1,023		47,917
Dick’s Sporting Goods, Inc.		821		46,568
Dunkin’ Brands Group, Inc.		855		44,528
Casey’s General Stores, Inc.		365		43,855
Polaris Industries, Inc.		556		43,056
Toll Brothers, Inc.*		1,407		42,013
Brunswick Corp.		841		41,024
Panera Bread Co. — Class A*		208		40,501
Carter’s, Inc.		467		40,494
Williams-Sonoma, Inc.		765		39,077
Cinemark Holdings, Inc.		986		37,744
Thor Industries, Inc.		445		37,692
Pool Corp.		392		37,052
Scotts Miracle-Gro Co. — Class A		422		35,140
Sally Beauty Holdings, Inc.*		1,364		35,028
CST Brands, Inc.		706		33,952
Watsco, Inc.		240		33,816
Tupperware Brands Corp.		471		30,789
MSC Industrial Direct Company, Inc. — Class A		415		30,465
World Fuel Services Corp.		657		30,393
Cracker Barrel Old Country Store, Inc.		223		29,485
Jack in the Box, Inc.		305		29,262
Skechers U.S.A., Inc. — Class A*		1,243		28,465
American Eagle Outfitters, Inc.		1,593		28,451
Tempur Sealy International, Inc.*		474		26,895
GameStop Corp. — Class A		969		26,735
J.C. Penney Company, Inc.*		2,870		26,461
Cabela’s, Inc.*		479		26,311
Brinker International, Inc.		512		25,820
Buffalo Wild Wings, Inc.*		171		24,067
Texas Roadhouse, Inc. — Class A		598		23,340
CalAtlantic Group, Inc.		696		23,274
Vista Outdoor, Inc.*		563		22,441
Cheesecake Factory, Inc.		417		20,875
Dana, Inc.		1,337		20,844
Wendy’s Co.		1,900		20,520
Kate Spade & Co.*		1,194		20,453
Big Lots, Inc.		414		19,769
Office Depot, Inc.		5,071		18,103
TRI Pointe Group, Inc.*		1,363		17,964
Deckers Outdoor Corp.*		299		17,805
Churchill Downs, Inc.		116		16,977
HNI Corp.		415		16,517
Herman Miller, Inc.		558		15,959
Chico’s FAS, Inc.		1,231		14,649
KB Home		771		12,429
Restoration Hardware Holdings, Inc.*		356		12,310
HSN, Inc.		297		11,821
Fossil Group, Inc.*		390		10,830

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Abercrombie & Fitch Co. — Class A		631	$	10,027
Ascena Retail Group, Inc.*		1,556		8,698
Guess?, Inc.		574		8,386
International Speedway Corp. — Class A		243		8,121
Total Consumer, Cyclical				1,689,698
Utilities - 3.9%
Westar Energy, Inc.		1,322		75,023
UGI Corp.		1,615		73,063
Atmos Energy Corp.		968		72,087
OGE Energy Corp.		1,862		58,877
Great Plains Energy, Inc.		1,932		52,724
Aqua America, Inc.		1,654		50,414
MDU Resources Group, Inc.		1,821		46,326
National Fuel Gas Co.		792		42,823
Vectren Corp.		772		38,754
IDACORP, Inc.		470		36,792
Southwest Gas Corp.		443		30,948
Hawaiian Electric Industries, Inc.		1,009		30,119
ONE Gas, Inc.		487		30,116
Black Hills Corp.		488		29,875
WGL Holdings, Inc.		476		29,845
New Jersey Resources Corp.		803		26,387
NorthWestern Corp.		451		25,946
PNM Resources, Inc.		743		24,311
Talen Energy Corp.*		802		11,108
Total Utilities				785,538
Basic Materials - 3.1%
Valspar Corp.		680		72,127
RPM International, Inc.		1,241		66,667
Steel Dynamics, Inc.		2,273		56,803
Reliance Steel & Aluminum Co.		676		48,692
Royal Gold, Inc.		609		47,155
NewMarket Corp.		86		36,922
Sensient Technologies Corp.		418		31,684
Olin Corp.		1,540		31,600
Cabot Corp.		582		30,503
United States Steel Corp.		1,571		29,629
PolyOne Corp.		784		26,507
Compass Minerals International, Inc.		315		23,216
Minerals Technologies, Inc.		325		22,974
Domtar Corp.		584		21,684
Worthington Industries, Inc.		411		19,740
Allegheny Technologies, Inc.		1,016		18,359
Carpenter Technology Corp.		435		17,948
Commercial Metals Co.		1,069		17,307
Total Basic Materials				619,517
Energy - 2.8%
Energen Corp.		905		52,237
QEP Resources, Inc.		2,234		43,630
WPX Energy, Inc.*		3,210		42,340
HollyFrontier Corp.		1,646		40,327
Gulfport Energy Corp.*		1,169		33,024
Nabors Industries Ltd.		2,642		32,127
CONSOL Energy, Inc.		1,647		31,622
SM Energy Co.		810		31,250
Patterson-UTI Energy, Inc.		1,378		30,826
Superior Energy Services, Inc.		1,415		25,329
Oceaneering International, Inc.		914		25,144
Murphy USA, Inc.*		343		24,476
Ensco plc — Class A		2,810		23,885
NOW, Inc.*		1,002		21,473
Western Refining, Inc.		738		19,527
Dril-Quip, Inc.*		350		19,509
Rowan Companies plc — Class A		1,170		17,737
Oil States International, Inc.*		479		15,122
Noble Corporation plc		2,268		14,379
Denbury Resources, Inc.*		3,714		11,996
Diamond Offshore Drilling, Inc.		601		10,584
Total Energy				566,544
Communications - 2.0%
FactSet Research Systems, Inc.		379		61,436
ARRIS International plc*		1,778		50,370
ViaSat, Inc.*		423		31,577
AMC Networks, Inc. — Class A*		559		28,990
Ciena Corp.*		1,288		28,078
Cable One, Inc.		44		25,696
InterDigital, Inc.		319		25,265
Telephone & Data Systems, Inc.		867		23,565
John Wiley & Sons, Inc. — Class A		417		21,521
WebMD Health Corp. — Class A*		364		18,091
Meredith Corp.		341		17,729
Plantronics, Inc.		309		16,056
New York Times Co. — Class A		1,135		13,563
Time, Inc.		933		13,510
NeuStar, Inc. — Class A*		508		13,508
comScore, Inc.*		417		12,785
Total Communications				401,740
Materials - 0.3%
Ashland Global Holdings, Inc.		579		67,135
Financials - 0.1%
Washington Prime Group, Inc.		1,728		21,393
Total Common Stocks
(Cost $12,363,258)				14,142,727
MUTUAL FUNDS† - 21.1%
Guggenheim Strategy Fund II1		85,758		2,138,806
Guggenheim Strategy Fund I1		85,481		2,136,164
Total Mutual Funds
(Cost $4,260,498)				4,274,970

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 15.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/163	$	1,975,028	$	1,975,028
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		1,144,709		1,144,709
Total Repurchase Agreements
(Cost $3,119,737)				3,119,737
Total Investments - 106.3%
(Cost $19,743,493)			$	21,537,434
Other Assets & Liabilities, net - (6.3)%				(1,284,020	)
Total Net Assets - 100.0%			$	20,253,413
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $464,580)		3	$	9,455

	Units		Unrealized Gain (Loss)
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 S&P MidCap 400 Index Swap 0.63% 4, Terminating 11/01/16 (Notional Value $9,567,237)		6,163	$	77,807
Goldman Sachs International October 2016 S&P MidCap 400 Index Swap 0.80%4, Terminating 10/27/16 (Notional Value $748,731)		482		6,636
Barclays Bank plc October 2016 S&P MidCap 400 Index Swap 0.70%4, Terminating 10/27/16 (Notional Value $5,500,643)		3,544		(16,127	)
(Total Notional Value $15,816,611)			$	68,316

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
4	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
MID-CAP 1.5x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	14,142,727	$	—	$	—	$	—	$	—	$	14,142,727
Equity Futures Contracts		—		9,455		—		—		—		9,455
Equity Index Swap Agreements		—		—		—		84,443		—		84,443
Mutual Funds		4,274,970		—		—		—		—		4,274,970
Repurchase Agreements		—		—		3,119,737		—		—		3,119,737
Total	$	18,417,697	$	9,455	$	3,119,737	$	84,443	$	—	$	21,631,332
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	16,127	$	—	$	16,127

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $12,363,258)	$	14,142,727
Investments in affiliated issuers, at value (cost $4,260,498)		4,274,970
Repurchase agreements, at value (cost $3,119,737)		3,119,737
Total investments (cost $19,743,493)		21,537,434
Segregated cash with broker		735,331
Unrealized appreciation on swap agreements		84,443
Receivables:
Swap settlement		18,137
Variation margin		3,750
Fund shares sold		300,124
Dividends		24,577
Interest		32
Total assets		22,703,828
Liabilities:
Unrealized depreciation on swap agreements		16,127
Payable for:
Fund shares redeemed		2,373,669
Management fees		18,286
Securities purchased		10,581
Distribution and service fees		9,149
Transfer agent and administrative fees		5,079
Portfolio accounting fees		2,032
Miscellaneous		15,492
Total liabilities		2,450,415
Commitments and contingent liabilities (Note 13)		—
Net assets	$	20,253,413
Net assets consist of:
Paid in capital	$	16,960,102
Accumulated net investment loss		(129,707	)
Accumulated net realized gain on investments		1,551,306
Net unrealized appreciation on investments		1,871,712
Net assets	$	20,253,413
A-Class:
Net assets	$	1,139,386
Capital shares outstanding		16,621
Net asset value per share	$	68.55
Maximum offering price per share (Net asset value divided by 95.25%)	$	71.97
C-Class:
Net assets	$	6,598,331
Capital shares outstanding		108,811
Net asset value per share	$	60.64
H-Class:
Net assets	$	12,515,696
Capital shares outstanding		181,954
Net asset value per share	$	68.78

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers	$	125,028
Dividends from securities of affiliated issuers		20,393
Interest		5,407
Total investment income		150,828
Expenses:
Management fees		95,149
Transfer agent and administrative fees		26,430
Distribution and service fees:
A-Class		2,376
C-Class		30,179
H-Class		16,510
Portfolio accounting fees		10,572
Custodian fees		1,248
Trustees’ fees*		570
Line of credit fees		3
Miscellaneous		16,408
Total expenses		199,445
Net investment loss		(48,617	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		401,711
Investments in affiliated issuers		3,554
Swap agreements		977,070
Futures contracts		206,385
Net realized gain		1,588,720
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		277,380
Investments in affiliated issuers		15,659
Swap agreements		(14,768	)
Futures contracts		(139,984	)
Net change in unrealized appreciation (depreciation)		138,287
Net realized and unrealized gain		1,727,007
Net increase in net assets resulting from operations	$	1,678,390

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(48,617	)	$	(522,399	)
Net realized gain on investments		1,588,720			3,651,862
Net change in unrealized appreciation (depreciation) on investments		138,287			(3,723,276	)
Net increase (decrease) in net assets resulting from operations		1,678,390			(593,813	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(39,098	)
C-Class		—			(32,393	)
H-Class		—			(1,799,216	)
Total distributions to shareholders		—			(1,870,707	)
Capital share transactions:
Proceeds from sale of shares
A-Class		29,115,167			12,111,577
C-Class		1,779,909			2,908,743
H-Class		60,105,606			867,760,588
Distributions reinvested
A-Class		—			30,028
C-Class		—			31,941
H-Class		—			573,424
Cost of shares redeemed
A-Class		(29,549,685	)		(14,445,041	)
C-Class		(574,501	)		(2,169,886	)
H-Class		(62,585,308	)		(870,431,834	)
Net decrease from capital share transactions		(1,708,812	)		(3,630,460	)
Net decrease in net assets		(30,422	)		(6,094,980	)
Net assets:
Beginning of period		20,283,835			26,378,815
End of period	$	20,253,413		$	20,283,835
Accumulated net investment loss at end of period	$	(129,707	)	$	(81,090	)
Capital share activity:
Shares sold
A-Class		429,554			201,123
C-Class		31,346			51,115
H-Class		913,486			14,189,381
Shares issued from reinvestment of distributions
A-Class		—			473
C-Class		—			566
H-Class		—			9,018
Shares redeemed
A-Class		(443,412	)		(250,294	)
C-Class		(10,117	)		(40,676	)
H-Class		(951,599	)		(14,221,967	)
Net decrease in shares		(30,742	)		(61,261	)

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	61.64		$	67.32		$	58.48		$	45.07		$	36.23		$	37.14
Income (loss) from investment operations:
Net investment income (loss)b		.12			(.47	)		(.41	)		(.35	)		(.16	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		6.79			(4.81	)		9.45			13.76			9.00			(.68	)
Total from investment operations		6.91			(5.28	)		9.04			13.41			8.84			(.91	)
Less distributions from:
Net realized gains		—			(.40	)		(.20	)		—			—			—
Total distributions		—			(.40	)		(.20	)		—			—			—
Net asset value, end of period	$	68.55		$	61.64		$	67.32		$	58.48		$	45.07		$	36.23
Total Returnc		11.21	%		(7.86	%)		15.50	%		29.75	%		24.40	%		(2.45	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,139		$	1,879		$	5,331		$	2,632		$	2,199		$	1,997
Ratios to average net assets:
Net investment income (loss)		0.38	%		(0.75	%)		(0.66	%)		(0.68	%)		(0.43	%)		(0.68	%)
Total expensesd		1.67	%		1.65	%		1.64	%		1.67	%		1.66	%		1.66	%
Portfolio turnover rate		191	%		1,506	%		598	%		563	%		447	%		141	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	54.73		$	60.27		$	52.77		$	40.97		$	33.18		$	34.26
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.78	)		(.76	)		(.64	)		(.41	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		6.22			(4.36	)		8.46			12.44			8.20			(.65	)
Total from investment operations		5.91			(5.14	)		7.70			11.80			7.79			(1.08	)
Less distributions from:
Net realized gains		—			(.40	)		(.20	)		—			—			—
Total distributions		—			(.40	)		(.20	)		—			—			—
Net asset value, end of period	$	60.64		$	54.73		$	60.27		$	52.77		$	40.97		$	33.18
Total Returnc		10.78	%		(8.55	%)		14.63	%		28.80	%		23.48	%		(3.15	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,598		$	4,794		$	4,615		$	4,549		$	5,107		$	4,815
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(1.41	%)		(1.39	%)		(1.40	%)		(1.23	%)		(1.42	%)
Total expensesd		2.42	%		2.40	%		2.40	%		2.42	%		2.40	%		2.41	%
Portfolio turnover rate		191	%		1,506	%		598	%		563	%		447	%		141	%

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	61.85		$	67.45		$	58.56		$	45.13		$	36.27		$	37.12
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.57	)		(.29	)		(.34	)		(.15	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		7.03			(4.63	)		9.38			13.77			9.01			(.61	)
Total from investment operations		6.93			(5.20	)		9.09			13.43			8.86			(.85	)
Less distributions from:
Net realized gains		—			(.40	)		(.20	)		—			—			—
Total distributions		—			(.40	)		(.20	)		—			—			—
Net asset value, end of period	$	68.78		$	61.85		$	67.45		$	58.56		$	45.13		$	36.27
Total Returnc		11.20	%		(7.73	%)		15.56	%		29.76	%		24.43	%		(2.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,516		$	13,611		$	16,433		$	19,413		$	57,067		$	16,974
Ratios to average net assets:
Net investment income (loss)		(0.31	%)		(0.93	%)		(0.47	%)		(0.66	%)		(0.41	%)		(0.72	%)
Total expensesd		1.67	%		1.66	%		1.66	%		1.68	%		1.67	%		1.66	%
Portfolio turnover rate		191	%		1,506	%		598	%		563	%		447	%		141	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2016

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400 Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	11.8%
Guggenheim Strategy Fund II	11.8%
Total	23.6%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 71

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 23.6%
Guggenheim Strategy Fund I1		5,440	$	135,946
Guggenheim Strategy Fund II1		5,446		135,813
Total Mutual Funds
(Cost $270,358)				271,759
	Face Amount
REPURCHASE AGREEMENTS††,2 - 55.7%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/163	$	399,887		399,887
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		239,421		239,421
Total Repurchase Agreements
(Cost $639,308)				639,308
Total Investments - 79.3%
(Cost $909,666)			$	911,067
Other Assets & Liabilities, net - 20.7%				237,671
Total Net Assets - 100.0%			$	1,148,738

	Units		Unrealized Gain (Loss)
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2016 S&P MidCap 400 Index Swap 0.55%4, Terminating 10/31/16 (Notional Value $52,424)		34	$	152
BNP Paribas November 2016 S&P MidCap 400 Index Swap 0.13%4, Terminating 11/01/16 (Notional Value $404,422)		261		(3,299	)
Goldman Sachs International September 2016 S&P MidCap 400 Index Swap 0.50%4, Terminating 10/26/16 (Notional Value $687,559)		443		(4,705	)
(Total Notional Value $1,144,405)			$	(7,852	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
4	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE MID-CAP STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	152	$	—	$	152
Mutual Funds		271,759		—		—		—		271,759
Repurchase Agreements		—		639,308		—		—		639,308
Total	$	271,759	$	639,308	$	152	$	—	$	911,219
Investments in Securities (Liabilities)	Level 1		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	8,004	$	—	$	8,004

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in affiliated issuers, at value (cost $270,358)	$	271,759
Repurchase agreements, at value (cost $639,308)		639,308
Total investments (cost $909,666)		911,067
Segregated cash with broker		250,000
Unrealized appreciation on swap agreements		152
Receivables:
Fund shares sold		90
Dividends		420
Interest		7
Total assets		1,161,736
Liabilities:
Unrealized depreciation on swap agreements		8,004
Payable for:
Fund shares redeemed		2,020
Management fees		904
Licensing fees		858
Distribution and service fees		427
Transfer agent and administrative fees		251
Swap settlement		159
Portfolio accounting fees		101
Miscellaneous		274
Total liabilities		12,998
Commitments and contingent liabilities (Note 13)		—
Net assets	$	1,148,738
Net assets consist of:
Paid in capital	$	13,480,775
Accumulated net investment loss		(26,650	)
Accumulated net realized loss on investments		(12,298,936	)
Net unrealized depreciation on investments		(6,451	)
Net assets	$	1,148,738
A-Class:
Net assets	$	116,325
Capital shares outstanding		4,155
Net asset value per share	$	28.00
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.40
C-Class:
Net assets	$	310,156
Capital shares outstanding		12,247
Net asset value per share	$	25.33
H-Class:
Net assets	$	722,257
Capital shares outstanding		25,815
Net asset value per share	$	27.98

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	4,320
Interest		2,216
Total investment income		6,536
Expenses:
Management fees		10,866
Transfer agent and administrative fees		3,019
Distribution and service fees:
A-Class		149
C-Class		1,360
H-Class		2,529
Portfolio accounting fees		1,207
Custodian fees		141
Trustees’ fees*		103
Miscellaneous		1,800
Total expenses		21,174
Net investment loss		(14,638	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		477
Swap agreements		(265,179	)
Futures contracts		(39,702	)
Net realized loss		(304,404	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		3,576
Swap agreements		26,752
Futures contracts		24,045
Net change in unrealized appreciation (depreciation)		54,373
Net realized and unrealized loss		(250,031	)
Net decrease in net assets resulting from operations	$	(264,669	)

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

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

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(14,638	)	$	(60,272	)
Net realized gain (loss) on investments		(304,404	)		555,698
Net change in unrealized appreciation (depreciation) on investments		54,373			(15,222	)
Net increase (decrease) in net assets resulting from operations		(264,669	)		480,204
Capital share transactions:
Proceeds from sale of shares
A-Class		63,859			2,309,572
C-Class		90,828			572,876
H-Class		10,220,900			102,675,850
Cost of shares redeemed
A-Class		(47,120	)		(2,246,291	)
C-Class		(26,928	)		(364,765	)
H-Class		(11,952,269	)		(103,514,443	)
Net decrease from capital share transactions		(1,650,730	)		(567,201	)
Net decrease in net assets		(1,915,399	)		(86,997	)
Net assets:
Beginning of period		3,064,137			3,151,134
End of period	$	1,148,738		$	3,064,137
Accumulated net investment loss at end of period	$	(26,650	)	$	(12,012	)
Capital share activity:
Shares sold
A-Class		2,189			69,625
C-Class		3,443			18,922
H-Class		352,554			3,247,874
Shares redeemed
A-Class		(1,646	)		(67,547	)
C-Class		(988	)		(12,293	)
H-Class		(414,077	)		(3,258,727	)
Net decrease in shares		(58,525	)		(2,146	)

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	30.70		$	30.76		$	35.55		$	44.64		$	54.64		$	61.14
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.38	)		(.48	)		(.64	)		(.84	)		(1.02	)
Net gain (loss) on investments (realized and unrealized)		(2.54	)		.32			(4.31	)		(8.45	)		(9.16	)		(5.48	)
Total from investment operations		(2.70	)		(.06	)		(4.79	)		(9.09	)		(10.00	)		(6.50	)
Net asset value, end of period	$	28.00		$	30.70		$	30.76		$	35.55		$	44.64		$	54.64
Total Returnc		(8.86	%)		(0.16	%)		(13.47	%)		(20.36	%)		(18.29	%)		(10.65	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	116		$	111		$	47		$	93		$	26		$	115
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(1.18	%)		(1.40	%)		(1.65	%)		(1.52	%)		(1.63	%)
Total expensesd		1.67	%		1.65	%		1.66	%		1.67	%		1.64	%		1.66	%
Portfolio turnover rate		91	%		199	%		38	%		—			—			—

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	27.89		$	28.16		$	32.78		$	41.49		$	51.18		$	57.72
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.59	)		(.67	)		(.90	)		(1.14	)		(1.44	)
Net gain (loss) on investments (realized and unrealized)		(2.31	)		.32			(3.95	)		(7.81	)		(8.55	)		(5.10	)
Total from investment operations		(2.56	)		(.27	)		(4.62	)		(8.71	)		(9.69	)		(6.54	)
Net asset value, end of period	$	25.33		$	27.89		$	28.16		$	32.78		$	41.49		$	51.18
Total Returnc		(9.21	%)		(0.96	%)		(14.09	%)		(20.99	%)		(18.93	%)		(11.33	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	310		$	273		$	89		$	131		$	216		$	121
Ratios to average net assets:
Net investment income (loss)		(1.87	%)		(2.00	%)		(2.13	%)		(2.40	%)		(2.29	%)		(2.39	%)
Total expensesd		2.41	%		2.41	%		2.41	%		2.42	%		2.40	%		2.42	%
Portfolio turnover rate		91	%		199	%		38	%		—			—			—

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	30.69		$	30.70		$	35.49		$	44.59		$	54.57		$	61.08
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.42	)		(.47	)		(.66	)		(.81	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		(2.54	)		.41			(4.32	)		(8.44	)		(9.17	)		(5.46	)
Total from investment operations		(2.71	)		(.01	)		(4.79	)		(9.10	)		(9.98	)		(6.51	)
Net asset value, end of period	$	27.98		$	30.69		$	30.70		$	35.49		$	44.59		$	54.57
Total Returnc		(8.83	%)		(0.07	%)		(13.47	%)		(20.39	%)		(18.31	%)		(10.66	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	722		$	2,680		$	3,015		$	3,825		$	1,409		$	1,578
Ratios to average net assets:
Net investment income (loss)		(1.13	%)		(1.32	%)		(1.38	%)		(1.65	%)		(1.53	%)		(1.64	%)
Total expensesd		1.66	%		1.65	%		1.65	%		1.67	%		1.65	%		1.67	%
Portfolio turnover rate		91	%		199	%		38	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 2016

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	4.8%
Guggenheim Strategy Fund I	4.8%
Microsemi Corp.	0.2%
Advanced Micro Devices, Inc.	0.2%
Gramercy Property Trust	0.2%
Curtiss-Wright Corp.	0.2%
IDACORP, Inc.	0.2%
Healthcare Realty Trust, Inc.	0.1%
Fair Isaac Corp.	0.1%
Aspen Technology, Inc.	0.1%
Top Ten Total	10.9%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

78 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 63.9%
Financial - 16.6%
Gramercy Property Trust		1,641	$	15,820
Healthcare Realty Trust, Inc.		443		15,088
Prosperity Bancshares, Inc.		259		14,216
PrivateBancorp, Inc. — Class A		304		13,959
Investors Bancorp, Inc.		1,154		13,859
Medical Properties Trust, Inc.		921		13,603
Webster Financial Corp.		357		13,569
Ellie Mae, Inc.*		127		13,373
Bank of the Ozarks, Inc.		344		13,210
New Residential Investment Corp.		942		13,008
Umpqua Holdings Corp.		859		12,928
First Industrial Realty Trust, Inc.		452		12,755
Education Realty Trust, Inc.		285		12,296
DuPont Fabros Technology, Inc.		290		11,963
Hudson Pacific Properties, Inc.		363		11,932
Radian Group, Inc.		836		11,327
Physicians Realty Trust		525		11,309
National Health Investors, Inc.		144		11,301
Chemical Financial Corp.		255		11,253
Acadia Realty Trust		310		11,235
Wintrust Financial Corp.		200		11,114
Sunstone Hotel Investors, Inc.		845		10,808
IBERIABANK Corp.		159		10,672
CNO Financial Group, Inc.		697		10,644
MGIC Investment Corp.*		1,325		10,599
MB Financial, Inc.		272		10,347
UMB Financial Corp.		174		10,344
FNB Corp.		817		10,049
RLI Corp.		147		10,048
RLJ Lodging Trust		474		9,968
LaSalle Hotel Properties		415		9,906
Texas Capital Bancshares, Inc.*		179		9,831
Urban Edge Properties		349		9,821
Home BancShares, Inc.		471		9,802
Hancock Holding Co.		301		9,761
Fulton Financial Corp.		669		9,714
Genworth Financial, Inc. — Class A*		1,951		9,677
Primerica, Inc.		182		9,651
CoreSite Realty Corp.		130		9,625
Stifel Financial Corp.*		250		9,612
United Bankshares, Inc.		255		9,606
QTS Realty Trust, Inc. — Class A		181		9,566
Mack-Cali Realty Corp.		347		9,445
Washington Federal, Inc.		352		9,390
Valley National Bancorp		962		9,360
Lexington Realty Trust		893		9,198
Retail Opportunity Investments Corp.		417		9,157
Pinnacle Financial Partners, Inc.		168		9,085
EastGroup Properties, Inc.		123		9,048
First Financial Bankshares, Inc.		247		9,001
Washington Prime Group, Inc.		720		8,914
Kite Realty Group Trust		320		8,870
Washington Real Estate Investment Trust		285		8,869
Cathay General Bancorp		288		8,865
Selective Insurance Group, Inc.		220		8,769
FirstCash, Inc.		185		8,709
Hope Bancorp, Inc.		498		8,650
PS Business Parks, Inc.		76		8,631
Sterling Bancorp		492		8,609
WageWorks, Inc.*		141		8,588
First Citizens BancShares, Inc. — Class A		29		8,523
Cousins Properties, Inc.		807		8,425
Glacier Bancorp, Inc.		295		8,413
Ryman Hospitality Properties, Inc.		168		8,091
Community Bank System, Inc.		167		8,034
Colony Capital, Inc. — Class A		437		7,966
CBL & Associates Properties, Inc.		654		7,940
LendingClub Corp.*		1,275		7,880
Janus Capital Group, Inc.		562		7,875
BancorpSouth, Inc.		336		7,795
Evercore Partners, Inc. — Class A		151		7,778
EverBank Financial Corp.		400		7,743
Essent Group Ltd.*		289		7,690
Great Western Bancorp, Inc.		229		7,630
LTC Properties, Inc.		146		7,591
BGC Partners, Inc. — Class A		846		7,403
Enstar Group Ltd.*		45		7,401
Pebblebrook Hotel Trust		277		7,368
Columbia Banking System, Inc.		225		7,362
Old National Bancorp		515		7,241
Kennedy-Wilson Holdings, Inc.		321		7,239
Colony Starwood Homes		252		7,232
Trustmark Corp.		261		7,193
DiamondRock Hospitality Co.		780		7,098
Alexander & Baldwin, Inc.		182		6,993
Monogram Residential Trust, Inc.		655		6,969
Capitol Federal Financial, Inc.		495		6,965
CVB Financial Corp.		393		6,921
South State Corp.		92		6,904
GEO Group, Inc.		288		6,849
Invesco Mortgage Capital, Inc.		437		6,656
American Assets Trust, Inc.		153		6,637
Select Income REIT		246		6,617
Hilltop Holdings, Inc.*		291		6,536
STAG Industrial, Inc.		266		6,520
Blackhawk Network Holdings, Inc.*		213		6,427
Argo Group International Holdings Ltd.		113		6,375
International Bancshares Corp.		212		6,313
Sabra Health Care REIT, Inc.		250		6,295
PRA Group, Inc.*		179		6,183
Government Properties Income Trust		273		6,175
Financial Engines, Inc.		207		6,150
Potlatch Corp.		157		6,106
Pennsylvania Real Estate Investment Trust		265		6,103
Xenia Hotels & Resorts, Inc.		401		6,087
Kemper Corp.		154		6,055
First Midwest Bancorp, Inc.		312		6,040
American Equity Investment Life Holding Co.		332		5,886
Northwest Bancshares, Inc.		374		5,876

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
New York REIT, Inc.		642	$	5,874
Eagle Bancorp, Inc.*		119		5,870
TowneBank		242		5,815
Rexford Industrial Realty, Inc.		254		5,814
Horace Mann Educators Corp.		157		5,754
United Community Banks, Inc.		272		5,717
Ramco-Gershenson Properties Trust		305		5,716
Simmons First National Corp. — Class A		114		5,689
Waddell & Reed Financial, Inc. — Class A		308		5,593
LegacyTexas Financial Group, Inc.		172		5,440
NBT Bancorp, Inc.		165		5,424
Independent Bank Corp.		100		5,409
Global Net Lease, Inc.		661		5,393
Renasant Corp.		158		5,314
Parkway Properties, Inc.		312		5,307
Chesapeake Lodging Trust		230		5,267
Astoria Financial Corp.		358		5,227
BofI Holding, Inc.*		232		5,197
First Financial Bancorp		237		5,176
WesBanco, Inc.		157		5,162
CYS Investments, Inc.		588		5,127
Banner Corp.		117		5,118
Franklin Street Properties Corp.		405		5,103
Yadkin Financial Corp.		193		5,074
Provident Financial Services, Inc.		237		5,032
Park National Corp.		52		4,992
Four Corners Property Trust, Inc.		234		4,991
Seritage Growth Properties		97		4,916
Kearny Financial Corp.		359		4,886
Westamerica Bancorporation		96		4,884
Terreno Realty Corp.		175		4,814
ServisFirst Bancshares, Inc.		89		4,620
Ameris Bancorp		132		4,613
WisdomTree Investments, Inc.		447		4,600
Apollo Commercial Real Estate Finance, Inc.		281		4,597
Union Bankshares Corp.		168		4,497
FCB Financial Holdings, Inc. — Class A*		117		4,496
Summit Hotel Properties, Inc.		335		4,409
Agree Realty Corp.		88		4,351
AMERISAFE, Inc.		74		4,350
Tompkins Financial Corp.		56		4,279
First Merchants Corp.		158		4,227
Redwood Trust, Inc.		297		4,206
National General Holdings Corp.		188		4,181
Navigators Group, Inc.		43		4,168
PennyMac Mortgage Investment Trust		264		4,113
Boston Private Financial Holdings, Inc.		317		4,067
WSFS Financial Corp.		111		4,050
Beneficial Bancorp, Inc.		272		4,001
MBIA, Inc.*		510		3,973
Stewart Information Services Corp.		89		3,956
HFF, Inc. — Class A		140		3,877
S&T Bancorp, Inc.		132		3,827
BNC Bancorp		157		3,818
Alexander’s, Inc.		9		3,776
Safety Insurance Group, Inc.		56		3,764
Employers Holdings, Inc.		124		3,699
Aircastle Ltd.		186		3,694
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		158		3,692
St. Joe Co.*		196		3,602
United Fire Group, Inc.		84		3,555
Capstead Mortgage Corp.		371		3,499
Monmouth Real Estate Investment Corp.		244		3,482
First Commonwealth Financial Corp.		344		3,471
Infinity Property & Casualty Corp.		42		3,470
Cohen & Steers, Inc.		81		3,463
New Senior Investment Group, Inc.		296		3,416
FelCor Lodging Trust, Inc.		530		3,408
CareTrust REIT, Inc.		224		3,310
Banc of California, Inc.		189		3,300
Berkshire Hills Bancorp, Inc.		119		3,297
Lakeland Financial Corp.		93		3,294
Brookline Bancorp, Inc.		269		3,279
Hanmi Financial Corp.		123		3,240
Ambac Financial Group, Inc.*		175		3,218
iStar, Inc.*		299		3,208
ARMOUR Residential REIT, Inc.		142		3,201
Universal Insurance Holdings, Inc.		127		3,200
CenterState Banks, Inc.		180		3,191
Cardinal Financial Corp.		122		3,183
FNFV Group*		255		3,182
KCG Holdings, Inc. — Class A*		203		3,153
Nelnet, Inc. — Class A		78		3,149
Southside Bancshares, Inc.		97		3,121
State Bank Financial Corp.		136		3,104
Third Point Reinsurance Ltd.*		256		3,072
Heartland Financial USA, Inc.		85		3,066
MTGE Investment Corp.		178		3,060
Piper Jaffray Cos.*		63		3,043
Universal Health Realty Income Trust		48		3,024
RE/MAX Holdings, Inc. — Class A		69		3,021
PHH Corp.*		205		2,962
Central Pacific Financial Corp.		117		2,947
City Holding Co.		58		2,917
Meridian Bancorp, Inc.		187		2,912
Maiden Holdings Ltd.		229		2,906
Hersha Hospitality Trust		160		2,883
Tier REIT, Inc.		185		2,856
National Storage Affiliates Trust		136		2,848
InfraREIT, Inc.		155		2,812
Chatham Lodging Trust		146		2,811
Investors Real Estate Trust		471		2,802
Sandy Spring Bancorp, Inc.		91		2,783
Pacific Premier Bancorp, Inc.*		105		2,778
First Busey Corp.		120		2,712
Walker & Dunlop, Inc.*		107		2,703
Stock Yards Bancorp, Inc.		82		2,703
United Financial Bancorp, Inc.		194		2,685
Northfield Bancorp, Inc.		163		2,624
New York Mortgage Trust, Inc. REIT		427		2,571

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Flushing Financial Corp.		108	$	2,562
Greenhill & Company, Inc.		108		2,546
Virtus Investment Partners, Inc.		26		2,544
Saul Centers, Inc.		38		2,531
NorthStar Realty Europe Corp.		231		2,529
National Bank Holdings Corp. — Class A		108		2,524
Urstadt Biddle Properties, Inc. — Class A		113		2,511
TrustCo Bank Corp. NY		354		2,510
Capital Bank Financial Corp. — Class A		77		2,472
Getty Realty Corp.		103		2,465
FBL Financial Group, Inc. — Class A		38		2,431
First Interstate BancSystem, Inc. — Class A		77		2,426
Easterly Government Properties, Inc.		126		2,404
First BanCorp*		462		2,402
Cass Information Systems, Inc.		42		2,379
Opus Bank		67		2,370
Customers Bancorp, Inc.*		94		2,365
Oritani Financial Corp.		150		2,358
Greenlight Capital Re Ltd. — Class A*		115		2,351
Washington Trust Bancorp, Inc.		58		2,333
Enterprise Financial Services Corp.		74		2,313
Cedar Realty Trust, Inc.		321		2,311
HomeStreet, Inc.*		92		2,306
Silver Bay Realty Trust Corp.		130		2,279
International. FCStone, Inc.*		58		2,253
Flagstar Bancorp, Inc.*		81		2,248
Univest Corporation of Pennsylvania		96		2,243
Community Trust Bancorp, Inc.		60		2,227
MainSource Financial Group, Inc.		89		2,221
Diamond Hill Investment Group, Inc.		12		2,217
Altisource Residential Corp.		203		2,213
Investment Technology Group, Inc.		129		2,211
1st Source Corp.		61		2,177
BancFirst Corp.		30		2,175
OM Asset Management plc		155		2,156
German American Bancorp, Inc.		55		2,141
TriCo Bancshares		79		2,115
Lakeland Bancorp, Inc.		150		2,106
Nationstar Mortgage Holdings, Inc.*		141		2,088
Bryn Mawr Bank Corp.		65		2,079
Encore Capital Group, Inc.*		92		2,068
First Potomac Realty Trust		225		2,059
Heritage Financial Corp.		114		2,046
Dime Community Bancshares, Inc.		122		2,045
James River Group Holdings Ltd.		55		1,991
ConnectOne Bancorp, Inc.		110		1,987
Ladder Capital Corp. — Class A		149		1,973
Moelis & Co. — Class A		73		1,963
Meta Financial Group, Inc.		32		1,940
CoBiz Financial, Inc.		145		1,930
Independent Bank Group, Inc.		43		1,899
Bridge Bancorp, Inc.		66		1,887
PJT Partners, Inc. — Class A		69		1,882
Camden National Corp.		39		1,862
First of Long Island Corp.		56		1,856
Seacoast Banking Corporation of Florida*		115		1,850
National Western Life Group, Inc. — Class A		9		1,848
WMIH Corp.*		787		1,842
Anworth Mortgage Asset Corp.		372		1,830
Ashford Hospitality Trust, Inc.		303		1,785
CatchMark Timber Trust, Inc. — Class A		150		1,754
Armada Hoffler Properties, Inc.		129		1,729
AG Mortgage Investment Trust, Inc.		109		1,717
Great Southern Bancorp, Inc.		42		1,709
OFG Bancorp		168		1,698
Citizens, Inc.*		181		1,694
Waterstone Financial, Inc.		99		1,682
Preferred Bank/Los Angeles CA		47		1,680
Mercantile Bank Corp.		62		1,665
Western Asset Mortgage Capital Corp. REIT		159		1,657
Westwood Holdings Group, Inc.		31		1,646
Park Sterling Corp.		200		1,624
Gladstone Commercial Corp.		87		1,621
First Financial Corp.		39		1,587
Forestar Group, Inc.*		132		1,546
Suffolk Bancorp		44		1,530
Peoples Bancorp, Inc.		62		1,525
OceanFirst Financial Corp.		79		1,522
First Defiance Financial Corp.		34		1,518
First Community Bancshares, Inc.		61		1,513
Resource Capital Corp.		118		1,512
First Bancorp		76		1,504
Horizon Bancorp		51		1,498
Ashford Hospitality Prime, Inc.		106		1,495
QCR Holdings, Inc.		47		1,492
Arrow Financial Corp.		45		1,488
Stonegate Bank		44		1,485
Heritage Insurance Holdings, Inc.		103		1,484
Fidelity Southern Corp.		80		1,471
Virtu Financial, Inc. — Class A		98		1,467
Marcus & Millichap, Inc.*		56		1,464
Financial Institutions, Inc.		54		1,464
Altisource Portfolio Solutions S.A.*		45		1,458
NMI Holdings, Inc. — Class A*		191		1,455
Blue Hills Bancorp, Inc.		96		1,442
Cowen Group, Inc. — Class A*		397		1,441
CU Bancorp*		63		1,437
Ocwen Financial Corp.*		390		1,431
State Auto Financial Corp.		60		1,429
Whitestone REIT — Class B		102		1,416
Independence Realty Trust, Inc.		157		1,413
TriState Capital Holdings, Inc.*		86		1,389
Franklin Financial Network, Inc.*		37		1,384
CorEnergy Infrastructure Trust, Inc.		47		1,379
NexPoint Residential Trust, Inc.		70		1,376
Peapack Gladstone Financial Corp.		61		1,367
Independent Bank Corp.		79		1,330
Southwest Bancorp, Inc.		70		1,329
State National Companies, Inc.		118		1,312
Ares Commercial Real Estate Corp.		104		1,310
Farmer Mac — Class C		33		1,304

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Clifton Bancorp, Inc.		85	$	1,300
Dynex Capital, Inc.		174		1,291
United Community Financial Corp.		181		1,287
Arlington Asset Investment Corp. — Class A		87		1,287
Acacia Research Corp.		194		1,265
First Foundation, Inc.*		51		1,258
Pacific Continental Corp.		74		1,245
One Liberty Properties, Inc.		51		1,232
Bank Mutual Corp.		159		1,221
Triumph Bancorp, Inc.*		61		1,210
RAIT Financial Trust		357		1,207
West Bancorporation, Inc.		61		1,196
Preferred Apartment Communities, Inc. — Class A		88		1,189
HomeTrust Bancshares, Inc.*		64		1,184
Houlihan Lokey, Inc.		47		1,177
Allegiance Bancshares, Inc.*		43		1,161
Republic Bancorp, Inc. — Class A		37		1,150
Bank of Marin Bancorp		23		1,144
CNB Financial Corp.		54		1,143
United Insurance Holdings Corp.		67		1,138
World Acceptance Corp.*		23		1,128
UMH Properties, Inc.		94		1,120
Nicolet Bankshares, Inc.*		29		1,112
Heritage Commerce Corp.		101		1,105
Peoples Financial Services Corp.		27		1,101
OneBeacon Insurance Group Ltd. — Class A		77		1,100
Live Oak Bancshares, Inc.		76		1,096
Community Healthcare Trust, Inc.		49		1,074
City Office REIT, Inc.		84		1,069
Fidelity & Guaranty Life		46		1,067
On Deck Capital, Inc.*		186		1,060
Guaranty Bancorp		59		1,053
Farmers National Banc Corp.		96		1,035
RMR Group, Inc. — Class A		27		1,024
Safeguard Scientifics, Inc.*		79		1,024
People’s Utah Bancorp		50		1,018
Atlantic Capital Bancshares, Inc.*		67		1,004
HCI Group, Inc.		33		1,002
Enova International, Inc.*		103		997
Citizens & Northern Corp.		45		989
Global Indemnity plc — Class A*		33		980
Enterprise Bancorp, Inc.		35		980
MidWestOne Financial Group, Inc.		32		972
Sun Bancorp, Inc.		42		969
First Connecticut Bancorp, Inc.		54		961
National Bankshares, Inc.		26		956
Bluerock Residential Growth REIT, Inc.		73		949
Trupanion, Inc.*		56		946
National Interstate Corp.		29		943
First Bancorp, Inc.		39		935
NewStar Financial, Inc.*		96		932
Old Second Bancorp, Inc.		111		922
Federated National Holding Co.		49		916
Ames National Corp.		33		913
Ladenburg Thalmann Financial Services, Inc.*		393		908
PennyMac Financial Services, Inc. — Class A*		53		902
Baldwin & Lyons, Inc. — Class B		35		897
American National Bankshares, Inc.		32		894
Carolina Financial Corp.		40		894
National Commerce Corp.*		33		893
GAIN Capital Holdings, Inc.		144		890
EMC Insurance Group, Inc.		33		889
Regional Management Corp.*		41		888
Green Bancorp, Inc.*		80		874
Bancorp, Inc.*		136		873
Farmers Capital Bank Corp.		29		860
Bar Harbor Bankshares		23		845
Sierra Bancorp		45		844
Territorial Bancorp, Inc.		29		831
Orchid Island Capital, Inc.		79		823
Consolidated-Tomoka Land Co.		16		819
Macatawa Bank Corp.		102		815
Penns Woods Bancorp, Inc.		18		800
Great Ajax Corp.		58		792
eHealth, Inc.*		70		785
Heritage Oaks Bancorp		94		771
Access National Corp.		32		765
WashingtonFirst Bankshares, Inc.		31		763
BankFinancial Corp.		60		762
FRP Holdings, Inc.*		24		746
Cascade Bancorp*		122		739
Trinity Place Holdings, Inc.*		75		734
First Business Financial Services, Inc.		31		729
BSB Bancorp, Inc.*		31		726
Merchants Bancshares, Inc.		22		713
Hingham Institution for Savings		5		693
Charter Financial Corp.		53		683
CommunityOne Bancorp*		49		678
Owens Realty Mortgage, Inc.		39		675
Northrim BanCorp, Inc.		26		670
Codorus Valley Bancorp, Inc.		30		656
Atlas Financial Holdings, Inc.*		41		647
Bear State Financial, Inc.		70		643
Capital City Bank Group, Inc.		43		635
Old Line Bancshares, Inc.		32		631
First Mid-Illinois Bancshares, Inc.		23		627
MBT Financial Corp.		69		624
Real Industry, Inc.*		102		624
Marlin Business Services Corp.		32		620
LCNB Corp.		34		619
Home Bancorp, Inc.		22		616
Summit Financial Group, Inc.		32		613
ACNB Corp.		23		611
Southern First Bancshares, Inc.*		22		607
Associated Capital Group, Inc. — Class A		17		603
Tiptree Financial, Inc. — Class A		101		600
Investors Title Co.		6		597

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Stratus Properties, Inc.*		24	$	586
MutualFirst Financial, Inc.		21		582
First Northwest Bancorp*		43		580
Shore Bancshares, Inc.		49		577
First NBC Bank Holding Co.*		61		576
Orrstown Financial Services, Inc.		29		573
Southern Missouri Bancorp, Inc.		23		573
SI Financial Group, Inc.		43		568
Premier Financial Bancorp, Inc.		33		566
Southern National Bancorp of Virginia, Inc.		43		561
Veritex Holdings, Inc.*		32		556
Hallmark Financial Services, Inc.*		54		556
Equity Bancshares, Inc. — Class A*		21		545
Century Bancorp, Inc. — Class A		12		544
Oppenheimer Holdings, Inc. — Class A		38		543
Lake Sunapee Bank Group		30		542
Central Valley Community Bancorp		34		539
Republic First Bancorp, Inc.*		130		534
Crawford & Co. — Class B		46		522
Bankwell Financial Group, Inc.		22		521
C&F Financial Corp.		12		517
Donegal Group, Inc. — Class A		32		516
Union Bankshares, Inc.		15		511
Middleburg Financial Corp.		18		509
Provident Financial Holdings, Inc.		26		509
First Community Financial Partners, Inc.*		53		505
Farmland Partners, Inc.		45		504
First Financial Northwest, Inc.		35		496
GAMCO Investors, Inc. — Class A		17		484
Independence Holding Co.		28		481
Westfield Financial, Inc.		62		474
First Internet Bancorp		20		462
Calamos Asset Management, Inc. — Class A		66		450
ESSA Bancorp, Inc.		32		443
Pzena Investment Management, Inc. — Class A		57		439
Pacific Mercantile Bancorp*		59		435
Blue Capital Reinsurance Holdings Ltd.		23		421
Manning & Napier, Inc. — Class A		58		411
Impac Mortgage Holdings, Inc.*		31		409
Hennessy Advisors, Inc.		11		390
Xenith Bankshares, Inc.*		168		388
County Bancorp, Inc.		19		380
Midland States Bancorp, Inc.		14		355
Chemung Financial Corp.		12		348
FBR & Co.		26		344
Silvercrest Asset Management Group, Inc. — Class A		27		320
Walter Investment Management Corp.*		72		292
Provident Bancorp, Inc.*		17		265
BBX Capital Corp. — Class A*		12		248
Greene County Bancorp, Inc.		12		200
Medley Management, Inc. — Class A		23		193
Griffin Industrial Realty, Inc.		4		127
California First National Bancorp		9		126
Fifth Street Asset Management, Inc.		20		110
Huntington Bancshares, Inc.		1		8
United Development Funding IV†††		150		—
Total Financial				1,755,234
Consumer, Non-cyclical - 13.1%
Cepheid*		283		14,910
PAREXEL International Corp.*		204		14,167
HealthSouth Corp.		344		13,956
NuVasive, Inc.*		192		12,799
Deluxe Corp.		190		12,696
B&G Foods, Inc.		255		12,540
Bright Horizons Family Solutions, Inc.*		170		11,370
Horizon Pharma plc*		625		11,330
Exelixis, Inc.*		883		11,293
Cantel Medical Corp.		140		10,917
Healthcare Services Group, Inc.		274		10,844
Snyder’s-Lance, Inc.		312		10,476
TESARO, Inc.*		104		10,424
Sarepta Therapeutics, Inc.*		166		10,193
Ultragenyx Pharmaceutical, Inc.*		141		10,002
Catalent, Inc.*		386		9,973
Prestige Brands Holdings, Inc.*		206		9,944
Medicines Co.*		262		9,888
Cimpress N.V.*		97		9,815
Wright Medical Group N.V.*		400		9,812
Molina Healthcare, Inc.*		168		9,797
Bluebird Bio, Inc.*		144		9,759
Integra LifeSciences Holdings Corp.*		118		9,741
Nevro Corp.*		93		9,708
Avon Products, Inc.*		1,707		9,662
Lancaster Colony Corp.		73		9,643
ARIAD Pharmaceuticals, Inc.*		687		9,404
Masimo Corp.*		158		9,399
Helen of Troy Ltd.*		109		9,393
Insulet Corp.*		224		9,171
Chemed Corp.		63		8,886
Nektar Therapeutics*		503		8,642
Darling Ingredients, Inc.*		639		8,633
Team Health Holdings, Inc.*		264		8,596
ABM Industries, Inc.		216		8,575
Kite Pharma, Inc.*		152		8,491
Owens & Minor, Inc.		242		8,405
Sotheby’s		215		8,175
Prothena Corporation plc*		135		8,096
Ironwood Pharmaceuticals, Inc. — Class A*		502		7,972
Neogen Corp.*		141		7,887
Cardtronics plc — Class A*		175		7,805
Vector Group Ltd.		361		7,776
United Natural Foods, Inc.*		193		7,727
Exact Sciences Corp.*		410		7,614
Ligand Pharmaceuticals, Inc. — Class B*		74		7,552
Matthews International Corp. — Class A		124		7,534
Monro Muffler Brake, Inc.		123		7,524
Penumbra, Inc.*		99		7,523
Sanderson Farms, Inc.		78		7,514

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Fresh Del Monte Produce, Inc.		125	$	7,488
HMS Holdings Corp.*		328		7,272
ICU Medical, Inc.*		57		7,204
FTI Consulting, Inc.*		161		7,175
Haemonetics Corp.*		198		7,170
On Assignment, Inc.*		197		7,149
Incorporated Research Holdings, Inc. — Class A*		160		7,132
Advisory Board Co.*		159		7,114
Grand Canyon Education, Inc.*		174		7,028
J&J Snack Foods Corp.		58		6,909
CEB, Inc.		125		6,809
Travelport Worldwide Ltd.		450		6,763
Impax Laboratories, Inc.*		284		6,731
Radius Health, Inc.*		122		6,599
Brink’s Co.		175		6,489
Aaron’s, Inc.		255		6,482
Puma Biotechnology, Inc.*		96		6,437
HealthEquity, Inc.*		167		6,321
Halyard Health, Inc.*		181		6,273
WD-40 Co.		55		6,184
NxStage Medical, Inc.*		247		6,173
Globus Medical, Inc. — Class A*		272		6,139
Alder Biopharmaceuticals, Inc.*		182		5,964
Depomed, Inc.*		237		5,923
AMN Healthcare Services, Inc.*		183		5,832
Dean Foods Co.		355		5,822
Select Medical Holdings Corp.*		414		5,589
DeVry Education Group, Inc.		242		5,581
Five Prime Therapeutics, Inc.*		106		5,564
LifeLock, Inc.*		328		5,550
Ophthotech Corp.*		119		5,489
Cambrex Corp.*		123		5,469
Myriad Genetics, Inc.*		263		5,413
Zeltiq Aesthetics, Inc.*		138		5,412
PRA Health Sciences, Inc.*		94		5,312
Boston Beer Company, Inc. — Class A*		34		5,279
Magellan Health, Inc.*		97		5,212
SUPERVALU, Inc.*		1,033		5,155
Theravance Biopharma, Inc.*		142		5,146
Amedisys, Inc.*		108		5,124
Halozyme Therapeutics, Inc.*		423		5,110
Surgical Care Affiliates, Inc.*		104		5,071
Huron Consulting Group, Inc.*		84		5,020
Universal Corp.		86		5,007
Diplomat Pharmacy, Inc.*		177		4,958
Natus Medical, Inc.*		126		4,951
Community Health Systems, Inc.*		428		4,939
Pacira Pharmaceuticals, Inc.*		141		4,825
Sage Therapeutics, Inc.*		103		4,743
Cynosure, Inc. — Class A*		92		4,686
Korn/Ferry International		222		4,662
Cal-Maine Foods, Inc.		120		4,625
Supernus Pharmaceuticals, Inc.*		182		4,501
Clovis Oncology, Inc.*		124		4,470
Spark Therapeutics, Inc.*		74		4,444
Abaxis, Inc.		86		4,439
Insperity, Inc.		61		4,431
Air Methods Corp.*		138		4,346
Portola Pharmaceuticals, Inc.*		191		4,338
CONMED Corp.		108		4,326
Analogic Corp.		48		4,253
FibroGen, Inc.*		203		4,202
Cempra, Inc.*		173		4,187
Spectranetics Corp.*		166		4,165
SpartanNash Co.		143		4,136
EVERTEC, Inc.		246		4,127
Amicus Therapeutics, Inc.*		552		4,085
Merit Medical Systems, Inc.*		167		4,056
Endologix, Inc.*		314		4,019
Emergent BioSolutions, Inc.*		126		3,973
ACCO Brands Corp.*		412		3,971
TherapeuticsMD, Inc.*		583		3,970
Repligen Corp.*		131		3,955
Calavo Growers, Inc.		60		3,926
Synergy Pharmaceuticals, Inc.*		704		3,879
Acceleron Pharma, Inc.*		107		3,872
Green Dot Corp. — Class A*		165		3,805
Array BioPharma, Inc.*		561		3,787
Inogen, Inc.*		63		3,774
Andersons, Inc.		104		3,763
Paylocity Holding Corp.*		84		3,735
Ensign Group, Inc.		185		3,724
Navigant Consulting, Inc.*		184		3,720
MacroGenics, Inc.*		124		3,709
Achillion Pharmaceuticals, Inc.*		456		3,694
TrueBlue, Inc.*		163		3,694
Team, Inc.*		112		3,664
Performance Food Group Co.*		145		3,596
TriNet Group, Inc.*		163		3,526
Aerie Pharmaceuticals, Inc.*		93		3,510
Luminex Corp.*		154		3,499
Acorda Therapeutics, Inc.*		167		3,487
Insmed, Inc.*		240		3,485
Innoviva, Inc.*		314		3,451
Seaboard Corp.*		1		3,440
MiMedx Group, Inc.*		397		3,406
NutriSystem, Inc.		113		3,355
Kindred Healthcare, Inc.		328		3,352
AMAG Pharmaceuticals, Inc.*		135		3,309
Healthways, Inc.*		123		3,255
Central Garden & Pet Co. — Class A*		130		3,224
Dermira, Inc.*		95		3,213
PharMerica Corp.*		114		3,200
Vascular Solutions, Inc.*		65		3,135
Retrophin, Inc.*		140		3,133
Meridian Bioscience, Inc.		162		3,125
ICF International, Inc.*		70		3,102
Coherus Biosciences, Inc.*		115		3,080
Xencor, Inc.*		125		3,061
Merrimack Pharmaceuticals, Inc.*		475		3,016
Quad/Graphics, Inc.		112		2,993

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Raptor Pharmaceutical Corp.*		331	$	2,969
Lexicon Pharmaceuticals, Inc.*		164		2,963
Momenta Pharmaceuticals, Inc.*		253		2,958
US Physical Therapy, Inc.		47		2,947
Cardiovascular Systems, Inc.*		123		2,920
Orthofix International N.V.*		68		2,908
McGrath RentCorp		91		2,886
Viad Corp.		78		2,876
Lannett Company, Inc.*		107		2,843
National Healthcare Corp.		43		2,838
Pacific Biosciences of California, Inc.*		311		2,787
USANA Health Sciences, Inc.*		20		2,767
Coca-Cola Bottling Company Consolidated		18		2,667
ZIOPHARM Oncology, Inc.*		472		2,657
Apollo Education Group, Inc. — Class A*		332		2,639
Amphastar Pharmaceuticals, Inc.*		139		2,637
Anika Therapeutics, Inc.*		55		2,632
Capella Education Co.		45		2,612
Atrion Corp.		6		2,560
Rent-A-Center, Inc.		201		2,541
Providence Service Corp.*		51		2,480
Tootsie Roll Industries, Inc.		67		2,468
Glaukos Corp.*		65		2,453
Cerus Corp.*		393		2,441
Accelerate Diagnostics, Inc.*		89		2,426
LendingTree, Inc.*		25		2,423
Inovio Pharmaceuticals, Inc.*		257		2,395
Eagle Pharmaceuticals, Inc.*		34		2,380
Vanda Pharmaceuticals, Inc.*		142		2,363
Adeptus Health, Inc. — Class A*		54		2,325
Blueprint Medicines Corp.*		78		2,317
Quidel Corp.*		104		2,297
Inter Parfums, Inc.		68		2,194
Kelly Services, Inc. — Class A		114		2,191
Novavax, Inc.*		1,048		2,180
PDL BioPharma, Inc.		642		2,151
CryoLife, Inc.		122		2,144
LHC Group, Inc.*		58		2,139
CBIZ, Inc.*		191		2,137
Heron Therapeutics, Inc.*		124		2,137
Ingles Markets, Inc. — Class A		54		2,135
Vitae Pharmaceuticals, Inc.*		102		2,134
Genomic Health, Inc.*		72		2,082
Resources Connection, Inc.		138		2,062
ANI Pharmaceuticals, Inc.*		31		2,057
RPX Corp.*		192		2,052
Intra-Cellular Therapies, Inc.*		134		2,042
Agenus, Inc.*		284		2,039
SciClone Pharmaceuticals, Inc.*		194		1,989
Omega Protein Corp.*		85		1,986
MGP Ingredients, Inc.		49		1,985
Phibro Animal Health Corp. — Class A		73		1,984
National Beverage Corp.*		45		1,982
Triple-S Management Corp. — Class B*		90		1,974
BioTelemetry, Inc.*		106		1,968
Accuray, Inc.*		309		1,968
Kforce, Inc.		96		1,967
Weis Markets, Inc.		37		1,961
Atara Biotherapeutics, Inc.*		91		1,946
AtriCure, Inc.*		122		1,930
Strayer Education, Inc.*		41		1,914
Corcept Therapeutics, Inc.*		290		1,885
K12, Inc.*		131		1,880
Universal American Corp.		245		1,874
AngioDynamics, Inc.*		106		1,859
GenMark Diagnostics, Inc.*		156		1,841
Capital Senior Living Corp.*		109		1,831
Amplify Snack Brands, Inc.*		113		1,831
PTC Therapeutics, Inc.*		130		1,821
K2M Group Holdings, Inc.*		100		1,778
Career Education Corp.*		259		1,759
Flexion Therapeutics, Inc.*		90		1,759
Omeros Corp.*		157		1,752
Arrowhead Pharmaceuticals, Inc.*		234		1,720
SP Plus Corp.*		67		1,713
Progenics Pharmaceuticals, Inc.*		270		1,709
Aduro Biotech, Inc.*		137		1,703
Lion Biotechnologies, Inc.*		206		1,695
John B Sanfilippo & Son, Inc.		33		1,694
Otonomy, Inc.*		93		1,692
NeoGenomics, Inc.*		205		1,685
Novocure Ltd.*		196		1,674
OraSure Technologies, Inc.*		210		1,674
Ennis, Inc.		99		1,668
Albany Molecular Research, Inc.*		101		1,668
Arena Pharmaceuticals, Inc.*		950		1,663
Revlon, Inc. — Class A*		45		1,655
Landauer, Inc.		37		1,646
Cotiviti Holdings, Inc.*		49		1,642
Keryx Biopharmaceuticals, Inc.*		306		1,625
Bellicum Pharmaceuticals, Inc.*		81		1,612
Enanta Pharmaceuticals, Inc.*		60		1,597
Dynavax Technologies Corp.*		151		1,584
Intersect ENT, Inc.*		99		1,568
Ardelyx, Inc.*		121		1,566
Medifast, Inc.		41		1,549
Epizyme, Inc.*		156		1,535
Aimmune Therapeutics, Inc.*		102		1,530
Surmodics, Inc.*		50		1,505
Celldex Therapeutics, Inc.*		371		1,499
Advaxis, Inc.*		139		1,486
Teladoc, Inc.*		81		1,483
Forrester Research, Inc.		38		1,478
Global Blood Therapeutics, Inc.*		64		1,475
Cross Country Healthcare, Inc.*		125		1,473
CorVel Corp.*		38		1,459
Surgery Partners, Inc.*		72		1,457
STAAR Surgical Co.*		155		1,457
Hackett Group, Inc.		87		1,437
Spectrum Pharmaceuticals, Inc.*		300		1,401
ConforMIS, Inc.*		139		1,379
Invacare Corp.		123		1,374

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 85

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Loxo Oncology, Inc.*		52	$	1,361
Tobira Therapeutics, Inc.*		34		1,351
Carriage Services, Inc. — Class A		57		1,348
Barrett Business Services, Inc.		27		1,339
Axovant Sciences Ltd.*		95		1,330
Geron Corp.*		587		1,327
Rigel Pharmaceuticals, Inc.*		361		1,325
Heidrick & Struggles International, Inc.		71		1,317
Tejon Ranch Co.*		54		1,313
Heska Corp.*		24		1,306
Versartis, Inc.*		106		1,299
La Jolla Pharmaceutical Co.*		54		1,285
Revance Therapeutics, Inc.*		79		1,281
Organovo Holdings, Inc.*		334		1,266
NewLink Genetics Corp.*		84		1,262
Akebia Therapeutics, Inc.*		139		1,258
BioCryst Pharmaceuticals, Inc.*		285		1,257
Rockwell Medical, Inc.*		186		1,246
Sangamo BioSciences, Inc.*		269		1,245
CytomX Therapeutics, Inc.*		79		1,239
Foundation Medicine, Inc.*		53		1,238
Monster Worldwide, Inc.*		340		1,227
Teligent, Inc.*		160		1,216
Aratana Therapeutics, Inc.*		129		1,207
Cytokinetics, Inc.*		131		1,203
American Public Education, Inc.*		60		1,189
Trevena, Inc.*		173		1,168
Alarm.com Holdings, Inc.*		40		1,154
ServiceSource International, Inc.*		236		1,152
Smart & Final Stores, Inc.*		90		1,149
Almost Family, Inc.*		31		1,140
NanoString Technologies, Inc.*		57		1,139
Farmer Brothers Co.*		32		1,138
Curis, Inc.*		433		1,130
Natera, Inc.*		101		1,122
Sucampo Pharmaceuticals, Inc. — Class A*		91		1,120
Weight Watchers International, Inc.*		108		1,115
Exactech, Inc.*		41		1,108
TG Therapeutics, Inc.*		143		1,107
Immunomedics, Inc.*		339		1,102
Zogenix, Inc.*		96		1,097
REGENXBIO, Inc.*		78		1,093
Oxford Immunotec Global plc*		86		1,080
Civitas Solutions, Inc.*		59		1,077
RadNet, Inc.*		145		1,073
Insys Therapeutics, Inc.*		91		1,073
Adamas Pharmaceuticals, Inc.*		65		1,067
BioTime, Inc.*		269		1,049
Minerva Neurosciences, Inc.*		74		1,045
LeMaitre Vascular, Inc.		52		1,032
Collegium Pharmaceutical, Inc.*		53		1,021
Central Garden & Pet Co.*		39		1,014
Nutraceutical International Corp.*		32		1,000
Primo Water Corp.*		82		995
BioSpecifics Technologies Corp.*		21		959
CRA International, Inc.*		36		957
Aclaris Therapeutics, Inc.*		37		948
BioScrip, Inc.*		327		945
WaVe Life Sciences Ltd.*		29		942
OncoMed Pharmaceuticals, Inc.*		82		937
Ascent Capital Group, Inc. — Class A*		40		927
Paratek Pharmaceuticals, Inc.*		71		924
Craft Brew Alliance, Inc.*		49		923
Sorrento Therapeutics, Inc.*		119		921
XBiotech, Inc.*		68		915
Chimerix, Inc.*		165		914
Village Super Market, Inc. — Class A		28		896
Karyopharm Therapeutics, Inc.*		92		895
Idera Pharmaceuticals, Inc.*		345		883
ImmunoGen, Inc.*		327		876
OvaScience, Inc.*		122		874
Limoneira Co.		46		869
MediciNova, Inc.*		115		861
InVivo Therapeutics Holdings Corp.*		125		850
Seres Therapeutics, Inc.*		69		848
CSS Industries, Inc.		33		844
AxoGen, Inc.*		93		840
TerraVia Holdings, Inc.*		304		836
Chefs’ Warehouse, Inc.*		75		836
Natural Health Trends Corp.		29		820
MoneyGram International, Inc.*		115		817
Great Lakes Dredge & Dock Corp.*		229		802
Enzo Biochem, Inc.*		154		784
Avexis, Inc.*		19		783
MannKind Corp.*		1,258		780
Utah Medical Products, Inc.		13		777
Invitae Corp.*		88		771
Esperion Therapeutics, Inc.*		55		762
Addus HomeCare Corp.*		29		759
Quorum Health Corp.*		115		721
Nobilis Health Corp.*		215		720
MyoKardia, Inc.*		44		719
Ignyta, Inc.*		114		717
Franklin Covey Co.*		40		712
Seneca Foods Corp. — Class A*		25		706
Stemline Therapeutics, Inc.*		65		704
PharmAthene, Inc.*		241		699
RTI Surgical, Inc.*		223		698
Inventure Foods, Inc.*		74		696
Cellular Biomedicine Group, Inc.*		47		682
Durect Corp.*		490		681
Cara Therapeutics, Inc.*		81		676
Care.com, Inc.*		67		667
AAC Holdings, Inc.*		38		661
Textainer Group Holdings Ltd.		88		659
Edge Therapeutics, Inc.*		63		656
Egalet Corp.*		86		654
Concert Pharmaceuticals, Inc.*		64		647
Inotek Pharmaceuticals Corp.*		68		645
Entellus Medical, Inc.*		29		643
Pfenex, Inc.*		71		635

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Athersys, Inc.*		295	$	628
Vectrus, Inc.*		41		624
American Renal Associates Holdings, Inc.*		34		621
Alliance One International, Inc.*		32		612
ARC Document Solutions, Inc.*		159		595
Medgenics, Inc.*		105		585
Reata Pharmaceuticals, Inc. — Class A*		22		580
Vital Therapies, Inc.*		92		563
Tandem Diabetes Care, Inc.*		72		552
Cutera, Inc.*		46		548
Voyager Therapeutics, Inc.*		45		540
Tetraphase Pharmaceuticals, Inc.*		141		540
ChemoCentryx, Inc.*		89		538
Collectors Universe, Inc.		29		537
AcelRx Pharmaceuticals, Inc.*		137		533
Nature’s Sunshine Products, Inc.		33		528
National Research Corp. — Class A		32		521
PFSweb, Inc.*		57		509
NantKwest, Inc.*		65		506
CAI International, Inc.*		61		504
Synthetic Biologics, Inc.*		293		504
Lifevantage Corp.*		53		501
CPI Card Group, Inc.		82		495
Regulus Therapeutics, Inc.*		150		495
Trovagene, Inc.*		109		489
Flex Pharma, Inc.*		41		483
B. Riley Financial, Inc.		36		481
Cidara Therapeutics, Inc.*		42		481
Bridgepoint Education, Inc.*		70		481
Bio-Path Holdings, Inc.*		343		480
Applied Genetic Technologies Corp.*		49		479
Anthera Pharmaceuticals, Inc.*		152		479
Information Services Group, Inc.*		120		479
Ocular Therapeutix, Inc.*		69		474
Anavex Life Sciences Corp.*		127		461
Intellia Therapeutics, Inc.*		27		460
TransEnterix, Inc.*		270		456
Endocyte, Inc.*		147		454
Titan Pharmaceuticals, Inc.*		73		429
Senseonics Holdings, Inc.*		108		421
Iridex Corp.*		29		420
T2 Biosystems, Inc.*		57		413
Veracyte, Inc.*		54		411
Fortress Biotech, Inc.*		132		392
Natural Grocers by Vitamin Cottage, Inc.*		35		391
Genesis Healthcare, Inc.*		146		390
Proteostasis Therapeutics, Inc.*		25		390
Osiris Therapeutics, Inc.		77		382
Patriot National, Inc.*		42		378
Dimension Therapeutics, Inc.*		47		376
Asterias Biotherapeutics, Inc.*		88		373
Adverum Biotechnologies, Inc.*		89		366
Editas Medicine, Inc.*		27		364
Agile Therapeutics, Inc.*		51		356
Neff Corp. — Class A*		37		352
Synutra International, Inc.*		82		349
Neos Therapeutics, Inc.*		53		349
Axsome Therapeutics, Inc.*		43		339
Immune Design Corp.*		44		334
Liberty Tax, Inc.		26		332
ChromaDex Corp.*		111		331
GlycoMimetics, Inc.*		46		329
Mirati Therapeutics, Inc.*		49		324
Alico, Inc.		12		322
Lifeway Foods, Inc.*		18		305
Infinity Pharmaceuticals, Inc.*		191		298
Zafgen, Inc.*		89		295
Galena Biopharma, Inc.*		820		287
Lipocine, Inc.*		64		285
Cambium Learning Group, Inc.*		52		282
Argos Therapeutics, Inc.*		56		278
Avinger, Inc.*		58		277
Turning Point Brands, Inc.*		23		276
Syndax Pharmaceuticals, Inc.*		18		273
iRadimed Corp.*		16		272
vTv Therapeutics, Inc. — Class A*		30		216
Eiger BioPharmaceuticals, Inc.*		16		214
Corvus Pharmaceuticals, Inc.*		13		214
CytRx Corp.*		359		211
USMD Holdings, Inc.*		9		204
Second Sight Medical Products, Inc.*		55		194
Ampio Pharmaceuticals, Inc.*		170		126
ViewRay, Inc.*		26		118
Tokai Pharmaceuticals, Inc.*		39		60
Total Consumer, Non-cyclical				1,380,787
Industrial - 8.6%
Curtiss-Wright Corp.		172		15,671
Teledyne Technologies, Inc.*		133		14,355
EMCOR Group, Inc.		235		14,010
XPO Logistics, Inc.*		381		13,970
Woodward, Inc.		206		12,872
CLARCOR, Inc.		185		12,024
EnerSys		169		11,693
Tech Data Corp.*		136		11,521
Belden, Inc.		163		11,245
Littelfuse, Inc.		86		11,077
Joy Global, Inc.		382		10,596
Louisiana-Pacific Corp.*		561		10,564
Coherent, Inc.*		94		10,392
Dycom Industries, Inc.*		118		9,649
Generac Holdings, Inc.*		254		9,220
Drew Industries, Inc.		92		9,017
Universal Display Corp.*		161		8,937
Kennametal, Inc.		306		8,880
Esterline Technologies Corp.*		115		8,745
Sanmina Corp.*		286		8,142
John Bean Technologies Corp.		113		7,972
Tetra Tech, Inc.		224		7,945
Barnes Group, Inc.		195		7,907
MasTec, Inc.*		257		7,643
Granite Construction, Inc.		153		7,610
Mueller Water Products, Inc. — Class A		606		7,605

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Universal Forest Products, Inc.		77	$	7,583
Vishay Intertechnology, Inc.		529		7,454
Knight Transportation, Inc.		259		7,430
Moog, Inc. — Class A*		124		7,383
Masonite International Corp.*		118		7,335
Golar LNG Ltd.		345		7,314
Itron, Inc.*		130		7,249
Franklin Electric Company, Inc.		178		7,246
Hillenbrand, Inc.		229		7,246
Advanced Energy Industries, Inc.*		153		7,240
KLX, Inc.*		205		7,216
Mueller Industries, Inc.		220		7,132
GATX Corp.		159		7,083
Simpson Manufacturing Company, Inc.		161		7,076
MSA Safety, Inc.		121		7,022
Watts Water Technologies, Inc. — Class A		108		7,003
Rexnord Corp.*		322		6,894
Trex Company, Inc.*		115		6,753
RBC Bearings, Inc.*		88		6,730
Matson, Inc.		168		6,700
IMAX Corp.*		228		6,605
AZZ, Inc.		101		6,592
Applied Industrial Technologies, Inc.		141		6,590
GoPro, Inc. — Class A*		392		6,539
KapStone Paper and Packaging Corp.		335		6,338
Trinseo S.A.		111		6,278
Swift Transportation Co. — Class A*		291		6,247
Brady Corp. — Class A		178		6,161
Plexus Corp.*		129		6,035
Fabrinet*		135		6,020
Proto Labs, Inc.*		97		5,811
TASER International, Inc.*		202		5,779
Smith & Wesson Holding Corp.*		212		5,637
II-VI, Inc.*		231		5,620
Summit Materials, Inc. — Class A*		295		5,473
Triumph Group, Inc.		191		5,325
Actuant Corp. — Class A		229		5,322
Hub Group, Inc. — Class A*		130		5,299
Exponent, Inc.		100		5,106
Forward Air Corp.		115		4,975
Methode Electronics, Inc.		142		4,966
Apogee Enterprises, Inc.		111		4,961
TopBuild Corp.*		149		4,947
Greif, Inc. — Class A		99		4,909
Knowles Corp.*		343		4,819
Benchmark Electronics, Inc.*		193		4,815
Headwaters, Inc.*		283		4,788
EnPro Industries, Inc.		84		4,773
Albany International Corp. — Class A		111		4,704
Cubic Corp.		98		4,587
Kaman Corp.		104		4,568
Standex International Corp.		49		4,551
ESCO Technologies, Inc.		98		4,549
Gibraltar Industries, Inc.*		122		4,532
AAON, Inc.		157		4,525
Astec Industries, Inc.		75		4,490
OSI Systems, Inc.*		68		4,446
Tennant Co.		68		4,406
Rogers Corp.*		70		4,276
SPX FLOW, Inc.*		137		4,236
Comfort Systems USA, Inc.		144		4,221
Sturm Ruger & Company, Inc.		72		4,159
Atlas Air Worldwide Holdings, Inc.*		96		4,111
Aerojet Rocketdyne Holdings, Inc.*		231		4,061
Werner Enterprises, Inc.		173		4,026
AAR Corp.		128		4,009
Chart Industries, Inc.*		119		3,907
Boise Cascade Co.*		151		3,835
CIRCOR International, Inc.		64		3,812
US Ecology, Inc.		85		3,811
Greenbrier Companies, Inc.		106		3,742
Builders FirstSource, Inc.*		325		3,741
Badger Meter, Inc.		109		3,653
Multi-Color Corp.		53		3,498
Caesarstone Ltd.*		92		3,469
Patrick Industries, Inc.*		56		3,468
Astronics Corp.*		76		3,424
Ship Finance International Ltd.		232		3,417
Nordic American Tankers Ltd.		337		3,407
Heartland Express, Inc.		179		3,380
Rofin-Sinar Technologies, Inc.*		105		3,379
Lydall, Inc.*		64		3,272
TriMas Corp.*		175		3,257
Advanced Drainage Systems, Inc.		135		3,248
Raven Industries, Inc.		141		3,247
SPX Corp.*		161		3,243
TTM Technologies, Inc.*		281		3,217
Primoris Services Corp.		156		3,214
Tutor Perini Corp.*		146		3,135
Harsco Corp.		313		3,108
Federal Signal Corp.		233		3,090
Argan, Inc.		52		3,078
Briggs & Stratton Corp.		165		3,077
Air Transport Services Group, Inc.*		213		3,057
Lindsay Corp.		41		3,033
Sun Hydraulics Corp.		91		2,937
Saia, Inc.*		98		2,936
Scorpio Tankers, Inc.		634		2,935
Babcock & Wilcox Enterprises, Inc.*		177		2,921
Continental Building Products, Inc.*		137		2,876
Encore Wire Corp.		78		2,868
Altra Industrial Motion Corp.		98		2,839
General Cable Corp.		188		2,816
Aegion Corp. — Class A*		136		2,594
Echo Global Logistics, Inc.*		111		2,560
US Concrete, Inc.*		55		2,534
AVX Corp.		181		2,496
Insteel Industries, Inc.		68		2,464
Alamo Group, Inc.		37		2,438
Global Brass & Copper Holdings, Inc.		82		2,369
Manitowoc Company, Inc.		493		2,361
GasLog Ltd.		159		2,313

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
FARO Technologies, Inc.*		64	$	2,301
Quanex Building Products Corp.		133		2,296
Hyster-Yale Materials Handling, Inc.		38		2,285
CTS Corp.		122		2,269
Kadant, Inc.		42		2,189
Novanta, Inc.*		124		2,151
Energy Recovery, Inc.*		133		2,125
MYR Group, Inc.*		70		2,107
Triton International Ltd.		155		2,044
Griffon Corp.		117		1,990
PGT, Inc.*		185		1,974
Chase Corp.		28		1,935
Aerovironment, Inc.*		79		1,928
Stoneridge, Inc.*		104		1,914
Marten Transport Ltd.		90		1,890
NN, Inc.		102		1,862
Tredegar Corp.		99		1,840
ArcBest Corp.		95		1,807
Frontline Ltd.		252		1,807
Haynes International, Inc.		48		1,781
AEP Industries, Inc.		16		1,750
Gorman-Rupp Co.		68		1,741
Armstrong Flooring, Inc.*		91		1,718
National Presto Industries, Inc.		19		1,668
TimkenSteel Corp.*		153		1,599
Overseas Shipholding Group, Inc. — Class A		150		1,587
YRC Worldwide, Inc.*		127		1,565
Mistras Group, Inc.*		66		1,549
NCI Building Systems, Inc.*		106		1,547
Casella Waste Systems, Inc. — Class A*		150		1,545
Kimball Electronics, Inc.*		110		1,525
DHT Holdings, Inc.		356		1,492
Applied Optoelectronics, Inc.*		66		1,466
DXP Enterprises, Inc.*		50		1,410
Mesa Laboratories, Inc.		12		1,372
Powell Industries, Inc.		34		1,362
Columbus McKinnon Corp.		75		1,338
Greif, Inc. — Class B		22		1,333
Teekay Corp.		170		1,311
Park Electrochemical Corp.		75		1,303
American Railcar Industries, Inc.		31		1,286
CECO Environmental Corp.		113		1,275
Kratos Defense & Security Solutions, Inc.*		180		1,240
GP Strategies Corp.*		50		1,231
Park-Ohio Holdings Corp.		33		1,203
Multi Packaging Solutions International Ltd.*		82		1,182
Ply Gem Holdings, Inc.*		86		1,149
Teekay Tankers Ltd. — Class A		452		1,144
VSE Corp.		33		1,122
NVE Corp.		19		1,120
Energous Corp.*		57		1,118
Myers Industries, Inc.		84		1,091
LSI Industries, Inc.		92		1,033
Control4 Corp.*		78		958
Roadrunner Transportation Systems, Inc.*		119		950
Sparton Corp.*		36		945
Costamare, Inc.		103		941
Ducommun, Inc.*		41		936
Celadon Group, Inc.		106		926
Covenant Transportation Group, Inc. — Class A*		47		909
Fluidigm Corp.*		113		905
NV5 Global, Inc.*		28		905
Milacron Holdings Corp.*		56		894
Bel Fuse, Inc. — Class B		37		893
ZAGG, Inc.*		107		867
Olympic Steel, Inc.		36		796
Gener8 Maritime, Inc.*		152		778
Ardmore Shipping Corp.		109		767
Vishay Precision Group, Inc.*		47		753
Vicor Corp.*		64		742
Orion Group Holdings, Inc.*		104		712
Graham Corp.		37		707
Hurco Companies, Inc.		25		702
Hornbeck Offshore Services, Inc.*		126		693
LSB Industries, Inc.*		80		686
FreightCar America, Inc.		47		676
UFP Technologies, Inc.*		25		663
Heritage-Crystal Clean, Inc.*		49		651
Scorpio Bulkers, Inc.*		187		647
TRC Companies, Inc.*		73		633
Electro Scientific Industries, Inc.*		107		603
Layne Christensen Co.*		70		596
Hill International, Inc.*		125		576
Dynamic Materials Corp.		54		576
Dorian LPG Ltd.*		94		564
IES Holdings, Inc.*		30		534
Tidewater, Inc.		183		516
Hardinge, Inc.		45		501
Allied Motion Technologies, Inc.		24		454
Universal Logistics Holdings, Inc.		32		429
Lawson Products, Inc.*		24		426
Omega Flex, Inc.		11		424
Navios Maritime Acquisition Corp.		313		423
Radiant Logistics, Inc.*		146		415
Willis Lease Finance Corp.*		17		404
USA Truck, Inc.*		37		379
Aqua Metals, Inc.*		42		372
Ampco-Pittsburgh Corp.		33		366
Gencor Industries, Inc.*		30		359
American Superconductor Corp.*		45		315
Handy & Harman Ltd.*		11		231
Power Solutions International, Inc.*		19		195
PAM Transportation Services, Inc.*		9		180
NL Industries, Inc.*		32		126
Total Industrial				908,483
Consumer, Cyclical - 7.3%
Tenneco, Inc.*		219		12,761
Jack in the Box, Inc.		127		12,183
American Eagle Outfitters, Inc.		648		11,573

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Buffalo Wild Wings, Inc.*		73	$	10,273
Texas Roadhouse, Inc. — Class A		257		10,031
Hawaiian Holdings, Inc.*		205		9,963
Cracker Barrel Old Country Store, Inc.		74		9,784
Beacon Roofing Supply, Inc.*		232		9,760
Dana, Inc.		580		9,042
Big Lots, Inc.		186		8,882
TiVo Corp.*		454		8,848
Cheesecake Factory, Inc.		176		8,811
Lithia Motors, Inc. — Class A		92		8,788
Wolverine World Wide, Inc.		376		8,659
Five Below, Inc.*		208		8,380
Steven Madden Ltd.*		240		8,294
Papa John’s International, Inc.		105		8,279
Cooper Tire & Rubber Co.		215		8,174
UniFirst Corp.		59		7,780
Office Depot, Inc.		2,145		7,658
Bloomin’ Brands, Inc.		442		7,620
TRI Pointe Group, Inc.*		578		7,619
Churchill Downs, Inc.		52		7,610
Interval Leisure Group, Inc.		440		7,555
Deckers Outdoor Corp.*		126		7,503
G&K Services, Inc. — Class A		76		7,258
Anixter International, Inc.*		112		7,224
HNI Corp.		176		7,006
Allegiant Travel Co. — Class A		51		6,736
Herman Miller, Inc.		233		6,664
Dorman Products, Inc.*		103		6,582
PriceSmart, Inc.		78		6,533
Marriott Vacations Worldwide Corp.		87		6,379
Boyd Gaming Corp.*		321		6,349
Core-Mark Holding Company, Inc.		177		6,337
Liberty TripAdvisor Holdings, Inc. — Class A*		281		6,140
Chico’s FAS, Inc.		506		6,021
Columbia Sportswear Co.		106		6,014
Children’s Place, Inc.		73		5,831
Dave & Buster’s Entertainment, Inc.*		147		5,759
Cooper-Standard Holding, Inc.*		57		5,632
GNC Holdings, Inc. — Class A		266		5,432
DineEquity, Inc.		68		5,385
DSW, Inc. — Class A		261		5,345
KB Home		323		5,207
Mobile Mini, Inc.		172		5,194
Restoration Hardware Holdings, Inc.*		150		5,188
Group 1 Automotive, Inc.		81		5,174
Meritage Homes Corp.*		149		5,170
SkyWest, Inc.		195		5,150
American Axle & Manufacturing Holdings, Inc.*		297		5,114
G-III Apparel Group Ltd.*		167		4,868
HSN, Inc.		121		4,816
Sonic Corp.		182		4,765
La-Z-Boy, Inc.		191		4,691
Steelcase, Inc. — Class A		335		4,653
iRobot Corp.*		104		4,574
Fossil Group, Inc.*		163		4,527
Popeyes Louisiana Kitchen, Inc.*		84		4,464
Gentherm, Inc.*		142		4,462
Navistar International Corp.*		192		4,395
Genesco, Inc.*		80		4,357
American Woodmark Corp.*		54		4,351
Asbury Automotive Group, Inc.*		77		4,287
Knoll, Inc.		186		4,250
Callaway Golf Co.		366		4,249
Abercrombie & Fitch Co. — Class A		265		4,211
Interface, Inc. — Class A		252		4,206
Caleres, Inc.		166		4,198
Belmond Ltd. — Class A*		324		4,118
Universal Electronics, Inc.*		55		4,095
Virgin America, Inc.*		75		4,013
Oxford Industries, Inc.		59		3,994
Meritor, Inc.*		357		3,973
Standard Motor Products, Inc.		83		3,964
MDC Holdings, Inc.		153		3,947
Penn National Gaming, Inc.*		289		3,922
Select Comfort Corp.*		180		3,888
BMC Stock Holdings, Inc.*		214		3,794
Ascena Retail Group, Inc.*		672		3,756
Finish Line, Inc. — Class A		162		3,739
La Quinta Holdings, Inc.*		330		3,689
ClubCorp Holdings, Inc.		249		3,602
Hibbett Sports, Inc.*		90		3,591
Wabash National Corp.*		251		3,574
ScanSource, Inc.*		97		3,541
National CineMedia, Inc.		239		3,518
SeaWorld Entertainment, Inc.		259		3,491
Guess?, Inc.		237		3,463
International Speedway Corp. — Class A		102		3,409
Express, Inc.*		289		3,407
Cavco Industries, Inc.*		33		3,269
Cato Corp. — Class A		99		3,256
BJ’s Restaurants, Inc.*		90		3,200
Denny’s Corp.*		294		3,143
Carmike Cinemas, Inc.*		94		3,072
Ethan Allen Interiors, Inc.		97		3,033
Tailored Brands, Inc.		189		2,967
Essendant, Inc.		144		2,955
Pinnacle Entertainment, Inc.*		239		2,949
Bob Evans Farms, Inc.		77		2,949
Wesco Aircraft Holdings, Inc.*		216		2,901
DTS, Inc.		68		2,893
Superior Industries International, Inc.		97		2,829
Installed Building Products, Inc.*		78		2,798
Rush Enterprises, Inc. — Class A*		114		2,791
Barnes & Noble, Inc.		245		2,769
Douglas Dynamics, Inc.		86		2,747
Red Rock Resorts, Inc. — Class A		116		2,736
Nautilus, Inc.*		119		2,704
Buckle, Inc.		111		2,667
AMC Entertainment Holdings, Inc. — Class A		84		2,612

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Vitamin Shoppe, Inc.*		95	$	2,551
Fiesta Restaurant Group, Inc.*		103		2,472
Winnebago Industries, Inc.		104		2,451
Francesca’s Holdings Corp.*		156		2,407
Red Robin Gourmet Burgers, Inc.*		53		2,382
Crocs, Inc.*		286		2,374
Caesars Acquisition Co. — Class A*		185		2,298
Scientific Games Corp. — Class A*		201		2,265
LGI Homes, Inc.*		60		2,210
M/I Homes, Inc.*		92		2,168
EZCORP, Inc. — Class A*		196		2,168
Isle of Capri Casinos, Inc.*		97		2,161
Modine Manufacturing Co.*		182		2,159
Shake Shack, Inc. — Class A*		61		2,115
Tile Shop Holdings, Inc.*		127		2,102
Taylor Morrison Home Corp. — Class A*		118		2,077
H&E Equipment Services, Inc.		122		2,045
Ollie’s Bargain Outlet Holdings, Inc.*		78		2,044
Motorcar Parts of America, Inc.*		71		2,043
Sonic Automotive, Inc. — Class A		108		2,030
WCI Communities, Inc.*		85		2,016
MarineMax, Inc.*		96		2,011
Lumber Liquidators Holdings, Inc.*		102		2,006
Fox Factory Holding Corp.*		87		1,998
Tower International, Inc.		80		1,928
Kimball International, Inc. — Class B		143		1,850
Regis Corp.*		144		1,807
Marcus Corp.		72		1,803
Unifi, Inc.*		61		1,796
Chuy’s Holdings, Inc.*		64		1,788
Wingstop, Inc.		61		1,787
Party City Holdco, Inc.*		104		1,780
Carrols Restaurant Group, Inc.*		134		1,770
Eros International plc*		115		1,762
Ruth’s Hospitality Group, Inc.		124		1,751
Biglari Holdings, Inc.*		4		1,744
Titan International, Inc.		171		1,731
William Lyon Homes — Class A*		93		1,725
Zoe’s Kitchen, Inc.*		74		1,642
Caesars Entertainment Corp.*		219		1,632
Haverty Furniture Companies, Inc.		81		1,623
SiteOne Landscape Supply, Inc.*		45		1,617
Veritiv Corp.*		32		1,605
PetMed Express, Inc.		78		1,582
Eldorado Resorts, Inc.*		112		1,575
Libbey, Inc.		85		1,517
Barnes & Noble Education, Inc.*		155		1,483
Shoe Carnival, Inc.		55		1,466
Beazer Homes USA, Inc.*		122		1,423
Horizon Global Corp.*		71		1,415
Daktronics, Inc.		143		1,364
Iconix Brand Group, Inc.*		166		1,348
Pier 1 Imports, Inc.		314		1,331
Movado Group, Inc.		61		1,310
Flexsteel Industries, Inc.		25		1,293
Century Communities, Inc.*		59		1,269
Zumiez, Inc.*		70		1,260
Culp, Inc.		42		1,250
Fred’s, Inc. — Class A		137		1,241
Del Frisco’s Restaurant Group, Inc.*		92		1,239
Spartan Motors, Inc.		129		1,236
Planet Fitness, Inc. — Class A*		61		1,224
Sequential Brands Group, Inc.*		152		1,216
Vera Bradley, Inc.*		80		1,212
PC Connection, Inc.		44		1,162
Federal-Mogul Holdings Corp.*		120		1,153
Potbelly Corp.*		92		1,144
America’s Car-Mart, Inc.*		31		1,128
Citi Trends, Inc.		56		1,116
NACCO Industries, Inc. — Class A		16		1,087
Hooker Furniture Corp.		44		1,078
Del Taco Restaurants, Inc.*		90		1,073
Sportsman’s Warehouse Holdings, Inc.*		100		1,052
Malibu Boats, Inc. — Class A*		70		1,043
Tuesday Morning Corp.*		174		1,041
Monarch Casino & Resort, Inc.*		41		1,032
El Pollo Loco Holdings, Inc.*		80		1,007
Intrawest Resorts Holdings, Inc.*		62		1,006
PICO Holdings, Inc.*		85		1,002
Duluth Holdings, Inc. — Class B*		37		981
Miller Industries, Inc.		43		980
Supreme Industries, Inc. — Class A		50		965
Winmark Corp.		9		950
Perry Ellis International, Inc.*		49		945
Big 5 Sporting Goods Corp.		69		940
Bassett Furniture Industries, Inc.		40		930
Metaldyne Performance Group, Inc.		58		919
Reading International, Inc. — Class A*		65		868
Conn’s, Inc.*		80		826
Speedway Motorsports, Inc.		46		822
Hovnanian Enterprises, Inc. — Class A*		473		799
Arctic Cat, Inc.		51		790
AV Homes, Inc.*		47		782
Stein Mart, Inc.		121		768
Freshpet, Inc.*		87		753
Green Brick Partners, Inc.*		91		752
Habit Restaurants, Inc. — Class A*		52		728
Titan Machinery, Inc.*		69		718
Kirkland’s, Inc.*		57		694
Johnson Outdoors, Inc. — Class A		19		691
Weyco Group, Inc.		25		672
Superior Uniform Group, Inc.		32		633
Rush Enterprises, Inc. — Class B*		26		632
Nathan’s Famous, Inc.*		12		631
GMS, Inc.*		28		622
Destination XL Group, Inc.*		141		611
Bojangles’, Inc.*		38		606
Performance Sports Group Ltd.*		148		601
West Marine, Inc.*		72		595
Boot Barn Holdings, Inc.*		52		592
Lifetime Brands, Inc.		43		579
Ruby Tuesday, Inc.*		231		578

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Century Casinos, Inc.*		83	$	574
Stage Stores, Inc.		100		561
Build-A-Bear Workshop, Inc. — Class A*		53		549
Jamba, Inc.*		49		535
J Alexander’s Holdings, Inc.*		52		527
Escalade, Inc.		41		523
New Home Company, Inc.*		49		523
JAKKS Pacific, Inc.*		60		518
Lindblad Expeditions Holdings, Inc.*		57		513
Sears Holdings Corp.*		44		504
Golden Entertainment, Inc.		40		499
Vince Holding Corp.*		84		474
Delta Apparel, Inc.*		28		461
Strattec Security Corp.		13		459
Red Lion Hotels Corp.*		55		459
Gaia, Inc.*		60		432
Kona Grill, Inc.*		34		427
Tilly’s, Inc. — Class A*		45		423
Marine Products Corp.		42		377
Systemax, Inc.		45		356
MCBC Holdings, Inc.		30		342
Luby’s, Inc.*		75		322
Workhorse Group, Inc.*		44		319
Unique Fabricating, Inc.		26		318
Container Store Group, Inc.*		63		316
Blue Bird Corp.*		21		307
UCP, Inc. — Class A*		31		273
Empire Resorts, Inc.*		13		263
Sears Hometown and Outlet Stores, Inc.*		44		217
Noodles & Co.*		43		205
Fogo De Chao, Inc.*		19		201
CompX International, Inc.		6		69
Total Consumer, Cyclical				772,577
Technology - 7.1%
Microsemi Corp.*		442		18,556
Advanced Micro Devices, Inc.*		2,545		17,586
Fair Isaac Corp.		121		15,075
Aspen Technology, Inc.*		321		15,020
Take-Two Interactive Software, Inc.*		324		14,606
Cavium, Inc.*		250		14,550
MAXIMUS, Inc.		249		14,083
EPAM Systems, Inc.*		187		12,961
Cirrus Logic, Inc.*		243		12,915
SYNNEX Corp.		113		12,895
Monolithic Power Systems, Inc.		151		12,156
Blackbaud, Inc.		183		12,140
j2 Global, Inc.		182		12,124
Integrated Device Technology, Inc.*		523		12,081
Medidata Solutions, Inc.*		213		11,876
Proofpoint, Inc.*		158		11,826
Intersil Corp. — Class A		522		11,447
Science Applications International Corp.		164		11,377
Mentor Graphics Corp.		416		10,999
NetScout Systems, Inc.*		365		10,676
Convergys Corp.		346		10,526
MKS Instruments, Inc.		206		10,244
CACI International, Inc. — Class A*		95		9,586
Entegris, Inc.*		549		9,564
Silicon Laboratories, Inc.*		160		9,408
Ambarella, Inc.*		124		9,128
FleetMatics Group plc*		152		9,117
Verint Systems, Inc.*		241		9,069
Cornerstone OnDemand, Inc.*		195		8,960
Electronics for Imaging, Inc.*		183		8,951
ACI Worldwide, Inc.*		449		8,702
Paycom Software, Inc.*		171		8,572
Synaptics, Inc.*		144		8,436
Lumentum Holdings, Inc.*		196		8,188
Acxiom Corp.*		302		8,048
CommVault Systems, Inc.*		150		7,970
3D Systems Corp.*		416		7,467
Tessera Technologies, Inc.		191		7,342
Semtech Corp.*		251		6,960
Inphi Corp.*		156		6,788
Power Integrations, Inc.		106		6,681
Synchronoss Technologies, Inc.*		160		6,589
Diebold, Inc.		265		6,568
HubSpot, Inc.*		112		6,453
ExlService Holdings, Inc.*		127		6,330
MicroStrategy, Inc. — Class A*		37		6,195
Imperva, Inc.*		111		5,962
Envestnet, Inc.*		161		5,868
Ebix, Inc.		98		5,571
2U, Inc.*		143		5,475
RealPage, Inc.*		209		5,371
Omnicell, Inc.*		139		5,324
BroadSoft, Inc.*		114		5,307
Syntel, Inc.*		126		5,281
Progress Software Corp.		194		5,277
Rambus, Inc.*		422		5,275
CSG Systems International, Inc.		124		5,125
Cabot Microelectronics Corp.		92		4,868
SPS Commerce, Inc.*		64		4,698
Insight Enterprises, Inc.*		142		4,622
Stratasys Ltd.*		190		4,577
MaxLinear, Inc. — Class A*		216		4,378
Sykes Enterprises, Inc.*		150		4,220
Globant S.A.*		100		4,212
Interactive Intelligence Group, Inc.*		70		4,210
Pegasystems, Inc.		140		4,129
Qualys, Inc.*		105		4,010
Callidus Software, Inc.*		216		3,964
MACOM Technology Solutions Holdings, Inc.*		90		3,811
Amkor Technology, Inc.*		389		3,781
Cvent, Inc.*		117		3,710
Mercury Systems, Inc.*		151		3,709
Cray, Inc.*		156		3,672
Bottomline Technologies de, Inc.*		156		3,636
ManTech International Corp. — Class A		96		3,618
Brooks Automation, Inc.		264		3,593
Pure Storage, Inc. — Class A*		264		3,577

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Super Micro Computer, Inc.*		150	$	3,506
Press Ganey Holdings, Inc.*		86		3,474
Monotype Imaging Holdings, Inc.		157		3,471
New Relic, Inc.*		85		3,257
inContact, Inc.*		228		3,188
Diodes, Inc.*		148		3,158
Lattice Semiconductor Corp.*		466		3,024
Veeco Instruments, Inc.*		154		3,023
MTS Systems Corp.		65		2,992
FormFactor, Inc.*		266		2,886
CEVA, Inc.*		77		2,700
Virtusa Corp.*		107		2,641
Photronics, Inc.*		253		2,608
InvenSense, Inc. — Class A*		317		2,352
Quality Systems, Inc.		199		2,253
PROS Holdings, Inc.*		98		2,216
Engility Holdings, Inc.*		70		2,205
Barracuda Networks, Inc.*		85		2,166
Nimble Storage, Inc.*		244		2,155
Silver Spring Networks, Inc.*		147		2,084
Rudolph Technologies, Inc.*		116		2,058
Nanometrics, Inc.*		92		2,055
Applied Micro Circuits Corp.*		294		2,043
Five9, Inc.*		129		2,023
Benefitfocus, Inc.*		50		1,996
Ultratech, Inc.*		84		1,939
Unisys Corp.*		196		1,909
PDF Solutions, Inc.*		105		1,908
TeleTech Holdings, Inc.		64		1,855
Actua Corp.*		139		1,800
LivePerson, Inc.*		206		1,732
Vocera Communications, Inc.*		97		1,639
KEYW Holding Corp.*		140		1,546
Workiva, Inc.*		85		1,541
Alpha & Omega Semiconductor Ltd.*		70		1,520
Brightcove, Inc.*		116		1,514
Axcelis Technologies, Inc.*		113		1,501
Epiq Systems, Inc.		91		1,501
Exar Corp.*		158		1,471
Evolent Health, Inc. — Class A*		59		1,453
Digimarc Corp.*		37		1,419
InnerWorkings, Inc.*		150		1,413
Hortonworks, Inc.*		156		1,303
Xactly Corp.*		88		1,295
Xcerra Corp.*		205		1,242
Varonis Systems, Inc.*		41		1,234
Sapiens International Corporation N.V.		94		1,200
Cohu, Inc.		102		1,197
IXYS Corp.		98		1,181
Digi International, Inc.*		101		1,151
Computer Programs & Systems, Inc.		43		1,121
American Software, Inc. — Class A		100		1,110
MINDBODY, Inc. — Class A*		56		1,101
Silicon Graphics International Corp.*		141		1,086
Sigma Designs, Inc.*		139		1,083
Carbonite, Inc.*		69		1,060
Apigee Corp.*		60		1,044
Instructure, Inc.*		41		1,040
DSP Group, Inc.*		85		1,021
Eastman Kodak Co.*		67		1,005
Avid Technology, Inc.*		125		993
Model N, Inc.*		87		967
Jive Software, Inc.*		224		954
Mitek Systems, Inc.*		114		945
Immersion Corp.*		113		922
Ultra Clean Holdings, Inc.*		124		919
Glu Mobile, Inc.*		400		896
Tangoe, Inc.*		107		883
pdvWireless, Inc.*		38		870
Exa Corp.*		54		867
Everyday Health, Inc.*		110		846
QAD, Inc. — Class A		37		828
Datalink Corp.*		78		828
TubeMogul, Inc.*		85		796
USA Technologies, Inc.*		139		780
Radisys Corp.*		138		738
Amber Road, Inc.*		69		666
Agilysys, Inc.*		59		656
Castlight Health, Inc. — Class B*		156		649
ExOne Co.*		42		639
Rosetta Stone, Inc.*		75		636
Maxwell Technologies, Inc.*		122		630
Planet Payment, Inc.*		164		608
Park City Group, Inc.*		50		590
Appfolio, Inc. — Class A*		30		583
EMCORE Corp.		102		581
GigPeak, Inc.*		226		531
Guidance Software, Inc.*		88		524
Kopin Corp.*		239		521
MobileIron, Inc.*		180		495
Cogint, Inc.*		59		300
SecureWorks Corp. — Class A*		23		288
NCI, Inc. — Class A		23		266
Majesco*		23		117
Total Technology				754,603
Communications - 4.2%
GrubHub, Inc.*		314		13,498
ViaSat, Inc.*		172		12,839
Finisar Corp.*		417		12,426
Ciena Corp.*		533		11,618
InterDigital, Inc.		134		10,613
Zendesk, Inc.*		316		9,705
LogMeIn, Inc.		98		8,857
Media General, Inc.*		424		7,813
NETGEAR, Inc.*		126		7,622
Meredith Corp.		146		7,591
Sinclair Broadcast Group, Inc. — Class A		256		7,394
WebMD Health Corp. — Class A*		145		7,207
Gigamon, Inc.*		127		6,960
DigitalGlobe, Inc.*		245		6,738
Viavi Solutions, Inc.*		909		6,718
Plantronics, Inc.		129		6,703

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Nexstar Broadcasting Group, Inc. — Class A		116	$	6,694
Houghton Mifflin Harcourt Co.*		482		6,464
Shutterfly, Inc.*		135		6,027
Stamps.com, Inc.*		63		5,954
Cogent Communications Holdings, Inc.		161		5,926
Etsy, Inc.*		407		5,812
NIC, Inc.		246		5,781
Time, Inc.		399		5,778
New York Times Co. — Class A		483		5,772
Infoblox, Inc.*		218		5,749
comScore, Inc.*		186		5,703
NeuStar, Inc. — Class A*		211		5,610
Ubiquiti Networks, Inc.*		101		5,404
RingCentral, Inc. — Class A*		227		5,370
Gannett Company, Inc.		456		5,308
8x8, Inc.*		343		5,292
Liberty Media Corporation-Liberty Media — Class C*		179		5,037
Infinera Corp.*		547		4,939
Vonage Holdings Corp.*		743		4,911
Consolidated Communications Holdings, Inc.		193		4,872
Shenandoah Telecommunications Co.		179		4,871
Wayfair, Inc. — Class A*		122		4,803
Shutterstock, Inc.*		73		4,650
MSG Networks, Inc. — Class A*		231		4,299
Scholastic Corp.		105		4,133
AVG Technologies N.V.*		163		4,077
Windstream Holdings, Inc.		373		3,749
West Corp.		167		3,687
EW Scripps Co. — Class A*		231		3,673
ADTRAN, Inc.		190		3,637
Cincinnati Bell, Inc.*		817		3,333
Quotient Technology, Inc.*		249		3,314
Oclaro, Inc.*		383		3,275
Ixia*		250		3,125
World Wrestling Entertainment, Inc. — Class A		140		2,982
Box, Inc. — Class A*		189		2,979
Q2 Holdings, Inc.*		100		2,866
Web.com Group, Inc.*		165		2,850
Perficient, Inc.*		137		2,761
HealthStream, Inc.*		100		2,760
ATN International, Inc.		41		2,667
Iridium Communications, Inc.*		321		2,603
Gray Television, Inc.*		248		2,569
ORBCOMM, Inc.*		250		2,563
Liberty Media Corporation-Liberty Media — Class A*		89		2,550
EarthLink Holdings Corp.		408		2,530
Gogo, Inc.*		219		2,418
GTT Communications, Inc.*		102		2,400
ePlus, Inc.*		25		2,360
New Media Investment Group, Inc.		151		2,341
Chegg, Inc.*		313		2,219
MDC Partners, Inc. — Class A		199		2,133
Liberty Media Corporation-Liberty Braves — Class C*		122		2,120
ShoreTel, Inc.*		262		2,096
Acacia Communications, Inc.*		20		2,066
VASCO Data Security International, Inc.*		117		2,060
Inteliquent, Inc.		127		2,050
Endurance International Group Holdings, Inc.*		233		2,039
TrueCar, Inc.*		212		2,001
Loral Space & Communications, Inc.*		50		1,956
NeoPhotonics Corp.*		119		1,944
CalAmp Corp.*		139		1,939
Entravision Communications Corp. — Class A		253		1,930
XO Group, Inc.*		98		1,894
Bazaarvoice, Inc.*		318		1,879
A10 Networks, Inc.*		171		1,828
Extreme Networks, Inc.*		401		1,800
Harmonic, Inc.*		297		1,761
Globalstar, Inc.*		1,448		1,752
tronc, Inc.*		103		1,739
Blucora, Inc.*		152		1,702
Intralinks Holdings, Inc.*		160		1,610
Bankrate, Inc.*		184		1,560
General Communication, Inc. — Class A*		112		1,540
DHI Group, Inc.*		194		1,531
Angie’s List, Inc.*		154		1,526
Global Eagle Entertainment, Inc.*		182		1,512
Blue Nile, Inc.		43		1,480
RetailMeNot, Inc.*		149		1,474
Sonus Networks, Inc.*		185		1,439
Boingo Wireless, Inc.*		138		1,419
Spok Holdings, Inc.		79		1,408
FTD Companies, Inc.*		68		1,399
Rapid7, Inc.*		77		1,359
Entercom Communications Corp. — Class A		101		1,307
FairPoint Communications, Inc.*		82		1,232
Rubicon Project, Inc.*		144		1,192
ChannelAdvisor Corp.*		91		1,177
Calix, Inc.*		160		1,176
IDT Corp. — Class B		68		1,172
Lionbridge Technologies, Inc.*		222		1,110
Liquidity Services, Inc.*		97		1,090
Lumos Networks Corp.*		73		1,022
MeetMe, Inc.*		160		992
Comtech Telecommunications Corp.		76		974
Straight Path Communications, Inc. — Class B*		37		948
1-800-Flowers.com, Inc. — Class A*		101		926
Silicom Ltd.		22		911
Daily Journal Corp.*		4		876
Zix Corp.*		206		845
Lands’ End, Inc.*		58		841
Clearfield, Inc.*		44		827

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Black Box Corp.		58	$	806
Overstock.com, Inc.*		51		781
RigNet, Inc.*		49		741
Telenav, Inc.*		127		728
HC2 Holdings, Inc.*		129		703
Reis, Inc.		34		696
NII Holdings, Inc.*		207		689
Central European Media Enterprises Ltd. — Class A*		296		684
TechTarget, Inc.*		79		637
Saga Communications, Inc. — Class A		14		635
Liberty Media Corporation-Liberty Braves — Class A*		35		611
Autobytel, Inc.*		34		605
VirnetX Holding Corp.*		188		575
Aerohive Networks, Inc.*		94		572
KVH Industries, Inc.*		59		520
Hawaiian Telcom Holdco, Inc.*		23		515
Limelight Networks, Inc.*		275		514
QuinStreet, Inc.*		142		429
Preformed Line Products Co.		10		422
Numerex Corp. — Class A*		54		420
Rightside Group Ltd.*		45		410
RealNetworks, Inc.*		91		406
Marchex, Inc. — Class B*		129		357
Hemisphere Media Group, Inc.*		27		344
Intelsat S.A.*		122		331
Townsquare Media, Inc. — Class A*		33		308
Radio One, Inc. — Class D*		96		291
Global Sources Ltd.*		32		271
Salem Media Group, Inc. — Class A		43		253
Corindus Vascular Robotics, Inc.*		213		236
Value Line, Inc.		5		81
Total Communications				447,884
Basic Materials - 2.6%
Olin Corp.		644		13,215
Sensient Technologies Corp.		173		13,112
US Silica Holdings, Inc.		249		11,593
Chemours Co.		710		11,359
PolyOne Corp.		325		10,987
Minerals Technologies, Inc.		135		9,543
Balchem Corp.		122		9,459
HB Fuller Co.		195		9,062
Hecla Mining Co.		1,481		8,442
Worthington Industries, Inc.		175		8,405
Chemtura Corp.*		248		8,137
GCP Applied Technologies, Inc.*		275		7,788
Allegheny Technologies, Inc.		421		7,607
Ingevity Corp.*		165		7,607
Coeur Mining, Inc.*		628		7,429
Carpenter Technology Corp.		179		7,386
Commercial Metals Co.		447		7,237
Stillwater Mining Co.*		475		6,346
Kaiser Aluminum Corp.		69		5,968
Stepan Co.		77		5,595
Innospec, Inc.		92		5,595
Quaker Chemical Corp.		50		5,297
Neenah Paper, Inc.		64		5,057
Cliffs Natural Resources, Inc.*		855		5,002
Schweitzer-Mauduit International, Inc.		117		4,512
Ferro Corp.*		324		4,474
AK Steel Holding Corp.*		921		4,448
Clearwater Paper Corp.*		66		4,268
Kraton Corp.*		115		4,030
Univar, Inc.*		167		3,649
PH Glatfelter Co.		168		3,642
A. Schulman, Inc.		112		3,261
Innophos Holdings, Inc.		76		2,966
Calgon Carbon Corp.		195		2,958
Deltic Timber Corp.		41		2,777
Fairmount Santrol Holdings, Inc.*		302		2,561
Koppers Holdings, Inc.*		79		2,542
Materion Corp.		77		2,365
Tronox Ltd. — Class A		250		2,343
Ferroglobe plc		254		2,294
Rayonier Advanced Materials, Inc.		167		2,233
Aceto Corp.		113		2,146
Schnitzer Steel Industries, Inc. — Class A		101		2,111
CSW Industrials, Inc.*		56		1,814
American Vanguard Corp.		109		1,751
Hawkins, Inc.		37		1,603
Gold Resource Corp.		194		1,439
Landec Corp.*		104		1,395
OMNOVA Solutions, Inc.*		165		1,393
Century Aluminum Co.*		193		1,341
KMG Chemicals, Inc.		35		992
Orchids Paper Products Co.		35		953
Oil-Dri Corporation of America		19		715
Kronos Worldwide, Inc.		85		705
Codexis, Inc.*		130		577
Ryerson Holding Corp.*		49		553
United States Lime & Minerals, Inc.		8		528
AgroFresh Solutions, Inc.*		85		450
ALJ Regional Holdings, Inc.*		72		338
Valhi, Inc.		97		223
Total Basic Materials				273,578
Utilities - 2.3%
IDACORP, Inc.		196		15,343
Portland General Electric Co.		347		14,779
Southwest Gas Corp.		184		12,854
ONE Gas, Inc.		203		12,554
WGL Holdings, Inc.		196		12,289
Black Hills Corp.		200		12,244
ALLETE, Inc.		192		11,447
Spire, Inc.		174		11,091
New Jersey Resources Corp.		334		10,975
NorthWestern Corp.		189		10,873
Avista Corp.		245		10,239
PNM Resources, Inc.		310		10,143
South Jersey Industries, Inc.		310		9,161
MGE Energy, Inc.		136		7,685

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
El Paso Electric Co.		157	$	7,343
Ormat Technologies, Inc.		151		7,310
Northwest Natural Gas Co.		105		6,312
California Water Service Group		186		5,968
Empire District Electric Co.		171		5,838
American States Water Co.		142		5,686
Dynegy, Inc.*		454		5,625
Otter Tail Corp.		147		5,085
Talen Energy Corp.*		327		4,529
Atlantica Yield plc		228		4,334
NRG Yield, Inc. — Class C		246		4,172
Chesapeake Utilities Corp.		57		3,480
SJW Corp.		63		2,752
NRG Yield, Inc. — Class A		136		2,220
Middlesex Water Co.		61		2,150
Unitil Corp.		54		2,109
Connecticut Water Service, Inc.		42		2,089
York Water Co.		51		1,513
Atlantic Power Corp.		474		1,171
Artesian Resources Corp. — Class A		31		885
Consolidated Water Company Ltd.		56		651
Delta Natural Gas Company, Inc.		26		620
EnerNOC, Inc.*		104		563
Spark Energy, Inc. — Class A		19		553
Ameresco, Inc. — Class A*		82		431
Genie Energy Ltd. — Class B*		50		295
Global Water Resources, Inc.		32		256
Total Utilities				245,617
Energy - 2.0%
PDC Energy, Inc.*		179		12,005
RSP Permian, Inc.*		305		11,828
NOW, Inc.*		415		8,893
Carrizo Oil & Gas, Inc.*		216		8,774
Western Refining, Inc.		313		8,281
Oasis Petroleum, Inc.*		692		7,937
Matador Resources Co.*		322		7,837
Callon Petroleum Co.*		471		7,395
SemGroup Corp. — Class A		205		7,249
Oil States International, Inc.*		199		6,281
MRC Global, Inc.*		363		5,964
Pattern Energy Group, Inc.		257		5,780
Synergy Resources Corp.*		722		5,003
TerraForm Power, Inc. — Class A*		339		4,715
McDermott International, Inc.*		939		4,704
Forum Energy Technologies, Inc.*		233		4,627
Denbury Resources, Inc.*		1,363		4,402
Delek US Holdings, Inc.		239		4,132
Green Plains, Inc.		142		3,720
SEACOR Holdings, Inc.*		62		3,688
Unit Corp.*		196		3,645
Archrock, Inc.		270		3,532
Seadrill Ltd.*		1,465		3,472
Helix Energy Solutions Group, Inc.*		390		3,171
Flotek Industries, Inc.*		212		3,083
Thermon Group Holdings, Inc.*		124		2,449
Newpark Resources, Inc.*		322		2,370
TETRA Technologies, Inc.*		350		2,139
Atwood Oceanics, Inc.		236		2,051
SunCoke Energy, Inc.*		250		2,005
Clayton Williams Energy, Inc.*		23		1,965
Cobalt International Energy, Inc.*		1,581		1,960
Matrix Service Co.*		103		1,932
Exterran Corp.*		123		1,929
Sanchez Energy Corp.*		217		1,918
REX American Resources Corp.*		22		1,865
Bristow Group, Inc.		131		1,837
Par Pacific Holdings, Inc.*		119		1,557
Sunrun, Inc.*		245		1,544
California Resources Corp.*		123		1,538
Renewable Energy Group, Inc.*		180		1,525
Ring Energy, Inc.*		139		1,522
Clean Energy Fuels Corp.*		340		1,520
Tesco Corp.		179		1,461
TerraForm Global, Inc. — Class A		354		1,455
Plug Power, Inc.*		702		1,200
Natural Gas Services Group, Inc.*		48		1,180
FutureFuel Corp.		97		1,094
Bill Barrett Corp.*		190		1,056
Panhandle Oil and Gas, Inc. — Class A		59		1,034
Parker Drilling Co.*		469		1,018
Pioneer Energy Services Corp.*		247		998
Geospace Technologies Corp.*		51		993
Alon USA Energy, Inc.		122		983
Contango Oil & Gas Co.*		87		889
Trecora Resources*		77		879
CVR Energy, Inc.		61		840
PHI, Inc.*		46		836
CARBO Ceramics, Inc.		75		821
Abraxas Petroleum Corp.*		481		813
Pacific Ethanol, Inc.*		111		767
Eclipse Resources Corp.*		221		727
EP Energy Corp. — Class A*		150		657
Westmoreland Coal Co.*		71		629
Era Group, Inc.*		76		612
Independence Contract Drilling, Inc.*		116		609
FuelCell Energy, Inc.*		111		602
Evolution Petroleum Corp.		95		597
Dawson Geophysical Co.*		78		595
EXCO Resources, Inc.*		543		581
Northern Oil and Gas, Inc.*		181		485
Jones Energy, Inc. — Class A*		119		424
Isramco, Inc.*		4		334
Willbros Group, Inc.*		168		316
Adams Resources & Energy, Inc.		8		315
Vivint Solar, Inc.*		88		278
W&T Offshore, Inc.*		138		243
Erin Energy Corp.*		56		132
Earthstone Energy, Inc.*		8		69
Total Energy				210,266

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Diversified - 0.1%
HRG Group, Inc.*		461	$	7,238
Wins Finance Holdings, Inc.*		5		148
Total Diversified				7,386
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		117		3,297
Health Care - 0.0%
Integer Holdings Corp.*		118		2,559
Aptevo Therapeutics, Inc.*		69		177
Total Health Care				2,736
Total Common Stocks
(Cost $5,995,433)				6,762,448
WARRANTS†† - 0.0%
Imperial Holdings, Inc.
$10.75, 10/06/19		4		—
Total Warrants
(Cost $—)				—
RIGHTS††† - 0.0%
Omthera Pharmaceuticals, Inc.
Expires 12/31/20		57		—
Leap Wireless International, Inc.
Expires 03/06/17		513		—
Dyax Corp.
Expires 01/25/17		714		—
Total Rights
(Cost $398)				—
MUTUAL FUNDS† - 9.6%
Guggenheim Strategy Fund II1		20,369		507,996
Guggenheim Strategy Fund I1		20,322		507,856
Total Mutual Funds
(Cost $1,011,246)				1,015,852
	Face Amount
FEDERAL AGENCY NOTES†† - 9.5%
Federal Farm Credit Bank2
0.67% due 09/12/183	$	1,000,000		999,224
Total Federal Agency Notes
(Cost $999,804)				999,224

REPURCHASE AGREEMENTS††,4 - 12.1%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/165		679,631		679,631
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		594,537		594,537
Total Repurchase Agreements
(Cost $1,274,168)				1,274,168
Total Investments - 95.1%
(Cost $9,281,049)			$	10,051,692
Other Assets & Liabilities, net - 4.9%				516,786
Total Net Assets - 100.0%			$	10,568,478
	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $374,100)		3	$	11,035
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 Russell 2000 Index Swap 0.13%6, Terminating 11/01/16 (Notional Value $2,808,699)		2,244	$	31,205
Goldman Sachs International October 2016 Russell 2000 Index Swap 0.30%6, Terminating 10/26/16 (Notional Value $360,925)		288		3,315
Barclays Bank plc October 2016 Russell 2000 Index Swap 0.30%6, Terminating 10/31/16 (Notional Value $5,558,221)		4,441		(16,884	)
(Total Notional Value $8,727,845)			$	17,636

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
RUSSELL 2000® 1.5x STRATEGY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
6	Total Return based on Russell 2000 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	6,762,448	$	—	$	—	$	—	$	—	$	6,762,448
Equity Futures Contracts		—		11,035		—		—		—		11,035
Equity Index Swap Agreements		—		—		—		34,520		—		34,520
Federal Agency Notes		—		—		999,224		—		—		999,224
Mutual Funds		1,015,852		—		—		—		—		1,015,852
Repurchase Agreements		—		—		1,274,168		—		—		1,274,168
Rights		—		—		—		—		—		—
Warrants		—		—		—		—		—		—
Total	$	7,778,300	$	11,035	$	2,273,392	$	34,520	$	—	$	10,097,247
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	16,884	$	—	$	16,884

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $6,995,635)	$	7,761,672
Investments in affiliated issuers, at value (cost $1,011,246)		1,015,852
Repurchase agreements, at value (cost $1,274,168)		1,274,168
Total investments (cost $9,281,049)		10,051,692
Segregated cash with broker		517,700
Unrealized appreciation on swap agreements		34,520
Cash		127
Receivables:
Variation margin		3,240
Fund shares sold		6,697
Dividends		9,902
Interest		367
Total assets		10,624,245
Liabilities:
Unrealized depreciation on swap agreements		16,884
Payable for:
Fund shares redeemed		14,184
Management fees		8,399
Swap settlement		5,791
Distribution and service fees		3,221
Transfer agent and administrative fees		2,333
Portfolio accounting fees		933
Miscellaneous		4,022
Total liabilities		55,767
Commitments and contingent liabilities (Note 13)		—
Net assets	$	10,568,478
Net assets consist of:
Paid in capital	$	7,892,521
Accumulated net investment loss		(83,980	)
Accumulated net realized gain on investments		1,960,623
Net unrealized appreciation on investments		799,314
Net assets	$	10,568,478
A-Class:
Net assets	$	887,890
Capital shares outstanding		16,684
Net asset value per share	$	53.22
Maximum offering price per share (Net asset value divided by 95.25%)	$	55.87
C-Class:
Net assets	$	1,449,482
Capital shares outstanding		31,042
Net asset value per share	$	46.69
H-Class:
Net assets	$	8,231,106
Capital shares outstanding		154,853
Net asset value per share	$	53.15

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $27)	$	37,040
Dividends from securities of affiliated issuers		10,397
Interest		4,784
Total investment income		52,221
Expenses:
Management fees		49,825
Transfer agent and administrative fees		13,840
Distribution and service fees:
A-Class		940
C-Class		7,005
H-Class		11,149
Portfolio accounting fees		5,536
Custodian fees		653
Trustees’ fees*		387
Line of credit fees		53
Miscellaneous		10,930
Total expenses		100,318
Net investment loss		(48,097	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		929,532
Investments in affiliated issuers		4,936
Swap agreements		1,084,879
Futures contracts		140,681
Net realized gain		2,160,028
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		92,321
Investments in affiliated issuers		4,675
Swap agreements		(74,707	)
Futures contracts		733
Net change in unrealized appreciation (depreciation)		23,022
Net realized and unrealized gain		2,183,050
Net increase in net assets resulting from operations	$	2,134,953

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

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(48,097	)	$	(232,821	)
Net realized gain on investments		2,160,028			2,034,802
Net change in unrealized appreciation (depreciation) on investments		23,022			(2,714,053	)
Net increase (decrease) in net assets resulting from operations		2,134,953			(912,072	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(37,011	)
C-Class		—			(125,275	)
H-Class		—			(816,653	)
Total distributions to shareholders		—			(978,939	)
Capital share transactions:
Proceeds from sale of shares
A-Class		935,104			4,129,543
C-Class		77,840			123,456
H-Class		78,087,222			340,767,371
Distributions reinvested
A-Class		—			34,810
C-Class		—			123,960
H-Class		—			813,382
Cost of shares redeemed
A-Class		(675,656	)		(4,165,989	)
C-Class		(188,376	)		(293,524	)
H-Class		(79,671,371	)		(350,796,800	)
Net decrease from capital share transactions		(1,435,237	)		(9,263,791	)
Net increase (decrease) in net assets		699,716			(11,154,802	)
Net assets:
Beginning of period		9,868,762			21,023,564
End of period	$	10,568,478		$	9,868,762
Accumulated net investment loss at end of period	$	(83,980	)	$	(35,883	)
Capital share activity:
Shares sold
A-Class		19,464			74,547
C-Class		1,915			2,397
H-Class		1,707,803			6,930,733
Shares issued from reinvestment of distributions
A-Class		—			723
C-Class		—			2,917
H-Class		—			16,938
Shares redeemed
A-Class		(13,878	)		(74,982	)
C-Class		(4,400	)		(6,389	)
H-Class		(1,732,839	)		(7,088,735	)
Net decrease in shares		(21,935	)		(141,851	)

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	44.78		$	58.05		$	53.23		$	39.32		$	32.20		$	34.37
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.43	)		(.39	)		(.37	)		(.16	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		8.62			(9.03	)		5.41			14.28			7.28			(1.78	)
Total from investment operations		8.44			(9.46	)		5.02			13.91			7.12			(2.17	)
Less distributions from:
Net realized gains		—			(3.81	)		(.20	)		—			—			—
Total distributions		—			(3.81	)		(.20	)		—			—			—
Net asset value, end of period	$	53.22		$	44.78		$	58.05		$	53.23		$	39.32		$	32.20
Total Returnc		18.83	%		(16.75	%)		9.48	%		35.38	%		22.11	%		(6.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	888		$	497		$	627		$	614		$	392		$	1,355
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(0.85	%)		(0.74	%)		(0.78	%)		(0.51	%)		(1.24	%)
Total expensesd		1.71	%		1.70	%		1.70	%		1.72	%		1.71	%		1.73	%
Portfolio turnover rate		353	%		971	%		830	%		472	%		527	%		177	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	39.44		$	52.01		$	48.08		$	35.78		$	29.52		$	31.75
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.73	)		(.70	)		(.65	)		(.34	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		7.57			(8.03	)		4.83			12.95			6.60			(1.69	)
Total from investment operations		7.25			(8.76	)		4.13			12.30			6.26			(2.23	)
Less distributions from:
Net realized gains		—			(3.81	)		(.20	)		—			—			—
Total distributions		—			(3.81	)		(.20	)		—			—			—
Net asset value, end of period	$	46.69		$	39.44		$	52.01		$	48.08		$	35.78		$	29.52
Total Returnc		18.38	%		(17.36	%)		8.64	%		34.38	%		21.21	%		(7.02	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,449		$	1,322		$	1,800		$	1,864		$	1,685		$	1,839
Ratios to average net assets:
Net investment income (loss)		(1.51	%)		(1.62	%)		(1.49	%)		(1.55	%)		(1.15	%)		(1.99	%)
Total expensesd		2.46	%		2.45	%		2.45	%		2.47	%		2.46	%		2.49	%
Portfolio turnover rate		353	%		971	%		830	%		472	%		527	%		177	%

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	44.75		$	57.94		$	53.13		$	39.24		$	32.13		$	34.29
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.51	)		(.40	)		(.37	)		(.08	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		8.59			(8.87	)		5.41			14.26			7.19			(1.79	)
Total from investment operations		8.40			(9.38	)		5.01			13.89			7.11			(2.16	)
Less distributions from:
Net realized gains		—			(3.81	)		(.20	)		—			—			—
Total distributions		—			(3.81	)		(.20	)		—			—			—
Net asset value, end of period	$	53.15		$	44.75		$	57.94		$	53.13		$	39.24		$	32.13
Total Returnc		18.77	%		(16.63	%)		9.48	%		35.40	%		22.13	%		(6.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,231		$	8,049		$	18,596		$	19,056		$	44,955		$	14,902
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(1.01	%)		(0.76	%)		(0.81	%)		(0.25	%)		(1.24	%)
Total expensesd		1.71	%		1.70	%		1.70	%		1.72	%		1.71	%		1.73	%
Portfolio turnover rate		353	%		971	%		830	%		472	%		527	%		177	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2016

RUSSELL 2000^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Russell 2000^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Microsemi Corp.	0.2%
Advanced Micro Devices, Inc.	0.2%
Gramercy Property Trust	0.2%
Curtiss-Wright Corp.	0.2%
IDACORP, Inc.	0.2%
Healthcare Realty Trust, Inc.	0.2%
Aspen Technology, Inc.	0.2%
Fair Isaac Corp.	0.2%
Cepheid	0.2%
Portland General Electric Co.	0.2%
Top Ten Total	2.0%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 103

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 75.8%
Financial - 19.6%
Gramercy Property Trust		6,387	$	61,571
Healthcare Realty Trust, Inc.		1,726		58,788
Prosperity Bancshares, Inc.		1,012		55,549
PrivateBancorp, Inc. — Class A		1,187		54,507
Investors Bancorp, Inc.		4,498		54,021
Medical Properties Trust, Inc.		3,585		52,950
Webster Financial Corp.		1,387		52,720
Ellie Mae, Inc.*		496		52,229
Bank of the Ozarks, Inc.		1,341		51,494
New Residential Investment Corp.		3,674		50,738
Umpqua Holdings Corp.		3,341		50,282
First Industrial Realty Trust, Inc.		1,756		49,554
Education Realty Trust, Inc.		1,111		47,929
DuPont Fabros Technology, Inc.		1,128		46,530
Hudson Pacific Properties, Inc.		1,414		46,478
National Health Investors, Inc.		564		44,263
Radian Group, Inc.		3,255		44,106
Physicians Realty Trust		2,043		44,006
Chemical Financial Corp.		996		43,953
Acadia Realty Trust		1,208		43,778
Wintrust Financial Corp.		778		43,233
Sunstone Hotel Investors, Inc.		3,286		42,028
IBERIABANK Corp.		620		41,614
CNO Financial Group, Inc.		2,709		41,366
MGIC Investment Corp.*		5,159		41,273
UMB Financial Corp.		679		40,367
MB Financial, Inc.		1,058		40,246
RLI Corp.		575		39,306
FNB Corp.		3,177		39,077
RLJ Lodging Trust		1,844		38,779
LaSalle Hotel Properties		1,613		38,502
Texas Capital Bancshares, Inc.*		699		38,389
Urban Edge Properties		1,357		38,186
Home BancShares, Inc.		1,830		38,082
Hancock Holding Co.		1,170		37,943
Fulton Financial Corp.		2,600		37,752
Genworth Financial, Inc. — Class A*		7,608		37,737
Primerica, Inc.		711		37,704
CoreSite Realty Corp.		507		37,538
QTS Realty Trust, Inc. — Class A		708		37,418
United Bankshares, Inc.		993		37,406
Stifel Financial Corp.*		969		37,257
Mack-Cali Realty Corp.		1,349		36,720
Washington Federal, Inc.		1,374		36,658
Valley National Bancorp		3,744		36,429
Lexington Realty Trust		3,476		35,803
Retail Opportunity Investments Corp.		1,626		35,707
Pinnacle Financial Partners, Inc.		652		35,260
EastGroup Properties, Inc.		478		35,162
First Financial Bankshares, Inc.		964		35,128
Washington Prime Group, Inc.		2,809		34,775
Kite Realty Group Trust		1,250		34,650
Washington Real Estate Investment Trust		1,110		34,543
Cathay General Bancorp		1,122		34,535
Selective Insurance Group, Inc.		859		34,239
FirstCash, Inc.		719		33,850
PS Business Parks, Inc.		298		33,844
Hope Bancorp, Inc.		1,940		33,698
WageWorks, Inc.*		552		33,622
Sterling Bancorp		1,916		33,530
First Citizens BancShares, Inc. — Class A		114		33,503
Glacier Bancorp, Inc.		1,152		32,855
Cousins Properties, Inc.		3,141		32,792
Ryman Hospitality Properties, Inc.		657		31,641
Community Bank System, Inc.		651		31,320
Colony Capital, Inc. — Class A		1,701		31,010
CBL & Associates Properties, Inc.		2,551		30,969
LendingClub Corp.*		4,972		30,727
Janus Capital Group, Inc.		2,183		30,585
Evercore Partners, Inc. — Class A		591		30,442
BancorpSouth, Inc.		1,309		30,369
EverBank Financial Corp.		1,557		30,144
Essent Group Ltd.*		1,129		30,043
Great Western Bancorp, Inc.		892		29,721
LTC Properties, Inc.		570		29,634
BGC Partners, Inc. — Class A		3,291		28,796
Pebblebrook Hotel Trust		1,081		28,755
Columbia Banking System, Inc.		877		28,695
Enstar Group Ltd.*		172		28,290
Old National Bancorp		2,009		28,247
Colony Starwood Homes		982		28,183
Kennedy-Wilson Holdings, Inc.		1,247		28,120
Trustmark Corp.		1,019		28,084
DiamondRock Hospitality Co.		3,035		27,619
Capitol Federal Financial, Inc.		1,928		27,127
Monogram Residential Trust, Inc.		2,546		27,089
Alexander & Baldwin, Inc.		705		27,086
CVB Financial Corp.		1,529		26,926
South State Corp.		358		26,864
GEO Group, Inc.		1,122		26,681
Invesco Mortgage Capital, Inc.		1,702		25,921
Select Income REIT		958		25,770
American Assets Trust, Inc.		592		25,681
Hilltop Holdings, Inc.*		1,134		25,469
STAG Industrial, Inc.		1,039		25,466
Blackhawk Network Holdings, Inc.*		830		25,041
International Bancshares Corp.		827		24,628
Argo Group International Holdings Ltd.		436		24,599
Sabra Health Care REIT, Inc.		976		24,576
PRA Group, Inc.*		697		24,073
Financial Engines, Inc.		808		24,006
Government Properties Income Trust		1,060		23,977
Potlatch Corp.		615		23,917
Pennsylvania Real Estate Investment Trust		1,032		23,767
Xenia Hotels & Resorts, Inc.		1,564		23,742
Kemper Corp.		600		23,592
First Midwest Bancorp, Inc.		1,216		23,542
American Equity Investment Life Holding Co.		1,295		22,960
New York REIT, Inc.		2,498		22,857

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Northwest Bancshares, Inc.		1,452	$	22,811
Eagle Bancorp, Inc.*		462		22,790
Rexford Industrial Realty, Inc.		991		22,684
Horace Mann Educators Corp.		613		22,466
Ramco-Gershenson Properties Trust		1,191		22,319
United Community Banks, Inc.		1,060		22,281
Simmons First National Corp. — Class A		443		22,106
Waddell & Reed Financial, Inc. — Class A		1,200		21,792
LegacyTexas Financial Group, Inc.		671		21,224
Independent Bank Corp.		391		21,149
NBT Bancorp, Inc.		641		21,070
Global Net Lease, Inc.		2,578		21,037
Renasant Corp.		618		20,783
Parkway Properties, Inc.		1,212		20,616
Chesapeake Lodging Trust		898		20,564
Astoria Financial Corp.		1,392		20,323
BofI Holding, Inc.*		906		20,294
TowneBank		844		20,281
First Financial Bancorp		926		20,224
WesBanco, Inc.		608		19,982
CYS Investments, Inc.		2,290		19,969
Franklin Street Properties Corp.		1,579		19,895
Banner Corp.		454		19,858
Yadkin Financial Corp.		754		19,823
Provident Financial Services, Inc.		923		19,595
Four Corners Property Trust, Inc.		913		19,474
Park National Corp.		201		19,296
Seritage Growth Properties		378		19,157
Westamerica Bancorporation		373		18,978
Kearny Financial Corp.		1,394		18,972
Terreno Realty Corp.		683		18,790
ServisFirst Bancshares, Inc.		348		18,065
Ameris Bancorp		515		17,999
WisdomTree Investments, Inc.		1,738		17,884
Apollo Commercial Real Estate Finance, Inc.		1,091		17,852
Union Bankshares Corp.		656		17,561
FCB Financial Holdings, Inc. — Class A*		453		17,409
Summit Hotel Properties, Inc.		1,308		17,213
Agree Realty Corp.		344		17,008
AMERISAFE, Inc.		287		16,870
Tompkins Financial Corp.		219		16,734
First Merchants Corp.		616		16,478
Navigators Group, Inc.		170		16,476
Redwood Trust, Inc.		1,153		16,326
National General Holdings Corp.		731		16,257
PennyMac Mortgage Investment Trust		1,030		16,047
Boston Private Financial Holdings, Inc.		1,237		15,871
WSFS Financial Corp.		433		15,800
Beneficial Bancorp, Inc.		1,061		15,607
MBIA, Inc.*		1,989		15,494
Stewart Information Services Corp.		346		15,380
HFF, Inc. — Class A		543		15,036
S&T Bancorp, Inc.		516		14,959
BNC Bancorp		614		14,932
Safety Insurance Group, Inc.		218		14,654
Employers Holdings, Inc.		485		14,468
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		615		14,373
Aircastle Ltd.		721		14,319
St. Joe Co.*		763		14,024
United Fire Group, Inc.		327		13,839
Capstead Mortgage Corp.		1,444		13,617
Monmouth Real Estate Investment Corp.		953		13,599
First Commonwealth Financial Corp.		1,339		13,511
Cohen & Steers, Inc.		316		13,509
Infinity Property & Casualty Corp.		163		13,469
Alexander’s, Inc.		32		13,428
New Senior Investment Group, Inc.		1,154		13,317
FelCor Lodging Trust, Inc.		2,061		13,252
Lakeland Financial Corp.		365		12,928
Berkshire Hills Bancorp, Inc.		465		12,885
Banc of California, Inc.		737		12,868
CareTrust REIT, Inc.		870		12,859
Brookline Bancorp, Inc.		1,046		12,751
ARMOUR Residential REIT, Inc.		556		12,532
Ambac Financial Group, Inc.*		681		12,524
Hanmi Financial Corp.		474		12,485
Universal Insurance Holdings, Inc.		495		12,474
CenterState Banks, Inc.		701		12,429
FNFV Group*		994		12,405
Cardinal Financial Corp.		475		12,393
Nelnet, Inc. — Class A		306		12,353
KCG Holdings, Inc. — Class A*		792		12,300
State Bank Financial Corp.		529		12,072
Third Point Reinsurance Ltd.*		998		11,976
Heartland Financial USA, Inc.		332		11,975
MTGE Investment Corp.		696		11,964
Southside Bancshares, Inc.		371		11,939
Universal Health Realty Income Trust		188		11,848
RE/MAX Holdings, Inc. — Class A		268		11,733
PHH Corp.*		800		11,560
Central Pacific Financial Corp.		458		11,537
Meridian Bancorp, Inc.		729		11,351
Maiden Holdings Ltd.		893		11,332
Hersha Hospitality Trust		626		11,281
Tier REIT, Inc.		721		11,132
National Storage Affiliates Trust		531		11,119
iStar, Inc.*		1,036		11,116
City Holding Co.		221		11,114
InfraREIT, Inc.		603		10,938
Chatham Lodging Trust		568		10,934
Investors Real Estate Trust		1,831		10,895
Sandy Spring Bancorp, Inc.		356		10,886
Pacific Premier Bancorp, Inc.*		411		10,875
Stock Yards Bancorp, Inc.		321		10,580
Piper Jaffray Cos.*		219		10,578
First Busey Corp.		468		10,577
Walker & Dunlop, Inc.*		416		10,508
United Financial Bancorp, Inc.		757		10,477
Northfield Bancorp, Inc.		637		10,256
New York Mortgage Trust, Inc. REIT		1,663		10,011

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Flushing Financial Corp.		420	$	9,962
Greenhill & Company, Inc.		420		9,899
NorthStar Realty Europe Corp.		901		9,866
Urstadt Biddle Properties, Inc. — Class A		443		9,843
TrustCo Bank Corp. NY		1,380		9,784
Saul Centers, Inc.		145		9,657
Capital Bank Financial Corp. — Class A		300		9,633
FBL Financial Group, Inc. — Class A		149		9,532
Getty Realty Corp.		396		9,476
Cass Information Systems, Inc.		166		9,404
First Interstate BancSystem, Inc. — Class A		298		9,390
First BanCorp*		1,798		9,350
Customers Bancorp, Inc.*		368		9,259
Oritani Financial Corp.		584		9,180
Opus Bank		259		9,161
Greenlight Capital Re Ltd. — Class A*		444		9,075
Enterprise Financial Services Corp.		290		9,063
Washington Trust Bancorp, Inc.		225		9,050
Cedar Realty Trust, Inc.		1,247		8,978
HomeStreet, Inc.*		357		8,946
International. FCStone, Inc.*		228		8,858
Silver Bay Realty Trust Corp.		503		8,818
Flagstar Bancorp, Inc.*		316		8,769
Univest Corporation of Pennsylvania		375		8,760
MainSource Financial Group, Inc.		349		8,708
Virtus Investment Partners, Inc.		88		8,612
Altisource Residential Corp.		790		8,611
Easterly Government Properties, Inc.		451		8,605
BancFirst Corp.		118		8,556
Investment Technology Group, Inc.		498		8,536
Community Trust Bancorp, Inc.		230		8,535
Diamond Hill Investment Group, Inc.		46		8,500
National Bank Holdings Corp. — Class A		363		8,483
1st Source Corp.		237		8,460
OM Asset Management plc		607		8,443
German American Bancorp, Inc.		215		8,370
Lakeland Bancorp, Inc.		587		8,241
TriCo Bancshares		306		8,192
Encore Capital Group, Inc.*		360		8,093
Bryn Mawr Bank Corp.		252		8,061
First Potomac Realty Trust		876		8,015
Heritage Financial Corp.		446		8,006
Dime Community Bancshares, Inc.		473		7,927
James River Group Holdings Ltd.		216		7,819
ConnectOne Bancorp, Inc.		430		7,766
Ladder Capital Corp. — Class A		579		7,666
Moelis & Co. — Class A		281		7,556
Meta Financial Group, Inc.		124		7,516
CoBiz Financial, Inc.		562		7,480
Independent Bank Group, Inc.		168		7,421
Camden National Corp.		154		7,352
PJT Partners, Inc. — Class A		268		7,308
Nationstar Mortgage Holdings, Inc.*		489		7,242
Bridge Bancorp, Inc.		253		7,233
Seacoast Banking Corporation of Florida*		448		7,208
WMIH Corp.*		3,069		7,181
First of Long Island Corp.		215		7,127
Anworth Mortgage Asset Corp.		1,447		7,119
National Western Life Group, Inc. — Class A		34		6,983
Ashford Hospitality Trust, Inc.		1,181		6,956
CatchMark Timber Trust, Inc. — Class A		587		6,862
Armada Hoffler Properties, Inc.		503		6,740
AG Mortgage Investment Trust, Inc.		425		6,694
OFG Bancorp		654		6,612
Great Southern Bancorp, Inc.		162		6,593
Preferred Bank/Los Angeles CA		184		6,578
Citizens, Inc.*		702		6,571
Waterstone Financial, Inc.		385		6,541
Western Asset Mortgage Capital Corp. REIT		619		6,450
Mercantile Bank Corp.		240		6,444
Westwood Holdings Group, Inc.		121		6,426
Park Sterling Corp.		779		6,325
Gladstone Commercial Corp.		338		6,297
First Financial Corp.		151		6,143
Forestar Group, Inc.*		517		6,054
Suffolk Bancorp		173		6,015
Peoples Bancorp, Inc.		243		5,975
OceanFirst Financial Corp.		310		5,971
First Defiance Financial Corp.		133		5,937
First Bancorp		298		5,897
Resource Capital Corp.		458		5,867
First Community Bancshares, Inc.		236		5,853
Stonegate Bank		173		5,839
Horizon Bancorp		198		5,817
Heritage Insurance Holdings, Inc.		402		5,793
Fidelity Southern Corp.		314		5,774
Marcus & Millichap, Inc.*		220		5,753
QCR Holdings, Inc.		180		5,713
Virtu Financial, Inc. — Class A		381		5,704
Financial Institutions, Inc.		210		5,693
NMI Holdings, Inc. — Class A*		746		5,685
Altisource Portfolio Solutions S.A.*		175		5,670
Arrow Financial Corp.		171		5,628
CU Bancorp*		246		5,611
Cowen Group, Inc. — Class A*		1,544		5,605
Blue Hills Bancorp, Inc.		373		5,602
Ocwen Financial Corp.*		1,521		5,582
State Auto Financial Corp.		234		5,572
Whitestone REIT — Class B		396		5,496
Independence Realty Trust, Inc.		610		5,490
TriState Capital Holdings, Inc.*		332		5,362
NexPoint Residential Trust, Inc.		272		5,348
Peapack Gladstone Financial Corp.		238		5,334
Franklin Financial Network, Inc.*		142		5,311
CorEnergy Infrastructure Trust, Inc.		181		5,309
Southwest Bancorp, Inc.		273		5,184
Independent Bank Corp.		308		5,184
Farmer Mac — Class C		130		5,135
State National Companies, Inc.		461		5,126
Ares Commercial Real Estate Corp.		406		5,116
Clifton Bancorp, Inc.		331		5,061

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Arlington Asset Investment Corp. — Class A		341	$	5,043
Dynex Capital, Inc.		679		5,038
United Community Financial Corp.		703		4,998
Ashford Hospitality Prime, Inc.		350		4,935
First Foundation, Inc.*		200		4,934
Acacia Research Corp.		754		4,916
Pacific Continental Corp.		289		4,861
One Liberty Properties, Inc.		200		4,832
Bank Mutual Corp.		617		4,739
West Bancorporation, Inc.		240		4,704
RAIT Financial Trust		1,387		4,688
Triumph Bancorp, Inc.*		234		4,643
Preferred Apartment Communities, Inc. — Class A		343		4,634
HomeTrust Bancshares, Inc.*		250		4,625
Houlihan Lokey, Inc.		184		4,609
Republic Bancorp, Inc. — Class A		146		4,538
Allegiance Bancshares, Inc.*		166		4,482
Bank of Marin Bancorp		90		4,476
World Acceptance Corp.*		91		4,463
CNB Financial Corp.		209		4,422
United Insurance Holdings Corp.		260		4,415
UMH Properties, Inc.		369		4,398
Nicolet Bankshares, Inc.*		114		4,372
OneBeacon Insurance Group Ltd. — Class A		302		4,313
Heritage Commerce Corp.		394		4,310
Live Oak Bancshares, Inc.		296		4,268
Peoples Financial Services Corp.		104		4,239
Community Healthcare Trust, Inc.		191		4,187
Fidelity & Guaranty Life		180		4,174
City Office REIT, Inc.		326		4,150
On Deck Capital, Inc.*		725		4,133
Farmers National Banc Corp.		376		4,053
Guaranty Bancorp		227		4,052
People’s Utah Bancorp		196		3,989
RMR Group, Inc. — Class A		105		3,984
HCI Group, Inc.		131		3,977
Safeguard Scientifics, Inc.*		304		3,940
Atlantic Capital Bancshares, Inc.*		262		3,925
Citizens & Northern Corp.		177		3,889
Enova International, Inc.*		401		3,882
Enterprise Bancorp, Inc.		138		3,864
MidWestOne Financial Group, Inc.		125		3,796
National Bankshares, Inc.		103		3,788
Global Indemnity plc — Class A*		127		3,772
First Connecticut Bancorp, Inc.		211		3,754
Sun Bancorp, Inc.		162		3,736
Bluerock Residential Growth REIT, Inc.		284		3,692
First Bancorp, Inc.		154		3,691
Trupanion, Inc.*		218		3,684
National Interstate Corp.		113		3,676
Old Second Bancorp, Inc.		435		3,615
NewStar Financial, Inc.*		371		3,602
Ames National Corp.		130		3,596
Federated National Holding Co.		190		3,551
Ladenburg Thalmann Financial Services, Inc.*		1,528		3,530
PennyMac Financial Services, Inc. — Class A*		206		3,504
Baldwin & Lyons, Inc. — Class B		136		3,486
GAIN Capital Holdings, Inc.		564		3,486
American National Bankshares, Inc.		124		3,466
Regional Management Corp.*		160		3,464
National Commerce Corp.*		128		3,464
Carolina Financial Corp.		155		3,463
Green Bancorp, Inc.*		313		3,421
Bancorp, Inc.*		530		3,403
EMC Insurance Group, Inc.		126		3,393
Bar Harbor Bankshares		90		3,305
Sierra Bancorp		176		3,302
Farmers Capital Bank Corp.		111		3,290
Territorial Bancorp, Inc.		114		3,267
Orchid Island Capital, Inc.		308		3,209
Macatawa Bank Corp.		400		3,196
Consolidated-Tomoka Land Co.		62		3,174
Penns Woods Bancorp, Inc.		70		3,112
Great Ajax Corp.		225		3,071
eHealth, Inc.*		273		3,061
WashingtonFirst Bankshares, Inc.		122		3,002
Heritage Oaks Bancorp		363		2,977
FRP Holdings, Inc.*		95		2,952
Access National Corp.		123		2,940
BankFinancial Corp.		230		2,921
First Mid-Illinois Bancshares, Inc.		106		2,890
Cascade Bancorp*		475		2,879
First Business Financial Services, Inc.		122		2,867
Trinity Place Holdings, Inc.*		293		2,866
BSB Bancorp, Inc.*		122		2,858
Merchants Bancshares, Inc.		87		2,818
Hingham Institution for Savings		20		2,770
Charter Financial Corp.		206		2,653
Owens Realty Mortgage, Inc.		152		2,633
CommunityOne Bancorp*		190		2,630
Northrim BanCorp, Inc.		102		2,627
Codorus Valley Bancorp, Inc.		117		2,560
Atlas Financial Holdings, Inc.*		161		2,539
Old Line Bancshares, Inc.		127		2,506
Bear State Financial, Inc.		271		2,490
Capital City Bank Group, Inc.		166		2,452
Home Bancorp, Inc.		87		2,436
MBT Financial Corp.		269		2,434
Real Industry, Inc.*		396		2,424
LCNB Corp.		133		2,423
Marlin Business Services Corp.		125		2,423
Summit Financial Group, Inc.		126		2,414
Associated Capital Group, Inc. — Class A		68		2,411
ACNB Corp.		90		2,392
MutualFirst Financial, Inc.		82		2,274
Stratus Properties, Inc.*		93		2,269
First Northwest Bancorp*		168		2,266

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Shore Bancshares, Inc.		190	$	2,238
First NBC Bank Holding Co.*		237		2,237
SI Financial Group, Inc.		168		2,218
Orrstown Financial Services, Inc.		112		2,212
Premier Financial Bancorp, Inc.		129		2,211
Southern National Bancorp of Virginia, Inc.		169		2,205
Southern Missouri Bancorp, Inc.		88		2,191
Investors Title Co.		22		2,189
Veritex Holdings, Inc.*		125		2,174
Hallmark Financial Services, Inc.*		211		2,171
Oppenheimer Holdings, Inc. — Class A		150		2,144
Lake Sunapee Bank Group		118		2,132
C&F Financial Corp.		49		2,111
Central Valley Community Bancorp		132		2,094
Republic First Bancorp, Inc.*		509		2,092
Tiptree Financial, Inc. — Class A		346		2,055
Crawford & Co. — Class B		181		2,054
Century Bancorp, Inc. — Class A		45		2,039
Bankwell Financial Group, Inc.		86		2,037
Donegal Group, Inc. — Class A		126		2,030
Union Bankshares, Inc.		59		2,010
Middleburg Financial Corp.		71		2,008
Equity Bancshares, Inc. — Class A*		76		1,971
Farmland Partners, Inc.		176		1,971
First Community Financial Partners, Inc.*		206		1,961
Provident Financial Holdings, Inc.		100		1,956
First Financial Northwest, Inc.		137		1,941
Southern First Bancshares, Inc.*		70		1,931
GAMCO Investors, Inc. — Class A		66		1,879
Westfield Financial, Inc.		241		1,844
Independence Holding Co.		107		1,838
First Internet Bancorp		79		1,824
Calamos Asset Management, Inc. — Class A		255		1,739
Pacific Mercantile Bancorp*		232		1,710
Pzena Investment Management, Inc. — Class A		221		1,702
ESSA Bancorp, Inc.		123		1,701
Blue Capital Reinsurance Holdings Ltd.		89		1,630
Xenith Bankshares, Inc.*		697		1,610
Manning & Napier, Inc. — Class A		226		1,602
Impac Mortgage Holdings, Inc.*		119		1,570
Hennessy Advisors, Inc.		43		1,525
County Bancorp, Inc.		72		1,441
Midland States Bancorp, Inc.		55		1,394
Chemung Financial Corp.		47		1,363
Silvercrest Asset Management Group, Inc. — Class A		106		1,258
FBR & Co.		88		1,165
Walter Investment Management Corp.*		282		1,145
Provident Bancorp, Inc.*		67		1,045
BBX Capital Corp. — Class A*		46		949
Greene County Bancorp, Inc.		46		767
Medley Management, Inc. — Class A		86		723
California First National Bancorp		35		489
Fifth Street Asset Management, Inc.		77		424
Griffin Industrial Realty, Inc.		11		349
United Development Funding IV†††		200		—
Total Financial				6,825,014
Consumer, Non-cyclical - 15.5%
Cepheid*		1,099		57,905
PAREXEL International Corp.*		793		55,074
HealthSouth Corp.		1,341		54,403
NuVasive, Inc.*		748		49,862
Deluxe Corp.		739		49,380
B&G Foods, Inc.		993		48,835
Bright Horizons Family Solutions, Inc.*		664		44,415
Horizon Pharma plc*		2,438		44,201
Exelixis, Inc.*		3,436		43,946
Cantel Medical Corp.		542		42,265
Healthcare Services Group, Inc.		1,064		42,114
Snyder’s-Lance, Inc.		1,217		40,866
TESARO, Inc.*		405		40,597
Sarepta Therapeutics, Inc.*		646		39,671
Catalent, Inc.*		1,506		38,914
Prestige Brands Holdings, Inc.*		804		38,809
Ultragenyx Pharmaceutical, Inc.*		545		38,662
Cimpress N.V.*		380		38,448
Medicines Co.*		1,017		38,381
Wright Medical Group N.V.*		1,559		38,242
Molina Healthcare, Inc.*		654		38,142
Bluebird Bio, Inc.*		560		37,957
Nevro Corp.*		363		37,894
Integra LifeSciences Holdings Corp.*		457		37,725
Avon Products, Inc.*		6,658		37,684
Lancaster Colony Corp.		284		37,514
Masimo Corp.*		618		36,765
ARIAD Pharmaceuticals, Inc.*		2,674		36,607
Helen of Troy Ltd.*		424		36,536
Insulet Corp.*		871		35,659
Chemed Corp.		245		34,562
Nektar Therapeutics*		1,957		33,620
Darling Ingredients, Inc.*		2,482		33,533
ABM Industries, Inc.		842		33,427
Team Health Holdings, Inc.*		1,025		33,374
Kite Pharma, Inc.*		593		33,125
Owens & Minor, Inc.		943		32,751
Prothena Corporation plc*		525		31,484
Ironwood Pharmaceuticals, Inc. — Class A*		1,956		31,061
Neogen Corp.*		551		30,822
Cardtronics plc — Class A*		682		30,417
Vector Group Ltd.		1,404		30,217
United Natural Foods, Inc.*		749		29,990
Exact Sciences Corp.*		1,598		29,675
Matthews International Corp. — Class A		484		29,408
Ligand Pharmaceuticals, Inc. — Class B*		288		29,393
Fresh Del Monte Produce, Inc.		489		29,291
Penumbra, Inc.*		385		29,256
Sanderson Farms, Inc.		303		29,188
Monro Muffler Brake, Inc.		475		29,056
Sotheby’s		744		28,287

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
HMS Holdings Corp.*		1,274	$	28,245
ICU Medical, Inc.*		222		28,056
Haemonetics Corp.*		773		27,990
FTI Consulting, Inc.*		628		27,983
Incorporated Research Holdings, Inc. — Class A*		626		27,907
On Assignment, Inc.*		768		27,871
Advisory Board Co.*		620		27,739
Grand Canyon Education, Inc.*		680		27,465
J&J Snack Foods Corp.		227		27,040
CEB, Inc.		486		26,472
Travelport Worldwide Ltd.		1,747		26,257
Impax Laboratories, Inc.*		1,107		26,236
Radius Health, Inc.*		477		25,801
Brink’s Co.		681		25,251
Aaron’s, Inc.		993		25,242
Puma Biotechnology, Inc.*		373		25,010
HealthEquity, Inc.*		653		24,716
Halyard Health, Inc.*		708		24,539
NxStage Medical, Inc.*		962		24,040
WD-40 Co.		213		23,947
Globus Medical, Inc. — Class A*		1,059		23,902
Alder Biopharmaceuticals, Inc.*		708		23,201
Depomed, Inc.*		922		23,041
AMN Healthcare Services, Inc.*		715		22,787
Dean Foods Co.		1,385		22,714
DeVry Education Group, Inc.		945		21,792
Select Medical Holdings Corp.*		1,613		21,776
LifeLock, Inc.*		1,277		21,607
Cambrex Corp.*		482		21,430
Five Prime Therapeutics, Inc.*		408		21,416
Ophthotech Corp.*		461		21,266
Zeltiq Aesthetics, Inc.*		536		21,022
Myriad Genetics, Inc.*		1,020		20,992
PRA Health Sciences, Inc.*		366		20,683
Boston Beer Company, Inc. — Class A*		133		20,649
Magellan Health, Inc.*		376		20,202
Amedisys, Inc.*		423		20,067
SUPERVALU, Inc.*		4,019		20,054
Halozyme Therapeutics, Inc.*		1,648		19,908
Theravance Biopharma, Inc.*		549		19,896
Surgical Care Affiliates, Inc.*		406		19,797
Universal Corp.		336		19,562
Huron Consulting Group, Inc.*		327		19,542
Diplomat Pharmacy, Inc.*		692		19,383
Natus Medical, Inc.*		492		19,331
Community Health Systems, Inc.*		1,668		19,249
Pacira Pharmaceuticals, Inc.*		551		18,855
Sage Therapeutics, Inc.*		399		18,374
Cynosure, Inc. — Class A*		359		18,287
Korn/Ferry International		866		18,186
Cal-Maine Foods, Inc.		468		18,037
Supernus Pharmaceuticals, Inc.*		709		17,534
Spark Therapeutics, Inc.*		289		17,357
Clovis Oncology, Inc.*		481		17,340
Insperity, Inc.		237		17,216
Abaxis, Inc.		332		17,138
Air Methods Corp.*		538		16,942
Portola Pharmaceuticals, Inc.*		744		16,896
CONMED Corp.		417		16,705
Analogic Corp.		188		16,657
FibroGen, Inc.*		791		16,374
Cempra, Inc.*		675		16,335
Spectranetics Corp.*		646		16,208
SpartanNash Co.		559		16,166
EVERTEC, Inc.		960		16,109
Amicus Therapeutics, Inc.*		2,152		15,925
Merit Medical Systems, Inc.*		651		15,813
Endologix, Inc.*		1,225		15,680
ACCO Brands Corp.*		1,607		15,491
Emergent BioSolutions, Inc.*		491		15,481
TherapeuticsMD, Inc.*		2,268		15,445
Repligen Corp.*		511		15,427
Calavo Growers, Inc.		234		15,311
Synergy Pharmaceuticals, Inc.*		2,742		15,108
Acceleron Pharma, Inc.*		414		14,983
Green Dot Corp. — Class A*		645		14,874
Inogen, Inc.*		247		14,795
Array BioPharma, Inc.*		2,182		14,729
Andersons, Inc.		406		14,689
Navigant Consulting, Inc.*		718		14,518
Ensign Group, Inc.		721		14,514
Paylocity Holding Corp.*		326		14,494
TrueBlue, Inc.*		637		14,434
MacroGenics, Inc.*		482		14,417
Achillion Pharmaceuticals, Inc.*		1,771		14,345
Team, Inc.*		437		14,294
Performance Food Group Co.*		566		14,037
TriNet Group, Inc.*		637		13,778
Seaboard Corp.*		4		13,760
Aerie Pharmaceuticals, Inc.*		364		13,737
Luminex Corp.*		601		13,655
Insmed, Inc.*		935		13,576
Acorda Therapeutics, Inc.*		650		13,572
Innoviva, Inc.*		1,221		13,419
MiMedx Group, Inc.*		1,545		13,256
NutriSystem, Inc.		440		13,064
Kindred Healthcare, Inc.		1,273		13,010
AMAG Pharmaceuticals, Inc.*		527		12,917
Healthways, Inc.*		482		12,754
Dermira, Inc.*		372		12,581
Central Garden & Pet Co. — Class A*		506		12,549
PharMerica Corp.*		447		12,547
Vascular Solutions, Inc.*		255		12,299
Retrophin, Inc.*		548		12,264
Meridian Bioscience, Inc.		631		12,172
ICF International, Inc.*		273		12,099
Coherus Biosciences, Inc.*		446		11,944
Xencor, Inc.*		486		11,902
Merrimack Pharmaceuticals, Inc.*		1,845		11,716
Quad/Graphics, Inc.		438		11,703
Raptor Pharmaceutical Corp.*		1,292		11,589

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Lexicon Pharmaceuticals, Inc.*		639	$	11,547
Momenta Pharmaceuticals, Inc.*		982		11,480
US Physical Therapy, Inc.		183		11,474
Cardiovascular Systems, Inc.*		482		11,443
Orthofix International N.V.*		265		11,334
McGrath RentCorp		355		11,257
Viad Corp.		304		11,208
National Healthcare Corp.		169		11,152
Lannett Company, Inc.*		419		11,133
USANA Health Sciences, Inc.*		79		10,930
Pacific Biosciences of California, Inc.*		1,214		10,877
Coca-Cola Bottling Company Consolidated		71		10,520
ZIOPHARM Oncology, Inc.*		1,837		10,342
Apollo Education Group, Inc. — Class A*		1,291		10,263
Amphastar Pharmaceuticals, Inc.*		538		10,206
Anika Therapeutics, Inc.*		213		10,192
Capella Education Co.		171		9,925
Rent-A-Center, Inc.		784		9,910
Tootsie Roll Industries, Inc.		260		9,576
Glaukos Corp.*		253		9,548
Providence Service Corp.*		196		9,531
Cerus Corp.*		1,531		9,508
Accelerate Diagnostics, Inc.*		348		9,486
Eagle Pharmaceuticals, Inc.*		134		9,380
Inovio Pharmaceuticals, Inc.*		1,002		9,339
LendingTree, Inc.*		96		9,303
Vanda Pharmaceuticals, Inc.*		554		9,219
Blueprint Medicines Corp.*		303		8,999
Adeptus Health, Inc. — Class A*		209		8,997
Quidel Corp.*		406		8,969
Atrion Corp.		21		8,959
Kelly Services, Inc. — Class A		444		8,534
Inter Parfums, Inc.		264		8,519
Novavax, Inc.*		4,080		8,486
CryoLife, Inc.		477		8,381
LHC Group, Inc.*		227		8,372
PDL BioPharma, Inc.		2,497		8,365
Ingles Markets, Inc. — Class A		211		8,343
CBIZ, Inc.*		745		8,337
Vitae Pharmaceuticals, Inc.*		398		8,326
Heron Therapeutics, Inc.*		481		8,288
Genomic Health, Inc.*		282		8,155
Resources Connection, Inc.		539		8,053
RPX Corp.*		750		8,018
ANI Pharmaceuticals, Inc.*		120		7,962
Agenus, Inc.*		1,104		7,927
Intra-Cellular Therapies, Inc.*		519		7,910
National Beverage Corp.*		177		7,797
SciClone Pharmaceuticals, Inc.*		757		7,759
Omega Protein Corp.*		331		7,735
Triple-S Management Corp. — Class B*		352		7,719
MGP Ingredients, Inc.		190		7,699
Phibro Animal Health Corp. — Class A		283		7,692
Weis Markets, Inc.		145		7,685
Accuray, Inc.*		1,204		7,669
Kforce, Inc.		371		7,602
BioTelemetry, Inc.*		408		7,577
AtriCure, Inc.*		475		7,515
Atara Biotherapeutics, Inc.*		351		7,508
Strayer Education, Inc.*		159		7,422
Corcept Therapeutics, Inc.*		1,129		7,339
K12, Inc.*		511		7,333
GenMark Diagnostics, Inc.*		607		7,163
Amplify Snack Brands, Inc.*		442		7,160
AngioDynamics, Inc.*		408		7,156
Capital Senior Living Corp.*		425		7,140
PTC Therapeutics, Inc.*		503		7,047
K2M Group Holdings, Inc.*		389		6,916
Career Education Corp.*		1,010		6,858
Omeros Corp.*		612		6,830
Arrowhead Pharmaceuticals, Inc.*		914		6,718
SP Plus Corp.*		261		6,674
Aduro Biotech, Inc.*		536		6,662
Progenics Pharmaceuticals, Inc.*		1,052		6,659
John B Sanfilippo & Son, Inc.		129		6,622
Lion Biotechnologies, Inc.*		803		6,609
Otonomy, Inc.*		363		6,603
Flexion Therapeutics, Inc.*		337		6,585
NeoGenomics, Inc.*		801		6,584
Novocure Ltd.*		765		6,533
OraSure Technologies, Inc.*		819		6,527
Ennis, Inc.		387		6,521
Revlon, Inc. — Class A*		177		6,510
Albany Molecular Research, Inc.*		393		6,488
Arena Pharmaceuticals, Inc.*		3,705		6,484
Landauer, Inc.		144		6,405
Cotiviti Holdings, Inc.*		191		6,403
Keryx Biopharmaceuticals, Inc.*		1,193		6,335
Bellicum Pharmaceuticals, Inc.*		317		6,308
Enanta Pharmaceuticals, Inc.*		236		6,280
Dynavax Technologies Corp.*		588		6,168
Intersect ENT, Inc.*		386		6,114
Epizyme, Inc.*		609		5,993
Medifast, Inc.		158		5,971
Aimmune Therapeutics, Inc.*		397		5,955
Surmodics, Inc.*		196		5,898
Forrester Research, Inc.		150		5,836
Celldex Therapeutics, Inc.*		1,444		5,834
Advaxis, Inc.*		542		5,794
Global Blood Therapeutics, Inc.*		250		5,763
CorVel Corp.*		150		5,760
Teladoc, Inc.*		314		5,749
Cross Country Healthcare, Inc.*		485		5,713
Surgery Partners, Inc.*		281		5,687
STAAR Surgical Co.*		605		5,687
Hackett Group, Inc.		339		5,600
Spectrum Pharmaceuticals, Inc.*		1,171		5,469
Ardelyx, Inc.*		417		5,396
ConforMIS, Inc.*		541		5,367
Invacare Corp.		479		5,350
Tobira Therapeutics, Inc.*		134		5,325
Universal American Corp.		694		5,309

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Barrett Business Services, Inc.		107	$	5,308
Carriage Services, Inc. — Class A		224		5,298
Loxo Oncology, Inc.*		202		5,288
Axovant Sciences Ltd.*		370		5,180
Rigel Pharmaceuticals, Inc.*		1,407		5,164
Geron Corp.*		2,281		5,155
Heidrick & Struggles International, Inc.		277		5,138
Tejon Ranch Co.*		211		5,132
Versartis, Inc.*		413		5,059
Revance Therapeutics, Inc.*		309		5,009
Heska Corp.*		92		5,008
La Jolla Pharmaceutical Co.*		210		4,996
Organovo Holdings, Inc.*		1,301		4,931
Akebia Therapeutics, Inc.*		543		4,914
NewLink Genetics Corp.*		327		4,912
BioCryst Pharmaceuticals, Inc.*		1,110		4,895
Sangamo BioSciences, Inc.*		1,049		4,857
Rockwell Medical, Inc.*		724		4,851
CytomX Therapeutics, Inc.*		309		4,845
Monster Worldwide, Inc.*		1,324		4,780
Teligent, Inc.*		626		4,758
Foundation Medicine, Inc.*		203		4,740
Aratana Therapeutics, Inc.*		504		4,717
Cytokinetics, Inc.*		512		4,700
American Public Education, Inc.*		234		4,636
Trevena, Inc.*		676		4,563
Almost Family, Inc.*		123		4,523
Alarm.com Holdings, Inc.*		156		4,502
ServiceSource International, Inc.*		922		4,499
NanoString Technologies, Inc.*		224		4,476
Smart & Final Stores, Inc.*		350		4,470
Curis, Inc.*		1,686		4,400
Natera, Inc.*		394		4,377
Sucampo Pharmaceuticals, Inc. — Class A*		354		4,358
Farmer Brothers Co.*		122		4,337
Weight Watchers International, Inc.*		420		4,334
TG Therapeutics, Inc.*		557		4,311
REGENXBIO, Inc.*		306		4,287
Immunomedics, Inc.*		1,319		4,287
Zogenix, Inc.*		375		4,286
Exactech, Inc.*		158		4,271
Oxford Immunotec Global plc*		336		4,220
Insys Therapeutics, Inc.*		355		4,185
Civitas Solutions, Inc.*		228		4,163
RadNet, Inc.*		562		4,159
Adamas Pharmaceuticals, Inc.*		252		4,135
BioTime, Inc.*		1,051		4,099
Minerva Neurosciences, Inc.*		287		4,050
LeMaitre Vascular, Inc.		204		4,047
Central Garden & Pet Co.*		153		3,978
Collegium Pharmaceutical, Inc.*		205		3,948
Nutraceutical International Corp.*		125		3,905
Primo Water Corp.*		319		3,869
BioSpecifics Technologies Corp.*		81		3,699
Aclaris Therapeutics, Inc.*		144		3,688
OncoMed Pharmaceuticals, Inc.*		321		3,669
BioScrip, Inc.*		1,261		3,644
WaVe Life Sciences Ltd.*		112		3,637
Craft Brew Alliance, Inc.*		191		3,597
Chimerix, Inc.*		646		3,579
Ascent Capital Group, Inc. — Class A*		154		3,568
XBiotech, Inc.*		264		3,553
Village Super Market, Inc. — Class A		111		3,553
Karyopharm Therapeutics, Inc.*		357		3,474
Idera Pharmaceuticals, Inc.*		1,345		3,443
Paratek Pharmaceuticals, Inc.*		263		3,422
ImmunoGen, Inc.*		1,273		3,412
OvaScience, Inc.*		475		3,401
MediciNova, Inc.*		449		3,363
Limoneira Co.		177		3,345
Seres Therapeutics, Inc.*		270		3,318
InVivo Therapeutics Holdings Corp.*		487		3,312
CSS Industries, Inc.		129		3,300
AxoGen, Inc.*		365		3,296
TerraVia Holdings, Inc.*		1,187		3,264
Chefs’ Warehouse, Inc.*		293		3,264
CRA International, Inc.*		121		3,217
MoneyGram International, Inc.*		448		3,181
Natural Health Trends Corp.		112		3,165
Great Lakes Dredge & Dock Corp.*		892		3,122
Enzo Biochem, Inc.*		600		3,054
Utah Medical Products, Inc.		51		3,050
MannKind Corp.*		4,901		3,039
Invitae Corp.*		344		3,013
Esperion Therapeutics, Inc.*		216		2,992
Avexis, Inc.*		72		2,967
Sorrento Therapeutics, Inc.*		381		2,949
Addus HomeCare Corp.*		112		2,930
Quorum Health Corp.*		449		2,815
Nobilis Health Corp.*		838		2,807
Ignyta, Inc.*		446		2,805
Seneca Foods Corp. — Class A*		99		2,796
MyoKardia, Inc.*		170		2,778
Stemline Therapeutics, Inc.*		255		2,762
Franklin Covey Co.*		154		2,743
RTI Surgical, Inc.*		868		2,717
Inventure Foods, Inc.*		287		2,698
Cellular Biomedicine Group, Inc.*		184		2,668
Cara Therapeutics, Inc.*		318		2,655
Durect Corp.*		1,907		2,651
AAC Holdings, Inc.*		150		2,609
Edge Therapeutics, Inc.*		246		2,561
Egalet Corp.*		335		2,549
Concert Pharmaceuticals, Inc.*		249		2,517
Entellus Medical, Inc.*		113		2,506
Inotek Pharmaceuticals Corp.*		264		2,503
Pfenex, Inc.*		275		2,461
Vectrus, Inc.*		161		2,452
Athersys, Inc.*		1,150		2,450
American Renal Associates Holdings, Inc.*		132		2,412
Alliance One International, Inc.*		126		2,409

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
ARC Document Solutions, Inc.*		621	$	2,323
Medgenics, Inc.*		411		2,289
Reata Pharmaceuticals, Inc. — Class A*		86		2,267
PharmAthene, Inc.*		766		2,221
Vital Therapies, Inc.*		358		2,191
Tandem Diabetes Care, Inc.*		281		2,152
Voyager Therapeutics, Inc.*		177		2,126
Care.com, Inc.*		212		2,112
Cutera, Inc.*		177		2,110
Tetraphase Pharmaceuticals, Inc.*		550		2,107
ChemoCentryx, Inc.*		348		2,102
Collectors Universe, Inc.		113		2,094
Textainer Group Holdings Ltd.		279		2,090
AcelRx Pharmaceuticals, Inc.*		535		2,081
National Research Corp. — Class A		127		2,069
Nature’s Sunshine Products, Inc.		129		2,064
PFSweb, Inc.*		222		1,982
Lifevantage Corp.*		208		1,968
Synthetic Biologics, Inc.*		1,143		1,966
NantKwest, Inc.*		252		1,961
CAI International, Inc.*		237		1,960
Regulus Therapeutics, Inc.*		587		1,937
CPI Card Group, Inc.		317		1,915
Trovagene, Inc.*		426		1,913
Flex Pharma, Inc.*		161		1,897
Applied Genetic Technologies Corp.*		192		1,878
Information Services Group, Inc.*		470		1,875
Anthera Pharmaceuticals, Inc.*		595		1,874
Bio-Path Holdings, Inc.*		1,337		1,872
B. Riley Financial, Inc.		140		1,870
Ocular Therapeutix, Inc.*		271		1,862
Bridgepoint Education, Inc.*		270		1,855
Cidara Therapeutics, Inc.*		162		1,855
Intellia Therapeutics, Inc.*		106		1,804
Endocyte, Inc.*		575		1,777
TransEnterix, Inc.*		1,051		1,776
Titan Pharmaceuticals, Inc.*		284		1,670
Iridex Corp.*		114		1,652
Senseonics Holdings, Inc.*		421		1,642
Veracyte, Inc.*		212		1,613
T2 Biosystems, Inc.*		221		1,600
Natural Grocers by Vitamin Cottage, Inc.*		138		1,540
Fortress Biotech, Inc.*		515		1,530
Genesis Healthcare, Inc.*		566		1,511
Osiris Therapeutics, Inc.		301		1,493
Proteostasis Therapeutics, Inc.*		95		1,481
Dimension Therapeutics, Inc.*		185		1,478
Patriot National, Inc.*		164		1,478
Anavex Life Sciences Corp.*		401		1,456
Asterias Biotherapeutics, Inc.*		343		1,454
Adverum Biotechnologies, Inc.*		348		1,430
Agile Therapeutics, Inc.*		201		1,403
Editas Medicine, Inc.*		104		1,402
Neos Therapeutics, Inc.*		208		1,369
Neff Corp. — Class A*		144		1,368
Synutra International, Inc.*		319		1,359
Axsome Therapeutics, Inc.*		168		1,324
Liberty Tax, Inc.		103		1,316
GlycoMimetics, Inc.*		181		1,294
ChromaDex Corp.*		433		1,290
Alico, Inc.		48		1,289
Mirati Therapeutics, Inc.*		192		1,269
Immune Design Corp.*		167		1,266
Lifeway Foods, Inc.*		71		1,203
Infinity Pharmaceuticals, Inc.*		742		1,158
Zafgen, Inc.*		346		1,145
Galena Biopharma, Inc.*		3,198		1,120
Lipocine, Inc.*		250		1,115
Cambium Learning Group, Inc.*		203		1,102
Turning Point Brands, Inc.*		90		1,082
Syndax Pharmaceuticals, Inc.*		71		1,076
iRadimed Corp.*		61		1,036
Avinger, Inc.*		205		978
Argos Therapeutics, Inc.*		192		954
Eiger BioPharmaceuticals, Inc.*		63		844
vTv Therapeutics, Inc. — Class A*		115		827
Corvus Pharmaceuticals, Inc.*		50		823
Second Sight Medical Products, Inc.*		215		757
CytRx Corp.*		1,217		716
USMD Holdings, Inc.*		29		657
Ampio Pharmaceuticals, Inc.*		663		491
ViewRay, Inc.*		100		452
Tokai Pharmaceuticals, Inc.*		150		230
Total Consumer, Non-cyclical				5,367,473
Industrial - 10.2%
Curtiss-Wright Corp.		670		61,043
Teledyne Technologies, Inc.*		518		55,907
EMCOR Group, Inc.		915		54,553
XPO Logistics, Inc.*		1,480		54,271
Woodward, Inc.		800		49,983
CLARCOR, Inc.		719		46,735
EnerSys		659		45,596
Tech Data Corp.*		529		44,812
Belden, Inc.		634		43,740
Littelfuse, Inc.		335		43,150
Joy Global, Inc.		1,490		41,332
Louisiana-Pacific Corp.*		2,179		41,031
Coherent, Inc.*		366		40,458
Dycom Industries, Inc.*		462		37,782
Generac Holdings, Inc.*		988		35,864
Drew Industries, Inc.		359		35,190
Universal Display Corp.*		627		34,805
Kennametal, Inc.		1,194		34,650
Esterline Technologies Corp.*		447		33,990
Sanmina Corp.*		1,110		31,602
John Bean Technologies Corp.		441		31,113
Tetra Tech, Inc.		873		30,965
Barnes Group, Inc.		759		30,777
MasTec, Inc.*		1,001		29,770
Granite Construction, Inc.		598		29,745
Mueller Water Products, Inc. — Class A		2,356		29,568
Universal Forest Products, Inc.		300		29,546

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Vishay Intertechnology, Inc.		2,063	$	29,068
Knight Transportation, Inc.		1,012		29,033
Moog, Inc. — Class A*		484		28,817
Masonite International Corp.*		459		28,535
Golar LNG Ltd.		1,344		28,493
Franklin Electric Company, Inc.		697		28,375
Advanced Energy Industries, Inc.*		597		28,250
Hillenbrand, Inc.		892		28,223
Itron, Inc.*		506		28,215
KLX, Inc.*		798		28,090
Mueller Industries, Inc.		856		27,752
Simpson Manufacturing Company, Inc.		628		27,601
GATX Corp.		619		27,577
Watts Water Technologies, Inc. — Class A		421		27,298
MSA Safety, Inc.		470		27,278
Rexnord Corp.*		1,253		26,827
RBC Bearings, Inc.*		343		26,233
Trex Company, Inc.*		446		26,189
Matson, Inc.		654		26,082
IMAX Corp.*		890		25,783
Applied Industrial Technologies, Inc.		549		25,661
AZZ, Inc.		392		25,585
GoPro, Inc. — Class A*		1,527		25,470
KapStone Paper and Packaging Corp.		1,305		24,691
Trinseo S.A.		435		24,603
Swift Transportation Co. — Class A*		1,129		24,240
Brady Corp. — Class A		692		23,950
Plexus Corp.*		504		23,577
Fabrinet*		527		23,499
TASER International, Inc.*		789		22,573
Proto Labs, Inc.*		373		22,346
Smith & Wesson Holding Corp.*		828		22,016
II-VI, Inc.*		899		21,873
Summit Materials, Inc. — Class A*		1,151		21,351
Triumph Group, Inc.		745		20,771
Hub Group, Inc. — Class A*		507		20,665
Actuant Corp. — Class A		888		20,637
Exponent, Inc.		387		19,760
Forward Air Corp.		450		19,467
TopBuild Corp.*		583		19,356
Methode Electronics, Inc.		552		19,303
Greif, Inc. — Class A		387		19,190
Apogee Enterprises, Inc.		429		19,172
Knowles Corp.*		1,334		18,743
Benchmark Electronics, Inc.*		748		18,663
Headwaters, Inc.*		1,099		18,595
EnPro Industries, Inc.		326		18,523
Albany International Corp. — Class A		433		18,351
Cubic Corp.		381		17,835
Kaman Corp.		406		17,832
Standex International Corp.		192		17,831
ESCO Technologies, Inc.		384		17,825
Gibraltar Industries, Inc.*		477		17,721
AAON, Inc.		611		17,609
Astec Industries, Inc.		293		17,541
OSI Systems, Inc.*		265		17,326
Tennant Co.		265		17,172
Rogers Corp.*		273		16,675
SPX FLOW, Inc.*		534		16,511
Comfort Systems USA, Inc.		561		16,443
Sturm Ruger & Company, Inc.		281		16,231
Atlas Air Worldwide Holdings, Inc.*		371		15,886
Aerojet Rocketdyne Holdings, Inc.*		900		15,822
Werner Enterprises, Inc.		676		15,731
AAR Corp.		500		15,660
Chart Industries, Inc.*		463		15,200
Boise Cascade Co.*		590		14,986
CIRCOR International, Inc.		249		14,830
US Ecology, Inc.		330		14,797
Builders FirstSource, Inc.*		1,267		14,583
Greenbrier Companies, Inc.		410		14,473
Badger Meter, Inc.		424		14,208
Multi-Color Corp.		206		13,596
Caesarstone Ltd.*		360		13,576
Patrick Industries, Inc.*		219		13,560
Ship Finance International Ltd.		905		13,331
Nordic American Tankers Ltd.		1,312		13,264
Rofin-Sinar Technologies, Inc.*		409		13,162
Heartland Express, Inc.		697		13,159
Astronics Corp.*		292		13,155
Lydall, Inc.*		251		12,834
TriMas Corp.*		682		12,692
SPX Corp.*		629		12,668
Raven Industries, Inc.		549		12,643
Advanced Drainage Systems, Inc.		525		12,632
Primoris Services Corp.		609		12,545
TTM Technologies, Inc.*		1,095		12,538
Tutor Perini Corp.*		571		12,259
Harsco Corp.		1,218		12,095
Federal Signal Corp.		906		12,014
Briggs & Stratton Corp.		642		11,973
Argan, Inc.		202		11,956
Lindsay Corp.		160		11,837
Scorpio Tankers, Inc.		2,470		11,436
Saia, Inc.*		381		11,415
Babcock & Wilcox Enterprises, Inc.*		691		11,402
Sun Hydraulics Corp.		352		11,359
Encore Wire Corp.		306		11,252
Continental Building Products, Inc.*		533		11,188
Altra Industrial Motion Corp.		381		11,038
General Cable Corp.		732		10,965
Air Transport Services Group, Inc.*		733		10,519
Aegion Corp. — Class A*		529		10,088
Echo Global Logistics, Inc.*		435		10,031
US Concrete, Inc.*		217		9,996
AVX Corp.		704		9,708
Insteel Industries, Inc.		265		9,604
Alamo Group, Inc.		143		9,422
Global Brass & Copper Holdings, Inc.		319		9,216
Manitowoc Company, Inc.		1,923		9,211
FARO Technologies, Inc.*		251		9,023
GasLog Ltd.		619		9,006

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Quanex Building Products Corp.		518	$	8,941
CTS Corp.		474		8,816
Hyster-Yale Materials Handling, Inc.		143		8,599
Kadant, Inc.		162		8,442
Energy Recovery, Inc.*		521		8,326
Novanta, Inc.*		478		8,293
Triton International Ltd.		607		8,006
Griffon Corp.		457		7,774
PGT, Inc.*		722		7,704
Aerovironment, Inc.*		310		7,567
Stoneridge, Inc.*		406		7,470
Chase Corp.		107		7,396
Marten Transport Ltd.		348		7,308
NN, Inc.		397		7,245
Tredegar Corp.		384		7,139
ArcBest Corp.		372		7,075
Frontline Ltd.		982		7,041
Haynes International, Inc.		188		6,977
Gorman-Rupp Co.		266		6,812
MYR Group, Inc.*		226		6,803
Armstrong Flooring, Inc.*		354		6,684
AEP Industries, Inc.		61		6,672
National Presto Industries, Inc.		74		6,496
TimkenSteel Corp.*		596		6,228
Overseas Shipholding Group, Inc. — Class A		584		6,172
Mistras Group, Inc.*		259		6,079
YRC Worldwide, Inc.*		492		6,061
Casella Waste Systems, Inc. — Class A*		585		6,026
NCI Building Systems, Inc.*		411		5,996
Kimball Electronics, Inc.*		425		5,891
DHT Holdings, Inc.		1,387		5,812
Applied Optoelectronics, Inc.*		249		5,530
DXP Enterprises, Inc.*		196		5,525
Powell Industries, Inc.		132		5,287
Greif, Inc. — Class B		87		5,271
Columbus McKinnon Corp.		294		5,245
Mesa Laboratories, Inc.		45		5,146
Teekay Corp.		662		5,104
Park Electrochemical Corp.		292		5,072
CECO Environmental Corp.		443		4,997
American Railcar Industries, Inc.		117		4,852
Kratos Defense & Security Solutions, Inc.*		701		4,830
GP Strategies Corp.*		193		4,752
Park-Ohio Holdings Corp.		129		4,702
Multi Packaging Solutions International Ltd.*		321		4,626
Teekay Tankers Ltd. — Class A		1,761		4,455
Ply Gem Holdings, Inc.*		333		4,449
VSE Corp.		130		4,419
Energous Corp.*		224		4,393
Myers Industries, Inc.		328		4,261
NVE Corp.		72		4,244
LSI Industries, Inc.		360		4,043
Control4 Corp.*		304		3,733
Sparton Corp.*		142		3,729
Roadrunner Transportation Systems, Inc.*		463		3,695
Costamare, Inc.		400		3,656
Celadon Group, Inc.		412		3,601
NV5 Global, Inc.*		111		3,586
Ducommun, Inc.*		157		3,586
Fluidigm Corp.*		440		3,524
Milacron Holdings Corp.*		220		3,511
Covenant Transportation Group, Inc. — Class A*		179		3,460
Bel Fuse, Inc. — Class B		140		3,380
ZAGG, Inc.*		417		3,378
Olympic Steel, Inc.		139		3,072
Gener8 Maritime, Inc.*		594		3,041
Vishay Precision Group, Inc.*		183		2,933
Vicor Corp.*		249		2,888
Orion Group Holdings, Inc.*		407		2,788
Ardmore Shipping Corp.		395		2,781
Graham Corp.		144		2,750
Hornbeck Offshore Services, Inc.*		492		2,706
Hurco Companies, Inc.		96		2,695
LSB Industries, Inc.*		312		2,677
FreightCar America, Inc.		183		2,632
UFP Technologies, Inc.*		97		2,571
Heritage-Crystal Clean, Inc.*		193		2,563
TRC Companies, Inc.*		281		2,436
Scorpio Bulkers, Inc.*		694		2,401
Electro Scientific Industries, Inc.*		416		2,346
Layne Christensen Co.*		274		2,332
Dynamic Materials Corp.		212		2,260
Hill International, Inc.*		489		2,254
Dorian LPG Ltd.*		366		2,196
IES Holdings, Inc.*		118		2,099
Tidewater, Inc.		715		2,016
Hardinge, Inc.		177		1,970
Allied Motion Technologies, Inc.		93		1,759
Omega Flex, Inc.		44		1,697
Universal Logistics Holdings, Inc.		126		1,691
Lawson Products, Inc.*		95		1,684
Navios Maritime Acquisition Corp.		1,219		1,646
Radiant Logistics, Inc.*		571		1,622
Aqua Metals, Inc.*		163		1,444
Ampco-Pittsburgh Corp.		129		1,431
Willis Lease Finance Corp.*		59		1,402
Gencor Industries, Inc.*		117		1,402
USA Truck, Inc.*		123		1,260
American Superconductor Corp.*		177		1,241
Handy & Harman Ltd.*		44		926
Power Solutions International, Inc.*		72		738
PAM Transportation Services, Inc.*		35		701
NL Industries, Inc.*		126		495
Total Industrial				3,533,863
Consumer, Cyclical - 8.6%
Tenneco, Inc.*		852		49,645
Jack in the Box, Inc.		494		47,395
American Eagle Outfitters, Inc.		2,518		44,970
Buffalo Wild Wings, Inc.*		286		40,252

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Texas Roadhouse, Inc. — Class A		1,001	$	39,069
Hawaiian Holdings, Inc.*		797		38,735
Cracker Barrel Old Country Store, Inc.		290		38,344
Beacon Roofing Supply, Inc.*		903		37,989
Dana, Inc.		2,253		35,124
TiVo Corp.*		1,771		34,499
Cheesecake Factory, Inc.		687		34,391
Lithia Motors, Inc. — Class A		359		34,293
Wolverine World Wide, Inc.		1,465		33,739
Five Below, Inc.*		809		32,595
Papa John’s International, Inc.		411		32,407
Big Lots, Inc.		674		32,184
Steven Madden Ltd.*		930		32,141
Cooper Tire & Rubber Co.		837		31,823
UniFirst Corp.		229		30,195
Office Depot, Inc.		8,364		29,859
Churchill Downs, Inc.		204		29,856
Bloomin’ Brands, Inc.		1,721		29,670
TRI Pointe Group, Inc.*		2,251		29,669
Interval Leisure Group, Inc.		1,711		29,379
Deckers Outdoor Corp.*		491		29,239
Anixter International, Inc.*		439		28,316
G&K Services, Inc. — Class A		296		28,265
HNI Corp.		686		27,302
Allegiant Travel Co. — Class A		200		26,414
Herman Miller, Inc.		905		25,883
Dorman Products, Inc.*		401		25,624
PriceSmart, Inc.		303		25,379
Marriott Vacations Worldwide Corp.		339		24,855
Core-Mark Holding Company, Inc.		691		24,738
Boyd Gaming Corp.*		1,247		24,666
Liberty TripAdvisor Holdings, Inc. — Class A*		1,097		23,969
Chico’s FAS, Inc.		1,973		23,478
Columbia Sportswear Co.		408		23,150
Children’s Place, Inc.		283		22,602
Dave & Buster’s Entertainment, Inc.*		573		22,450
Cooper-Standard Holding, Inc.*		224		22,131
GNC Holdings, Inc. — Class A		1,037		21,176
DineEquity, Inc.		265		20,985
DSW, Inc. — Class A		1,017		20,827
KB Home		1,261		20,327
Mobile Mini, Inc.		670		20,234
Restoration Hardware Holdings, Inc.*		585		20,229
Group 1 Automotive, Inc.		314		20,058
Meritage Homes Corp.*		578		20,057
SkyWest, Inc.		759		20,045
American Axle & Manufacturing Holdings, Inc.*		1,159		19,958
G-III Apparel Group Ltd.*		650		18,948
HSN, Inc.		473		18,825
Sonic Corp.		711		18,614
La-Z-Boy, Inc.		742		18,223
Steelcase, Inc. — Class A		1,301		18,071
iRobot Corp.*		406		17,856
Fossil Group, Inc.*		634		17,606
Popeyes Louisiana Kitchen, Inc.*		328		17,430
Gentherm, Inc.*		552		17,344
Navistar International Corp.*		748		17,121
Genesco, Inc.*		311		16,937
American Woodmark Corp.*		209		16,839
Asbury Automotive Group, Inc.*		302		16,812
Knoll, Inc.		726		16,589
Callaway Golf Co.		1,425		16,545
Caleres, Inc.		648		16,388
Abercrombie & Fitch Co. — Class A		1,029		16,351
Interface, Inc. — Class A		978		16,323
Belmond Ltd. — Class A*		1,265		16,078
Universal Electronics, Inc.*		214		15,934
Virgin America, Inc.*		293		15,678
Oxford Industries, Inc.		230		15,571
Standard Motor Products, Inc.		325		15,522
MDC Holdings, Inc.		599		15,454
Penn National Gaming, Inc.*		1,126		15,280
Select Comfort Corp.*		701		15,142
BMC Stock Holdings, Inc.*		832		14,751
Ascena Retail Group, Inc.*		2,615		14,618
Finish Line, Inc. — Class A		632		14,587
La Quinta Holdings, Inc.*		1,282		14,333
ClubCorp Holdings, Inc.		972		14,065
Wabash National Corp.*		975		13,884
ScanSource, Inc.*		380		13,870
Meritor, Inc.*		1,243		13,835
Hibbett Sports, Inc.*		346		13,805
National CineMedia, Inc.		930		13,690
SeaWorld Entertainment, Inc.		1,011		13,628
Guess?, Inc.		924		13,500
International Speedway Corp. — Class A		399		13,335
Express, Inc.*		1,124		13,252
Cato Corp. — Class A		386		12,696
Cavco Industries, Inc.*		128		12,678
BJ’s Restaurants, Inc.*		353		12,549
Denny’s Corp.*		1,146		12,251
Carmike Cinemas, Inc.*		364		11,900
Ethan Allen Interiors, Inc.		373		11,664
Tailored Brands, Inc.		738		11,587
Essendant, Inc.		564		11,573
Bob Evans Farms, Inc.		300		11,490
Wesco Aircraft Holdings, Inc.*		841		11,295
DTS, Inc.		264		11,231
Superior Industries International, Inc.		380		11,081
Rush Enterprises, Inc. — Class A*		446		10,918
Installed Building Products, Inc.*		304		10,904
Barnes & Noble, Inc.		955		10,792
Red Rock Resorts, Inc. — Class A		455		10,733
Douglas Dynamics, Inc.		335		10,700
Nautilus, Inc.*		464		10,542
Buckle, Inc.		433		10,405
AMC Entertainment Holdings, Inc. — Class A		327		10,166
Pinnacle Entertainment, Inc.*		822		10,143
Vitamin Shoppe, Inc.*		365		9,800

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Fiesta Restaurant Group, Inc.*		403	$	9,672
Winnebago Industries, Inc.		405		9,546
Red Robin Gourmet Burgers, Inc.*		207		9,303
Crocs, Inc.*		1,114		9,246
Caesars Acquisition Co. — Class A*		719		8,930
Francesca’s Holdings Corp.*		578		8,919
Scientific Games Corp. — Class A*		784		8,836
LGI Homes, Inc.*		234		8,621
EZCORP, Inc. — Class A*		765		8,461
Modine Manufacturing Co.*		712		8,444
M/I Homes, Inc.*		358		8,438
Isle of Capri Casinos, Inc.*		378		8,422
Shake Shack, Inc. — Class A*		238		8,251
Tile Shop Holdings, Inc.*		493		8,159
Taylor Morrison Home Corp. — Class A*		460		8,096
Ollie’s Bargain Outlet Holdings, Inc.*		306		8,020
H&E Equipment Services, Inc.		477		7,995
Motorcar Parts of America, Inc.*		277		7,972
Sonic Automotive, Inc. — Class A		423		7,952
MarineMax, Inc.*		374		7,835
Lumber Liquidators Holdings, Inc.*		398		7,829
WCI Communities, Inc.*		328		7,780
Fox Factory Holding Corp.*		338		7,764
Tower International, Inc.		310		7,471
Kimball International, Inc. — Class B		558		7,221
Regis Corp.*		562		7,053
Marcus Corp.		281		7,036
Biglari Holdings, Inc.*		16		6,976
Unifi, Inc.*		237		6,974
Wingstop, Inc.		238		6,973
Party City Holdco, Inc.*		407		6,968
Chuy’s Holdings, Inc.*		247		6,901
Carrols Restaurant Group, Inc.*		519		6,856
Eros International plc*		447		6,848
Ruth’s Hospitality Group, Inc.		482		6,806
Titan International, Inc.		669		6,770
William Lyon Homes — Class A*		362		6,715
Zoe’s Kitchen, Inc.*		289		6,413
Caesars Entertainment Corp.*		852		6,347
SiteOne Landscape Supply, Inc.*		176		6,324
Veritiv Corp.*		125		6,271
Eldorado Resorts, Inc.*		433		6,088
PetMed Express, Inc.		300		6,084
Libbey, Inc.		332		5,926
Barnes & Noble Education, Inc.*		606		5,799
Shoe Carnival, Inc.		216		5,759
Haverty Furniture Companies, Inc.		282		5,651
Beazer Homes USA, Inc.*		476		5,550
Horizon Global Corp.*		276		5,501
Daktronics, Inc.		555		5,295
Iconix Brand Group, Inc.*		648		5,262
Pier 1 Imports, Inc.		1,224		5,190
Flexsteel Industries, Inc.		98		5,069
Movado Group, Inc.		233		5,005
Century Communities, Inc.*		230		4,947
Zumiez, Inc.*		273		4,914
Culp, Inc.		163		4,853
Fred’s, Inc. — Class A		534		4,838
Del Frisco’s Restaurant Group, Inc.*		358		4,822
Spartan Motors, Inc.		503		4,819
Sequential Brands Group, Inc.*		594		4,752
Planet Fitness, Inc. — Class A*		236		4,737
Vera Bradley, Inc.*		307		4,651
PC Connection, Inc.		172		4,544
Potbelly Corp.*		360		4,475
Federal-Mogul Holdings Corp.*		464		4,459
Citi Trends, Inc.		218		4,345
America’s Car-Mart, Inc.*		119		4,330
Hooker Furniture Corp.		172		4,212
Del Taco Restaurants, Inc.*		350		4,172
Sportsman’s Warehouse Holdings, Inc.*		390		4,103
Malibu Boats, Inc. — Class A*		273		4,068
Tuesday Morning Corp.*		679		4,060
Monarch Casino & Resort, Inc.*		161		4,052
NACCO Industries, Inc. — Class A		59		4,010
Intrawest Resorts Holdings, Inc.*		244		3,958
PICO Holdings, Inc.*		331		3,902
El Pollo Loco Holdings, Inc.*		307		3,865
Duluth Holdings, Inc. — Class B*		145		3,844
Miller Industries, Inc.		167		3,806
Supreme Industries, Inc. — Class A		196		3,783
Perry Ellis International, Inc.*		190		3,663
Big 5 Sporting Goods Corp.		268		3,650
Bassett Furniture Industries, Inc.		156		3,627
Metaldyne Performance Group, Inc.		227		3,598
Winmark Corp.		34		3,588
Reading International, Inc. — Class A*		254		3,391
Conn’s, Inc.*		307		3,168
Speedway Motorsports, Inc.		177		3,161
Hovnanian Enterprises, Inc. — Class A*		1,842		3,113
AV Homes, Inc.*		185		3,078
Arctic Cat, Inc.		198		3,067
Stein Mart, Inc.		471		2,991
Freshpet, Inc.*		338		2,924
Green Brick Partners, Inc.*		351		2,899
Habit Restaurants, Inc. — Class A*		203		2,842
Kirkland’s, Inc.*		223		2,716
Johnson Outdoors, Inc. — Class A		74		2,691
Weyco Group, Inc.		98		2,633
Rush Enterprises, Inc. — Class B*		100		2,431
Nathan’s Famous, Inc.*		46		2,417
GMS, Inc.*		108		2,401
Superior Uniform Group, Inc.		121		2,395
Destination XL Group, Inc.*		549		2,377
Bojangles’, Inc.*		148		2,362
Performance Sports Group Ltd.*		578		2,347
West Marine, Inc.*		279		2,307
Boot Barn Holdings, Inc.*		202		2,299
Titan Machinery, Inc.*		218		2,267
Lifetime Brands, Inc.		167		2,248
Ruby Tuesday, Inc.*		898		2,245
Century Casinos, Inc.*		323		2,232

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Stage Stores, Inc.		388	$	2,177
Build-A-Bear Workshop, Inc. — Class A*		205		2,124
Jamba, Inc.*		193		2,108
New Home Company, Inc.*		192		2,049
J Alexander’s Holdings, Inc.*		202		2,046
Escalade, Inc.		159		2,029
Lindblad Expeditions Holdings, Inc.*		223		2,007
JAKKS Pacific, Inc.*		232		2,004
Sears Holdings Corp.*		170		1,948
Golden Entertainment, Inc.		156		1,945
Strattec Security Corp.		53		1,871
Vince Holding Corp.*		326		1,839
Red Lion Hotels Corp.*		215		1,793
Delta Apparel, Inc.*		108		1,778
Tilly’s, Inc. — Class A*		176		1,653
Kona Grill, Inc.*		118		1,483
Marine Products Corp.		163		1,462
Systemax, Inc.		174		1,378
MCBC Holdings, Inc.		117		1,334
Luby’s, Inc.*		294		1,261
Workhorse Group, Inc.*		173		1,253
Unique Fabricating, Inc.		100		1,224
Container Store Group, Inc.*		241		1,210
Blue Bird Corp.*		81		1,183
UCP, Inc. — Class A*		122		1,075
Empire Resorts, Inc.*		50		1,012
Sears Hometown and Outlet Stores, Inc.*		170		838
Noodles & Co.*		167		795
Fogo De Chao, Inc.*		75		793
Gaia, Inc.*		104		749
CompX International, Inc.		24		278
Total Consumer, Cyclical				3,001,053
Technology - 8.5%
Microsemi Corp.*		1,722		72,290
Advanced Micro Devices, Inc.*		9,874		68,229
Aspen Technology, Inc.*		1,250		58,487
Fair Isaac Corp.		469		58,432
Take-Two Interactive Software, Inc.*		1,258		56,711
Cavium, Inc.*		974		56,687
MAXIMUS, Inc.		970		54,863
EPAM Systems, Inc.*		728		50,458
SYNNEX Corp.		442		50,437
Cirrus Logic, Inc.*		947		50,333
j2 Global, Inc.		712		47,427
Monolithic Power Systems, Inc.		589		47,415
Blackbaud, Inc.		713		47,299
Integrated Device Technology, Inc.*		2,038		47,078
Medidata Solutions, Inc.*		831		46,336
Proofpoint, Inc.*		617		46,183
Intersil Corp. — Class A		2,031		44,540
Science Applications International Corp.		640		44,397
Mentor Graphics Corp.		1,620		42,833
Convergys Corp.		1,344		40,885
MKS Instruments, Inc.		804		39,984
NetScout Systems, Inc.*		1,354		39,605
Entegris, Inc.*		2,138		37,244
CACI International, Inc. — Class A*		368		37,131
Silicon Laboratories, Inc.*		624		36,691
Ambarella, Inc.*		484		35,627
FleetMatics Group plc*		593		35,569
Verint Systems, Inc.*		938		35,297
Cornerstone OnDemand, Inc.*		761		34,968
Electronics for Imaging, Inc.*		711		34,783
ACI Worldwide, Inc.*		1,744		33,799
Paycom Software, Inc.*		666		33,387
Lumentum Holdings, Inc.*		763		31,870
Acxiom Corp.*		1,172		31,234
Synaptics, Inc.*		531		31,106
CommVault Systems, Inc.*		585		31,081
3D Systems Corp.*		1,622		29,115
Tessera Technologies, Inc.		744		28,599
Semtech Corp.*		977		27,092
Inphi Corp.*		608		26,454
Power Integrations, Inc.		415		26,157
Synchronoss Technologies, Inc.*		624		25,696
Diebold, Inc.		1,034		25,632
HubSpot, Inc.*		436		25,122
ExlService Holdings, Inc.*		492		24,521
MicroStrategy, Inc. — Class A*		144		24,111
Imperva, Inc.*		434		23,310
Envestnet, Inc.*		627		22,854
Ebix, Inc.		381		21,660
2U, Inc.*		555		21,251
RealPage, Inc.*		816		20,971
BroadSoft, Inc.*		445		20,715
Omnicell, Inc.*		538		20,605
Progress Software Corp.		757		20,590
Rambus, Inc.*		1,644		20,550
Syntel, Inc.*		488		20,452
CSG Systems International, Inc.		485		20,045
Cabot Microelectronics Corp.		356		18,836
SPS Commerce, Inc.*		251		18,426
Insight Enterprises, Inc.*		555		18,065
Stratasys Ltd.*		741		17,851
MaxLinear, Inc. — Class A*		844		17,108
Sykes Enterprises, Inc.*		585		16,456
Globant S.A.*		389		16,385
Interactive Intelligence Group, Inc.*		272		16,358
Pegasystems, Inc.		546		16,102
Qualys, Inc.*		411		15,696
Callidus Software, Inc.*		840		15,414
MACOM Technology Solutions Holdings, Inc.*		352		14,904
Amkor Technology, Inc.*		1,513		14,706
Mercury Systems, Inc.*		589		14,472
Cvent, Inc.*		456		14,460
Cray, Inc.*		609		14,336
Bottomline Technologies de, Inc.*		608		14,172
ManTech International Corp. — Class A		374		14,096
Brooks Automation, Inc.		1,027		13,977
Pure Storage, Inc. — Class A*		1,030		13,956
Super Micro Computer, Inc.*		585		13,671

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Monotype Imaging Holdings, Inc.		614	$	13,576
Press Ganey Holdings, Inc.*		335		13,534
New Relic, Inc.*		332		12,722
inContact, Inc.*		887		12,400
Diodes, Inc.*		576		12,292
Veeco Instruments, Inc.*		601		11,798
Lattice Semiconductor Corp.*		1,813		11,766
MTS Systems Corp.		253		11,646
FormFactor, Inc.*		1,039		11,273
CEVA, Inc.*		298		10,451
Virtusa Corp.*		418		10,316
Photronics, Inc.*		986		10,166
InvenSense, Inc. — Class A*		1,236		9,171
Quality Systems, Inc.		772		8,739
PROS Holdings, Inc.*		381		8,614
Engility Holdings, Inc.*		273		8,599
Barracuda Networks, Inc.*		333		8,485
Nimble Storage, Inc.*		951		8,397
Silver Spring Networks, Inc.*		573		8,125
Rudolph Technologies, Inc.*		453		8,036
Nanometrics, Inc.*		358		7,998
Applied Micro Circuits Corp.*		1,147		7,972
Five9, Inc.*		500		7,840
Benefitfocus, Inc.*		195		7,784
Ultratech, Inc.*		327		7,547
PDF Solutions, Inc.*		409		7,432
Unisys Corp.*		759		7,393
TeleTech Holdings, Inc.		248		7,190
Actua Corp.*		544		7,045
LivePerson, Inc.*		805		6,770
Vocera Communications, Inc.*		374		6,321
Workiva, Inc.*		332		6,019
KEYW Holding Corp.*		543		5,995
Alpha & Omega Semiconductor Ltd.*		275		5,973
Brightcove, Inc.*		453		5,912
Axcelis Technologies, Inc.*		441		5,856
Exar Corp.*		617		5,744
Evolent Health, Inc. — Class A*		230		5,663
Digimarc Corp.*		146		5,599
InnerWorkings, Inc.*		581		5,473
Hortonworks, Inc.*		610		5,094
Xactly Corp.*		345		5,078
Varonis Systems, Inc.*		162		4,876
Xcerra Corp.*		799		4,842
Epiq Systems, Inc.		287		4,733
Sapiens International Corporation N.V.		367		4,687
Cohu, Inc.		399		4,684
IXYS Corp.		380		4,579
Digi International, Inc.*		392		4,469
Computer Programs & Systems, Inc.		169		4,404
American Software, Inc. — Class A		390		4,329
MINDBODY, Inc. — Class A*		218		4,286
Sigma Designs, Inc.*		542		4,222
Silicon Graphics International Corp.*		548		4,220
Carbonite, Inc.*		269		4,132
Apigee Corp.*		233		4,054
Instructure, Inc.*		159		4,034
DSP Group, Inc.*		326		3,915
Eastman Kodak Co.*		258		3,870
Avid Technology, Inc.*		486		3,859
Model N, Inc.*		336		3,733
Jive Software, Inc.*		872		3,715
Mitek Systems, Inc.*		445		3,689
Ultra Clean Holdings, Inc.*		485		3,594
Immersion Corp.*		438		3,574
Glu Mobile, Inc.*		1,555		3,483
Tangoe, Inc.*		418		3,449
pdvWireless, Inc.*		148		3,389
Exa Corp.*		210		3,371
Everyday Health, Inc.*		428		3,291
Datalink Corp.*		304		3,225
QAD, Inc. — Class A		142		3,178
TubeMogul, Inc.*		333		3,120
USA Technologies, Inc.*		542		3,037
Radisys Corp.*		539		2,881
Amber Road, Inc.*		268		2,586
Agilysys, Inc.*		229		2,546
Castlight Health, Inc. — Class B*		610		2,538
ExOne Co.*		165		2,511
Rosetta Stone, Inc.*		292		2,476
Maxwell Technologies, Inc.*		476		2,456
Planet Payment, Inc.*		640		2,374
Park City Group, Inc.*		195		2,301
EMCORE Corp.		395		2,252
Appfolio, Inc. — Class A*		114		2,216
Guidance Software, Inc.*		342		2,038
Kopin Corp.*		931		2,030
GigPeak, Inc.*		828		1,946
MobileIron, Inc.*		703		1,933
Cogint, Inc.*		230		1,171
SecureWorks Corp. — Class A*		92		1,151
NCI, Inc. — Class A		91		1,053
Majesco*		89		453
Total Technology				2,934,404
Communications - 5.0%
GrubHub, Inc.*		1,221		52,490
ViaSat, Inc.*		672		50,166
Finisar Corp.*		1,625		48,426
Ciena Corp.*		2,076		45,257
InterDigital, Inc.		524		41,501
Zendesk, Inc.*		1,227		37,681
LogMeIn, Inc.		381		34,439
Media General, Inc.*		1,649		30,391
NETGEAR, Inc.*		490		29,640
Meredith Corp.		568		29,530
Sinclair Broadcast Group, Inc. — Class A		999		28,851
WebMD Health Corp. — Class A*		565		28,081
Gigamon, Inc.*		491		26,907
DigitalGlobe, Inc.*		954		26,235
Viavi Solutions, Inc.*		3,546		26,205
Plantronics, Inc.		502		26,084

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Nexstar Broadcasting Group, Inc. — Class A		451	$	26,027
Houghton Mifflin Harcourt Co.*		1,875		25,144
Shutterfly, Inc.*		523		23,348
Stamps.com, Inc.*		245		23,155
Cogent Communications Holdings, Inc.		629		23,154
Etsy, Inc.*		1,587		22,662
NIC, Inc.		959		22,537
Time, Inc.		1,553		22,487
New York Times Co. — Class A		1,881		22,478
Infoblox, Inc.*		851		22,441
comScore, Inc.*		721		22,106
NeuStar, Inc. — Class A*		818		21,751
Ubiquiti Networks, Inc.*		392		20,972
RingCentral, Inc. — Class A*		885		20,939
Gannett Company, Inc.		1,777		20,684
8x8, Inc.*		1,333		20,568
Liberty Media Corporation-Liberty Media — Class C*		698		19,642
Infinera Corp.*		2,124		19,180
Vonage Holdings Corp.*		2,888		19,090
Shenandoah Telecommunications Co.		700		19,047
Consolidated Communications Holdings, Inc.		750		18,930
Wayfair, Inc. — Class A*		477		18,779
Shutterstock, Inc.*		287		18,282
MSG Networks, Inc. — Class A*		899		16,730
Scholastic Corp.		409		16,098
Windstream Holdings, Inc.		1,451		14,583
West Corp.		654		14,440
EW Scripps Co. — Class A*		900		14,310
ADTRAN, Inc.		742		14,202
Cincinnati Bell, Inc.*		3,180		12,974
AVG Technologies N.V.*		517		12,930
Quotient Technology, Inc.*		968		12,884
Oclaro, Inc.*		1,486		12,705
Ixia*		970		12,125
World Wrestling Entertainment, Inc. — Class A		547		11,651
Box, Inc. — Class A*		737		11,615
Web.com Group, Inc.*		643		11,105
Q2 Holdings, Inc.*		387		11,091
Perficient, Inc.*		533		10,740
HealthStream, Inc.*		389		10,736
ATN International, Inc.		159		10,341
Iridium Communications, Inc.*		1,246		10,105
Gray Television, Inc.*		969		10,039
ORBCOMM, Inc.*		977		10,014
Liberty Media Corporation-Liberty Media — Class A*		346		9,913
EarthLink Holdings Corp.		1,588		9,846
GTT Communications, Inc.*		399		9,388
Gogo, Inc.*		850		9,384
New Media Investment Group, Inc.		587		9,099
ePlus, Inc.*		96		9,063
Chegg, Inc.*		1,216		8,621
MDC Partners, Inc. — Class A		774		8,297
Liberty Media Corporation-Liberty Braves — Class C*		476		8,273
Acacia Communications, Inc.*		79		8,159
ShoreTel, Inc.*		1,017		8,136
VASCO Data Security International, Inc.*		456		8,030
Inteliquent, Inc.		493		7,957
Endurance International Group Holdings, Inc.*		906		7,928
TrueCar, Inc.*		821		7,750
Loral Space & Communications, Inc.*		195		7,626
NeoPhotonics Corp.*		466		7,614
CalAmp Corp.*		541		7,547
Entravision Communications Corp. — Class A		983		7,500
XO Group, Inc.*		384		7,423
Bazaarvoice, Inc.*		1,241		7,334
A10 Networks, Inc.*		667		7,130
Extreme Networks, Inc.*		1,562		7,013
Harmonic, Inc.*		1,156		6,855
Globalstar, Inc.*		5,638		6,822
tronc, Inc.*		403		6,803
Blucora, Inc.*		593		6,642
Intralinks Holdings, Inc.*		626		6,298
Bankrate, Inc.*		716		6,072
General Communication, Inc. — Class A*		438		6,023
DHI Group, Inc.*		758		5,981
Angie’s List, Inc.*		601		5,956
Global Eagle Entertainment, Inc.*		708		5,883
RetailMeNot, Inc.*		583		5,766
Blue Nile, Inc.		167		5,748
Sonus Networks, Inc.*		721		5,609
Boingo Wireless, Inc.*		539		5,541
Spok Holdings, Inc.		310		5,524
FTD Companies, Inc.*		264		5,430
Rapid7, Inc.*		301		5,313
Entercom Communications Corp. — Class A		393		5,085
FairPoint Communications, Inc.*		321		4,825
Rubicon Project, Inc.*		563		4,662
Calix, Inc.*		624		4,586
ChannelAdvisor Corp.*		351		4,538
IDT Corp. — Class B		262		4,517
Lionbridge Technologies, Inc.*		862		4,310
Liquidity Services, Inc.*		377		4,237
Lumos Networks Corp.*		286		4,004
MeetMe, Inc.*		624		3,869
Daily Journal Corp.*		17		3,723
Straight Path Communications, Inc. — Class B*		145		3,713
Comtech Telecommunications Corp.		286		3,664
1-800-Flowers.com, Inc. — Class A*		394		3,613
Silicom Ltd.		85		3,519
Zix Corp.*		804		3,296
Lands’ End, Inc.*		226		3,277
Clearfield, Inc.*		173		3,252

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Black Box Corp.		227	$	3,155
Overstock.com, Inc.*		200		3,064
RigNet, Inc.*		191		2,888
Telenav, Inc.*		493		2,825
HC2 Holdings, Inc.*		505		2,752
Reis, Inc.		132		2,701
NII Holdings, Inc.*		809		2,694
Central European Media Enterprises Ltd. — Class A*		1,155		2,668
Saga Communications, Inc. — Class A		55		2,494
Liberty Media Corporation-Liberty Braves — Class A*		138		2,408
Autobytel, Inc.*		132		2,350
VirnetX Holding Corp.*		731		2,237
Aerohive Networks, Inc.*		362		2,205
Hawaiian Telcom Holdco, Inc.*		91		2,037
KVH Industries, Inc.*		228		2,009
Limelight Networks, Inc.*		1,072		2,005
TechTarget, Inc.*		239		1,926
QuinStreet, Inc.*		554		1,673
Numerex Corp. — Class A*		209		1,626
Preformed Line Products Co.		38		1,602
Rightside Group Ltd.*		176		1,602
RealNetworks, Inc.*		355		1,583
Marchex, Inc. — Class B*		505		1,399
Intelsat S.A.*		478		1,295
Townsquare Media, Inc. — Class A*		131		1,224
Radio One, Inc. — Class D*		373		1,130
Global Sources Ltd.*		124		1,052
Hemisphere Media Group, Inc.*		81		1,033
Salem Media Group, Inc. — Class A		167		982
Corindus Vascular Robotics, Inc.*		830		921
Value Line, Inc.		17		276
Total Communications				1,740,508
Basic Materials - 3.1%
Olin Corp.		2,504		51,382
Sensient Technologies Corp.		674		51,089
US Silica Holdings, Inc.		967		45,023
Chemours Co.		2,770		44,320
PolyOne Corp.		1,268		42,871
Minerals Technologies, Inc.		524		37,042
Balchem Corp.		476		36,904
HB Fuller Co.		757		35,178
Hecla Mining Co.		5,769		32,883
Worthington Industries, Inc.		681		32,707
Chemtura Corp.*		963		31,596
GCP Applied Technologies, Inc.*		1,072		30,359
Ingevity Corp.*		644		29,688
Allegheny Technologies, Inc.		1,641		29,652
Coeur Mining, Inc.*		2,448		28,960
Carpenter Technology Corp.		699		28,841
Commercial Metals Co.		1,737		28,122
Stillwater Mining Co.*		1,848		24,689
Kaiser Aluminum Corp.		268		23,180
Innospec, Inc.		357		21,709
Stepan Co.		297		21,580
Quaker Chemical Corp.		196		20,762
Neenah Paper, Inc.		251		19,832
Cliffs Natural Resources, Inc.*		3,334		19,504
Schweitzer-Mauduit International, Inc.		458		17,660
Ferro Corp.*		1,258		17,373
AK Steel Holding Corp.*		3,585		17,316
Clearwater Paper Corp.*		256		16,556
Kraton Corp.*		448		15,698
PH Glatfelter Co.		658		14,265
Univar, Inc.*		650		14,202
A. Schulman, Inc.		435		12,667
Calgon Carbon Corp.		761		11,545
Innophos Holdings, Inc.		292		11,397
Deltic Timber Corp.		161		10,905
Fairmount Santrol Holdings, Inc.*		1,179		9,998
Koppers Holdings, Inc.*		308		9,911
Materion Corp.		301		9,244
Tronox Ltd. — Class A		974		9,126
Ferroglobe plc		988		8,922
Rayonier Advanced Materials, Inc.		651		8,704
Aceto Corp.		440		8,356
Schnitzer Steel Industries, Inc. — Class A		395		8,256
CSW Industrials, Inc.*		218		7,061
American Vanguard Corp.		427		6,858
Hawkins, Inc.		145		6,283
Gold Resource Corp.		755		5,602
Landec Corp.*		405		5,431
OMNOVA Solutions, Inc.*		642		5,418
Century Aluminum Co.*		754		5,240
KMG Chemicals, Inc.		136		3,853
Orchids Paper Products Co.		137		3,731
Oil-Dri Corporation of America		75		2,823
Kronos Worldwide, Inc.		333		2,761
Codexis, Inc.*		506		2,247
Ryerson Holding Corp.*		191		2,156
United States Lime & Minerals, Inc.		30		1,980
AgroFresh Solutions, Inc.*		333		1,762
ALJ Regional Holdings, Inc.*		280		1,316
Valhi, Inc.		380		874
Total Basic Materials				1,065,370
Utilities - 2.8%
IDACORP, Inc.		764		59,805
Portland General Electric Co.		1,353		57,624
Southwest Gas Corp.		715		49,951
ONE Gas, Inc.		787		48,668
WGL Holdings, Inc.		763		47,840
Black Hills Corp.		780		47,751
ALLETE, Inc.		750		44,715
Spire, Inc.		676		43,088
New Jersey Resources Corp.		1,297		42,619
NorthWestern Corp.		735		42,285
Avista Corp.		957		39,993
PNM Resources, Inc.		1,209		39,558
South Jersey Industries, Inc.		1,207		35,667
MGE Energy, Inc.		529		29,894

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
El Paso Electric Co.		611	$	28,576
Ormat Technologies, Inc.		588		28,465
Northwest Natural Gas Co.		411		24,705
California Water Service Group		726		23,297
Empire District Electric Co.		668		22,806
American States Water Co.		553		22,148
Dynegy, Inc.*		1,767		21,893
Otter Tail Corp.		574		19,855
Talen Energy Corp.*		1,274		17,645
Atlantica Yield plc		889		16,900
NRG Yield, Inc. — Class C		959		16,265
Chesapeake Utilities Corp.		222		13,555
SJW Corp.		247		10,789
NRG Yield, Inc. — Class A		528		8,617
Middlesex Water Co.		240		8,458
Unitil Corp.		210		8,203
Connecticut Water Service, Inc.		164		8,156
York Water Co.		195		5,784
Atlantic Power Corp.		1,843		4,552
Artesian Resources Corp. — Class A		117		3,339
Consolidated Water Company Ltd.		220		2,556
Delta Natural Gas Company, Inc.		103		2,457
EnerNOC, Inc.*		405		2,191
Spark Energy, Inc. — Class A		74		2,156
Ameresco, Inc. — Class A*		321		1,688
Genie Energy Ltd. — Class B*		195		1,151
Global Water Resources, Inc.		124		993
Total Utilities				956,658
Energy - 2.4%
PDC Energy, Inc.*		692		46,407
RSP Permian, Inc.*		1,189		46,110
NOW, Inc.*		1,618		34,674
Carrizo Oil & Gas, Inc.*		843		34,243
Western Refining, Inc.		1,219		32,255
Oasis Petroleum, Inc.*		2,690		30,854
Matador Resources Co.*		1,255		30,547
Callon Petroleum Co.*		1,822		28,605
SemGroup Corp. — Class A		800		28,288
Oil States International, Inc.*		773		24,403
MRC Global, Inc.*		1,417		23,281
Pattern Energy Group, Inc.		1,002		22,535
Synergy Resources Corp.*		2,809		19,466
TerraForm Power, Inc. — Class A*		1,322		18,389
McDermott International, Inc.*		3,653		18,302
Forum Energy Technologies, Inc.*		907		18,012
Denbury Resources, Inc.*		5,315		17,167
Delek US Holdings, Inc.		931		16,097
SEACOR Holdings, Inc.*		241		14,337
Green Plains, Inc.		547		14,331
Unit Corp.*		764		14,209
Archrock, Inc.		1,051		13,747
Seadrill Ltd.*		5,715		13,545
Helix Energy Solutions Group, Inc.*		1,522		12,374
Flotek Industries, Inc.*		827		12,024
Thermon Group Holdings, Inc.*		484		9,558
Newpark Resources, Inc.*		1,253		9,222
TETRA Technologies, Inc.*		1,365		8,340
Atwood Oceanics, Inc.		920		7,995
SunCoke Energy, Inc.*		974		7,811
Clayton Williams Energy, Inc.*		90		7,690
Cobalt International Energy, Inc.*		6,168		7,648
Matrix Service Co.*		402		7,542
Exterran Corp.*		479		7,511
Sanchez Energy Corp.*		844		7,461
REX American Resources Corp.*		86		7,289
Bristow Group, Inc.		508		7,122
Par Pacific Holdings, Inc.*		465		6,082
Sunrun, Inc.*		955		6,017
California Resources Corp.*		479		5,988
Ring Energy, Inc.*		541		5,924
Clean Energy Fuels Corp.*		1,325		5,923
Tesco Corp.		699		5,704
TerraForm Global, Inc. — Class A		1,381		5,676
Renewable Energy Group, Inc.*		579		4,904
Plug Power, Inc.*		2,729		4,667
Natural Gas Services Group, Inc.*		186		4,574
FutureFuel Corp.		377		4,253
Bill Barrett Corp.*		740		4,114
Panhandle Oil and Gas, Inc. — Class A		232		4,067
Parker Drilling Co.*		1,827		3,965
Pioneer Energy Services Corp.*		964		3,895
Alon USA Energy, Inc.		477		3,845
Geospace Technologies Corp.*		197		3,838
Trecora Resources*		300		3,426
Contango Oil & Gas Co.*		331		3,383
CVR Energy, Inc.		239		3,291
CARBO Ceramics, Inc.		294		3,216
PHI, Inc.*		177		3,216
Abraxas Petroleum Corp.*		1,867		3,155
Pacific Ethanol, Inc.*		434		2,999
Eclipse Resources Corp.*		861		2,833
EP Energy Corp. — Class A*		585		2,562
Westmoreland Coal Co.*		279		2,472
Era Group, Inc.*		296		2,383
Independence Contract Drilling, Inc.*		453		2,378
FuelCell Energy, Inc.*		434		2,352
Dawson Geophysical Co.*		305		2,327
Evolution Petroleum Corp.		369		2,317
EXCO Resources, Inc.*		2,117		2,265
Northern Oil and Gas, Inc.*		707		1,895
Jones Energy, Inc. — Class A*		448		1,595
Adams Resources & Energy, Inc.		32		1,258
Willbros Group, Inc.*		654		1,230
Vivint Solar, Inc.*		344		1,087
W&T Offshore, Inc.*		538		947
Isramco, Inc.*		11		917
Erin Energy Corp.*		219		515
Earthstone Energy, Inc.*		31		267
Total Energy				817,113

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
RUSSELL 2000® FUND

	Shares		Value
Diversified - 0.1%
HRG Group, Inc.*		1,794	$	28,166
Wins Finance Holdings, Inc.*		21		621
Total Diversified				28,787
Government - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		458		12,906
Health Care - 0.0%
Integer Holdings Corp.*		462		10,021
Aptevo Therapeutics, Inc.*		246		630
Total Health Care				10,651
Total Common Stocks
(Cost $23,706,932)				26,293,800
RIGHTS††† - 0.0%
Omthera Pharmaceuticals, Inc.
Expires 12/31/20		86		—
Leap Wireless International, Inc.
Expires 03/06/17		1,211		—
Dyax Corp.
Expires 01/25/17		757		—
Total Rights
(Cost $1,618)				—
	Face Amount
FEDERAL AGENCY NOTES†† - 8.6%
Federal Farm Credit Bank5
0.67% due 09/12/181	$	3,000,000		2,997,672
Total Federal Agency Notes
(Cost $2,999,412)				2,997,672
REPURCHASE AGREEMENTS††,2 - 27.7%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		5,132,264		5,132,264
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/163		4,495,350		4,495,350
Total Repurchase Agreements
(Cost $9,627,614)				9,627,614
Total Investments - 112.1%
(Cost $36,335,576)			$	38,919,086
Other Assets & Liabilities, net - (12.1)%				(4,204,832	)
Total Net Assets - 100.0%			$	34,714,254

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $2,743,400)		22	$	36,008
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 Russell 2000 Index Swap 0.13%4, Terminating 11/01/16 (Notional Value $3,048,114)		2,435	$	33,882
Goldman Sachs International October 2016 Russell 2000 Index Swap 0.30%4, Terminating 10/26/16 (Notional Value $811,396)		648		7,452
Barclays Bank plc October 2016 Russell 2000 Index Swap 0.30%4, Terminating 10/31/16 (Notional Value $1,830,251)		1,462		(5,203	)
(Total Notional Value $5,689,761)			$	36,131

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
RUSSELL 2000® FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Variable rate security. Rate indicated is rate effective at September 30, 2016.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
4	Total Return based on Russell 2000 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
5	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	26,293,800	$	—	$	—	$	—	$	—	$	26,293,800
Equity Futures Contracts		—		36,008		—		—		—		36,008
Equity Index Swap Agreements		—		—		—		41,334		—		41,334
Federal Agency Notes		—		—		2,997,672		—		—		2,997,672
Repurchase Agreements		—		—		9,627,614		—		—		9,627,614
Rights		—		—		—		—		—		—
Total	$	26,293,800	$	36,008	$	12,625,286	$	41,334	$	—	$	38,996,428
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	5,203	$	—	$	5,203

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $26,707,962)	$	29,291,472
Repurchase agreements, at value (cost $9,627,614)		9,627,614
Total investments (cost $36,335,576)		38,919,086
Segregated cash with broker		659,800
Unrealized appreciation on swap agreements		41,334
Cash		513
Receivables:
Variation margin		23,760
Fund shares sold		43,710
Dividends		25,432
Interest		1,160
Total assets		39,714,795
Liabilities:
Unrealized depreciation on swap agreements		5,203
Payable for:
Securities purchased		4,906,687
Fund shares redeemed		28,730
Management fees		22,740
Distribution and service fees		9,495
Transfer agent and administrative fees		7,580
Swap settlement		5,712
Portfolio accounting fees		4,548
Miscellaneous		9,846
Total liabilities		5,000,541
Commitments and contingent liabilities (Note 13)		—
Net assets	$	34,714,254
Net assets consist of:
Paid in capital	$	33,354,337
Accumulated net investment loss		(227,874	)
Accumulated net realized loss on investments		(1,067,858	)
Net unrealized appreciation on investments		2,655,649
Net assets	$	34,714,254
A-Class:
Net assets	$	12,610,836
Capital shares outstanding		335,106
Net asset value per share	$	37.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	39.51
C-Class:
Net assets	$	3,015,064
Capital shares outstanding		87,685
Net asset value per share	$	34.39
H-Class:
Net assets	$	19,088,354
Capital shares outstanding		508,532
Net asset value per share	$	37.54

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

RUSSELL 2000^® FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $91)	$	143,885
Interest		18,185
Other income		87
Total investment income		162,157
Expenses:
Management fees		132,571
Transfer agent and administrative fees		44,191
Distribution and service fees:
A-Class		17,067
C-Class		14,963
H-Class		23,385
Portfolio accounting fees		26,515
Custodian fees		2,075
Trustees’ fees*		1,599
Line of credit fees		134
Miscellaneous		34,437
Total expenses		296,937
Net investment loss		(134,780	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	544,164
Swap agreements		1,217,787
Futures contracts		383,050
Net realized gain		2,145,001
Net change in unrealized appreciation (depreciation) on:
Investments		1,467,408
Swap agreements		(188,214	)
Futures contracts		(5,303	)
Net change in unrealized appreciation (depreciation)		1,273,891
Net realized and unrealized gain		3,418,892
Net increase in net assets resulting from operations	$	3,284,112

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

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

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(134,780	)	$	(353,047	)
Net realized gain (loss) on investments		2,145,001			(2,172,044	)
Net change in unrealized appreciation (depreciation) on investments		1,273,891			771,104
Net increase (decrease) in net assets resulting from operations		3,284,112			(1,753,987	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(378,494	)
C-Class		—			(84,593	)
H-Class		—			(279,804	)
Total distributions to shareholders		—			(742,891	)
Capital share transactions:
Proceeds from sale of shares
A-Class		16,350,794			44,154,351
C-Class		2,089,446			14,311,898
H-Class		110,006,453			344,016,927
Distributions reinvested
A-Class		—			344,126
C-Class		—			76,580
H-Class		—			275,570
Cost of shares redeemed
A-Class		(17,376,842	)		(44,563,233	)
C-Class		(2,183,479	)		(15,370,265	)
H-Class		(138,460,846	)		(325,825,130	)
Net increase (decrease) from capital share transactions		(29,574,474	)		17,420,824
Net increase (decrease) in net assets		(26,290,362	)		14,923,946
Net assets:
Beginning of period		61,004,616			46,080,670
End of period	$	34,714,254		$	61,004,616
Accumulated net investment loss at end of period	$	(227,874	)	$	(93,094	)
Capital share activity:
Shares sold
A-Class		456,054			1,257,318
C-Class		64,588			422,747
H-Class		3,181,963			9,826,186
Shares issued from reinvestment of distributions
A-Class		—			9,852
C-Class		—			2,386
H-Class		—			7,908
Shares redeemed
A-Class		(478,301	)		(1,267,797	)
C-Class		(66,587	)		(453,761	)
H-Class		(4,054,986	)		(9,171,878	)
Net increase (decrease) in shares		(897,269	)		632,961

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	33.56		$	38.88		$	37.80		$	32.26		$	28.20		$	28.54
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.29	)		(.25	)		(.27	)		(.13	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		4.19			(4.12	)		2.61			7.54			4.19			(.11	)
Total from investment operations		4.07			(4.41	)		2.36			7.27			4.06			(.34	)
Less distributions from:
Net realized gains		—			(.91	)		(1.28	)		(1.73	)		—			—
Total distributions		—			(.91	)		(1.28	)		(1.73	)		—			—
Net asset value, end of period	$	37.63		$	33.56		$	38.88		$	37.80		$	32.26		$	28.20
Total Returnc		12.13	%		(11.43	%)		6.42	%		22.87	%		14.40	%		(1.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,611		$	11,993		$	13,920		$	3,219		$	3,723		$	670
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.83	%)		(0.67	%)		(0.77	%)		(0.44	%)		(0.89	%)
Total expenses		1.61	%		1.59	%		1.57	%		1.60	%		1.55	%		1.58	%
Portfolio turnover rate		200	%		442	%		947	%		267	%		160	%		121	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	30.78		$	36.00		$	35.36		$	30.54		$	26.90		$	27.46
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.51	)		(.60	)		(.48	)		(.31	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		3.84			(3.80	)		2.52			7.03			3.95			(.10	)
Total from investment operations		3.61			(4.31	)		1.92			6.55			3.64			(.56	)
Less distributions from:
Net realized gains		—			(.91	)		(1.28	)		(1.73	)		—			—
Total distributions		—			(.91	)		(1.28	)		(1.73	)		—			—
Net asset value, end of period	$	34.39		$	30.78		$	36.00		$	35.36		$	30.54		$	26.90
Total Returnc		11.70	%		(12.07	%)		5.61	%		21.78	%		13.53	%		(2.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,015		$	2,760		$	4,259		$	3,245		$	2,599		$	6,285
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.56	%)		(1.77	%)		(1.47	%)		(1.19	%)		(1.83	%)
Total expenses		2.36	%		2.35	%		2.57	%		2.37	%		2.31	%		2.34	%
Portfolio turnover rate		200	%		442	%		947	%		267	%		160	%		121	%

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	33.48		$	38.79		$	37.73		$	32.25		$	28.16		$	28.52
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.35	)		(.28	)		(.27	)		(.12	)		(.22	)
Net gain (loss) on investments (realized and unrealized)		4.19			(4.05	)		2.62			7.48			4.21			(.14	)
Total from investment operations		4.06			(4.40	)		2.34			7.21			4.09			(.36	)
Less distributions from:
Net realized gains		—			(.91	)		(1.28	)		(1.73	)		—			—
Total distributions		—			(.91	)		(1.28	)		(1.73	)		—			—
Net asset value, end of period	$	37.54		$	33.48		$	38.79		$	37.73		$	32.25		$	28.16
Total Returnc		12.10	%		(11.43	%)		6.37	%		22.69	%		14.52	%		(1.26	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,088		$	46,251		$	27,902		$	44,185		$	101,053		$	63,447
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.97	%)		(0.77	%)		(0.78	%)		(0.42	%)		(0.83	%)
Total expenses		1.61	%		1.60	%		1.58	%		1.59	%		1.52	%		1.58	%
Portfolio turnover rate		200	%		442	%		947	%		267	%		160	%		121	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	6.9%
Guggenheim Strategy Fund II	6.8%
Total	13.7%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 129

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 13.7%
Guggenheim Strategy Fund I1		24,377	$	609,191
Guggenheim Strategy Fund II1		24,220		604,038
Total Mutual Funds
(Cost $1,204,971)				1,213,229
	Face Amount
FEDERAL AGENCY NOTES†† - 11.3%
Federal Farm Credit Bank6
0.67% due 09/12/182	$	1,000,000		999,224
Total Federal Agency Notes
(Cost $999,804)				999,224
REPURCHASE AGREEMENTS††,3 - 67.4%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		3,258,999		3,258,999
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/164		2,684,838		2,684,838
Total Repurchase Agreements
(Cost $5,943,837)				5,943,837
Total Investments - 92.4%
(Cost $8,148,612)			$	8,156,290
Other Assets & Liabilities, net - 7.6%				668,475
Total Net Assets - 100.0%			$	8,824,765

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2016 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $748,200)		6	$	(5,352	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2016 Russell 2000 Index Swap (0.20%)5, Terminating 10/31/16 (Notional Value $5,201,473)		4,156	$	14,098
Goldman Sachs International October 2016 Russell 2000 Index Swap 0.00%5, Terminating 10/26/16 (Notional Value $575,256)		460		(5,311	)
BNP Paribas November 2016 Russell 2000 Index Swap (0.36%)5, Terminating 11/01/16 (Notional Value $2,268,980)		1,813		(25,262	)
(Total Notional Value $8,045,709)			$	(16,475	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Variable rate security. Rate indicated is rate effective at September 30, 2016.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
5	Total Return based on Russell 2000 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
6	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE RUSSELL 2000® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	14,098	$	—	$	14,098
Federal Agency Notes		—		—		999,224		—		—		999,224
Mutual Funds		1,213,229		—		—		—		—		1,213,229
Repurchase Agreements		—		—		5,943,837		—		—		5,943,837
Total	$	1,213,229	$	—	$	6,943,061	$	14,098	$	—	$	8,170,388
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Futures Contracts	$	—	$	5,352	$	—	$	—	$	—	$	5,352
Equity Index Swap Agreements		—		—		—		30,573		—		30,573
Total	$	—	$	5,352	$	—	$	30,573	$	—	$	35,925

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $999,804)	$	999,224
Investments in affiliated issuers, at value (cost $1,204,971)		1,213,229
Repurchase agreements, at value (cost $5,943,837)		5,943,837
Total investments (cost $8,148,612)		8,156,290
Segregated cash with broker		485,400
Unrealized appreciation on swap agreements		14,098
Receivables:
Fund shares sold		221,951
Dividends		1,872
Interest		415
Total assets		8,880,026
Liabilities:
Unrealized depreciation on swap agreements		30,573
Payable for:
Fund shares redeemed		11,005
Management fees		7,177
Variation margin		6,480
Distribution and service fees		2,849
Transfer agent and administrative fees		1,994
Portfolio accounting fees		797
Miscellaneous		(5,614	)
Total liabilities		55,261
Commitments and contingent liabilities (Note 13)		—
Net assets	$	8,824,765
Net assets consist of:
Paid in capital	$	58,858,984
Accumulated net investment loss		(278,922	)
Accumulated net realized loss on investments		(49,741,148	)
Net unrealized depreciation on investments		(14,149	)
Net assets	$	8,824,765
A-Class:
Net assets	$	506,681
Capital shares outstanding		18,965
Net asset value per share	$	26.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.05
C-Class:
Net assets	$	1,392,524
Capital shares outstanding		57,312
Net asset value per share	$	24.30
H-Class:
Net assets	$	6,925,560
Capital shares outstanding		258,529
Net asset value per share	$	26.79

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	20,756
Interest		18,660
Total investment income		39,416
Expenses:
Management fees		66,554
Transfer agent and administrative fees		18,487
Distribution and service fees:
A-Class		2,492
C-Class		7,727
H-Class		14,063
Portfolio accounting fees		7,395
Registration fees		13,088
Professional fees		7,683
Pricing service expense		7,187
Trustees’ fees*		1,074
Custodian fees		862
Miscellaneous		(13,948	)
Total expenses		132,664
Net investment loss		(93,248	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		14,887
Investments in unaffiliated issuers		(715	)
Swap agreements		(2,320,856	)
Futures contracts		12,480
Net realized loss		(2,294,204	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		5,945
Investments in affiliated issuers		5,566
Swap agreements		326,387
Futures contracts		(2,853	)
Net change in unrealized appreciation (depreciation)		335,045
Net realized and unrealized loss		(1,959,159	)
Net decrease in net assets resulting from operations	$	(2,052,407	)

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

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(93,248	)	$	(478,582	)
Net realized loss on investments		(2,294,204	)		(1,808,075	)
Net change in unrealized appreciation (depreciation) on investments		335,045			(283,532	)
Net decrease in net assets resulting from operations		(2,052,407	)		(2,570,189	)
Capital share transactions:
Proceeds from sale of shares
A-Class		4,688,369			9,085,916
C-Class		471,953			1,059,867
H-Class		46,645,582			505,306,463
Cost of shares redeemed
A-Class		(6,785,532	)		(6,953,249	)
C-Class		(580,947	)		(1,084,198	)
H-Class		(74,799,559	)		(471,955,412	)
Net increase (decrease) from capital share transactions		(30,360,134	)		35,459,387
Net increase (decrease) in net assets		(32,412,541	)		32,889,198
Net assets:
Beginning of period		41,237,306			8,348,108
End of period	$	8,824,765		$	41,237,306
Accumulated net investment loss at end of period	$	(278,922	)	$	(185,674	)
Capital share activity:
Shares sold
A-Class		154,943			278,747
C-Class		17,054			36,768
H-Class		1,591,800			15,797,309
Shares redeemed
A-Class		(226,844	)		(218,466	)
C-Class		(21,339	)		(37,693	)
H-Class		(2,524,132	)		(14,803,569	)
Net increase (decrease) in shares		(1,008,518	)		1,053,096

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	30.76		$	29.22		$	33.01		$	43.21		$	52.38		$	59.31
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.39	)		(.46	)		(.61	)		(.81	)		(1.02	)
Net gain (loss) on investments (realized and unrealized)		(3.87	)		1.93			(3.33	)		(9.59	)		(8.36	)		(5.91	)
Total from investment operations		(4.04	)		1.54			(3.79	)		(10.20	)		(9.17	)		(6.93	)
Net asset value, end of period	$	26.72		$	30.76		$	29.22		$	33.01		$	43.21		$	52.38
Total Returnc		(13.13	%)		5.27	%		(11.48	%)		(23.59	%)		(17.53	%)		(11.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	507		$	2,795		$	894		$	7,302		$	635		$	612
Ratios to average net assets:
Net investment income (loss)		(1.17	%)		(1.23	%)		(1.40	%)		(1.69	%)		(1.60	%)		(1.66	%)
Total expensesd		1.71	%		1.70	%		1.71	%		1.72	%		1.72	%		1.75	%
Portfolio turnover rate		39	%		584	%		189	%		—			—			—

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	28.07		$	26.86		$	30.59		$	40.30		$	49.22		$	56.14
Income (loss) from investment operations:
Net investment income (loss)b		(.25	)		(.58	)		(.63	)		(.83	)		(1.14	)		(1.41	)
Net gain (loss) on investments (realized and unrealized)		(3.52	)		1.79			(3.10	)		(8.88	)		(7.78	)		(5.51	)
Total from investment operations		(3.77	)		1.21			(3.73	)		(9.71	)		(8.92	)		(6.92	)
Net asset value, end of period	$	24.30		$	28.07		$	26.86		$	30.59		$	40.30		$	49.22
Total Returnc		(13.47	%)		4.50	%		(12.19	%)		(24.08	%)		(18.16	%)		(12.29	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,393		$	1,729		$	1,680		$	568		$	409		$	837
Ratios to average net assets:
Net investment income (loss)		(1.93	%)		(2.08	%)		(2.13	%)		(2.45	%)		(2.35	%)		(2.43	%)
Total expensesd		2.46	%		2.45	%		2.45	%		2.47	%		2.47	%		2.51	%
Portfolio turnover rate		39	%		584	%		189	%		—			—			—

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

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	30.83		$	29.30		$	33.11		$	43.26		$	52.42		$	59.37
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.41	)		(.46	)		(.65	)		(.84	)		(1.05	)
Net gain (loss) on investments (realized and unrealized)		(3.87	)		1.94			(3.35	)		(9.50	)		(8.32	)		(5.90	)
Total from investment operations		(4.04	)		1.53			(3.81	)		(10.15	)		(9.16	)		(6.95	)
Net asset value, end of period	$	26.79		$	30.83		$	29.30		$	33.11		$	43.26		$	52.42
Total Returnc		(13.10	%)		5.22	%		(11.51	%)		(23.46	%)		(17.46	%)		(11.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,926		$	36,713		$	5,775		$	11,691		$	12,822		$	17,283
Ratios to average net assets:
Net investment income (loss)		(1.18	%)		(1.28	%)		(1.41	%)		(1.69	%)		(1.62	%)		(1.70	%)
Total expensesd		1.71	%		1.70	%		1.70	%		1.72	%		1.74	%		1.77	%
Portfolio turnover rate		39	%		584	%		189	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2104.

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

FUND PROFILE (Unaudited) September 30, 2016

DOW JONES INDUSTRIAL AVERAGE^® FUND

OBJECTIVE: Seeks to provide investment results that match before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Dow Jones Industrial Average^® (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	December 1, 2015
C-Class	December 1, 2015
H-Class	December 1, 2015

Ten Largest Holdings (% of Total Net Assets)
3M Co.	5.6%
Goldman Sachs Group, Inc.	5.1%
International Business Machines Corp.	5.0%
Guggenheim Strategy Fund II	4.9%
Guggenheim Strategy Fund I	4.9%
UnitedHealth Group, Inc.	4.4%
Boeing Co.	4.2%
Home Depot, Inc.	4.1%
Johnson & Johnson	3.7%
McDonald’s Corp.	3.6%
Top Ten Total	45.5%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

136 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
DOW JONES INDUSTRIAL AVERAGE® FUND

	Shares		Value
COMMON STOCKS† - 84.4%
Industrial - 16.7%
3M Co.		12,336	$	2,173,974
Boeing Co.		12,336		1,625,145
United Technologies Corp.		12,336		1,253,338
Caterpillar, Inc.		12,336		1,095,067
General Electric Co.		12,336		365,392
Total Industrial				6,512,916
Financial - 15.4%
Goldman Sachs Group, Inc.		12,336		1,989,426
Travelers Companies, Inc.		12,336		1,413,089
Visa, Inc. — Class A		12,336		1,020,188
JPMorgan Chase & Co.		12,336		821,454
American Express Co.		12,336		789,997
Total Financial				6,034,154
Consumer, Non-cyclical - 15.4%
UnitedHealth Group, Inc.		12,336		1,727,040
Johnson & Johnson		12,336		1,457,251
Procter & Gamble Co.		12,336		1,107,156
Merck & Company, Inc.		12,336		769,890
Coca-Cola Co.		12,336		522,060
Pfizer, Inc.		12,336		417,820
Total Consumer, Non-cyclical				6,001,217
Consumer, Cyclical - 11.6%
Home Depot, Inc.		12,336		1,587,397
McDonald’s Corp.		12,336		1,423,081
Wal-Mart Stores, Inc.		12,336		889,672
NIKE, Inc. — Class B		12,336		649,490
Total Consumer, Cyclical				4,549,640
Technology - 11.6%
International Business Machines Corp.		12,336		1,959,573
Apple, Inc.		12,336		1,394,585
Microsoft Corp.		12,336		710,554
Intel Corp.		12,336		465,684
Total Technology				4,530,396
Energy - 6.0%
Chevron Corp.		12,336		1,269,621
Exxon Mobil Corp.		12,336		1,076,686
Total Energy				2,346,307
Communications - 5.6%
Walt Disney Co.		12,336		1,145,521
Verizon Communications, Inc.		12,336		641,225
Cisco Systems, Inc.		12,336		391,298
Total Communications				2,178,044
Basic Materials - 2.1%
EI du Pont de Nemours & Co.		12,336		826,142
Total Common Stocks
(Cost $32,166,265)				32,978,816
MUTUAL FUNDS† - 9.8%
Guggenheim Strategy Fund II1		77,162	$	1,924,408
Guggenheim Strategy Fund I1		76,918		1,922,170
Total Mutual Funds
(Cost $3,827,834)				3,846,578
	Face Amount
REPURCHASE AGREEMENTS††,2 - 5.3%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	1,065,577		1,065,577
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/163		996,096		996,096
Total Repurchase Agreements
(Cost $2,061,673)				2,061,673
Total Investments - 99.5%
(Cost $38,055,772)			$	38,887,067
Other Assets & Liabilities, net - 0.5%				200,493
Total Net Assets - 100.0%			$	39,087,560
	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Value of Contracts $728,560)		8	$	9,813
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 Swap 0.78%4, Terminating 11/01/16 (Notional Value $4,453,662)		243	$	39,820
Barclays Bank plc October 2016 Swap 0.80%4, Terminating 10/31/16 (Notional Value $871,072)		48		(1,542	)
(Total Notional Value $5,324,734)			$	38,278

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
DOW JONES INDUSTRIAL AVERAGE® FUND

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
4	Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate effective September 30, 2016.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	32,978,816	$	—	$	—	$	—	$	—	$	32,978,816
Equity Futures Contracts		—		9,813		—		—		—		9,813
Equity Index Swap Agreements		—		—		—		39,820		—		39,820
Mutual Funds		3,846,578		—		—		—		—		3,846,578
Repurchase Agreements		—		—		2,061,673		—		—		2,061,673
Total	$	36,825,394	$	9,813	$	2,061,673	$	39,820	$	—	$	38,936,700
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	1,542	$	—	$	1,542

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $32,166,265)	$	32,978,816
Investments in affiliated issuers, at value (cost $3,827,834)		3,846,578
Repurchase agreements, at value (cost $2,061,673)		2,061,673
Total investments (cost $38,055,772)		38,887,067
Segregated cash with broker		228,400
Unrealized appreciation on swap agreements		39,820
Receivables:
Swap settlement		890
Variation margin		4,680
Fund shares sold		49,145
Dividends		12,200
Interest		21
Total assets		39,222,223
Liabilities:
Unrealized depreciation on swap agreements		1,542
Payable for:
Fund shares redeemed		87,035
Management fees		18,983
Distribution and service fees		6,981
Transfer agent and administrative fees		6,328
Portfolio accounting fees		2,531
Miscellaneous		11,263
Total liabilities		134,663
Commitments and contingent liabilities (Note 13)		—
Net assets	$	39,087,560
Net assets consist of:
Paid in capital	$	38,165,457
Undistributed net investment income		84,313
Accumulated net realized loss on investments		(41,596	)
Net unrealized appreciation on investments		879,386
Net assets	$	39,087,560
A-Class:
Net assets	$	4,438,890
Capital shares outstanding		85,929
Net asset value per share	$	51.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	54.24
C-Class:
Net assets	$	1,198,045
Capital shares outstanding		23,342
Net asset value per share	$	51.33
H-Class:
Net assets	$	33,450,625
Capital shares outstanding		647,176
Net asset value per share	$	51.69

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers	$	273,623
Dividends from securities of affiliated issuers		27,237
Interest		6,274
Total investment income		307,134
Expenses:
Management fees		105,614
Transfer agent and administrative fees		35,205
Distribution and service fees:
A-Class		10,193
C-Class		4,484
H-Class		23,891
Portfolio accounting fees		14,082
Custodian fees		1,785
Trustees’ fees*		1,421
Line of credit fees		10
Miscellaneous		26,136
Total expenses		222,821
Net investment income		84,313
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		525,716
Investments in affiliated issuers		3,249
Swap agreements		(292,956	)
Futures contracts		72,641
Net realized gain		308,650
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		59,226
Investments in affiliated issuers		19,448
Swap agreements		(4,967	)
Futures contracts		(150,905	)
Net change in unrealized appreciation (depreciation)		(77,198	)
Net realized and unrealized gain		231,452
Net increase in net assets resulting from operations	$	315,765

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

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DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Period Ended March 31, 2016a
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	84,313		$	(10,240	)
Net realized gain (loss) on investments		308,650			(350,012	)
Net change in unrealized appreciation (depreciation) on investments		(77,198	)		956,584
Net increase in net assets resulting from operations		315,765			596,332
Capital share transactions:
Proceeds from sale of shares
A-Class		7,041,976			62,850,014
C-Class		766,721			930,648
H-Class		190,729,324			34,887,020
Cost of shares redeemed
A-Class		(47,086,294	)		(19,048,769	)
C-Class		(335,756	)		(221,789	)
H-Class		(176,349,994	)		(15,987,638	)
Net increase (decrease) from capital share transactions		(25,234,023	)		63,409,486
Net increase (decrease) in net assets		(24,918,258	)		64,005,818
Net assets:
Beginning of year		64,005,818			—
End of year	$	39,087,560		$	64,005,818
Undistributed net investment income at end of year	$	84,313		$	—
Capital share activity:
Shares sold
A-Class		140,446			1,299,093
C-Class		15,384			19,674
H-Class		3,712,095			716,927
Shares redeemed
A-Class		(948,609	)		(405,001	)
C-Class		(6,835	)		(4,881	)
H-Class		(3,446,479	)		(335,367	)
Net increase (decrease) in shares		(533,998	)		1,290,445

^a Since commencement of operations: December 1, 2015.

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	49.60		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.10			(.03	)
Net gain (loss) on investments (realized and unrealized)		1.96			(.37	)
Total from investment operations		2.06			(.40	)
Net asset value, end of period	$	51.66		$	49.60
Total Returne		4.13	%		(0.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,439		$	44,351
Ratios to average net assets:
Net investment income (loss)		0.38	%		(0.21	%)
Total expensesd		1.55	%		1.55	%
Portfolio turnover rate		413	%		98	%

C-Class	Period Ended September 30, 2016a			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	49.47		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.07	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		1.93			(.46	)
Total from investment operations		1.86			(.53	)
Net asset value, end of period	$	51.33		$	49.47
Total Returne		3.74	%		(1.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,198		$	732
Ratios to average net assets:
Net investment income (loss)		(0.29	%)		(0.43	%)
Total expensesd		2.30	%		2.30	%
Portfolio turnover rate		413	%		98	%

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	49.59		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.19			(.03	)
Net gain (loss) on investments (realized and unrealized)		1.91			(.38	)
Total from investment operations		2.10			(.41	)
Net asset value, end of period	$	51.69		$	49.59
Total Returne		4.21	%		(0.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,451		$	18,923
Ratios to average net assets:
Net investment income (loss)		0.73	%		(0.17	%)
Total expensesd		1.55	%		1.55	%
Portfolio turnover rate		413	%		98	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: December 1, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for U.S. Government securities on a daily basis. The Fund’s current benchmark is 120% of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	January 3, 1994
A-Class	March 31, 2004
C-Class	May 2, 2001
H-Class	September 18, 2014

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
U.S. Treasury Bond	38.1%
Guggenheim Strategy Fund II	13.0%
Guggenheim Strategy Fund I	7.9%
Total	59.0%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 143

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 20.9%
Guggenheim Strategy Fund II1		302,926	$	7,554,969
Guggenheim Strategy Fund I1		181,882		4,545,237
Total Mutual Funds
(Cost $12,030,296)				12,100,206
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 38.1%
U.S. Treasury Bond
2.25% due 08/15/46	$	22,400,000		22,067,500
Total U.S. Government Securities
(Cost $21,687,032)				22,067,500
U.S. TREASURY BILLS†† - 1.0%
United States Treasury Bill
0.00% due 10/13/162		600,000		599,972
Total U.S. Treasury Bills
(Cost $599,985)				599,972
REPURCHASE AGREEMENTS††,3 - 86.4%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		27,877,307		27,877,307

Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		22,134,722		22,134,722
Total Repurchase Agreements
(Cost $50,012,029)				50,012,029
Total Investments - 146.4%
(Cost $84,329,342)			$	84,779,707
Other Assets & Liabilities, net - (46.4)%				(26,875,531	)
Total Net Assets - 100.0%			$	57,904,176
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2016 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $55,865,625)		303	$	286,513

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Zero coupon rate security.
3	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Interest Rate Futures Contracts	$	—	$	286,513	$	—	$	—	$	—	$	286,513
Mutual Funds		12,100,206		—		—		—		—		12,100,206
Repurchase Agreements		—		—		50,012,029		—		—		50,012,029
U.S. Government Securities		—		—		22,067,500		—		—		22,067,500
U.S. Treasury Bills		—		—		599,972		—		—		599,972
Total	$	12,100,206	$	286,513	$	72,679,501	$	—	$	—	$	85,066,220

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $22,287,017)	$	22,667,472
Investments in affiliated issuers, at value (cost $12,030,296)		12,100,206
Repurchase agreements, at value (cost $50,012,029)		50,012,029
Total investments (cost $84,329,342)		84,779,707
Segregated cash with broker		2,015,812
Receivables:
Securities sold		36,056,719
Fund shares sold		7,775,062
Dividends		21,803
Interest		279,113
Total assets		130,928,216
Liabilities:
Payable for:
Fund shares redeemed		71,873,202
Variation margin		960,935
Management fees		36,849
Transfer agent and administrative fees		14,740
Portfolio accounting fees		7,370
Distribution and service fees		6,200
Miscellaneous		124,744
Total liabilities		73,024,040
Commitments and contingent liabilities (Note 13)		—
Net assets	$	57,904,176
Net assets consist of:
Paid in capital	$	44,500,783
Undistributed net investment income		1,039
Accumulated net realized gain on investments		12,665,476
Net unrealized appreciation on investments		736,878
Net assets	$	57,904,176
Investor Class:
Net assets	$	44,590,393
Capital shares outstanding		708,477
Net asset value per share	$	62.94
A-Class:
Net assets	$	2,784,733
Capital shares outstanding		43,957
Net asset value per share	$	63.35
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.51
C-Class:
Net assets	$	3,062,032
Capital shares outstanding		48,646
Net asset value per share	$	62.95
H-Class:
Net assets	$	7,467,018
Capital shares outstanding		117,709
Net asset value per share	$	63.44

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GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Interest	$	1,035,456
Dividends from securities of affiliated issuers		156,755
Total investment income		1,192,211
Expenses:
Management fees		281,155
Transfer agent and administrative fees		112,462
Distribution and service fees:
A-Class		5,511
C-Class		18,216
H-Class		51,096
Portfolio accounting fees		56,230
Registration fees		42,213
Custodian fees		7,031
Trustees’ fees*		4,851
Line of credit fees		1,777
Miscellaneous		39,278
Total expenses		619,820
Net investment income		572,391
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		9,512,519
Investments in affiliated issuers		109,933
Futures contracts		4,413,413
Net realized gain		14,035,865
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(955,505	)
Investments in affiliated issuers		57,303
Futures contracts		(1,218,369	)
Net change in unrealized appreciation (depreciation)		(2,116,571	)
Net realized and unrealized gain		11,919,294
Net increase in net assets resulting from operations	$	12,491,685

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

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	572,391		$	1,571,845
Net realized gain on investments		14,035,865			17,793,226
Net change in unrealized appreciation (depreciation) on investments		(2,116,571	)		(1,775,157	)
Net increase in net assets resulting from operations		12,491,685			17,589,914
Distributions to shareholders from:
Net investment income
Investor Class		(362,286	)		(951,034	)
Advisor Class		—			(40,983	)*
A-Class		(20,286	)		(53,217	)
C-Class		(2,885	)		(29,111	)
H-Class		(185,895	)		(903,740	)
Total distributions to shareholders		(571,352	)		(1,978,085	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		523,683,912			883,887,497
Advisor Class		—			209,857,554	*
A-Class		3,324,812			40,024,720
C-Class		4,608,556			10,755,886
H-Class		1,004,427,230			3,211,356,226
Distributions reinvested
Investor Class		363,855			945,843
Advisor Class		—			40,282	*
A-Class		15,413			49,337
C-Class		2,702			26,814
H-Class		186,035			902,679
Cost of shares redeemed
Investor Class		(539,199,076	)		(897,206,827	)
Advisor Class		—			(212,004,112	)*
A-Class		(10,065,332	)		(34,656,013	)
C-Class		(5,085,734	)		(10,299,100	)
H-Class		(1,055,051,013	)		(3,257,317,015	)
Conversion activity*
Advisor Class		—			(7,238,724	)
H-Class		—			7,238,724
Net decrease from capital share transactions		(72,788,640	)		(53,636,229	)
Net decrease in net assets		(60,868,307	)		(38,024,400	)
Net assets:
Beginning of period		118,772,483			156,796,883
End of period	$	57,904,176		$	118,772,483
Undistributed net investment income at end of period	$	1,039		$	—

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:
Shares sold
Investor Class		8,415,151			16,290,807
Advisor Class		—			3,932,239	*
A-Class		54,644			741,077
C-Class		74,999			196,471
H-Class		16,195,774			58,647,379
Shares issued from reinvestment of distributions
Investor Class		5,885			17,306
Advisor Class		—			756	*
A-Class		249			905
C-Class		44			498
H-Class		3,012			16,483
Shares redeemed
Investor Class		(8,683,274	)		(16,377,059	)
Advisor		—			(3,973,055	)*
A-Class		(172,258	)		(645,888	)
C-Class		(82,755	)		(189,233	)
H-Class		(16,928,950	)		(59,266,476	)
Conversion activity*
Advisor Class		—			(133,556	)
H-Class		—			131,901
Net decrease in shares		(1,117,479	)		(609,445	)

* Effective September 30, 2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	58.12		$	59.12		$	45.80		$	48.55		$	44.73		$	34.28
Income (loss) from investment operations:
Net investment income (loss)b		.35			.76			.63			.61			.57			.96
Net gain (loss) on investments (realized and unrealized)		4.82			(.67	)		13.34			(2.76	)		4.21			10.45
Total from investment operations		5.17			.09			13.97			(2.15	)		4.78			11.41
Less distributions from:
Net investment income		(.35	)		(1.09	)		(.65	)		(.60	)		(.72	)		(.96	)
Net realized gains		—			—			—			—			(.24	)		—
Total distributions		(.35	)		(1.09	)		(.65	)		(.60	)		(.96	)		(.96	)
Net asset value, end of period	$	62.94		$	58.12		$	59.12		$	45.80		$	48.55		$	44.73
Total Returnc		8.91	%		0.33	%		30.66	%		(4.37	%)		10.63	%		33.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	44,590		$	56,419		$	61,460		$	43,573		$	281,800		$	43,709
Ratios to average net assets:
Net investment income (loss)		1.14	%		1.39	%		1.21	%		1.22	%		1.15	%		2.24	%
Total expensesd		0.97	%		0.94	%		0.95	%		0.97	%		0.95	%		0.95	%
Portfolio turnover rate		1,118	%		2,699	%		1,932	%		2,661	%		1,759	%		2,322	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	58.50		$	59.47		$	46.07		$	48.73		$	44.77		$	34.34
Income (loss) from investment operations:
Net investment income (loss)b		.28			.64			.51			.48			.48			.87
Net gain (loss) on investments (realized and unrealized)		4.85			(.65	)		13.42			(2.65	)		4.29			10.43
Total from investment operations		5.13			(.01	)		13.93			(2.17	)		4.77			11.30
Less distributions from:
Net investment income		(.28	)		(.96	)		(.53	)		(.49	)		(.57	)		(.87	)
Net realized gains		—			—			—			—			(.24	)		—
Total distributions		(.28	)		(.96	)		(.53	)		(.49	)		(.81	)		(.87	)
Net asset value, end of period	$	63.35		$	58.50		$	59.47		$	46.07		$	48.73		$	44.77
Total Returnc		8.78	%		0.12	%		30.37	%		(4.40	%)		10.62	%		33.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,785		$	9,438		$	3,879		$	1,724		$	15,476		$	10,885
Ratios to average net assets:
Net investment income (loss)		0.92	%		1.16	%		0.97	%		1.04	%		0.94	%		2.02	%
Total expensesd		1.22	%		1.20	%		1.20	%		1.22	%		1.20	%		1.20	%
Portfolio turnover rate		1,118	%		2,699	%		1,932	%		2,661	%		1,759	%		2,322	%

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	58.13		$	59.09		$	45.79		$	48.51		$	44.63		$	34.25
Income (loss) from investment operations:
Net investment income (loss)b		.04			.22			.13			.12			.15			.57
Net gain (loss) on investments (realized and unrealized)		4.83			(.64	)		13.30			(2.71	)		4.21			10.35
Total from investment operations		4.87			(.42	)		13.43			(2.59	)		4.36			10.92
Less distributions from:
Net investment income		(.05	)		(.54	)		(.13	)		(.13	)		(.24	)		(.54	)
Net realized gains		—			—			—			—			(.24	)		—
Total distributions		(.05	)		(.54	)		(.13	)		(.13	)		(.48	)		(.54	)
Net asset value, end of period	$	62.95		$	58.13		$	59.09		$	45.79		$	48.51		$	44.63
Total Returnc		8.36	%		(0.62	%)		29.37	%		(5.33	%)		9.69	%		32.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,062		$	3,276		$	2,873		$	3,198		$	4,594		$	4,451
Ratios to average net assets:
Net investment income (loss)		0.15	%		0.41	%		0.26	%		0.34	%		0.31	%		1.32	%
Total expensesd		1.97	%		1.95	%		1.95	%		1.97	%		1.94	%		1.95	%
Portfolio turnover rate		1,118	%		2,699	%		1,932	%		2,661	%		1,759	%		2,322	%

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	58.55		$	59.44		$	48.83
Income (loss) from investment operations:
Net investment income (loss)b		.28			.61			.28
Net gain (loss) on investments (realized and unrealized)		4.89			(.54	)		10.59
Total from investment operations		5.17			.07			10.87
Less distributions from:
Net investment income		(.28	)		(.96	)		(.26	)
Total distributions		(.28	)		(.96	)		(.26	)
Net asset value, end of period	$	63.44		$	58.55		$	59.44
Total Returnc		8.82	%		0.26	%		22.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,467		$	49,639		$	78,382
Ratios to average net assets:
Net investment income (loss)		0.91	%		1.11	%		0.89	%
Total expensesd		1.22	%		1.20	%		1.18	%
Portfolio turnover rate		1,118	%		2,699	%		1,932	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The Portfolio turnover rate stated is for the entire period of the Funds, not since the commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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

FUND PROFILE (Unaudited) September 30, 2016

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contracts on a specified debt instrument on a daily basis. The Fund’s current benchmark is the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	March 3, 1995
A-Class	March 31, 2004
C-Class	March 28, 2001
H-Class	September 18, 2014

The Fund invests principally in short sales and derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
Federal Farm Credit Bank	36.0%
Guggenheim Strategy Fund I	8.7%
Guggenheim Strategy Fund II	7.7%
Federal Home Loan Bank	7.2%
Federal Home Loan Bank	7.2%
Farmer Mac	5.9%
Federal Farm Credit Bank	3.5%
Federal Farm Credit Bank	1.4%
Federal Farm Credit Bank	0.9%
Federal Farm Credit Bank	0.7%
Total	79.2%
“Largest Holdings” excludes any temporary cash or derivative investments.

152 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 16.3%
Guggenheim Strategy Fund I1		483,680	$	12,087,171
Guggenheim Strategy Fund II1		424,204		10,579,660
Total Mutual Funds
(Cost $22,537,267)				22,666,831
	Face Amount
FEDERAL AGENCY NOTES†† - 57.1%
Federal Farm Credit Bank2
0.65% due 08/10/183	$	50,000,000		49,968,001
0.52% due 03/09/183		4,800,000		4,791,086
0.57% due 09/18/173		1,875,000		1,874,820
0.72% due 06/12/183		1,300,000		1,300,711
0.75% due 07/18/183		1,000,000		1,000,816
0.82% due 06/13/173		200,000		200,417
0.50% due 04/10/173		100,000		100,000
Total Federal Farm Credit Bank				59,235,851
Federal Home Loan Bank2
0.56% due 12/20/173		10,000,000		9,992,770
0.63% due 05/17/183		10,000,000		9,992,660
Total Federal Home Loan Bank				19,985,430
Total Federal Agency Notes
(Cost $79,239,791)				79,221,281
FEDERAL AGENCY BONDS†† - 5.9%
Farmer Mac2
5.13% due 04/19/17		8,000,000		8,193,600
Total Federal Agency Bonds
(Cost $8,197,389)				8,193,600
U.S. TREASURY BILLS† - 1.4%
United States Treasury Bill
0.00% due 10/13/16††,4		2,000,000		1,999,906
Total U.S. Treasury Bills
(Cost $1,999,948)				1,999,906
REPURCHASE AGREEMENTS†† - 120.6%
Individual Repurchase Agreements
Barclays Capital issued 09/30/16 at (0.25)% due 10/01/16 (Secured by U.S. Treasury Bond at rate of 2.25% and maturing 08/15/46 as collateral with a value of $87,142,170) to be repurchased at $85,433,755.		85,433,500		85,433,500

Mizuho Financial Group, Inc. issued 09/30/16 at (0.15)% due 10/03/16 (Secured by U.S. Treasury Bond at rate of 2.25% and maturing 08/15/46 as collateral with a value of $36,286,250) to be repurchased at $35,574,755.		35,574,755		35,574,755
Joint Repurchase Agreements5
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/01/16		25,772,084		25,772,084
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		20,463,163		20,463,163
Total Repurchase Agreements
(Cost $167,243,502)				167,243,502
Total Investments - 201.3%
(Cost $279,217,897)			$	279,325,120
U.S. Government Securities Sold Short†† - (76.6)%
U.S. Treasury Bond
2.25% due 08/15/46		108,000,000		(106,396,875	)
Total U.S. Government Securities Sold Short
(Proceeds $107,872,981)				(106,396,875	)
Other Assets & Liabilities, net - (24.7)%				(34,240,524	)
Total Net Assets - 100.0%			$	138,687,721
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2016 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $38,350,000)		208	$	500,735

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	Zero coupon rate security.
5	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 3		Total
Federal Agency Bonds	$	—	$	—	$	8,193,600	$	—	$	8,193,600
Federal Agency Notes		—		—		79,221,281		—		79,221,281
Interest Rate Futures Contracts		—		500,735		—		—		500,735
Mutual Funds		22,666,831		—		—		—		22,666,831
Repurchase Agreements		—		—		167,243,502		—		167,243,502
U.S. Treasury Bills		—		—		1,999,906		—		1,999,906
Total	$	22,666,831	$	500,735	$	256,658,289	$	—	$	279,825,855
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 3		Total
U.S. Government Securities	$	—	$	—	$	106,396,875	$	—	$	106,396,875
Total	$	—	$	—	$	106,396,875	$	—	$	106,396,875

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $89,437,128)	$	89,414,787
Investments in affiliated issuers, at value (cost $22,537,267)		22,666,831
Repurchase agreements, at value (cost $167,243,502)		167,243,502
Total investments (cost $279,217,897)		279,325,120
Receivables:
Variation margin		344,500
Fund shares sold		30,617,385
Dividends		34,590
Interest		292,043
Total assets		310,613,638
Liabilities:
Securities sold short, at value (proceeds $107,872,981)		106,396,875
Overdraft due to custodian bank		9,005
Payable for:
Fund shares redeemed		49,288,469
Securities purchased		15,565,469
Management fees		143,041
Transfer agent and administrative fees		39,734
Distribution and service fees		27,548
Portfolio accounting fees		15,893
Miscellaneous		439,883
Total liabilities		171,925,917
Commitments and contingent liabilities (Note 13)		—
Net assets	$	138,687,721
Net assets consist of:
Paid in capital	$	525,079,033
Accumulated net investment loss		(3,503,838	)
Accumulated net realized loss on investments		(384,971,538	)
Net unrealized appreciation on investments		2,084,064
Net assets	$	138,687,721
Investor Class:
Net assets	$	87,771,969
Capital shares outstanding		2,777,525
Net asset value per share	$	31.60
A-Class:
Net assets	$	17,546,840
Capital shares outstanding		575,388
Net asset value per share	$	30.50
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.02
C-Class:
Net assets	$	22,368,052
Capital shares outstanding		827,453
Net asset value per share	$	27.03
H-Class:
Net assets	$	11,000,860
Capital shares outstanding		359,474
Net asset value per share	$	30.60

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Interest	$	403,490
Dividends from securities of affiliated issuers		236,106
Total investment income		639,596
Expenses:
Management fees		788,744
Transfer agent and administrative fees		219,095
Distribution and service fees:
A-Class		21,201
C-Class		124,686
H-Class		50,661
Portfolio accounting fees		87,637
Short interest expense		1,443,453
Custodian fees		10,390
Trustees’ fees*		7,377
Line of credit fees		921
Miscellaneous		128,814
Total expenses		2,882,979
Net investment loss		(2,243,383	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		45,801
Investments in affiliated issuers		83,900
Futures contracts		(7,291,824	)
Securities sold short		(5,447,898	)
Net realized loss		(12,610,021	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		15,075
Investments in affiliated issuers		132,699
Securities sold short		1,682,993
Futures contracts		181,754
Net change in unrealized appreciation (depreciation)		2,012,521
Net realized and unrealized loss		(10,597,500	)
Net decrease in net assets resulting from operations	$	(12,840,883	)

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

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(2,243,383	)	$	(6,742,953	)
Net realized loss on investments		(12,610,021	)		(2,550,139	)
Net change in unrealized appreciation (depreciation) on investments		2,012,521			3,855,117
Net decrease in net assets resulting from operations		(12,840,883	)		(5,437,975	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		704,811,885			419,488,684
Advisor Class		—			77,182,234	*
A-Class		5,386,254			21,327,705
C-Class		3,223,080			10,592,963
H-Class		1,612,783,208			2,119,121,239
Cost of shares redeemed
Investor Class		(700,180,695	)		(430,488,671	)
Advisor Class		—			(80,838,817	)*
A-Class		(4,158,181	)		(24,329,743	)
C-Class		(6,536,455	)		(17,049,334	)
H-Class		(1,671,279,910	)		(2,100,739,161	)
Conversion activity*
Advisor Class		—			(8,597,033	)
H-Class		—			8,597,033
Net decrease from capital share transactions		(55,950,814	)		(5,732,901	)
Net decrease in net assets		(68,791,697	)		(11,170,876	)
Net assets:
Beginning of period		207,479,418			218,650,294
End of period	$	138,687,721		$	207,479,418
Accumulated net investment loss at end of period	$	(3,503,838	)	$	(1,260,455	)
Capital share activity:
Shares sold
Investor Class		22,252,564			11,180,250
Advisor Class		—			2,146,208	*
A-Class		174,832			580,663
C-Class		115,754			319,610
H-Class		50,883,947			58,800,072
Shares redeemed
Investor Class		(22,074,298	)		(11,534,880	)
Advisor Class		—			(2,246,748	)*
A-Class		(133,310	)		(669,422	)
C-Class		(235,344	)		(527,194	)
H-Class		(52,723,475	)		(58,103,890	)
Conversion activity*
Advisor Class		—			(245,419	)
H-Class		—			239,405
Net decrease in shares		(1,739,329	)		(61,345	)

* Effective September 30, 2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	34.27		$	35.78		$	46.01		$	43.94		$	48.33		$	65.42
Income (loss) from investment operations:
Net investment income (loss)b		(.37	)		(1.15	)		(1.15	)		(1.65	)		(1.20	)		(2.15	)
Net gain (loss) on investments (realized and unrealized)		(2.30	)		(.36	)		(9.08	)		3.72			(3.19	)		(14.94	)
Total from investment operations		(2.67	)		(1.51	)		(10.23	)		2.07			(4.39	)		(17.09	)
Net asset value, end of period	$	31.60		$	34.27		$	35.78		$	46.01		$	43.94		$	48.33
Total Returnc		(7.79	%)		(4.22	%)		(22.23	%)		4.69	%		(9.10	%)		(26.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	87,772		$	89,071		$	105,696		$	177,735		$	143,739		$	247,454
Ratios to average net assets:
Net investment income (loss)		(2.31	%)		(3.07	%)		(2.80	%)		(3.46	%)		(2.82	%)		(3.99	%)
Total expensesd,g		3.04	%		3.48	%		3.15	%		3.50	%		2.99	%		4.13	%
Portfolio turnover rate		877	%		838	%		2,190	%		1,097	%		1,309	%		1,107	%

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	33.11		$	34.66		$	44.68		$	42.77		$	47.18		$	64.00
Income (loss) from investment operations:
Net investment income (loss)b		(.41	)		(1.20	)		(1.23	)		(1.73	)		(1.35	)		(2.25	)
Net gain (loss) on investments (realized and unrealized)		(2.20	)		(.35	)		(8.79	)		3.64			(3.06	)		(14.57	)
Total from investment operations		(2.61	)		(1.55	)		(10.02	)		1.91			(4.41	)		(16.82	)
Net asset value, end of period	$	30.50		$	33.11		$	34.66		$	44.68		$	42.77		$	47.18
Total Returnc		(7.91	%)		(4.47	%)		(22.43	%)		4.51	%		(9.43	%)		(26.25	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,547		$	17,676		$	21,580		$	49,859		$	32,842		$	37,607
Ratios to average net assets:
Net investment income (loss)		(2.58	%)		(3.32	%)		(3.06	%)		(3.73	%)		(3.20	%)		(4.24	%)
Total expensesd,g		3.32	%		3.75	%		3.40	%		3.78	%		3.37	%		4.38	%
Portfolio turnover rate		877	%		838	%		2,190	%		1,097	%		1,309	%		1,107	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	29.46		$	31.07		$	40.35		$	38.92		$	43.25		$	59.09
Income (loss) from investment operations:
Net investment income (loss)b		(.47	)		(1.31	)		(1.36	)		(1.86	)		(1.50	)		(2.40	)
Net gain (loss) on investments (realized and unrealized)		(1.96	)		(.30	)		(7.92	)		3.29			(2.83	)		(13.44	)
Total from investment operations		(2.43	)		(1.61	)		(9.28	)		1.43			(4.33	)		(15.84	)
Net asset value, end of period	$	27.03		$	29.46		$	31.07		$	40.35		$	38.92		$	43.25
Total Returnc		(8.25	%)		(5.18	%)		(23.00	%)		3.73	%		(10.06	%)		(26.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,368		$	27,899		$	35,874		$	57,323		$	55,404		$	69,472
Ratios to average net assets:
Net investment income (loss)		(3.34	%)		(4.08	%)		(3.78	%)		(4.45	%)		(3.96	%)		(4.98	%)
Total expensesd,g		4.08	%		4.50	%		4.14	%		4.49	%		4.13	%		5.12	%
Portfolio turnover rate		877	%		838	%		2,190	%		1,097	%		1,309	%		1,107	%

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	33.12		$	34.67		$	41.85
Income (loss) from investment operations:
Net investment income (loss)b		(.42	)		(1.15	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		(2.10	)		(.40	)		(6.66	)
Total from investment operations		(2.52	)		(1.55	)		(7.18	)
Net asset value, end of period	$	30.60		$	33.12		$	34.67
Total Returnc		(7.64	%)		(4.47	%)		(17.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,001		$	72,833		$	43,800
Ratios to average net assets:
Net investment income (loss)		(2.65	%)		(3.17	%)		(2.75	%)
Total expensesd,g		3.36	%		3.61	%		3.07	%
Portfolio turnover rate		877	%		838	%		2,190	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The Portfolio turnover rate stated is for the entire period of the Funds, not since the commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.
g	Total expenses may include interest expense related to short sales. Excluding interest expense, the opening expense ratio for the period add years ended would be:

	9/30/16	3/31/16	3/31/15	3/31/14	3/31/13	3/31/12
Investor Class	1.41%	1.40%	1.40%	1.41%	1.39%	1.39%
A-Class	1.66%	1.65%	1.65%	1.66%	1.64%	1.65%
C-Class	2.41%	2.40%	2.40%	2.41%	2.39%	2.40%
H-Class	1.67%	1.65%	1.60%	—	—	—

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

FUND PROFILE (Unaudited) September 30, 2016

HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	2.1%
Guggenheim Strategy Fund II	1.8%
Guggenheim Strategy Fund III	1.0%
Total	4.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

160 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 4.9%
Guggenheim Strategy Fund I1		482,750	$	12,063,914
Guggenheim Strategy Fund II1		424,281		10,581,556
Guggenheim Strategy Fund III1		241,684		6,037,272
Total Mutual Funds
(Cost $28,495,924)				28,682,742
	Face Amount
U.S. TREASURY BILLS†† - 2.1%
United States Treasury Bill
0.00% due 10/13/162	$	12,000,000		11,999,436
Total U.S. Treasury Bills
(Cost $11,999,690)				11,999,436
FEDERAL AGENCY DISCOUNT NOTES†† - 1.2%
Freddie Mac3
0.17% due 10/07/16		7,267,000		7,266,794
Total Federal Agency Discount Notes
(Cost $7,266,794)				7,266,794
FEDERAL AGENCY NOTES†† - 0.6%
Federal Farm Credit Bank4
0.63% due 05/17/185		3,000,000		2,997,798
Fannie Mae3
0.73% due 10/03/165		500,000		500,000
Total Federal Agency Notes
(Cost $3,500,009)				3,497,798

REPURCHASE AGREEMENTS††,6 - 88.0%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		277,133,857		277,133,857
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/167		236,383,580		236,383,580
Total Repurchase Agreements
(Cost $513,517,437)				513,517,437
Total Investments - 96.8%
(Cost $564,779,854)			$	564,964,207
Other Assets & Liabilities, net - 3.2%				18,872,963
Total Net Assets - 100.0%			$	583,837,170
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2016 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $430,612,898)		3,543	$	874,303
	Units
INTEREST RATE SWAP AGREEMENTS††
Goldman Sachs International October 2016 iShares IBOXX H/Y Corp Bond Swap 0.31%, Terminating 10/31/16 (Notional Value $109,597,426)		1,255,987	$	477,275

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 161

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
HIGH YIELD STRATEGY FUND

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Zero coupon rate security.
3	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
4	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
5	Variable rate security. Rate indicated is rate effective at September 30, 2016.
6	Repurchase Agreements — See Note 5.
7	All or a portion of this security is pledged as equity swap collateral at September 30, 2016.
	plc — Public Limited Company
	CDX.NA.HY27 Index — Credit Default Swap North American High Yield Series 27 Index
	ICE — Intercontinental Exchange
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Credit Default Swaps	$	—	$	—	$	—	$	4,492,739	$	—	$	4,492,739
Interest Rate Swap Agreements		—		—		—		477,275		—		477,275
Federal Agency Discount Notes		—		—		7,266,794		—		—		7,266,794
Federal Agency Notes		—		—		3,497,798		—		—		3,497,798
Interest Rate Futures Contracts		—		874,303		—		—		—		874,303
Mutual Funds		28,682,742		—		—		—		—		28,682,742
Repurchase Agreements		—		—		513,517,437		—		—		513,517,437
U.S. Treasury Bills		—		—		11,999,436		—		—		11,999,436
Total	$	28,682,742	$	874,303	$	536,281,465	$	4,970,014	$	—	$	570,808,524

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $22,766,493)	$	22,764,028
Investments in affiliated issuers, at value (cost $28,495,924)		28,682,742
Repurchase agreements, at value (cost $513,517,437)		513,517,437
Total investments (cost $564,779,854)		564,964,207
Unamortized upfront premiums paid on credit default swaps		16,271,930
Unrealized appreciation on swap agreements		4,970,014
Segregated cash with broker		4,418,174
Receivables:
Swap settlement		522,939
Securities sold		3,540,034
Fund shares sold		2,700,611
Dividends		48,052
Interest		961,201
Total assets		598,397,162
Liabilities:
Segregated cash due to broker		6,851,078
Overdraft due to custodian bank		517
Payable for:
Fund shares redeemed		3,373,382
Securities purchased		2,785,804
Variation margin		657,256
Management fees		352,390
Distribution and service fees		120,162
Transfer agent and administrative fees		117,463
Portfolio accounting fees		38,858
Miscellaneous		263,082
Total liabilities		14,559,992
Commitments and contingent liabilities (Note 13)		—
Net assets	$	583,837,170
Net assets consist of:
Paid in capital	$	557,955,590
Accumulated net investment loss		(1,848,460	)
Accumulated net realized gain on investments		21,701,370
Net unrealized appreciation on investments		6,028,670
Net assets	$	583,837,170
A-Class:
Net assets	$	17,056,820
Capital shares outstanding		696,803
Net asset value per share	$	24.48
Maximum offering price per share (Net asset value divided by 95.25%)	$	25.70
C-Class:
Net assets	$	4,962,987
Capital shares outstanding		223,552
Net asset value per share	$	22.20
H-Class:
Net assets	$	561,817,363
Capital shares outstanding		22,970,562
Net asset value per share	$	24.46

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 163

HIGH YIELD STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers	$	1,682,503
Interest		698,177
Dividends from securities of affiliated issuers		538,644
Total investment income		2,919,324
Expenses:
Management fees		2,374,984
Transfer agent and administrative fees		791,661
Distribution and service fees:
A-Class		19,501
C-Class		16,611
H-Class		768,007
Portfolio accounting fees		249,393
Trustees’ fees*		41,040
Custodian fees		37,274
Line of credit fees		419
Miscellaneous		468,894
Total expenses		4,767,784
Net investment loss		(1,848,460	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		6,691,726
Investments in affiliated issuers		569,019
Swap agreements		21,428,914
Futures contracts		3,515,383
Net realized gain		32,205,042
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(4,136,774	)
Investments in affiliated issuers		10,093
Swap agreements		(3,270,327	)
Futures contracts		(1,954,435	)
Net change in unrealized appreciation (depreciation)		(9,351,443	)
Net realized and unrealized gain		22,853,599
Net increase in net assets resulting from operations	$	21,005,139

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

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

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,848,460	)	$	(1,703,514	)
Net realized gain on investments		32,205,042			6,489,628
Net change in unrealized appreciation (depreciation) on investments		(9,351,443	)		10,455,204
Net increase in net assets resulting from operations		21,005,139			15,241,318
Distributions to shareholders from:
Net investment income
A-Class		(105,676	)		(371,618	)
C-Class		(27,189	)		(81,569	)
H-Class		(5,223,520	)		(7,985,052	)
Total distributions to shareholders		(5,356,385	)		(8,438,239	)
Capital share transactions:
Proceeds from sale of shares
A-Class		27,016,333			146,402,399
C-Class		4,531,301			6,136,367
H-Class		1,395,562,354			2,450,058,825
Distributions reinvested
A-Class		88,026			324,878
C-Class		25,492			77,774
H-Class		5,178,647			7,939,241
Cost of shares redeemed
A-Class		(22,530,532	)		(143,631,198	)
C-Class		(1,772,328	)		(7,731,465	)
H-Class		(1,636,735,997	)		(2,304,764,599	)
Net increase (decrease) from capital share transactions		(228,636,704	)		154,812,222
Net increase (decrease) in net assets		(212,987,951	)		161,615,301
Net assets:
Beginning of period		796,825,120			635,209,819
End of period	$	583,837,170		$	796,825,120
Accumulated net investment loss at end of period	$	(1,848,460	)	$	(5,356,385	)
Capital share activity:
Shares sold
A-Class		1,139,912			6,185,339
C-Class		209,027			292,032
H-Class		58,412,139			106,740,553
Shares issued from reinvestment of distributions
A-Class		3,732			14,262
C-Class		1,188			3,739
H-Class		219,620			348,212
Shares redeemed
A-Class		(952,175	)		(6,118,943	)
C-Class		(81,713	)		(365,790	)
H-Class		(69,249,581	)		(99,505,770	)
Net increase (decrease) in shares		(10,297,851	)		7,593,634

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.32		$	23.84		$	22.89		$	25.16		$	22.93		$	21.98
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.09	)		(.15	)		(.30	)		(.22	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		1.44			.46			1.10			2.13			3.13			1.77
Total from investment operations		1.35			.37			.95			1.83			2.91			1.50
Less distributions from:
Net investment income		(.19	)		(.89	)		—			(1.14	)		(.43	)		(.55	)
Net realized gains		—			—			—			(2.96	)		(.25	)		—
Total distributions		(.19	)		(.89	)		—			(4.10	)		(.68	)		(.55	)
Net asset value, end of period	$	24.48		$	23.32		$	23.84		$	22.89		$	25.16		$	22.93
Total Returnc		5.81	%		1.66	%		4.06	%		7.53	%		12.86	%		6.94	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,057		$	11,787		$	10,123		$	12,499		$	10,777		$	11,890
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.38	%)		(0.63	%)		(1.21	%)		(0.92	%)		(1.21	%)
Total expensesd		1.50	%		1.49	%		1.50	%		1.53	%		1.50	%		1.49	%
Portfolio turnover rate		45	%		521	%		393	%		205	%		95	%		583	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	21.25		$	22.01		$	21.29		$	23.83		$	21.92		$	21.19
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.19	)		(.27	)		(.44	)		(.37	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		1.31			.32			.99			2.00			2.96			1.73
Total from investment operations		1.14			.13			.72			1.56			2.59			1.28
Less distributions from:
Net investment income		(.19	)		(.89	)		—			(1.14	)		(.43	)		(.55	)
Net realized gains		—			—			—			(2.96	)		(.25	)		—
Total distributions		(.19	)		(.89	)		—			(4.10	)		(.68	)		(.55	)
Net asset value, end of period	$	22.20		$	21.25		$	22.01		$	21.29		$	23.83		$	21.92
Total Returnc		5.38	%		0.70	%		3.33	%		6.74	%		11.98	%		6.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,963		$	2,020		$	3,632		$	5,100		$	6,958		$	7,343
Ratios to average net assets:
Net investment income (loss)		(1.55	%)		(0.87	%)		(1.25	%)		(1.89	%)		(1.62	%)		(2.10	%)
Total expensesd		2.25	%		2.24	%		2.25	%		2.28	%		2.27	%		2.25	%
Portfolio turnover rate		45	%		521	%		393	%		205	%		95	%		583	%

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.31		$	23.90		$	22.94		$	25.12		$	22.90		$	21.95
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.15	)		(.19	)		(.24	)		(.24	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		1.41			.45			1.15			2.16			3.14			1.78
Total from investment operations		1.34			.30			.96			1.92			2.90			1.50
Less distributions from:
Net investment income		(.19	)		(.89	)		—			(1.14	)		(.43	)		(.55	)
Net realized gains		—			—			—			(2.96	)		(.25	)		—
Total distributions		(.19	)		(.89	)		—			(4.10	)		(.68	)		(.55	)
Net asset value, end of period	$	24.46		$	23.31		$	23.90		$	22.94		$	25.12		$	22.90
Total Returnc		5.77	%		1.36	%		4.14	%		7.86	%		12.83	%		6.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	561,817		$	783,018		$	621,455		$	87,315		$	434,113		$	266,950
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		(0.64	%)		(0.81	%)		(0.97	%)		(0.99	%)		(1.26	%)
Total expensesd		1.50	%		1.49	%		1.46	%		1.53	%		1.51	%		1.49	%
Portfolio turnover rate		45	%		521	%		393	%		205	%		95	%		583	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

FUND PROFILE (Unaudited) September 30, 2016

INVERSE HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlate, before fees and expenses, to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	4.9%
Guggenheim Strategy Fund I	4.9%
Total	9.8%
“Largest Holdings” excludes any temporary cash or derivative investments.

168 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 9.8%
Guggenheim Strategy Fund II1		49,983	$	1,246,572
Guggenheim Strategy Fund I1		48,999		1,224,497
Total Mutual Funds
(Cost $2,455,598)				2,471,069
	Face Amount
REPURCHASE AGREEMENTS††,2 - 88.4%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	12,508,731		12,508,731
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		9,931,995		9,931,995
Total Repurchase Agreements
(Cost $22,440,726)				22,440,726
Total Investments - 98.2%
(Cost $24,896,324)			$	24,911,795
Other Assets & Liabilities, net - 1.8%				463,433
Total Net Assets - 100.0%			$	25,375,228

	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2016 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $22,363,188)		184	$	(66,569	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS PROTECTION PURCHASED††
Index	Counterparty	Exchange	Protection Premium Rate	Maturity Date	Notional Principal		Notional Value		Upfront Premiums Received			Unrealized Depreciation
CDX.NA.HY.27 Index	Barclays Bank plc	ICE	5.00%	12/20/21	$	13,400,000	$	13,994,290	$	(472,542	)	$	(121,748	)
CDX.NA.HY.27 Index	Goldman Sachs International	ICE	5.00%	12/20/21		11,000,000		11,487,850		(377,575			(110,275	)
									$	(850,117	)	$	(232,023	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	CDX.NA.HY.26 Index — Credit Default Swap North America High Yield Series 26 Index
	ICE — Intercontinental Exchange
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
INVERSE HIGH YIELD STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Mutual Funds	$	2,471,069	$	—	$	—	$	—	$	—	$	2,471,069
Repurchase Agreements		—		—		22,440,726		—		—		22,440,726
Total	$	2,471,069	$	—	$	22,440,726	$	—	$	—	$	24,911,795
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Credit Default Swaps	$	—	$	—	$	—	$	232,023	$	—	$	232,023
Interest Rate Futures Contracts		—		66,569		—		—		—		66,569
Total	$	—	$	66,569	$	—	$	232,023	$	—	$	298,592

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in affiliated issuers, at value (cost $2,455,598)	$	2,471,069
Repurchase agreements, at value (cost $22,440,726)		22,440,726
Total investments (cost $24,896,324)		24,911,795
Segregated cash with broker		2,000,396
Receivables:
Variation margin		34,499
Fund shares sold		18,234
Dividends		3,822
Interest		820
Total assets		26,969,566
Liabilities:
Unrealized depreciation on swap agreements		232,023
Unamortized upfront premiums received on credit default swaps		850,117
Payable for:
Fund shares redeemed		421,099
Interest		38,478
Securities purchased		17,858
Management fees		16,385
Distribution and service fees		6,076
Transfer agent and administrative fees		5,462
Portfolio accounting fees		2,185
Miscellaneous		4,655
Total liabilities		1,594,338
Commitments and contingent liabilities (Note 13)		—
Net assets	$	25,375,228
Net assets consist of:
Paid in capital	$	44,594,107
Accumulated net investment loss		(634,302	)
Accumulated net realized loss on investments		(18,301,456	)
Net unrealized depreciation on investments		(283,121	)
Net assets	$	25,375,228
A-Class:
Net assets	$	1,202,251
Capital shares outstanding*		17,731
Net asset value per share*	$	67.80
Maximum offering price per share (Net asset value divided by 95.25%)*	$	71.18
C-Class:
Net assets	$	981,264
Capital shares outstanding*		15,392
Net asset value per share*	$	63.75
H-Class:
Net assets	$	23,191,713
Capital shares outstanding*		334,748
Net asset value per share*	$	69.28

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	30,063
Interest		23,247
Total investment income		53,310
Expenses:
Management fees		78,550
Transfer agent and administrative fees		26,184
Distribution and service fees:
A-Class		3,731
C-Class		6,768
H-Class		20,760
Portfolio accounting fees		10,473
Custodian fees		1,240
Trustees’ fees**		529
Miscellaneous		15,357
Total expenses		163,592
Net investment loss		(110,282	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		14,170
Swap agreements		(2,650,018	)
Futures contracts		(571,622	)
Net realized loss		(3,207,470	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		15,859
Swap agreements		(142,177	)
Futures contracts		(60,869	)
Net change in unrealized appreciation (depreciation)		(187,187	)
Net realized and unrealized loss		(3,394,657	)
Net decrease in net assets resulting from operations	$	(3,504,939	)

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:4 reverse share split, effective November 4, 2016 — See Note 12.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 171

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(110,282	)	$	(391,713	)
Net realized loss on investments		(3,207,470	)		(137,828	)
Net change in unrealized appreciation (depreciation) on investments		(187,187	)		(70,380	)
Net decrease in net assets resulting from operations		(3,504,939	)		(599,921	)
Capital share transactions:
Proceeds from sale of shares
A-Class		28,863,809			259,628,046
C-Class		685,536			6,506,143
H-Class		805,512,111			1,025,905,429
Cost of shares redeemed
A-Class		(30,035,301	)		(256,881,526	)
C-Class		(1,279,433	)		(5,476,553	)
H-Class		(781,673,740	)		(1,025,503,843	)
Net increase from capital share transactions		22,072,982			4,177,696
Net increase in net assets		18,568,043			3,577,775
Net assets:
Beginning of period		6,807,185			3,229,410
End of period	$	25,375,228		$	6,807,185
Accumulated net investment loss at end of period	$	(634,302	)	$	(524,020	)
Capital share activity:*
Shares sold
A-Class		407,418			3,394,379
C-Class		10,440			90,940
H-Class		11,301,366			13,339,921
Shares redeemed
A-Class		(426,535	)		(3,362,360	)
C-Class		(19,473	)		(76,538	)
H-Class		(11,001,180	)		(13,332,620	)
Net increase in shares		272,036			53,722

* Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 12.

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 31, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	71.69		$	76.94		$	85.28		$	95.91		$	112.61		$	127.96
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.80	)		(.84	)		(1.40	)		(1.48	)		(1.72	)
Net gain (loss) on investments (realized and unrealized)		(3.61	)		(4.45	)		(7.50	)		(9.23	)		(15.22	)		(13.63	)
Total from investment operations		(3.89	)		(5.25	)		(8.34	)		(10.63	)		(16.70	)		(15.35	)
Net asset value, end of period	$	67.80		$	71.69		$	76.94		$	85.28		$	95.91		$	112.61
Total Returnc		(5.41	%)		(6.81	%)		(9.59	%)		(11.30	%)		(14.81	%)		(11.98	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,202		$	2,642		$	372		$	5,155		$	157		$	556
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(1.07	%)		(1.02	%)		(1.52	%)		(1.38	%)		(1.39	%)
Total expensesd		1.51	%		1.50	%		1.52	%		1.54	%		1.49	%		1.51	%
Portfolio turnover rate		408	%		1,722	%		784	%		—			—			—

C-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 31, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	67.67		$	73.24		$	81.11		$	91.93		$	108.83		$	124.49
Income (loss) from investment operations:
Net investment income (loss)b		(.48	)		(1.16	)		(1.20	)		(2.00	)		(2.12	)		(2.20	)
Net gain (loss) on investments (realized and unrealized)		(3.44	)		(4.41	)		(6.67	)		(8.82	)		(14.78	)		(13.46	)
Total from investment operations		(51.73	)		(5.57	)		(7.87	)		(10.82	)		(16.90	)		(15.66	)
Net asset value, end of period	$	63.75		$	67.67		$	73.24		$	81.11		$	91.93		$	108.83
Total Returnc		(5.85	%)		(7.59	%)		(9.49	%)		(11.97	%)		(15.51	%)		(12.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	981		$	1,653		$	734		$	1,561		$	2,037		$	693
Ratios to average net assets:
Net investment income (loss)		(1.44	%)		(1.60	%)		(1.53	%)		(2.28	%)		(2.13	%)		(1.87	%)
Total expensesd		2.27	%		2.25	%		2.25	%		2.30	%		2.25	%		2.26	%
Portfolio turnover rate		408	%		1,722	%		784	%		—			—			—

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 173

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 31, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	72.70		$	77.91		$	85.66		$	96.16		$	112.88		$	128.15
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.64	)		(.76	)		(1.40	)		(1.44	)		(1.88	)
Net gain (loss) on investments (realized and unrealized)		(3.06	)		(4.57	)		(6.99	)		(9.10	)		(15.28	)		(13.39	)
Total from investment operations		(3.42	)		(5.21	)		(7.75	)		(10.50	)		(16.72	)		(15.27	)
Net asset value, end of period	$	69.28		$	72.70		$	77.91		$	85.66		$	96.16		$	112.88
Total Returnc		(4.79	%)		(6.67	%)		(8.84	%)		(11.11	%)		(14.81	%)		(11.92	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,192		$	2,513		$	2,124		$	2,453		$	9,208		$	13,357
Ratios to average net assets:
Net investment income (loss)		(1.07	%)		(0.84	%)		(0.93	%)		(1.50	%)		(1.38	%)		(1.51	%)
Total expensesd		1.51	%		1.50	%		1.51	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		408	%		1,722	%		784	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:4 reverse share split effective November 4, 2016 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

Holdings Diversification (Market Exposure as % of Net Assets)

FAND – Federal Agency Discount Note
FAN – Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 175

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 40.2%
Federal Farm Credit Bank1
0.59% due 08/21/172	$	60,000,000	$	60,016,164
0.65% due 05/30/172		10,860,000		10,868,032
0.60% due 05/23/172		10,000,000		10,003,926
0.50% due 04/10/172		5,000,000		4,999,999
Total Federal Farm Credit Bank				85,888,121
Farmer Mac1
0.64% due 03/21/172		50,000,000		50,034,294
0.70% due 05/11/172		12,000,000		12,012,436
Total Farmer Mac				62,046,730
Federal Home Loan Bank1
1.63% due 12/09/16		12,960,000		12,988,472
1.00% due 06/09/17		12,690,000		12,724,317
0.61% due 02/24/172		10,000,000		10,008,338
1.00% due 06/21/17		5,970,000		5,986,921
0.63% due 03/20/17		2,300,000		2,300,442
Total Federal Home Loan Bank				44,008,490
Freddie Mac3
1.00% due 06/29/17		10,000,000		10,028,465
0.75% due 05/26/17		2,500,000		2,502,363
Total Freddie Mac				12,530,828
Fannie Mae3
5.38% due 06/12/17		1,050,000		1,084,789
Total Federal Agency Notes
(Cost $205,558,958)				205,558,958
FEDERAL AGENCY DISCOUNT NOTES†† - 11.5%
Federal Home Loan Bank1
0.53% due 03/10/17		29,000,000		28,931,947
0.50% due 12/14/16		6,000,000		5,993,833
0.53% due 11/18/16		4,060,000		4,057,131
Total Federal Home Loan Bank				38,982,911
Federal Farm Credit Bank1
0.61% due 07/03/17		15,000,000		14,930,104
Fannie Mae3
0.60% due 06/01/17		4,750,000		4,730,824
Total Federal Agency Discount Notes
(Cost $58,643,839)				58,643,839
REPURCHASE AGREEMENTS††,4 - 47.7%
Individual Repurchase Agreements
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/01/16 (secured by U.S. Treasury Bond at a rate of 0.00% and maturing 11/15/2039 as collateral with a value of $160,709,808) to be repurchased at $157,558,695		157,558,695		157,558,695
UMB Financial Corporation issued 09/30/16 at 0.38% due 10/31/16 (secured by Federal Home Loan Mortgage Corp. Agency Notes, 0.75%-1.30% 10/11/2010-1/12/2018 with a value of $47,489,586, Federal Home Loan Bank Agency Notes, 0.63-0.88% 12/28/2016-5/24/2017 with the value of $25,027,667, Federal Farm Credit Bank Agency Notes, 0.60-1.00% 3/11/2017-5/17-2017 with a value of 38,075,497) to be repurchased at $85,852,740		85,852,740		85,852,740
Total Repurchase Agreements
(Cost $243,411,435)				243,411,435
Total Investments - 99.4%
(Cost $507,614,232)			$	507,614,232
Other Assets & Liabilities, net - 0.6%				3,115,013
Total Net Assets - 100.0%			$	510,729,245

††	Value determined based on Level 2 inputs — See Note 4.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Variable rate security. Rate indicated is rate effective at September 30, 2016.
3	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
4	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
U.S. GOVERNMENT MONEY MARKET FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Federal Agency Discount Notes	$	—	$	58,643,839	$	—	$	58,643,839
Federal Agency Notes		—		205,558,958		—		205,558,958
Repurchase Agreements		—		243,411,435		—		243,411,435
Total	$	—	$	507,614,232	$	—	$	507,614,232

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

For the period ended September 30, 2016, there were no transfers between levels.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 177

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $264,202,797)	$	264,202,797
Repurchase agreements, at value (cost $243,411,435)		243,411,435
Total investments (cost $507,614,232)		507,614,232
Receivables:
Fund shares sold		27,891,129
Interest		254,504
Total assets		535,759,865
Liabilities:
Overdraft due to custodian bank		1,916
Payable for:
Fund shares redeemed		24,808,404
Transfer agent and administrative fees		53,596
Portfolio accounting fees		37,521
Management fees		6,981
Miscellaneous		122,202
Total liabilities		25,030,620
Commitments and contingent liabilities (Note 13)		—
Net assets	$	510,729,245
Net assets consist of:
Paid in capital	$	510,096,746
Accumulated net investment loss		(7,183	)
Accumulated net realized gain on investments		639,682
Net assets	$	510,729,245
Capital shares outstanding		510,674,648
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Interest	$	1,270,476
Total investment income		1,270,476
Expenses:
Management fees		1,626,858
Transfer agent and administrative fees		650,746
Portfolio accounting fees		256,069
Registration fees		235,044
Custodian fees		38,324
Trustees’ fees*		26,351
Line of credit fees		1,414
Miscellaneous		238,470
Total expenses		3,073,276
Less:
Expenses waived by service company		(178,180	)
Expenses waived by Adviser		(1,617,556	)
Total waived expenses		(1,795,736	)
Net expenses		1,277,540
Net investment loss		(7,064	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		310,331
Net realized gain		310,331
Net increase in net assets resulting from operations	$	303,267

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

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(7,064	)	$	342
Net realized gain on investments		310,331			347,141
Net increase in net assets resulting from operations		303,267			347,483
Distributions to shareholders from:
Net investment income		(119	)		(342	)
Total distributions to shareholders		(119	)		(342	)
Capital share transactions:
Proceeds from sale of shares		5,007,181,828			12,102,235,298
Distributions reinvested		123			264
Cost of shares redeemed		(5,140,627,904	)		(12,153,259,388	)
Net decrease from capital share transactions		(133,445,953	)		(51,023,826	)
Net decrease in net assets		(133,142,805	)		(50,676,685	)
Net assets:
Beginning of period		643,872,050			694,548,735
End of period	$	510,729,245		$	643,872,050
Accumulated net investment loss at end of period	$	(7,183	)	$	—
Capital share activity:
Shares sold		5,007,181,827			12,102,235,298
Shares issued from reinvestment of distributions		92			270
Shares redeemed		(5,140,626,217	)		(12,153,259,388	)
Net decrease in shares		(133,444,298	)		(51,023,820	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 179

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGHLIGHTS

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

Money Market Classb	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Period Ended March 31, 2013
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)c		—	c		—	c		—	c		—	c		—	c
Net gain (loss) on investments (realized and unrealized)		—	c		—	c		—	c		—	c		—	c
Total from investment operations		—	c		—	c		—	c		—	c		—	c
Less distributions from:
Net investment income		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net realized gains		—			(—	)c		(—	)c		—			(—	)c
Total distributions		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Returng		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	510,729		$	643,872		$	694,549		$	780,135		$	848,370
Ratios to average net assets:
Net investment income (loss)		0.00	%e		0.00	%e		0.00	%e		0.00	%e		0.00	%e
Total expenses		0.71	%		0.91	%		0.92	%		0.93	%		0.95	%
Net expensesd		0.30	%		0.22	%		0.08	%		0.09	%		0.17	%
Portfolio turnover rate		—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Effective June 15, 2012, the Fund’s Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares and Investor 2 Class shares were converted into the newly created Money Market Class. The financial highlights for periods prior to that date reflect the performance of the former Investor Class.
c	Less than $0.01 per share.
d	Net expense information reflects the expense ratios after expense waivers.
e	Less that 0.01%.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2016, the Trust consisted of fifty-three funds.

This report covers the Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, and U.S. Government Money Market Fund (the “Funds”). Only Investor Class, Advisor Class, A-Class, C-Class, H-Class and Money Market Class shares had been issued by the Funds.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities; RFS ceased to be an affiliate of GI as of October 4, 2016, when it was acquired by MUFG Investor Services. In connection with its acquisition, RFS changed its name to MUFG Investor Services (US), LLC (“MUIS”). This change has no impact on the financial statements of the Funds.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Russell 2000^® Fund and the S&P 500^® Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the September 30, 2016, afternoon NAV.

A. The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies (“mutual funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds (“ETFs”) and closed-end investment companies (“CEFs”) are valued at the last quoted sales price.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, which approximates market value. With the exception of the U.S. Government Money Market Fund, U.S. Government securities are valued by either independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of OTC swap agreements and credit default swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI under the direction of the Board using methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

C. When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of

182 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

D. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

E. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Credit default swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Upfront payments received or made by a Fund on credit default swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

F. The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

G. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

H. Dividends from net investment income are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Funds and distributions of net realized gains, if any, in all Funds are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. GAAP.

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

J. The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

K. Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Short Sales

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations. The Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

184 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	19,775,144	$	—
S&P 500® Fund	Index exposure, Liquidity		10,921,525		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		2,757,122
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		6,813,335		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		3,133,245
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		6,674,480		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		218,720
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		1,390,080		—
Russell 2000® Fund	Index exposure, Leverage, Liquidity		907,630		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		464,275
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		2,093,633		—
Government Long Bond 1.2x Strategy Fund	Index exposure, Duration, Leverage, Liquidity		64,931,797		—
Inverse Government Long Bond Strategy Fund	Index exposure, Duration, Liquidity		—		47,007,641
High Yield Strategy Fund	Index exposure, Duration, Liquidity		303,992,012		—
Inverse High Yield Strategy Fund	Index exposure, Duration, Liquidity		—		36,475,113

Swaps

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A fund utilizing a total return index swap bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying index declines in value.

The following table represents the Funds’ use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	191,784,769	$	—
S&P 500® Fund	Index exposure, Liquidity		56,733,287		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		149,408,668
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		83,860,571		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		24,086,916
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		13,061,734		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		2,445,342
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		6,873,140		—
Russell 2000® Fund	Index exposure, Leverage, Liquidity		14,317,879		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		36,863,556
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		8,688,534		—
High Yield Strategy Fund	Index exposure, Duration, Liquidity		46,284,486		—

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. In accordance with its principal investment strategy, the Funds enter into credit default swaps as a seller of protection primarily to gain exposure similar to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Principal reflects the maximum potential amount the Fund could be required to pay as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
High Yield Strategy Fund	Index exposure, Duration, Liquidity	$	352,137,310	$	—
Inverse High Yield Strategy Fund	Index exposure, Duration, Liquidity		—		43,670,968

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2016:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin	Variation margin
Equity/Credit contracts	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2016:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swap Equity Contracts		Swaps Interest Rate Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2016
Nova Fund	$	490,032	$	1,578,966	$	—	$	—	$	—	$	2,068,998
S&P 500® Fund		14,225		275,576		—		—		—		289,801
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		104,661		177,375		—		—		—		282,036
Mid-Cap 1.5x Strategy Fund		9,455		84,443		—		—		—		93,898
Inverse Mid-Cap Strategy Fund		—		152		—		—		—		152
Russell 2000® 1.5x Strategy Fund		11,035		34,520		—		—		—		45,555
Russell 2000® Fund		36,008		41,334		—		—		—		77,342
Inverse Russell 2000® Strategy Fund		—		14,098		—		—		—		14,098
Dow Jones Industrial Average® Fund		9,813		39,820		—		—		—		49,633
Government Long Bond 1.2x Strategy Fund		—		—		—		286,513		—		286,513
Inverse Government Long Bond Strategy Fund		—		—		—		500,735		—		500,735
High Yield Strategy Fund		—		—		477,275		874,303		4,492,739		5,844,317

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swap Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2016
Nova Fund	$	—	$	54,685	$	—	$	—	$	54,685
S&P 500® Fund		—		10,380		—		—		10,380
Inverse S&P 500® Strategy Fund		10,776		1,278,115		—		—		1,288,891
Inverse NASDAQ-100® Strategy Fund		406		106,391		—		—		106,797
Mid-Cap 1.5x Strategy Fund		—		16,127		—		—		16,127
Inverse Mid-Cap Strategy Fund		—		8,004		—		—		8,004
Russell 2000® 1.5x Strategy Fund		—		16,884		—		—		16,884
Russell 2000® Fund		—		5,203		—		—		5,203
Inverse Russell 2000® Strategy Fund		5,352		30,573		—		—		35,925
Dow Jones Industrial Average® Fund		—		1,542		—		—		1,542
Inverse High Yield Strategy Fund		—		—		66,569		232,023		298,592

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2016:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2016:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swap Equity Contracts			Interest Rate Contracts		Futures Interest Rate Contracts			Swaps Credit Default Contracts			Total Value at September 30, 2016
Nova Fund	$	709,524		$	7,288,690		$	—	$	—		$	—		$	7,998,214
S&P 500® Fund		848,586			1,796,786			—		—			—			2,645,372
Inverse S&P 500® Strategy Fund		(1,807,306	)		(10,664,125	)		—		—			—			(12,471,431	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(13,742	)		865,472			—		—			—			851,730
Inverse NASDAQ-100® Strategy Fund		(780,104	)		(4,354,267	)		—		—			—			(5,134,371	)
Mid-Cap 1.5x Strategy Fund		206,385			977,070			—		—			—			1,183,454
Inverse Mid-Cap Strategy Fund		(39,702	)		(265,179	)		—		—			—			(304,881	)
Russell 2000® 1.5x Strategy Fund		140,681			1,084,879			—		—			—			1,225,560
Russell 2000® Fund		383,050			1,217,787			—		—			—			1,600,837
Inverse Russell 2000® Strategy Fund		12,480			(2,320,856	)		—		—			—			(2,308,376	)
Dow Jones Industrial Average® Fund		72,641			(292,956	)		—		—			—			(220,315	)
Government Long Bond 1.2x Strategy Fund		—			—			—		4,413,413			—			4,413,413
Inverse Government Long Bond Strategy Fund		—			—			—		(7,291,824	)		—			(7,291,824	)
High Yield Strategy Fund		(27	)		—			4,158,953		3,515,410			17,269,961			24,944,297
Inverse High Yield Strategy Fund		—			—			—		(571,622	)		(2,650,018	)		3,221,640

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swap Equity Contracts			Interest Rate Contracts		Futures Interest Rate Contracts			Swaps Credit Default Contracts			Total
Nova Fund	$	325,968		$	912,532		$	—	$	—		$	—		$	1,238,500
S&P 500® Fund		(260,103	)		(166,449	)		—		—			—			(426,552	)
Inverse S&P 500® Strategy Fund		(12,114	)		(98,977	)		—		—			—			(111,091	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		81,300			147,847			—		—			—			229,147
Inverse NASDAQ-100® Strategy Fund		246,930			965,015			—		—			—			1,211,945
Mid-Cap 1.5x Strategy Fund		(139,985	)		(14,768	)		—		—			—			(154,753	)
Inverse Mid-Cap Strategy Fund		24,045			26,752			—		—			—			50,797
Russell 2000® 1.5x Strategy Fund		733			(74,707	)		—		—			—			(73,974	)
Russell 2000® Fund		(5,303	)		(188,214	)		—		—			—			(193,517	)
Inverse Russell 2000® Strategy Fund		(2,853	)		326,387			—		—			—			323,534
Dow Jones Industrial Average® Fund		(150,905	)		(4,967	)		—		—			—			(155,872	)
Government Long Bond 1.2x Strategy Fund		—			—			—		(1,218,369	)		—			(1,218,369	)
Inverse Government Long Bond Strategy Fund		—			—			—		181,754			—			181,754
High Yield Strategy Fund		—			—			477,275		(1,954,435	)		(3,747,602	)		(5,224,762	)
Inverse High Yield Strategy Fund		—			—			—		(60,869	)		(142,177	)		(203,046	)

In conjunction with the use of short sales and derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Funds.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

188 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

3. Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
Nova Fund	0.75%
S&P 500® Fund	0.75%
Inverse S&P 500® Strategy Fund	0.90%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	0.90%
Inverse NASDAQ-100® Strategy Fund	0.90%
Mid-Cap 1.5x Strategy Fund	0.90%
Inverse Mid-Cap Strategy Fund	0.90%
Russell 2000® 1.5x Strategy Fund	0.90%
Russell 2000® Fund	0.75%
Inverse Russell 2000® Strategy Fund	0.90%
Dow Jones Industrial Average® Fund	0.75%
Government Long Bond 1.2x Strategy Fund	0.50%
Inverse Government Long Bond Strategy Fund	0.90%
High Yield Strategy Fund	0.75%
Inverse High Yield Strategy Fund	0.75%
U.S. Government Money Market Fund	0.50%

GI has contractually agreed to reduce fees and/or reimburse expenses for the Monthly Rebalance NASDAQ-100 2x Strategy Fund to the extent necessary to keep net operating expenses for A-Class , C-Class and H-Class shares ( including Rule 12b-1 fees if any) (excluding brokerage, dividends on securities sold short, acquired fund fees and expenses, interest, taxes, litigation, indemnification, and extraordinary expenses) from exceeding 1.35%, 2.10% and 1.35% of the Fund’s A-Class, C-Class and H-Class shares average daily net assets, respectively. The Total Annual Fund Operating Expenses After Fee Waiver and /or Expense Reimbursement includes Excluded Expenses and, thus, from time to time may be higher than 1.35%, 2.10% and 1.35%, respectively. This agreement may be terminated only with the approval of the Fund’s Board of Trustees.

RFS provided transfer agent and administrative services to the Funds for fees calculated at the annualized rates below, based on the average daily net assets of the Funds. For these services, RFS received the following:

Fund	Transfer Agent and Administrative Fees (as a % of Net Assets)
Government Long Bond 1.2x Strategy Fund	0.20%
U.S. Government Money Market Fund	0.20%
Remaining Funds	0.25%

RFS also provided accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund:

Fund	Accounting Fees (as a % of Net Assets)
S&P 500® Fund	0.15%
Russell 2000® Fund	0.15%
Remaining Funds
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

GI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

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

GI and its affiliates have voluntarily agreed to waive their fees, including but not limited to accounting, shareholder investor services and investment advisory fees, in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. GI or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When shareholder investor services fees are waived, dealer compensation will be reduced to the extent of such waiver.

For the period ended September 30, 2016, GFD retained sales charges of $145,031 relating to sales of A-Class shares of the Trust.

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

4. Fair Value Measurement

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

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

190 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2016, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
Royal Bank of Canada					U.S. Treasury Notes
0.36%					1.38% - 1.50
Due 10/03/16	$	479,657,128	$	479,671,517	05/31/20%	$	370,488,200	$	380,230,860
					U.S. TIP Notes
					0.13% - 0.25%
					07/15/22 - 01/15/25		104,007,100		109,019,578
							474,495,300		489,250,438
HSBC Securities, Inc.					U.S. Treasury Strips
0.38%					0.00%
Due 10/03/16		469,487,376		469,502,243	11/15/39		803,943,000		478,877,146

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment adviser, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

6. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Nova Fund	Swap equity contracts	$	1,578,966	$	—	$	1,578,966	$	—	$	—	$	1,578,966
S&P 500® Fund	Swap equity contracts		275,576		—		275,576		—		—		275,576
Monthly Rebalance NASDAQ-100 2x Strategy Fund	Swap equity contracts		177,375		—		177,375		—		—		177,375
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		84,443		—		84,443		—		—		84,443
Inverse Mid-Cap Strategy Fund	Swap equity contracts		152		—		152		—		—		152
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		34,520		—		34,520		—		—		34,520
Russell 2000® Fund	Swap equity contracts		41,334		—		41,334		—		—		41,334
Inverse Russell 2000® Strategy Fund	Swap equity contracts		14,098		—		14,098		—		—		14,098
Dow Jones Industrial Average® Fund	Swap equity contracts		39,820		—		39,820		—		—		39,820
High Yield Strategy Fund	Interest rate contracts		477,275		—		477,275		—		—		477,275

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
Nova Fund	Swap equity contracts	$	54,685	$	—	$	54,685	$	—	$	54,685	$	—
S&P 500® Fund	Swap equity contracts		10,380		—		10,380		—		10,380		—
Inverse S&P 500® Strategy Fund	Swap equity contracts		1,278,115		—		1,278,115		—		1,278,115		—
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		106,391		—		106,391		—		106,391		—
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		16,127		—		16,127		—		16,127		—
Inverse Mid-Cap Strategy Fund	Swap equity contracts		8,004		—		8,004		—		8,004		—
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		16,884		—		16,884		—		16,884		—
Russell 2000® Fund	Swap equity contracts		5,203		—		5,203		—		5,203		—
Inverse Russell 2000® Strategy Fund	Swap equity contracts		30,573		—		30,573		—		30,573		—
Dow Jones Industrial Average® Fund	Swap equity contracts		1,542		—		1,542		—		1,542		—

¹ Exchange-traded futures and centrally cleared swaps are excluded from these reported amounts.

192 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

7. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

At September 30, 2016, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Nova Fund	$	263,608,777	$	3,794,005	$	(1,771,351	)	$	2,022,654
S&P 500® Fund		198,383,994		23,355,408		(1,126,261	)		22,229,147
Monthly Rebalance NASDAQ-100® 2x Strategy		48,929,987		1,283,852		(658,895	)		624,957
Inverse S&P 500® Strategy Fund		131,915,078		113,644		(25,235	)		88,409
NASDAQ-100® Fund		571,633,461		260,389,545		(4,091,089	)		256,298,456
Inverse NASDAQ-100® Strategy Fund		11,535,066		21,371		(195	)		21,176
Mid-Cap 1.5x Strategy Fund		20,374,352		1,258,138		(95,056	)		1,163,082
Inverse Mid-Cap Strategy Fund		909,666		1,401		—			1,401
Russell 2000® 1.5x Strategy Fund		9,512,268		691,964		(152,540	)		539,424
Russell 2000® Fund		38,130,038		1,349,891		(560,843	)		789,048
Inverse Russell 2000® Strategy Fund		8,148,612		8,258		(580	)		7,678
Dow Jones Industrial Average Fund		39,233,599		—		(346,532	)		(346,532	)
Government Long Bond 1.2x Strategy Fund		87,125,358		—		(2,345,651	)		(2,345,651	)
Inverse Government Long Bond Strategy Fund		279,217,897		131,732		(24,509	)		107,223
High Yield Strategy Fund		564,790,704		176,109		(2,606	)		173,503
Inverse High Yield Strategy Fund		24,896,324		15,471		—			15,471
U.S. Government Money Market Fund		507,614,232		—		—			—

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

8. Securities Transactions

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Nova Fund	$	700,665,955	$	686,213,444
S&P 500® Fund		130,618,643		163,033,391
Inverse S&P 500® Strategy Fund		22,001,933		101,534,904
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		54,528,828		11,511,562
Inverse NASDAQ-100® Strategy Fund		27,857,549		32,097,837
Mid-Cap 1.5x Strategy Fund		31,327,968		30,879,700
Inverse Mid-Cap Strategy Fund		526,638		1,239,000
Russell 2000® 1.5x Strategy Fund		25,743,066		26,026,702
Russell 2000® Fund		55,855,367		43,518,318
Inverse Russell 2000® Strategy Fund		1,662,123		10,577,977
Dow Jones Industrial Average® Fund		116,825,185		125,668,460
Government Long Bond 1.2x Strategy Fund		62,858,440		82,160,000
Inverse Government Long Bond Strategy Fund		98,283,820		164,089,072
High Yield Strategy Fund		56,495,307		394,732,450
Inverse High Yield Strategy Fund		12,511,053		14,160,000
U.S. Government Money Market Fund		—		—

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	951,177,953	$	1,010,120,500
Inverse Government Long Bond Strategy Fund		1,378,203,609		7,324,059,938

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2016, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

9. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2015, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180415000857/gug63224-ncsr.htm.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Transactions during the period ended September 30, 2016, in which the portfolio company is an “affiliated person,” were as follows:

Affiliated issuers by Fund	Value 03/31/16		Additions		Reductions			Value 09/30/16		Shares 09/30/16		Investment Income		Realized Gain (Loss)
Nova Fund
Guggenheim Strategy Fund I	$	761,374	$	58,305,132	$	(47,129,992	)	$	12,044,643		481,979	$	109,845	$	54,026
Guggenheim Strategy Fund II		—		14,680,500		(4,202,000	)		10,534,842		422,407		69,271		686
	$	761,374	$	72,985,632	$	(51,331,992	)	$	22,579,485			$	179,116	$	54,712
Inverse S&P 500® Strategy Fund
Guggenheim Strategy Fund I	$	57,103,957	$	5,151,654	$	(54,050,000	)	$	8,450,262		338,146	$	218,122	$	69,676
Guggenheim Strategy Fund II		—		9,350,204		(500,000	)		8,900,469		356,875		64,289		101
	$	57,103,957	$	14,501,858	$	(54,550,000	)	$	17,350,731			$	282,411	$	69,777
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
Guggenheim Strategy Fund I	$	633,522	$	2,919,752	$	(445,000	)	$	3,114,537		124,631	$	7,867	$	705
Guggenheim Strategy Fund II		—		3,168,018		(58,000	)		3,114,907		124,896		8,265		51
	$	633,522	$	6,087,770	$	(503,000	)	$	6,229,444			$	16,132	$	756
Inverse NASDAQ-100® Strategy Fund
Guggenheim Strategy Fund I	$	5,940,393	$	22,699,746	$	(26,050,000	)	$	2,614,361		104,616	$	39,022	$	16,893
Guggenheim Strategy Fund II		—		5,157,803		(2,550,000	)		2,618,643		104,998		16,628		(786	)
	$	5,940,393	$	27,857,549	$	(28,600,000	)		5,233,004			$	55,650	$	16,107
Mid-Cap 1.5x Strategy Fund
Guggenheim Strategy Fund I	$	1,948,249	$	3,455,463	$	(3,280,000	)	$	2,136,164		85,481	$	11,868	$	3,390
Guggenheim Strategy Fund II		—		2,411,045		(279,000	)		2,138,806		85,758		8,525		164
	$	1,948,249	$	5,866,508	$	(3,559,000	)	$	4,274,970			$	20,393	$	3,554
Inverse Mid-Cap Strategy Fund
Guggenheim Strategy Fund I	$	980,068	$	252,593	$	(1,100,000	)	$	135,946		5,440	$	3,326	$	466
Guggenheim Strategy Fund II		—		274,045		(139,000	)		135,813		5,446		994		11
	$	980,068	$	526,638	$	(1,239,000	)	$	271,759			$	4,320	$	477
Russell 2000® 1.5x Strategy Fund
Guggenheim Strategy Fund I	$	57,101	$	4,843,937	$	(4,400,000	)	$	507,856		20,322	$	6,661	$	4,411
Guggenheim Strategy Fund II		—		1,305,204		(800,000	)		507,996		20,369		3,736		525
	$	57,101	$	6,149,141	$	(5,200,000	)	$	1,015,852			$	10,397	$	4,936
Inverse Russell 2000® Strategy Fund
Guggenheim Strategy Fund I	$	6,610,653	$	611,919	$	(6,630,000	)	$	609,191		24,377	$	15,740	$	14,645
Guggenheim Strategy Fund II		—		1,050,204		(450,000	)		604,038		24,220		5,016		242
	$	6,610,653	$	1,662,123	$	(7,080,000	)	$	1,213,229			$	20,756	$	14,887
Dow Jones Industrial Average® Fund
Guggenheim Strategy Fund I	$	3,861,421	$	3,407,058	$	(5,360,000	)	$	1,922,170		76,918	$	15,660	$	3,402
Guggenheim Strategy Fund II		—		2,575,401		(660,000	)		1,924,408		77,162		11,577		(153	)
	$	3,861,421	$	5,982,459	$	(6,020,000	)	$	3,846,578			$	27,237	$	3,249
Government Long Bond 1.2x Strategy Fund
Guggenheim Strategy Fund I	$	31,234,529	$	39,811,023	$	(66,605,000	)	$	4,545,237		181,882	$	88,815	$	94,238
Guggenheim Strategy Fund II		—		23,047,417		(15,555,000	)		7,554,969		302,926		67,940		15,695
	$	31,234,529	$	62,858,440	$	(82,160,000	)	$	12,100,206			$	156,755	$	109,933
Inverse Government Long Bond Strategy Fund
Guggenheim Strategy Fund I	$	40,271,414	$	67,366,659	$	(95,680,000	)	$	12,087,171		483,680	$	127,871	$	54,094
Guggenheim Strategy Fund II		—		30,917,160		(20,425,000	)		10,579,660		424,204		108,235		29,806
	$	40,271,414	$	98,283,819	$	(116,105,000	)	$	22,666,831			$	236,106	$	83,900

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Affiliated issuers by Fund	Value 03/31/16		Additions		Reductions			Value 09/30/16		Shares 09/30/16		Investment Income		Realized Gain (Loss)
High Yield Strategy Fund
Guggenheim Strategy Fund I	$	169,920,842	$	16,744,106	$	(174,877,987	)	$	12,063,914		482,750	$	254,434	$	342,654
Guggenheim Strategy Fund II		57,405,255		5,314,414		(52,404,000	)		10,581,556		424,281		241,734		226,365
Guggenheim Strategy Fund III		—		6,001,000		—			6,037,272		241,684		42,476		—
	$	227,326,097	$	28,059,520	$	(227,281,987	)	$	28,682,742			$	538,644	$	569,019
Inverse High Yield Strategy Fund
Guggenheim Strategy Fund I	$	2,056,929	$	7,105,041	$	(7,950,000	)	$	1,224,497		48,999	$	13,401	$	6,161
Guggenheim Strategy Fund II		2,033,059		5,406,012		(6,210,000	)		1,246,572		49,983		16,662		8,009
	$	4,089,988	$	12,511,053	$	(14,160,000	)	$	2,471,069			$	30,063	$	14,170

10. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2017. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2016. The Funds did not have any borrowings outstanding under this agreement at September 30, 2016.

The average daily balances borrowed for the period ended September 30, 2016, were as follows:

Fund	Average Daily Balance
Nova Fund	$	99,785
Inverse NASDAQ-100® Strategy Fund		12,006
Mid Cap 1.5x Strategy Fund		439
Russell 2000® 1.5X Strategy Fund		8,287
Russell 2000® Fund		21,148
Dow Jones Industrial Average® Fund		1,522
Government Long Bond 1.2x Strategy Fund		279,693
Inverse Government Long Bond Strategy Fund		144,977
High Yield Strategy Fund		65,948
U.S. Government Money Market Fund		222,610

11. Conversion of Advisor Class Shares and Class H Shares

Effective following the close of business on September 30, 2015, all outstanding Advisor Class shares of the Nova Fund, Inverse S&P 500^® Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Government Long Bond 1.2x Strategy Fund and Inverse Government Long Bond Strategy Fund converted into Class H shares of the Funds and the Funds no longer offer Advisor Class shares. The conversion of all outstanding Advisor Class shares was effected by exchanging shareholders Advisor Class shares for Class H shares. Advisor Class shareholders of the Funds received Class H shares of the Fund with a value equal to the value of their investment in Advisor Class shares of the Funds on September 30, 2015.

12. Subsequent Event

Reverse Share Splits

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

Fund	Effective Date	Split Type
Inverse S&P 500® Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split
Inverse NASDAQ-100® Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split
Inverse High Yield Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The effect of these transactions was to multiply the number of outstanding shares of the to divide the number of outstanding shares of the Inverse S&P 500^® Strategy Fund, Inverse NASDAQ-100^® Strategy Fund and the Inverse High Yield Strategy Fund by their respective reverse split ratio, resulting in a corresponding increase in the NAV. The share transactions presented in the statements of changes in net assets and the per share data in the financial highlights for each of the periods presented through September 30, 2016, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Portfolio Securities Loaned

Effective October 6, 2016, each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds’ securities lending agent. The loans would be collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of securities loaned as determined at the close of business on the preceding business day. The cash collateral received would be held in a separately managed account established for each respective Fund and maintained by the lending agent exclusively for the investment of securities lending cash collateral on behalf of each Fund. The separately managed accounts will invest in short-term investments valued at amortized cost, which approximates market value. Each Fund will receive compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees paid to the lending agent. Such compensation will be accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned will be accounted for in the same manner as other dividend and interest income. The borrower will pay to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as “qualified dividend income” under the Jobs and Growth Tax Reconciliation Act of 2003. The Funds would retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower.

Although the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

13. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016,

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust Action”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

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

On May 8, 2014, the plaintiff in the Litigation Trust Action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 19, 2016, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 26, 2016 (together, with the May 19 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from Fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance

200 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of each Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 201

OTHER INFORMATION (Unaudited)(concluded)

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, the Board considered the nature and amount of other benefits to be received by the Advisor and its affiliates as a result of their relationship with the Fund, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

202 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle***** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Epiphany Funds (4) (2009-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 203

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - concluded
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	135	None.
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem***** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.

204 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 205

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Keith D. Kemp (1960)	Assistant Treasurer (2016-present).	Current: Managing Director of Transparent Value, LLC (2015-present); Managing Director of Guggenheim Investments (2015-present). Former: Director, Transparent Value, LLC (2010-2015); Director, Guggenheim Investments (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present).	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.
****	Some of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.
*****	Mses. Brock-Kyle and Sponem commenced serving as independent Trustees effective August 18, 2016.

206 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

When you become a Guggenheim Investments investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g. purchase and redemption history).

How We Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below.

To complete certain transactions or account changes that you direct, it may be necessary to provide your personal information to companies, individuals or groups that are not affiliated with Guggenheim Investments. For example if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. In connection with servicing your accounts or to alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new funds or the services offered through another Guggenheim Investments affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your personal information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally we will share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

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

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9.30.2016

Rydex Funds Semi-Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy Fund

Weakening Dollar 2x Strategy Fund

GuggenheimInvestments.com RBENF2-SEMI-0916x0317

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
S&P 500® PURE GROWTH FUND	8
S&P 500® PURE VALUE FUND	15
S&P MIDCAP 400® PURE GROWTH FUND	22
S&P MIDCAP 400® PURE VALUE FUND	29
S&P SMALLCAP 600® PURE GROWTH FUND	36
S&P SMALLCAP 600® PURE VALUE FUND	44
EUROPE 1.25x STRATEGY FUND	52
JAPAN 2x STRATEGY FUND	59
STRENGTHENING DOLLAR 2x STRATEGY FUND	65
WEAKENING DOLLAR 2x STRATEGY FUND	72
NOTES TO FINANCIAL STATEMENTS	79
OTHER INFORMATION	92
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	95
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	99

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2016

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for a selection of our Funds (the “Funds”) for the six-month period ended September 30, 2016.

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

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

We encourage you to read the Economic and Market Overview section of the report, which follows this letter.

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

Sincerely,

Donald C. Cacciapaglia
President and Chief Executive Officer
October 31, 2016

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2016

Economic growth continues to rebound, even though the rise in U.S. Gross Domestic Product (“GDP”) disappointed in the first half of 2016. There was a large headwind from inventory drawdowns, which should soon reverse after five quarters of dragging on growth. Real GDP growth is expected to be around 2.5 percent in the second half of the year, driven by consumption, housing, and a fading trade drag, and supporting the view that U.S. economic growth remains resilient to global weakness.

The euro zone economy is slowly improving, but inflation will likely persist well below the European Central Bank’s (“ECB”) target in the coming quarters due to substantial slack. The ECB has indicated that more quantitative easing is possible, but will soon need to alter the quantitative easing program in order to keep up their purchase pace. Both China and Japan need weaker currencies. Chinese growth and capital flows have stabilized for now, but surging construction and a credit boom raise the prospect of future instability. Japan’s economic prospects are weak, and inflation remains far from the Bank of Japan’s (“BOJ”) target. The surging yen could drive further policy easing, including an increase in fiscal stimulus.

It appears the U.S. Federal Reserve (the “Fed”) will move forward with raising rates in December, absent any economic or geopolitical surprise or a meaningful tightening of financial conditions over the fourth quarter. But key events could influence risk asset performance for the balance of the year: A continued recovery in oil prices following the Organization of Petroleum Exporting Countries (“OPEC”) agreement to keep production between 32.5 to 33 million barrels per day would help sustain the rally (although we are skeptical that they will adhere to any quota based on historical production levels). Global oil inventories remain high, but supply and demand are moving toward balance. A rebound in GDP growth would also lift U.S. equity and corporate bond prices higher.

The macroeconomic picture remains the same; we are not on the verge of a recession. But despite our positive outlook on the U.S. economy, valuations across risk assets argue for caution. Ongoing accommodation from central bankers across the globe has alleviated much of the initial macroeconomic tail risk posed by Brexit but may not be enough to dampen the seasonal volatility typically observed in the fourth quarter. Ongoing troubles in the banking sector, such as the woes afflicting Deutsche Bank and Wells Fargo, coupled with uncertainty surrounding upcoming political events, which include the U.S. presidential election, the Italian constitutional referendum, and key European elections, may create volatility for risk assets for the balance of the year.

For the six months ended September 30, 2016, the Standard & Poor’s 500^® (“S&P 500^®”) Index* returned 6.40%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 4.88%. The return of the MSCI Emerging Markets Index* was 9.75%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.68% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 11.38%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.17% for the six-month period.

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

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

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

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

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

MSCI EAFE Index is a capitalization-weighted measure of stock markets in Europe, Australasia, and the Far East.

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2016 and ending September 30, 2016.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.52%	5.43%	$ 1,000.00	$ 1,054.30	$ 7.83
C-Class	2.27%	5.02%	1,000.00	1,050.20	11.67
H-Class	1.52%	5.43%	1,000.00	1,054.30	7.83
S&P 500® Pure Value Fund
A-Class	1.52%	4.78%	1,000.00	1,047.80	7.80
C-Class	2.27%	4.38%	1,000.00	1,043.80	11.63
H-Class	1.52%	4.78%	1,000.00	1,047.80	7.80
S&P MidCap 400® Pure Growth Fund
A-Class	1.52%	2.60%	1,000.00	1,026.00	7.72
C-Class	2.27%	2.22%	1,000.00	1,022.20	11.51
H-Class	1.52%	2.60%	1,000.00	1,026.00	7.72
S&P MidCap 400® Pure Value Fund
A-Class	1.52%	8.23%	1,000.00	1,082.30	7.93
C-Class	2.27%	7.83%	1,000.00	1,078.30	11.83
H-Class	1.52%	8.23%	1,000.00	1,082.30	7.93
S&P SmallCap 600® Pure Growth Fund
A-Class	1.52%	12.03%	1,000.00	1,120.30	8.08
C-Class	2.27%	11.61%	1,000.00	1,116.10	12.04
H-Class	1.52%	12.03%	1,000.00	1,120.30	8.08
S&P SmallCap 600® Pure Value Fund
A-Class	1.52%	8.29%	1,000.00	1,082.90	7.94
C-Class	2.27%	7.89%	1,000.00	1,078.90	11.83
H-Class	1.52%	8.19%	1,000.00	1,081.90	7.93
Europe 1.25x Strategy Fund
A-Class	1.68%	2.30%	1,000.00	1,023.00	8.52
C-Class	2.43%	2.01%	1,000.00	1,020.10	12.31
H-Class	1.68%	2.17%	1,000.00	1,021.70	8.51
Japan 2x Strategy Fund
A-Class	1.51%	20.15%	1,000.00	1,201.50	8.33
C-Class	2.26%	19.72%	1,000.00	1,197.20	12.45
H-Class	1.51%	20.11%	1,000.00	1,201.10	8.33
Strengthening Dollar 2x Strategy Fund
A-Class	1.71%	1.17%	1,000.00	1,011.70	8.62
C-Class	2.46%	0.80%	1,000.00	1,008.00	12.38
H-Class	1.71%	1.18%	1,000.00	1,011.80	8.62
Weakening Dollar 2x Strategy Fund
A-Class	1.71%	(2.87%)	1,000.00	971.30	8.45
C-Class	2.46%	(3.32%)	1,000.00	966.80	12.13
H-Class	1.71%	(2.95%)	1,000.00	970.50	8.45

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.52%	5.00%	$ 1,000.00	$ 1,017.45	$ 7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P 500® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P MidCap 400® Pure Growth Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P MidCap 400® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P SmallCap 600® Pure Growth Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P SmallCap 600® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
Europe 1.25x Strategy Fund
A-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
C-Class	2.43%	5.00%	1,000.00	1,012.89	12.26
H-Class	1.68%	5.00%	1,000.00	1,016.65	8.49
Japan 2x Strategy Fund
A-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
C-Class	2.26%	5.00%	1,000.00	1,013.74	11.41
H-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
Strengthening Dollar 2x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
Weakening Dollar 2x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2016 to September 30, 2016.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

FUND PROFILE (Unaudited) September 30, 2016

S&P 500^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Facebook, Inc. — Class A	2.0%
NVIDIA Corp.	1.9%
Electronic Arts, Inc.	1.9%
Constellation Brands, Inc. — Class A	1.8%
Centene Corp.	1.8%
Broadcom Ltd.	1.8%
Amazon.com, Inc.	1.8%
Activision Blizzard, Inc.	1.6%
Ulta Salon Cosmetics & Fragrance, Inc.	1.4%
O’Reilly Automotive, Inc.	1.3%
Top Ten Total	17.3%
“Ten Largest Holdings” excludes any temporary cash investments.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Consumer, Non-cyclical - 26.8%
Constellation Brands, Inc. — Class A		10,305	$	1,715,679
Centene Corp.*		25,300		1,694,088
Edwards Lifesciences Corp.*		9,020		1,087,450
S&P Global, Inc.		8,590		1,087,150
Hologic, Inc.*		26,100		1,013,463
Global Payments, Inc.		13,000		997,880
Aetna, Inc.		8,585		991,138
Regeneron Pharmaceuticals, Inc.*		2,324		934,294
Mondelez International, Inc. — Class A		21,173		929,495
Total System Services, Inc.		18,807		886,750
Equifax, Inc.		6,500		874,770
Cigna Corp.		6,700		873,144
Boston Scientific Corp.*		36,237		862,441
Biogen, Inc.*		2,603		814,817
Gilead Sciences, Inc.		10,282		813,512
Avery Dennison Corp.		9,497		738,772
AmerisourceBergen Corp. — Class A		8,770		708,441
Reynolds American, Inc.		14,857		700,508
Celgene Corp.*		6,410		670,037
Coty, Inc. — Class A*		28,100		660,350
Monster Beverage Corp.*		4,496		660,058
Illumina, Inc.*		3,551		645,075
Laboratory Corporation of America Holdings*		4,450		611,786
Hormel Foods Corp.		15,688		595,046
Cintas Corp.		5,230		588,898
Verisk Analytics, Inc. — Class A*		6,890		560,019
Moody’s Corp.		4,903		530,897
Alexion Pharmaceuticals, Inc.*		3,763		461,118
CR Bard, Inc.		1,930		432,860
Becton Dickinson and Co.		2,300		413,379
Dr Pepper Snapple Group, Inc.		3,300		301,323
Allergan plc*		1,132		260,711
Total Consumer, Non-cyclical				25,115,349
Technology - 19.1%
NVIDIA Corp.		25,983		1,780,355
Electronic Arts, Inc.*		20,487		1,749,589
Broadcom Ltd.		9,765		1,684,658
Activision Blizzard, Inc.		33,702		1,492,999
salesforce.com, Inc.*		16,590		1,183,364
Skyworks Solutions, Inc.		14,712		1,120,172
Lam Research Corp.		10,442		988,962
Red Hat, Inc.*		12,189		985,237
Fiserv, Inc.*		8,186		814,261
Applied Materials, Inc.		25,980		783,297
Cognizant Technology Solutions Corp. — Class A*		15,366		733,112
Microchip Technology, Inc.		11,191		695,409
Citrix Systems, Inc.*		8,108		690,964
Qorvo, Inc.*		10,544		587,723
Apple, Inc.		5,085		574,859
Cerner Corp.*		7,598		469,177
Akamai Technologies, Inc.*		8,173		433,087
Accenture plc — Class A		3,400		415,378
Microsoft Corp.		6,800		391,680
Paychex, Inc.		6,279		363,366
Total Technology				17,937,649
Consumer, Cyclical - 17.7%
Ulta Salon Cosmetics & Fragrance, Inc.*		5,400		1,285,092
O’Reilly Automotive, Inc.*		4,401		1,232,764
DR Horton, Inc.		36,700		1,108,340
Dollar Tree, Inc.*		11,970		944,792
Starbucks Corp.		16,700		904,138
AutoZone, Inc.*		1,150		883,591
Lennar Corp. — Class A		18,845		797,897
LKQ Corp.*		22,500		797,850
Alaska Air Group, Inc.		11,200		737,632
Home Depot, Inc.		5,650		727,042
Advance Auto Parts, Inc.		4,575		682,224
Lowe’s Companies, Inc.		8,750		631,838
Mohawk Industries, Inc.*		3,100		621,054
NIKE, Inc. — Class B		11,600		610,740
Ross Stores, Inc.		8,950		575,485
Under Armour, Inc. — Class A*		12,890		498,585
Southwest Airlines Co.		11,842		460,535
Signet Jewelers Ltd.		6,100		454,633
Under Armour, Inc. — Class C*		13,003		440,282
Chipotle Mexican Grill, Inc. — Class A*		1,010		427,735
Tractor Supply Co.		6,300		424,305
Newell Brands, Inc.		7,180		378,099
TJX Companies, Inc.		4,700		351,466
Delphi Automotive plc		4,400		313,808
Hanesbrands, Inc.		11,300		285,325
Total Consumer, Cyclical				16,575,252
Communications - 12.5%
Facebook, Inc. — Class A*		14,717		1,887,750
Amazon.com, Inc.*		2,000		1,674,621
Expedia, Inc.		10,489		1,224,276
VeriSign, Inc.*		13,705		1,072,279
Netflix, Inc.*		10,149		1,000,184
Priceline Group, Inc.*		631		928,510
eBay, Inc.*		23,958		788,218
TripAdvisor, Inc.*		11,930		753,737
Alphabet, Inc. — Class A*		702		564,450
Alphabet, Inc. — Class C*		687		533,998
Walt Disney Co.		5,000		464,300
Juniper Networks, Inc.		17,146		412,533
Discovery Communications, Inc. — Class C*		10,000		263,100
Discovery Communications, Inc. — Class A*		5,870		158,020
Total Communications				11,725,976
Financial - 12.3%
XL Group Ltd.		30,100		1,012,263
Extra Space Storage, Inc.		11,400		905,274
Visa, Inc. — Class A		10,082		833,781
Prologis, Inc.		15,536		831,797

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P 500® PURE GROWTH FUND

	Shares		Value
Equity Residential		12,205	$	785,148
Intercontinental Exchange, Inc.		2,840		764,982
E*TRADE Financial Corp.*		22,304		649,492
Kimco Realty Corp.		22,147		641,156
Equinix, Inc.		1,776		639,804
Mastercard, Inc. — Class A		6,006		611,231
CBRE Group, Inc. — Class A*		21,727		607,921
Public Storage		2,500		557,850
UDR, Inc.		14,621		526,210
American Tower Corp. — Class A		4,294		486,639
AvalonBay Communities, Inc.		2,671		475,011
Crown Castle International Corp.		4,900		461,629
Charles Schwab Corp.		14,414		455,050
Alliance Data Systems Corp.*		1,232		264,301
Total Financial				11,509,539
Industrial - 9.9%
PerkinElmer, Inc.		19,471		1,092,518
Vulcan Materials Co.		8,797		1,000,482
Masco Corp.		28,100		964,112
Fortune Brands Home & Security, Inc.		15,400		894,740
Acuity Brands, Inc.		3,300		873,180
TransDigm Group, Inc.*		2,800		809,536
Martin Marietta Materials, Inc.		4,460		798,831
Northrop Grumman Corp.		3,200		684,640
Stanley Black & Decker, Inc.		4,400		541,112
Amphenol Corp. — Class A		7,300		473,916
Roper Technologies, Inc.		2,200		401,434
Snap-on, Inc.		2,640		401,174
Boeing Co.		2,400		316,176
Total Industrial				9,251,851
Energy - 0.9%
Pioneer Natural Resources Co.		4,401		817,046
Basic Materials - 0.4%
Sherwin-Williams Co.		1,550		428,823
Total Common Stocks
(Cost $70,097,763)				93,361,485
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	245,019		245,019
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		194,547		194,547
Total Repurchase Agreements
(Cost $439,566)				439,566
Total Investments - 100.1%
(Cost $70,537,329)			$	93,801,051
Other Assets & Liabilities, net - (0.1)%				(56,164	)
Total Net Assets - 100.0%			$	93,744,887

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	93,361,485	$	—	$	—	$	93,361,485
Repurchase Agreements		—		439,566		—		439,566
Total	$	93,361,485	$	439,566	$	—	$	93,801,051

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $70,097,763)	$	93,361,485
Repurchase agreements, at value (cost $439,566)		439,566
Total investments (cost $70,537,329)		93,801,051
Cash		11,060
Receivables:
Securities sold		855,182
Fund shares sold		23,531
Dividends		68,072
Total assets		94,758,896
Liabilities:
Payable for:
Securities purchased		660,182
Fund shares redeemed		192,635
Management fees		58,054
Distribution and service fees		29,273
Transfer agent and administrative fees		19,351
Portfolio accounting fees		7,741
Miscellaneous		46,773
Total liabilities		1,014,009
Commitments and contingent liabilities (Note 11)		—
Net assets	$	93,744,887
Net assets consist of:
Paid in capital	$	74,094,542
Accumulated net investment loss		(511,627	)
Accumulated net realized loss on investments		(3,101,750	)
Net unrealized appreciation on investments		23,263,722
Net assets	$	93,744,887
A-Class:
Net assets	$	15,531,738
Capital shares outstanding		284,693
Net asset value per share	$	54.56
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.28
C-Class:
Net assets	$	14,237,501
Capital shares outstanding		288,448
Net asset value per share	$	49.36
H-Class:
Net assets	$	63,975,648
Capital shares outstanding		1,172,871
Net asset value per share	$	54.55

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	463,967
Interest		781
Total investment income		464,748
Expenses:
Management fees		425,710
Transfer agent and administrative fees		141,903
Distribution and service fees:
A-Class		23,566
C-Class		83,217
H-Class		97,533
Portfolio accounting fees		56,760
Custodian fees		6,664
Trustees’ fees*		5,121
Line of credit fees		136
Miscellaneous		85,568
Total expenses		926,178
Net investment loss		(461,430	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,173,445
Net realized gain		9,173,445
Net change in unrealized appreciation (depreciation) on:
Investments		(2,501,569	)
Net change in unrealized appreciation (depreciation)		(2,501,569	)
Net realized and unrealized gain		6,671,876
Net increase in net assets resulting from operations	$	6,210,446

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

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

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(461,430	)	$	(747,485	)
Net realized gain (loss) on investments		9,173,445			(5,914,175	)
Net change in unrealized appreciation (depreciation) on investments		(2,501,569	)		(4,755,558	)
Net increase (decrease) in net assets resulting from operations		6,210,446			(11,417,218	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(857,343	)
C-Class		—			(687,448	)
H-Class		—			(3,476,889	)
Total distributions to shareholders		—			(5,021,680	)
Capital share transactions:
Proceeds from sale of shares
A-Class		8,885,652			57,800,935
C-Class		504,342			7,117,304
H-Class		131,333,735			424,273,419
Distributions reinvested
A-Class		—			847,945
C-Class		—			679,901
H-Class		—			3,448,540
Cost of shares redeemed
A-Class		(18,369,877	)		(56,458,547	)
C-Class		(4,619,082	)		(10,768,882	)
H-Class		(185,005,363	)		(408,794,397	)
Net increase (decrease) from capital share transactions		(67,270,593	)		18,146,218
Net increase (decrease) in net assets		(61,060,147	)		1,707,320
Net assets:
Beginning of period		154,805,034			153,097,714
End of period	$	93,744,887		$	154,805,034
Accumulated net investment loss at end of period	$	(511,627	)	$	(50,197	)
Capital share activity:
Shares sold
A-Class		166,003			1,065,419
C-Class		10,397			144,257
H-Class		2,492,200			8,047,777
Shares issued from reinvestment of distributions
A-Class		—			15,838
C-Class		—			13,944
H-Class		—			64,423
Shares redeemed
A-Class		(345,876	)		(1,078,093	)
C-Class		(95,356	)		(227,917	)
H-Class		(3,507,993	)		(7,797,307	)
Net increase (decrease) in shares		(1,280,625	)		248,341

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	51.74		$	55.85		$	50.81		$	38.86		$	34.54		$	33.15
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.22	)		(.33	)		(.23	)		(.13	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		3.01			(2.47	)		6.86			12.18			4.45			1.82
Total from investment operations		2.82			(2.69	)		6.53			11.95			4.32			1.62
Less distributions from:
Net realized gains		—			(1.42	)		(1.49	)		—			—			(.23	)
Total distributions		—			(1.42	)		(1.49	)		—			—			(.23	)
Net asset value, end of period	$	54.56		$	51.74		$	55.85		$	50.81		$	38.86		$	34.54
Total Returnc		5.43	%		(4.90	%)		12.98	%		30.75	%		12.51	%		4.96	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,532		$	24,037		$	25,768		$	19,978		$	15,001		$	2,846
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.41	%)		(0.62	%)		(0.51	%)		(0.38	%)		(0.62	%)
Total expenses		1.52	%		1.50	%		1.50	%		1.52	%		1.51	%		1.52	%
Portfolio turnover rate		83	%		290	%		274	%		594	%		421	%		586	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	46.99		$	51.23		$	47.07		$	36.27		$	32.48		$	31.42
Income (loss) from investment operations:
Net investment income (loss)b		(.35	)		(.57	)		(.67	)		(.52	)		(.38	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		2.72			(2.25	)		6.32			11.32			4.17			1.70
Total from investment operations		2.37			(2.82	)		5.65			10.80			3.79			1.29
Less distributions from:
Net realized gains		—			(1.42	)		(1.49	)		—			—			(.23	)
Total distributions		—			(1.42	)		(1.49	)		—			—			(.23	)
Net asset value, end of period	$	49.36		$	46.99		$	51.23		$	47.07		$	36.27		$	32.48
Total Returnc		5.02	%		(5.61	%)		12.13	%		29.78	%		11.70	%		4.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,238		$	17,546		$	22,701		$	17,042		$	8,692		$	11,623
Ratios to average net assets:
Net investment income (loss)		(1.43	%)		(1.16	%)		(1.37	%)		(1.24	%)		(1.19	%)		(1.35	%)
Total expenses		2.27	%		2.25	%		2.25	%		2.27	%		2.25	%		2.26	%
Portfolio turnover rate		83	%		290	%		274	%		594	%		421	%		586	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	51.73		$	55.84		$	50.80		$	38.84		$	34.52		$	33.13
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.18	)		(.34	)		(.23	)		(.15	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		3.01			(2.51	)		6.87			12.19			4.47			1.81
Total from investment operations		2.82			(2.69	)		6.53			11.96			4.32			1.62
Less distributions from:
Net realized gains		—			(1.42	)		(1.49	)		—			—			(.23	)
Total distributions		—			(1.42	)		(1.49	)		—			—			(.23	)
Net asset value, end of period	$	54.55		$	51.73		$	55.84		$	50.80		$	38.84		$	34.52
Total Returnc		5.43	%		(4.91	%)		12.98	%		30.79	%		12.51	%		4.96	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	63,976		$	113,223		$	104,628		$	103,502		$	52,483		$	36,627
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.35	%)		(0.65	%)		(0.50	%)		(0.43	%)		(0.59	%)
Total expenses		1.52	%		1.51	%		1.50	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		83	%		290	%		274	%		594	%		421	%		586	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P 500^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap value securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
HP, Inc.	3.0%
Newmont Mining Corp.	2.4%
Archer-Daniels-Midland Co.	2.2%
NRG Energy, Inc.	2.1%
Alcoa, Inc.	1.8%
Leucadia National Corp.	1.8%
Jacobs Engineering Group, Inc.	1.7%
Quanta Services, Inc.	1.7%
AES Corp.	1.7%
Best Buy Company, Inc.	1.7%
Top Ten Total	20.1%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 15

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Financial - 25.6%
Prudential Financial, Inc.		8,933	$	729,380
Loews Corp.		16,085		661,897
MetLife, Inc.		14,830		658,897
Allstate Corp.		7,960		550,673
Lincoln National Corp.		11,086		520,820
American International Group, Inc.		8,708		516,733
Regions Financial Corp.		51,180		505,148
Unum Group		14,078		497,094
Hartford Financial Services Group, Inc.		11,412		488,662
Bank of America Corp.		30,399		475,745
Citigroup, Inc.		9,767		461,295
Capital One Financial Corp.		6,337		455,187
Navient Corp.		31,060		449,438
Zions Bancorporation		12,864		399,041
SunTrust Banks, Inc.		9,037		395,821
Comerica, Inc.		7,283		344,632
KeyCorp		27,943		340,066
JPMorgan Chase & Co.		4,937		328,755
Fifth Third Bancorp		15,777		322,797
Travelers Companies, Inc.		2,659		304,588
Chubb Ltd.		2,417		303,696
Principal Financial Group, Inc.		5,881		302,930
Berkshire Hathaway, Inc. — Class B*		2,094		302,520
Goldman Sachs Group, Inc.		1,862		300,285
Legg Mason, Inc.		8,870		296,967
Aflac, Inc.		4,119		296,033
PNC Financial Services Group, Inc.		3,002		270,450
People’s United Financial, Inc.		16,603		262,659
BB&T Corp.		6,721		253,516
Bank of New York Mellon Corp.		4,145		165,303
Total Financial				12,161,028
Consumer, Cyclical - 15.2%
Best Buy Company, Inc.		20,754		792,389
Wal-Mart Stores, Inc.		9,833		709,156
General Motors Co.		19,815		629,523
Staples, Inc.		68,037		581,716
Ford Motor Co.		44,811		540,869
Kohl’s Corp.		12,147		531,432
AutoNation, Inc.*		8,720		424,751
PVH Corp.		3,780		417,690
Macy’s, Inc.		10,820		400,881
Urban Outfitters, Inc.*		11,358		392,078
United Continental Holdings, Inc.*		6,811		357,373
Whirlpool Corp.		2,008		325,617
PulteGroup, Inc.		15,880		318,235
PACCAR, Inc.		4,230		248,639
Target Corp.		3,399		233,443
The Gap, Inc.		7,680		170,803
Bed Bath & Beyond, Inc.		3,540		152,609
Total Consumer, Cyclical				7,227,204
Utilities - 14.6%
NRG Energy, Inc.		90,919		1,019,202
AES Corp.		62,037		797,175
Exelon Corp.		23,426		779,853
FirstEnergy Corp.		14,593		482,736
NiSource, Inc.		16,439		396,345
Duke Energy Corp.		4,119		329,685
Consolidated Edison, Inc.		4,233		318,745
Entergy Corp.		3,694		283,441
SCANA Corp.		3,733		270,157
DTE Energy Co.		2,846		266,585
Public Service Enterprise Group, Inc.		5,968		249,880
Edison International		3,453		249,479
American Electric Power Company, Inc.		3,805		244,319
CenterPoint Energy, Inc.		10,341		240,221
Ameren Corp.		4,534		222,982
Pinnacle West Capital Corp.		2,860		217,331
PG&E Corp.		3,304		202,106
Xcel Energy, Inc.		4,517		185,829
Eversource Energy		3,278		177,602
Total Utilities				6,933,673
Consumer, Non-cyclical - 9.8%
Archer-Daniels-Midland Co.		24,560		1,035,694
Quanta Services, Inc.*		28,921		809,499
Tyson Foods, Inc. — Class A		8,698		649,480
Anthem, Inc.		5,017		628,680
Cardinal Health, Inc.		5,333		414,374
McKesson Corp.		2,420		403,535
Sysco Corp.		5,751		281,857
Whole Foods Market, Inc.		7,770		220,280
Express Scripts Holding Co.*		2,600		183,378
Total Consumer, Non-cyclical				4,626,777
Energy - 9.1%
National Oilwell Varco, Inc.		20,798		764,119
Valero Energy Corp.		10,366		549,398
Chevron Corp.		4,408		453,671
Phillips 66		5,443		438,434
Marathon Petroleum Corp.		9,414		382,114
Transocean Ltd.*		35,647		379,997
Helmerich & Payne, Inc.		5,182		348,749
Hess Corp.		5,310		284,722
First Solar, Inc.*		7,175		283,341
Marathon Oil Corp.		14,782		233,703
Baker Hughes, Inc.		3,554		179,370
Total Energy				4,297,618
Industrial - 8.8%
Jacobs Engineering Group, Inc.*		15,693		811,641
Fluor Corp.		13,781		707,241
Ryder System, Inc.		8,289		546,660
WestRock Co.		11,000		533,280
Corning, Inc.		15,490		366,339
Cummins, Inc.		2,550		326,782
Eaton Corporation plc		4,290		281,896
Caterpillar, Inc.		2,870		254,769

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P 500® PURE VALUE FUND

	Shares		Value
Textron, Inc.		4,530	$	180,068
Owens-Illinois, Inc.*		9,263		170,347
Total Industrial				4,179,023
Basic Materials - 6.5%
Newmont Mining Corp.		28,958		1,137,760
Alcoa, Inc.		85,944		871,472
Nucor Corp.		8,200		405,490
Freeport-McMoRan, Inc.		31,593		343,100
Mosaic Co.		13,320		325,807
Total Basic Materials				3,083,629
Technology - 4.8%
HP, Inc.		90,535		1,406,008
Xerox Corp.		54,897		556,107
Western Digital Corp.		5,190		303,459
Total Technology				2,265,574
Communications - 2.9%
CenturyLink, Inc.		19,293		529,207
News Corp. — Class A		29,386		410,816
Frontier Communications Corp.		77,375		321,880
News Corp. — Class B		8,300		118,026
Total Communications				1,379,929
Diversified - 1.8%
Leucadia National Corp.		44,847		853,887
Total Common Stocks
(Cost $35,741,674)				47,008,342
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.4%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	102,806		102,806
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		81,628		81,628
Total Repurchase Agreements
(Cost $184,434)				184,434
Total Investments - 99.5%
(Cost $35,926,108)			$	47,192,776
Other Assets & Liabilities, net - 0.5%				258,264
Total Net Assets - 100.0%			$	47,451,040

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	47,008,342	$	—	$	—	$	47,008,342
Repurchase Agreements		—		184,434		—		184,434
Total	$	47,008,342	$	184,434	$	—	$	47,192,776

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $35,741,674)	$	47,008,342
Repurchase agreements, at value (cost $184,434)		184,434
Total investments (cost $35,926,108)		47,192,776
Receivables:
Securities sold		449,891
Fund shares sold		12,736
Dividends		72,602
Total assets		47,728,005
Liabilities:
Payable for:
Fund shares redeemed		197,655
Management fees		28,205
Licensing fees		21,852
Distribution and service fees		11,319
Transfer agent and administrative fees		9,402
Portfolio accounting fees		3,761
Miscellaneous		4,771
Total liabilities		276,965
Commitments and contingent liabilities (Note 11)		—
Net assets	$	47,451,040
Net assets consist of:
Paid in capital	$	43,648,859
Undistributed net investment income		1,078,819
Accumulated net realized loss on investments		(8,543,306	)
Net unrealized appreciation on investments		11,266,668
Net assets	$	47,451,040
A-Class:
Net assets	$	6,367,771
Capital shares outstanding*		92,034
Net asset value per share*	$	69.19
Maximum offering price per share (Net asset value divided by 95.25%)*	$	72.64
C-Class:
Net assets	$	3,135,902
Capital shares outstanding*		51,340
Net asset value per share*	$	61.08
H-Class:
Net assets	$	37,947,367
Capital shares outstanding*		546,422
Net asset value per share*	$	69.45

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	778,886
Interest		379
Total investment income		779,265
Expenses:
Management fees		236,913
Transfer agent and administrative fees		78,971
Distribution and service fees:
A-Class		10,703
C-Class		16,950
H-Class		64,031
Portfolio accounting fees		31,588
Registration fees		25,659
Custodian fees		3,703
Trustees’ fees**		3,224
Line of credit fees		213
Miscellaneous		21,209
Total expenses		493,164
Net investment income		286,101
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,863,610
Net realized gain		3,863,610
Net change in unrealized appreciation (depreciation) on:
Investments		(3,870,059	)
Net change in unrealized appreciation (depreciation)		(3,870,059	)
Net realized and unrealized loss		(6,449	)
Net increase in net assets resulting from operations	$	279,652

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 2:1 share split effective October 28, 2016 — See Note 12.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	286,101		$	792,718
Net realized gain (loss) on investments		3,863,610			(2,975,861	)
Net change in unrealized appreciation (depreciation) on investments		(3,870,059	)		540,213
Net increase (decrease) in net assets resulting from operations		279,652			(1,642,930	)
Distributions to shareholders from:
Net investment income
A-Class		—			(230,654	)
C-Class		—			(81,084	)
H-Class		—			(773,153	)
Net realized gains
A-Class		—			(381,595	)
C-Class		—			(134,145	)
H-Class		—			(1,279,106	)
Total distributions to shareholders		—			(2,879,737	)
Capital share transactions:
Proceeds from sale of shares
A-Class		16,570,995			21,610,017
C-Class		975,682			5,196,156
H-Class		102,751,444			283,243,022
Distributions reinvested
A-Class		—			607,532
C-Class		—			214,297
H-Class		—			2,039,461
Cost of shares redeemed
A-Class		(21,302,909	)		(25,025,972	)
C-Class		(1,540,575	)		(7,319,303	)
H-Class		(135,950,981	)		(261,907,569	)
Net increase (decrease) from capital share transactions		(38,496,344	)		18,657,641
Net increase (decrease) in net assets		(38,216,692	)		14,134,974
Net assets:
Beginning of period		85,667,732			71,532,758
End of period	$	47,451,040		$	85,667,732
Undistributed net investment income at end of period	$	1,078,819		$	792,718
Capital share activity:*
Shares sold
A-Class		242,916			325,256
C-Class		16,490			82,820
H-Class		1,516,818			4,260,374
Shares issued from reinvestment of distributions
A-Class		—			9,084
C-Class		—			3,606
H-Class		—			30,384
Shares redeemed
A-Class		(319,518	)		(389,324	)
C-Class		(25,816	)		(123,960	)
H-Class		(2,041,410	)		(3,891,646	)
Net increase (decrease) in shares		(610,520	)		306,594

^* Capital share activity for the periods presented through September 30, 2016, has been restated to reflect a 2:1 share split effective October 28, 2016 — See Note 12.

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	66.03		$	72.54		$	70.69		$	55.84		$	46.75		$	45.11
Income (loss) from investment operations:
Net investment income (loss)b		.34			.73			.57			.31			.29			.15
Net gain (loss) on investments (realized and unrealized)		2.82			(4.63	)		3.42			17.50			8.87			1.49
Total from investment operations		3.16			(3.90	)		3.99			17.81			9.16			1.64
Less distributions from:
Net investment income		—			(.98	)		(.07	)		(.12	)		(.07	)		—
Net realized gains		—			(1.63	)		(2.07	)		(2.84	)		—			—
Total distributions		—			(2.61	)		(2.14	)		(2.96	)		(.07	)		—
Net asset value, end of period	$	69.19		$	66.03		$	72.54		$	70.69		$	55.84		$	46.75
Total Returnc		4.78	%		(5.44	%)		5.60	%		32.21	%		19.63	%		3.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,368		$	11,135		$	16,222		$	4,435		$	1,303		$	1,846
Ratios to average net assets:
Net investment income (loss)		1.00	%		1.08	%		0.78	%		0.47	%		0.61	%		0.34	%
Total expenses		1.52	%		1.50	%		1.51	%		1.52	%		1.51	%		1.51	%
Portfolio turnover rate		145	%		365	%		295	%		410	%		669	%		762	%

C-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	58.51		$	65.08		$	64.10		$	51.23		$	43.21		$	42.00
Income (loss) from investment operations:
Net investment income (loss)b		.06			.17			.02			(.15	)		(.10	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		2.51			(4.13	)		3.10			15.98			8.19			1.39
Total from investment operations		2.57			(3.96	)		3.12			15.83			8.09			1.21
Less distributions from:
Net investment income		—			(.98	)		(.07	)		(.12	)		(.07	)		—
Net realized gains		—			(1.63	)		(2.07	)		(2.84	)		—			—
Total distributions		—			(2.61	)		(2.14	)		(2.96	)		(.07	)		—
Net asset value, end of period	$	61.08		$	58.51		$	65.08		$	64.10		$	51.23		$	43.21
Total Returnc		4.38	%		(6.15	%)		4.81	%		31.21	%		18.76	%		2.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,136		$	3,550		$	6,390		$	5,090		$	3,430		$	2,128
Ratios to average net assets:
Net investment income (loss)		0.21	%		0.28	%		0.03	%		(0.26	%)		(0.22	%)		(0.45	%)
Total expenses		2.27	%		2.25	%		2.25	%		2.27	%		2.26	%		2.27	%
Portfolio turnover rate		145	%		365	%		295	%		410	%		669	%		762	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d
Per Share Data
Net asset value, beginning of period	$	66.28		$	72.81		$	70.94		$	56.03		$	46.90		$	45.25
Income (loss) from investment operations:
Net investment income (loss)b		.32			.80			.49			.26			.29			.17
Net gain (loss) on investments (realized and unrealized)		2.85			(4.72	)		3.52			17.61			8.91			1.48
Total from investment operations		3.17			(3.92	)		4.01			17.87			9.20			1.65
Less distributions from:
Net investment income		—			(.98	)		(.07	)		(.12	)		(.07	)		—
Net realized gains		—			(1.63	)		(2.07	)		(2.84	)		—			—
Total distributions		—			(2.61	)		(2.14	)		(2.96	)		(.07	)		—
Net asset value, end of period	$	69.45		$	66.28		$	72.81		$	70.94		$	56.03		$	46.90
Total Returnc		4.78	%		(5.44	%)		5.60	%		32.21	%		19.64	%		3.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,947		$	70,983		$	48,920		$	114,984		$	78,480		$	68,886
Ratios to average net assets:
Net investment income (loss)		0.93	%		1.17	%		0.66	%		0.40	%		0.58	%		0.38	%
Total expenses		1.52	%		1.50	%		1.51	%		1.52	%		1.52	%		1.51	%
Portfolio turnover rate		145	%		365	%		295	%		410	%		669	%		762	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 2:1 share split effective October 28,2016 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P MIDCAP 400^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
ABIOMED, Inc.	2.8%
Convergys Corp.	2.4%
MarketAxess Holdings, Inc.	2.2%
Alexander & Baldwin, Inc.	2.1%
WebMD Health Corp. — Class A	1.9%
Post Holdings, Inc.	1.9%
ARRIS International plc	1.9%
Skechers U.S.A., Inc. — Class A	1.8%
Cirrus Logic, Inc.	1.7%
Dycom Industries, Inc.	1.7%
Top Ten Total	20.4%
“Ten Largest Holdings” excludes any temporary cash investments.

22 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Technology - 25.8%
Convergys Corp.		96,375	$	2,931,727
Cirrus Logic, Inc.*		38,900		2,067,535
Ultimate Software Group, Inc.*		9,766		1,996,072
Fortinet, Inc.*		49,767		1,837,895
j2 Global, Inc.		27,504		1,832,041
ACI Worldwide, Inc.*		88,605		1,717,164
Synaptics, Inc.*		28,663		1,679,079
Fair Isaac Corp.		12,941		1,612,319
Integrated Device Technology, Inc.*		67,973		1,570,176
MAXIMUS, Inc.		26,564		1,502,460
Tyler Technologies, Inc.*		8,660		1,482,852
Microsemi Corp.*		35,109		1,473,876
Manhattan Associates, Inc.*		24,590		1,416,876
Monolithic Power Systems, Inc.		17,400		1,400,700
MSCI, Inc. — Class A		16,105		1,351,854
IPG Photonics Corp.*		14,720		1,212,192
Jack Henry & Associates, Inc.		12,270		1,049,699
Broadridge Financial Solutions, Inc.		13,700		928,723
DST Systems, Inc.		7,690		906,805
CDK Global, Inc.		15,038		862,580
Cadence Design Systems, Inc.*		32,182		821,606
Total Technology				31,654,231
Consumer, Non-cyclical - 24.4%
ABIOMED, Inc.*		26,359		3,389,240
MarketAxess Holdings, Inc.		16,077		2,662,190
Post Holdings, Inc.*		30,000		2,315,100
NuVasive, Inc.*		25,500		1,699,830
Amsurg Corp. — Class A*		24,620		1,650,771
WhiteWave Foods Co. — Class A*		29,847		1,624,572
Align Technology, Inc.*		16,060		1,505,625
Sprouts Farmers Market, Inc.*		70,880		1,463,672
United Therapeutics Corp.*		10,641		1,256,489
Prestige Brands Holdings, Inc.*		25,290		1,220,748
Helen of Troy Ltd.*		13,000		1,120,210
PAREXEL International Corp.*		16,129		1,120,159
Service Corporation International		37,620		998,435
VCA, Inc.*		13,990		979,020
MEDNAX, Inc.*		13,910		921,538
CEB, Inc.		15,928		867,598
Gartner, Inc.*		8,835		781,456
Rollins, Inc.		25,031		732,908
STERIS plc		9,090		664,479
Akorn, Inc.*		23,183		631,969
Bio-Techne Corp.		5,620		615,390
Charles River Laboratories International, Inc.*		7,291		607,632
LivaNova plc*		9,353		562,209
Flowers Foods, Inc.		33,465		505,991
Total Consumer, Non-cyclical				29,897,231
Financial - 18.9%
Alexander & Baldwin, Inc.		65,460		2,514,973
WisdomTree Investments, Inc.		187,180		1,926,082
Old Republic International Corp.		94,790		1,670,200
PrivateBancorp, Inc. — Class A		36,350		1,669,193
Lamar Advertising Co. — Class A		23,605		1,541,642
Equity One, Inc.		50,304		1,539,806
Bank of the Ozarks, Inc.		35,447		1,361,165
SEI Investments Co.		28,044		1,279,087
Education Realty Trust, Inc.		29,120		1,256,237
Signature Bank*		10,376		1,229,037
Weingarten Realty Investors		30,440		1,186,551
First Horizon National Corp.		72,565		1,105,165
Communications Sales & Leasing, Inc.		32,290		1,014,229
SVB Financial Group*		8,850		978,279
CBOE Holdings, Inc.		13,224		857,576
Healthcare Realty Trust, Inc.		22,830		777,590
Jones Lang LaSalle, Inc.		5,860		666,809
Life Storage, Inc.		6,977		620,534
Total Financial				23,194,155
Consumer, Cyclical - 16.0%
Skechers U.S.A., Inc. — Class A*		97,607		2,235,200
NVR, Inc.*		1,200		1,967,845
Churchill Downs, Inc.		12,600		1,844,010
Tempur Sealy International, Inc.*		27,980		1,587,585
Vista Outdoor, Inc.*		39,505		1,574,669
Pool Corp.		14,460		1,366,759
Wendy’s Co.		115,543		1,247,865
Toll Brothers, Inc.*		38,940		1,162,748
JetBlue Airways Corp.*		55,289		953,182
Restoration Hardware Holdings, Inc.*		27,250		942,305
Domino’s Pizza, Inc.		6,175		937,674
Toro Co.		18,390		861,388
Buffalo Wild Wings, Inc.*		5,995		843,736
Panera Bread Co. — Class A*		3,800		739,936
Carter’s, Inc.		7,654		663,678
Dunkin’ Brands Group, Inc.		12,135		631,991
Total Consumer, Cyclical				19,560,571
Industrial - 8.1%
Dycom Industries, Inc.*		24,900		2,036,323
AO Smith Corp.		18,100		1,788,099
Lennox International, Inc.		9,680		1,520,050
Packaging Corporation of America		17,607		1,430,745
Zebra Technologies Corp. — Class A*		17,342		1,207,177
Eagle Materials, Inc.		15,201		1,175,037
Cognex Corp.		15,540		821,444
Total Industrial				9,978,875
Communications - 6.2%
WebMD Health Corp. — Class A*		46,740		2,322,978
ARRIS International plc*		80,369		2,276,853
AMC Networks, Inc. — Class A*		22,945		1,189,928
Ciena Corp.*		45,027		981,589
FactSet Research Systems, Inc.		4,980		807,258
Total Communications				7,578,606
Total Common Stocks
(Cost $109,267,209)				121,863,669

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P MIDCAP 400® PURE GROWTH FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.5%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	360,354	$	360,354
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		286,122		286,122
Total Repurchase Agreements
(Cost $646,476)				646,476
Total Investments - 99.9%
(Cost $109,913,685)			$	122,510,145
Other Assets & Liabilities, net - 0.1%				117,219
Total Net Assets - 100.0%			$	122,627,364

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	121,863,669	$	—	$	—	$	121,863,669
Repurchase Agreements		—		646,476		—		646,476
Total	$	121,863,669	$	646,476	$	—	$	122,510,145

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $109,267,209)	$	121,863,669
Repurchase agreements, at value (cost $646,476)		646,476
Total investments (cost $109,913,685)		122,510,145
Receivables:
Fund shares sold		328,665
Dividends		60,544
Interest		7
Total assets		122,899,361
Liabilities:
Payable for:
Management fees		75,470
Licensing fees		54,498
Fund shares redeemed		46,443
Distribution and service fees		36,454
Transfer agent and administrative fees		25,157
Portfolio accounting fees		10,062
Miscellaneous		23,913
Total liabilities		271,997
Commitments and contingent liabilities (Note 11)		—
Net assets	$	122,627,364
Net assets consist of:
Paid in capital	$	115,357,585
Accumulated net investment loss		(807,403	)
Accumulated net realized loss on investments		(4,519,278	)
Net unrealized appreciation on investments		12,596,460
Net assets	$	122,627,364
A-Class:
Net assets	$	17,717,823
Capital shares outstanding		371,236
Net asset value per share	$	47.73
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.11
C-Class:
Net assets	$	17,949,700
Capital shares outstanding		424,025
Net asset value per share	$	42.33
H-Class:
Net assets	$	86,959,841
Capital shares outstanding		1,820,108
Net asset value per share	$	47.78

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	523,260
Interest		788
Total investment income		524,048
Expenses:
Management fees		488,636
Transfer agent and administrative fees		162,878
Distribution and service fees:
A-Class		29,599
C-Class		97,254
H-Class		108,966
Portfolio accounting fees		65,150
Custodian fees		7,672
Trustees’ fees*		5,615
Line of credit fees		113
Miscellaneous		98,395
Total expenses		1,064,278
Net investment loss		(540,230	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,186,892
Net realized gain		3,186,892
Net change in unrealized appreciation (depreciation) on:
Investments		137,419
Net change in unrealized appreciation (depreciation)		137,419
Net realized and unrealized gain		3,324,311
Net increase in net assets resulting from operations	$	2,784,081

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

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(540,230	)	$	(1,474,357	)
Net realized gain on investments		3,186,892			618,071
Net change in unrealized appreciation (depreciation) on investments		137,419			(19,480,581	)
Net increase (decrease) in net assets resulting from operations		2,784,081			(20,336,867	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(2,228,224	)
C-Class		—			(1,333,119	)
H-Class		—			(6,095,021	)
Total distributions to shareholders		—			(9,656,364	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,873,741			53,831,940
C-Class		1,781,065			8,486,478
H-Class		50,166,826			132,856,460
Distributions reinvested
A-Class		—			2,217,738
C-Class		—			1,326,118
H-Class		—			6,025,101
Cost of shares redeemed
A-Class		(13,887,236	)		(60,087,772	)
C-Class		(4,570,024	)		(12,136,902	)
H-Class		(59,732,031	)		(150,323,558	)
Net decrease from capital share transactions		(24,367,659	)		(17,804,397	)
Net decrease in net assets		(21,583,578	)		(47,797,628	)
Net assets:
Beginning of period		144,210,942			192,008,570
End of period	$	122,627,364		$	144,210,942
Accumulated net investment loss at end of period	$	(807,403	)	$	(267,173	)
Capital share activity:
Shares sold
A-Class		39,532			1,045,660
C-Class		42,356			181,153
H-Class		1,054,158			2,636,800
Shares issued from reinvestment of distributions
A-Class		—			45,094
C-Class		—			30,201
H-Class		—			122,362
Shares redeemed
A-Class		(292,152	)		(1,221,580	)
C-Class		(108,046	)		(270,847	)
H-Class		(1,272,520	)		(3,033,087	)
Net decrease in shares		(536,672	)		(464,244	)

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	46.51		$	53.86		$	58.66		$	49.76		$	44.11		$	42.76
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.36	)		(.29	)		(.22	)		(.19	)		(.45	)
Net gain (loss) on investments (realized and unrealized)		1.40			(4.48	)		3.88			11.05			5.84			1.80
Total from investment operations		1.22			(4.84	)		3.59			10.83			5.65			1.35
Less distributions from:
Net realized gains		—			(2.51	)		(8.39	)		(1.93	)		—			—
Total distributions		—			(2.51	)		(8.39	)		(1.93	)		—			—
Net asset value, end of period	$	47.73		$	46.51		$	53.86		$	58.66		$	49.76		$	44.11
Total Returnc		2.60	%		(9.23	%)		7.18	%		21.90	%		12.81	%		3.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,718		$	29,017		$	40,648		$	59,293		$	45,638		$	36,052
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.71	%)		(0.53	%)		(0.40	%)		(0.43	%)		(1.09	%)
Total expenses		1.52	%		1.50	%		1.51	%		1.52	%		1.50	%		1.50	%
Portfolio turnover rate		41	%		143	%		134	%		131	%		188	%		226	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	41.41		$	48.60		$	54.13		$	46.39		$	41.43		$	40.47
Income (loss) from investment operations:
Net investment income (loss)b		(.31	)		(.66	)		(.64	)		(.58	)		(.49	)		(.71	)
Net gain (loss) on investments (realized and unrealized)		1.23			(4.02	)		3.50			10.25			5.45			1.67
Total from investment operations		.92			(4.68	)		2.86			9.67			4.96			.96
Less distributions from:
Net realized gains		—			(2.51	)		(8.39	)		(1.93	)		—			—
Total distributions		—			(2.51	)		(8.39	)		(1.93	)		—			—
Net asset value, end of period	$	42.33		$	41.41		$	48.60		$	54.13		$	46.39		$	41.43
Total Returnc		2.22	%		(9.92	%)		6.39	%		20.98	%		12.00	%		2.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,950		$	20,279		$	26,689		$	28,567		$	18,837		$	16,228
Ratios to average net assets:
Net investment income (loss)		(1.46	%)		(1.46	%)		(1.26	%)		(1.15	%)		(1.19	%)		(1.83	%)
Total expenses		2.27	%		2.25	%		2.26	%		2.27	%		2.25	%		2.25	%
Portfolio turnover rate		41	%		143	%		134	%		131	%		188	%		226	%

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	46.56		$	53.91		$	58.71		$	49.80		$	44.14		$	42.81
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.36	)		(.29	)		(.18	)		(.20	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		1.39			(4.48	)		3.88			11.02			5.86			1.77
Total from investment operations		1.22			(4.84	)		3.59			10.84			5.66			1.33
Less distributions from:
Net realized gains		—			(2.51	)		(8.39	)		(1.93	)		—			—
Total distributions		—			(2.51	)		(8.39	)		(1.93	)		—			—
Net asset value, end of period	$	47.78		$	46.56		$	53.91		$	58.71		$	49.80		$	44.14
Total Returnc		2.60	%		(9.22	%)		7.18	%		21.91	%		12.82	%		3.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	86,960		$	94,915		$	124,672		$	186,863		$	242,157		$	312,510
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.71	%)		(0.52	%)		(0.33	%)		(0.45	%)		(1.08	%)
Total expenses		1.52	%		1.50	%		1.51	%		1.52	%		1.50	%		1.50	%
Portfolio turnover rate		41	%		143	%		134	%		131	%		188	%		226	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P MIDCAP 400^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Joy Global, Inc.	4.1%
Talen Energy Corp.	3.0%
United States Steel Corp.	2.7%
Allegheny Technologies, Inc.	2.2%
KB Home	2.2%
WPX Energy, Inc.	2.2%
Terex Corp.	2.2%
Tech Data Corp.	2.1%
Computer Sciences Corp.	1.9%
Reliance Steel & Aluminum Co.	1.8%
Top Ten Total	24.4%
“Ten Largest Holdings” excludes any temporary cash investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Industrial - 24.0%
Joy Global, Inc.		41,688	$	1,156,424
Terex Corp.		24,065		611,492
Tech Data Corp.*		6,887		583,398
Arrow Electronics, Inc.*		7,999		511,696
Greif, Inc. — Class A		8,591		426,028
Avnet, Inc.		9,970		409,368
KLX, Inc.*		9,841		346,403
Triumph Group, Inc.		12,248		341,474
Vishay Intertechnology, Inc.		23,487		330,932
AECOM*		10,381		308,627
Oshkosh Corp.		5,448		305,088
Trinity Industries, Inc.		12,319		297,873
Jabil Circuit, Inc.		13,089		285,602
AGCO Corp.		5,058		249,461
EMCOR Group, Inc.		3,941		234,962
Granite Construction, Inc.		2,925		145,490
Regal Beloit Corp.		2,234		132,901
GATX Corp.		2,589		115,340
Total Industrial				6,792,559
Consumer, Cyclical - 14.5%
KB Home		38,777		625,084
Ingram Micro, Inc. — Class A		13,730		489,612
World Fuel Services Corp.		9,119		421,845
CST Brands, Inc.		7,520		361,637
GameStop Corp. — Class A		12,023		331,715
Dana, Inc.		16,625		259,184
Big Lots, Inc.		4,760		227,290
Dick’s Sporting Goods, Inc.		3,769		213,778
Fossil Group, Inc.*		6,561		182,199
J.C. Penney Company, Inc.*		17,158		158,197
Deckers Outdoor Corp.*		2,587		154,056
Abercrombie & Fitch Co. — Class A		9,593		152,432
Office Depot, Inc.		40,849		145,831
Cabela’s, Inc.*		2,480		136,226
Ascena Retail Group, Inc.*		23,279		130,130
Guess?, Inc.		8,144		118,984
Total Consumer, Cyclical				4,108,200
Financial - 14.1%
Reinsurance Group of America, Inc. — Class A		4,189		452,161
Genworth Financial, Inc. — Class A*		59,458		294,912
Aspen Insurance Holdings Ltd.		5,474		255,035
Endurance Specialty Holdings Ltd.		3,823		250,215
Hancock Holding Co.		7,661		248,447
Kemper Corp.		6,147		241,700
Senior Housing Properties Trust		10,458		237,501
Hanover Insurance Group, Inc.		3,001		226,335
CNO Financial Group, Inc.		14,234		217,353
Everest Re Group Ltd.		1,120		212,766
Alleghany Corp.*		364		191,107
First American Financial Corp.		4,213		165,487
WR Berkley Corp.		2,798		161,612
Trustmark Corp.		4,965		136,835
Associated Banc-Corp.		6,819		133,584
Umpqua Holdings Corp.		8,012		120,581
Prosperity Bancshares, Inc.		2,196		120,538
Stifel Financial Corp.*		3,110		119,580
International Bancshares Corp.		3,368		100,299
TCF Financial Corp.		6,526		94,692
Huntington Bancshares, Inc.		1		6
Total Financial				3,980,746
Basic Materials - 13.0%
United States Steel Corp.		40,814		769,753
Allegheny Technologies, Inc.		34,948		631,510
Reliance Steel & Aluminum Co.		7,196		518,328
Commercial Metals Co.		30,779		498,312
Domtar Corp.		10,379		385,372
Steel Dynamics, Inc.		15,284		381,947
Carpenter Technology Corp.		4,408		181,874
Worthington Industries, Inc.		3,660		175,790
Olin Corp.		6,731		138,120
Total Basic Materials				3,681,006
Energy - 11.4%
WPX Energy, Inc.*		47,219		622,819
SM Energy Co.		12,311		474,958
CONSOL Energy, Inc.		21,017		403,526
Diamond Offshore Drilling, Inc.		18,820		331,420
Murphy USA, Inc.*		4,277		305,207
Patterson-UTI Energy, Inc.		11,479		256,785
NOW, Inc.*		7,512		160,982
Oil States International, Inc.*		5,036		158,987
Western Refining, Inc.		5,877		155,505
Noble Corporation plc		23,276		147,570
HollyFrontier Corp.		4,543		111,304
Rowan Companies plc — Class A		5,908		89,565
Total Energy				3,218,628
Consumer, Non-cyclical - 10.4%
United Natural Foods, Inc.*		9,735		389,790
Aaron’s, Inc.		13,000		330,460
DeVry Education Group, Inc.		13,067		301,325
Owens & Minor, Inc.		7,583		263,358
ManpowerGroup, Inc.		3,466		250,453
Community Health Systems, Inc.*		21,309		245,906
Graham Holdings Co. — Class B		458		220,467
FTI Consulting, Inc.*		4,823		214,913
LifePoint Health, Inc.*		3,281		194,334
Dean Foods Co.		11,571		189,764
Tenet Healthcare Corp.*		8,018		181,688
Avis Budget Group, Inc.*		4,530		154,971
Total Consumer, Non-cyclical				2,937,429
Utilities - 5.9%
Talen Energy Corp.*		60,327		835,530
MDU Resources Group, Inc.		12,985		330,338
Great Plains Energy, Inc.		5,450		148,730
PNM Resources, Inc.		3,894		127,412

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
ONE Gas, Inc.		1,857	$	114,837
Hawaiian Electric Industries, Inc.		3,598		107,400
Total Utilities				1,664,247
Technology - 4.7%
Computer Sciences Corp.		10,400		542,984
SYNNEX Corp.		3,027		345,411
3D Systems Corp.*		16,798		301,524
Lexmark International, Inc. — Class A		3,506		140,100
Total Technology				1,330,019
Communications - 1.5%
Telephone & Data Systems, Inc.		15,307		416,044
Total Common Stocks
(Cost $22,805,536)				28,128,878

	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.6%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	91,415		91,415
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		72,584		72,584
Total Repurchase Agreements
(Cost $163,999)				163,999
Total Investments - 100.1%
(Cost $22,969,535)			$	28,292,877
Other Assets & Liabilities, net - (0.1)%				(19,589	)
Total Net Assets - 100.0%			$	28,273,288

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	28,128,878	$	—	$	—	$	28,128,878
Repurchase Agreements		—		163,999		—		163,999
Total	$	28,128,878	$	163,999	$	—	$	28,292,877

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $22,805,536)	$	28,128,878
Repurchase agreements, at value (cost $163,999)		163,999
Total investments (cost $22,969,535)		28,292,877
Receivables:
Securities sold		417,779
Fund shares sold		15,859
Dividends		23,056
Total assets		28,749,571
Liabilities:
Payable for:
Securities purchased		332,383
Fund shares redeemed		97,998
Management fees		19,315
Distribution and service fees		8,070
Transfer agent and administrative fees		6,438
Portfolio accounting fees		2,575
Miscellaneous		9,504
Total liabilities		476,283
Commitments and contingent liabilities (Note 11)		—
Net assets	$	28,273,288
Net assets consist of:
Paid in capital	$	27,198,343
Undistributed net investment income		20,173
Accumulated net realized loss on investments		(4,268,570	)
Net unrealized appreciation on investments		5,323,342
Net assets	$	28,273,288
A-Class:
Net assets	$	1,948,863
Capital shares outstanding		42,441
Net asset value per share	$	45.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.21
C-Class:
Net assets	$	2,682,313
Capital shares outstanding		64,891
Net asset value per share	$	41.34
H-Class:
Net assets	$	23,642,112
Capital shares outstanding		515,355
Net asset value per share	$	45.88

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	271,198
Interest		366
Total investment income		271,564
Expenses:
Management fees		145,127
Transfer agent and administrative fees		48,376
Distribution and service fees:
A-Class		2,672
C-Class		12,363
H-Class		42,613
Portfolio accounting fees		19,350
Custodian fees		2,278
Trustees’ fees*		2,149
Line of credit fees		29
Miscellaneous		28,982
Total expenses		303,939
Net investment loss		(32,375	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		606,420
Net realized gain		606,420
Net change in unrealized appreciation (depreciation) on:
Investments		405,831
Net change in unrealized appreciation (depreciation)		405,831
Net realized and unrealized gain		1,012,251
Net increase in net assets resulting from operations	$	979,876

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(32,375	)	$	52,548
Net realized gain (loss) on investments		606,420			(1,107,050	)
Net change in unrealized appreciation (depreciation) on investments		405,831			1,847,168
Net increase in net assets resulting from operations		979,876			792,666
Distributions to shareholders from:
Net investment income
A-Class		—			(2,509	)
C-Class		—			(4,545	)
H-Class		—			(21,661	)
Total distributions to shareholders		—			(28,715	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,281,816			7,839,706
C-Class		2,251,681			1,496,883
H-Class		164,640,968			117,775,736
Distributions reinvested
A-Class		—			2,473
C-Class		—			4,535
H-Class		—			21,374
Cost of shares redeemed
A-Class		(5,279,870	)		(4,655,658	)
C-Class		(1,934,229	)		(2,314,575	)
H-Class		(189,655,270	)		(79,851,430	)
Net increase (decrease) from capital share transactions		(27,694,904	)		40,319,044
Net increase (decrease) in net assets		(26,715,028	)		41,082,995
Net assets:
Beginning of period		54,988,316			13,905,321
End of period	$	28,273,288		$	54,988,316
Undistributed net investment income at end of period	$	20,173		$	52,548
Capital share activity:
Shares sold
A-Class		51,915			185,812
C-Class		57,353			42,699
H-Class		3,809,148			2,852,823
Shares issued from reinvestment of distributions
A-Class		—			58
C-Class		—			118
H-Class		—			505
Shares redeemed
A-Class		(122,008	)		(115,018	)
C-Class		(48,948	)		(59,256	)
H-Class		(4,427,460	)		(1,916,239	)
Net increase (decrease) in shares		(680,000	)		991,502

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	42.43		$	45.68		$	43.04		$	36.18		$	30.88		$	31.43
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		.16			.11			(.03	)		.07			.06
Net gain (loss) on investments (realized and unrealized)		3.55			(3.30	)		2.58			7.08			5.23			(.61	)
Total from investment operations		3.49			(3.14	)		2.69			7.05			5.30			(.55	)
Less distributions from:
Net investment income		—			(.11	)		(.05	)		(.19	)		—			—
Total distributions		—			(.11	)		(.05	)		(.19	)		—			—
Net asset value, end of period	$	45.92		$	42.43		$	45.68		$	43.04		$	36.18		$	30.88
Total Returnc		8.23	%		(6.88	%)		6.25	%		19.49	%		17.16	%		(1.75	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,949		$	4,775		$	1,904		$	2,357		$	1,571		$	6,817
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		0.39	%		0.26	%		(0.06	%)		0.23	%		0.22	%
Total expenses		1.52	%		1.50	%		1.51	%		1.52	%		1.51	%		1.49	%
Portfolio turnover rate		351	%		493	%		638	%		506	%		757	%		619	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	38.33		$	41.59		$	39.48		$	33.46		$	28.78		$	29.53
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.12	)		(.18	)		(.25	)		(.13	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		3.16			(3.03	)		2.34			6.46			4.81			(.59	)
Total from investment operations		3.01			(3.15	)		2.16			6.21			4.68			(.75	)
Less distributions from:
Net investment income		—			(.11	)		(.05	)		(.19	)		—			—
Total distributions		—			(.11	)		(.05	)		(.19	)		—			—
Net asset value, end of period	$	41.34		$	38.33		$	41.59		$	39.48		$	33.46		$	28.78
Total Returnc		7.83	%		(7.58	%)		5.47	%		18.57	%		16.26	%		(2.54	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,682		$	2,165		$	3,033		$	2,207		$	3,413		$	2,194
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(0.30	%)		(0.44	%)		(0.71	%)		(0.45	%)		(0.60	%)
Total expenses		2.27	%		2.25	%		2.26	%		2.28	%		2.26	%		2.26	%
Portfolio turnover rate		351	%		493	%		638	%		506	%		757	%		619	%

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	42.38		$	45.62		$	42.98		$	36.16		$	30.86		$	31.42
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.20			.11			.06			.08			.01
Net gain (loss) on investments (realized and unrealized)		3.53			(3.33	)		2.58			6.95			5.22			(.57	)
Total from investment operations		3.50			(3.13	)		2.69			7.01			5.30			(.56	)
Less distributions from:
Net investment income		—			(.11	)		(.05	)		(.19	)		—			—
Total distributions		—			(.11	)		(.05	)		(.19	)		—			—
Net asset value, end of period	$	45.88		$	42.38		$	45.62		$	42.98		$	36.16		$	30.86
Total Returnc		8.23	%		(6.86	%)		6.26	%		19.39	%		17.17	%		(1.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,642		$	48,048		$	8,968		$	10,563		$	78,237		$	18,838
Ratios to average net assets:
Net investment income (loss)		(0.12	%)		0.47	%		0.25	%		0.15	%		0.24	%		0.02	%
Total expenses		1.52	%		1.51	%		1.51	%		1.52	%		1.52	%		1.51	%
Portfolio turnover rate		351	%		493	%		638	%		506	%		757	%		619	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P SMALLCAP 600^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Supernus Pharmaceuticals, Inc.	2.0%
LGI Homes, Inc.	1.8%
Fabrinet	1.7%
Ligand Pharmaceuticals, Inc. — Class B	1.5%
Depomed, Inc.	1.4%
LogMeIn, Inc.	1.4%
TASER International, Inc.	1.4%
Eagle Pharmaceuticals, Inc.	1.3%
Nautilus, Inc.	1.3%
PGT, Inc.	1.2%
Top Ten Total	15.0%
“Ten Largest Holdings” excludes any temporary cash investments.

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Non-cyclical - 34.1%
Supernus Pharmaceuticals, Inc.*		18,892	$	467,200
Ligand Pharmaceuticals, Inc. — Class B*		3,534		360,680
Depomed, Inc.*		13,541		338,390
Eagle Pharmaceuticals, Inc.*		4,559		319,130
Zeltiq Aesthetics, Inc.*		7,373		289,169
LendingTree, Inc.*		2,774		268,828
Masimo Corp.*		4,239		252,178
NutriSystem, Inc.		8,128		241,320
MiMedx Group, Inc.*		26,645		228,614
AMN Healthcare Services, Inc.*		6,907		220,125
BioTelemetry, Inc.*		11,522		213,964
Vascular Solutions, Inc.*		4,315		208,112
Cynosure, Inc. — Class A*		3,711		189,038
On Assignment, Inc.*		5,184		188,128
Cantel Medical Corp.		2,399		187,074
Repligen Corp.*		5,967		180,144
Cross Country Healthcare, Inc.*		15,000		176,700
Emergent BioSolutions, Inc.*		5,576		175,811
TrueBlue, Inc.*		7,752		175,660
Surgical Care Affiliates, Inc.*		3,400		165,784
Almost Family, Inc.*		4,401		161,825
Merit Medical Systems, Inc.*		6,343		154,071
Nektar Therapeutics*		8,966		154,036
Cambrex Corp.*		3,382		150,364
Albany Molecular Research, Inc.*		9,081		149,927
Surmodics, Inc.*		4,941		148,675
Lannett Company, Inc.*		5,565		147,862
Calavo Growers, Inc.		2,231		145,974
Cal-Maine Foods, Inc.		3,687		142,097
US Physical Therapy, Inc.		2,254		141,326
Neogen Corp.*		2,508		140,298
B&G Foods, Inc.		2,754		135,442
Amphastar Pharmaceuticals, Inc.*		6,860		130,134
Natus Medical, Inc.*		3,210		126,121
Matthews International Corp. — Class A		2,022		122,857
Heidrick & Struggles International, Inc.		6,315		117,143
LHC Group, Inc.*		3,005		110,824
Luminex Corp.*		4,814		109,374
Chemed Corp.		768		108,342
Monro Muffler Brake, Inc.		1,712		104,723
Integra LifeSciences Holdings Corp.*		1,164		96,088
Healthcare Services Group, Inc.		2,377		94,082
WD-40 Co.		804		90,394
Korn/Ferry International		3,926		82,446
CorVel Corp.*		1,877		72,077
Phibro Animal Health Corp. — Class A		1,759		47,810
Impax Laboratories, Inc.*		2,003		47,471
Acorda Therapeutics, Inc.*		1,945		40,612
Total Consumer, Non-cyclical				8,118,444
Financial - 18.9%
First Midwest Bancorp, Inc.		14,720		284,980
Universal Insurance Holdings, Inc.		10,555		265,986
Opus Bank		7,476		264,426
CoreSite Realty Corp.		3,508		259,732
Ameris Bancorp		6,748		235,843
Home BancShares, Inc.		10,482		218,130
BofI Holding, Inc.*		9,117		204,221
Walker & Dunlop, Inc.*		7,996		201,979
Employers Holdings, Inc.		6,243		186,229
Hanmi Financial Corp.		6,976		183,748
Pinnacle Financial Partners, Inc.		3,269		176,788
Simmons First National Corp. — Class A		3,361		167,714
Acadia Realty Trust		4,464		161,775
Four Corners Property Trust, Inc.		7,334		156,434
Evercore Partners, Inc. — Class A		2,779		143,146
Northfield Bancorp, Inc.		8,878		142,936
Bank Mutual Corp.		18,131		139,246
ServisFirst Bancshares, Inc.		2,622		136,108
LegacyTexas Financial Group, Inc.		4,286		135,566
AMERISAFE, Inc.		2,112		124,143
Hope Bancorp, Inc.		6,649		115,493
HFF, Inc. — Class A		3,937		109,016
RLI Corp.		1,555		106,300
Financial Engines, Inc.		3,473		103,183
First Financial Bankshares, Inc.		2,660		96,930
Banner Corp.		2,152		94,128
Retail Opportunity Investments Corp.		4,062		89,202
Total Financial				4,503,382
Industrial - 17.2%
Fabrinet*		8,914		397,475
TASER International, Inc.*		11,618		332,391
PGT, Inc.*		27,365		291,986
Lydall, Inc.*		4,676		239,083
Drew Industries, Inc.		2,404		235,640
II-VI, Inc.*		9,657		234,955
Universal Forest Products, Inc.		2,349		231,353
Headwaters, Inc.*		13,349		225,865
AZZ, Inc.		2,826		184,453
Griffon Corp.		10,522		178,979
John Bean Technologies Corp.		2,450		172,848
US Concrete, Inc.*		3,732		171,915
US Ecology, Inc.		3,260		146,178
Trex Company, Inc.*		2,385		140,047
Comfort Systems USA, Inc.		4,423		129,638
Methode Electronics, Inc.		3,606		126,102
AAON, Inc.		3,730		107,499
Matson, Inc.		2,571		102,531
Sturm Ruger & Company, Inc.		1,736		100,271
Apogee Enterprises, Inc.		2,199		98,273
Exponent, Inc.		1,867		95,329
Proto Labs, Inc.*		1,569		93,999
OSI Systems, Inc.*		973		63,615
Total Industrial				4,100,425
Consumer, Cyclical - 12.7%
LGI Homes, Inc.*		11,460		422,186
Nautilus, Inc.*		13,630		309,674
Installed Building Products, Inc.*		8,066		289,327
Meritage Homes Corp.*		7,690		266,843

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Lithia Motors, Inc. — Class A		2,026	$	193,524
American Woodmark Corp.*		2,153		173,467
Fox Factory Holding Corp.*		6,970		160,101
Hawaiian Holdings, Inc.*		3,122		151,729
Monarch Casino & Resort, Inc.*		5,962		150,064
Papa John’s International, Inc.		1,801		142,010
Allegiant Travel Co. — Class A		870		114,901
Interface, Inc. — Class A		6,496		108,418
Boyd Gaming Corp.*		5,435		107,504
Francesca’s Holdings Corp.*		6,603		101,884
Popeyes Louisiana Kitchen, Inc.*		1,852		98,415
Ruth’s Hospitality Group, Inc.		6,737		95,126
Gentherm, Inc.*		2,778		87,285
Sonic Corp.		1,856		48,590
Total Consumer, Cyclical				3,021,048
Technology - 8.6%
Ebix, Inc.		4,676		265,830
Take-Two Interactive Software, Inc.*		4,911		221,388
SPS Commerce, Inc.*		2,420		177,652
Blackbaud, Inc.		2,666		176,862
Tessera Technologies, Inc.		4,216		162,063
ExlService Holdings, Inc.*		3,169		157,943
Medidata Solutions, Inc.*		2,711		151,166
Kopin Corp.*		66,356		144,656
Synchronoss Technologies, Inc.*		3,164		130,294
CEVA, Inc.*		3,644		127,795
Omnicell, Inc.*		2,644		101,265
Rambus, Inc.*		7,628		95,350
Cray, Inc.*		3,279		77,188
Virtusa Corp.*		2,855		70,461
Total Technology				2,059,913
Communications - 5.1%
LogMeIn, Inc.		3,725		336,702
Stamps.com, Inc.*		1,957		184,956
8x8, Inc.*		11,779		181,750
World Wrestling Entertainment, Inc. — Class A		7,532		160,432
NIC, Inc.		5,331		125,279
HealthStream, Inc.*		3,829		105,680
Blue Nile, Inc.		2,446		84,191
General Communication, Inc. — Class A*		2,830		38,913
Total Communications				1,217,903
Basic Materials - 2.0%
Balchem Corp.		2,302		178,473
Innospec, Inc.		2,392		145,458
Deltic Timber Corp.		1,390		94,145
Aceto Corp.		3,645		69,219
Total Basic Materials				487,295
Energy - 0.5%
Synergy Resources Corp.*		15,895		110,152
Utilities - 0.4%
Piedmont Natural Gas Company, Inc.		1,758		105,550
Total Common Stocks
(Cost $19,255,695)				23,724,112
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.3%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	34,622		34,622
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		27,490		27,490
Total Repurchase Agreements
(Cost $62,112)				62,112
Total Investments - 99.8%
(Cost $19,317,807)			$	23,786,224
Other Assets & Liabilities, net - 0.2%				53,143
Total Net Assets - 100.0%			$	23,839,367

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P SMALLCAP 600® PURE GROWTH FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	23,724,112	$	—	$	—	$	23,724,112
Repurchase Agreements		—		62,112		—		62,112
Total	$	23,724,112	$	62,112	$	—	$	23,786,224

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $19,255,695)	$	23,724,112
Repurchase agreements, at value (cost $62,112)		62,112
Total investments (cost $19,317,807)		23,786,224
Receivables:
Securities sold		117,960
Fund shares sold		2,323
Dividends		12,014
Total assets		23,918,521
Liabilities:
Payable for:
Fund shares redeemed		40,802
Management fees		14,077
Licensing fees		8,331
Distribution and service fees		6,251
Transfer agent and administrative fees		4,692
Portfolio accounting fees		1,877
Miscellaneous		3,124
Total liabilities		79,154
Commitments and contingent liabilities (Note 11)		—
Net assets	$	23,839,367
Net assets consist of:
Paid in capital	$	23,274,872
Accumulated net investment loss		(129,852	)
Accumulated net realized loss on investments		(3,774,070	)
Net unrealized appreciation on investments		4,468,417
Net assets	$	23,839,367
A-Class:
Net assets	$	1,626,486
Capital shares outstanding		27,766
Net asset value per share	$	58.58
Maximum offering price per share (Net asset value divided by 95.25%)	$	61.50
C-Class:
Net assets	$	2,487,747
Capital shares outstanding		46,605
Net asset value per share	$	53.38
H-Class:
Net assets	$	19,725,134
Capital shares outstanding		336,792
Net asset value per share	$	58.57

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	119,484
Interest		234
Total investment income		119,718
Expenses:
Management fees		118,559
Transfer agent and administrative fees		39,520
Distribution and service fees:
A-Class		3,473
C-Class		12,490
H-Class		32,924
Portfolio accounting fees		15,807
Custodian fees		1,861
Trustees’ fees*		1,563
Line of credit fees		78
Miscellaneous		23,295
Total expenses		249,570
Net investment loss		(129,852	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,209,958
Net realized gain		2,209,958
Net change in unrealized appreciation (depreciation) on:
Investments		743,351
Net change in unrealized appreciation (depreciation)		743,351
Net realized and unrealized gain		2,953,309
Net increase in net assets resulting from operations	$	2,823,457

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

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(129,852	)	$	(279,022	)
Net realized gain (loss) on investments		2,209,958			(3,903,116	)
Net change in unrealized appreciation (depreciation) on investments		743,351			(3,825,931	)
Net increase (decrease) in net assets resulting from operations		2,823,457			(8,008,069	)
Capital share transactions:
Proceeds from sale of shares
A-Class		4,723,418			6,933,578
C-Class		926,822			4,477,038
H-Class		95,214,164			162,349,042
Cost of shares redeemed
A-Class		(5,789,581	)		(6,602,316	)
C-Class		(1,240,836	)		(6,727,877	)
H-Class		(102,856,950	)		(181,452,955	)
Net decrease from capital share transactions		(9,022,963	)		(21,023,490	)
Net decrease in net assets		(6,199,506	)		(29,031,559	)
Net assets:
Beginning of period		30,038,873			59,070,432
End of period	$	23,839,367		$	30,038,873
Accumulated net investment loss at end of period	$	(129,852	)	$	—
Capital share activity:
Shares sold
A-Class		87,373			118,395
C-Class		17,992			84,005
H-Class		1,736,861			2,856,633
Shares redeemed
A-Class		(106,481	)		(119,475	)
C-Class		(24,546	)		(130,988	)
H-Class		(1,879,252	)		(3,240,197	)
Net decrease in shares		(168,053	)		(431,627	)

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	52.28		$	58.90		$	52.99		$	41.94		$	37.97		$	36.06
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.20	)		(.46	)		(.31	)		(.12	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		6.50			(6.42	)		6.37			11.36			4.09			2.26
Total from investment operations		6.30			(6.62	)		5.91			11.05			3.97			1.91
Net asset value, end of period	$	58.58		$	52.28		$	58.90		$	52.99		$	41.94		$	37.97
Total Returnc		12.03	%		(11.24	%)		11.15	%		26.35	%		10.46	%		5.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,626		$	2,451		$	2,825		$	7,265		$	995		$	1,018
Ratios to average net assets:
Net investment income (loss)		(0.75	%)		(0.36	%)		(0.88	%)		(0.60	%)		(0.31	%)		(1.00	%)
Total expenses		1.52	%		1.50	%		1.51	%		1.53	%		1.51	%		1.52	%
Portfolio turnover rate		278	%		309	%		380	%		677	%		645	%		500	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	47.82		$	54.28		$	49.21		$	39.24		$	35.79		$	34.25
Income (loss) from investment operations:
Net investment income (loss)b		(.39	)		(.62	)		(.74	)		(.66	)		(.42	)		(.57	)
Net gain (loss) on investments (realized and unrealized)		5.95			(5.84	)		5.81			10.63			3.87			2.11
Total from investment operations		5.56			(6.46	)		5.07			9.97			3.45			1.54
Net asset value, end of period	$	53.38		$	47.82		$	54.28		$	49.21		$	39.24		$	35.79
Total Returnc		11.61	%		(11.90	%)		10.30	%		25.41	%		9.64	%		4.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,488		$	2,542		$	5,436		$	4,268		$	3,122		$	2,568
Ratios to average net assets:
Net investment income (loss)		(1.55	%)		(1.19	%)		(1.50	%)		(1.46	%)		(1.17	%)		(1.71	%)
Total expenses		2.27	%		2.25	%		2.25	%		2.28	%		2.26	%		2.26	%
Portfolio turnover rate		278	%		309	%		380	%		677	%		645	%		500	%

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

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	52.27		$	58.89		$	52.99		$	41.94		$	37.97		$	36.07
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.28	)		(.31	)		(.38	)		(.31	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		6.51			(6.34	)		6.21			11.43			4.28			2.29
Total from investment operations		6.30			(6.62	)		5.90			11.05			3.97			1.90
Net asset value, end of period	$	58.57		$	52.27		$	58.89		$	52.99		$	41.94		$	37.97
Total Returnc		12.03	%		(11.24	%)		11.13	%		26.35	%		10.46	%		5.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,725		$	25,046		$	50,810		$	16,996		$	5,844		$	29,214
Ratios to average net assets:
Net investment income (loss)		(0.76	%)		(0.49	%)		(0.58	%)		(0.77	%)		(0.81	%)		(1.10	%)
Total expenses		1.52	%		1.50	%		1.49	%		1.52	%		1.50	%		1.52	%
Portfolio turnover rate		278	%		309	%		380	%		677	%		645	%		500	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

S&P SMALLCAP 600^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Century Aluminum Co.	2.4%
EZCORP, Inc. — Class A	2.1%
SPX Corp.	1.9%
Orion Group Holdings, Inc.	1.6%
Chemours Co.	1.5%
Archrock, Inc.	1.5%
Chart Industries, Inc.	1.5%
SkyWest, Inc.	1.4%
Big 5 Sporting Goods Corp.	1.4%
Kelly Services, Inc. — Class A	1.4%
Top Ten Total	16.7%
“Ten Largest Holdings” excludes any temporary cash investments.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Industrial - 26.4%
SPX Corp.*		30,822	$	620,755
Orion Group Holdings, Inc.*		76,301		522,662
Chart Industries, Inc.*		14,763		484,669
TTM Technologies, Inc.*		37,364		427,817
Sanmina Corp.*		14,336		408,146
MYR Group, Inc.*		13,174		396,537
Benchmark Electronics, Inc.*		15,656		390,617
Bel Fuse, Inc. — Class B		15,567		375,787
TimkenSteel Corp.*		32,868		343,471
Greenbrier Companies, Inc.		8,956		316,147
Atlas Air Worldwide Holdings, Inc.*		7,139		305,692
Roadrunner Transportation Systems, Inc.*		37,304		297,685
LSB Industries, Inc.*		33,403		286,598
ArcBest Corp.		14,626		278,187
Saia, Inc.*		8,724		261,371
Celadon Group, Inc.		29,638		259,036
Plexus Corp.*		5,327		249,197
Olympic Steel, Inc.		10,723		236,978
SPX FLOW, Inc.*		6,908		213,595
Powell Industries, Inc.		5,275		211,264
Briggs & Stratton Corp.		10,056		187,544
Hub Group, Inc. — Class A*		4,585		186,885
AAR Corp.		5,915		185,258
Boise Cascade Co.*		6,722		170,739
Echo Global Logistics, Inc.*		6,866		158,330
Hornbeck Offshore Services, Inc.*		23,593		129,761
Kaman Corp.		2,574		113,050
Aegion Corp. — Class A*		5,865		111,846
Marten Transport Ltd.		4,981		104,601
Astec Industries, Inc.		1,606		96,151
Haynes International, Inc.		2,262		83,943
Tredegar Corp.		4,339		80,662
Applied Industrial Technologies, Inc.		1,721		80,440
Tidewater, Inc.		14,902		42,024
Total Industrial				8,617,445
Consumer, Cyclical - 25.7%
EZCORP, Inc. — Class A*		62,262		688,618
SkyWest, Inc.		17,464		461,224
Big 5 Sporting Goods Corp.		33,477		455,957
Finish Line, Inc. — Class A		15,468		357,002
Veritiv Corp.*		6,419		322,041
Shoe Carnival, Inc.		12,070		321,787
Barnes & Noble Education, Inc.*		33,357		319,226
Iconix Brand Group, Inc.*		35,559		288,739
Titan International, Inc.		27,708		280,405
Tailored Brands, Inc.		16,729		262,645
ScanSource, Inc.*		7,006		255,719
Stage Stores, Inc.		44,995		252,422
Tuesday Morning Corp.*		38,561		230,595
Zumiez, Inc.*		12,763		229,734
Genesco, Inc.*		4,185		227,915
Anixter International, Inc.*		3,492		225,234
Perry Ellis International, Inc.*		10,966		211,424
Barnes & Noble, Inc.		18,659		210,847
Lumber Liquidators Holdings, Inc.*		10,377		204,116
Superior Industries International, Inc.		6,588		192,106
Sonic Automotive, Inc. — Class A		9,442		177,509
Group 1 Automotive, Inc.		2,695		172,157
VOXX International Corp. — Class A*		55,450		165,796
Children’s Place, Inc.		1,985		158,542
Ruby Tuesday, Inc.*		57,417		143,543
Biglari Holdings, Inc.*		322		140,398
Essendant, Inc.		6,804		139,618
Caleres, Inc.		5,238		132,469
Stein Mart, Inc.		20,171		128,086
Wolverine World Wide, Inc.		5,396		124,270
Kirkland’s, Inc.*		9,979		121,544
Fred’s, Inc. — Class A		12,339		111,791
Arctic Cat, Inc.		7,049		109,189
Regis Corp.*		7,199		90,347
Vitamin Shoppe, Inc.*		3,260		87,531
Daktronics, Inc.		8,392		80,060
Vera Bradley, Inc.*		5,244		79,447
Unifi, Inc.*		2,629		77,371
Movado Group, Inc.		3,273		70,304
Express, Inc.*		4,860		57,299
Total Consumer, Cyclical				8,365,027
Consumer, Non-cyclical - 14.9%
Kelly Services, Inc. — Class A		22,952		441,137
SpartanNash Co.		14,756		426,744
Rent-A-Center, Inc.		30,448		384,863
Seneca Foods Corp. — Class A*		13,326		376,326
Andersons, Inc.		8,318		300,945
Darling Ingredients, Inc.*		22,021		297,504
ABM Industries, Inc.		7,124		282,823
Magellan Health, Inc.*		4,637		249,146
Universal Corp.		3,728		217,044
Central Garden & Pet Co. — Class A*		7,964		197,507
Kindred Healthcare, Inc.		18,229		186,300
Select Medical Holdings Corp.*		13,757		185,720
AngioDynamics, Inc.*		10,487		183,942
Sanderson Farms, Inc.		1,830		176,284
CDI Corp.		27,103		153,674
RR Donnelley & Sons Co.*		9,590		150,755
Healthways, Inc.*		5,619		148,679
Viad Corp.		2,949		108,730
Green Dot Corp. — Class A*		4,573		105,453
Universal Technical Institute, Inc.		48,249		85,883
PharMerica Corp.*		2,848		79,943
Invacare Corp.		5,639		62,988
Central Garden & Pet Co.*		2,410		62,660
Total Consumer, Non-cyclical				4,865,050
Energy - 11.8%
Archrock, Inc.		37,609		491,925
Exterran Corp.*		24,604		385,791
Cloud Peak Energy, Inc.*		65,255		354,987
Green Plains, Inc.		13,472		352,966
Atwood Oceanics, Inc.		36,523		317,385

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Helix Energy Solutions Group, Inc.*		37,119	$	301,777
Newpark Resources, Inc.*		37,946		279,283
SunCoke Energy, Inc.*		34,660		277,973
Gulf Island Fabrication, Inc.		28,933		266,184
SEACOR Holdings, Inc.*		3,329		198,042
Pioneer Energy Services Corp.*		45,754		184,846
Era Group, Inc.*		20,394		164,172
REX American Resources Corp.*		1,846		156,467
Bristow Group, Inc.		7,125		99,893
Basic Energy Services, Inc.*		20,442		16,955
Total Energy				3,848,646
Financial - 8.0%
Enova International, Inc.*		39,976		386,968
First BanCorp*		53,129		276,271
World Acceptance Corp.*		5,093		249,761
International. FCStone, Inc.*		6,351		246,736
Piper Jaffray Cos.*		5,060		244,398
OFG Bancorp		20,299		205,223
Calamos Asset Management, Inc. — Class A		24,011		163,755
Infinity Property & Casualty Corp.		1,620		133,861
Stewart Information Services Corp.		2,981		132,505
Capstead Mortgage Corp.		13,537		127,654
Navigators Group, Inc.		1,214		117,661
Horace Mann Educators Corp.		3,205		117,463
Encore Capital Group, Inc.*		4,311		96,911
American Equity Investment Life Holding Co.		5,341		94,696
Total Financial				2,593,863
Basic Materials - 7.2%
Century Aluminum Co.*		113,720		790,354
Chemours Co.		31,320		501,119
PH Glatfelter Co.		13,579		294,393
Materion Corp.		6,939		213,097
Clearwater Paper Corp.*		2,139		138,329
A. Schulman, Inc.		4,162		121,197
Innophos Holdings, Inc.		2,918		113,890
Stepan Co.		1,498		108,845
Intrepid Potash, Inc.*		49,624		56,075
Total Basic Materials				2,337,299
Technology - 3.1%
Insight Enterprises, Inc.*		9,801		319,022
ManTech International Corp. — Class A		4,495		169,416
Engility Holdings, Inc.*		4,119		129,749
Ciber, Inc.*		95,183		109,460
Kulicke & Soffa Industries, Inc.*		7,800		100,854
CACI International, Inc. — Class A*		925		93,333
Brooks Automation, Inc.		5,819		79,197
Total Technology				1,001,031
Communications - 2.4%
Iridium Communications, Inc.*		19,985		162,078
Black Box Corp.		10,670		148,314
FTD Companies, Inc.*		5,041		103,693
Comtech Telecommunications Corp.		7,946		101,788
Blucora, Inc.*		9,059		101,461
Scholastic Corp.		2,190		86,199
Gannett Company, Inc.		6,163		71,737
Total Communications				775,270
Total Common Stocks
(Cost $27,919,505)				32,403,631
	Face Amount
REPURCHASE AGREEMENTS††,1 - 0.0%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	246		246
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		196		196
Total Repurchase Agreements
(Cost $442)				442
Total Investments - 99.5%
(Cost $27,919,947)			$	32,404,073
Other Assets & Liabilities, net - 0.5%				162,721
Total Net Assets - 100.0%			$	32,566,794

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
S&P SMALLCAP 600® PURE VALUE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	32,403,631	$	—	$	—	$	32,403,631
Repurchase Agreements		—		442		—		442
Total	$	32,403,631	$	442	$	—	$	32,404,073

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

For the period ended September 30, 2016, there were no transfers between levels.

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $27,919,505)	$	32,403,631
Repurchase agreements, at value (cost $442)		442
Total investments (cost $27,919,947)		32,404,073
Cash		20,893
Receivables:
Securities sold		210,765
Fund shares sold		6,756
Dividends		22,265
Total assets		32,664,752
Liabilities:
Payable for:
Fund shares redeemed		48,896
Management fees		20,576
Distribution and service fees		8,247
Transfer agent and administrative fees		6,859
Portfolio accounting fees		2,743
Miscellaneous		10,637
Total liabilities		97,958
Commitments and contingent liabilities (Note 11)		—
Net assets	$	32,566,794
Net assets consist of:
Paid in capital	$	58,656,088
Accumulated net investment loss		(74,847	)
Accumulated net realized loss on investments		(30,498,573	)
Net unrealized appreciation on investments		4,484,126
Net assets	$	32,566,794
A-Class:
Net assets	$	1,058,315
Capital shares outstanding		42,199
Net asset value per share	$	25.08
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.33
C-Class:
Net assets	$	2,222,518
Capital shares outstanding		101,566
Net asset value per share	$	21.88
H-Class:
Net assets	$	29,285,961
Capital shares outstanding		1,173,154
Net asset value per share	$	24.96

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $270)	$	154,650
Interest		240
Total investment income		154,890
Expenses:
Management fees		103,472
Transfer agent and administrative fees		34,491
Distribution and service fees:
A-Class		1,490
C-Class		12,402
H-Class		29,900
Portfolio accounting fees		13,796
Custodian fees		1,629
Trustees’ fees*		1,233
Line of credit fees		218
Miscellaneous		20,879
Total expenses		219,510
Net investment loss		(64,620	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(644,831	)
Net realized loss		(644,831	)
Net change in unrealized appreciation (depreciation) on:
Investments		529,853
Net change in unrealized appreciation (depreciation)		529,853
Net realized and unrealized loss		(114,978	)
Net decrease in net assets resulting from operations	$	(179,598	)

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

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(64,620	)	$	(74,791	)
Net realized loss on investments		(644,831	)		(1,683,099	)
Net change in unrealized appreciation (depreciation) on investments		529,853			635,355
Net decrease in net assets resulting from operations		(179,598	)		(1,122,535	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,563,607			2,492,235
C-Class		1,743,477			1,032,252
H-Class		223,382,690			83,674,345
Cost of shares redeemed
A-Class		(1,695,216	)		(2,714,593	)
C-Class		(1,540,401	)		(1,957,269	)
H-Class		(211,738,190	)		(76,422,564	)
Net increase from capital share transactions		11,715,967			6,104,406
Net increase in net assets		11,536,369			4,981,871
Net assets:
Beginning of period		21,030,425			16,048,554
End of period	$	32,566,794		$	21,030,425
Accumulated net investment loss at end of period	$	(74,847	)	$	(10,227	)
Capital share activity:
Shares sold
A-Class		66,100			99,870
C-Class		85,375			48,000
H-Class		9,704,847			3,744,799
Shares redeemed
A-Class		(71,956	)		(113,497	)
C-Class		(74,859	)		(92,281	)
H-Class		(9,315,023	)		(3,403,948	)
Net increase in shares		394,484			282,943

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.16		$	25.81		$	25.66		$	19.55		$	17.07		$	17.42
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.10	)		(.03	)		(.09	)		(.01	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		1.98			(2.55	)		.18			6.20			2.49			(.23	)
Total from investment operations		1.92			(2.65	)		.15			6.11			2.48			(.35	)
Net asset value, end of period	$	25.08		$	23.16		$	25.81		$	25.66		$	19.55		$	17.07
Total Returnc		8.29	%		(10.27	%)		0.58	%		31.25	%		14.53	%		(2.01	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,058		$	1,113		$	1,592		$	1,016		$	1,551		$	961
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(0.42	%)		(0.10	%)		(0.39	%)		(0.08	%)		(0.71	%)
Total expenses		1.52	%		1.50	%		1.50	%		1.52	%		1.51	%		1.53	%
Portfolio turnover rate		696	%		417	%		579	%		658	%		655	%		744	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	20.28		$	22.78		$	22.81		$	17.51		$	15.40		$	15.85
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.24	)		(.19	)		(.22	)		(.13	)		(.20	)
Net gain (loss) on investments (realized and unrealized)		1.73			(2.26	)		.16			5.52			2.24			(.25	)
Total from investment operations		1.60			(2.50	)		(.03	)		5.30			2.11			(.45	)
Net asset value, end of period	$	21.88		$	20.28		$	22.78		$	22.81		$	17.51		$	15.40
Total Returnc		7.89	%		(10.97	%)		(0.13	%)		30.27	%		13.70	%		(2.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,223		$	1,847		$	3,082		$	4,514		$	3,932		$	1,955
Ratios to average net assets:
Net investment income (loss)		(1.23	%)		(1.17	%)		(0.84	%)		(1.10	%)		(0.84	%)		(1.39	%)
Total expenses		2.27	%		2.25	%		2.25	%		2.27	%		2.26	%		2.26	%
Portfolio turnover rate		696	%		417	%		579	%		658	%		655	%		744	%

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	23.07		$	25.71		$	25.55		$	19.47		$	17.00		$	17.38
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.07	)		(.01	)		(.06	)		(.06	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		1.94			(2.57	)		.17			6.14			2.53			(.27	)
Total from investment operations		1.89			(2.64	)		.16			6.08			2.47			(.38	)
Net asset value, end of period	$	24.96		$	23.07		$	25.71		$	25.55		$	19.47		$	17.00
Total Returnc		8.19	%		(10.27	%)		0.63	%		31.23	%		14.53	%		(2.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	29,286		$	18,071		$	11,374		$	22,380		$	30,743		$	24,298
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.32	%)		(0.03	%)		(0.25	%)		(0.32	%)		(0.69	%)
Total expenses		1.52	%		1.50	%		1.50	%		1.53	%		1.51	%		1.49	%
Portfolio turnover rate		696	%		417	%		579	%		658	%		655	%		744	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.

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

FUND PROFILE (Unaudited) September 30, 2016

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX^® Europe 50 Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

INVESTMENT CONCENTRATION

At September 30, 2016, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks	Value
United Kingdom	35%	$873,890
Switzerland	21%	522,790
Germany	15%	373,212
France	13%	332,566
Netherlands	5%	111,023
Spain	4%	102,612
Belgium	3%	69,516
Other	4%	107,576
Total Securities	100%	$2,493,185

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	6.2%
Guggenheim Strategy Fund I	6.2%
Nestle S.A. ADR	4.7%
Novartis AG ADR	3.9%
Roche Holding AG ADR	3.3%
HSBC Holdings plc ADR	2.8%
Total S.A. ADR	2.2%
British American Tobacco plc ADR	2.2%
BP plc ADR	2.0%
Royal Dutch Shell plc — Class A ADR	2.0%
Top Ten Total	35.5%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 66.8%
Consumer, Non-cyclical - 29.8%
Nestle S.A. ADR		2,207	$	174,397
Novartis AG ADR		1,828		144,338
Roche Holding AG ADR		3,973		123,043
British American Tobacco plc ADR		642		81,951
GlaxoSmithKline plc ADR		1,663		71,725
Anheuser-Busch InBev S.A. ADR		529		69,516
Sanofi ADR		1,605		61,295
AstraZeneca plc ADR		1,814		59,608
Bayer AG ADR		579		58,190
Unilever N.V. — Class Y		1,088		50,157
Diageo plc ADR		428		49,665
Novo Nordisk A/S ADR		1,157		48,120
Unilever plc ADR		927		43,940
Reckitt Benckiser Group plc ADR		2,268		43,478
Imperial Brands plc ADR		657		33,816
Total Consumer, Non-cyclical				1,113,239
Financial - 12.7%
HSBC Holdings plc ADR		2,762		103,880
Allianz SE ADR		3,056		45,320
Banco Santander S.A. ADR		10,065		44,387
BNP Paribas S.A. ADR		1,571		40,673
UBS Group AG		2,500		34,050
ING Groep N.V. ADR		2,668		32,923
Prudential plc ADR		887		31,675
AXA S.A. ADR		1,454		30,767
Lloyds Banking Group plc ADR		10,689		30,677
Banco Bilbao Vizcaya Argentaria S.A. ADR		4,523		26,957
Zurich Insurance Group AG ADR		1,044		26,820
Barclays plc ADR		2,893		25,140
Total Financial				473,269
Energy - 6.9%
Total S.A. ADR		1,744		83,189
BP plc ADR		2,158		75,875
Royal Dutch Shell plc — Class A ADR		1,477		73,953
Eni SpA ADR		880		25,406
Total Energy				258,423
Industrial - 4.2%
Siemens AG ADR		560		65,699
ABB Ltd. ADR*		1,427		32,122
Vinci S.A. ADR		1,542		29,460
Schneider Electric SE ADR		2,055		28,441
Total Industrial				155,722
Communications - 4.1%
Vodafone Group plc ADR		1,806		52,645
Deutsche Telekom AG ADR		2,230		37,442
Telefonica S.A. ADR		3,102		31,268
BT Group plc ADR		1,193		30,338
Total Communications				151,693
Basic Materials - 2.9%
BASF SE ADR		637		54,495
Rio Tinto plc ADR		827		27,622
Air Liquide S.A. ADR		1,200		26,436
Total Basic Materials				108,553
Consumer, Cyclical - 2.8%
Daimler AG ADR		704		49,724
LVMH Moet Hennessy Louis Vuitton SE ADR		951		32,305
Cie Financiere Richemont S.A. ADR		3,648		22,070
Total Consumer, Cyclical				104,099
Technology - 2.4%
SAP SE ADR		682		62,342
ASML Holding N.V. — Class G		255		27,943
Total Technology				90,285
Utilities - 1.0%
National Grid plc ADR		533		37,902
Total Common Stocks
(Cost $2,217,248)				2,493,185
MUTUAL FUNDS†,1 - 12.4%
Guggenheim Strategy Fund II		9,292		231,746
Guggenheim Strategy Fund I		9,254		231,262
Total Mutual Funds
(Cost $460,443)				463,008
	Face Amount
REPURCHASE AGREEMENTS††,2 - 14.8%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	306,986		306,986
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		243,748		243,748
Total Repurchase Agreements
(Cost $550,734)				550,734
Total Investments - 94.0%
(Cost $3,228,425)			$	3,506,927
Other Assets & Liabilities, net - 6.0%				222,723
Total Net Assets - 100.0%			$	3,729,650

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
EUROPE 1.25x STRATEGY FUND

	Contracts		Unrealized Gain
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2016 Euro FX Futures Contracts (Aggregate Value of Contracts $2,113,500)		15	$	8,343
EQUITY FUTURES CONTRACTS PURCHASED††
December 2016 STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $2,160,112)		68	$	6,575

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	2,493,185	$	—	$	—	$	—	$	—	$	2,493,185
Currency Futures Contracts		—		8,343		—		—		—		8,343
Equity Futures Contracts		—		—		—		6,575		—		6,575
Mutual Funds		463,008		—		—		—		—		463,008
Repurchase Agreements		—		—		550,734		—		—		550,734
Total	$	2,956,193	$	8,343	$	550,734	$	6,575	$	—	$	3,521,845

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $2,217,248)	$	2,493,185
Investments in affiliated issuers, at value (cost $460,443)		463,008
Repurchase agreements, at value (cost $550,734)		550,734
Total investments (cost $3,228,425)		3,506,927
Segregated cash with broker		267,087
Receivables:
Swap settlement		819
Fund shares sold		69,896
Dividends		6,694
Foreign taxes reclaim		25,755
Interest		6
Total assets		3,877,184
Liabilities:
Foreign currency, at value (cost $33,756)		33,806
Overdraft due to custodian bank		692
Payable for:
Fund shares redeemed		103,464
Legal fees		8,522
Management fees		3,239
Variation margin		1,533
Distribution and service fees		1,093
Transfer agent and administrative fees		900
Portfolio accounting fees		360
Miscellaneous		(6,075	)
Total liabilities		147,534
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,729,650
Net assets consist of:
Paid in capital	$	16,146,912
Undistributed net investment income		75,038
Accumulated net realized loss on investments		(12,785,654	)
Net unrealized appreciation on investments		293,354
Net assets	$	3,729,650
A-Class:
Net assets	$	512,567
Capital shares outstanding*		6,412
Net asset value per share*	$	79.94
Maximum offering price per share (Net asset value divided by 95.25%)*	$	83.93
C-Class:
Net assets	$	301,610
Capital shares outstanding*		4,307
Net asset value per share*	$	70.03
H-Class:
Net assets	$	2,915,473
Capital shares outstanding*		36,872
Net asset value per share*	$	79.07

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers	$	79,368
Dividends from securities of affiliated issuers		6,609
Interest		1,059
Total investment income		87,036
Expenses:
Management fees		24,557
Transfer agent and administrative fees		6,822
Distribution and service fees:
A-Class		919
C-Class		1,949
H-Class		5,415
Portfolio accounting fees		2,729
Custodian fees		336
Trustees’ fees**		272
Miscellaneous		4,359
Total expenses		47,358
Net investment income		39,678
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,095,051
Investments in affiliated issuers		3,300
Swap agreements		1,754
Futures contracts		1,845,465
Foreign currency		(4,794	)
Net realized gain		2,940,776
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		25,475
Investments in affiliated issuers		2,436
Futures contracts		(3,606	)
Foreign currency		(50	)
Net change in unrealized appreciation (depreciation)		24,255
Net realized and unrealized gain		2,965,031
Net increase in net assets resulting from operations	$	3,004,709

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	39,678		$	9,339
Net realized gain (loss) on investments		2,940,776			(3,897,084	)
Net change in unrealized appreciation (depreciation) on investments		24,255			(156,632	)
Net increase (decrease) in net assets resulting from operations		3,004,709			(4,044,377	)
Distributions to shareholders from:
Net investment income
A-Class		—			(11,155	)
C-Class		—			(4,305	)
H-Class		—			(47,957	)
Total distributions to shareholders		—			(63,417	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,147,039			15,260,055
C-Class		562,457			10,931,446
H-Class		84,935,000			215,847,170
Distributions reinvested
A-Class		—			10,089
C-Class		—			3,535
H-Class		—			47,645
Cost of shares redeemed
A-Class		(1,463,127	)		(15,266,742	)
C-Class		(709,385	)		(11,364,439	)
H-Class		(89,579,253	)		(217,436,663	)
Net decrease from capital share transactions		(5,107,269	)		(1,967,904	)
Net decrease in net assets		(2,102,560	)		(6,075,698	)
Net assets:
Beginning of period		5,832,210			11,907,908
End of period	$	3,729,650		$	5,832,210
Undistributed net investment income at end of period	$	75,038		$	35,360
Capital share activity:*
Shares sold
A-Class		13,980			165,579
C-Class		8,095			135,145
H-Class		1,120,523			2,381,873
Shares issued from reinvestment of distributions
A-Class		—			115
C-Class		—			46
H-Class		—			547
Shares redeemed
A-Class		(18,565	)		(167,183	)
C-Class		(10,207	)		(141,158	)
H-Class		(1,142,230	)		(2,428,913	)
Net decrease in shares		(28,404	)		(53,949	)

* Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	78.10		$	93.32		$	104.40		$	84.97		$	75.39		$	84.36
Income (loss) from investment operations:
Net investment income (loss)b		.84			(.06	)		.30			.96			(.18	)		.60
Net gain (loss) on investments (realized and unrealized)		1.00			(14.44	)		(11.08	)		18.47			9.94			(9.57	)
Total from investment operations		1.84			(14.50	)		(10.78	)		19.43			9.76			(8.97	)
Less distributions from:
Net investment income		—			(.72	)		(.30	)		—			(.18	)		—
Total distributions		—			(.72	)		(.30	)		—			(.18	)		—
Net asset value, end of period	$	79.94		$	78.10		$	93.32		$	104.40		$	84.97		$	75.39
Total Returnc		2.30	%		(15.58	%)		(10.33	%)		22.88	%		12.92	%		(10.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	513		$	859		$	1,165		$	2,551		$	3,916		$	694
Ratios to average net assets:
Net investment income (loss)		2.08	%		(0.08	%)		0.33	%		1.00	%		(0.23	%)		0.77	%
Total expensesd		1.67	%		1.67	%		1.72	%		1.72	%		1.67	%		1.67	%
Portfolio turnover rate		897	%		920	%		608	%		654	%		903	%		318	%

C-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	68.62		$	82.63		$	93.15		$	77.34		$	69.15		$	77.84
Income (loss) from investment operations:
Net investment income (loss)b		.48			(.54	)		(.48	)		(.42	)		(.60	)		—	e
Net gain (loss) on investments (realized and unrealized)		.93			(12.75	)		(9.74	)		16.23			8.97			(8.69	)
Total from investment operations		1.41			(13.29	)		(10.22	)		15.81			8.37			(8.69	)
Less distributions from:
Net investment income		—			(.72	)		(.30	)		—			(.18	)		—
Total distributions		—			(.72	)		(.30	)		—			(.18	)		—
Net asset value, end of period	$	70.03		$	68.62		$	82.63		$	93.15		$	77.34		$	69.15
Total Returnc		2.01	%		(16.14	%)		(10.94	%)		20.40	%		12.09	%		(11.10	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	302		$	440		$	1,023		$	535		$	402		$	439
Ratios to average net assets:
Net investment income (loss)		1.32	%		(0.64	%)		(0.50	%)		(0.48	%)		(0.83	%)		0.03	%
Total expensesd		2.42	%		2.42	%		2.48	%		2.47	%		2.42	%		2.43	%
Portfolio turnover rate		897	%		920	%		608	%		654	%		903	%		318	%

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	77.38		$	92.50		$	103.56		$	85.18		$	75.52		$	84.37
Income (loss) from investment operations:
Net investment income (loss)b		.54			.18			.60			.18			(.12	)		.96
Net gain (loss) on investments (realized and unrealized)		1.15			(14.58	)		(11.36	)		18.20			9.96			(9.81	)
Total from investment operations		1.69			(14.40	)		(10.76	)		18.38			9.84			(8.85	)
Less distributions from:
Net investment income		—			(.72	)		(.30	)		—			(.18	)		—
Total distributions		—			(.72	)		(.30	)		—			(.18	)		—
Net asset value, end of period	$	79.07		$	77.38		$	92.50		$	103.56		$	85.18		$	75.52
Total Returnc		2.17	%		(15.64	%)		(10.36	%)		21.55	%		13.06	%		(10.46	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,915		$	4,533		$	9,719		$	11,553		$	10,752		$	7,759
Ratios to average net assets:
Net investment income (loss)		1.36	%		0.19	%		0.62	%		0.19	%		(0.18	%)		1.22	%
Total expensesd		1.67	%		1.66	%		1.72	%		1.71	%		1.67	%		1.68	%
Portfolio turnover rate		897	%		920	%		608	%		654	%		903	%		318	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net investment income is less than $0.01 per share.
f	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei 225 Stock Average (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	18.3%
Guggenheim Strategy Fund I	18.2%
Total	36.5%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 59

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 36.5%
Guggenheim Strategy Fund II		15,974	$	398,394
Guggenheim Strategy Fund I		15,929		398,066
Total Mutual Funds
(Cost $794,421)				796,460
	Face Amount
U.S. TREASURY BILLS†† - 9.2%
U.S.Treasury Bill
due 10/13/162,4	$	200,000		199,991
Total U.S. Treasury Bills
(Cost $199,995)				199,991
REPURCHASE AGREEMENTS††,3 - 52.5%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		639,549		639,549

Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		507,804		507,804
Total Repurchase Agreements
(Cost $1,147,353)				1,147,353
Total Investments - 98.2%
(Cost $2,141,769)			$	2,143,804
Other Assets & Liabilities, net - 1.8%				39,175
Total Net Assets - 100.0%			$	2,182,979
	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 Nikkei 225 (CME) Index Futures Contracts (Aggregate Value of Contracts $4,396,350)		53	$	71,071
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2016 Japanese Yen Futures Contracts (Aggregate Value of Contracts $4,327,750)		35	$	49,982

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Zero coupon rate security.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as futures collateral at September 30, 2016.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 3		Total
Currency Futures Contracts	$	—	$	49,982	$	—	$	—	$	49,982
Equity Futures Contracts		—		71,071		—		—		71,071
Mutual Funds		796,460		—		—		—		796,460
Repurchase Agreements		—		—		1,147,353		—		1,147,353
U.S. Treasury Bills		—		—		199,991		—		199,991
Total	$	796,460	$	121,053	$	1,347,344	$	—	$	2,264,857

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $199,995)	$	199,991
Investments in affiliated issuers, at value (cost $794,421)		796,460
Repurchase agreements, at value (cost $1,147,353)		1,147,353
Total investments (cost $2,141,769)		2,143,804
Segregated cash with broker		55,936
Receivables:
Swap settlement		995
Fund shares sold		1,148
Dividends		2,227
Interest		12
Total assets		2,204,122
Liabilities:
Payable for:
Variation margin		6,706
Fund shares redeemed		4,884
Management fees		3,427
Legal fees		2,603
Distribution and service fees		1,184
Transfer agent and administrative fees		1,142
Portfolio accounting fees		457
Miscellaneous		740
Total liabilities		21,143
Commitments and contingent liabilities (Note 11)		—
Net assets	$	2,182,979
Net assets consist of:
Paid in capital	$	3,886,737
Accumulated net investment loss		(29,647	)
Accumulated net realized loss on investments		(1,797,199	)
Net unrealized appreciation on investments		123,088
Net assets	$	2,182,979
A-Class:
Net assets	$	366,003
Capital shares outstanding*		3,865
Net asset value per share*	$	94.70
Maximum offering price per share (Net asset value divided by 95.25%)*	$	99.42
C-Class:
Net assets	$	57,446
Capital shares outstanding*		643
Net asset value per share*	$	89.34
H-Class:
Net assets	$	1,759,530
Capital shares outstanding*		18,504
Net asset value per share*	$	95.09

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	6,029
Interest		4,226
Total investment income		10,255
Expenses:
Management fees		16,260
Transfer agent and administrative fees		5,420
Distribution and service fees:
A-Class		469
C-Class		308
H-Class		4,874
Portfolio accounting fees		2,168
Custodian fees		256
Trustees’ fees**		199
Miscellaneous		3,097
Total expenses		33,051
Net investment loss		(22,796	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		2,122
Swap agreements		2,129
Futures contracts		2,470,843
Net realized gain		2,475,094
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(4	)
Investments in affiliated issuers		1,920
Futures contracts		28,313
Net change in unrealized appreciation (depreciation)		30,229
Net realized and unrealized gain		2,505,323
Net increase in net assets resulting from operations	$	2,482,527

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:4 reverse share split effective November 4, 2016. — See Note 12.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(22,796	)	$	(99,978	)
Net realized gain (loss) on investments		2,475,094			(2,415,155	)
Net change in unrealized appreciation (depreciation) on investments		30,229			76,456
Net increase (decrease) in net assets resulting from operations		2,482,527			(2,438,677	)
Capital share transactions:
Proceeds from sale of shares
A-Class		175,113			20,504,500
C-Class		166,033			6,950,127
H-Class		173,728,937			183,725,129
Cost of shares redeemed
A-Class		(229,879	)		(20,500,320	)
C-Class		(171,326	)		(7,166,305	)
H-Class		(176,788,618	)		(195,879,916	)
Net decrease from capital share transactions		(3,119,740	)		(12,366,785	)
Net decrease in net assets		(637,213	)		(14,805,462	)
Net assets:
Beginning of period		2,820,192			17,625,654
End of period	$	2,182,979		$	2,820,192
Accumulated net investment loss at end of period	$	(29,647	)	$	(6,851	)
Capital share activity:*
Shares sold
A-Class		2,114			219,385
C-Class		2,295			78,426
H-Class		1,991,063			1,996,802
Shares redeemed
A-Class		(2,705	)		(219,725	)
C-Class		(2,404	)		(81,242	)
H-Class		(2,003,044	)		(2,146,624	)
Net decrease in shares		(12,681	)		(152,978	)

* Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:4 reverse share split effective November 4, 2016. — See Note 12.

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	78.81		$	93.15		$	77.23		$	69.56		$	61.79		$	59.80
Income (loss) from investment operations:
Net investment income (loss)b		(.40	)		(1.12	)		(1.00	)		(1.24	)		(.80	)		(.88	)
Net gain (loss) on investments (realized and unrealized)		16.29			(13.22	)		16.92			8.91			8.57			2.87
Total from investment operations		15.89			(14.34	)		15.92			7.67			7.77			1.99
Net asset value, end of period	$	94.70		$	78.81		$	93.15		$	77.23		$	69.56		$	61.79
Total Returnc		20.15	%		(15.41	%)		20.61	%		11.04	%		12.56	%		3.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	366		$	351		$	447		$	624		$	2,025		$	1,428
Ratios to average net assets:
Net investment income (loss)		(0.91	%)		(1.22	%)		(1.27	%)		(1.50	%)		(1.40	%)		(1.49	%)
Total expensesd		1.51	%		1.51	%		1.54	%		1.52	%		1.51	%		1.51	%
Portfolio turnover rate		678	%		543	%		405	%		—			—			—

C-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	74.63		$	88.92		$	73.98		$	67.04		$	59.95		$	58.40
Income (loss) from investment operations:
Net investment income (loss)b		(.68	)		(1.68	)		(1.56	)		(1.72	)		(1.16	)		(1.24	)
Net gain (loss) on investments (realized and unrealized)		15.39			(12.61	)		16.50			8.66			8.25			2.79
Total from investment operations		14.71			(14.29	)		14.94			6.94			7.09			1.55
Net asset value, end of period	$	89.34		$	74.63		$	88.92		$	73.98		$	67.04		$	59.95
Total Returnc		19.72	%		(16.06	%)		20.23	%		10.32	%		11.81	%		2.67	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	57		$	56		$	317		$	104		$	246		$	140
Ratios to average net assets:
Net investment income (loss)		(1.64	%)		(1.91	%)		(2.04	%)		(2.25	%)		(2.15	%)		(2.23	%)
Total expensesd		2.26	%		2.24	%		2.30	%		2.27	%		2.25	%		2.26	%
Portfolio turnover rate		678	%		543	%		405	%		—			—			—

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	79.15		$	93.52		$	77.52		$	69.77		$	61.96		$	59.91
Income (loss) from investment operations:
Net investment income (loss)b		(.44	)		(1.08	)		(1.04	)		(1.20	)		(.80	)		(.88	)
Net gain (loss) on investments (realized and unrealized)		16.38			(13.29	)		17.04			8.95			8.61			2.93
Total from investment operations		15.94			(14.37	)		16.00			7.75			7.81			2.05
Net asset value, end of period	$	95.09		$	79.15		$	93.52		$	77.52		$	69.77		$	61.96
Total Returnc		20.11	%		(15.36	%)		20.64	%		11.12	%		12.59	%		3.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,760		$	2,413		$	16,862		$	3,104		$	9,020		$	4,574
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(1.17	%)		(1.28	%)		(1.50	%)		(1.40	%)		(1.48	%)
Total expensesd		1.51	%		1.49	%		1.54	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		678	%		543	%		405	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:4 reverse share split effective November 4, 2016. — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

STRENGTHENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Federal Farm Credit Bank	14.3%
Guggenheim Strategy Fund II	6.5%
Guggenheim Strategy Fund I	6.4%
Total	27.2%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 12.9%
Guggenheim Strategy Fund II		54,062	$	1,348,310
Guggenheim Strategy Fund I		53,910		1,347,213
Total Mutual Funds
(Cost $2,680,049)				2,695,523
	Face Amount
FEDERAL AGENCY NOTES†† - 14.3%
Federal Farm Credit Bank6
0.67% due 09/12/182	$	3,000,000		2,997,672
Total Federal Agency Notes
(Cost $2,999,412)				2,997,672
U.S. Treasury Bills†† - 2.9%
U.S. Treasury Bill
due 10/13/163,8		600,000		599,972
Total U.S. Treasury Bills
(Cost $599,985)				599,972
REPURCHASE AGREEMENTS††,4 - 71.5%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		8,162,890		8,162,890
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/165		6,819,330		6,819,330
Total Repurchase Agreements
(Cost $14,982,220)				14,982,220
Total Investments - 101.6%
(Cost $21,261,666)			$	21,275,387
Other Assets & Liabilities, net - (1.6)%				(329,768	)
Total Net Assets - 100.0%			$	20,945,619

	Contracts		Unrealized Gain
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2016 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $35,309,100)		370	$	67,675
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS††
Goldman Sachs International December 2016 U.S. Dollar Index Swap 0.84%7, Terminating 12/14/16 (Notional Value $6,660,364)		69,834	$	1,253

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Variable rate security. Rate indicated is rate effective at September 30, 2016.
3	Zero coupon rate security.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as currency index swap collateral at September 30, 2016.
6	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
7	Total Return based on U.S. Dollar Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
8	All or a portion of this security is pledged as futures collateral at September 30, 2016.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
STRENGTHENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
U.S. Treasury Bills	$	—	$	—	$	599,972	$	—	$	—	$	599,972
Currency Futures Contracts		—		67,675		—		—		—		67,675
Currency Index Swap Agreements		—		—		—		1,253		—		1,253
Federal Agency Notes		—		—		2,997,672		—		—		2,997,672
Mutual Funds		2,695,523		—		—		—		—		2,695,523
Repurchase Agreements		—		—		14,982,220		—		—		14,982,220
Total	$	2,695,523	$	67,675	$	18,579,864	$	1,253	$	—	$	21,344,315

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $3,599,397)	$	3,597,644
Investments in affiliated issuers, at value (cost $2,680,049)		2,695,523
Repurchase agreements, at value (cost $14,982,220)		14,982,220
Total investments (cost $21,261,666)		21,275,387
Segregated cash with broker		78,012
Unrealized appreciation on swap agreements		1,253
Receivables:
Swap settlement		1,899
Fund shares sold		75,302
Dividends		4,162
Interest		1,215
Total assets		21,437,230
Liabilities:
Payable for:
Fund shares redeemed		399,066
Licensing fees		43,042
Management fees		16,921
Variation margin		15,755
Distribution and service fees		5,939
Transfer agent and administrative fees		4,700
Portfolio accounting fees		1,880
Miscellaneous		4,308
Total liabilities		491,611
Commitments and contingent liabilities (Note 11)		—
Net assets	$	20,945,619
Net assets consist of:
Paid in capital	$	43,227,169
Accumulated net investment loss		(189,547	)
Accumulated net realized loss on investments		(22,174,652	)
Net unrealized appreciation on investments		82,649
Net assets	$	20,945,619
A-Class:
Net assets	$	2,487,887
Capital shares outstanding		51,574
Net asset value per share	$	48.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.65
C-Class:
Net assets	$	1,957,778
Capital shares outstanding		44,544
Net asset value per share	$	43.95
H-Class:
Net assets	$	16,499,954
Capital shares outstanding		343,388
Net asset value per share	$	48.05

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	40,615
Interest		23,446
Total investment income		64,061
Expenses:
Management fees		93,539
Transfer agent and administrative fees		25,983
Distribution and service fees:
A-Class		2,587
C-Class		9,991
H-Class		20,898
Portfolio accounting fees		10,393
Custodian fees		1,239
Trustees’ fees*		601
Miscellaneous		20,481
Total expenses		185,712
Net investment loss		(121,651	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		8,531
Investments in unffiliated issuers		935
Swap agreements		(100,865	)
Futures contracts		(890,993	)
Net realized loss		(982,392	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(2,008	)
Investments in affiliated issuers		33,786
Swap agreements		130,213
Futures contracts		648,483
Net change in unrealized appreciation (depreciation)		810,474
Net realized and unrealized loss		(171,918	)
Net decrease in net assets resulting from operations	$	(293,569	)

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

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(121,651	)	$	(805,154	)
Net realized loss on investments		(982,392	)		(22,380,164	)
Net change in unrealized appreciation (depreciation) on investments		810,474			390,248
Net decrease in net assets resulting from operations		(293,569	)		(22,795,070	)
Distributions to shareholders from:
Net realized gains
A-Class		—			(113,496	)
C-Class		—			(105,875	)
H-Class		—			(6,764,514	)
Total distributions to shareholders		—			(6,983,885	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,661,536			36,241,604
C-Class		2,677,216			11,646,199
H-Class		87,738,669			582,298,261
Distributions reinvested
A-Class		—			112,352
C-Class		—			97,269
H-Class		—			6,753,618
Cost of shares redeemed
A-Class		(1,089,169	)		(48,102,984	)
C-Class		(2,645,624	)		(13,148,692	)
H-Class		(81,549,943	)		(709,370,706	)
Net increase (decrease) from capital share transactions		6,792,685			(133,473,079	)
Net increase (decrease) in net assets		6,499,116			(163,252,034	)
Net assets:
Beginning of period		14,446,503			177,698,537
End of period	$	20,945,619		$	14,446,503
Accumulated net investment loss at end of period	$	(189,547	)	$	(67,896	)
Capital share activity:
Shares sold
A-Class		34,110			685,083
C-Class		60,899			238,619
H-Class		1,825,202			10,937,592
Shares issued from reinvestment of distributions
A-Class		—			2,098
C-Class		—			1,981
H-Class		—			126,662
Shares redeemed
A-Class		(22,380	)		(930,136	)
C-Class		(60,812	)		(270,556	)
H-Class		(1,705,190	)		(13,687,898	)
Net increase (decrease) in shares		131,829			(2,896,555	)

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	47.68		$	55.75		$	38.36		$	42.75		$	40.35		$	40.39
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.58	)		(.56	)		(.69	)		(.63	)		(.66	)
Net gain (loss) on investments (realized and unrealized)		.82			(5.32	)		17.95			(3.70	)		3.03			.62
Total from investment operations		.56			(5.90	)		17.39			(4.39	)		2.40			(.04	)
Less distributions from:
Net realized gains		—			(2.17	)		—			—			—			—
Total distributions		—			(2.17	)		—			—			—			—
Net asset value, end of period	$	48.24		$	47.68		$	55.75		$	38.36		$	42.75		$	40.35
Total Returnc		1.17	%		(11.01	%)		45.33	%		(10.27	%)		5.95	%		(0.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,488		$	1,900		$	15,765		$	3,547		$	10,427		$	6,875
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(1.10	%)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)
Total expensesd		1.71	%		1.69	%		1.68	%		1.74	%		1.66	%		1.68	%
Portfolio turnover rate		33	%		376	%		299	%		—			—			—

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	43.60		$	51.55		$	35.74		$	40.15		$	38.14		$	38.48
Income (loss) from investment operations:
Net investment income (loss)b		(.40	)		(.85	)		(.81	)		(.94	)		(.90	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		.75			(4.93	)		16.62			(3.47	)		2.91			.56
Total from investment operations		.35			(5.78	)		15.81			(4.41	)		2.01			(.34	)
Less distributions from:
Net realized gains		—			(2.17	)		—			—			—			—
Total distributions		—			(2.17	)		—			—			—			—
Net asset value, end of period	$	43.95		$	43.60		$	51.55		$	35.74		$	40.15		$	38.14
Total Returnc		0.80	%		(11.69	%)		44.24	%		(10.96	%)		5.27	%		(0.94	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,958		$	1,938		$	3,836		$	2,099		$	3,530		$	4,091
Ratios to average net assets:
Net investment income (loss)		(1.80	%)		(1.75	%)		(1.96	%)		(2.48	%)		(2.29	%)		(2.36	%)
Total expensesd		2.46	%		2.45	%		2.44	%		2.50	%		2.42	%		2.44	%
Portfolio turnover rate		33	%		376	%		299	%		—			—			—

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	47.49		$	55.53		$	38.21		$	42.60		$	40.17		$	40.20
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.59	)		(.56	)		(.69	)		(.63	)		(.66	)
Net gain (loss) on investments (realized and unrealized)		.83			(5.28	)		17.88			(3.70	)		3.06			.63
Total from investment operations		.56			(5.87	)		17.32			(4.39	)		2.43			(.03	)
Less distributions from:
Net realized gains		—			(2.17	)		—			—			—			—
Total distributions		—			(2.17	)		—			—			—			—
Net asset value, end of period	$	48.05		$	47.49		$	55.53		$	38.21		$	42.60		$	40.17
Total Returnc		1.18	%		(11.00	%)		45.33	%		(10.31	%)		6.05	%		(0.07	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,500		$	10,608		$	158,098		$	9,764		$	11,979		$	21,982
Ratios to average net assets:
Net investment income (loss)		(1.11	%)		(1.12	%)		(1.19	%)		(1.72	%)		(1.53	%)		(1.62	%)
Total expensesd		1.71	%		1.70	%		1.68	%		1.74	%		1.66	%		1.69	%
Portfolio turnover rate		33	%		376	%		299	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

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FUND PROFILE (Unaudited) September 30, 2016

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Federal Farm Credit Bank	14.0%
Guggenheim Strategy Fund I	4.8%
Guggenheim Strategy Fund II	4.8%
Total	23.6%
“Largest Holdings” excludes any temporary cash or derivative investments.

72 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 9.6%
Guggenheim Strategy Fund I1		6,820	$	170,438
Guggenheim Strategy Fund II1		6,832		170,382
Total Mutual Funds
(Cost $337,983)				340,820
	Face Amount
FEDERAL AGENCY NOTES†† - 14.0%
Federal Farm Credit Bank2
0.67% due 09/12/183	$	500,000		499,612
Total Federal Agency Notes
(Cost $499,902)				499,612
REPURCHASE AGREEMENTS††,4 - 73.4%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/165		1,313,517		1,313,517
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		1,295,706		1,295,706
Total Repurchase Agreements
(Cost $2,609,223)				2,609,223
Total Investments - 97.0%
(Cost $3,447,108)			$	3,449,655
Other Assets & Liabilities, net - 3.0%				105,546
Total Net Assets - 100.0%			$	3,555,201

	Contracts		Unrealized Gain (Loss)
CURRENCY FUTURES CONTRACTS SOLD SHORT†
December 2016 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $4,962,360)		52	$	(9,837	)
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International December 2016 U.S. Dollar Index Swap 0.84%6, Terminating 12/14/16 (Notional Value $2,127,126)		22,303	$	1,507

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as currency index swap collateral at September 30, 2016.
6	Total Return based on U.S. Dollar Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
WEAKENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Currency Index Swap Agreements	$	—	$	—	$	—	$	1,507	$	—	$	1,507
Federal Agency Notes		—		—		499,612		—		—		499,612
Mutual Funds		340,820		—		—		—		—		340,820
Repurchase Agreements		—		—		2,609,223		—		—		2,609,223
Total	$	340,820	$	—	$	3,108,835	$	1,507	$	—	$	3,451,162
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Currency Futures Contracts	$	—	$	9,837	$	—	$	—	$	—	$	9,837

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $499,902)	$	499,612
Investments in affiliated issuers, at value (cost $337,983)		340,820
Repurchase agreements, at value (cost $2,609,223)		2,609,223
Total investments (cost $3,447,108)		3,449,655
Segregated cash with broker		93,600
Unrealized appreciation on swap agreements		1,507
Receivables:
Variation margin		2,184
Fund shares sold		12,716
Dividends		526
Interest		203
Total assets		3,560,391
Liabilities:
Payable for:
Fund shares redeemed		3,000
Management fees		2,723
Distribution and service fees		1,039
Transfer agent and administrative fees		757
Portfolio accounting fees		303
Miscellaneous		(2,632	)
Total liabilities		5,190
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,555,201
Net assets consist of:
Paid in capital	$	23,670,343
Accumulated net investment loss		(59,140	)
Accumulated net realized loss on investments		(20,050,219	)
Net unrealized depreciation on investments		(5,783	)
Net assets	$	3,555,201
A-Class:
Net assets	$	536,208
Capital shares outstanding*		7,332
Net asset value per share*	$	73.13
Maximum offering price per share (Net asset value divided by 95.25%)*	$	76.78
C-Class:
Net assets	$	541,282
Capital shares outstanding*		8,161
Net asset value per share*	$	66.33
H-Class:
Net assets	$	2,477,711
Capital shares outstanding*		33,919
Net asset value per share*	$	73.05

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	10,341
Interest		7,701
Total investment income		18,042
Expenses:
Management fees		32,253
Transfer agent and administrative fees		8,959
Distribution and service fees:
A-Class		1,093
C-Class		2,615
H-Class		7,213
Portfolio accounting fees		3,584
Registration fees		3,295
Trustees’ fees**		467
Custodian fees		420
Miscellaneous		3,418
Total expenses		63,317
Net investment loss		(45,275	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		9,236
Swap agreements		(146,018	)
Futures contracts		(818,580	)
Net realized loss		(955,362	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(290	)
Investments in affiliated issuers		1,330
Swap agreements		(9,386	)
Futures contracts		(259,996	)
Net change in unrealized appreciation (depreciation)		(268,342	)
Net realized and unrealized loss		(1,223,704	)
Net decrease in net assets resulting from operations	$	(1,268,979	)

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

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WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(45,275	)	$	(85,654	)
Net realized loss on investments		(955,362	)		(1,286,932	)
Net change in unrealized appreciation (depreciation) on investments		(268,342	)		202,427
Net decrease in net assets resulting from operations		(1,268,979	)		(1,170,159	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,317,695			8,961,442
C-Class		518,083			5,359,174
H-Class		45,734,466			95,822,345
Cost of shares redeemed
A-Class		(3,012,718	)		(8,222,299	)
C-Class		(483,564	)		(4,968,724	)
H-Class		(45,744,631	)		(94,608,486	)
Net increase (decrease) from capital share transactions		(670,669	)		2,343,452
Net increase (decrease) in net assets		(1,939,648	)		1,173,293
Net assets:
Beginning of period		5,494,849			4,321,556
End of period	$	3,555,201		$	5,494,849
Accumulated net investment loss at end of period	$	(59,140	)	$	(13,865	)
Capital share activity:*
Shares sold
A-Class		29,985			123,137
C-Class		7,535			77,717
H-Class		602,025			1,315,899
Shares redeemed
A-Class		(40,098	)		(112,882	)
C-Class		(7,184	)		(72,413	)
H-Class		(616,562	)		(1,319,158	)
Net increase (decrease) in shares		(24,299	)		12,300

* Capital share activity for the periods presented through September 30, 2016 has been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	75.31		$	70.69		$	107.17		$	101.72		$	113.72		$	122.04
Income (loss) from investment operations:
Net investment income (loss)b		(.42	)		(.84	)		(1.20	)		(1.80	)		(1.68	)		(1.98	)
Net gain (loss) on investments (realized and unrealized)		(1.76	)		5.46			(35.28	)		7.25			(10.32	)		(6.34	)
Total from investment operations		(2.18	)		4.62			(36.48	)		5.45			(12.00	)		(8.32	)
Net asset value, end of period	$	73.13		$	75.31		$	70.69		$	107.17		$	101.72		$	113.72
Total Returnc		(2.87	%)		6.54	%		(34.04	%)		5.37	%		(10.55	%)		(6.83	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	536		$	1,314		$	508		$	1,129		$	1,346		$	2,881
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(1.13	%)		(1.23	%)		(1.73	%)		(1.53	%)		(1.62	%)
Total expensesd		1.71	%		1.70	%		1.70	%		1.75	%		1.65	%		1.70	%
Portfolio turnover rate		40	%		699	%		219	%		—			—			—

C-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	68.57		$	64.88		$	99.08		$	94.76		$	106.73		$	115.35
Income (loss) from investment operations:
Net investment income (loss)b		(.66	)		(1.20	)		(1.74	)		(2.40	)		(2.28	)		(2.64	)
Net gain (loss) on investments (realized and unrealized)		(1.58	)		4.89			(32.46	)		6.72			(9.69	)		(5.98	)
Total from investment operations		(2.24	)		3.69			(34.20	)		4.32			(11.97	)		(8.62	)
Net asset value, end of period	$	66.33		$	68.57		$	64.88		$	99.08		$	94.76		$	106.73
Total Returnc		(3.32	%)		5.74	%		(34.52	%)		4.56	%		(11.24	%)		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	541		$	536		$	163		$	821		$	1,687		$	2,826
Ratios to average net assets:
Net investment income (loss)		(1.90	%)		(1.81	%)		(1.94	%)		(2.49	%)		(2.27	%)		(2.36	%)
Total expensesd		2.46	%		2.45	%		2.46	%		2.52	%		2.39	%		2.44	%
Portfolio turnover rate		40	%		699	%		219	%		—			—			—

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WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2016a,e			Year Ended March 31, 2016e			Year Ended March 31, 2015e			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	75.23		$	70.59		$	106.99		$	101.58		$	113.59		$	121.90
Income (loss) from investment operations:
Net investment income (loss)b		(.48	)		(.78	)		(1.14	)		(1.80	)		(1.62	)		(1.92	)
Net gain (loss) on investments (realized and unrealized)		(1.70	)		5.42			(35.26	)		7.21			(10.39	)		(6.39	)
Total from investment operations		(2.18	)		4.64			(36.40	)		5.41			(12.01	)		(8.31	)
Net asset value, end of period	$	73.05		$	75.23		$	70.59		$	106.99		$	101.58		$	113.59
Total Returnc		(2.95	%)		6.54	%		(33.99	%)		5.32	%		(10.57	%)		(6.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,478		$	3,645		$	3,651		$	5,449		$	10,058		$	13,551
Ratios to average net assets:
Net investment income (loss)		(1.23	%)		(1.04	%)		(1.20	%)		(1.74	%)		(1.52	%)		(1.61	%)
Total expensesd		1.72	%		1.70	%		1.70	%		1.76	%		1.64	%		1.69	%
Portfolio turnover rate		40	%		699	%		219	%		—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through September 30, 2016 have been restated to reflect a 1:6 reverse share split effective October 28, 2016 — See Note 12.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2016, the Trust consisted of fifty-three funds.

This report covers the S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund, (the “Funds”), each a non-diversified investment company. Only A-Class, C-Class and H-Class shares had been issued by the Funds.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities; RFS ceased to be an affiliate of GI as of October 4, 2016, when it was acquired by MUFG Investor Services. In connection with its acquisition, RFS changed its name to MUFG Investor Services (US), LLC (“MUIS”).This change has no impact on the financial statements of the Funds.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

A. The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 79

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies (“mutual funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds (“ETFs”) and closed-end investment companies (“CEFs”) are valued at the last quoted sales price.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of currency index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the broker quote.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board using methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

C. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

E. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

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F. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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

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

I. The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.29% at September 30, 2016.

J. Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations. The Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i)

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Europe 1.25x Strategy Fund	Index exposure, Leverage, Liquidity	$	6,683,570	$	—
Japan 2x Strategy Fund	Index exposure, Leverage, Liquidity		10,296,406		—
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		37,630,834		—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		10,450,665

Swaps

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Currency swaps enable the Funds to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involve the exchange of the principal and interest in one currency for the principal and interest in another currency. As in other types of OTC swaps, the Funds may be at risk due to the counterparty’s inability to perform.

The following table represents the Funds’ use and volume of currency swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Strengthening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity	$	7,768,801	$	—
Weakening Dollar 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,923,210

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2016:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin	Variation margin
	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

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The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2016:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2016
Europe 1.25x Strategy Fund	$	6,575	$	8,343	$	—	$	14,918
Japan 2x Strategy Fund		71,071		49,982		—		121,053
Strengthening Dollar 2x Strategy Fund		—		67,675		1,253		68,928
Weakening Dollar 2x Strategy Fund		—		—		1,507		1,507

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2016
Weakening Dollar 2x Strategy Fund	$	—	$	9,837	$	—	$	9,837

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2016:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2016:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Futures Currency Contracts			Swaps Currency Contracts			Total
Europe 1.25x Strategy Fund	$	1,665,549	$	1,754	$	179,916		$	—		$	1,847,219
Japan 2x Strategy Fund		1,001,697		2,129		1,469,146			—			2,472,972
Strengthening Dollar 2x Strategy Fund		—		—		(890,993	)		(100,865	)		(991,858	)
Weakening Dollar 2x Strategy Fund		—		—		(818,580	)		(146,018	)		(964,598	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Futures Currency Contracts			Swaps Currency Contracts			Total
Europe 1.25x Strategy Fund	$	46,840	$	—	$	(50,446	)	$	—		$	(3,606	)
Japan 2x Strategy Fund		19,536		—		8,777			—			28,313
Strengthening Dollar 2x Strategy Fund		—		—		648,483			130,213			778,696
Weakening Dollar 2x Strategy Fund		—		—		(259,996	)		(9,386	)		(269,382	)

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Funds.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
S&P 500® Pure Growth Fund	0.75%
S&P 500® Pure Value Fund	0.75%
S&P MidCap 400® Pure Growth Fund	0.75%
S&P MidCap 400® Pure Value Fund	0.75%
S&P SmallCap 600® Pure Growth Fund	0.75%
S&P SmallCap 600® Pure Value Fund	0.75%
Europe 1.25x Strategy Fund	0.90%
Japan 2x Strategy Fund	0.75%
Strengthening Dollar 2x Strategy Fund	0.90%
Weakening Dollar 2x Strategy Fund	0.90%

RFS provided transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

RFS also provided accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund:

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

GI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

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

For the period ended September 30, 2016, GFD retained sales charges of $145,031 relating to sales of A-Class shares of the Trust.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

4. Fair Value Measurement

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

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2016, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
HSBC Securities, Inc.					U.S. Treasury Strips
0.38%					0.00%
Due 10/03/16	$	469,487,376	$	469,502,243	11/15/39	$	803,943,000	$	478,877,146
Royal Bank of Canada					U.S. Treasury Notes
0.36%					1.38% - 1.50%
Due 10/03/16		432,837,985		432,850,971	05/31/20		370,488,200		380,230,860
					U.S. TIP Notes
					0.13% - 0.25%
					07/15/22 - 01/15/25		57,946,000		61,263,965
							428,434,200		441,494,825

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment adviser, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

6. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	1,253	$	—	$	1,253	$	—	$	—	$	1,253
Weakening Dollar 2x Strategy Fund	Swap currency contracts		1,507		—		1,507		—		—		1,507

¹ Exchange-traded futures are excluded from these reported amounts.

7. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

At September 30, 2016, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
S&P 500® Pure Growth Fund	$	76,808,620	$	17,659,521	$	(667,090	)	$	16,992,431
S&P 500® Pure Value Fund		42,357,525		5,011,007		(175,756	)		4,835,251
S&P MidCap 400® Pure Growth Fund		117,123,266		12,274,014		(6,887,135	)		5,386,879
S&P MidCap 400® Pure Value Fund		27,008,028		1,552,579		(267,730	)		1,284,849
S&P SmallCap 600® Pure Growth Fund		26,431,650		2,073,135		(250,144	)		1,822,991
S&P SmallCap 600® Pure Value Fund		34,737,825		—		(2,333,752	)		(2,333,752	)
Europe 1.25x Strategy Fund		3,479,025		69,526		(41,624	)		27,902
Japan 2x Strategy Fund		2,142,340		1,469		(5	)		1,464
Strengthening Dollar 2x Strategy Fund		21,261,666		15,474		(1,753	)		13,721
Weakening Dollar 2x Strategy Fund		2,609,223		2,837		(290	)		2,547

8. Securities Transactions

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
S&P 500® Pure Growth Fund	$	99,573,487	$	166,947,850
S&P 500® Pure Value Fund		95,802,828		133,943,248
S&P MidCap 400® Pure Growth Fund		53,543,515		78,564,194
S&P MidCap 400® Pure Value Fund		142,571,926		170,192,622
S&P SmallCap 600® Pure Growth Fund		88,249,891		97,388,116
S&P SmallCap 600® Pure Value Fund		208,525,910		196,828,074
Europe 1.25x Strategy Fund		33,326,013		35,574,347
Japan 2x Strategy Fund		5,171,559		5,411,000
Strengthening Dollar 2x Strategy Fund		1,458,385		7,260,000
Weakening Dollar 2x Strategy Fund		468,747		2,605,000

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2016, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Fund	Purchases		Sales		Realized Gain (Loss)
S&P 500® Pure Value Fund	$	16,270,660	$	19,479,907	$	353,524
S&P 500® Pure Growth Fund		15,504,800		22,561,318		1,279,953
S&P MidCap 400® Pure Value Fund		12,008,988		19,524,018		377,799
S&P MidCap 400® Pure Growth Fund		5,754,350		9,724,217		(408,855	)
S&P SmallCap 600® Pure Value Fund		3,110,495		2,426,457		(50,828	)
S&P SmallCap 600® Pure Growth Fund		4,755,627		6,584,091		155,915
Europe 1.25x Strategy Fund		2,347,468		1,757,777		77,518

9. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2015, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180415000857/gug63224-ncsr.htm.

Transactions during the period ended September 30, 2016, in which the portfolio company is an “affiliated person,” were as follows:

Affiliated issuers by Fund	Value 03/31/16		Additions		Reductions			Value 09/30/16		Shares 09/30/16		Investment Income		Realized Gain (Loss)
Europe 1.25x Strategy Fund
Guggenheim Strategy Fund I	$	829,184	$	1,744,163	$	(2,345,000	)	$	231,262		9,254	$	4,650	$	2,863
Guggenheim Strategy Fund II		—		1,540,045		(1,310,000	)		231,746		9,292		1,959		437
		829,184		3,284,208		(3,655,000	)		463,008				6,609		3,300
Japan 2x Strategy Fund
Guggenheim Strategy Fund I		731,860		2,976,513		(3,338,000	)		398,066		15,929		3,598		1,761
Guggenheim Strategy Fund II		—		2,145,045		(1,773,000	)		398,394		15,974		2,431		361
		731,860		5,121,558		(5,111,000	)		796,460				6,029		2,122
Strengthening Dollar 2x Strategy Fund
Guggenheim Strategy Fund I		4,256,077		603,659		(3,530,000	)		1,347,213		53,910		16,802		5,170
Guggenheim Strategy Fund II		4,198,744		854,726		(3,730,000	)		1,348,310		54,062		23,813		3,361
		8,454,821		1,458,385		(7,260,000	)		2,695,523				40,615		8,531
Weakening Dollar 2x Strategy Fund
Guggenheim Strategy Fund I		1,227,757		236,037		(1,295,000	)		170,438		6,820		4,584		3,628
Guggenheim Strategy Fund II		1,238,749		235,352		(1,310,000	)		170,382		6,832		5,757		5,608
		2,466,506		471,389		(2,605,000	)		340,820				10,341		9,236

10. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2017. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2016. The Funds did not have any borrowings outstanding under this agreement at September 30, 2016.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The average daily balances borrowed for the period ended September 30, 2016, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	21,395
S&P MidCap 400® Pure Growth Fund		17,721
S&P MidCap 400® Pure Value Fund		4,524
S&P SmallCap 600® Pure Growth Fund		12,223
S&P SmallCap 600® Pure Value Fund		34,670

11. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

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

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

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust Action”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

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

On May 8, 2014, the plaintiff in the Litigation Trust Action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

12. Subsequent Event

Share Splits

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

Fund	Effective Date	Split Type
S&P 500® Pure Value Fund	October 28, 2016	Two-for-One Share Split
Europe 1.25x Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split
Japan 2x Strategy Fund	November 4, 2016	One-for-Four Reverse Share Split
Weakening Dollar 2x Strategy Fund	October 28, 2016	One-for-Six Reverse Share Split

The effect of these transactions was to multiply the number of outstanding shares of the S&P 500^® Pure Value Fund by its split ratio, resulting in a corresponding decrease in the NAV and to divide the number of outstanding shares of the Europe 1.25x Strategy Fund, Japan 2x Strategy Fund and the Weakening Dollar 2x Strategy Fund by their respective reverse split ratio, resulting in a corresponding increase in the NAV. The share transactions presented in the Statements of Changes in net assets and the per share data in the Financial Highlights for each of the periods presented through September 30, 2016, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Portfolio Securities Loaned

Effective October 6, 2016, each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds’ securities lending agent. The loans would be collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of securities loaned as determined at the close of business on the preceding business day. The cash collateral received would be held in a separately managed account established for each respective Fund and maintained by the lending agent exclusively for the investment of securities lending cash collateral on behalf of each Fund. The separately managed accounts will invest in short-term investments valued at amortized cost, which approximates market value. Each Fund will receive compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees paid to the lending agent. Such compensation will be accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned will be accounted for in the same manner as other dividend and interest income. The borrower will pay to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as “qualified dividend income” under the Jobs and Growth Tax Reconciliation Act of 2003. The Funds would retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower.

Although the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 19, 2016, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 26, 2016 (together, with the May 19 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from Fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance

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OTHER INFORMATION (Unaudited)(continued)

policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of each Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

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OTHER INFORMATION (Unaudited)(concluded)

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, the Board considered the nature and amount of other benefits to be received by the Advisor and its affiliates as a result of their relationship with the Fund, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle***** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm) Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Epiphany Funds (4) (2009-present).

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - concluded
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	135	None.
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem***** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present).	Current: Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present).	Current: Managing Director of Transparent Value, LLC (2015-present); Managing Director of Guggenheim Investments (2015-present). Former: Director, Transparent Value, LLC (2010-2015); Director, Guggenheim Investments (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
GlennMcWhinnie (1969)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present).	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.
****	Some of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.
*****	Mses. Brock-Kyle and Sponem commenced serving as independent Trustees effective August 18, 2016.

98 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

When you become a Guggenheim Investments investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g. purchase and redemption history).

How We Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below.

To complete certain transactions or account changes that you direct, it may be necessary to provide your personal information to companies, individuals or groups that are not affiliated with Guggenheim Investments. For example if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. In connection with servicing your accounts or to alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new funds or the services offered through another Guggenheim Investments affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your personal information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally we will share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

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9.30.2016

Rydex Funds Semi-Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

GuggenheimInvestments.com ROTCF-SEMI-0916x0317

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NASDAQ-100® FUND	8
NOTES TO FINANCIAL STATEMENTS	23
OTHER INFORMATION	40
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	44
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	50

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2016

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one of our Rydex Funds (the “Fund”). This report covers performance for the six-month period ended September 30, 2016.

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

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

We encourage you to read the Economic and Market Overview section of the report, which follows this letter.

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

Sincerely,

Donald C. Cacciapaglia
President and Chief Executive Officer
October 31, 2016

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expense,s and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2016

Economic growth continues to rebound, even though the rise in U.S. Gross Domestic Product (“GDP”) disappointed in the first half of 2016. There was a large headwind from inventory drawdowns, which should soon reverse after five quarters of dragging on growth. Real GDP growth is expected to be around 2.5 percent in the second half of the year, driven by consumption, housing, and a fading trade drag, and supporting the view that U.S. economic growth remains resilient to global weakness.

The euro zone economy is slowly improving, but inflation will likely persist well below the European Central Bank’s (“ECB”) target in the coming quarters due to substantial slack. The ECB has indicated that more quantitative easing is possible, but will soon need to alter the quantitative easing program in order to keep up their purchase pace. Both China and Japan need weaker currencies. Chinese growth and capital flows have stabilized for now, but surging construction and a credit boom raise the prospect of future instability. Japan’s economic prospects are weak, and inflation remains far from the Bank of Japan’s (“BOJ”) target. The surging yen could drive further policy easing, including an increase in fiscal stimulus.

It appears the U.S. Federal Reserve (the “Fed”) will move forward with raising rates in December, absent any economic or geopolitical surprise or a meaningful tightening of financial conditions over the fourth quarter. But key events could influence risk asset performance for the balance of the year: A continued recovery in oil prices following the Organization of Petroleum Exporting Countries (“OPEC”) agreement to keep production between 32.5 to 33 million barrels per day would help sustain the rally (although we are skeptical that they will adhere to any quota based on historical production levels). Global oil inventories remain high, but supply and demand are moving toward balance. A rebound in GDP growth would also lift U.S. equity and corporate bond prices higher.

The macroeconomic picture remains the same; we are not on the verge of a recession. But despite our positive outlook on the U.S. economy, valuations across risk assets argue for caution. Ongoing accommodation from central bankers across the globe has alleviated much of the initial macroeconomic tail risk posed by Brexit but may not be enough to dampen the seasonal volatility typically observed in the fourth quarter. Ongoing troubles in the banking sector, such as the woes afflicting Deutsche Bank and Wells Fargo, coupled with uncertainty surrounding upcoming political events, which include the new Trump administration, the Italian constitutional referendum, and key European elections, may create volatility for risk assets for the balance of the year.

For the six months ended September 30, 2016, the Standard & Poor’s 500^® (“S&P 500^®”) Index* returned 6.40%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 4.88%. The return of the MSCI Emerging Markets Index* was 9.75%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2016

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.68% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 11.38%. The return of the Bank of America(“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.17% for the six-month period.

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

*Index Definitions:

The following indices are referenced throughout this report.

Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

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

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

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

MSCI EAFE Index is a capitalization-weighted measure of stock markets in Europe, Australasia, and the Far East.

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

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

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2016 and ending September 30, 2016.

The following tables illustrate the Fund’s costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Fund’s expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s prospectus.

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.28%	8.82%	$ 1,000.00	$ 1,088.20	$ 6.70
A-Class	1.52%	8.53%	1,000.00	1,085.30	7.95
C-Class	2.27%	8.23%	1,000.00	1,082.30	11.85
H-Class	1.53%	8.67%	1,000.00	1,086.70	8.00
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.28%	5.00%	$ 1,000.00	$ 1,018.65	$ 6.48
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.53%	5.00%	1,000.00	1,017.40	7.74

1	Annualized and excludes expenses of the underlying funds in which the Fund invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2016 to September 30, 2016.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

FUND PROFILE (Unaudited) September 30, 2016

NASDAQ-100^® FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for over-the-counter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100 Index^® (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited)(concluded) September 30, 2016

Inception Dates:
Investor Class	February 14, 1994
A-Class	March 31, 2004
C-Class	March 26, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	8.5%
Microsoft Corp.	6.2%
Amazon.com, Inc.	5.5%
Facebook, Inc. — Class A	4.1%
Alphabet, Inc. — Class C	3.7%
Alphabet, Inc. — Class A	3.3%
Intel Corp.	2.5%
Cisco Systems, Inc.	2.2%
Comcast Corp.	2.2%
Amgen, Inc.	1.7%
Top Ten Total	39.9%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 78.4%
Communications - 29.3%
Amazon.com, Inc.*		55,533	$	46,498,336
Facebook, Inc. — Class A*		272,112		34,903,806
Alphabet, Inc. — Class C*		40,250		31,285,923
Alphabet, Inc. — Class A*		34,538		27,770,624
Cisco Systems, Inc.		589,182		18,688,853
Comcast Corp. — Class A		281,416		18,669,137
Charter Communications, Inc. — Class A*		31,736		8,567,768
Priceline Group, Inc.*		5,789		8,518,456
Baidu, Inc. ADR*		32,099		5,844,265
Netflix, Inc.*		50,221		4,949,280
Yahoo!, Inc.*		111,492		4,805,305
T-Mobile US, Inc.*		96,376		4,502,687
eBay, Inc.*		132,253		4,351,124
Twenty-First Century Fox, Inc. — Class A		124,638		3,018,733
JD.com, Inc. ADR*		107,282		2,798,987
Liberty Global plc*		75,527		2,495,412
Sirius XM Holdings, Inc.*		571,398		2,382,730
Twenty-First Century Fox, Inc. — Class B		93,538		2,314,130
Ctrip.com International Ltd. ADR*		43,824		2,040,884
Expedia, Inc.		16,058		1,874,290
Symantec Corp.		72,110		1,809,961
Viacom, Inc. — Class B		40,674		1,549,679
DISH Network Corp. — Class A*		26,523		1,452,930
Vodafone Group plc ADR		46,860		1,365,969
Liberty Global plc — Class A*		30,967		1,058,452
TripAdvisor, Inc.*		15,562		983,207
Discovery Communications, Inc. — Class C*		27,942		735,154
Liberty Ventures*		15,840		631,541
Discovery Communications, Inc. — Class A*		17,675		475,811
Liberty Global plc LiLAC — Class C*		882		24,740
Liberty Global plc LiLAC — Class A*		575		15,864
Total Communications				246,384,038
Technology - 28.6%
Apple, Inc.		631,204		71,357,611
Microsoft Corp.		912,819		52,578,375
Intel Corp.		554,191		20,920,711
QUALCOMM, Inc.		172,624		11,824,744
Texas Instruments, Inc.		117,516		8,247,273
Broadcom Ltd.		46,331		7,993,024
Adobe Systems, Inc.*		58,369		6,335,372
NVIDIA Corp.		62,670		4,294,148
NXP Semiconductor N.V.*		39,735		4,053,367
Activision Blizzard, Inc.		86,856		3,847,721
Applied Materials, Inc.		126,616		3,817,472
Cognizant Technology Solutions Corp. — Class A*		71,097		3,392,038
Intuit, Inc.		29,972		3,297,220
Electronic Arts, Inc.*		35,231		3,008,727
Fiserv, Inc.*		25,749		2,561,253
Paychex, Inc.		42,232		2,443,966
Cerner Corp.*		39,559		2,442,768
Analog Devices, Inc.		36,018		2,321,360
Micron Technology, Inc.*		121,637		2,162,706
NetEase, Inc. ADR		8,944		2,153,537
Western Digital Corp.		33,299		1,946,993
Autodesk, Inc.*		25,992		1,880,001
Lam Research Corp.		18,773		1,777,991
Skyworks Solutions, Inc.		21,963		1,672,263
Linear Technology Corp.		28,081		1,664,922
CA, Inc.		49,076		1,623,434
Xilinx, Inc.		29,693		1,613,518
Microchip Technology, Inc.		25,218		1,567,047

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NASDAQ-100® FUND

	Shares		Value
Check Point Software Technologies Ltd.*		20,086	$	1,558,874
Citrix Systems, Inc.*		18,242		1,554,583
Seagate Technology plc		35,115		1,353,683
Maxim Integrated Products, Inc.		33,211		1,326,115
NetApp, Inc.		32,594		1,167,517
Akamai Technologies, Inc.*		20,467		1,084,546
Total Technology				240,844,880
Consumer, Non-cyclical - 13.4%
Amgen, Inc.		87,663		14,623,066
Kraft Heinz Co.		142,636		12,767,349
Gilead Sciences, Inc.		154,586		12,230,844
Celgene Corp.*		90,797		9,491,010
Biogen, Inc.*		25,667		8,034,541
Mondelez International, Inc. — Class A		182,216		7,999,282
PayPal Holdings, Inc.*		141,379		5,792,298
Express Scripts Holding Co.*		73,824		5,206,807
Regeneron Pharmaceuticals, Inc.*		12,110		4,868,462
Automatic Data Processing, Inc.		53,437		4,713,143
Monster Beverage Corp.*		22,298		3,273,569
Intuitive Surgical, Inc.*		4,509		3,268,258
Alexion Pharmaceuticals, Inc.*		26,268		3,218,881
Illumina, Inc.*		17,173		3,119,647
Vertex Pharmaceuticals, Inc.*		29,025		2,531,270
Mylan N.V.*		62,659		2,388,561
Incyte Corp.*		22,023		2,076,549
BioMarin Pharmaceutical, Inc.*		20,040		1,854,101
Dentsply Sirona, Inc.		27,295		1,622,142
Verisk Analytics, Inc. — Class A*		19,793		1,608,775
Henry Schein, Inc.*		9,581		1,561,511
Whole Foods Market, Inc.		37,345		1,058,731
Total Consumer, Non-cyclical				113,308,797
Consumer, Cyclical - 6.4%
Walgreens Boots Alliance, Inc.		126,783		10,221,245
Starbucks Corp.		171,799		9,301,198
Costco Wholesale Corp.		51,315		7,826,051
Tesla Motors, Inc.*		17,481		3,566,648
O’Reilly Automotive, Inc.*		11,119		3,114,543
Ross Stores, Inc.		46,799		3,009,176
PACCAR, Inc.		41,061		2,413,566
American Airlines Group, Inc.		62,074		2,272,529
Dollar Tree, Inc.*		27,606		2,178,942
Marriott International, Inc. — Class A		29,800		2,006,434
Ulta Salon Cosmetics & Fragrance, Inc.*		7,306		1,738,682
Fastenal Co.		33,850		1,414,253
Mattel, Inc.		39,901		1,208,202
Tractor Supply Co.		15,657		1,054,499
Liberty Interactive Corporation QVC Group — Class A*		52,320		1,046,923
Norwegian Cruise Line Holdings Ltd.*		26,604		1,002,971
Bed Bath & Beyond, Inc.		18,094		780,032
Total Consumer, Cyclical				54,155,894
Industrial - 0.7%
CSX Corp.		110,814		3,379,826
SBA Communications Corp. — Class A*		14,597		1,637,200
Stericycle, Inc.*		9,961		798,275
Total Industrial				5,815,301
Total Common Stocks
(Cost $366,228,532)				660,508,910

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NASDAQ-100® FUND

	Shares		Value
MUTUAL FUNDS† - 2.7%
Guggenheim Strategy Fund I1		500,094	$	12,497,340
Guggenheim Strategy Fund II1		421,616		10,515,099
Total Mutual Funds
(Cost $22,867,833)				23,012,439
	Face Amount
FEDERAL AGENCY NOTES†† - 9.9%
Federal Farm Credit Bank2
0.67% due 09/12/183	$	27,000,000		26,979,048
0.73% due 09/14/173		10,000,000		10,015,380
Total Federal Farm Credit Bank				36,994,428
Fannie Mae4
0.81% due 12/20/173		25,000,000		25,010,500
Farmer Mac2
5.13% due 04/19/175		13,534,000		13,861,523
Freddie Mac4
0.80% due 10/27/17		7,500,000		7,497,345
Total Federal Agency Notes
(Cost $83,387,635)				83,363,796
FEDERAL AGENCY DISCOUNT NOTES†† - 1.2%
Federal Home Loan Bank2
0.53% due 03/10/17		10,000,000		9,982,880
Total Federal Agency Discount Notes
(Cost $9,976,533)				9,982,880
U.S. TREASURY BILLS†† - 0.1%
U.S. Treasury Bill
due 10/13/166,7		1,000,000		999,953
Total U.S. Treasury Bills
(Cost $999,974)				999,953

REPURCHASE AGREEMENTS††,8 - 5.9%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	26,611,280		26,611,280
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/169	23,452,660		23,452,660
Total Repurchase Agreements
(Cost $50,063,940)			50,063,940
Total Investments - 98.2%
(Cost $533,524,447)		$	827,931,918
Other Assets & Liabilities, net - 1.8%			15,067,606
Total Net Assets - 100.0%		$	842,999,524

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $52,782,670)		542	$	1,585,152
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
BNP Paribas November 2016 NASDAQ-100 Index Swap 0.78%10, Terminating 11/01/16 (Notional Value $12,718,121)		2,609	$	96,747

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
NASDAQ-100® FUND

	Units		Unrealized Gain
Goldman Sachs International October 2016 NASDAQ-100 Index Swap 1.05%10, Terminating 10/26/16 (Notional Value $2,661,534)		546	$	31,957
Barclays Bank plc October 2016 NASDAQ-100 Index Swap 0.75%10, Terminating 10/31/16 (Notional Value $114,137,681)		23,410		1,336
(Total Notional Value $129,517,336)			$	130,040

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Variable rate security. Rate indicated is rate effective at September 30, 2016.
4	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
5	Security is a 144A or Section 4(a)(2) security. The total market value of 144A or Section 4(a)(2) securities is $13,861,523 (cost $13,867,934), or 1.6% of total net assets. These securities have been determined to be liquid under guidelines established by the Board of Trustees.
6	All or a portion of this security is pledged as futures collateral at September 30, 2016.
7	Zero coupon rate security.
8	Repurchase Agreements — See Note 5.
9	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
10	Total Return based on NASDAQ-100 Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2016.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
NASDAQ-100® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	660,508,910	$	—	$	—	$	—	$	—	$	660,508,910
Equity Futures Contracts		—		1,585,152		—		—		—		1,585,152
Equity Index Swap Agreements		—		—		—		130,040		—		130,040
Federal Agency Discount Notes		—		—		9,982,880		—		—		9,982,880
Federal Agency Notes		—		—		83,363,796		—		—		83,363,796
Mutual Funds		23,012,439		—		—		—		—		23,012,439
Repurchase Agreements		—		—		50,063,940		—		—		50,063,940
U.S. Treasury Bills		—		—		999,953		—		—		999,953
Total	$	683,521,349	$	1,585,152	$	144,410,569	$	130,040	$	—	$	829,647,110

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

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

For the period ended September 30, 2016, there were no transfers between levels.

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

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

NASDAQ-100^® FUND

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $460,592,674)	$	754,855,539
Investments in affiliated issuers, at value (cost $22,867,833)		23,012,439
Repurchase agreements, at value (cost $50,063,940)		50,063,940
Total investments (cost $533,524,447)		827,931,918
Segregated cash with broker		12,894,220
Unrealized appreciation on swap agreements		130,040
Receivables:
Fund shares sold		2,582,126
Interest		357,471
Dividends		281,131
Variation margin		197,950
Swap settlement		119,192
Total assets		844,494,048
Liabilities:
Overdraft due to custodian bank		57,969
Payable for:
Management fees		514,969
Fund shares redeemed		391,910
Transfer agent and administrative fees		171,656
Licensing fees		82,656
Distribution and service fees		54,949
Portfolio accounting fees		48,263
Miscellaneous		172,152
Total liabilities		1,494,524
Commitments and contingent liabilities (Note 12)		—
Net assets	$	842,999,524
Net assets consist of:
Paid in capital	$	524,231,956
Accumulated net investment loss		(1,061,369	)
Accumulated net realized gain on investments		23,706,274
Net unrealized appreciation on investments		296,122,663
Net assets	$	842,999,524
Investor Class:
Net assets	$	706,672,722
Capital shares outstanding		25,223,230
Net asset value per share	$	28.02
A-Class:
Net assets	$	52,484,180
Capital shares outstanding		2,011,593
Net asset value per share	$	26.09
Maximum offering price per share (Net asset value divided by 95.25%)	$	27.39
C-Class:
Net assets	$	44,032,033
Capital shares outstanding		1,881,468
Net asset value per share	$	23.40
H-Class:
Net assets	$	39,810,589
Capital shares outstanding		1,526,311
Net asset value per share	$	26.08

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

STATEMENT OF OPERATIONS (Unaudited)

NASDAQ-100^® FUND

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $4,874)	$	3,897,692
Dividends from securities of affiliated issuers		373,778
Interest		301,970
Total investment income		4,573,440
Expenses:
Management fees		3,093,089
Transfer agent and administrative fees		1,031,030
Distribution and service fees:
A-Class		96,027
C-Class		202,020
H-Class		60,574
Portfolio accounting fees		291,842
Custodian fees		48,619
Trustees’ fees*		34,907
Line of credit fees		6,167
Miscellaneous		770,534
Total expenses		5,634,809
Net investment loss		(1,061,369	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		32,674,642
Investments in affiliated issuers		166,752
Swap agreements		9,285,188
Futures contracts		2,274,078
Net realized gain		44,400,660
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		13,946,143
Investments in affiliated issuers		287,226
Swap agreements		(1,758,753	)
Futures contracts		1,184,715
Net change in unrealized appreciation (depreciation)		13,659,331
Net realized and unrealized gain		58,059,991
Net increase in net assets resulting from operations	$	56,998,622

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

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

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,061,369	)	$	(2,733,517	)
Net realized gain on investments		44,400,660			139,445,638
Net change in unrealized appreciation (depreciation) on investments		13,659,331			(127,049,372	)
Net increase in net assets resulting from operations		56,998,622			9,662,749
Distributions to shareholders from:
Net realized gains
Investor Class		—			(15,721,868	)
A-Class		—			(2,634,742	)
C-Class		—			(956,856	)
H-Class		—			(6,738,531	)*
Total distributions to shareholders		—			(26,051,997	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		310,684,004			1,011,361,829
Advisor Class		—			94,137,245	*
A-Class		335,350,395			817,538,269
C-Class		8,391,706			26,584,585
H-Class		94,122,087			1,591,642,598	*
Distributions reinvested
Investor Class		—			15,251,133
A-Class		—			2,570,836
C-Class		—			931,242
H-Class		—			6,738,458	*
Cost of shares redeemed
Investor Class		(322,689,751	)		(1,120,085,951	)
Advisor Class		—			(139,879,099	)*
A-Class		(347,277,599	)		(827,926,638	)
C-Class		(6,532,783	)		(20,071,986	)
H-Class		(226,100,955	)		(1,453,762,548	)*
Conversion activity*
Advisor Class		—			(20,538,756	)
H-Class		—			20,538,756
Net increase (decrease) from capital share transactions		(154,052,896	)		5,029,973
Net decrease in net assets		(97,054,274	)		(11,359,275	)
Net assets:
Beginning of period		940,053,798			951,413,073
End of period	$	842,999,524		$	940,053,798
Accumulated net investment loss at end of period	$	(1,061,369	)	$	—

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

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

NASDAQ-100^® FUND

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Capital share activity:
Shares sold
Investor Class		11,733,652			38,934,513
Advisor Class		—			4,004,926	*
A-Class		13,826,920			34,504,136
C-Class		383,982			1,215,431
H-Class		3,897,961			66,106,678	*
Shares issued from reinvestment of distributions
Investor Class		—			569,923
A-Class		—			102,833
C-Class		—			41,297
H-Class		—			269,863	*
Shares redeemed
Investor Class		(12,410,290	)		(43,913,512	)
Advisor Class		—			(5,986,255	)*
A-Class		(14,332,262	)		(35,068,368	)
C-Class		(301,661	)		(953,984	)
H-Class		(9,606,174	)		(60,544,558	)*
Conversion activity*
Advisor Class		—			(924,136	)
H-Class		—			897,086
Net decrease in shares		(6,807,872	)		(744,127	)

* Effective September 30, 2015, all outstanding Advisor Class shares converted into H-Class shares — See Note 11.

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

FINANCIAL HIGHLIGHTS

NASDAQ-100^® FUND

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

Investor Class	Period Ended Sept. 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	25.75		$	25.38		$	21.38		$	18.38		$	17.92		$	15.23
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.05	)		(.01	)		.02			.02			(.05	)
Net gain (loss) on investments (realized and unrealized)		2.29			.96			4.39			5.01			.44			2.74
Total from investment operations		2.27			.91			4.38			5.03			.46			2.69
Less distributions from:
Net realized gains		—			(.54	)		(.38	)		(2.03	)		—			—
Total distributions		—			(.54	)		(.38	)		(2.03	)		—			—
Net asset value, end of period	$	28.02		$	25.75		$	25.38		$	21.38		$	18.38		$	17.92
Total Returnc		8.82	%		3.49	%		20.53	%		27.74	%		2.57	%		17.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	706,673		$	667,018		$	769,257		$	632,598		$	461,269		$	770,626
Ratios to average net assets:
Net investment income (loss)		(0.15	%)		(0.19	%)		(0.05	%)		0.10	%		0.13	%		(0.34	%)
Total expensesd		1.28	%		1.25	%		1.26	%		1.29	%		1.26	%		1.27	%
Portfolio turnover rate		42	%		228	%		267	%		141	%		94	%		94	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

A-Class	Period Ended Sept. 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	24.04		$	23.78		$	20.10		$	17.42		$	17.03		$	14.52
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.10	)		(.06	)		(.03	)		(.02	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		2.11			.90			4.12			4.74			.41			2.60
Total from investment operations		2.05			.80			4.06			4.71			.39			2.51
Less distributions from:
Net realized gains		—			(.54	)		(.38	)		(2.03	)		—			—
Total distributions		—			(.54	)		(.38	)		(2.03	)		—			—
Net asset value, end of period	$	26.09		$	24.04		$	23.78		$	20.10		$	17.42		$	17.03
Total Returnc		8.53	%		3.26	%		20.24	%		27.42	%		2.29	%		17.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	52,484		$	60,499		$	70,821		$	21,751		$	23,656		$	14,553
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		(0.42	%)		(0.29	%)		(0.14	%)		(0.09	%)		(0.61	%)
Total expensesd		1.52	%		1.51	%		1.50	%		1.54	%		1.52	%		1.53	%
Portfolio turnover rate		42	%		228	%		267	%		141	%		94	%		94	%

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

FINANCIAL HIGHLIGHTS (continued)

NASDAQ-100^® FUND

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

C-Class	Period Ended Sept. 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	21.62		$	21.60		$	18.42		$	16.22		$	15.97		$	13.72
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.26	)		(.21	)		(.16	)		(.13	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		1.91			.82			3.77			4.39			.38			2.44
Total from investment operations		1.78			.56			3.56			4.23			.25			2.25
Less distributions from:
Net realized gains		—			(.54	)		(.38	)		(2.03	)		—			—
Total distributions		—			(.54	)		(.38	)		(2.03	)		—			—
Net asset value, end of period	$	23.40		$	21.62		$	21.60		$	18.42		$	16.22		$	15.97
Total Returnc		8.23	%		2.48	%		19.37	%		26.46	%		1.57	%		16.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	44,032		$	38,900		$	32,324		$	19,175		$	13,015		$	15,177
Ratios to average net assets:
Net investment income (loss)		(1.15	%)		(1.19	%)		(1.05	%)		(0.89	%)		(0.84	%)		(1.35	%)
Total expensesd		2.27	%		2.26	%		2.25	%		2.29	%		2.26	%		2.27	%
Portfolio turnover rate		42	%		228	%		267	%		141	%		94	%		94	%

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

FINANCIAL HIGHLIGHTS (concluded)

NASDAQ-100^® FUND

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

H-Class	Period Ended Sept. 30, 2016a			Year Ended March 31, 2016			Period Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	24.00		$	23.76		$	22.91
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.13	)		.01
Net gain (loss) on investments (realized and unrealized)		2.15			.91			1.22
Total from investment operations		2.08			.78			1.23
Less distributions from:
Net realized gains		—			(.54	)		(.38	)
Total distributions		—			(.54	)		(.38	)
Net asset value, end of period	$	26.08		$	24.00		$	23.76
Total Returnc		8.67	%		3.18	%		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	39,811		$	173,637		$	12,009
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		(0.51	%)		0.07	%
Total expensesd		1.53	%		1.51	%		1.47	%
Portfolio turnover rate		42	%		228	%		267	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operation of the Class.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2016, the Trust consisted of fifty-three funds (the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”), a non-diversified investment company. Only Investor Class, A-Class, C-Class and H-Class shares had been issued by the Fund.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provided transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities; RFS ceased to be an affiliate of GI as of October 4, 2016, when it was acquired by MUFG Investor Services. In connection with its acquisition, RFS changed its name to MUFG Investor Services (US), LLC (“MUIS”). This change has no impact on the financial statements of the Fund.

Significant Accounting Policies

The Fund operates as an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 23

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Fund is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

A. The Board of Trustees of the Fund (the “Board”) has adopted policies and procedures for the valuation of the Fund’s investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Fund’s securities and/or other assets.

Valuations of the Fund’s securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Fund’s officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies (“mutual funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds (“ETFs”) and closed-end investment companies (“CEFs”) are valued at the last quoted sales price.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker-dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable

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quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, provided such amount approximates market value.

Repurchase agreements are valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of OTC swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair- valued as determined in good faith by GI under the direction of the Board using methods established or ratified by the Board.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the effective rates paid at the time of purchase by the Fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

C. Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

E. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

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

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

H. The Fund may leave cash overnight in its cash account with the custodian. Periodically, the Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.29% at September 30, 2016.

I. Under the Fund’s organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Fund enters into contracts that contain a variety

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

2. Financial Instruments and Derivatives

As part of its investment strategy, the Fund utilizes a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Fund may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Liquidity: the ability to buy or sell exposure with little price/market impact.

Futures

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the Fund’s use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long
NASDAQ-100® Fund	Index exposure, Liquidity	$	31,441,693

Swaps

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A fund utilizing a total return index swap bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying index declines in value.

The following table represents the Fund’s use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long
NASDAQ-100® Fund	Index exposure, Liquidity	$	219,640,905

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Fund’s Statement of Assets and Liabilities as of September 30, 2016:

Derivative Investment Type	Asset Derivatives
Equity contracts	Variation margin
	Unrealized appreciation on swap agreements

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The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at September 30, 2016:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2016
NASDAQ-100® Fund	$	1,585,152	$	130,040	$	1,715,192

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statement of Operations for the period ended September 30, 2016:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the period ended September 30, 2016:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Total
NASDAQ-100® Fund	$	2,274,078	$	9,285,188	$	11,559,266

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts			Total
NASDAQ-100® Fund	$	1,184,715	$	(1,758,753	)	$	(574,038	)

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. The Fund uses, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Fund pays GI investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Fund.

RFS provided transfer agent and administrative services to the Fund calculated at the annualized rate of 0.25% based on the average daily net assets of the Fund.

RFS also provided accounting services to the Fund for fees calculated at annualized rates below, based on the average daily net assets of the Fund:

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

GI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Fund will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Trust has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Fund to pay annual distribution and service fees of 1.00% of the Fund’s C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

For the period ended September 30, 2016, GFD retained sales charges of $145,031 relating to sales of A-Class shares of the Trust.

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

4. Fair Value Measurement

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

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

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2016, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
HSBC Securities, Inc.					U.S. Treasury Strips
0.38%					0.00%
Due 10/03/16	$	469,487,376	$	469,502,243	11/15/39	$	803,943,000	$	478,877,146
Royal Bank of Canada					U.S. Treasury Notes
0.36%					1.38% - 1.50%
Due 10/03/16		432,837,985		432,850,971	05/31/20		370,488,200		380,230,860
					U.S. TIP Notes
					0.13% - 0.25%
					07/15/22 - 01/15/25		57,946,000		61,263,965
							428,434,200		441,494,825

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment adviser, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

6. Offsetting

In the normal course of business, the Fund enters into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Fund to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statement of Assets and Liabilities in conformity with U.S. GAAP:

								Gross Amounts Not Offset in the Statement of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statement of Assets and Liabilities		Net Amount of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	130,040	$	—	$	130,040	$	—	$	—	$	130,040

¹ Exchange-traded futures are excluded from these reported amounts.

7. Federal Income Tax Information

The Fund intends to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Fund from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

At September 30, 2016, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain
NASDAQ-100® Fund	$	571,633,461	$	260,389,545	$	(4,091,089	)	$	256,298,456

8. Securities Transactions

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
NASDAQ-100® Fund	$	302,792,463	$	462,707,501

The Fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2016, the Fund engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain
NASDAQ-100® Fund	$	50,184,721	$	86,797,344	$	5,107,569

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

9. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Fund may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2015, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180415000857/gug63224-ncsr.htm.

Transactions during the period ended September 30, 2016, in which the portfolio company is an “affiliated person,” were as follows:

Affiliated issuers by Fund	Value 03/31/16		Additions		Reductions			Value 09/30/16		Shares 09/30/16		Investment Income		Realized Gain
Guggenheim Strategy Fund I	$	63,012,120	$	50,649,483	$	(101,445,000	)	$	12,497,340		500,094	$	226,658	$	132,030
Guggenheim Strategy Fund II		36,088,986		11,752,872		(37,500,000	)		10,515,099		421,616		147,120		34,722
	$	99,101,106	$	62,402,355	$	(138,945,000	)	$	23,012,439			$	373,778	$	166,752

10. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2017. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2016. The Fund did not have any borrowings outstanding under this agreement at September 30, 2016.

Fund	Average Daily Balance
NASDAQ-100® Fund	$	970,559

11. Conversion of Advisor Class Shares and Class H Shares

Effective following the close of business on September 30, 2015, all outstanding Advisor Class shares of the NASDAQ-100^® Fund were converted into Class H shares of the Fund. The conversion of all outstanding Advisor Class shares was effected by exchanging shareholders’

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Advisor Class shares for Class H shares. Advisor Class shareholders of the Fund received Class H shares of the Fund with a value equal to the value of their investment in Advisor Class shares of the Fund on September 30, 2015.

12. Legal Proceedings

Tribune Company

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

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

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

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust Action”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.).

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

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

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

On May 8, 2014, the plaintiff in the Litigation Trust Action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

13. Subsequent Event

Portfolio Securities Loaned

Effective October 6, 2016, each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds’ securities lending agent. The loans would be collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of securities loaned as determined at the close of business on the preceding business day. The cash collateral received would be held in a separately managed account established for each respective Fund and maintained by the lending agent exclusively for the investment of securities lending cash collateral on behalf of each Fund. The separately managed accounts will invest in short-term investments valued at amortized cost, which approximates market value. Each Fund will receive compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees paid to the lending agent. Such compensation will be accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned will be accounted for in the same manner as other dividend and interest income. The borrower will pay to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as “qualified dividend income” under the Jobs and Growth Tax Reconciliation Act of 2003. The Funds would retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower.

Although the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 19, 2016, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 26, 2016 (together, with the May 19 meeting, the “Meetings”).

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OTHER INFORMATION (Unaudited)(continued)

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from Fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. The Board reviewed the scope of services to be provided by the Advisor under the Investment

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

OTHER INFORMATION (Unaudited)(continued)

Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of each Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board

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OTHER INFORMATION (Unaudited)(concluded)

also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, the Board considered the nature and amount of other benefits to be received by the Advisor and its affiliates as a result of their relationship with the Fund, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 43

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle***** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - continued
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	135	None.

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

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem***** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
James M. Howley (1972)	Assistant Treasurer (2016-present).	Current: Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - continued
Keith D. Kemp (1960)	Assistant Treasurer (2016-present).	Current: Managing Director of Transparent Value, LLC (2015-present); Managing Director of Guggenheim Investments (2015-present). Former: Director, Transparent Value, LLC (2010-2015); Director, Guggenheim Investments (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).

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

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present).	Current: Vice President, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present).	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.
****	Some of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.
*****	Mses. Brock-Kyle and Sponem commenced serving as independent Trustees effective August 18, 2016.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 49

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

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

Our Commitment to You

When you become a Guggenheim Investments investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g. purchase and redemption history).

How We Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below.

To complete certain transactions or account changes that you direct, it may be necessary to provide your personal information to companies, individuals or groups that are not affiliated with Guggenheim Investments. For example if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. In connection with servicing your accounts or to alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new funds or the services offered through another Guggenheim Investments

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GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your personal information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally we will share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

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

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9.30.2016

Rydex Funds Semi-Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity Fund

Guggenheim Event Driven and Distressed Strategies Fund

Rydex International Equity Funds

Rydex Emerging Markets 2x Strategy Fund

Rydex Inverse Emerging Markets 2x Strategy Fund

Rydex Fixed Income Fund

Rydex Emerging Markets Bond Strategy Fund

GuggenheimInvestments.com RSTF-SEMI-0916x0317

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
LONG SHORT EQUITY FUND	8
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND	19
EMERGING MARKETS 2x STRATEGY FUND	27
INVERSE EMERGING MARKETS 2x STRATEGY FUND	34
EMERGING MARKETS BOND STRATEGY FUND	40
NOTES TO FINANCIAL STATEMENTS	47
OTHER INFORMATION	62
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	65
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	69

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2016

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for a selection of our alternative strategy Funds (the “Funds”) for the six-month period ended September 30, 2016.

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

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

We encourage you to read the Economic and Market Overview section of the report, which follows this letter.

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

Sincerely,

Donald C. Cacciapaglia
President and Chief Executive Officer
October 31, 2016

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at guggenheiminvestments.com or call 800.820.0888.

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2016

Economic growth continues to rebound, even though the rise in U.S. Gross Domestic Product (“GDP”) disappointed in the first half of 2016. There was a large headwind from inventory drawdowns, which should soon reverse after five quarters of dragging on growth. Real GDP growth is expected to be around 2.5 percent in the second half of the year, driven by consumption, housing, and a fading trade drag, and supporting the view that U.S. economic growth remains resilient to global weakness.

The euro zone economy is slowly improving, but inflation will likely persist well below the European Central Bank’s (“ECB”) target in the coming quarters due to substantial slack. The ECB has indicated that more quantitative easing is possible, but will soon need to alter the quantitative easing program in order to keep up their purchase pace. Both China and Japan need weaker currencies. Chinese growth and capital flows have stabilized for now, but surging construction and a credit boom raise the prospect of future instability. Japan’s economic prospects are weak, and inflation remains far from the Bank of Japan’s (“BOJ”) target. The surging yen could drive further policy easing, including an increase in fiscal stimulus.

It appears the U.S. Federal Reserve (the “Fed”) will move forward with raising rates in December, absent any economic or geopolitical surprise or a meaningful tightening of financial conditions over the fourth quarter. But key events could influence risk asset performance for the balance of the year: A continued recovery in oil prices following the Organization of Petroleum Exporting Countries (“OPEC”) agreement to keep production between 32.5 to 33 million barrels per day would help sustain the rally (although we are skeptical that they will adhere to any quota based on historical production levels). Global oil inventories remain high, but supply and demand are moving toward balance. A rebound in GDP growth would also lift U.S. equity and corporate bond prices higher.

The macroeconomic picture remains the same; we are not on the verge of a recession. But despite our positive outlook on the U.S. economy, valuations across risk assets argue for caution. Ongoing accommodation from central bankers across the globe has alleviated much of the initial macroeconomic tail risk posed by Brexit but may not be enough to dampen the seasonal volatility typically observed in the fourth quarter. Ongoing troubles in the banking sector, such as the woes afflicting Deutsche Bank and Wells Fargo, coupled with uncertainty surrounding upcoming political events, which include the new Trump administration, the Italian constitutional referendum, and key European elections, may create volatility for risk assets for the balance of the year.

For the six months ended September 30, 2016, the Standard & Poor’s 500^® (“S&P 500^®”) Index* returned 6.40%. The MSCI Europe-Australasia-Far East (“EAFE”) Index* returned 4.88%. The return of the MSCI Emerging Markets Index* was 9.75%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index* posted a 2.68% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index* returned 11.38%. The return of the Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index* was 0.17% for the six-month period.

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

*Index Definitions:

The following indices are referenced throughout this report. Indices are unmanaged and not available for direct investment. Index performance does not reflect transaction costs, fees, or expenses.

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

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

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

MSCI EAFE Index is a capitalization-weighted measure of stock markets in Europe, Australasia, and the Far East.

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2016 and ending September 30, 2016.

The following tables illustrate the Funds’ costs in two ways:

Table 1. Based on actual Fund return: This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fifth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return: This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments, and contingent deferred sales charges (“CDSC”) on redemptions, if any. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

More information about the Funds’ expenses, including annual expense ratios for periods up to five years (subject to the Fund’s inception date), can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	2.33%	1.97%	$ 1,000.00	$ 1,019.70	$ 11.80
C-Class	3.06%	1.60%	1,000.00	1,016.00	15.46
P-Class	2.31%	1.96%	1,000.00	1,019.60	11.70
Institutional Class	2.04%	2.19%	1,000.00	1,021.90	10.34
Event Driven and Distressed Strategies Fund
A-Class	1.90%	4.66%	1,000.00	1,046.60	9.75
C-Class	2.64%	4.24%	1,000.00	1,042.40	13.52
P-Class	1.90%	4.66%	1,000.00	1,046.60	9.75
Institutional Class	1.65%	4.74%	1,000.00	1,047.40	8.47
Emerging Markets 2x Strategy Fund
A-Class	1.76%	24.02%	1,000.00	1,240.20	9.88
C-Class	2.48%	23.58%	1,000.00	1,235.80	13.90
H-Class	1.76%	24.02%	1,000.00	1,240.20	9.88
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.74%	(26.87%)	1,000.00	731.30	7.55
C-Class	2.49%	(27.15%)	1,000.00	728.50	10.79
H-Class	1.75%	(27.01%)	1,000.00	729.90	7.59
Emerging Markets Bond Strategy Fund
A-Class	1.57%	6.34%	1,000.00	1,063.40	8.12
C-Class	2.32%	6.20%	1,000.00	1,062.00	11.99
H-Class	1.54%	6.61%	1,000.00	1,066.10	7.98

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2016	Ending Account Value September 30, 2016	Expenses Paid During Period2
Table 2.Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	2.33%	5.00%	$ 1,000.00	$ 1,013.39	$ 11.76
C-Class	3.06%	5.00%	1,000.00	1,009.73	15.42
P-Class	2.31%	5.00%	1,000.00	1,013.49	11.66
Institutional Class	2.04%	5.00%	1,000.00	1,014.84	10.30
Event Driven and Distressed Strategies Fund
A-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
C-Class	2.64%	5.00%	1,000.00	1,011.83	13.31
P-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
Institutional Class	1.65%	5.00%	1,000.00	1,016.80	8.34
Emerging Markets 2x Strategy Fund
A-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
C-Class	2.48%	5.00%	1,000.00	1,012.63	12.51
H-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
Emerging Markets Bond Strategy Fund
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.32%	5.00%	1,000.00	1,013.44	11.71
H-Class	1.54%	5.00%	1,000.00	1,017.35	7.79

¹ Annualized and excludes expenses of the underlying funds in which the Funds invest. This ratio represents Net Expenses, which includes interest and dividend expense related to securities sold short. Excluding these expenses, the operating expense ratios would be:

	Long Short Equity Fund
A-Class	1.67%
C-Class	2.41%
P-Class	1.67%
Institutional Class	1.42%

2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2016 to September 30, 2016.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

FUND PROFILE (Unaudited) September 30, 2016

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	March 22, 2002
P-Class	March 22, 2002
Institutional Class	November 30, 2011

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund I	5.0%
QUALCOMM, Inc.	0.6%
NVIDIA Corp.	0.6%
Murphy Oil Corp.	0.6%
Cooper Companies, Inc.	0.6%
ABIOMED, Inc.	0.5%
Cummins, Inc.	0.5%
CommerceHub, Inc.	0.5%
Northrop Grumman Corp.	0.5%
Edwards Lifesciences Corp.	0.5%
Top Ten Total	9.9%
“Ten Largest Holdings” excludes any temporary cash investments.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 85.7%
Industrial - 17.3%
Cummins, Inc.1		1,793	$	229,773
Northrop Grumman Corp.1		1,071		229,140
AO Smith Corp.1		2,300		227,216
Roper Technologies, Inc. 1		1,233		224,986
Timken Co.1		6,361		223,526
Raytheon Co.1		1,630		221,892
Rockwell Collins, Inc.1		2,616		220,633
AGCO Corp.1		4,468		220,362
Carlisle Companies, Inc.1		2,146		220,115
Energizer Holdings, Inc.1		4,400		219,824
Lennox International, Inc.1		1,399		219,685
Terex Corp.1		8,616		218,933
Ingersoll-Rand plc1		3,201		217,476
Parker-Hannifin Corp.1		1,730		217,167
Flowserve Corp.1		4,476		215,922
Stanley Black & Decker, Inc.1		1,750		215,215
ITT, Inc.1		5,993		214,789
Sonoco Products Co.1		4,063		214,648
Trinity Industries, Inc.1		8,832		213,558
B/E Aerospace, Inc.1		4,124		213,045
Owens Corning1		3,925		209,555
BWX Technologies, Inc.1		5,450		209,117
Masco Corp.1		6,060		207,919
Graphic Packaging Holding Co.1		14,735		206,143
Huntington Ingalls Industries, Inc.		1,329		203,895
USG Corp.*,1		7,862		203,233
Garmin Ltd.1		4,013		193,065
Orbital ATK, Inc.1		2,484		189,355
SunPower Corp. — Class A*,1		20,882		186,267
Fortune Brands Home & Security, Inc.1		3,200		185,920
Spirit AeroSystems Holdings, Inc. — Class A*,1		3,940		175,488
United Technologies Corp.1		1,183		120,193
Lincoln Electric Holdings, Inc.1		1,846		115,597
L-3 Communications Holdings, Inc.1		766		115,459
Boeing Co.1		803		105,787
Berry Plastics Group, Inc.*,1		1,854		81,298
Armstrong World Industries, Inc.*,1		1,748		72,227
Stericycle, Inc.*,1		818		65,555
General Dynamics Corp.1		228		35,376
Allegion plc1		300		20,673
Total Industrial				7,300,027
Financial - 15.7%
Lamar Advertising Co. — Class A1		3,431		224,079
Genworth Financial, Inc. — Class A*		45,144		223,913
Mastercard, Inc. — Class A1		2,200		223,894
Assurant, Inc.1		2,382		219,740
PacWest Bancorp1		5,023		215,537
AmTrust Financial Services, Inc.1		7,996		214,533
East West Bancorp, Inc.1		5,840		214,386
Assured Guaranty Ltd.1		7,690		213,398
White Mountains Insurance Group Ltd.1		257		213,310
Mercury General Corp.1		3,865		211,995
AGNC Investment Corp.		10,800		211,033
Reinsurance Group of America, Inc. — Class A1		1,951		210,591
Equity Residential1		3,268		210,230
Popular, Inc.1		5,480		209,446
Everest Re Group Ltd.1		1,101		209,157
Starwood Property Trust, Inc.1		9,243		208,152
Senior Housing Properties Trust1		9,087		206,365
Rayonier, Inc.1		7,726		205,048
MFA Financial, Inc.1		27,358		204,638
Axis Capital Holdings Ltd.1		3,746		203,520
Chimera Investment Corp.1		12,750		203,363
Iron Mountain, Inc.1		5,400		202,662
Two Harbors Investment Corp.1		23,462		200,131
Old Republic International Corp.1		11,222		197,732
Host Hotels & Resorts, Inc.1		12,625		196,572
Corrections Corporation of America1		13,415		186,066
HCP, Inc.1		4,787		181,667
Lazard Ltd. — Class A1		4,866		176,928
Aspen Insurance Holdings Ltd.1		2,602		121,227
BOK Financial Corp.1		1,717		118,421
Hospitality Properties Trust1		3,913		116,294
NorthStar Realty Europe Corp.1		9,977		109,248
First American Financial Corp.1		2,644		103,856
NorthStar Realty Finance Corp.1		7,767		102,291
Equinix, Inc.1		137		49,354
Weyerhaeuser Co.1		1,508		48,166
Highwoods Properties, Inc.1		288		15,011
Validus Holdings Ltd.1		244		12,156
Total Financial				6,594,110
Consumer, Non-cyclical - 15.0%
Cooper Companies, Inc.1		1,300		233,037
ABIOMED, Inc.*,1		1,801		231,572
Edwards Lifesciences Corp.*,1		1,900		229,064
IDEXX Laboratories, Inc.*,1		1,981		223,318
Baxter International, Inc.1		4,679		222,720
Procter & Gamble Co.1		2,464		221,143
Hill-Rom Holdings, Inc.1		3,562		220,773
Colgate-Palmolive Co.1		2,961		219,529
Medtronic plc1		2,530		218,592
Macquarie Infrastructure Corp.1		2,604		216,757
Kraft Heinz Co.1		2,420		216,614
Mondelez International, Inc. — Class A1		4,901		215,154
Charles River Laboratories International, Inc.*,1		2,547		212,267
Church & Dwight Company, Inc.1		4,416		211,615
Kimberly-Clark Corp.1		1,672		210,906
Archer-Daniels-Midland Co.1		4,897		206,506
Pinnacle Foods, Inc.1		4,110		206,199
Align Technology, Inc.*,1		2,199		206,156
DexCom, Inc.*,1		2,305		202,056
ResMed, Inc.1		3,118		202,015
Bunge Ltd.1		3,355		198,717
Pilgrim’s Pride Corp.		9,393		198,380
Blue Buffalo Pet Products, Inc.*,1		8,321		197,707

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
LONG SHORT EQUITY FUND

	Shares		Value
West Pharmaceutical Services, Inc.1		2,604	$	193,998
Flowers Foods, Inc.1		12,358		186,853
Teleflex, Inc.1		1,091		183,343
Automatic Data Processing, Inc.1		1,700		149,940
Boston Scientific Corp.*,1		6,210		147,798
Endo International plc*,1		6,566		132,306
DENTSPLY SIRONA, Inc.1		2,216		131,697
TreeHouse Foods, Inc.*,1		1,461		127,385
Coty, Inc. — Class A*,1		4,741		111,414
Zimmer Biomet Holdings, Inc.1		383		49,798
Square, Inc. — Class A*,1		632		7,369
Total Consumer, Non-cyclical				6,342,698
Technology - 10.2%
QUALCOMM, Inc.1		3,488		238,928
NVIDIA Corp.1		3,471		237,834
CommerceHub, Inc.*,1		14,417		229,375
HP, Inc.1		14,621		227,064
CommerceHub, Inc.*,1		14,360		226,888
Skyworks Solutions, Inc.1		2,964		225,679
Marvell Technology Group Ltd.1		16,863		223,772
Intel Corp.1		5,891		222,385
Cypress Semiconductor Corp.1		17,934		218,077
Rackspace Hosting, Inc.*,1		6,844		216,886
Xilinx, Inc.1		3,954		214,860
Maxim Integrated Products, Inc.1		5,359		213,985
Broadcom Ltd.1		1,238		213,579
Qorvo, Inc.*,1		3,798		211,701
Akamai Technologies, Inc.*,1		3,994		211,642
DST Systems, Inc.1		1,756		207,067
Applied Materials, Inc.1		6,377		192,266
Tableau Software, Inc. — Class A*,1		2,800		154,756
Microchip Technology, Inc.1		2,225		138,262
Paychex, Inc.1		1,500		86,805
Teradyne, Inc.1		3,184		68,711
ON Semiconductor Corp.*,1		4,581		56,438
Leidos Holdings, Inc.1		889		38,476
Jack Henry & Associates, Inc.1		200		17,110
Total Technology				4,292,546
Energy - 8.2%
Murphy Oil Corp.1		7,712		234,445
Targa Resources Corp.1		4,568		224,335
PBF Energy, Inc. — Class A1		9,839		222,755
First Solar, Inc.*,1		5,581		220,394
Phillips 661		2,699		217,404
Marathon Oil Corp.1		13,690		216,439
Chevron Corp.1		2,087		214,794
Exxon Mobil Corp.1		2,434		212,440
Tesoro Corp.1		2,649		210,754
HollyFrontier Corp.1		8,575		210,088
Occidental Petroleum Corp.1		2,785		203,081
Valero Energy Corp.1		3,804		201,612
Marathon Petroleum Corp.1		4,945		200,718
Chesapeake Energy Corp.*,1		31,541		197,762
Kinder Morgan, Inc.1		8,403		194,361
Cheniere Energy, Inc.*,1		2,135		93,086
Southwestern Energy Co.*,1		6,204		85,863
SM Energy Co.1		1,101		42,477
Murphy USA, Inc.*,1		346		24,691
Hess Corp.1		458		24,558
Total Energy				3,452,057
Basic Materials - 6.3%
Freeport-McMoRan, Inc.1		20,263		220,056
Southern Copper Corp.		8,264		217,343
Steel Dynamics, Inc.1		8,601		214,939
Alcoa, Inc.1		21,044		213,386
Nucor Corp.1		4,298		212,536
United States Steel Corp.1		11,210		211,421
Reliance Steel & Aluminum Co.1		2,931		211,120
Compass Minerals International, Inc.1		2,855		210,414
Huntsman Corp.1		12,422		202,106
Newmont Mining Corp.1		5,103		200,497
Royal Gold, Inc.1		2,588		200,389
Tahoe Resources, Inc.1		14,552		186,702
LyondellBasell Industries N.V. — Class A1		2,237		180,436
Total Basic Materials				2,681,345
Consumer, Cyclical - 4.9%
Genuine Parts Co.1		2,154		216,370
World Fuel Services Corp.1		4,652		215,202
GameStop Corp. — Class A		7,635		210,650
LKQ Corp.*,1		5,900		209,213
Pool Corp.1		2,209		208,794
Gaming and Leisure Properties, Inc.1		6,200		207,390
Nu Skin Enterprises, Inc. — Class A		3,168		205,223
Extended Stay America, Inc.1		11,195		158,969
General Motors Co.1		4,760		151,225
The Gap, Inc.1		4,731		105,217
Harman International Industries, Inc.1		1,242		104,887
Penske Automotive Group, Inc.1		1,765		85,038
Total Consumer, Cyclical				2,078,178
Communications - 4.3%
Yelp, Inc. — Class A*,1		5,453		227,390
IAC/InterActiveCorp1		3,633		226,954
Sprint Corp.*,1		32,395		214,779
T-Mobile US, Inc.*,1		4,596		214,725
Pandora Media, Inc.*,1		14,637		209,748
Telephone & Data Systems, Inc.1		7,566		205,644
United States Cellular Corp.*,1		5,563		202,159
FireEye, Inc.*,1		11,856		174,639
Zillow Group, Inc. — Class A*,1		2,780		95,771
Match Group, Inc.*,1		3,222		57,319
Total Communications				1,829,128
Utilities - 3.8%
Atmos Energy Corp.1		2,816		209,709
Public Service Enterprise Group, Inc.1		5,000		209,349
NiSource, Inc.1		8,603		207,418
UGI Corp.1		4,578		207,109
Ameren Corp.1		4,200		206,556
National Fuel Gas Co.1		3,675		198,707

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
LONG SHORT EQUITY FUND

	Shares		Value
Vectren Corp.1		2,891	$	145,128
DTE Energy Co.1		1,184		110,905
MDU Resources Group, Inc.1		2,356		59,937
Consolidated Edison, Inc.1		465		35,015
Total Utilities				1,589,833
Total Common Stocks
(Cost $34,850,637)				36,159,922
MUTUAL FUNDS† - 5.0%
Guggenheim Strategy Fund I2		83,518		2,087,117
Guggenheim Strategy Fund II2		577		14,386
Total Mutual Funds
(Cost $2,099,535)				2,101,503
	Face Amount
REPURCHASE AGREEMENTS††,3 - 9.4%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	2,200,310		2,200,310
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		1,747,057		1,747,057
Total Repurchase Agreements
(Cost $3,947,367)				3,947,367
Total Investments - 100.5%
(Cost $40,897,539)			$	42,208,792
	Shares
COMMON STOCKS SOLD SHORT† - (34.5)%
Technology - (0.8)%
SS&C Technologies Holdings, Inc.		1,738		(55,877	)
Cerner Corp.*		1,579		(97,503	)
IPG Photonics Corp.*		1,232		(101,455	)
Hewlett Packard Enterprise Co.		4,864		(110,656	)
Total Technology				(365,491	)
Basic Materials - (1.1)%
Sherwin-Williams Co.		160		(44,266	)
Domtar Corp.		2,794		(103,741	)
Praxair, Inc.		881		(106,451	)
NewMarket Corp.		248		(106,471	)
International Flavors & Fragrances, Inc.		770		(110,087	)
Total Basic Materials				(471,016	)
Utilities - (1.2)%
NextEra Energy, Inc.		245		(29,968	)
NRG Energy, Inc.		7,904		(88,604	)
Eversource Energy		1,708		(92,539	)
Calpine Corp.*		8,000		(101,120	)
Avangrid, Inc.		2,529		(105,662	)
AES Corp.		8,243		(105,923	)
Total Utilities				(523,816	)
Communications - (1.9)%
DISH Network Corp. — Class A*		394		(21,583	)
Thomson Reuters Corp.		1,141		(47,215	)
CommScope Holding Company, Inc.*		1,750		(52,693	)
Cisco Systems, Inc.		3,376		(107,087	)
Comcast Corp. — Class A		1,624		(107,736	)
Time Warner, Inc.		1,366		(108,747	)
CDW Corp.		2,381		(108,883	)
Priceline Group, Inc.*		78		(114,776	)
EchoStar Corp. — Class A*		2,734		(119,831	)
Total Communications				(788,551	)
Industrial - (3.9)%
Zebra Technologies Corp. — Class A*		216		(15,036	)
CSX Corp.		1,140		(34,770	)
AECOM*		3,121		(92,787	)
AMERCO		297		(96,296	)
Kansas City Southern		1,109		(103,492	)
Sealed Air Corp.		2,261		(103,599	)
Ryder System, Inc.		1,582		(104,333	)
Landstar System, Inc.		1,536		(104,571	)
Old Dominion Freight Line, Inc.*		1,525		(104,630	)
AMETEK, Inc.		2,204		(105,307	)
Hubbell, Inc.		997		(107,417	)
J.B. Hunt Transport Services, Inc.		1,338		(108,565	)
Union Pacific Corp.		1,115		(108,746	)
Pentair plc		1,696		(108,951	)
Ball Corp.		1,331		(109,075	)
Amphenol Corp. — Class A		1,712		(111,143	)
Kirby Corp.*		1,924		(119,596	)
Total Industrial				(1,638,314	)
Energy - (5.1)%
WPX Energy, Inc.*		647		(8,534	)
Newfield Exploration Co.*		942		(40,939	)
Diamondback Energy, Inc.*		687		(66,323	)
Gulfport Energy Corp.*		3,655		(103,254	)
Weatherford International plc*		18,509		(104,021	)
Energen Corp.		1,846		(106,551	)
Equities Corp.		1,476		(107,187	)
Schlumberger Ltd.		1,365		(107,344	)
Kosmos Energy Ltd.*		16,880		(108,201	)
QEP Resources, Inc.		5,553		(108,450	)
Continental Resources, Inc.*		2,124		(110,363	)
Halliburton Co.		2,463		(110,539	)
Concho Resources, Inc.*		807		(110,841	)
Helmerich & Payne, Inc.		1,708		(114,948	)
Superior Energy Services, Inc.		6,435		(115,187	)
National Oilwell Varco, Inc.		3,154		(115,878	)
Frank’s International N.V.		9,021		(117,273	)
Diamond Offshore Drilling, Inc.		6,721		(118,357	)
RPC, Inc.*		7,048		(118,406	)
Nabors Industries Ltd.		10,146		(123,375	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2016
LONG SHORT EQUITY FUND

	Shares		Value
Ensco plc — Class A		14,624	$	(124,305	)
Total Energy				(2,140,276	)
Consumer, Cyclical - (5.7)%
Tempur Sealy International, Inc.*		846		(48,002	)
Newell Brands, Inc.		920		(48,447	)
Foot Locker, Inc.		749		(50,722	)
Dollar General Corp.		1,170		(81,888	)
Dollar Tree, Inc.*		1,133		(89,428	)
Advance Auto Parts, Inc.		640		(95,437	)
Harley-Davidson, Inc.		1,842		(96,871	)
HD Supply Holdings, Inc.*		3,089		(98,786	)
J.C. Penney Company, Inc.*		10,750		(99,115	)
TJX Companies, Inc.		1,340		(100,205	)
Michael Kors Holdings Ltd.*		2,149		(100,552	)
Target Corp.		1,473		(101,166	)
American Airlines Group, Inc.		2,770		(101,410	)
Home Depot, Inc.		803		(103,330	)
Hanesbrands, Inc.		4,104		(103,626	)
United Continental Holdings, Inc.*		1,996		(104,730	)
Spirit Airlines, Inc.*		2,501		(106,367	)
Kohl’s Corp.		2,432		(106,400	)
AutoNation, Inc.*		2,190		(106,675	)
Macy’s, Inc.		2,889		(107,037	)
Scotts Miracle-Gro Co. — Class A		1,297		(108,001	)
Ross Stores, Inc.		1,708		(109,824	)
Dillard’s, Inc. — Class A		1,765		(111,214	)
Goodyear Tire & Rubber Co.		3,464		(111,887	)
Cabela’s, Inc.*		2,140		(117,550	)
Total Consumer, Cyclical				(2,408,670	)
Financial - (7.0)%
Cullen/Frost Bankers, Inc.		100		(7,194	)
Air Lease Corp. — Class A		3,190		(91,170	)
LendingClub Corp.*		15,766		(97,434	)
CBRE Group, Inc. — Class A*		3,595		(100,588	)
Jones Lang LaSalle, Inc.		886		(100,818	)
Discover Financial Services		1,804		(102,016	)
Goldman Sachs Group, Inc.		635		(102,406	)
T. Rowe Price Group, Inc.		1,544		(102,676	)
Berkshire Hathaway, Inc. — Class B*		715		(103,296	)
American Express Co.		1,617		(103,553	)
Howard Hughes Corp.*		905		(103,623	)
Bank of New York Mellon Corp.		2,601		(103,728	)
Realogy Holdings Corp.		4,032		(104,268	)
Ally Financial, Inc.		5,363		(104,418	)
Franklin Resources, Inc.		2,940		(104,576	)
Eaton Vance Corp.		2,683		(104,771	)
BlackRock, Inc. — Class A		290		(105,113	)
Santander Consumer USA Holdings, Inc.*		8,674		(105,476	)
Navient Corp.		7,302		(105,660	)
TCF Financial Corp.		7,310		(106,068	)
SEI Investments Co.		2,337		(106,591	)
TFS Financial Corp.		5,993		(106,735	)
Citigroup, Inc.		2,260		(106,740	)
M&T Bank Corp.		920		(106,812	)
Capital One Financial Corp.		1,493		(107,242	)
Synchrony Financial		3,856		(107,968	)
Morgan Stanley		3,392		(108,748	)
OneMain Holdings, Inc.*		3,589		(111,079	)
E*TRADE Financial Corp.*		4,111		(119,712	)
Total Financial				(2,940,479	)
Consumer, Non-cyclical - (7.8)%
McKesson Corp.		78		(13,007	)
Universal Health Services, Inc. — Class B		157		(19,346	)
United Therapeutics Corp.*		271		(32,000	)
H&R Block, Inc.		2,920		(67,598	)
Bristol-Myers Squibb Co.		1,450		(78,184	)
Mylan N.V.*		2,112		(80,509	)
Vertex Pharmaceuticals, Inc.*		1,086		(94,710	)
Akorn, Inc.*		3,491		(95,165	)
ServiceMaster Global Holdings, Inc.*		2,847		(95,887	)
Avis Budget Group, Inc.*		2,820		(96,472	)
Celgene Corp.*		933		(97,526	)
Alexion Pharmaceuticals, Inc.*		799		(97,909	)
Allergan plc*		426		(98,112	)
AmerisourceBergen Corp. — Class A		1,228		(99,197	)
Acadia Healthcare Company, Inc.*		2,022		(100,190	)
Regeneron Pharmaceuticals, Inc.*		250		(100,505	)
Graham Holdings Co. — Class B		210		(101,088	)
Express Scripts Holding Co.*		1,436		(101,281	)
MEDNAX, Inc.*		1,537		(101,826	)
Johnson & Johnson		880		(103,954	)
AbbVie, Inc.		1,650		(104,066	)
Pfizer, Inc.		3,080		(104,320	)
VCA, Inc.*		1,492		(104,410	)
Gilead Sciences, Inc.		1,324		(104,755	)
Henry Schein, Inc.*		644		(104,959	)
Amgen, Inc.		634		(105,758	)
Eli Lilly & Co.		1,320		(105,943	)
Ecolab, Inc.		872		(106,140	)
Merck & Company, Inc.		1,710		(106,721	)
Service Corporation International		4,023		(106,770	)
Aramark		2,810		(106,864	)
Biogen, Inc.*		342		(107,056	)
Zoetis, Inc.		2,059		(107,089	)
DaVita, Inc.*		1,668		(110,205	)
Incyte Corp.*		1,206		(113,714	)
Total Consumer, Non-cyclical				(3,273,236	)
Total Common Stocks Sold Short
(Proceeds $14,415,607)				(14,549,849	)
Total Securities Sold Short - (34.5)%
(Proceeds $14,415,607)			$	(14,549,849	)
Other Assets & Liabilities, net - 34.4%				14,488,548
Total Net Assets - 100.0%			$	42,147,491

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
LONG SHORT EQUITY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as short security collateral at September 30, 2016.
2	Affiliated issuer — See Note 9.
3	Repurchase Agreements — See Note 5.
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 2		Level 3		Total
Common Stocks	$	36,159,922	$	—	$	—	$	36,159,922
Mutual Funds		2,101,503		—		—		2,101,503
Repurchase Agreements		—		3,947,367		—		3,947,367
Total	$	38,261,425	$	3,947,367	$	—	$	42,208,792
Investments in Securities (Liabilities)	Level 1		Level 2		Level 3		Total
Common Stocks	$	14,549,849	$	—	$	—	$	14,549,849

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

For the period ended September 30, 2016, there were no transfers between levels.

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $34,850,637)	$	36,159,922
Investments in affiliated issuers, at value (cost $2,099,535)		2,101,503
Repurchase agreements, at value (cost $3,947,367)		3,947,367
Total investments (cost $40,897,539)		42,208,792
Segregated cash with broker		14,494,412
Receivables:
Fund shares sold		81,806
Dividends		77,484
Interest		41
Total assets		56,862,535
Liabilities:
Securities sold short, at value (proceeds $14,415,607)		14,549,849
Overdraft due to custodian bank		40,833
Payable for:
Fund shares redeemed		34,289
Management fees		31,310
Distribution and service fees		17,657
Transfer agent and administrative fees		8,697
Portfolio accounting fees		3,479
Miscellaneous		28,930
Total liabilities		14,715,044
Commitments and contingent liabilities (Note 11)		—
Net assets	$	42,147,491
Net assets consist of:
Paid in capital	$	107,486,624
Accumulated net investment loss		(119,237	)
Accumulated net realized loss on investments		(66,396,907	)
Net unrealized appreciation on investments		1,177,011
Net assets	$	42,147,491
A-Class:
Net assets	$	7,135,202
Capital shares outstanding		458,531
Net asset value per share	$	15.56
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.34
C-Class:
Net assets	$	14,719,750
Capital shares outstanding		1,055,882
Net asset value per share	$	13.94
P-Class:
Net assets	$	19,356,291
Capital shares outstanding		1,239,883
Net asset value per share	$	15.61
Institutional Class:
Net assets	$	936,248
Capital shares outstanding		59,109
Net asset value per share	$	15.84

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $129)	$	458,815
Dividends from securities of affiliated issuers		17,335
Interest		4,180
Total investment income		480,330
Expenses:
Management fees		209,702
Transfer agent and administrative fees		58,251
Distribution and service fees:
A-Class		11,278
C-Class		78,897
P-Class		26,243
Portfolio accounting fees		23,300
Short sales dividend expense		130,237
Prime broker interest expense		21,735
Custodian fees		2,743
Trustees’ fees*		2,073
Miscellaneous		35,108
Total expenses		599,567
Net investment loss		(119,237	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,370,253
Futures contracts		(97,858	)
Securities sold short		(494,328	)
Net realized gain		1,778,067
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		440,301
Investments in affiliated issuers		12,783
Securities sold short		(1,172,691	)
Futures contracts		(5,937	)
Net change in unrealized appreciation (depreciation)		(725,544	)
Net realized and unrealized gain		1,052,523
Net increase in net assets resulting from operations	$	933,286

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

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(119,237	)	$	(483,912	)
Net realized gain (loss) on investments		1,778,067			(1,957,832	)
Net change in unrealized appreciation (depreciation) on investments		(725,544	)		(644,249	)
Net increase (decrease) in net assets resulting from operations		933,286			(3,085,993	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,054,716			11,165,376
C-Class		84,244			909,384
P-Class		1,631,449			16,740,494	*
Institutional Class		2,393,963			305,681
Cost of shares redeemed
A-Class		(4,929,343	)		(5,781,828	)
C-Class		(2,390,075	)		(2,910,089	)
P-Class		(6,191,138	)		(12,054,766	)*
Institutional Class		(2,004,507	)		(60,140	)
Net increase (decrease) from capital share transactions		(10,350,691	)		8,314,112
Net increase (decrease) in net assets		(9,417,405	)		5,228,119
Net assets:
Beginning of period		51,564,896			46,336,777
End of period	$	42,147,491		$	51,564,896
Accumulated net investment loss at end of period	$	(119,237	)	$	—
Capital share activity:
Shares sold
A-Class		68,306			702,460
C-Class		6,093			63,821
P-Class		105,026			1,069,799	*
Institutional Class		150,932			19,194
Shares redeemed
A-Class		(317,782	)		(369,701	)
C-Class		(171,832	)		(205,085	)
P-Class		(398,863	)		(771,059	)*
Institutional Class		(125,718	)		(3,751	)
Net increase (decrease) in shares		(683,838	)		505,678

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 12.

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	15.26		$	16.16		$	15.07		$	13.48		$	13.28		$	14.28
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.10	)		(.06	)		(.13	)		(.05	)		.03
Net gain (loss) on investments (realized and unrealized)		.32			(.80	)		1.15			1.72			.30			(1.03	)
Total from investment operations		.30			(.90	)		1.09			1.59			.25			(1.00	)
Less distributions from:
Net investment income		—			—			—			—			(.05	)		—
Total distributions		—			—			—			—			(.05	)		—
Net asset value, end of period	$	15.56		$	15.26		$	16.16		$	15.07		$	13.48		$	13.28
Total Returnc		1.97	%		(5.57	%)		7.23	%		11.80	%		1.89	%		(7.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,135		$	10,803		$	6,063		$	7,552		$	13,106		$	16,510
Ratios to average net assets:
Net investment income (loss)		(0.28	%)		(0.66	%)		(0.42	%)		(0.91	%)		(0.35	%)		0.21	%
Total expensesd,g		2.33	%		2.53	%		2.17	%		2.34	%		1.92	%		1.66	%
Portfolio turnover rate		109	%		224	%		331	%		256	%		183	%		190	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	13.72		$	14.64		$	13.76		$	12.40		$	12.31		$	13.33
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.21	)		(.16	)		(.24	)		(.14	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		.29			(.71	)		1.04			1.60			.28			(.95	)
Total from investment operations		.22			(.92	)		.88			1.36			.14			(1.02	)
Less distributions from:
Net investment income		—			—			—			—			(.05	)		—
Total distributions		—			—			—			—			(.05	)		—
Net asset value, end of period	$	13.94		$	13.72		$	14.64		$	13.76		$	12.40		$	12.31
Total Returnc		1.60	%		(6.28	%)		6.40	%		10.97	%		1.14	%		(7.65	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,720		$	16,760		$	19,952		$	22,354		$	23,554		$	32,503
Ratios to average net assets:
Net investment income (loss)		(1.00	%)		(1.45	%)		(1.16	%)		(1.79	%)		(1.12	%)		(0.54	%)
Total expensesd,g		3.06	%		3.24	%		2.92	%		3.11	%		2.69	%		2.41	%
Portfolio turnover rate		109	%		224	%		331	%		256	%		183	%		190	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (continued)

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

P-Class*	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	15.31		$	16.21		$	15.12		$	13.53		$	13.33		$	14.32
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.11	)		(.07	)		(.16	)		(.04	)		.03
Net gain (loss) on investments (realized and unrealized)		.32			(.79	)		1.16			1.75			.29			(1.02	)
Total from investment operations		.30			(.90	)		1.09			1.59			.25			(.99	)
Less distributions from:
Net investment income		—			—			—			—			(.05	)		—
Total distributions		—			—			—			—			(.05	)		—
Net asset value, end of period	$	15.61		$	15.31		$	16.21		$	15.12		$	13.53		$	13.33
Total Returnc		1.96	%		(5.55	%)		7.21	%		11.75	%		1.88	%		(6.91	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,356		$	23,477		$	20,020		$	29,287		$	26,257		$	54,589
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		(0.67	%)		(0.43	%)		(1.07	%)		(0.29	%)		0.20	%
Total expensesd,g		2.31	%		2.50	%		2.17	%		2.36	%		1.88	%		1.66	%
Portfolio turnover rate		109	%		224	%		331	%		256	%		183	%		190	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Period Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	15.50		$	16.38		$	15.24		$	13.60		$	13.33		$	12.39
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.05	)		(—	)f		(.12	)		(.02	)		.06
Net gain (loss) on investments (realized and unrealized)		.34			(.83	)		1.14			1.76			.31			.88
Total from investment operations		.34			(.88	)		1.14			1.64			.29			.94
Less distributions from:
Net investment income		—			—			—			—			(.02	)		—
Total distributions		—			—			—			—			(.02	)		—
Net asset value, end of period	$	15.84		$	15.50		$	16.38		$	15.24		$	13.60		$	13.33
Total Returnc		2.19	%		(5.37	%)		7.48	%		12.06	%		2.15	%		7.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	936		$	525		$	302		$	12		$	11		$	11
Ratios to average net assets:
Net investment income (loss)		0.01	%		(0.29	%)		(0.01	%)		(0.82	%)		(0.17	%)		1.29	%
Total expensesd,g		2.04	%		2.27	%		1.95	%		2.11	%		1.72	%		1.36	%
Portfolio turnover rate		109	%		224	%		331	%		256	%		183	%		190	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: November 30, 2011. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
f	Net investment income is less than $0.01 per share.
g	Excluding interest and dividend expense related to short sales, the operating expense ratios for the years or periods would be:

	09/30/16	03/31/16	03/31/15	03/31/14	03/28/13	03/31/12
A-Class	1.67%	1.66%	1.66%	1.68%	1.65%	1.66%
C-Class	2.41%	2.41%	2.41%	2.42%	2.40%	2.41%
P-Class	1.67%	1.66%	1.66%	1.67%	1.65%	1.66%
Institutional Class	1.42%	1.41%	1.40%	1.42%	1.41%	N/A

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 — See Note 12.

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

FUND PROFILE (Unaudited) September 30, 2016

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

OBJECTIVE: Seeks to achieve capital growth.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Institutional Class	June 30, 2010
A-Class	June 30, 2010
C-Class	June 30, 2010
P-Class	June 30, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	37.3%
Guggenheim Strategy Fund I	37.0%
iShares iBoxx $ High Yield Corporate Bond ETF	0.9%
Total	75.2%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 19

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
COMMON STOCKS† - 0.0%
Communications - 0.0%
Tribune Media Co. — Class A		14	$	511
Gannett Company, Inc.		18		210
Total Communications				721
Financial - 0.0%
American Capital Ltd.*		33		558
Energy - 0.0%
Whiting Petroleum Corp.*		38		332
Industrial - 0.0%
Hornbeck Offshore Services, Inc.*		6		33
Total Common Stocks
(Cost $1,453)				1,644
EXCHANGE-TRADED FUNDS† - 0.9%
iShares iBoxx $ High Yield Corporate Bond ETF		700		61,082
Total Exchange-Traded Funds
(Cost $60,823)				61,082
MUTUAL FUNDS† - 74.2%
Guggenheim Strategy Fund II1		107,991		2,693,287
Guggenheim Strategy Fund I1		106,881		2,670,956
Total Mutual Funds
(Cost $5,349,196)				5,364,243
	Face Amount
REPURCHASE AGREEMENTS††,2 - 20.3%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	816,671		816,671
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		648,441		648,441
Total Repurchase Agreements
(Cost $1,465,112)				1,465,112
Total Investments - 95.4%
(Cost $6,876,584)			$	6,892,081
Other Assets & Liabilities, net - 4.6%				334,149
Total Net Assets - 100.0%			$	7,226,230

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2016 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $4,496,945)		37	$	20,398
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse International, LLC November 2016, Credit Suisse Merger Arbitrage Liquid Index Swap 1.61%3, Terminating 11/17/16 (Notional Value $1,405,585)		1,276	$	3,356

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION SOLD††
Index	Counterparty	Exchange	Protection Premium Rate	Maturity Date	Notional Principal		Notional Value			Upfront Premiums Paid		Unrealized Appreciation
CDX.NA.HY.27 Index	Goldman Sachs International	ICE	5.00%	12/20/21	$	2,000,000	$	(2,088,700	)	$	67,586	$	21,114
CDX.NA.HY.27 Index	Barclays Bank plc	ICE	5.00%	12/20/21		3,600,000		(3,759,660	)		121,654		38,006
										$	189,240	$	59,120

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 9.
2	Repurchase Agreements — See Note 5.
3	Total Return based on Credit Suisse Merger Arbitrage Liquid Index +/- financing at a variable rate. Rate indicated is rate effective September 30, 2016.
	ICE — Intercontinental Exchange
	CDX.NA.HY.27 Index — Credit Default Swap High Yield Series 27 Index
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	1,644	$	—	$	—	$	—	$	—	$	1,644
Credit Default Swaps		—		—		—		59,120		—		59,120
Equity Index Swap Agreements		—		—		—		3,356		—		3,356
Exchange-Traded Funds		61,082		—		—		—		—		61,082
Interest Rate Futures Contracts		—		20,398		—		—		—		20,398
Mutual Funds		5,364,243		—		—		—		—		5,364,243
Repurchase Agreements		—		—		1,465,112		—		—		1,465,112
Total	$	5,426,969	$	20,398	$	1,465,112	$	62,476	$	—	$	6,974,955

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

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the previous fiscal period.

For the period ended September 30, 2016, there were no transfers between levels.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 21

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments in unaffiliated issuers, at value (cost $62,276)	$	62,726
Investments in affiliated issuers, at value (cost $5,349,196)		5,364,243
Repurchase agreements, at value (cost $1,465,112)		1,465,112
Total investments (cost $6,876,584)		6,892,081
Unamortized upfront premiums paid on credit default swaps		189,240
Segregated cash with broker		124,252
Unrealized appreciation on swap agreements		62,476
Receivables:
Dividends		8,275
Foreign taxes reclaim		21
Interest		8,571
Investment adviser		753
Total assets		7,285,669
Liabilities:
Payable for:
Fund shares redeemed		27,396
Securities purchased		8,736
Variation margin		6,937
Licensing fees		6,491
Management fees		5,339
Transfer agent and administrative fees		1,483
Distribution and service fees		1,047
Portfolio accounting fees		593
Miscellaneous		1,417
Total liabilities		59,439
Commitments and contingent liabilities (Note 11)		—
Net assets	$	7,226,230
Net assets consist of:
Paid in capital	$	7,594,709
Undistributed net investment income		258,245
Accumulated net realized loss on investments		(725,095	)
Net unrealized appreciation on investments		98,371
Net assets	$	7,226,230
A-Class:
Net assets	$	925,918
Capital shares outstanding		34,355
Net asset value per share	$	26.95
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.29
C-Class:
Net assets	$	629,409
Capital shares outstanding		24,628
Net asset value per share	$	25.56
P-Class:
Net assets	$	1,453,934
Capital shares outstanding		53,948
Net asset value per share	$	26.95
Institutional Class:
Net assets	$	4,216,969
Capital shares outstanding		153,820
Net asset value per share	$	27.41

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends from securities of affiliated issuers	$	48,612
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $122)		13,613
Interest		1,979
Total investment income		64,204
Expenses:
Management fees		33,786
Transfer agent and administrative fees		9,385
Distribution and service fees:
A-Class		1,127
C-Class		4,104
P-Class		1,917
Portfolio accounting fees		3,754
Licensing fees		13,139
Custodian fees		464
Trustees’ fees*		319
Line of credit fees		21
Miscellaneous		5,468
Total expenses		73,484
Less:
Expenses waived by Adviser		(4,361	)
Net expenses		69,123
Net investment loss		(4,919	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(24,918	)
Investments in affiliated issuers		(2,419	)
Swap agreements		217,975
Futures contracts		110,414
Net realized gain		301,052
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		88,530
Investments in affiliated issuers		44,964
Swap agreements		(71,286	)
Futures contracts		(19,269	)
Net change in unrealized appreciation (depreciation)		42,939
Net realized and unrealized gain		343,991
Net increase in net assets resulting from operations	$	339,072

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

22 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(4,919	)	$	11,992
Net realized gain (loss) on investments		301,052			(141,050	)
Net change in unrealized appreciation (depreciation) on investments		42,939			(166,643	)
Net increase (decrease) in net assets resulting from operations		339,072			(295,701	)
Distributions to shareholders from:
Net investment income
A-Class		—			(12,552	)
C-Class		—			(14,515	)
P-Class		—			(34,475	)*
Institutional Class		—			(60,688	)
Total distributions to shareholders		—			(122,230	)
Capital share transactions:
Proceeds from sale of shares
A-Class		195,127			271,562
C-Class		51,666			18,599
P-Class		198,204			592,653	*
Institutional Class		85,328			2,069,459
Distributions reinvested
A-Class		—			11,362
C-Class		—			14,503
P-Class		—			33,768	*
Institutional Class		—			60,495
Cost of shares redeemed
A-Class		(237,721	)		(682,794	)
C-Class		(333,979	)		(331,230	)
P-Class		(479,045	)		(2,108,872	)*
Institutional Class		(354,340	)		(1,434,110	)
Net decrease from capital share transactions		(874,760	)		(1,484,605	)
Net decrease in net assets		(535,688	)		(1,902,536	)
Net assets:
Beginning of period		7,761,918			9,664,454
End of period	$	7,226,230		$	7,761,918
Undistributed net investment income at end of period	$	258,245		$	263,164
Capital share activity:
Shares sold
A-Class		7,374			10,542
C-Class		2,046			741
P-Class		7,544			22,446	*
Institutional Class		3,190			78,280
Shares issued from reinvestment of distributions
A-Class		—			455
C-Class		—			609
P-Class		—			1,353	*
Institutional Class		—			2,387
Shares redeemed
A-Class		(9,011	)		(26,123	)
C-Class		(13,270	)		(13,297	)
P-Class		(18,280	)		(82,826	)*
Institutional Class		(13,223	)		(54,656	)
Net decrease in shares		(33,630	)		(60,089	)

* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015 – See Note 12.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 23

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	25.76		$	26.82		$	28.42		$	27.56		$	25.37		$	26.86
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.03			(.31	)		(.49	)		(.21	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		1.22			(.72	)		(.09	)		3.09			2.40			(.36	)
Total from investment operations		1.19			(.69	)		(.40	)		2.60			2.19			(.73	)
Less distributions from:
Net investment income		—			(.37	)		(.06	)		—			—			—
Net realized gains		—			—			(1.14	)		(1.74	)		—			(.76	)
Total distributions		—			(.37	)		(1.20	)		(1.74	)		—			(.76	)
Net asset value, end of period	$	26.95		$	25.76		$	26.82		$	28.42		$	27.56		$	25.37
Total Returnc		4.66	%		(2.52	%)		(1.18	%)		9.58	%		8.63	%		(2.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	926		$	927		$	1,371		$	4,303		$	2,080		$	2,595
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		0.11	%		(1.10	%)		(1.73	%)		(0.80	%)		(1.43	%)
Total expensesd		2.01	%		2.00	%		2.01	%		2.02	%		2.03	%		1.93	%
Net expensese		1.90	%		1.90	%		1.90	%		1.90	%		1.91	%		1.85	%
Portfolio turnover rate		29	%		32	%		107	%		161	%		228	%		513	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	24.52		$	25.74		$	27.53		$	26.95		$	24.99		$	26.67
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.16	)		(.45	)		(.67	)		(.43	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		1.16			(.69	)		(.14	)		2.99			2.39			(.40	)
Total from investment operations		1.04			(.85	)		(.59	)		2.32			1.96			(.92	)
Less distributions from:
Net investment income		—			(.37	)		(.06	)		—			—			—
Net realized gains		—			—			(1.14	)		(1.74	)		—			(.76	)
Total distributions		—			(.37	)		(1.20	)		(1.74	)		—			(.76	)
Net asset value, end of period	$	25.56		$	24.52		$	25.74		$	27.53		$	26.95		$	24.99
Total Returnc		4.24	%		(3.25	%)		(1.92	%)		8.74	%		7.89	%		(3.38	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	629		$	879		$	1,230		$	1,253		$	1,038		$	1,022
Ratios to average net assets:
Net investment income (loss)		(0.93	%)		(0.64	%)		(1.68	%)		(2.45	%)		(1.67	%)		(2.04	%)
Total expensesd		2.76	%		2.75	%		2.75	%		2.77	%		2.79	%		2.66	%
Net expensese		2.64	%		2.65	%		2.65	%		2.65	%		2.66	%		2.60	%
Portfolio turnover rate		29	%		32	%		107	%		161	%		228	%		513	%

24 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

P-Class*	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	25.76		$	26.82		$	28.42		$	27.57		$	25.37		$	26.86
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		.02			(.29	)		(.49	)		(.23	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		1.21			(.71	)		(.11	)		3.08			2.43			(.39	)
Total from investment operations		1.19			(.69	)		(.40	)		2.59			2.20			(.73	)
Less distributions from:
Net investment income		—			(.37	)		(.06	)		—			—			—
Net realized gains		—			—			(1.14	)		(1.74	)		—			(.76	)
Total distributions		—			(.37	)		(1.20	)		(1.74	)		—			(.76	)
Net asset value, end of period	$	26.95		$	25.76		$	26.82		$	28.42		$	27.57		$	25.37
Total Returnc		4.66	%		(2.52	%)		(1.18	%)		9.54	%		8.67	%		(2.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,454		$	1,667		$	3,318		$	6,809		$	6,134		$	6,183
Ratios to average net assets:
Net investment income (loss)		(0.18	%)		0.09	%		(1.05	%)		(1.72	%)		(0.88	%)		(1.33	%)
Total expensesd		2.01	%		2.00	%		2.01	%		2.02	%		2.03	%		1.91	%
Net expensese		1.90	%		1.90	%		1.90	%		1.90	%		1.91	%		1.85	%
Portfolio turnover rate		29	%		32	%		107	%		161	%		228	%		513	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

Institutional Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012
Per Share Data
Net asset value, beginning of period	$	26.18		$	27.17		$	28.71		$	27.76		$	25.49		$	26.91
Income (loss) from investment operations:
Net investment income (loss)b		.01			.10			(.16	)		(.42	)		(.19	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		1.22			(.72	)		(.18	)		3.11			2.46			(.43	)
Total from investment operations		1.23			(.62	)		(.34	)		2.69			2.27			(.66	)
Less distributions from:
Net investment income		—			(.37	)		(.06	)		—			—			—
Net realized gains		—			—			(1.14	)		(1.74	)		—			(.76	)
Total distributions		—			(.37	)		(1.20	)		(1.74	)		—			(.76	)
Net asset value, end of period	$	27.41		$	26.18		$	27.17		$	28.71		$	27.76		$	25.49
Total Returnc		4.74	%		(2.23	%)		(0.96	%)		9.84	%		8.91	%		(2.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,217		$	4,289		$	3,746		$	975		$	891		$	329
Ratios to average net assets:
Net investment income (loss)		0.05	%		0.37	%		(0.57	%)		(1.46	%)		(0.70	%)		(0.90	%)
Total expensesd		1.76	%		1.75	%		1.75	%		1.77	%		1.80	%		1.61	%
Net expensese		1.65	%		1.65	%		1.65	%		1.65	%		1.67	%		1.58	%
Portfolio turnover rate		29	%		32	%		107	%		161	%		228	%		513	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net expense information reflects the expense ratios after expense waivers.
*	H-Class shares redesignated as P-Class shares effective following close of business on April 30, 2015 — See Note 12.

26 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FUND PROFILE (Unaudited) September 30, 2016

EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

Ten Largest Holdings (% of Total Net Assets)
Alibaba Group Holding Ltd. ADR	6.7%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	6.4%
China Mobile Ltd. ADR	3.8%
Baidu, Inc. ADR	2.8%
Itau Unibanco Holding S.A. ADR	1.8%
Infosys Ltd. ADR	1.8%
HDFC Bank Ltd. ADR	1.7%
Ambev S.A. ADR	1.5%
Banco Bradesco S.A. ADR	1.4%
JD.com, Inc. ADR	1.4%
Top Ten Total	29.3%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

COUNTRY DIVERSIFICATION

At September 30, 2016, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks			Value
China		34	%	$	3,796,211
Brazil		17	%		1,860,425
Taiwan, Province of China		15	%		1,601,613
India		9	%		988,814
Republic of Korea		8	%		843,616
Cayman Islands		7	%		768,576
Mexico		5	%		564,505
Other		5	%		561,596
Total Common Stocks		100	%	$	10,985,356

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 50.2%
Communications - 20.9%
Alibaba Group Holding Ltd. ADR*		12,960	$	1,371,039
China Mobile Ltd. ADR		12,707		781,735
Baidu, Inc. ADR*		3,124		568,787
JD.com, Inc. ADR*		11,065		288,686
Ctrip.com International Ltd. ADR*		4,363		203,185
Telekomunikasi Indonesia Persero Tbk PT ADR		2,850		188,328
Chunghwa Telecom Company Ltd. ADR		4,387		153,677
America Movil SAB de CV — Class L ADR		13,216		151,191
Grupo Televisa SAB ADR		5,644		144,994
SK Telecom Company Ltd. ADR		4,109		92,863
China Unicom Hong Kong Ltd. ADR		6,899		84,030
China Telecom Corporation Ltd. ADR		1,602		81,766
Vipshop Holdings Ltd. ADR*		4,796		70,357
Telefonica Brasil S.A. ADR		4,780		69,167
Mobile TeleSystems PJSC ADR		5,962		45,490
Total Communications				4,295,295
Technology - 10.1%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		43,082		1,317,879
Infosys Ltd. ADR		23,045		363,650
NetEase, Inc. ADR		857		206,348
Advanced Semiconductor Engineering, Inc. ADR		13,412		79,265
Wipro Ltd. ADR		6,733		65,377
United Microelectronics Corp. ADR		27,455		50,792
Total Technology				2,083,311
Financial - 6.7%
HDFC Bank Ltd. ADR		4,785		343,994
Banco Bradesco S.A. ADR		32,083		290,993
China Life Insurance Company Ltd. ADR		17,175		224,649
Shinhan Financial Group Company Ltd. ADR		5,473		199,436
KB Financial Group, Inc. ADR		4,459		152,542
ICICI Bank Ltd. ADR		16,407		122,560
Bancolombia S.A. ADR		1,304		50,908
Total Financial				1,385,082
Energy - 5.1%
CNOOC Ltd. ADR		1,855		234,639
China Petroleum & Chemical Corp. ADR		2,944		217,414
PetroChina Company Ltd. ADR		2,435		162,658
Petroleo Brasileiro S.A. ADR*		17,178		160,271
Sasol Ltd. ADR		5,858		160,041
Ultrapar Participacoes S.A. ADR		4,890		107,042
Total Energy				1,042,065
Consumer, Non-cyclical - 3.1%
Ambev S.A. ADR		50,769		309,183
Fomento Economico Mexicano SAB de CV ADR		1,521		139,993
BRF S.A. ADR		7,008		119,556
New Oriental Education & Technology Group, Inc. ADR*		1,499		69,494
Total Consumer, Non-cyclical				638,226
Basic Materials - 1.9%
POSCO ADR		3,703		189,149
Vale S.A. ADR		14,851		81,681
AngloGold Ashanti Ltd. ADR*		4,710		74,983
Gold Fields Ltd. ADR		8,628		41,846
Total Basic Materials				387,659
Utilities - 1.0%
Korea Electric Power Corp. ADR		5,927		144,500
CPFL Energia S.A. ADR		3,759		55,633
Total Utilities				200,133
Industrial - 0.9%
Cemex SAB de CV ADR*		16,162		128,327
LG Display Company Ltd. ADR		5,120		65,126
Total Industrial				193,453
Consumer, Cyclical - 0.5%
Tata Motors Ltd. ADR		2,332		93,233
Total Common Stocks
(Cost $9,337,444)				10,318,457
PREFERRED STOCKS† - 3.2%
Financial - 1.7%
Itau Unibanco Holding S.A. ADR		33,259		363,853
Energy - 1.0%
Petroleo Brasileiro S.A. ADR*		23,597		196,091
Basic Materials - 0.5%
Vale S.A. ADR		22,708		106,955
Total Preferred Stocks
(Cost $569,339)				666,899
	Face Amount
REPURCHASE AGREEMENTS††,1 - 46.0%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/162	$	5,568,615		5,568,615
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		3,880,272		3,880,272
Total Repurchase Agreements
(Cost $9,448,887)				9,448,887
Total Investments - 99.4%
(Cost $19,355,670)			$	20,434,243
Other Assets & Liabilities, net - 0.6%				121,282
Total Net Assets - 100.0%			$	20,555,525

28 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
EMERGING MARKETS 2x STRATEGY FUND

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS PURCHASED†
December 2016 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $1,139,625)		25	$	17,206

	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2016 Bank of New York Mellon Emerging Markets 50 ADR Index Swap 1.00%3, Terminating 10/26/16 (Notional Value $9,463,073)		4,275	$	35,596
BNP Paribas November 2016 Bank of New York Mellon Emerging Markets 50 ADR Index Swap 0.78%3, Terminating 11/01/16 (Notional Value $19,562,733)		8,838		22,828
(Total Notional Value $29,025,806)			$	58,424

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
3	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2016.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Common Stocks	$	10,318,457	$	—	$	—	$	—	$	—	$	10,318,457
Equity Futures Contracts		—		17,206		—		—		—		17,206
Equity Index Swap Agreements		—		—		—		58,424		—		58,424
Preferred Stocks		666,899		—		—		—		—		666,899
Repurchase Agreements		—		—		9,448,887		—		—		9,448,887
Total	$	10,985,356	$	17,206	$	9,448,887	$	58,424	$	—	$	20,509,873

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the previous fiscal period.

For the period ended September 30, 2016, there were no transfers between levels.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Investments, at value (cost $9,906,783)	$	10,985,356
Repurchase agreements, at value (cost $9,448,887)		9,448,887
Total investments (cost $19,355,670)		20,434,243
Unrealized appreciation on swap agreements		58,424
Segregated cash with broker		22,000
Cash		885
Receivables:
Swap settlement		6,048
Variation margin		2,187
Fund shares sold		202,675
Dividends		38,789
Interest		97
Total assets		20,765,348
Liabilities:
Payable for:
Fund shares redeemed		167,477
Management fees		19,955
Distribution and service fees		5,867
Transfer agent and administrative fees		5,543
Portfolio accounting fees		3,326
Miscellaneous		7,655
Total liabilities		209,823
Commitments and contingent liabilities (Note 11)		—
Net assets	$	20,555,525
Net assets consist of:
Paid in capital	$	32,366,337
Accumulated net investment loss		(100,083	)
Accumulated net realized loss on investments		(12,864,932	)
Net unrealized appreciation on investments		1,154,203
Net assets	$	20,555,525
A-Class:
Net assets	$	716,217
Capital shares outstanding		12,892
Net asset value per share	$	55.56
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.33
C-Class:
Net assets	$	426,971
Capital shares outstanding		7,930
Net asset value per share	$	53.84
H-Class:
Net assets	$	19,412,337
Capital shares outstanding		349,078
Net asset value per share	$	55.61

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends (net of foreign withholding tax of $3,809)	$	87,173
Interest		9,873
Total investment income		97,046
Expenses:
Management fees		82,533
Transfer agent and administrative fees		22,927
Distribution and service fees:
A-Class		1,071
C-Class		2,148
H-Class		21,320
Portfolio accounting fees		13,756
Custodian fees		1,082
Trustees’ fees*		755
Line of credit fees		110
Miscellaneous		17,528
Total expenses		163,230
Net investment loss		(66,184	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		292,282
Swap agreements		2,109,899
Futures contracts		271,862
Net realized gain		2,674,043
Net change in unrealized appreciation (depreciation) on:
Investments		93,766
Swap agreements		(312,533	)
Futures contracts		(17,226	)
Net change in unrealized appreciation (depreciation)		(235,993	)
Net realized and unrealized gain		2,438,050
Net increase in net assets resulting from operations	$	2,371,866

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(66,184	)	$	(78,148	)
Net realized gain (loss) on investments		2,674,043			(4,039,656	)
Net change in unrealized appreciation (depreciation) on investments		(235,993	)		1,263,242
Net increase (decrease) in net assets resulting from operations		2,371,866			(2,854,562	)
Distributions to shareholders from:
Net investment income
A-Class		—			(12,572	)
C-Class		—			(4,644	)
H-Class		—			(35,994	)
Total distributions to shareholders		—			(53,210	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,623,942			43,678,611
C-Class		4,230,479			20,590,651
H-Class		313,816,159			334,036,652
Distributions reinvested
A-Class		—			12,352
C-Class		—			4,644
H-Class		—			35,584
Cost of shares redeemed
A-Class		(8,834,922	)		(40,616,785	)
C-Class		(4,147,161	)		(21,571,134	)
H-Class		(310,002,748	)		(319,569,790	)
Net increase from capital share transactions		685,749			16,600,785
Net increase in net assets		3,057,615			13,693,013
Net assets:
Beginning of period		17,497,910			3,804,897
End of period	$	20,555,525		$	17,497,910
Accumulated net investment loss at end of period	$	(100,083	)	$	(33,899	)
Capital share activity:
Shares sold
A-Class		120,948			896,183
C-Class		84,873			401,507
H-Class		6,778,081			6,540,164
Shares issued from reinvestment of distributions
A-Class		—			288
C-Class		—			111
H-Class		—			830
Shares redeemed
A-Class		(197,096	)		(813,738	)
C-Class		(83,176	)		(417,067	)
H-Class		(6,724,210	)		(6,281,031	)
Net increase (decrease) in shares		(20,580	)		327,247

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 31

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	44.79		$	60.50		$	66.27		$	73.59		$	87.40		$	134.76
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.23	)		(.37	)		(.54	)		(.35	)		(—	)c
Net gain (loss) on investments (realized and unrealized)		10.97			(14.83	)		(5.40	)		(6.78	)		(13.46	)		(41.76	)
Total from investment operations		10.77			(15.06	)		(5.77	)		(7.32	)		(13.81	)		(41.76	)
Less distributions from:
Net investment income		—			(.65	)		—			—			—			—
Net realized gains		—			—			—			—			—			(5.60	)
Total distributions		—			(.65	)		—			—			—			(5.60	)
Net asset value, end of period	$	55.56		$	44.79		$	60.50		$	66.27		$	73.59		$	87.40
Total Returnd		24.02	%		(24.84	%)		(8.72	%)		(9.96	%)		(15.79	%)		(30.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	716		$	3,988		$	382		$	744		$	106		$	363
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(0.48	%)		(0.53	%)		(0.82	%)		(0.51	%)		(0.01	%)
Total expenses		1.76	%		1.75	%		1.75	%		1.81	%		1.88	%		1.77	%
Net expenses		1.76	%		1.75	%		1.75	%		1.76	%f		1.75	%f		1.69	%f
Portfolio turnover rate		1,482	%		2,874	%		1,085	%		1,412	%		730	%		883	%

C-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	43.56		$	59.37		$	65.46		$	72.92		$	87.31		$	134.13
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.74	)		(.73	)		(1.04	)		(1.25	)		(.90	)
Net gain (loss) on investments (realized and unrealized)		10.58			(14.42	)		(5.36	)		(6.42	)		(13.14	)		(40.32	)
Total from investment operations		10.28			(15.16	)		(6.09	)		(7.46	)		(14.39	)		(41.22	)
Less distributions from:
Net investment income		—			(.65	)		—			—			—			—
Net realized gains		—			—			—			—			—			(5.60	)
Total distributions		—			(.65	)		—			—			—			(5.60	)
Net asset value, end of period	$	53.84		$	43.56		$	59.37		$	65.46		$	72.92		$	87.31
Total Returnd		23.58	%		(25.48	%)		(9.32	%)		(10.21	%)		(16.49	%)		(29.75	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	427		$	271		$	1,287		$	409		$	108		$	62
Ratios to average net assets:
Net investment income (loss)		(1.21	%)		(1.49	%)		(0.99	%)		(1.73	%)		(1.61	%)		(0.87	%)
Total expenses		2.48	%		2.46	%		2.48	%		2.66	%		2.59	%		2.54	%
Net expenses		2.48	%		2.46	%		2.48	%		2.61	%f		2.46	%f		2.46	%f
Portfolio turnover rate		1,482	%		2,874	%		1,085	%		1,412	%		730	%		883	%

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Period Ended September 30, 2016a			Year Ended March 31, 2016			Year Ended March 31, 2015			Year Ended March 31, 2014e			Year Ended March 28, 2013e			Year Ended March 31, 2012e
Per Share Data
Net asset value, beginning of period	$	44.84		$	60.61		$	66.37		$	73.87		$	87.74		$	134.69
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.41	)		.20			(.34	)		(.35	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		10.94			(14.71	)		(5.96	)		(7.16	)		(13.52	)		(41.00	)
Total from investment operations		10.77			(15.12	)		(5.76	)		(7.50	)		(13.87	)		(41.35	)
Less distributions from:
Net investment income		—			(.65	)		—			—			—			—
Net realized gains		—			—			—			—			—			(5.60	)
Total distributions		—			(.65	)		—			—			—			(5.60	)
Net asset value, end of period	$	55.61		$	44.84		$	60.61		$	66.37		$	73.87		$	87.74
Total Returnd		24.02	%		(24.88	%)		(8.71	%)		(10.19	%)		(15.78	%)		(29.70	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,412		$	13,238		$	2,136		$	4,719		$	2,087		$	4,713
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.76	%)		0.25	%		(0.51	%)		(0.49	%)		(0.37	%)
Total expenses		1.76	%		1.74	%		1.75	%		1.80	%		1.83	%		1.77	%
Net expenses		1.76	%		1.74	%		1.75	%		1.74	%f		1.69	%f		1.69	%f
Portfolio turnover rate		1,482	%		2,874	%		1,085	%		1,412	%		730	%		883	%

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.
f	Net expense information reflects the expense ratios after expense waivers.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 33

FUND PROFILE (Unaudited) September 30, 2016

INVERSE EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

34 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 98.8%
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/162	$	836,123	$	836,123
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16		614,967		614,967
Total Repurchase Agreements
(Cost $1,451,090)				1,451,090
Total Investments - 98.8%
(Cost $1,451,090)			$	1,451,090
Other Assets & Liabilities, net - 1.2%				18,363
Total Net Assets - 100.0%			$	1,469,453

	Units		Unrealized Gain (Loss)
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International October 2016 Bank of New York Mellon Emerging Markets 50 ADR Index Swap 0.00%3, Terminating 10/26/16 (Notional Value $1,077,861)		487	$	14,181
BNP Paribas November 2016 Bank of New York Mellon Emerging Markets 50 ADR Index Swap (0.12)%3, Terminating 11/01/16 (Notional Value $1,851,462)		836		(2,232	)
(Total Notional Value $2,929,323)			$	11,949

††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2016.
3	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2016.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	14,181	$	—	$	14,181
Repurchase Agreements		—		—		1,451,090		—		—		1,451,090
Total	$	—	$	—	$	1,451,090	$	14,181	$	—	$	1,465,271
Investments in Securities (Liabilities)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Equity Index Swap Agreements	$	—	$	—	$	—	$	2,232	$	—	$	2,232

* Other financial instruments include swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the previous fiscal period.

For the period ended September 30, 2016, there were no transfers between levels.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 35

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Repurchase agreements, at value (cost $1,451,090)	$	1,451,090
Unrealized appreciation on swap agreements		14,181
Segregated cash with broker		2,000
Receivables:
Swap settlement		40,602
Variation margin		679
Fund shares sold		152,611
Interest		15
Total assets		1,661,178
Liabilities:
Unrealized depreciation on swap agreements		2,232
Overdraft due to custodian bank		940
Payable for:
Fund shares redeemed		188,692
Management fees		1,307
Distribution and service fees		498
Transfer agent and administrative fees		363
Portfolio accounting fees		218
Miscellaneous		(2,525	)
Total liabilities		191,725
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,469,453
Net assets consist of:
Paid in capital	$	18,704,067
Accumulated net investment loss		(129,696	)
Accumulated net realized loss on investments		(17,116,867	)
Net unrealized appreciation on investments		11,949
Net assets	$	1,469,453
A-Class:
Net assets	$	252,271
Capital shares outstanding*		3,388
Net asset value per share*	$	74.46
Maximum offering price per share (Net asset value divided by 95.25%)*	$	78.17
C-Class:
Net assets	$	180,767
Capital shares outstanding*		2,389
Net asset value per share*	$	75.67
H-Class:
Net assets	$	1,036,415
Capital shares outstanding*		14,024
Net asset value per share*	$	73.90

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Interest	$	6,106
Total investment income		6,106
Expenses:
Management fees		21,856
Transfer agent and administrative fees		6,072
Distribution and service fees:
A-Class		1,182
C-Class		2,323
H-Class		4,311
Portfolio accounting fees		3,644
Registration fees		4,761
Professional fees		2,857
Pricing service expense		2,374
Trustees’ fees**		389
Custodian fees		280
Miscellaneous		(5,691	)
Total expenses		44,358
Net investment loss		(38,252	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		141,845
Futures contracts		15,127
Net realized gain		156,972
Net change in unrealized appreciation (depreciation) on:
Swap agreements		55,996
Futures contracts		(140	)
Net change in unrealized appreciation (depreciation)		55,856
Net realized and unrealized gain		212,828
Net increase in net assets resulting from operations	$	174,576

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:6 reverse share split effective October 31, 2016 — See Note 13.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(38,252	)	$	(314,989	)
Net realized gain (loss) on investments		156,972			(5,074,320	)
Net change in unrealized appreciation (depreciation) on investments		55,856			538,806
Net increase (decrease) in net assets resulting from operations		174,576			(4,850,503	)
Capital share transactions:
Proceeds from sale of shares
A-Class		12,248,199			6,224,104
C-Class		2,987,739			26,363,997
H-Class		73,314,720			537,108,862
Cost of shares redeemed
A-Class		(12,018,813	)		(5,365,150	)
C-Class		(3,043,303	)		(26,282,809	)
H-Class		(99,348,859	)		(529,298,402	)
Net increase (decrease) from capital share transactions		(25,860,317	)		8,750,602
Net increase (decrease) in net assets		(25,685,741	)		3,900,099
Net assets:
Beginning of period		27,155,194			23,255,095
End of period	$	1,469,453		$	27,155,194
Accumulated net investment loss at end of period	$	(129,696	)	$	(91,444	)
Capital share activity:*
Shares sold
A-Class		115,711			55,718
C-Class		35,233			232,722
H-Class		793,248			4,499,527
Shares redeemed
A-Class		(116,719	)		(51,934	)
C-Class		(36,421	)		(230,126	)
H-Class		(1,039,260	)		(4,468,573	)
Net increase (decrease) in shares		(248,208	)		37,334

* Capital share activity for the periods presented through September 30, 2016, has been restated to reflect a 1:6 reverse share split effective October 31, 2016 — See Note 13.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 37

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	101.83		$	101.26		$	110.02		$	115.35		$	115.71		$	126.90
Income (loss) from investment operations:
Net investment income (loss)b		(.78	)		(1.92	)		(1.74	)		(2.10	)		(1.98	)		(2.34	)
Net gain (loss) on investments (realized and unrealized)		(26.59	)		2.49			(7.02	)		(3.23	)		1.62			(8.85	)
Total from investment operations		(27.37	)		.57			(8.76	)		(5.33	)		(.36	)		(11.19	)
Net asset value, end of period	$	74.46		$	101.83		$	101.26		$	110.02		$	115.35		$	115.71
Total Returnc		(26.87	%)		0.53	%		(7.96	%)		(4.63	%)		(0.26	%)		(8.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	252		$	448		$	62		$	4,859		$	258		$	8
Ratios to average net assets:
Net investment income (loss)		(1.49	%)		(1.59	%)		(1.74	%)		(1.74	%)		(1.60	%)		(1.66	%)
Total expenses		1.74	%		1.75	%		1.75	%		1.78	%		1.85	%		1.78	%
Net expenses		1.74	%		1.75	%		1.75	%		1.75	%d		1.71	%d		1.69	%d
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	103.83		$	104.23		$	114.21		$	120.45		$	121.50		$	128.01
Income (loss) from investment operations:
Net investment income (loss)b		(1.02	)		(2.82	)		(2.34	)		(3.12	)		(2.94	)		(3.30	)
Net gain (loss) on investments (realized and unrealized)		(27.14	)		2.42			(7.64	)		(3.12	)		1.89			(3.21	)
Total from investment operations		(28.16	)		(.40	)		(9.98	)		(6.24	)		(1.05	)		(6.51	)
Net asset value, end of period	$	75.67		$	103.83		$	104.23		$	114.21		$	120.45		$	121.50
Total Returnc		(27.15	%)		(0.29	%)		(8.78	%)		(5.23	%)		(0.84	%)		(5.06	%)e
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	181		$	371		$	102		$	262		$	115		$	1,261
Ratios to average net assets:
Net investment income (loss)		(2.24	%)		(2.44	%)		(2.47	%)		(2.44	%)		(2.41	%)		(2.41	%)
Total expenses		2.49	%		2.50	%		2.48	%		2.48	%		2.65	%		2.53	%
Net expenses		2.49	%		2.50	%		2.48	%		2.46	%d		2.51	%d		2.44	%d
Portfolio turnover rate		—			—			—			—			—			—

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Period Ended September 30, 2016a,f			Year Ended March 31, 2016f			Year Ended March 31, 2015f			Year Ended March 31, 2014f			Year Ended March 28, 2013f			Year Ended March 31, 2012f
Per Share Data
Net asset value, beginning of period	$	101.28		$	100.80		$	109.97		$	115.31		$	115.73		$	126.87
Income (loss) from investment operations:
Net investment income (loss)b		(.72	)		(2.04	)		(1.68	)		(2.10	)		(1.98	)		(2.28	)
Net gain (loss) on investments (realized and unrealized)		(26.66	)		2.52			(7.49	)		(3.24	)		1.56			(8.86	)
Total from investment operations		(27.38	)		.48			(9.17	)		(5.34	)		(.42	)		(11.14	)
Net asset value, end of period	$	73.90		$	101.28		$	100.80		$	109.97		$	115.31		$	115.73
Total Returnc		(27.01	%)		0.48	%		(8.35	%)		(4.63	%)		(0.36	%)		(8.79	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,036		$	26,336		$	23,091		$	5,815		$	1,942		$	2,215
Ratios to average net assets:
Net investment income (loss)		(1.50	%)		(1.65	%)		(1.71	%)		(1.74	%)		(1.56	%)		(1.67	%)
Total expenses		1.75	%		1.74	%		1.73	%		1.78	%		1.82	%		1.79	%
Net expenses		1.75	%		1.74	%		1.73	%		1.76	%d		1.68	%d		1.70	%d
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net Expense information reflects the expense ratios after expense waivers.
e	Generally, the performance of the Fund’s C-Class shares will underperform the Fund’s H-Class shares and A-Class shares due to the C-Class shares’ higher expense ratio. However, the performance of the Fund’s C-Class shares is greater than that of the H-Class shares and A-Class shares due to the impact large redemptions of C-Class shares had on the expense accruals for C-Class shares. The effect of the expense accruals on the performance of the C-Class shares of the Fund was magnified by the small asset base of the C-Class shares.
f	Reverse share split — Per share amounts for the periods presented through September 30 , 2016 have been restated to reflect a 1:6 reverse share split effective October 31, 2016 — See Note 13.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

FUND PROFILE (Unaudited) September 30, 2016

EMERGING MARKETS BOND STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Adviser.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Inception Dates:
A-Class	October 8, 2013
C-Class	October 8, 2013
H-Class	October 8, 2013

40 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2016
EMERGING MARKETS BOND STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 76.1%
HSBC Securities, Inc. issued 09/30/16 at 0.38% due 10/03/16	$	631,455	$	631,455
Royal Bank of Canada issued 09/30/16 at 0.36% due 10/03/16		501,379		501,379
Total Repurchase Agreements
(Cost $1,132,834)				1,132,834
Total Investments - 76.1%
(Cost $1,132,834)			$	1,132,834
Other Assets & Liabilities, net - 23.9%				356,321
Total Net Assets - 100.0%			$	1,489,155

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2016 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $729,234)		6	$	3,311
December 2016 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $393,563)		3		1,807
(Total Aggregate Value of Contracts $1,122,797)			$	5,118
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International November 2016 iShares JP Morgan USD Emerging Markets Bond ETF swap 0.88%2, Terminating 11/03/16 (Notional Value $291,384)		2,486	$	870
Goldman Sachs International November 2016 PowerShares Emerging Markets Sovereign Debt Portfolio swap 0.98%3, Terminating 11/03/16 (Notional Value $289,300)		9,445		661
(Total Notional Value $580,684)			$	1,531

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION SOLD††
Index	Counterparty	Exchange	Protection Premium Rate	Maturity Date	Notional Principal		Notional Value			Upfront Premiums Received			Unrealized Appreciation
CDX.EM-26 Index	Barclays Bank plc	ICE	1.00%	12/20/21	$	1,400,000	$	(1,309,703	)	$	(91,844	)	$	1,547

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
2	Total Return based on iShares JP Morgan USD Emerging Markets Bond ETF +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2016.
3	Total Return based on Power Shares Emerging Markets Sovereign Debt Portfolio +/- financing at a variable rate. Rate indicated is rate effective at September 30, 2016.
	ICE — Intercontinental Exchange
	plc — Public Limited Company
	CDX.EM-26 Index — Credit Default Swap Emerging Markets Series 26 Index
	See Sector Classification in Other Information section.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2016
EMERGING MARKETS BOND STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2016 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1		Level 1 - Other*		Level 2		Level 2 - Other*		Level 3		Total
Credit Default Swaps	$	—	$	—	$	—	$	1,547	$	—	$	1,547
Equity Index Swap Agreements		—		—		—		1,531		—		1,531
Interest Rate Futures Contracts		—		5,118		—		—		—		5,118
Repurchase Agreements		—		—		1,132,834		—		—		1,132,834
Total	$	—	$	5,118	$	1,132,834	$	3,078	$	—	$	1,141,030

* Other financial instruments include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. Transfers between valuation levels, if any, are in comparison to the valuation levels at the end of the previous fiscal year, and are effective using the fair value as of the end of the previous fiscal period.

For the period ended September 30, 2016, there were no transfers between levels.

42 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2016

Assets:
Repurchase agreements, at value (cost $1,132,834)	$	1,132,834
Segregated cash with broker		596,955
Unrealized appreciation on swap agreements		3,078
Receivables:
Fund shares sold		27,577
Interest		440
Total assets		1,760,884
Liabilities:
Payable for:
Swap settlement		148,426
Unamortized upfront premiums paid on credit default swaps		91,844
Management fees		9,458
Fund shares redeemed		4,169
Distribution and service fees		3,235
Transfer agent and administrative fees		3,153
Variation margin		2,203
Portfolio accounting fees		1,892
Miscellaneous		7,349
Total liabilities		271,729
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,489,155
Net assets consist of:
Paid in capital	$	1,414,509
Accumulated net investment loss		(58,170	)
Accumulated net realized gain on investments		124,620
Net unrealized appreciation on investments		8,196
Net assets	$	1,489,155
A-Class:
Net assets	$	906,679
Capital shares outstanding*		11,767
Net asset value per share*	$	77.05
Maximum offering price per share (Net asset value divided by 95.25%)*	$	80.89
C-Class:
Net assets	$	132,433
Capital shares outstanding*		1,776
Net asset value per share*	$	74.57
H-Class:
Net assets	$	450,043
Capital shares outstanding*		5,873
Net asset value per share*	$	76.63

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2016

Investment Income:
Dividends	$	31,747
Interest		13,910
Total investment income		45,657
Expenses:
Management fees		54,434
Transfer agent and administrative fees		18,145
Distribution and service fees:
A-Class		13,585
C-Class		676
H-Class		4,393
Portfolio accounting fees		10,888
Custodian fees		908
Trustees’ fees**		285
Miscellaneous		11,116
Total expenses		114,430
Net investment loss		(68,773	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		53,802
Swap agreements		287,535
Futures contracts		(203,541	)
Net realized gain		137,796
Net change in unrealized appreciation (depreciation) on:
Investments		(9,545	)
Swap agreements		4,586
Futures contracts		1,967
Net change in unrealized appreciation (depreciation)		(2,992	)
Net realized and unrealized gain		134,804
Net increase in net assets resulting from operations	$	66,031

*	The shares outstanding, net asset value per share and the maximum offering price per share have been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 13.
**	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 43

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2016 (Unaudited)			Year Ended March 31, 2016
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(68,773	)	$	27,754
Net realized gain on investments		137,796			728,098
Net change in unrealized appreciation (depreciation) on investments		(2,992	)		10,676
Net increase in net assets resulting from operations		66,031			766,528
Distributions to shareholders from:
Net investment income
A-Class		—			(4,095	)
C-Class		—			(6,486	)
H-Class		—			(18,553	)
Net realized gains
A-Class		(8,051	)		—
C-Class		(642	)		—
H-Class		(24,807	)		—
Total distributions to shareholders		(33,500	)		(29,134	)
Capital share transactions:
Proceeds from sale of shares
A-Class		44,673,535			33,166,270
C-Class		83,632			183,968
H-Class		18,261,246			4,344,437
Distributions reinvested
A-Class		8,051			4,095
C-Class		536			4,976
H-Class		24,701			18,553
Cost of shares redeemed
A-Class		(43,908,877	)		(33,725,205	)
C-Class		(89,239	)		(90,538	)
H-Class		(18,196,911	)		(4,269,575	)
Net increase (decrease) from capital share transactions		856,674			(363,019	)
Net increase in net assets		889,205			374,375
Net assets:
Beginning of period		599,950			225,575
End of period	$	1,489,155		$	599,950
Accumulated net investment loss/Undistributed net investment income at end of period	$	(58,170	)	$	10,603
Capital share activity:*
Shares sold
A-Class		582,312			473,665
C-Class		1,163			2,515
H-Class		245,211			57,824
Shares issued from reinvestment of distributions
A-Class		109			60
C-Class		8			75
H-Class		336			273
Shares redeemed
A-Class		(574,210	)		(470,644	)
C-Class		(1,230	)		(1,173	)
H-Class		(242,608	)		(57,052	)
Net increase in shares		11,091			5,543

* Capital share activity for the periods presented through September 30, 2016, has been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 13.

44 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

A-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Period Ended March 31, 2014b,d
Per Share Data
Net asset value, beginning of period	$	72.75		$	81.52		$	100.68		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.44	)		1.12			(1.44	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		5.06			2.23			(3.76	)		1.52
Total from investment operations		4.62			3.35			(5.20	)		.68
Less distributions from:
Net investment income		—			(12.12	)		(13.96	)		—
Net realized gains		(.32	)		—			—			—
Total distributions		(.32	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	77.05		$	72.75		$	81.52		$	100.68
Total Returne		6.34	%		5.13	%		(5.31	%)		0.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	907		$	259		$	39		$	499
Ratios to average net assets:
Net investment income (loss)		(1.17	%)		1.59	%		(1.50	%)		(1.78	%)
Total expenses		1.57	%		1.58	%		1.71	%		1.83	%
Portfolio turnover rate		392	%		21,555	%		655	%		—

C-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Period Ended March 31, 2014b,d
Per Share Data
Net asset value, beginning of period	$	70.54		$	80.35		$	100.37		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.40	)		(1.00	)		(1.80	)		(1.12	)
Net gain (loss) on investments (realized and unrealized)		4.75			3.31			(4.26	)		1.49
Total from investment operations		4.35			2.31			(6.06	)		.37
Less distributions from:
Net investment income		—			(12.12	)		(13.96	)		—
Net realized gains		(.32	)		—			—			—
Total distributions		(.32	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	74.57		$	70.54		$	80.35		$	100.37
Total Returne		6.20	%		3.73	%		(6.19	%)		0.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	132		$	129		$	34		$	10
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(1.33	%)		(1.85	%)		(2.34	%)
Total expenses		2.32	%		2.32	%		2.24	%		2.39	%
Portfolio turnover rate		392	%		21,555	%		655	%		—

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

This table is presented to show selected data for a share outstanding throughout each period and to assist shareholders in evaluating a Fund’s performance for the periods presented.

H-Class	Period Ended September 30, 2016a,d			Year Ended March 31, 2016d			Year Ended March 31, 2015d			Period Ended March 31, 2014b,d
Per Share Data
Net asset value, beginning of period	$	72.19		$	81.18		$	100.73		$	100.00
Income (loss) from investment operations:
Net investment income (loss)c		(.08	)		(.44	)		(1.56	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		4.84			3.57			(4.03	)		1.49
Total from investment operations		4.76			3.13			(5.59	)		.73
Less distributions from:
Net investment income		—			(12.12	)		(13.96	)		—
Net realized gains		(.32	)		—			—			—
Total distributions		(.32	)		(12.12	)		(13.96	)		—
Net asset value, end of period	$	76.63		$	72.19		$	81.18		$	100.73
Total Returne		6.61	%		4.82	%		(5.74	%)		0.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	450		$	212		$	153		$	5,580
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.55	%)		(1.64	%)		(1.62	%)
Total expenses		1.54	%		1.56	%		1.74	%		1.64	%
Portfolio turnover rate		392	%		21,555	%		655	%		—

a	Unaudited figures for the period ended September 30, 2016. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 8, 2013. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Reverse share split — Per share amounts for the periods presented through September 30 , 2016 have been restated to reflect a 1:4 reverse share split effective November 7, 2016 — See Note 13.
e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

46 | THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund. The Trust is authorized to issue an unlimited number of no par value shares. The Trust accounts for the assets of each fund separately.

The Trust offers a combination of seven separate classes of shares: Investor Class shares, A-Class shares, C-Class shares, H-Class shares, P-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2016, the Trust consisted of fifty-three funds.

This report covers the Long Short Equity Fund, Event Driven and Distressed Strategies Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund (the “Funds”), each a non-diversified investment company. Only A-Class, C-Class, H-Class, P-Class and Institutional Class shares had been issued by the Funds.

The International Equity Funds and Fixed Income Fund are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provided transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities; RFS ceased to be an affiliate of GI as of October 4, 2016, when it was acquired by MUFG Investor Services. In connection with its acquisition, RFS changed its name to MUFG Investors Services (US), LLC (“MUIS”). This change has no impact on the financial statements of the Funds.

Significant Accounting Policies

The Funds operate as investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

The NAV of each Class of the Funds is calculated by dividing the market value of the Fund’s securities and other assets, less all liabilities, attributable to the Class by the number of outstanding shares of the Class.

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the September 30, 2016, afternoon NAV.

A. The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

Valuations of the Funds’ securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently as needed, to review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

If the pricing service cannot or does not provide a valuation for a particular investment or such valuation is deemed unreliable, such investment is fair valued by the Valuation Committee.

Equity securities listed on an exchange (NYSE or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds (“ETFs”) and closed-end investment companies (“CEFs”) are valued at the last quoted sales price.

Repurchase agreements are valued at amortized cost, provided such amounts approximate market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of OTC swap agreements and credit default swap agreements entered into by a Fund are accounted for using the unrealized gains or losses on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE. The swaps’ values are then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees.

Valuations in accordance with these methods are intended to reflect each security’s (or asset’s) “fair value.” Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may include, but are not limited to: market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over Treasuries, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

C. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

Credit default swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Upfront payments received or made by a Fund on credit default swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of

48 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

E. The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. The Funds do not isolate that portion of the results of operations resulting from changes in the foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Reported net realized foreign exchange gains and losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

F. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from REITs is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

G. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. GAAP.

H. Interest and dividend income, most expenses, all realized gains and losses, and all unrealized gains and losses are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust on a pro rata basis upon the respective aggregate net assets of each Fund included in the Trust.

I. The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 0.29% at September 30, 2016.

J. Under the Funds’ organizational documents, the Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Valuation and accounting treatment of these instruments can be found under Significant Accounting Policies in Note 1 of these Notes to Financial Statements.

Short Sales

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, the Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, the Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 49

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Derivatives

Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Long Short Equity Fund	Index exposure, Liquidity	$	76,894	$	287,100
Event Driven and Distressed Strategies Fund	Index exposure, Liquidity, Duration		4,723,072		—
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		1,442,524		—
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		1,461,598
Emerging Markets Bond Strategy Fund	Index exposure, Leverage, Liquidity, Duration		784,994		—

Swaps

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing. Central clearing generally reduces

50 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

counterparty credit risk and increases liquidity, but central clearing does not make swap transactions risk-free. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or basket) or a fixed or variable interest rate. Index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. A fund utilizing a total return index swap bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying index declines in value.

The following table represents the Funds’ use and volume of total return swaps on a quarterly basis:

		Average Notional
Fund	Use	Long		Short
Event Driven and Distressed Strategies Fund	Index exposure, Liquidity	$	1,223,888	$	—
Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		29,363,871		—
Inverse Emerging Markets 2x Strategy Fund	Index exposure, Leverage, Liquidity		—		31,751,689
Emerging Markets Bond Strategy Fund	Index exposure, Leverage, Liquidity, Duration		1,008,387		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. In accordance with its principal investment strategy, the Funds enter into credit default swaps as a seller of protection primarily to gain exposure similar to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Principal reflects the maximum potential amount the Fund could be required to pay as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional
Fund	Use	Long
Event Driven and Distressed Strategies Fund	Index exposure, Liquidity, Duration	$	5,013,376
Emerging Markets Bond Strategy Fund	Index exposure, Leverage, Liquidity, Duration		958,521

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Derivative Investment Holdings Categorized by Risk Exposure

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2016:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin	Variation margin
Equity/Credit contracts	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2016:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2016
Event Driven and Distressed Strategies Fund	$	—	$	3,356	$	20,398	$	59,120	$	82,874
Emerging Markets 2x Strategy Fund		17,206		58,424		—		—		75,630
Inverse Emerging Markets 2x Strategy Fund		—		14,181		—		—		14,181
Emerging Markets Bond Strategy Fund		—		1,531		5,118		1,547		8,196

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2016
Inverse Emerging Markets 2x Strategy Fund	$	—	$	2,232	$	—	$	—	$	2,232

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2016:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2016.

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts			Swaps Credit Default Contracts		Total
Long Short Equity Fund	$	(97,858	)	$	—		$	—		$	—	$	(97,858	)
Event Driven and Distressed Strategies Fund		97,933			(16,755	)		12,481			234,730		328,389
Emerging Markets 2x Strategy Fund		271,862			2,109,899			—			—		2,381,761
Inverse Emerging Markets 2x Strategy Fund		15,127			141,845			—			—		156,972
Emerging Markets Bond Strategy Fund		—			205,774			(203,541	)		81,761		83,994

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts		Swaps Credit Default Contracts			Total
Long Short Equity Fund	$	(5,937	)	$	—		$	—	$	—		$	(5,937	)
Event Driven and Distressed Strategies Fund		(29,249	)		(64,544	)		9,980		(6,742	)		(90,555	)
Emerging Markets 2x Strategy Fund		(17,226	)		(312,533	)		—		—			(329,759	)
Inverse Emerging Markets 2x Strategy Fund		(140	)		55,996			—		—			55,856
Emerging Markets Bond Strategy Fund		—			1,531			1,967		3,055			6,553

In conjunction with the use of short sales and derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Funds.

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. A Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency risks may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

Certain Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Emerging markets, which consist of countries that have an emerging stock market as defined by Standard & Poor’s^®, countries or markets with low-to middle-income economies as classified by the World Bank, and other countries or markets with similar characteristics as determined by GI, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. As a result, the securities of emerging market issuers may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in securities of developed foreign countries. In addition, the risks associated with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund may also be subject to this risk with respect to its investments in derivatives or other securities or financial instruments whose returns are related to the returns of emerging market securities.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

3. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Funds pay GI investment advisory fees calculated at the annualized rates below, based on the average daily net assets of the Funds:

Fund	Management Fees (as a % of Net Assets)
Long Short Equity Fund	0.90%
Event Driven and Distressed Strategies Fund	0.90%
Emerging Markets 2x Strategy Fund	0.90%
Inverse Emerging Markets 2x Strategy Fund	0.90%
Emerging Markets Bond Strategy Fund	0.75%

RFS provided transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

RFS also provided accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund.

Fund	Accounting Fees (as a % of Net Assets)
Emerging Markets 2x Strategy Fund	0.15%
Inverse Emerging Markets 2x Strategy Fund	0.15%
Emerging Markets Bond Strategy Fund	0.15%
Remaining Funds
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

GI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. If a Service Provider provides distribution services, the Funds will pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services.

The Trust has adopted a separate Distribution and Shareholder Services Plan applicable to its C-Class shares that allows the Funds to pay annual distribution and service fees of 1.00% of the Funds’ C-Class shares average daily net assets. The annual 0.25% service fee compensates a shareholder’s financial adviser for providing ongoing services to the shareholder. The annual distribution fee of 0.75% reimburses GFD for paying the shareholder’s financial adviser an ongoing sales commission. GFD advances the first year’s service and distribution fees to the financial adviser. GFD retains the service and distribution fees on accounts with no authorized dealer of record.

GI has contractually agreed to reduce fees and/or reimburse expenses for the Event Driven and Distressed Strategies Fund to the extent necessary to keep net operating expenses relative to the average daily net assets of A-Class, C-Class, H-Class, and Institutional Class shares (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividends on securities sold short, and extraordinary expenses) from exceeding 1.90%, 2.65%, 1.90%, and 1.65%, respectively. The total annual fund operating expenses after fee waiver and/or expense reimbursement includes excluded expenses and, thus, from time to time may be higher than 1.90%, 2.65%, 1.90% and 1.65%, respectively. This agreement may be terminated only with the approval of the Fund’s Board.

For the period ended September 30, 2016, GFD retained sales charges of $145,031 relating to sales of A-Class shares of the Trust.

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Certain trustees and officers of the Trust are also officers of GI and GFD.

4. Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Funds would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. U.S. GAAP establishes a three-tier fair value hierarchy based on the types of inputs used to value assets and liabilities and requires corresponding disclosure. The hierarchy and the corresponding inputs are summarized below:

Level 1 — quoted prices in active markets for identical assets or liabilities.

Level 2 — significant other observable inputs (for example quoted prices for securities that are similar based on characteristics such as interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs based on the best information available under the circumstances, to the extent observable inputs are not available, which may include assumptions.

The types of inputs available depend on a variety of factors, such as the type of security and the characteristics of the markets in which it trades, if any. Fair valuation determinations that rely on fewer or no observable inputs require greater judgment. Accordingly, fair value determinations for Level 3 securities require the greatest amount of judgment.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The suitability of the techniques and sources employed to determine fair valuation are regularly monitored and subject to change.

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2016, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
HSBC Securities, Inc.					U.S. Treasury Strips
0.38%					0.00%
Due 10/03/16	$	469,487,376	$	469,502,243	11/15/39	$	803,943,000	$	478,877,146
Royal Bank of Canada					U.S. Treasury Notes
0.36%					1.38%-1.50%
Due 10/03/16		419,594,468		419,607,056	05/31/20		370,488,200		380,230,860
					U.S. TIP Notes
					0.25%
					01/15/25		46,061,100		47,755,613
							416,549,300		427,986,473

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment adviser, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

6. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amount of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Asset Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Event Driven and Distressed Strategies Fund	Swap equity contracts	$	3,356	$	—	$	3,356	$	—	$	—	$	3,356
Emerging Markets 2x Strategy Fund	Swap equity contracts		58,424		—		58,424		—		—		58,424
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		14,181		—		14,181		—		—		14,181
Emerging Markets Bond Strategy Fund	Swap equity contracts		1,531		—		1,531		—		—		1,531

56 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
Event Driven and Distressed Strategies Fund	Swap equity contracts	$	2,232	$	—	$	2,232	$	2,232	$	—	$	—

¹ Centrally cleared swaps and exchange-traded futures are excluded from these reported amounts.

7. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all taxable net investment income and capital gains sufficient to relieve the Funds from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken, or to be taken, on federal income tax returns for all open tax years, and has concluded that no provision for income tax is required in the Funds’ financial statements. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

At September 30, 2016, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain
Long Short Equity Fund	$	40,986,262	$	2,461,140	$	(1,238,610	)	$	1,222,530
Event Driven and Distressed Strategies Fund		6,880,117		13,221		(1,257	)		11,964
Emerging Markets 2x Strategy Fund		19,705,227		747,277		(18,262	)		729,015
Inverse Emerging Markets 2x Strategy Fund		1,451,090		—		—			—
Emerging Markets Bond Strategy Fund		1,132,834		—		—			—

8. Securities Transactions

For the period ended September 30, 2016, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Long Short Equity Fund	$	71,109,091	$	68,185,896
Event Driven and Distressed Strategies Fund		1,676,769		3,069,786
Emerging Markets 2x Strategy Fund		115,924,153		118,245,140
Emerging Markets Bond Strategy Fund		3,913,708		4,197,709

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2016, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Loss
Event Driven and Distressed Strategies Fund	$	—	$	1,825,120	$	(98,870	)
Emerging Markets 2x Strategy Fund		1,095,745		105,645		(8,731	)

9. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, Guggenheim Strategy Fund III, and Guggenheim Variable Insurance Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2015, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at http://www.sec.gov/Archives/edgar/data/1601445/000089180415000857/gug63224-ncsr.htm.

Transactions during the period ended September 30, 2016, in which the portfolio company is an “affiliated person,” were as follows:

Affiliated issuers by Fund	Value 03/31/16		Additions		Reductions			Value 09/30/16		Shares 09/30/16		Investment Income		Realized Gain (Loss)
Long Short Equity Fund
Guggenheim Strategy Fund I	$	2,054,852	$	17,314	$	—		$	2,087,117		83,518	$	17,182	$	—
Guggenheim Strategy Fund II		14,088		154		—			14,386		577		153		—
	$	2,068,940	$	17,468	$	—		$	2,101,503			$	17,335	$	—
Event Driven and Distressed Strategies Fund
Guggenheim Strategy Fund I	$	2,031,647	$	821,298	$	(200,000	)	$	2,670,956		106,881	$	21,129	$	(804	)
Guggenheim Strategy Fund II		2,039,748		827,774		(200,000	)		2,693,287		107,991		27,483		(1,615	)
	$	4,071,395	$	1,649,072	$	(400,000	)	$	5,364,243			$	48,612	$	(2,419	)

10. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 11, 2017. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.31% for the period ended September 30, 2016. The Funds did not have any borrowings outstanding under this agreement at September 30, 2016.

The average daily balances borrowed for the period ended September 30, 2016, were as follows:

Fund	Average Daily Balance
Event Driven and Distressed Strategies Fund	$	3,278
Emerging Markets 2x Strategy Fund		17,286

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

11. Legal Proceedings

Tribune Company

Rydex Series Funds has been named as a defendant and a putative member of the proposed defendant class of shareholders in the case entitled Kirschner v. FitzSimons, No. 12-2652 (S.D.N.Y.) (formerly Official Committee of Unsecured Creditors of Tribune Co. v. FitzSimons, Adv. Pro. No. 10-54010 (Bankr. D. Del.)) (the “FitzSimons action”), as a result of ownership by certain series of the Rydex Series Funds of shares in the Tribune Company (“Tribune”) in 2007, when Tribune effected a leveraged buyout transaction (“LBO”) by which Tribune converted to a privately-held company. In his complaint, the plaintiff has alleged that, in connection with the LBO, Tribune insiders and shareholders were overpaid for their Tribune stock using financing that the insiders knew would, and ultimately did, leave Tribune insolvent. The plaintiff has asserted claims against certain insiders, major shareholders, professional advisers, and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

In June 2011, a group of Tribune creditors filed multiple actions against former Tribune shareholders involving state law constructive fraudulent conveyance claims arising out of the 2007 LBO (the “SLCFC actions”). Rydex Series Funds has been named as a defendant in one or more of these suits. In those actions, the creditors seek to recover from Tribune’s former shareholders the proceeds received in connection with the 2007 LBO.

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order.

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments. On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. The Supreme Court has not yet granted or denied the petition for certiorari.

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. The Court has not yet issued a decision on any of these motions.

None of these lawsuits alleges any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds held shares of Tribune and tendered these shares as part of Tribune’s LBO: Nova Fund, S&P 500^® Pure Value Fund, Multi-Cap Core Equity Fund, S&P 500^® Fund, Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust Action”). Its funds may also be putative members of the proposed defendant classes in Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adv. Pro. No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust Action”) and Weisfelner, as Trustee of the LB Creditor Trust, v. Reichman (In re Lyondell Chemical Co.), Adv. Pro. No. 12-1570 (Bankr. S.D.N.Y.).

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Similar to the claims made in the Tribune matter, the Weisfelner complaints seek to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008. The Creditor Trust Action and Reichman allege claims against the former Lyondell shareholders under state law for both constructive fraudulent transfer and intentional fraudulent transfer. The Litigation Trust Action alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On April 7, 2014, the plaintiff filed a Third Amended Complaint in the Creditor Trust Action, a Second Amended Complaint in the Litigation Trust Action, and an Amended Complaint in Reichman.

On May 8, 2014, the plaintiff in the Litigation Trust Action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction.

On July 30, 2014, the defendants filed a motion to dismiss these lawsuits. The Bankruptcy Court held oral argument on the motion to dismiss and on the motion for class certification on January 14 and January 15, 2015. On September 15, 2015, the Bankruptcy Court denied the motion for class certification without prejudice to the plaintiff’s right to file a renewed motion. On November 18, 2015, the Bankruptcy Court granted the defendants’ motion to dismiss the intentional fraudulent transfer claims in the Creditor Trust Action, the Litigation Trust Action, and in Reichman, but denied the motion to dismiss the constructive fraudulent transfer claims in the Creditor Trust Action and in Reichman. The Bankruptcy Court entered final judgment dismissing the Litigation Trust Action, but the plaintiff appealed the dismissal to the U.S. District Court for the Southern District of New York.

On July 27, 2016, the District Court reversed the Bankruptcy Court and reinstated the federal law intentional fraudulent transfer claim in the Litigation Trust Action and remanded to the Bankruptcy Court for further proceedings. The District Court found that the fraudulent intent that mattered was that of Lyondell’s CEO, not its board, because the CEO’s intent could be imputed to Lyondell under Delaware law agency principles. The District Court did note, however, that plaintiff faces a high standard for proving “actual intent” to harm creditors, and that it remains to be seen whether plaintiff will be able to make this showing. On August 11, 2016, the shareholder defendants filed a motion for reconsideration and/or to certify an interlocutory appeal of the District Court’s opinion. On October 5, 2016, the District Court denied the motion for reconsideration and/or to certify an interlocutory appeal. In light of this ruling, the federal intentional fraudulent conveyance claim will move forward before the Bankruptcy Court, but a schedule for that case has not yet been set.

On May 4, 2016, the defendants filed a motion to dismiss, or in the alternative, for a stay of, the Creditor Trust Action and Reichman in light of the U.S. Court of Appeals for the Second Circuit’s opinion in the appeal of the Tribune SLCFC actions. On July 20, 2016, the Bankruptcy Court issued a report and recommendation granting the defendants’ motion to dismiss. The U.S. District Court for the Southern District of New York has not yet accepted the Bankruptcy Court’s recommendation or entered a final judgment.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

12. H-Class Shares Redesignated as P-Class Shares

Effective following the close of business on April 30, 2015, (the “Redesignation Date”), all outstanding H-Class shares of the Guggenheim Event Driven and Distressed Strategies Fund and Guggenheim Long Short Equity Fund (collectively, the “Funds”) were redesignated as P-Class shares, and the Funds will no longer offer H-Class shares.

P-Class shares of the Funds are offered primarily through broker/dealers and other financial intermediaries with which Guggenheim Funds Distributors, LLC has an agreement for the use of P-Class shares of the Funds in investment products, programs or accounts. P-Class shares do not have a minimum initial investment amount, subsequent investment amount or a minimum account balance. The Funds reserve the right to modify their minimum investment amount and account balance requirements at any time, with or without prior notice to you.

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NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

13. Subsequent Events

Share Splits

Share Splits occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
Inverse Emerging Markets 2x Strategy Fund	October 31, 2016	One-for-Six Reverse Split
Emerging Markets Bond Strategy Fund	November 07, 2016	One-for-Four Reverse Split

The effect of these transactions was to divide the number of outstanding shares of Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund by their respective reverse split ratios, resulting in corresponding increases in the NAVs. The share transactions presented in the Statements of Changes in net assets and the per share data in the Financial Highlights for each of the periods presented through September 30, 2016, have been restated to reflect these respective share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

Portfolio Securities Loaned

Effective October 6, 2016, each Fund may lend portfolio securities to certain creditworthy borrowers, including the Funds’ securities lending agent. The loans would be collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 102% of the market value of securities loaned as determined at the close of business on the preceding business day. The cash collateral received would be held in a separately managed account established for each respective Fund and maintained by the lending agent exclusively for the investment of securities lending cash collateral on behalf of each Fund. The separately managed accounts will invest in short-term investments valued at amortized cost, which approximates market value. Each Fund will receive compensation for lending securities from interest or dividends earned on the cash, cash equivalents or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees paid to the lending agent. Such compensation will be accrued daily and payable to the Fund monthly. The dividend and interest income earned on the securities loaned will be accounted for in the same manner as other dividend and interest income. The borrower will pay to the Funds an amount equal to any dividends or interest received on loaned securities. These payments from the borrower are not eligible for reduced tax rates as “qualified dividend income” under the Jobs and Growth Tax Reconciliation Act of 2003. The Funds would retain all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower.

Although the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

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OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at https://www.sec.gov.

Sector Classification

Information in the Schedule of Investments is categorized by sectors using sector-level Classifications defined by the Bloomberg Industry Classification System, a widely recognized industry classification system provider. Each Fund’s registration statement has investment policies relating to concentration in specific sectors/industries. For purposes of these investment policies, the Funds usually classify sectors/industries based on industry-level Classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standards and Barclays Global Classification Scheme.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Board Considerations in Approving the Continuation of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (“Independent Trustees”), attended an in-person meeting held on May 19, 2016, called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and the Advisor applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”). The Board unanimously approved the continuation of the Investment Advisory Agreement for an additional one-year period based on the Board’s review of qualitative and quantitative information provided by the Advisor. The Board had previously considered information pertaining to the renewal of the Investment Advisory Agreement at an in-person meeting held on April 26, 2016 (together, with the May 19 meeting, the “Meetings”).

Prior to reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. In addition, the Board received a memorandum from Fund counsel regarding the responsibilities of the Board with respect to the approval of investment advisory agreements and participated in question and answer sessions with representatives of the Advisor. The Independent Trustees also carefully considered information that they had received throughout the year as part of their regular oversight of the Funds. At the Meetings, the Board obtained and reviewed a wide variety of information, including certain comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). The Independent Trustees carefully evaluated this information, met in executive session outside the presence of fund management, and were advised by independent legal counsel with respect to their deliberations.

At the Meetings, the Board, including the Independent Trustees, evaluated a number of factors, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and the variety and complexity of its investment strategies; (e) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts, giving special attention to the existence of economies of scale and the absence of breakpoints in these fees and the Advisor’s rationale for not providing for breakpoints at this point in time; (f) each Fund’s overall fees and operating expenses compared with those of similar funds; (g) the level of the Advisor’s profitability from its Fund-related operations; (h) the Advisor’s compliance processes and systems; (i) the Advisor’s compliance

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OTHER INFORMATION (Unaudited) (continued)

policies and procedures; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of similar funds and/or appropriate benchmarks. In its deliberations, the Trustees did not identify any single piece of information that was all-important or controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees are reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

● Nature, Extent and Quality of Services Provided by the Advisor. The Board evaluated, among other things, the Advisor’s business, financial resources, quality and quantity of personnel, experience, past performance, the variety and complexity of its investment strategies (including the extent to which the Funds use derivatives), Fund risk management process, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity programs. The Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially the same quality and quantity as services provided to the Funds in the past, and whether these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs. Based on the foregoing, the Trustees determined that the approval of the Investment Advisory Agreement would enable shareholders of the Funds to receive high quality services at a cost that was appropriate and reasonable.

● Fund Expenses and Performance of the Funds and the Advisor. The Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare reports to help the Board compare the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the reports, each Fund’s expense ratio components, including actual advisory fees, waivers/reimbursements, and gross and net total expenses, are compared to those of other funds with shared key characteristics (e.g., asset size, fee structure, sector or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s representation that it found the peer groups compiled by FUSE to be appropriate, but also acknowledged the existence of certain differences between the Funds and their peer funds (e.g., specific differences in principal investment strategies and, if applicable, tradability) that should be reviewed in context. With respect to tradability, in particular, the Board considered that non-tradable funds incur lower expense ratios than tradable funds because non-tradable funds experience less shareholder activity and lower transaction volumes than tradable funds. The statistical information related to the performance of each Fund included three-month and one-, three-, and five-year performance for the Fund compared to that of its peers. Based on the foregoing, the Board determined that the proposed advisory fees paid by the Funds are reasonable in relation to the nature and quality of the services provided by the Advisor.

● Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. The Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. The Board analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed the FUSE reports. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue, if any, received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin, including the expense allocation methodology used in the Advisor’s profitability analysis. Based on the foregoing, the Board determined that the profit to the Advisor on the fees paid by the Funds is not excessive in view of the nature and quality of the services provided by the Advisor.

● Economies of Scale. The Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex often increase and decrease significantly due to the unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that the Funds have not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board noted that it intends to continue to monitor fees as each Fund grows in size and assess whether fee breakpoints may be warranted.

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OTHER INFORMATION (Unaudited) (concluded)

● Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the Advisor’s services, the Board considered the nature and amount of other benefits to be received by the Advisor and its affiliates as a result of their relationship with the Fund, including any soft dollar usage by the Advisor and any intangible benefits. In particular, the Board considered the nature, extent, quality, and cost of certain administrative, distribution, and shareholder services performed by the Advisor’s affiliates under separate agreements and the Distribution and Shareholders Services Plan pursuant to Rule 12b-1 of the 1940 Act. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the Board concluded the ancillary benefits the Advisor and its affiliates received were reasonable.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the terms of the Investment Advisory Agreement were reasonable, and that approval of the continuation of the Investment Advisory Agreement was in the best interests of the Funds and their shareholders.

64 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by visiting guggenheiminvestments.com or by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Guggenheim Partners Investment Management Holdings, LLC (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Angela Brock-Kyle***** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm) Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Epiphany Funds (4) (2009-present).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
INDEPENDENT TRUSTEES - concluded
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; and Member of the Investment and Performance Committee from 2014 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	135	None.
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2004 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem***** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Joanna M. Catalucci (1966)	AML Officer (2016-present)	Current: Chief Compliance Officer, certain funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); AML Officer, certain funds in the Fund Complex (2016-present). Former: Chief Compliance Officer and Secretary, certain other funds in the Fund Complex (2008-2012); Senior Vice President & Chief Compliance Officer, Security Investors, LLC and certain affiliates (2010-2012); Chief Compliance Officer and Senior Vice President, Rydex Advisors, LLC and certain affiliates (2010-2011).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Keith D. Kemp (1960)	Assistant Treasurer (2016-present)	Current: Managing Director of Transparent Value, LLC (2015-present); Managing Director of Guggenheim Investments (2015-present). Former: Director, Transparent Value, LLC (2010-2015); Director, Guggenheim Investments (2010-2015); Chief Operating Officer, Macquarie Capital Investment Management (2007-2009).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Adam J. Nelson (1979)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2015-present); Assistant Treasurer, certain other funds in the Fund Complex (2015-present). Former: Assistant Vice President and Fund Administration Director, State Street Corporation (2013-2015); Fund Administration Assistant Director, State Street (2011-2013); Fund Administration Manager, State Street (2009-2011).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: CFO, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and CCO, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.
****	Some of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.
*****	Mses. Brock-Kyle and Sponem commenced serving as independent Trustees effective August 18, 2016.

68 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Guggenheim Investments as used herein refers to Guggenheim Partners, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds Distributors, LLC and Security Investors, LLC as well as the funds in the Guggenheim Funds complex (the “funds”).

Our Commitment to You

When you become a Guggenheim Investments investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to personal information about you, we hold ourselves to high standards in its safekeeping and use. This means, most importantly, that we do not sell client or account information to anyone—whether you are a current or former Guggenheim Investments client.

The Information We Collect About You and How We Collect It

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Funds or one of the Guggenheim affiliated companies. “Nonpublic personal information” is personally identifiable information about you. For example it includes your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g. purchase and redemption history).

How We Share Your Personal Information

As a matter of policy, we do not disclose your nonpublic personal information to nonaffiliated third parties except as required or permitted by law. As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below.

To complete certain transactions or account changes that you direct, it may be necessary to provide your personal information to companies, individuals or groups that are not affiliated with Guggenheim Investments. For example if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. In connection with servicing your accounts or to alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new funds or the services offered through another Guggenheim Investments affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your personal information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally we will share personal information about you if we are compelled by law to do so, if you direct us to do so with your consent, or in other circumstances as permitted by law.

How We Safeguard Your Personal Information

We maintain physical, electronic and procedural safeguards to protect your personal information. Within Guggenheim Investments, access to such information is limited to those who need it to perform their jobs such as servicing your account, resolving problems or informing you of new products and services.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 69

Item 2. Code of Ethics.

Not applicable at this time.

Item 3. Audit Committee Financial Expert.

Not applicable at this time.

Item 4. Principal Accountant Fees and Services.

Not applicable at this time.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s President (principal executive officer) and Treasurer (principal financial officer) have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(2)Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.

(b)A certification by the registrant’s President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	Rydex Series Funds
By (Signature and Title)*	/s/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President and Chief Executive Officer
Date	December 8, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President and Chief Executive Officer
Date	December 8, 2016
By (Signature and Title)*	/s/ John L. Sullivan
	John L. Sullivan, Chief Financial Officer and Treasurer
Date	December 8, 2016

^* Print the name and title of each signing officer under his or her signature.